N-CSR 1 a06-20196_3ncsr.htm CERTIFIED ANNUAL SHAREHOLDER REPORT

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number

811-09645

 

Columbia Funds Series Trust

(Exact name of registrant as specified in charter)

 

One Financial Center, Boston, Massachusetts

 

02111

(Address of principal executive offices)

 

(Zip code)

 

James R. Bordewick, Jr., Esq.
Columbia Management Advisors, LLC
One Financial Center
Boston, MA 02111

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

1-617-426-3750

 

 

Date of fiscal year end:

August 31, 2006

 

 

Date of reporting period:

August 31, 2006

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.



Item 1. Reports to Stockholders.



Columbia Management®

Columbia Money Market Funds

Annual Report – August 31, 2006

g  Columbia Cash Reserves

g  Columbia Money Market Reserves

g  Columbia Treasury Reserves

g  Columbia Government Reserves

g  Columbia Municipal Reserves

g  Columbia Tax-Exempt Reserves

g  Columbia California Tax-Exempt Reserves

g  Columbia New York Tax-Exempt Reserves

NOT FDIC INSURED

May Lose Value

No Bank Guarantee


President's Message – Columbia Money Market Funds

Table of contents

Understanding Your Expenses     3    
Financial Statements     11    
Investment Portfolios     12    
Statements of Assets and
Liabilities		     122    
Statements of Operations     128    
Statements of Changes in
Net Assets		     132    
Financial Highlights     154    
Notes to Financial Statements     228    
Report of Independent
Registered Public Accounting
Firm		     238    
Unaudited Information     239    
Fund Governance     240    
Columbia Funds     243    
Important Information About
This Report		     245    

 

An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds.

The views expressed in the President's Message reflect the current views of Columbia Funds. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and Columbia Funds disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Fund. References to specific company securities should not be construed as a recommendation or investment advice.

Dear Shareholder:

We appreciate your continued confidence in the Columbia Funds. Many of the product changes and other initiatives we have told you about in the prior 18 months have been fully completed. The results have been as we expected—a more streamlined product offering with lower expense ratios for the majority of our funds. When coupled with the improvements in our investment process, we believe Columbia Management is well positioned to provide you with an array of products to meet your investment needs.

We have also made improvements to our servicing platform. Website enhancements, improved account access at www.columbiafunds.com and a recently upgraded automated phone system available at 800.345.6611 provide you with everything you need to manage your relationship with Columbia 24 hours a day, 7 days a week. The new phone system is equipped with an advanced speech recognition system that allows callers to interact with the system using natural spoken commands.

After secure login, you can buy, sell or exchange funds either on-line or over the phone. (Buying shares requires that a link has been established between your bank account and Columbia Funds account). Up to-date performance and pricing information is also available on-line or over the phone. We will continue to look for ways to expand capabilities for you in the future.

Be assured that we will not rest on the recent success of our product and service enhancements. We will continue to seek ways to provide you with better financial solutions and consistent, high-quality results. We value your relationship with us and will work hard to earn your continued trust.

Sincerely,

Christopher L. Wilson
President, Columbia Funds



Understanding Your Expenses – Columbia Cash Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,020.79       1,024.20       0.85       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,020.41       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,020.20       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,019.70       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,019.28       1,022.43       2.33       2.80       0.55    
Market Class     1,000.00       1,000.00       1,018.90       1,021.93       2.75       3.31       0.65    
Daily Class     1,000.00       1,000.00       1,018.19       1,021.17       3.38       4.08       0.80    
Class A     1,000.00       1,000.00       1,018.90       1,021.93       2.75       3.31       0.65    
Class B     1,000.00       1,000.00       1,016.10       1,018.65       5.49       6.61       1.30    
Class C     1,000.00       1,000.00       1,016.10       1,018.65       5.49       6.61       1.30    
Class Z     1,000.00       1,000.00       1,020.79       1,024.20       0.85       1.02       0.20    
Institutional Class     1,000.00       1,000.00       1,020.58       1,024.00       1.02       1.22       0.24    
Marsico Shares     1,000.00       1,000.00       1,019.28       1,022.43       2.33       2.80       0.55    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

3


Understanding Your Expenses – Columbia Money Market Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,020.79       1,024.20       0.85       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,020.41       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,020.20       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,019.79       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,019.28       1,022.43       2.33       2.80       0.55    
Market Class     1,000.00       1,000.00       1,018.90       1,021.93       2.75       3.31       0.65    
Daily Class     1,000.00       1,000.00       1,018.32       1,021.17       3.38       4.08       0.80    
Class B     1,000.00       1,000.00       1,016.18       1,018.65       5.49       6.61       1.30    
Class C     1,000.00       1,000.00       1,016.18       1,018.65       5.49       6.61       1.30    
Institutional Class     1,000.00       1,000.00       1,020.71       1,024.00       1.02       1.22       0.24    
Retail A Shares     1,000.00       1,000.00       1,020.50       1,023.84       1.14       1.38       0.27    
G-Trust Shares     1,000.00       1,000.00       1,020.79       1,024.20       0.85       1.02       0.20    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

4


Understanding Your Expenses – Columbia Treasury Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,020.41       1,024.20       0.85       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,019.99       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,019.79       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,019.28       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,018.90       1,022.43       2.33       2.80       0.55    
Market Class     1,000.00       1,000.00       1,018.40       1,021.93       2.75       3.31       0.65    
Daily Class     1,000.00       1,000.00       1,017.90       1,021.17       3.38       4.08       0.80    
Class A     1,000.00       1,000.00       1,018.49       1,021.93       2.75       3.31       0.65    
Class B     1,000.00       1,000.00       1,015.72       1,018.65       5.49       6.61       1.30    
Institutional Class     1,000.00       1,000.00       1,020.20       1,024.00       1.02       1.22       0.24    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

5


Understanding Your Expenses – Columbia Government Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,020.58       1,024.20       0.85       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,020.12       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,019.91       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,019.49       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,019.11       1,022.43       2.33       2.80       0.55    
Market Class     1,000.00       1,000.00       1,018.70       1,021.93       2.75       3.31       0.65    
Daily Class     1,000.00       1,000.00       1,017.98       1,021.17       3.38       4.08       0.80    
Class A     1,000.00       1,000.00       1,018.61       1,021.93       2.75       3.31       0.65    
Class B     1,000.00       1,000.00       1,015.89       1,018.65       5.49       6.61       1.30    
Institutional Class     1,000.00       1,000.00       1,020.41       1,024.00       1.02       1.22       0.24    
Retail A Shares     1,000.00       1,000.00       1,020.20       1,023.74       1.23       1.48       0.29    
G-Trust Shares     1,000.00       1,000.00       1,020.58       1,024.20       0.85       1.02       0.20    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

6


Understanding Your Expenses – Columbia Municipal Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,014.42       1,024.20       0.84       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,014.00       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,013.79       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,013.29       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,012.91       1,022.43       2.32       2.80       0.55    
Market Class     1,000.00       1,000.00       1,012.41       1,021.93       2.74       3.31       0.65    
Daily Class     1,000.00       1,000.00       1,011.90       1,021.17       3.37       4.08       0.80    
Class B     1,000.00       1,000.00       1,009.68       1,018.65       5.48       6.61       1.30    
Class Z     1,000.00       1,000.00       1,014.42       1,024.20       0.84       1.02       0.20    
Institutional Class     1,000.00       1,000.00       1,014.21       1,024.00       1.01       1.22       0.24    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

7


Understanding Your Expenses – Columbia Tax-Exempt Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,014.21       1,024.20       0.84       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,013.79       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,013.58       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,013.12       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,012.70       1,022.43       2.32       2.80       0.55    
Daily Class     1,000.00       1,000.00       1,011.61       1,021.17       3.37       4.08       0.80    
Class A     1,000.00       1,000.00       1,012.28       1,021.93       2.74       3.31       0.65    
Institutional Class     1,000.00       1,000.00       1,014.00       1,024.00       1.01       1.22       0.24    
Retail A Shares     1,000.00       1,000.00       1,013.79       1,023.74       1.22       1.48       0.29    
G-Trust Shares     1,000.00       1,000.00       1,014.21       1,024.20       0.84       1.02       0.20    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

8


Understanding Your Expenses – Columbia California Tax-Exempt Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,014.00       1,024.20       0.84       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,013.58       1,023.69       1.27       1.53       0.30    
Liquidity Class     1,000.00       1,000.00       1,013.41       1,023.44       1.48       1.79       0.35    
Adviser Class     1,000.00       1,000.00       1,012.99       1,022.94       1.90       2.29       0.45    
Investor Class     1,000.00       1,000.00       1,012.49       1,022.43       2.32       2.80       0.55    
Market Class     1,000.00       1,000.00       1,011.40       1,021.93       2.74       3.31       0.65    
Daily Class     1,000.00       1,000.00       1,011.49       1,021.17       3.37       4.08       0.80    
Class B     1,000.00       1,000.00       1,009.18       1,018.65       5.47       6.61       1.30    
Institutional Class     1,000.00       1,000.00       1,013.92       1,024.00       1.01       1.22       0.24    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

9


Understanding Your Expenses – Columbia New York Tax-Exempt Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

g  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

g For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount for your share class. You will find this number in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using actual operating expenses and total return for the period. The amount listed in the "hypothetical" column for each share class assumes that the return each year is 5% before expenses and is calculated using actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

04/01/06 - 08/31/06

    Account value at the
beginning of the period ($)		   Account value at the
end of the period ($)		   Expenses paid
during the period ($)		   Fund's annualized
expense ratio (%)		  
    Actual   Hypothetical   Actual   Hypothetical   Actual*   Hypothetical**   Actual  
Capital Class     1,000.00       1,000.00       1,014.21       1,024.20       0.84       1.02       0.20    
Trust Class     1,000.00       1,000.00       1,013.79       1,023.69       1.27       1.53       0.30    
Adviser Class     1,000.00       1,000.00       1,013.12       1,022.94       1.90       2.29       0.45    
Market Class     1,000.00       1,000.00       1,012.28       1,021.93       2.74       3.31       0.65    
Institutional Class     1,000.00       1,000.00       1,014.00       1,024.00       1.01       1.22       0.24    
Retail A Shares     1,000.00       1,000.00       1,013.79       1,023.69       1.27       1.53       0.30    
G-Trust Shares     1,000.00       1,000.00       1,014.21       1,024.20       0.84       1.02       0.20    

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from March 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

* For the period April 1, 2006 through August 31, 2006.

** For the period March 1, 2006 through August 31, 2006.

10


Financial Statements – Columbia Money Market Funds (August 31, 2006)

A guide to understanding your fund's financial statements

Investment Portfolio   The investment portfolio details all of the fund's holdings and their values as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification.  
Statement of Assets and Liabilities   This statement details the fund's assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. Net assets are calculated by subtracting all the fund's liabilities (including any unpaid expenses) from the total of the fund's investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period.  
Statement of Operations   This statement details income earned by the fund and the expenses accrued by the fund during the reporting period. The Statements of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund's net increase or decrease in net assets from operations.  
Statement of Changes in Net Assets   This statement demonstrates how the fund's net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments) during the reporting period. The Statements of Changes in Net Assets also details changes in the number of shares outstanding.  
Financial Highlights   The financial highlights demonstrate how the fund's net asset value per share was affected by the fund's operating results. The financial highlights table also discloses performance for each class of shares and certain key ratios (e.g., class expenses and net investment income as a percentage of average net assets).  
Notes to Financial Statements   The notes disclose the organizational background of the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies.  

 

11



Investment Portfolio Columbia Cash Reserves (August 31, 2006)

Corporate Bonds – 38.0%

    Par ($)   Value ($)  
 1800 Indian Wood Ltd.   
LOC: Fifth Third Bank  
5.330% 04/01/26 (a)     980,000       980,000    
20/20 Custom Molded Plastics LP  
LOC: National City Bank  
5.380% 08/01/13 (a)     3,655,000       3,655,000    
 2320 Properties LLC   
LOC: Fifth Third Bank  
5.330% 11/01/22 (a)     1,420,000       1,420,000    
2440 LLC      
LOC: Fifth Third Bank  
5.330% 05/01/24 (a)(b)     2,530,000       2,530,000    
701 Green Valley Associates LLC  
LOC: Wachovia Bank N.A.  
5.430% 01/01/18 (a)     2,100,000       2,100,000    
A & M Hospital Convention Center  
LOC: Columbus Bank &
Trust Co.		  
5.380% 01/01/25 (a)     9,000,000       9,000,000    
Abbey National Treasury Services PLC  
5.597% 01/16/07 (a)(b)     190,400,000       190,486,513    
Absom LLC  
LOC: Fifth Third Bank  
5.330% 06/01/15 (a)     1,945,000       1,945,000    
ACC Leasing LLC  
LOC: National City Bank  
5.380% 05/01/23 (a)     3,171,000       3,171,000    
Acme Paper & Supply Co.  
LOC: Wachovia Bank N.A.  
5.480% 09/15/20 (a)     3,060,000       3,060,000    
Al-Fe Heat Treating, Inc.  
LOC: National City Bank  
5.380% 05/01/21 (a)     5,560,000       5,560,000    
Alliance & Leicester PLC  
5.410% 09/07/07 (a)(b)     500,000,000       500,000,000    
American Express Credit Corp.  
5.506% 01/05/07 (a)     10,000,000       10,004,029    
5.506% 04/05/07 (a)     300,000,000       300,000,000    
5.506% 03/05/08 (a)     13,000,000       13,000,000    
Aquarium Parking Deck  
LOC: SunTrust Bank  
5.310% 04/01/20 (a)     6,000,000       6,000,000    
Archbishop of Cincinnati Trustee  
LOC: Fifth Third Bank  
5.330% 04/01/23 (a)     960,000       960,000    

 

    Par ($)   Value ($)  
Arogas, Inc.  
LOC: Wachovia Bank N.A.  
5.430% 12/01/10 (a)     6,815,000       6,815,000    
ASIF Global Financing  
5.398% 02/23/07 (a)(b)     150,000,000       150,013,449    
Atlanta Bread Co. International, Inc.  
LOC: Columbus Bank &
Trust Co.		  
5.380% 09/01/23 (a)     1,735,000       1,735,000    
Atlas Capital Funding Corp.  
5.304% 09/25/06 (a)(b)     170,000,000       170,000,000    
5.314% 08/28/07 (a)(b)     155,000,000       155,000,000    
5.320% 07/16/07 (a)(b)     50,000,000       50,000,000    
Autumn House at Powder Mill, Inc.  
LOC: SunTrust Bank  
5.360% 02/01/28 (a)(b)     1,925,000       1,925,000    
Avatar Corp.  
LOC: Fifth Third Bank  
5.330% 05/01/39 (a)     1,750,000       1,750,000    
Bank of New York Co.  
5.388% 09/27/07 (a)(b)     125,000,000       125,000,000    
Banque Federative du Credit Mutuel  
5.330% 09/13/07 (a)(b)     500,000,000       500,000,000    
Barnes & Thornburg LLP  
LOC: Fifth Third Bank  
5.330% 07/01/08 (a)     1,630,000       1,630,000    
Barry-Wehmiller Group, Inc.  
LOC: Fifth Third Bank  
5.330% 05/01/18 (a)     3,990,000       3,990,000    
Bath Technology Associates Ltd.  
LOC: National City Bank  
5.380% 07/01/17 (a)     1,525,000       1,525,000    
Bear Stearns Co., Inc.  
5.667% 01/16/07 (a)     270,340,000       270,521,026    
Beckfield Properties LLC  
LOC: Fifth Third Bank  
5.330% 12/01/24 (a)     900,000       900,000    
Benjamin Rose Institute  
LOC: National City Bank  
5.330% 12/01/28 (a)     16,075,000       16,075,000    
Berks Medical Realty LP  
LOC: Wachovia Bank N.A.  
5.380% 03/01/26 (a)     4,205,000       4,205,000    

 

See Accompanying Notes to Financial Statements.

12


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
Best One Tire & Services LLC  
LOC: Fifth Third Bank  
5.330% 02/01/18 (a)     155,000       155,000    
BF Ft. Myers, Inc.  
LOC: Fifth Third Bank  
5.330% 11/01/17 (a)     12,635,000       12,635,000    
Bleach Tech / LDJ Seville Ltd.  
LOC: National City Bank  
5.380% 11/01/35 (a)     4,780,000       4,780,000    
Bluegrass Wireless LLC  
LOC: Fifth Third Bank  
5.330% 02/01/12 (a)     6,000,000       6,000,000    
BNP Paribas  
5.363% 08/17/07 (a)(b)     325,000,000       325,000,000    
Boozer Lumber  
LOC: Wachovia Bank N.A.  
5.380% 10/01/17 (a)     3,415,000       3,415,000    
Bracalente's Manufacturing Co., Inc.  
LOC: Wachovia Bank N.A.  
5.480% 06/01/08 (a)     530,000       530,000    
BRCH Corp.  
LOC: Wachovia Bank N.A.  
5.380% 12/01/28 (a)     8,000,000       8,000,000    
Brewster Dairy, Inc.  
LOC: National City Bank  
5.380% 04/03/23 (a)     5,255,000       5,255,000    
Brookville Enterprises, Inc.  
LOC: Fifth Third Bank  
5.330% 10/01/25 (a)     1,450,000       1,450,000    
Brookwood Baptist Church  
LOC: AmSouth Bank N.A.  
5.410% 12/01/23 (a)     4,420,000       4,420,000    
Brosis Finance LLC  
LOC: Branch Banking &
Trust Co.		  
5.330% 09/01/24 (a)     9,000,000       9,000,000    
Butler County Surgical Properties LLC  
LOC: Fifth Third Bank:  
5.330% 03/01/23 (a)     1,975,000       1,975,000    
5.330% 07/01/25 (a)     1,460,000       1,460,000    
Canal Pointe LLC  
LOC: Fifth Third Bank  
5.330% 12/01/13 (a)     1,300,000       1,300,000    

 

    Par ($)   Value ($)  
Capital Markets Access  
LOC: SunTrust Bank  
5.310% 11/01/30 (a)     9,325,000       9,325,000    
Carrera Capital Finance LLC  
5.314% 05/25/07 (a)(b)     100,000,000       100,000,000    
CC USA, Inc.  
5.365% 05/25/07 (a)(b)     175,000,000       174,984,525    
CCO LLC  
LOC: Fifth Third Bank  
5.330% 09/01/24 (a)     4,750,000       4,750,000    
Central Avenue Properties Ltd.  
LOC: Fifth Third Bank  
5.330% 11/01/23 (a)     1,225,000       1,225,000    
Central Concrete Supermix, Inc.  
LOC: SunTrust Bank  
5.310% 05/01/21 (a)     4,900,000       4,900,000    
Central Ohio Medical Textiles  
LOC: National City Bank  
5.330% 03/01/23 (a)     12,560,000       12,560,000    
Central Supply Co.  
LOC: Fifth Third Bank  
5.330% 08/01/23 (a)     3,715,000       3,715,000    
Chagrin Valley Partners LLC  
LOC: Fifth Third Bank  
5.330% 11/01/13 (a)     970,000       970,000    
Cheyne Finance LLC  
5.289% 07/25/07 (a)(b)     150,000,000       149,979,842    
5.292% 08/28/07 (a)(b)     150,000,000       149,977,928    
5.423% 06/25/07 (a)(b)     100,000,000       99,990,005    
Clinic Building LLC  
LOC: National City Bank  
5.380% 02/01/23 (a)     4,865,000       4,865,000    
Cole Investments LLC  
LOC: Fifth Third Bank  
5.330% 07/01/19 (a)     1,450,000       1,450,000    
Commodore Medical Services LP  
LOC: Fifth Third Bank  
5.330% 08/01/23 (a)     1,335,000       1,335,000    
Conestoga Wood Specialties Corp.  
LOC: Wachovia Bank N.A.  
5.330% 03/01/14 (a)     10,830,000       10,830,000    
Congregation Mkor Shalom  
LOC: Wachovia Bank N.A.  
5.430% 06/01/23 (a)     2,025,000       2,025,000    

 

See Accompanying Notes to Financial Statements.

13


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
Cornell Iron Works, Inc.  
LOC: Wachovia Bank N.A.  
5.380% 04/01/19 (a)     5,240,000       5,240,000    
Credit Agricole SA  
5.481% 08/23/07 (a)(b)     425,000,000       425,000,000    
Crescent Paper Tube Co.  
LOC: Fifth Third Bank  
5.330% 08/01/22 (a)     3,350,000       3,350,000    
Crestmont Realty Corp.  
LOC: Fifth Third Bank  
5.330% 11/01/22 (a)     4,210,000       4,210,000    
Crosspoint Community Church  
LOC: AmSouth Bank N.A.  
5.410% 09/01/23 (a)     4,830,000       4,830,000    
Cullinan Finance Corp.  
5.236% 09/05/06 (a)(b)     30,000,000       29,999,948    
5.294% 09/25/06 (a)(b)     150,000,000       150,000,000    
5.358% 05/23/07 (a)(b)     100,000,000       99,992,767    
5.360% 05/25/07 (a)(b)     250,000,000       249,981,781    
5.365% 08/15/07 (a)(b)     275,000,000       274,975,078    
5.397% 03/22/07 (a)(b)     180,000,000       179,990,038    
5.412% 05/15/07 (a)(b)     87,000,000       86,993,898    
5.458% 01/16/07 (a)(b)     100,000,000       99,996,226    
5.458% 01/18/07 (a)(b)     100,000,000       99,996,192    
Cumberland College  
LOC: Fifth Third Bank  
5.330% 10/01/23 (a)     2,600,000       2,600,000    
DAPSCO, Inc.  
LOC: Fifth Third Bank  
5.330% 02/01/15 (a)     1,505,000       1,505,000    
Dauphine Orleans Hotel Corp.  
LOC: AmSouth Bank N.A.  
5.410% 12/01/20 (a)     4,365,000       4,365,000    
Defiance Metal Co.  
LOC: ABN AMRO Bank  
5.420% 09/09/09 (a)     2,340,000       2,340,000    
Deltime LLC  
LOC: National City Bank  
5.380% 02/01/23 (a)     2,265,000       2,265,000    
Derby Fabricating LLC  
LOC: Fifth Third Bank  
5.330% 06/01/24 (a)     695,000       695,000    
DiGerinomo Aggregates  
LOC: National City Bank  
5.380% 01/01/15 (a)     4,960,000       4,960,000    

 

    Par ($)   Value ($)  
DJD Investments LLC  
LOC: AmSouth Bank N.A.  
5.410% 04/01/24 (a)     7,550,000       7,550,000    
Dominican Sisters  
LOC: Fifth Third Bank  
5.330% 10/01/23 (a)     3,850,000       3,850,000    
Don's Launderers-Cleaners, Inc.  
LOC: Fifth Third Bank  
5.330% 05/01/24 (a)(b)     3,150,000       3,150,000    
Dublin Building LLC  
LOC: National City Bank  
5.380% 11/01/18 (a)     1,720,000       1,720,000    
Eastridge Christian Assembly  
LOC: U.S. Bank N.A.  
5.350% 08/01/29 (a)     7,410,000       7,410,000    
Elder Land Development of
Tempa Bay Corp.		  
LOC: Fifth Third Bank  
5.330% 09/01/23 (a)     7,125,000       7,125,000    
Encore Commercial Development LLC  
LOC: Fifth Third Bank  
5.330% 06/01/23 (a)     1,460,000       1,460,000    
Evandale Surgical Properties LLC  
LOC: Fifth Third Bank  
5.330% 10/01/23 (a)     2,225,000       2,225,000    
Evangelical Community Church of
Bloomington Indiana, Inc.		  
LOC: Fifth Third Bank  
5.330% 07/01/23 (a)     2,280,000       2,280,000    
Exal Corp.  
LOC: Fifth Third Bank  
5.330% 03/01/09 (a)     2,455,000       2,455,000    
Executive Management Decisions, Inc.  
LOC: Fifth Third Bank  
5.330% 10/01/44 (a)     825,000       825,000    
Falls Village Realty LLC  
LOC: Fifth Third Bank  
5.330% 12/01/29 (a)     2,732,000       2,732,000    
Fannin and Fannin LLC  
LOC: Fifth Third Bank  
5.330% 12/01/24 (a)     1,900,000       1,900,000    
First Tennessee Bank
National Association		  
5.320% 09/17/07 (a)(b)     250,000,000       250,000,000    

 

See Accompanying Notes to Financial Statements.

14


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
First United Pentecostal
Church of West Monroe		  
LOC: AmSouth Bank N.A.  
5.410% 03/01/23 (a)     2,574,000       2,574,000    
Florida Orthopedic Institute
Surgery Center LLC		  
LOC: Wachovia Bank N.A.  
5.430% 01/01/26 (a)     3,280,000       3,280,000    
Fornell Associates LLC  
LOC: Fifth Third Bank  
5.330% 07/01/23 (a)     2,705,000       2,705,000    
Fortune 5 LLC  
LOC: Fifth Third Bank  
5.330% 05/01/21 (a)     1,435,000       1,435,000    
Franklin Avenue Associates LP  
Insured: AMBAC  
5.310% 01/01/23 (a)(b)     20,465,000       20,465,000    
Fresh Unlimited, Inc.  
LOC: Fifth Third Bank  
5.330% 11/01/44 (a)     930,000       930,000    
General Electric Capital Corp.  
5.430% 09/17/07 (a)     13,000,000       13,000,000    
Goldman Sachs Group, Inc.  
5.195% 08/16/07 (a)     200,000,000       200,000,000    
5.380% 09/14/07 (a)(b)     219,500,000       219,500,000    
5.385% 12/21/06 (a)(b)(c)     430,000,000       430,000,000    
5.390% 12/13/06 (a)(c)     675,000,000       675,000,000    
5.390% 09/13/07 (a)(b)(c)     510,000,000       510,000,000    
5.647% 01/09/07 (a)     89,690,000       89,738,055    
Grand Rapids Christian
School Association		  
LOC: Fifth Third Bank  
5.330% 09/01/28 (a)     3,520,000       3,520,000    
Green Street Surgery Center LLC  
LOC: National City Bank  
5.330% 03/01/23 (a)     4,755,000       4,755,000    
Greenbrier Partners LLC  
LOC: Columbus Bank &
Trust Co.		  
5.380% 08/01/19 (a)     3,360,000       3,360,000    
Greene River Packing, Inc.  
LOC: Wachovia Bank N.A.  
5.430% 11/01/16 (a)     1,300,000       1,300,000    
Han Sung Industries LLC  
LOC: Wachovia Bank N.A.  
5.430% 06/01/21 (a)     2,920,000       2,920,000    

 

    Par ($)   Value ($)  
Harbor Plaza LLC  
LOC: FHLB  
5.330% 07/01/49 (a)     2,000,000       2,000,000    
Harlan Development Co.  
LOC: Fifth Third Bank  
5.330% 12/01/23 (a)     7,061,750       7,061,750    
Harrier Finance Funding LLC  
5.365% 02/08/07 (a)(b)     175,000,000       174,993,587    
5.365% 02/22/07 (a)(b)     151,000,000       150,994,074    
Herman & Kittle Capital LLC  
LOC: FHLB  
5.370% 02/01/37 (a)     4,250,000       4,250,000    
Hospital Laundry Services, Inc.  
LOC: Wachovia Bank N.A.  
5.370% 08/01/23 (a)     6,895,000       6,895,000    
HSBC Bank USA  
5.339% 12/14/06 (a)     120,000,000       120,015,128    
Hudson Montessori School Project  
LOC: National City Bank  
5.380% 07/01/30 (a)     3,015,000       3,015,000    
Ice Land USA, Ltd.  
LOC: Fifth Third Bank  
5.330% 08/01/22 (a)     2,495,000       2,495,000    
Imaging Business Machines LLC  
LOC: AmSouth Bank N.A.  
5.430% 07/01/24 (a)     3,947,000       3,947,000    
Irish Life & Permanent PLC  
5.326% 09/21/07 (a)(b)     400,000,000       400,000,000    
Jackson Tube Service, Inc.  
LOC: Wachovia Bank N.A.  
5.430% 12/01/15 (a)     2,750,000       2,750,000    
JMB Realty Corp.  
LOC: Fifth Third Bank  
5.330% 05/01/22 (a)     2,190,000       2,190,000    
Joe Holland Chevrolet, Inc.  
LOC: Wachovia Bank N.A.  
5.330% 07/01/24 (a)     3,045,000       3,045,000    
Johnson Bible College  
LOC: AmSouth Bank N.A.  
5.410% 09/01/18 (a)     2,000,000       2,000,000    
Johnson Research & Development Co., Inc.  
LOC: Wachovia Bank N.A.  
5.430% 09/01/16 (a)     4,680,000       4,680,000    

 

See Accompanying Notes to Financial Statements.

15


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
JX Enterprises Group  
LOC: JPMorgan Chase Bank  
5.370% 07/01/14 (a)     115,000       115,000    
K2 (USA) LLC  
5.279% 09/25/06 (a)(b)     90,000,000       89,999,070    
5.289% 03/16/07 (a)(b)     175,000,000       174,990,628    
5.301% 03/19/07 (a)(b)     170,000,000       169,990,807    
5.365% 05/15/07 (a)(b)     120,000,000       119,991,584    
5.374% 03/22/07 (a)(b)     180,000,000       179,990,093    
5.405% 11/15/06 (a)(b)     150,000,000       150,006,769    
5.406% 05/10/07 (a)(b)     75,000,000       74,994,842    
5.450% 04/27/07 (a)(b)     72,000,000       71,997,159    
Kenwood Lincoln-Mercury  
LOC: National City Bank  
5.380% 05/01/15 (a)     4,390,000       4,390,000    
Kestrel Funding US LLC  
5.370% 08/02/07 (a)(b)     100,000,000       99,994,110    
5.410% 07/11/07 (a)(b)     150,000,000       149,993,136    
L & H Holdings LLC  
LOC: Wachovia Bank N.A.  
5.580% 12/01/24 (a)     2,680,000       2,680,000    
L.E. Pope Building Co.  
LOC: Wachovia Bank N.A.  
5.430% 11/01/13 (a)     10,025,000       10,025,000    
Laird Brothers LLC  
LOC: Wachovia Bank N.A.  
5.330% 02/01/28 (a)     3,475,000       3,475,000    
LAL Holding Co.  
LOC: Fifth Third Bank  
5.330% 08/01/19 (a)     720,000       720,000    
Lee Family Partnership LLC  
LOC: Wachovia Bank N.A.  
5.330% 06/01/34 (a)     4,400,000       4,400,000    
Lehman Brothers Holdings, Inc.  
5.320% 08/14/07 (a)     400,000,000       400,000,000    
Lehmann Property Group LLC  
LOC: Wachovia Bank N.A.  
5.330% 04/01/55 (a)     2,415,000       2,415,000    
Liberty Lighthouse Co. LLC  
5.191% 03/01/07 (a)(b)     75,000,000       74,992,562    
5.230% 06/08/07 (a)(b)     100,000,000       99,984,889    
5.426% 05/02/07 (a)(b)     200,000,000       199,976,100    

 

    Par ($)   Value ($)  
Links Finance LLC  
5.279% 10/25/06 (a)(b)     100,000,000       99,998,521    
5.285% 10/16/06 (a)(b)     18,000,000       17,999,545    
5.357% 09/01/06 (a)(b)     100,000,000       100,000,000    
5.375% 12/08/06 (a)(b)     150,000,000       149,993,959    
5.400% 11/24/06 (a)(b)     25,000,000       25,000,768    
Liquid Funding Ltd.  
5.230% 09/06/07 (a)(b)     100,000,000       99,980,000    
5.303% 09/28/07 (a)(b)     200,000,000       199,960,000    
Long Term Capital LLC  
LOC: Wachovia Bank N.A.  
5.480% 05/01/18 (a)     2,800,000       2,800,000    
LRC Meadows Investors LLC  
LOC: JPMorgan Chase Bank  
5.380% 12/01/34 (a)     1,300,000       1,300,000    
LTC Investors LLC  
LOC: National City Bank  
5.330% 11/01/24 (a)     2,275,000       2,275,000    
M&P Richfield LLC  
LOC: U.S. Bank N.A.  
5.380% 10/01/28 (a)     1,980,000       1,980,000    
Macatawa Capital Partners LLC  
LOC: Fifth Third Bank  
5.480% 04/01/29 (a)     155,000       155,000    
Manor Homes Holdings LLC  
LOC: Wachovia Bank N.A.  
5.330% 06/01/23 (a)     4,940,000       4,940,000    
Marital Trust  
LOC: AmSouth Bank N.A.  
5.410% 12/01/09 (a)     3,000,000       3,000,000    
Max Daetwyler Corp.  
LOC: Wachovia Bank N.A.  
5.530% 07/01/13 (a)     1,500,000       1,500,000    
Merrill Lynch & Co., Inc.  
5.306% 09/24/07 (a)     710,000,000       710,000,000    
5.310% 09/14/07 (a)     625,000,000       625,000,000    
5.521% 03/19/07 (a)     146,000,000       146,115,544    
5.550% 10/19/06 (a)     59,000,000       59,006,124    
5.615% 01/26/07 (a)     50,000,000       50,030,565    
Metropolitan Life Global Funding I  
5.411% 03/16/07 (a)(b)     125,500,000       125,568,328    
Meyer Cookware Industries, Inc.  
LOC: Banque National de
Paris NY		  
5.310% 05/01/27 (a)     6,365,000       6,365,000    

 

See Accompanying Notes to Financial Statements.

16


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
Michael J. Barry  
LOC: AmSouth Bank N.A.  
5.410% 11/01/24 (a)     5,725,000       5,725,000    
Michigan Equity Group LLC  
LOC: Fifth Third Bank  
5.330% 04/01/34 (a)     4,370,000       4,370,000    
Midtown Church of Christ  
LOC: Wachovia Bank N.A.  
5.530% 11/01/22 (a)     2,250,000       2,250,000    
Morgan Stanley  
5.398% 09/27/07 (a)     180,200,000       180,200,000    
5.410% 08/31/07 (a)     677,200,000       677,200,000    
5.456% 09/04/07 (a)     499,000,000       499,000,000    
5.530% 02/15/07 (a)     83,295,000       83,348,234    
5.640% 01/12/07 (a)     425,000,000       425,255,803    
MRN LP  
LOC: U.S. Bank N.A.  
5.380% 10/01/13 (a)     3,785,000       3,785,000    
Multimetco, Inc.  
LOC: AmSouth Bank N.A.  
5.400% 09/01/18 (a)     2,715,000       2,715,000    
National Rural Utilities
Cooperative Finance Corp.		  
5.392% 08/31/07 (a)     320,000,000       320,000,000    
Nebar Investments LLC  
LOC: Fifth Third Bank  
5.330% 07/01/50 (a)     1,880,000       1,880,000    
Neighborhood Properties, Inc.  
LOC: Fifth Third Bank  
5.330% 09/01/23 (a)     2,115,000       2,115,000    
Ness Family Partners LP  
LOC: Banque National de
Paris NY		  
5.360% 09/01/34 (a)     6,026,294       6,026,294    
New Lexington Clinic PSC  
LOC: Fifth Third Bank  
5.330% 05/01/18 (a)     3,435,000       3,435,000    
Nick and Nat Properties LLC  
LOC: Fifth Third Bank  
5.330% 05/01/25 (a)     11,755,000       11,755,000    
Nordea Bank AB  
5.348% 09/07/07 (a)(b)     300,000,000       300,000,000    

 

    Par ($)   Value ($)  
Northern Rock PLC  
5.353% 07/09/07 (a)(b)     101,500,000       101,532,066    
5.406% 09/05/07 (a)(b)     861,000,000       861,022,634    
5.550% 10/20/06 (a)(b)     15,500,000       15,501,203    
Nosam LLC  
LOC: Wachovia Bank N.A.  
5.330% 04/01/24 (a)     3,285,000       3,285,000    
Ohio Venture Capital Funding LLC  
LOC: Fifth Third Bank  
5.330% 12/01/16 (a)     5,000,000       5,000,000    
Okolona Christian Church Project  
LOC: National City Bank  
5.380% 11/01/22 (a)     6,938,000       6,938,000    
Pearlstine Distributors, Inc.  
LOC: Wachovia Bank N.A.  
5.380% 03/01/23 (a)     4,265,000       4,265,000    
Persimmon Ridge Golf Course  
LOC: Fifth Third Bank  
5.330% 04/01/14 (a)     2,725,000       2,725,000    
Petitti Enterprise, Inc.  
LOC: Fifth Third Bank  
5.330% 08/01/23 (a)     2,000,000       2,000,000    
Pike Street Properties LLC  
LOC: Fifth Third Bank  
5.330% 12/01/23 (a)     2,395,000       2,395,000    
Pilot Drive Properties LLC  
LOC: JPMorgan Chase Bank  
5.370% 02/01/35 (a)     7,785,000       7,785,000    
Pomeroy Investments LLC  
LOC: Fifth Third Bank  
5.330% 06/01/22 (a)     2,190,000       2,190,000    
Precision Radiotherapy LLC  
LOC: Fifth Third Bank  
5.330% 08/01/18 (a)     2,170,000       2,170,000    
Premier Asset Collateralized Entity LLC  
5.290% 09/06/06 (a)(b)     50,000,000       49,999,931    
5.330% 09/01/06 (a)(b)     50,000,000       50,000,000    
5.477% 01/16/07 (a)(b)     110,000,000       110,000,000    
Prevea Clinic, Inc.  
LOC: Wells Fargo Bank N.A.  
5.280% 12/01/34 (a)     4,000,000       4,000,000    
PRL Corp.  
LOC: Fifth Third Bank  
5.370% 07/01/21 (a)     4,748,000       4,748,000    

 

See Accompanying Notes to Financial Statements.

17


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
PS Greetings, Inc.  
LOC: ABN AMRO Bank  
5.480% 12/01/33 (a)     810,000       810,000    
RDR Investment Co. LLC  
LOC: Wachovia Bank N.A.  
5.530% 11/01/19 (a)     1,500,000       1,500,000    
Red Lion Evangelical Association, Inc.  
LOC: Wachovia Bank N.A.  
5.530% 01/01/25 (a)     1,025,000       1,025,000    
Redcay Funding LLC  
LOC: Royal Bank of Scotland  
5.340% 09/01/30 (a)     12,590,000       12,590,000    
LOC: SunTrust Bank:  
5.340% 11/01/25 (a)     2,080,000       2,080,000    
5.340% 10/01/30 (a)     1,675,000       1,675,000    
Rogers, Inc.  
LOC: Fifth Third Bank  
5.330% 10/01/39 (a)     215,000       215,000    
RT Anderson LLC  
LOC: Regions Bank  
5.380% 01/01/29 (a)     5,755,000       5,755,000    
S&S Firestone, Inc.  
LOC: JPMorgan Chase Bank  
5.370% 12/01/33 (a)     8,225,000       8,225,000    
Sahtooma LLC  
LOC: Wachovia Bank N.A.  
5.480% 04/01/15 (a)     3,770,000       3,770,000    
Schulte Corp.  
LOC: Fifth Third Bank  
5.330% 09/01/24 (a)     2,900,000       2,900,000    
Security Self-Storage, Inc.  
LOC: Fifth Third Bank  
5.330% 05/01/35 (a)     2,800,000       2,800,000    
Sedna Finance, Inc.  
5.231% 06/05/07 (a)(b)     100,000,000       99,992,411    
5.240% 12/08/06 (a)(b)     45,000,000       44,998,546    
5.295% 10/16/06 (a)(b)     194,500,000       194,498,664    
5.360% 05/25/07 (a)(b)     70,000,000       69,994,899    
5.365% 05/15/07 (a)(b)     75,000,000       74,994,740    
5.370% 05/18/07 (a)(b)     85,000,000       84,993,968    
5.460% 04/13/07 (a)(b)     100,000,000       99,993,863    
5.467% 01/17/07 (a)(b)     150,000,000       149,994,329    
Servaas, Inc.  
LOC: Fifth Third Bank  
5.330% 03/01/13 (a)     5,190,000       5,190,000    

 

    Par ($)   Value ($)  
Seventh Avenue Associates  
LOC: National City Bank  
5.380% 01/01/27 (a)     6,460,000       6,460,000    
Shephard Family Trust  
LOC: Columbus Bank &
Trust Co. 		 
5.380% 05/01/24 (a)     8,720,000       8,720,000    
Shepherd Capital LLC  
LOC: Wachovia Bank N.A.  
5.480% 03/15/49 (a)     1,830,000       1,830,000    
Sigma Finance, Inc.  
4.850% 02/12/07 (b)     269,000,000       269,000,000    
5.200% 04/13/07 (b)     200,000,000       200,000,000    
5.200% 04/20/07 (b)     200,000,000       200,000,000    
5.320% 11/16/06 (a)(b)     400,000,000       399,993,812    
5.320% 11/17/06 (a)(b)     100,000,000       99,997,890    
5.320% 11/22/06 (a)(b)     100,000,000       99,997,753    
5.330% 01/19/07 (a)(b)     165,000,000       165,018,132    
5.356% 03/16/07 (a)(b)     231,000,000       230,987,629    
5.500% 01/18/07 (a)(b)     25,000,000       25,002,285    
5.750% 07/25/07 (b)     100,000,000       100,000,000    
SJD Service Co.  
LOC: Fifth Third Bank  
5.330% 10/01/23 (a)     2,745,000       2,745,000    
Skeletal Properties LLC  
LOC: Fifth Third Bank:  
5.330% 11/01/14 (a)     1,820,000       1,820,000    
5.330% 06/01/34 (a)     900,000       900,000    
SLM Corp.  
5.325% 09/20/07 (a)(b)     162,000,000       162,004,822    
5.330% 09/12/07 (a)(b)     65,000,000       65,000,000    
5.605% 01/25/07 (a)(b)     67,000,000       67,035,489    
SMM Trust  
5.466% 02/02/07 (a)(b)     66,736,000       66,736,000    
South Bend Mac LP  
LOC: LaSalle Bank N.A.  
5.320% 12/01/27 (a)     6,832,000       6,832,000    
South Georgia Motor Sports Park LLC  
LOC: Columbus Bank &
Trust Co. 		 
5.380% 06/01/24 (a)     2,910,000       2,910,000    
Southland Tube, Inc.  
LOC: Wachovia Bank N.A.  
5.400% 06/01/10 (a)     4,425,000       4,425,000    

 

See Accompanying Notes to Financial Statements.

18


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
Southtown Partners LLC  
LOC: Fifth Third Bank  
5.330% 12/01/44 (a)     1,922,500       1,922,500    
Spartan Medical Facility  
LOC: Fifth Third Bank  
5.330% 12/01/26 (a)     1,500,000       1,500,000    
Springside Corp. Exchange
Partners I LLC		  
LOC: U.S. Bank N.A.  
5.380% 02/01/36 (a)     2,070,000       2,070,000    
Stanfield Victoria Funding LLC  
4.850% 02/23/07 (b)     100,000,000       100,000,000    
5.284% 11/27/06 (a)(b)     100,000,000       99,995,297    
5.304% 09/25/07 (a)(b)     200,000,000       199,986,429    
5.374% 03/20/07 (a)(b)     100,000,000       99,994,521    
5.384% 03/21/07 (a)(b)     100,000,000       99,994,493    
5.406% 05/10/07 (a)(b)     100,000,000       99,993,123    
5.435% 01/25/07 (a)(b)     150,000,000       149,988,000    
5.670% 06/20/07 (b)     50,000,000       50,000,000    
5.670% 06/22/07 (b)     65,000,000       65,000,000    
5.750% 07/25/07 (b)     100,000,000       100,000,000    
State Crest Ltd.  
LOC: Fifth Third Bank  
5.330% 06/12/23 (a)     1,200,000       1,200,000    
Stephens & Stephens XII LLC  
LOC: Bank of the West  
5.360% 01/01/35 (a)     2,695,000       2,695,000    
Sumner Medical Plaza LLC  
LOC: Fifth Third Bank  
5.330% 10/01/10 (a)     3,335,000       3,335,000    
Suncoast Beverage Sales LP  
LOC: Wachovia Bank N.A.  
5.330% 06/01/16 (a)(b)     15,905,000       15,905,000    
Supreme Beverage Co.  
LOC: AmSouth Bank N.A.  
5.410% 04/01/19 (a)     5,100,000       5,100,000    
Tack Capital Co.  
LOC: Wachovia Bank N.A.  
5.380% 06/01/31 (a)     9,110,000       9,110,000    
Tango Finance Corp.  
4.850% 02/23/07 (b)     75,000,000       75,000,000    
5.360% 05/25/07 (a)(b)     145,500,000       145,489,367    
5.365% 11/13/06 (a)(b)     87,000,000       86,998,283    
5.406% 05/10/07 (a)(b)     45,000,000       44,996,905    
5.460% 06/29/07 (a)(b)     50,000,000       49,993,011    

 

    Par ($)   Value ($)  
Temple Beth AHM  
LOC: Wachovia Bank N.A.  
5.480% 12/01/21 (a)     2,030,000       2,030,000    
Tireless Corp.  
LOC: Fifth Third Bank  
5.330% 04/01/19 (a)     2,230,000       2,230,000    
Titan Holdings Group LLC  
LOC: Fifth Third Bank  
5.330% 05/01/12 (a)     1,145,000       1,145,000    
Turf Valley, Inc.  
LOC: Wachovia Bank N.A.  
5.430% 08/01/14 (a)     7,002,000       7,002,000    
Unicredito Italiano Bank Ireland  
5.340% 09/14/07 (a)(b)     900,000,000       900,000,000    
5.378% 09/07/07 (a)(b)     1,040,000,000       1,040,000,000    
Union Hospital, Inc.  
LOC: Fifth Third Bank  
5.330% 09/01/25 (a)     2,100,000       2,100,000    
United Steel Deck, Inc.  
LOC: Wachovia Bank N.A.  
5.430% 10/01/14 (a)     4,630,000       4,630,000    
Valleydale Baptist Church  
LOC: AmSouth Bank N.A.  
5.410% 12/01/23 (a)     25,000       25,000    
Wells Fargo & Co.  
5.340% 09/14/07 (a)(b)     10,000,000       10,000,000    
5.419% 09/15/06 (a)     10,480,000       10,480,485    
Wellstone Mills LLC  
LOC: PNC Bank Co.  
5.340% 12/15/24 (a)(b)     9,200,000       9,200,000    
West Coast Pack LLC  
LOC: LaSalle Bank N.A.  
5.360% 07/01/35 (a)     3,400,000       3,400,000    
West Ridge Enterprises  
LOC: Wachovia Bank N.A.  
5.430% 12/01/13 (a)     6,300,000       6,300,000    
Whistlejacket Capital LLC  
5.280% 01/22/07 (a)(b)     50,000,000       49,997,078    
5.323% 11/09/06 (a)(b)     100,000,000       99,997,164    
5.440% 01/29/07 (a)(b)     100,000,000       99,991,826    
White Pine Finance LLC  
5.196% 06/07/07 (a)(b)     150,000,000       149,989,405    
5.376% 05/17/07 (a)(b)     147,000,000       146,979,219    
5.458% 04/18/07 (a)(b)     112,000,000       111,992,973    

 

See Accompanying Notes to Financial Statements.

19


Columbia Cash Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
Wilson Real Estate II  
LOC: National City Bank  
5.380% 10/01/30 (a)     2,835,000       2,835,000    
Word of Deliverance Ministries
for The World		  
LOC: Fifth Third Bank  
5.330% 12/01/24 (a)     2,000,000       2,000,000    
YMBK at Beavercreek  
LOC: Fifth Third Bank  
5.330% 07/01/30 (a)     4,790,000       4,790,000    
Zang Skidmore, Inc.  
LOC: Fifth Third Bank  
5.330% 09/01/23 (a)     2,100,000       2,100,000    
Zoological Society of Philadelphia  
LOC: Wachovia Bank N.A.  
5.330% 06/01/18 (a)     8,460,000       8,460,000    
Total Corporate Bonds
(Cost of $24,262,056,418)		             24,262,056,418    

 

Certificates of Deposit – 22.4%

ABN AMRO Bank NV  
5.380% 06/13/07 (a)     400,000,000       400,000,000    
American Express Bank FSB  
5.298% 02/28/07 (a)     85,000,000       85,000,000    
Bank of Tokyo Mitsubishi
Ltd. NY		  
4.770% 12/29/06     600,000,000       600,000,000    
4.800% 01/11/07     744,000,000       744,000,000    
4.850% 01/03/07     480,650,000       480,650,000    
Barclays Bank PLC NY  
5.450% 06/12/07     739,000,000       739,000,000    
5.500% 06/18/07     284,000,000       284,000,000    
Canadian Imperial Bank of
Commerce NY		  
4.803% 12/05/06     432,250,000       432,250,122    
5.410% 03/15/08 (a)     20,000,000       20,000,000    
Credit Agricole Indo NY  
5.420% 06/04/07     100,000,000       99,974,013    
Credit Agricole SA  
5.000% 03/09/07     581,000,000       581,000,000    
5.260% 04/05/07     546,250,000       546,250,000    
5.300% 04/18/07     704,000,000       704,000,000    
5.520% 06/18/07     284,000,000       284,000,000    

 

    Par ($)   Value ($)  
Credit Suisse NY  
5.250% 04/03/07     700,000,000       700,000,000    
5.473% 10/18/06 (a)     800,000,000       800,000,000    
DEPFA Bank PLC NY  
4.800% 12/05/06     371,250,000       371,250,000    
5.369% 06/15/07 (a)     125,000,000       125,001,776    
Deutsche Bank AG  
4.805% 02/21/07     646,000,000       646,000,000    
4.950% 02/06/07     590,000,000       590,000,000    
KeyBank N.A.  
5.000% 07/17/07     2,600,000       2,589,037    
Landesbank Baden-Wuerttemberg
Girozentrale NY		  
5.439% 09/29/06 (a)     75,000,000       74,997,033    
Natexis Banques Populaires NY  
5.010% 02/12/07     576,250,000       576,250,000    
5.055% 02/21/07     632,000,000       632,000,000    
5.350% 01/29/07 (a)     500,000,000       500,000,000    
5.410% 08/13/07 (a)     728,000,000       728,000,000    
Nordea Bank Finland PLC NY  
5.342% 10/02/06 (a)     20,000,000       19,999,431    
Royal Bank of Canada NY  
5.367% 12/22/06 (a)     453,500,000       453,451,171    
Societe Generale  
5.460% 09/04/07     232,000,000       232,000,000    
5.500% 06/18/07     284,000,000       284,000,000    
Svenska Handelsbanken NY  
5.265% 09/20/06 (a)     800,000,000       799,991,729    
Unicredito Italiano NY  
5.178% 09/01/06 (a)     100,000,000       100,000,000    
5.218% 09/08/06 (a)     90,000,000       89,999,351    
5.243% 12/11/06 (a)     35,000,000       34,995,743    
5.425% 10/04/06 (a)     167,000,000       166,992,829    
5.468% 10/03/06 (a)     405,000,000       404,994,722    
Total Certificates of Deposit
(Cost of $14,332,636,957)		             14,332,636,957    

 

Commercial Paper – 11.8%

Amstel Funding Corp.  
5.295% 11/15/06 (b)(d)     200,000,000       197,793,750    
Cafco LLC  
5.270% 11/20/06 (b)(d)     100,000,000       98,828,889    
Cancara Asset Securitisation  
5.290% 11/13/06 (b)(d)     76,059,000       75,243,119    

 

See Accompanying Notes to Financial Statements.

20


Columbia Cash Reserves (August 31, 2006)

Commercial Paper (continued)

    Par ($)   Value ($)  
Carrera Capital Finance LLC  
5.380% 09/15/06 (b)(d)     7,000,000       6,985,354    
Ciesco, Inc.  
5.265% 11/22/06 (b)(d)     150,000,000       148,201,125    
Clipper Receivables Co. LLC  
5.290% 11/08/06 (d)     63,000,000       62,370,490    
Concord Minutemen Capital
Co. LLC		  
5.330% 09/05/06 (b)(d)     238,452,000       238,310,783    
Countrywide Financial Corp.  
5.300% 09/01/06 (d)     567,227,000       567,227,000    
CRC Funding LLC  
5.290% 11/01/06 (b)(d)     60,543,000       60,000,316    
Crown Point Capital Co. LLC  
5.280% 11/02/06 (b)(d)     81,351,000       80,611,248    
5.291% 03/15/07 (a)(b)     150,000,000       149,983,543    
5.450% 10/20/06 (a)(b)     150,000,000       149,995,984    
Dresdner US Finance Inc.  
5.270% 11/20/06 (d)     100,000,000       98,828,889    
East-Fleet Finance LLC  
5.280% 11/29/06 (b)(d)     100,000,000       98,694,667    
Fcar Owner Trust I  
5.290% 10/16/06 (d)     112,000,000       111,259,400    
Gemini Securitization Corp.  
5.270% 11/10/06 (b)(d)     50,000,000       49,487,639    
Giro Balanced Funding Corp.  
5.280% 09/08/06 (b)(d)     111,585,000       111,470,439    
5.280% 09/20/06 (b)(d)     385,420,000       384,345,963    
5.300% 09/01/06 (b)(d)     264,573,000       264,573,000    
Grampian Funding LLC  
5.230% 12/08/06 (b)(d)     250,000,000       246,440,695    
5.280% 12/11/06 (b)(d)     148,250,000       146,053,923    
Harrier Finance Funding LLC  
5.280% 10/04/06 (b)(d)     74,000,000       73,641,840    
Klio III Funding Corp.  
5.280% 10/20/06 (b)(d)     106,337,000       105,572,791    
Lexington Parker Capital Corp.  
5.221% 09/05/06 (a)(b)     250,000,000       249,999,428    
5.280% 12/01/06 (b)(d)     126,746,000       125,054,363    
5.290% 09/01/06 (b)(d)     130,064,000       130,064,000    
5.290% 11/06/06 (b)(d)     179,671,000       177,928,491    
5.290% 11/13/06 (b)(d)     47,700,000       47,188,325    
5.343% 11/20/06 (a)(b)     100,000,000       99,995,650    
5.352% 02/12/07 (a)(b)     200,000,000       199,982,191    
5.376% 11/17/06 (a)(b)     238,000,000       237,990,105    
5.390% 02/09/07 (b)(d)     250,000,000       249,977,250    
5.457% 01/05/07 (a)(b)     300,000,000       299,979,308    

 

    Par ($)   Value ($)  
New Center Asset Trust  
5.270% 12/08/06 (d)     200,000,000       197,130,778    
Paradigm Funding LLC  
5.280% 09/01/06 (b)(d)     447,000,000       447,000,000    
Rhineland Funding Capital Corp.  
5.280% 09/06/06 (b)(d)     72,401,000       72,347,906    
5.280% 09/08/06 (b)(d)     46,500,000       46,452,260    
5.280% 09/15/06 (b)(d)     100,000,000       99,794,667    
5.280% 09/21/06 (b)(d)     6,114,000       6,096,066    
5.310% 11/22/06 (b)(d)     101,623,000       100,393,870    
5.406% 02/16/07 (a)(b)     41,000,000       40,997,009    
5.416% 02/20/07 (a)(b)     49,000,000       48,997,846    
5.416% 02/21/07 (a)(b)     97,000,000       96,995,011    
5.448% 02/05/07 (a)(b)     112,000,000       111,995,424    
5.460% 02/07/07 (a)(b)     159,000,000       158,993,144    
Silver Tower US Funding  
5.280% 11/29/06 (b)(d)     70,000,000       69,086,267    
Spintab Swedmortgage AB  
5.270% 11/28/06 (d)     300,000,000       296,135,333    
Stanfield Victoria Funding LLC  
5.290% 11/07/06 (b)(d)     100,000,000       99,015,472    
Sunbelt Funding Corp.  
5.300% 11/02/06 (b)(d)     96,216,000       95,337,762    
5.340% 09/05/06 (b)(d)     50,915,000       50,884,790    
White Pine Finance LLC  
5.173% 02/01/07 (a)(b)     65,026,000       65,020,921    
5.193% 02/27/07 (a)(b)     75,058,000       75,052,765    
Total Commercial Paper
(Cost of $7,521,807,249)		             7,521,807,249    

 

Extendible Commercial Notes – 7.4%

Brahms Funding Corp.  
5.290% 09/08/06 (b)(d)     311,017,000       310,697,084    
5.330% 09/06/06 (b)(d)     175,000,000       174,870,451    
Capital One Multi-Asset
Execution Trust		  
5.290% 10/19/06 (b)(d)     120,000,000       119,153,600    
5.300% 11/07/06 (b)(d)     55,000,000       54,457,486    
Deer Valley Funding LLC  
5.280% 09/12/06 (b)(d)     100,000,000       99,838,667    
5.280% 09/13/06 (b)(d)     102,000,000       101,820,480    
5.290% 09/22/06 (b)(d)     39,359,000       39,237,545    
5.300% 11/01/06 (b)(d)     160,224,000       158,785,099    
5.300% 11/06/06 (b)(d)     112,416,000       111,323,691    
5.350% 09/08/06 (b)(d)     211,603,000       211,382,874    

 

See Accompanying Notes to Financial Statements.

21


Columbia Cash Reserves (August 31, 2006)

Extendible Commercial Notes (continued)

    Par ($)   Value ($)  
Ivory Funding Corp.  
5.290% 09/26/06 (b)(d)     82,906,000       82,601,436    
KKR Atlantic Funding Trust  
5.300% 09/20/06 (b)(d)     105,743,000       105,447,213    
KKR Pacific Funding Trust  
5.300% 09/25/06 (b)(d)     100,000,000       99,646,667    
5.310% 09/25/06 (b)(d)     240,510,000       239,658,595    
5.370% 09/05/06 (b)(d)     173,759,000       173,655,324    
Ormond Quay Funding LLC  
5.285% 01/12/07 (a)(b)     365,000,000       364,980,149    
Rams Funding LLC  
5.300% 09/08/06 (b)(d)     124,769,000       124,640,419    
5.300% 09/20/06 (b)(d)     229,214,000       228,572,206    
Rams Funding Two LLC  
5.300% 09/19/06 (b)(d)     114,173,000       113,870,441    
5.310% 09/20/06 (b)(d)     124,609,000       124,259,783    
Thornburg Mortgage Capital
Resources LLC		  
5.300% 09/12/06 (b)(d)     140,000,000       139,773,278    
5.300% 09/25/06 (b)(d)     230,000,000       229,187,333    
5.370% 09/05/06 (b)(d)     75,000,000       74,955,250    
5.370% 01/03/07 (a)(b)     300,000,000       299,989,670    
5.380% 10/03/06 (a)(b)     250,000,000       249,997,818    
5.380% 12/04/06 (a)(b)     200,000,000       199,994,906    
Tulip Funding Corp.  
5.370% 09/01/06 (b)(d)     332,552,000       332,552,000    
Versailles CDS LLC  
5.280% 11/07/06 (b)(d)     50,000,000       49,508,667    
5.290% 10/10/06 (b)(d)     100,000,000       99,426,917    
Total Extendible Commercial Notes
(Cost of $4,714,285,049)		             4,714,285,049    

 

Time Deposit – 5.2%

Calyon  
5.280% 09/01/06     300,000,000       300,000,000    
Chase Manhattan Bank
USA N.A.		  
5.280% 09/01/06     800,000,000       800,000,000    
KeyBank N.A.  
5.280% 09/01/06     500,000,000       500,000,000    
Societe Generale  
5.300% 09/01/06     1,200,000,000       1,200,000,000    

 

    Par ($)   Value ($)  
SunTrust Bank  
5.313% 09/01/06     544,787,000       544,787,000    
Total Time Deposit
(Cost of $3,344,787,000)		         3,344,787,000    

 

Asset-Backed Securities – 5.1%

Carlyle Loan Investment Ltd.  
5.389% 01/15/07 (a)(b)(c)     25,000,000       25,000,000    
5.567% 11/15/06 (a)(b)(c)     125,000,000       125,000,000    
Cheyne High Grade ABS
CDO, Ltd.		  
5.466% 11/10/06 (a)(b)     300,000,000       300,000,000    
Davis Square Funding Ltd.  
5.400% 10/16/38 (a)(b)(c)     150,000,000       150,000,000    
Granite Master Issuer PLC  
5.295% 08/20/54 (a)(b)     250,000,000       250,000,000    
Interstar Millennium Trust  
5.308% 05/27/38 (a)(b)     250,000,000       250,000,000    
Mound Financing PLC  
5.380% 11/08/06 (a)(b)     280,000,000       280,000,000    
Paragon Mortgages PLC  
5.310% 11/15/38 (a)(b)     685,000,000       685,000,000    
5.320% 10/15/41 (a)(b)     288,604,518       288,604,518    
5.330% 06/15/41 (a)(b)     597,437,394       597,437,394    
Putnam Structured
Product CDO		  
5.410% 01/15/38 (a)(b)(c)     176,000,000       176,000,000    
5.500% 11/25/05 (a)(b)(c)     50,000,000       50,000,000    
Saturn Ventures II, Inc.  
5.480% 11/07/06 (a)(b)(c)     100,000,000       100,000,000    
Total Asset-Backed Securities
(Cost of $3,277,041,912)		             3,277,041,912    

 

Funding Agreements – 2.1%

Genworth Life Insurance Co.  
5.506% 05/16/07 (a)(c)     100,000,000       100,000,000    
Jackson National Life
Global Funding		  
5.326% 09/24/07 (a)(b)(c)     300,000,000       300,000,000    
5.410% 06/14/07 (a)(c)     50,000,000       50,000,000    
Metropolitan Life Funding, Inc.  
5.580% 07/28/07 (a)(c)     182,000,000       182,000,000    
Metropolitan Life Insurance Co.  
5.587% 02/08/07 (a)(c)     50,000,000       50,000,000    

 

See Accompanying Notes to Financial Statements.

22


Columbia Cash Reserves (August 31, 2006)

Funding Agreements (continued)

    Par ($)   Value ($)  
Monumental Life  
5.473% 06/22/07 (a)(c)     300,000,000       300,000,000    
Transamerica Occidental
Life Insurance Co.		  
5.540% 10/01/07 (a)(c)     125,000,000       125,000,000    
5.620% 10/01/07 (a)(c)     20,000,000       20,000,000    
5.640% 10/01/07 (a)(c)     117,000,000       117,000,000    
5.670% 10/01/07 (a)(c)     100,000,000       100,000,000    
Total Funding Agreements
(Cost of $1,344,000,000)		             1,344,000,000    

 

Municipal Bonds – 1.1%

Alabama – 0.0%  
AL Albertville Industrial
Development Board		  
Mitchell Grocery Group,  
Series 2004,  
LOC: Regions Bank  
5.360% 05/01/24 (a)     7,800,000       7,800,000    
AL City of Atmore  
Series 2004 B,  
LOC: Wachovia Bank N.A.  
5.380% 01/01/34 (a)     2,625,000       2,625,000    
AL Montgomery  
Series 2003,  
LOC: SouthTrust Bank N.A.,  
LOC: Wachovia Bank N.A.  
5.330% 11/01/23 (a)     1,500,000       1,500,000    
Alabama Total             11,925,000    
California – 0.1%  
CA Access to Loans for Learning
Student Corp.		  
Series 2001 II-A-6,  
LOC: State Street Bank &
Trust Co.		  
5.300% 07/01/36 (a)     12,300,000       12,300,000    
CA Educational Facilities Authority  
University of Judaism,  
Series 1998 B,  
LOC: Allied Irish Bank  
5.380% 12/01/28 (a)     5,900,000       5,900,000    

 

    Par ($)   Value ($)  
CA San Diego Metropolitan
Transportation Development Board		  
Series 2004 B,  
Insured: MBIA,  
SPA: Dexia Credit Local  
5.320% 12/01/33 (a)     17,595,000       17,595,000    
CA Statewide Communities
Development Authority		  
Series 2003,  
LOC: FHLB  
5.350% 06/01/36 (a)     2,500,000       2,500,000    
California Total             38,295,000    
Colorado – 0.0%  
CO Denver City & County
Certificates of Participation		  
Series 2002 B,  
Insured: MBIA,  
LOC: JPMorgan Chase Bank  
5.280% 12/01/21 (a)     1,000,000       1,000,000    
Colorado Total             1,000,000    
Connecticut – 0.0%  
CT Industrial Development Revenue  
Latex Foam International,  
Series 2002,  
LOC: Wachovia Bank N.A.  
5.430% 01/01/10 (a)     6,725,000       6,725,000    
Connecticut Total             6,725,000    
Florida – 0.5%  
FL Homestead  
Series 2003,  
LOC: SunTrust Bank  
5.310% 11/01/18 (a)     6,290,000       6,290,000    
FL Housing Finance Corp.  
Waterford Pointe
Apartments Ltd.,		  
Series E-2,  
LOC: FNMA  
5.410% 02/15/33 (a)     1,050,000       1,050,000    
FL Hurricane Catastrophe Fund  
Series 2006 B,  
5.340% 08/15/07 (a)     318,000,000       318,000,000    
Florida Total             325,340,000    

 

See Accompanying Notes to Financial Statements.

23


Columbia Cash Reserves (August 31, 2006)

Municipal Bonds (continued)

Georgia – 0.1%  
    Par ($)   Value ($)  
GA Athens Clarke
County Industrial
Development Authority		  
Series 1997,  
LOC: U.S. Bank N.A.,  
LOC: SunTrust Bank  
5.370% 07/01/07 (a)     5,000,000       5,000,000    
GA Burke County Industrial
Development Authority		  
Fleetguard, Inc.,  
Series 2003,  
LOC: Fifth Third Bank  
5.330% 08/01/18 (a)     1,345,000       1,345,000    
GA Columbus
Development Authority		  
Sunbelt-Columbus LLC  
Series 2003,  
LOC: Regions Bank  
5.380% 08/01/23 (a)     3,300,000       3,300,000    
Woodmont Properties,  
Series 2004,  
LOC: Columbia Bank & Trust  
5.380% 12/01/24 (a)     6,360,000       6,360,000    
GA DeKalb County
Development Authority		  
Emory University,  
Series 1995 B,  
5.320% 11/01/25 (a)     12,170,000       12,170,000    
GA Private Colleges &
Universities Authority		  
Emory University,  
Series 1999 B,  
5.320% 11/01/29 (a)     9,350,000       9,350,000    
GA Talbot County Development
Authority Industrial
Development Revenue		  
Junction City Mining Co.,  
Series 2000,  
LOC: Wachovia Bank N.A.  
5.430% 03/01/13 (a)     105,000       105,000    
Georgia Total             37,630,000    
Illinois – 0.1%  
IL Finance Authority  
Midwest Molding, Inc.,  
Series 2005,  
LOC: Royal American Bank,  
LOC: FHLB  
5.380% 07/01/40 (a)     6,780,000       6,780,000    

 

    Par ($)   Value ($)  
IL Memorial Health System  
Memorial Health System,  
Series 2004,  
LOC: JPMorgan Chase Bank  
5.320% 10/01/24 (a)     20,780,000       20,780,000    
Illinois Total             27,560,000    
Indiana – 0.0%  
IN Development Finance
Authority Industrial
Development Revenue		  
Series 2003 B,  
LOC: Fifth Third Bank  
5.330% 07/01/23 (a)     950,000       950,000    
IN Michigan City Economic
Development Revenue		  
Consolidated Biscuit Co.  
Series 1998,  
LOC: Fifth Third Bank  
5.330% 10/01/13 (a)     1,920,000       1,920,000    
Indiana Total             2,870,000    
Kansas – 0.0%  
KS Manhattan Industrial
Development Revenue		  
Florence Corp.,  
Series 2003,  
LOC: Harris Trust Co.
of California		  
5.370% 04/01/28 (a)     6,800,000       6,800,000    
Kansas Total             6,800,000    
Kentucky – 0.0%  
KY Covington Industrial
Building Revenue		  
Series 2004,  
LOC: Fifth Third Bank  
5.330% 10/01/27 (a)     2,090,000       2,090,000    
KY Henderson Regional Industrial
Development Authority		  
Series 2003,  
LOC: Fifth Third Bank  
5.330% 07/01/23 (a)     1,525,000       1,525,000    
KY Pioneer Village Industrial
Building Revenue		  
Series 2003 B,  
LOC: Fifth Third Bank  
5.330% 08/01/23 (a)     1,890,000       1,890,000    

 

See Accompanying Notes to Financial Statements.

24


Columbia Cash Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
KY Webster County
Industrial Revenue		  
Green River Collieries LLC,  
Series 2004,  
LOC: Regions Bank  
5.330% 11/01/24 (a)     7,800,000       7,800,000    
Kentucky Total             13,305,000    
Maryland – 0.1%  
MD Baltimore Community
Development Financing Corp.		  
Series 2000,  
Insured: MBIA,  
LIQ FAC: First Union
National Bank		  
5.310% 08/15/30 (a)     21,710,000       21,710,000    
MD Health & Higher
Educational Facilities Authority		  
Glen Meadows
Retirement Community,		  
Series 1999 B,  
LOC: Wachovia Bank N.A.,  
LOC: JPMorgan Chase Bank  
5.380% 07/01/29 (a)     11,550,000       11,550,000    
MD Industrial Development
Financing Authority		  
Series 1998,  
LOC: Wachovia Bank N.A.  
5.430% 08/01/18 (a)     1,965,000       1,965,000    
Maryland Total             35,225,000    
Massachusetts – 0.0%  
MA Development Financing Agency  
Whalers Cove LP,  
Series 2001 B,  
LOC: Wachovia Bank N.A.  
5.480% 09/01/34 (a)     1,750,000       1,750,000    
Massachusetts Total             1,750,000    
Michigan – 0.0%  
MI Housing Development Authority  
Canterbury
Apartments Kalamazoo,		  
Series 2003 B,  
LOC: FHLB  
5.450% 06/01/38 (a)     950,000       950,000    
Michigan Total             950,000    

 

Minnesota – 0.0%  
    Par ($)   Value ($)  
MN Higher Education
Facilities Authority		  
Concordia University,  
Series 2003,  
LOC: U.S. Bank N.A.  
5.380% 04/01/27 (a)     6,390,000       6,390,000    
MN Lake City Industrial
Development Revenue		  
Valley Craft, Inc.,  
Series 1997,  
LOC: U.S. Bank N.A.  
5.420% 10/01/17 (a)     2,000,000       2,000,000    
MN Plymouth Health
Facilities Revenue		  
Healthspan Health System,  
Series 1994 B,  
Insured: FSA,  
SPA: U.S. Bank N.A.  
5.320% 06/01/24 (a)     7,130,000       7,130,000    
Minnesota Total             15,520,000    
Mississippi – 0.0%  
MS Business Finance Corp.  
Series 2005,  
LOC: Wachovia Bank N.A.,  
LOC: Rabobank Nederland  
5.380% 01/14/15 (a)     9,000,000       9,000,000    
MS Development Bank
Special Obligation		  
Series 2006 B,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
5.300% 03/01/31 (a)     7,300,000       7,300,000    
Mississippi Total             16,300,000    
New Jersey – 0.0%  
NJ Economic Development Authority  
Melrich Road Development
Co. LLC,		  
Series 2002 B,  
LOC: Wachovia Bank N.A.  
5.530% 05/01/09 (a)     500,000       500,000    
New Jersey Total             500,000    

 

See Accompanying Notes to Financial Statements.

25


Columbia Cash Reserves (August 31, 2006)

Municipal Bonds (continued)

New York – 0.0%  
    Par ($)   Value ($)  
NY Clinton County Industrial
Development Agency		  
Bombardier Corp.,  
Series 1997 A,  
LOC: HSBC Bank USA N.A.  
5.550% 12/01/10 (a)     2,300,000       2,300,000    
NY New York City Housing
Development Corp.		  
  200  West 26 LLC,   
Series 2002,  
LOC: Bayerische Landesbank  
5.300% 06/01/33 (a)     5,926,000       5,926,000    
New York Total             8,226,000    
North Carolina – 0.0%  
NC Downtown Renaissance, Inc.  
Imperial Centre Partners LP,  
Series 2004,  
LOC: RBC Centura Bank  
5.340% 02/01/25 (a)     10,040,000       10,040,000    
NC Wake County Industrial
Facilities & Pollution Control
Financing Authority		  
Series 1997 A,  
LOC: First Union National Bank  
5.430% 04/01/18 (a)     2,455,000       2,455,000    
North Carolina Total             12,495,000    
South Carolina – 0.0%  
SC Jobs Economic
Development Authority		  
Cannon Memorial Hospital,  
Series 2004 B,  
LOC: National Bank of
South Carolina		  
5.400% 06/01/09 (a)     287,000       287,000    
South Carolina Total             287,000    
Tennessee – 0.0%  
TN Memphis Health Educational &
Housing Facilities Board		  
Series 2003 B,  
LOC: First Tennessee Bank  
5.450% 01/01/35 (a)     450,000       450,000    
Tennessee Total             450,000    

 

Texas – 0.1%  
    Par ($)   Value ($)  
TX San Antonio Education
Facilities Corp.		  
St. Anthony Catholic
High School,		  
Series 2003 B,  
LOC: Bank One N.A.,  
LOC: JPMorgan Chase Bank  
5.360% 12/01/23 (a)     810,000       810,000    
TX State  
Series 1994 A-2,  
SPA: DEPFA Bank PLC  
5.290% 12/01/09 (a)     21,395,000       21,395,000    
Series 1997 B-2,  
SPA: DEPFA Bank PLC  
5.300% 12/01/29 (a)     15,000,000       15,000,000    
Series 2003:  
LOC: DEPFA Bank PLC,  
SPA: Dexia Credit Local  
5.290% 06/01/21 (a)     100,000       100,000    
SPA: State Street Bank &
Trust Co.		  
5.290% 12/01/23 (a)     8,950,000       8,950,000    
Series 2004,  
LOC: DEPFA Bank PLC,  
SPA: Dexia Credit Local  
5.300% 12/01/24 (a)     17,600,000       17,600,000    
Texas Total             63,855,000    
Utah – 0.0%  
UT Board of Regents
Student Loan Revenue		  
Series 2005 X,  
Insured: AMBAC,  
LOC: DEPFA Bank PLC  
5.320% 11/01/44 (a)     17,000,000       17,000,000    
Utah Total             17,000,000    
Virginia – 0.0%  
VA Richmond Redevelopment &
Housing Authority		  
Series 1995 B,  
LOC : Wachovia Bank N.A.  
5.400% 12/01/25 (a)     2,310,000       2,310,000    
Virginia Total             2,310,000    

 

See Accompanying Notes to Financial Statements.

26


Columbia Cash Reserves (August 31, 2006)

Municipal Bonds (continued)  

Washington – 0.0%  
    Par ($)   Value ($)  
WA Housing Finance Commission  
MWSH Arlinton LLC,  
Series 2003 B,  
LOC: U.S. Bank N.A.  
5.360% 11/01/36 (a)     3,175,000       3,175,000    
Rainier Court Associates LLC,  
Series 2003 B,  
Insured: FNMA,  
LOC: U.S. Bank N.A.  
5.350% 12/15/36 (a)     4,250,000       4,250,000    
Washington Total             7,425,000    
Wisconsin – 0.1%  
WI Housing & Economic
Development Authority		  
Series 2003 D,  
SPA: Westdeutsche Landsbank  
5.290% 03/01/28 (a)     18,920,000       18,920,000    
Wisconsin Total             18,920,000    
Total Municipal Bonds
(Cost of $672,663,000)		             672,663,000    

 

Repurchase Agreements – 7.2%

Repurchase agreement with
Barclays Capital, dated  
08/31/06, due on 09/01/06,
at 5.290%, collateralized by
FNMA, FHLB and FHLMC
bonds with various maturities
to 09/01/36, market value
$765,000,570 (repurchase
proceeds $750,110,208)		     750,000,000       750,000,000    
Repurchase agreement with
BNP Paribas, dated 08/31/06,  
due on 09/01/06, at 5.300%,
collateralized by FHLMC and
FNMA bonds with various
maturities to 09/15/10,
market value $364,598,847
(repurchase proceeds
$357,501,624)		     357,449,000       357,449,000    

 

    Par ($)   Value ($)  
Repurchase agreement with
Countrywide Securities Corp.,  
dated 08/31/06, due on
09/01/06, at 5.290%,
collateralized by FNMA and
FHLMC bonds with various
maturities to 09/01/36,
market value $510,000,001
(repurchase proceeds
$500,073,472)		     500,000,000       500,000,000    
Repurchase Agreement with
Credit Suisse First Boston,  
dated 08/31/06, due on
09/01/06, at 5.310%,
collateralized by corporate
bonds with various maturities
to 11/01/50, market value
$515,004,075 (repurchase
proceeds $500,073,750)		     500,000,000       500,000,000    
Repurchase Agreement with
Deutsche Bank Securities,  
dated 08/31/06, due on
09/01/06, at 5.373%,
collateralized by asset-backed
securities with various
maturities to 03/25/34,
market value $515,000,000
(repurchase proceeds
$500,074,625)		     500,000,000       500,000,000    
Repurchase agreement with
Goldman Sachs & Co., dated  
08/31/06, due on 09/01/06,
at 5.300%, collateralized by
commercial paper with
various maturities to
02/12/07, market value
$816,000,001 (repurchase
proceeds $800,117,778)		     800,000,000       800,000,000    
Repurchase Agreement with
JPMorgan Chase Bank, dated  
08/31/06, due on 09/01/06,
at 5.300%, collateralized by
commercial paper with
various maturities to
11/27/06, market value
$408,002,364 (repurchase
proceeds $400,058,889)		     400,000,000       400,000,000    

 

See Accompanying Notes to Financial Statements.

27


Columbia Cash Reserves (August 31, 2006)

Repurchase Agreements (continued)

    Par ($)   Value ($)  
Repurchase agreement with
Merrill Lynch, dated 08/31/06,  
due on 09/01/06, at 5.300%,
collateralized by commercial
paper and certificates of
deposit with various
maturities to 02/16/07,
market value $816,004,255
(repurchase proceeds
$800,117,778)		     800,000,000       800,000,000    
Total Repurchase Agreements
(Cost of $4,607,449,000)		         4,607,449,000    
Total Investments – 100.3%
(Cost of $64,076,726,585)(e)		         64,076,726,585    
Other Assets & Liabilities, Net – (0.3)%         (180,331,463 )  
Net Assets – 100.0%       $ 63,896,395,122    

 

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which are not illiquid except for those in the following table, amounted to $32,216,274,201, which represents 50.4% of net assets.

Security   Acquisition
Date		   Acquisition
Cost		  
Carlyle Loan Investment Ltd.
  
5.389% 01/15/07   12/15/05   $ 25,000,000    
5.567% 11/15/06   10/18/05     125,000,000    
Davis Square Funding Ltd.
5.400% 10/16/38		   10/15/03     150,000,000    
Goldman Sachs Group, Inc.
5.385% 12/21/06
5.390% 09/13/07		   06/22/06
12/07/05		     430,000,000
510,000,000		    
Jackson National Life Global Funding
5.326% 09/24/07		   07/19/06     300,000,000    
Putnam Structured Product CDO
5.410% 01/15/38
5.500% 11/25/05		   07/13/06
11/22/02		     176,000,000
50,000,000		    
Saturn Ventures II, Inc.
5.480% 11/07/06		   05/08/06     100,000,000    
        $ 1,866,000,000    

 

(c) Illiquid security.

(d) The rate shown represents the discount rate at the date of purchase.

(e) Cost for federal income tax purposes is $64,076,726,585.

Acronym   Name  
AMBAC   Ambac Assurance Corp.  
FHLB   Federal Home Loan Bank  
FHLMC   Federal Home Loan Mortgage Corp.  
FNMA   Federal National Mortgage Association  
FSA   Financial Security Assurance, Inc.  
LIQ FAC   Liquidity Facility  
LOC   Letter of Credit  
MBIA   MBIA Insurance Corp.  
SPA   Stand-by Purchase Agreement  

 

See Accompanying Notes to Financial Statements.

28



Investment Portfolio Columbia Money Market Reserves (August 31, 2006)

Corporate Bonds – 29.9%

    Par ($)   Value ($)  
Alliance & Leicester PLC  
5.410% 09/07/07 (a)(b)     125,000,000       125,000,000    
American Express Credit Corp.  
5.506% 12/05/06 (a)     50,000,000       50,000,000    
Carrera Capital Finance LLC  
5.314% 08/24/07 (a)(b)     50,000,000       50,000,000    
Cheyne Finance LLC  
5.292% 03/15/07 (a)(b)     50,000,000       49,997,911    
5.443% 04/10/07 (a)(b)     75,000,000       74,987,338    
Cullinan Finance Corp.  
5.236% 09/05/06 (a)(b)     25,000,000       24,999,966    
Fifth Third Bancorp  
5.304% 11/23/06 (a)(b)     20,000,000       20,000,000    
General Electric Capital Corp.  
5.430% 09/17/07 (a)     50,000,000       50,000,793    
Goldman Sachs Group, Inc.  
5.385% 12/21/06 (a)(b)(c)     70,000,000       70,000,000    
5.390% 12/13/06 (a)(c)     250,000,000       250,000,000    
5.390% 09/13/07 (a)(b)(c)     140,000,000       140,000,000    
Gulf Gate Apartments LLC  
LOC: Wells Fargo Bank N.A.  
5.390% 09/01/28 (a)     2,000,000       2,000,000    
Harrier Finance Funding LLC  
5.284% 10/25/06 (a)(b)     42,500,000       42,498,816    
5.328% 12/08/06 (a)(b)     200,000,000       199,994,615    
5.365% 02/16/07 (a)(b)     70,000,000       69,997,224    
5.400% 02/09/07 (a)(b)     90,000,000       89,996,030    
HBOS Treasury Services PLC  
5.452% 11/01/06 (a)(b)     20,000,000       20,000,000    
HSBC Finance Corp.  
5.486% 05/10/07 (a)     125,000,000       125,051,374    
K2 (USA) LLC  
5.260% 03/16/07 (a)(b)     60,000,000       59,996,724    
5.289% 03/15/07 (a)(b)     140,000,000       139,992,521    
5.374% 03/22/07 (a)(b)     100,000,000       99,994,496    
5.375% 03/09/07 (a)(b)     150,000,000       150,026,485    
5.450% 03/28/07 (a)(b)     75,000,000       74,995,726    
Kestrel Funding U.S. LLC  
5.446% 07/26/07 (a)(b)     100,000,000       100,000,000    

 

    Par ($)   Value ($)  
Links Finance LLC  
5.318% 11/20/06 (a)(b)     50,000,000       49,998,910    
5.459% 03/30/07 (a)(b)     100,000,000       99,994,247    
5.468% 04/02/07 (a)(b)     153,000,000       152,991,047    
Merrill Lynch & Co., Inc.  
5.310% 09/15/06 (a)     125,000,000       125,000,000    
Morgan Stanley  
5.398% 09/27/07 (a)     280,000,000       280,036,146    
5.410% 02/02/07 (a)     202,230,000       202,230,000    
5.530% 03/15/07 (a)     50,600,000       50,634,367    
5.615% 07/27/07 (a)     133,851,000       134,016,141    
Natexis Banques Populaires NY  
5.310% 02/15/07 (a)(b)     125,000,000       125,006,994    
Premier Asset Collateralized Entity LLC  
5.477% 01/16/07 (a)(b)     50,000,000       50,000,000    
Rio Bravo LLC  
LOC: Wells Fargo Bank N.A.  
5.390% 12/01/33 (a)     4,300,000       4,300,000    
Sedna Finance, Inc.  
5.300% 09/15/06 (a)(b)     85,000,000       85,000,000    
5.358% 02/23/07 (a)(b)     200,000,000       199,991,207    
Sigma Finance, Inc.  
5.200% 04/20/07 (b)     50,000,000       50,000,000    
5.320% 11/16/06 (a)(b)     100,000,000       99,998,453    
5.356% 03/19/07 (a)(b)     350,000,000       349,981,125    
SMM Trust  
5.571% 02/02/07 (a)     11,990,000       11,990,000    
Stanfield Victoria Funding LLC  
5.290% 10/30/06 (a)(b)     50,000,000       49,998,255    
5.435% 01/25/07 (a)(b)     50,000,000       49,996,000    
5.471% 04/23/07 (a)(b)     100,000,000       99,993,624    
Tango Finance Corp.  
5.328% 11/20/06 (a)(b)     83,500,000       83,498,165    
5.359% 02/22/07 (a)(b)     50,000,000       49,997,616    
Wells Fargo & Co.  
5.340% 12/15/06 (a)(b)     25,000,000       25,000,000    
Whistlejacket Capital LLC  
5.285% 10/31/06 (a)(b)     100,000,000       99,997,552    
5.392% 03/22/07 (a)(b)     50,000,000       49,995,849    
5.404% 03/23/07 (a)(b)     50,000,000       49,995,829    

 

See Accompanying Notes to Financial Statements.

29


Columbia Money Market Reserves (August 31, 2006)

Corporate Bonds (continued)

    Par ($)   Value ($)  
White Pine Finance LLC  
5.279% 10/25/06 (a)(b)     190,000,000       189,995,210    
5.355% 05/15/07 (a)(b)     75,000,000       74,989,480    
5.405% 03/26/07 (a)(b)     75,000,000       74,989,389    
5.435% 03/26/07 (a)(b)     40,000,000       39,996,604    
5.441% 10/06/06 (a)(b)     45,000,000       44,999,125    
Total Corporate Bonds
(Cost of $5,134,141,354)		             5,134,141,354    

 

Commercial Paper – 22.8%

Amstel Funding Corp.  
5.295% 11/15/06 (b)(d)     100,000,000       98,896,875    
Atlas Capital Funding Corp.  
5.310% 03/13/07 (a)(b)     100,000,000       100,000,000    
5.310% 05/25/07 (a)(b)     200,000,000       199,985,460    
Cheyne Finance LLC  
5.292% 04/25/07 (a)(b)     80,000,000       79,993,454    
5.363% 11/30/06 (a)(b)     50,000,000       49,998,928    
5.465% 04/20/07 (a)(b)     75,000,000       74,996,194    
Citius I Funding LLC  
5.300% 09/25/06 (b)(d)     212,277,000       211,526,955    
5.330% 09/15/06 (b)(d)     150,143,000       149,831,787    
Compass Securitization LLC  
5.285% 01/18/07 (a)(b)     76,500,000       76,491,360    
5.325% 01/10/07 (a)(b)     100,000,000       99,988,927    
Concord Minutemen Capital Co. LLC  
5.280% 09/18/06 (b)(d)     81,330,000       81,127,217    
5.290% 09/14/06 (b)(d)     106,219,000       106,016,092    
5.300% 09/13/07 (a)(b)     76,575,000       76,573,773    
5.300% 09/14/07 (a)(b)     92,787,000       92,786,235    
5.360% 02/12/07 (a)(b)     100,000,000       99,991,308    
5.618% 09/10/07 (a)(b)     114,025,000       114,025,000    
East-Fleet Finance LLC  
5.455% 01/12/07 (a)(b)     140,000,000       139,991,875    
FCAR Owner Trust I  
5.290% 10/16/06 (d)     100,000,000       99,338,750    
5.290% 11/08/06 (d)     156,180,000       154,619,415    
Giro Balanced Funding Corp.  
5.280% 09/08/06 (b)(d)     50,000,000       49,948,667    
5.280% 09/12/06 (b)(d)     100,000,000       99,838,667    
5.280% 09/14/06 (b)(d)     250,000,000       249,523,333    
Grampian Funding LLC  
5.230% 12/08/06 (b)(d)     240,000,000       236,583,067    
5.280% 12/11/06 (b)(d)     46,000,000       45,318,587    
5.290% 11/13/06 (b)(d)     62,000,000       61,334,930    

 

    Par ($)   Value ($)  
Greyhawk Funding LLC  
5.240% 12/08/06 (b)(d)     154,281,000       152,080,267    
5.275% 11/27/06 (b)(d)     50,000,000       49,362,604    
Harrier Finance Funding LLC  
5.275% 10/27/06 (b)(d)     75,000,000       74,384,583    
Klio II Funding Corp.  
5.300% 10/20/06 (b)(d)     64,810,000       64,342,468    
Klio III Funding Corp.  
5.280% 09/18/06 (b)(d)     80,000,000       79,800,533    
Nationwide Building Society  
5.320% 11/07/06 (b)(d)     50,000,000       49,504,944    
5.325% 11/07/06 (b)(d)     50,000,000       49,504,479    
New Center Asset Trust  
5.270% 12/08/06 (d)     135,000,000       133,063,275    
5.290% 11/08/06 (d)     120,000,000       118,800,933    
5.300% 11/02/06 (d)     149,500,000       148,135,397    
Spintab Swedmortgage AB  
5.270% 11/27/06 (d)     150,000,000       148,089,625    
Total Commercial Paper
(Cost of $3,915,795,964)		             3,915,795,964    

 

Certificates of Deposit – 17.7%

ABN AMRO Bank NV  
5.380% 06/13/07 (a)     100,000,000       100,000,000    
American Express Bank FSB  
5.298% 02/28/07 (a)     25,000,000       25,000,000    
Bank of Tokyo Mitsubishi Ltd. NY  
4.800% 01/11/07     200,000,000       200,000,000    
Barclays Bank PLC NY  
5.450% 06/12/07     191,000,000       191,000,000    
5.500% 06/18/07     72,000,000       72,000,000    
Canadian Imperial Bank of Commerce NY  
4.803% 12/05/06     103,000,000       103,000,648    
5.410% 12/15/06 (a)     50,000,000       50,000,000    
Credit Agricole SA  
5.000% 03/09/07     147,000,000       147,000,000    
5.260% 04/05/07     160,000,000       160,000,000    
5.300% 04/18/07     95,000,000       95,000,000    
5.520% 06/18/07     72,000,000       72,000,000    
Credit Suisse NY  
4.750% 11/07/06     10,000,000       10,000,000    
5.473% 10/18/06 (a)     185,000,000       185,000,000    
DEPFA Bank PLC NY  
4.800% 12/05/06     103,000,000       103,000,000    

 

See Accompanying Notes to Financial Statements.

30


Columbia Money Market Reserves (August 31, 2006)

Certificates of Deposit (continued)

    Par ($)   Value ($)  
Deutsche Bank AG  
4.805% 02/21/07     166,000,000       166,000,000    
4.950% 02/06/07     149,000,000       149,000,000    
HBOS Treasury Services PLC  
5.325% 11/08/06 (d)     100,000,000       98,994,167    
KeyBank N.A.  
5.280% 09/01/06     100,000,000       100,000,000    
Natexis Banques Populaires NY  
5.010% 02/12/07     148,000,000       148,000,000    
5.410% 08/13/07 (a)     205,000,000       205,000,000    
Royal Bank of Canada NY  
5.400% 09/10/07 (a)     15,000,000       15,000,000    
Societe Generale  
5.300% 09/01/06     300,000,000       300,000,000    
5.500% 06/18/07     72,000,000       72,000,000    
Svenska Handelsbanken NY  
5.265% 09/20/06 (a)     175,000,000       174,996,628    
Unicredito Italiano NY  
5.468% 10/03/06 (a)     95,000,000       94,998,762    
Total Certificates of Deposit
(Cost of $3,036,990,205)		             3,036,990,205    

 

Extendible Commercial Notes – 8.2%

Aegis Finance LLC  
5.330% 09/06/06 (b)(d)     225,000,000       224,833,438    
Citibank Credit Card Master Trust  
5.300% 11/07/06 (b)(d)     46,955,000       46,491,841    
Georgetown Funding Co. LLC  
5.290% 09/20/06 (b)(d)     298,037,000       297,204,897    
5.300% 09/27/06 (b)(d)     289,986,000       288,875,998    
KKR Atlantic Funding Trust  
5.300% 09/27/06 (b)(d)     303,000,000       301,840,183    
Thornburg Mortgage Capital Resources LLC  
5.300% 09/26/06 (b)(d)     60,000,000       59,779,167    
5.380% 10/03/06 (a)(b)     50,000,000       49,999,564    
Versailles CDS LLC  
5.300% 10/06/06 (b)(d)     150,000,000       149,227,083    
Total Extendible Commercial Notes
(Cost of $1,418,252,171)		             1,418,252,171    

 

Asset-Backed Securities – 6.0%

Davis Square Funding Ltd.  
5.400% 10/16/38 (a)(b)(c)     42,500,000       42,500,000    

 

    Par ($)   Value ($)  
Granite Master Issuer PLC  
5.295% 08/20/54 (a)(b)     250,000,000       250,000,000    
Holmes Financing PLC  
5.399% 07/15/07 (a)(b)     405,000,000       405,000,000    
Mound Financing PLC  
5.380% 11/08/06 (a)(b)     70,000,000       70,000,000    
Paragon Mortgages PLC  
5.320% 10/15/41 (a)(b)     73,374,030       73,374,030    
5.330% 06/15/41 (a)(b)     144,541,305       144,541,305    
Saturn Ventures II, Inc.  
5.480% 11/07/06 (a)(b)(c)     39,100,000       39,100,000    
Total Asset-Backed Securities
(Cost of $1,024,515,335)		             1,024,515,335    

 

Time Deposit – 2.3%

Calyon  
5.280% 09/01/06     200,000,000       200,000,000    
Chase Manhattan Bank USA N.A.  
5.280% 09/01/06     200,000,000       200,000,000    
Total Time Deposit
(Cost of $400,000,000)		         400,000,000    

 

Municipal Bonds – 1.2%

California – 0.1%  
CA San Jose Financing Authority Lease Revenue  
Series 2000 C,  
Insured: MBIA,  
SPA: Morgan Guaranty Trust  
5.300% 12/01/24 (a)     5,200,000       5,200,000    
CA Statewide Communities
Development Authority		  
Vineyard Creek LP,  
Series 2003 W,  
LOC: FHLB  
5.330% 12/01/36 (a)     3,700,000       3,700,000    
California Total             8,900,000    
Colorado – 0.1%  
CO Health Facilities Authority  
Crossroads at Delta Alf,  
Series 2004 B,  
LOC: U.S. Bank N.A.  
5.370% 11/01/28 (a)     2,705,000       2,705,000    

 

See Accompanying Notes to Financial Statements.

31


Columbia Money Market Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CO Housing & Finance Authority  
Class 2004 B1,  
SPA: Dexia Credit Local  
5.380% 11/01/34 (a)     8,775,000       8,775,000    
Colorado Total             11,480,000    
Florida – 0.4%  
FL Hurricane Catastrophe Fund  
Series 2006 B,  
5.340% 08/15/07 (a)     87,000,000       87,000,000    
Florida Total             87,000,000    
Kentucky – 0.1%  
KY Hardin County  
St. James Group, Inc.,  
Series 2002,  
LOC: Republic Bank & Trust,  
LOC: FHLB  
5.350% 03/01/27 (a)     10,940,000       10,940,000    
Kentucky Total             10,940,000    
Maryland – 0.1%  
MD Health & Higher Educational
Facilities Authority		  
Adventist Healthcare,  
Series 2004 B,  
LOC: LaSalle Bank N.A.  
5.350% 01/01/35 (a)     17,060,000       17,060,000    
Maryland Total             17,060,000    
Minnesota – 0.1%  
MN St. Paul Housing &
Redevelopment Authority		  
Series 2004,  
LOC: U.S. Bank N.A.  
5.370% 01/01/24 (a)     15,095,000       15,095,000    
Minnesota Total             15,095,000    
New Hampshire – 0.1%  
NH Business Finance Authority  
Series 2002 A,  
SPA: Bank of New York  
5.360% 11/01/20 (a)     7,100,000       7,100,000    
Series 2002 B,  
SPA: Bank of New York  
5.360% 11/01/20 (a)     10,000,000       10,000,000    

 

    Par ($)   Value ($)  
NH Health & Education
Facilities Authority		  
Series 2004 B,  
LOC: Citizens Bank of
New Hampshire,		      
LOC: Citizens Bank of
Massachusetts		      
5.380% 12/01/08 (a)     765,000       765,000    
New Hampshire Total             17,865,000    
Ohio – 0.1%  
OH Air Quality Development Authority  
AK Steel Corp.,  
Series 2004 B,  
LOC: ABN AMRO Bank N.V.  
5.380% 06/01/24 (a)     13,000,000       13,000,000    
Ohio Total             13,000,000    
Texas – 0.1%  
TX State  
Series 1994 A-2,  
SPA: DEPFA Bank PLC  
5.300% 12/01/33 (a)     100,000       100,000    
Series 2003,  
SPA: State Street Bank & Trust Co.  
5.290% 12/01/23 (a)     9,350,000       9,350,000    
Series 2005,  
SPA: Dexia Credit Local  
5.300% 12/01/26 (a)     20,335,000       20,335,000    
Texas Total             29,785,000    
Washington – 0.0%  
WA Housing Finance Commission  
Vintage at Mt. Vernon,  
Series 2003 B,  
Insured: FNMA  
5.350% 01/15/37 (a)     2,500,000       2,500,000    
Virginia Mason Research Center,  
Series 1997 B,  
LOC: U.S. Bank N.A.  
5.370% 01/01/15 (a)     1,740,000       1,740,000    
Washington Total             4,240,000    
Total Municipal Bonds
(Cost of $215,365,000)		             215,365,000    

 

See Accompanying Notes to Financial Statements.

32


Columbia Money Market Reserves (August 31, 2006)

Funding Agreements – 0.3%

    Par ($)   Value ($)  
Genworth Life Insurance Co.  
5.360% 06/08/07 (a)(c)     50,000,000       50,000,000    
Total Funding Agreements
(Cost of $50,000,000)		         50,000,000    

 

Repurchase Agreements – 11.9%

Repurchase agreement with
Barclays Capital, dated  
08/31/06, due on 09/01/06,
at 5.290%, collateralized by
FNMA, FHLB and FHLMC
bonds with various
maturities to 08/01/36,
market value $765,002,334
(repurchase proceeds
$750,110,208)		     750,000,000       750,000,000    
Repurchase agreement with
BNP Paribas, dated  
08/31/06, due on 09/01/06,
at 5.300%, collateralized by
FHLMC bonds maturing
09/26/06, market value
$145,403,011 (repurchase
proceeds $)142,571,987		     142,551,000       142,551,000    
Repurchase agreement with
Countrywide Securities Corp., 
dated 08/31/06, due on
09/01/06, at 5.290%,
collateralized by FNMA,
FHLB and FHLMC bonds
with various maturities to
08/01/36, market value
$510,000,000 (repurchase
proceeds $500,073,472)		     500,000,000       500,000,000    
Repurchase agreement with
Credit Suisse First Boston, 
dated 08/31/06, due on
09/01/06, at 5.310%,
collateralized by commercial
paper with various maturities
to 11/22/06, market value
$255,004,201 (repurchase
proceeds $250,036,875)		     250,000,000       250,000,000    

 

    Par ($)   Value ($)  
Repurchase agreement with
Goldman Sachs & Co., 
dated 08/31/06, due on
09/01/06, at 5.300%,
collateralized by commercial
paper with various
maturities to 10/25/06,
market value $204,000,000
(repurchase proceeds
$200,029,444)		     200,000,000       200,000,000    
Repurchase agreement with
Merrill Lynch, dated  
08/31/06, due on 09/01/06,
at 5.300%, collateralized by
commercial paper with
various maturities to
12/01/06, market value
$204,003,029 (repurchase
proceeds $200,029,444)		     200,000,000       200,000,000    
Total Repurchase Agreements
(Cost of $2,042,551,000)		         2,042,551,000    
Total Investments – 100.3%
(Cost of $17,237,611,029)(e)		         17,237,611,029    
Other Assets & Liabilities, Net – (0.3)%         (58,086,562 )  
Net Assets – 100.0%       $ 17,179,524,467    

 

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which are not illiquid except for those in the following table, amounted to $9,405,398,606, which represents 54.7% of net assets.

Security   Acquisition
Date		   Acquisition
Cost		  
Davis Square Funding Ltd.
5.400% 10/16/38		   12/16/05   $ 42,500,000    
Goldman Sachs Group, Inc.
5.385% 12/21/06  06/22/06 70,000,000
5.390% 09/13/07		   03/07/05     140,000,000    
Saturn Ventures II, Inc.
5.480% 11/07/06		   05/08/06     39,100,000    
        $ 291,600,000    

 

(c) Illiquid security.

(d) The rate shown represents the discount rate at the date of purchase.

(e) Cost for federal income tax purposes is $17,237,625,502.

Acronym   Name  
FHLB   Federal Home Loan Bank  
FHLMC   Federal Home Loan Mortgage Corp.  
FNMA   Federal National Mortgage Association  
LOC   Letter of Credit  
MBIA   MBIA Insurance Corp.  
SPA   Stand-by Purchase Agreement  

 

See Accompanying Notes to Financial Statements.

33


Investment Portfolio Columbia Treasury Reserves (August 31, 2006)

Government & Agency Obligations – 18.0%

U.S. Government Obligations – 18.0%  
    Par ($)   Value ($)  
U.S. Cash Management Bill  
5.180% 09/15/06 (a)     1,950,000,000       1,946,071,834    
U.S. Treasury Notes  
3.125% 01/31/07     285,000,000       282,418,430    
6.500% 10/15/06     250,000,000       250,532,188    
U.S. Government Obligations Total             2,479,022,452    
Total Government & Agency Obligations
(Cost of $2,479,022,452)		             2,479,022,452    

 

Repurchase Agreements – 96.4%

Repurchase agreement with
ABN AMRO Bank US, dated  
08/31/06, due on 09/01/06,
at 5.230%, collateralized by
U.S. Treasury Notes with
various maturities to
10/15/06, market value
$510,000,589 (repurchase
proceeds $500,072,639)		     500,000,000       500,000,000    
Repurchase agreement with
Barclays Capital, dated  
08/31/06, due on 09/01/06,
at 5.240%, collateralized by
U.S. Treasury Notes, Bonds
and Bills with various
maturities to 02/15/36,
market value $1,020,000,524
(repurchase proceeds
$1,000,145,556)		     1,000,000,000       1,000,000,000    
Repurchase agreement with
Barclays Capital, dated  
08/31/06, due on 09/01/06,
at 5.260%, collateralized by
GNMA bonds with various
maturities to 08/20/36,
market value $673,200,000
(repurchase proceeds
$660,096,433)		     660,000,000       660,000,000    
Repurchase agreement with
BNP Paribas, dated 08/31/06,  
due on 09/01/06, at 5.230%,
collateralized by U.S. Treasury
Notes and Bonds with various
maturities to 01/15/26,
market value $1,020,000,437
(repurchase proceeds
$1,000,145,277)		     1,000,000,000       1,000,000,000    

 

    Par ($)   Value ($)  
Repurchase agreement with
BNP Paribas, dated 08/31/06,  
due on 09/01/06, at 5.270%,
collateralized by U.S. Treasury
Bonds with various maturities
to 04/15/32, market value
$91,801,324 (repurchase
proceeds $90,013,175)		     90,000,000       90,000,000    
Repurchase agreement with
Countrywide Home Loans,  
Inc., dated 08/31/06, due
on 09/01/06, at 5.260%,
collateralized by GNMA
bonds and U.S. Treasury Bills
with various maturities to
08/20/36, market value
$652,800,000 (repurchase
proceeds $640,093,511)		     640,000,000       640,000,000    
Repurchase agreement with
Credit Suisse First Boston,  
dated 08/31/06, due on
09/01/06, at 5.230%,
collateralized by U.S. Treasury
Notes and Bills with various
maturities to 08/15/13,
market value $510,003,991
(repurchase proceeds
$500,072,639)		     500,000,000       500,000,000    
Repurchase agreement with
Deutsche Bank Securities,  
dated 08/31/06, due on
09/01/06, at 5.180%,
collateralized by U.S. Treasury
Notes, Bonds and Bills with
various maturities to
11/15/26, market value
$193,800,044 (repurchase
proceeds $190,027,339)		     190,000,000       190,000,000    
Repurchase agreement with
Deutsche Bank Securities,  
dated 08/31/06, due on
09/01/06, at 5.230%,
collateralized by U.S. Treasury
Notes, Bonds and Bills with
various maturities to
11/15/26, market value
$1,001,786,086 (repurchase
proceeds $982,285,684)		     982,143,000       982,143,000    

 

See Accompanying Notes to Financial Statements.

34


Columbia Treasury Reserves (August 31, 2006)

Repurchase Agreements (continued)

    Par ($)   Value ($)  
Repurchase agreement with
Goldman Sachs & Co., dated  
08/31/06, due on 09/01/06,
at 5.120%, collateralized by
U.S. Treasury Bills with
various maturities to
09/14/06, market value
$46,859,974 (repurchase
proceeds $45,940,533)		     45,934,000       45,934,000    
Repurchase agreement with
Greenwich Capital, dated  
08/31/06, due on 09/01/06,
at 5.230%, collateralized by
U.S. Treasury Notes and Bills
with various maturities to
07/31/11, market value
$510,001,571 (repurchase
proceeds $500,072,639)		     500,000,000       500,000,000    
Repurchase agreement with
HSBC Bank USA, dated  
08/31/06, due on 09/01/06,
at 5.230%, collateralized by
U.S. Treasury Notes and
Bonds with various maturities
to 04/15/32, market value
$1,020,004,465 (repurchase
proceeds $1,000,145,278)		     1,000,000,000       1,000,000,000    
Repurchase agreement with
HSBC Bank USA, dated  
08/31/06, due on 09/01/06,
at 5.260%, collateralized by
GNMA bonds with various
maturities to 08/15/36,
market value $612,002,414
(repurchase proceeds
$600,087,667)		     600,000,000       600,000,000    
Repurchase agreement with
JPMorgan Chase Bank, dated  
08/31/06, due on 09/01/06,
at 5.230%, collateralized by
U.S. Treasury Notes with
various maturities to
08/31/11, market value
$943,503,759 (repurchase
proceeds $925,134,382)		     925,000,000       925,000,000    

 

    Par ($)   Value ($)  
Repurchase agreement with
JPMorgan Chase Bank, dated  
08/31/06, due on 09/01/06,
at 5.260%, collateralized by
GNMA bonds with various
maturities to 04/15/46,
market value $612,001,402
(repurchase proceeds
$600,087,667)		     600,000,000       600,000,000    
Repurchase agreement with
Morgan Stanley, dated  
08/31/06, due on 09/01/06,
at 5.230%, collateralized by
U.S. Treasury Notes with
various maturities to
08/15/25, market value
$1,020,000,186 (repurchase
proceeds $1,000,145,278)		     1,000,000,000       1,000,000,000    
Repurchase agreement with
Societe Generale, dated  
08/31/06, due on 09/01/06,
at 5.230%, collateralized by
U.S. Treasury Notes, Bonds
and Bills with various
maturities to 02/15/36,
market value $1,020,000,810
(repurchase proceeds
$1,000,145,278)		     1,000,000,000       1,000,000,000    
Repurchase agreement with
UBS Securities, Inc., dated  
08/31/06, due on 09/01/06,
at 5.240%, collateralized by
U.S. Treasury Notes with
various maturities to
11/15/10, market value
$2,040,003,890 (repurchase
proceeds $2,000,291,111)		     2,000,000,000       2,000,000,000    
Total Repurchase Agreements
(Cost of $13,233,077,000)		             13,233,077,000    
Total Investments – 114.4%
(Cost of $15,712,099,452)(b)		             15,712,099,452    
Other Assets & Liabilities, Net – (14.4)%             (1,979,433,896 )  
Net Assets – 100.0%           $ 13,732,665,556    

 

Notes to Investment Portfolio:

(a) The rate shown represents the annualized yield at the date of purchase.

(b) Cost for federal income tax purposes is $15,712,099,452.

Acronym   Name  
GNMA   Government National Mortgage Association  

 

See Accompanying Notes to Financial Statements.

35


Investment Portfolio Columbia Government Reserves (August 31, 2006)

Government & Agency Obligations – 101.2%

U.S. Government Agencies – 101.2%  
    Par ($)   Value ($)  
Federal Farm Credit Bank  
5.195% 06/13/08 (a)     393,000,000       392,881,383    
5.200% 10/31/07 (a)     150,000,000       149,982,534    
5.200% 01/18/08 (a)     50,000,000       49,984,971    
5.210% 03/20/07 (a)     10,000,000       10,000,265    
5.221% 08/22/07 (a)     42,425,000       42,424,127    
5.230% 03/10/08 (a)     70,000,000       69,979,010    
5.238% 11/09/07 (a)     100,000,000       99,987,117    
5.240% 07/27/07 (a)     25,000,000       24,997,740    
5.240% 07/21/08 (a)     50,000,000       49,981,955    
5.250% 03/21/07 (a)     125,000,000       124,993,097    
5.250% 06/06/07 (a)     50,000,000       49,999,182    
5.250% 06/22/07 (a)     25,000,000       24,998,747    
5.250% 06/27/07 (a)     30,000,000       29,997,541    
5.250% 10/26/07 (a)     100,000,000       100,000,000    
5.250% 01/10/08 (a)     100,000,000       100,000,000    
5.260% 02/26/07 (a)     50,000,000       49,997,568    
5.260% 08/02/07 (a)     50,000,000       49,995,304    
5.260% 08/23/07 (a)     150,000,000       149,978,772    
5.260% 08/24/07 (a)     50,000,000       49,992,664    
5.262% 05/01/08 (a)     100,000,000       99,951,718    
5.272% 06/01/07 (a)     100,000,000       99,992,514    
5.272% 11/01/07 (a)     10,000,000       9,997,724    
5.280% 01/25/07 (a)     25,000,000       24,998,520    
5.280% 10/03/07 (a)     82,000,000       81,999,987    
5.282% 10/01/07 (a)     50,000,000       49,998,676    
5.315% 01/03/07 (a)     26,510,000       26,511,995    
5.332% 12/01/06 (a)     25,000,000       25,001,691    
5.355% 07/25/07 (a)     50,000,000       49,999,115    
Federal Home Loan Bank  
2.625% 10/16/06     32,490,000       32,393,672    
3.000% 10/20/06     2,000,000       1,995,739    
3.330% 12/20/06     10,000,000       9,959,081    
3.590% 02/16/07     9,650,000       9,586,882    
3.750% 01/16/07     40,000,000       39,846,799    
4.000% 04/25/07     76,000,000       75,400,349    
5.000% 08/24/07     63,395,000       63,129,323    
5.120% 09/05/06 (b)     30,000,000       29,982,933    
5.120% 09/13/06 (b)     8,600,000       8,585,323    
5.120% 09/15/06 (b)     419,744,000       418,908,243    
5.120% 10/25/06 (b)     130,000,000       129,001,600    
5.125% 04/09/07     19,415,000       19,415,000    
5.125% 05/15/07     20,000,000       19,968,499    
5.130% 06/08/07 (a)     100,000,000       99,974,613    
5.165% 09/06/06 (b)     34,458,000       34,433,281    
5.190% 12/13/06 (a)     27,000,000       26,997,502    
5.225% 10/04/06 (b)     250,947,000       249,745,068    
5.230% 10/04/06 (b)     200,898,000       199,934,861    
5.230% 02/14/08 (a)     20,000,000       19,994,371    

 

    Par ($)   Value ($)  
5.240% 11/01/06 (b)     70,000,000       69,378,478    
5.250% 07/03/07 (a)     50,000,000       49,992,927    
5.251% 07/02/07 (a)     425,000,000       424,895,487    
5.306% 08/10/07 (a)     165,000,000       164,940,198    
5.307% 12/22/06 (a)     10,000,000       9,998,354    
5.341% 04/04/07 (a)     290,000,000       289,936,810    
5.347% 01/10/08 (a)     205,000,000       204,891,652    
5.367% 01/17/08 (a)     225,000,000       224,903,313    
5.380% 12/29/06 (a)     407,500,000       407,434,235    
5.515% 09/18/07     82,000,000       82,000,000    
U.S. Government Agencies Total             5,506,248,510    
Total Government & Agency Obligations
(Cost of $5,506,248,510)		             5,506,248,510    
Total Investments – 101.2%
(Cost of $5,506,248,510)(c)		             5,506,248,510    
Other Assets & Liabilities, Net – (1.2)%             (66,905,805 )  
Net Assets – 100.0%           $ 5,439,342,705    

 

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) The rate shown represents the annualized yield at the date of purchase.

(c) Cost for federal income tax purposes is $5,506,248,510.

See Accompanying Notes to Financial Statements.

36



Investment Portfolio Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds – 98.1%

Alabama – 0.9%  
    Par ($)   Value ($)  
AL Birmingham Industrial
Development Board		  
Solid Waste Disposal Revenue,
American Cast Iron Pipe Co.,		  
Series 2000, AMT,  
LOC: SouthTrust Bank N.A.  
3.720% 05/01/25 (a)     4,900,000       4,900,000    
AL Birmingham Medical Clinic Board
Medical Advancement Foundation,		  
Series 2000 A,  
LOC: Columbus Bank & Trust  
3.770% 09/01/30 (a)     21,105,000       21,105,000    
AL Birmingham Private Educational
Building Authority		  
The Altamont School,  
Series 1998,  
LOC: AmSouth Bank of Alabama  
3.440% 04/01/13 (a)     2,815,000       2,815,000    
AL Birmingham Public Educational
Building Authority		  
 CHF-UAB II,   
Series 2005 A,  
LOC: Regions Bank  
3.420% 07/01/37 (a)     11,000,000       11,000,000    
AL Board of Education  
Series 2005,  
Insured: AMBAC,  
LIQ FAC: JPMorgan Chase Bank  
3.450% 11/01/12 (a)     1,990,000       1,990,000    
AL Daphne YMCA Public Park &
Recreation Board		  
YMCA of Mobile,  
Series 2002,  
LOC: Regions Bank  
3.460% 10/01/22 (a)     2,900,000       2,900,000    
AL Dothan Houston County
Airport Authority		  
PEMCO Aviation Group, Inc.,  
Series 2002, AMT,  
LOC: SouthTrust Bank  
3.770% 10/01/17 (a)     1,070,000       1,070,000    

 

    Par ($)   Value ($)  
AL Geneva County Industrial
Development Board		  
Brooks AG Co., Inc.,  
Series 2002, AMT,  
LOC: Regions Bank  
3.530% 03/01/14 (a)     2,720,000       2,720,000    
AL Huntsville Industrial
Development Board		  
Brown Precision, Inc.,  
Series 2001, AMT,  
LOC: First Commercial Bank  
3.510% 12/01/19 (a)     3,500,000       3,500,000    
AL Jefferson County  
YMCA of Birmingham,  
Series 2005,  
LOC: AmSouth Bank  
3.480% 09/01/25 (a)     4,900,000       4,900,000    
AL Montgomery Industrial
Development Board		  
General Electric Company,  
Series 2005,  
3.560% 05/01/21 (a)     5,000,000       5,000,000    
AL Scottsboro Industrial
Development Board		  
Hisan, Inc,  
Series 2005, AMT,  
LOC: AmSouth Bank  
3.510% 05/01/27 (a)     3,065,000       3,065,000    
AL Stevenson Industrial
Development Board		  
Smurfit-Stone Container,  
Series 1996, AMT,  
LOC: JPMorgan Chase Bank  
3.500% 01/01/31 (a)     15,700,000       15,700,000    
Alabama Total             80,665,000    
Alaska – 0.3%  
AK Housing Finance Corp.  
Series 2005,  
Insured: FGIC  
3.440% 12/01/34 (a)     4,965,000       4,965,000    
AK International Airports Revenues  
Series 2006 C, AMT  
Insured: MBIA,  
LOC: Lloyds TSB Bank PLC  
3.480% 10/01/30 (a)     8,000,000       8,000,000    

 

See Accompanying Notes to Financial Statements.

37


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
AK Municipal Board Bank Authority  
Series 2004,  
Insured: MBIA  
3.450% 02/15/12 (a)     5,295,000       5,295,000    
AK North Slope Borough  
Series 2000 A,  
Insured: MBIA,  
SPA: Dexia Credit Local France  
3.440% 06/30/10 (a)     10,900,000       10,900,000    
Alaska Total             29,160,000    
Arizona – 1.4%  
AZ Apache County Industrial Development
Authority Industrial Development Revenue		  
Tucson Electric Power Co.,  
Series 1983 B,  
LOC: Bank Of New York  
3.510% 12/15/18 (a)     6,400,000       6,400,000    
AZ Maricopa County Industrial
Development Authority		  
Series 2003 A, AMT,  
LOC: Wells Fargo Bank N.A.  
3.500% 12/01/39 (a)     1,000,000       1,000,000    
Series 2005, AMT,  
LIQ FAC: Merrill Lynch Capital Services  
3.540% 01/01/36 (a)     7,515,000       7,515,000    
AZ Phoenix Industrial Development Authority  
Phoenix Broadway Associates,  
Series 2003 A, AMT,  
LOC: Wells Fargo Bank N.A.  
3.500% 06/01/31 (a)     4,945,000       4,945,000    
Series 2005 MT-156,  
LIQ FAC: Landesbank Hessen-Thuringen  
3.490% 08/01/08 (a)     10,160,000       10,160,000    
Series 2006, AMT,  
LIQ FAC: Landesbank
Hessen-Thuringen		      
3.480% 08/01/08 (a)     77,120,000       77,120,000    
Spring Air Mattress Co,  
Series 1999, AMT,  
LOC: Bank One N.A.  
3.700% 04/01/19 (a)     1,280,000       1,280,000    

 

    Par ($)   Value ($)  
AZ Pima County Industrial
Development Authority		  
Series 2004,  
LOC: Branch Banking & Trust  
3.450% 04/01/38 (a)     6,000,000       6,000,000    
AZ Tucson & Pima County Industrial
Development Authorities		  
Series 2006, AMT,  
SPA: Merrill Lynch Capital Services  
3.480% 04/25/16 (a)     10,000,000       10,000,000    
AZ Tucson Industrial Development Authority  
Series 2006 B, AMT,  
Insured: GNMA,  
GIC: Trinity Plus Funding Co.  
4.900% 08/03/07     3,750,000       3,778,514    
Arizona Total             128,198,514    
Arkansas – 0.5%  
AR Lowell Industrial Development Revenue  
Little Rock Newspapers, Inc.,  
Series 1996, AMT,  
LOC: Bank of New York  
3.610% 06/01/31(a)     6,500,000       6,500,000    
AR Osceola Solid Waste District  
Plum Point Energy Associates,  
Series 2006, AMT,  
LOC: Credit Suisse First Boston  
3.430% 04/01/36 (a)     30,000,000       30,000,000    
AR Pulaski County Public Facilities  
Bailey Properties LLC,  
Series 2002, AMT,  
LOC: Regions Bank  
3.490% 07/01/42 (a)     7,530,000       7,530,000    
AR Sheridan Industrial Development Revenue  
Centria Project,  
Series 2000 A, AMT,  
LOC: PNC Bank  
3.530% 08/01/20 (a)     2,600,000       2,600,000    
H. Robertson Co. Project,  
Series 1998 B, AMT,  
LOC: Sheridan Bank  
3.490% 08/01/16 (a)     1,000,000       1,000,000    
Arkansas Total             47,630,000    

 

See Accompanying Notes to Financial Statements.

38


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

California – 5.1%  
    Par ($)   Value ($)  
CA Access to Loans for Learning
Student Loan Corp.		  
Series 2004 A-9, AMT,  
LOC: State Street Bank & Trust Co.  
3.450% 01/01/39 (a)     10,200,000       10,200,000    
Series 2006 A-3, AMT,  
Insured: AMBAC,  
SPA: Lloyds TSB Bank PLC  
3.460% 07/01/41 (a)     40,000,000       40,000,000    
Series 2006 A-5, AMT,  
Insured: AMBAC,  
SPA: Lloyds TSB Bank PLC  
3.450% 07/01/41 (a)     40,000,000       40,000,000    
CA Department of Water Resources  
Power Supply Revenue:  
Series 2002 B-2,  
LOC: BNP Paribas  
3.480% 05/01/22 (a)     20,340,000       20,340,000    
Series 2005 F-2,  
LOC: JPMorgan Chase Bank,  
LOC: Societe Generale  
3.520% 05/01/20 (a)     39,500,000       39,500,000    
Series 2005 F-5,  
LOC: Citibank N.A.  
3.480% 05/01/22 (a)     41,400,000       41,400,000    
CA Housing Finance Agency  
Series 2000 A, AMT,  
LIQ FAC: Landesbank Hessen-Thuringen  
3.620% 02/01/26 (a)     8,665,000       8,665,000    
Series 2000 C, AMT,  
3.550% 02/01/33 (a)     63,300,000       63,300,000    
Series 2000 Q, AMT,  
Insured: AMBAC,  
LOC: KBC Bank N.V.  
3.370% 02/01/32 (a)     6,300,000       6,300,000    
Series 2001 A, AMT,  
SPA: Landesbank Hessen-Thuringen  
3.550% 02/01/32 (a)     8,000,000       8,000,000    
Series 2001 F, AMT,  
Insured: MBIA  
3.370% 02/01/32 (a)     6,100,000       6,100,000    
Series 2002 B, AMT,  
Insured: FSA,  
3.550% 08/01/33 (a)     25,000,000       25,000,000    
Series 2002 Q, AMT,  
LIQ FAC: Bank of Nova Scotia  
3.400% 08/01/33 (a)     4,810,000       4,810,000    

 

    Par ($)   Value ($)  
Series 2005 H, AMT,  
SPA: Dexia Credit Local  
3.610% 02/01/36 (a)     38,280,000       38,280,000    
Series 2005 III D, AMT,  
SPA: DEPFA Bank PLC  
3.550% 08/01/38 (a)     57,335,000       57,335,000    
Series 2006 A, AMT,  
SPA: DEPFA Bank PLC  
3.610% 02/01/41 (a)     9,920,000       9,920,000    
Series 2006 C, AMT,  
SPA: Calyon Bank  
3.570% 02/01/37 (a)     2,825,000       2,825,000    
Series 2006 F, AMT,  
SPA: Fortis Bank S.A.:  
3.590% 08/01/40 (a)     7,500,000       7,500,000    
3.590% 02/01/41 (a)     16,060,000       16,060,000    
CA Los Angeles Department of Airports  
Series 2003 A,  
LOC: BNP Paribas  
3.480% 05/15/16 (a)     7,880,000       7,880,000    
CA Los Angeles Harbor Department  
Series 2006, AMT,  
Insured: FGIC,  
LIQ FAC: Merrill Lynch Capital Services  
3.460% 08/01/24 (a)     8,450,000       8,450,000    
CA Sacramento County Housing Authority  
Series 2005, AMT,  
LIQ FAC: Merrill Lynch Capital Services  
3.510% 11/01/42 (a)     8,030,000       8,030,000    
California Total             469,895,000    
Colorado – 7.2%  
CO Boulder County  
Boulder Medical Center, Inc.,  
Series 1998, AMT,  
LOC: Wells Fargo Bank N.A.  
3.500% 01/01/17 (a)     2,615,000       2,615,000    
CO Denver City & County Airport Revenue  
Series 2000 B, AMT,  
Insured: MBIA,  
SPA: Bank One N.A.  
3.490% 11/15/25 (a)     67,410,000       67,410,000    
Series 2004 B, AMT,  
Insured: AMBAC  
3.450% 11/15/24 (a)     15,000,000       15,000,000    

 

See Accompanying Notes to Financial Statements.

39


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2005 1023,  
Insured: XLCA,  
LIQ FAC: JPMorgan Chase Bank  
3.450% 05/15/13 (a)     5,995,000       5,995,000    
Series 2005 C-1,  
Insured: CIFG,  
SPA: Morgan Stanley  
3.490% 11/15/25 (a)     43,800,000       43,800,000    
Series 2006, AMT,  
Insured: MBIA,  
LIQ FAC: Dexia Credit Local  
3.490% 11/15/12 (a)     11,365,000       11,365,000    
CO Douglas County Multi-Family Revenue Housing  
Lincoln Pointe Loft Projects,  
Series 2003, AMT,  
LOC: U.S. Bank N.A.  
3.680% 02/01/37 (a)     9,585,000       9,585,000    
CO Educational & Cultural Facilities Authority  
EOP Charlotte JW LLC,  
Series 2005 A,  
LOC: Sovereign Bank FSB,  
3.470% 09/01/35 (a)     10,000,000       10,000,000    
CO Health Facilities Authority  
Bethesda Associates,  
Series 1999,  
LOC: LaSalle Bank N.A.  
3.400% 08/15/30 (a)     8,725,000       8,725,000    
Colorado West Regional
Mental Health Center,		  
Series 2005,  
LOC: JPMorgan Chase Bank  
3.410% 03/01/30 (a)     7,550,000       7,550,000    
Crossroads at Delta Alf,  
Series 2004 A,  
LOC: U.S. Bank N.A.  
3.470% 11/01/28 (a)     2,800,000       2,800,000    
CO Housing & Finance Authority  
Series 2002 A-1, AMT,  
SPA: FHLMC  
3.490% 10/01/22 (a)     9,090,000       9,090,000    
Series 2002 A-2, AMT,  
SPA: FHLMC  
3.490% 11/01/21 (a)     2,495,000       2,495,000    
Series 2002 C-3, AMT,  
SPA: Lloyds TSB Bank PLC  
3.490% 05/01/22 (a)     15,685,000       15,685,000    

 

    Par ($)   Value ($)  
Series 2002 I-C2, AMT,  
SPA: FHLMC  
3.490% 10/01/32 (a)     49,650,000       49,650,000    
Series 2003 B-3, AMT,  
SPA: JPMorgan Chase Bank  
3.490% 11/01/26 (a)     31,600,000       31,600,000    
Series 2004 A-2, AMT,  
SPA: Dexia Credit Local  
3.490% 11/01/26 (a)     50,000,000       50,000,000    
Series 2004 I-A, AMT,  
SPA: FHLMC  
3.490% 04/01/45 (a)     10,785,000       10,785,000    
Series 2006 1-B-3, AMT,  
SPA: DEPFA Bank PLC  
3.490% 11/01/36 (a)     20,000,000       20,000,000    
CO Medium Term Tax-Exempt
Multifamily Housing Trust		  
Series 2006, AMT,  
SPA: Merrill Lynch
Capital Services		      
3.540% 08/15/18 (a)     193,990,000       193,990,000    
CO SCA Tax Exempt Trust  
Series 2005 PT-2522,  
Insured: FSA,  
LOC: Merrill Lynch
Capital Services		      
3.460% 01/01/30 (a)     6,120,000       6,120,000    
CO Student Obligation Bond Authority  
Series 1999 A-2, AMT,  
Insured: AMBAC,  
SPA: Lloyds TSB Bank PLC  
3.450% 07/01/27 (a)     51,600,000       51,600,000    
Series 1999 A-3, AMT,  
Insured: AMBAC,  
SPA: Lloyds TSB Bank PLC  
3.450% 09/01/34 (a)     29,800,000       29,800,000    
Colorado Total             655,660,000    
Connecticut – 1.1%  
CT Fairfield  
Series 2006,  
4.500% 07/26/07     28,510,000       28,704,989    
CT Health & Educational Facilities Authority  
Yale University:  
Series 1997 T-1,  
3.540% 07/01/29 (a)     9,945,000       9,945,000    
Series 2002 T-2,  
3.450% 07/01/29 (a)     30,345,000       30,343,483    

 

See Accompanying Notes to Financial Statements.

40


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2003 X-2,  
3.450% 07/01/37 (a)     34,545,000       34,543,273    
Connecticut Total             103,536,745    
Delaware – 4.4%  
DE Economic Development Authority  
Industrial Development Revenue,  
Series 1998, AMT,  
LOC: PNC Bank Delaware  
3.530% 09/01/18 (a)     1,600,000       1,600,000    
DE GS Pool Trust  
Series 2006, AMT,  
LIQ FAC: Goldman Sachs:  
3.510% 07/01/48 (a)     52,025,000       52,025,000    
3.540% 08/01/49 (a)     113,727,233       113,727,233    
Series 2006-65,  
LIQ FAC: Goldman Sachs  
3.540% 10/01/44 (a)     161,595,000       161,595,000    
DE New Castle County  
Fairfield English VLG LLC,  
Series 2005, AMT,  
Insured: FNMA  
3.470% 09/15/38 (a)     8,500,000       8,500,000    
Flight Safety International, Inc.,  
Series 2002, AMT,  
3.440% 12/01/32 (a)     5,185,000       5,185,000    
DE Reset Optional
Certificates Trust II-R		  
Series 2006,  
LIQ FAC: Citigroup
Financial Products		      
3.510% 03/01/07 (a)     49,190,000       49,190,000    
DE Roaring Fork Municipal Products LLC  
Series 2006 A, AMT,  
Insured: FNMA,  
SPA: Bank of New York  
3.470% 08/15/39 (a)     10,297,000       10,297,000    
Delaware Total             402,119,233    
District of Columbia – 0.9%  
DC Columbia Enterprise Zone Revenue  
House on F Street Project,  
Series 2001, AMT,  
LOC: Bank of New York  
3.490% 05/01/15 (a)     7,500,000       7,500,000    
Series 2004, AMT,  
LOC: Bank of Scotland  
3.510% 12/01/29 (a)     5,000,000       5,000,000    

 

    Par ($)   Value ($)  
DC Housing Finance Agency  
Multi-Family Housing Revenue,  
Series 1995 A, AMT,  
3.490% 08/01/25 (a)     5,000,000       5,000,000    
DC Metropolitan Area Transportation Authority  
Series 2003,  
Insured: MBIA  
3.460% 01/01/10 (a)     8,360,000       8,360,000    
DC Metropolitan Washington Airports Authority  
Series 1997 B, AMT,  
Insured: FGIC  
6.000% 10/01/06     1,000,000       1,001,823    
Series 2004, AMT,  
Insured: MBIA,  
SPA: Merrill Lynch Capital Services  
3.490% 10/01/12 (a)     2,750,000       2,750,000    
Series 2005 1017, AMT,  
Insured: FGIC,  
LIQ FAC: JPMorgan Chase Bank  
3.480% 10/01/11 (a)     4,795,000       4,795,000    
Series 2006 D, AMT,  
Insured: FSA,  
LIQ FAC: Goldman Sachs Group, Inc.  
3.480% 08/15/14 (a)     12,000,000       12,000,000    
Series 2006, AMT:  
Insured: FSA,  
LIQ FAC: Citibank N.A.  
3.490% 10/01/35 (a)     22,600,000       22,600,000    
Insured: MBIA,  
LIQ FAC: BNP Paribas  
3.480% 10/01/35 (a)     8,835,000       8,835,000    
DC Revenue  
National Association of Realtors,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.460% 12/01/23 (a)     7,500,000       7,500,000    
District of Columbia Total             85,341,823    
Florida – 4.1%  
FL Alachua County Health Facilities Authority  
Shands Teaching Hospital,  
Series 2002 A,  
LOC: SunTrust Bank  
3.570% 12/01/12 (a)     3,000,000       3,000,000    
FL Board of Education  
Series 2003,  
Insured: MBIA  
3.450% 01/01/12 (a)     7,600,000       7,600,000    

 

See Accompanying Notes to Financial Statements.

41


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
FL Brevard County Housing
Finance Authority		  
Series 2005 MT-112, AMT,  
SPA: Merrill Lynch Capital Services,  
GTY AGMT: IXIS Municipal Products, Inc.  
3.490% 11/01/14 (a)     13,780,000       13,780,000    
Series 2005 PT-2815,  
LIQ FAC: Merrill Lynch
Capital Services		      
3.490% 11/01/14 (a)     9,900,000       9,900,000    
FL Broward County Housing
Finance Authority		  
Series 2006, AMT,  
LIQ FAC: Goldman Sachs  
3.510% 06/01/46 (a)     58,465,000       58,465,000    
FL Collier County Industrial
Development Authority		  
Allete, Inc.,  
Series 2006, AMT,  
LOC: Wells Fargo Bank N.A.  
3.450% 10/01/25 (a)     9,800,000       9,800,000    
YMCA of Collier County,  
Series 2004,  
LOC: SunTrust Bank  
3.460% 09/01/29 (a)     4,635,000       4,635,000    
FL Fort Walton Beach Industrial
Development Revenue		  
Burton Golf, Inc.,  
Series 1996, AMT,  
LOC: Columbus Bank & Trust  
3.710% 10/01/11 (a)     1,080,000       1,080,000    
FL Higher Educational Facilities
Financing Authority		  
St. Thomas University,  
Series 2003,  
LOC: SunTrust Bank  
3.570% 01/01/19 (a)     2,600,000       2,600,000    
FL Housing Finance Agency Revenue  
Multi-Family Housing Revenue,  
Lakes of Northdale Project,  
Series 1984 D,  
LOC: SouthTrust Bank of Alabama  
3.450% 05/15/12 (a)     7,545,000       7,545,000    
Series 1996 F, AMT,  
Insured: FNMA  
3.450% 06/01/26 (a)     11,500,000       11,500,000    

 

    Par ($)   Value ($)  
FL Housing Finance Corp.  
Hunters Run Partners II, Ltd.,  
Series 2003 G, AMT,  
Insured: FSA  
3.460% 06/15/36 (a)     6,825,000       6,825,000    
Mango Grove LLC,  
Series 2005 A, AMT,  
LOC: Citibank N.A.  
3.460% 09/15/37 (a)     8,400,000       8,400,000    
Series 2006, AMT,  
LIQ FAC: Goldman Sachs  
3.510% 06/01/46 (a)     24,995,000       24,995,000    
Tuscany Lakes Ltd,  
Series 2002 1, AMT,  
Insured: FNMA  
3.490% 11/15/35 (a)     3,500,000       3,500,000    
FL Lake County Industrial
Development Authority		  
Senniger Irrigation, Inc.,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.460% 11/01/24 (a)     5,225,000       5,225,000    
FL Lee County Housing Finance Authority  
Crossing at Cape Coral,  
Series 1999 A, AMT,  
LOC: SunTrust Bank N.A.  
3.680% 12/01/32 (a)     6,160,000       6,160,000    
FL Lee County Industrial Development Authority  
North Fort Myers Utilities,  
Series 2003 A, AMT,  
LOC: SunTrust Bank  
3.460% 06/01/22 (a)     6,000,000       6,000,000    
FL Manatee County Industrial Development Revenue  
Gammerler LLC,  
Series 2005, AMT,  
LOC: LaSalle Bank N.A.  
3.520% 10/01/35 (a)     4,750,000       4,750,000    
FL Miami Dade County  
3.650% 09/07/06     13,560,000       13,560,000    
3.700% 09/29/06     6,144,000       6,144,000    
FL Miami Dade County Florida School District  
Series 2006,  
4.500% 06/28/07     43,000,000       43,261,062    

 

See Accompanying Notes to Financial Statements.

42


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
FL Miami Dade County Industrial
Development Authority		  
Airis Miami LLC,  
Series 1999 A, AMT,  
Insured: AMBAC,  
LOC: Bayerische Landesbank  
3.450% 10/15/25 (a)     7,000,000       7,000,000    
FL Miami Dade County  
Series 2005 MT-177,  
Insured: XLCA,  
LIQ FAC: Merrill Lynch Capital Services  
3.330% 10/01/13 (a)(b)     14,805,000       14,805,000    
FL Pinellas County Housing Finance Authority  
Alta Largo LLC,  
Series 2004, AMT,  
LOC: AmSouth Bank  
3.490% 06/01/42 (a)     8,400,000       8,400,000    
Eurobake LP,  
Series 2005, AMT,  
LOC: AmSouth Bank  
3.460% 03/01/26 (a)     5,500,000       5,500,000    
Series 2005, AMT,  
3.490% 05/01/14 (a)     21,880,000       21,880,000    
FL St. Johns County Industrial
Development Authority		  
Rulon Co.,  
Series 2004, AMT,  
LOC: Coastal Bank of Georgia  
3.560% 11/01/34 (a)     7,000,000       7,000,000    
FL Sunshine State Governmental
Financing Commission		  
3.640% 09/07/06     16,125,000       16,125,000    
3.680% 09/05/06     27,895,000       27,895,000    
Series 1986,  
Insured: AMBAC,  
SPA: Dexia Credit Local  
3.550% 07/01/16 (a)     3,780,000       3,780,000    
Florida Total             371,110,062    
Georgia – 4.4%  
GA Alpharetta Development Authority  
Parc Alpharetta LLC,  
Series 2006, AMT,  
LOC: Regions Bank  
3.480% 04/01/41 (a)     21,795,000       21,795,000    

 

    Par ($)   Value ($)  
GA Atlanta Airport Revenue  
Series 2001, AMT,  
Insured: FGIC  
3.490% 01/01/08 (a)     12,960,000       12,960,000    
Series 2003, AMT,  
Insured: FGIC  
3.490% 01/01/14 (a)     5,390,000       5,390,000    
Series 2004 C14, AMT,  
Insured: FSA,  
SPA: Wachovia Bank N.A.  
3.500% 01/01/18 (a)     4,205,000       4,205,000    
Series 2004, AMT,  
Insured: FGIC  
3.490% 01/01/14 (a)     4,470,000       4,470,000    
GA Atlanta Urban Residential Finance Authority  
Multi-Family Revenue:  
Collegetown Harris Project,  
Series 2003 I, AMT,  
3.470% 10/15/36 (a)     3,765,000       3,765,000    
Housing Market District Project,  
Series 2004 A, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 11/01/34 (a)     9,850,000       9,850,000    
M Street Apartments Project,  
Series 2003, AMT,  
LOC: Regions Bank  
3.470% 03/01/38 (a)     14,000,000       14,000,000    
Park District Atlantic Project,  
Series 2002 A, AMT,  
LOC: SouthTrust Bank  
3.500% 12/01/37 (a)     25,100,000       25,100,000    
Northside Plaza Group LP,  
Series 2002, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 11/01/27 (a)     4,860,000       4,860,000    
Series 2005, AMT:  
LIQ FAC: Merrill Lynch
Capital Services		      
3.540% 12/01/43 (a)     11,995,000       11,995,000    
SPA: Merrill Lynch Capital Services  
3.540% 12/01/30 (a)     4,995,000       4,995,000    
Series 2006, AMT,  
SPA: Merrill Lynch Capital Services  
3.540% 11/01/43 (a)     9,495,000       9,495,000    
GA Burke County Development Authority  
Oglethorpe Power Corp.:  
Series 1999 B,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.570% 01/01/20 (a)     20,500,000       20,500,000    

 

See Accompanying Notes to Financial Statements.

43


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2001,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.570% 01/01/22 (a)     6,320,000       6,320,000    
Series 2002 C,  
Insured: MBIA,  
SPA: JPMorgan Chase Bank  
3.570% 01/01/18 (a)     10,155,000       10,155,000    
GA Carroll County Development Authority  
Industrial Revenue,  
Royal Metal Products Project,  
Series 2004, AMT,  
LOC: SunTrust Bank  
3.460% 06/01/24 (a)     5,705,000       5,705,000    
GA City of Atlanta Tax Allocation  
Series 2006,  
LIQ FAC: AIG Global Real Estate,  
LOC: Wachovia Bank N.A.  
3.510% 12/01/24 (a)     24,000,000       24,000,000    
GA Clayton County Development Authority  
Delta Airlines, Inc.,  
Series 2000 C, AMT,  
LOC: General Electric
Capital Corp.		  
3.550% 05/01/35 (a)     10,000,000       10,000,000    
Wilson Holdings, Inc.,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.510% 11/01/13 (a)     3,440,000       3,440,000    
GA Cobb County Housing Authority  
Series 2003, AMT,  
SPA: Merrill Lynch Capital Services  
3.540% 02/01/34 (a)     12,895,000       12,895,000    
Series 2005,  
SPA: Merrill Lynch Capital Services  
3.540% 01/01/49 (a)     10,290,000       10,290,000    
Terrell Mill II Associates,  
Series 2003, AMT,  
LOC: Regions Bank  
3.500% 03/15/36 (a)     3,900,000       3,900,000    
GA Columbia County Development Authority  
Multi-Family Revenue,  
Westwood Club Apartment Project,  
Series 2002, AMT,  
LOC: Keybank N.A.  
3.470% 11/15/35 (a)     9,215,000       9,215,000    

 

    Par ($)   Value ($)  
GA Columbus Hospital Authority  
St. Francis Hospital, Inc.,  
Series 2000 A,  
LOC: Columbus Bank & Trust  
3.620% 01/01/31 (a)     11,245,000       11,245,000    
GA DeKalb County Housing Authority  
Multi Family Revenue,  
Series 2004, AMT,  
SPA: Merrill Lynch Capital Services  
3.540% 04/01/16 (a)     12,200,000       12,200,000    
Multi-Family Revenue,  
Stone Mill Run Apartments Project,  
Series 1995 A, AMT,  
LOC: First Tennessee Bank N.A.  
3.500% 08/01/27 (a)     7,475,000       7,475,000    
GA Dooly County Industrial Development Authority Revenue  
Hambug Enterprises Project,  
Series 2003, AMT,  
LOC: Fifth Third Bank  
3.670% 12/01/17 (a)     4,120,000       4,120,000    
GA Douglas County Development Authority  
Colonial Hills School Property Project,  
Series 2004,  
LOC: Branch Banking & Trust  
3.450% 06/01/24 (a)     2,895,000       2,895,000    
GA East Point Housing Authority Multi-Family Revenue  
Village Highlands Apartments Project,  
Series 2004, AMT,  
LOC: SunTrust Bank  
3.460% 07/01/37 (a)     8,000,000       8,000,000    
GA Franklin County Industrial Building Authority Revenue  
Bosal Industries Georgia, Inc. Project,  
Series 1995,  
LOC: Standard Federal Bank  
3.500% 08/01/10 (a)     4,620,000       4,620,000    
GA Fulco Hospital Authority  
Piedmont Medical Center,  
Series 1999,  
LOC: SunTrust Bank  
3.400% 03/01/24 (a)     8,760,000       8,760,000    
GA Fulton County Development Authority  
Leggett & Platt, Inc. Project,  
Series 1992 A, AMT,  
LOC: Wachovia Bank of Georgia  
3.610% 06/01/27 (a)     3,900,000       3,900,000    

 

See Accompanying Notes to Financial Statements.

44


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
OBH, Inc.,  
Series 1999 B, AMT:  
3.440% 12/01/18 (a)     34,870,000       34,870,000    
3.440% 12/01/28 (a)     9,350,000       9,350,000    
GA Gainesville Hall County  
Fieldale Farms Corp.,  
Series 2002, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 08/01/27 (a)     1,500,000       1,500,000    
GA Gwinnett County Development Authority  
Series 2004,  
Insured: MBIA  
3.450% 01/01/21 (a)     5,425,000       5,425,000    
GA Gwinnett County Development Authority
Industrial Development Revenue		  
Maltese Signs, Inc.,  
Series 2000, AMT,  
LOC: SunTrust Bank  
3.510% 02/01/15 (a)     1,800,000       1,800,000    
GA Houston County Development Authority  
Perdue Farms, Inc.,  
Series 2005, AMT,  
LOC: SunTrust Bank  
3.460% 01/01/18 (a)     6,000,000       6,000,000    
GA Kennesaw Development Authority Housing  
Walton Ridenour
Apartments Project,		  
Series 2004, AMT,  
LOC: SunTrust Bank  
3.460% 04/01/37 (a)     5,000,000       5,000,000    
GA Ports Authority  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.460% 10/01/23 (a)     3,400,000       3,400,000    
GA Private Colleges & Universities Authority  
Mercer University Project,  
Series 2003,  
LOC: Branch Banking & Trust  
3.470% 10/01/32 (a)     7,205,000       7,205,000    
GA Stephens County Development Authority  
Series 2005, AMT,  
LOC: Provident Bank  
3.520% 02/01/20 (a)     2,790,000       2,790,000    

 

    Par ($)   Value ($)  
GA Thomasville Payroll Development Authority  
Scruggs Co. Project,  
Series 2000,  
LOC: First Union National Bank  
3.560% 08/01/10 (a)     475,000       475,000    
GA Union County Development Authority  
Applewood Doors & Windows,  
Series 2005, AMT,  
LOC: Branch Banking & Trust  
3.550% 12/01/22 (a)     3,585,000       3,585,000    
GA Urban Residential Finance Authority  
Lindbergh City Center Apartment,  
Series 2004,  
LOC: Regions Bank  
3.480% 11/01/44 (a)     7,500,000       7,500,000    
GA Wayne County Industrial Development Authority  
Absorption Corp.,  
Series 2004, AMT,  
LOC: Branch Banking & Trust  
3.550% 09/01/19 (a)     4,700,000       4,700,000    
Georgia Total             406,115,000    
Guam – 0.0%  
GU International Airport Authority  
Series 2003 C, AMT,  
Insured: MBIA,  
5.000% 10/01/06     1,250,000       1,251,215    
Guam Total             1,251,215    
Hawaii – 0.3%  
HI ABN AMRO Munitops Certificates Trust  
Series 2004,  
Insured: MBIA  
3.350% 07/01/12 (a)     12,000,000       12,000,000    
HI Airports System Revenue  
Series 2004, AMT:  
3.490% 01/01/10 (a)     2,660,000       2,660,000    
Insured: FGIC  
3.490% 01/01/10 (a)     1,690,000       1,690,000    
Series 2006, AMT,  
Insured: FGIC,  
LIQ FAC: Lehman Liquidity Co.  
3.520% 07/01/14 (a)     5,465,000       5,465,000    

 

See Accompanying Notes to Financial Statements.

45


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
HI Honolulu City & County  
Multi-Family Revenue,  
Series 2005 PT-3151,  
Insured: GNMA,  
SPA: Merrill Lynch
Capital Services		  
3.480% 06/20/35 (a)     4,175,000       4,175,000    
HI State  
Series 2004,  
Insured: MBIA  
3.450% 10/01/24 (a)     3,970,000       3,970,000    
Hawaii Total             29,960,000    
Idaho – 2.0%  
ID Eagle Industrial Development Corp.  
Rose Cottage LLC,  
Series 2001, AMT,  
LOC: Wells Fargo Bank N.A.  
3.600% 09/01/21 (a)     4,160,000       4,160,000    
ID Housing & Finance Association  
Series 2002 A-38, AMT,  
LOC: Wachovia Bank N.A.  
3.500% 07/01/32 (a)     4,100,000       4,100,000    
Series 2002 B-1, AMT,  
LOC: Bayerische Landesbank  
3.490% 07/01/33 (a)     10,495,000       10,495,000    
Series 2002 D, AMT,  
SPA: Bayerische Landesbank  
3.490% 07/01/33 (a)     13,485,000       13,485,000    
Single Family Mortgage Revenue:  
Series 2001 F, AMT,  
SPA: Bayerische Landesbank  
3.490% 01/01/33 (a)     8,500,000       8,500,000    
Series 2003 C, AMT,  
SPA: Bayerische Landesbank  
3.490% 07/01/34 (a)     9,205,000       9,205,000    
Series 2004 C, AMT,  
LIQ FAC: Lloyds TSB Bank PLC  
3.490% 01/01/36 (a)     13,900,000       13,900,000    
Series 2004 D,  
LIQ FAC: Lloyds TSB Bank PLC  
3.490% 01/01/36 (a)     17,965,000       17,965,000    
Series 2005 B, AMT,  
SPA: Lloyds TSB Bank PLC  
3.490% 07/01/36 (a)     18,650,000       18,650,000    
Series 2005 D, AMT,  
SPA: Lloyds TSB Bank PLC  
3.490% 01/01/37 (a)     8,900,000       8,900,000    

 

    Par ($)   Value ($)  
Series 2005 E,  
LOC: Lloyds TSB Bank PLC  
3.490% 01/01/37 (a)     9,450,000       9,450,000    
Series 2006 B, AMT,  
SPA: Lloyds TSB Bank PLC  
3.490% 07/01/37 (a)     15,000,000       15,000,000    
Series 2006 C, AMT,  
SPA: Lloyds TSB Bank PLC  
3.490% 01/01/38 (a)     15,000,000       15,000,000    
Series 2006, AMT,  
SPA: Lloyds TSB Bank PLC:  
3.490% 07/01/37 (a)     9,650,000       9,650,000    
3.490% 01/01/38 (a)     8,750,000       8,750,000    
ID Power County Industrial Development Revenue  
FMC Corp.,  
Series 2001, AMT,  
LOC: Wachovia Bank N.A  
3.460% 04/01/14 (a)     12,500,000       12,500,000    
Idaho Total             179,710,000    
Illinois – 3.9%  
IL Addison Industrial Development Revenue  
Series 1996, AMT,  
LOC: LaSalle Bank N.A.  
3.600% 07/01/21 (a)     1,795,000       1,795,000    
IL Boone McHenry & Dekalb Counties Community Unit School District No. 100  
Series 2005 PZ-50,  
Insured: MBIA,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.480% 12/01/23 (a)     3,010,000       3,010,000    
IL Chicago Board of Education  
Series 2005 D-2,  
Insured: CIFG,  
LOC: DEPFA Bank PLC  
3.580% 03/01/36 (a)     31,675,000       31,675,000    
IL Chicago Enterprise Zone Revenue  
Gas Plus, Inc.,  
Series 2002, AMT,  
LOC: Northern Trust Co.  
3.730% 11/01/22 (a)     1,450,000       1,450,000    
IL Chicago Heights Industrial Development Revenue  
Series 1998 A, AMT,  
LOC: Fifth Third Bank  
3.510% 12/01/18 (a)     1,140,000       1,140,000    

 

See Accompanying Notes to Financial Statements.

46


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
IL Chicago Industrial Development Revenue  
Bullen Midwest Inc.,  
Series 1997, AMT,  
3.580% 11/01/17 (a)     1,040,000       1,040,000    
Eli's Chicago's Finest Inc.,  
Series 1996, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 11/01/26 (a)     1,300,000       1,300,000    
Flying Food Fare Midway,  
Series 1999, AMT,  
LOC: Harris Trust &
Savings Bank		  
3.500% 12/01/28 (a)     4,900,000       4,900,000    
IL Chicago Midway Airport Revenue  
Series 1998 A, AMT,  
Insured: MBIA  
3.660% 01/01/29 (a)     3,300,000       3,300,000    
Series 1998 B, AMT,  
Insured: MBIA  
3.660% 01/01/29 (a)     2,300,000       2,300,000    
IL Chicago Multi-Family Housing Revenue  
Concordia Place Apartments LP,  
Series 2003, AMT,  
LOC: Harris Trust & Savings Bank  
3.460% 07/01/34 (a)     13,565,000       13,565,000    
Lincoln Village LLC,  
Series 2006, AMT,  
LOC: Harris N.A.  
3.470% 06/01/40 (a)     8,437,000       8,437,000    
North Larabee LP:  
Series 2001 A, AMT,  
LOC: Harris Trust & Savings Bank  
3.530% 04/01/36 (a)     1,470,000       1,470,000    
Series 2001 B,  
LOC: Harris Trust & Savings Bank  
3.530% 04/01/09 (a)     2,000,000       2,000,000    
Renaissance Saint Luke LP,  
Series 2004 A, AMT,  
LOC: Harris Trust & Savings Bank  
3.530% 01/01/39 (a)     3,740,000       3,740,000    
IL Chicago O'Hare International Airport  
Air France,  
Series 1991, AMT,  
LOC: Societe Generale  
3.480% 05/01/18 (a)     8,200,000       8,200,000    

 

    Par ($)   Value ($)  
Series 1997, AMT,  
Insured: AMBAC,  
LOC: Merrill Lynch Capital Services  
3.490% 01/01/16 (a)     17,150,000       17,150,000    
Series 2003, AMT,  
Insured: FSA:  
3.480% 01/01/22 (a)     5,200,000       5,200,000    
3.490% 07/01/11 (a)     5,500,000       5,500,000    
Series 2003, AMT,  
Insured: MBIA  
3.490% 07/01/08 (a)     3,130,000       3,130,000    
Series 2003,  
Insured: FSA  
3.490% 07/01/11 (a)     9,995,000       9,995,000    
Series 2004,  
Insured: MBIA  
3.490% 01/01/17 (a)     4,000,000       4,000,000    
IL Chicago Single Family Mortgage Revenue  
Series 2006 F, AMT,  
3.850% 09/07/07     3,500,000       3,500,000    
IL Chicago Solid Waste Disposal Facility Revenue  
Groot Industries, Inc.,  
Series 1995, AMT,  
LOC: JPMorgan Chase Bank  
3.580% 12/01/15 (a)     1,100,000       1,100,000    
IL Chicago Wastewater Transmission Revenue  
Series 2004,  
Insured: MBIA  
3.480% 01/01/22 (a)     1,685,000       1,685,000    
IL City of Bloomington  
Series 2005, AMT,  
SPA: Merrill Lynch Capital Services  
3.540% 01/01/44 (a)     4,395,000       4,395,000    
IL Cook County  
Series 2003,  
Insured: MBIA  
3.450% 11/15/21 (a)     2,795,000       2,795,000    
IL Development Finance Authority Industrial
Development Revenue		  
Campagna-Turano Bakery,  
Series 2000, AMT,  
LOC: American National Bank & Trust  
3.700% 08/01/25 (a)     1,260,000       1,260,000    

 

See Accompanying Notes to Financial Statements.

47


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Clingan Steel, Inc.,  
Series 2003, AMT,  
LOC: LaSalle National Bank  
3.700% 12/01/23 (a)     3,950,000       3,950,000    
Feltes Sand & Grave Co.,  
Series 2003, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 12/01/18 (a)     3,380,000       3,380,000    
Forty Foot High Realty LLC,  
Series 2002, AMT,  
LOC: National City Bank  
3.520% 12/01/27 (a)     4,310,000       4,310,000    
HSU Properties LLC,  
Series 2003, AMT,  
LOC: Fifth Third Bank  
3.670% 08/01/33 (a)     1,015,000       1,015,000    
Knead Dough Banking Co.,  
Series 2000, AMT,  
LOC: Bank One N.A.  
3.700% 09/01/25 (a)     1,035,000       1,035,000    
Rainbow Graphics, Inc.,  
Series 2003, AMT,  
LOC: Bank One N.A.  
3.700% 08/01/23 (a)     2,210,000       2,210,000    
Royal Continental Box,  
Series 1995 B, AMT,  
LOC: LaSalle National Bank  
3.510% 04/01/10 (a)     1,250,000       1,250,000    
Ruebenson Real Estate LLC,  
Series 1999 A,  
LOC: National City Bank N.A.  
3.520% 06/01/24 (a)     3,905,000       3,905,000    
Series 1990 A, AMT,  
LOC: Bank One Kentucky N.A.  
3.600% 01/01/10 (a)     3,100,000       3,100,000    
Unique Building Corp.,  
Series 1989, AMT,  
LOC: American National Bank & Trust Co.  
3.640% 05/01/19 (a)     2,800,000       2,800,000    
WM Plastics Project,  
Series 2001, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 08/01/26 (a)     3,700,000       3,700,000    
IL Development Finance Authority  
Affordable Housing Revenue,  
Lake Towers Associates II LP,  
Series 1997, AMT,  
LOC: Bank One N.A.  
3.560% 04/15/37 (a)     2,445,000       2,445,000    

 

    Par ($)   Value ($)  
Groot Industries, Inc.,  
Series 2003,  
LOC: Bank One N.A.  
3.580% 12/01/23 (a)     5,130,000       5,130,000    
Jewish Council Youth Service,  
Series 2003,  
LOC: Harris Trust Bank  
3.480% 09/01/28 (a)     1,100,000       1,100,000    
Lifesource Project,  
Series 2000,  
LOC: PNC Bank N.A.  
3.430% 06/01/20 (a)     5,900,000       5,900,000    
Multi-Family Revenue,  
West Chicago
Senior Apartment,		  
Series 2003, AMT,  
LOC: Citibank N.A.  
3.520% 02/01/38 (a)     6,700,000       6,700,000    
Sexton Energy,  
Series 2003, AMT,  
LOC: Fifth Third Bank  
3.490% 10/01/23 (a)     7,500,000       7,500,000    
IL Educational Facilities Authority  
Chaplin Hall Center
Children Project,		  
Series 2003,  
3.600% 07/01/24 (a)     2,945,000       2,945,000    
National Louis University,  
Series 1999 A,  
LOC: America National Bank & Trust  
3.450% 06/01/29 (a)     10,750,000       10,750,000    
IL Elgin Industrial Development Revenue  
Nelson Graphic, Inc. Project,  
Series 2000, AMT,  
3.510% 05/01/20 (a)     2,045,000       2,045,000    
IL Elmhurst Industrial Development Revenue  
John Sakash Co. Project,  
Series 2000, AMT,  
LOC: Citibank N.A.  
3.510% 02/01/25 (a)     1,800,000       1,800,000    
IL Finance Authority Industrial Development Revenue  
Merug LLC,  
Series 2004 A,  
LOC: JPMorgan Chase Bank  
3.700% 12/01/18 (a)     2,330,000       2,330,000    
Series 2005, AMT,  
LOC: National City Bank  
3.520% 11/01/18 (a)     1,260,000       1,260,000    

 

See Accompanying Notes to Financial Statements.

48


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
IL Finance Authority  
Meyer Industries LLC,  
Series 2006, AMT,  
LOC: Fifth Third Bank  
3.670% 08/01/36 (a)     2,800,000       2,800,000    
Multi-Family Revenue,  
Waterton Vistas II LLC,  
Series 2004, AMT,  
Insured: FNMA  
3.500% 10/15/34 (a)     8,500,000       8,500,000    
Plymouth Place, Inc.,  
Series 2005 C,  
LOC: LaSalle Bank N.A.  
3.400% 05/15/37 (a)     18,300,000       18,300,000    
IL Freeport  
Multi-Family Revenue,  
Series 2005, AMT,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.540% 01/01/44 (a)     3,995,000       3,995,000    
IL Gurnee Industrial Development Revenue  
Kenall Manufacturing Co.,  
Series 1998,  
3.530% 03/01/18 (a)     540,000       540,000    
IL Housing Development Authority  
Multi-Family Revenue:  
Mattoon Towers Associates II,  
Series 2004, AMT,  
LOC: First National Bank  
3.450% 01/01/34 (a)     3,275,000       3,275,000    
Pontiac Tower Associates III,  
Series 2005, AMT,  
LOC: Harris N.A.  
3.450% 09/01/35 (a)     4,500,000       4,500,000    
Series 2006 C, AMT,  
Insured: FGIC,  
SPA: DEPFA Bank PLC  
3.450% 07/01/41 (a)     5,660,000       5,660,000    
Spring Creek Associates,  
Series 2004, AMT,  
LOC: LaSalle Bank N.A.  
3.460% 04/01/34 (a)     6,210,000       6,210,000    
IL Industrial Development Revenue  
Enterprise Center X Project,  
Series 1992, AMT,  
Insured: LaSalle National Bank  
3.510% 06/01/22 (a)     4,300,000       4,300,000    

 

    Par ($)   Value ($)  
IL Lombard Village Industrial Projects  
B&H Partnership Project,  
Series 1995,  
LOC: LaSalle Bank N.A.  
3.810% 10/01/13 (a)     1,500,000       1,500,000    
IL McLean & Woodford Counties
School District No. 005		  
Series 2003,  
Insured: FSA  
3.450% 12/01/09 (a)     9,740,000       9,740,000    
IL Metropolitan Pier & Exposition
Authority Dedicated State Tax		  
Series 2004,  
Insured: FGIC  
3.480% 05/22/24 (a)     8,260,000       8,260,000    
IL New Lenox Industrial Development Revenue  
Panduit Corp.,  
Series 1990, AMT,  
LOC: Fifth Third Bank  
3.590% 07/01/15 (a)     5,600,000       5,600,000    
IL Orland Park Industrial Development Revenue  
Panduit Corp.,  
Series 1996, AMT,  
LOC: Fifth Third Bank  
3.590% 04/01/31 (a)     2,500,000       2,500,000    
IL Palos Hills Multi-Family Housing Revenue  
Green Oaks Project,  
Series 1998, AMT,  
3.510% 08/01/29 (a)     3,670,000       3,670,000    
IL Savanna Industrial Development Revenue  
Metform Corp. Project,  
Series 1994 B, AMT,  
LOC: Bank One N.A.  
3.700% 06/01/09 (a)     1,700,000       1,700,000    
IL Skokie Industrial Development Revenue  
Series 2003, AMT,  
LOC: LaSalle Bank N.A.  
3.520% 12/01/33 (a)     2,400,000       2,400,000    
IL Tinley Park Industrial Development Revenue  
8300 West 185th Street LLC,  
Series 1997 A, AMT,  
LOC: American National
Bank & Trust		  
3.610% 09/01/17 (a)     1,940,000       1,940,000    
IL University Certificates of Participation  
Series 2004,  
Insured: FGIC  
3.450% 03/01/11 (a)     5,250,000       5,250,000    

 

See Accompanying Notes to Financial Statements.

49


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
IL Upper River Valley Development
Authority Industrial Development Revenue		  
Clover Properties LLC Project,  
Series 2000, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 07/01/20 (a)     2,075,000       2,075,000    
IL Urbana Multi-Family Housing Revenue  
Prarie Green II Apartment Project,  
Series 2000, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 06/01/29 (a)     1,365,000       1,365,000    
IL Will County Community School
District No. 161 Summit Hill		  
Series PT-2862,  
Insured: FGIC,  
LOC: Merrill Lynch
Capital Services		  
3.450% 01/01/25 (a)     14,865,000       14,865,000    
IL Will County Exempt Facilities Revenue  
Amoco Co.,  
Series 1998, AMT,  
3.650% 03/01/28 (a)     5,640,000       5,640,000    
Illinois Total             354,177,000    
Indiana – 2.3%  
IN Allen County Multi-Family Housing Redevelopment  
Woodland Crest Hill Project,  
Series 1999, AMT,  
3.700% 08/01/17 (a)     2,700,000       2,700,000    
IN Bloomington Multi-Family Revenue  
Willow Manor Apartments Project,  
Series 2002, AMT,  
LOC: Fifth Third Bank  
3.670% 11/01/32 (a)     2,965,000       2,965,000    
IN Burns Harbor Economic Development Revenue  
Dennen Steel Corp.,  
Series 2003, AMT,  
LOC: Standard Federal Bank  
3.510% 12/01/23 (a)     1,630,000       1,630,000    
IN Development Finance Authority  
Economic Development Revenue,  
Berry Holdings Co. LLC,  
Series 1999, AMT,  
LOC: Bank One N.A.  
3.750% 01/01/09 (a)     460,000       460,000    

 

    Par ($)   Value ($)  
IN Elkhart Economic Development Revenue  
Crossroads Apartments LLC,  
Series 1998 A, AMT,  
LOC: FHLB  
3.640% 04/01/28 (a)     800,000       800,000    
Vahala Foam Enterprises Project,  
Series 2002, AMT,  
LOC: Bank One N.A.  
3.700% 09/01/17 (a)     1,500,000       1,500,000    
IN Elkhart Industrial Development Revenue  
Kibbe Properties LLC,  
Series 2002, AMT,  
LOC: National City Bank
of Indiana		  
3.570% 06/01/27 (a)     1,900,000       1,900,000    
IN Evansville Economic Development Revenue  
B & M Plastics, Inc. Project,  
Series 2002, AMT,  
LOC: Fifth Third Bank N.A.  
3.670% 12/01/17 (a)     1,660,000       1,660,000    
IN Finance Authority  
Mittal Steel Co. N.V.,  
Series 2006, AMT,  
LOC: Bank of Montreal  
3.500% 08/01/30 (a)     8,200,000       8,200,000    
Psi Energy, Inc.,  
Series 2005 B, AMT,  
LOC: Calyon Bank  
3.460% 10/01/40 (a)     10,500,000       10,500,000    
Series 2005, AMT,  
LOC: National City Bank  
3.520% 10/01/12 (a)     4,000,000       4,000,000    
IN Garrett Economic Development Revenue  
Series 2005, AMT,  
LOC: National City Bank  
3.520% 01/01/21 (a)     5,565,000       5,565,000    
IN Gibson County Pollution Control Revenue  
Toyota Motor Manufacturing Project:  
Series 1997, AMT,  
3.450% 10/01/27 (a)     5,000,000       5,000,000    
Series 1999, AMT,  
3.450% 01/01/29 (a)     7,000,000       7,000,000    
Series 2000 A, AMT:  
3.450% 01/01/28 (a)     10,000,000       10,000,000    
3.450% 01/01/30 (a)     6,300,000       6,300,000    
Series 2001 B, AMT,  
3.450% 09/01/31 (a)     5,000,000       5,000,000    

 

See Accompanying Notes to Financial Statements.

50


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
IN Greencastle Economic Development Revenue  
Crown Equipment Corp. Project,  
Series 1996, AMT,  
LOC: Key Bank N.A.  
3.490% 02/01/11 (a)     2,000,000       2,000,000    
Round Barn Manor Project,  
Series 2003 A, AMT,  
3.510% 01/01/28 (a)     3,182,000       3,182,000    
IN Health Facility Financing Authority  
Ascension Health:  
Series 2001 A-1,  
3.820% 11/15/36 (a)     30,000,000       30,000,000    
Series 2005 A,  
5.000% 05/01/07     13,160,000       13,255,542    
Cardinal Center, Inc. Project,  
Series 1996 A,  
LOC: Key Bank N.A.  
3.480% 12/01/16 (a)     460,000       460,000    
IN Housing & Community Development Authority  
Series 2005 B-3, AMT,  
SPA: DEPFA Bank PLC  
3.430% 07/01/36 (a)     17,000,000       17,000,000    
IN Housing Finance Authority  
Multi-Family Revenue,  
Series 1997 M-A, AMT,  
LOC: FHLB  
3.480% 01/01/29 (a)     8,212,000       8,212,000    
IN Indianapolis Local Public Improvement Bond Bank  
Series 2006, AMT,  
Insured: AMBAC:  
LIQ FAC: Dexia Credit Local  
3.480% 01/01/14 (a)     5,275,000       5,275,000    
LIQ FAC: JPMorgan Chase Bank  
3.480% 01/01/14 (a)     16,800,000       16,800,000    
SPA: Merrill Lynch Capital Services  
3.480% 01/01/20 (a)     5,505,000       5,505,000    
IN Indianapolis Multi-Family Revenue  
Nora Commons LP,  
Series 2004 A, AMT,  
LOC: ABN AMRO Bank N.V.  
3.510% 12/01/39 (a)     7,000,000       7,000,000    
IN Jeffersonville Economic Development Revenue  
Series 2001, AMT,  
LOC: Fifth Third Bank  
3.670% 08/01/21 (a)     2,465,000       2,465,000    
Series 2003, AMT,  
LOC: National City Bank of Kentucky  
3.520% 04/01/23 (a)     4,790,000       4,790,000    

 

    Par ($)   Value ($)  
IN Lagrange Economic Development Revenue  
LA Investments LLC,  
Series 1999, AMT,  
LOC: Bank One Indiana N.A.  
3.700% 08/01/13 (a)     800,000       800,000    
IN Mount Vernon Pollution Control Revenue  
General Electric Co.,  
Series 1998, AMT,  
3.590% 11/01/18 (a)     5,500,000       5,500,000    
IN St. Joseph County Economic Development Revenue  
Pine Oak Apartments LP,  
Series 1997 A, AMT,  
LOC: FHLB  
3.540% 06/01/27 (a)     2,365,000       2,365,000    
IN Transportation Finance Authority  
Highway Revenue,  
Series 2004,  
Insured: FGIC  
3.450% 12/01/14 (a)     5,400,000       5,400,000    
IN Washington County Industrial
Economic Development Revenue		  
Series 2001, AMT,  
LOC: National City Bank of Indiana  
3.520% 08/01/16 (a)     4,195,000       4,195,000    
IN Whiting Environmental Facilities Revenue  
BP Amoco PLC,  
Series 2000, AMT,  
3.650% 07/01/31 (a)     1,000,000       1,000,000    
Indiana Total             210,384,542    
Iowa – 0.7%  
IA Clinton Industrial Development Revenue  
Series 1991, AMT,  
LOC: Northern Trust Co.  
3.530% 09/01/06 (a)     500,000       500,000    
Series 2004,  
LOC: Northern Trust Co.  
3.530% 12/01/22 (a)     4,500,000       4,500,000    
Sethness Products Co.,  
Series 1996, AMT,  
LOC: Northern Trust Co.  
3.530% 09/01/11 (a)     2,500,000       2,500,000    
IA Finance Authority Industrial Development Revenue  
Ramsgate Corp.,  
Series 2002, AMT,  
LOC: U.S. Bank N.A.  
3.520% 12/01/22 (a)     5,550,000       5,550,000    

 

See Accompanying Notes to Financial Statements.

51


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
US Filter Operating Services, Inc.,  
Series 2001 A,  
LOC: Societe Generale  
3.500% 11/01/17 (a)     3,720,000       3,720,000    
IA Finance Authority  
Retirement Community Revenue,  
Deerfield Retirement,  
Series 2003 A,  
LOC: LaSalle Bank N.A.  
3.400% 12/01/33 (a)     15,000,000       15,000,000    
Single Family Mortgage Revenue:  
Series 2002 A-46, AMT,  
3.500% 07/01/24 (a)     5,550,000       5,550,000    
Series 2003 F,  
Insured: GNMA/FNMA,  
LOC: Wells Fargo Bank N.A.  
3.450% 01/01/33 (a)     5,405,000       5,405,000    
Series 2004 B, AMT,  
Insured: GNMA/FNMA,  
SPA: DEPFA Bank PLC  
3.450% 07/01/34 (a)     7,000,000       7,000,000    
Series 2006 F, AMT,  
Insured: GNMA/FNMA,  
LIQ FAC: State Street
Bank & Trust		  
3.770% 07/01/36 (a)     12,000,000       12,000,000    
IA Linn County Industrial Development Revenue  
Swiss Valley Farms Co.,  
Series 2001,  
LOC: Wells Fargo Bank N.A.  
3.500% 05/01/21 (a)     4,500,000       4,500,000    
IA West Burlington Industrial Development Revenue  
Borhi Oil Hydraulic,  
Series 2001 B, AMT,  
LOC: American National
Bank & Trust		  
3.700% 01/01/11 (a)     1,000,000       1,000,000    
Iowa Total             67,225,000    
Kansas – 0.4%  
KS Development Finance Authority  
Exempt Facilities Revenue,  
Seaboard Project,  
Series 1995 A, AMT,  
LOC: Bank of New York  
3.490% 12/01/25 (a)     9,200,000       9,200,000    

 

    Par ($)   Value ($)  
Multi-Family Revenue,  
Delaware Highlands,  
Series 2005 C, AMT,  
LOC: Arvest Bank,  
3.510% 12/01/36 (a)     2,200,000       2,200,000    
KS Fredonia Revenue  
Systech Environmental Corp.,  
Series 1989, AMT,  
LOC: Banque National de Paris  
3.460% 02/01/07 (a)     5,400,000       5,400,000    
KS Sedgwick & Shawnee County  
Single Family Revenue,  
Series 2002,  
3.480% 12/01/14 (a)     765,000       765,000    
KS Wichita City  
OBH, Inc.,  
Series 1999, AMT,  
3.440% 04/01/15 (a)     18,670,000       18,670,000    
Kansas Total             36,235,000    
Kentucky – 1.9%  
KY ABN AMRO Munitops Certificates Trust  
Series 2005,  
Insured: FGIC  
3.340% 05/15/12 (a)     9,995,000       9,995,000    
KY Bardstown  
Linpac Materials Handling,  
Series 2000, AMT,  
LOC: Bank of the West  
3.730% 10/01/19 (a)     4,650,000       4,650,000    
KY Campbellsville-Taylor County
Industrial Development Revenue		  
Airguard Industrial, Inc.,  
Series 2001, AMT,  
LOC: Northern Trust Co.  
3.530% 05/01/31 (a)     7,410,000       7,410,000    
KY Danville Multi City Lease  
3.660% 09/07/06     1,950,000       1,950,000    
KY Daviess County Health Care Revenue  
Wendell Fosters Campus
for Development,		      
Series 2001, AMT,  
LOC: National City Bank  
3.470% 05/01/21 (a)     3,875,000       3,875,000    

 

See Accompanying Notes to Financial Statements.

52


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
KY Daviess County Industrial Building Revenue  
Series 2003, AMT,  
LOC: National Bank of Kentucky  
3.520% 05/01/18 (a)     3,945,000       3,945,000    
KY Glasgow Industrial Building Revenue  
Ply Tech Corp.,  
Series 1994,  
LOC: Fifth Third Bank  
3.510% 05/01/14 (a)     2,040,000       2,040,000    
Series 2006, AMT,  
LOC: Fifth Third Bank  
3.670% 07/01/26 (a)     3,100,000       3,100,000    
KY Greenup County  
Pathways, Inc.,  
Series 2004,  
LOC: Fifth Third Bank  
3.600% 12/01/18 (a)     1,820,000       1,820,000    
KY Hopkinsville  
Series 2006, AMT,  
LOC: Branch Banking & Trust  
3.550% 06/01/26 (a)     3,800,000       3,800,000    
KY Housing Corp.  
Clarksdale Rental I LP,  
Series 2006 A, AMT,  
LOC: PNC Bank Delaware,  
3.490% 06/01/08 (a)     6,725,000       6,725,000    
Single Family Mortgage Revenue,  
Series 2006, AMT,  
SPA: Merrill Lynch Capital Services, Inc.,  
GIC: Trinity Funding Co. LLC  
3.490% 01/01/09 (a)     7,445,000       7,445,000    
KY Jefferson County Industrial Building Revenue  
Dant Growth LLC,  
Series 2002, AMT,  
LOC: Bank One Kentucky N.A.  
3.700% 09/01/22 (a)     3,580,000       3,580,000    
Seven Counties Services, Inc.,  
Series 1996,  
LOC: Bank One of Kentucky N.A.  
3.440% 06/01/11 (a)     650,000       650,000    
KY Jefferson County Industrial Development Revenue  
WHIP-Mix Corp.,  
Series 1997, AMT,  
LOC: National City Bank Kentucky  
3.620% 06/01/12 (a)     710,000       710,000    

 

    Par ($)   Value ($)  
KY Jefferson County Retirement Home Revenue  
Nazareth Library Project,  
Series 1999,  
LOC: Fifth Third Bank  
3.600% 10/01/19 (a)     13,290,000       13,290,000    
KY Kenton County Airport Board  
FlightSafety International, Inc.,  
Series 2001 A, AMT:  
3.440% 06/01/21 (a)     17,900,000       17,900,000    
3.440% 06/01/31 (a)     4,600,000       4,600,000    
KY Kenton County Industrial Building Revenue  
Baptist Convalescent Center,  
Series 1998,  
LOC: Fifth Third Bank  
3.570% 07/01/18 (a)     970,000       970,000    
Series 2002,  
LOC: Fifth Third Bank  
3.670% 04/01/17 (a)     2,740,000       2,740,000    
KY Lexington-Fayette Urban County
Educational Facilities Revenue		  
Series 2003,  
3.600% 05/01/25 (a)     2,390,000       2,390,000    
KY Louisville & Jefferson County Metropolitan Government  
First Trust Restoration Partners,  
Series 2005 A, AMT,  
LOC: Regions Bank  
3.510% 01/01/11 (a)     1,640,000       1,640,000    
KY Louisville & Jefferson County Regional Airport Authority  
United Parcel Service,  
Series 1999 C, AMT,  
3.590% 01/01/29 (a)     30,700,000       30,700,000    
KY Minor Lane Heights Solid Waste Disposal Revenue  
Waste Management Kentucky
LLC Project,		      
Series 2003, AMT,  
LOC: Wachovia Bank N.A.  
3.490% 03/01/21 (a)     6,000,000       6,000,000    
KY Property & Buildings Commission  
Series 2005 A,  
Insured: FSA,  
LIQ FAC: IXIS Municipal Products, Inc.  
3.440% 10/01/19 (a)     14,975,000       14,975,000    
KY Roaring Fork Municipal Products LLC  
Series 2003 Class A, AMT,  
Insured: FSA,  
SPA: Bank of New York  
3.560% 07/01/17 (a)     8,570,000       8,570,000    

 

See Accompanying Notes to Financial Statements.

53


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
KY Rural Economic Development Authority Revenue  
Heaven Hill Project,  
Series 1991, AMT,  
LOC: PNC Bank N.A.  
3.490% 10/01/16 (a)     2,000,000       2,000,000    
KY Shelby Industrial Building Revenue  
Shelby Trust Co., Inc.,  
Series 1998, AMT,  
LOC: Fifth Third Bank  
3.510% 06/01/18 (a)     2,230,000       2,230,000    
KY West Buechel Industrial Building Revenue  
Berby Fabricating LLC Project,  
Series 2004, AMT,  
LOC: Fifth Third Bank  
3.670% 06/01/24 (a)     2,100,000       2,100,000    
Kentucky Total             171,800,000    
Louisiana – 1.1%  
LA Calcasieu Parish, Inc. Industrial Development Board  
Citgo Petroleum Corp.:  
Series 1994, AMT,  
LOC: BNP Paribas  
3.650% 12/01/24 (a)     10,400,000       10,400,000    
Series 1996, AMT,  
LOC: Natexis Banque Populair  
3.650% 07/01/26 (a)     33,400,000       33,400,000    
Hydroserve Westlake Project,  
Series 1999, AMT,  
LOC: Bank One Chicago N.A.  
3.560% 12/01/24 (a)     5,100,000       5,100,000    
LA Denham Springs-Livingston
Housing & Mortgage Finance Authority		  
Series 2004 A,  
3.720% 12/01/07 (a)     4,000,000       4,000,000    
LA Local Government Environmental
Facilities & Community Development Authority		  
Academy of Sacred Heart,  
Series 2004,  
LOC: Whitney National Bank,  
LOC: SunTrust Bank  
3.460% 01/01/24 (a)     4,000,000       4,000,000    
LA Offshore Terminal Authority  
Loop LLC,  
Series 2003 A,  
LOC: SunTrust Bank  
3.570% 09/01/14 (a)     4,500,000       4,500,000    

 

    Par ($)   Value ($)  
LA Parish of East Baton Rouge  
Exxon Mobil Corp.,  
Series 1989,  
3.500% 11/01/19 (a)     22,000,000       22,000,000    
LA State  
Series 2005 MT-158,  
Insured: AMBAC,  
LIQ FAC: BNP Paribas  
3.140% 10/15/18 (a)(b)     20,920,000       20,920,000    
Louisiana Total             104,320,000    
Maine – 0.0%  
ME Housing Authority  
General Housing Revenue,  
Series 2005, AMT,  
LIQ FAC: Landesbank
Hessen-Thuringen		  
3.490% 12/01/10 (a)     2,800,000       2,800,000    
Maine Total             2,800,000    
Maryland – 1.0%  
MD Carroll County Commissioners
Economic Development Revenue		  
Shelter System Limited Facility,  
Series 2004, AMT,  
LOC: Branch & Banking Trust  
3.550% 07/01/24 (a)     5,150,000       5,150,000    
MD Community Development Administration Department
Housing & Community Development		  
Fort Washington Manor LP,  
Series 2005 A, AMT,  
LOC: Citibank N.A.  
3.520% 11/15/38 (a)     10,000,000       10,000,000    
Series 2004 F, AMT,  
SPA: Lloyds TSB Bank PLC  
3.430% 09/01/35 (a)     6,750,000       6,750,000    
Series 2005 G, AMT,  
3.200% 11/24/06     23,205,000       23,205,000    
Series 2006 N, AMT,  
3.720% 09/12/07     21,000,000       21,000,000    
Series 2006, AMT,  
LIQ FAC: Landesbank
Hessen-Thuringen		  
3.490% 10/01/39 (a)     8,345,000       8,345,000    
MD Montgomery County Housing
Opportunites Commission		  
Series 2006, AMT,  
SPA: Danske Bank  
3.510% 02/01/40 (a)     11,985,000       11,985,000    
Maryland Total             86,435,000    

 

See Accompanying Notes to Financial Statements.

54


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

Massachusetts – 0.4%  
    Par ($)   Value ($)  
MA Development Finance Agency  
Boston University,  
Series 2002 R-4,  
Insured: XLCA,  
SPA: Societe Generale  
3.540% 10/01/42 (a)     12,600,000       12,600,000    
MA Health & Educational Facilities Authority  
Partners Healthcare Systems,  
Series 2003 D-6,  
3.570% 07/01/17 (a)     6,000,000       6,000,000    
MA State  
Series 2006 A,  
SPA: Dexia Credit Local  
3.500% 03/01/26 (a)     15,300,000       15,300,000    
Massachusetts Total             33,900,000    
Michigan – 5.4%  
MI Detroit School District  
Series 2006,  
4.500% 08/21/07     57,000,000       57,474,908    
MI Detroit Water Supply Systems  
Series 2001 C,  
Insured: FGIC,  
SPA: DEPFA Bank PLC  
3.400% 07/01/29 (a)     66,445,000       66,445,000    
MI Housing Development Authority  
Multi-Family Revenue,  
Canterbury Project,  
Series 2003 A, AMT,  
LOC: LaSalle Bank  
3.500% 06/01/38 (a)     9,500,000       9,500,000    
Series 2006 B, AMT,  
SPA: DEPFA Bank PLC  
3.520% 06/01/30 (a)     20,000,000       20,000,000    
Series 2006 C, AMT,  
Insured: FSA,  
SPA: Fortis Bank SA  
3.630% 04/01/41 (a)     25,220,000       25,220,000    
Series 2006 R, AMT,  
Insured: FSA,  
SPA: Merrill Lynch
Capital Services		  
3.480% 10/01/42 (a)     5,250,000       5,250,000    

 

    Par ($)   Value ($)  
Series 2006, AMT,  
Insured: FSA,  
SPA: Merrill Lynch
Capital Services		  
3.480% 10/01/42 (a)     8,125,000       8,125,000    
Single Family Mortgage Revenue,  
Series 2005 B, AMT:  
LOC: DEPFA Bank PLC  
3.520% 06/01/30 (a)     20,870,000       20,870,000    
SPA: DEPFA Bank PLC  
3.520% 12/01/25 (a)     13,635,000       13,635,000    
MI Municipal Bond Authority  
Series 2006 B-1,  
4.500% 08/20/07     29,340,000       29,564,355    
MI Roaring Fork Municipal Products LLC  
Series 2003, AMT,  
Insured: AMBAC,  
SPA: Bank of New York  
3.560% 03/01/24 (a)     10,035,000       10,035,000    
Series 2006, AMT,  
Insured: AMBAC,  
SPA: Bank of New York  
3.530% 03/01/31 (a)     8,748,000       8,748,000    
MI Strategic Fund Ltd.  
American Autocoat, Inc.,  
Series 2002, AMT,  
LOC: Fifth Third Bank  
3.670% 10/01/22 (a)     5,970,000       5,970,000    
B & C Leasing LLC,  
Series 1999, AMT,  
LOC: LaSalle Bank N.A.  
3.500% 07/01/24 (a)     2,500,000       2,500,000    
Erin Flint Properties LLC,  
Series 2006, AMT,  
LOC: Fifth Third Bank  
3.670% 07/01/26 (a)     4,160,000       4,160,000    
Home, Inc.,  
Series 2002, AMT,  
LOC: Fifth Third Bank  
3.670% 11/01/22 (a)     2,010,000       2,010,000    
LRV Enterprises LLC,  
Series 1996, AMT,  
LOC: National City Bank  
3.620% 09/01/21 (a)     575,000       575,000    
Michigan Turkey Producers,  
Series 2000 A, AMT,  
LOC: Fifth Third Bank  
3.510% 05/01/15 (a)     1,600,000       1,600,000    

 

See Accompanying Notes to Financial Statements.

55


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 1999, AMT,  
LOC: National City Bank  
3.570% 06/01/24 (a)     1,110,000       1,110,000    
Series 2000, AMT,  
LOC: KeyBank N.A.  
3.550% 07/01/20 (a)     2,130,000       2,130,000    
Series 2003, AMT:  
LOC: Fifth Third Bank  
3.670% 08/01/23 (a)     955,000       955,000    
LOC: National City Bank  
3.520% 12/01/28 (a)     3,005,000       3,005,000    
MI Strategic Fund Solid Waste Disposal Revenue  
Grayling Generating,  
Series 1990, AMT,  
LOC: Barclays Bank of
New York		  
3.450% 01/01/14 (a)     900,000       900,000    
MI Wayne Charter County Airport Authority  
Series 2002 A, AMT,  
Insured: FGIC  
3.460% 12/01/32 (a)     140,320,000       140,320,000    
MI Wayne County Airport Authority  
Series 2005 MT-115,  
Insured: MBIA,  
LIQ FAC: Svenska
Handelsbank		  
3.490% 12/01/17 (a)     18,140,000       18,140,000    
Series 2005 PT-2667, AMT,  
Insured: MBIA,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.490% 12/01/23 (a)     18,330,000       18,330,000    
Series 2005, AMT,  
Insured: MBIA,  
LIQ FAC: Citibank N.A.  
3.490% 12/01/34 (a)     6,600,000       6,600,000    
Series 2006, AMT,  
Insured: MBIA,  
LIQ FAC: Citibank N.A.  
3.490% 12/01/29 (a)     5,900,000       5,900,000    
Michigan Total             489,072,263    
Minnesota – 1.0%  
MN Eden Prairie Industrial Development Revenue  
SWB LLC,  
Series 2000 A, AMT,  
LOC: U.S. Bank N.A.  
3.620% 11/01/20 (a)     2,035,000       2,035,000    

 

    Par ($)   Value ($)  
MN Higher Education Facilities Authority Revenue  
Hamline University,  
Series 2005 6-E1,  
LOC: Harris Bank N.A.  
3.430% 10/01/16 (a)     3,900,000       3,900,000    
MN Housing Finance Agency  
Residential Housing Revenue:  
Series 2005 I, AMT,  
SPA: Lloyds TSB Bank PLC  
3.450% 01/01/36 (a)     39,560,000       39,560,000    
Series 2006 C, AMT,  
SPA: State Street Bank &
Trust Co.		  
3.450% 01/01/37 (a)     11,735,000       11,735,000    
MN Minneapolis Multi-Family Housing Revenue  
Driftwood Apartments,  
Series 2002, AMT,  
LOC: U.S. Bank  
3.520% 10/01/24 (a)     2,000,000       2,000,000    
Gateway Real Estate,  
Series 2002, AMT,  
LOC: LaSalle Bank N.A.  
3.470% 10/01/32 (a)     3,000,000       3,000,000    
MN Minneapolis St. Paul
Metropolitan Airports Commission		  
Airport Revenue:  
Series 2004, AMT,  
Insured: FGIC  
3.490% 09/03/09 (a)     11,670,000       11,670,000    
Series 2005 PT-2834, AMT,  
Insured: AMBAC,  
LOC: Merrill Lynch
Capital Services		  
3.590% 01/01/14 (a)(b)     2,545,000       2,545,000    
MN Springfield Industrial Development Revenue  
OCHS Brick Co.,  
Series 2001, AMT,  
LOC: Wells Fargo Bank N.A.  
3.510% 05/01/16 (a)     4,110,000       4,110,000    
MN St. Paul Port Authority
Industrial Development Revenue		  
Camada LP,  
Series 2005, AMT,  
LOC: Wells Fargo Bank N.A.  
3.500% 12/01/12 (a)     3,400,000       3,400,000    

 

See Accompanying Notes to Financial Statements.

56


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
MN Washington County Housing &
Redevelopment Authority		  
Multi-Family Revenue,  
Series 2005 MT-154,  
LOC: FHLMC  
3.480% 12/31/25 (a)     7,000,000       7,000,000    
Minnesota Total             90,955,000    
Mississippi – 0.1%  
MS Business Finance Corp.  
Hamlin Sheet Metal Co., Inc.:  
Series 2005 A, AMT,  
LOC: Branch Banking & Trust Co.  
3.550% 03/01/15 (a)     1,590,000       1,590,000    
Series 2005, AMT,  
LOC: Branch Banking & Trust Co.  
3.550% 03/01/25 (a)     2,235,000       2,235,000    
Jackson Academy LLC,  
Series 2005,  
LOC: AmSouth Bank  
3.440% 08/01/25 (a)     7,170,000       7,170,000    
Mississippi Total             10,995,000    
Missouri – 1.2%  
MO ABN AMRO Munitops Certificate Trust  
Series 2006,  
Insured: FSA,  
SPA: ABN AMBRO Bank N.V.  
3.620% 03/01/14 (a)     12,995,000       12,995,000    
MO Development Finance Board Facilities Revenue  
St. Louis Air Project,  
Series 2000, AMT,  
LOC: National Bank & Trust  
3.470% 03/01/30 (a)     1,500,000       1,500,000    
MO Higher Education Loan Authority
Student Loan Revenue		  
Series 1991 B, AMT,  
Insured: MBIA  
3.470% 03/01/20 (a)     28,400,000       28,400,000    
MO Industrial Development Authority  
Multi-Family Housing Revenue,  
Crook Creek Apartments II:  
Series 2004 A, AMT,  
LOC: LaSalle National Bank  
3.500% 09/01/39 (a)     5,600,000       5,600,000    

 

    Par ($)   Value ($)  
Series 2004 B, AMT,  
LOC: FHLB  
3.540% 09/01/39 (a)     750,000       750,000    
MO Mountain Grove Industrial Development Authority  
Health Care Facility Revenue,  
Mountain Grove #1, Inc.,  
Series 1997, AMT,  
LOC: Wachovia Bank  
3.500% 11/01/13 (a)     1,830,000       1,830,000    
MO Nodaway Industrial Development Authority  
Educational Facilities Revenue,  
Northwest Foundation, Inc.,  
Series 2002,  
LOC: U.S. Bank N.A.  
3.470% 11/01/32 (a)     3,990,000       3,990,000    
MO SCA Tax Exempt Trust  
Series 2005 PT-2525,  
Insured: FSA,  
LOC: Merrill Lynch Capital Services  
3.460% 01/01/30 (a)     8,715,000       8,715,000    
MO St. Louis Industrial Development Authority  
General Grant Apartments,  
Series 2003, AMT,  
LOC: U.S. Bank N.A.  
3.540% 03/01/38 (a)     19,730,000       19,730,000    
Multi-Family Housing Revenue:  
Metro Lofts Apartments,  
Series 2003 A, AMT,  
Insured: FNMA  
3.480% 03/15/36 (a)     13,250,000       13,250,000    
Series 2006, AMT,  
LIQ FAC: Merrill Lynch Capital Services  
3.540% 12/01/45 (a)     7,075,000       7,075,000    
United States Tape & Label Corp.,  
Series 1999, AMT,  
LOC: LaSalle Bank N.A.  
3.500% 08/01/19 (a)     2,300,000       2,300,000    
MO Wright City Industrial Revenue  
Series 2002, AMT,  
LOC: LaSalle Bank N.A.  
3.450% 04/01/32 (a)     2,000,000       2,000,000    
Missouri Total             108,135,000    

 

See Accompanying Notes to Financial Statements.

57


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

Montana – 0.5%  
    Par ($)   Value ($)  
MT Board Investment Resource Recovery Revenue  
Colstrip Energy LP,  
Series 1989, AMT,  
LOC: Union Bank of
California, N.A.		  
3.550% 12/30/15 (a)     41,150,000       41,150,000    
Montana Total             41,150,000    
Nebraska – 0.4%  
NE Educational Finance Authority  
Creighton University,  
Series 2005 C,  
Insured: FGIC,  
SPA: JPMorgan Chase Bank  
3.570% 07/01/35 (a)     12,650,000       12,650,000    
NE Investment Finance Authority  
Single Family Housing Revenue,  
Series 2005 D, AMT,  
SPA: FHLB  
3.490% 09/01/35 (a)     23,000,000       23,000,000    
NE Lancaster County Industrial Development Revenue  
MLLC LLC,  
Series 2000 A, AMT,  
LOC: Wells Fargo Bank N.A.  
3.510% 11/01/20 (a)     4,790,000       4,790,000    
Nebraska Total             40,440,000    
Nevada – 0.8%  
NV Clark County Airport Revenue  
Series 2004, AMT,  
Insured: FGIC  
3.480% 07/01/22 (a)     5,020,000       5,020,000    
Series 2005 E-2,  
Insured: FGIC,  
LOC: Bayerische Landesbank  
3.480% 07/01/36 (a)     8,795,000       8,795,000    
Series 2005,  
Insured: AMBAC,  
SPA: Deutsche Bank A.G.  
3.450% 07/01/40 (a)     3,435,000       3,435,000    
NV Clark County Industrial Development Revenue  
Series 2005,  
Insured: FGIC  
3.480% 12/01/12 (a)     2,495,000       2,495,000    

 

    Par ($)   Value ($)  
NV Clark County School District  
Series 2001 A,  
Insured: FSA,  
SPA: State Street Bank &
Trust Co.		  
3.500% 06/15/21 (a)     4,070,000       4,070,000    
NV Director of the State Department of
Business & Industry Pollution Control Revenue		  
Barrick Gold Corp.,  
Series 1999, AMT,  
LOC: Royal Bank of Canada  
3.450% 06/01/29 (a)     11,500,000       11,500,000    
NV Housing Division  
Sonoma Palms LP,  
Series 2005, AMT,  
Insured: FNMA  
3.450% 04/15/39 (a)     16,300,000       16,300,000    
NV Las Vegas  
Series 2006 C,  
LOC: Lloyds TSB Bank PLC  
3.560% 06/01/36 (a)     22,900,000       22,900,000    
Nevada Total             74,515,000    
New Hampshire – 0.0%  
NH Business Finance Authority Exempt Facilities Revenue  
Waste Management of New
Hampshire, Inc. Project,		      
Series 2000, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 09/01/12 (a)     3,500,000       3,500,000    
New Hampshire Total             3,500,000    
New Jersey – 0.3%  
NJ State  
Series 2005,  
Insured: AMBAC,  
SPA: Dexia Credit Local  
3.680% 07/15/19 (a)     23,910,000       23,910,000    
New Jersey Total             23,910,000    
New Mexico – 0.3%  
NM Finance Authority  
State Transition Revenue,  
Series 2004,  
3.450% 06/15/23 (a)     5,190,000       5,190,000    

 

See Accompanying Notes to Financial Statements.

58


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
NM Mortgage Finance Authority  
Series 2006, AMT,  
GIC: Trinity Funding Co. LLC  
4.580% 03/01/41 (a)     18,096,010       18,096,010    
New Mexico Total             23,286,010    
New York – 4.6%  
NY ABN AMRO Munitops Certificates Trust  
Series 2004,  
Insured: PSFG  
3.350% 02/01/11 (a)     8,960,000       8,960,000    
NY Energy Research & Development Authority  
Consolidated Edison Co.,  
Series 2004 C-2, AMT,  
LOC: Citibank N.A.  
3.470% 11/01/39 (a)     5,500,000       5,500,000    
NY Housing Finance Agency  
17th & 10th Associates,  
Series 2006 A, AMT,  
LOC: Landesbank
Baden-Wurttemberg		  
3.420% 11/01/39 (a)     94,000,000       93,999,116    
NY Jay Street Development Corp.  
Series 2001 A-2,  
LOC: DEPFA Bank PLC  
3.510% 05/01/20 (a)     7,000,000       7,000,000    
NY Metropolitan Transportation Authority  
Series 2005 G,  
LOC: BNP Paribas  
3.570% 11/01/26 (a)     25,480,000       25,480,000    
Series 2006 A,  
Insured: AMBAC,  
LIQ FAC: Citibank N.A.  
3.670% 11/15/30 (a)     10,000,000       10,000,000    
NY New York City Housing Development Corp.  
Clinton 54 LLC,  
Series 2002 A, AMT,  
Insured: FNMA  
3.420% 08/15/32 (a)     6,800,000       6,800,000    
Series 1999 A, AMT,  
Insured: FNMA  
3.420% 04/15/29 (a)     26,800,000       26,800,000    
Series 2004 A, AMT,  
Insured: FNMA  
3.420% 05/15/34 (a)     47,585,000       47,585,000    

 

    Par ($)   Value ($)  
NY New York City Municipal Water Finance Authority  
Series 2000 C,  
SPA: Dexia Credit Local  
3.540% 06/15/33 (a)     5,500,000       5,500,000    
Series 2005 AA-1,  
3.590% 06/15/32 (a)     49,700,000       49,700,000    
Series 2005 Class A,  
Insured: FSA,  
LIQ FAC: Citibank N.A.  
3.670% 06/15/36 (a)     16,495,000       16,495,000    
NY New York City Transitional Finance Authority  
Series 2001 B,  
SPA: Landesbank
Baden-Wurttemberg		  
3.540% 02/01/31 (a)     36,325,000       36,325,000    
NY New York City  
Series 1994 B,  
Insured: MBIA,  
LOC: Landesbank
Hessen-Thuringen		  
3.560% 08/15/23 (a)     4,700,000       4,700,000    
Series 2001 A-6,  
Insured: FSA,  
SPA: Dexia Credit Local  
3.540% 11/01/26 (a)     15,520,000       15,520,000    
Series 2004 -H1,  
LOC: Bank of New York  
3.540% 03/01/34 (a)     23,380,000       23,380,000    
Series 2006 -H2,  
LOC: Dexia Credit Local  
3.560% 01/01/36 (a)     24,550,000       24,550,000    
NY Port Authority of New York & New Jersey  
3.620% 09/06/06     9,195,000       9,195,000    
Series 2003, AMT,  
Insured: AMBAC,  
LIQ FAC: Citibank N.A.  
3.470% 12/15/32 (a)     3,245,000       3,245,000    
NY Triborough Bridge & Tunnel Authority  
Series 1997,  
5.000% 01/01/07     3,830,000       3,841,001    
New York Total             424,575,117    
North Carolina – 1.3%  
NC Agriculture Finance Authority Development Revenue  
McGill Environment System,  
Series 2003, AMT,  
LOC: Branch Bank & Trust  
3.550% 12/01/15 (a)     3,000,000       3,000,000    

 

See Accompanying Notes to Financial Statements.

59


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
NC Burke Industrial Facility Pollution Control Revenue  
Cox Manufacturing Co.,  
Series 2003, AMT,  
LOC: Branch Banking & Trust  
3.550% 06/01/24 (a)     1,635,000       1,635,000    
NC Catawba County Industrial
Facilities & Pollution Control		  
Von Drehle Properties LLC,  
Series 2001, AMT,  
LOC: Branch Banking & Trust  
3.550% 12/01/21 (a)     2,870,000       2,870,000    
NC Charlotte Airport Revenue  
Series 1997 A, AMT,  
Insured: MBIA,  
SPA: JPMorgan Chase Bank  
3.460% 07/01/17 (a)     13,405,000       13,405,000    
NC Davidson County Industrial Pollution Control Revenue  
Childress Winery LLC,  
Series 2004, AMT,  
3.550% 04/01/26 (a)     5,000,000       5,000,000    
NC Education Assistance Authority  
Series 2005 A-2, AMT,  
Insured: AMBAC,  
LOC: Branch Banking & Trust  
3.480% 09/01/35 (a)     70,000,000       70,000,000    
NC Guilford County Industrial Facilities &
Pollution Control Financing Authority		  
Quantum Group, Inc.,  
Series 2000, AMT,  
LOC: Regions Bank  
3.460% 06/01/20 (a)     2,070,000       2,070,000    
NC Guilford County Multi-Family Housing Revenue  
Brentwood Crossings Apartments,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.460% 12/01/35 (a)     5,140,000       5,140,000    
NC Iredell County Industrial Facilities &
Pollution Control Financing Authority		  
Sullivan Corp. Project,  
Series 1996, AMT,  
LOC: Bank One Milwaukee N.A.  
3.700% 01/01/11 (a)     1,280,000       1,280,000    
NC Johnston County Industrial Facilities &
Pollution Control Finance Authority		  
Autry Mills,  
Series 1999, AMT,  
LOC: Branch Banking & Trust  
3.550% 02/01/13 (a)     3,595,000       3,595,000    

 

    Par ($)   Value ($)  
Hamlin Sheet Metal Co.,  
Series 1997, AMT,  
LOC: Branch Banking & Trust  
3.550% 11/01/17 (a)     1,900,000       1,900,000    
NC Mecklenburg County Multi-Family Housing Revenue  
Barrington Oaks LLC,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.510% 09/01/35 (a)     4,640,000       4,640,000    
NC Port Authority Exempt Facilities Revenue  
Wilmington Bulk LLC,  
Series 2001 A, AMT,  
LOC: Branch Banking & Trust  
3.550% 09/01/22 (a)     2,500,000       2,500,000    
NC Rowan County Industrial Facilities
Pollution Control Financing Authority		  
PHC LLC Project,  
Series 1999, AMT,  
LOC: Branch Banking & Trust  
3.550% 03/01/14 (a)     3,590,000       3,590,000    
North Carolina Total             120,625,000    
North Dakota – 0.1%  
ND Housing Finance Agency Revenue  
Series 2002 B, AMT,  
Insured: FSA,  
SPA: FHLMC  
3.470% 01/01/34 (a)     10,600,000       10,600,000    
North Dakota Total             10,600,000    
Ohio – 1.9%  
OH Akron Metropolitan Housing Authority  
Series 1998,  
LOC: Fifth Third Bank  
3.440% 04/01/18 (a)     4,545,000       4,545,000    
OH Centerville Care Revenue  
Series 1994,  
LOC: National City Bank  
3.440% 11/01/13 (a)     835,000       835,000    
OH Cleveland Cuyahoga County Port Authority  
Cleveland Museum of Art,  
Series 2005 B,  
SPA: JPMorgan Chase Bank  
3.400% 10/01/40 (a)     10,000,000       10,000,000    

 

See Accompanying Notes to Financial Statements.

60


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
OH Columbus Regional Airport Authority  
Series 2004 A,  
LOC: U.S. Bank Trust, N.A.  
3.430% 01/01/30 (a)     8,900,000       8,900,000    
Series 2006, AMT,  
SPA: Merrill Lynch Capital Services  
3.540% 03/15/36 (a)     11,705,000       11,705,000    
OH Cuyahoga County Health Care Facilities Revenue  
Series 2005,  
LOC: KeyBank N.A.  
3.440% 08/01/32 (a)     19,630,000       19,630,000    
OH Franklin County Multi-Family Housing Revenue,  
Series 2005, AMT,  
LOC: Fifth Third Bank  
3.670% 08/01/35 (a)     3,700,000       3,700,000    
OH Greene County Industrial Development Revenue  
Series 1995, AMT,  
LOC: KeyBank N.A.  
3.550% 09/01/16 (a)     240,000       240,000    
OH Hamilton County Health Care Facilities Revenue  
Talbert Services, Inc.,  
Series 2002,  
LOC: Fifth Third Bank  
3.600% 07/01/27 (a)     4,075,000       4,075,000    
OH Hancock County Industrial Development Revenue  
Koehler Brothers, Inc.,  
Series 1999, AMT,  
LOC: National City Bank  
3.550% 06/01/14 (a)     1,035,000       1,035,000    
OH Hancock County Multi-Family Revenue  
Pedcor Investments,  
Series 1998 B, AMT,  
LOC: FHLB  
3.600% 01/01/31 (a)     730,000       730,000    
OH Housing Finance Agency  
Series 2003 C, AMT,  
Insured: GNMA,  
SPA: FHLB  
3.480% 09/01/34 (a)     6,235,000       6,235,000    
Series 2005, AMT  
Insured: FHA,  
SPA: FHLB  
3.480% 09/01/35 (a)     24,500,000       24,500,000    
OH Industrial Development Revenue  
Series 1994, AMT,  
LOC: Fifth Third Bank  
3.570% 09/01/09 (a)     1,045,000       1,045,000    

 

    Par ($)   Value ($)  
OH Lucas County Industrial Development Revenue  
Series 1997,  
3.620% 07/01/09 (a)     695,000       695,000    
OH Mahoning County Hospital Facilities Revenue  
Forum Health Obligation Group,  
Series 1997 B,  
Insured: MBIA,  
SPA: JPMorgan Chase Bank  
3.420% 12/01/28 (a)     13,000,000       13,000,000    
OH Medina Industrial Development Revenue  
Series 2003 A, AMT,  
LOC: Fifth Third Bank  
3.670% 09/01/23 (a)     1,375,000       1,375,000    
OH Muskingham Watershed Conservancy District  
Series 2003,  
LOC: Fifth Third Bank  
3.600% 05/01/23 (a)     2,900,000       2,900,000    
OH Summit County Industrial Development Revenue  
Quality Mold, Inc.,  
Series 1999, AMT,  
LOC: KeyBank N.A.  
3.550% 06/01/19 (a)     2,530,000       2,530,000    
OH Toledo Lucas County Port Authority Airport
Development Revenue		  
Flight Safety International,
Inc., Project,		  
Series 1998-1, AMT,  
3.440% 01/01/18 (a)     15,800,000       15,800,000    
OH University of Toledo  
Series 2002,  
Insured: FGIC,  
SPA: U.S. Bank N.A.  
3.570% 06/01/32 (a)     25,700,000       25,700,000    
OH Water Development Authority  
Firstenergy Nuclear Generation,  
Series 2006 A, AMT,  
LOC: Barclays Bank PLC  
3.480% 06/15/33 (a)     10,000,000       10,000,000    
OH Wood County Industrial Development Revenue  
Series 2001, AMT,  
LOC: Fifth Third Bank  
3.670% 09/01/16 (a)     1,395,000       1,395,000    
Ohio Total             170,570,000    

 

See Accompanying Notes to Financial Statements.

61


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

Oklahoma – 2.2%  
    Par ($)   Value ($)  
OK Claremore Industrial & Redevelopment Industrial
Development Authority Revenue		  
Whirlwind Steel Buildings
Project,		  
Series 2001, AMT,  
LOC: Chase Manhattan Bank  
3.700% 09/01/16 (a)     1,660,000       1,660,000    
OK Development Finance Authority Revenue  
Series 1997, AMT,  
LOC: Bank of New York  
3.490% 03/01/27 (a)     8,800,000       8,800,000    
OK Housing Finance Agency Single Family Revenue  
Series 2001 PT-1288, AMT,  
SPA: Merrill Lynch Capital
Services		  
3.480% 01/01/09 (a)     925,000       925,000    
OK Industrial Authority Economic Development Revenue  
Series 2003, AMT,  
LOC: Fifth Third Bank  
3.670% 10/01/23 (a)     1,890,000       1,890,000    
OK Morgan Keegan Municipal Products, Inc.  
Series 2005 D, AMT,  
SPA: BNP Paibas  
3.640% 02/01/10 (a)     14,070,000       14,070,000    
OK Pittsburg County Economic Development Authority  
Simonton Building
Products, Inc.,		  
Series 2001, AMT,  
LOC: PNC Bank N.A.  
3.510% 10/01/21 (a)     5,000,000       5,000,000    
OK Turnpike Authority  
Series 2006 C,  
Insured: XLCA  
3.400% 01/01/28 (a)     96,160,000       96,160,000    
Series 2006 E,  
Insured: XLCA  
3.390% 01/01/28 (a)     27,000,000       27,000,000    
Series 2006 SR,  
Insured: XLCA  
3.390% 01/01/28 (a)     43,000,000       43,000,000    
Oklahoma Total             198,505,000    

 

Oregon – 1.7%  
    Par ($)   Value ($)  
OR Economic Development Revenue  
KRC Western, Inc.,  
Series 1997 178, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 01/01/17 (a)     7,650,000       7,650,000    
LD McFarland Cascade Co. Ltd.,  
Series 1996, AMT,  
LOC: U.S. Bank of Washington  
3.520% 11/01/16 (a)     1,000,000       1,000,000    
OR Homeowner Revenue  
Series 2006, AMT,  
SPA: Merrill Lynch Capital
Services, Inc.,		  
GIC: Trinity Funding Co. LLC  
3.490% 05/01/10 (a)     91,765,000       91,765,000    
OR Housing & Community Services Departmente  
Series 2006 F, AMT,  
SPA: State Street Bank &
Trust Co.		  
3.450% 07/01/37 (a)     6,700,000       6,700,000    
OR Port Portland Special Obligation Revenue  
Portland Bulk Terminal,  
Series 2006, AMT,  
LOC: Canadian Imperial
Bank of Commerce		  
3.460% 03/01/36 (a)     38,300,000       38,300,000    
OR Roaring Fork Municipal Products LLC  
Series 2003 A, AMT  
Insured: FGIC,  
SPA: Bank of New York  
3.560% 07/01/15 (a)     7,760,000       7,760,000    
Oregon Total             153,175,000    
Pennsylvania – 4.8%  
PA ABN AMRO Munitops Certificates Trust  
Series 2005,  
Insured: FGIC  
3.340% 11/15/12 (a)     10,130,000       10,130,000    
PA Authority for Industrial Development  
Goldenberg Candy Co.,  
Series 1997, AMT,  
LOC: Wachovia Bank N.A.  
3.560% 01/01/13 (a)     2,030,000       2,030,000    

 

See Accompanying Notes to Financial Statements.

62


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
PA Chester County Health & Education Facilities Authority  
Simpson Meadows,  
Series 2000,  
LOC: Wachovia Bank N.A.  
3.420% 10/01/30 (a)     7,945,000       7,945,000    
PA Delaware County Industrial Development Authority  
United Parcel Service,  
Series 1985,  
3.540% 12/01/15 (a)     21,900,000       21,900,000    
PA Economic Development Financing Authority  
Series 2004,  
3.480% 11/01/21 (a)     3,000,000       3,000,000    
Series 2005 R-394,  
Insured: AMBAC,  
LOC: Citibank N.A.  
3.470% 12/01/18 (a)     2,495,000       2,495,000    
PA Elk County Industrial Development Authority Revenue  
Clarion Sintered Metals,  
Series 1998, AMT,  
LOC: PNC Bank N.A.  
3.530% 03/01/09 (a)     930,000       930,000    
PA Emmaus General Authority  
Series 1989 F,  
LOC: DEPFA Bank PLC  
3.430% 03/01/24 (a)     23,600,000       23,600,000    
Series 1989,  
LOC: DEPFA Bank PLC:  
3.430% 03/01/24 (a)     12,700,000       12,700,000    
3.430% 03/01/24 (a)     15,200,000       15,200,000    
3.430% 03/01/24 (a)     22,800,000       22,800,000    
PA Gas Works Revenue  
3.570% 09/01/06     45,000,000       45,000,000    
PA Grove City Area Hospital Authority  
Grove Manor,  
Series 2005,  
LOC: Fifth Third Bank  
3.460% 12/01/29 (a)     9,775,000       9,775,000    
PA Higher Education Assistance Agency  
Series 1995 A,  
Insured: AMBAC,  
SPA: Morgan Stanley Bank  
3.480% 12/01/25 (a)     123,500,000       123,500,000    
PA Housing Finance Agency  
Series 2005 87-B, AMT,  
SPA: DEPFA Bank PLC  
3.450% 04/01/35 (a)     300,000       300,000    

 

    Par ($)   Value ($)  
Series 2005 91-B, AMT,  
SPA: DEPFA Bank PLC  
3.420% 10/01/36 (a)     70,000,000       70,000,000    
Series 2006 94-B, AMT,  
SPA: Dexia Credit Local  
3.420% 04/01/27 (a)     22,165,000       22,165,000    
PA Lehigh County General Purpose Authority  
Series 2003,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital Services  
3.440% 07/01/18 (a)     11,000,000       11,000,000    
PA Moon Industrial Development Authority  
One Thorn Run Associates,  
Series 1995 A, AMT,  
LOC: National City Bank  
3.520% 11/01/15 (a)     5,030,000       5,030,000    
PA Philadelphia Redevelopment Authority  
Series 2005, AMT,  
Insured: FGIC  
3.460% 04/15/24 (a)     10,240,000       10,240,000    
PA South Fork Municipal Authority  
Conemaugh Valley Memorial
Hospital,		      
Series 1998 A,  
Insured: MBIA,  
LIQ FAC: PNC Bank N.A.  
3.560% 07/01/28 (a)     12,000,000       12,000,000    
PA Westmoreland County Industrial Development Authority  
Rhodin Enterprises,  
Series 1997, AMT,  
LOC: National City Bank N.A.  
3.560% 04/01/17 (a)     2,890,000       2,890,000    
Series 1998 A, AMT,  
LOC: National City Bank N.A.  
3.520% 10/01/13 (a)     2,505,000       2,505,000    
Pennsylvania Total             437,135,000    
South Carolina – 1.4%  
SC Housing Finance & Development Authority  
Arrington Place Apartment LP,  
Series 2001, AMT,  
LOC: SunTrust Bank  
3.510% 12/01/33 (a)     1,295,000       1,295,000    
Improvement Bayside
Apartments,		      
LOC: Wachovia Bank N.A.  
3.460% 07/15/39 (a)     17,250,000       17,250,000    

 

See Accompanying Notes to Financial Statements.

63


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Oakfield Ltd. Co.,  
Series 2004, AMT,  
LOC: National Bank of South Carolina  
3.560% 10/01/25 (a)     2,740,000       2,740,000    
Series 2005 R-398,  
Insured: FSA,  
LIQ FAC: Citibank N.A.  
3.480% 07/01/34 (a)     2,080,000       2,080,000    
Series 2006 B, AMT,  
Insured: AMBAC,  
3.900% 07/23/07     13,090,000       13,090,000    
Series 2006-1388, AMT,  
Insured: AMBAC,  
LIQ FAC: JPMorgan Chase Bank  
3.480% 07/01/10 (a)     5,320,000       5,320,000    
Spring Groven LP,  
Series 2000,  
LOC: SunTrust Bank  
3.460% 12/01/34 (a)     7,325,000       7,325,000    
SC Jobs Economic Development Authority  
Abraham Industries LLC,  
Series 1999, AMT,  
LOC: PNC Bank N.A.  
3.530% 05/01/14 (a)     4,550,000       4,550,000    
Banks Construction Co.,  
Series 1999, AMT,  
LOC: Wachovia Bank of North Carolina  
3.510% 05/01/09 (a)     1,100,000       1,100,000    
Imagepoint, Inc.,  
Series 2005, AMT,  
LOC: Wachovia Bank N.A.  
3.510% 12/01/23 (a)     3,910,000       3,910,000    
Kravet Fabrics, Inc.,  
Series 1997, AMT,  
LOC: Bank of New York  
3.490% 03/01/12 (a)     2,050,000       2,050,000    
Mancor Industries, Inc.,  
Series 1999, AMT,  
LOC: PNC Bank N.A.  
3.530% 05/01/14 (a)     1,100,000       1,100,000    
Performance Friction Corp.,  
Series 2001, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 06/01/12 (a)     3,390,000       3,390,000    

 

    Par ($)   Value ($)  
Pine River Plastics, Inc. Project,  
Series 2000, AMT,  
LOC: Comerica  
3.510% 03/01/11 (a)     2,500,000       2,500,000    
Quoize, Inc., Project,  
Series 1996, AMT,  
LOC: Bank of New York  
3.550% 05/01/16 (a)     4,225,000       4,225,000    
Raynor USA Southeast,  
Series 2000, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 05/01/20 (a)     4,655,000       4,655,000    
Rock Tennessee Converting Co.,  
Series 2002, AMT,  
LOC: SunTrust Bank  
3.510% 04/01/32 (a)     2,500,000       2,500,000    
Sargent Metal Fabricators,  
Series 2002, AMT,  
LOC: Branch Banking & Trust  
3.550% 11/01/22 (a)     1,070,000       1,070,000    
Southeastern Fly Ash Co.,  
Series 2000, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 01/01/14 (a)     8,400,000       8,400,000    
SoPakCo., Inc.,  
Series 2006, AMT,  
LOC: Regions Bank  
3.480% 02/01/16 (a)     7,945,000       7,945,000    
Titan Wheel International, Inc.,  
Series 1995, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 02/01/10 (a)     1,500,000       1,500,000    
Vista Hotel Partners LLC,  
Series 2005, AMT,  
LOC: SunTrust Bank  
3.460% 12/01/35 (a)     11,300,000       11,300,000    
Waste Management,  
Series 2003, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 07/01/24 (a)     5,000,000       5,000,000    
SC Kershaw County Industrial Development Revenue  
DeRoyal Textiles, Inc.,  
Series 1994, AMT,  
LOC: SunTrust Bank of Nashville  
3.460% 12/01/07 (a)     2,000,000       2,000,000    

 

See Accompanying Notes to Financial Statements.

64


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
SC Piedmont Municipal Power Agency  
Electric Revenue:  
Series 2004 B-1,  
Insured: MBIA,  
SPA: JPMorgan Chase Bank  
3.430% 01/01/34 (a)     8,100,000       8,100,000    
Series 2004 B-3,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.430% 01/01/34 (a)     4,825,000       4,825,000    
South Carolina Total             129,220,000    
South Dakota – 0.2%  
SD Economic Development Financing Authority Industrial
Development Revenue		  
Lomar Development Co. Project,  
Series 1996 B, AMT,  
LOC: U.S. Bank N.A.  
3.620% 08/01/08 (a)     200,000       200,000    
SD Housing Development Authority  
Series 2004 G, AMT,  
SPA: Landesbank
Hessen-Thuringen		  
3.450% 05/01/34 (a)     10,000,000       10,000,000    
Series 2005 G, AMT,  
SPA: DEPFA Bank PLC  
3.450% 05/01/35 (a)     8,300,000       8,300,000    
South Dakota Total             18,500,000    
Tennessee – 3.6%  
TN Blount County Industrial Development Revenue  
Arrowhead Partners LP,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.510% 12/01/13 (a)     3,700,000       3,700,000    
TN Blount County Public Building Authority  
Series 2001 A-3-A,  
Insured: AMBAC,  
SPA: Landesbank
Baden-Wurttemberg		  
3.610% 06/01/26 (a)     20,000,000       20,000,000    
TN Brownsville Industrial Development Board Industrial
Development Revenue		  
Dynametal Technologies, Inc.,  
Series 1997, AMT,  
LOC: Union Planters Bank  
3.950% 06/01/12 (a)     4,190,000       4,190,000    

 

    Par ($)   Value ($)  
TN Franklin County Health & Educational Facilities  
University of the South,  
Series 1998 B,  
LOC: AmSouth Bank
of Alabama		  
3.440% 09/01/18 (a)     6,005,000       6,005,000    
TN Franklin County Industrial Development Board
Industrial Development Revenue		  
Zanini Tennessee, Inc.,  
Series 2005 A, AMT,  
LOC: Regions Bank  
3.560% 12/01/20 (a)     1,000,000       1,000,000    
TN Greeneville Industrial Development Board Industrial
Development Revenue		  
Packaging Services, Inc.,  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.510% 05/01/18 (a)     2,800,000       2,800,000    
TN Jefferson City Industrial Development Board Industrial
Development Revenue		  
Nashua Corp.,  
Series 2004 B, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 12/01/24 (a)     1,800,000       1,800,000    
TN Knox County First Utility District Water & Sewer
Revenue		  
Series 2003,  
LOC: AmSouth Bank  
3.530% 12/01/10 (a)     6,330,000       6,330,000    
TN Memphis Center City Revenue Finance Corp.  
Multi-Family Housing Revenue,  
Series 2000 PT-1220,  
LOC: Merrill Lynch Capital
Services		  
3.460% 11/06/29 (a)(c)     4,000,000       4,000,000    
TN Memphis Health Educational & Housing Facilities Board  
Alco Breezy Point Partners,  
Series 2005 A, AMT,  
LOC: AmSouth Bank  
3.510% 12/01/35 (a)     3,250,000       3,250,000    
Alco Knollcrest Partners,  
Series 2005 A, AMT,  
LOC: AmSouth Bank  
3.510% 12/01/35 (a)     2,225,000       2,225,000    

 

See Accompanying Notes to Financial Statements.

65


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Springdale Creek Apartments
Project,		  
Series 2003 A, AMT,  
LOC: First Tennessee Bank  
3.700% 01/01/35 (a)     5,350,000       5,350,000    
TN Metropolitan Government Nashville & Davidson County  
Health & Educational Facilities
Board:		  
Belmont University,  
Series 2002,  
LOC: SunTrust Bank  
3.400% 12/01/22 (a)     9,500,000       9,500,000    
Wedgewood Towers LP,  
Series 2004 A,  
LOC: AmSouth Bank  
3.720% 06/01/34 (a)     1,000,000       1,000,000    
Industrial Development Board,  
Series 1989,  
LOC: AmSouth Bank of Alabama  
3.490% 12/01/14 (a)     4,895,000       4,895,000    
TN Metropolitan Nashville Airport Authority  
Series 2003, AMT,  
LOC: SunTrust Bank  
3.460% 07/01/12 (a)     1,290,000       1,290,000    
Embraer Aircraft Services, Inc.,  
Series 2005, AMT,  
LOC: Regions Bank  
3.710% 04/01/30 (a)     3,910,000       3,910,000    
TN Monroe County Industrial Development Board  
Series 2006, AMT,  
LOC: SunTrust Bank  
3.460% 01/01/21 (a)     8,000,000       8,000,000    
TN Morgan Keegan Municipal Products, Inc.  
Series 2005 C, AMT,  
LIQ FAC: BNP Paribas  
3.510% 08/09/07 (a)     174,985,000       174,985,000    
TN SCA Tax Exempt Trust  
Series 2005 PT-2524,  
Insured: FSA,  
LOC: Merrill Lynch Capital Services  
3.460% 01/01/30 (a)     12,400,000       12,400,000    
TN Sevier County Industrial Development Board  
Series 2005, AMT,  
LOC: Branch Banking & Trust,  
3.550% 09/01/25 (a)     2,300,000       2,300,000    

 

    Par ($)   Value ($)  
TN Sevierville Public Building Authority  
Series 2006,  
Insured: XLCA,  
SPA: DEPFA Bank PLC  
3.590% 06/01/28 (a)     36,700,000       36,700,000    
TN Shelby County Health Educational & Housing Facilities
Board		  
Multi-Family Housing Revenue:  
Series 1995, AMT,  
LOC: FHLB  
3.450% 01/01/23 (a)     2,890,000       2,890,000    
Spring Creek Apartments,  
Series 1995, AMT,  
LOC: First Tennessee Bank  
3.700% 12/01/20 (a)     2,700,000       2,700,000    
TN Springfield Industrial Development Board  
All American Homes of
Tennessee,		      
Series 1994, AMT,  
LOC: Bank One of Michigan N.A.  
3.700% 11/01/09 (a)     800,000       800,000    
TN Sullivan County Industrial Development Board  
Series 1990, AMT,  
LOC: Northern Trust  
3.590% 07/01/10 (a)     5,000,000       5,000,000    
TN Union County Industrial Development Board  
Cooper Container Corp.,  
Series 2004,  
LOC: SunTrust Bank  
3.460% 12/01/14 (a)     2,900,000       2,900,000    
Tennessee Total             329,920,000    
Texas – 9.6%  
TX ABN AMRO Munitops Certificates Trust  
Series 2005,  
Insured: MBIA  
3.350% 09/01/13 (a)     9,735,000       9,735,000    
TX Affordable Housing Corp.  
Series 2006 1315,  
Insured: MBIA,  
LIQ FAC: Morgan Stanley  
3.510% 03/01/32 (a)     12,650,000       12,650,000    
TX Allen Independent School District  
Series 2005,  
Insured: MBIA  
3.450% 02/15/13 (a)     4,270,000       4,270,000    

 

See Accompanying Notes to Financial Statements.

66


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
TX Alliance Airport Authority  
Series 2006, AMT,  
LIQ FAC: Goldman Sachs  
3.500% 04/01/21 (a)     8,835,000       8,835,000    
TX Arlington Industrial Development Corp.  
Universal Forest Products,  
Series 1999, AMT,  
LOC: JPMorgan Chase Bank  
3.560% 07/01/29 (a)     1,000,000       1,000,000    
TX Austin Airport System Revenue  
Financial Services Department,  
Series 1995 A,  
LOC: JPMorgan Chase Bank  
3.470% 11/15/17 (a)     24,700,000       24,700,000    
TX Bell County Health Facilities Development Corp.  
Scott & White Memorial
Hospital,		  
Series 2001,  
Insured: MBIA,  
SPA: Westdeutsche Landesbank  
3.600% 08/15/31 (a)     800,000       800,000    
Series 2000 B-1,  
SPA: Morgan Guaranty Trust  
3.600% 08/15/29 (a)     8,725,000       8,725,000    
TX Bell County Industrial Development Corp.  
Industrial Development
Revenue,		  
Metal Sales Manufacturing
Corp. Project,		  
Series 1998, AMT,  
LOC: Firstar Bank N.A.  
3.700% 08/01/08 (a)     500,000       500,000    
TX Bexar Housing Finance Corp.  
Multi-Family Housing Revenue,  
Perrin Park Apartment Project,  
Series 1996,  
LOC: Northern Trust Co.  
3.570% 06/01/28 (a)     10,375,000       10,375,000    
TX Brazos County Housing Finance Corp.  
Single Family Mortgage
Revenue,		  
Series 2005, AMT,  
Insured: FGIC  
3.480% 03/01/11 (a)     10,245,000       10,245,000    

 

    Par ($)   Value ($)  
TX Brazos River Authority Pollution Control Revenue  
TXU Energy Co. LLC:  
Series 2001 D-1, AMT,  
LOC: Wachovia Bank N.A.  
3.450% 05/01/33 (a)     41,610,000       41,610,000    
Series 2001, AMT,  
LOC: Wachovia Bank N.A.  
3.450% 05/01/33 (a)     37,220,000       37,220,000    
TX Bridgeport Independent School District  
Series 2004,  
3.450% 08/15/08 (a)     6,450,000       6,450,000    
TX Camp County Industrial Development Corp.  
Pilgrims Pride Corp.,  
Series 1999, AMT,  
LOC: Harris Trust & Savings Bank  
3.450% 07/01/29 (a)     22,000,000       22,000,000    
TX Capital Industrial Development Corp. Solid Waste
Disposal Revenue		  
Texas Disposal Systems, Inc.,  
Series 2001, AMT,  
LOC: JPMorgan Chase Bank  
3.530% 05/01/16 (a)     11,860,000       11,860,000    
TX Corsicana Independent School District  
Series 2004,  
3.450% 02/15/24 (a)     5,190,000       5,190,000    
TX Dallas Area Rapid Transit Sales  
3.600% 09/05/06     15,000,000       15,000,000    
TX Dallas Fort Worth International Airport Facilities
Improvement Corp.		  
United Parcel Service, Inc.,  
Series 2002, AMT,  
3.590% 05/01/32 (a)     7,200,000       7,200,000    
TX Dallas Fort Worth International Airport Revenue  
Flight Safety Project,  
Series 1999, AMT,  
3.440% 07/01/32 (a)     16,180,000       16,180,000    
Series 2003 PT-825, AMT,  
Insured: MBIA,  
SPA: Lloyds TSB Bank PLC  
3.490% 05/01/11 (a)     9,995,000       9,995,000    
Series 2003, AMT,  
3.490% 05/01/11 (a)     9,840,000       9,840,000    
Series 2004, AMT,  
Insured: MBIA  
3.480% 11/01/33 (a)     3,000,000       3,000,000    

 

See Accompanying Notes to Financial Statements.

67


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2005, AMT,  
Insured: FGIC,  
LIQ FAC: Svenska Handelsbanken  
3.710% 11/01/19 (a)(b)     30,665,000       30,665,000    
TX Dallas Housing Finance Corp.  
Multi-Family Housing Revenue:  
Cherry Crest Villas
Apartments,		  
Series 2005, AMT,  
LOC: Wachovia Bank N.A.  
3.500% 03/01/38 (a)     4,800,000       4,800,000    
The Masters Apartments
Project,		  
Series 2004, AMT,  
Insured: FNMA  
3.470% 07/15/37 (a)     8,000,000       8,000,000    
TX Department of Housing & Community Affairs  
3.650% 09/07/06     3,231,000       3,231,000    
Series 2005, AMT,  
SPA: Merrill Lynch Capital Services  
3.540% 03/01/45 (a)     13,995,000       13,995,000    
Series 2005,  
LIQ FAC: Merrill Lynch Capital Services:  
3.540% 03/01/36 (a)     8,755,000       8,755,000    
3.540% 07/01/45 (a)     10,290,000       10,290,000    
Series 2006, AMT:  
Insured: FNMA,  
SPA: Merrill Lynch Capital Services  
3.480% 12/01/38 (a)     13,650,000       13,650,000    
LIQ FAC: Merrill Lynch Capital Services  
3.540% 03/01/46 (a)     14,335,000       14,335,000    
St. Augustine Estate
Apartments,		  
Series 2005, AMT,  
LOC: JPMorgan Chase Bank  
3.500% 09/15/38 (a)     7,650,000       7,650,000    
TX Garland Housing Finance Corp.  
Multi-Family Housing Revenue,  
Primrose at Crist Apartments,  
Series 2005,  
LOC: Wachovia Bank N.A.  
3.500% 03/01/38 (a)     6,900,000       6,900,000    
TX Gulf Coast Industrial Development Authority  
Citgo Petroleum Corp.:  
Series 1994, AMT,  
LOC: Royal Bank of Scotland  
3.650% 04/01/26 (a)     5,600,000       5,600,000    
Series 2004, AMT,  
LOC: Caylon Bank  
3.620% 10/01/32 (a)     7,800,000       7,800,000    

 

    Par ($)   Value ($)  
Harsco Corp.,  
Series 2000, AMT,  
LOC: Wachovia Bank N.A.  
3.560% 05/01/10 (a)     1,500,000       1,500,000    
TX Gulf Coast Waste Disposal Authority  
Exxon Mobil Corp.:  
Series 1995,  
3.510% 06/01/20 (a)     8,100,000       8,100,000    
Series 2002, AMT,  
3.560% 12/01/25 (a)     22,950,000       22,950,000    
Series 2003, AMT  
3.560% 09/01/25 (a)     9,600,000       9,600,000    
TX Harris County Health Facility Development Corp.  
Blood Center Gulf Coast
Regional,		      
Series 1992,  
LOC: JP Morgan Chase Bank  
3.650% 04/01/17 (a)     2,350,000       2,350,000    
TX Harris County Industrial Development Corp.  
Deer Park Refining LP,  
Series 2004, AMT,  
3.700% 02/01/23 (a)     43,050,000       43,050,000    
Exxon Mobil Corp.,  
Series 1997, AMT,  
3.590% 04/01/32 (a)     11,900,000       11,900,000    
Industrial Development
Revenue:		  
North American Galvanizing,  
Series 2000, AMT,  
LOC: JPMorgan Chase Bank  
3.560% 03/01/25 (a)     2,125,000       2,125,000    
Series 2000, AMT,  
LOC: Bank One Oklahoma N.A.  
3.720% 04/01/08 (a)     5,000,000       5,000,000    
Pollution Control Revenue,  
Exxon Mobil Corp.,  
Series 1984,  
3.510% 03/01/24 (a)     5,200,000       5,200,000    
Solid Waste Disposal Revenue,  
Deer Park Refining LP,  
Series 2004 A, AMT,  
3.700% 03/01/23 (a)     40,300,000       40,300,000    
TX Hillsboro Industrial Development Corp. Revenue  
Lamcraft LP Project,  
Series 1997, AMT,  
LOC: First Commercial Bank  
3.710% 07/01/13 (a)     845,000       845,000    

 

See Accompanying Notes to Financial Statements.

68


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
TX Houston Housing Financial Corp.  
Series 2004, AMT,  
Insured: FNMA  
3.470% 04/15/37 (a)     3,500,000       3,500,000    
TX Houston Independent School District  
Series 2004 PT-979,  
Insured: FSA,  
LIQ FAC: Landesbank Hessen-Thuringen  
3.450% 07/15/19 (a)     9,995,000       9,995,000    
TX Houston Utility Systems Revenue  
Series 2004,  
Insured: MBIA  
3.450% 05/15/14 (a)     5,665,000       5,665,000    
TX Hunt Memorial Hospital District  
Series 2006,  
Insured: XLCA,  
SPA: JPMorgan Chase Bank  
3.460% 02/01/26 (a)     8,100,000       8,100,000    
TX Klein Independent School District  
Series 2003,  
3.450% 02/15/11 (a)     5,565,000       5,565,000    
Series 2006,  
Insured: FGIC,  
LIQ FAC: Wells Fargo Bank N.A.  
3.450% 08/01/31 (a)     5,755,000       5,755,000    
TX Laredo Sports Venue Sales Tax Revenue  
Series 2005 PT-2757,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital Services  
3.450% 03/15/24 (a)     6,245,000       6,245,000    
TX Lewisville Independent School District  
Series 2004,  
3.450% 08/15/08 (a)     3,940,000       3,940,000    
TX Lower Colorado River Authority  
Transmission Contract
Revenue,		  
Series 2003,  
Insured: AMBAC  
3.450% 05/15/22 (a)     1,880,000       1,880,000    
TX Lower Neches Valley Authority Industrial
Development Corp.		  
Exxon Mobil Corp.,  
Series 2001 B, AMT,  
3.450% 11/01/29 (a)     50,000,000       50,000,000    

 

    Par ($)   Value ($)  
TX Montgomery Housing Finance Corp.  
Woodline Park Apartments LP,  
Series 2005, AMT,  
LOC: Citibank N.A.  
3.530% 02/01/38 (a)     7,500,000       7,500,000    
TX North Texas Higher Education Authority  
Series 2003 A-1, AMT,  
LOC: DEPFA Bank PLC  
3.630% 10/01/37 (a)     10,000,000       10,000,000    
Series 2003 A-2, AMT,  
LOC: DEPFA Bank PLC  
3.630% 04/01/10 (a)     10,000,000       10,000,000    
TX Nueces River Authority  
Series 2005 PT-2823,  
Insured: FSA,  
LIQ FAC: Merrill Lynch Capital Services  
3.450% 07/15/22 (a)     6,195,000       6,195,000    
TX Panhandle Regional Housing Financing  
Series 2002, AMT,  
3.540% 09/01/14 (a)     6,060,000       6,060,000    
TX Panhandle-Plains Higher Education Authority, Inc.  
Series 1992 A,  
Insured: MBIA  
3.460% 06/01/21 (a)     25,000,000       25,000,000    
Series 1993 A, AMT,  
Insured: MBIA,  
SPA: Merrill Lynch Capital Services  
3.460% 06/01/23 (a)     25,000,000       25,000,000    
TX Southeast Housing Finance Corp.  
Garth Housing LP,  
Series 2005, AMT,  
LOC: Wachovia Bank N.A.  
3.500% 03/01/38 (a)     7,140,000       7,140,000    
TX Southmost Junior College District  
Series 2005 PT-2582,  
Insured: MBIA,  
SPA: Merrill Lynch Capital Services  
3.450% 02/15/25 (a)     6,160,000       6,160,000    
TX State  
GO,  
Veterans Housing Assist
Project,		  
Series 2003, AMT,  
3.460% 06/01/34 (a)     23,775,000       23,775,000    

 

See Accompanying Notes to Financial Statements.

69


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Veterans Housing Assistance:  
Series 2004 II-B, AMT,  
LOC: DEPFA Bank PLC  
3.480% 12/01/34 (a)     15,640,000       15,640,000    
Series 2005 II-B, AMT,  
SPA: State Street Bank & Trust Co.  
3.520% 06/01/36 (a)     39,600,000       39,600,000    
TX Travis County Housing Finance Corp.  
Multi-Family Housing Revenue,  
Rosemont at Old Manor
Apartments,		  
Series 2004, AMT,  
Insured: FNMA  
3.470% 08/15/37 (a)     6,700,000       6,700,000    
TX Trinity River Authority  
Solid Waste Disposal Revenue,  
Community Waste
Disposal, Inc.,		  
Series 2001, AMT,  
LOC: Wells Fargo Bank N.A.  
3.450% 05/01/21 (a)     9,330,000       9,330,000    
TX West Side Calhoun County Naval District  
BP Chemicals, Inc.,  
Series 1996, AMT,  
3.650% 04/01/31 (a)     4,750,000       4,750,000    
TX Wylie Independent School District  
Series 2004,  
3.450% 08/15/08 (a)     6,460,000       6,460,000    
Texas Total             875,926,000    
Utah – 4.6%  
UT Board Regents Student Loan Revenue  
Series 1988 C, AMT,  
Insured: AMBAC,  
SPA: DEPFA Bank PLC  
3.480% 11/01/13 (a)     22,500,000       22,500,000    
Series 1995, AMT,  
Insured: AMBAC,  
SPA: DEPFA Bank PLC  
3.480% 11/01/25 (a)     60,600,000       60,600,000    
Series 1997 R, AMT,  
Insured: AMBAC,  
LOC: DEPFA Bank PLC  
3.480% 11/01/31 (a)     6,355,000       6,355,000    

 

    Par ($)   Value ($)  
UT Davis County Housing Authority  
Multi-Family Housing Revenue,  
PTR Multi-Family
Holdings, Inc.,		  
Series 1997 A,  
LOC: Bank One N.A.  
3.470% 08/15/39 (a)     4,240,000       4,240,000    
UT Housing Corp.  
Multi-Family Revenue,  
 BP-UT 2 LLC,   
Series 2004 A, AMT,  
LOC: Citibank N.A.  
3.470% 07/01/35 (a)     9,000,000       9,000,000    
Single Family Mortgage
Revenue:		  
Series 2001 B, AMT,  
3.490% 07/01/32 (a)     13,990,000       13,990,000    
Series 2002 C-2, AMT,  
3.490% 07/01/31 (a)     9,995,000       9,995,000    
Series 2004 A-I, AMT,  
3.490% 07/01/35 (a)     8,395,000       8,395,000    
Series 2004 C-I, AMT,  
LIQ FAC: Bayerische Landesbank  
3.490% 07/01/35 (a)     12,735,000       12,735,000    
Series 2004 D-I, AMT,  
LIQ FAC: Bayerische Landesbank  
3.490% 07/01/35 (a)     12,890,000       12,890,000    
Series 2004 F, AMT,  
LIQ FAC: Bayerische Landesbank  
3.490% 01/01/36 (a)     16,560,000       16,560,000    
Series 2004 G-I, AMT,  
LIQ FAC: Bayerische Landesbank  
3.490% 01/01/36 (a)     16,560,000       16,560,000    
Series 2004 -h1, AMT,  
LIQ FAC: Bayerische Landesbank  
3.490% 01/01/36 (a)     4,300,000       4,300,000    
Series 2005 A,  
LOC: Bayerische Landesbank  
3.490% 07/01/36 (a)     9,400,000       9,400,000    
Series 2005 B, AMT,  
3.490% 07/01/36 (a)     14,400,000       14,400,000    
Series 2005 C, AMT,  
GIC: Transamerica Occid
Life Insurance Co.,		  
SPA: DEPFA Bank PLC  
3.490% 07/01/36 (a)     12,880,000       12,880,000    
Series 2005 D, AMT,  
LIQ FAC: Bayerische
Landesbank		  
3.490% 07/01/36 (a)     11,100,000       11,100,000    

 

See Accompanying Notes to Financial Statements.

70


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2005 E, AMT,  
SPA: DEPFA Bank PLC  
3.490% 01/01/37 (a)     9,950,000       9,950,000    
Series 2005 F, AMT,  
SPA: DEPFA Bank PLC  
3.490% 01/01/37 (a)     14,160,000       14,160,000    
Series 2005 G, AMT,  
LIQ FAC: DEPFA Bank PLC  
3.490% 01/01/37 (a)     14,065,000       14,065,000    
Series 2005 I,  
3.490% 07/01/36 (a)     8,000,000       8,000,000    
Series 2005, AMT:  
GIC: Royal Bank of Canada  
3.490% 01/01/37 (a)     6,255,000       6,255,000    
LIQ FAC: DEPFA Bank PLC  
3.490% 01/01/37 (a)     14,470,000       14,470,000    
Series 2006 A-1, AMT  
SPA: DEPFA Bank PLC  
3.490% 07/01/37 (a)     7,475,000       7,475,000    
Series 2006 B, AMT,  
SPA: Lehman Brothers
Commercial Bank		  
3.490% 07/01/37 (a)     12,000,000       12,000,000    
Series 2006 C, AMT,  
SPA: Lehman Brothers
Commercial Bank		  
3.490% 01/01/38 (a)     12,000,000       12,000,000    
Series 2006 D-1, AMT,  
LIQ FAC: Lehman Brothers
Commercial Bank		  
3.490% 01/01/38 (a)     9,705,000       9,705,000    
Series 2006, AMT,  
GIC: Royal Bank of Canada
3.440% 01/01/37 (a)		     21,455,000       21,455,000    
UT Housing Finance Agency  
Series 2001 A-2, AMT,  
SPA: Bayerische Landesbank  
3.490% 07/01/32 (a)     11,245,000       11,245,000    
UT Murray City Industrial Development Revenue  
Zvex Project,  
Series 1996, AMT,  
LOC: Bank One Arizona  
3.700% 10/01/16 (a)     1,100,000       1,100,000    
UT Salt Lake City Industrial Development Revenue  
Spring Air Project,  
Series 2003, AMT,  
3.490% 07/01/23 (a)     3,275,000       3,275,000    

 

    Par ($)   Value ($)  
UT Tooele City Industrial Development Revenue  
Encon Utah Project,  
Series 2002 A, AMT,  
LOC: U.S. Bank N.A.  
3.520% 10/01/22 (a)     3,100,000       3,100,000    
UT Water Finance Agency Revenue  
Series 2005 A-14,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.470% 10/01/35 (a)     8,100,000       8,100,000    
UT West Jordan Industrial Development Revenue  
Vesper Corp.,  
Series 1994 A, AMT,  
LOC: PNC Bank  
3.530% 04/01/14 (a)     5,000,000       5,000,000    
UT West Valley City Industrial Development Revenue  
Johnson Matthey, Inc.,  
Series 1987,  
LOC: HSBC Bank USA N.A.  
3.600% 12/01/11 (a)     8,550,000       8,550,000    
Utah Total             415,805,000    
Vermont – 0.3%  
VT Economic Development Authority  
Alpine Pipeline Co.,  
Series 1999 A, AMT,  
LOC: KeyBank N.A.  
3.550% 12/01/20 (a)     1,175,000       1,175,000    
VT Housing Finance Agency  
Series 2005 23, AMT,  
Insured: FSA,  
SPA: DEPFA Bank PLC  
3.480% 11/01/34 (a)     14,300,000       14,300,000    
VT Industrial Development Authority  
Ryegate Wood Energy
Company,		  
Series 1990, AMT,  
LOC: ABN AMRO Bank N.V.  
3.500% 12/01/15 (a)     11,800,000       11,800,000    
Vermont Total             27,275,000    
Virginia – 1.2%  
VA Chesapeake Economic Development Authority  
Tidewater Fibre Corp.,  
Series 2005, AMT,  
LOC: Wachovia Bank N.A.  
3.460% 12/01/14 (a)     12,250,000       12,250,000    

 

See Accompanying Notes to Financial Statements.

71


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
VA Commonwealth University  
Series 2006 B,  
Insured: AMBAC,  
SPA: Wachovia Bank N.A.  
3.590% 11/01/30 (a)     27,600,000       27,600,000    
VA Fredericksburg Industrial Development Authority Multi-
Family Housing Revenue		  
Forest Village Apartments
Project,		  
Series 2001 A-1, AMT,  
LOC: SunTrust Bank  
3.460% 01/01/33 (a)     4,500,000       4,500,000    
VA Madison County Industrial Development Revenue  
Madison Wood Preservers,  
Series 1998, AMT,  
LOC: Wachovia Bank of North Carolina  
3.460% 06/01/13 (a)     3,525,000       3,525,000    
VA Morgan Keegan Municipal Products, Inc.  
Series 2005 C, AMT,  
LIQ FAC: BNP Paribas  
3.510% 12/01/10 (a)     13,310,000       13,310,000    
VA Port Authority  
Commonwealth Port Fund
Revenue,		  
Series 2005 PT-2662, AMT,  
Insured: FSA,  
LIQ FAC: Merrill Lynch Capital Services  
3.480% 07/01/24 (a)     3,080,000       3,080,000    
VA Prince William County Industrial Development Revenue  
Dale Scott Corp. Project,  
Series 2001, AMT,  
LOC: First Union National Bank  
3.460% 12/01/21 (a)     8,600,000       8,600,000    
VA Richmond Redevelopment & Housing Authority  
Series 1989 10A-B, AMT,  
GIC: Transamerica Occidental Life Insurance Co.  
3.500% 10/01/29 (a)     3,460,000       3,460,000    
Series 1989 10B, AMT,  
GIC: Transamerica Occidental Life Insurance Co.  
3.500% 10/01/29 (a)     3,460,000       3,460,000    
Series 1989 5B, AMT,  
GIC: Transamerica Occidental Life Insurance Co.  
3.500% 10/01/29 (a)     5,535,000       5,535,000    
Series 1989 7A, AMT,  
GIC: Transamerica Occidental Life Insurance Co.  
3.500% 10/01/29 (a)     5,000,000       5,000,000    
Series 1989 7B, AMT,  
GIC: Transamerica Occidental Life Insurance Co.  
3.500% 10/01/29 (a)     5,535,000       5,535,000    

 

    Par ($)   Value ($)  
Series 1989 B-3, AMT,  
GIC: Transamerica Occidental Life Insurance Co.  
3.500% 10/01/29 (a)     1,960,000       1,960,000    
Tobacco Row Revenue:  
Series 1989 B-6, AMT,  
GIC: Bayerische Landesbank  
3.500% 10/01/29 (a)     3,515,000       3,515,000    
Series 1989 B-8, AMT,  
GIC: Bayerische Landesbank  
3.500% 10/01/29 (a)     3,515,000       3,515,000    
VA Westmoreland County Industrial Development Revenue  
Economic Development
Revenue,		  
Second Development LLC
Project,		  
Series 2003,  
LOC: Wells Fargo Bank N.A.  
3.550% 08/01/19 (a)     3,500,000       3,500,000    
Virginia Total             108,345,000    
Washington – 2.3%  
WA Central  
Washington University,  
Series 2004,  
Insured: FGIC  
3.450% 05/01/21 (a)     4,165,000       4,165,000    
WA Economic Development Finance Authority  
Four Corners Capital LLC,  
Series 2005 G, AMT,  
LOC: General Electric Capital Corp.  
3.470% 01/01/26 (a)(c)     7,500,000       7,500,000    
RMI Investors LLC,  
Series 2001, AMT,  
LOC: Wells Fargo Bank N.A.  
3.500% 08/01/26 (a)     3,585,000       3,585,000    
WA Goat Hill Properties  
Washington Lease Revenue,  
Series 2005,  
Insured: MBIA  
3.450% 12/01/23 (a)     1,335,000       1,335,000    
WA Housing Finance Commission  
Multi-Family Housing Revenue:  
Columbia Heights Project,  
 2004 A,   
LOC: Wells Fargo Bank N.A.  
3.730% 10/01/39 (a)     9,045,000       9,045,000    
Inglebrook Court Project,  
Series 1995, AMT,  
3.500% 07/01/25 (a)     8,300,000       8,300,000    

 

See Accompanying Notes to Financial Statements.

72


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Mallard Lakes Apartment
Projects,		  
Series 2002 A, AMT,  
3.470% 05/15/35 (a)     13,600,000       13,600,000    
MWSH Arlington LLC,  
Series 2003, AMT,  
LOC: Washington Trust Bank  
3.680% 11/01/36 (a)     1,300,000       1,300,000    
Pacific Inn Apartments Project,  
Series 1996 A, AMT,  
LOC: U.S. Bank N.A.  
3.520% 05/01/28 (a)     1,350,000       1,350,000    
Rosemont Apartments Projects,  
Series 2003 A, AMT,  
LOC: Umpua Bank & Bank of the West  
3.760% 10/01/36 (a)     2,885,000       2,885,000    
Series 2005 A, AMT,  
Insured: FNMA  
3.470% 09/15/39 (a)     15,570,000       15,570,000    
Sherwood Springs Apartments
Project,		  
Series 1997 A, AMT,  
LOC: U.S. Bank N.A.  
3.520% 09/01/27 (a)     2,000,000       2,000,000    
Sisters of Providence Project,  
Series 1995, AMT,  
3.680% 12/01/15 (a)     1,835,000       1,835,000    
Multi-Family Revenue:  
Lake City Senior Housing
Associates,		  
Series 2006, AMT,  
Insured: FHLMC  
3.480% 07/01/39 (a)     4,000,000       4,000,000    
Twin Ponds Apartments LP,  
Series 1998 A, AMT,  
LOC: U.S. Bank N.A.  
3.500% 02/01/28 (a)     3,515,000       3,515,000    
Single Family Housing
Revenue,		  
Series 2006 2A, AMT,  
3.750% 05/01/07     22,000,000       22,000,000    
YMCA of Seattle,  
Series 1991,  
LOC: U.S. Bank N.A.  
3.580% 07/01/11 (a)     4,200,000       4,200,000    
WA King County Housing Authority  
Auburn North Associates,  
Series 1997, AMT,  
Insured: FNMA,  
3.470% 12/01/27 (a)     3,370,000       3,370,000    

 

    Par ($)   Value ($)  
WA King County Sewer Revenue  
Series 2003,  
Insured: FGIC  
3.450% 01/01/20 (a)     5,555,000       5,555,000    
WA Pierce County Economic Development  
McFarland Cascade Project,  
Series 1996, AMT,  
LOC: U.S. Bank N.A.  
3.520% 12/01/17 (a)     2,000,000       2,000,000    
WA Port Bellingham Industrial Development Corp.  
BP West Coast Products LLC,  
Series 2002, AMT,  
3.650% 12/01/33 (a)     8,900,000       8,900,000    
WA Port of Seattle Revenue  
Series 2003, AMT,  
Insured: MBIA  
3.480% 07/01/11 (a)(b)     4,320,000       4,320,000    
WA Port Tacoma  
Series 2006, AMT,  
Insured: XLCA,  
SPA: Banco Bilbao Vizcaya  
3.600% 12/01/36 (a)     36,000,000       36,000,000    
WA Seattle Housing Authority Revenue  
Lower Income Housing
Assistance Revenue,		  
Bayview Manor Project,  
Series 1994 B,  
LOC: US Bank of Washington  
3.470% 05/01/19 (a)     2,280,000       2,280,000    
Rainier Vista Project, Phase I,  
Series 2003,  
LOC: KeyBank N.A.  
3.490% 12/01/36 (a)     22,100,000       22,100,000    
WA State  
Series 2003,  
Insured: FSA  
3.450% 07/01/19 (a)     5,100,000       5,100,000    
WA Tacoma Convention Center & Parking Revenue  
Series 2004,  
Insured: MBIA  
3.450% 12/01/24 (a)     6,035,000       6,035,000    
WA Yakima County Public Corp.  
Oord Dairy,  
Series 2004, AMT,  
LOC: KeyBank N.A.  
3.550% 04/01/18 (a)     4,415,000       4,415,000    
Washington Total             206,260,000    

 

See Accompanying Notes to Financial Statements.

73


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

West Virginia – 0.7%  
    Par ($)   Value ($)  
WV Beckley Revenue Refunding  
Beckley Water Co.,  
Series 2003, AMT,  
LOC: Bank One West Virginia  
3.530% 10/01/16 (a)     7,120,000       7,120,000    
WV Harrison County Board of Education  
Series 2001,  
LIQ FAC: Wachovia Bank N.A.  
3.630% 05/01/07 (a)     3,925,000       3,925,000    
WV Marion County Commission Solid Waste Disposal
Facility Revenue		  
Grantown Project,  
Series 1990 C, AMT,  
LOC: National Westminster  
3.500% 10/01/17 (a)     1,200,000       1,200,000    
WV Pleasants County Commission Industrial Development
Revenue		  
Simex, Inc.,  
Series 1999,  
LOC: PNC Bank N.A.  
3.510% 12/01/19 (a)     7,055,000       7,055,000    
WV Putnam County Solid Waste Disposal Revenue  
Toyota Motor Credit Corp.:  
Series 1998 A, AMT,  
3.450% 06/01/28 (a)     40,000,000       40,000,000    
Series 2000 A, AMT,  
3.450% 04/01/30 (a)     5,000,000       5,000,000    
WV University Revenue  
Series 2004,  
Insured: FGIC  
3.450% 10/01/24 (a)     2,340,000       2,340,000    
West Virginia Total             66,640,000    
Wisconsin – 1.6%  
WI Caledonia Industrial Development Revenue  
Caledonia Properties LLC,  
Series 1998,AMT,  
LOC: Fifth Third Bank N.A.  
3.670% 12/01/18 (a)     1,500,000       1,500,000    
WI Chippewa Falls Industrial Development Revenue  
Series 2003, AMT,  
LOC: Fifth Third Bank  
3.670% 04/01/33 (a)     1,400,000       1,400,000    

 

    Par ($)   Value ($)  
WI Health & Educational Facilities Authority  
Series 2003,  
Insured: MBIA:  
3.200% 08/15/19 (a)(b)     24,015,000       24,014,745    
3.350% 02/15/16 (a)(b)     16,425,000       16,425,000    
WI Housing & Economic Development Authority  
Home Ownership Revenue:  
Series 2004 D, AMT,  
LOC: Dexia Credit Local  
3.480% 09/01/35 (a)     25,140,000       25,140,000    
Series 2004 E, AMT,  
3.480% 09/01/35 (a)     17,430,000       17,430,000    
Series 2005 C, AMT,  
LOC: Lloyds TSB Bank PLC:  
3.480% 03/01/28 (a)     14,955,000       14,955,000    
3.480% 09/01/33 (a)     12,000,000       12,000,000    
Series 2005 A, AMT,  
SPA: DEPFA Bank PLC  
3.480% 05/01/35 (a)     4,975,000       4,975,000    
Series 2005 B, AMT,  
SPA: DEPFA Bank PLC  
3.480% 05/01/35 (a)     2,885,000       2,885,000    
Series 2005 C, AMT,  
SPA: DEPFA Bank PLC  
3.480% 05/01/35 (a)     2,025,000       2,025,000    
WI Kenosha Industrial Development Revenue  
Monarch Plastics, Inc.,  
Series 1994, AMT,  
LOC: JPMorgan Chase Bank  
3.850% 12/01/09 (a)     700,000       700,000    
WI Marathon City Redevelopment Authority Industrial
Development Revenue		  
Maratech Calvin Frost Project,  
Series 2003, AMT,  
LOC: Fifth Third Bank  
3.670% 10/01/35 (a)     2,965,000       2,965,000    
WI Menomonee Falls Industrial Development Revenue  
Series 1994,  
LOC: Bank One
Milwaukee N.A.		  
3.700% 09/01/14 (a)     2,700,000       2,700,000    
WI Oconomowoc Community Development Authority  
 85 Oconomowoc LLC,   
Series 2004, AMT,  
LOC: LaSalle Bank N.A.  
3.480% 12/01/44 (a)     1,500,000       1,500,000    

 

See Accompanying Notes to Financial Statements.

74


Columbia Municipal Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
WI Oconto Industrial Development Revenue  
Unlimited Services of
Wisconsin,		      
Series 2000, AMT,  
LOC: Bank One Wisconsin  
3.620% 11/01/12 (a)     1,050,000       1,050,000    
WI Park Falls Industrial Development Revenue  
Shield Brothers, Inc.,  
Series 2000, AMT,  
LOC: Bank One Wisconsin  
3.530% 08/01/20 (a)     700,000       700,000    
WI Pewaukee Industrial Development  
Gunner Press & Finishing,  
Series 2000, AMT,  
LOC: Bank One Wisconsin  
3.700% 09/01/20 (a)     800,000       800,000    
WI Saukville Village Community Development Authority
Industrial Development Revenue		  
Calibre, Inc.,  
Series 2004, AMT,  
LOC: U.S. Bank N.A.  
3.530% 09/01/29 (a)     1,815,000       1,815,000    
WI Sheboygan Industrial development Revenue  
SBCO Foods of Wisconsin,  
Series 2002, AMT,  
LOC: National Bank & Trust  
3.700% 08/01/12 (a)     2,470,000       2,470,000    
WI Whitewater Industrial Development Revenue  
Husco International, Inc.,  
Series 1997, AMT,  
LOC: LaSalle Bank N.A.  
3.510% 12/01/12 (a)     3,500,000       3,500,000    
WI Wind Point Revenue  
The Johnson Foundation,  
Series 2000,  
LOC: Harris Trust &
Savings Bank		  
3.430% 09/01/35 (a)     8,190,000       8,190,000    
Wisconsin Total             149,139,745    
Wyoming – 1.7%  
WY Campbell County Industrial Development Revenue  
Series 2005 B,  
3.350% 12/01/35 (a)     56,180,000       56,180,000    
Two Elk Power Generation
Partners,		      
Series 2003, AMT,  
3.550% 12/01/30 (a)     40,000,000       40,000,000    

 

    Par ($)   Value ($)  
WY Kemmerer Pollution Control Revenue  
Exxon Mobil Corp.,  
Series 1984,  
3.510% 11/01/14 (a)     5,695,000       5,695,000    
WY Lincoln County Pollution Control Revenue  
Exxon Capital Ventures:  
Series 1987 A, AMT,  
3.590% 07/01/17 (a)     7,500,000       7,500,000    
Series 1987 B, AMT,  
3.590% 07/01/17 (a)     5,000,000       5,000,000    
Series 1987 C, AMT,  
3.590% 07/01/17 (a)     15,600,000       15,600,000    
Exxon Mobil Corp.:  
Series 1984 A,  
3.510% 11/01/14 (a)     6,375,000       6,375,000    
Series 1984 B,  
3.510% 11/01/14 (a)     5,435,000       5,435,000    
Series 1985,  
3.500% 08/01/15 (a)     6,700,000       6,700,000    
Pacificorp,  
Series 1994,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.600% 11/01/24 (a)     9,500,000       9,500,000    
Wyoming Total             157,985,000    
Total Municipal Bonds
(Cost of $8,963,788,269)		             8,963,788,269    

 

Municipal Preferred Stocks – 0.1%

    Shares      
Munimae TE Bond Subsidiary LLC  
3.540% 11/15/25 (a)     11,905,000       11,905,000    
Total Municipal Preferred Stocks
(Cost of $11,905,000)		         11,905,000    

 

Variable Rate Demand Notes – 1.6%

    Par ($)  
Puttable Floating Option Tax-Exempt Receipts  
Series 2005, AMT,  
SPA: Merrill Lynch
Capital Services		  
3.540% 05/01/32 (a)     61,165,000       61,165,000    
Series 2005:  
LIQ FAC: Merrill Lynch
Capital Services		  
3.490% 09/01/31 (a)     6,040,000       6,040,000    
SPA: Merrill Lynch
Capital Services		  
3.510% 09/01/26 (a)     12,515,000       12,515,000    

 

See Accompanying Notes to Financial Statements.

75


Columbia Municipal Reserves (August 31, 2006)

Variable Rate Demand Notes (continued)

    Par ($)   Value ($)  
Series 2006 A,  
SPA: Merrill Lynch Capital Services:  
3.480% 10/01/39 (a)     51,065,000       51,065,000    
3.510% 10/01/37 (a)     15,000,000       15,000,000    
Total Variable Rate Demand Notes
(Cost of $145,785,000)		         145,785,000    
Total Investments – 99.8%
(Cost of $9,121,478,269)(d)		         9,121,478,269    
Other Assets & Liabilities, Net – 0.2%         19,406,683    
Net Assets – 100.0%       $ 9,140,884,952    

 

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) Illiquid security.

(c) The securities, under Rule 144A under the Securities Act of 1933, are restricted to resale normally to qualified institutional buyers. At August 31, 2006, these securities, which are not illiquid, amounted to $11,500,000, which represents 0.1% of net assets.

(d) Cost for federal income tax purposes is $9,121,509,593.

Acronym   Name  
AMBAC   Ambac Assurance Corp.  
AMT   Alternative Minimum Tax  
CIFG   CIFG Assurance North America, Inc.  
FGIC   Financial Guaranty Insurance Co.  
FHA   Federal Housing Administration  
FHLB   Federal Home Loan Bank  
FHLMC   Federal Home Loan Mortgage Corp.  
FNMA   Federal National Mortgage Association  
FSA   Financial Security Assurance, Inc.  
GIC   Guaranteed Investment Contract  
GNMA   Government National Mortgage Association  
GTY AGMT   Guaranty Agreement  
LIQ FAC   Liquidity Facility  
LOC   Letter of Credit  
MBIA   MBIA Insurance Corp.  
PSFG   Permanent School Fund Guaranteed  
SPA   Stand-by Purchase Agreement  
XLCA   XL Capital Assurance, Inc.  

 

See Accompanying Notes to Financial Statements.

76



Investment Portfolio Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds – 98.4%

Alabama – 3.7%  
    Par ($)   Value ($)  
AL ASMS Mobile Public Educational
Building Authority		  
Alabama High School Math & Science
Foundation, 		 
Series 1997,  
LOC: AmSouth Bank of Alabama  
3.450% 07/01/22 (a)     8,080,000       8,080,000    
AL Birmingham Medical Clinic Board  
Series 1991,  
LOC: AmSouth Bank  
3.410% 12/01/26 (a)     54,500,000       54,500,000    
University of Alabama Health
Services Foundation:		  
Series 2001 A,  
LOC: First Commercial Bank  
3.510% 03/01/31 (a)     6,135,000       6,135,000    
Series 2005,  
LOC: SunTrust Bank  
3.410% 09/01/15 (a)     10,000,000       10,000,000    
AL Eclipse Funding Trust  
Series 2006,  
Insured: XLCA,  
LIQ FAC: U.S. Bank N.A.  
3.440% 08/01/32 (a)     6,925,000       6,925,000    
AL Foley Public Park & Recreation Board  
YMCA of Mobile,  
Series 2002,  
LOC: Regions Bank  
3.460% 10/01/22 (a)     1,990,000       1,990,000    
AL Health Care Authority for Baptist Health  
Series 2006 C,  
LOC: AmSouth Bank  
3.420% 11/15/37 (a)     4,715,000       4,715,000    
AL Infirmary Health System Special
Care Facilities Financing Authority		  
Series 2006 A,  
LOC: Bank of Nova Scotia  
3.410% 02/01/40 (a)     19,000,000       19,000,000    
AL Montgomery Industrial Development Board  
General Electric Company,  
Series 2005,  
3.560% 05/01/21 (a)     14,800,000       14,800,000    
AL Pell City Special Care Facilities
Financing Authority		  
Noland Health Services, Inc.,  
Series 2004,  
LOC: Allied Irish Bank LLC  
3.400% 12/01/34 (a)     47,065,000       47,065,000    

 

    Par ($)   Value ($)  
AL Scottsboro Solid Waste Disposal Authority  
Series 2003,  
LOC: Regions Bank  
3.430% 11/01/18 (a)     5,460,000       5,460,000    
AL Space Science Exhibit Finance Authority  
Series 2005 A,  
LOC: AmSouth Bank  
3.510% 10/01/22 (a)     4,400,000       4,400,000    
AL Tuscaloosa County Education Board  
Series 2003,  
LOC: Regions Bank  
3.430% 02/01/16 (a)     5,200,000       5,200,000    
AL Tuscaloosa Educational Building Authority  
Stillman College,  
Series 2002 A,  
LOC: AmSouth Bank  
3.530% 10/01/23 (a)     14,760,000       14,760,000    
Alabama Total             203,030,000    
Alaska – 0.1%  
AK Housing Finance Corp.  
Series 2005-703,  
Insured: FGIC  
3.450% 12/01/12 (a)     6,260,000       6,260,000    
Alaska Total             6,260,000    
Arizona – 0.2%  
AZ Pima County Industrial Development
Authority		  
Broadway Proper Retirement Community I LP,  
Series 2000 A,  
Insured: GNMA,  
LOC: State Street Bank & Trust Co.  
3.630% 12/01/25 (a)     9,185,000       9,185,000    
AZ Tempe Industrial Development Authority  
Centers for Habilitation,  
Series 2001,  
LOC: Wells Fargo Bank N.A.  
3.500% 12/01/21(a)     2,600,000       2,600,000    
Arizona Total             11,785,000    
Arkansas – 0.1%  
AR Little Rock Metrocentre Improvement
District No. 1		  
Wehco Media, Inc.,  
Series 1985,  
LOC: Bank of New York  
3.600% 12/01/25 (a)     6,300,000       6,300,000    
Arkansas Total             6,300,000    

 

See Accompanying Notes to Financial Statements.

77


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

California – 0.1%  
    Par ($)   Value ($)  
CA Department of Water Resources  
Power Supply Revenue,  
Series 2002 B-2,  
LOC: BNP Paribas  
3.480% 05/01/22 (a)     5,560,000       5,560,000    
California Total             5,560,000    
Colorado – 4.3%  
CO ABN AMRO Munitops Certificates Trust  
Series 2005,  
Insured: FGIC  
3.340% 06/01/13 (a)     5,140,000       5,140,000    
CO Arapahoe County School District No. 6  
Series 2003,  
Insured: FGIC  
3.450% 12/01/10 (a)     5,750,000       5,750,000    
CO Broomfield Certificates of Participation  
Series 2002 PT-1643,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital Services  
3.450% 12/01/08 (a)     9,640,000       9,640,000    
CO Colorado Springs  
Fine Arts Center,  
Series 2006,  
LOC: Wells Fargo Bank N.A.  
3.400% 07/01/21 (a)     8,000,000       8,000,000    
CO Denver City & County Excise Tax Revenue  
Series 2001,  
Insured: FSA  
3.410% 09/01/25 (a)     25,785,000       25,785,000    
CO Denver City & County Multi Family Housing  
Series 1985,  
LOC: Credit Lyonnais  
3.580% 12/01/29 (a)     14,085,000       14,085,000    
CO Denver City & County  
Series 1996 A,  
Insured: MBIA  
5.500% 11/15/06     3,000,000       3,041,649    
CO Department of Transportation  
Series 2003,  
Insured: AMBAC  
3.450% 12/15/16 (a)     3,200,000       3,200,000    
CO Douglas County Colorado School District No. 1  
Series 2001,  
Insured: MBIA  
3.450% 06/15/09 (a)     5,655,000       5,655,000    

 

    Par ($)   Value ($)  
CO Educational & Cultural Facilities Authority  
Jewish Community Center,  
Series 2006 D-1,  
LOC: JPMorgan Chase Bank  
3.600% 07/01/36 (a)     7,400,000       7,400,000    
Oaks Christian School,  
Series 2006,  
LOC: U.S. Bank N.A.  
3.600% 05/01/33 (a)     30,000,000       30,000,000    
CO Erie Certificates of Participation  
Series 2005,  
LOC: KeyBank N.A.  
3.460% 11/01/35 (a)     4,365,000       4,365,000    
CO Harvest Junction Metropolitan District  
Series 2006,  
LOC: U.S. Bank N.A.  
3.420% 12/01/36 (a)     4,000,000       4,000,000    
CO Health Facilities Authority  
Bethesda Foundation:  
Series 2004 A,  
LOC: LaSalle Bank N.A.  
3.410% 08/01/34 (a)     5,040,000       5,040,000    
Series 2004 B,  
LOC: LaSalle Bank N.A.  
3.410% 08/01/34 (a)     4,045,000       4,045,000    
Covenant Retirement Communities, Inc.,  
Series 1999 A,  
LOC: LaSalle Bank N.A.  
3.400% 12/01/29 (a)     12,900,000       12,900,000    
Plan de Salud Del Valle,  
Series 2005,  
LOC: KeyBank N.A.  
3.430% 06/01/30 (a)     11,000,000       11,000,000    
CO Housing & Finance Authority  
Series 2006 B-2,  
SPA: DEPFA Bank PLC  
3.440% 11/01/34 (a)     36,000,000       36,000,000    
Series 2006,  
LOC: Wells Fargo Bank N.A.  
3.400% 05/01/19 (a)     5,000,000       5,000,000    
CO Kipling Ridge Metropolitan District  
Series 2005,  
LOC: U.S. Bank N.A.  
3.420% 12/01/23 (a)     3,715,000       3,715,000    
CO Lafayette Exemplatory Improvement District  
Series 2002,  
LOC: Wells Fargo Bank N.A.  
3.420% 12/01/22 (a)     3,125,000       3,125,000    

 

See Accompanying Notes to Financial Statements.

78


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CO State  
Series 2006,  
4.500% 06/27/07     15,000,000       15,088,818    
CO Westminster Economic Development
Authority		  
Series 2005,  
LOC: DEPFA Bank PLC  
3.400% 12/01/28 (a)     5,690,000       5,690,000    
Tax Increment Revenue,  
Series 2005,  
LOC: DEPFA Bank PLC  
3.400% 12/01/28 (a)     9,050,000       9,050,000    
Colorado Total             236,715,467    
Connecticut – 0.3%  
CT Fairfield  
Series 2006,  
4.500% 07/26/07     19,000,000       19,129,948    
Connecticut Total             19,129,948    
Delaware – 1.5%  
DE Eagle Tax-Exempt Trust  
Series 2001 A,  
Insured: MBIA,  
LIQ FAC: Citibank N.A.  
3.460% 05/15/26 (a)     18,700,000       18,700,000    
DE Economic Development Authority  
Independence School, Inc.,  
Series 2003,  
LOC: Citizens Bank  
3.410% 07/01/33 (a)     8,250,000       8,250,000    
DE Kent County Revenue  
Charter School, Inc.,  
Series 2002,  
LOC: Wachovia Bank N.A.  
3.460% 11/01/22 (a)     3,975,000       3,975,000    
DE New Castle County Student
Housing Revenue		  
Series 2005,  
LOC: Bank of New York  
3.460% 08/01/31 (a)     12,805,000       12,805,000    
DE Reset Optional Certificates Trust II-R  
Series 2006,  
LIQ FAC: Citigroup Financial Products  
3.510% 03/01/07 (a)     38,480,000       38,480,000    
Delaware Total             82,210,000    

 

District of Columbia – 0.7%  
    Par ($)   Value ($)  
DC Eclipse Funding Trust  
Series 2006,  
Insured: AMBAC,  
LIQ FAC: U.S. Bank Trust N.A.  
3.440% 10/01/31 (a)     15,350,000       15,350,000    
DC State  
American College of Cardiology,  
Series 2005,  
LOC: SunTrust Bank  
3.410% 06/01/40 (a)     13,200,000       13,200,000    
Maret School, Inc.,  
Series 2003,  
LOC: SunTrust Bank  
3.410% 10/01/30 (a)     1,945,000       1,945,000    
Series 2001 D,  
Insured: FGIC,  
SPA: FGIC  
3.450% 06/01/29 (a)     10,600,000       10,600,000    
District of Columbia Total             41,095,000    
Florida – 3.4%  
FL Alachua County Health Facilities Authority  
Meridian Behavioral Income,  
Series 2003,  
LOC: Wachovia Bank N.A.  
3.460% 07/01/18 (a)     3,500,000       3,500,000    
Shands Teaching Hospital,  
Series 2003 A,  
LOC: SunTrust Bank  
3.570% 12/01/32 (a)     2,645,000       2,645,000    
FL Development Finance Corp.  
Central Florida Community College Foundation,  
Series 2003 A-1,  
LOC: SunTrust Bank  
3.510% 06/01/23 (a)     1,835,000       1,835,000    
FL Eclipse Funding Trust  
Series 2006,  
Insured: FSA,  
LIQ FAC: U.S. Bank N.A.  
3.440% 10/01/13 (a)     6,795,000       6,795,000    
FL Higher Educational Facilities Financing
Authority		  
Southeastern University, Inc.,  
Series 2005,  
LOC: Regions Bank  
3.420% 12/02/30 (a)     20,000,000       20,000,000    

 

See Accompanying Notes to Financial Statements.

79


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
FL Highlands County Health Facilities
Authority		  
Adventist Health Systems,  
Series 2003 B,  
LOC: SunTrust Bank  
3.430% 11/15/09 (a)     16,360,000       16,360,000    
FL Miami Dade County Florida
School District		  
Series 2006,  
4.500% 06/28/07     26,000,000       26,157,852    
FL Miami-Dade County Industrial
Development Authority		  
Dave & Mary Alper Community,  
Series 2002,  
LOC: Northern Trust Co.  
3.430% 04/01/32 (a)     5,695,000       5,695,000    
FL Miami-Dade County  
Series 2006,  
Insured: FGIC,  
LOC: Citibank N.A.  
3.460% 07/01/33 (a)     9,900,000       9,900,000    
FL Orange County Industrial
Development Authority		  
Bishop Roman Catholic Orlando,  
Series 2000,  
LOC: SunTrust Bank  
3.410% 10/01/25 (a)     10,000,000       10,000,000    
FL Palm Beach County Health
Facilities Authority		  
Bethesda Healthcare Systems, Inc.,  
Series 2001,  
LOC: SunTrust Bank  
3.570% 12/01/31 (a)     16,590,000       16,590,000    
FL Sunshine State Governmental
Financing Commission		  
3.510% 09/12/06     149,000       149,000    
3.610% 09/08/06     9,000,000       9,000,000    
3.640% 09/07/06     15,000,000       15,000,000    
3.650% 09/08/06     1,300,000       1,300,000    
3.710% 09/12/06     3,000,000       3,000,000    
FL Tampa  
Tampa LLC,  
Series 2005 A,  
LOC: Royal Bank of Canada  
3.410% 10/01/37 (a)     9,000,000       9,000,000    

 

    Par ($)   Value ($)  
FL Titusville City  
Series 1995 A,  
LOC: SunTrust Bank  
3.460% 01/01/25 (a)     3,800,000       3,800,000    
FL University of North Florida Foundation, Inc.  
Series 1994,  
LOC: Wachovia Bank N.A.  
3.440% 11/01/24 (a)     9,400,000       9,400,000    
Series 1997,  
LOC: First Union
National Bank		  
3.440% 11/01/27 (a)     5,400,000       5,400,000    
Series 2000,  
LOC: First Union
National Bank		  
3.440% 11/01/30 (a)     11,600,000       11,600,000    
Florida Total             187,126,852    
Georgia – 3.8%  
GA Atlanta Rapid Transportation Authority  
3.620% 09/07/06     3,700,000       3,700,000    
GA City of Atlanta Tax Allocation  
Series 2006,  
LIQ FAC: AIG Global Real Estate,  
LOC: Wachovia Bank N.A.  
3.510% 12/01/24 (a)     10,000,000       10,000,000    
GA Clayton County Housing Authority  
Multi-Family Housing Revenue:  
Series 1990 A,  
Insured: FSA  
3.520% 01/01/21 (a)     5,300,000       5,300,000    
Series 1990 B,  
Insured: FSA  
3.520% 01/01/21 (a)     3,690,000       3,690,000    
Series 1990 C,  
Insured: FSA  
3.520% 01/01/21 (a)     6,955,000       6,955,000    
Series 1990 D,  
Insured: FSA  
3.520% 01/01/21 (a)     2,215,000       2,215,000    
Series 1990 F,  
Insured: FSA  
3.520% 01/01/21 (a)     3,945,000       3,945,000    
GA Cobb County Development Authority  
Institute of Nuclear Power,  
Series 1998,  
LOC: SunTrust Bank  
3.410% 02/01/13 (a)     8,690,000       8,690,000    

 

See Accompanying Notes to Financial Statements.

80


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
North Cobb Christian School,  
Series 1998 A,  
LOC: Branch Banking & Trust  
3.450% 03/01/22 (a)     6,600,000       6,600,000    
YMCA of Cobb County,  
Series 2003,  
LOC: Branch Banking & Trust Co.  
3.450% 12/01/25 (a)     2,740,000       2,740,000    
GA Cobb County Hospital Authority  
Cobb Hospital, Inc.,  
Series 2004,  
LOC: SunTrust Bank  
3.420% 04/01/34 (a)     25,000,000       25,000,000    
GA Columbus Development Authority  
Foundation Properties, Inc.,  
Series 2004,  
LOC: Columbus Bank & Trust  
3.480% 12/01/33 (a)     5,925,000       5,925,000    
GA Columbus Hospital Authority  
St. Francis Hospital, Inc.,  
Series 2000 A,  
LOC: Columbus Bank & Trust  
3.620% 01/01/31 (a)     6,235,000       6,235,000    
GA Coweta County  
Residential Care Facilities for
The Elderly Authority,		  
Wesley Woods of Newnan,  
LOC: Branch Banking & Trust  
3.410% 10/01/36 (a)     22,600,000       22,600,000    
GA DeKalb County Development Authority  
American Cancer Society, Inc.,  
Series 1988,  
LOC: SunTrust Bank  
3.410% 05/01/13 (a)     3,970,000       3,970,000    
GA DeKalb Private Hospital Authority  
Egleston Children Health Center,  
Series 1995 B,  
LOC: SunTrust Bank  
3.410% 12/01/17 (a)     6,250,000       6,250,000    
GA Fayette County Hospital Authority  
Piedmont Hospital,  
Series 2005,  
LOC: SunTrust Bank  
3.410% 06/01/35 (a)     31,000,000       31,000,000    
GA Fulton County Development Authority  
Mt. Vernon Presbyterian School,  
LOC: Branch Banking & Trust  
3.450% 08/01/35 (a)     5,000,000       5,000,000    

 

    Par ($)   Value ($)  
Weber School,  
Series 2006,  
LOC: Branch Banking & Trust  
3.450% 12/01/30 (a)     4,200,000       4,200,000    
GA Fulton County Water & Sewage
Revenue		  
Series 2005,  
Insured: FGIC,  
LIQ FAC: Citibank N.A.  
3.460% 01/01/35 (a)     1,650,000       1,650,000    
GA Gwinnett County Hospital Authority  
Gwinnett Hospital Systems, Inc.,  
Series 2002,  
LOC: SunTrust Bank  
3.410% 07/01/32 (a)     16,000,000       16,000,000    
GA La Grange Development Authority  
Lagrange College,  
Series 2001,  
LOC: SunTrust Bank  
3.410% 06/01/31 (a)     12,355,000       12,355,000    
GA Macon-Bibb County Georgia
Hospital Authority		  
Series 1998,  
LOC: SunTrust Bank  
3.410% 12/01/18 (a)     4,000,000       4,000,000    
GA Private Colleges & Universities
Authority		  
Mercer University,  
Series 2006 C,  
LOC: Branch Banking & Trust Co.  
3.470% 10/01/31 (a)     8,700,000       8,700,000    
GA Worth County Industrial Development
Authority		  
Seabrook Enterprises, Inc.,  
Series 1996 A,  
LOC: Harris Trust & Savings
Bank		  
3.410% 08/01/23 (a)     4,450,000       4,450,000    
Georgia Total             211,170,000    
Hawaii – 0.3%  
HI Department Budget & Finance  
Series 2006 4G,  
LIQ FAC: Goldman Sachs  
3.470% 07/01/30 (a)     8,000,000       8,000,000    

 

See Accompanying Notes to Financial Statements.

81


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
HI Honolulu City & County  
Series 2003,  
Insured: MBIA  
3.450% 03/01/22 (a)     4,950,000       4,950,000    
Series 2005 A,  
Insured: MBIA,  
LOC: Citibank N.A.  
3.460% 07/01/24 (a)     5,525,000       5,525,000    
Hawaii Total             18,475,000    
Idaho – 0.3%  
ID Boise County Housing Authority  
Series 2002,  
LOC: KeyBank N.A.  
3.500% 03/01/33 (a)     1,300,000       1,300,000    
ID Boise County Urban Renewal Agency  
Series 2004 A,  
LOC: KeyBank N.A.  
3.500% 03/01/24 (a)     8,055,000       8,055,000    
ID Health Facilities Authority  
St. Lukes Regional Medical Center,  
Series 2005,  
Insured: FSA,  
LOC: Bayerische Landesbank  
3.560% 07/01/35 (a)     5,015,000       5,015,000    
Idaho Total             14,370,000    
Illinois – 8.3%  
IL ABN AMRO Munitops Certificate Trust  
Series 2002,  
Insured: MBIA,  
SPA: ABN AMRO Bank  
3.350% 12/01/10 (a)     22,345,000       22,345,000    
Series 2006:  
3.640% 06/01/14 (a)     20,000,000       20,000,000    
Insured: MBIA,  
SPA: ABN AMRO Bank  
3.580% 06/30/14 (a)     12,180,000       12,180,000    
IL Bolingbrook  
Series 2004,  
LOC: Harris Trust &
Savings Bank		  
3.630% 12/01/29 (a)     22,575,000       22,575,000    
IL Chicago Board of Education  
Series 2004 E,  
Insured: FSA  
3.610% 03/01/15 (a)     6,635,000       6,635,000    

 

    Par ($)   Value ($)  
Series 2005 D-2,  
Insured: CIFG,  
LOC: DEPFA Bank PLC  
3.580% 03/01/36 (a)     26,440,000       26,440,000    
Series 2005 Z-8,  
Insured: FGIC,  
LIQ FAC: Goldman Sachs  
3.480% 10/28/25 (a)     8,070,000       8,070,000    
IL Chicago Metropolitan Water
Reclamation District Greater Chicago		  
Series 2006,  
LIQ FAC: Goldman Sachs  
3.450% 12/01/35 (a)     11,125,000       11,125,000    
IL Chicago O'Hare International
Airport Revenue		  
Series 2005 C,  
Insured: CIFG  
3.410% 01/01/35 (a)     44,550,000       44,550,000    
IL Chicago Tax Increment  
Series 1997 A,  
LOC: Northern Trust Co.  
3.500% 12/01/11 (a)     1,030,000       1,030,000    
Series 1997 B,  
LOC: Northern Trust Co.  
3.500% 12/01/14 (a)     1,600,000       1,600,000    
IL Chicago  
Series 2004 B-24,  
LOC: Wachovia Bank N.A.  
3.450% 01/01/25 (a)     4,060,000       4,060,000    
Series 2004,  
Insured: FSA  
3.440% 01/01/29 (a)     10,495,000       10,495,000    
Series 2005 Z-10,  
LIQ FAC: Goldman Sachs  
3.480% 06/29/29 (a)     3,165,000       3,165,000    
IL Crestwood  
Series 2003,  
LOC: Fifth Third Bank  
3.580% 09/01/28 (a)     8,055,000       8,055,000    
IL DeKalb Tax Increment Revenue  
Series 2003,  
LOC: Northern Trust Co.  
3.480% 01/01/13 (a)     3,790,000       3,790,000    
IL Development Finance Authority  
American Academy of Dermatology,  
Series 2001,  
LOC: American National
Bank & Trust		  
3.540% 04/01/21 (a)     5,150,000       5,150,000    

 

See Accompanying Notes to Financial Statements.

82


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
British Home for Retirement,  
Series 2001,  
LOC: LaSalle Bank N.A.  
3.450% 11/01/27 (a)     8,360,000       8,360,000    
Chicago Academy of Science,  
Series 1997,  
LOC: JPMorgan Chase Bank  
3.440% 01/01/31 (a)     2,120,000       2,120,000    
Community Action Partnership,  
Series 2004,  
LOC: U.S. Bank Trust N.A.  
3.440% 03/01/39 (a)     2,955,000       2,955,000    
Dominican University,  
Series 2006,  
LOC: JPMorgan Chase Bank  
3.480% 03/01/36 (a)     7,500,000       7,500,000    
Evangelical Retirement Homes,  
Series 2005 C,  
LOC: LaSalle Bank N.A.  
3.400% 02/15/37 (a)     20,700,000       20,700,000    
IIT Research Institute,  
Series 2004,  
LOC: Fifth Third Bank  
3.420% 10/01/34 (a)     7,320,000       7,320,000    
Jewish Federal Metropolitan
Chicago Project,		  
Series 2002,  
LOC: JPMorgan Chase Bank  
3.600% 09/01/32 (a)     85,000       85,000    
Little City Foundation Project,  
Series 1994,  
LOC: LaSalle Bank N.A.  
3.440% 02/01/19 (a)     4,080,000       4,080,000    
Lyric Opera Chicago,  
Series 1994,  
LOC: Northern Trust Co.,  
LOC: Harris Trust & Savings
Bank		  
3.480% 12/01/28 (a)     26,600,000       26,600,000    
Massachusetts Eye & Ear
Associates, Inc.,		  
Series 1992,  
LOC: LaSalle Bank N.A.  
3.450% 10/01/17 (a)     5,750,000       5,750,000    
Sinai Community Institute, Inc.,  
Series 1997,  
LOC: LaSalle Bank N.A.  
3.450% 03/01/22 (a)     5,000,000       5,000,000    
The Clare at Water Tower,  
Series 2005 D,  
LOC: LaSalle Bank N.A.  
3.410% 05/15/38 (a)     43,050,000       43,050,000    

 

    Par ($)   Value ($)  
Village Oak Park Residence Corp.,  
LOC: LaSalle Bank N.A.  
3.450% 07/01/41 (a)     3,675,000       3,675,000    
IL Educational Facilities Authority  
Beverly Arts Center,  
Series 2003,  
LOC: Fifth Third Bank  
3.600% 10/01/28 (a)     5,160,000       5,160,000    
St. Xavier University,  
Series 2002 A,  
LOC: LaSalle Bank N.A.  
3.450% 10/01/32 (a)     4,500,000       4,500,000    
IL Health Facilities Authority  
Glenkirk,  
Series 1997,  
LOC: Glenview State Bank,  
LOC: LaSalle National Bank  
3.450% 02/15/21 (a)     2,020,000       2,020,000    
IL Macon County  
Millikin University,  
Series 2001,  
LOC: National City Bank  
3.420% 10/01/31 (a)     700,000       700,000    
IL Marion Special Services Area No. 2  
Series 2002,  
LOC: U.S. Bank N.A.  
3.470% 01/01/22 (a)     6,920,000       6,920,000    
IL Metropolitan Pier & Exposition Authority  
Series 2005 Z-5,  
Insured: MBIA,  
LIQ FAC: Goldman Sachs  
3.480% 04/03/34 (a)     18,305,000       18,305,000    
Series 2005,  
Insured: MBIA  
3.480% 12/15/36 (a)     1,000,000       1,000,000    
IL Mount Morris Village Industrial Revenue  
Pinecrest Village,  
Series 2006,  
LOC: U.S. Bank N.A.  
3.460% 02/01/31 (a)     9,945,000       9,945,000    
IL Niles  
Notre Dame Homes for Boys,  
Series 2001,  
LOC: LaSalle Bank N.A.  
3.450% 03/01/31 (a)     5,900,000       5,900,000    

 

See Accompanying Notes to Financial Statements.

83


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
IL Northern Cook County Solid Waster Agency  
Series 2002 A,  
LOC: Northern Trust Co.  
3.440% 05/01/15 (a)     4,900,000       4,900,000    
IL Oak Forest  
Series 1989,  
LOC: Fifth Third Bank  
3.580% 07/01/24 (a)     18,900,000       18,900,000    
IL Peoria Heights Ltd. Obligation Revenue  
Series 2001,  
LOC: National City Bank  
3.470% 09/01/36 (a)     2,695,000       2,695,000    
IL Regional Transportation Authority  
Series 2006,  
Insured: MBIA,  
LIQ FAC: Wells Fargo Bank N.A.  
3.450% 07/01/28 (a)     4,790,000       4,790,000    
IL Schaumburg City  
Series 2004,  
Insured: FGIC,  
LIQ FAC: Citibank N.A.  
3.460% 12/01/41 (a)     5,000,000       5,000,000    
IL State  
Series 2003,  
Insured: FSA,  
LIQ FAC: Citigroup Global
Markets		  
3.450% 12/01/20 (a)     2,335,000       2,335,000    
Series 2004 445,  
3.450% 12/15/15 (a)     7,020,000       7,020,000    
Series 2004 563,  
Insured: AMBAC,  
LOC: JPMorgan Chase Bank  
3.450% 11/01/12 (a)     3,170,000       3,170,000    
IL Toll Highway Authority  
Toll Highway Revenue,  
Series 2005 R-4073,  
Insured: FSA,  
LIQ FAC: Citibank N.A.  
3.450% 01/01/23 (a)     3,705,000       3,705,000    
IL Will & Kendall Counties Community
Construction School District No. 202		  
Series 2003,  
Insured: FGIC,  
LIQ FAC: Citigroup Global
Markets		  
3.450% 01/01/23 (a)     5,435,000       5,435,000    
Illinois Total             460,860,000    

 

Indiana – 2.4%  
    Par ($)   Value ($)  
IN Angola Educational Facilities Revenue  
Tri-State University, Inc.,  
Series 2004,  
LOC: Fifth Third Bank  
3.600% 09/01/15 (a)     1,000,000       1,000,000    
IN Bond Bank  
Series 2003 II-R-2079,  
Insured: MBIA,  
LIQ FAC: Citigroup Global
Markets		  
3.450% 09/01/21 (a)     2,410,000       2,410,000    
Series 2004,  
Insured: AMBAC  
3.450% 02/01/12 (a)     5,430,000       5,430,000    
IN Dearborn County Economic Development Revenue  
Dearborn County Hospital,  
Series 2006,  
LOC: JPMorgan Chase Bank  
3.580% 04/01/36 (a)     15,000,000       15,000,000    
IN Development Finance Authority  
Indiana University Foundation,  
Series 1998,  
LOC: National City Bank  
3.480% 08/01/18 (a)     5,635,000       5,635,000    
Rehabilitation Center, Inc.,  
Series 2002,  
LOC: Old National Bank  
3.500% 07/01/17 (a)     1,890,000       1,890,000    
IN Dyer Redevelopment Authority  
Economic Development Lease
Rent Revenue,		  
Series 2005 PT-2721,  
Insured: CIFG,  
SPA: Merrill Lynch Capital
Services		  
3.450% 07/15/23 (a)     12,190,000       12,190,000    
IN Elkhart County  
Hubbard Hill Estates, Inc.,  
Series 2001,  
LOC: Fifth Third Bank  
3.600% 11/01/21 (a)     2,610,000       2,610,000    
IN Finance Authority  
University of Indiana,  
Series 2006,  
LOC: KeyBank N.A.  
3.430% 07/01/36 (a)     6,600,000       6,600,000    

 

See Accompanying Notes to Financial Statements.

84


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
IN Fort Wayne Economic Development Revenue  
St. Anne Home of Diocese,  
Series 1998,  
LOC: Fifth Third Bank  
3.440% 09/01/23 (a)     5,370,000       5,370,000    
IN Health & Educational Facility Finance Authority  
Porter Memorial Hospital,  
Series 2005 A,  
LOC: Fifth Third Bank  
3.580% 01/01/19 (a)     9,295,000       9,295,000    
IN Health Facility Financing Authority  
Ascension Health,  
Series 2001 A-1,  
3.820% 11/15/36 (a)     20,000,000       20,000,000    
Community Hospital of Indiana,  
Series 2005 B,  
LOC: National City Bank  
3.400% 05/01/35 (a)     4,000,000       4,000,000    
Southern Indiana Rehab Hospital,  
Series 2001,  
LOC: Bank One Kentucky  
3.480% 04/01/20 (a)     2,200,000       2,200,000    
IN Henry County Economic Development Revenue  
Henry County YMCA, Inc.,  
Series 2004,  
LOC: U.S. Bank N.A.  
3.470% 02/15/24 (a)     2,210,000       2,210,000    
IN Indianapolis Local Public Improvement Bond Bank  
Series 2005,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital
Services		  
3.480% 02/01/25 (a)     3,000,000       3,000,000    
IN Mount Vernon  
Pollution Control & Solid Waste
Disposal Revenue,		  
General Electric Co.,  
Series 2004,  
3.560% 12/01/14 (a)     15,600,000       15,600,000    
IN St. Joseph County Indiana Economic
Development Revenue		  
Brothers of the Holy Cross,  
Series 1997,  
LOC: Allied Irish Bank PLC  
3.430% 09/01/17 (a)     4,120,000       4,120,000    

 

    Par ($)   Value ($)  
IN Transportation Finance Authority  
Series 2004:  
Insured: FGIC,  
SPA: Wachovia Bank N.A.  
3.450% 06/01/28 (a)     5,000,000       5,000,000    
Insured: MBIA,  
SPA: Merrill Lynch Capital
Services		  
3.450% 06/01/09 (a)     3,835,000       3,835,000    
IN Winona Lake  
Grace Schools, Inc.,  
Series 2006,  
LOC: KeyBank N.A.  
3.440% 07/01/31 (a)     6,840,000       6,840,000    
Indiana Total             134,235,000    
Iowa – 0.2%  
IA Des Moines  
Series 2004,  
Insured: AMBAC  
3.450% 06/01/24 (a)     3,000,000       3,000,000    
IA Evansdale  
Series 2005,  
LOC: Wells Fargo Bank N.A.  
3.460% 09/01/30 (a)     5,000,000       5,000,000    
IA Higher Education Loan Authority  
American Institute of Business,  
Series 1998,  
LOC: Wells Fargo Bank N.A.  
3.500% 11/01/13 (a)     1,270,000       1,270,000    
Iowa Total             9,270,000    
Kansas – 0.3%  
KS Olathe Senior Living Facilities Revenue  
Series 2006 C1,  
LOC: LaSalle Bank N.A.  
3.410% 11/15/38 (a)     11,000,000       11,000,000    
KS Wichita City Hospital Revenue  
Series 2005,  
Insured: MBIA  
3.440% 10/01/10 (a)     7,155,000       7,155,000    
Kansas Total             18,155,000    

 

See Accompanying Notes to Financial Statements.

85


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

Kentucky – 2.6%  
    Par ($)   Value ($)  
KY Christian County Industrial Building Revenue  
Audubon Area Community
Services,		  
Series 2004,  
LOC: Branch Banking & Trust  
3.450% 01/01/29 (a)     1,700,000       1,700,000    
KY Economic Development Finance Authority  
Baptist Convalescent Center,  
Series 1999,  
LOC: Fifth Third Bank  
3.570% 12/01/19 (a)     4,300,000       4,300,000    
Baptist Healthcare System,  
Series 1999 B,  
Insured: MBIA,  
SPA: Bank One N.A.  
3.400% 08/15/31 (a)     22,530,000       22,530,000    
Goodwill Industries,  
Series 2003,  
LOC: Branch Banking & Trust  
3.450% 08/01/23 (a)     9,265,000       9,265,000    
KY Georgetown Industrial Building Revenue  
Georgetown College,  
Series 2006,  
LOC: Fifth Third Bank  
3.580% 11/15/29 (a)     10,000,000       10,000,000    
KY Housing Corp. Single Family Mortgage Revenue  
Series 2006,  
LIQ FAC: Landesbank
Hessen-Thuringen		  
3.460% 01/01/09 (a)     3,195,000       3,195,000    
KY Jefferson County  
Multi-Family Housing Revenue,  
Canter Chase Apartments
Project,		  
Series 2002,  
Insured: FHLMC  
3.470% 06/01/32 (a)     9,100,000       9,100,000    
KY Lexington Faye Urban County Government  
Roman Catholic Lexington:  
Series 2005 A,  
LOC: Fifth Third Bank  
3.600% 10/01/32 (a)     3,300,000       3,300,000    
Series 2005 B,  
LOC: Fifth Third Bank  
3.600% 10/01/32 (a)     4,735,000       4,735,000    

 

    Par ($)   Value ($)  
Series 2003 B,  
LOC: Fifth Third Bank  
3.600% 09/01/22 (a)     4,600,000       4,600,000    
KY Mayfield  
League of Cities Funding Trust,  
Series 1996,  
LOC: PNC Bank  
3.540% 07/01/26 (a)     3,660,000       3,660,000    
KY Morehead League of Cities Funding Trust  
Series 2004 A,  
LOC: U.S. Bank N.A.  
3.600% 06/01/34 (a)     5,220,000       5,220,000    
KY Property & Buildings Commission  
Series 2004,  
Insured: FSA  
3.450% 10/01/15 (a)     5,290,000       5,290,000    
KY Richmond City  
Series 2006 A,  
LOC: U.S. Bank N.A.  
3.600% 03/01/36 (a)     20,000,000       20,000,000    
KY Warren County Hospital Facility Revenue  
Bowling Green Warren County,  
Series 2001,  
LOC: Branch Banking & Trust  
3.450% 08/01/31 (a)     28,120,000       28,120,000    
KY Wilmore Industrial Building Revenue  
Series 2006,  
LOC: Regions Bank  
3.430% 08/01/31 (a)     8,100,000       8,100,000    
Kentucky Total             143,115,000    
Louisiana – 2.0%  
LA Jefferson Sales Tax District  
Series 2005,  
Insured: AMBAC  
3.200% 12/01/17 (a)(b)     5,130,000       5,130,000    
LA Local Government Environmental
Facilities & Community Development Authority		  
Series 2005,  
Insured: FSA,  
SPA: JPMorgan Chase Bank  
3.420% 10/01/26 (a)     19,500,000       19,500,000    
LA New Orleans Aviation Board  
Series 1993 B,  
Insured: MBIA,  
LOC: Dexia Credit Local  
3.550% 08/01/16 (a)     23,125,000       23,125,000    

 

See Accompanying Notes to Financial Statements.

86


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
LA Offshore Terminal Authority  
Loop, Inc.,  
Series 1999,  
LOC: JPMorgan Chase Bank  
3.410% 10/01/19 (a)     16,400,000       16,400,000    
LA Public Facilities Authority  
The Glen Retirement System,  
Series 2001,  
LOC: AmSouth Bank  
3.530% 09/01/16 (a)     3,045,000       3,045,000    
Tiger Athletic Foundation,  
Series 1999,  
LOC: Regions Bank  
3.420% 09/01/28 (a)     34,800,000       34,800,000    
LA State  
Series 2006 PT-3543,  
Insured: CIFG,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.450% 07/15/21 (a)     3,115,000       3,115,000    
LA Upper Pontalba Building Restoration Corp.  
Series 1996,  
LOC: Bank One N.A.  
3.650% 12/01/16 (a)     3,870,000       3,870,000    
Louisiana Total             108,985,000    
Maine – 0.2%  
ME Finance Authority  
Erskine Academy,  
Series 2004,  
LOC: KeyBank N.A.  
3.480% 12/01/20 (a)     1,965,000       1,965,000    
Kents Hill School,  
Series 2000,  
LOC: Allied Irish Bank PLC  
3.420% 07/01/30 (a)     5,385,000       5,385,000    
ME Health & Higher Educational Facilities Authority  
Series 2003,  
Insured: FSA  
3.450% 07/01/11 (a)     2,685,000       2,685,000    
Maine Total             10,035,000    
Maryland – 1.1%  
MD Anne Arundel  
West Capital Associates LP,  
Series 1985,  
LOC: SunTrust Bank  
3.560% 12/01/15 (a)     3,500,000       3,500,000    

 

    Par ($)   Value ($)  
MD Baltimore County Economic
Development Revenue		  
Torah Institution Baltimore,  
Series 2004,  
LOC: Branch Banking & Trust  
3.450% 07/01/24 (a)     3,745,000       3,745,000    
MD Carroll County  
Fairhaven, Inc.,  
Series 2004 B,  
LOC: LaSalle Bank N.A.  
3.400% 01/01/34 (a)     8,315,000       8,315,000    
MD Gaithersburg Economic
Development Revenue		  
Asbury Methodist Village, Inc.,  
Series 2004,  
LOC: KBC Bank N.V.  
3.420% 01/01/34 (a)     5,800,000       5,800,000    
MD Health & Higher Educational
Facilities Authority		  
Series 1985 A,  
LOC: JPMorgan Chase Bank  
3.400% 04/01/35 (a)     26,120,000       26,120,000    
MD State Community Development
Administration Multifamily
Housing Revenue		  
Series 2006 M,  
3.670% 09/12/07     13,000,000       13,000,000    
Maryland Total             60,480,000    
Massachusetts – 0.9%  
MA Development Finance Agency  
Young Men's Christian
Association of the North Shore,		  
Series 2002,  
LOC: KeyBank N.A.  
3.480% 11/01/22 (a)     5,585,000       5,585,000    
MA Health & Educational Facilities Authority  
Series 2004 PT-911,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital
Services		  
3.700% 03/25/11 (a)(b)     6,175,000       6,175,000    
Series 2006,  
LOC: Allied Irish Bank PLC  
3.410% 05/01/36 (a)     1,365,000       1,365,000    
MA State  
Series 1997 B,  
SPA: Landesbank
Hessen-Thuringen		  
3.380% 08/01/15 (a)     28,200,000       28,200,000    

 

See Accompanying Notes to Financial Statements.

87


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2004,  
SPA: Dexia Credit Local  
3.680% 08/01/16 (a)     8,225,000       8,225,000    
Massachusetts Total             49,550,000    
Michigan – 9.2%  
MI ABN AMRO Munitops Certificates Trust  
Series 2002,  
Insured: FGIC,  
LOC: ABN AMRO Bank  
3.320% 11/01/10 (a)     8,000,000       8,000,000    
Series 2003-3,  
Insured: MBIA,  
SPA: ABN AMRO Bank  
3.330% 01/01/11 (a)     28,915,000       28,915,000    
MI Ann Arbor Economic Development  
Ann Arbor YMCA,  
Series 2004,  
LOC: Fifth Third Bank  
3.580% 04/01/34 (a)     1,900,000       1,900,000    
MI Building Authority  
Series 2003,  
Insured: MBIA  
3.450% 10/15/18 (a)     4,155,000       4,155,000    
MI Detroit School District  
Series 2006:  
4.500% 08/21/07     40,000,000       40,333,268    
Insured: FGIC,  
LIQ FAC: Citigroup Financial
Products		  
3.450% 05/01/33 (a)     3,480,000       3,480,000    
MI Detroit Water Supply Systems  
Series 2001 C,  
Insured: FGIC,  
SPA: DEPFA Bank PLC  
3.400% 07/01/29 (a)     62,995,000       62,995,000    
Series 2006 B,  
Insured: FSA,  
SPA: DEPFA Bank PLC  
3.410% 07/01/36 (a)     40,000,000       40,000,000    
MI Fremont Hospital Finance Authority  
Gerber Memorial Health Services,  
Series 2002,  
LOC: Fifth Third Bank  
3.600% 11/01/27 (a)     5,245,000       5,245,000    

 

    Par ($)   Value ($)  
MI Grand Rapids Public Schools  
Series 2004,  
LOC: Fifth Third Bank  
3.600% 05/01/23 (a)     720,000       720,000    
MI Grand Valley  
State University Revenue:  
Series 2001 B,  
Insured: FGIC  
3.400% 06/01/27 (a)     20,900,000       20,900,000    
Series 2003,  
Insured: XLCA  
3.400% 09/01/28 (a)     17,420,000       17,420,000    
MI Higher Education Facilities Authority  
Davenport University,  
Series 2004,  
LOC: Fifth Third Bank  
3.580% 06/01/34 (a)     14,550,000       14,550,000    
Hope College:  
Series 2002 B,  
LOC: Fifth Third Bank  
3.410% 04/01/32 (a)     9,355,000       9,355,000    
Series 2004,  
LOC: Bank One N.A  
3.420% 04/01/34 (a)     9,480,000       9,480,000    
MI Hospital Finance Authority  
Health Alliance Plan,  
Series 2006 C,  
LOC: Charter One Bank  
3.400% 11/15/40 (a)     40,650,000       40,650,000    
Series 2003,  
LOC: Fifth Third Bank  
3.450% 12/01/32 (a)     8,100,000       8,100,000    
MI Housing Development Authority  
Series 2006 C,  
SPA: DEPFA Bank PLC  
3.470% 12/01/37 (a)     47,190,000       47,190,000    
MI Municipal Bond Authority  
Series 2006 B-2,  
LOC: Bank of Nova Scotia  
4.500% 08/20/07     31,900,000       32,143,931    
MI Oakland County Economic
Development Corp.		  
Pontiac Vision Schools,  
Series 2000,  
LOC: Allied Irish Banks PLC  
3.440% 08/01/20 (a)     7,760,000       7,760,000    

 

See Accompanying Notes to Financial Statements.

88


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
MI Public Educational Facility Authority  
West Michigan Academy,  
Series 2003,  
LOC: Fifth Third Bank  
3.600% 12/01/18 (a)     2,215,000       2,215,000    
MI State Hospital Finance Authority  
Series 2000 E,  
Insured: AMBAC,  
SPA: Bank One N.A.  
3.420% 12/01/30 (a)     32,050,000       32,050,000    
MI State  
3.650% 10/16/06     35,000,000       35,000,000    
Series 2005 A,  
4.500% 09/29/06     8,500,000       8,505,487    
MI Strategic Fund Ltd.  
Environmental Research
Institute:		  
Series 2000 A,  
3.540% 10/01/15 (a)     5,370,000       5,370,000    
Series 2000 B,  
3.540% 10/01/25 (a)     2,265,000       2,265,000    
Grand Rapids Art Museum,  
Series 2006 A,  
LOC: LaSalle Bank N.A.  
3.430% 05/01/41 (a)     10,000,000       10,000,000    
MI West Shore Medical Center  
Series 2001,  
LOC: National City Bank  
3.460% 04/01/22 (a)     10,510,000       10,510,000    
Michigan Total             509,207,686    
Minnesota – 0.1%  
MN Community Development Agency  
Series 1995 A,  
LOC: U.S. Bank N.A.  
3.460% 10/01/24 (a)     4,750,000       4,750,000    
MN Midwest Consortium of Municipal Utilities  
Series 2005 B,  
LOC: U.S. Bank N.A.  
3.400% 10/01/35 (a)     1,750,000       1,750,000    
MN Southern Municipal Power Agency  
Series 2005,  
Insured: MBIA,  
SPA: Merrill Lynch Capital Services  
3.480% 01/01/27 (a)     1,000,000       1,000,000    
Minnesota Total             7,500,000    

 

Mississippi – 0.8%  
    Par ($)   Value ($)  
MS Biloxi Housing Authority
Multifamily Housing Revenue		  
Bayview Place LLC,  
Series 2005,  
3.400% 08/01/07     8,750,000       8,707,042    
MS Business Finance Corp.  
Belhaven College,  
Series 2004,  
LOC: First Tennessee Bank  
3.600% 07/01/24 (a)     4,600,000       4,600,000    
Gulf Ship LLC,  
Series 2006,  
LOC: Regions Bank  
3.420% 06/01/26 (a)     15,000,000       15,000,000    
Mississippi College,  
Series 2003,  
LOC: AmSouth Bank  
3.530% 07/01/23 (a)     11,400,000       11,400,000    
MS Jackson County Pollution Control Revenue  
Chevron Corp.:  
Series 1992,  
3.410% 12/01/16 (a)     1,750,000       1,750,000    
Series 1993,  
3.410% 06/01/23 (a)     2,675,000       2,675,000    
Mississippi Total             44,132,042    
Missouri – 2.3%  
MO Clay County Public School District No. 53  
Series 2004,  
Insured: FSA  
3.450% 03/01/12 (a)     6,060,000       6,060,000    
MO Desloge Industrial Development
Authority		  
National Health Corp.,  
Series 1989,  
LOC: Regions Bank  
3.700% 12/01/10 (a)     1,370,000       1,370,000    
MO Development Finance Board  
Southeast Missouri State
University,		  
Series 2003 B,  
LOC: U.S. Bank N.A.  
3.420% 10/01/23 (a)     18,585,000       18,585,000    

 

See Accompanying Notes to Financial Statements.

89


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
MO Dunklin County Industrial
Development Authority		  
National Health Corp.,  
Series 1989,  
LOC: Regions Bank  
3.700% 12/01/10 (a)     1,355,000       1,355,000    
MO Health & Educational Facilities
Authority		  
Lutheran Senior Services,  
Series 2000,  
LOC: U.S. Bank N.A.  
3.400% 02/01/31 (a)     12,940,000       12,940,000    
MO Joint Municipal Electric Utility
Commission		  
Series 2006,  
Insured: MBIA,  
SPA: Merrill Lynch Capital
Services		  
3.450% 01/01/19 (a)     6,390,000       6,390,000    
MO Kansas City Industrial
Development Authority		  
Multi-Family Housing Revenue:  
Ethans Apartments Associates,  
Series 2004,  
LOC: Citibank N.A.  
3.440% 02/01/39 (a)     22,000,000       22,000,000    
Timberlane Village Associates,  
Series 1986,  
LOC: UBS AG  
3.480% 06/01/27 (a)     18,400,000       18,400,000    
MO Platte County Industrial
Development Authority		  
Series 1996,  
Insured: FHLMC  
3.410% 04/01/28 (a)     8,195,000       8,195,000    
MO SCA Tax Exempt Trust  
Series 2005 PT-2521,  
Insured: FSA,  
LOC: Merrill Lynch Capital
Services		  
3.460% 01/01/30 (a)     8,335,000       8,335,000    
MO St. Louis Industrial Development
Authority		  
Series 1989,  
LOC: PNC Bank N.A.  
3.430% 05/01/09 (a)     5,000,000       5,000,000    

 

    Par ($)   Value ($)  
MO University  
Series 2002 A,  
3.580% 11/01/32 (a)     15,850,000       15,850,000    
Missouri Total             124,480,000    
Nebraska – 0.1%  
NE Elementary & Secondary
School Finance Authority		  
Wider Omaha Lutheran School
Association,		  
Series 2004 B,  
LOC: PNC Bank N.A.  
3.600% 09/01/29 (a)     3,950,000       3,950,000    
Nebraska Total             3,950,000    
Nevada – 1.7%  
NV Carson City Hospital Revenue  
Carson-Tahoe Hospital,  
Series 2003 B,  
LOC: U.S. Bank N.A.  
3.400% 09/01/33 (a)     19,500,000       19,500,000    
NV Clark County School District  
Series 2001 A,  
Insured: FSA,  
SPA: State Street
Bank & Trust Co.		  
3.500% 06/15/21 (a)     5,165,000       5,165,000    
Series 2004,  
Insured: MBIA  
3.450% 06/15/23 (a)     6,225,000       6,225,000    
NV Clark County  
Airport Revenue,  
Series 2005 D-2,  
Insured: FGIC  
3.480% 07/01/40 (a)     13,000,000       13,000,000    
NV Eclipse Funding Trust  
Series 2006,  
Insured: AMBAC,  
LIQ FAC: U.S. Bank N.A.  
3.440% 07/01/35 (a)     13,140,000       13,140,000    
NV Henderson  
Series 2004,  
Insured: FGIC  
3.450% 06/01/24 (a)     8,595,000       8,595,000    

 

See Accompanying Notes to Financial Statements.

90


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
NV Las Vegas Valley Water District  
Series 2006,  
Insured: FGIC,  
LIQ FAC: JPMorgan Chase
Bank & Co.		  
3.450% 06/01/13 (a)     3,300,000       3,300,000    
NV Reno Sales Tax Revenue  
Series 2006 3G,  
LIQ FAC: Goldman Sachs  
3.470% 06/01/21 (a)     5,825,000       5,825,000    
NV System of Higher Education  
Series 2005,  
Insured: AMBAC,  
LIQ FAC: Deutsche Bank A.G.  
3.440% 07/01/30 (a)     7,540,000       7,540,000    
NV Tuckee Meadows Water Authority  
3.600% 02/06/07     8,750,000       8,750,000    
NV Washoe County School District  
Series 2003,  
Insured: FGIC,  
LIQ FAC: Citigroup Global
Markets		  
3.450% 06/01/20 (a)     3,965,000       3,965,000    
Nevada Total             95,005,000    
New Hampshire – 0.1%  
NH Health & Education Facilities Authority  
Series 2004 A,  
LOC: Citizens Bank  
3.470% 12/01/34 (a)     5,000,000       5,000,000    
NH Manchester Housing Authority  
Series 1990 A,  
LOC: PNC Bank N.A.  
3.450% 06/15/15 (a)     1,800,000       1,800,000    
New Hampshire Total             6,800,000    
New Jersey – 0.7%  
NJ Economic Development Authority  
Series 2004 502,  
Insured: MBIA,  
LIQ FAC: PNC Bank N.A.  
3.450% 01/01/22 (a)     10,785,000       10,785,000    
NJ Municipal Securities Trust Certificates  
Series 2006 A,  
Insured: AMBAC,  
LIQ FAC: Bear Stearns Capital Markets  
3.520% 11/07/30 (a)     9,805,000       9,805,000    

 

    Par ($)   Value ($)  
NJ State  
Series 2005,  
Insured: AMBAC,  
SPA: Dexia Credit Local  
3.680% 07/15/19 (a)     15,165,000       15,165,000    
New Jersey Total             35,755,000    
New Mexico – 0.7%  
NM Farmington Hospital Revenue  
San Juan Regional Medical
Center Project,		  
Series 2004-B,  
LOC: Bank of Nova Scotia  
3.440% 06/01/28 (a)     5,000,000       5,000,000    
NM Finance Authority  
Series 2004,  
Insured: MBIA  
3.450% 12/15/11 (a)     19,610,000       19,610,000    
NM Hospital Equipment Loan Council  
Presbyterian Healthcare Services,  
Series 2005 B,  
Insured: FSA,  
SPA: Citibank N.A.  
3.420% 08/01/30 (a)     16,045,000       16,045,000    
New Mexico Total             40,655,000    
New York – 7.0%  
NY ABN AMRO Munitops Certificates Trust  
Series 2004,  
Insured: FSA  
3.350% 01/15/12 (a)     11,190,000       11,190,000    
NY Forest City New Rochelle
Revenue Certificates of Trust		  
FC Washington-Lincoln LLC,  
Series 2003 C,  
LOC: Wachovia Bank N.A.  
3.450% 06/01/11 (a)     4,190,000       4,190,000    
NY Local Government Assistance Corp.  
Series 2000,  
Insured: FGIC,  
LIQ FAC: Lloyds TSB Bank PLC  
3.250% 04/01/10 (a)(b)     2,600,000       2,600,000    
NY Metropolitan Transportation Authority  
Series 2003,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital
Services		  
3.440% 11/15/10 (a)     3,765,000       3,765,000    

 

See Accompanying Notes to Financial Statements.

91


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2005 G,  
LOC: BNP Paribas  
3.570% 11/01/26 (a)     10,645,000       10,645,000    
Series 2006 A,  
Insured: AMBAC,  
LIQ FAC: Citibank N.A.  
3.670% 11/15/30 (a)     13,360,000       13,360,000    
Series 2006 B26,  
Insured: AMBAC,  
SPA: Wachovia Bank N.A.  
3.440% 11/15/24 (a)     9,990,000       9,990,000    
NY New York City Housing Development Corp.  
RBNB 20 Owner LLC,  
Series 2006 A,  
LOC: Landesbank
Hessen-Thuringen		  
3.420% 06/01/39 (a)     43,840,000       43,839,124    
RBNB Wall Street Owner LLC,  
Series 2005 A,  
LOC: Landesbank
Hessen-Thuringen		  
3.400% 12/01/36 (a)     28,140,000       28,140,000    
NY New York City Municipal Water
Finance Authority		  
Series 1992 C,  
Insured: FGIC  
3.560% 06/15/22 (a)     11,300,000       11,300,000    
Series 1993 C,  
Insured: FGIC  
3.560% 06/15/23 (a)     22,800,000       22,800,000    
Series 1995 A,  
Insured: FGIC  
3.540% 06/15/25 (a)     23,850,000       23,850,000    
NY New York City Transitional Finance Authority  
Series 2002 3B,  
SPA: Citigroup Global Markets  
3.550% 11/01/22 (a)     77,745,000       77,745,000    
Series 2002-2A,  
LIQ FAC: Dexia Credit Local  
3.540% 11/01/22 (a)     44,845,000       44,845,000    
NY New York City  
Series 2001 A-6,  
Insured: FSA,  
SPA: Dexia Credit Local  
3.540% 11/01/26 (a)     22,000,000       22,000,000    
Series 2004 C-3,  
Insured: CIFG,  
SPA: DEPFA Bank PLC  
3.400% 08/15/29 (a)     10,915,000       10,915,000    

 

    Par ($)   Value ($)  
NY Tobacco Settlement Financing
Authority		  
Series 2006,  
SPA: Merrill Lynch Capital
Services		  
3.670% 06/01/20 (a)     45,855,000       45,855,000    
New York Total             387,029,124    
North Carolina – 4.0%  
NC Capital Facilities Finance Agency  
Educational Facilities Revenue:  
Barton College,  
Series 2001,  
LOC: Branch Banking &
Trust Co.		  
3.450% 07/01/19 (a)     5,100,000       5,100,000    
Campbell University,  
Series 2004,  
LOC: Branch Banking &
Trust Co.		  
3.450% 10/01/24 (a)     5,600,000       5,600,000    
The Raleigh School,  
Series 2006,  
LOC: Branch Banking &
Trust Co.		  
3.450% 09/01/31 (a)     4,000,000       4,000,000    
NC Charlotte Housing Authority  
Multi-Family Housing Revenue:  
Charlotte Oak Park LLC,  
Series 2005,  
LOC: Wachovia Bank N.A.  
3.430% 09/01/35 (a)     7,740,000       7,740,000    
Charlotte Stonehaven LLC,  
Series 2005,  
LOC: Wachovia Bank N.A.  
3.430% 09/01/35 (a)     9,475,000       9,475,000    
NC Cleveland County Family YMCA, Inc.  
Series 1998,  
LOC: Branch Banking &
Trust Co.		  
3.450% 08/01/18 (a)     2,110,000       2,110,000    
NC Forsyth County Industrial Facilities &
Pollution Control Financing Authority		  
YMCA of Winston-Salem,  
Series 2005,  
LOC: Branch Banking &
Trust Co.		  
3.450% 12/01/30 (a)     10,250,000       10,250,000    

 

See Accompanying Notes to Financial Statements.

92


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
NC Guilford County Industrial Facilities &
Pollution Control Financing Authority		  
YMCA of Greensboro, Inc.,  
Series 2002,  
LOC: Branch Banking &
Trust Co.		  
3.450% 02/01/23 (a)     2,660,000       2,660,000    
NC Henderson County Hospital Revenue  
Series 2001,  
LOC: Branch Banking &
Trust Co.		  
3.450% 10/01/21 (a)     13,305,000       13,305,000    
NC Mecklenburg County  
Series 2004 B,  
SPA: Landesbank
Hessen-Thuringen		  
3.390% 02/01/24 (a)     59,175,000       59,175,000    
Series 2006 A,  
SPA: DEPFA Bank PLC  
3.380% 02/01/26 (a)     22,785,000       22,785,000    
NC Medical Care Commission  
Aldersgate United Retirement
Community,		  
Series 2001,  
LOC: Branch Banking & Trust  
3.530% 01/01/31 (a)     10,070,000       10,070,000    
Carolina Meadows, Inc.,  
Series 2004,  
LOC: Allied Irish Bank PLC  
3.420% 12/01/34 (a)     5,110,000       5,110,000    
J. Arthur Dosher Memorial
Hospital,		  
Series 1998,  
LOC: Branch Banking &
Trust Co.		  
3.450% 05/01/18 (a)     2,240,000       2,240,000    
Rutherford Hospital, Inc.,  
Series 2001,  
LOC: Branch Banking &
Trust Co.		  
3.450% 09/01/21 (a)     3,640,000       3,640,000    
Southeastern Regional Medical
Center,		  
LOC: Branch Banking & Trust  
3.450% 06/01/37 (a)     3,250,000       3,250,000    
United Methodist Retirement
Homes,		  
Series 2005,  
LOC: Branch Banking &
Trust Co.		  
3.450% 10/01/35 (a)     5,000,000       5,000,000    

 

    Par ($)   Value ($)  
Well-Spring Retirement
Community,		  
Series 2003,  
LOC: Allied Irish Bank PLC  
3.420% 01/01/21 (a)     9,100,000       9,100,000    
Westcare, Inc.,  
Series 2002 A,  
LOC: Branch Banking &
Trust Co.		  
3.450% 09/01/22 (a)     9,300,000       9,300,000    
NC Wake County  
Series 2004 B,  
SPA: Landesbank
Hessen-Thuringen		  
3.380% 04/01/21 (a)     33,250,000       33,250,000    
North Carolina Total             223,160,000    
North Dakota – 0.4%  
ND Grand Forks Health Care Facilities Revenue  
Series 2004,  
Insured: MBIA:  
SPA: Landesbank
Hessen-Thuringen		  
3.450% 07/21/09 (a)     5,845,000       5,845,000    
SPA: Merrill Lynch Capital
Services		  
3.700% 12/01/24 (a)(b)     15,510,000       15,510,000    
North Dakota Total             21,355,000    
Ohio – 6.1%  
OH Akron Bath Copley Township Hospital District  
Summa Health System,  
Series 2004 B,  
LOC: Bank One N.A.  
3.420% 11/01/34 (a)     39,660,000       39,660,000    
OH Clark County  
Ohio Masonic Home,  
Series 1999,  
Insured: AMBAC,  
SPA: KeyBank N.A.  
3.440% 10/01/25 (a)     6,000,000       6,000,000    
OH Cleveland Cuyahoga County Port Authority  
Cleveland Museum of Art,  
Series 2005 A,  
3.400% 10/01/40 (a)     5,000,000       5,000,000    
Park Synagogue,  
Series 2006,  
LOC: U.S. Bank N.A.  
3.410% 01/01/31 (a)     9,995,000       9,995,000    

 

See Accompanying Notes to Financial Statements.

93


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
OH Columbus Regional Airport Authority  
Series 2004,  
LOC: U.S. Bank N.A.  
3.430% 03/01/34 (a)     24,750,000       24,750,000    
Series 2005,  
LOC: U.S. Bank N.A.  
3.430% 07/01/35 (a)     33,275,000       33,275,000    
OH County of Lucas  
Series 2002,  
LOC: Fifth Third Bank  
3.580% 10/01/21 (a)     9,200,000       9,200,000    
OH Cuyahoga County Continuing Care
Facilities Revenue		  
Eliza Jennings, Inc.,  
Series 1999,  
LOC: LaSalle Bank N.A.  
3.400% 02/01/29 (a)     9,000,000       9,000,000    
OH Cuyahoga County Health Care
Facilities Revenue		  
A.M. McGregor Home,  
Series 2001,  
LOC: KeyBank N.A.  
3.430% 01/01/32 (a)     4,615,000       4,615,000    
OH Franklin County Health Care
Facilities Revenue		  
Traditions Healthcare,  
Series 2005,  
Insured: AMBAC,  
SPA: National City Bank  
3.430% 06/01/30 (a)     20,835,000       20,835,000    
OH Franklin County Hospital Revenue  
Children's Hospital,  
Series 2003,  
Insured: AMBAC,  
LOC: National City Bank  
3.400% 11/01/33 (a)     11,000,000       11,000,000    
Series 2002,  
Insured: AMBAC,  
LOC: National City Bank  
3.400% 11/01/25 (a)     7,305,000       7,305,000    
OH Hamilton County Health Care
Facilities Revenue		  
Episcopal Retirement
Homes, Inc.,		  
Series 2005 A,  
LOC: KeyBank N.A.  
3.410% 06/01/35 (a)     6,485,000       6,485,000    

 

    Par ($)   Value ($)  
OH Higher Educational Facility Commission  
Series 2003,  
LOC: Fifth Third Bank  
3.410% 09/01/30 (a)     12,355,000       12,355,000    
OH Highland County Hospital Joint Township  
Series 2004,  
LOC: Fifth Third Bank  
3.600% 08/01/24 (a)     1,625,000       1,625,000    
OH Jackson Local School District
Stark & Summit Counties		  
Series 2004,  
Insured: FGIC  
3.440% 12/01/24 (a)     3,970,000       3,970,000    
OH Licking County Health Care
Facilities Revenue		  
Kendal at Granville,  
Series 2003,  
LOC: Bank of Scotland  
3.400% 11/01/33 (a)     6,600,000       6,600,000    
OH Lorain County Hospital Revenue  
Series 2005,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.400% 11/01/21 (a)     45,000,000       45,000,000    
OH Mahoning County Hospital Facilities Revenue  
Forum Health Obligation Group,  
Series 1997 B,  
Insured: MBIA,  
SPA: JPMorgan Chase Bank  
3.420% 12/01/28 (a)     14,100,000       14,100,000    
Series 2002 B,  
LOC: Fifth Third Bank  
3.430% 12/01/27 (a)     6,595,000       6,595,000    
OH Middleburg Heights Hospital Revenue  
Series 1997,  
LOC: Fifth Third Bank  
3.410% 08/15/22 (a)     5,015,000       5,015,000    
OH Montgomery County Economic
Development Revenue		  
Series 1996,  
LOC: National City Bank  
3.530% 05/01/26 (a)     8,000,000       8,000,000    
OH Muskingum County Hospital
Facilities Revenue		  
Genesis Healthcare System,  
Series 2000,  
LOC: National City Bank  
3.420% 12/01/20 (a)     13,670,000       13,670,000    

 

See Accompanying Notes to Financial Statements.

94


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
OH Parma City  
Parma Community General
Hospital,		  
Series 2006 C,  
LOC: JPMorgan Chase Bank  
3.400% 11/01/30 (a)     10,510,000       10,510,000    
OH Sandusky County Hospital
Facility Revenue		  
Memorial Hospital,  
Series 2006,  
LOC: Fifth Third Bank  
3.440% 02/01/30 (a)     18,000,000       18,000,000    
OH Summit County Port Authority  
Series 2005,  
LOC: National City Bank  
3.470% 10/01/23 (a)     4,740,000       4,740,000    
OH Warren County Economic
Development Revenue		  
Ralph J. Stolle Countryside,  
Series 2000,  
LOC: Fifth Third Bank  
3.600% 08/01/20 (a)     900,000       900,000    
Ohio Total             338,200,000    
Oklahoma – 0.3%  
OK Industries Authority  
Amateur Softball Association,  
Series 2002,  
LOC: Bank One Oklahoma N.A.  
3.650% 06/01/14 (a)     1,140,000       1,140,000    
Integris Baptist Medical Center,  
Series 1999 B,  
Insured: MBIA,  
SPA: JPMorgan Chase Bank  
3.600% 08/15/29 (a)     17,335,000       17,335,000    
Oklahoma Total             18,475,000    
Oregon – 0.3%  
OR Homeowner Revenue  
Series 2006,  
SPA: Merrill Lynch Capital Services  
3.460% 05/01/10 (a)     14,255,000       14,255,000    
Oregon Total             14,255,000    

 

Pennsylvania – 6.4%  
    Par ($)   Value ($)  
PA Allegheny County Higher Education
Building Authority		  
Carnegie Mellon University,  
Series 1998,  
SPA: Landesbank
Hessen-Thuringen		  
3.500% 12/01/33 (a)     21,650,000       21,650,000    
PA Allegheny County Hospital
Development Authority		  
Childrens Home Pittsburgh:  
Series 2006 A,  
LOC: PNC Bank N.A.  
3.430% 06/01/09 (a)     5,000,000       5,000,000    
Series 2006 B,  
LOC: PNA Bank N.A.  
3.430% 06/01/35 (a)     9,000,000       9,000,000    
Jefferson Regional Medical Center,  
Series 2006 A,  
LOC: PNC Bank N.A.  
3.430% 05/01/26 (a)     22,000,000       22,000,000    
University of Pittsburgh
Medical Center:		  
Series 2005 B-1,  
3.530% 12/01/16 (a)     13,100,000       13,100,000    
Series 2005 B-2,  
3.530% 12/01/35 (a)     21,900,000       21,900,000    
PA Allegheny County Industrial
Development Revenue		  
United Jewish Federation,  
Series 1995 B,  
LOC: PNC Bank N.A.  
3.430% 10/01/25 (a)     5,575,000       5,575,000    
PA Allegheny County Redevelopment Authority  
Series 2001 A,  
LOC: National City Bank  
3.470% 11/01/19 (a)     2,700,000       2,700,000    
PA Chartiers Valley Industrial & Commercial
Development Authority		  
Asbury Villas:  
Series 2000 A,  
LOC: Fifth Third Bank  
3.420% 12/01/26 (a)     4,570,000       4,570,000    
Series 2000 B,  
LOC: Fifth Third Bank  
3.420% 12/01/30 (a)     4,440,000       4,440,000    

 

See Accompanying Notes to Financial Statements.

95


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
PA Chester County Industrial
Development Authority		  
Archdiocese of Philadelphia,  
Series 2001,  
LOC: Wachovia Bank N.A.  
3.500% 07/01/31 (a)     21,190,000       21,190,000    
Malvern Preparatory School,  
Series 2001,  
LOC: Wachovia Bank N.A.  
3.410% 04/01/31 (a)     8,450,000       8,450,000    
PA Delaware County Industrial
Development Authority		  
United Parcel Service,  
Series 1985,  
3.540% 12/01/15 (a)     4,000,000       4,000,000    
PA Delaware Valley Regional
Financial Authority		  
Series 2004,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital
Services		  
3.700% 07/01/27 (a)(b)     4,995,000       4,995,000    
PA Emmaus General Authority  
Series 1989 -h19,  
LOC: DEPFA Bank PLC  
3.430% 03/01/24 (a)     15,000,000       15,000,000    
PA Harrisburg Authority  
Series 2001 D,  
Insured: FSA,  
SPA: Dexia Credit Local  
3.460% 03/01/34 (a)     1,840,000       1,840,000    
Series 2002 B,  
Insured: FSA,  
SPA: Dexia Credit Local  
3.460% 03/01/34 (a)     11,270,000       11,270,000    
PA Higher Educational Facilities
Authority		  
Gannon University,  
Series 2003 L1,  
LOC: PNC Bank N.A.  
3.430% 05/01/15 (a)     4,000,000       4,000,000    
Kings College,  
Series 2003 L2,  
LOC: PNC Bank N.A.  
3.430% 05/01/18 (a)     4,155,000       4,155,000    
Series 2005,  
LOC: Sovereign Bank  
3.440% 11/01/36 (a)     8,000,000       8,000,000    

 

    Par ($)   Value ($)  
Student Association, Inc.,  
Series 2006 A,  
LOC: Citizens Bank of
Pennsylvania		  
3.420% 07/01/38 (a)     34,900,000       34,900,000    
PA Lackawanna County  
Series 2006 A,  
LOC: PNC Bank N.A.  
3.430% 09/01/29 (a)     20,000,000       20,000,000    
PA Lehigh County General Purpose Authority  
Series 2003,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital
Services		  
3.440% 07/01/18 (a)     8,610,000       8,610,000    
PA Luzerne County Industrial
Development Authority		  
Series 2005,  
LOC: PNC Bank N.A.  
3.430% 11/01/26 (a)     10,500,000       10,500,000    
PA Montgomery County Industrial
Development Authority		  
Series 1987,  
LOC: PNC Bank N.A.  
3.430% 09/01/06 (a)     5,000,000       5,000,000    
PA Philadelphia Authority for
Industrial Development		  
Newcourtland Elder Services,  
Series 2003,  
LOC: PNC Bank N.A.  
3.500% 03/01/27 (a)     38,905,000       38,905,000    
PA Philadelphia  
Series 2006,  
Insured: CIFG,  
LIQ FAC: Bayerische
Landesbank		  
3.440% 08/01/22 (a)     10,630,000       10,630,000    
PA Turnpike Commission  
Series 2005 B,  
Insured: FSA,  
SPA: JPMorgan Chase Bank  
3.400% 07/15/41 (a)     18,785,000       18,785,000    
PA Wilkinsburg Municipal Authority  
Monroeville Christian,  
Series 2006,  
LOC: Citizens Bank N.A.  
3.430% 03/01/27 (a)     11,100,000       11,100,000    
Pennsylvania Total             351,265,000    

 

See Accompanying Notes to Financial Statements.

96


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

Puerto Rico – 0.0%  
    Par ($)   Value ($)  
PR Commonwealth of Puerto Rico
Infrastructure Financing Authority		  
Series 2005 Z-6,  
Insured: FGIC,  
LIQ FAC: Goldman Sachs  
3.470% 06/26/37 (a)     1,975,000       1,975,000    
Puerto Rico Total             1,975,000    
South Carolina – 2.0%  
SC ABN AMRO Munitops Certificates Trust  
Series 2003,  
Insured: FSA  
3.340% 03/01/11 (a)     23,515,000       23,515,000    
SC Cherokee County Industrial
Development Revenue		  
Newark Electronics Corp.,  
Series 1985,  
LOC: LaSalle Bank N.A.  
3.450% 12/01/15 (a)     6,500,000       6,500,000    
SC Housing Finance & Development
Authority		  
Mid-America Apartments LP,  
Series 2005,  
Insured: FNMA  
3.430% 11/15/35 (a)     7,400,000       7,400,000    
SC Jobs Economic Development
Authority		  
Anderson Area YMCA,  
Series 1999,  
LOC: Branch Banking & Trust  
3.450% 11/01/24 (a)     1,700,000       1,700,000    
Health Care Facilities Revenue:  
Baptist Ministries, Inc.,  
Series 2000,  
LOC: National Bank of
South Carolina		  
3.480% 07/01/20 (a)     5,800,000       5,800,000    
Carolina Village, Inc.,  
Series 2000,  
LOC: Branch Banking & Trust  
3.450% 02/01/22 (a)     13,250,000       13,250,000    
Hospital Facilities Revenue:  
Canon Memorial Hospital,  
Series 2004 A,  
LOC: National Bank of
South Carolina		  
3.510% 06/01/24 (a)     6,070,000       6,070,000    

 

    Par ($)   Value ($)  
Sisters Of Charity Hospitals,  
Series 2002,  
LOC: Wachovia Bank N.A.  
3.420% 11/01/32 (a)     3,855,000       3,855,000    
Spartanburg YMCA,  
Series 1996,  
LOC: First Union National Bank  
3.450% 06/01/18 (a)     2,560,000       2,560,000    
SC Piedmont Municipal Power Agency  
Electric Revenue,  
Series 2004 B-3,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.430% 01/01/34 (a)     7,445,000       7,445,000    
SC Public Service Authority  
Series 2002,  
Insured: FSA  
3.450% 07/01/10 (a)     10,240,000       10,240,000    
Series 2004,  
Insured: AMBAC  
3.450% 01/01/22 (a)     4,535,000       4,535,000    
SC Transportation Infrastructure Bank  
Series 2004,  
Insured: AMBAC  
3.450% 04/01/12 (a)     12,740,000       12,740,000    
Series 2006,  
Insured: AMBAC,  
LIQ FAC: Citigroup Financial Products  
3.450% 10/01/33 (a)     3,075,000       3,075,000    
South Carolina Total             108,685,000    
Tennessee – 5.1%  
TN Blount County Public Building Authority  
Series 2002 A,  
Insured: AMBAC,  
SPA: Regions Bank  
3.430% 06/01/17 (a)     3,675,000       3,675,000    
TN Chattanooga Health Educational &
Housing Facility Board		  
McCallie School,  
Series 1991,  
LOC: SunTrust Bank  
3.410% 07/01/25 (a)     15,725,000       15,725,000    
TN Cleveland Health & Educational
Facilities Board Revenue		  
Lee University,  
Series 2002,  
LOC: First Tennessee Bank  
3.600% 12/01/19 (a)     2,750,000       2,750,000    

 

See Accompanying Notes to Financial Statements.

97


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
TN Collierville Industrial Development Board  
St. George's High School,  
Series 2001,  
LOC: AmSouth Bank  
3.430% 08/01/31 (a)     19,870,000       19,870,000    
TN Dickson County Industrial
Development Board Revenue		  
The Jackson
Foundation-Renaissance
Learning Center,		  
Series 1997,  
LOC: SunTrust Bank of
Nashville		  
3.410% 11/01/12 (a)     8,800,000       8,800,000    
TN Energy Acquisition Corp.  
Series 2006,  
LIQ FAC: Goldman Sachs  
3.460% 09/01/26 (a)     50,000,000       50,000,000    
TN Jackson Hospital Revenue  
Jackson-Madison County General,  
Series 2006 B,  
Insured: AMBAC,  
SPA: CitiBank N.A.  
3.400% 04/01/41 (a)     21,200,000       21,200,000    
TN Knox County Health Educational &
Housing Facilities Board		  
Volunteer Student Housing LLC,  
Series 2002,  
LOC: Allied Irish Banks PLC  
3.420% 09/01/34 (a)     19,850,000       19,850,000    
TN Loudon Water & Sewer Revenue  
Series 1996,  
LOC: Wachovia Bank N.A.  
3.460% 09/01/06 (a)     275,000       275,000    
TN Metropolitan Government
Nashville & Davidson County		  
3.560% 09/07/06     8,500,000       8,500,000    
TN Metropolitan Government Nashville & Davidson
County District Energy Revenue		  
Series 2002,  
Insured: AMBAC  
3.450% 10/01/19 (a)     5,300,000       5,300,000    
TN Metropolitan Government Nashville & Davidson
County Health & Educational Facilities Board		  
The Blakeford at Green Hills,  
Series 2005,  
LOC: Fifth Third Bank  
3.600% 07/01/16 (a)     7,000,000       7,000,000    

 

    Par ($)   Value ($)  
Timberlake Apartments Associates,  
Series 2002,  
Insured: FNMA  
3.420% 08/15/32 (a)     7,000,000       7,000,000    
TN Metropolitan Government Nashville & Davidson
County Industrial Development Board		  
Nashville Apartment Properties,  
Series 1995-2,  
LOC: AmSouth Bank  
3.510% 09/01/15 (a)     3,255,000       3,255,000    
TN Morgan Keegan Municipal Products, Inc.  
Series 2005 E,  
3.450% 12/01/10 (a)     14,785,000       14,785,000    
TN Sevier County Public Building Authority  
Local Government Public
Improvement Revenue,		  
Series 1998 III-B-2,  
Insured: AMBAC,  
SPA: Landesbank
Hessen-Thuringen		  
3.430% 06/01/19 (a)     4,250,000       4,250,000    
Series 2004 C-1,  
Insured: AMBAC,  
SPA: DEPFA Bank PLC  
3.610% 06/01/34 (a)     17,500,000       17,500,000    
Series 2005 E-3,  
Insured: AMBAC,  
SPA: DEPFA Bank PLC  
3.610% 06/01/33 (a)     2,330,000       2,330,000    
TN Shelby County Health Educational &
Housing Facilities Board		  
Memphis University School Project,  
Series 2002,  
LOC: SunTrust Bank  
3.430% 10/01/22 (a)     4,520,000       4,520,000    
St. Benedict Auburndale School,  
Series 2003,  
LOC: AmSouth Bank  
3.430% 05/01/33 (a)     5,050,000       5,050,000    
St. Mary's Episcopal School Project,  
Series 2004,  
LOC: First Tennessee Bank  
3.430% 12/01/34 (a)     3,500,000       3,500,000    
TN Shelby County  
Series 2004 B,  
SPA: Landesbank Hessen-Thuringen  
3.400% 04/01/30 (a)     25,500,000       25,500,000    

 

See Accompanying Notes to Financial Statements.

98


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2006,  
3.400% 03/01/31 (a)     30,000,000       30,000,000    
TN Williamson County Industrial
Development Board		  
St. Matthew Catholic Church,  
Series 2004,  
LOC: SunTrust Bank  
3.460% 07/01/24 (a)     3,050,000       3,050,000    
Tennessee Total             283,685,000    
Texas – 9.2%  
TX A & M University System Board of Regents  
Series 2006-57,  
LIQ FAC: Goldman Sachs  
3.450% 07/01/36 (a)     6,155,000       6,155,000    
TX ABN AMRO Munitops Certificate Trust  
Series 2003,  
Insured: PSFG,  
SPA: ABN AMRO Bank  
3.350% 08/15/10 (a)     5,000,000       5,000,000    
TX Ames Higher Education Facilities Corp.  
Southwest Austin Catholic School,  
Series 2003,  
LOC: Allied Irish Bank PLC  
3.470% 12/01/33 (a)     5,385,000       5,385,000    
TX Bexar County Housing Finance Corp.  
Northwest Trails LP,  
Series 2004,  
Insured: FNMA  
3.420% 12/15/34 (a)     4,930,000       4,930,000    
TX Brazosport Independent School District  
Series 2003,  
3.450% 08/15/10 (a)     4,952,000       4,952,000    
TX Brownsville Utility Systems Revenue  
Series 2005,  
Insured: AMBAC,  
LIQ FAC: Citigroup Global
Markets		  
3.450% 09/01/24 (a)     6,985,000       6,985,000    
TX Canutillo Independent School District  
Series 2003,  
Insured: PSFG,  
SPA: Merrill Lynch Capital
Services		  
3.450% 08/15/09 (a)     4,790,000       4,790,000    

 

    Par ($)   Value ($)  
TX Capital Area Cultural Education
Facilities Finance Corp.		  
Roman Catholic Diocese Austin,  
Series 2005,  
LOC: Wachovia Bank N.A.  
3.400% 04/01/45 (a)     48,380,000       48,380,000    
TX Coppell Independent School District  
Series 2005,  
Insured: PSFG,  
SPA: Merrill Lynch Capital
Services		  
3.480% 08/15/28 (a)     3,300,000       3,300,000    
TX Corpus Christi  
Series 2005,  
Insured: FSA,  
SPA: Merrill Lynch Capital
Services		  
3.450% 03/01/25 (a)     4,840,000       4,840,000    
TX Dallas Area Rapid Transit Sales  
3.600% 09/05/06     10,000,000       10,000,000    
TX Dallas Independent School District  
Series 2004,  
Insured: PSFG,  
LIQ FAC: Citibank N.A.  
3.450% 08/15/24 (a)     4,470,000       4,470,000    
TX Denton County  
Series 2005,  
Insured: MBIA  
3.450% 07/15/10 (a)     4,565,000       4,565,000    
TX Denton Utilities System  
Series 2004,  
Insured: MBIA  
3.450% 12/01/24 (a)     5,305,000       5,305,000    
TX Duncanville Independent School District  
Series 2006,  
Insured: PSFG,  
SPA: Merrill Lynch Capital
Services		  
3.450% 02/15/19 (a)     8,225,000       8,225,000    
TX Eclipse Funding Trust  
Series 2006,  
Insured: AMBAC,  
LIQ FAC: U.S. Bank N.A.  
3.440% 09/01/31 (a)     23,700,000       23,700,000    

 

See Accompanying Notes to Financial Statements.

99


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
TX Georgetown Health Facilities
Development Corp.		  
Wesleyan Homes, Inc.,  
Series 2006,  
LOC: Regions Bank  
3.480% 08/01/36 (a)     12,980,000       12,980,000    
TX Grand Prairie Housing Finance Corp.  
General Electric Capital Corp.,  
Series 1993,  
3.480% 06/01/10 (a)     9,600,000       9,600,000    
Windbridge Grand Prairie,  
Series 1993,  
3.480% 06/01/10 (a)     9,000,000       9,000,000    
TX Grapevine Industrial Development Corp.  
Series 1993,  
LOC: Bank One Texas N.A.  
3.450% 03/01/10 (a)     2,300,000       2,300,000    
TX Gregg County Health Facilities
Development Corp.		  
Good Shepherd Health System,  
Series 2004,  
LOC: KBC Bank N.V.  
3.420% 10/01/15 (a)     21,055,000       21,055,000    
TX Gregg County Housing Finance Corp.  
Baily Properties LLC,  
Series 2004 A,  
Insured: FNMA,  
LIQ FAC: FNMA  
3.440% 02/15/23 (a)     5,065,000       5,065,000    
Summer Green LLC,  
Series 2004 A,  
Insured: FNMA,  
LIQ FAC: FNMA  
3.440% 02/15/23 (a)     2,600,000       2,600,000    
TX Gulf Coast Waste Disposal Authority  
Armco, Inc.,  
Series 1998,  
LOC: PNC Bank N.A.  
3.430% 12/01/08 (a)     6,850,000       6,850,000    
TX Harlandale Independent School District  
Series 2004,  
Insured: PSFG,  
LOC: JPMorgan Chase Bank  
3.450% 08/15/12 (a)     2,690,000       2,690,000    

 

    Par ($)   Value ($)  
TX Harris County-Houston Sports Authority  
Series 2005,  
Insured: MBIA,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.480% 11/15/38 (a)     2,000,000       2,000,000    
TX Harris County  
Series 2006,  
Insured: FGIC,  
LIQ FAC: Citibank N.A.  
3.460% 08/15/33 (a)     5,580,000       5,580,000    
TX Hays Consolidated Independent School District  
Series 2005,  
Insured: PSFG,  
SPA: Merrill Lynch Capital
Services		  
3.450% 08/15/25 (a)     10,970,000       10,970,000    
TX HFDC of Central Texas, Inc.  
Franciscan Communities Village,  
Series 2004 C,  
LOC: Sovereign Bank FSB  
3.420% 05/15/38 (a)     6,500,000       6,500,000    
TX Houston Independent School District  
Series 2005 DB-169,  
Insured: PSFG,  
LIQ FAC: Deutsche Bank A.G.  
3.440% 02/15/24 (a)     3,365,000       3,365,000    
Series 2005 PT-3160,  
Insured: PSFG,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.450% 02/15/20 (a)     5,390,000       5,390,000    
TX Houston Utility System Revenue  
Series 2004:  
Insured: FSA  
3.450% 05/15/20 (a)     5,155,000       5,155,000    
Insured: MBIA  
3.450% 05/15/27 (a)     12,145,000       12,145,000    
TX Houston Water & Sewer Systems Revenue  
Series 2002,  
Insured: MBIA  
3.430% 12/01/23 (a)     12,495,000       12,495,000    
Series 2005,  
Insured: FSA  
3.480% 12/01/26 (a)     3,565,000       3,565,000    

 

See Accompanying Notes to Financial Statements.

100


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
TX Houston  
Series 2004,  
Insured: MBIA,  
LOC: JPMorgan Chase Bank  
3.450% 03/01/12 (a)     9,245,000       9,245,000    
TX Hunt Memorial Hospital District  
Series 1998,  
Insured: FSA  
3.460% 08/15/17 (a)     10,070,000       10,070,000    
TX Irving Independent School District  
Series 2006,  
Insured: PSFG,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.450% 02/15/17 (a)     5,195,000       5,195,000    
TX Mesquite Independent School District No. 1  
Series 2005 1032,  
Insured: PSFG,  
LIQ FAC: JPMorgan
Chase Bank		  
3.450% 08/15/13 (a)     5,315,000       5,315,000    
TX Midlothian Industrial Development Corp.  
Box-Crow Cement Co.,  
Series 1984,  
LOC: UBS A.G.  
3.420% 12/01/09 (a)     15,400,000       15,400,000    
TX Montgomery County Municipal
Utility District No. 46		  
Series 2004,  
Insured: FGIC,  
LIQ FAC: JPMorgan
Chase Bank		  
3.450% 09/01/10 (a)     1,295,000       1,295,000    
TX Municipal Power Agency  
Series 2004,  
Insured: FGIC  
3.470% 09/01/11 (a)     28,000,000       28,000,000    
TX North Central Health Facility
Development Corp.		  
Baylor Health Care System,  
Series 2006 B,  
Insured: FSA,  
SPA: Bank of New York  
3.350% 08/15/30 (a)     17,000,000       17,000,000    
Series 2004,  
Insured: MBIA  
3.450% 07/11/12 (a)     13,395,000       13,395,000    

 

    Par ($)   Value ($)  
TX North East Independent School District  
Series 2005 PT-3156,  
Insured: PSFG,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.450% 02/01/22 (a)     2,310,000       2,310,000    
TX North University  
3.600% 11/07/06     8,550,000       8,550,000    
TX Northshide Independent School District  
Series 2005,  
LIQ FAC: Lehman Liquidity Co.  
3.470% 06/15/33 (a)     5,585,000       5,585,000    
TX Nueces County  
Series 2004,  
Insured: AMBAC  
3.450% 02/15/12 (a)     10,535,000       10,535,000    
TX Richardson Independent School District  
Series 2005 PT-2835,  
Insured: PSFG,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.450% 02/15/25 (a)     4,295,000       4,295,000    
TX San Antonio Educational Facilities Corp.  
University Incarnate Word Project,  
Series 2001,  
LOC: Bank One N.A.  
3.480% 12/01/21 (a)     7,655,000       7,655,000    
TX San Antonio Health Facilities
Development Corp. Revenue		  
CTRC Clinical Foundation,  
LOC: Wells Fargo Bank N.A.  
3.400% 06/01/20 (a)     6,400,000       6,400,000    
TX San Antonio Water Revenue  
Series 2003 A,  
Insured: MBIA  
3.430% 05/15/33 (a)     37,845,000       37,845,000    
TX San Marcos Consolidated
Independent School District		  
Series 2005,  
Insured: PSFG  
3.450% 08/01/26 (a)     6,125,000       6,125,000    
TX State  
Series 2005,  
LIQ FAC: Lehman Liquidity Co.  
3.500% 04/01/30 (a)     7,490,000       7,490,000    

 

See Accompanying Notes to Financial Statements.

101


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
TX Victoria Health Facilities Development Corp.  
Warm Springs Rehabilitation
Foundation,		  
Series 1997,  
LOC: Chase Bank of Texas N.A.  
3.480% 09/01/27 (a)     1,325,000       1,325,000    
TX White Settlement Independent School District  
Series 2005 II-R-2215,  
Insured: PSFG,  
LIQ FAC: Citigroup Global
Market		  
3.450% 08/15/22 (a)     9,840,000       9,840,000    
TX Williamson County  
Series 2001 188,  
Insured: FSA  
3.450% 02/15/21 (a)     8,135,000       8,135,000    
Texas Total             511,292,000    
Utah – 0.3%  
UT St. George Industrial Development Revenue  
Bluff Cove Resort LLC,  
Series 2002,  
LOC: JPMorgan Chase Bank  
3.520% 08/01/11 (a)     1,825,000       1,825,000    
UT Water Finance Agency  
Series 2005 A-13,  
Insured: AMBAC,  
SPA: JPMorgan Chase Bank  
3.460% 10/01/27 (a)     10,000,000       10,000,000    
UT Weber County Housing Authority  
Series 2001,  
LOC: Bank One N.A.  
3.470% 11/01/39 (a)     2,630,000       2,630,000    
Utah Total             14,455,000    
Vermont – 0.2%  
VT Educational & Health Buildings
Financing Agency		  
Gifford Medical Center,  
Series 2006 A,  
LOC: KeyBank N.A.  
3.560% 10/01/36 (a)     11,220,000       11,220,000    
Vermont Total             11,220,000    

 

Virginia – 0.5%  
    Par ($)   Value ($)  
VA Alexandria Industrial Development Authority  
American Association for the
Study of Liver Disease,		  
Series 2006,  
LOC: SunTrust Bank  
3.410% 08/01/36 (a)     4,000,000       4,000,000    
Series 1989,  
LOC: First Union National Bank  
3.460% 01/01/09 (a)     2,095,000       2,095,000    
VA Front Royal & Warren County
Industrial Development Revenue		  
Series 2003,  
LOC: Branch Banking & Trust  
3.450% 05/01/23 (a)     3,525,000       3,525,000    
VA Hanover County Virginia
Industrial Development Authority		  
Covenant Woods,  
Series 1999,  
LOC: Branch Banking &
Trust Co.		  
3.450% 07/01/29 (a)     3,965,000       3,965,000    
VA Rockingham County Industrial
Development Authority		  
Sunnyside Presbyterian,  
Series 2003,  
LOC: Branch Banking & Trust  
3.450% 12/01/33 (a)     11,750,000       11,750,000    
VA Winchester Industrial Development Authority  
Westminster-Canterbury of Winchester, Inc.,  
Series 2005 B,  
LOC: Branch Banking & Trust  
3.450% 01/01/35 (a)     3,000,000       3,000,000    
Virginia Total             28,335,000    
Washington – 2.4%  
WA Broadway Office Properties Revenue  
Series 2002,  
Insured: MBIA  
3.450% 06/01/10 (a)     8,880,000       8,880,000    
WA Energy Northwest  
Series 2003 D2,  
Insured: MBIA,  
SPA: Dexia Credit Local  
3.400% 07/01/18 (a)     23,245,000       23,245,000    

 

See Accompanying Notes to Financial Statements.

102


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
WA Grant County Public Utility
District No. 2 Priest Rapids		  
Series 2001,  
Insured: FSA,  
SPA: Merrill Lynch Capital
Services		  
3.460% 01/01/22 (a)     10,495,000       10,495,000    
WA Health Care Facilities Authority  
Seattle Cancer Care,  
Series 2005,  
LOC: Harris Trust & Savings
Bank		  
3.430% 03/01/35 (a)     3,950,000       3,950,000    
WA Housing Finance Commission  
Antioch University,  
Series 2005,  
LOC: U.S. Bank N.A.  
3.590% 01/01/27 (a)     6,635,000       6,635,000    
Franke Tobey Jones,  
Series 2003,  
LOC: Wells Fargo Bank N.A.  
3.650% 09/01/33 (a)     13,035,000       13,035,000    
Pioneer Human Services,  
Series 2001 A,  
LOC: U.S. Bank N.A.  
3.650% 08/01/19 (a)     4,840,000       4,840,000    
Series 1988,  
LOC: Harris Trust & Savings
Bank		  
3.500% 01/01/10 (a)     11,600,000       11,600,000    
Spokane United Methodist
Homes:		  
Series 1999 A,  
LOC: Wells Fargo Bank N.A.  
3.650% 01/01/30 (a)     14,275,000       14,275,000    
Series 2002,  
LOC: Wells Fargo Bank N.A.  
3.650% 01/01/34 (a)     7,730,000       7,730,000    
YMCA of Snohomish County,  
Series 1999,  
LOC: U.S. Bank N.A.  
3.650% 06/01/27 (a)     2,265,000       2,265,000    
WA Pierce County  
Series 2005 921,  
Insured: AMBAC,  
LIQ FAC: JPMorgan Chase
Bank		  
3.450% 02/01/13 (a)     4,215,000       4,215,000    

 

    Par ($)   Value ($)  
WA Redmond  
Series 2006,  
Insured: MBIA,  
LIQ FAC: Merrill Lynch
Capital Servies		  
3.450% 12/01/20 (a)     3,445,000       3,445,000    
WA State  
Series 2004 B-22,  
Insured: FSA  
3.450% 07/01/24 (a)     8,745,000       8,745,000    
Series 2004,  
Insured: AMBAC  
3.450% 01/01/12 (a)     7,415,000       7,415,000    
Washington Total             130,770,000    
West Virginia – 0.1%  
WV University  
Series 2005,  
Insured: FGIC,  
LIQ FAC: JPMorgan Chase Bank  
3.450% 10/01/12 (a)     4,975,000       4,975,000    
West Virginia Total             4,975,000    
Wisconsin – 1.5%  
WI Allouez  
Series 2004,  
Insured: AMBAC  
3.450% 04/01/24 (a)     5,175,000       5,175,000    
WI Appleton Industrial Development Revenue  
Appleton Center Associates,  
Series 1994,  
LOC: U.S. Bank N.A.  
3.470% 12/15/09 (a)     3,205,000       3,205,000    
WI Center District Tax Revenue  
Series 2004,  
Insured: MBIA  
3.450% 12/15/21 (a)     6,630,000       6,630,000    
WI Health & Educational Facilities Authority  
Amery Regional Medical Center,  
Series 2006 A,  
LOC: Fifth Third Bank  
3.540% 05/01/36 (a)     8,000,000       8,000,000    
Series 2003:  
Insured: MBIA  
3.350% 02/15/16 (a)(b)     8,340,000       8,340,000    
LOC: Bank One N.A.  
3.440% 07/01/28 (a)     6,660,000       6,660,000    

 

See Accompanying Notes to Financial Statements.

103


Columbia Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
WI Transportation Revenue  
3.740% 09/06/06     6,975,000       6,975,000    
WI University Hospitals & Clinics Authority  
Series 2005,  
Insured: FSA,  
SPA: U.S. Bank N.A.  
3.400% 04/01/29 (a)     25,325,000       25,325,000    
WI West Allis  
State Fair Park Exposition
Center,		  
Series 2001,  
LOC: U.S. Bank N.A.  
3.440% 08/01/28 (a)     9,700,000       9,700,000    
Wisconsin Total             80,010,000    
Wyoming – 0.1%  
WY Sweetwater County  
Pacificorp,  
Series 1988 A,  
LOC: Barclays Bank PLC  
3.620% 09/07/06     4,750,000       4,750,000    
Wyoming Total             4,750,000    
Total Municipal Bonds
(Cost of $5,439,288,119)		             5,439,288,119    

 

Variable Rate Demand Notes – 1.6%

Puttable Floating Option Tax-Exempt Receipts  
Series 2001,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.540% 01/01/32 (a)     7,220,000       7,220,000    
Series 2006 A,  
SPA: Merrill Lynch Capital
Services:		  
3.480% 10/01/39 (a)     78,025,000       78,025,000    
3.510% 10/01/37 (a)     6,005,000       6,005,000    
Total Variable Rate Demand Notes
(Cost of $91,250,000)		             91,250,000    
Total Investments – 100.0%
(Cost of $5,530,538,119)(c)		             5,530,538,119    
Other Assets & Liabilities, Net – 0.0%             (444,037 )  
Net Assets – 100.0%           $ 5,530,094,082    

 

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) Illiquid security.

(c) Cost for federal income tax purposes is $5,530,538,119.

Acronym   Name  
AMBAC   Ambac Assurance Corp.  
CIFG   CIFG Assurance North America, Inc.  
FGIC   Financial Guaranty Insurance Co.  
FHLMC   Federal Home Loan Mortgage Corp.  
FNMA   Federal National Mortgage Association  
FSA   Financial Security Assurance, Inc.  
GNMA   Government National Mortgage Association  
HFDC   Health Facility Development Corporation  
LIQ FAC   Liquidity Facility  
LOC   Letter of Credit  
MBIA   MBIA Insurance Corp.  
PSFG   Permanent School Fund Guarantee  
SPA   Stand-by Purchase Agreement  
XLCA   XL Capital Assurance, Inc.  

 

See Accompanying Notes to Financial Statements.

104



Investment Portfolio Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds – 96.0%

California – 89.6%  
    Par ($)   Value ($)  
CA ABAG Finance Authority for Nonprofit Corps.  
Jewish Community Center of
San Francisco,		  
Series 2002,  
LOC: Allied Irish Bank PLC  
3.500% 11/15/31 (a)     7,675,000       7,675,000    
Series 2005,  
LOC: Allied Irish Bank PLC  
3.500% 11/15/35 (a)     16,625,000       16,625,000    
CA ABN AMRO Munitops Certificates Trust  
Series 2002,  
Insured: MBIA,  
SPA: ABN AMRO Bank N.V.  
3.330% 07/01/09 (a)     14,485,000       14,485,000    
Series 2003,  
Insured: FGIC,  
SPA: ABN AMRO Bank N.V.  
3.320% 08/01/11 (a)     8,895,000       8,895,000    
Series 2004:  
Insured: FGIC,  
SPA: ABN AMRO Bank N.V.  
3.320% 07/01/11 (a)     10,590,000       10,590,000    
Insured: FSA,  
SPA: ABN AMRO Bank N.V.  
3.320% 06/01/12 (a)     7,825,000       7,825,000    
Insured: MBIA,  
SPA: ABN AMRO Bank N.V.  
3.320% 08/01/12 (a)     8,575,000       8,575,000    
Series 2005:  
Insured: AMBAC,  
SPA: ABN AMRO Bank N.V.  
3.350% 12/01/12 (a)     6,925,000       6,925,000    
Insured: FGIC,  
SPA: ABN AMRO Bank N.V.  
3.340% 08/01/13 (a)     14,995,000       14,995,000    
Insured: FSA,  
SPA: ABN AMRO Bank N.V.  
3.320% 08/01/13 (a)     10,000,000       10,000,000    
Insured: MBIA,  
SPA: ABN AMRO Bank N.V.:  
3.320% 08/01/13 (a)     8,845,000       8,845,000    
3.440% 06/01/13 (a)     9,995,000       9,995,000    
Series 2006:  
Insured: FSA,  
SPA: ABN AMRO Bank N.V.  
3.610% 05/01/14 (a)     12,995,000       12,995,000    
Insured: MBIA,  
SPA: ABN AMRO Bank N.V.  
3.570% 11/01/13 (a)     9,495,000       9,495,000    

 

    Par ($)   Value ($)  
CA Alameda Contra Costa Schools Financing
Authority Certificates of Participation		  
Series 1997 B,  
LOC: Scotia Bank  
3.370% 07/01/23 (a)     1,630,000       1,630,000    
Series 1997 D,  
LOC: Bank of Nova Scotia  
3.370% 07/01/18 (a)     700,000       700,000    
Series 1998 F,  
LOC: KBC Bank N.V.  
3.370% 08/01/23 (a)     1,045,000       1,045,000    
Series 1999 G,  
Insured: AMBAC  
3.390% 08/01/24 (a)     6,560,000       6,560,000    
Series 2003 L,  
LOC: Scotia Bank  
3.320% 08/01/33 (a)     13,015,000       13,015,000    
Series 2005 M,  
LOC: Bank of Nova Scotia  
3.320% 08/01/30 (a)     5,495,000       5,495,000    
CA Alameda Corridor Transportation Authority  
Series 1999 CMC-1,  
Insured: MBIA,  
LIQ FAC: JPMorgan
Chase Bank		      
3.490% 10/01/08 (a)     6,480,000       6,480,000    
Series 2005,  
Insured: AMBAC,  
LIQ FAC: Merrill Lynch
Capital Services		      
3.470% 10/01/20 (a)     8,695,000       8,695,000    
CA Alameda County Industrial Development Authority  
Jeta LLC,  
Series 2004 A, AMT,  
LOC: Comerica Bank  
3.430% 04/01/34 (a)     1,000,000       1,000,000    
OZ Enterprises LLC,  
Series 2005, AMT,  
LOC: Comerica Bank  
3.430% 08/01/35 (a)     5,000,000       5,000,000    
Segale Family Trust,  
Series 2002, AMT,  
LOC: Bank of the West  
3.430% 10/01/32 (a)     2,500,000       2,500,000    
York Fabrication, Inc.,  
Series 1996 A, AMT,  
LOC: Bank of the West,
BNP Paribas		      
3.400% 11/01/26 (a)     5,300,000       5,300,000    

 

See Accompanying Notes to Financial Statements.

105


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CA Alvord Unified School District  
Series 2004,  
Insured: MBIA,  
SPA: BNP Paribas  
3.430% 02/01/24 (a)     2,520,000       2,520,000    
CA Antelope Valley Community
College District		  
Series 2005,  
Insured: MBIA,  
LIQ FAC: Merrill Lynch
Capital Services		      
3.440% 08/01/26 (a)     7,925,000       7,925,000    
CA Berkeley  
Series 1993,  
LOC: Wells Fargo Bank N.A.  
3.280% 06/01/23 (a)     7,250,000       7,250,000    
CA Burbank Glendale Pasadena Airport Authority  
Series 2005, AMT,  
Insured: AMBAC:  
LIQ FAC: JPMorgan Chase & Co.  
3.460% 01/01/13 (a)     5,705,000       5,705,000    
SPA: Merrill Lynch
Capital Services		      
3.490% 07/01/18 (a)     2,885,000       2,885,000    
CA Carlsbad Unified School District
Certificates of Participation		  
Series 2001,  
Insured: FSA,  
SPA: First Union National Bank  
3.270% 09/01/24 (a)     1,700,000       1,700,000    
CA Carson Redevelopment Agency  
Series 2003,  
Insured: MBIA,  
LIQ FAC: Citigroup  
Global Markets  
3.440% 10/01/19 (a)     3,155,000       3,155,000    
CA City of Chula Vista  
Series 2006, AMT,  
Insured: AMBAC,  
SPA: Merrill Lynch  
Capital Services  
3.460% 12/01/27 (a)     3,125,000       3,125,000    
CA City of Los Angeles  
Series 2006,  
4.500% 06/29/07     40,000,000       40,240,116    
CA Clovis Unified School District  
Series 2005 Pz-49,  
Insured: FGIC,  
LOC: Merrill Lynch
Capital Services		      
3.470% 08/01/24 (a)     3,395,000       3,395,000    

 

    Par ($)   Value ($)  
Series 2005,  
Insured: FGIC,  
SPA: Merrill Lynch  
Capital Services  
3.480% 08/01/28 (a)     1,515,000       1,515,000    
CA Colton Joint Unified School District  
Series 2004,  
Insured: FGIC  
3.440% 02/01/12 (a)     5,415,000       5,415,000    
CA Communities Development  
3.400% 09/06/06     74,215,000       74,215,000    
CA Contra Costa County Multi-Family Housing Revenue  
Park Regency LLC,  
Series 2003 F,  
LIQ FAC: FNMA  
3.370% 10/15/33 (a)     10,000,000       10,000,000    
CA Covina Redevelopment Agency  
Shadowhills Apartments, Inc.,  
Series 1994 A,  
Insured: FNMA  
3.300% 12/01/15 (a)     7,375,000       7,375,000    
CA Daly City Housing Development Finance Agency  
Serramonte Ridge LLC,  
Series 1999 A,  
3.300% 10/15/29 (a)     6,700,000       6,700,000    
CA Department of Water Resources  
3.580% 09/01/06     15,591,000       15,591,000    
Power Supply Revenue:  
Series 2002 B-2,  
LOC: BNP Paribas  
3.480% 05/01/22 (a)     58,935,000       58,935,000    
Series 2002 C-15,  
LOC: Bank of Nova Scotia  
3.300% 05/01/22 (a)     24,205,000       24,205,000    
Series 2002 C-4,  
LOC: JPMorgan Chase Bank &  
California State Teachers'  
Retirement System  
3.290% 05/01/22 (a)     66,275,000       66,275,000    
Series 2002 C-8,  
LOC: Bayerische Landesbank  
3.250% 05/01/22 (a)     11,725,000       11,725,000    
Series 2003:  
Insured: AMBAC,  
LOC: BNP Paribas  
3.500% 05/01/16 (a)(b)     63,485,000       63,485,000    
Insured: MBIA  
3.440% 05/01/11 (a)     75,000       75,000    

 

See Accompanying Notes to Financial Statements.

106


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2005 F-2,  
LOC: JPMorgan Chase Bank,  
LOC: Societe Generale  
3.520% 05/01/20 (a)     35,000,000       34,998,812    
Series 2005 G-1,  
LOC: Bank of Nova Scotia  
Trust Co.  
3.300% 05/01/11 (a)     20,800,000       20,800,000    
Series 2005 G-10,  
Insured: FGIC,  
SPA: DEPFA Bank PLC  
3.300% 05/01/18 (a)     65,545,000       65,545,000    
Series 2005 G-12,  
Insured: FGIC,  
LOC: Landesbank Baden-  
Wurttemberg  
3.300% 05/01/18 (a)     20,800,000       20,800,000    
Series 2005 G-13,  
Insured: FGIC,  
SPA: Morgan Stanley Bank  
3.330% 05/01/18 (a)     23,800,000       23,800,000    
Series 2005 G-14,  
Insured: FGIC,  
LOC: Landesbank  
Hessen-Thuringen  
3.290% 05/01/18 (a)     33,785,000       33,785,000    
Series 2004 2168,  
Insured: FGIC,  
SPA: Merrill Lynch  
Capital Services  
3.440% 12/01/10 (a)     5,145,000       5,145,000    
Supply Revenue,  
Series 2002 C-11,  
LOC: KBC Bank N.V.,  
LOC: Bank of New York  
3.500% 05/01/22 (a)     10,600,000       10,600,000    
CA Desert Community College District  
Series 2005 912,  
Insured: MBIA,  
LIQ FAC: JPMorgan  
Chase Bank  
3.440% 02/01/13 (a)     4,165,000       4,165,000    
CA Duarte Redevelopment Agency
Certificates of Participation		  
Johnson Duarte Partners,  
Series 1984 B,  
LOC: General Electric  
Capital Corp.  
3.260% 12/01/19 (a)     5,000,000       5,000,000    

 

    Par ($)   Value ($)  
Piken Duarte Partners,  
Series 1984 A,  
LOC: General Electric  
Capital Corp.  
3.260% 12/01/19 (a)     7,000,000       7,000,000    
CA Eagle Tax-Exempt Trust  
Series 1998, AMT,  
Insured: FGIC,  
LIQ FAC: Citibank N.A.  
3.470% 05/15/15 (a)     13,000,000       13,000,000    
CA East Bay Municipal Utility District  
Water System Revenue,  
Series 2003,  
Insured: MBIA,  
LIQ FAC: Citigroup  
Global Markets  
3.440% 06/01/19 (a)     4,050,000       4,050,000    
CA Economic Recovery  
Series 2004 C-18,  
Insured: XLCA,  
LOC: DEPFA Bank PLC  
3.320% 07/01/23 (a)     9,775,000       9,775,000    
Series 2004 C-21,  
Insured: XLCA,  
SPA: Dexia Credit Local  
3.370% 07/01/23 (a)     5,000,000       5,000,000    
Series 2004,  
LIQ FAC: Citibank N.A.  
3.440% 07/01/23 (a)     18,745,000       18,745,000    
Series 2004C-11,  
LOC: BNP Paribas  
3.300% 07/01/23 (a)     29,349,000       29,349,000    
CA Educational Facilities Authority  
Life Chiropractic College,  
Series 1999,  
LOC: Bank of the West  
3.410% 01/01/25 (a)     6,165,000       6,165,000    
Pitzer College,  
Series 2005 B,  
LOC: Bank of New York  
3.270% 04/01/45 (a)     5,500,000       5,500,000    
Series 2000 A,  
LIQ FAC: Societe Generale  
3.440% 10/01/27 (a)     14,275,000       14,275,000    
CA Fremon Certificates of Participation  
Series 2001,  
LOC: Scotia Bank  
3.290% 08/01/30 (a)     30,495,000       30,495,000    

 

See Accompanying Notes to Financial Statements.

107


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CA Fremont Unified School District
Certificates of Participation		  
Series 2005,  
Insured: FSA,  
LOC: Dexia Credit Local  
3.380% 09/01/30 (a)     10,500,000       10,500,000    
CA Fremont Union High School District  
Series 2005,  
Insured: FGIC,  
SPA: Merrill Lynch  
Capital Services  
3.440% 09/01/23 (a)     3,520,000       3,520,000    
CA Fullerton School District  
Series 2002,  
Insured: FGIC,  
SPA: Merrill Lynch  
Capital Services  
3.440% 08/01/21 (a)     5,800,000       5,800,000    
CA Golden State Tobacco Securitization Corp.  
Series 2005,  
Insured: FGIC,  
LIQ FAC: Citibank N.A.  
3.450% 06/01/35 (a)     31,800,000       31,800,000    
CA Goleta Water District Certificates of Participation  
Series 2003,  
Insured: MBIA,  
LIQ FAC: Citigroup  
Global Markets  
3.440% 12/01/22 (a)     1,735,000       1,735,000    
CA GS Pool Trust  
Series 2006, AMT,  
LIQ FAC: Goldman Sachs,  
GIC: IXIS Financial Products  
3.510% 05/01/47 (a)     6,739,427       6,739,427    
CA Hayward  
Multi-Family Housing,  
Santa Clara Associates LLC,  
Series 1998 A, AMT,  
Insured: FNMA  
3.380% 03/15/33 (a)     4,500,000       4,500,000    
CA Health Facilities Financing Authority  
Catholic Healthcare West,  
Series 1988 B,  
Insured: MBIA,  
SPA: Morgan Guaranty Trust  
3.480% 07/01/16 (a)     11,745,000       11,745,000    

 

    Par ($)   Value ($)  
Hospital Adventist Systems,  
Series 1998 B,  
Insured: MBIA  
3.500% 09/01/28 (a)     95,000       95,000    
CA Housing Finance Agency  
Series 2000, AMT,  
Insured: AMBAC,  
LIQ FAC: Merrill Lynch  
Capital Services  
3.480% 08/01/29 (a)     6,235,000       6,235,000    
Series 2001 E, AMT,  
3.430% 02/01/36 (a)     30,195,000       30,195,000    
Series 2002 B,  
SPA: FNMA  
3.320% 02/01/35 (a)     14,400,000       14,400,000    
Series 2004 E-2, AMT,  
3.390% 02/01/35 (a)     65,540,000       65,540,000    
Series 2005 B, AMT,  
SPA: BNP Paribas  
3.420% 02/01/35 (a)     60,370,000       60,370,000    
Series 2005, AMT:  
LIQ FAC: Landesbank  
Hessen-Thuringen  
3.460% 11/01/07 (a)     18,195,000       18,195,000    
LIQ FAC: Lloyds TSB Bank PLC  
GIC: Trinity Funding Co. LLC  
3.480% 02/01/08 (a)     28,880,000       28,880,000    
Series B,  
3.420% 08/01/35 (a)     33,665,000       33,665,000    
CA Indio Multi-Family Housing Revenue  
Series 1996 A,  
Insured: FNMA  
3.300% 08/01/26 (a)     5,650,000       5,650,000    
CA Infrastructure & Economic Development Bank Revenue  
Buck Institute for Age Research,  
Series 2001,  
LOC: Bank of New York,  
LOC: California State  
Teachers' Retirement System  
3.350% 11/15/37 (a)     36,350,000       36,350,000    
Goodwill Industries Orange
County,		  
Series 2006,  
LOC: Wells Fargo Bank N.A.  
3.280% 03/01/31 (a)     3,850,000       3,850,000    
Kruger & Sons, Inc.,  
Series 2002, AMT,  
LOC: Bank of the West  
3.400% 11/01/28 (a)     4,980,000       4,980,000    

 

See Accompanying Notes to Financial Statements.

108


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2003 A:  
Insured: FGIC  
3.450% 07/01/29 (a)     7,000,000       7,000,000    
LOC: Wells Fargo Bank N.A.  
3.320% 09/01/28 (a)     4,000,000       4,000,000    
Traditional Baking, Inc.,  
Series 2003, AMT,  
LOC: Mellon Bank N.A.  
3.450% 08/01/28 (a)     2,140,000       2,140,000    
CA Irwindale Community Redevelopment Agency  
Series 2006,  
Insured: FSA,  
LIQ FAC: Dexia Credit Local  
3.430% 07/15/26 (a)     7,120,000       7,120,000    
CA Kern High School District  
Series 2005,  
Insured: FSA,  
LIQ FAC: Merrill Lynch  
Capital Services  
3.440% 08/01/25 (a)     8,375,000       8,375,000    
CA Lake Eslinore Recreation Authority  
Series 2000 A,  
LOC: Union Bank of California,  
LOC: California State Teachers'  
Retirement System  
3.320% 02/01/32 (a)     8,610,000       8,610,000    
CA Lassen Municipal Utility District Revenue  
Series 1996 A, AMT,  
Insured: FSA,  
SPA: Credit Local de France  
3.450% 05/01/08 (a)     2,600,000       2,600,000    
CA Livermore Certificates of Participation  
Insured: AMBAC,  
LOC: Dexia Public Finance Bank  
3.290% 10/01/30 (a)     3,605,000       3,605,000    
CA Lodi Electric System Revenue
Certificates of Participation		  
Series 2002 A,  
Insured: MBIA  
SPA: BNP Paribas  
3.260% 07/01/32 (a)     12,500,000       12,500,000    
CA Long Beach Bond Finance Authority  
Series 1999,  
LOC: Bank One N.A.  
3.300% 09/01/09 (a)     3,060,000       3,060,000    

 

    Par ($)   Value ($)  
CA Long Beach Harbor Revenue  
Series 2005 MT-175,  
Insured: FGIC,  
LIQ FAC: Merrill Lynch  
Capital Services  
3.230% 05/15/15 (a)(b)     4,995,000       4,995,000    
CA Los Angeles Community Redevelopment Agency  
Multi-Family Housing Revenue:  
Grand Promenade,  
Series 2002,  
Insured: FHLMC  
3.300% 04/01/32 (a)     13,300,000       13,300,000    
Series 2003 A, AMT,  
LOC: HSBC Bank USA  
3.350% 12/01/38 (a)     17,965,000       17,965,000    
CA Los Angeles County Housing Authority  
Multi-Family Housing Revenue,  
Series 2002 PT-639, AMT,  
Insured: FHLMC  
3.490% 10/01/31 (a)     68,785,000       68,785,000    
CA Los Angeles County Metropolitan
Transportation Authority		  
Sales Tax Revenue,  
Series 2004 A,  
Insured: MBIA,  
LIQ FAC: Citibank N.A.  
3.450% 07/01/34 (a)     9,700,000       9,700,000    
CA Los Angeles Department of Airports  
Series 2002 C-1,  
LOC: BNP Paribas,  
LOC: Landesbank Baden-  
Wurttmberg  
3.300% 05/15/20 (a)     18,700,000       18,700,000    
CA Los Angeles Department of Water & Power Revenue  
Series 2001,  
Insured: MBIA,  
LIQ FAC: JPMorgan Chase Bank  
3.490% 01/01/09 (a)     12,995,000       12,995,000    
Series 2002 A-1,  
LOC: National Australia Bank  
3.270% 07/01/35 (a)     10,000,000       10,000,000    
Series 2002 A-2,  
LOC: National Australia Bank  
3.270% 07/01/35 (a)     25,700,000       25,700,000    
Series 2002 A-4,  
3.270% 07/01/35 (a)     19,200,000       19,200,000    

 

See Accompanying Notes to Financial Statements.

109


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Series 2002 A-5,  
LOC: National Australia Bank  
3.270% 07/01/35 (a)     12,775,000       12,775,000    
Series 2002 A-6,  
3.270% 07/01/35 (a)     18,000,000       18,000,000    
Series 2002 A-7,  
LOC: National Australia Bank  
3.270% 07/01/35 (a)     5,100,000       5,100,000    
Series 2002 A-8,  
3.360% 07/01/35 (a)     5,200,000       5,200,000    
CA Los Angeles Harbor Department Revenue  
Series 2006, AMT,  
Insured: MBIA  
5.000% 08/01/07     1,645,000       1,665,468    
CA Los Angeles Multi-Family Revenue  
Series 1991 B,  
Insured: FHLMC  
3.320% 12/01/32 (a)     7,840,000       7,840,000    
CA Los Angeles Unified School District  
Series 2005 A,  
Insured: AMBAC  
4.500% 10/18/06     50,000,000       50,058,964    
Series 2006:  
Insured: FGIC,  
LIQ FAC: Merrill Lynch  
Capital Services  
3.440% 07/01/25 (a)     2,990,000       2,990,000    
Insured: AMBAC,  
LIQ FAC: Merrill Lynch & Co.  
3.440% 07/01/30 (a)     8,300,000       8,300,000    
CA Los Angeles Wastewater System Revenue  
Series 2006 D,  
Insured: XLCA,  
SPA: Scotiabank  
3.360% 06/01/28 (a)     20,000,000       20,000,000    
CA Metropolitan Water District of Southern California  
Series 2002 A,  
SPA: Landesbank Baden-  
Wurttemberg  
3.300% 07/01/25 (a)     60,045,000       60,045,000    
CA Modesto Irrigation District Certificates of Participation  
Series 2003,  
Insured: MBIA,  
SPA: Merrill Lynch  
Capital Services  
3.440% 01/01/11 (a)     20,320,000       20,320,000    

 

    Par ($)   Value ($)  
Series 2006,  
Insured: AMBAC,  
SPA: Merrill Lynch  
Capital Services  
3.440% 10/01/26 (a)     2,265,000       2,265,000    
CA Morgan Hill United School District  
Series 2000 S,  
Insured: FGIC,  
SPA: Societe Generale  
3.430% 08/01/25 (a)     4,290,000       4,290,000    
CA Municipal Securities Trust Certificates  
Series 2006:  
Insured: MBIA,  
LIQ FAC: Bear Stearns
Capital Markets		      
3.520% 12/17/20 (a)     12,815,000       12,815,000    
Insured: FGIC  
LIQ FAC: Bear Stearns
Capital Market		      
3.520% 10/09/25 (a)     8,505,000       8,505,000    
CA Oakland-Alameda County Coliseum Authority Lease  
Series 2000 C-1,  
LOC: Bank of New York,  
LOC: California State Teachers'  
Retirement System  
3.350% 02/01/25 (a)     8,300,000       8,300,000    
CA Oakland  
Series 2002 756,  
Insured: FGIC,  
LOC: Morgan Stanley  
Dean Witter  
3.410% 01/15/32 (a)     9,239,000       9,239,000    
CA Orange County Apartment Development Revenue  
Series 1985 Z,  
Insured: FHLMC  
3.260% 11/01/07 (a)     15,500,000       15,500,000    
Series 1998 H,  
Insured: FNMA  
3.350% 11/15/28 (a)     10,700,000       10,700,000    
Series 1999 D,  
Insured: FHMLC  
3.350% 12/01/29 (a)     4,500,000       4,500,000    
The Lakes Joint Venture,  
Series 1991 A,  
Insured: FHLMC  
3.350% 12/01/06 (a)     8,200,000       8,200,000    

 

See Accompanying Notes to Financial Statements.

110


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CA Orange County Housing Authority  
Apartment Development Revenue,  
Oasis Martinique Project,  
Series 1998 I,  
3.310% 06/15/28 (a)     26,840,000       26,840,000    
CA Orange County Special Financing Authority  
Teeter Plan Revenue:  
Series 1995 B,  
Insured: AMBAC,  
SPA: Wachovia Bank N.A.  
3.380% 11/01/14 (a)     14,900,000       14,900,000    
Series 1995 C,  
Insured: AMBAC,  
SPA: Wachovia Bank N.A.  
3.380% 11/01/14 (a)     23,775,000       23,775,000    
Series 1995 D,  
Insured: AMBAC,  
SPA: Wachovia Bank N.A.  
3.380% 11/01/14 (a)     17,170,000       17,170,000    
Series 1995 E,  
Insured: AMBAC,  
SPA: Wachovia Bank N.A.  
3.380% 11/01/14 (a)     10,625,000       10,625,000    
CA Orange County Water District Revenue
Certificates of Participation		  
Series 2003,  
Insured: MBIA,  
SPA: Wachovia Bank N.A.  
3.440% 02/15/11 (a)     4,575,000       4,575,000    
CA Pajaro Valley Unified School
District Certificates of Participation		  
School Facilities Bridge Funding,  
Series 2000,  
Insured: FSA,  
SPA: First Union National Bank  
3.270% 09/01/23 (a)     115,000       115,000    
CA Pasadena Water Revenue  
Series 2003,  
Insured: FGIC,  
SPA: Merrill Lynch
Capital Services		      
3.440% 06/01/27 (a)     5,285,000       5,285,000    
CA Peralta Community College District  
Series 2004,  
Insured: MBIA,  
SPA: Merrill Lynch
Capital Services		      
3.440% 08/01/08 (a)     5,855,000       5,855,000    

 

    Par ($)   Value ($)  
CA Pleasanton Multi-Family Housing Revenue  
Greenbriar Bernal Apartments LP,  
Series 2001 A, AMT,  
Insured: FNMA  
3.430% 09/15/34 (a)     2,900,000       2,900,000    
CA Pollution Control Financing Authority  
Amador Valley Industries LLC,  
Series 2005 A,  
LOC: Wells Fargo Bank N.A.  
3.450% 06/01/15 (a)     6,470,000       6,470,000    
Blue Line Transfer, Inc.,  
Series 2002 A, AMT,  
LOC: Wells Fargo Bank N.A.  
3.450% 08/01/14 (a)     4,900,000       4,900,000    
CR&R, Inc.,  
Series 2006 A, AMT,  
LOC: Bank of the West  
3.480% 06/01/25 (a)     3,920,000       3,920,000    
Marborg Industries,  
Series 2006 A, AMT,  
LOC: Pacific Capital Bank N.A.  
3.450% 06/01/35 (a)     2,230,000       2,230,000    
Pacific Gas & Electric Corp.,  
Series 1996 E,  
LOC: Bank One N.A.  
3.510% 11/01/26 (a)     25,825,000       25,825,000    
Sierra Pacific Industries, Inc.,  
Series 1993,  
LOC: Wells Fargo Bank N.A.  
3.460% 02/01/13 (a)     13,400,000       13,400,000    
Solid Waste Disposal:  
Series 1997 A, AMT,  
LOC: JPMorgan Chase Bank  
3.440% 09/01/19 (a)     15,700,000       15,700,000    
Series 1998 A, AMT,  
LOC: Comerica Bank  
3.500% 03/01/18 (a)     885,000       885,000    
CA Pomona Certificates of Participation  
Congregational Homes, Inc.,  
Series 2004,  
LOC: HSH Nordbank Agency  
3.270% 01/01/34 (a)     25,045,000       25,045,000    
CA Poway Redevelopment Agency  
Tax Allocation,  
Series 2003,  
Insured: MBIA,  
LIQ FAC: Citigroup Global Markets  
3.440% 06/15/20 (a)     4,260,000       4,260,000    

 

See Accompanying Notes to Financial Statements.

111


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CA Public Works Board  
Series 2006,  
Insured: AMBAC,  
LIQ FAC: BNP Paribas  
3.430% 01/01/20 (a)     5,290,000       5,290,000    
CA Rescue Union School District
Certificates of Participation		  
Series 2001,  
Insured: FSA,  
LIQ FAC: First Union  
National Bank  
3.420% 10/01/25 (a)     14,145,000       14,145,000    
CA Riverside County Housing Authority  
AP II Murrieta LP,  
Series 1998 A, AMT,  
Insured: FHLMC  
3.420% 01/15/29 (a)     12,600,000       12,600,000    
CA Riverside County  
Series 1985 B,  
LOC: State Street Bank &  
Trust Co.  
3.330% 12/01/15 (a)     4,900,000       4,900,000    
CA Rowland Unified School District  
Series 2003,  
Insured: FSA,  
LIQ FAC: Citigroup  
Global Markets  
3.440% 08/01/22 (a)     5,925,000       5,925,000    
CA Sacramento County Certificates of Participation  
Series 1990,  
LOC: Bayerische Landesbank  
3.290% 06/01/20 (a)     12,155,000       12,155,000    
CA Sacramento County Housing Authority  
Wasatch Pool Holdings LLC:  
Series 2001 E,  
Insured: FNMA  
3.300% 02/15/31 (a)     12,000,000       12,000,000    
Series 2001 F,  
Insured: FNMA  
3.380% 02/15/31 (a)     3,750,000       3,750,000    
CA Sacramento County Multi-Family Housing Revenue  
Woodbridge-301 LLC,  
Series 2004 B,  
Insured: FNMA  
3.300% 06/15/34 (a)     10,200,000       10,200,000    

 

    Par ($)   Value ($)  
CA San Bernardino County Certificates of Participation  
Series 1996,  
SPA: BNP Paribas  
3.270% 07/01/15 (a)     2,500,000       2,500,000    
CA San Bernardino County Housing Authority  
Multi-Family Housing Revenue:  
Indian Knoll Apartments,  
Series 1985 A,  
Insured: FNMA  
3.350% 05/15/31 (a)     3,580,000       3,580,000    
Reche Canyon Apartments,  
Series 1985,  
Insured: FNMA  
3.370% 05/15/30 (a)     3,500,000       3,500,000    
Series 1992 A,  
LOC: Redlands Federal Bank  
3.450% 09/01/22 (a)     2,930,000       2,930,000    
CA San Diego Housing Authority  
Multi-Family Housing Revenue,  
Swift Real Estate Partners,  
Series 2004 C,  
Insured: FNMA  
3.350% 01/15/35 (a)     11,915,000       11,915,000    
CA San Francisco City & County Airports Commission  
Series 2006 E, AMT,  
Insured: XLCA,  
SPA: DEPFA Bank PLC  
3.350% 05/01/25 (a)     47,000,000       47,000,000    
CA San Francisco City & County Redevelopment Agency  
Multi-Family Housing Revenue:  
 8th & Howard Family    
Apartments,  
Series 2000 B, AMT,  
LOC: Citibank N.A.  
3.600% 12/01/34 (a)     7,105,000       7,105,000    
Fillmore Center:  
Series 1992 B-1,  
LOC: Credit Suisse First  
Boston Bank  
3.350% 12/01/17 (a)     35,125,000       35,125,000    
Series 1992 A,  
LOC: Credit Suisse First  
Boston Bank  
3.350% 12/01/17 (a)     18,500,000       18,500,000    
Series 1992, AMT,  
LOC: Credit Suisse First  
Boston Bank  
3.360% 12/01/17 (a)     3,000,000       3,000,000    

 

See Accompanying Notes to Financial Statements.

112


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
South Harbor,  
Series 1986,  
LOC: Credit Local de France  
3.410% 12/01/16 (a)     6,400,000       6,400,000    
CA San Gabriel Valley Council Governments  
3.550% 09/01/06     1,500,000       1,500,000    
CA San Joaquin County Transportation Authority  
3.400% 09/06/06     155,000,000       155,000,000    
CA San Jose Financing Authority  
Series 2003,  
Insured: AMBAC,  
SPA: Merrill Lynch  
Capital Services  
3.440% 06/01/10 (a)     6,465,000       6,465,000    
CA San Jose Multi-Family Housing Revenue  
Fairfield Trestles LP,  
Series 2004 A, AMT,  
LOC: FHLMC  
3.400% 03/01/37 (a)     3,650,000       3,650,000    
Fairfield Turnleaf Apartments,  
Series 2003 A,  
Insured: FHLMC  
3.410% 06/01/36 (a)     15,290,000       15,290,000    
Series 2002 D, AMT,  
Insured: FHLMC  
3.320% 08/01/35 (a)     6,195,000       6,195,000    
Series 2006, AMT  
SPA: Merrill Lynch
Capital Services		      
3.510% 05/01/30 (a)     7,625,000       7,625,000    
Sunset Square LP,  
Series 2002 E,  
LOC: Citibank N.A.  
3.460% 06/01/34 (a)     6,394,000       6,394,000    
CA San Jose Redevelopment Agency  
Series 2005,  
Insured: MBIA,  
SPA: Merrill Lynch  
Capital Services  
3.440% 08/01/26 (a)     7,495,000       7,495,000    
CA San Jose Unified School District  
Series 2005,  
Insured: FGIC,  
LIQ FAC: Citibank N.A.  
3.450% 08/01/29 (a)     19,800,000       19,800,000    

 

    Par ($)   Value ($)  
CA San Ramon Valley Unified School District  
Series 2004,  
Insured: FSA,  
SPA: Merrill Lynch  
Capital Services  
3.440% 08/01/23 (a)     5,150,000       5,150,000    
CA Santa Clara County El Camino
California Hospital District		  
Series 1985 B,  
LOC: State Street Bank &  
Trust Co.  
3.500% 08/01/15 (a)     5,790,000       5,790,000    
CA Santa Rosa High School District  
Series 2004,  
Insured: MBIA,  
SPA: Merrill Lynch
Capital Services		      
3.440% 08/01/11 (a)     4,315,000       4,315,000    
CA Santa Rosa Housing Authority  
Multi-Family Housing Revenue,  
Series 1995 E,  
LOC: FHLMC  
3.340% 03/01/12 (a)     17,140,000       17,140,000    
CA Santa Rosa Wastewater Revenue  
Series 2005,  
Insured: AMBAC,  
SPA: Merrill Lynch
Capital Services		      
3.470% 09/01/31 (a)     3,470,000       3,470,000    
CA Simi Valley Community Development Agency  
Mayer Indian Oaks Ltd.,  
Series 1985 A,  
3.490% 05/01/10 (a)     15,500,000       15,500,000    
CA Simi Valley  
Series 1989, AMT,  
Insured: FHLMC  
3.420% 09/01/19 (a)     7,800,000       7,800,000    
CA Southern California Public Power Authority  
Power Project Revenue,  
Series 2003,  
Insured: AMBAC,  
SPA: Merrill Lynch  
Capital Services  
3.440% 07/01/11 (a)     4,930,000       4,930,000    
CA Stanislaus Waste-To-Energy Financing Agency  
Covanta Energy Corp.,  
Series 2000,  
Insured: MBIA,  
LOC: Morgan Guaranty  
Trust of NY  
3.320% 01/01/10 (a)     6,465,000       6,465,000    

 

See Accompanying Notes to Financial Statements.

113


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
CA State Economic Recovery Revenue  
Series 2004 C-10,  
LOC: Banque Nationale  
de Paris  
3.320% 07/01/23 (a)     9,000,000       9,000,000    
CA Statewide Communities Development Authority  
Fairfax Senior Citizens
Housing Project,		      
Series 2000 A,  
Insured: FNMA  
3.380% 09/15/30 (a)     5,935,000       5,935,000    
Hanna Boys Center,  
Series 2002,  
LOC: Northern Trust Co.  
3.430% 12/31/32 (a)     5,000,000       5,000,000    
Industrial Development Revenue,  
Multiple Peptide Systems,  
Series 2002 A, AMT,  
LOC: Bank of the West  
3.400% 12/01/17 (a)     3,450,000       3,450,000    
Multi-Family Revenue:  
Bay Vista at Meadow Park LP,  
Series 2003 1, AMT,  
LOC: Wells Fargo Bank N.A.  
3.460% 12/15/37 (a)     7,500,000       7,500,000    
Canion County Apartments,  
Series 2002 M, AMT,  
Insured: FHLMC  
3.430% 12/01/34 (a)     10,900,000       10,900,000    
Chateau Pleasant Hill  
Associates LLC,  
Series 2005 C,  
Insured: FNMA  
3.300% 07/15/35 (a)     7,500,000       7,500,000    
Cienega Preservation LP,  
Series 2002 V,  
LOC: Washington Mutual Bank  
3.520% 10/01/33 (a)     11,760,000       11,760,000    
Greentree Senior Apartments,  
Series 2000 P, AMT,  
LIQ FAC: FNMA  
3.380% 11/15/30 (a)     7,350,000       7,350,000    
Maple Square Apartments Project,  
Series 2004, AMT,  
LOC: Citibank N.A.  
3.460% 08/01/39 (a)     6,000,000       6,000,000    
UHC Madera LP,  
Series 2005 B, AMT,  
LOC: Citibank N.A.  
3.460% 01/01/38 (a)     5,750,000       5,750,000    

 

    Par ($)   Value ($)  
Plan Nine Partners LLC,  
Series 2005 A,  
LOC: Union Bank of  
California N.A.  
3.370% 02/01/35 (a)     13,415,000       13,415,000    
Series 2005,  
LOC: BNP Paribas  
3.390% 10/01/45 (a)     20,000,000       20,000,000    
Series 2006, AMT,  
LIQ FAC: Goldmam Sachs  
3.510% 01/01/49 (a)     10,500,000       10,500,000    
Series 2006,  
LOC: Allied Irish Bank PLC  
3.270% 06/01/27 (a)     4,200,000       4,200,000    
Solid Waste Revenue,  
Chevron Corp,  
Series 1994,  
GTY AGMT: Chevron Corp.  
3.430% 12/15/24 (a)     20,840,000       20,840,000    
CA State  
Series 2004 A-2,  
LOC: Bank of New York,  
LOC: California State Teachers'  
Retirement System  
3.450% 05/01/34 (a)     25,700,000       25,700,000    
Series 2005 A:  
LOC: Calyon Bank  
3.270% 05/01/40 (a)     133,735,000       133,735,000    
LOC: Fortis Bank S.A./N.A.  
3.270% 05/01/40 (a)     152,200,000       152,200,000    
Series 2005 B-5,  
LOC: DEPFA Bank PLC  
3.250% 05/01/40 (a)     30,600,000       30,600,000    
Series 2005 MT-162,  
Insured: FSA,  
LOC: DEPFA Bank PLC  
3.150% 08/01/17 (a)(b)     13,510,000       13,510,000    
Series 2005 MT-171,  
Insured: FSA,  
LOC: DEPFA Bank PLC  
3.230% 08/01/16 (a)(b)     9,895,000       9,895,000    
Series 2005,  
Insured: MBIA:  
LIQ FAC: Dexia Credit Local  
3.430% 02/01/25 (a)     10,615,000       10,615,000    
LIQ FAC: Societe Generale  
3.440% 03/01/35 (a)     15,000,000       15,000,000    
Series 2006 A:  
Insured: AMBAC,  
LIQ FAC: Citibank N.A.  
3.670% 08/01/31 (a)     14,360,000       14,360,000    

 

See Accompanying Notes to Financial Statements.

114


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
Insured: MBIA,  
LIQ FAC: Citibank N.A.  
3.670% 02/01/33 (a)     14,850,000       14,850,000    
CA TICS/TOCS Trust  
Series 2002,  
Insured: MBIA,  
LIQ FAC: Bank of New York  
3.420% 04/01/44 (a)     35,960,000       35,960,000    
CA Unified High School District Certificates of Participation  
Series 2001,  
3.270% 06/01/13 (a)     9,295,000       9,295,000    
CA University of California  
Series 2003,  
Insured: FSA  
3.440% 09/01/09 (a)     7,590,000       7,590,000    
Series 2005,  
Insured: FSA,  
LIQ FAC: Lehman  
Liquidity Co.  
3.350% 05/15/38 (a)     6,480,000       6,480,000    
Series SGB-57-A,  
Insured: AMBAC,  
LIQ FAC: Societe Generale  
3.440% 05/15/33 (a)     12,815,000       12,815,000    
CA University  
Series 2006,  
Insured: MBIA  
LOC: JPMorgan Chase & Co.  
3.440% 11/01/13 (a)     3,000,000       3,000,000    
CA Vallejo Certificates of Participation  
Capital Improvement Project,  
Series 2003,  
LOC: Union Bank of California,  
LOC: California State  
Teachers Retirement  
3.290% 12/01/23 (a)     7,490,000       7,490,000    
CA West Contra Costa Unified School District  
Series 2004,  
Insured: FGIC  
3.440% 08/01/24 (a)     5,930,000       5,930,000    
California Total             3,333,740,787    
Puerto Rico – 6.4%  
PR Commonwealth of Puerto Rico
Electric Power Authority		  
Series 2000,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.400% 07/01/20 (a)     2,600,000       2,599,902    

 

    Par ($)   Value ($)  
Series 2005-681,  
Insured: FGIC,  
LIQ FAC: JPMorgan Chase Bank  
3.400% 07/01/12 (a)     1,740,000       1,740,000    
PR Commonwealth of Puerto Rico
Highway & Transportation Authority		  
Series 1999,  
Insured: AMBAC  
3.400% 01/01/19 (a)     17,005,000       17,005,000    
Series 2003,  
Insured: FGIC,  
SPA: Merrill Lynch
Capital Services		  
3.400% 01/01/11 (a)     19,595,000       19,595,000    
Series 2005 MT-174,  
Insured: CIFG,  
SPA: Merrill Lynch
Capital Services		  
3.230% 07/01/19 (a)(b)     4,945,000       4,945,000    
Series 2005,  
Insured: AMBAC,  
LIQ FAC: Dexia Credit Local  
3.150% 07/01/41 (a)(b)     76,130,000       76,041,467    
Series 2006-219,  
Insured: AMBAC,  
SPA: Merrill Lynch
Capital Services		  
3.400% 07/01/18 (a)(b)     6,735,000       6,735,000    
PR Commonwealth of Puerto Rico
Infrastructure Financing Authority		  
Series 2005 MT-172,  
Insured: FGIC,  
SPA: Merrill Lynch
Capital Services		  
3.230% 07/01/26 (a)(b)     2,485,000       2,485,000    
Series 2005 MT-173,  
Insured: AMBAC,  
SPA: Merrill Lynch
Capital Services		  
3.230% 07/01/26 (a)(b)     3,065,000       3,065,000    
Series 2006,  
Insured: AMBAC,  
SPA: Merrill Lynch
Capital Services		  
3.400% 07/01/18 (a)(b)     24,550,000       24,550,000    
PR Commonwealth of Puerto Rico Public Finance Corp.  
Series 2003-363,  
Insured: AMBAC,  
LIQ FAC: JPMorgan Chase Bank  
3.400% 12/01/19 (a)     4,000,000       4,000,000    

 

See Accompanying Notes to Financial Statements.

115


Columbia California Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
PR Commonwealth of Puerto Rico  
Series 2001,  
Insured: FSA,  
LIQ FAC: Bank of New York  
3.420% 07/01/27 (a)     20,160,000       20,160,000    
Series 2006:  
Insured: MBIA,  
SPA: Merrill Lynch
Capital Services		  
3.400% 07/01/18 (a)(b)     17,820,000       17,820,000    
LIQ FAC: Goldman Sachs  
3.440% 07/01/35 (a)     18,500,000       18,500,000    
PR TICS/TOCS Trust  
Series 2001-2,  
Insured: FSA,  
LIQ FAC: Bank of New York  
3.420% 07/01/19 (a)     19,245,000       19,245,000    
Puerto Rico Total             238,486,369    
Total Municipal Bonds
(Cost of $3,572,227,156)		             3,572,227,156    

 

Variable Rate Demand Notes – 1.7%

Puttable Floating Option Tax-Exempt Receipts  
Series 2006:  
Insured: FGIC:  
LIQ FAC: Merrill Lynch
Capital Services		  
3.490% 09/01/30 (a)     9,380,000       9,380,000    
SPA: Merrill Lynch
Capital Services		  
3.490% 08/01/30 (a)     4,340,000       4,340,000    
Insured: FSA, MBIA, FGIC,
AMBAC,		  
SPA: Merrill Lynch
Capital Services		  
3.490% 02/01/38 (a)     29,065,000       29,065,000    
Insured: MBIA,  
SPA: Merrill Lynch
Capital Services		  
3.490% 12/01/34 (a)     18,790,000       18,790,000    
Total Variable Rate Demand Notes
(Cost of $61,575,000)		             61,575,000    
Total Investments – 97.7%
(Cost of $3,633,802,156)(c)		             3,633,802,156    
Other Assets & Liabilities, Net – 2.3%             85,929,849    
Net Assets – 100.0%           $ 3,719,732,005    

 

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) Illiquid security.

(c) Cost for federal income tax purposes is $3,633,802,156.

Acronym   Name  
AMBAC   Ambac Assurance Corp.  
AMT   Alternative Minimum Tax  
CIFG   CIFG Assurance North America, Inc.  
FGIC   Financial Guaranty Insurance Co.  
FHLMC   Federal Home Loan Mortgage Corp.  
FNMA   Federal National Mortgage Association  
FSA   Financial Security Assurance, Inc.  
GIC   Guaranteed Investment Contract  
GTY AGMT   Guaranty Agreement  
LIQ FAC   Liquidity Facility  
LOC   Letter of Credit  
MBIA   MBIA Insurance Corp.  
SPA   Stand-by Purchase Agreement  
XLCA   XL Capital Assurance, Inc.  

 

See Accompanying Notes to Financial Statements.

116


Investment Portfolio Columbia New York Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds – 101.7%

New York – 96.6%  
    Par ($)   Value ($)  
NY Albany Industrial Development Agency  
Daughters of Sarah
Housing Co., Inc.,		  
Series 2001 A, LOC: Troy
Savings Bank,		  
LOC: KeyBank N.A  
3.450% 03/01/31 (a)     6,895,000       6,895,000    
NY Allegany County Industrial Development Agency  
Series 2004 A,  
LOC: KeyBank N.A.  
3.480% 04/01/29 (a)     4,840,000       4,840,000    
NY Battery Park City Authority  
Series 2003,  
LIQ FAC: Citigroup
Global Markets		  
3.450% 11/01/21 (a)     5,265,000       5,265,000    
NY Clifton Park Industrial Development Agency  
Community School of Naples, Inc.,  
Series 2006,  
Insured: FHLMC  
3.390% 05/01/31 (a)     4,500,000       4,500,000    
NY Dormitory Authority  
New York Hospital Medical Center,  
Series 1996,  
Insured: AMBAC  
5.250% 02/01/07     1,500,000       1,507,386    
Series 2002 E,  
Insured: MBIA  
6.000% 10/01/06     1,000,000       1,001,775    
Teresian Housing Corp.,  
Series 2003,  
LOC: Sovereign Bank FSB,  
LOC: Lloyds TSB Bank PLC  
3.360% 07/01/33 (a)     4,900,000       4,900,000    
NY Dutchess County Industrial Development Agency  
Marist College,  
Series 2005 A,  
LOC: Bank of New York  
3.400% 07/01/35 (a)     8,810,000       8,810,000    
Trinity Pawling School Corp.,  
Series 2002,  
LOC: Allied Irish Banks PLC  
3.400% 10/01/32 (a)     2,455,000       2,455,000    
NY East Farmingdale Volunteer Fire Co. Income Revenue  
Series 2002,  
LOC: Citibank N.A.  
3.430% 11/01/22 (a)     2,900,000       2,900,000    

 

    Par ($)   Value ($)  
NY Energy Research & Development Authority  
Long Island Lighting Co.,  
Series 1997 A, AMT,  
LOC: Royal Bank of Scotland  
3.460% 12/01/27 (a)     2,400,000       2,400,000    
NY Environmental Facilities Corp.  
Waste Management of
New York LLC,		  
Series 2002 B, AMT,  
LOC: JPMorgan Chase Bank  
3.460% 05/01/19 (a)     1,000,000       1,000,000    
NY Erie County Industrial Development Agency  
Orchard Park CCRC, Inc.,  
Series 2006 B,  
LOC: Sovereign Bank FSB,  
LOC: Citizens Bank of RI  
3.380% 11/15/36 (a)     15,000,000       15,000,000    
Series 1996,  
LOC: KeyBank of New York  
3.480% 11/01/16 (a)     735,000       735,000    
Series 2005 J,  
Insured: FSA,  
LIQ FAC: Goldman Sachs  
3.440% 05/01/12 (a)     2,565,000       2,565,000    
NY Forest City New Rochelle Revenue Certificates of Trust  
FC Washington-Lincoln LLC,  
Series 2003 C,  
LOC: Wachovia Bank N.A.  
3.450% 06/01/11 (a)     15,995,000       15,995,000    
NY Great Neck North Water Authority  
Series 1993 A,  
Insured: FGIC  
SPA: State Street Bank &
Trust Co.		  
3.390% 01/01/20 (a)     485,000       485,000    
NY GS Pool Trust  
Series 2006, AMT,  
LIQ FAC: Goldman Sachs  
3.510% 12/01/47 (a)     6,625,000       6,625,000    
NY Hempstead Industrial Development Agency  
Trigen-Nassau Energy Corp.,  
Series 1998, AMT,  
LOC: Societe Generale  
3.460% 09/15/15 (a)     2,800,000       2,800,000    
NY Housing Finance Agency  
1010 Sixth Associates LLC,  
Series 2000 A, AMT,  
Insured: FNMA  
3.400% 05/15/33 (a)     3,150,000       3,150,000    

 

See Accompanying Notes to Financial Statements.

117


Columbia New York Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
17th & 10th Associates,  
Series 2006 A, AMT,  
LOC: Landesbank
Baden-Wurttemberg		  
3.420% 11/01/39 (a)     3,000,000       3,000,000    
345 East 94th Street Associates,  
Series 1999 A, AMT,  
Insured: FHLMC  
3.400% 11/01/30 (a)     4,000,000       4,000,000    
Barclay Street Realty LLC,  
Series 2004 A,  
Insured: FNMA  
3.390% 11/15/37 (a)     2,545,000       2,545,000    
Biltmore Tower LLC,  
Series 2002 A, AMT,  
Insured: FNMA  
3.460% 05/15/34 (a)     800,000       800,000    
Chelsea Apartments,  
Series 2003 A, AMT,  
Insured: FNMA  
3.440% 11/15/36 (a)     500,000       500,000    
Housing South Cove Plaza,  
Series 1999 A, AMT,  
3.440% 11/01/30 (a)     450,000       450,000    
Liberty Street Realty LLC,  
Series 2003 A,  
Insured: FHLMC  
3.370% 05/01/35 (a)     3,650,000       3,650,000    
North End Avenue Housing,  
Series 2004 A,  
LOC: Landesbank
Hessen-Thuringen		  
3.430% 11/01/37 (a)     1,500,000       1,500,000    
Series 1991,  
LOC: Landesbank
Hessen-Thuringen		  
3.350% 05/15/15 (a)     4,715,000       4,715,000    
Series 2003 A, AMT,  
Insured: FHLMC  
3.450% 11/01/35 (a)     500,000       500,000    
Yorkville Plaza Associates,  
Series 1999 A, AMT,  
Insured: FHLMC  
3.420% 11/01/29 (a)     900,000       900,000    
NY Liberty Development Corp.  
 377 Greenwich LLC,   
Series 2004,  
LOC: Wells Fargo Bank N.A.  
3.320% 12/01/39 (a)     4,280,000       4,280,000    

 

    Par ($)   Value ($)  
NY Local Government Assistance Corp.  
Series 1995 E,  
LOC: Landesbank
Hessen-Thuringen		  
3.330% 04/01/25 (a)     1,900,000       1,900,000    
Series 2000,  
Insured: FGIC,  
LIQ FAC: Lloyds TSB Bank PLC  
3.250% 04/01/10 (a)(b)     6,525,000       6,520,970    
NY Long Island Power Authority  
Series 1998 1-A,  
LOC: Bayerische Landesbank,  
LOC: Landesbank
Baden-Wurttemberg		  
3.410% 05/01/33 (a)     1,000,000       1,000,000    
Series 1998 3-A,  
LOC: JPMorgan Chase Bank,  
LOC: Landesbank
Baden-Wurttemberg		  
3.350% 05/01/33 (a)     4,500,000       4,500,000    
NY Metropolitan Transportation Authority  
Series 2003 A,  
Insured: MBIA,  
SPA: Citibank N.A.  
3.460% 11/15/28 (a)     7,235,000       7,235,000    
Series 2003,  
Insured: AMBAC,  
SPA: Merrill Lynch
Capital Services		  
3.440% 11/15/10 (a)     1,235,000       1,235,000    
Series 2005 E-1,  
LOC: Fortis Bank SA/NV  
3.390% 11/01/35 (a)     1,200,000       1,200,000    
NY Monroe County Industrial Development Agency  
DePaul Properties, Inc.,  
Series 2006,  
LOC: KeyBank N.A.  
3.420% 06/01/26 (a)     6,695,000       6,695,000    
Series 1998,  
LOC: KeyBank N.A.  
3.480% 08/01/18 (a)     3,340,000       3,340,000    
St. Ann's Nursing Home Co., Inc.,  
Series 2000,  
LOC: HSBC Bank USA  
3.400% 07/01/30 (a)     2,900,000       2,900,000    
St. Ann's Nursing Home
for the Aged,		  
Series 2000,  
LOC: HSBC Bank USA  
3.400% 07/01/30 (a)     395,000       395,000    

 

See Accompanying Notes to Financial Statements.

118


Columbia New York Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
NY Nassau Health Care Corp.  
Series 2004 C-3,  
Insured: FSA,  
SPA: Dexia Credit Local  
3.370% 08/01/29 (a)     700,000       700,000    
NY New Rochelle Municipal Housing Authority  
Multi-Family Housing Mortgage
Revenue,		  
New Rochelle Sound Shore,  
Series 2005 A,  
Insured: FNMA  
3.390% 12/15/35 (a)     1,235,000       1,235,000    
NY New York City Housing Development Corp.  
James West Ninety LLC,  
Series 2002 A,  
Insured: FNMA  
3.350% 06/15/32 (a)     1,385,000       1,385,000    
RBNB 20 Owner LLC,  
Series 2006 A,  
LOC: Landesbank
Hessen-Thuringen		  
3.420% 06/01/39 (a)     12,835,000       12,835,000    
Series 2004 A, AMT,  
Insured: FNMA  
3.420% 05/15/34 (a)     5,315,000       5,315,000    
Series 2005 A, AMT,  
Insured: FNMA  
3.420% 11/15/35 (a)     5,000,000       5,000,000    
Upper East Lease Associates LLC,  
Series 2003 A, AMT,  
LOC: Landesbank Baden-Wurttemberg  
3.460% 12/01/36 (a)     1,000,000       1,000,000    
NY New York City Industrial Development Agency  
Abigail Press, Inc.,  
Series 2002,  
LOC: JPMorgan Chase Bank  
3.650% 12/01/18 (a)     402,300       402,300    
Allen-Stevenson School,  
Series 2004,  
LOC: Allied Irish Bank PLC  
3.420% 12/01/34 (a)     1,000,000       1,000,000    
Korean Airlines Co.,  
Series 1997 A, AMT,  
LOC: HSBC Bank USA  
3.410% 11/01/24 (a)     7,880,000       7,880,000    
NY New York City Municipal Water Finance Authority  
Series 2005 Class A,  
Insured: FSA,  
LIQ FAC: Citibank N.A.  
3.670% 06/15/36 (a)     5,000,000       5,000,000    

 

    Par ($)   Value ($)  
NY New York City Trust for Cultural Resources  
Series 1989,  
LOC: KBC Bank N.V.  
3.350% 05/01/14 (a)     1,215,000       1,215,000    
NY New York City  
Series 2004 C-3,  
Insured: CIFG,  
SPA: DEPFA Bank PLC  
3.400% 08/15/29 (a)     13,240,000       13,240,000    
Series 2004 -H1,  
LOC: Bank of New York  
3.540% 03/01/34 (a)     5,620,000       5,620,000    
Series 2005 PT-3171,  
Insured: XLCA,  
LIQ FAC: Merrill Lynch
Capital Services		  
3.440% 09/01/22 (a)     1,000,000       1,000,000    
NY Newburgh Industrial Development Agency  
Multi-Family Housing Revenue,  
Series 2005,  
SPA: Merrill Lynch Capital Services,  
GTY AGMT: Merrill Lynch & Co.  
3.540% 07/01/41 (a)     975,000       975,000    
NY Oneida County Industrial Development Agency  
Hamilton College, Series 2002,  
Insured: MBIA  
SPA: Bank of New York  
3.390% 09/15/32 (a)     940,000       940,000    
Preswick Glen, Inc.,  
Series 2006,  
LOC: Sovereign Bank FSB,  
LOC: Lloyds TSB Bank PLC  
3.360% 10/01/36 (a)     5,000,000       5,000,000    
NY Onondaga County Industrial Development Agency  
General Super Plating Co., Inc.,  
Series 2005, AMT,  
LOC: Citizens Bank  
3.550% 04/01/25 (a)     2,140,000       2,140,000    
3.620% 09/06/06     1,735,000       1,735,000    
NY Port Authority of New York & New Jersey  
Series 2003, AMT,  
Insured: AMBAC,  
LIQ FAC: Citibank N.A.  
3.470% 12/15/32 (a)     220,000       220,000    
Series 2005, AMT,  
Insured: AMBAC,  
SPA: BNP Paribas  
3.470% 03/01/13 (a)     500,000       500,000    

 

See Accompanying Notes to Financial Statements.

119


Columbia New York Tax-Exempt Reserves (August 31, 2006)

Municipal Bonds (continued)

    Par ($)   Value ($)  
NY Power Authority  
Series 1985,  
LIQ FAC: Dexia Credit Local:  
3.600% 03/01/16 (a)(c)     2,000,000       2,000,000    
3.600% 03/01/20 (a)     5,000,000       4,998,736    
NY Riverhead Industrial Development Authority  
Central Suffolk Hospital,  
Series 2006 A,  
LOC: HSBC Bank USA N.A.  
3.390% 07/01/31 (a)     7,000,000       7,000,000    
NY Syracuse Industrial Development Agency  
Byrne Dairy, Inc.,  
Series 1988, AMT,  
LOC: Chase Manhattan Bank  
3.700% 08/01/08 (a)     3,900,000       3,900,000    
NY Thruway Authority  
Series 2005 PT-3216,  
Insured: FSA,  
SPA: DEPFA Bank PLC  
3.430% 01/01/32 (a)     345,000       345,000    
Series 2005,  
Insured: FSA,  
LIQ FAC: Citigroup
Global Markets		  
3.450% 01/01/24 (a)     995,000       995,000    
Series 2006,  
Insured: AMBAC:  
LIQ FAC: Citibank N.A.  
3.450% 04/01/25 (a)     2,000,000       2,000,000    
LIQ FAC: Merrill Lynch
Capital Services		  
3.440% 04/01/25 (a)     7,000,000       7,000,000    
NY Tobacco Settlement Financing Corp.  
Series 2004 PT-972,  
Insured: AMBAC,  
SPA: Merrill Lynch
Capital Services		  
3.700% 08/12/11 (a)(b)     8,995,000       8,995,000    
NY Tompkins County Industrial
Development Agency Revenue		  
Care Community Kendal Ithaca,  
Series 2000,  
LOC: Wachovia Bank N.A.  
3.410% 06/01/25 (a)     1,415,000       1,415,000    
NY Triborough Bridge & Tunnel Authority  
Series 1997,  
5.000% 01/01/07     1,025,000       1,027,944    
Series 2002 F,  
SPA: ABN AMRO Bank N.V.  
3.370% 11/01/32 (a)     7,400,000       7,400,000    

 

    Par ($)   Value ($)  
NY Westchester County Industrial Development  
Levister Redevelopment Co. LLC,  
Series 2001 B, AMT,  
LOC: Wachovia Bank N.A.  
3.390% 08/01/33 (a)     1,000,000       1,000,000    
Westchester Jewish Project,  
Series 1998,  
LOC: Chase Manhattan Bank  
3.650% 10/01/28 (a)     990,000       990,000    
New York Total             280,994,111    
Puerto Rico – 5.1%  
PR Commonwealth of Puerto Rico
Highway & Transportation Authority		  
Series 2005,  
Insured: AMBAC,  
LIQ FAC: Dexia Credit Local  
3.150% 07/01/41 (a)(b)     2,000,000       1,997,890    
Series 2006,  
Insured: AMBAC,  
SPA: Merrill Lynch Capital Services  
3.400% 07/01/18 (a)(b)     3,500,000       3,500,000    
PR Commonwealth of Puerto Rico
Infrastructure Financing Authority		  
Series 2006,  
Insured: AMBAC,  
SPA: Merrill Lynch & Co.  
3.400% 07/01/28 (a)     1,000,000       1,000,000    
PR Commonwealth of Puerto Rico  
Series 2001,  
Insured: FSA,  
LIQ FAC: Bank of New York  
3.420% 07/01/27 (a)     2,265,000       2,265,000    
Series 2006,  
LIQ FAC: Goldman Sachs & Co.,  
GTY AGMT: Goldman Sachs & Co.  
3.440% 07/01/35 (a)     6,000,000       6,000,000    
Puerto Rico Total             14,762,890    
Total Municipal Bonds
(Cost of $295,757,001)		             295,757,001    
Total Investments – 101.7%
(Cost of $295,757,001) (d)		             295,757,001    
Other Assets & Liabilities, Net – (1.7)%             (5,081,150 )  
Net Assets – 100.0%           $ 290,675,851    

 

See Accompanying Notes to Financial Statements.

120


Columbia New York Tax-Exempt Reserves (August 31, 2006)

Notes to Investment Portfolio:

(a) The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

(b) Illiquid security.

(c) Security purchased on a delayed delivery basis.

(d) Cost for federal income tax purposes is $295,757,001.

Acronym   Name  
AMBAC   Ambac Assurance Corp.  
AMT   Alternative Minimum Tax  
CIFG   CIFG Assurance North America, Inc.  
FGIC   Financial Guaranty Insurance Co.  
FHLMC   Federal Home Loan Mortgage Corp.  
FNMA   Federal National Mortgage Association  
FSA   Financial Security Assurance, Inc.  
GTY AGMT   Guaranty Agreement  
LIQ FAC   Liquidity Facility  
LOC   Letter of Credit  
MBIA   MBIA Insurance Corp.  
SPA   Stand-by Purchase Agreement  
XLCA   XL Capital Assurance, Inc.  

 

See Accompanying Notes to Financial Statements.

121



Statements of Assets and Liabilities – Columbia Money Market Funds (August 31, 2006)

    ($)   ($)   ($)   ($)  
    Columbia
Cash
Reserves		   Columbia
Money Market
Reserves		   Columbia
Treasury
Reserves		   Columbia
Government
Reserves		  
Assets  
Investments, (including repurchase agreements), at identified cost     64,076,726,585       17,237,611,029       15,712,099,452       5,506,248,510    
Investments, at value     59,469,277,585       15,195,060,029       2,479,022,452       5,506,248,510    
Repurchase agreements, at value     4,607,449,000       2,042,551,000       13,233,077,000       —    
Total investments, at value     64,076,726,585       17,237,611,029       15,712,099,452       5,506,248,510    
Cash     116       121       1,242       939    
Receivable for:  
Investments sold     22,004,381       96,012,447       —       105,911    
Capital stock sold     29,077,842       1,232,754       112,902       —    
Interest     423,833,248       81,614,777       8,821,683       25,302,562    
Other     67,788       18,190       —       —    
Expense reimbursement due from Investment Advisor/Administrator     1,998,472       772,113       290,629       288,685    
Deferred Trustees' compensation plan     42,445       284,079       302,254       102,826    
Other assets     —       30,482       —       —    
Total Assets     64,553,750,877       17,417,575,992       15,721,628,162       5,532,049,433    
Liabilities  
Payable for:  
Investments purchased     531,940,000       199,985,460       1,946,071,833       82,000,000    
Capital stock redeemed     5,629,607       568,191       70,536       561,494    
Distributions     92,672,394       32,133,837       36,991,588       7,874,066    
Investment advisory fee     6,367,272       1,758,387       1,439,106       569,028    
Administration fee     5,294,927       1,453,047       1,185,919       461,581    
Transfer agent fee     147,658       42,509       17,821       18,857    
Pricing and bookkeeping fees     15,739       14,474       13,897       13,947    
Trustees' fees     299,845       71,422       213,590       107,065    
Audit fee     37,273       42,273       35,273       40,273    
Custody fee     121,672       31,349       17,900       38,881    
Legal fee     105,105       59,777       67,000       51,637    
Distribution and service fees     13,423,106       1,459,298       2,480,753       795,591    
Chief compliance officer expenses     2,500       2,500       2,500       2,500    
Deferred Trustees' fees     42,445       284,079       302,254       102,826    
Other liabilities     1,256,212       144,922       52,636       68,982    
Total Liabilities     657,355,755       238,051,525       1,988,962,606       92,706,728    
Net Assets     63,896,395,122       17,179,524,467       13,732,665,556       5,439,342,705    
Net Assets consist of          
Paid-in capital     63,912,122,836       17,181,935,591       13,734,513,304       5,440,167,390    
Undistributed (overdistributed) net investment income     307,881       149,231       (155,379 )     261,683    
Accumulated net realized gain (loss)     (16,035,595 )     (2,560,355 )     (1,692,369 )     (1,086,368 )  
Net Assets     63,896,395,122       17,179,524,467       13,732,665,556       5,439,342,705    

 

See Accompanying Notes to Financial Statements.

122


    ($)   ($)   ($)   ($)  
    Columbia
Municipal
Reserves		   Columbia
Tax-Exempt
Reserves		   Columbia
California
Tax-Exempt
Reserves		   Columbia
New York
Tax-Exempt
Reserves		  
Assets  
Investments, (including repurchase agreements), at identified cost     9,121,478,269       5,530,538,119       3,633,802,156       295,757,001    
Investments, at value     9,121,478,269       5,530,538,119       3,633,802,156       295,757,001    
Repurchase agreements, at value     —       —       —       —    
Total investments, at value     9,121,478,269       5,530,538,119       3,633,802,156       295,757,001    
Cash     9,956       5,005       3,642       4,607    
Receivable for:  
Investments sold     82,900,000       —       75,109,747       —    
Capital stock sold     155,719       29,424       200,000       —    
Interest     47,600,201       24,607,931       15,678,211       1,305,043    
Other     —       —       —       —    
Expense reimbursement due from Investment Advisor/Administrator     228,035       220,149       134,235       61,331    
Deferred Trustees' compensation plan     12,397       120,946       —       1,932    
Other assets     40,384       —       —       1,028    
Total Assets     9,252,424,961       5,555,521,574       3,724,927,991       297,130,942    
Liabilities  
Payable for:  
Investments purchased     103,458,109       13,000,000       —       6,000,000    
Capital stock redeemed     389,162       1,283       1,478,481       —    
Distributions     4,839,021       10,727,667       1,878,342       228,082    
Investment advisory fee     859,849       565,458       384,804       37,593    
Administration fee     703,480       458,829       306,549       16,738    
Transfer agent fee     13,810       8,643       6,716       509    
Pricing and bookkeeping fees     15,617       14,639       13,917       8,702    
Trustees' fees     71,529       112,958       64,705       39,064    
Audit fee     35,273       37,273       33,273       39,273    
Custody fee     12,901       208       208       1,008    
Legal fee     53,204       50,603       50,291       47,931    
Distribution and service fees     1,031,676       291,464       928,626       24,619    
Chief compliance officer expenses     2,500       2,500       2,500       834    
Deferred Trustees' fees     12,397       120,946       —       1,932    
Other liabilities     41,481       35,021       47,574       8,806    
Total Liabilities     111,540,009       25,427,492       5,195,986       6,455,091    
Net Assets     9,140,884,952       5,530,094,082       3,719,732,005       290,675,851    
Net Assets consist of  
Paid-in capital     9,140,802,582       5,530,072,470       3,719,670,803       290,669,749    
Undistributed (overdistributed) net investment income     79,552       21,612       108,958       11,318    
Accumulated net realized gain (loss)     2,818       —       (47,756 )     (5,216 )  
Net Assets     9,140,884,952       5,530,094,082       3,719,732,005       290,675,851    

 

See Accompanying Notes to Financial Statements.

123


Statements of Assets and Liabilities – Columbia Money Market Funds (August 31, 2006)

    Columbia
Cash
Reserves		   Columbia
Money Market
Reserves		   Columbia
Treasury
Reserves		   Columbia
Government
Reserves		  
Capital Class Shares  
Net assets   $ 16,908,923,861     $ 6,625,009,629     $ 2,254,712,244     $ 1,671,183,781    
Shares outstanding     16,914,325,398       6,626,097,882       2,255,631,947       1,671,293,529    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Trust Class Shares  
Net assets   $ 3,897,869,151     $ 20,084,599     $ 753,036,466     $ 300,749,833    
Shares outstanding     3,899,048,300       20,087,573       753,531,201       300,765,249    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Liquidity Class Shares  
Net assets   $ 1,249,961,608     $ 1,254,382,706     $ 463,197,874     $ 890,545,480    
Shares outstanding     1,250,220,688       1,254,466,757       463,235,767       890,640,599    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Adviser Class Shares  
Net assets   $ 15,815,912,022     $ 5,666,479,983     $ 7,525,632,626     $ 1,119,731,619    
Shares outstanding     15,819,805,594       5,667,033,646       7,526,892,673       1,120,091,573    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Investor Class Shares  
Net assets   $ 1,406,931,799     $ 80,137,433     $ 180,073,141     $ 373,641,207    
Shares outstanding     1,407,945,093       80,135,214       180,406,469       373,906,895    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Market Class Shares  
Net assets   $ 5,096,469     $ 367,341     $ 11,394     $ 26,752    
Shares outstanding     5,097,003       367,362       11,395       26,755    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Daily Class Shares  
Net assets   $ 17,402,204,769     $ 3,536,142     $ 648,575,946     $ 540,518,407    
Shares outstanding     17,405,935,015       3,535,220       648,806,509       540,553,063    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Class A Shares  
Net assets   $ 315,859,003       —     $ 593,732,980     $ 24,001,811    
Shares outstanding     316,007,350       —       594,407,886       23,980,388    
Net asset value per share   $ 1.00       —     $ 1.00     $ 1.00    
Class B Shares  
Net assets   $ 56,906,369     $ 5,125,506     $ 312,267     $ 300,266    
Shares outstanding     56,974,462       5,125,596       312,307       300,116    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Class C Shares  
Net assets   $ 5,752,344     $ 917,553       —       —    
Shares outstanding     5,753,197       917,670       —       —    
Net asset value per share   $ 1.00     $ 1.00       —       —    

 

See Accompanying Notes to Financial Statements.

124


    Columbia
Municipal
Reserves		   Columbia
Tax-Exempt
Reserves		   Columbia
California
Tax-Exempt
Reserves		   Columbia
New York
Tax-Exempt
Reserves		  
Capital Class Shares  
Net assets   $ 5,245,065,460     $ 1,688,337,955     $ 509,180,637     $ 44,563,308    
Shares outstanding     5,245,017,029       1,688,286,745       509,173,787       44,563,036    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Trust Class Shares  
Net assets   $ 551,809,610     $ 2,684,441,010     $ 517,339,929     $ 31,363,826    
Shares outstanding     551,752,690       2,684,822,935       517,330,079       31,359,806    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Liquidity Class Shares  
Net assets   $ 339,422,312     $ 20,548,758     $ 27,556,696       —    
Shares outstanding     339,391,129       20,548,859       27,557,567       —    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00       —    
Adviser Class Shares  
Net assets   $ 661,679,620     $ 75,078,805     $ 376,972,664     $ 4,695,263    
Shares outstanding     661,720,163       75,078,804       376,946,927       4,695,319    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Investor Class Shares  
Net assets   $ 74,218,557     $ 7,376,349     $ 205,498,968       —    
Shares outstanding     74,255,605       7,352,236       205,514,035       —    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00       —    
Market Class Shares  
Net assets   $ 23,188       —     $ 10,222     $ 37,819,939    
Shares outstanding     23,188       —       10,222       37,817,924    
Net asset value per share   $ 1.00       —     $ 1.00     $ 1.00    
Daily Class Shares  
Net assets   $ 1,433,097,171     $ 26,832,645     $ 1,394,666,935       —    
Shares outstanding     1,433,025,084       26,718,961       1,394,681,226       —    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00       —    
Class A Shares  
Net assets     —     $ 17,858,959       —       —    
Shares outstanding     —       17,822,828       —       —    
Net asset value per share     —     $ 1.00       —       —    
Class B Shares  
Net assets   $ 65,250       —     $ 6,701       —    
Shares outstanding     65,415       —       6,701       —    
Net asset value per share   $ 1.00       —     $ 1.00       —    
Class C Shares  
Net assets     —       —       —       —    
Shares outstanding     —       —       —       —    
Net asset value per share     —       —       —       —    

 

See Accompanying Notes to Financial Statements.

125


Statements of Assets and Liabilities – Columbia Money Market Funds (August 31, 2006)

    Columbia
Cash
Reserves		   Columbia
Money Market
Reserves		   Columbia
Treasury
Reserves		   Columbia
Government
Reserves		  
Class Z Shares  
Net assets   $ 729,504,155       —       —       —    
Shares outstanding     730,340,089       —       —       —    
Net asset value per share   $ 1.00       —       —       —    
Institutional Class Shares  
Net assets   $ 6,090,241,127     $ 2,691,467,650     $ 1,313,380,618     $ 193,419,660    
Shares outstanding     6,091,557,620       2,691,842,470       1,313,489,810       193,420,846    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Marsico Shares  
Net assets   $ 11,232,445       —       —       —    
Shares outstanding     11,233,804       —       —       —    
Net asset value per share   $ 1.00       —       —       —    
Retail A Shares  
Net assets     —     $ 101,775,799       —     $ 63,572,501    
Shares outstanding     —       101,753,301       —       63,598,688    
Net asset value per share     —     $ 1.00       —     $ 1.00    
G-Trust Shares  
Net assets     —     $ 730,240,126       —     $ 261,651,388    
Shares outstanding     —       730,529,598       —       261,770,655    
Net asset value per share     —     $ 1.00       —     $ 1.00    

 

See Accompanying Notes to Financial Statements.

126


    Columbia
Municipal
Reserves		   Columbia
Tax-Exempt
Reserves		   Columbia
California
Tax-Exempt
Reserves		   Columbia
New York
Tax-Exempt
Reserves		  
Class Z Shares  
Net assets   $ 51,605,545       —       —       —    
Shares outstanding     51,711,298       —       —       —    
Net asset value per share   $ 1.00       —       —       —    
Institutional Class Shares  
Net assets   $ 783,898,239     $ 269,864,934     $ 688,499,253     $ 154,605,484    
Shares outstanding     783,886,520       269,862,725       688,519,987       154,600,862    
Net asset value per share   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Marsico Shares  
Net assets     —       —       —       —    
Shares outstanding     —       —       —       —    
Net asset value per share     —       —       —       —    
Retail A Shares  
Net assets     —     $ 18,502,842       —     $ 79,637    
Shares outstanding     —       18,540,539       —       79,676    
Net asset value per share     —     $ 1.00       —     $ 1.00    
G-Trust Shares  
Net assets     —     $ 721,251,825       —     $ 17,548,394    
Shares outstanding     —       721,305,028       —       17,553,028    
Net asset value per share     —     $ 1.00       —     $ 1.00    

 

See Accompanying Notes to Financial Statements.

127



Statements of Operations – Columbia Money Market Funds
(For the Period April 1, 2006 through August 31, 2006)

    ($)   ($)   ($)   ($)  
    Columbia
Cash
Reserves (a)		   Columbia
Money Market
Reserves (a)		   Columbia
Treasury
Reserves (a)		   Columbia
Government
Reserves (a)		  
Investment Income  
Interest     1,354,404,848       356,964,267       286,077,843       110,755,758    
Expenses  
Investment advisory fee     39,685,049       10,432,579       8,522,882       3,272,020    
Administration fee     26,390,690       6,889,044       5,615,912       2,115,338    
Distribution fee:  
Investor Class Shares     591,831       38,176       82,936       179,567    
Market Class Shares     3,366       288       9       23    
Daily Class Shares     25,108,949       5,711       990,821       830,253    
Class A Shares     107,912       —       263,931       8,745    
Class B Shares     177,884       16,066       880       878    
Class C Shares     15,084       1,804       —       —    
Service fee:  
Trust Class Shares     1,574,763       17,727       281,384       141,180    
Liquidity Class Shares     1,317,351       1,332,833       478,923       738,999    
Adviser Class Shares     15,649,500       5,389,127       7,702,949       1,219,655    
Investor Class Shares     1,479,579       95,441       207,339       448,918    
Market Class Shares     4,208       360       12       28    
Daily Class Shares     17,934,963       4,079       707,729       593,038    
Class A Shares     377,692       —       923,760       30,609    
Class B Shares     83,012       7,497       411       410    
Class C Shares     7,039       842       —       —    
Institutional Class Shares     1,018,267       461,192       204,057       34,238    
Marsico Shares     16,955       —       —       —    
Retail A Shares     —       30,663       —       24,431    
Transfer agent fee     532,659       134,053       35,799       56,822    
Pricing and bookkeeping fees     79,574       73,091       70,042       69,930    
Trustees' fees     39,173       19,022       23,734       20,203    
Custody fee     657,781       175,883       88,049       62,381    
Audit fee     47,211       47,391       39,926       44,127    
Legal fees     65,000       35,699       42,973       30,613    
Chief compliance officer expenses (See Note 4)     6,250       6,250       6,250       6,250    
Other expenses     1,907,441       635,688       172,595       252,842    
Total Expenses     134,879,183       25,850,506       26,463,303       10,181,498    
Expenses waived/reimbursed by Investment Advisor/Administrator     (16,504,916 )     (4,518,353 )     (3,256,173 )     (1,568,520 )  
Fees waived by Shareholder Service Provider - Liquidity Class Shares     (526,941 )     (533,133 )     (191,569 )     (295,600 )  
Custody earnings credit     (93,599 )     (22,556 )     (3 )     (99 )  
Net Expenses     117,753,727       20,776,464       23,015,558       8,317,279    
Net Investment Income     1,236,651,121       336,187,803       263,062,285       102,438,479    
Net realized gain (loss) on investments     (4,996,257 )     (1,034,870 )     (279,403 )     (661,682 )  
Net Increase in Net Assets from Operations     1,231,654,864       335,152,933       262,782,882       101,776,797    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31.

See Accompanying Notes to Financial Statements.

128


    ($)   ($)   ($)   ($)  
    Columbia
Municipal
Reserves (a)		   Columbia
Tax-Exempt
Reserves (a)		   Columbia
California
Tax-Exempt
Reserves (a)		   Columbia
New York
Tax-Exempt
Reserves (a)		  
Investment Income  
Interest     120,760,201       76,309,315       51,771,209       4,199,638    
Expenses  
Investment advisory fee     4,999,834       3,204,177       2,202,811       176,597    
Administration fee     3,267,214       2,070,109       1,402,532       76,563    
Distribution fee:  
Investor Class Shares     29,060       2,777       97,459       —    
Market Class Shares     10       —       8       29,235    
Daily Class Shares     2,060,476       42,886       1,968,248       —    
Class A Shares     —       9,864       —       —    
Class B Shares     282       —       21       —    
Class C Shares     —       —       —       —    
Service fee:  
Trust Class Shares     225,218       1,065,968       203,115       15,062    
Liquidity Class Shares     343,556       15,061       30,383       —    
Adviser Class Shares     583,043       36,912       335,499       3,617    
Investor Class Shares     72,651       6,941       243,648       —    
Market Class Shares     12       —       11       36,544    
Daily Class Shares     1,471,768       30,633       1,405,892       —    
Class A Shares     —       34,524       —       —    
Class B Shares     132       —       10       —    
Class C Shares     —       —       —       —    
Institutional Class Shares     132,466       31,699       112,243       26,839    
Marsico Shares     —       —       —       —    
Retail A Shares     —       7,194       —       33    
Transfer agent fee     32,854       30,057       11,793       1,249    
Pricing and bookkeeping fees     78,227       73,972       70,945       42,834    
Trustees' fees     19,030       20,398       18,896       17,777    
Custody fee     52,735       39,873       40,948       5,006    
Audit fee     39,363       41,098       36,880       42,635    
Legal fees     31,485       30,040       29,864       28,553    
Chief compliance officer expenses (See Note 4)     6,250       6,250       6,250       2,115    
Other expenses     174,608       235,130       78,473       12,730    
Total Expenses     13,620,274       7,035,563       8,295,929       517,389    
Expenses waived/reimbursed by Investment Advisor/Administrator     (1,990,296 )     (1,439,708 )     (933,181 )     (169,692 )  
Fees waived by Shareholder Service Provider - Liquidity Class Shares     (137,422 )     (6,024 )     (12,153 )     —    
Custody earnings credit     (45,946 )     (39,873 )     (29,616 )     (938 )  
Net Expenses     11,446,610       5,549,958       7,320,979       346,759    
Net Investment Income     109,313,591       70,759,357       44,450,230       3,852,879    
Net realized gain (loss) on investments     96,268       59,479       4,090       (5,216 )  
Net Increase in Net Assets from Operations     109,409,859       70,818,836       44,454,320       3,847,663    

 

See Accompanying Notes to Financial Statements.

129


Statements of Operations – Columbia Money Market Funds
(For the Year Ended March 31, 2005)

    ($)   ($)   ($)   ($)  
    Columbia
Cash
Reserves		   Columbia
Money Market
Reserves		   Columbia
Treasury
Reserves		   Columbia
Government
Reserves		  
Investment Income  
Interest     2,085,062,524       517,557,364       433,047,597       171,871,526    
Expenses  
Investment advisory fee     82,081,496       20,111,601       17,424,708       6,876,801    
Administration fee     54,668,495       13,355,232       11,563,967       4,532,032    
Distribution fee:  
Investor Class Shares     1,563,801       101,151       293,394       376,493    
Market Class Shares     1,654       224       9       26    
Daily Class Shares     44,576,417       16,781       1,435,238       1,573,534    
Service Class Shares     —       15,835       —       —    
Class A Shares     277,374       —       650,284       23,770    
Class B Shares     265,470       42,851       1,761       4,395    
Class C Shares     12,800       3,746       —       —    
Service fee:  
Trust Class Shares     3,509,362       16,693       622,112       306,521    
Liquidity Class Shares     2,925,075       2,146,927       1,306,800       1,740,464    
Adviser Class Shares     32,258,738       8,230,219       16,166,768       2,213,270    
Investor Class Shares     3,910,199       253,030       733,578       941,246    
Market Class Shares     2,067       281       11       32    
Daily Class Shares     31,840,300       11,989       1,025,024       1,123,982    
Service Class Shares     —       7,054       —       —    
Class A Shares     970,874       —       2,276,003       83,226    
Class B Shares     123,847       19,979       821       2,051    
Class C Shares     5,954       1,738       —       —    
Institutional Class Shares     2,219,190       984,686       281,492       80,609    
Marsico Shares     39,088       —       —       —    
Retail A Shares     —       28,764       —       22,798    
Transfer agent fee     1,815,214       397,737       306,733       149,068    
Pricing and bookkeeping fees     97,285       57,193       54,368       54,692    
Trustees' fees     13,362       13,392       13,373       13,386    
Custody fee     2,256,811       523,894       407,775       178,916    
Audit fee     47,893       52,928       45,375       50,410    
Legal fees     142,779       81,847       79,541       69,268    
Chief compliance officer expenses (See Note 4)     15,000       15,000       15,000       15,000    
Other expenses     4,763,891       593,580       527,072       374,931    
Total Expenses     270,404,436       47,084,352       55,231,207       20,806,921    
Expenses waived/reimbursed by Investment Adviser/Administrator     (35,824,540 )     (8,370,498 )     (7,192,269 )     (3,091,325 )  
Fees waived by Shareholder Service Provider - Liquidity Class Shares     (1,170,020 )     (858,772 )     (522,720 )     (696,186 )  
Custody earnings credit     (634,237 )     (16,496 )     (12,789 )     (54,038 )  
Net Expenses     232,775,639       37,838,586       47,503,429       16,965,372    
Net Investment Income     1,852,286,885       479,718,778       385,544,168       154,906,154    
Net realized gain (loss) on investments     (8,445,462 )     (786,283 )     (462,549 )     (185,367 )  
Net increase in Net Assets from Operations     1,843,841,423       478,932,495       385,081,619       154,720,787    

 

See Accompanying Notes to Financial Statements.

130


    ($)   ($)   ($)   ($)  
    Columbia
Municipal
Reserves		   Columbia
Tax-Exempt
Reserves		   Columbia
California
Tax-Exempt
Reserves		   Columbia
New York
Tax-Exempt
Reserves		  
Investment Income  
Interest     178,033,706       102,442,422       78,530,919       5,092,988    
Expenses  
Investment advisory fee     9,569,187       5,553,568       4,311,514       274,968    
Administration fee     6,326,956       3,649,877       2,821,841       152,256    
Distribution fee:  
Investor Class Shares     72,468       11,672       276,822       —    
Market Class Shares     9       —       9       77,983    
Daily Class Shares     3,363,255       110,260       3,525,881       —    
Service Class Shares     —       —       —       —    
Class A Shares     —       26,584       —       —    
Class B Shares     599       —       49       —    
Class C Shares     —       —       —       —    
Service fee:  
Trust Class Shares     463,287       2,269,533       435,449       15,000    
Liquidity Class Shares     815,360       21,133       61,651       —    
Adviser Class Shares     1,232,296       61,674       1,276,862       3,454    
Investor Class Shares     181,168       29,167       692,047       —    
Market Class Shares     11       —       11       97,478    
Daily Class Shares     2,402,325       78,757       2,518,636       —    
Service Class Shares     —       —       —       —    
Class A Shares     —       93,042       —       —    
Class B Shares     279       —       23       —    
Class C Shares     —       —       —       —    
Institutional Class Shares     275,481       62,568       110,516       41,530    
Marsico Shares     —       —       —       —    
Retail A Shares     —       6,304       —       1,187    
Transfer agent fee     186,228       160,850       70,599       4,894    
Pricing and bookkeeping fees     87,690       72,771       67,691       34,454    
Trustees' fees     13,392       13,386       13,392       13,374    
Custody fee     281,613       208,196       108,044       11,977    
Audit fee     45,375       48,575       42,859       50,931    
Legal fees     72,350       67,776       66,992       63,013    
Chief compliance officer expenses (See Note 4)     15,000       15,000       14,392       4,728    
Other expenses     307,478       333,998       106,105       21,761    
Total Expenses     25,711,807       12,894,691       16,521,385       868,988    
Expenses waived/reimbursed by Investment Adviser/Administrator     (4,105,444 )     (2,609,632 )     (1,863,131 )     (263,365 )  
Fees waived by Shareholder Service Provider - Liquidity Class Shares     (326,144 )     (8,453 )     (24,660 )     —    
Custody earnings credit     (40,901 )     (109,347 )     (11,873 )     (2,585 )  
Net Expenses     21,239,318       10,167,259       14,621,721       603,038    
Net Investment Income     156,794,388       92,275,163       63,909,198       4,489,950    
Net realized gain (loss) on investments     (2,404 )     (56,994 )     (23,846 )     721    
Net increase in Net Assets from Operations     156,791,984       92,218,169       63,885,352       4,490,671    

 

See Accompanying Notes to Financial Statements.

131



Statements of Changes in Net Assets – Columbia Money Market Funds

Increase (Decrease) in Net Assets   Columbia Cash Reserves   Columbia Money Market Reserves  
    Period April 1
through
August 31,		  

Year Ended March 31,		   Period April 1
through
August 31,		  

Year Ended March 31,		  
    2006(a)($)   2006(b)(c)($)   2005($)   2006(a)($)   2006(b)(d)(e)(f)(g)($)   2005($)  
Operations  
Net investment income     1,236,651,121       1,852,286,885       732,264,346       336,187,803       479,718,778       151,300,992    
Net realized loss on investments     (4,996,257 )     (8,445,462 )     (1,229,518 )     (1,034,870 )     (786,283 )     (732,649 )  
Net increase resulting from operations     1,231,654,864       1,843,841,423       731,034,828       335,152,933       478,932,495       150,568,343    
Distributions to Shareholders  
From net investment income:  
Capital Class Shares     (360,248,579 )     (596,777,002 )     (319,840,303 )     (132,857,892 )     (227,468,842 )     (94,097,723 )  
Trust Class Shares     (76,005,438 )     (121,950,257 )     (52,009,588 )     (866,374 )     (618,809 )     (111,813 )  
Liquidity Class Shares     (25,151,024 )     (39,787,574 )     (16,755,832 )     (25,487,512 )     (30,548,926 )     (6,618,166 )  
Adviser Class Shares     (292,649,450 )     (433,668,554 )     (151,857,906 )     (101,038,266 )     (114,244,361 )     (21,974,014 )  
Investor Class Shares     (27,066,667 )     (49,746,465 )     (23,217,985 )     (1,742,105 )     (3,298,457 )     (1,087,837 )  
Market Class Shares     (75,710 )     (31,016 )     (409 )     (6,508 )     (4,301 )     —    
Daily Class Shares     (309,995,877 )     (391,177,273 )     (89,338,083 )     (70,597 )     (147,802 )     (34,691 )  
Service Class Shares     —       —       —       —       (84,527 )     (307,583 )  
Class A Shares     (4,849,905 )     (8,630,269 )     (2,975,104 )     —       —       —    
Class B Shares     (908,028 )     (967,404 )     (155,310 )     (82,277 )     (137,555 )     (43,641 )  
Class C Shares     (77,868 )     (44,106 )     (13,031 )     (9,479 )     (11,269 )     (4,208 )  
Class Z Shares     (15,187,235 )     (11,871,475 )     —       —       —       —    
Institutional Class Shares     (124,213,479 )     (196,935,027 )     (75,951,923 )     (56,430,152 )     (88,453,076 )     (27,046,629 )  
Marsico Shares     (221,858 )     (356,638 )     (138,963 )     —       —       —    
Retail A Shares     —       —       —       (2,125,486 )     (1,703,667 )     —    
G-Trust Shares     —       —       —       (15,471,124 )     (12,991,088 )     —    
Total distributions to shareholders     (1,236,651,118 )     (1,851,943,060 )     (732,254,437 )     (336,187,772 )     (479,712,680 )     (151,326,305 )  
Net Capital Share Transactions     1,384,523,882       11,955,057,279       (8,464,224,270 )     1,449,660,600       4,325,112,319       (1,012,015,912 )  
Net increase in net assets     1,379,527,628       11,946,955,642       (8,465,443,879 )     1,448,625,761       4,324,332,134       (1,012,773,874 )  
Net Assets:  
Beginning of period     62,516,867,494       50,569,911,852       59,035,355,731       15,730,898,706       11,406,566,572       12,419,340,446    
End of period     63,896,395,122       62,516,867,494       50,569,911,852       17,179,524,467       15,730,898,706       11,406,566,572    
Undistributed (overdistributed) net investment income at end of period     307,881       307,878       9,945       149,231       149,200       312,549    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31.

(b)  On August 22, 2005, the Fund's Investor A, B and C Shares, if applicable, were redesignated Class A, B and C Shares, respectively.

(c)  Class Z Shares of the Fund commenced operations on November 18, 2005.

(d)  Retail A Shares of the Fund commenced operations on November 21, 2005.

(e)  G-Trust Shares of the Fund commenced operations on November 21, 2005.

(f)  Market Class Shares of the Fund re-commenced operations on October 25, 2005.

(g)  Service Class Shares were fully redeemed on March 15, 2006.

See Accompanying Notes to Financial Statements.

132


Increase (Decrease) in Net Assets   Columbia Treasury Reserves   Columbia Government Reserves  
    Period April 1
through
August 31,		  

Year Ended March 31,		   Period April 1
through
August 31,		  

Year Ended March 31,		  
    2006(a)($)   2006(b)(f)($)   2005($)   2006(a)($)   2006(b)(d)(e)(f)($)   2005($)  
Operations  
Net investment income     263,062,285       385,544,168       113,330,912       102,438,479       154,906,154       52,555,235    
Net realized loss on investments     (279,403 )     (462,549 )     (895,513 )     (661,682 )     (185,367 )     (232,749 )  
Net increase resulting from operations     262,782,882       385,081,619       112,435,399       101,776,797       154,720,787       52,322,486    
Distributions to Shareholders  
From net investment income:  
Capital Class Shares     (47,685,917 )     (68,306,683 )     (29,053,243 )     (30,024,319 )     (53,579,693 )     (18,875,208 )  
Trust Class Shares     (13,333,947 )     (20,850,832 )     (10,803,367 )     (6,721,246 )     (10,543,186 )     (4,612,871 )  
Liquidity Class Shares     (8,970,933 )     (17,300,323 )     (4,942,430 )     (13,979,225 )     (23,669,088 )     (4,737,572 )  
Adviser Class Shares     (141,219,130 )     (213,076,872 )     (46,946,712 )     (22,622,371 )     (29,021,567 )     (10,888,218 )  
Investor Class Shares     (3,725,356 )     (8,941,254 )     (4,357,724 )     (8,090,368 )     (11,700,236 )     (6,160,701 )  
Market Class Shares     (204 )     (156 )     —       (504 )     (489 )     —    
Daily Class Shares     (11,988,708 )     (12,541,147 )     (2,188,757 )     (10,106,979 )     (13,744,927 )     (3,032,837 )  
Service Class Shares     —       —       —       —       —       —    
Class A Shares     (11,592,106 )     (19,819,695 )     (6,982,902 )     (388,505 )     (708,958 )     (276,971 )  
Class B Shares     (4,385 )     (5,570 )     (1,507 )     (4,428 )     (13,284 )     (3,978 )  
Class C Shares     —       —       —       —       —       —    
Class Z Shares     —       —       —       —       —       —    
Institutional Class Shares     (24,541,599 )     (24,702,023 )     (8,054,770 )     (4,128,216 )     (7,164,733 )     (3,961,628 )  
Marsico Shares     —       —       —       —       —       —    
Retail A Shares     —       —       —       (1,295,915 )     (1,029,036 )     —    
G-Trust Shares     —       —       —       (5,076,567 )     (3,720,987 )     —    
Total distributions to shareholders     (263,062,285 )     (385,544,555 )     (113,331,412 )     (102,438,643 )     (154,896,184 )     (52,549,984 )  
Net Capital Share Transactions     258,194,239       4,530,445,325       (293,590,373 )     558,464,157       1,300,484,684       (1,000,404,267 )  
Net increase in net assets     257,914,836       4,529,982,389       (294,486,386 )     557,802,311       1,300,309,287       (1,000,631,765 )  
Net Assets:  
Beginning of period     13,474,750,720       8,944,768,331       9,239,254,717       4,881,540,394       3,581,231,107       4,581,862,872    
End of period     13,732,665,556       13,474,750,720       8,944,768,331       5,439,342,705       4,881,540,394       3,581,231,107    
Undistributed (overdistributed) net investment income at end of period     (155,379 )     (155,379 )     45,306       261,683       261,847       252,477    

 

See Accompanying Notes to Financial Statements.

133


Statements of Changes in Net Assets – Columbia Money Market Funds (continued)

Increase (Decrease) in Net Assets   Columbia Municipal Reserves   Columbia Tax-Exempt Reserves  
    Period April 1
through
August 31,		  

Year Ended March 31,		   Period April 1
through
August 31,		  

Year Ended March 31,		  
    2006(a)($)   2006(b)(c)(d)($)   2005(e)($)   2006(a)($)   2006(b)(f)(g)($)   2005($)  
Operations  
Net investment income     109,313,591       156,794,388       63,666,124       70,759,357       92,275,163       34,905,420    
Net realized gain (loss) on investments     96,268       (2,404 )     12,248       59,479       (56,994 )     34,372    
Net increase resulting from operations     109,409,859       156,791,984       63,678,372       70,818,836       92,218,169       34,939,792    
Distributions to Shareholders  
From net investment income:  
Capital Class Shares     (60,558,882 )     (87,281,872 )     (38,182,350 )     (21,397,159 )     (22,262,614 )     (10,150,700 )  
Trust Class Shares     (7,465,692 )     (11,545,451 )     (5,044,289 )     (34,839,825 )     (55,061,270 )     (22,733,102 )  
Liquidity Class Shares     (4,490,401 )     (7,806,797 )     (3,164,708 )     (196,049 )     (196,208 )     (28,580 )  
Adviser Class Shares     (7,378,999 )     (11,502,677 )     (4,829,647 )     (461,813 )     (565,774 )     (111,148 )  
Investor Class Shares     (890,695 )     (1,591,248 )     (949,960 )     (82,954 )     (246,295 )     (133,011 )  
Market Class Shares     (150 )     (106 )     —       —       —       —    
Daily Class Shares     (16,558,745 )     (19,467,323 )     (3,982,536 )     (337,230 )     (591,625 )     (262,209 )  
Class A Shares     —       —       —       (287,061 )     (546,379 )     (303,187 )  
Class B Shares     (876 )     (1,299 )     (102 )     —       —       —    
Class C Shares     —       —       (532 )     —       —       —    
Class Z Shares     (762,493 )     (574,243 )     —       —       —       —    
Institutional Class Shares     (11,206,676 )     (17,149,988 )     (7,510,695 )     (2,638,724 )     (3,818,326 )     (1,183,528 )  
Retail A Shares     —       —       —       (262,444 )     (197,042 )     —    
G-Trust Shares     —       —       —       (10,256,099 )     (8,788,278 )     —    
Total distributions to shareholders     (109,313,609 )     (156,921,004 )     (63,664,819 )     (70,759,358 )     (92,273,811 )     (34,905,465 )  
Net Capital Share Transactions     2,171,380,587       856,166,241       1,757,187,583       1,045,665,618       1,201,308,926       505,234,702    
Net increase (decrease) in net assets     2,171,476,837       856,037,221       1,757,201,136       1,045,725,096       1,201,253,284       505,269,029    
Net Assets:  
Beginning of period     6,969,408,115       6,113,370,894       4,356,169,758       4,484,368,986       3,283,115,702       2,777,846,673    
End of period     9,140,884,952       6,969,408,115       6,113,370,894       5,530,094,082       4,484,368,986       3,283,115,702    
Undistributed net investment income at end of period     79,552       79,570       205,444       21,612       19,137       92,678    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31.

(b)  On August 22, 2005, the Fund's Investor A, B and C Shares, if applicable, were redesignated Class A, B and C Shares, respectively.

(c)  Class Z Shares of the Fund commenced operations on November 18, 2005.

(d)  Market Class Shares of the Fund re-commenced operations on October 25, 2005.

(e)  Investor C Shares were fully redeemed on February 3, 2005.

(f)  Retail A Shares of the Fund commenced operations on November 21, 2005.

(g)  G-Trust Shares of the Fund commenced operations on November 21, 2005.

(h)  Market Class Shares commenced operations on October 25, 2005.

See Accompanying Notes to Financial Statements.

134


Increase (Decrease) in Net Assets   Columbia California Tax-Exempt Reserves   Columbia New York Tax-Exempt Reserves  
    Period April 1
through
August 31,		  

Year Ended March 31,		   Period April 1
through
August 31,		  

Year Ended March 31,		  
    2006(a)($)   2006(b)(h)($)   2005($)   2006(a)($)   2006(f)(g)($)   2005($)  
Operations  
Net investment income     44,450,230       63,909,198       18,444,965       3,852,879       4,489,950       1,083,295    
Net realized gain (loss) on investments     4,090       (23,846 )     15,172       (5,216 )     721       2,072    
Net increase resulting from operations     44,454,320       63,885,352       18,460,137       3,847,663       4,490,671       1,085,367    
Distributions to Shareholders  
From net investment income:  
Capital Class Shares     (5,929,685 )     (8,898,452 )     (1,736,900 )     (392,480 )     (417,950 )     (17,352 )  
Trust Class Shares     (6,548,542 )     (10,510,745 )     (3,743,513 )     (493,203 )     (368,698 )     (249,061 )  
Liquidity Class Shares     (385,297 )     (588,121 )     (103,123 )     —       —       —    
Adviser Class Shares     (4,135,513 )     (11,193,188 )     (4,911,820 )     (44,993 )     (33,721 )     —    
Investor Class Shares     (2,901,957 )     (5,899,030 )     (2,520,833 )     —       —       —    
Market Class Shares     (115 )     (107 )     —       (427,123 )     (807,847 )     (89,228 )  
Daily Class Shares     (15,345,670 )     (19,552,755 )     (4,446,818 )     —       —       —    
Class A Shares     —       —       —       —       —       —    
Class B Shares     (61 )     (92 )     (20 )     —       —       —    
Class C Shares     —       —       (26 )     —       —       —    
Class Z Shares     —       —       —       —       —       —    
Institutional Class Shares     (9,203,392 )     (7,272,168 )     (980,632 )     (2,228,995 )     (2,622,603 )     (727,587 )  
Retail A Shares     —       —       —       (1,065 )     (32,832 )     —    
G-Trust Shares     —       —       —       (265,021 )     (206,268 )     —    
Total distributions to shareholders     (44,450,232 )     (63,914,658 )     (18,443,685 )     (3,852,880 )     (4,489,919 )     (1,083,228 )  
Net Capital Share Transactions     277,786,685       1,316,476,500       (38,024,692 )     (20,679,031 )     210,310,423       22,062,103    
Net increase (decrease) in net assets     277,790,773       1,316,447,194       (38,008,240 )     (20,684,248 )     210,311,175       22,064,242    
Net Assets:  
Beginning of period     3,441,941,232       2,125,494,038       2,163,502,278       311,360,099       101,048,924       78,984,682    
End of period     3,719,732,005       3,441,941,232       2,125,494,038       290,675,851       311,360,099       101,048,924    
Undistributed net investment income at end of period     108,958       108,960       115,230       11,318       10,793       10,612    

 

See Accompanying Notes to Financial Statements.

135



Schedules of Capital Stock Activity – Columbia Money Market Funds

    Columbia Cash Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     46,774,167,093       46,774,167,092       100,943,021,867       100,943,021,575       118,555,512,959       118,555,512,959    
Distributions reinvested     213,484,218       213,484,218       371,709,079       371,709,079       177,374,367       177,374,367    
Redemptions     (47,962,127,124 )     (47,962,127,124 )     (101,713,829,809 )     (101,713,829,809 )     (125,211,165,640 )     (125,211,165,640 )  
Net increase (decrease)     (974,475,813 )     (974,475,814 )     (399,098,863 )     (399,099,155 )     (6,478,278,314 )     (6,478,278,314 )  
Trust Class Shares  
Subscriptions     1,589,370,938       1,589,370,938       4,658,664,753       4,658,664,753       4,435,072,541       4,435,072,541    
Distributions reinvested     1,543,729       1,543,729       2,278,762       2,278,762       1,152,339       1,152,339    
Redemptions     (1,403,794,578 )     (1,403,794,578 )     (4,406,075,714 )     (4,406,075,714 )     (5,059,998,492 )     (5,059,998,492 )  
Net increase (decrease)     187,120,089       187,120,089       254,867,801       254,867,801       (623,773,612 )     (623,773,612 )  
Liquidity Class Shares  
Subscriptions     2,626,562,835       2,626,562,835       4,938,713,854       4,938,713,854       3,913,169,631       3,913,169,631    
Distributions reinvested     22,269,908       22,269,908       37,106,696       37,106,696       16,054,541       16,054,541    
Redemptions     (2,440,680,565 )     (2,440,680,565 )     (5,140,053,304 )     (5,140,053,304 )     (4,066,295,922 )     (4,066,295,922 )  
Net increase (decrease)     208,152,178       208,152,178       (164,232,754 )     (164,232,754 )     (137,071,750 )     (137,071,750 )  
Adviser Class Shares  
Subscriptions     19,756,957,523       19,756,957,523       40,719,708,692       40,719,708,692       40,427,373,011       40,427,373,011    
Distributions reinvested     66,644,231       66,644,231       94,586,230       94,586,230       35,194,517       35,194,517    
Redemptions     (18,222,812,305 )     (18,222,812,304 )     (37,681,248,527 )     (37,681,248,527 )     (41,470,395,112 )     (41,470,395,112 )  
Net increase (decrease)     1,600,789,449       1,600,789,450       3,133,046,395       3,133,046,395       (1,007,827,584 )     (1,007,827,584 )  
Investor Class Shares  
Subscriptions     1,318,869,984       1,318,869,984       4,097,421,500       4,097,421,500       3,049,889,245       3,049,889,245    
Distributions reinvested     22,918,905       22,918,905       43,278,334       43,278,334       20,875,112       20,875,112    
Redemptions     (1,594,262,086 )     (1,594,262,086 )     (4,295,373,222 )     (4,295,373,222 )     (3,577,681,762 )     (3,577,681,762 )  
Net increase (decrease)     (252,473,197 )     (252,473,197 )     (154,673,388 )     (154,673,388 )     (506,917,405 )     (506,917,405 )  
Market Class Shares  
Subscriptions     2,762,878       2,762,878       3,367,520       3,367,520       111,600       111,600    
Distributions reinvested     69,054       69,054       29,487       29,487       407       407    
Redemptions     (723,842 )     (723,842 )     (420,675 )     (420,675 )     (131,342 )     (131,342 )  
Net increase (decrease)     2,108,090       2,108,090       2,976,332       2,976,332       (19,335 )     (19,335 )  
Daily Class Shares  
Subscriptions     3,774,185,871       3,774,185,871       11,197,073,069       11,197,073,069       6,061,336,884       6,061,336,884    
Distributions reinvested     310,083,848       310,083,848       391,173,007       391,173,007       89,334,615       89,334,615    
Redemptions     (3,617,119,213 )     (3,617,119,214 )     (4,209,855,697 )     (4,209,855,697 )     (5,337,121,429 )     (5,337,121,429 )  
Net increase (decrease)     467,150,506       467,150,505       7,378,390,379       7,378,390,379       813,550,070       813,550,070    
Service Class Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net decrease     —       —       —       —       —       —    

 

See Accompanying Notes to Financial Statements.

136


    Columbia Money Market Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(d)(e)(f)(g)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     17,250,266,376       17,250,266,376       50,333,803,075       50,333,803,075       45,995,178,226       45,995,178,226    
Distributions reinvested     85,896,663       85,896,663       139,728,425       139,728,425       50,658,351       50,658,351    
Redemptions     (17,112,254,211 )     (17,112,254,211 )     (51,219,712,470 )     (51,219,712,470 )     (47,961,384,767 )     (47,961,384,767 )  
Net increase (decrease)     223,908,828       223,908,828       (746,180,970 )     (746,180,970 )     (1,915,548,190 )     (1,915,548,190 )  
Trust Class Shares  
Subscriptions     154,565,691       154,565,691       287,793,581       287,793,581       75,905,203       75,905,203    
Distributions reinvested     29,953       29,953       39,804       39,804       9,461       9,461    
Redemptions     (149,832,424 )     (149,832,424 )     (283,440,713 )     (283,440,713 )     (74,345,416 )     (74,345,416 )  
Net increase (decrease)     4,763,220       4,763,220       4,392,672       4,392,672       1,569,248       1,569,248    
Liquidity Class Shares  
Subscriptions     2,046,215,541       2,046,215,541       5,046,191,500       5,046,191,500       4,149,220,104       4,149,220,104    
Distributions reinvested     21,442,945       21,442,945       27,843,478       27,843,478       6,295,099       6,295,099    
Redemptions     (2,028,080,107 )     (2,028,080,107 )     (4,351,333,518 )     (4,351,333,518 )     (4,100,620,044 )     (4,100,620,044 )  
Net increase (decrease)     39,578,379       39,578,379       722,701,460       722,701,460       54,895,159       54,895,159    
Adviser Class Shares  
Subscriptions     5,674,102,535       5,674,102,535       11,702,168,245       11,702,168,245       6,064,462,349       6,064,462,349    
Distributions reinvested     8,651,155       8,651,155       11,923,858       11,923,858       3,199,548       3,199,548    
Redemptions     (4,746,066,807 )     (4,746,066,807 )     (8,724,598,854 )     (8,724,598,854 )     (6,118,329,925 )     (6,118,329,925 )  
Net increase (decrease)     936,686,883       936,686,883       2,989,493,249       2,989,493,249       (50,668,028 )     (50,668,028 )  
Investor Class Shares  
Subscriptions     29,649,977       29,649,977       131,381,332       131,381,332       28,292,916       28,292,916    
Distributions reinvested     131,550       131,550       452,400       452,400       8,080       8,080    
Redemptions     (56,860,152 )     (56,860,152 )     (110,587,420 )     (110,587,420 )     (32,308,508 )     (32,308,508 )  
Net increase (decrease)     (27,078,625 )     (27,078,625 )     21,246,312       21,246,312       (4,007,512 )     (4,007,512 )  
Market Class Shares  
Subscriptions     148,562       148,562       324,608       324,608       —       —    
Distributions reinvested     5,989       5,989       3,681       3,681       —       —    
Redemptions     (105,375 )     (105,375 )     (10,103 )     (10,103 )     —       —    
Net increase (decrease)     49,176       49,176       318,186       318,186       —       —    
Daily Class Shares  
Subscriptions     1,850,495       1,850,495       20,582,290       20,582,290       4,832,078       4,832,078    
Distributions reinvested     69,911       69,911       135,772       135,772       34,691       34,691    
Redemptions     (2,179,159 )     (2,179,159 )     (20,510,745 )     (20,510,745 )     (5,056,284 )     (5,056,284 )  
Net increase (decrease)     (258,753 )     (258,753 )     207,317       207,317       (189,515 )     (189,515 )  
Service Class Shares  
Subscriptions     —       —       20,693,419       20,693,419       150,866,673       150,866,673    
Distributions reinvested     —       —       71,768       71,768       307,583       307,583    
Redemptions     —       —       (22,528,058 )     (22,528,058 )     (225,371,327 )     (225,371,327 )  
Net decrease     —       —       (1,762,871 )     (1,762,871 )     (74,197,071 )     (74,197,071 )  

 

See Accompanying Notes to Financial Statements.

137


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia Cash Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Class A Shares  
Subscriptions     175,056,771       175,056,771       318,181,313       318,181,313       65,300,846       65,300,846    
Distributions reinvested     4,799,264       4,799,264       8,581,846       8,581,846       2,949,767       2,949,767    
Redemptions     (115,405,321 )     (115,405,320 )     (331,793,181 )     (331,793,181 )     (96,998,716 )     (96,998,716 )  
Net increase (decrease)     64,450,714       64,450,715       (5,030,022 )     (5,030,022 )     (28,748,103 )     (28,748,103 )  
Class B Shares  
Subscriptions     15,059,564       15,059,564       11,891,442       11,891,442       11,633,100       11,633,100    
Proceeds received in
connection with merger		     —       —       48,772,764       48,716,804       —       —    
Distributions reinvested     804,151       804,151       855,334       855,334       136,486       136,486    
Redemptions     (16,194,550 )     (16,194,554 )     (26,290,660 )     (26,290,660 )     (20,246,513 )     (20,246,513 )  
Net increase (decrease)     (330,835 )     (330,839 )     35,228,880       35,172,920       (8,476,927 )     (8,476,927 )  
Class C Shares  
Subscriptions     6,646,564       6,646,564       4,324,280       4,324,280       4,158,548       4,158,548    
Distributions reinvested     65,755       65,755       35,850       35,850       10,608       10,608    
Redemptions     (3,874,136 )     (3,874,136 )     (2,988,359 )     (2,988,359 )     (4,133,650 )     (4,133,650 )  
Net increase (decrease)     2,838,183       2,838,183       1,371,771       1,371,771       35,506       35,506    
Class Z Shares  
Subscriptions     124,559,681       124,559,681       117,515,462       117,515,462       —       —    
Proceeds received in
connection with merger		     —       —       834,964,976       834,267,422       —       —    
Distributions reinvested     14,653,375       14,653,375       11,526,581       11,526,581       —       —    
Redemptions     (163,045,036 )     (163,045,037 )     (209,834,950 )     (209,834,950 )     —       —    
Net increase (decrease)     (23,831,980 )     (23,831,981 )     754,172,069       753,474,515       —       —    
Institutional Class Shares  
Subscriptions     7,296,059,406       7,296,059,406       17,371,616,757       17,371,616,757       13,814,109,302       13,814,109,302    
Distributions reinvested     116,518,821       116,518,821       182,432,067       182,432,067       69,288,212       69,288,212    
Redemptions     (7,310,400,612 )     (7,310,400,612 )     (16,434,637,126 )     (16,434,637,126 )     (14,364,156,220 )     (14,364,156,220 )  
Net increase (decrease)     102,177,615       102,177,615       1,119,411,698       1,119,411,698       (480,758,706 )     (480,758,706 )  
Marsico Shares  
Subscriptions     4,928,270       4,928,270       6,683,370       6,683,370       7,172,763       7,172,763    
Distributions reinvested     221,857       221,857       356,606       356,606       145,758       145,758    
Redemptions     (4,301,239 )     (4,301,239 )     (7,659,189 )     (7,659,189 )     (10,256,631 )     (10,256,631 )  
Net increase (decrease)     848,888       848,888       (619,213 )     (619,213 )     (2,938,110 )     (2,938,110 )  
Retail A Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    

 

See Accompanying Notes to Financial Statements.

138


    Columbia Money Market Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(d)(e)(f)(g)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Class A Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
Class B Shares  
Subscriptions     2,370,340       2,370,340       1,668,380       1,668,380       1,826,702       1,826,702    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     72,056       72,056       124,012       124,012       39,672       39,672    
Redemptions     (1,941,363 )     (1,941,363 )     (3,637,272 )     (3,637,272 )     (4,350,630 )     (4,350,630 )  
Net increase (decrease)     501,033       501,033       (1,844,880 )     (1,844,880 )     (2,484,256 )     (2,484,256 )  
Class C Shares  
Subscriptions     1,013,291       1,013,291       399,347       399,347       1,451,256       1,451,256    
Distributions reinvested     9,171       9,171       9,988       9,988       3,382       3,382    
Redemptions     (232,651 )     (232,651 )     (1,269,918 )     (1,269,918 )     (1,220,521 )     (1,220,521 )  
Net increase (decrease)     789,811       789,811       (860,583 )     (860,583 )     234,117       234,117    
Class Z Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
Institutional Class Shares  
Subscriptions     4,124,336,490       4,124,336,490       11,519,555,241       11,519,555,241       5,180,237,811       5,180,237,811    
Distributions reinvested     54,778,399       54,778,399       85,026,360       85,026,360       26,711,983       26,711,983    
Redemptions     (3,849,089,726 )     (3,849,089,726 )     (11,158,568,454 )     (11,158,568,454 )     (4,228,569,658 )     (4,228,569,658 )  
Net increase (decrease)     330,025,163       330,025,163       446,013,147       446,013,147       978,380,136       978,380,136    
Marsico Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —                
Net increase (decrease)     —       —       —       —       —       —    
Retail A Shares  
Subscriptions     11,343,417       11,343,417       17,049,565       17,049,565       —       —    
Proceeds received in
connection with merger		     —       —       123,321,710       123,352,489       —       —    
Distributions reinvested     2,071,045       2,071,045       1,898,318       1,898,318       —       —    
Redemptions     (22,460,633 )     (22,460,633 )     (31,470,121 )     (31,470,121 )     —       —    
Net increase (decrease)     (9,046,171 )     (9,046,171 )     110,799,472       110,830,251       —       —    

 

See Accompanying Notes to Financial Statements.

139


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia Cash Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
G-Trust Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    

 

(a) The Fund changed its fiscal year end from March 31 to August 31.

(b) On August 22, 2005, the Fund's Investor A, B and C Shares, if applicable, were redesignated Class A, B and C Shares, respectively.

(c) Class Z Shares of the Fund commenced operations on November 18, 2005.

(d) Retail A Shares of the Fund commenced operations on November 21, 2005.

(e) G-Trust Shares of the Fund commenced operations on November 21, 2005.

(f) Market Class Shares of the Fund re-commenced operations on October 25, 2005.

(g) Service Class Shares were fully redeemed on March 15, 2006.

See Accompanying Notes to Financial Statements.

140


    Columbia Money Market Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(d)(e)(f)(g)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
G-Trust Shares  
Subscriptions     302,077,835       302,077,835       328,690,084       328,690,084       —       —    
Proceeds received in
connection with merger		     —       —       920,660,792       920,431,879       —       —    
Distributions reinvested     611,975       611,975       578,701       578,701       —       —    
Redemptions     (352,948,154 )     (352,948,154 )     (469,141,635 )     (469,141,635 )     —       —    
Net increase (decrease)     (50,258,344 )     (50,258,344 )     780,787,942       780,559,029       —       —    

 

See Accompanying Notes to Financial Statements.

141


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia Treasury Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     6,984,846,440       6,984,846,440       16,236,488,943       16,236,488,943       29,698,008,848       29,698,008,848    
Proceeds received in
connection with merger		     —       —       644,062,778       643,816,933       —       —    
Distributions reinvested     35,671,845       35,671,845       52,755,361       52,755,361       23,541,826       23,541,826    
Redemptions     (7,049,619,383 )     (7,049,619,383 )     (16,219,426,119 )     (16,219,426,119 )     (30,271,512,751 )     (30,271,512,751 )  
Net increase (decrease)     (29,101,098 )     (29,101,098 )     713,880,963       713,635,118       (549,962,077 )     (549,962,077 )  
Trust Class Shares  
Subscriptions     460,698,435       460,698,435       816,221,625       816,221,625       2,892,983,392       2,892,983,392    
Proceeds received in
connection with merger		     —       —       10,185,442       10,181,665       —       —    
Distributions reinvested     76,354       76,354       109,595       109,595       24,320       24,320    
Redemptions     (366,417,661 )     (366,417,661 )     (823,880,652 )     (823,880,652 )     (3,045,412,299 )     (3,045,412,299 )  
Net increase (decrease)     94,357,128       94,357,128       2,636,010       2,632,233       (152,404,587 )     (152,404,587 )  
Liquidity Class Shares  
Subscriptions     613,573,249       613,573,249       5,072,135,084       5,072,135,084       1,897,190,699       1,897,190,699    
Distributions reinvested     7,656,064       7,656,064       15,539,377       15,539,377       4,294,929       4,294,929    
Redemptions     (586,951,773 )     (586,951,773 )     (5,072,207,336 )     (5,072,207,336 )     (1,835,691,288 )     (1,835,691,288 )  
Net increase     34,277,540       34,277,540       15,467,125       15,467,125       65,794,340       65,794,340    
Adviser Class Shares  
Subscriptions     9,249,555,148       9,249,555,148       25,199,998,376       25,199,998,376       18,238,833,033       18,238,833,033    
Proceeds received in
connection with merger		     —       —       36,064,928       36,051,009       —       —    
Distributions reinvested     15,003,778       15,003,778       20,919,641       20,919,641       7,038,692       7,038,692    
Redemptions     (9,156,808,064 )     (9,156,808,064 )     (22,447,288,762 )     (22,447,288,762 )     (17,656,021,924 )     (17,656,021,924 )  
Net increase (decrease)     107,750,862       107,750,862       2,809,694,183       2,809,680,264       589,849,801       589,849,801    
Investor Class Shares  
Subscriptions     416,788,772       416,788,772       1,419,676,428       1,419,676,428       1,142,957,221       1,142,957,221    
Distributions reinvested     2,334,865       2,334,865       5,518,041       5,518,041       2,541,198       2,541,198    
Redemptions     (470,045,045 )     (470,045,045 )     (1,562,579,721 )     (1,562,579,721 )     (1,227,850,695 )     (1,227,850,695 )  
Net increase (decrease)     (50,921,408 )     (50,921,408 )     (137,385,252 )     (137,385,252 )     (82,352,276 )     (82,352,276 )  
Market Class Shares  
Subscriptions     1,035       1,035       10,000       10,000       —       —    
Distributions reinvested     204       204       156       156       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     1,239       1,239       10,156       10,156       —       —    

 

See Accompanying Notes to Financial Statements.

142


    Columbia Government Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)(d)(e)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     3,007,939,382       3,007,939,382       9,425,391,779       9,425,391,779       8,299,093,894       8,299,093,894    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     27,509,480       27,509,480       46,850,468       46,850,468       16,326,951       16,326,951    
Redemptions     (2,670,783,910 )     (2,670,783,910 )     (9,297,496,644 )     (9,297,496,644 )     (8,472,355,657 )     (8,472,355,657 )  
Net increase (decrease)     364,664,952       364,664,952       174,745,603       174,745,603       (156,934,812 )     (156,934,812 )  
Trust Class Shares  
Subscriptions     300,339,722       300,339,722       1,786,466,168       1,786,466,168       1,195,618,768       1,195,618,768    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     13,952       13,952       36,199       36,199       11,292       11,292    
Redemptions     (386,772,478 )     (386,772,478 )     (1,649,563,621 )     (1,649,563,621 )     (1,237,604,567 )     (1,237,604,567 )  
Net increase (decrease)     (86,418,804 )     (86,418,804 )     136,938,746       136,938,746       (41,974,507 )     (41,974,507 )  
Liquidity Class Shares  
Subscriptions     887,805,113       887,805,113       1,772,124,646       1,772,124,646       1,523,531,640       1,523,531,640    
Distributions reinvested     11,106,276       11,106,276       21,599,326       21,599,326       3,952,907       3,952,907    
Redemptions     (695,535,767 )     (695,535,767 )     (1,517,157,581 )     (1,517,157,581 )     (1,417,614,893 )     (1,417,614,893 )  
Net increase     203,375,622       203,375,622       276,566,391       276,566,391       109,869,654       109,869,654    
Adviser Class Shares  
Subscriptions     1,805,104,238       1,805,104,238       2,302,517,393       2,302,517,393       2,246,078,708       2,246,078,708    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     6,636,358       6,636,358       11,500,129       11,500,129       5,152,157       5,152,157    
Redemptions     (1,718,800,337 )     (1,718,800,337 )     (2,091,321,567 )     (2,091,321,567 )     (2,551,643,887 )     (2,551,643,887 )  
Net increase (decrease)     92,940,259       92,940,259       222,695,955       222,695,955       (300,413,022 )     (300,413,022 )  
Investor Class Shares  
Subscriptions     2,305,298,486       2,305,298,486       1,806,474,568       1,806,474,568       1,863,974,259       1,863,974,259    
Distributions reinvested     7,316,418       7,316,418       10,511,921       10,511,921       5,858,541       5,858,541    
Redemptions     (2,302,953,315 )     (2,302,953,315 )     (1,913,789,345 )     (1,913,789,345 )     (2,201,590,250 )     (2,201,590,250 )  
Net increase (decrease)     9,661,589       9,661,589       (96,802,856 )     (96,802,856 )     (331,757,450 )     (331,757,450 )  
Market Class Shares  
Subscriptions     —       —       32,483       32,483       —       —    
Distributions reinvested     491       492       492       492       —       —    
Redemptions     (6,711 )     (6,711 )     —       —       —       —    
Net increase (decrease)     (6,220 )     (6,219 )     32,975       32,975       —       —    

 

See Accompanying Notes to Financial Statements.

143


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia Treasury Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Daily Class Shares  
Subscriptions     1,153,041,288       1,153,041,288       1,290,425,489       1,290,425,489       392,027,381       392,027,381    
Distributions reinvested     11,988,657       11,988,657       12,539,678       12,539,678       2,187,653       2,187,653    
Redemptions     (1,226,515,981 )     (1,226,515,981 )     (848,932,282 )     (848,932,282 )     (429,467,692 )     (429,467,692 )  
Net increase (decrease)     (61,486,036 )     (61,486,036 )     454,032,885       454,032,885       (35,252,658 )     (35,252,658 )  
Class A Shares  
Subscriptions     1,194,255,852       1,194,255,852       3,477,891,924       3,477,891,924       5,057,768,174       5,057,768,174    
Distributions reinvested     221,464       221,464       485,513       485,513       124,294       124,294    
Redemptions     (1,308,234,968 )     (1,308,234,968 )     (3,403,420,348 )     (3,403,420,348 )     (5,127,921,149 )     (5,127,921,149 )  
Net increase (decrease)     (113,757,652 )     (113,757,652 )     74,957,089       74,957,089       (70,028,681 )     (70,028,681 )  
Class B Shares  
Subscriptions     181,039       181,039       69,056       69,056       4,539       4,539    
Distributions reinvested     4,210       4,210       5,353       5,353       1,499       1,499    
Redemptions     (139,909 )     (139,909 )     (45,463 )     (45,463 )     (126,714 )     (126,714 )  
Net increase (decrease)     45,340       45,340       28,946       28,946       (120,676 )     (120,676 )  
Institutional Class Shares  
Subscriptions     2,303,999,368       2,303,999,368       3,918,280,949       3,918,280,949       3,009,675,815       3,009,675,815    
Distributions reinvested     22,958,156       22,958,156       22,155,981       22,155,981       7,713,438       7,713,438    
Redemptions     (2,049,929,200 )     (2,049,929,200 )     (3,343,050,169 )     (3,343,050,169 )     (3,076,502,812 )     (3,076,502,812 )  
Net increase (decrease)     277,028,324       277,028,324       597,386,761       597,386,761       (59,113,559 )     (59,113,559 )  
Retail A Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
G-Trust Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase     —       —       —       —       —       —    

 

(a) The Fund changed its fiscal year end from March 31 to August 31.

(b) On August 22, 2005, the Fund's Investor A and B Shares were redesignated Class A and B Shares, respectively.

(c) Market Class Shares of the Fund re-commenced operations on October 25, 2005.

(d) Retail A Shares of the Fund commenced operations on November 21, 2005.

(e) G-Trust Shares of the Fund commenced operations on November 21, 2005.

See Accompanying Notes to Financial Statements.

144


    Columbia Government Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)(d)(e)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Daily Class Shares  
Subscriptions     430,333,924       430,333,924       1,274,404,620       1,274,404,620       652,889,722       652,889,722    
Distributions reinvested     10,103,596       10,103,595       13,743,771       13,743,771       3,032,544       3,032,544    
Redemptions     (491,698,850 )     (491,698,850 )     (1,000,608,408 )     (1,000,608,408 )     (703,627,772 )     (703,627,772 )  
Net increase (decrease)     (51,261,330 )     (51,261,331 )     287,539,983       287,539,983       (47,705,506 )     (47,705,506 )  
Class A Shares  
Subscriptions     45,831,914       45,831,914       80,733,635       80,755,591       99,121,763       99,121,763    
Distributions reinvested     362,932       362,931       678,192       678,192       266,714       266,714    
Redemptions     (39,093,489 )     (39,093,489 )     (96,183,936 )     (96,183,936 )     (78,996,208 )     (78,996,208 )  
Net increase (decrease)     7,101,357       7,101,356       (14,772,109 )     (14,750,153 )     20,392,269       20,392,269    
Class B Shares  
Subscriptions     194,581       194,581       158,201       158,201       374,146       374,146    
Distributions reinvested     3,511       3,512       11,687       11,687       3,606       3,606    
Redemptions     (133,614 )     (133,614 )     (638,245 )     (638,245 )     (590,914 )     (590,914 )  
Net increase (decrease)     64,478       64,479       (468,357 )     (468,357 )     (213,162 )     (213,162 )  
Institutional Class Shares  
Subscriptions     998,032,976       998,032,976       2,348,853,355       2,348,853,355       2,390,818,865       2,390,818,865    
Distributions reinvested     3,943,783       3,943,782       6,188,498       6,188,498       3,593,507       3,593,507    
Redemptions     (994,705,456 )     (994,705,456 )     (2,355,250,919 )     (2,355,250,919 )     (2,646,080,103 )     (2,646,080,103 )  
Net increase (decrease)     7,271,303       7,271,302       (209,066 )     (209,066 )     (251,667,731 )     (251,667,731 )  
Retail A Shares  
Subscriptions     5,184,407       5,184,407       6,446,429       6,442,002       —       —    
Proceeds received in
connection with merger		     —       —       73,936,962       73,923,607       —       —    
Distributions reinvested     1,268,294       1,268,294       1,151,768       1,151,768       —       —    
Redemptions     (10,876,052 )     (10,876,052 )     (13,513,120 )     (13,513,120 )     —       —    
Net increase (decrease)     (4,423,351 )     (4,423,351 )     68,022,039       68,004,257       —       —    
G-Trust Shares  
Subscriptions     248,632,574       248,632,574       242,841,347       242,834,407       —       —    
Proceeds received in
connection with merger		     —       —       292,057,321       291,979,114       —       —    
Distributions reinvested     99,841       99,842       80,904       80,904       —       —    
Redemptions     (233,238,113 )     (233,238,113 )     (288,703,219 )     (288,703,219 )     —       —    
Net increase     15,494,302       15,494,303       246,276,353       246,191,206       —       —    

 

See Accompanying Notes to Financial Statements.

145


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia Municipal Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)(d)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     14,496,330,817       14,496,330,817       22,451,133,966       22,451,134,141       15,487,711,803       15,487,711,803    
Distributions reinvested     47,323,030       47,323,030       62,395,107       62,395,107       23,700,991       23,700,991    
Redemptions     (12,836,450,544 )     (12,836,450,544 )     (22,313,789,769 )     (22,313,789,769 )     (14,161,329,019 )     (14,161,329,019 )  
Net increase (decrease)     1,707,203,303       1,707,203,303       199,739,304       199,739,479       1,350,083,775       1,350,083,775    
Trust Class Shares  
Subscriptions     355,627,826       355,627,826       1,383,567,940       1,383,567,940       915,329,636       915,329,636    
Distributions reinvested     95,198       95,198       273,403       273,403       105,286       105,286    
Redemptions     (324,342,175 )     (324,342,175 )     (1,270,569,246 )     (1,270,569,246 )     (985,416,356 )     (985,416,356 )  
Net increase (decrease)     31,380,849       31,380,849       113,272,097       113,272,097       (69,981,434 )     (69,981,434 )  
Liquidity Class Shares  
Subscriptions     716,858,274       716,858,274       2,232,378,675       2,232,378,675       2,120,925,493       2,120,925,493    
Distributions reinvested     2,081,604       2,081,604       3,829,663       3,829,663       1,897,508       1,897,508    
Redemptions     (695,179,314 )     (695,179,314 )     (2,266,382,676 )     (2,266,382,676 )     (1,926,794,006 )     (1,926,794,006 )  
Net increase (decrease)     23,760,564       23,760,564       (30,174,338 )     (30,174,338 )     196,028,995       196,028,995    
Adviser Class Shares  
Subscriptions     1,052,452,404       1,052,452,404       2,344,084,974       2,344,084,974       1,786,826,446       1,786,826,446    
Distributions reinvested     3,511,760       3,511,760       5,203,904       5,203,904       2,325,220       2,325,220    
Redemptions     (922,255,522 )     (922,255,522 )     (2,295,964,399 )     (2,295,964,399 )     (1,821,050,605 )     (1,821,050,605 )  
Net increase (decrease)     133,708,642       133,708,642       53,324,479       53,324,479       (31,898,939 )     (31,898,939 )  
Investor Class Shares  
Subscriptions     67,705,041       67,705,041       173,079,265       173,079,265       177,673,491       177,673,491    
Distributions reinvested     889,107       889,107       1,575,322       1,575,322       948,778       948,778    
Redemptions     (60,512,521 )     (60,512,521 )     (192,863,028 )     (192,863,028 )     (241,463,530 )     (241,463,530 )  
Net increase (decrease)     8,081,627       8,081,627       (18,208,441 )     (18,208,441 )     (62,841,261 )     (62,841,261 )  
Market Class Shares  
Subscriptions     12,506       12,506       10,426       10,426       —       —    
Distributions reinvested     150       150       106       106       —       —    
Net increase     12,656       12,656       10,532       10,532       —       —    
Daily Class Shares  
Subscriptions     1,037,081,534       1,037,081,534       2,631,383,997       2,631,383,997       751,254,445       751,254,445    
Distributions reinvested     16,558,744       16,558,744       19,469,702       19,469,702       3,982,546       3,982,546    
Redemptions     (989,165,413 )     (989,165,413 )     (1,873,437,132 )     (1,873,437,132 )     (769,150,180 )     (769,150,180 )  
Net increase (decrease)     64,474,865       64,474,865       777,416,567       777,416,567       (13,913,189 )     (13,913,189 )  
Class A Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net decrease     —       —       —       —       —       —    

 

See Accompanying Notes to Financial Statements.

146


    Columbia Tax-Exempt Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(f)(g)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     4,267,042,448       4,267,042,448       5,708,224,499       5,708,224,499       5,501,961,853       5,501,961,853    
Distributions reinvested     14,758,388       14,758,388       15,322,493       15,322,493       2,910,553       2,910,553    
Redemptions     (3,568,882,408 )     (3,568,882,408 )     (5,797,357,044 )     (5,797,357,044 )     (4,997,749,629 )     (4,997,749,629 )  
Net increase (decrease)     712,918,428       712,918,428       (73,810,052 )     (73,810,052 )     507,122,777       507,122,777    
Trust Class Shares  
Subscriptions     1,139,465,051       1,139,465,052       3,651,307,587       3,651,307,587       2,436,532,804       2,436,532,804    
Distributions reinvested     386,786       386,786       584,798       584,798       173,408       173,408    
Redemptions     (931,091,672 )     (931,091,672 )     (3,229,056,822 )     (3,229,056,822 )     (2,412,427,307 )     (2,412,427,307 )  
Net increase (decrease)     208,760,165       208,760,166       422,835,563       422,835,563       24,278,905       24,278,905    
Liquidity Class Shares  
Subscriptions     35,051,537       35,051,537       114,992,562       114,992,562       38,913,248       38,913,248    
Distributions reinvested     193,989       193,989       189,856       189,856       26,428       26,428    
Redemptions     (19,988,772 )     (19,988,772 )     (113,282,008 )     (113,282,008 )     (41,339,503 )     (41,339,503 )  
Net increase (decrease)     15,256,754       15,256,754       1,900,410       1,900,410       (2,399,827 )     (2,399,827 )  
Adviser Class Shares  
Subscriptions     91,367,367       91,367,367       125,817,201       125,817,201       10,908,813       10,908,813    
Distributions reinvested     448,745       448,745       557,634       557,634       111,140       111,140    
Redemptions     (37,494,768 )     (37,494,768 )     (116,800,541 )     (116,800,541 )     (10,100,957 )     (10,100,957 )  
Net increase (decrease)     54,321,344       54,321,344       9,574,294       9,574,294       918,996       918,996    
Investor Class Shares  
Subscriptions     4,359,817       4,359,817       22,168,166       22,168,166       10,463,434       10,463,434    
Distributions reinvested     70,952       70,952       195,159       195,159       100,562       100,562    
Redemptions     (4,610,603 )     (4,621,603 )     (26,076,180 )     (26,076,180 )     (21,334,452 )     (21,334,452 )  
Net increase (decrease)     (179,834 )     (190,834 )     (3,712,855 )     (3,712,855 )     (10,770,456 )     (10,770,456 )  
Market Class Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Net increase     —       —       —       —       —       —    
Daily Class Shares  
Subscriptions     26,593,862       26,593,862       68,368,168       68,368,168       57,671,974       57,671,974    
Distributions reinvested     337,208       337,208       591,587       591,587       262,204       262,204    
Redemptions     (28,969,809 )     (28,969,809 )     (76,529,290 )     (76,529,290 )     (71,277,281 )     (71,277,281 )  
Net increase (decrease)     (2,038,739 )     (2,038,739 )     (7,569,535 )     (7,569,535 )     (13,343,103 )     (13,343,103 )  
Class A Shares  
Subscriptions     12,271,316       12,271,316       16,099,148       16,099,148       20,335,607       20,335,607    
Distributions reinvested     286,882       286,882       546,185       546,185       302,555       302,555    
Redemptions     (20,271,929 )     (20,271,929 )     (20,005,867 )     (20,005,867 )     (42,508,347 )     (42,508,347 )  
Net decrease     (7,713,731 )     (7,713,731 )     (3,360,534 )     (3,360,534 )     (21,870,185 )     (21,870,185 )  

 

See Accompanying Notes to Financial Statements.

147


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia Municipal Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)(d)		   Year Ended
March 31, 2005(e)		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Class B Shares  
Subscriptions     45,221       45,393       375       375       44,882       44,882    
Proceeds received in
connection with merger		     —       —       188,340       187,998       —       —    
Distributions reinvested     713       713       979       979       39       39    
Redemptions     (113,183 )     (113,183 )     (103,554 )     (103,554 )     (45,615 )     (45,615 )  
Net increase (decrease)     (67,249 )     (67,077 )     86,140       85,798       (694 )     (694 )  
Class C Shares  
Subscriptions     —       —       —       —       191,002       191,002    
Distributions reinvested     —       —       —       —       321       321    
Redemptions     —       —       —       —       (2,693,618 )     (2,693,618 )  
Net decrease     —       —       —       —       (2,502,295 )     (2,502,295 )  
Class Z Shares  
Subscriptions     10,121,134       10,121,134       9,633,891       9,633,891       —       —    
Proceeds received in
connection with merger		     —       —       55,932,806       55,825,972       —       —    
Distributions reinvested     699,452       699,452       530,457       530,457       —       —    
Redemptions     (13,374,122 )     (13,374,122 )     (11,832,320 )     (11,832,320 )     —       —    
Net increase (decrease)     (2,553,536 )     (2,553,536 )     54,264,834       54,158,000       —       —    
Institutional Class Shares  
Subscriptions     2,709,727,125       2,709,727,125       2,870,121,907       2,870,121,907       3,232,748,896       3,232,748,896    
Distributions reinvested     11,042,688       11,042,688       16,602,732       16,602,732       7,135,087       7,135,087    
Redemptions     (2,515,391,119 )     (2,515,391,119 )     (3,180,182,571 )     (3,180,182,571 )     (2,847,671,358 )     (2,847,671,358 )  
Net increase (decrease)     205,378,694       205,378,694       (293,457,932 )     (293,457,932 )     392,212,625       392,212,625    
Retail A Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
G-Trust Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    

 

(a) The Fund changed its fiscal year end from March 31 to August 31.

(b) On August 22, 2005, the Fund's Investor A, B and C Shares, if applicable, were redesignated Class A, B and C Shares, respectively.

(c) Class Z Shares of the Fund commenced operations on November 18, 2005.

(d) Market Class Shares of the Fund re-commenced operations on October 25, 2005.

(e) Investor C Shares were fully redeemed on February 3, 2005.

(f) Retail A Shares of the Fund commenced operations on November 21, 2005.

(g) G-Trust Shares of the Fund commenced operations on November 21, 2005.

See Accompanying Notes to Financial Statements.

148


    Columbia Tax-Exempt Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(f)(g)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Class B Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
Class C Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net decrease     —       —       —       —       —       —    
Class Z Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
Institutional Class Shares  
Subscriptions     538,236,995       538,236,995       1,413,828,247       1,413,828,247       650,052,335       650,052,335    
Distributions reinvested     2,563,584       2,563,584       3,581,641       3,581,641       1,066,115       1,066,115    
Redemptions     (394,546,437 )     (394,546,437 )     (1,383,611,255 )     (1,383,611,255 )     (629,820,855 )     (629,820,855 )  
Net increase (decrease)     146,254,142       146,254,142       33,798,633       33,798,633       21,297,595       21,297,595    
Retail A Shares  
Subscriptions     1,993,862       1,993,862       2,028,620       2,028,620       —       —    
Proceeds received in
connection with merger		     —       —       22,797,503       22,759,497       —       —    
Distributions reinvested     255,230       255,230       219,952       219,952       —       —    
Redemptions     (2,946,480 )     (2,946,480 )     (5,808,148 )     (5,808,148 )     —       —    
Net increase (decrease)     (697,388 )     (697,388 )     19,237,927       19,199,921       —       —    
G-Trust Shares  
Subscriptions     347,010,137       347,010,137       301,963,311       301,963,311       —       —    
Proceeds received in
connection with merger		     —       —       885,576,915       885,520,444       —       —    
Distributions reinvested     759       759       625       625       —       —    
Redemptions     (428,215,420 )     (428,215,420 )     (385,031,299 )     (385,031,299 )     —       —    
Net increase (decrease)     (81,204,524 )     (81,204,524 )     802,509,552       802,453,081       —       —    

 

See Accompanying Notes to Financial Statements.

149


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia California Tax-Exempt Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005(d)		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     697,646,638       697,646,638       1,587,640,715       1,587,640,715       334,272,344       334,272,344    
Distributions reinvested     4,507,049       4,507,049       7,407,351       7,407,351       1,637,443       1,637,443    
Redemptions     (624,503,549 )     (624,503,549 )     (1,269,348,842 )     (1,269,348,842 )     (399,406,128 )     (399,406,128 )  
Net increase (decrease)     77,650,138       77,650,138       325,699,224       325,699,224       (63,496,341 )     (63,496,341 )  
Trust Class Shares  
Subscriptions     489,802,090       489,802,090       1,193,993,557       1,193,993,557       757,184,170       757,184,170    
Distributions reinvested     282,038       282,038       427,874       427,874       169,832       169,832    
Redemptions     (443,174,621 )     (443,174,621 )     (1,063,145,017 )     (1,063,145,017 )     (712,443,441 )     (712,443,441 )  
Net increase (decrease)     46,909,507       46,909,507       131,276,414       131,276,414       44,910,561       44,910,561    
Liquidity Class Shares  
Subscriptions     24,193,526       24,193,526       82,911,445       82,911,445       48,179,341       48,179,341    
Distributions reinvested     385,248       385,248       547,937       547,937       102,116       102,116    
Redemptions     (32,818,706 )     (32,818,706 )     (64,247,268 )     (64,247,268 )     (32,792,480 )     (32,792,480 )  
Net increase (decrease)     (8,239,932 )     (8,239,932 )     19,212,114       19,212,114       15,488,977       15,488,977    
Adviser Class Shares  
Subscriptions     322,776,675       322,776,675       783,625,324       783,625,324       854,340,720       854,340,720    
Distributions reinvested     4,131,003       4,131,003       11,192,485       11,192,485       4,907,876       4,907,876    
Redemptions     (210,568,659 )     (210,568,659 )     (1,127,307,146 )     (1,127,307,146 )     (741,915,018 )     (741,915,018 )  
Net increase (decrease)     116,339,019       116,339,019       (332,489,337 )     (332,489,337 )     117,333,578       117,333,578    
Investor Class Shares  
Subscriptions     243,902,688       243,902,688       960,188,582       960,188,582       589,966,471       589,966,471    
Distributions reinvested     2,900,648       2,900,648       5,893,252       5,893,252       2,520,594       2,520,594    
Redemptions     (267,150,659 )     (267,150,659 )     (984,465,009 )     (984,465,009 )     (717,700,716 )     (717,700,716 )  
Net decrease     (20,347,323 )     (20,347,323 )     (18,383,175 )     (18,383,175 )     (125,213,651 )     (125,213,651 )  
Market Class Shares  
Subscriptions     —       —       10,000       10,000       —       —    
Distributions reinvested     116       116       106       106       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     116       116       10,106       10,106       —       —    
Daily Class Shares  
Subscriptions     771,330,157       771,330,158       1,646,191,835       1,646,191,835       786,285,647       786,285,647    
Distributions reinvested     15,345,670       15,345,670       19,552,897       19,552,897       4,446,805       4,446,805    
Redemptions     (749,186,937 )     (749,186,937 )     (1,051,531,272 )     (1,051,531,272 )     (774,645,694 )     (774,645,694 )  
Net increase     37,488,890       37,488,891       614,213,460       614,213,460       16,086,758       16,086,758    
Class B Shares  
Distributions reinvested     61       61       88       88       19       19    
Redemptions     —       —       —       —       (50 )     (50 )  
Net increase (decrease)     61       61       88       88       (31 )     (31 )  

 

See Accompanying Notes to Financial Statements.

150


    Columbia New York Tax-Exempt Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(e)(f)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Capital Class Shares  
Subscriptions     71,451,527       71,451,527       128,827,751       128,826,858       16,827,375       16,827,375    
Distributions reinvested     217,741       217,741       348,193       348,193       7,045       7,045    
Redemptions     (51,908,982 )     (51,908,982 )     (107,223,214 )     (107,223,214 )     (15,844,527 )     (15,844,527 )  
Net increase (decrease)     19,760,286       19,760,286       21,952,730       21,951,837       989,893       989,893    
Trust Class Shares  
Subscriptions     64,493,779       64,493,779       79,386,053       79,386,053       100,324,983       100,324,983    
Distributions reinvested     7,049       7,049       688       688       —       —    
Redemptions     (60,352,112 )     (60,352,112 )     (64,797,234 )     (64,797,234 )     (103,630,159 )     (103,630,159 )  
Net increase (decrease)     4,148,716       4,148,716       14,589,507       14,589,507       (3,305,176 )     (3,305,176 )  
Liquidity Class Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    
Adviser Class Shares  
Subscriptions     7,965,609       7,965,609       9,320,916       9,320,916       —       —    
Distributions reinvested     44,343       44,343       33,141       33,141       —       —    
Redemptions     (6,577,068 )     (6,577,068 )     (6,091,622 )     (6,091,622 )     —       —    
Net increase (decrease)     1,432,884       1,432,884       3,262,435       3,262,435       —       —    
Investor Class Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net decrease     —       —       —       —       —       —    
Market Class Shares  
Subscriptions     48,592,577       48,592,577       202,604,151       202,604,151       14,590,022       14,590,022    
Distributions reinvested     427,128       427,128       807,825       807,825       89,212       89,212    
Redemptions     (40,924,673 )     (40,924,673 )     (185,155,670 )     (185,155,670 )     (16,180,624 )     (16,180,624 )  
Net increase (decrease)     8,095,032       8,095,032       18,256,306       18,256,306       (1,501,390 )     (1,501,390 )  
Daily Class Shares  
Subscriptions     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase     —       —       —       —       —       —    
Class B Shares  
Distributions reinvested     —       —       —       —       —       —    
Redemptions     —       —       —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    

 

See Accompanying Notes to Financial Statements.

151


Schedules of Capital Stock Activity – Columbia Money Market Funds (continued)

    Columbia California Tax-Exempt Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(b)(c)		   Year Ended
March 31, 2005(d)		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Class C Shares  
Redemptions     —       —       —       —       (199,337 )     (199,337 )  
Net decrease     —       —       —       —       (199,337 )     (199,337 )  
Institutional Class Shares  
Subscriptions     751,239,528       751,239,528       1,716,776,122       1,716,776,122       450,676,369       450,676,369    
Distributions reinvested     9,197,753       9,197,753       7,253,735       7,253,735       978,485       978,485    
Redemptions     (732,451,073 )     (732,451,073 )     (1,147,092,251 )     (1,147,092,251 )     (494,590,060 )     (494,590,060 )  
Net increase (decrease)     27,986,208       27,986,208       576,937,606       576,937,606       (42,935,206 )     (42,935,206 )  
Retail A Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Distributions reinvested     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase     —       —       —       —       —       —    
G-Trust Shares  
Subscriptions     —       —       —       —       —       —    
Proceeds received in
connection with merger		     —       —       —       —       —       —    
Redemptions                     —       —       —       —    
Net increase (decrease)     —       —       —       —       —       —    

 

(a) The Fund changed its fiscal year end from March 31 to August 31.

(b) On August 22, 2005, the Fund's Investor B and C Shares were redesignated Class B and C Shares, respectively.

(c) Market Class Shares commenced operations on October 25, 2005.

(d) Investor C Shares were fully redeemed on April 29, 2004.

(e) Retail A Shares of the Fund commenced operations on November 21, 2005.

(f) G-Trust Shares of the Fund commenced operations on November 21, 2005.

See Accompanying Notes to Financial Statements.

152


    Columbia New York Tax-Exempt Reserves  
    Period April 1 through
August 31, 2006(a)		   Year Ended
March 31, 2006(e)(f)		   Year Ended
March 31, 2005		  
    Shares   Dollars ($)   Shares   Dollars ($)   Shares   Dollars ($)  
Changes in Shares  
Class C Shares  
Redemptions     —       —       —       —       —       —    
Net decrease     —       —       —       —       —       —    
Institutional Class Shares  
Subscriptions     79,532,311       79,532,311       274,240,553       274,240,553       137,649,119       137,649,119    
Distributions reinvested     2,228,992       2,228,992       2,621,114       2,621,114       727,587       727,587    
Redemptions     (135,767,236 )     (135,767,236 )     (142,349,881 )     (142,349,881 )     (112,497,930 )     (112,497,930 )  
Net increase (decrease)     (54,005,933 )     (54,005,933 )     134,511,786       134,511,786       25,878,776       25,878,776    
Retail A Shares  
Subscriptions     4,600       4,600       6,700       6,700       —       —    
Proceeds received in
connection with merger		     —       —       4,984,141       4,984,141       —       —    
Distributions reinvested     1,067       1,067       35,128       35,128       —       —    
Redemptions     —       —       (4,951,960 )     (4,951,960 )     —       —    
Net increase     5,667       5,667       74,009       74,009       —       —    
G-Trust Shares  
Subscriptions     17,550,789       17,550,789       9,547,333       9,547,333       —       —    
Proceeds received in
connection with merger		     —       —       20,156,183       20,152,015       —       —    
Redemptions     (17,666,472 )     (17,666,472 )     (12,034,805 )     (12,034,805 )     —       —    
Net increase (decrease)     (115,683 )     (115,683 )     17,668,711       17,664,543       —       —    

 

See Accompanying Notes to Financial Statements.

153



Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves

    Period
Ended
August 31,		   Year Ended March 31,  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0206       0.0356       0.0158       0.0100       0.0161       0.0320    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0206 )     (0.0356 )     (0.0158 )     (0.0100 )     (0.0161 )     (0.0320 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.08 %(c)     3.62 %     1.59 %     1.01 %     1.63 %     3.25 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %  
Net investment income (d)     4.91 %(e)     3.58 %     1.53 %     1.01 %     1.62 %     2.92 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 16,908,924     $ 17,884,676     $ 18,286,171     $ 24,767,958     $ 33,084,072     $ 39,231,604    

 

Trust Class Shares

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     0.0202       0.0346       0.0148       0.0090       0.0151       0.0310    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0202 )     (0.0346 )     (0.0148 )     (0.0090 )     (0.0151 )     (0.0310 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.04 %(c)     3.52 %     1.49 %     0.91 %     1.53 %     3.14 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %     0.30 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income (d)     4.83 %(e)     3.48 %     1.47 %     0.91 %     1.52 %     2.82 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 3,897,869     $ 3,711,063     $ 3,456,700     $ 4,080,552     $ 5,005,841     $ 2,686,258    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

154


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31, 		  Year Ended March 31,  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0200       0.0341       0.0143       0.0085       0.0146       0.0305    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0200 )     (0.0341 )     (0.0143 )     (0.0085 )     (0.0146 )     (0.0305 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.02 %(c)     3.46 %     1.44 %     0.86 %     1.47 %     3.09 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %     0.35 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %     0.35 %  
Net investment income (d)     4.77 %(e)     3.40 %     1.39 %     0.86 %     1.47 %     2.77 %  
Waiver/reimbursement     0.16 %(e)     0.17 %     0.17 %     0.64 %     0.76 %     0.77 %  
Net assets end of period (000's)   $ 1,249,962     $ 1,041,913     $ 1,206,319     $ 1,343,416     $ 1,572,140     $ 1,742,687    

 

Adviser Class Shares

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     0.0196       0.0331       0.0133       0.0075       0.0136       0.0295    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0196 )     (0.0331 )     (0.0133 )     (0.0075 )     (0.0136 )     (0.0295 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.97 %(c)     3.36 %     1.34 %     0.76 %     1.37 %     2.99 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %     0.45 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %     0.45 %  
Net investment income (d)     4.68 %(e)     3.36 %     1.33 %     0.76 %     1.37 %     2.67 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 15,815,912     $ 14,216,339     $ 11,085,234     $ 12,093,316     $ 6,834,801     $ 7,873,470    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

155


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0192       0.0321       0.0123       0.0065       0.0126       0.0285    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0192 )     (0.0321 )     (0.0123 )     (0.0065 )     (0.0126 )     (0.0285 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.93 %(c)     3.26 %     1.23 %     0.66 %     1.27 %     2.89 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %     0.55 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income (d)     4.57 %(e)     3.18 %     1.18 %     0.66 %     1.27 %     2.57 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 1,406,932     $ 1,659,521     $ 1,814,403     $ 2,321,369     $ 3,621,418     $ 4,966,158    

 

Market Class Shares

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     0.0187       0.0311       0.0113       0.0055       0.0116       0.0275    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0187 )     (0.0311 )     (0.0113 )     (0.0055 )     (0.0116 )     (0.0275 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.89 %(c)     3.15 %     1.13 %     0.55 %     1.17 %     2.78 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.65 %(e)     0.65 %     0.65 %     0.65 %     0.65 %     0.65 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.65 %(e)     0.65 %     0.65 %     0.65 %     0.65 %     0.65 %  
Net investment income (d)     4.50 %(e)     3.75 %     0.90 %     0.56 %     1.17 %     2.47 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 5,096     $ 2,989     $ 13     $ 32     $ 3,774,034     $ 3,844,641    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

156


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0181       0.0296       0.0098       0.0040       0.0102       0.0260    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0181 )     (0.0296 )     (0.0098 )     (0.0040 )     (0.0102 )     (0.0260 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.82 %(c)     3.00 %     0.98 %     0.40 %     1.02 %     2.63 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.80 %(e)     0.80 %     0.80 %     0.80 %     0.80 %     0.80 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.80 %(e)     0.80 %     0.80 %     0.80 %     0.80 %     0.80 %  
Net investment income (d)     4.32 %(e)     3.07 %     1.00 %     0.41 %     1.02 %     2.32 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 17,402,205     $ 16,936,455     $ 9,560,013     $ 8,746,651     $ 11,635,944     $ 14,018,697    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

157


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
October 30,		   Year Ended March 31,  
Service Class Shares   2003 (a)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0015       0.0061       0.0220    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0015 )     (0.0061 )     (0.0220 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00    
Total return (b)     0.15 %(c)     0.62 %     2.22 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     (1.01 )%(e)     1.20 %     1.20 %  
Interest expense     —       — %(f)     — %(f)  
Total operating expenses (d)     (1.01 )%(e)     1.20 %     1.20 %  
Net investment income (d)     0.20 %(e)     0.62 %     1.92 %  
Waiver/reimbursement     2.28 %(e)     0.06 %     0.07 %  
Net assets end of period (000's)   $ —     $ 761,802     $ 1,037,281    

 

(a)  Columbia Cash Reserves Service Class Shares were fully redeemed on October 30, 2003.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

158


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Class A Shares (a)   2006 (b)   2006   2005   2004   2003 (c)(d)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0187       0.0311       0.0113       0.0055       0.0117    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0187 )     (0.0311 )     (0.0113 )     (0.0055 )     (0.0117 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (e)     1.89 %(f)     3.15 %     1.13 %     0.56 %     1.18 %(f)  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (g)     0.65 %(h)     0.65 %     0.65 %     0.65 %     0.65 %  
Interest expense     —       —       —       —       — %(h)(i)  
Total net expenses (g)     0.65 %(h)     0.65 %     0.65 %     0.65 %     0.65 %(h)  
Net investment income (g)     4.49 %(h)     3.11 %     1.10 %     0.56 %     1.17 %(h)  
Waiver/reimbursement     0.06 %(h)     0.07 %     0.07 %     0.06 %     0.06 %(h)  
Net assets end of period (000's)   $ 315,859     $ 251,431     $ 256,503     $ 285,257     $ 378,382    

 

(a)  On August 22, 2005, the Fund's Investor A Shares were redesignated Class A Shares.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Columbia Cash Reserves Class A Shares commenced operations on May 13, 2002.

(d)  The total returns for the period ended March 31, 2003 reflect the historical return information for the Nations Prime Fund Investor A Shares which were reorganized into Nations Cash Reserves Investor A Shares on May 10, 2002.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  The benefits derived from custody credits had an impact of less than 0.01%.

(h)  Annualized.

(i)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

159


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Class B Shares (a)   2006 (b)   2006   2005   2004   2003   2002  
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     0.0160       0.0246       0.0060       0.0025       0.0053       0.0210    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0160 )     (0.0246 )     (0.0060 )     (0.0025 )     (0.0053 )     (0.0210 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.61 %(d)     2.49 %     0.60 %     0.25 %     0.54 %     2.12 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (e)     1.30 %(f)     1.30 %     1.16 %     0.97 %     1.28 %     1.30 %  
Interest expense     —       —       —       —       — %(g)     — %(g)  
Total net expenses (e)     1.30 %(f)     1.30 %     1.16 %     0.97 %     1.28 %     1.30 %  
Net investment income (e)     3.83 %(f)     2.73 %     0.56 %     0.24 %     0.54 %     1.82 %  
Waiver/reimbursement     0.06 %(f)     0.07 %     0.21 %     0.39 %     0.08 %     0.07 %  
Net assets end of period (000's)   $ 56,906     $ 57,242     $ 22,076     $ 30,554     $ 54,493     $ 37,408    

 

Class C Shares (a)

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     0.0160       0.0246       0.0060       0.0025       0.0053       0.0210    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0160 )     (0.0246 )     (0.0060 )     (0.0025 )     (0.0053 )     (0.0210 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.61 %(d)     2.49 %     0.60 %     0.25 %     0.54 %     2.12 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (e)     1.30 %(f)     1.30 %     1.18 %     0.98 %     1.28 %     1.30 %  
Interest expense     —       —       —       —       — %(g)     — %(g)  
Total net expenses (e)     1.30 %(f)     1.30 %     1.18 %     0.98 %     1.28 %     1.30 %  
Net investment income (e)     3.87 %(f)     2.59 %     0.55 %     0.23 %     0.54 %     1.82 %  
Waiver/reimbursement     0.06 %(f)     0.07 %     0.19 %     0.38 %     0.08 %     0.07 %  
Net assets end of period (000's)   $ 5,752     $ 2,915     $ 1,543     $ 1,508     $ 4,811     $ 1,357    

 

(a)  On August 22, 2005, the Fund's Investor B and C Shares were redesignated Class B and C Shares, respectively.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

(g)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

160


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

Class Z Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0206       0.0156    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0206 )     (0.0156 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     2.08 %     1.57 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.20 %     0.20 %  
Net investment income (e)(f)     4.92 %     4.29 %  
Waiver/reimbursement (f)     0.06 %     0.07 %  
Net assets end of period (000's)   $ 729,504     $ 753,395    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Cash Reserves Class Z Shares commenced operations on November 18, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived by custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

161


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0205       0.0352       0.0154       0.0096       0.0158       0.0316    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0205 )     (0.0352 )     (0.0154 )     (0.0096 )     (0.0158 )     (0.0316 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.06 %(c)     3.58 %     1.55 %     0.97 %     1.59 %     3.21 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %     0.24 %  
Interest expense     —       —       —       —       — %(f)     — %(f)  
Total net expenses (d)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %     0.24 %  
Net investment income (d)     4.88 %(e)     3.55 %     1.52 %     0.97 %     1.58 %     2.88 %  
Waiver/reimbursement     0.06 %(e)     0.07 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 6,090,241     $ 5,988,544     $ 4,869,930     $ 5,350,799     $ 4,541,350     $ 3,257,737    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

162


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Cash Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Marsico Shares   2006 (a)   2006   2005   2004   2003 (b)(c)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0192       0.0321       0.0123       0.0065       0.0127    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0192 )     (0.0321 )     (0.0123 )     (0.0065 )     (0.0127 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (d)     1.93 %(e)     3.26 %     1.23 %     0.66 %     1.28 %(e)  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (f)     0.55 %(g)     0.55 %     0.55 %     0.55 %     0.55 %(g)  
Interest expense     —       —       —       —       — %(h)  
Total net expenses (f)     0.55 %(g)     0.55 %     0.55 %     0.55 %     0.55 %(g)  
Net investment income (f)     4.58 %(g)     3.19 %     1.19 %     0.66 %     1.27 %(g)  
Waiver/reimbursement     0.06 %(g)     0.07 %     0.07 %     0.06 %     0.06 %(g)  
Net assets end of period (000's)   $ 11,232     $ 10,385     $ 11,005     $ 13,944     $ 20,755    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Cash Reserves Marsico Shares commenced operations on May 13, 2002.

(c)  The total returns for the period ended March 31, 2003 reflect the historical return information for the Nations Prime Fund Marsico Shares, which were reorganized into Nations Cash Reserves Marsico Shares on May 10, 2002.

(d)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(e)  Not annualized.

(f)  The benifs derived from custody credits had an impact of less than 0.01%.

(g)  Annualized.

(h)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

163


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves

    Period
Ended
August 31,		   Year Ended March 31,  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0207       0.0357       0.0157       0.0098       0.0155       0.0311    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0207 )     (0.0357 )     (0.0157 )     (0.0098 )     (0.0155 )     (0.0311 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.08 %(c)     3.63 %     1.58 %     0.98 %     1.56 %     3.16 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %  
Net investment income (d)     4.93 %(e)     3.60 %     1.50 %     0.98 %     1.54 %     2.85 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.08 %  
Net assets end of period (000's)   $ 6,625,010     $ 6,401,492     $ 7,148,040     $ 9,064,090     $ 10,092,837     $ 11,084,336    

 

Trust Class Shares

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     0.0202       0.0347       0.0147       0.0088       0.0145       0.0301    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0202 )     (0.0347 )     (0.0147 )     (0.0088 )     (0.0145 )     (0.0301 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.04 %(c)     3.52 %     1.48 %     0.88 %     1.46 %     3.05 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %     0.30 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income (d)     4.89 %(e)     3.71 %     1.32 %     0.88 %     1.44 %     2.75 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.08 %  
Net assets end of period (000's)   $ 20,085     $ 15,325     $ 10,933     $ 9,344     $ 60,342     $ 1,311,771    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

164


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0200       0.0342       0.0142       0.0083       0.0139       0.0296    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0200 )     (0.0342 )     (0.0142 )     (0.0083 )     (0.0139 )     (0.0296 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.02 %(c)     3.47 %     1.42 %     0.83 %     1.41 %     3.00 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %     0.35 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %     0.35 %  
Net investment income (d)     4.78 %(e)     3.56 %     1.44 %     0.83 %     1.39 %     2.70 %  
Waiver/reimbursement     0.16 %(e)     0.16 %     0.17 %     0.65 %     0.76 %     0.78 %  
Net assets end of period (000's)   $ 1,254,383     $ 1,214,883     $ 492,232     $ 437,371     $ 497,339     $ 566,000    

 

Adviser Class Shares

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     0.0196       0.0332       0.0132       0.0073       0.0129       0.0286    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0196 )     (0.0332 )     (0.0132 )     (0.0073 )     (0.0129 )     (0.0286 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.98 %(c)     3.37 %     1.32 %     0.73 %     1.31 %     2.90 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %     0.45 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %     0.45 %  
Net investment income (d)     4.69 %(e)     3.47 %     1.34 %     0.73 %     1.29 %     2.60 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.08 %  
Net assets end of period (000's)   $ 5,666,480     $ 4,730,117     $ 1,740,828     $ 1,791,613     $ 640,364     $ 967,747    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

165


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0192       0.0322       0.0122       0.0063       0.0119       0.0276    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0192 )     (0.0322 )     (0.0122 )     (0.0063 )     (0.0119 )     (0.0276 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.93 %(c)     3.27 %     1.22 %     0.63 %     1.21 %     2.80 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %     0.55 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income (d)     4.56 %(e)     3.26 %     1.20 %     0.63 %     1.19 %     2.50 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.08 %  
Net assets end of period (000's)   $ 80,137     $ 107,221     $ 85,981     $ 89,996     $ 61,153     $ 44,170    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

166


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
August 31,		   Period
Ended
March 31,		   Period
Ended
September 25,		   Year Ended March 31,  
Market Class Shares   2006 (a)   2006 (b)   2003 (b)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0188       0.0160       0.0028       0.0109       0.0266    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0188 )     (0.0160 )     (0.0028 )     (0.0109 )     (0.0266 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.89 %(d)     1.62 %(d)     0.28 %(d)     1.11 %     2.69 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (e)     0.65 %(f)     0.65 %(f)     0.65 %(f)     0.65 %     0.65 %  
Interest expense     —       —       —       — %(g)     —    
Total net expenses (e)     0.65 %(f)     0.65 %(f)     0.65 %(f)     0.65 %     0.65 %  
Net investment income (e)     4.49 %(f)     3.77 %(f)     0.53 %(f)     1.09 %     2.40 %  
Waiver/reimbursement     0.06 %(f)     0.06 %(f)     0.07 %(f)     0.06 %     0.08 %  
Net assets end of period (000's)   $ 367     $ 318     $ —     $ 1,235,160     $ 1,422,125    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Money Market Reserves Market Class Shares were fully redeemed on September 25, 2003 and re-commenced operations on October 25, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

(g)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

167


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0181       0.0297       0.0097       0.0038       0.0095       0.0251    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0181 )     (0.0297 )     (0.0097 )     (0.0038 )     (0.0095 )     (0.0251 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.83 %(c)     3.01 %     0.97 %     0.38 %     0.95 %     2.54 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.80 %(e)     0.80 %     0.80 %     0.80 %     0.80 %     0.80 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.80 %(e)     0.80 %     0.80 %     0.80 %     0.80 %     0.80 %  
Net investment income (d)     4.33 %(e)     3.08 %     0.95 %     0.38 %     0.94 %     2.25 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.08 %  
Net assets end of period (000's)   $ 3,536     $ 3,795     $ 3,588     $ 3,778     $ 4,756     $ 4,501    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

168


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
March 15,		   Year Ended March 31,  
Service Class Shares   2006 (a)   2005   2004   2003   2002  
Net Asset Value
Beginning of Period		   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0263       0.0080       0.0025       0.0056       0.0211    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0263 )     (0.0080 )     (0.0025 )     (0.0056 )     (0.0211 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.66 %(c)(d)     0.80 %     0.25 %     0.56 %     2.13 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (e)     1.00 %(f)     0.95 %     0.95 %     1.19 %     1.20 %  
Interest expense     —       —       —       — %(g)     —    
Total net expenses (e)     1.00 %(f)     0.95 %     0.95 %     1.19 %     1.20 %  
Net investment income (e)     2.91 %(f)     0.53 %     0.23 %     0.55 %     1.85 %  
Waiver/reimbursement     0.06 %(f)     0.12 %     0.27 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ —     $ 1,762     $ 75,965     $ 118,713     $ 139,024    

 

(a)  Columbia Money Market Reserves Service Class Shares were fully redeemed on March 15, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Performance includes return from August 31, 2005 to September 6, 2005 during which period Service Class Shares were fully redeemed.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

(g)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

169


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Class B Shares (a)   2006 (b)   2006   2005   2004   2003   2002  
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     0.0160       0.0247       0.0060       0.0025       0.0049       0.0201    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0160 )     (0.0247 )     (0.0060 )     (0.0025 )     (0.0049 )     (0.0201 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.62 %(d)     2.50 %     0.60 %     0.25 %     0.49 %     2.03 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (e)     1.30 %(f)     1.30 %     1.16 %     0.94 %     1.26 %     1.30 %  
Interest expense     —       —       —       —       — %(g)     —    
Total net expenses (e)     1.30 %(f)     1.30 %     1.16 %     0.94 %     1.26 %     1.30 %  
Net investment income (e)     3.84 %(f)     2.41 %     0.56 %     0.24 %     0.48 %     1.75 %  
Waiver/reimbursement     0.06 %(f)     0.06 %     0.21 %     0.42 %     0.10 %     0.08 %  
Net assets end of period (000's)   $ 5,126     $ 4,625     $ 6,470     $ 8,955     $ 15,512     $ 9,407    

 

Class C Shares (a)

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     0.0160       0.0246       0.0060       0.0025       0.0049       0.0201    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0160 )     (0.0246 )     (0.0060 )     (0.0025 )     (0.0049 )     (0.0201 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.62 %(d)     2.49 %     0.60 %     0.25 %     0.49 %     2.03 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (e)     1.30 %(f)     1.30 %     1.13 %     0.93 %     1.27 %     1.30 %  
Interest expense     —       —       —       —       — %(g)     —    
Total net expenses (e)     1.30 %(f)     1.30 %     1.13 %     0.93 %     1.27 %     1.30 %  
Net investment income (e)     3.94 %(f)     2.27 %     0.49 %     0.25 %     0.47 %     1.75 %  
Waiver/reimbursement     0.06 %(f)     0.06 %     0.24 %     0.43 %     0.09 %     0.08 %  
Net assets end of period (000's)   $ 918     $ 128     $ 988     $ 754     $ 1,072     $ 408    

 

(a)  On August 22, 2005, the Fund's Investor B and C Shares were redesignated Class B and C Shares, respectively.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

(g)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

170


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0205       0.0353       0.0153       0.0094       0.0151       0.0307    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0205 )     (0.0353 )     (0.0153 )     (0.0094 )     (0.0151 )     (0.0307 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.07 %(c)     3.59 %     1.54 %     0.94 %     1.52 %     3.12 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Net operating expenses (d)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %     0.24 %  
Interest expense     —       —       —       —       — %(f)     —    
Total net expenses (d)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %     0.24 %  
Net investment income (d)     4.90 %(e)     3.59 %     1.59 %     0.94 %     1.50 %     2.81 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.08 %  
Net assets end of period (000's)   $ 2,691,468     $ 2,361,622     $ 1,915,745     $ 937,474     $ 721,023     $ 535,650    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

171


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Money Market Reserves (continued)

Retail A Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0204       0.0149    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0204 )     (0.0149 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     2.05 %     1.50 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.27 %     0.27 %  
Net investment income (e)(f)     4.85 %     4.15 %  
Waiver/reimbursement (f)     0.06 %     0.06 %  
Net assets end of period (000's)   $ 101,776     $ 110,828    

 

G-Trust Shares

Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0207       0.0152    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0207 )     (0.0152 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     2.08 %     1.53 %(d)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.20 %     0.20 %  
Net investment income (e)(f)     4.93 %     4.22 %  
Waiver/reimbursement (f)     0.06 %     0.06 %  
Net assets end of period (000's)   $ 730,240     $ 780,544    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Money Market Reserves Retail A and G-Trust Shares commenced operations on Novemeber 21, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

172



Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves

    Period
Ended
August 31,		   Year Ended March 31,  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0202       0.0345       0.0144       0.0093       0.0150       0.0302    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0202 )     (0.0345 )     (0.0144 )     (0.0093 )     (0.0150 )     (0.0302 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.04 %(c)     3.50       1.45       0.94       1.51       3.06    
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %  
Net investment income (d)     4.83 %(e)     3.51 %     1.41 %     0.94 %     1.52 %     2.81 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 2,254,712     $ 2,283,858     $ 1,570,292     $ 2,120,480     $ 2,560,626     $ 3,715,126    

 

Trust Class Shares

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     0.0198       0.0335       0.0134       0.0083       0.0140       0.0292    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0198 )     (0.0335 )     (0.0134 )     (0.0083 )     (0.0140 )     (0.0292 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.00 %(c)     3.40       1.35       0.84       1.41       2.96    
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income (d)     4.74 %(e)     3.35 %     1.31 %     0.84 %     1.42 %     2.71 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 753,036     $ 658,693     $ 656,083     $ 808,567     $ 908,826     $ 399,582    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

173


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0196       0.0330       0.0129       0.0078       0.0136       0.0287    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0196 )     (0.0330 )     (0.0129 )     (0.0078 )     (0.0136 )     (0.0287 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.98 %(c)     3.35 %     1.30 %     0.79 %     1.36 %     2.90 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %     0.35 %  
Net investment income (d)     4.68 %(e)     3.31 %     1.32 %     0.79 %     1.37 %     2.66 %  
Waiver/reimbursement     0.16 %(e)     0.16 %     0.17 %     0.68 %     0.81 %     0.82 %  
Net assets end of period (000's)   $ 463,198     $ 428,929     $ 413,480     $ 347,723     $ 384,984     $ 370,139    

 

Adviser Class Shares

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     0.0192       0.0320       0.0119       0.0068       0.0126       0.0277    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0192 )     (0.0320 )     (0.0119 )     (0.0068 )     (0.0126 )     (0.0277 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.93 %(c)     3.24 %     1.20 %     0.68 %     1.26 %     2.80 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %     0.45 %  
Net investment income (d)     4.58 %(e)     3.30 %     1.20 %     0.69 %     1.27 %     2.56 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 7,525,633     $ 7,418,032     $ 4,608,621     $ 4,019,140     $ 2,723,279     $ 2,568,691    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

174


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0188       0.0310       0.0109       0.0058       0.0116       0.0267    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0188 )     (0.0310 )     (0.0109 )     (0.0058 )     (0.0116 )     (0.0267 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.89 %(c)     3.14 %     1.10 %     0.58 %     1.16 %     2.70 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income (d)     4.49 %(e)     3.05 %     1.02 %     0.59 %     1.17 %     2.46 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 180,073     $ 230,999     $ 368,396     $ 450,784     $ 673,332     $ 688,990    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

175


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Period
Ended
March 31,		   Period
Ended
September 25,		   Year Ended March 31,  
Market Class Shares   2006 (a)   2006 (b)   2003 (b)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0183       0.0155       0.0027       0.0106       0.0257    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0183 )     (0.0155 )     (0.0027 )     (0.0106 )     (0.0257 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.84 %(d)     1.56 %(d)     0.27 %(d)     1.06 %     2.60 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (e)     0.65 %(f)     0.65 %(f)     0.65 %(f)     0.65 %     0.65 %  
Net investment income (e)     4.36 %(f)     3.61 %(f)     0.49 %(f)     1.07 %     2.36 %  
Waiver/reimbursement     0.06 %(f)     0.06 %(f)     0.07 %(f)     0.06 %     0.07 %  
Net assets end of period (000's)   $ 11     $ 10     $ —     $ 1,334,965     $ 1,381,945    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Treasury Reserves Market Class Shares were fully redeemed on September 25, 2003 and re-commenced operations on October 25, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

176


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0177       0.0285       0.0085       0.0033       0.0090       0.0242    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0177 )     (0.0285 )     (0.0085 )     (0.0033 )     (0.0090 )     (0.0242 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.79 %(c)     2.88       0.85       0.33       0.91       2.44    
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.80 %(e)     0.80 %     0.80 %     0.80 %     0.80 %     0.80 %  
Net investment income (d)     4.24 %(e)     3.06 %     0.83 %     0.34 %     0.92 %     2.21 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 648,576     $ 710,078     $ 256,064     $ 291,341     $ 1,159,050     $ 1,301,678    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

177


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
October 30,		   Year Ended March 31,  
Service Class Shares   2003 (a)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0015       0.0051       0.0202    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0015 )     (0.0051 )     (0.0202 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00    
Total return (b)     0.15 %(c)     0.52       2.04    
Ratios to Average Net Assets/Supplemental Data:  
Expenses (d)     0.95 %(e)     1.19 %     1.20 %  
Net investment income (d)     0.19 %(e)     0.53 %     1.81 %  
Waiver/reimbursement     0.31 %(e)     0.07 %     0.07 %  
Net assets end of period (000's)   $ —     $ 292,215     $ 330,420    

 

(a)  Columbia Treasury Reserves Service Class Shares were fully redeemed on October 30, 2003.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

178


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Class A Shares (a)   2006 (b)   2006   2005   2004   2003 (c)(d)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0184       0.0300       0.0099       0.0048       0.0107    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0184 )     (0.0300 )     (0.0099 )     (0.0048 )     (0.0107 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (e)     1.85 %(f)     3.04 %     1.00 %     0.48 %     1.07 %(f)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (g)     0.65 %(h)     0.65 %     0.65 %     0.65 %     0.65 %(h)  
Net investment income (g)     4.39 %(h)     3.05 %     0.95 %     0.49 %     1.07 %(h)  
Waiver/reimbursement     0.06 %(h)     0.06 %     0.07 %     0.06 %     0.06 %(h)  
Net assets end of period (000's)   $ 593,733     $ 707,503     $ 632,569     $ 702,673     $ 850,729    

 

(a)  On August 22, 2005, the Fund's Investor A Shares were redesignated Class A Shares.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  The total return for the period ended March 31, 2003 reflect the historical return information for the Nations Treasury Fund Class A Shares, which were reorganized into Nations Treasury Reserves Class A Shares on May 10, 2002.

(d)  Columbia Treasury Reserves Class A Shares commenced operations on May 13, 2002.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  The benefits derived from custody credits had an impact of less than 0.01%.

(h)  Annualized.

See Accompanying Notes to Financial Statements.

179


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Class B Shares (a)   2006 (b)   2006   2005   2004   2003   2002  
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     0.0156       0.0235       0.0051       0.0025       0.0047       0.0192    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0156 )     (0.0235 )     (0.0051 )     (0.0025 )     (0.0047 )     (0.0192 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.57 %(d)     2.37 %     0.51 %     0.25 %     0.47 %     1.93 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (e)     1.30 %(f)     1.30 %     1.12 %     0.90 %     1.22 %     1.30 %  
Net investment income (e)     3.74 %(f)     2.37 %     0.47 %     0.24 %     0.50 %     1.71 %  
Waiver/reimbursement     0.06 %(f)     0.06 %     0.25 %     0.46 %     0.14 %     0.07 %  
Net assets end of period (000's)   $ 312     $ 267     $ 238     $ 359     $ 535     $ 180    

 

(a)  On August 22, 2005, the Fund's Investor B Shares were redesignated Class B Shares.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

180


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

Class C Shares (a)   Period
Ended
July 23,
2003 (b)		   Period
Ended
March 31,
2003 (c)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0008       0.0017    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0008 )     (0.0017 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (d)(e)     0.08 %     0.15 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (f)(g)     1.05 %     1.26 %  
Net investment income (f)(g)     0.09 %     0.46 %  
Waiver/reimbursement (g)     0.32 %     0.10 %  
Net assets end of period (000's)   $ —     $ 5    

 

(a)  On August 22, 2005, the Fund's Investor C Shares were redesignated Class C Shares.

(b)  Columbia Treasury Reserves Class C Shares were fully redeemed on July 23, 2003.

(c)  Columbia Treasury Reserves Class C Shares commenced operations on July 16, 2002.

(d)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(e)  Not annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

(g)  Annualized.

See Accompanying Notes to Financial Statements.

181


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Treasury Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0201       0.0341       0.0140       0.0089       0.0146       0.0298    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0201 )     (0.0341 )     (0.0140 )     (0.0089 )     (0.0146 )     (0.0298 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.02 %(c)     3.46 %     1.41 %     0.90 %     1.47 %     3.02 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (d)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %     0.24 %  
Net investment income (d)     4.81 %(e)     3.51 %     1.42 %     0.90 %     1.48 %     2.77 %  
Waiver/reimbursement     0.06 %(e)     0.06 %     0.07 %     0.06 %     0.06 %     0.07 %  
Net assets end of period (000's)   $ 1,313,381     $ 1,036,381     $ 439,022     $ 498,188     $ 538,719     $ 383,265    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

182


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves

    Period
Ended
August 31,		   Year Ended March 31,  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0204       0.0348       0.0152       0.0095       0.0151       0.0303    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0204 )     (0.0348 )     (0.0152 )     (0.0095 )     (0.0151 )     (0.0303 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.06 %(c)     3.53 %     1.53 %     0.96 %     1.52 %     3.07 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %     0.20 %  
Net investment income (d)     4.89 %(e)     3.50 %     1.51 %     0.96 %     1.48 %     2.70 %  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.07 %     0.06 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 1,671,184     $ 1,306,727     $ 1,132,047     $ 1,289,052     $ 1,772,133     $ 1,818,554    

 

Trust Class Shares

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     0.0200       0.0338       0.0142       0.0085       0.0141       0.0293    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0200 )     (0.0338 )     (0.0142 )     (0.0085 )     (0.0141 )     (0.0293 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.01 %(c)     3.43 %     1.43 %     0.86 %     1.42 %     2.97 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income (d)     4.76 %(e)     3.44 %     1.50 %     0.86 %     1.38 %     2.60 %  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.07 %     0.06 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 300,750     $ 387,210     $ 250,281     $ 292,272     $ 380,478     $ 289,252    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

183


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0198       0.0333       0.0137       0.0080       0.0136       0.0286    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0198 )     (0.0333 )     (0.0137 )     (0.0080 )     (0.0136 )     (0.0286 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.99 %(c)     3.38 %     1.38 %     0.81 %     1.37 %     2.91 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %     0.35 %  
Net investment income (d)     4.73 %(e)     3.40 %     1.41 %     0.81 %     1.33 %     2.55 %  
Waiver/reimbursement     0.17 %(e)     0.17 %     0.17 %     0.64 %     0.77 %     0.78 %  
Net assets end of period (000's)   $ 890,545     $ 687,275     $ 410,737     $ 300,885     $ 175,562     $ 164,296    

 

Adviser Class Shares

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     0.0194       0.0323       0.0127       0.0070       0.0126       0.0278    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0194 )     (0.0323 )     (0.0127 )     (0.0070 )     (0.0126 )     (0.0278 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.95 %(c)     3.28 %     1.28 %     0.70 %     1.27 %     2.81 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %     0.45 %  
Net investment income (d)     4.64 %(e)     3.28 %     1.23 %     0.71 %     1.23 %     2.45 %  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.07 %     0.06 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 1,119,732     $ 1,026,932     $ 804,271     $ 1,104,735     $ 586,412     $ 794,855    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

184


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0189       0.0313       0.0117       0.0060       0.0116       0.0268    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0189 )     (0.0313 )     (0.0117 )     (0.0060 )     (0.0116 )     (0.0268 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.91 %(c)     3.17 %     1.18 %     0.60 %     1.17 %     2.71 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income (d)     4.51 %(e)     3.11 %     1.10 %     0.61 %     1.13 %     2.35 %  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.07 %     0.06 %     0.07 %     0.08 %  
Net assets end of period (000)   $ 373,641     $ 364,023     $ 460,841     $ 792,634     $ 578,548     $ 1,001,552    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

185


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Period
Ended
March 31,		   Period Ended
September 25,		   Year Ended March 31,  
Market Class Shares   2006 (a)   2006 (b)   2003 (b)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0186       0.0164       0.0028       0.0106       0.0258    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0186 )     (0.0164 )     (0.0028 )     (0.0106 )     (0.0258 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.87 %(d)     1.65 %(d)     0.28 %(d)     1.07 %     2.61 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (e)     0.65 %(f)     0.65 %(f)     0.65 %(f)     0.65 %     0.65 %  
Net investment income (e)     4.42 %(f)     3.83 %(f)     0.51 %(f)     1.08 %     2.25 %  
Waiver/reimbursement     0.07 %(f)     0.07 %(f)     0.07 %(f)     0.07 %     0.08 %  
Net assets end of period (000)   $ 27     $ 33     $ —     $ 502,090     $ 561,082    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Government Reserves Market Class Shares were fully redeemed on September 25, 2003 and re-commenced operations on October 25, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

186


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0179       0.0288       0.0092       0.0035       0.0091       0.0243    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0179 )     (0.0288 )     (0.0092 )     (0.0035 )     (0.0091 )     (0.0243 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.80 %(c)     2.92 %     0.93 %     0.35 %     0.92 %     2.45 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.80 %(e)     0.80 %     0.80 %     0.80 %     0.80 %     0.80 %  
Net investment income (d)     4.26 %(e)     3.06 %     0.94 %     0.36 %     0.88 %     2.10 %  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.07 %     0.06 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 540,518     $ 591,846     $ 304,322     $ 352,046     $ 312,836     $ 317,287    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

187


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
September 25,		   Year Ended March 31,  
Service Class Shares   2003 (a)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0012       0.0052       0.0203    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0012 )     (0.0052 )     (0.0203 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00    
Total return (b)     0.12 %(c)     0.52 %     2.05 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (d)     0.97 %(e)     1.19 %     1.20 %  
Net investment income (d)     0.19 %(e)     0.49 %     1.70 %  
Waiver/reimbursement     0.30 %(e)     0.08 %     0.08 %  
Net assets end of period (000's)   $ —     $ 36,006     $ 36,505    

 

(a)  Columbia Government Reserves Service Class Shares were fully redeemed on September 25, 2003.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

188


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Class A Shares (a)   2006 (b)   2006   2005   2004   2003 (c)(d)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0185       0.0303       0.0107       0.0050       0.0108    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0185 )     (0.0303 )     (0.0107 )     (0.0050 )     (0.0108 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (e)     1.86 %(f)     3.07 %     1.08 %     0.50 %     1.08 %(f)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (g)     0.65 %(h)     0.65 %     0.65 %     0.65 %     0.65 %(h)  
Net investment income (g)     4.44 %(h)     2.98 %     1.13 %     0.51 %     1.03 %(h)  
Waiver/reimbursement     0.07 %(h)     0.07 %     0.07 %     0.06 %     0.07 %(h)  
Net assets end of period (000's)   $ 24,002     $ 16,903     $ 31,654     $ 11,263     $ 6,069    

 

(a)  On August 22, 2005, the Fund's Investor A Shares were redesignated Class A Shares.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Columbia Government Reserves Service Class A commenced operations on May 13, 2002.

(d)  The total return for the period ended March 31, 2003 reflects the historical return information for the Nations Government Money Market Fund Class A Shares, which were reorganized into Nations Government Reserves Class A Shares on May 10, 2002.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  The benefits derived from custody credits had an impact of less than 0.01%.

(h)  Annualized.

See Accompanying Notes to Financial Statements.

189


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Class B Shares (a)   2006 (b)   2006   2005   2004   2003   2002  
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     0.0158       0.0238       0.0056       0.0025       0.0045       0.0193    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0158 )     (0.0238 )     (0.0056 )     (0.0025 )     (0.0045 )     (0.0193 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.59 %(d)     2.40 %     0.57 %     0.25 %     0.45 %     1.94 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (e)     1.30 %(f)     1.30 %     1.15 %     0.92 %     1.26 %     1.30 %  
Net investment income (e)     3.78 %(f)     2.27 %     0.55 %     0.24 %     0.42 %     1.60 %  
Waiver/reimbursement     0.07 %(f)     0.07 %     0.22 %     0.44 %     0.11 %     0.08 %  
Net assets end of period (000's)   $ 300     $ 236     $ 704     $ 917     $ 1,804     $ 2,105    

 

(a)  On August 22, 2005, the Fund's Investor B Shares were redesignated Class B Shares.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

190


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

Class C Shares (a)   Period
Ended
January 06,
2003 (b)		   Year
Ended
March 31,
2002		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0037       0.0193    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0037 )     (0.0193 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)     0.37 %(d)     1.95 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)     1.30 %(f)     1.30 %  
Net investment income (e)     0.57 %(f)     1.60 %  
Waiver/reimbursement     0.07 %(f)     0.08 %  
Net assets end of period (000's)   $ —     $ 982    

 

(a)  On August 22, 2005, the Fund's Investor C Shares were redesignated Class C Shares.

(b)  Columbia Government Reserves Class C Shares were fully redeemed on January 6, 2003.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

191


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0202       0.0344       0.0148       0.0091       0.0147       0.0299    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0202 )     (0.0344 )     (0.0148 )     (0.0091 )     (0.0147 )     (0.0299 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     2.04 %(c)     3.49 %     1.49 %     0.92 %     1.48 %     3.03 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (d)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %     0.24 %  
Net investment income (d)     4.82 %(e)     3.56 %     1.45 %     0.92 %     1.44 %     2.66 %  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.07 %     0.06 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 193,420     $ 186,164     $ 186,374     $ 438,059     $ 81,814     $ 86,551    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

192


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Government Reserves (continued)

Retail A Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0200       0.0146    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0200 )     (0.0146 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     2.02 %     1.47 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.29 %     0.29 %  
Net investment income (e)(f)     4.77 %     4.06 %  
Waiver/reimbursement (f)     0.07 %     0.07 %  
Net assets end of period (000's)   $ 63,573     $ 68,003    

 

G-Trust Shares

Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0204       0.0149    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0204 )     (0.0149 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     2.06 %     1.50 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.20 %     0.20 %  
Net investment income (e)(f)     4.88 %     4.14 %  
Waiver/reimbursement (f)     0.07 %     0.07 %  
Net assets end of period (000's)   $ 261,651     $ 246,188    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Government Reserves Retail A and G-Trust Shares commenced operations on November 21, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

193



Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves

    Period
Ended
August 31,		   Year Ended March 31,  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0143       0.0256       0.0128       0.0089       0.0127       0.0215    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0143 )     (0.0256 )     (0.0128 )     (0.0089 )     (0.0127 )     (0.0215 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.44 %(c)     2.59 %     1.28 %     0.90 %     1.28 %     2.18 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.20 %(d)(e)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %  
Net investment income     3.43 %(d)(e)     2.60 %(e)     1.33 %     0.88 %     1.23 %     2.03 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.08 %     0.10 %  
Net assets end of period (000's)   $ 5,245,065     $ 3,537,820     $ 3,338,133     $ 1,988,042     $ 1,379,684     $ 456,528    

 

Trust Class Shares

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     0.0139       0.0246       0.0118       0.0079       0.0117       0.0205    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0139 )     (0.0246 )     (0.0118 )     (0.0079 )     (0.0117 )     (0.0205 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.40 %(c)     2.49 %     1.18 %     0.80 %     1.18 %     2.07 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.30 %(d)(e)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income     3.31 %(d)(e)     2.49 %(e)     1.16 %     0.78 %     1.13 %     1.93 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.08 %     0.10 %  
Net assets end of period (000's)   $ 551,810     $ 520,422     $ 407,159     $ 477,139     $ 505,903     $ 491,711    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

194


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0137       0.0241       0.0113       0.0074       0.0113       0.0200    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0137 )     (0.0241 )     (0.0113 )     (0.0074 )     (0.0113 )     (0.0200 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.38 %(c)     2.43 %     1.13 %     0.74 %     1.13 %     2.02 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.35 %(d)(e)     0.35 %(e)     0.35 %     0.35 %     0.35 %     0.35 %  
Net investment income     3.27 %(d)(e)     2.39 %(e)     1.17 %     0.73 %     1.08 %     1.88 %  
Waiver/reimbursement     0.16 %(d)     0.16 %     0.18 %     0.61 %     0.78 %     0.80 %  
Net assets end of period (000's)   $ 339,422     $ 315,658     $ 345,842     $ 149,812     $ 120,637     $ 45,728    

 

Adviser Class Shares

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     0.0133       0.0231       0.0103       0.0064       0.0103       0.0190    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0133 )     (0.0231 )     (0.0103 )     (0.0064 )     (0.0103 )     (0.0190 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.33 %(c)     2.33 %     1.03 %     0.64 %     1.03 %     1.92 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.45 %(d)(e)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %  
Net investment income     3.16 %(d)(e)     2.33 %(e)     1.01 %     0.63 %     0.98 %     1.78 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.08 %     0.10 %  
Net assets end of period (000's)   $ 661,680     $ 527,961     $ 474,653     $ 506,550     $ 284,866     $ 158,556    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

195


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0129       0.0221       0.0093       0.0054       0.0093       0.0180    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0129 )     (0.0221 )     (0.0093 )     (0.0054 )     (0.0093 )     (0.0180 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.29 %(c)     2.23 %     0.93 %     0.54 %     0.93 %     1.82 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.55 %(d)(e)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income     3.07 %(d)(e)     2.19 %(e)     0.88 %     0.53 %     0.88 %     1.68 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.08 %     0.10 %  
Net assets end of period (000's)   $ 74,219     $ 66,136     $ 84,348     $ 147,189     $ 89,289     $ 48,022    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

196


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
August 31,		   Period
Ended
March 31,		   Period
Ended
September 25,		   Year Ended March 31,  
Market Class Shares   2006 (a)   2006 (b)   2003 (b)   2003   2002  
Net Asset Value, Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0123       0.0104       0.0023       0.0083       0.0170    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0123 )     (0.0104 )     (0.0023 )     (0.0083 )     (0.0170 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.24 %(d)     1.04 %(d)     0.23 %(d)     0.83 %     1.72 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.65 %(e)(f)     0.65 %(e)(f)     0.65 %(e)     0.65 %     0.65 %  
Net investment income     2.94 %(e)(f)     2.38 %(e)(f)     0.43 %(e)     0.78 %     1.58 %  
Waiver/reimbursement     0.06 %(e)     0.06 %(e)     0.08 %(e)     0.08 %     0.10 %  
Net assets end of period (000's)   $ 23     $ 11     $ —     $ 150,014     $ 223,008    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Municipal Reserves Market Class Shares were fully redeemed on September 25, 2003 and re-commenced operations on October 25, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

197


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0118       0.0196       0.0068       0.0031       0.0067       0.0155    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0118 )     (0.0196 )     (0.0068 )     (0.0031 )     (0.0067 )     (0.0155 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.19 %(c)     1.97 %     0.68 %     0.31 %     0.68 %     1.56 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.80 %(d)(e)     0.80 %(e)     0.80 %     0.78 %     0.80 %     0.80 %  
Net investment income     2.81 %(d)(e)     2.02 %(e)     0.67 %     0.30 %     0.63 %     1.43 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.09 %     0.08 %     0.10 %  
Net assets end of period (000's)   $ 1,433,097     $ 1,368,604     $ 591,206     $ 605,118     $ 526,658     $ 637,172    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

198


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
September 25,		   Year Ended March 31,  
Service Class Shares   2003 (a)   2003   2002  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0012       0.0052       0.0123    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0012 )     (0.0052 )     (0.0123 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00    
Total return (b)     0.12 %(c)     0.52 %     1.24 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses     0.91 %(d)     0.96 %     1.16 %  
Net investment income     0.17 %(d)     0.47 %     1.03 %  
Waiver/reimbursement     0.36 %(d)     0.32 %     0.14 %  
Net assets end of period (000's)   $ —     $ 14,001     $ 15,001    

 

(a)  Columbia Municipal Reserves Service Class Shares were fully redeemed on September 25, 2003.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

See Accompanying Notes to Financial Statements.

199


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
August 31,		   Period
Ended
March 31,		   Period
Ended
October 12,		   Year Ended March 31,  
Class B Shares (a)   2006 (b)   2006 (c)   2005 (c)   2005   2004   2003   2002  
Net Asset Value
Beginning of Period		   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0097       0.0066       0.0063       0.0032       0.0019       0.0045       0.0113    
Less Distributions
Declared to Shareholders:		  
From net investment income     (0.0097 )     (0.0066 )     (0.0063 )     (0.0032 )     (0.0019 )     (0.0045 )     (0.0113 )  
Net Asset Value,
End of Period		   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (d)     0.97 %(e)     0.67 %(e)     0.64 %(e)     0.32 %     0.19 %     0.45 %     1.14 %  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     1.30 %(f)(g)     1.30 %(f)(g)     1.30 %(f)(g)     1.11 %     0.90 %     1.03 %     1.22 %  
Net investment income     2.28 %(f)(g)     1.65 %(f)(g)     1.21 %(f)(g)     0.31 %     0.18 %     0.40 %     0.93 %  
Waiver/reimbursement     0.06 %(f)     0.06 %(f)     0.06 %(f)     0.27 %     0.48 %     0.35 %     0.18 %  
Net assets
end of period (000's)		   $ 65     $ 132       —     $ 46     $ 47     $ 59     $ 71    

 

(a)  On August 22, 2005, the Fund's Investor B Shares were redesignated Class B Shares.

(b)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(c)  Columbia Municipal Reserves Class B Shares were fully redeemed on October 12, 2005 and re-commenced operations on Novermber 21, 2005.

(d)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(e)  Not annualized.

(f)  Annualized.

(g)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

200


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
February 3,		   Year Ended March 31,   Period
Ended
March 31,		  
Class C Shares (a)   2005 (b)   2004   2003   2002 (c)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0022       0.0019       0.0044       0.0000 (d)  
Less Distributions Declared to Shareholders:  
From net investment income     (0.0022 )     (0.0019 )     (0.0044 )     (0.0000 )(d)  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (e)     0.22 %(f)     0.19 %     0.45 %     0.00 %(f)(d)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses     1.04 %(g)     0.90 %     1.01 %     1.30 %(g)  
Net investment income     0.21 %(g)     0.18 %     0.42 %     0.93 %(g)  
Waiver/reimbursement     0.34 %(g)     0.47 %     0.37 %     0.10 %(g)  
Net assets end of period (000's)   $ —     $ 2,503     $ 2,525     $ 95    

 

(a)  On August 22, 2005, the Fund's Investor C Shares were redesignated C Shares.

(b)  Columbia Municipal Reserves Class C Shares were fully redeemed on February 3, 2005.

(c)  Columbia Municipal Reserves Class C Shares commenced operations on March 28, 2002.

(d)  Amount represents less than $0.0001 or 0.01%, as applicable.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  Annualized.

See Accompanying Notes to Financial Statements.

201


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

Class Z Shares   Period
ended
August 31,
2006 (a)		   Period
ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0143       0.0109    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0143 )     (0.0109 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     1.44 %     1.09 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.20 %     0.20 %  
Net investment income (e)(f)     3.42 %     2.96 %  
Waiver/reimbursement (e)     0.06 %     0.06 %  
Net assets end of period (000's)   $ 51,606     $ 54,158    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Municipal Reserves Class Z Shares commenced operations on November 18, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

202


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Municipal Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0142       0.0252       0.0124       0.0085       0.0123       0.0163    
Less Distributions
Declared to Shareholders:		  
From net investment income     (0.0142 )     (0.0252 )     (0.0124 )     (0.0085 )     (0.0123 )     (0.0163 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.42 %(c)     2.55 %     1.24 %     0.86 %     1.24 %     1.64 %  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.24 %(d)(e)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %  
Net investment income     3.38 %(d)(e)     2.49 %(e)     1.33 %     0.84 %     1.19 %     1.99 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.08 %     0.10 %  
Net assets end of period (000's)   $ 783,898     $ 578,505     $ 871,984     $ 479,770     $ 204,206     $ 85,432    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

203


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Capital Class Shares   2006 (a)   2006   2005   2004   2003 (b)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0141       0.0251       0.0125       0.0086       0.0095    
Less Distributions
Declared to Shareholders:		  
From net investment income     (0.0141 )     (0.0251 )     (0.0125 )     (0.0086 )     (0.0095 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.42 %(d)     2.54 %     1.26 %     0.87 %     0.96 %(d)  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.20 %(e)(f)     0.20 %(f)     0.20 %     0.20 %     0.20 %(e)  
Net investment income     3.38 %(e)(f)     2.58 %(f)     1.31 %     0.84 %     1.13 %(e)  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.08 %     0.07 %     0.08 %(e)  
Net assets end of period (000's)   $ 1,688,338     $ 975,386     $ 1,049,210     $ 542,057     $ 275,095    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Tax-Exempt Reserves Capital Class Shares commenced operations on June 13, 2002.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

204


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Trust Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0137       0.0241       0.0115       0.0076       0.0113       0.0204    
Less Distributions
Declared to Shareholders:		  
From net investment income     (0.0137 )     (0.0241 )     (0.0115 )     (0.0076 )     (0.0113 )     (0.0204 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.38 %(c)     2.44 %     1.15 %     0.76 %     1.14 %     2.06 %  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.30 %(d)(e)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income     3.27 %(d)(e)     2.43 %(e)     1.15 %     0.74 %     1.03 %     2.00 %  
Waiver/reimbursement     0.07 %(d)     0.07 %     0.08 %     0.07 %     0.08 %     0.03 %  
Net assets end of period (000's)   $ 2,684,441     $ 2,475,660     $ 2,052,864     $ 2,028,564     $ 2,411,508     $ 2,606,052    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

205


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003 (b)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0135       0.0236       0.0110       0.0071       0.0059    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0135 )     (0.0236 )     (0.0110 )     (0.0071 )     (0.0059 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.36 %(d)     2.39 %     1.10 %     0.71 %     0.59 %(d)  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.35 %(e)(f)     0.35 %(f)     0.35 %     0.35 %     0.35 %(e)  
Net investment income     3.25 %(e)(f)     2.32 %(f)     0.92 %     0.69 %     0.98 %(e)  
Waiver/reimbursement     0.17 %(e)     0.17 %     0.18 %     0.64 %     0.78 %(e)  
Net assets end of period (000's)   $ 20,549     $ 5,292     $ 3,392     $ 5,792     $ 1,918    

 

Adviser Class Shares

Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0131       0.0226       0.0100       0.0061       0.0060    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0131 )     (0.0226 )     (0.0100 )     (0.0061 )     (0.0060 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return(c)     1.31 %(d)     2.28 %     1.00 %     0.61 %     0.60 %(d)  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.45 %(e)(f)     0.45 %(f)     0.45 %     0.45 %     0.45 %(e)  
Net investment income     3.13 %(e)(f)     2.29 %(f)     0.98 %     0.59 %     0.88 %(e)  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.08 %     0.07 %     0.08 %(e)  
Net assets end of period (000's)   $ 75,079     $ 20,757     $ 11,183     $ 10,264     $ 9,661    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Tax-Exempt Reserves Liquidity Class and Adviser Class Shares commenced operations on September 3, 2002 and August 9, 2002, respectively.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

206


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0126       0.0216       0.0090       0.0051       0.0089       0.0179    
Less Distributions
Declared to Shareholders:		  
From net investment income     (0.0126 )     (0.0216 )     (0.0090 )     (0.0051 )     (0.0089 )     (0.0179 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.27 %(c)     2.18 %     0.90 %     0.51 %     0.89 %     1.81 %  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.55 %(d)(e)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income     2.99 %(d)(e)     2.12 %(e)     0.82 %     0.49 %     0.78 %     1.75 %  
Waiver/reimbursement     0.07 %(d)     0.07 %     0.08 %     0.07 %     0.08 %     0.13 %  
Net assets end of period (000's)   $ 7,376     $ 7,567     $ 11,280     $ 22,071     $ 138,285     $ 210,389    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

207


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0116       0.0191       0.0065       0.0028       0.0063       0.0154    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0116 )     (0.0191 )     (0.0065 )     (0.0028 )     (0.0063 )     (0.0154 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.16 %(c)     1.93 %     0.65 %     0.28 %     0.64 %     1.55 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.80 %(d)(e)     0.80 %(e)     0.80 %     0.78 %     0.80 %     0.80 %  
Net investment income     2.76 %(d)(e)     1.88 %(e)     0.63 %     0.26 %     0.53 %     1.50 %  
Waiver/reimbursement     0.07 %(d)     0.07 %     0.08 %     0.11 %     0.08 %     0.23 %  
Net assets end of period (000's)   $ 26,833     $ 28,871     $ 36,441     $ 49,784     $ 64,516     $ 96,175    

 

Class A Shares (f)

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     0.0122       0.0206       0.0080       0.0041       0.0079       0.0169    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0122 )     (0.0206 )     (0.0080 )     (0.0041 )     (0.0079 )     (0.0169 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.23 %(c)     2.08 %     0.80 %     0.41 %     0.79 %     1.70 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.65 %(d)(e)     0.65 %(e)     0.65 %     0.65 %     0.65 %     0.65 %  
Net investment income     2.91 %(d)(e)     2.06 %(e)     0.75 %     0.39 %     0.68 %     1.65 %  
Waiver/reimbursement     0.07 %(d)     0.07 %     0.08 %     0.07 %     0.08 %     0.03 %  
Net assets end of period (000's)   $ 17,859     $ 25,572     $ 28,934     $ 50,803     $ 87,141     $ 80,108    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  On August 22, 2005, Investor A Shares were redesignated Class A Shares.

See Accompanying Notes to Financial Statements.

208


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003 (b)  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0139       0.0247       0.0121       0.0082       0.0090    
Less Distributions
Declared to Shareholders:		  
From net investment income     (0.0139 )     (0.0247 )     (0.0121 )     (0.0082 )     (0.0090 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.40 %(d)     2.50 %     1.22 %     0.82 %     0.91 %(d)  
Ratios to Average Net
Assets/Supplemental Data:		  
Expenses     0.24 %(e)(f)     0.24 %(f)     0.24 %     0.24 %     0.24 %(e)  
Net investment income     3.33 %(e)(f)     2.44 %(f)     1.23 %     0.80 %     1.09 %(e)  
Waiver/reimbursement     0.07 %(e)     0.07 %     0.08 %     0.07 %     0.08 %(e)  
Net assets end of period (000's)   $ 269,865     $ 123,606     $ 89,811     $ 68,512     $ 23,348    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Tax-Exempt Reserves Institutional Class Shares commenced operations on June 18, 2002.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

209


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia Tax-Exempt Reserves (continued)

Retail A Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0137       0.0101    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0137 )     (0.0101 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)     1.38 %(d)     1.01 %(d)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.29 %     0.29 %  
Net investment income (e)(f)     3.28 %     2.81 %  
Waiver/reimbursement (e)     0.07 %     0.07 %  
Net assets end of period (000's)   $ 18,503     $ 19,200    

 

G-Trust Shares

Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0141       0.0104    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0141 )     (0.0104 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)     1.42 %(d)     1.04 %(d)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.20 %     0.20 %  
Net investment income (e)(f)     3.36 %     2.9 %  
Waiver/reimbursement (e)     0.07 %     0.07 %  
Net assets end of period (000's)   $ 721,252     $ 802,458    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia Tax-Exempt Reserves Retail A and G-Trust Shares commenced operations on November 21, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

210



Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves

    Period
Ended
August 31,		   Year Ended March 31,  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0139       0.0250       0.0123       0.0083       0.0115       0.0199    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0139 )     (0.0250 )     (0.0123 )     (0.0083 )     (0.0115 )     (0.0199 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.40 %(c)     2.53 %     1.24 %     0.84 %     1.17 %     2.01 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.20 %(d)(e)     0.20 %(e)     0.20 %     0.20 %     0.20 %     0.20 %  
Net investment income     3.32 %(d)(e)     2.59 %(e)     1.21 %     0.83 %     1.15 %     1.38 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 509,181     $ 431,530     $ 105,823     $ 169,317     $ 172,261     $ 102,040    

 

Trust Class Shares

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     0.0135       0.0240       0.0113       0.0073       0.0105       0.0189    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0135 )     (0.0240 )     (0.0113 )     (0.0073 )     (0.0105 )     (0.0189 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.36 %(c)     2.42 %     1.14 %     0.74 %     1.07 %     1.91 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.30 %(d)(e)     0.30 %(e)     0.30 %     0.30 %     0.30 %     0.30 %  
Net investment income     3.22 %(d)(e)     2.41 %(e)     1.15 %     0.73 %     1.05 %     1.27 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 517,340     $ 470,430     $ 339,137     $ 294,225     $ 435,253     $ 360,892    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

211


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Liquidity Class Shares   2006 (a)   2006   2005   2004   2003   2002 (b)  
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     0.0133       0.0235       0.0108       0.0068       0.0101       0.0095    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0133 )     (0.0235 )     (0.0108 )     (0.0068 )     (0.0101 )     (0.0095 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.34 %(d)     2.37 %     1.09 %     0.69 %     1.01 %     0.95 %(d)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.35 %(e)(f)     0.35 %(f)     0.35 %     0.35 %     0.35 %     0.35 %(e)  
Net investment income     3.17 %(e)(f)     2.39 %(f)     1.37 %     0.68 %     1.00 %     1.23 %(e)  
Waiver/reimbursement     0.16 %(e)     0.16 %     0.18 %     0.72 %     0.77 %     0.78 %(e)  
Net assets end of period (000's)   $ 27,557     $ 35,797     $ 16,585     $ 1,095     $ 2,998     $ 1,150    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia California Tax-Exempt Reserves Liquidity Class Shares commenced operations on August 10, 2001.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

212


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Adviser Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0129       0.0225       0.0098       0.0058       0.0091       0.0174    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0129 )     (0.0225 )     (0.0098 )     (0.0058 )     (0.0091 )     (0.0174 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.30 %(c)     2.27 %     0.98 %     0.59 %     0.91 %     1.75 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.45 %(d)(e)     0.45 %(e)     0.45 %     0.45 %     0.45 %     0.45 %  
Net investment income     3.08 %(d)(e)     2.19 %(e)     1.01 %     0.58 %     0.90 %     1.13 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 376,973     $ 260,633     $ 593,136     $ 475,799     $ 502,135     $ 298,268    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

213


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Investor Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0125       0.0215       0.0088       0.0048       0.0081       0.0164    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0125 )     (0.0215 )     (0.0088 )     (0.0048 )     (0.0081 )     (0.0164 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.25 %(c)     2.17 %     0.88 %     0.48 %     0.81 %     1.65 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.55 %(d)(e)     0.55 %(e)     0.55 %     0.55 %     0.55 %     0.55 %  
Net investment income     2.98 %(d)(e)     2.13 %(e)     0.85 %     0.48 %     0.80 %     1.03 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 205,499     $ 225,846     $ 244,229     $ 369,440     $ 360,205     $ 240,724    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

214


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

Market Class Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0114       0.0106    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0114 )     (0.0106 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     1.14 %     1.07 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.65 %     0.65 %  
Net investment income (e)(f)     2.70 %     2.46 %  
Waiver/reimbursement (e)     0.06 %     0.06 %  
Net assets end of period (000's)   $ 10     $ 10    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia California Tax-Exempt Reserves Market Class Shares commenced operations on October 25, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

215


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Daily Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0114       0.0190       0.0063       0.0026       0.0056       0.0139    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0114 )     (0.0190 )     (0.0063 )     (0.0026 )     (0.0056 )     (0.0139 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.15 %(c)     1.91 %     0.63 %     0.26 %     0.56 %     1.40 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.80 %(d)(e)     0.80 %(e)     0.80 %     0.77 %     0.80 %     0.80 %  
Net investment income     2.73 %(d)(e)     1.94 %(e)     0.63 %     0.26 %     0.55 %     0.78 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.10 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 1,394,667     $ 1,357,176     $ 742,981     $ 726,888     $ 792,206     $ 814,077    

 

Class B Shares (f)

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     0.0092       0.0138       0.0029       0.0019       0.0022       0.0037    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0092 )     (0.0138 )     (0.0029 )     (0.0019 )     (0.0022 )     (0.0037 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     0.92 %(c)     1.39 %     0.29 %     0.19 %     0.22 %     0.37 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     1.30 %(d)(e)     1.30 %(e)     1.14 %     0.86 %     0.97 %     1.30 %  
Net investment income     2.18 %(d)(e)     1.40 %(e)     0.31 %     0.17 %     0.40 %     0.28 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.24 %     0.51 %     0.40 %     0.08 %  
Net assets end of period (000's)   $ 7     $ 7     $ 7     $ 7     $ 7     $ — (g)  

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  On August 22, 2005, Investor B Shares were redesignated Class B Shares.

(g)  Amount represents less than $500.

See Accompanying Notes to Financial Statements.

216


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

Class C Shares (a)   Period
Ended
April 29,
2004 (b)		   Year
Ended
March 31,
2004 (c)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0001       0.0011    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0001 )     (0.0011 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (d)(e)     0.01 %     0.11 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (f)     0.96 %     0.84 %  
Net investment income (f)     0.16 %     0.19 %  
Waiver/reimbursement (f)     0.42 %     0.53 %  
Net assets end of period (000's)   $ —     $ 199    

 

(a)  On August 22, 2005, Investor C Shares were redesignated Class C Shares.

(b)  Columbia California Tax-Exempt Reserves Class C Shares were fully redeemed on April 29, 2004.

(c)  Columbia California Tax-Exempt Reserves Class C Shares commenced operations on August 1, 2003.

(d)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(e)  Not annualized.

(f)  Annualized.

See Accompanying Notes to Financial Statements.

217


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia California Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,  
Institutional Class Shares   2006 (a)   2006   2005   2004   2003   2002  
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     0.0138       0.0246       0.0119       0.0079       0.0106       0.0061    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0138 )     (0.0246 )     (0.0119 )     (0.0079 )     (0.0106 )     (0.0061 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (b)     1.39 %(c)     2.49 %     1.20 %     0.80 %     1.08 %     0.63 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.24 %(d)(e)     0.24 %(e)     0.24 %     0.24 %     0.24 %     0.24 %  
Net investment income     3.28 %(d)(e)     2.63 %(e)     1.16 %     0.79 %     1.11 %     1.34 %  
Waiver/reimbursement     0.06 %(d)     0.06 %     0.08 %     0.07 %     0.07 %     0.08 %  
Net assets end of period (000's)   $ 688,499     $ 660,513     $ 83,596     $ 126,531     $ 1,537     $ — (f)  

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(c)  Not annualized.

(d)  Annualized.

(e)  The benefits derived from custody credits had an impact of less than 0.01%.

(f)  Amount represents less than $500.

See Accompanying Notes to Financial Statements.

218


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		  
Capital Class Shares   2006 (a)   2006   2005   2004   2003   2002 (b)  
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     0.0141       0.0251       0.0125       0.0090       0.0122       0.0013    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0141 )     (0.0251 )     (0.0125 )     (0.0090 )     (0.0122 )     (0.0013 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.42 %(d)     2.53 %     1.26 %     0.91 %     1.23 %     0.13 %(d)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.20 %(e)(f)     0.20 %(f)     0.20 %     0.20 %     0.13 %     0.20 %(e)  
Net investment income     3.38 %(e)(f)     2.66 %(f)     1.20 %     0.93 %     1.27 %     1.03 %(e)  
Waiver/reimbursement     0.14 %(e)     0.14 %     0.33 %     0.27 %     0.65 %     4.31 %(e)  
Net assets end of period (000's)   $ 44,563     $ 24,804     $ 2,852     $ 1,862     $ 9,483     $ 20,015    

 

Trust Class Shares

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     0.0137       0.0241       0.0115       0.0080       0.0112       0.0012    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0137 )     (0.0241 )     (0.0115 )     (0.0080 )     (0.0112 )     (0.0012 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (c)     1.38 %(d)     2.43 %     1.16 %     0.81 %     1.13 %     0.12 %(d)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.30 %(e)(f)     0.30 %(f)     0.30 %     0.30 %     0.23 %     0.30 %(e)  
Net investment income     3.27 %(e)(f)     2.46 %(f)     1.23 %     0.83 %     1.17 %     0.93 %(e)  
Waiver/reimbursement     0.14 %(e)     0.14 %     0.33 %     0.27 %     0.65 %     4.31 %(e)  
Net assets end of period (000's)   $ 31,364     $ 27,216     $ 12,627     $ 15,931     $ 17,021     $ 826    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia New York Tax-Exempt Reserves Capital Class and Trust Class Shares commenced operations on February 15, 2002.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

219


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

Liquidity Class Shares   Period
Ended
December 22,
2002 (a)		   Period
Ended
March 31,
2002 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0094       0.0013    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0094 )     (0.0013 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     0.94 %     0.13 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)     0.28 %     0.35 %  
Net investment income (e)     1.12 %     0.88 %  
Waiver/reimbursement (e)     1.35 %     5.01 %  
Net assets end of period (000's)   $ —     $ 1    

 

(a)  Columbia New York Tax-Exempt Reserves Liquidity Class Shares were fully redeemed on December 22, 2002.

(b)  Columbia New York Tax-Exempt Reserves Liquidity Class Shares commenced operations on February 15, 2002.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

220


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

Adviser Class Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		   Period
Ended
August 24,
2003 (c)		   Period
Ended
December 22,
2002 (d)		   Period
Ended
March 31,
2002 (e)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Income from Investment
Operations:		  
Net investment income     0.0131       0.0220       0.0025       0.0070       0.0008    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0131 )     (0.0220 )     (0.0025 )     (0.0070 )     (0.0008 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (f)(g)     1.31 %     2.22 %     0.25 %     0.70 %     0.08 %  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses (h)     0.45 %(i)     0.45 %(i)     0.45 %     0.38 %     0.45 %  
Net investment income (h)     3.11 %(i)     2.44 %(i)     0.68 %     1.02 %     0.78 %  
Waiver/reimbursement (h)     0.14 %     0.14 %     0.78 %     0.65 %     4.31 %  
Net assets end of period (000's)   $ 4,695     $ 3,262     $ —     $ —     $ 1    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia New York Tax-Exempt Reserves Adviser Class Shares re-commenced operations on April 14, 2005.

(c)  Columbia New York Tax-Exempt Reserves Adviser Class Shares re-commenced operations on April 14, 2003 and were fully redeemed on August 24, 2003.

(d)  Columbia New York Tax-Exempt Reserves Adviser Class Shares fully redeemed on December 22, 2002.

(e)  Columbia New York Tax-Exempt Reserves Adviser Class Shares commenced operations on February 15, 2002.

(f)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(g)  Not annualized.

(h)  Annualized.

(i)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

221


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

Investor Class Shares   Period
Ended
December 22,
2002 (a)		   Period
Ended
March 31,
2002 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0069       0.0008    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0069 )     (0.0008 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     0.69 %     0.08 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)     0.48 %     0.55 %  
Net investment income (e)     0.92 %     0.68 %  
Waiver/reimbursement (e)     0.65 %     4.31 %  
Net assets end of period (000's)   $ —     $ 1    

 

(a)  Columbia New York Tax-Exempt Reserves Investor Class Shares were fully redeemed on December 22, 2002.

(b)  Columbia New York Tax-Exempt Reserves Investor Class Shares commenced operations on February 15, 2002.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

See Accompanying Notes to Financial Statements.

222


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
December 22,		   Period
Ended
March 31,		  
Market Class Shares   2006 (a)   2006   2005   2004 (b)   2002 (c)   2002 (d)  
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     0.0122       0.0206       0.0080       0.0025       0.0068       0.0008    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0122 )     (0.0206 )     (0.0080 )     (0.0025 )     (0.0068 )     (0.0008 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (e)     1.23 %(f)     2.07 %     0.80 %     0.25 %(f)     0.68 %(f)     0.08 %(f)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.65 %(g)(h)     0.65 %(h)     0.65 %     0.65 %(g)     0.58 %(g)     0.65 %(g)  
Net investment income     2.92 %(g)(h)     2.07 %(h)     0.82 %     0.48 %(g)     0.82 %(g)     0.58 %(g)  
Waiver/reimbursement     0.14 %(g)     0.14 %     0.33 %     0.13 %(g)     0.65 %(g)     4.31 %(g)  
Net assets end of period (000's)   $ 37,820     $ 29,726     $ 11,469     $ 12,970     $ —     $ 1    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia New York Tax-Exempt Reserves Market Class Shares re-commenced operations on August 25, 2003.

(c)  Columbia New York Tax-Exempt Reserves Market Class Shares were fully redeemed on December 22, 2002.

(d)  Columbia New York Tax-Exempt Reserves Market Class Shares commenced operations on February 15, 2002.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  Annualized.

(h)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

223


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

Daily Class Shares   Period
Ended
December 22,
2002 (a)		   Period
Ended
March 31,
2002 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0043       0.0004    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0043 )     (0.0004 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     0.43 %     0.04    
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)     0.73 %     0.80 %  
Net investment income (e)     0.67 %     0.43 %  
Waiver/reimbursement (e)     0.65 %     4.31 %  
Net assets end of period (000's)   $ —     $ 1    

 

Service Class Shares

Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0018       0.0000 (f)  
Less Distributions Declared to Shareholders:  
From net investment income     (0.0018 )     (0.0000 )(f)  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     0.18 %     0.00 %(f)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)     1.13 %     1.20 %  
Net investment income (e)     0.27 %     0.03 %  
Waiver/reimbursement (e)     0.65 %     4.31 %  
Net assets end of period (000's)   $ —     $ 1    

 

(a)  Columbia New York Tax-Exempt Reserves Daily Class and Service Class Shares were fully redeemed on December 22, 2002.

(b)  Columbia New York Tax-Exempt Reserves Daily Class and Service Class Shares commenced operations on February 15, 2002.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  Amount represents less than $0.0001 or 0.01%, as applicable.

See Accompanying Notes to Financial Statements.

224


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

Class B Shares (a)   Period
Ended
December 22,
2002 (b)		   Period
Ended
March 31,
2002 (c)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0018       0.0000 (d)  
Less Distributions Declared to Shareholders:  
From net investment income     (0.0018 )     (0.0000 )(d)  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (e)(f)     0.18 %     0.00 %(d)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (g)     1.23 %     1.30 %  
Net investment income (g)     0.17 %     (0.07 )%  
Waiver/reimbursement (g)     0.65 %     4.31 %  
Net assets end of period (000's)   $ —     $ 1    

 

Class C Shares (a)

Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0018       0.0000 (d)  
Less Distributions Declared to Shareholders:  
From net investment income     (0.0018 )     (0.0000 )(d)  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (e)(f)     0.18 %     0.00 %(d)  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (g)     1.23 %     1.30 %  
Net investment income (g)     0.17 %     (0.07 )%  
Waiver/reimbursement (g)     0.65 %     4.31 %  
Net assets end of period (000's)   $ —     $ 1    

 

(a)  On August 22, 2005, Investor B and C Shares were redesignated Class B and C Shares, respectively.

(b)  Columbia New York Tax-Exempt Reserves Class B and Class C Shares were fully redeemed on December 22, 2002.

(c)  Columbia New York Tax-Exempt Reserves Class B and Class C Shares commenced operations on February 15, 2002.

(d)  Amount represents less than $0.0001 or 0.01%, as applicable.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  Annualized.

See Accompanying Notes to Financial Statements.

225


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

    Period
Ended
August 31,		   Year Ended March 31,   Period
Ended
March 31,		   Period
Ended
December 22,		   Period
Ended
March 31,		  
Institutional Class Shares   2006 (a)   2006   2005   2004 (b)   2002 (c)   2002 (d)  
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     0.0140       0.0247       0.0121       0.0050       0.0091       0.0013    
Less Distributions Declared to
Shareholders:		  
From net investment income     (0.0140 )     (0.0247 )     (0.0121 )     (0.0050 )     (0.0091 )     (0.0013 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00     $ 1.00    
Total return (e)     1.40 %(f)     2.49 %     1.22 %     0.50 %(f)     0.91 %(f)     1.16 %(f)  
Ratios to Average Net Assets/
Supplemental Data:		  
Expenses     0.24 %(g)(h)     0.24 %(h)     0.24 %     0.24 %(g)     0.17 %(g)     0.24 %(g)  
Net investment income     3.32 %(g)(h)     2.53 %(h)     1.30 %     0.89 %(g)     1.23 %(g)     0.99 %(g)  
Waiver/reimbursement     0.14 %(g)     0.14 %     0.33 %     0.29 %(g)     0.65 %(g)     4.31 %(g)  
Net assets end of period (000's)   $ 154,605     $ 208,614     $ 74,101     $ 48,222     $ —     $ 1    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia New York Tax-Exempt Reserves Institutional Class Shares re-commenced operations on August 25, 2003.

(c)  Columbia New York Tax-Exempt Reserves Institutional Class Shares were fully redeemed on December 22, 2002.

(d)  Columbia New York Tax-Exempt Reserves Institutional Class Shares commenced operations on February 15, 2002.

(e)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(f)  Not annualized.

(g)  Annualized.

(h)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

226


Financial Highlights – Columbia Money Market Funds (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Columbia New York Tax-Exempt Reserves (continued)

Retail A Shares   Period
Ended
August 31,
2006 (a)		   Period
Ended
March 31,
2006 (b)		  
Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0137       0.0100    
Less Distributions Declared to Shareholders:  
From net investment income     (0.0137 )     (0.0100 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     1.38 %     1.01 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.30 %     0.30 %  
Net investment income (e)(f)     3.28 %     2.77 %  
Waiver/reimbursement (e)     0.14 %     0.14 %  
Net assets end of period (000's)   $ 80     $ 74    

 

G-Trust Shares

Net Asset Value Beginning of Period   $ 1.00     $ 1.00    
Income from Investment Operations:  
Net investment income     0.0141       0.0104    
Less Distributions Declared to Shareholders:  
Dividends from net investment income     (0.0141 )     (0.0104 )  
Net Asset Value, End of Period   $ 1.00     $ 1.00    
Total return (c)(d)     1.42 %     1.04 %  
Ratios to Average Net Assets/Supplemental Data:  
Expenses (e)(f)     0.20 %     0.20 %  
Net investment income (e)(f)     3.38 %     2.89 %  
Waiver/reimbursement (e)     0.14 %     0.14 %  
Net assets end of period (000's)   $ 17,548     $ 17,664    

 

(a)  The Fund changed its fiscal year end from March 31 to August 31. The period is from April 1, 2006 through August 31, 2006.

(b)  Columbia New York Tax-Exempt Reserves Retail A and G-Trust Shares commenced operations on November 21, 2005.

(c)  Total return represents aggregate total return for the period indicated, assumes reinvestment of all distributions, and does not reflect the deduction of any applicable sales charges.

(d)  Not annualized.

(e)  Annualized.

(f)  The benefits derived from custody credits had an impact of less than 0.01%

See Accompanying Notes to Financial Statements.

227



Notes to Financial Statements – Columbia Money Market Funds (August 31, 2006)

Note 1. Organization

Columbia Funds Series Trust (the "Trust"), is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. Information presented in these financial statements pertains to the following portfolios of the Trust (each a "Fund" and collectively, the "Funds"):

Columbia Cash Reserves

Columbia Money Market Reserves

Columbia Treasury Reserves

Columbia Government Reserves

Columbia Municipal Reserves

Columbia Tax-Exempt Reserves

Columbia California Tax-Exempt Reserves

Columbia New York Tax-Exempt Reserves

Effective August 16, 2006, the Board of Trustees of the Funds approved a proposal to change the year-end of the Funds from March 31 to August 31. Accordingly, the accompanying financial statements pertain to the period from April 1, 2006 to August 31, 2006.

Investment Goals

Columbia Cash Reserves, Columbia Money Market Reserves, Columbia Treasury Reserves and Columbia Government Reserves seek to preserve principal value and maintain a high degree of liquidity while providing current income. Columbia Municipal Reserves and Columbia Tax-Exempt Reserves seek to preserve principal value and maintain a high degree of liquidity while providing current income exempt from federal income taxes. Columbia California Tax-Exempt Reserves and Columbia New York Tax-Exempt Reserves seek to preserve principal value and maintain a high degree of liquidity while providing current income exempt from the respective state individual income tax and federal income taxes.

Fund Shares

The Funds are authorized to issue an unlimited number of shares without par value. The Funds each offer the following classes of shares: Capital Class, Trust Class, Adviser Class and Institutional Class shares. Columbia Cash Reserves also offers Liquidity Class, Investor Class, Market Class, Daily Class, Class A, Class B, Class C, Class Z and Marsico shares. Columbia Money Market Reserves also offers Liquidity Class, Investor Class, Market Class, Daily Class, Class B, Class C, Retail A and G-Trust shares. Columbia Treasury Reserves also offers Liquidity Class, Investor Class, Market Class, Daily Class, Class A and Class B shares. Columbia Government Reserves also offers Liquidity Class, Investor Class, Market Class, Daily Class, Class A, Class B, Retail A and G-Trust shares. Columbia Municipal Reserves also offers Liquidity Class, Investor Class, Market Class, Daily Class, Class B and Class Z shares. Columbia Tax-Exempt Reserves also offers Liquidity Class, Investor Class, Daily Class, Class A, Retail A and G-Trust shares. Columbia California Tax-Exempt Reserves also offers Liquidity Class, Investor Class, Market Class, Daily Class and Class B shares. Columbia New York Tax-Exempt Reserves also offers Market Class, Retail A and G-Trust shares. Each class has its own sales charge and expense structure. Shareholders of a Fund have equal voting rights on matters affecting all shareholders of the Fund. In addition, each class of shares of a Fund has exclusive voting rights on matters that relate solely to that class and separate voting rights on matters in which the interests of one class differ from the interests of any other class. Retail A and G-Trust shares are closed to new investors.

Note 2. Significant Accounting Policies

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Certain ratios have been reclassified on the Financial Highlights to conform to the current period financial statement presentation. The changes have no effect on the ratios. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.

Security Valuation

Securities in the Funds are valued utilizing the amortized cost valuation method permitted in accordance with Rule 2a-7 under the 1940 Act provided certain conditions are met. This method involves valuing a portfolio security initially at its cost and thereafter assuming a constant accretion or amortization to maturity of any discount or premium, respectively. Restricted securities and certain other assets may be valued in accordance with procedures adopted by the Board of Trustees.

228


Columbia Money Market Funds (August 31, 2006)

Security Transactions

Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

Repurchase Agreements

Each Fund may engage in repurchase agreement transactions with institutions that the Funds' investment advisor has determined are creditworthy. Each Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Columbia Management Advisors, LLC is responsible for determining that collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights.

Reverse Repurchase Agreements

Each Fund may enter into reverse repurchase agreement transactions with institutions that the Funds' investment advisor has determined are creditworthy. Under the terms of a typical reverse repurchase agreement, a Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it is required to have segregated assets with a current value at least equal to the Fund's obligations arising under the reverse repurchase agreement. Reverse repurchase agreements involve the risk that the market value of the securities purchased with the proceeds from the sale of securities received by the Fund may decline below the price of the securities that the Fund is obligated to repurchase. In the event that the buyer of the securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund's use of proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the securities.

Income Recognition

Interest income is recorded on an accrual basis. Premium and discount are amortized and accreted, respectively, on all debt securities.

Expenses

General expenses of the Trust are allocated to the Funds based upon their relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses are allocated to separate classes of shares based upon their relative net asset value on the date the expenses are incurred. Expenses directly attributable to a Fund or class of shares are charged directly to such Fund or class.

Determination of Net Asset Value

All income, expenses (other than class-specific expenses, as shown on the Statements of Operations) and realized and unrealized gains (losses) are allocated to each class of a Fund on a daily basis for purposes of determining the net asset value of each class. Income and expenses are allocated to each class based on the settled shares method, while realized and unrealized gains (losses) are allocated based on the relative net assets of each class.

Distributions to Shareholders

Distributions from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually after the fiscal year in which the capital gains were earned or more frequently to seek to maintain a net asset value of $1.00 per share, unless offset by any available capital loss carryforward. Distributions to shareholders are recorded on the ex-dividend date. Income distributions and capital gain distributions on a Fund level are determined in accordance with federal income tax regulations which may differ from GAAP.

Federal Income Tax Status

Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its tax-exempt or taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Indemnification

In the normal course of business, each Fund enters into contracts that contain a variety of representations and

229


Columbia Money Market Funds (August 31, 2006)

warranties and which provide general indemnities. A Fund's maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Trust's organizational documents, the Trustees and Officers of the Trust are indemnified against certain liabilities that may arise out of their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be minimal.

Note 3. Federal Tax Information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to a Fund's capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the period ended August 31, 2006, permanent book and tax basis differences resulting primarily from differing treatments for distribution reclassifications, capital loss carryforwards expired and redemption based payments treated as dividends paid deduction were identified and reclassified among the components of the Funds' net assets as follows:

    Undistributed
Net Investment
Income		   Accumulated
Net Realized
Gain/Loss		   Paid-In Capital  
Columbia Cash Reserves   $ —     $ 41,322     $ (41,322 )  
Columbia Tax-Exempt Reserves     2,476       (2,484 )     8    
Columbia New York Tax-Exempt Reserves     526       (526 )     —    

 

Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the period ended August 31, 2006 and the years ended March 31, 2006 and March 31, 2005 was as follows:

    Period Ended August 31, 2006  
Fund   Tax-Exempt
Income		   Ordinary
Income*		   Long-Term
Capital Gains		  
Columbia Cash Reserves   $ —     $ 1,236,651,118     $ —    
Columbia Money Market Reserves     —       336,187,772       —    
Columbia Treasury Reserves     —       263,062,285       —    
Columbia Government Reserves     —       102,438,643       —    
Columbia Municipal Reserves     108,383,474       930,135       —    
Columbia Tax-Exempt Reserves     70,380,139       376,743       2,476    
Columbia California Tax-Exempt Reserves     44,144,895       305,337       —    
Columbia New York Tax-Exempt Reserves     3,832,393       20,487       —    

 

230


Columbia Money Market Funds (August 31, 2006)

    Year Ended March 31, 2006  
Fund   Tax-Exempt
Income		   Ordinary
Income *		   Long-Term
Capital Gains		  
Columbia Cash Reserves   $ —     $ 1,851,943,060     $ —    
Columbia Money Market Reserves     —       479,712,680       —    
Columbia Treasury Reserves     —       385,544,555       —    
Columbia Government Reserves     —       154,896,184       —    
Columbia Municipal Reserves     156,478,021       442,983       —    
Columbia Tax-Exempt Reserves     91,873,906       398,273       1,632    
Columbia California Tax-Exempt Reserves     63,632,616       282,042       —    
Columbia New York Tax-Exempt Reserves     4,482,787       7,132       —    
    Year Ended March 31, 2005  
Fund   Tax-Exempt
Income		   Ordinary
Income *		   Long-Term
Capital Gains		  
Columbia Cash Reserves   $ —     $ 732,254,437     $ —    
Columbia Money Market Reserves     —       151,326,305       —    
Columbia Treasury Reserves     —       113,331,412       —    
Columbia Government Reserves     —       52,549,984       —    
Columbia Municipal Reserves     63,476,174       179,242       9,413    
Columbia Tax-Exempt Reserves     34,857,554       45,636       2,275    
Columbia California Tax-Exempt Reserves     18,392,586       38,483       12,616    
Columbia New York Tax-Exempt Reserves     1,069,069       14,131       —    

 

*  For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions.

As of August 31, 2006, the components of distributable earnings on a tax basis were as follows:

    Undistributed
Tax-Exempt
Income		   Undistributed
Ordinary
Income		   Undistributed
Long-term
Capital Gains		  
Net Unrealized
Depreciation*		  
Columbia Cash Reserves   $ —     $ 93,026,129     $ —     $ —    
Columbia Money Market Reserves     —       32,454,411       —       (14,473 )  
Columbia Treasury Reserves     —       37,036,238       —       —    
Columbia Government Reserves     —       8,135,749       —       —    
Columbia Municipal Reserves     4,918,573       —       34,141       (31,324 )  
Columbia Tax-Exempt Reserves     10,826,452       —       —       —    
Columbia California Tax-Exempt Reserves     1,987,300       —       —       —    
Columbia New York Tax-Exempt Reserves     240,484       —       —       —    

 

*  The difference between book basis and tax basis unrealized depreciation is primarily due to wash sales.

231


Columbia Money Market Funds (August 31, 2006)

Unrealized appreciation and depreciation at August 31, 2006 based on the cost of investments for federal income tax purposes was:

    Unrealized
Appreciation		   Unrealized
Depreciation		   Net Unrealized
Depreciation		  
Columbia Money Market Reserves   $ —     $ (14,473 )   $ (14,473 )  
Columbia Municipal Reserves     —       (31,324 )     (31,324 )  

 

The following capital loss carryforwards, determined as of August 31, 2006, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

Fund   Expiring in
2007		   Expiring in
2008		   Expiring in
2009		   Expiring in
2010		   Expiring in
2011		   Expiring in
2012		   Expiring in
2013		   Expiring in
2014		  
Columbia Cash
Reserves		   $ 355     $ —     $ —     $ 67,233     $ 1,291,598     $ 1,218,785     $ 2,539,550     $ 10,918,073    
Columbia Money
Market Reserves		     —       —       —       —       —       739,161       508,123       1,298,598    
Columbia Treasury
Reserves		     —       —       16,924       20,714       7,012       422,339       711,196       514,185    
Columbia Government
Reserves		     —       —       —       —       —       132,811       204,834       748,723    
Columbia California
Tax-Exempt Reserves		     —       —       —       —       —       —       7,166       40,590    
Columbia New York
Tax-Exempt Reserves		     —       —       —       —       —       —       —       5,216    

 

During the year ended August 31, 2006, the following
Funds utilized capital losses as follows:

Fund   Capital
Losses
Expired		   Capital
Losses
Utilized		  
Columbia Cash Reserves   $ 41,322     $ —    
Columbia Municipal Reserves     —       62,126    
Columbia Tax-Exempt Reserves     —       57,003    

 

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2006 no Funds elected to defer losses occurring between November 1, 2005 and August 31, 2006 under these rules.

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (the "Interpretation"). This Interpretation is effective for fiscal years beginning after December 15, 2006 and is to be applied to tax positions upon initial adoption. This Interpretation prescribes a minimum recognition threshold and measurement method for the financial statement recognition of tax positions taken or expected to be taken in a tax return and also requires certain expanded disclosures. Management has recently begun to evaluate the application of this Interpretation to the Funds and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on each Fund's financial statements.

Note 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia Management Advisors, LLC ("Columbia"), an indirect, wholly-owned subsidiary of Bank of America Corporation ("BOA"), is the investment advisor to the Funds. Columbia receives an investment advisory fee, calculated

232


Columbia Money Market Funds (August 31, 2006)

daily and payable monthly at the annual rate of 0.15% of each Fund's average daily net assets.

Administration Fee

Columbia provides administrative and other services to the Funds. Under the administration agreement, Columbia is entitled to receive an administration fee, calculated daily and payable monthly at the annual rate of 0.10% of each Fund's average daily net assets less the fees payable by the Funds under the pricing and bookkeeping agreement described below.

Pricing and Bookkeeping Fees

Columbia is responsible for providing pricing and bookkeeping services to the Funds under a pricing and bookkeeping agreement. Under a separate agreement (the "Outsourcing Agreement"), Columbia has delegated those functions to State Street Corporation ("State Street"). As a result, the total fees payable under the pricing and bookkeeping agreement are paid to State Street.

Under its pricing and bookkeeping agreement with the Funds, Columbia receives from each Fund an annual fee of $38,000 paid monthly. In addition, each of the Funds pays a monthly fee based on the level of average daily net assets for the month; provided that during any 12-month period, the aggregate fee (exclusive of out-of-pocket expenses and charges) for a Fund shall not exceed $140,000. The Funds also reimburse Columbia and State Street for out-of-pocket expenses and charges, including fees payable to third parties for pricing each Fund's portfolio securities and direct internal costs incurred by Columbia in connection with providing fund accounting oversight and monitoring and certain other services.

Transfer Agent Fee

Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly-owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. The Transfer Agent is entitled to receive a fee for its services, paid monthly, at the annual rate of $17.00 per open account plus sub-transfer agent fees (exclusive of BFDS fees) calculated based on assets held in omnibus accounts and intended to recover the cost of payments to third parties for services to those accounts. The annual rate was $15.23 prior to April 1, 2006. The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

For the period ended August 31, 2006, and the year ended March 31, 2006, the annualized effective transfer agent fee rates for the Funds, inclusive of out-of-pocket expenses, as a percentage of each Fund's average daily net assets, were as follows:

Fund   August 31, 2006
Annualized
Effective
Fee Rate		   March 31, 2006
Effective
Fee Rate		  
Columbia Cash
Reserves		   0.002%   0.003%  
Columbia Money
Market Reserves		   0.002%   0.003%  
Columbia Treasury
Reserves		   0.001%   0.003%  
Columbia Government
Reserves		   0.003%   0.003%  
Columbia Municipal
Reserves		   0.001%   0.003%  
Columbia Tax-Exempt
Reserves		   0.001%   0.000%  
Columbia California
Tax-Exempt Reserves		   0.001%   0.002%  
Columbia New York
Tax-Exempt Reserves		   0.001%   0.003%  

 

Underwriting Discounts, Service and Distribution Fees

Columbia Management Distributors, Inc. (the "Distributor"), a subsidiary of Columbia and an indirect, wholly-owned subsidiary of BOA, serves as distributor of the Funds' shares.

The Trust has adopted distribution plans ("Distribution Plans") for the Liquidity Class, Market Class, Daily Class, Investor Class, Class A, Class B, Class C and Service Class shares of the Funds. The Distribution Plans, adopted pursuant to Rule 12b-1 under the 1940 Act, permit the Funds

233


Columbia Money Market Funds (August 31, 2006)

to compensate or reimburse the Distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes' shares.

The Trust also has adopted shareholder servicing plans ("Servicing Plans") for the Liquidity Class, Adviser Class, Market Class, Daily Class, Investor Class, Class A, Class B, Class C, Service Class, Marsico and Retail A shares of the Funds. The Servicing Plans permit the Funds to compensate or reimburse servicing agents for the shareholder services they have provided.

The Trust also has adopted shareholder administration plans ("Administration Plans") for the Class A, Class B, Class C, Trust Class, Marsico and Institutional Class shares of the Funds. Under the Administration Plans, the Funds may pay servicing agents that have entered into a shareholder administration agreement with the Trust for certain shareholder support services that are provided to holders of the classes' shares. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of BOA and the Distributor.

The annual rates in effect and plan limits, as a percentage of average daily net assets, are as follows:

Distribution Plans:   Current Rate
(after fee
waivers)		   Plan Limit  
Liquidity Class shares   0.15%*   0.25%**  
Investor Class and
Class A shares		   0.10%   0.10%  
Market Class shares   0.20%   0.20%  
Daily Class shares   0.35%   0.35%  
Service Class shares   0.55%   0.55%  
Class B and Class C shares   0.75%   0.75%  
Servicing Plans:  
Liquidity Class shares   0.15%*   0.25%**  
Adviser Class, Investor Class,
Market Class, Daily Class,
Service Class, Class A,
Class B, Class C and
Marsico shares		   0.25%   0.25%  

 

Distribution Plans:   Current Rate
(after fee
waivers)		   Plan Limit  
Retail A shares
(Money Market Reserves)		   0.07%   0.07%  
Retail A shares (Columbia
Government Reserves and
Columbia Tax-Exempt
Reserves)		   0.09%   0.09%  
Retail A shares
(Columbia New York
Tax-Exempt Reserves)		   0.10%   0.10%  
Administration Plans:  
Trust Class, Class A,
Class B, Class C and
Marsico shares		   0.10%   0.10%  
Institutional Class shares   0.04%   0.04%  

 

*  The Distributor has contractually agreed to waive Distribution Plan fees and/or Shareholder Servicing Plan fees through December 31, 2007 as a percentage of each Fund's Liquidity Class shares average daily net assets at an annual rate of 0.10%, not to exceed an annual combined waiver of 0.10% so that combined fees will not exceed 0.15%.

**  To the extent that any Liquidity Class shares of the Funds make payments pursuant to the Distribution Plan and/or the Shareholder Servicing Plan, the total of such payments may not exceed, on an annual basis, 0.25% of the average daily net assets of any such Fund's Liquidity Class shares.

Expense Limits and Fee Reimbursements

Columbia has contractually agreed to waive fees and/or reimburse expenses through December 31, 2007 to the extent that total expenses (excluding interest expense and shareholder servicing, administration and distribution fees) exceed the annual rate of 0.20% of each Fund's average daily net assets. There is no guarantee that these expense limitations will continue after December 31, 2007.

Columbia is entitled to recover from the Funds any fees waived or expenses reimbursed by Columbia during the three year period following the date of such waiver or reimbursement, to the extent that such recovery would not cause the affected fund to exceed the expense limitations in effect at the time of recovery.

Under the Distribution Plan for the Liquidity Class shares, the Trust is currently not reimbursing the Distributor for distribution expenses for Liquidity Class shares. Unreimbursed expenses incurred by the Distributor in a given year may not be recovered by the Distributor in subsequent years.

234


Columbia Money Market Funds (August 31, 2006)

At August 31, 2006, the amounts potentially recoverable by Columbia pursuant to this arrangement are as follows:

    8/31/09   8/31/08   8/31/07   Total
potential
recovery		   Amount
recovered
during the
period ended
8/31/06		  
Columbia Cash Reserves   $ (16,504,916 )   $ (35,824,540 )   $ (34,904,875 )   $ (87,234,331 )   $ —    
Columbia Money Market Reserves     (4,518,353 )     (8,370,498 )     (6,835,698 )     (19,724,549 )     —    
Columbia Treasury Reserves     (3,256,173 )     (7,192,269 )     (6,279,401 )     (16,727,843 )     —    
Columbia Government Reserves     (1,568,520 )     (3,091,325 )     (2,818,040 )     (7,477,885 )     —    
Columbia Municipal Reserves     (1,990,296 )     (4,105,444 )     (4,109,837 )     (10,205,577 )     —    
Columbia Tax-Exempt Reserves     (1,439,708 )     (2,609,632 )     (2,442,542 )     (6,491,882 )     —    
Columbia California Tax-Exempt
Reserves		     (933,181 )     (1,863,131 )     (1,624,368 )     (4,420,680 )     —    
Columbia New York Tax-Exempt
Reserves		     (169,692 )     (263,365 )     (294,863 )     (727,920 )     —    

 

Fees Paid to Officers and Trustees

All officers of the Funds, with the exception of the Funds' Chief Compliance Officer, are employees of Columbia or its affiliates and receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The Funds, along with other affiliated funds, pay their pro-rata share of the expenses associated with the Chief Compliance Officer. Each Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.

The Trust's eligible Trustees may participate in a non-qualified deferred compensation plan which may be terminated at any time. All benefits provided under this plan are unfunded and any payments to plan participants are paid solely out of the Funds' assets. Income earned on the plan participant's deferral account is based on the rate of return of the eligible mutual funds selected by the participants or, if no funds are selected, on the rate of return of Columbia Treasury Reserves, another portfolio of the Trust. The expense for the deferred compensation plan is included in "Trustees' fees" in the Statements of Operations. The liability for the deferred compensation plan is included in "Deferred Trustees' fees" in the Statements of Assets and Liabilities.

Custody Credits

Each Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statements of Operations. The Funds could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if they had not entered into such an agreement.

Note 5. Shares of Beneficial Interest

As of August 31, 2006, the Funds had shareholders whose shares were beneficially owned by participant accounts over which BOA and/or its affiliates had either sole or joint investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The percentage of shares of beneficial interest outstanding held therein are as follows:

Fund   % of Shares
Outstanding
Held		  
Columbia Cash Reserves   57.7%  
Columbia Money
Market Reserves		   85.4  
Columbia Treasury
Reserves		   76.9  
Columbia Government
Reserves		   78.1  
Columbia Municipal
Reserves		   47.3  
Columbia Tax-Exempt
Reserves		   80.0  
Columbia New York
Tax-Exempt Reserves		   35.8  
Columbia California
Tax-Exempt Reserves		   17.9  

 

235


Columbia Money Market Funds (August 31, 2006)

As of August 31, 2006, several of the Funds also had shareholders that held greater than 5% of the shares outstanding over which BOA and/or its affiliates did not have investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The percentage of shares of beneficial interest outstanding held therein are as follows:

Fund   % of Shares
Outstanding
Held		  
Columbia Cash Reserves     31.3 %  
Columbia Money Market
Reserves		     6.6    
Columbia Treasury
Reserves		     8.0    
Columbia Government          
Reserves     14.7    
Columbia Municipal
Reserves		     37.7    
Columbia California Tax-Exempt          
Reserves     69.5    
Columbia New York Tax-Exempt
Reserves		     53.6    

 

Note 6. Disclosure of Significant Risks and Contingencies

Legal Proceedings

On February 9, 2005, Banc of America Capital Management, LLC ("BACAP" now known as Columbia Management Advisors LLC) and BACAP Distributors, LLC ("BACAP Distributors" now known as Columbia Management Distributors, Inc.) entered into an Assurance of Discontinuance with the New York Attorney General (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the U.S. Securities and Exchange Commission (the "SEC") (the "SEC Order"). A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005 and a copy of the SEC Order is available on the SEC's website.

Under the terms of the SEC Order, BACAP, BACAP Distributors, and their affiliate, Banc of America Securities, LLC ("BAS") agreed, among other things, (1) to pay $250 million in disgorgement and $125 million in civil money penalties; (2) to cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; (3) to undertake various remedial measures to ensure compliance with the federal securities laws related to certain mutual fund trading practices; and (4) to retain an independent consultant to review their applicable supervisory, compliance, control and other policies and procedures. The NYAG Settlement also requires, among other things, BACAP and BACAP Distributors, along with Columbia Management Advisors, Inc. and Columbia Funds Distributors, Inc., the investment advisor to and distributor of the Columbia Funds, respectively, to reduce Columbia Funds, Nations Funds and other mutual funds management fees collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Consistent with the terms of the settlements, the Nations Funds Boards have an independent Chairman, are comprised of at least 75% independent trustees and have engaged a senior officer with a wide range of compliance and oversight responsibilities.

Pursuant to the procedures set forth in the SEC Order, $375 million will be distributed in accordance with a distribution plan developed by an independent distribution consultant and approved by the SEC. The independent distribution consultant has been in consultation with the staff of the SEC, and has submitted a proposed plan of distribution. The SEC has not yet approved a final plan of distribution.

As a result of these matters or any adverse publicity or other developments resulting from them, including lawsuits brought by shareholders of the affected Nations Funds, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the Nations Funds.

Civil Litigation

In connection with the events that resulted in the NYAG Settlement and SEC Order, various parties filed suits against Bank of America Corporation and certain of its affiliates, including BACAP and BACAP Distributors (collectively "BAC"), Nations Funds Trust and its Board of Trustees. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against several other mutual fund companies based on similar allegations to

236


Columbia Money Market Funds (August 31, 2006)

the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Nations Funds Trust, the Trustees, BAC and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Nations Funds Trust against BAC and others that asserts claims under federal securities laws and state common law. Nations Funds Trust is a nominal defendant in this action.

On February 25, 2005, BAC and other defendants filed motions to dismiss the claims in the pending cases.

On December 15, 2005, BAC and others entered into a Stipulation of Settlement of the direct and derivative claims brought on behalf of the Nations Funds shareholders. Among other contingencies, the settlement is contingent upon a minimum threshold amount being received by the Nations Fund shareholders and/or the Nations Funds mutual funds from the previously established regulatory settlement fund. The settlement is subject to court approval. If the settlement is approved, BAC would pay settlement administration costs and fees to plaintiffs' counsel as approved by the court. The stipulation has not yet been presented to the court for preliminary approval.

Separately, a putative class action (Reinke v. Bank of America, N.A., et al.) was filed against Nations Funds Trust and others on December 16, 2004, in the United States District Court for the Eastern District of Missouri relating to the conversion of common trust funds and the investment of assets held in fiduciary accounts in the Funds. The Court granted Nations Funds Trust's motion to dismiss this action on December 16, 2005. On December 28, 2005, the same plaintiff's attorneys filed another putative class action based on the same facts (Siepel v. Bank of America, N.A., et al.) against Columbia Funds Series Trust (as successor to Nations Funds Trust) and others in the United States District Court for the Eastern District of Missouri. Nations Funds Trust filed a motion to dismiss this complaint on May 19, 2006, but Plaintiffs responded by filing an Amended Complaint that added claims under the federal securities laws. Nations Funds Trust filed a motion to dismiss the Amended Complaint, which is currently pending. On February 22, 2006, another putative class action based on the same facts (Luleff v. Bank of America, N.A. et al.) was filed in the United States District Court for the Southern District of New York against Columbia Funds Series Trust, William Carmichael and others. Columbia Funds Series Trust and William Carmichael filed motions to dismiss this complaint on July 28, 2006, but on September 5, 2006, the plaintiffs filed an Amended Complaint. The Funds, William Carmichael and others filed a motion to dismiss the Amended Complaint on October 6, 2006, which is currently pending.

Separately, a putative class action — Mehta v AIG Sun America Life Assurance Company — involving fair value pricing of mutual funds was filed in Illinois State Court, subsequently removed to federal court and then transferred to the United States District Court for the District of Maryland for coordinated or consolidated handling in the MDL. AIG SunAmerica Life Assurance Company has made demand upon Nations Separate Account Trust (as successor to Nations Annuity Trust) and BACAP (as successor to Banc of America Advisors, Inc.) for indemnification pursuant to the terms of a Fund Participation Agreement. On June 1, 2006, the court granted a motion to dismiss this case because it was preempted by the Securities Litigation Uniform Standards Act. That dismissal has been appealed to the United States Court of Appeals for the Fourth Circuit.

237


Report of Independent Registered Public Accounting Firm

To the Trustees and Shareholders of Columbia Funds Series Trust

In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Cash Reserves, Columbia Money Market Reserves, Columbia Treasury Reserves, Columbia Government Reserves, Columbia Municipal Reserves, Columbia Tax-Exempt Reserves, Columbia California Tax-Exempt Reserves and Columbia New York Tax-Exempt Reserves (constituting part of Columbia Funds Series Trust, hereafter collectively referred to as the "Funds") at August 31, 2006, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a text basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

238


Unaudited Information – Columbia Money Market Funds

Federal Income Tax Information

Each Fund designates the maximum amount allowable as qualified interest income for non-U.S. shareholders, as provided in the American Jobs Creation Act of 2004.

For the fiscal year ended August 31, 2006, Columbia Municipal Reserves designates long-term capital gains of $34,141.

For the fiscal year ended August 31, 2006, Columbia Tax-Exempt Reserves designates long-term capital gains of $2,476.

For the period ended August 31, 2006, the following percentage of distributions made from net investment income of the Columbia Money Market Funds are exempt for Federal income tax purposes. A portion of the income may also be subject to federal alternative minimum tax.

Fund   Federal exempt
Percentage		  
Columbia Municipal Reserves     99.1 %  
Columbia Tax-Exempt Reserves     99.5 %  
Columbia California Tax-Exempt Reserves     99.3 %  
Columbia New York Tax-Exempt Reserves     99.5 %  

 

239



Fund Governance
Trustees

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in the Columbia Funds Complex, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of portfolios overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Disinterested Trustees

Name, address and age, Position
with funds, Year first elected or
appointed to office		   Principal occupation(s) during past five years, Number of portfolios in
Columbia Funds Complex overseen by trustee Other directorships held
 		 
Edward J. Boudreau (Born 1944)  
c/o Columbia Management Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)		   Managing Director, E.J. Boudreau & Associates (consulting), through present.  
William P. Carmichael (Born 1943)  
c/o Columbia Management Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 1999)		   Trustee and Chairman of the Board; retired.  
William A. Hawkins (Born 1942)  
c/o Columbia Management Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)		   President, Retail Banking- IndyMac Bancorp, Inc., from September 1999 to August 2003.  
R. Glenn Hilliard (Born 1943)  
c/o Columbia Management Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)		   Chairman and Chief Executive Officer, Hilliard Group LLC (investing and consulting), from April 2003 through current; Chairman and Chief Executive Officer, ING Americas, from 1999 to April 2003; and Non-Executive Chairman, Conseco, Inc. (insurance), from September 2004 through current.  
Minor M. Shaw (Born 1947)  
c/o Columbia Management Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2003)		   President, Micco Corporation and Mickel Investment Group.  

 

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-426-3750.

240


Fund Governance
Officers

Officers

Name, address and age, Position
with Columbia Funds, Year first
elected or appointed to office		   Principal occupation(s) during past five years
 		 
Christopher L. Wilson (Born 1957)  
One Financial Center
Boston, MA 02111
President (since 2004)		   Head of Mutual Funds since August, 2004 and Managing Director of the Advisor since September, 2005; President and Chief Executive Officer, CDC IXIS Asset Management Services, Inc. (investment management) from September, 1998 to August, 2004.  
James R. Bordewick, Jr. (Born 1959)  
One Financial Center
Boston, MA 02111
Senior Vice President, Secretary and Chief Legal Officer (since 2006)		   Associate General Counsel, Bank of America since April, 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April, 2005.  
J. Kevin Connaughton (Born 1964)  
One Financial Center
Boston, MA 02111
Senior Vice President, Chief Financial Officer and Treasurer (since 2000)		   Managing Director of the Advisor since May, 2004.  
Mary Joan Hoene (Born 1949)  
100 Federal Street
Boston, MA 02110
Senior Vice President and Chief Compliance Officer (since 2004)		   Senior Vice President and Chief Compliance Officer of various funds in the Fund Complex; Partner, Carter, Ledyard & Milburn LLP (law firm) from January, 2001 to August, 2004.  
Michael G. Clarke (Born 1969)  
One Financial Center
Boston, MA 02111
Chief Accounting Officer and Assistant Treasurer (since 2004)		   Director of Fund Administration since January, 2006; Managing Director of Columbia Management Advisors, LLC September, 2004 to December, 2005; Vice President Fund Administration June, 2002 to September, 2004. Vice President Product Strategy and Development from February, 2001 to June, 2002.  
Jeffrey R. Coleman (Born 1969)  
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)		   Director of Fund Administration since January, 2006; Fund Controller from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August, 2000 to September, 2004.  
Joseph F. DiMaria (Born 1968)  
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)		   Director of Fund Administration since January, 2006; Head of Tax/Compliance and Assistant Treasurer from November, 2004 to December, 2005; Director of Trustee Administration (Sarbanes-Oxley) from May, 2003 to October, 2004; Senior Audit Manager, PricewaterhouseCoopers (independent registered public accounting firm) from July, 2000 to April, 2003.  

 

241


Fund Governance (continued)
Officers

Officers (Continued)

Name, address and age, Position
with Columbia Funds, Year first
elected or appointed to office		   Principal occupation(s) during past five years
 		 
Ty S. Edwards (Born 1966)  
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)		   Director of Fund Administration since January, 2006; Vice President of the Advisor from (Month/Year) to (Month), 2002; Assistant Vice president and Director, State Street Corporation (financial services) prior to 2002.  
Barry S. Vallan (Born 1969)  
One Financial Center
Boston, MA 02111
Controller (since 2006)		   Vice President-Fund Treasury of the Advisor since October, 2004; Vice President-Trustee Reporting from April, 2002 to October, 2004; Management Consultant, PricewaterhouseCoopers (independent registered public accounting firm) prior to October, 2002.  

 

242



Columbia Funds – Columbia Money Market Funds

Growth Funds   Columbia Acorn Fund
Columbia Acorn Select
Columbia Acorn USA
Columbia Large Cap Growth Fund
Columbia Marsico 21st Century Fund
Columbia Marsico Focused Equities Fund
Columbia Marsico Growth Fund
Columbia Mid Cap Growth Fund
Columbia Small Cap Growth Fund I
Columbia Small Cap Growth Fund II		  
Core Funds   Columbia Common Stock Fund
Columbia Large Cap Core Fund
Columbia Small Cap Core Fund		  
Value Funds   Columbia Disciplined Value Fund
Columbia Dividend Income Fund
Columbia Large Cap Value Fund
Columbia Mid Cap Value Fund
Columbia Small Cap Value Fund I
Columbia Small Cap Value Fund II
Columbia Strategic Investor Fund		  
Asset Allocation/Hybrid Funds   Columbia Asset Allocation Fund
Columbia Asset Allocation Fund II
Columbia Balanced Fund
Columbia Liberty Fund
Columbia LifeGoal(TM) Balanced Growth Portfolio
Columbia LifeGoal(TM) Growth Portfolio
Columbia LifeGoal(TM) Income Portfolio
Columbia LifeGoal(TM) Income and Growth Portfolio
Columbia Masters Global Equity Portfolio
Columbia Masters Heritage Portfolio
Columbia Masters International Equity Portfolio
Columbia Thermostat Fund		  
Index Funds   Columbia Large Cap Enhanced Core Fund
Columbia Large Cap Index Fund
Columbia Mid Cap Index Fund
Columbia Small Cap Index Fund		  
Specialty Funds   Columbia Convertible Securities Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund		  
Global/International Funds   Columbia Acorn International
Columbia Acorn International Select
Columbia Global Value Fund
Columbia Greater China Fund
Columbia International Stock Fund
Columbia International Value Fund
Columbia Marsico International Opportunities Fund
Columbia Multi-Advisor International Equity Fund
Columbia World Equity Fund		  

 

243


Columbia Funds – Columbia Money Market Funds

Taxable Bond Funds   Columbia Conservative High Yield Fund
Columbia Core Bond Fund
Columbia Federal Securities Fund
Columbia High Income Fund
Columbia High Yield Opportunity Fund
Columbia Income Fund
Columbia Intermediate Bond Fund
Columbia Short Term Bond Fund
Columbia Strategic Income Fund
Columbia Total Return Bond Fund
Columbia U.S. Treasury Index Fund		  
Tax-Exempt Bond Funds   Columbia California Tax-Exempt Fund
Columbia California Intermediate Municipal Bond Fund
Columbia Connecticut Tax-Exempt Fund
Columbia Connecticut Intermediate Municipal Bond Fund
Columbia Georgia Intermediate Municipal Bond Fund
Columbia High Yield Municipal Fund
Columbia Intermediate Municipal Bond Fund
Columbia Massachusetts Intermediate Municipal Bond Fund
Columbia Massachusetts Tax-Exempt Fund
Columbia Maryland Intermediate Municipal Bond Fund
Columbia North Carolina Intermediate Municipal Bond Fund
Columbia New York Tax-Exempt Fund
Columbia New Jersey Intermediate Municipal Bond Fund
Columbia New York Intermediate Municipal Bond Fund
Columbia Oregon Intermediate Municipal Bond Fund
Columbia Rhode Island Intermediate Municipal Bond Fund
Columbia South Carolina Intermediate Municipal Bond Fund
Columbia Short Term Municipal Bond Fund
Columbia Tax-Exempt Fund
Columbia Virginia Intermediate Municipal Bond Fund		  
Money Market Funds   Columbia California Tax-Exempt Reserves
Columbia Cash Reserves
Columbia Connecticut Municipal Reserves
Columbia Government Plus Reserves
Columbia Government Reserves
Columbia Massachusetts Municipal Reserves
Columbia Money Market Reserves
Columbia Municipal Reserves
Columbia New York Tax-Exempt Reserves
Columbia Prime Reserves
Columbia Tax-Exempt Reserves
Columbia Treasury Reserves		  

 

For complete product information on any Columbia fund, visit our website at www.columbiafunds.com.

Columbia Management Group, LLC ("Columbia Management") is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of NASD, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

244


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Important Information About This Report

Columbia Money Market Funds

The funds mail one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you.

This report has been prepared for shareholders of the Columbia Money Market Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of each fund and with the most recent copy of the Columbia Funds Performance Update.

A description of the policies and procedures that each fund uses to determine how to vote proxies and a copy of each fund's voting records are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 800-368-0346. Information regarding how each fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how each fund voted proxies relating to portfolio securities is also available from the funds' website.

Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of NASD, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Transfer Agent

Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
800.345.6611

Distributor

Columbia Management
Distributors, Inc.
One Financial Center
Boston, MA 02111

Investment Advisor

Columbia Management Advisors, LLC
100 Federal Street
Boston, MA 02110

Independent Registered Public

Accounting Firm

PricewaterhouseCoopers LLP
125 High Street
Boston, MA 02110

245



Columbia Money Market Funds

Annual Report, August 31, 2006

Columbia Management®

PRESORTED

Bound Printed Matter

U.S. Postage PAID

Holliston, MA

Permit NO. 20

©2006 Columbia Management Distributors, Inc.

One Financial Center, Boston, MA 02111-2621

800-345-6611 www.columbiafunds.com

SHC-42/113564-0806 (10/06) 06/30834



GRAPHIC

Columbia Money Market Funds

Annual Report - August 31, 2006

·                  Columbia Connecticut Municipal Reserves

 

·                  Columbia Massachusetts Municipal Reserves

 

NOT FDIC INSURED

May Lose Value

 

 

No Bank Guarantee

 

 



Table of contents

Columbia Connecticut Municipal Reserves

 

2

 

 

 

Columbia Massachusetts Municipal Reserves

 

5

 

 

 

Financial Statements

 

8

 

 

 

Investment Portfolios

 

9

 

 

 

Statements of Assets and Liabilities

 

17

 

 

 

Statements of Operations

 

18

 

 

 

Statements of Changes in Net Assets

 

20

 

 

 

Financial Highlights

 

22

 

 

 

Notes to Financial Statements

 

26

 

 

 

Report of Independent Registered Public Accounting Firm

 

32

 

 

 

Unaudited Information

 

33

 

 

 

Fund Governance

 

34

 

 

 

Columbia Funds

 

37

 

 

 

Important Information about This Report

 

39

 

An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds.

The views expressed in the President’s Message and Portfolio Managers’ Report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Fund. References to specific company securities should not be construed as a recommendation or investment advice.

President’s Message – Columbia Money Market Funds

GRAPHIC

Dear Shareholder:

We appreciate your continued confidence in the Columbia Funds. Many of the product changes and other initiatives we have told you about in the prior 18 months have been fully completed. The results have been as we expected — a more streamlined product offering with lower expense ratios for the majority of our funds. When coupled with the improvements in our investment process, we believe Columbia Management is well positioned to provide you with an array of products to meet your investment needs.

We have also made improvements to our servicing platform. Website enhancements, improved account access at www.columbiafunds.com and a recently upgraded automated phone system available at 800.345.6611 provide you with everything you need to manage your relationship with Columbia 24 hours a day, 7 days a week. The new phone system is equipped with an advanced speech recognition system that allows callers to interact with the system using natural spoken commands.

After secure login, you can buy, sell or exchange funds either on-line or over the phone. (Buying shares requires that a link has been established between your bank account and Columbia Funds account). Up to-date performance and pricing information is also available on-line or over the phone. We will continue to look for ways to expand capabilities for you in the future.

So, as you read the enclosed portfolio manager commentary on your fund and what has driven its performance results, be assured that we will not rest on the recent success of our product and service enhancements. We will continue to seek ways to provide you with better financial solutions and consistent, high-quality results. We value your relationship with us and will work hard to earn your continued trust.

Sincerely,

GRAPHIC

Christopher L. Wilson
President, Columbia Funds



Economic Update – Columbia Money Market Funds

US economic growth shifted lower during the three-month period that began June 1, 2006, and ended August 31, 2006. The pace of growth was estimated between 2% and 3%—slower than a year ago, but still relatively solid. Job growth continued to provide support for consumer spending, although the number of new jobs added to the labor market fell short of expectations. Personal income rose but so did consumer debt. Consumer confidence dropped sharply near the end of the period, as consumers expressed pessimism about the availability of jobs and prospects for higher wages in the months ahead. Higher energy prices and a soft housing market also weighed on consumers.

Fed holds the line

After 17 consecutive short-term interest rate hikes, the Federal Reserve Board (the Fed) held the federal funds rate—a key overnight lending rate—steady at 5.25%, while acknowledging that inflation remained a concern.(1) The markets responded favorably to the Fed’s decision. Stocks rose and bond yields declined on the news. Bond yields and prices typically move in opposite directions.

Bond markets rally late in the period

The US bond market delivered a modest but positive return, as interest rates moved generally lower across the maturity spectrum in the last two months of the period. The yield on the 10-year US Treasury note, a bellwether for the bond market, rose above 5.2% in June but ended the period at 4.74%. In this environment, investment grade bonds outperformed high-yield bonds. The Lehman Brothers Aggregate Bond Index returned 3.12% for the three-month period. The Merrill Lynch High Yield, Cash Pay Index returned 2.33%.

Stocks moved higher

The S&P 500 Index—a broad measure of large company stock market performance—returned a respectable 3.15% for this reporting period. Large cap stocks significantly outperformed small and midcap stocks. The Russell 2000 Index and the Russell Midcap Index barely broke into positive territory, with returns of 0.25% and 0.41% respectively.(2) Utilities, telecommunications services and health care stocks were the best performing sectors within the S&P 500 Index. Consumer discretionary, materials and industrials were the weakest sectors, all three with negative results.

(1)          The Fed again held the line on the federal funds rate when it met in September.

(2)          The Russell Midcap Index is an index that measures the performance of the 800 smallest companies in the Russell 1000 Index, as ranked by total market capitalization.

Summary

For the three-month period ended August 31, 2006

·                  The broad stock market, as measured by the S&P 500 Index, returned 3.15%. Large-cap stocks did considerably better than small cap stocks, as measured by the Russell 2000 Index.

 

S&P 500 Index

Russell Index

 

 

 

 

 

 

GRAPHIC

GRAPHIC

 

 

·                  Investment-grade bonds rallied as the Fed held the line on short-term interest rates for the first time in more than two years. Investment grade bonds outperformed high-yield bonds as measured by the Lehman Brothers Aggregate Bond Index and the Merrill Lynch High Yield, Cash Pay Index.

 

Lehman
Index

Merrill Lynch
Index

 

 

 

 

 

 

GRAPHIC

GRAPHIC

 

 

The S&P 500 Index tracks the performance of 500 widely held, large-capitalization US stocks.

The Russell 2000 Index tracks the performance of the 2,000 smallest of the 3,000 largest US companies based on market capitalization.

The Lehman Brothers Aggregate Bond Index is a market value-weighted index that tracks the performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues.

The Merrill Lynch U.S. High Yield, Cash Pay Index tracks the performance of non-investment-grade corporate bonds.

Unlike the funds, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index.

1



Understanding Your Expenses – Columbia Connecticut Municipal Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

·                  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

 

·                  For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

 

1.              Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

 

2.              In the section of the table below titled “Expenses paid during the period,” locate the amount for your share class. You will find this number in the column labeled “actual.” Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund’s expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “actual” column is calculated using actual operating expenses and total return for the period. The amount listed in the “hypothetical” column for each share class assumes that the return each year is 5% before expenses and is calculated based on the actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

06/01/06 - 08/31/06

 

 

Account value at the
beginning of the period ($)

 

Account value at the
end of the period ($)

 

Expenses paid
during the period ($)

 

Fund’s annualized
expense ratio (%)

 

 

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual*

 

Hypothetical**

 

Actual

 

Retail A Shares

 

1,000.00

 

1,000.00

 

1,008.29

 

1,023.69

 

0.76

 

1.53

 

0.30

 

G-Trust Shares

 

1,000.00

 

1,000.00

 

1,008.60

 

1,024.20

 

0.51

 

1.02

 

0.20

 

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund’s most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from May 31 to August 31.

Had the investment advisor and/or administrator not waived or reimbursed a portion of the expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided will not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

*                 For the period June 1, 2006 through August 31, 2006.

**          For the period March 1, 2006 through August 31, 2006.

2



Portfolio Manager’s Report – Columbia Connecticut Municipal Reserves

The Board of Trustees for Columbia Connecticut Municipal Reserves has approved the change of the fund’s fiscal year end from May 31 to August 31. As a result, this report covers the three-month period since the last annual report. The next report you receive will be for the six-month period from September 1, 2006, through February 28, 2007.

For the three-month period ended August 31, 2006, Columbia Connecticut Municipal Reserves Retail A Shares returned 0.83% without sales charge. The fund’s G-Trust Shares returned 0.86%. (The 7-day current yield as of 8/31/06 for Retail A Shares and G-Trust Shares were 3.24% and 3.34%, respectively. The 7-day current yield quotations more closely reflect the current earnings of the fund than the total return quotations.) The fund beat the average return of the Lipper Connecticut Tax-Exempt Money Market Funds Category, which was 0.72%.(1) The fund had a lower weighted average maturity than its peer group, which helped performance, especially as interest rates rose early in the reporting period.

Fund’s stake in VRDNs aided performance

During the summer, the municipal market benefited as new issuance slowed amid strong demand. Municipal bond prices rose, outperforming taxable issues during the reporting period and municipal yields fell. Yet, the fund maintained a competitive yield within its peer group because it had a sizable stake in variable rate demand notes (VRDNs), whose coupons (or stated interest rates) reset daily or weekly. As a result, the fund’s yield was able to keep pace as the Federal Reserve Board (the Fed) raised short-term interest rates. The fund also owned one-month commercial paper to protect it from downturns in VRDN rates, which hit a high of 4.00% in late June and a low of 3.40% in late August.

Continued growth in Connecticut

Connecticut’s economy remained on track, fueled by healthy revenue growth and sound fiscal policy. One of the wealthiest states in the nation, Connecticut derives much of its income from Wall Street and the financial services sector, which employs many of its residents. Although stock market volatility increased over the summer, the state continued to collect steady revenues from personal and corporate income tax as well as capital gains. Property taxes further fueled the state’s coffers. As the housing market showed signs of slowing and the potential for foreclosures increased, we reduced risk by investing in insured bonds as well as bonds that are diversified among sectors and around the state.

Staying nimble while waiting on Fed

In late June, the Fed raised the federal funds rate, a key short-term interest rate, to 5.25%. However, it took no action when it met in August—the first pause in its rate-raising cycle in more than two years. We believe that the Fed’s next move is uncertain: If inflation continues to rise, the Fed could introduce additional rate hikes. Yet, if the pace of economic growth slows or if housing prices decline, the Fed may keep short-term rates where they are or reverse course, and send them lower.

Against this backdrop of uncertainty, we have brought the fund’s weighted average maturity in line with its peers. We plan to keep a close eye on inflation, GDP and housing numbers, all of which the Fed monitors to determine the future direction of short-term interest rates. However, we believe the fund’s current positioning offers flexibility regardless of the Fed’s next move. If short-term rates move higher, the fund’s position in VRDNs would help it capture the higher available yields. If short-term rates stabilize or move lower, the fund’s VRDNs offer the opportunity to react quickly and shift to slightly longer-term instruments with higher yields.

(1)          Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustments for the effect of sales loads.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

“We believe the fund’s current positioning offers flexibility regardless of the Fed’s next move.”

3



Fund Profile – Columbia Connecticut Municipal Reserves

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Summary

·                  For the three-month period ended August 31, 2006, the fund’s Retail A Shares returned 0.83% without sales charge. G-Trust Shares returned 0.86%.

·                  The fund beat the 0.72% average return of the Lipper Connecticut Tax-Exempt Money Market Funds Category.

·                  A lower weighted average maturity than the peer group and a heavy investment in variable rate demand notes (VRDNs) helped the fund take advantage of shifting market conditions.

Portfolio Management

Kelly Mainelli has managed Columbia Connecticut Municipal Reserves since November 2005, and has been with the advisor or its predecessors or affiliate organizations since 2002.

The outlook for this fund may differ from that presented for other Columbia Funds mutual funds and portfolios.

4



Understanding Your Expenses – Columbia Massachusetts Municipal Reserves

As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund’s expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “actual” column is calculated using actual operating expenses and total return for the period. The amount listed in the “hypothetical” column for each share class assumes that the return each year is 5% before expenses and is calculated based on the actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

·                  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

·                  For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.              Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.              In the section of the table below titled “Expenses paid during the period,” locate the amount for your share class. You will find this number in the column labeled “actual.” Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

06/01/06 - 08/31/06

 

 

Account value at the
beginning of the period ($)

 

Account value at the
end of the period ($)

 

Expenses paid during the
period ($)

 

Fund’s annualized
expense ratio (%)

 

 

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual*

 

Hypothetical**

 

Actual

 

Retail A Shares

 

1,000.00

 

1,000.00

 

1,008.39

 

1,023.79

 

0.71

 

1.43

 

0.28

 

G-Trust Shares

 

1,000.00

 

1,000.00

 

1,008.60

 

1.024.20

 

0.51

 

1.02

 

0.20

 

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund’s most recent six-month period and divided by 365. Effective August 16, 2006, the fund changed its fiscal year-end from May 31 to August 31.

Had the investment advisor and/or administrator not waived or reimbursed a portion of the expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided will not help you determine the relative total costs of owning shares of different funds. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

*                 For the period June 1, 2006 through August 31, 2006.

**          For the period March 1, 2006 through August 31, 2006.

5



Portfolio Manager’s Report – Columbia Massachusetts Municipal Reserves

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

“We believe the fund’s current positioning offers flexibility regardless of the Fed’s next move.”

The Board of Trustees for Columbia Massachusetts Municipal Reserves has approved the change of the fund’s fiscal year end from May 31 to August 31. As a result, this report covers the three-month period since the last annual report. The next report you receive will be for the six-month period from September 1, 2006, through February 28, 2007.

For the three-month period ended August 31, 2006, Retail A Shares of Columbia Massachusetts Municipal Reserves returned 0.84% without sales charge. The fund’s G-Trust Shares returned 0.86%. (The 7-day current yield as of 8/31/06 for Retail A Shares and G-Trust Shares were 3.28% and 3.36%, respectively. The 7-day current yield quotations more closely reflect the current earnings of the fund than the total return quotations.) The fund beat the average return of the Lipper Massachusetts Tax-Exempt Money Market Funds Category, which was 0.76%.(1) The fund had a lower weighted average maturity than its peer group, which helped performance, especially as interest rates rose early in the reporting period.

Fund’s stake in VRDNs aided performance

During the summer, the municipal market benefited as new issuance slowed amid strong demand. Municipal bond prices rose, outperforming taxable issues during the reporting period and municipal yields fell. Yet, the fund maintained a competitive yield within its peer group because it had a sizable stake in variable rate demand notes (VRDNs), whose coupons (or stated interest rates) reset daily or weekly. As a result, the fund’s yield was able to keep pace as the Federal Reserve Board (the Fed) raised short-term interest rates. The fund also owned one-month commercial paper to protect it from downturns in VRDN rates, which were volatile.

Steady economic progress in Massachusetts

Massachusetts’ fiscal policy remained sound, buoyed by a mix of positive revenue growth and spending restraint. The health care and education industries were leading employers, offsetting recent reductions in financial services and manufacturing. Over the summer, the ceiling of the Ted Williams Tunnel collapsed, killing a motorist and leading to the tunnel’s shutdown for much of the summer. The ensuing safety inspection revealed the need for extensive repairs, which will significantly boost the final cost of what was already one of the costliest public works projects in US history. Fortunately, the tunnel debacle did not hurt the state’s credit rating or its ability to issue debt. Investors expect the federal government to offer financial assistance on the project, although the state may have to issue more debt to fund these repairs. The slowdown in the local housing market is a greater concern, since Massachusetts relies heavily on revenues from property taxes. To reduce the risks associated with increased foreclosures, we purchased insured bonds as well as bonds diversified among sectors and around the state.

Staying nimble while waiting on Fed

In late June, the Fed raised the federal funds rate, a key short-term interest rate, to 5.25%. However, it took no action when it met in August—the first pause in its rate-raising cycle in more than two years. We believe that the Fed’s next move is uncertain. If inflation continues to rise, the Fed could introduce additional rate hikes. Yet, if the pace of economic growth slows or if housing prices decline, the Fed may keep short-term rates where they are or reverse course, and send them lower.

Against this backdrop of uncertainty, we have brought the fund’s weighted average maturity in line with its peers. We plan to keep a close eye on inflation, GDP and housing numbers, all of which the Fed monitors to determine the future direction of short-term interest rates. However, we believe the fund’s current positioning offers flexibility regardless of the Fed’s next move. If short-term rates move higher, the fund’s position in VRDNs would help it capture the higher available yields. If short-term rates stabilize or move lower, the fund’s VRDNs offer the opportunity to react quickly and shift to slightly longer-term instruments with higher yields.

(1)          Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustments for the effect of sales loads.

6



Fund Profile – Columbia Massachusetts Municipal Reserves

Summary

·                  For the three-month period ended August 31, 2006, the fund’s Retail A Shares returned 0.84% without sales charge. G-Trust Shares returned 0.86%.

·                  The fund outperformed the 0.76% average of the Lipper Massachusetts Tax-Exempt Money Market Funds Category.

·                  A lower weighted average maturity than the peer group and a heavy investment in variable rate demand notes (VRDNs) helped the fund take advantage of shifting market conditions.

Portfolio Management

Kelly Mainelli has managed Columbia Massachusetts Municipal Reserves since November 2005, and has been with the advisor or its predecessors or affiliate organizations since 2002.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

The outlook for this fund may differ from that presented for other Columbia Funds mutual funds and portfolios.

7



Financial Statements – Columbia Money Market Funds (August 31, 2006)

 

A guide to understanding your fund’s financial statements

 

 

 

Investment Portfolio

 

The investment portfolio details all of the fund’s holdings and their values as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification.

 

 

 

Statement of Assets and Liabilities

 

This statement details the fund’s assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. Net assets are calculated by subtracting all the fund’s liabilities (including any unpaid expenses) from the total of the fund’s investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period.

 

 

 

Statement of Operations

 

This statement details income earned by the fund and the expenses accrued by the fund during the reporting period. The Statement of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund’s net increase or decrease in net assets from operations.

 

 

 

Statement of Changes in Net Assets

 

This statement demonstrates how the fund’s net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments) during the reporting period. The Statement of Changes in Net Assets also details changes in the number of shares outstanding.

 

 

 

Financial Highlights

 

The financial highlights demonstrate how the fund’s net asset value per share was affected by the fund’s operating results. The financial highlights table also discloses performance for each class of shares and certain key ratios (e.g., class expenses and net investment income as a percentage of average net assets).

 

 

 

Notes to Financial Statements

 

These notes disclose the organizational background of the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies.

 

8



Investment Portfolio – Columbia Connecticut Municipal Reserves (August 31, 2006)

Municipal Bonds – 99.8%

 

 

 

 

Par ($)

 

Value ($)

 

Alabama – 0.5%

 

 

 

 

 

 

 

AL Birmingham Public Educational Building Authority

 

CHF-Birmingham LLC, Series 2000 A, LOC: Wachovia Bank N.A.
3.420% 06/01/30 (a)

 

660,000

 

660,000

 

 

 

 

 

 

 

 

 

Alabama Total

 

 

 

 

 

660,000

 

 

 

 

 

 

 

 

 

Connecticut – 72.2%

 

 

 

 

 

 

 

CT ABN AMRO Munitops Certificates Trust

 

Series 2005, SPA: ABN AMRO Bank N.V. 3.440% 07/01/13 (a)

 

2,500,000

 

2,500,000

 

 

 

 

 

 

 

 

 

CT Clean Water Fund

 

Series 1996, Insured: MBIA
5.125% 07/01/07

 

1,000,000

 

1,005,266

 

 

 

 

 

 

 

 

 

CT Development Authority

 

Health Care Revenue, Independent Living Program, Series 1990, LOC: Chase Manhattan Bank
3.430% 07/01/15 (a)

 

4,295,000

 

4,295,000

 

 

 

Industrial Development Revenue, Series 1984, LOC: Citizens Bank of Connecticut
3.420% 12/01/14 (a)

 

4,050,000

 

4,050,000

 

 

 

Pierce Memorial Baptists Home, Inc., Series 1999, LOC: LaSalle National Bank
3.300% 10/01/28 (a)

 

1,800,000

 

1,800,000

 

 

 

Pollution Control Revenue, Central Vermont Public Service, Series 1985, LOC: Citizens Bank N.A.
3.660% 12/01/15 (a)

 

2,600,000

 

2,600,000

 

 

 

Solid Waste Program, Rand-Whitney Containerboard LP, Series 1993, AMT, LOC: Bank of Montreal
3.440% 08/01/23 (a)

 

2,555,000

 

2,555,000

 

 

 

Water Facility Revenue: Series 2004 A, AMT, LOC: Citizens Bank of Rhode Island
3.430% 07/01/28 (a)

 

1,250,000

 

1,250,000

 

 

 

Series 2004 B, LOC: Citizens Bank of Rhode Island
3.400% 09/01/28 (a)

 

1,125,000

 

1,125,000

 

 

 

 

 

 

 

 

 

CT Fairfield

 

Series 2006,
4.500% 07/26/07

 

3,000,000

 

3,020,518

 

 

 

 

 

 

 

 

 

CT Health & Educational Facilities Authority

 

Hospital of St. Raphael, Series 2004 M, LOC: KBC Bank N.V.
3.380% 07/01/24 (a)

 

6,705,000

 

6,705,000

 

 

 

Kingswood Oxford School, Series 2002 B, LOC: Allied Irish Bank PLC
3.400% 07/01/30 (a)

 

1,000,000

 

1,000,000

 

 

 

Quinnipiac University, Series 2003 G, LOC: JPMorgan Chase Bank
3.510% 07/01/23 (a)

 

490,000

 

490,000

 

 

 

Series 2004, Insured: FGIC, SPA: Merrill Lynch Capital Services, GTY AGMT: Merrill Lynch & Co.
3.450% 02/08/07 (a)(b)

 

3,375,000

 

3,375,000

 

 

 

Taft School, Series 2000 E, LOC: Wachovia Bank N.A.
3.420% 07/01/30 (a)

 

4,000,000

 

4,000,000

 

 

See Accompanying Notes to Financial Statements.

9



 

 

 

 

 

Par ($)

 

Value ($)

 

Connecticut (continued)

 

 

 

 

 

 

 

CT Health & Educational Facilities Authority (continued)

 

Yale University: Series 1997 T-1,
3.540% 07/01/29 (a)

 

5,695,000

 

5,695,000

 

 

 

Series 2003 X-3,
3.540% 07/01/37 (a)

 

9,465,000

 

9,465,000

 

 

 

 

 

 

 

 

 

CT Housing Finance Authority

 

Series 2004 A4, AMT, Insured: AMBAC, SPA: DEPFA Bank PLC
3.440% 05/15/26 (a)

 

2,060,000

 

2,060,000

 

 

 

Series 2005, AMT: LIQ FAC: Landesbank Hessen-Thuringen, GIC: Rabobank International
3.460% 11/15/09 (a)

 

185,000

 

185,000

 

 

 

LIQ FAC: Lehman Liquidity Co.
3.520% 11/15/29 (a)

 

9,000,000

 

9,000,000

 

 

 

 

 

 

 

 

 

CT New Haven

 

3.640% 09/13/06

 

1,905,000

 

1,905,000

 

 

 

 

 

 

 

 

 

CT Regional School District No. 5

 

Series 2005,
4.500% 11/29/06

 

2,000,000

 

2,005,902

 

 

 

 

 

 

 

 

 

CT Regional School District No. 10

 

Series 2006,
4.500% 08/13/07

 

4,000,000

 

4,030,788

 

 

 

 

 

 

 

 

 

CT Special Tax Obligation Revenue

 

Series 2000-1, Insured: FGIC, SPA: Dexia Public Finance Bank
3.440% 09/01/20 (a)

 

3,240,000

 

3,240,000

 

 

 

Series 2003-2, Insured: AMBAC
3.440% 02/01/22 (a)

 

6,420,000

 

6,420,000

 

 

 

 

 

 

 

 

 

CT State

 

Series 1997 B, SPA: Bayerische Landesbank
3.380% 05/15/14 (a)

 

1,100,000

 

1,100,000

 

 

 

Series 2001, LIQ FAC: JPMorgan Chase Bank
3.570% 06/15/15 (a)

 

1,300,000

 

1,300,000

 

 

 

Series 2001 A, SPA: Landesbank Hessen-Thuringen
3.410% 02/15/21 (a)

 

6,040,000

 

6,040,000

 

 

 

 

 

 

 

 

 

CT University

 

Series 2004, Insured: MBIA, SPA: Merrill Lynch Capital Services
3.430% 01/15/11 (a)

 

3,100,000

 

3,100,000

 

 

 

 

 

 

 

 

 

Connecticut Total

 

 

 

 

 

95,317,474

 

 

 

 

 

 

 

 

 

Florida – 4.1%

 

 

 

 

 

 

 

FL Higher Educational Facilities Financing Authority

 

St. Thomas University, Series 2003, LOC: SunTrust Bank
3.570% 01/01/19 (a)

 

5,405,000

 

5,405,000

 

 

 

 

 

 

 

 

 

Florida Total

 

 

 

 

 

5,405,000

 

 

 

 

 

 

 

 

 

Illinois – 0.4%

 

 

 

 

 

 

 

IL Chicago Board of Education

 

Series 2005 D-2, Insured: CIFG, SPA: DEPFA Bank PLC
3.580% 03/01/36 (a)

 

480,000

 

480,000

 

 

 

 

 

 

 

 

 

Illinois Total

 

 

 

 

 

480,000

 

 

See Accompanying Notes to Financial Statements.

10



 

 

 

 

 

Par ($)

 

Value ($)

 

Indiana – 1.3%

 

 

 

 

 

 

 

IN Health & Educational Facility Finance Authority

 

Jackson County Schneck Memorial, Series 2006 B, LOC: Fifth Third Bank
3.570% 02/15/36 (a)

 

1,775,000

 

1,775,000

 

 

 

 

 

 

 

 

 

Indiana Total

 

 

 

 

 

1,775,000

 

 

 

 

 

 

 

 

 

Kentucky – 0.0%

 

 

 

 

 

 

 

KY Breckinridge County

 

Series 2002 A, LOC: U.S. Bank N.A.
3.600% 02/01/32 (a)

 

35,000

 

35,000

 

 

 

 

 

 

 

 

 

Kentucky Total

 

 

 

 

 

35,000

 

 

 

 

 

 

 

 

 

Louisiana – 4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LA Offshore Terminal Authority

 

Loop LLC, Series 2003 A, LOC: SunTrust Bank
3.570% 09/01/14 (a)

 

6,000,000

 

6,000,000

 

 

 

 

 

 

 

 

 

Louisiana Total

 

 

 

 

 

6,000,000

 

 

 

 

 

 

 

 

 

Mississippi – 1.0%

 

 

 

 

 

 

 

MS Jackson County Pollution Control

 

Chevron Corp., Series 1992,
3.410% 12/01/16 (a)

 

1,355,000

 

1,355,000

 

 

 

 

 

 

 

 

 

Mississippi Total

 

 

 

 

 

1,355,000

 

 

 

 

 

 

 

 

 

New York – 2.3%

 

 

 

 

 

 

 

NY Metropolitan Transportation Authority

 

Series 2005 G, LOC: BNP Paribas
3.570% 11/01/26 (a)

 

2,995,000

 

2,995,000

 

 

 

 

 

 

 

 

 

New York Total

 

 

 

 

 

2,995,000

 

 

 

 

 

 

 

 

 

Puerto Rico – 13.4%

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Electric Power Authority

 

Series 2002-1, Insured: MBIA, LIQ FAC: Bank of New York
3.420% 07/01/20 (a)

 

3,000,000

 

3,000,000

 

 

 

Series 2005-681, Insured: FGIC, LIQ FAC: JPMorgan Chase Bank
3.400% 07/01/12 (a)

 

1,770,000

 

1,770,000

 

 

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Highway & Transportation Authority

 

Series 2005, Insured: AMBAC, CIFG, LIQ FAC: Dexia Credit Local
3.150% 10/12/06 (a)(b)

 

1,000,000

 

998,945

 

 

 

Series 2006-219, Insured: AMBAC, SPA: Merrill Lynch Capital Services
3.400% 07/01/18 (a)(b)

 

1,200,000

 

1,200,000

 

 

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Infrastructure Financing Authority

 

Series 2005 Z-6, Insured: FGIC, LIQ FAC: Goldman Sachs
3.470% 06/26/37 (a)

 

1,070,000

 

1,070,000

 

 

See Accompanying Notes to Financial Statements.

11



 

 

 

 

 

Par ($)

 

Value ($)

 

Puerto Rico (continued)

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Infrastructure Financing Authority (continued)

 

Series 2006, Insured: AMBAC, SPA: Merrill Lynch Capital Services
3.400% 01/01/24 (a)

 

1,780,000

 

1,780,000

 

 

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Public Finance Corp.

 

Series 2006, Insured: FGIC, LIQ FAC: JPMorgan Chase Bank
3.440% 08/01/10 (a)

 

2,100,000

 

2,100,000

 

 

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico

 

Series 2000-620, Insured: MBIA, SPA: Merrill Lynch Capital Services
3.400% 07/01/16 (a)

 

2,000,000

 

2,000,000

 

 

 

Series 2001, Insured: FSA, LIQ FAC: Bank of New York
3.420% 07/01/27 (a)

 

1,775,000

 

1,775,000

 

 

 

Series 2006, LIQ FAC: Goldman Sachs GTY AGMT: Goldman Sachs & Co.
3.440% 07/01/35 (a)

 

2,000,000

 

2,000,000

 

 

 

 

 

 

 

 

 

Puerto Rico Total

 

 

 

 

 

17,693,945

 

 

 

Total Municipal Bonds (Cost of $131,716,419)

 

 

 

131,716,419

 

 

 

 

 

 

 

 

 

 

 

Total Investments – 99.8%
(Cost of $131,716,419) (c)

 

 

 

131,716,419

 

 

 

 

 

 

 

 

 

 

 

Other Assets & Liabilities, Net – 0.2%

 

 

 

271,760

 

 

 

 

 

 

 

 

 

 

 

Net Assets – 100.0%

 

 

 

131,988,179

 

 

 

Notes to Investment Portfolio:

 

 

(a)

The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

 

 

(b)

Illiquid security.

 

 

(c)

Cost for federal income tax purposes is $131,716,419.

 

 

Acronym

 

Name

AMBAC

 

Ambac Assurance Corp.

AMT

 

Alternative Minimum Tax

CIFG

 

CIFG Assurance North America, Inc.

FGIC

 

Financial Guaranty Insurance Co.

FSA

 

Financial Security Assurance, Inc.

GIC

 

Guaranteed Investment Contract

GTY AGMT

 

Guaranty Agreement

LIQ FAC

 

Liquidity Facility

LOC

 

Letter of Credit

MBIA

 

MBIA Insurance Corp.

SPA

 

Stand-by Purchase Agreement

 

See Accompanying Notes to Financial Statements.

12



Investment Portfolio – Columbia Massachusetts Municipal Reserves (August 31, 2006)

Municipal Bonds – 99.8%

 

 

 

 

Par ($)

 

Value ($)

 

Alabama – 0.6%

 

 

 

 

 

 

 

AL Birmingham Public Educational Building Authority

 

CHF-Birmingham LLC, Series 2000 A, LOC: Wachovia Bank N.A.
3.420% 06/01/30 (a)

 

1,445,000

 

1,445,000

 

 

 

 

 

 

 

 

 

Alabama Total

 

 

 

 

 

1,445,000

 

 

 

 

 

 

 

 

 

Massachusetts – 91.8%

 

 

 

 

 

 

 

MA Bay Transportation Authority

 

Sales Tax Revenue, Series 2005, LIQ FAC: Lehman Liquidity Co.
3.420% 07/01/31 (a)

 

4,000,000

 

4,000,000

 

 

 

 

 

 

 

 

 

MA Boston Water & Sewer Commission

 

Series 1994 A, LOC: State Street Bank & Trust Co.
3.370% 11/01/24 (a)

 

7,600,000

 

7,600,000

 

 

 

 

 

 

 

 

 

MA Development Finance Agency

 

3.580% 02/13/07

 

5,000,000

 

5,000,000

 

 

 

Belmont Day School, Inc., Series 2001, LOC: Sovereign Bank FSB, LOC: PNC Bank N.A. 3.450% 07/01/31 (a)

 

4,000,000

 

4,000,000

 

 

 

Boston College High School, Series 2003, LOC: Citizens Bank of Massachusetts
3.450% 08/01/33 (a)

 

3,000,000

 

3,000,000

 

 

 

Dexter School, Series 2000, Insured: MBIA, SPA: First Union National Bank
3.450% 05/01/31 (a)

 

4,150,000

 

4,150,000

 

 

 

Elderhostel, Inc., Series 2000, LOC: Citizens Bank of Massachusetts, LOC: Royal Bank of Scotland
3.410% 08/01/30 (a)

 

2,400,000

 

2,400,000

 

 

 

Governor Dummer Academy, Series 2006 D, LOC: Citizens Bank of Massachusetts
3.450% 08/01/36 (a)

 

5,000,000

 

5,000,000

 

 

 

ISO New England, Inc., Series 2005, LOC: KeyBank N.A.
3.430% 02/01/32 (a)

 

5,000,000

 

5,000,000

 

 

 

Mystic Valley Regional Charter School, Series 2005, LOC: Sovereign Bank FSB, LOC: Bank of Nova Scotia
3.410% 06/15/08 (a)

 

2,530,000

 

2,530,000

 

 

 

Series 2004 A, AMT, LOC: PNC Bank N.A.
3.450% 12/01/37 (a)

 

4,560,000

 

4,560,000

 

 

 

Shady Hill School, Series 1998 A, LOC: Citizens Bank of Massachusetts
3.410% 10/01/28 (a)

 

4,700,000

 

4,700,000

 

 

 

Various Bridgewell, Inc., Series 2005 A, LOC: KeyBank N.A.
3.430% 06/01/30 (a)

 

3,585,000

 

3,585,000

 

 

 

Young Men’s Christian Association of Greater Boston, Series 2004 B, LOC: Citizens Bank of Massachusetts
3.420% 12/31/07 (a)

 

2,000,000

 

2,000,000

 

 

 

 

 

 

 

 

 

MA Eclipse Funding Trust

 

Series 2005, Insured: FSA, LIQ FAC: U.S. Bank Trust, N.A.
3.430% 08/15/24 (a)

 

6,370,000

 

6,370,000

 

 

 

Series 2006, Insured: AMBAC, LIQ FAC: U.S. Bank Trust, N.A.
3.430% 07/01/35 (a)

 

3,385,000

 

3,385,000

 

 

See Accompanying Notes to Financial Statements.

13



 

 

 

 

 

Par ($)

 

Value ($)

 

Massachusetts (continued)

 

 

 

 

 

 

 

MA Floater-TRS Trust

 

Series 2006, AMT, LIQ FAC: Lehman Liquidity Co.
3.500% 12/01/48 (a)

 

5,515,000

 

5,515,000

 

 

 

 

 

 

 

 

 

MA Health & Educational Facilities Authority

 

Emmanuel College, Series 2003, LOC: Allied Irish Bank PLC, LOC: State Street Bank & Trust Co.
3.400% 07/01/33 (a)

 

6,100,000

 

6,100,000

 

 

 

Harvard University, Series 2000 Y,
3.200% 07/01/35 (a)

 

6,000,000

 

6,000,000

 

 

 

Partners Healthcare Systems, Inc.: Series 2003 D-3, SPA: JPMorgan Chase Bank
3.400% 07/01/38 (a)

 

8,105,000

 

8,105,000

 

 

 

Series 2003 D-4, SPA: Citibank N.A.
3.380% 07/01/38 (a)

 

1,700,000

 

1,700,000

 

 

 

Series 1989, 3.250% 01/01/24 (a)

 

5,800,000

 

5,800,000

 

 

 

Series 2003, Insured: MBIA, SPA: Merrill Lynch Capital Services
3.730% 01/01/09 (a)

 

6,350,000

 

6,350,000

 

 

 

Series 2006, LOC: Allied Irish Bank PLC
3.410% 05/01/36 (a)

 

5,035,000

 

5,035,000

 

 

 

 

 

 

 

 

 

MA Health & Educational University

 

3.530% 09/11/06

 

2,000,000

 

2,000,000

 

 

 

 

 

 

 

 

 

MA Housing Finance Agency

 

Series 2003 G, SPA: HSBC Bank USA N.A.
3.380% 12/01/25 (a)

 

2,530,000

 

2,530,000

 

 

 

Series 2005 R-421, AMT, Insured: FSA, LIQ FAC: Citibank N.A.
3.470% 07/01/22 (a)

 

4,700,000

 

4,700,000

 

 

 

Series 2005, AMT, Insured: FSA, SPA: Merrill Lynch Capital Services
3.440% 07/01/25 (a)

 

1,500,000

 

1,500,000

 

 

 

Series 2006 A, AMT, Insured: FSA, SPA: DEPFA Bank PLC
3.410% 07/01/16 (a)

 

1,500,000

 

1,500,000

 

 

 

 

 

 

 

 

 

MA Industrial Finance Agency

 

Buckingham Browne & Nichols School, Series 1997, LOC: State Street Bank & Trust Co. 3.420% 05/01/27 (a)

 

4,700,000

 

4,700,000

 

 

 

Governor Dummer Academy, Series 1996, LOC: Citizens Bank of Massachusetts
3.450% 07/01/26 (a)

 

2,800,000

 

2,800,000

 

 

 

Series 1996, AMT, LOC: Citizens Bank of Massachusetts
3.520% 05/01/16 (a)

 

1,700,000

 

1,700,000

 

 

 

 

 

 

 

 

 

MA Municipal Wholesale Electric Co.

 

Series 2001 A, Insured: MBIA
5.000% 07/01/07

 

7,000,000

 

7,072,164

 

 

 

 

 

 

 

 

 

MA Port Authority

 

Series 2005, AMT, Insured: AMBAC, LIQ FAC: Citibank N.A.
3.510% 01/01/22 (a)

 

2,500,000

 

2,500,000

 

 

 

 

 

 

 

 

 

MA Roaring Fork Municipal Products LLC

 

Series 2005-7 A, Insured: AMBAC, SPA: Bank of New York
3.450% 07/01/27 (a)

 

5,175,000

 

5,175,000

 

 

See Accompanying Notes to Financial Statements.

14



 

 

 

 

 

Par ($)

 

Value ($)

 

Massachusetts (continued)

 

 

 

 

 

 

 

MA School Building Authority

 

Sales Tax Revenue, Series 2005 A, Insured: FSA, LIQ FAC: Citibank N.A.
3.460% 08/15/30 (a)

 

1,000,000

 

1,000,000

 

 

 

 

 

 

 

 

 

MA Shrewsbury

 

Series 2005,
4.500% 11/22/06

 

1,675,000

 

1,679,555

 

 

 

 

 

 

 

 

 

MA Special Obligation

 

Dedicated Tax Revenue, Series 2004, Insured: FGIC, SPA: Merrill Lynch Capital Services
3.430% 01/01/12 (a)

 

6,155,000

 

6,155,000

 

 

 

 

 

 

 

 

 

MA State

 

3.560% 09/06/06

 

6,700,000

 

6,700,000

 

 

 

Series 1997 B, SPA: Landesbank Hessen-Thuringen
3.380% 08/01/15 (a)

 

10,145,000

 

10,145,000

 

 

 

Series 2001 B, SPA: Landesbank Hessen-Thuringen
3.360% 01/01/21 (a)

 

1,500,000

 

1,500,000

 

 

 

Series 2001 C, SPA: State Street Bank & Trust Co.
3.360% 01/01/21 (a)

 

495,000

 

495,000

 

 

 

Series 2004, SPA: Dexia Credit Local
3.680% 08/01/16 (a)

 

3,520,000

 

3,520,000

 

 

 

Series 2006 B-06, Insured: FGIC, SPA: Wachovia Bank N.A.
3.440% 08/01/21 (a)

 

4,995,000

 

4,995,000

 

 

 

 

 

 

 

 

 

MA University Building Authority Facilities

 

Series 2004, Insured: MBIA, SPA: Merrill Lynch Capital Services
3.430% 05/01/12 (a)

 

4,130,000

 

4,130,000

 

 

 

Series 2006, Insured: AMBAC, SPA: DEPFA Bank PLC
3.400% 11/01/34 (a)

 

4,100,000

 

4,100,000

 

 

 

 

 

 

 

 

 

MA Water Resources Authority

 

3.500% 09/05/06

 

5,500,000

 

5,500,000

 

 

 

Series 2001 B, Insured: FGIC, SPA: Bayerische Landesbank
3.390% 08/01/31 (a)

 

8,600,000

 

8,600,000

 

 

 

Series 2002 C, LOC: Landesbank Hessen-Thuringen
3.500% 08/01/20 (a)

 

1,625,000

 

1,625,000

 

 

 

 

 

 

 

 

 

MA Weston

 

Series 2006,
4.500% 02/09/07

 

2,041,830

 

2,047,612

 

 

 

 

 

 

 

 

 

Massachusetts Total

 

 

 

 

 

210,254,331

 

 

 

 

 

 

 

 

 

Mississippi – 1.3%

 

 

 

 

 

 

 

MS Jackson County Pollution Control

 

Chevron Corp., Series 1993,
3.410% 06/01/23 (a)

 

2,950,000

 

2,950,000

 

 

 

 

 

 

 

 

 

Mississippi Total

 

 

 

 

 

2,950,000

 

 

 

 

 

 

 

 

 

Puerto Rico – 5.7%

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Highway & Transportation Authority

 

Series 2005, Insured: AMBAC, LIQ FAC: Dexia Credit Local
3.150% 10/12/06 (a)(b)

 

2,000,000

 

1,997,889

 

 

See Accompanying Notes to Financial Statements.

15



 

 

 

 

 

Par ($)

 

Value ($)

 

Puerto Rico (continued)

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Highway & Transportation Authority (continued)

 

Series 2006, Insured: AMBAC, SPA: Merrill Lynch Capital Services
3.400% 07/01/18 (a)(b)

 

3,000,000

 

3,000,000

 

 

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico Public Finance Corp.

 

Series 2003-363, Insured: AMBAC, LIQ FAC: JPMorgan Chase Bank
3.400% 12/01/19 (a)

 

1,000,000

 

1,000,000

 

 

 

 

 

 

 

 

 

PR Commonwealth of Puerto Rico

 

Series 2006, LIQ FAC: Goldman Sachs & Co., GTY AGMT: Goldman Sachs & Co.
3.440% 07/01/35 (a)

 

7,000,000

 

7,000,000

 

 

 

 

 

 

 

 

 

Puerto Rico Total

 

 

 

 

 

12,997,889

 

 

 

 

 

 

 

 

 

Wyoming – 0.4%

 

 

 

 

 

 

 

WY Uinta County

 

Chevron Corp., Series 1993,
3.410% 08/15/20 (a)

 

785,000

 

785,000

 

 

 

 

 

 

 

 

 

Wyoming Total

 

 

 

 

 

785,000

 

 

 

Total Municipal Bonds (Cost of $228,432,220)

 

 

 

228,432,220

 

 

 

 

 

 

 

 

 

 

 

Total Investments – 99.8%
(Cost of $228,432,220) (c)

 

 

 

228,432,220

 

 

 

 

 

 

 

 

 

 

 

Other Assets & Liabilities, Net – 0.2%

 

 

 

545,991

 

 

 

 

 

 

 

 

 

 

 

Net Assets – 100.0%

 

 

 

228,978,211

 

 

 

Notes to Investment Portfolio:

 

 

(a)

The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

 

 

(b)

Illiquid security.

 

 

(c)

Cost for federal income tax purposes is $228,432,220.

 

 

Acronym

 

Name

AMBAC

 

Ambac Assurance Corp.

AMT

 

Alternative Minimum Tax

FGIC

 

Financial Guaranty Insurance Co.

FSA

 

Financial Security Assurance, Inc.

GTY AGMT

 

Guaranty Agreement

LIQ FAC

 

Liquidity Facility

LOC

 

Letter of Credit

MBIA

 

MBIA Insurance Corp.

SPA

 

Stand-by Purchase Agreement

 

See Accompanying Notes to Financial Statements.

16



Statements of Assets and Liabilities – Columbia Money Market Funds (August 31, 2006)

 

 

 

 

Columbia
Connecticut
Municipal
Reserves ($)

 

Columbia
Massachusetts
Municipal
Reserves ($)

 

Assets

 

Investments, at cost

 

131,716,419

 

228,432,220

 

 

 

 

 

 

 

 

 

 

 

Investments, at value

 

131,716,419

 

228,432,220

 

 

 

Cash

 

847

 

745

 

 

 

Receivable for:

 

 

 

 

 

 

 

Fund shares sold

 

—

 

750

 

 

 

Interest

 

655,007

 

1,103,784

 

 

 

Deferred Trustees’ compensation plan

 

23,332

 

32,375

 

 

 

Expense reimbursement or waiver due from Investment Advisor and/or Administrator

 

62,745

 

67,280

 

 

 

Total Assets

 

132,458,350

 

229,637,154

 

 

 

 

 

 

 

 

 

Liabilities

 

Payable for:

 

 

 

 

 

 

 

Distributions

 

314,642

 

468,261

 

 

 

Investment advisory fee

 

13,747

 

24,070

 

 

 

Administration fee

 

5,168

 

12,474

 

 

 

Transfer agent fee

 

318

 

273

 

 

 

Pricing and bookkeeping fees

 

6,492

 

7,774

 

 

 

Trustees’ fees

 

6,938

 

6,938

 

 

 

Audit fees

 

48,000

 

48,000

 

 

 

Shareholder servicing fee – Retail A Shares

 

2,014

 

7,870

 

 

 

Custody fee

 

532

 

442

 

 

 

Legal fee

 

40,002

 

41,000

 

 

 

Chief compliance officer expenses

 

672

 

775

 

 

 

Deferred Trustees’ fees

 

23,332

 

32,375

 

 

 

Other liabilities

 

8,314

 

8,691

 

 

 

Total Liabilities

 

470,171

 

658,943

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

131,988,179

 

228,978,211

 

 

 

 

 

 

 

 

 

Net assets consist of

 

Paid-in capital

 

131,999,454

 

228,943,142

 

 

 

Undistributed (Overdistributed) net investment income

 

(5,391

)

35,069

 

 

 

Accumulated net realized gain (loss)

 

(5,884

)

—

 

 

 

Net Assets

 

131,988,179

 

228,978,211

 

 

 

 

 

 

 

 

 

Retail A Shares

 

Net assets

 

22,353,598

 

69,742,858

 

 

 

Shares outstanding

 

22,360,728

 

69,705,995

 

 

 

Net asset value and offering price per share

 

1.00

 

1.00

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

Net assets

 

109,634,581

 

159,235,353

 

 

 

Shares outstanding

 

109,638,727

 

159,237,148

 

 

 

Net asset value and offering price per share

 

1.00

 

1.00

 

 

See Accompanying Notes to Financial Statements.

17



Statements of Operations – Columbia Money Market Funds

(For the Period Ended August 31, 2006)

 

 

 

 

Columbia

 

Columbia

 

 

 

 

 

Connecticut

 

Massachusetts

 

 

 

 

 

Municipal

 

Municipal

 

 

 

 

 

Reserves ($) (a)

 

Reserves ($) (a)

 

Investment income

 

Income:

 

 

 

 

 

 

 

Interest

 

1,068,054

 

2,052,200

 

 

 

 

 

 

 

 

 

Expenses

 

Investment advisory fee

 

44,601

 

85,630

 

 

 

Administration fee

 

11,517

 

34,764

 

 

 

Shareholder servicing fee – Retail A Shares

 

6,162

 

13,586

 

 

 

Transfer agent fee

 

484

 

604

 

 

 

Pricing and bookkeeping fees

 

18,802

 

22,858

 

 

 

Trustees’ fees

 

2,172

 

2,173

 

 

 

Custody fee

 

5,396

 

4,189

 

 

 

Audit fee

 

24,259

 

24,250

 

 

 

Legal fee

 

38,807

 

39,008

 

 

 

Chief compliance officer expenses

 

1,008

 

1,163

 

 

 

Other expenses

 

13,817

 

11,522

 

 

 

Total Expenses

 

167,025

 

239,747

 

 

 

 

 

 

 

 

 

 

 

Fees waived/reimbursed by Investment Advisor and/or Administrator

 

(97,690

)

(110,426

)

 

 

Custody earnings credit

 

(3,705

)

(1,561

)

 

 

Net Expenses

 

65,630

 

127,760

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

1,002,424

 

1,924,440

 

 

 

 

 

 

 

 

 

 

 

Net realized gain on investments

 

1,354

 

360

 

 

 

 

 

 

 

 

 

 

 

Net Increase resulting from Operations

 

1,003,778

 

1,924,800

 

 

(a)          The Funds changed their fiscal year ends from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

 

See Accompanying Notes to Financial Statements.

18



Statements of Operations – Columbia Money Market Funds

(For the Year Ended May 31, 2006)

 

 

 

 

Columbia

 

Columbia

 

 

 

 

 

Connecticut

 

Massachusetts

 

 

 

 

 

Municipal

 

Municipal

 

 

 

 

 

Reserves ($) (a)

 

Reserves ($) (a)

 

Investment income

 

Income:

 

 

 

 

 

 

 

Interest

 

3,105,505

 

5,216,457

 

 

 

Dividends

 

13,557

 

19,942

 

 

 

Total Income

 

3,119,062

 

5,236,399

 

 

 

 

 

 

 

 

 

Expenses

 

Investment advisory fee

 

295,558

 

476,576

 

 

 

Administration fee

 

53,387

 

109,117

 

 

 

Shareholder servicing fee – Retail A Shares

 

23,101

 

32,895

 

 

 

Transfer agent fee:

 

 

 

 

 

 

 

Retail A Shares

 

4,369

 

5,775

 

 

 

G-Trust Shares

 

2,246

 

1,766

 

 

 

Pricing and bookkeeping fees

 

63,247

 

69,375

 

 

 

Trustees’ fees

 

13,309

 

14,761

 

 

 

Custody fee

 

10,533

 

9,498

 

 

 

Registration fee

 

44,278

 

18,786

 

 

 

Chief compliance officer expenses

 

4,566

 

5,041

 

 

 

Other expenses

 

60,240

 

65,990

 

 

 

Total Expenses

 

574,834

 

809,580

 

 

 

 

 

 

 

 

 

 

 

Fees waived/reimbursed by Investment Advisor and/or Administrator

 

(143,832

)

(145,404

)

 

 

Fees waived by Investment Advisor:

 

 

 

 

 

 

 

Retail A Shares

 

(2,692

)

—

 

 

 

G-Trust Shares

 

(18

)

(18

)

 

 

Custody earnings credit

 

(1,110

)

(1,298

)

 

 

Net Expenses

 

427,182

 

662,860

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

2,691,880

 

4,573,539

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

(6,799

)

1,440

 

 

 

 

 

 

 

 

 

 

 

Net Increase resulting from Operations

 

2,685,081

 

4,574,979

 

 

(a)   Effective November 23, 2005, Trust Shares were redesignated as G-Trust Shares.

 

See Accompanying Notes to Financial Statements.

19



Statements of Changes in Net Assets – Columbia Connecticut Municipal Reserves

 

 

 

 

Period

 

Year

 

Year

 

 

 

 

 

Ended

 

Ended

 

Ended

 

 

 

 

 

August 31,

 

May 31,

 

May 31,

 

Increase (Decrease) in Net Assets

 

 

 

2006 ($)(a)

 

2006 ($)

 

2005 ($)

 

 

 

 

 

 

 

 

 

 

 

Operations

 

Net investment income

 

1,002,424

 

2,691,880

 

2,026,485

 

 

 

Net realized gain (loss) on investments

 

1,354

 

(6,799

)

(439

)

 

 

Net Increase resulting from Operations

 

1,003,778

 

2,685,081

 

2,026,046

 

 

 

 

 

 

 

 

 

 

 

Distributions Declared to Shareholders

 

From net investment income:

 

 

 

 

 

 

 

 

 

Retail A Shares

 

(203,333

)

(609,782

)

(1,319,025

)

 

 

G-Trust Shares

 

(799,091

)

(2,082,098

)

(707,460

)

 

 

Total Distributions Declared to Shareholders

 

(1,002,424

)

(2,691,880

)

(2,026,485

)

 

 

 

 

 

 

 

 

 

 

Share Transactions

 

Retail A Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

8,788,462

 

62,920,996

 

332,186,241

 

 

 

Distributions reinvested

 

203,317

 

607,924

 

1,026,371

 

 

 

Redemptions

 

(11,608,255

)

(51,608,996

)

(558,278,862

)

 

 

Net Increase (Decrease)

 

(2,616,476

)

11,919,924

 

(225,066,250

)

 

 

 

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

87,377,591

 

128,829,038

 

150,640,742

 

 

 

Distributions reinvested

 

—

 

—

 

67

 

 

 

Redemptions

 

(52,318,619

)

(148,708,586

)

(56,191,519

)

 

 

Net Increase (Decrease)

 

35,058,972

 

(19,879,548

)

94,449,290

 

 

 

Net Capital Share Transactions

 

32,442,496

 

(7,959,624

)

(130,616,960

)

 

 

Total Increase (Decrease) in Net Assets

 

32,443,850

 

(7,966,423

)

(130,617,399

)

 

 

 

 

 

 

 

 

 

 

Net Assets

 

Beginning of period

 

99,544,329

 

107,510,752

 

238,128,151

 

 

 

End of period

 

131,988,179

 

99,544,329

 

107,510,752

 

 

 

Undistributed (Overdistributed) net investment income at end of period

 

(5,391

)

(5,391

)

(5,392

)

 

 

 

 

 

 

 

 

 

 

Changes in Shares

 

Retail A Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

8,788,462

 

62,920,180

 

332,186,241

 

 

 

Distributions reinvested

 

203,317

 

607,924

 

1,026,371

 

 

 

Redemptions

 

(11,608,255

)

(51,608,996

)

(558,278,862

)

 

 

Net Increase (Decrease)

 

(2,616,476

)

11,919,108

 

(225,066,250

)

 

 

 

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

87,377,591

 

128,829,038

 

150,640,742

 

 

 

Distributions reinvested

 

—

 

—

 

67

 

 

 

Redemptions

 

(52,318,619

)

(148,708,586

)

(56,191,519

)

 

 

Net Increase (Decrease)

 

35,058,972

 

(19,879,548

)

94,449,290

 

 

(a)          The Fund changed its fiscal year end from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

 

See Accompanying Notes to Financial Statements.

20



Statements of Changes in Net Assets – Columbia Massachusetts Municipal Reserves

Increase (Decrease) in Net Assets

 

 

 

Period
Ended
August 31,
2006 ($) (a)

 

Year
Ended
May 31,
2006 ($)

 

Year
Ended
May 31,
2005 ($)

 

Operations

 

Net investment income

 

1,924,440

 

4,573,539

 

3,101,671

 

 

 

Net realized gain (loss) on investments

 

360

 

1,440

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Increase resulting from Operations

 

1,924,800

 

4,574,979

 

3,101,671

 

 

 

 

 

 

 

 

 

 

 

Distributions Declared to
Shareholders

 

From net investment income:

 

 

 

 

 

 

 

 

 

Retail A Shares

 

(563,245

)

(1,263,717

)

(1,927,207

)

 

 

G-Trust Shares

 

(1,361,195

)

(3,309,822

)

(1,174,464

)

 

 

Total Distributions Declared to Shareholders

 

(1,924,440

)

(4,573,539

)

(3,101,671

)

 

 

 

 

 

 

 

 

 

 

Share Transactions

 

Retail A Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

38,181,541

 

160,430,856

 

796,096,340

 

 

 

Distributions reinvested

 

562,086

 

1,239,608

 

1,485,293

 

 

 

Redemptions

 

(25,920,025

)

(143,340,692

)

(1,042,817,641

)

 

 

Net Increase (Decrease)

 

12,823,602

 

18,329,772

 

(245,236,008

)

 

 

 

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

68,957,524

 

317,744,452

 

307,430,061

 

 

 

Distributions reinvested

 

—

 

—

 

23

 

 

 

Redemptions

 

(62,426,197

)

(291,640,135

)

(181,740,198

)

 

 

Net Increase (Decrease)

 

6,531,327

 

26,104,317

 

125,689,886

 

 

 

Net Capital Share Transactions

 

19,354,929

 

44,434,089

 

(119,546,122

)

 

 

Total Increase (Decrease) in Net Assets

 

19,355,289

 

44,435,529

 

(119,546,122

)

 

 

 

 

 

 

 

 

 

 

Net Assets

 

Beginning of period

 

209,622,922

 

165,187,393

 

284,733,515

 

 

 

End of period

 

228,978,211

 

209,622,922

 

165,187,393

 

 

 

Undistributed (Overdistributed) net investment income at end of period

 

35,069

 

34,709

 

33,269

 

 

 

 

 

 

 

 

 

 

 

Changes in Shares

 

Retail A Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

38,181,541

 

160,381,126

 

796,096,340

 

 

 

Distributions reinvested

 

562,086

 

1,239,608

 

1,485,293

 

 

 

Redemptions

 

(25,920,025

)

(143,340,692

)

(1,042,817,641

)

 

 

Net Increase (Decrease)

 

12,823,602

 

18,280,042

 

(245,236,008

)

 

 

 

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

 

 

 

 

 

 

 

 

Subscriptions

 

68,957,524

 

317,744,342

 

307,430,061

 

 

 

Distributions reinvested

 

—

 

—

 

23

 

 

 

Redemptions

 

(62,426,197

)

(291,640,165

)

(181,740,198

)

 

 

Net Increase (Decrease)

 

6,531,327

 

26,104,177

 

125,689,886

 

 

(a)          The Fund changed its fiscal year end from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

 

See Accompanying Notes to Financial Statements.

21



Financial Highlights – Columbia Connecticut Municipal Reserves

Selected data for a share outstanding throughout each period is as follows:

Retail A Shares

 

Period
Ended
August 31,

 

Year Ended May 31,

 

Period
Ended
May 31,

 

Year Ended
October 31,

 

 

 

2006 (a)

 

2006 (b)

 

2005

 

2004

 

2003 (c)

 

2002

 

2001

 

Net Asset Value, Beginning of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Investment Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

0.008

(d)

0.024

(d)

0.010

 

0.004

 

0.004

 

0.009

 

0.024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.008

)

(0.024

)

(0.010

)

(0.004

)

(0.004

)

(0.009

)

(0.024

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (e)(f)

 

0.83

%(g)

2.43

%

1.03

%

0.37

%

0.37

%(g)

0.88

%

2.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

0.30

%(h)(i)

0.46

%(h)

0.64

%

0.63

%

0.63

%(i)

0.62

%

0.62

%

Net investment income

 

3.30

%(h)(i)

2.41

%(h)

0.96

%

0.37

%

0.64

%(i)

0.87

%

2.36

%

Waiver/reimbursement

 

0.33

%(i)

0.14

%

0.03

%

0.01

%

—

%(i)(j)

—

%(j)

—

%(j)

Net assets, end of period (000’s)

 

$

22,354

 

$

24,970

 

$

13,051

 

$

238,118

 

$

269,559

 

$

298,769

 

$

273,925

 

 

(a)          The Fund changed its fiscal year end from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

(b)         On November 18, 2005, Galaxy Connecticut Municipal Money Market Fund was reorganized as Columbia Connecticut Municipal Reserves.

(c)          The Fund changed its fiscal year end from October 31 to May 31.

(d)         Per share data was calculated using average shares outstanding during the period.

(e)          Total return at net asset value assuming all distributions reinvested.

(f)            Had the Investment Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(g)         Not annualized.

(h)         The benefits derived from custody credits had an impact of less than 0.01%.

(i)             Annualized.

(j)             Rounds to less than 0.01%.

 

See Accompanying Notes to Financial Statements.

22



Columbia Connecticut Municipal Reserves

Selected data for a share outstanding throughout each period is as follows:

G-Trust Shares

 

 

Period
Ended
August 31,

 

Year Ended May 31,

 

Period
Ended
May 31,

 

 

 

2006 (a)

 

2006 (b)(c)

 

2005

 

2004 (d)

 

Net   Asset Value, Beginning of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

Income from Investment Operations:

 

 

 

 

 

 

 

 

 

Net investment income

 

0.009

(e)

0.025

(e)

0.011

 

0.001

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.009

)

(0.025

)

(0.011

)

(0.001

)

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (f)(g)

 

0.86

%(h)

2.52

%

1.13

%

0.13

%(h)

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

Expenses

 

0.20

%(i)(j)

0.37

%(i)

0.55

%

0.53

%(j)

Net investment income

 

3.39

%(i)(j)

2.48

%(i)

1.05

%

0.48

%(j)

Waiver/reimbursement

 

0.33

%(j)

0.13

%

—

%(k)

0.70

%(j)

Net assets, end of period (000’s)

 

$

109,635

 

$

74,575

 

$

94,459

 

$

10

 

 

(a)          The Fund changed its fiscal year end from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

(b)         Effective on November 23, 2005, Trust Shares were redesignated as G-Trust Shares.

(c)          On November 18, 2005, the Galaxy Connecticut Municipal Money Market Fund was reorganized as Columbia Connecticut Municipal Reserves.

(d)         G-Trust Shares were initially offered on March 1, 2004. Per share data and total return reflect activity from that date.

(e)          Per share data was calculated using average shares outstanding during the period.

(f)            Total return at net asset value assuming all distributions reinvested.

(g)         Had the Investment Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(h)         Not annualized.

(i)             The benefits derived from custody credits had an impact of less than 0.01%.

(j)             Annualized.

(k)          Rounds to less than 0.01%.

 

See Accompanying Notes to Financial Statements.

23



Financial Highlights – Columbia Massachusetts Municipal Reserves

Selected data for a share outstanding throughout each period is as follows:

Retail A Shares

 

 

Period
Ended
August 31,

 

Year Ended May 31,

 

Period
Ended
May 31,

 

Year Ended
October 31,

 

 

 

2006 (a)

 

2006 (b)

 

2005

 

2004

 

2003 (c)

 

2002

 

2001

 

Net Asset Value, Beginning of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Investment Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

0.008

(d)

0.024

(d)

0.011

 

0.004

 

0.004

 

0.010

 

0.026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.008

)

(0.024

)

(0.011

)

(0.004

)

(0.004

)

(0.010

)

(0.026

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (e)(f)

 

0.84

%(g)

2.47

%

1.11

%

0.42

%

0.39

%(g)

1.02

%

2.59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

0.28

%(h)(i)

0.42

%(h)

0.60

%

0.59

%

0.58

%(i)

0.57

%

0.59

%

Net investment income

 

3.31

%(h)(i)

2.48

%(h)

1.04

%

0.42

%

0.67

%(i)

1.01

%

2.55

%

Waiver/reimbursement

 

0.19

%(i)

0.08

%

0.02

%

0.01

%

—

%(i)(j)

0.01

%

—

%(j)

Net assets, end of period (000’s)

 

$

69,743

 

$

56,919

 

$

38,586

 

$

283,822

 

$

411,600

 

$

447,525

 

$

521,739

 

 

(a)          The Fund changed its fiscal year end from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

(b)         On November 18, 2005, Galaxy Massachusetts Municipal Money Market Fund was reorganized as Columbia Massachusetts Municipal Reserves.

(c)          The Fund changed its fiscal year end from October 31 to May 31.

(d)         Per share data was calculated using average shares outstanding during the period.

(e)          Total return at net asset value assuming all distributions reinvested.

(f)            Had the Investment Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(g)         Not annualized.

(h)         The benefits derived from custody credits had an impact of less than 0.01%.

(i)             Annualized.

(j)             Rounds to less than 0.01%.

 

See Accompanying Notes to Financial Statements.

24



Columbia Massachusetts Municipal Reserves

Selected data for a share outstanding throughout each period is as follows:

G-Trust Shares

 

 

Period
Ended
August 31,

 

Year Ended May 31,

 

Period
Ended
May 31,

 

 

 

2006 (a)

 

2006 (b)(c)

 

2005

 

2004 (d)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

Income from Investment Operations:

 

 

 

 

 

 

 

 

 

Net investment income

 

0.009

(e)

0.025

(e)

0.012

 

0.001

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.009

)

(0.025

)

(0.012

)

(0.001

)

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (f)(g)

 

0.86

%(h)

2.54

%

1.19

%

0.14

%(h)

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

Expenses

 

0.20

%(i)(j)

0.34

%(i)

0.52

%

0.51

%(j)

Net investment income

 

3.39

%(i)(j)

2.54

%(i)

1.12

%

0.50

%(j)

Waiver/reimbursement

 

0.19

%(j)

0.08

%

0.01

%

0.01

%(j)

Net assets, end of period (000’s)

 

$

159,235

 

$

152,704

 

$

126,602

 

$

912

 

 

(a)          The Fund changed its fiscal year end from May 31 to August 31. Therefore, the period presented is for the three-month period beginning June 1, 2006 through August 31, 2006.

(b)         Effective on November 23, 2005, Trust Shares were redesignated as G-Trust Shares.

(c)          On November 18, 2005, the Galaxy Massachusetts Municipal Money Market Fund was reorganized as Columbia Massachusetts Municipal Reserves.

(d)         G-Trust Shares were initially offered on March 1, 2004. Per share data and total return reflect activity from that date.

(e)          Per share data was calculated using average shares outstanding during the period.

(f)            Total return at net asset value assuming all distributions reinvested.

(g)         Had the Investment Advisor and/or any of its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(h)         Not annualized.

(i)             The benefits derived from custody credits had an impact of less than 0.01%.

(j)             Annualized.

 

See Accompanying Notes to Financial Statements.

25



Notes to Financial Statements – Columbia Money Market Funds (August 31, 2006)

Note 1. Organization

Columbia Funds Series Trust (the “Trust”), is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment company. Information presented in these financial statements pertains to Columbia Connecticut Municipal Reserves and Columbia Massachusetts Municipal Reserves (each a “Fund” and collectively, the “Funds”).

Effective August 16, 2006, the Board of Trustees of the Funds approved a proposal to change the year-end of the Funds from May 31 to August 31. Accordingly, the accompanying financial statements pertain to the period from June 1, 2006 to August 31, 2006.

Investment Goals

Columbia Connecticut Municipal Reserves seeks to provide current income exempt from federal income tax and the Connecticut state income tax on individuals, trusts and estates. Columbia Massachusetts Municipal Reserves seeks to provide current income exempt from federal income tax and the income tax imposed by the Commonwealth of Massachusetts. Both Funds seek relative stability of principal and liquidity.

Fund Shares

Each Fund may issue an unlimited number of shares and offers two series of shares: Retail A Shares and G-Trust Shares. Both series of shares are offered continuously at net asset value. Each series has its own expense structure. Retail A Shares are only available to existing shareholders of Retail A Shares.

Note 2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.

Security Valuation

Securities in the Funds are valued utilizing the amortized cost valuation method permitted in accordance with Rule 2a-7 under the 1940 Act provided certain conditions are met. This method involves valuing a portfolio security initially at its cost and thereafter assuming a constant accretion or amortization to maturity of any discount or premium, respectively.

Security Transactions

Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

Income Recognition

Interest income is recorded on an accrual basis. Premium and discount are amortized and accreted, respectively, on all debt securities. Dividend income is recorded on the ex-date.

Expenses

General expenses of the Trust are allocated to the Funds based upon their relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses are allocated to separate classes of shares based upon their relative net asset value on the date the expenses are incurred. Expenses directly attributable to a Fund or class of shares are charged directly to such Fund or class.

Determination of Net Asset Value

All income, expenses (other than class-specific expenses, as shown on the Statements of Operations) and realized and unrealized gains (losses) are allocated to each class of a Fund on a daily basis for purposes of determining the net asset value of each class. Income and expenses are allocated to each class based on the settled shares method, while realized and unrealized gains (losses) are allocated based on the relative net assets of each class.

Federal Income Tax Status

Each Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its tax-exempt or taxable income, if any, for its tax year,

26



and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Indemnification

In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Trust’s organizational documents, the Trustees and Officers of the Trust are indemnified against certain liabilities that may arise out of their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be minimal.

Distributions to Shareholders

Distributions from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually after the fiscal year in which the capital gains were earned or more frequently to seek to maintain a net asset value of $1.00 per share, unless offset by any available capital loss carryforward. Distributions to shareholders are recorded on the ex-dividend date. Income distributions and capital gain distributions on a Fund level are determined in accordance with federal income tax regulations which may differ from GAAP.

Note 3. Federal Tax Information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the period ended August 31, 2006, permanent book and tax basis differences resulting primarily from differing treatments for distribution reclassifications and redemption based payments treated as dividends paid deduction were identified and reclassified among the components of the Funds’ net assets as follows:

 

 

Undistributed
Net Investment
Income

 

Accumulated
Net Realized
Gain/Loss

 

Paid-In
Capital

 

Columbia Connecticut Municipal Reserves

 

$

—

 

$

—

 

$

—

 

Columbia Massachusetts Municipal Reserves

 

360

 

(360

)

—

 

Net investment income and net realized gains (losses), as disclosed in the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the period ended August 31, 2006 and the years ended May 31, 2006 and May 31, 2005 was as follows:

August 31, 2006

 

 

Tax-Exempt
Income

 

Ordinary
Income*

 

Long-Term
Capital Gains

 

Columbia Connecticut Municipal Reserves

 

$

988,375

 

$

14,049

 

$

—

 

Columbia Massachusetts Municipal Reserves

 

1,912,541

 

11,899

 

—

 

 

May 31, 2006

 

 

Tax-Exempt
Income

 

Long-Term
Capital Gains

 

Columbia Connecticut Municipal Reserves

 

$

2,691,880

 

$

—

 

Columbia Massachusetts Municipal Reserves

 

4,572,099

 

1,440

 

 

May 31, 2005

 

 

Tax-Exempt
Income

 

Long-Term
Capital Gains

 

Columbia Connecticut Municipal Reserves

 

$

2,026,485

 

$

—

 

Columbia Massachusetts Municipal Reserves

 

3,101,671

 

—

 

 

*                 For tax purposes, short term capital gain distributions, if any, are considered ordinary income distributions.

27



As of August 31, 2006, the components of distributable earnings on a tax basis were as follows:

 

 

Undistributed
Tax-Exempt
Income

 

Undistributed
Ordinary
Income

 

Columbia Connecticut Municipal Reserves

 

$

322,659

 

$

—

 

Columbia Massachusetts Municipal Reserves

 

522,926

 

—

 

The following capital loss carryforwards for Columbia Connecticut Municipal Reserves may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

Year of Expiration

 

Capital Loss Carryforward

 

08/31/13

 

$

440

 

08/31/14

 

5,445

 

During the period ended August 31, 2006, neither of the funds utilized capital loss carryforwards.

In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (the “Interpretation”). This Interpretation is effective for fiscal years beginning after December 15, 2006 and is to be applied to tax positions upon initial adoption. This Interpretation prescribes a minimum recognition threshold and measurement method for the financial statement recognition of tax positions taken or expected to be taken in a tax return and also requires certain expanded disclosures. Management has recently begun to evaluate the application of this Interpretation to the Funds and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on each Fund’s financial statements.

Note 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia Management Advisors, LLC (“Columbia”), an indirect, wholly-owned subsidiary of Bank of America Corporation (“BOA”), is the investment advisor to the Funds. Columbia receives an investment advisory fee, calculated daily and payable monthly at the annual rate of 0.15% of each Fund’s average daily net assets.

Administration Fee

Columbia provides administrative and other services to the Funds. Under the administration agreement, Columbia is entitled to receive an administration fee, calculated daily and payable monthly, at the annual rate of 0.10% of each Fund’s average daily net assets less the fees payable by the Funds under the pricing and bookkeeping agreement (described below).

Pricing and Bookkeeping Fees

Columbia is responsible for providing pricing and bookkeeping services to each Fund under a pricing and bookkeeping agreement. Under a separate agreement (the “Outsourcing Agreement”), Columbia has delegated those functions to State Street Corporation (“State Street”). As a result, Columbia pays State Street the total fees payable under the pricing and bookkeeping agreement.

Under its pricing and bookkeeping agreement with the Funds, Columbia receives from each Fund an annual fee of $38,000 paid monthly plus an additional monthly fee based on the level of average daily net assets for the month; provided that during any 12-month period, the aggregate fee (exclusive of out-of-pocket expenses and charges) for a Fund shall not exceed $140,000. The Funds also reimburse Columbia and State Street for out-of-pocket expenses and charges, including fees payable to third parties for pricing each Fund’s portfolio securities and direct internal costs incurred by Columbia in connection with providing fund accounting oversight and monitoring and certain other services.

Transfer Agent Fee

Columbia Management Services, Inc. (the “Transfer Agent”), an affiliate of Columbia and an indirect, wholly-owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with Boston Financial Data Services (“BFDS”) to serve as sub-transfer agent. The Transfer Agent is entitled to receive a fee for its services, paid monthly, at the annual rate of $17.00 per open account plus sub-transfer agent fees (exclusive of BFDS fees) calculated based on assets held in omnibus accounts and intended to recover the cost of payments to third parties for services to those accounts. The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and

28



account transcript fees due the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

For the period ended August 31, 2006, the annualized effective transfer agent fee rates, inclusive of out-of-pocket fees, for Columbia Connecticut Municipal Reserves and Columbia Massachusetts Municipal Reserves were 0.002% and 0.001%, respectively, of each Fund’s average daily net assets.

Shareholder Servicing Fee

Columbia Management Distributors, Inc. (the “Distributor”), a subsidiary of Columbia and an indirect, wholly-owned subsidiary of BOA, is the exclusive distributor of the Funds’ shares.

The Trust has adopted a shareholder services plan (the “Servicing Plan”) with respect to the Retail A Shares of the Funds. The Servicing Plan provides compensation to institutions which provide administrative and support services to their customers who beneficially own Retail A Shares. Payments under the Servicing Plan are equal to the annual rates of 0.10% and 0.08% for Columbia Connecticut Municipal Reserves and Columbia Massachusetts Municipal Reserves, respectively.

Expense Limits and Fee Reimbursements

Columbia has contractually agreed to waive fees and/or reimburse expenses through December 31, 2007 to the extent that total expenses (excluding interest expense and shareholder servicing fees) exceed the annual rate of 0.20% of each Fund’s average daily net assets.

Custody Credits

Each Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statements of Operations. The Funds could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if they had not entered into such an agreement.

Fees Paid to Officers and Trustees

All officers of the Funds, with the exception of the Funds’ Chief Compliance Officer, are employees of Columbia or its affiliates and receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The Funds, along with other affiliated funds, pay their pro-rata share of the expenses associated with the Chief Compliance Officer. Each Fund’s expenses for the Chief Compliance Officer will not exceed $15,000 per year.

The Trust’s eligible Trustees may participate in a non-qualified deferred compensation plan which may be terminated at any time. All benefits provided under this plan are unfunded and any payments to plan participants are paid solely out of the Funds’ assets. Income earned on the plan participant’s deferral account is based on the rate of return of the eligible mutual funds selected by the participants or, if no funds are selected, on the rate of return of Columbia Treasury Reserves, another portfolio of the Trust. The expense for the deferred compensation plan is included in “Trustees’ fees” in the Statements of Operations. The liability for the deferred compensation plan is included in “Trustees’ fees” in the Statements of Assets and Liabilities.

In addition, the Funds assumed the assets and liabilities of the Galaxy deferred compensation plan. The Galaxy deferred compensation plan may be terminated at any time. Obligations of the plan will be paid solely out of the Funds’ assets.

Note 5. Shares of Beneficial Interest

As of August 31, 2006, the Funds had shareholders whose shares were beneficially owned by participant accounts over which BOA and/or its affiliates had either sole or joint investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The percentage of shares of beneficial interest outstanding held therein are as follows:

Fund

 

% of Shares
Outstanding
Held

 

Columbia Connecticut Municipal Reserves

 

83.1

%

Columbia Massachusetts Municipal Reserves

 

69.6

 

As of August 31, 2006, several of the Funds also had shareholders that held greater than 5% of the shares

29



outstanding over which BOA and/or its affiliates did not have investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The number of such accounts and the percentage of shares of beneficial interest outstanding held therein are as follows:

Fund

 

Number of
Shareholders

 

% of Shares
Outstanding
Held

 

Columbia Connecticut Municipal Reserves

 

2

 

15.1

%

Columbia Massachusetts Municipal Reserves

 

1

 

28.3

 

Note 6. Disclosure of Significant Risks and Contingencies

Columbia Connecticut Municipal Reserves and Columbia Massachusetts Municipal Reserves invest primarily in debt obligations issued, respectively, by the State of Connecticut and the Commonwealth of Massachusetts, and their respective political subdivisions, agencies and public authorities to obtain funds for various purposes. The Funds are more susceptible to economic and political factors adversely affecting issuers of each respective state’s specific municipal securities than are municipal bond funds that are not concentrated to the same extent in these issuers.

The Funds each hold certain investments that are insured by private insurers who guarantee the payment of principal and interest in the event of default, or that are supported by a letter of credit. Each of the Fund’s insurers is rated Aaa by Moody’s Investor Services Inc. At August 31, 2006, investments supported by private issuers that represent greater than 5% of the total investments of each Fund are as follows:

Columbia Connecticut Municipal Reserves

 

 

 

Ambac Assurance Corp.

 

9.5

%

Financial Guaranty Insurance Co.

 

8.8

 

SunTrust Bank

 

8.7

 

MBIA Insurance Corp.

 

6.9

 

KBC Bank N.V.

 

5.1

 

 

 

 

 

Columbia Massachusetts Municipal Reserves

 

 

 

MBIA Insurance Corp.

 

9.5

%

Citizens Bank of Massachusetts

 

9.5

 

Ambac Assurance Corp.

 

9.3

 

Financial Guaranty Insurance Co.

 

8.7

 

Financial Security Assurance, Inc.

 

6.6

 

State Street Bank & Trust Co.

 

5.4

 

Legal Proceedings

On February 9, 2005, Banc of America Capital Management, LLC (“BACAP” now known as Columbia Management Advisors LLC) and BACAP Distributors, LLC (“BACAP Distributors” now known as Columbia Management Distributors, Inc.) entered into an Assurance of Discontinuance with the New York Attorney General (the “NYAG Settlement”) and consented to the entry of a cease-and-desist order by the U.S. Securities and Exchange Commission (the “SEC”) (the “SEC Order”). A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005 and a copy of the SEC Order is available on the SEC’s website.

Under the terms of the SEC Order, BACAP, BACAP Distributors, and their affiliate, Banc of America Securities, LLC (“BAS”) agreed, among other things, (1) to pay $250 million in disgorgement and $125 million in civil money penalties; (2) to cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; (3) to undertake various remedial measures to ensure compliance with the federal securities laws related to certain mutual fund trading practices; and (4) to retain an independent consultant to review their applicable supervisory, compliance, control and other policies and procedures. The NYAG Settlement also requires, among other things, BACAP and BACAP Distributors, along with Columbia Management Advisors, Inc. and Columbia Funds Distributors, Inc., the investment advisor to and distributor of the Columbia Funds, respectively, to reduce Columbia Funds, Nations Funds and other mutual funds management fees collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Consistent with the terms of the settlements, the Nations Funds Boards have an independent Chairman, are comprised of at least 75% independent trustees and have engaged a senior officer with a wide range of compliance and oversight responsibilities.

30



Pursuant to the procedures set forth in the SEC Order, $375 million will be distributed in accordance with a distribution plan developed by an independent distribution consultant and approved by the SEC. The independent distribution consultant has been in consultation with the staff of the SEC, and has submitted a proposed plan of distribution. The SEC has not yet approved a final plan of distribution.

As a result of these matters or any adverse publicity or other developments resulting from them, including lawsuits brought by shareholders of the affected Nations Funds, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the Nations Funds.

Civil Litigation

In connection with the events that resulted in the NYAG Settlement and SEC Order, various parties filed suits against Bank of America Corporation and certain of its affiliates, including BACAP and BACAP Distributors (collectively “BAC”), Nations Funds Trust and its Board of Trustees. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against several other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the “MDL”). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Nations Funds Trust, the Trustees, BAC and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Nations Funds Trust against BAC and others that asserts claims under federal securities laws and state common law. Nations Funds Trust is a nominal defendant in this action.

On February 25, 2005, BAC and other defendants filed motions to dismiss the claims in the pending cases.

On December 15, 2005, BAC and others entered into a Stipulation of Settlement of the direct and derivative claims brought on behalf of the Nations Funds shareholders. Among other contingencies, the settlement is contingent upon a minimum threshold amount being received by the Nations Fund shareholders and/or the Nations Funds mutual funds from the previously established regulatory settlement fund. The settlement is subject to court approval. If the settlement is approved, BAC would pay settlement administration costs and fees to plaintiffs’ counsel as approved by the court. The stipulation has not yet been presented to the court for preliminary approval.

Separately, a putative class action (Reinke v. Bank of America, N.A., et al.) was filed against Nations Funds Trust and others on December 16, 2004, in the United States District Court for the Eastern District of Missouri relating to the conversion of common trust funds and the investment of assets held in fiduciary accounts in the Funds. The Court granted Nations Funds Trust’s motion to dismiss this action on December 16, 2005. On December 28, 2005, the same plaintiff’s attorneys filed another putative class action based on the same facts (Siepel v. Bank of America, N.A., et al.) against Columbia Funds Series Trust (as successor to Nations Funds Trust) and others in the United States District Court for the Eastern District of Missouri. Nations Funds Trust filed a motion to dismiss this complaint on May 19, 2006, but Plaintiffs responded by filing an Amended Complaint that added claims under the federal securities laws. Nations Funds Trust filed a motion to dismiss the Amended Complaint, which is currently pending. On February 22, 2006, another putative class action based on the same facts (Luleff v. Bank of America, N.A. et al.) was filed in the United States District Court for the Southern District of New York against Columbia Funds Series Trust, William Carmichael and others. Columbia Funds Series Trust and William Carmichael filed motions to dismiss this complaint on July 28, 2006, but on September 5, 2006, the plaintiffs filed an Amended Complaint. The Funds, William Carmichael and others filed a motion to dismiss the Amended Complaint on October 6, 2006, which is currently pending.

Separately, a putative class action—Mehta v AIG Sun America Life Assurance Company—involving fair value pricing of mutual funds was filed in Illinois State Court, subsequently removed to federal court and then transferred to the United States District Court for the District of Maryland for coordinated or consolidated handling in the MDL. AIG SunAmerica Life Assurance Company has made demand upon Nations Separate Account Trust (as successor to Nations Annuity Trust) and BACAP (as successor to Banc of America Advisors, Inc.) for indemnification pursuant to the terms of a Fund Participation Agreement. On June 1, 2006, the court granted a motion to dismiss this case because it was preempted by the Securities Litigation Uniform Standards Act. That dismissal has been appealed to the United States Court of Appeals for the Fourth Circuit.

31



Report of Independent Registered Public Accounting Firm

To the Trustees and Shareholders of Columbia Connecticut Municipal Reserves and Columbia Massachusetts Municipal Reserves

In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Connecticut Municipal Reserves and Columbia Massachusetts Municipal Reserves (constituting part of Columbia Funds Series Trust, hereafter collectively referred to as the “Funds”) at August 31, 2006, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

32



Unaudited Information – Columbia Money Market Funds

Federal Income Tax Information

Each Fund designates the maximum amount allowable as qualified interest income for non-U.S. shareholders, as provided in the American Jobs Creation Act of 2004.

For the fiscal year ended August 31, 2006, the following percentage of distributions made from net investment income of the Funds are exempt for Federal income tax purposes. A portion of the income may also be subject to federal alternative minimum tax.

Fund

 

Federal Exempt
Percentage

 

Columbia Connecticut Municipal Reserves

 

99.0

%

Columbia Massachusetts Municipal Reserves

 

99.0

%

 

33



Fund Governance

Trustees

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in the Columbia Funds Complex, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of portfolios overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Disinterested Trustees

Name, address and age, Position
with funds, Year first elected or
appointed to office

 

Principal occupation(s) during past five years, Number of portfolios in Columbia Funds
Complex overseen by trustee/director, Other directorships held

 

 

 

Edward J. Boudreau (Born 1944)
c/o Columbia Management
Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)

 


Managing Director, E.J. Boudreau & Associates (consulting), through present.

 

 

 

William P. Carmichael (Born 1943)
c/o Columbia Management
Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 1999)

 


Trustee and Chairman of the Board; retired.

 

 

 

William A. Hawkins (Born 1942)
c/o Columbia Management
Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)

 


President, Retail Banking-IndyMac Bancorp, Inc., from September 199 to August 2003.

 

 

 

R. Glenn Hilliard (Born 1943)
c/o Columbia Management
Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)

 


Chairman and Chief Executive Officer, Hilliard Group LLC (investing and consulting), from April 2003 through current, Chairman and Chief Executive Officer, ING Americas, from 1999 to April 2003; and Non-Executive Chairman, Conseco, Inc. (insurance), from September 2004 through current.

 

 

 

Minor M. Shaw (Born 1947)
c/o Columbia Management
Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2003)

 


President, Micco Corporation and Mickel Investment Group.

 

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-426-3750.

34



Fund Governance

Officers

Officers

Name, address and Year of Birth,
Position with Columbia funds, Year
first elected or appointed to office

 

Principal occupation(s) during past five years

 

 

 

Christopher L. Wilson (Born 1957)
One Financial Center
Boston, MA 02111
President (since 2004)

 


Head of Mutual Funds since August, 2004 and Managing Director of the Advisor since September, 2005; President and Chief Executive Officer, CDC IXIS Asset Management Services, Inc. (investment management) from September, 1998 to August, 2004.

 

 

 

James R. Bordewick, Jr. (Born 1959)
One Financial Center
Boston, MA 02111
Senior Vice President, Secretary
and Chief Legal Officer (since 2006)

 


Associate General Counsel, Bank of America since April, 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April, 2005.

 

 

 

J. Kevin Connaughton (Born 1964)
One Financial Center
Boston, MA 02111
Senior Vice President,
Chief Financial Officer and
Treasurer (since 2000)

 


Managing Director of the Advisor since February, 1998.

 

 

 

Mary Joan Hoene (Born 1949)
100 Federal Street
Boston, MA 02110
Senior Vice President and Chief
Compliance Officer (since 2004)

 


Senior Vice President and Chief Compliance Officer of various funds in the Columbia Fund Complex; Partner, Carter, Ledyard & Milburn LLP (law firm) from January, 2001 to August, 2004.

 

 

 

Michael G. Clarke (Born 1969)
One Financial Center
Boston, MA 02111
Chief Accounting Officer and
Assistant Treasurer (since 2004)

 


Director of Fund Administration since January, 2006; Managing Director of Columbia Management Advisors, LLC September, 2004 to December, 2005; Vice President Fund Administration June, 2002 to September, 2004. Vice President Product Strategy and Development from February, 2001 to June, 2002.

 

 

 

Jeffrey R. Coleman (Born 1969)
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)

 


Director of Fund Administration since January, 2006; Fund Controller from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August, 2000 to September, 2004.

 

 

 

Joseph F. DiMaria (Born 1968)
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)

 


Director of Fund Administration since January, 2006; Head of Tax/Compliance and Assistant Treasurer from November, 2004 to December, 2005; Director of Trustee Administration (Sarbanes-Oxley) from May, 2003 to October, 2004; Senior Audit Manager, PricewaterhouseCoopers (independent registered public accounting firm) from July, 2000 to April, 2003.

 

35



 

Name, address and Year of Birth,
Position with Columbia funds, Year
first elected or appointed to office

 

Principal occupation(s) during past five years

 

 

 

Ty S. Edwards (Born 1966)
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)

 


Director of Fund Administration since January, 2006; Vice President of the Advisor from July, 2002 to December, 2005; Assistant Vice president and Director, State Street Corporation (financial services) prior to 2002.

 

 

 

Barry S. Vallan (Born 1969)
One Financial Center
Boston, MA 02111
Controller (since 2006)

 


Vice President-Fund Treasury of the Advisor since October, 2004; Vice President-Trustee Reporting from April, 2002 to October, 2004; Management Consultant, PricewaterhouseCoopers (independent registered public accounting firm) prior to October, 2002.

 

36



Columbia Funds

Growth Funds

 

Columbia Acorn Fund
Columbia Acorn Select
Columbia Acorn USA
Columbia Large Cap Growth Fund
Columbia Marsico 21st Century Fund
Columbia Marsico Focused Equities Fund
Columbia Marsico Growth Fund
Columbia Mid Cap Growth Fund
Columbia Small Cap Growth Fund I
Columbia Small Cap Growth Fund II

 

 

 

Core Funds

 

Columbia Common Stock Fund
Columbia Large Cap Core Fund
Columbia Small Cap Core Fund

 

 

 

Value Funds

 

Columbia Disciplined Value Fund
Columbia Dividend Income Fund
Columbia Large Cap Value Fund
Columbia Mid Cap Value Fund
Columbia Small Cap Value Fund I
Columbia Small Cap Value Fund II
Columbia Strategic Investor Fund

 

 

 

Asset Allocation/Hybrid Funds

 

Columbia Asset Allocation Fund
Columbia Asset Allocation Fund II
Columbia Balanced Fund
Columbia Liberty Fund
Columbia LifeGoalTM Balanced Growth Portfolio
Columbia LifeGoalTM Growth Portfolio
Columbia LifeGoalTM Income Portfolio
Columbia LifeGoalTM Income and Growth Portfolio
Columbia Masters Global Equity Portfolio
Columbia Masters Heritage Portfolio
Columbia Masters International Equity Portfolio
Columbia Thermostat Fund

 

 

 

Index Funds

 

Columbia Large Cap Enhanced Core Fund
Columbia Large Cap Index Fund
Columbia Mid Cap Index Fund
Columbia Small Cap Index Fund

 

 

 

Specialty Funds

 

Columbia Convertible Securities Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund

 

 

 

Global/International Funds

 

Columbia Acorn International
Columbia Acorn International Select
Columbia Global Value Fund
Columbia Greater China Fund
Columbia International Stock Fund
Columbia International Value Fund
Columbia Marsico International Opportunities Fund
Columbia Multi-Advisor International Equity Fund
Columbia World Equity Fund

 

37



 

Taxable Bond Funds

 

Columbia Conservative High Yield Fund
Columbia Core Bond Fund
Columbia Federal Securities Fund
Columbia High Income Fund
Columbia High Yield Opportunity Fund
Columbia Income Fund
Columbia Intermediate Bond Fund
Columbia Short Term Bond Fund
Columbia Strategic Income Fund
Columbia Total Return Bond Fund
Columbia U.S. Treasury Index Fund

 

 

 

Tax-Exempt Bond Funds

 

Columbia California Tax-Exempt Fund
Columbia California Intermediate Municipal Bond Fund
Columbia Connecticut Tax-Exempt Fund
Columbia Connecticut Intermediate Municipal Bond Fund
Columbia Georgia Intermediate Municipal Bond Fund
Columbia High Yield Municipal Fund
Columbia Intermediate Municipal Bond Fund
Columbia Massachusetts Intermediate Municipal Bond Fund
Columbia Massachusetts Tax-Exempt Fund
Columbia Maryland Intermediate Municipal Bond Fund
Columbia North Carolina Intermediate Municipal Bond Fund
Columbia New York Tax-Exempt Fund
Columbia New Jersey Intermediate Municipal Bond Fund
Columbia New York Intermediate Municipal Bond Fund
Columbia Oregon Intermediate Municipal Bond Fund
Columbia Rhode Island Intermediate Municipal Bond Fund
Columbia South Carolina Intermediate Municipal Bond Fund
Columbia Short Term Municipal Bond Fund
Columbia Tax-Exempt Fund
Columbia Virginia Intermediate Municipal Bond Fund

 

 

 

Money Market Funds

 

Columbia California Tax-Exempt Reserves
Columbia Cash Reserves
Columbia Connecticut Municipal Reserves
Columbia Government Plus Reserves
Columbia Government Reserves
Columbia Massachusetts Municipal Reserves
Columbia Money Market Reserves
Columbia Municipal Reserves
Columbia New York Tax-Exempt Reserves
Columbia Prime Reserves
Columbia Tax-Exempt Reserves
Columbia Treasury Reserves

 

For complete product information on any Columbia fund, visit our website at www.columbiafunds.com.

Columbia Management Group, LLC (“Columbia Management”) is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of NASD, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

38



Important Information About This Report

Columbia Money Market Funds

The funds mail one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you.

This report has been prepared for shareholders of Columbia Money Market Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of each fund and with the most recent copy of the Columbia Funds Performance Update.

A description of the policies and procedures that each fund uses to determine how to vote proxies and a copy of each fund’s voting records are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission’s website at www.sec.gov, and (iii) without charge, upon request, by calling 800-368-0346. Information regarding how each fund voted proxies relating to fund securities during the 12-month period ended June 30 is available from the SEC’s website. Information regarding how each fund voted proxies relating to portfolio securities is also available from the funds’ website.

Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Transfer Agent

Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081
800.345.6611

Distributor

Columbia Management
Distributors, Inc.
One Financial Center
Boston, MA 02111

Investment Advisor

Columbia Management Advisors, LLC
100 Federal Street
Boston, MA 02110

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP
125 High Street
Boston, MA 02110

Columbia Management Group, LLC (“Columbia Management”) is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of NASD, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

39



[THIS PAGE INTENTIONALLY LEFT BLANK]



 

Help your fund reduce printing and postage costs! Elect to get your shareholder reports by electronic delivery. With Columbia’s eDelivery program, you receive an e-mail message when your shareholder report becomes available online. If your fund account is registered with Columbia funds, you can sign up quickly and easily on our website at www.columbiafunds. com.

 

Please note – if you own your fund shares through a financial institution, contact the institution to see if it offers electronic delivery. If you own your fund shares through a retirement plan, electronic delivery may not be available to you.

 

Columbia Money Market Funds
Annual Report - August 31, 2006

 

PRSRT STD
U.S. Postage
PAID
Holliston, MA
Permit NO. 20

 

 

 

 

GRAPHIC

 

 

©2006 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621
800-345-6611 www.columbiafunds.com

SHC - 42/113674 (0806) 06/30568



GRAPHIC

Columbia Money Market Funds

Annual Report – August 31, 2006

·                  Columbia Government Plus Reserves

·      Columbia Prime Reserves

NOT FDIC INSURED

May Lose Value

 

 

No Bank Guarantee

 

 



Table of contents

Columbia Government Plus Reserves

2

 

 

Columbia Prime Reserves

5

 

 

Investment Portfolios

9

 

 

Statements of Assets and Liabilities

18

 

 

Statements of Operations

20

 

 

Statements of Changes in Net Assets

22

 

 

Financial Highlights

26

 

 

Notes to Financial Statements

38

 

 

Report of Independent Registered Public Accounting Firm

46

 

 

Fund Governance

47

 

 

Columbia Funds

50

 

 

Important Information about This Report

52

 

An Investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, It is possible to lose money by investing in money market mutual funds.

The views expressed in the President’s Message and Portfolio Managers’ Reports reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Fund. References to specific company securities should not be construed as a recommendation or investment advice.

President’s Message – Columbia Money Market Funds

GRAPHIC

Dear Shareholder:

We appreciate your continued confidence in the Columbia Funds. Many of the product changes and other initiatives we have told you about in the prior 18 months have been fully completed. The results have been as we expected — a more streamlined product offering with lower expense ratios for the majority of our funds. When coupled with the improvements in our investment process, we believe Columbia Management is well positioned to provide you with an array of products to meet your investment needs.

We have also made improvements to our servicing platform. Website enhancements and improved account access at www.columbiafunds.com and a recently upgraded automated phone system available at 800.345.6611 provide you with everything you need to manage your relationship with Columbia 24 hours a day, 7 days a week. The new phone system is equipped with an advanced speech recognition system that allows callers to interact with the system using natural spoken commands.

After secure login, you can buy, sell or exchange funds either on-line or over the phone. (Buying shares requires that a link has been established between your bank account and Columbia Funds account). Up to-date performance and pricing information is also available on-line or over the phone. We will continue to look for ways to expand capabilities for you in the future.

So, as you read the enclosed portfolio manager commentary on your fund and what has driven its performance results, be assured that we will not rest on the recent success of our product and service enhancements. We will continue to seek ways to provide you with better financial solutions and consistent, high-quality results. We value your relationship with us and will work hard to earn your continued trust.

Sincerely,

GRAPHIC

Christopher L. Wilson

President, Columbia Funds



Economic Update – Columbia Money Market Funds

The US economy grew at a solid but uneven pace during the 10-month period(1) that began November 1, 2005 and ended August 31, 2006. Gross domestic product (GDP) expanded at an estimated annualized rate of approximately 3.6% as job growth provided support for consumer spending. Rising profits freed up cash for business spending, which picked up during the period. Personal income rose.

Yet, these overall measures masked a host of challenges, which led to considerable volatility during the 10-month period. Hurricanes Katrina and Rita, which devastated the Gulf Coast late last summer, continued to disrupt the flow of energy products for months. Consumer confidence plummeted in the wake of the storms, and economic growth fell to a mere 1.8% in the fourth quarter of 2005.

The economy regained considerable momentum early in 2006. GDP growth rebounded to 5.6%. Job growth resumed at a healthy pace, and consumer confidence rebounded. Yet, the once strong housing market showed signs of serious slowing. Inflation edged higher as record-high energy prices took a bigger bite out of household budgets. Consumer spending growth moved lower in the final months of the period, and economic growth slowed to a pace of approximately 2.5%. After 17 consecutive short-term interest rate hikes, the Fed took no action in its August meeting. The federal funds rate, a key short-term lending rate, ended the period at 5.25%.

Bond market maintained a positive return

The US bond market delivered modest, but positive returns, as interest rates edged lower for the last two months of the period. The yield on the 10-year US Treasury note, a bellwether for the bond market, ended the period at 4.74%, higher than where it started. In this environment, the Lehman Brothers U.S. Aggregate Bond Index returned 3.59% for the 10-month period. High-yield bonds led the fixed-income markets as investors appeared to feel more comfortable with risk. The Merrill Lynch U.S. High Yield, Cash Pay Index returned 7.28%.

Stocks moved higher

Despite bouts of volatility, the S&P 500 Index — a broad measure of large company stock market performance — returned 9.84% for this reporting period. Small- and mid-cap stocks did better than large-cap stocks. The Russell 2000 Index returned 12.51%, while the Russell Midcap Index returned 10.95%.(2) Energy stocks and real estate investment trusts led the US stock market. However, energy pulled back in the final months of the period as commodity prices retreated.

(1)   Effective August 16, 2006 the Fund changed its fiscal year end from October 31 to August 31.

(2)   The Russell Midcap Index is an index that measures the performance of the 800 smallest companies in the Russell 1000 Index, as ranked by total market capitalization. Unlike the funds, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index.

Summary

For the 10-month period ended August 31, 2006

·      Investment-grade bonds rebounded in the final months of the period, lifting the Lehman Brothers U.S. Aggregate Bond Index to a positive return. High-yield bonds led the fixed-income markets, as measured by the Merrill Lynch U.S. High Yield, Cash Pay Index.

 

Lehman Index

Merrill Lynch Index

 

 

 

 

 

 

 

 

·      Despite volatility, the broad stock market, as measured by the S&P 500 Index, returned 9.84%. Small cap stocks, as measured by the Russell 2000 Index, outperformed large cap stocks.

S&P Index

Russell Index

 

 

 

 

 

 

 

 

The Lehman Brothers U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity.

The Merrill Lynch U.S. High Yield, Cash Pay Index tracks the performance of non-investment-grade corporate bonds.

The S&P 500 Index tracks the performance of 500 widely held, large-capitalization US stocks.

The Russell 2000 Index tracks the performance of the 2,000 smallest of the 3,000 largest US companies based on market capitalization.

Unlike the funds, indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index.

1



Understanding Your Expenses – Columbia Government Plus Reserves

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

·      For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

·      For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.     Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.     In the section of the table below titled “Expenses paid during the period,” locate the amount for your share class. You will find this number in the column labeled “actual.” Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund’s expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “actual” column is calculated using the fund’s actual operating expenses and total return for the period. The amount listed in the “hypothetical” column assumes that the return each year is 5% before expenses and is calculated based on the fund’s actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

03/01/06 – 08/31/06

 

 

Account value at the
beginning of the period ($)

 

Account value at the
end of the period ($)

 

Expenses paid
during the period ($)

 

Fund’s annualized
expense ratio (%)

 

 

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual

 

Capital Class

 

1,000.00

 

1,000.00

 

1,024.30

 

1,024.20

 

1.02

 

1.02

 

0.20

 

Liquidity Class

 

1,000.00

 

1,000.00

 

1,023.39

 

1,023.44

 

1.79

 

1.79

 

0.35

 

Adviser Class

 

1,000.00

 

1,000.00

 

1,022.99

 

1,022.94

 

2.29

 

2.29

 

0.45

 

Institutional Class

 

1,000.00

 

1,000.00

 

1,024.10

 

1,024.00

 

1.22

 

1.22

 

0.24

 

Retail A

 

1,000.00

 

1,000.00

 

1,023.79

 

1,023.69

 

1.53

 

1.53

 

0.30

 

G-Trust

 

1,000.00

 

1,000.00

 

1,024.30

 

1,024.20

 

1.02

 

1.02

 

0.20

 

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund’s most recent six-month period and divided by 365. Effective August 16, 2006 the Fund changed its fiscal year end from October 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided will not help you determine the relative total costs of owning shares of different portfolios. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees.

2



Portfolio Manager’s Report – Columbia Government Plus Reserves

The Board of Trustees for Columbia Government Plus Reserves has approved the change of the fund’s fiscal year end from October 31 to August 31. As a result, this report covers the 10-month period since the last annual report. The next report you receive will be for the six-month period from September 1, 2006 through February 28, 2007.

For the 10-month period ended August 31, 2006, Columbia Government Plus Reserves Capital class shares returned 3.81%. (The 7-day current yield as of 8/31/06 for Capital class shares was 5.15%. The 7-day current yield quotation more closely reflects the current earnings of the fund than the total return quotation.) The average return of the fund’s peer group, the Lipper Institutional U.S. Government Money Market Funds Category, was 3.62%.(1) By focusing the fund’s investments on extremely short-term securities and floating-rate notes, the fund was able to outperform the average return of its peer group.

As has been the case for more than two years now, the Federal Reserve Board (the Fed) set the tone for the money markets by placing steady upward pressure on the level of short-term interest rates. During this reporting period, the Fed raised the federal funds rate — a closely watched overnight lending rate for banks — from 4.00% to 5.25%. The Fed’s actions were spurred by concerns that inflation would result from the country’s robust economic growth. Even though core inflation has pushed slightly beyond the Fed’s comfort range, it elected not to raise rates at its August meeting — the first time in more than two years that a Fed meeting did not result in a rate hike.

In response to rising short-term interest rates, the fund maintained a consistent position in floating-rate notes, which accounted for roughly 40% of total assets throughout the period. Another 25% of the fund was invested in overnight repurchase agreements, whereby the seller agrees to repurchase the securities at an agreed upon price. These investments provided a welcome alternative to longer-term agency securities, most of which traded at rich premiums throughout the period. With a significant percentage of total assets devoted to extremely short-term instruments, the fund’s yield was able to track higher — and quickly — with the Fed’s rate increases. With the remainder of the portfolio, we maintained a weighted average maturity under 45 days for most of the period.

Looking ahead

We anticipate that the Fed’s actions will be more difficult to anticipate going forward than they were under former chairman Greenspan, as different camps regarding inflation appear to have emerged among the current Fed governors. Until we see evidence of a dramatic slowdown in the economy and talk of bringing short-term rates down again, we do not plan to make any significant changes to the fund’s positioning.

(1)   Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds.

GRAPHIC

3.81%
Capital Shares

 

 

GRAPHIC

3.62%
Lipper Institutional U.S. Government Money Market Funds Category

 

3



Fund Profile – Columbia Government Plus Reserves

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds.

Summary

·      For the 10-month period ended August 31, 2006, the fund’s Capital class shares returned 3.81%.

·      The fund’s return was above average within the money-market fund universe.

·      An emphasis on floating-rate notes and a short maturity profile helped the fund’s relative performance.

Portfolio Management

Craig Weisenberger has managed or co-managed Columbia Government Plus Reserves since November 2005 and has been with the advisor or its predecessors since 1999.

4



Understanding Your Expenses – Columbia Prime Reserves

As a fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, Rule 12b-1 fees and other fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund’s expenses by share class

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors in each share class during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “actual” column is calculated using the fund’s actual operating expenses and total return for the period. The amount listed in the “hypothetical” column assumes that the return each year is 5% before expenses and is calculated based on the fund’s actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

·      For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at www.columbiafunds.com or by calling Shareholder Services at 800.345.6611.

·      For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.     Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.     In the section of the table below titled “Expenses paid during the period,” locate the amount for your share class. You will find this number in the column labeled “actual.” Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

03/01/06 – 08/31/06

 

 

Account value at the
beginning of the period ($)

 

Account value at the
end of the period ($)

 

Expenses paid
during the period ($)

 

Fund’s annualized
expense ratio (%)

 

 

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual

 

Capital Class

 

1,000.00

 

1,000.00

 

1,025.10

 

1,024.40

 

0.82

 

0.82

 

0.16

 

Liquidity Class

 

1,000.00

 

1,000.00

 

1,022.79

 

1,023.64

 

1.58

 

1.58

 

0.31

 

Adviser Class

 

1,000.00

 

1,000.00

 

1,023.79

 

1,023.14

 

2.09

 

2.09

 

0.41

 

Institutional Class

 

1,000.00

 

1,000.00

 

1,024.90

 

1,024.20

 

1.02

 

1.02

 

0.20

 

 

Expenses paid during the period are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, then multiplied by the number of days in the fund’s most recent six-month period and divided by 365. Effective August 16, 2006 the Fund changed its fiscal year end from October 31 to August 31.

Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund and do not reflect any transaction costs, such as sales charges, redemption or exchange fees. Therefore, the hypothetical examples provided will not help you determine the relative total costs of owning shares of different portfolios. If these transaction costs were included, your costs would have been higher.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the continuing cost of investing in a fund and do not reflect any transactional costs, such as sales charges or redemption or exchange fees.

5



Portfolio Manager’s Report – Columbia Prime Reserves

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds.

GRAPHIC

3.94%
Capital Shares

 

 

GRAPHIC

3.64%
Lipper Institutional Money Market Funds Category

 

The Board of Trustees for Columbia Prime Reserves has approved the change of the fund’s fiscal year end from October 31 to August 31. As a result, this report covers the 10-month period since the last annual report. The next report you receive will be for the six-month period from September 1, 2006 through February 28, 2007.

For the 10-month period ended August 31, 2006, Columbia Prime Reserves Capital class shares returned 3.94%. (The 7-day current yield as of 8/31/06 for Capital class shares was 5.25%. The 7-day current yield quotation more closely reflects the current earnings of the fund than the total return quotation.) The fund’s return exceeded the 3.64% average return of the Lipper Institutional Money Market Funds Category(1) primarily because it kept maturities extremely short.

Fed action dominated money markets

In an effort to manage economic growth to a level that would avoid a spike in inflation, the Federal Reserve Board (the Fed) continued to raise the overnight lending rate up until the last month of the 10-month period covered by this report. The Fed raised the federal funds rate from 3.75% to 5.25% in six quarter-point increments between October 31, 2005, and August 31, 2006, holding the key short-term interest rate steady when it met in August. In this environment, the fund kept its weighted average maturity relatively short, which was a positive factor for performance.

At the beginning of the period, the fund’s weighted average maturity was 30 days or less. This short maturity was made possible by a high concentration in weekly variable rate demand notes (VDRNs). The interest rate on these notes resets every week, a feature that enabled the fund’s yield to adjust upward quickly as short-term rates rose. Late in the period, when it became clear that the Fed was contemplating a pause in its rate increases, we began to purchase securities at the long end of our maturity spectrum — 13 months, and the fund’s weighted average maturity lengthened to between 40 and 50 days.

In particular, we were willing to extend the fund’s maturities when the 12-month London Interbank Offer Rate, known as LIBOR, offered yields above our future target rate for fed funds. These “extension trades” were especially attractive in the early summer, when the LIBOR rate peaked at about 5.75%. By the end of the period, a rally in one-year securities reduced the LIBOR rate to approximately 5.40%

Looking ahead

We expect the Fed and its actions are likely to continue as the dominant theme in the money markets for the year ahead. As we become more confident that the Fed has reached the end of its cycle of higher rates, we plan to reposition the portfolio with a more “barbelled” structure, emphasizing securities at the long and short ends of the money market universe, with little or no exposure to intermediate maturities.

(1)   Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

6



Fund Profile – Columbia Prime Reserves

Summary

·      For the 10-month period ended August 31, 2006, the fund’s Capital class shares returned 3.94%.

·      The fund slightly outperformed its Lipper peer group during the period.

·      An emphasis on securities with extremely short maturities and floating-rate notes helped the fund achieve an above-average return.

Portfolio Management

Patrick Graham has managed or co-managed Columbia Prime Reserves since November 2005 and has been with the advisor or its predecessors since 2004.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiafunds.com for daily and most recent month-end performance updates.

An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds.

7



Financial Statements – Columbia Money Market Funds (August 31, 2006)

 

A guide to understanding your fund’s financial statements

 

 

 

Investment Portfolio

 

The investment portfolio details all of the fund’s holdings and their values as of the last day of the reporting period. Portfolio holdings are organized by type of asset, industry, country or geographic region (if applicable) to demonstrate areas of concentration and diversification.

 

 

 

Statements of Assets and Liabilities

 

This statement details the fund’s assets, liabilities, net assets and share price for each share class as of the last day of the reporting period. Net assets are calculated by subtracting all the fund’s liabilities (including any unpaid expenses) from the total of the fund’s investment and non-investment assets. The share price for each class is calculated by dividing net assets for that class by the number of shares outstanding in that class as of the last day of the reporting period.

 

 

 

Statements of Operations

 

This statement details income earned by the fund and the expenses accrued by the fund during the reporting period. The Statement of Operations also shows any net gain or loss the fund realized on the sales of its holdings during the period, as well as any unrealized gains or losses recognized over the period. The total of these results represents the fund’s net increase or decrease in net assets from operations.

 

 

 

Statements of Changes in Net Assets

 

This statement demonstrates how the fund’s net assets were affected by its operating results, distributions to shareholders and shareholder transactions (e.g., subscriptions, redemptions and dividend reinvestments) during the reporting period. The Statement of Changes in Net Assets also details changes in the number of shares outstanding.

 

 

 

Financial Highlights

 

The financial highlights demonstrate how the fund’s net asset value per share was affected by the fund’s operating results. The financial highlights table also discloses performance for each class of shares and certain key ratios (e.g., class expenses and net investment income as a percentage of average net assets).

 

 

 

Notes to Financial Statements

 

These notes disclose the organizational background of the fund, its significant accounting policies (including those surrounding security valuation, income recognition and distributions to shareholders), federal tax information, fees and compensation paid to affiliates and significant risks and contingencies.

 

8



Investment Portfolio – Columbia Government Plus Reserves (August 31, 2006)

Government & Agency Obligations – 67.4%

 

 

 

 

Par ($)

 

Value ($)

 

U.S. Government Agencies – 67.4%

 

 

 

 

 

 

 

Federal Farm Credit Bank

 

2.940% 11/08/06

 

5,000,000

 

4,980,780

 

 

 

5.240% 07/27/07 (a)

 

40,000,000

 

39,996,385

 

 

 

5.250% 10/26/07 (a)

 

35,000,000

 

35,000,000

 

 

 

5.280% 01/25/07 (a)

 

25,000,000

 

24,998,520

 

 

 

5.306% 10/04/06 (a)

 

2,000,000

 

1,999,925

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank

 

4.000% 04/25/07

 

8,000,000

 

7,936,879

 

 

 

5.230% 02/14/08 (a)

 

10,000,000

 

9,997,185

 

 

 

5.260% 09/01/06 (a)

 

10,000,000

 

10,000,000

 

 

 

5.347% 01/10/08 (a)

 

20,000,000

 

19,989,430

 

 

 

5.515% 09/18/07

 

8,000,000

 

8,000,000

 

 

 

 

 

 

 

 

 

Federal Home Loan Mortgage Corp.

 

2.800% 01/26/07

 

10,000,000

 

9,921,896

 

 

 

4.763% 02/09/07

 

8,000,000

 

7,991,438

 

 

 

5.181% 09/27/07 (a)

 

60,000,000

 

59,974,595

 

 

 

5.302% 06/22/07 (a)

 

25,000,000

 

24,996,241

 

 

 

5.351% 07/06/07 (a)

 

35,000,000

 

34,988,433

 

 

 

5.375% 06/04/07

 

5,000,000

 

5,000,000

 

Federal National Mortgage Association

 

2.710% 01/30/07

 

3,866,000

 

3,823,730

 

 

 

3.100% 03/14/07

 

10,528,000

 

10,410,752

 

 

 

3.550% 02/16/07

 

2,050,000

 

2,038,532

 

 

 

4.000% 10/16/06

 

15,000,000

 

14,990,014

 

 

 

5.284% 06/21/07 (a)

 

25,000,000

 

24,992,176

 

 

 

5.286% 09/07/06 (a)

 

25,000,000

 

24,999,988

 

 

 

U.S. Government Agencies Total

 

 

 

387,026,899

 

 

 

 

 

 

 

 

 

 

 

Total Government & Agency Obligations
(cost of $387,026,899)

 

 

 

387,026,899

 

 

 

 

 

 

 

 

 

Repurchase Agreement – 33.9%

 

 

 

 

 

 

 

 

 

Repurchase agreement with Deutsche Bank Securities, dated 08/31/06, due on 09/01/06, at 5.280%, collateralized by FNMA, FHLMC and FHLB bonds with various maturities to 08/28/17, market value $198,598,519 (repurchase proceeds $194,732,557)

 

194,704,000

 

194,704,000

 

 

 

Total Repurchase Agreement (Cost of $194,704,000)

 

 

 

194,704,000

 

 

 

Total Investments – 101.3% (Cost of $581,730,899) (b)

 

 

 

581,730,899

 

 

 

Other Assets & Liabilities, Net – (1.3)%

 

 

 

(7,594,233

)

 

 

Net Assets – 100.0%

 

 

 

574,136,666

 

 

 

Notes to Investment Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

 

 

(b)

Cost for federal income tax purposes is $581,730,899.

 

 

Acronym

 

Name

FHLB

 

Federal Home Loan Bank

FHLMC

 

Federal Home Loan Mortgage Corp.

FNMA

 

Federal National Mortgage Association

 

See Accompanying Notes to Financial Statements.

9



Investment Portfolio – Columbia Prime Reserves (August 31, 2006)

Corporate Bonds - 37.9%

 

 

 

 

Par ($)

 

Value ($)

 

1212 Jackson LLC

 

LOC: Fifth Third Bank
5.330% 09/01/24 (a)

 

700,000

 

700,000

 

 

 

 

 

 

 

 

 

500 Thomas Moore Building LLC

 

LOC: Fifth Third Bank
5.330% 06/01/22 (a)

 

1,000,000

 

1,000,000

 

 

 

 

 

 

 

 

 

Allen Temple African Methodist Episcopal Church

 

LOC: Fifth Third Bank
5.330% 07/01/22 (a)

 

1,740,000

 

1,740,000

 

 

 

 

 

 

 

 

 

American Express Credit Corp.

 

5.506% 12/05/06 (a)

 

25,000,000

 

25,001,184

 

 

 

 

 

 

 

 

 

Basic Water Co. SPE1 LLC

 

LOC: U.S. Bank N.A.
5.340% 08/01/24 (a)

 

17,100,000

 

17,100,000

 

 

 

 

 

 

 

 

 

Berkeley Realty Co. LLC

 

LOC: Wachovia Bank N.A.
5.430% 03/01/22 (a)

 

4,460,000

 

4,460,000

 

 

 

 

 

 

 

 

 

Best One Tire & Services LLC

 

LOC: Fifth Third Bank
5.330% 02/01/18 (a)

 

7,745,000

 

7,745,000

 

 

 

 

 

 

 

 

 

Bonbright Distributors, Inc.

 

LOC: National City Bank
5.380% 10/01/08 (a)

 

2,500,000

 

2,500,000

 

 

 

 

 

 

 

 

 

Borcherding Associates LLC

 

LOC: Fifth Third Bank
5.330% 09/02/25 (a)

 

2,200,000

 

2,200,000

 

 

 

 

 

 

 

 

 

Cincinnati Hills Christian Academy, Inc.

 

LOC: Fifth Third Bank
5.330% 04/01/23 (a)

 

1,005,000

 

1,005,000

 

 

 

 

 

 

 

 

 

Consolidated Equities Realty #1 LLC

 

LOC: Wells Fargo Bank N.A.
5.330% 09/01/25 (a)

 

2,000,000

 

2,000,000

 

 

 

 

 

 

 

 

 

Corporate Finance Managers, Inc.

 

LOC: Wells Fargo Bank N.A.
5.390% 02/02/43 (a)

 

5,840,000

 

5,840,000

 

 

 

 

 

 

 

 

 

Credit Agricole SA

 

5.481% 08/23/07 (a)(b)

 

75,000,000

 

75,000,000

 

 

 

 

 

 

 

 

 

Cullinan Finance Corp.

 

5.289% 03/15/07 (a)(b)

 

53,000,000

 

52,996,987

 

 

 

5.365% 08/15/07 (a)(b)

 

100,000,000

 

99,990,938

 

 

 

 

 

 

 

 

 

Driftwood Landing Corp.

 

LOC: Fifth Third Bank
5.380% 01/15/22 (a)

 

29,865,000

 

29,865,000

 

 

 

 

 

 

 

 

 

FBC Chemical Corp.

 

LOC: National City Bank
5.380% 10/01/15 (a)

 

2,305,000

 

2,305,000

 

 

 

 

 

 

 

 

 

Fifth Third Bancorp

 

5.304% 09/21/07 (a)(b)

 

50,000,000

 

50,000,000

 

 

 

 

 

 

 

 

 

Fortune 5 LLC

 

LOC: Fifth Third Bank
5.330% 09/01/22 (a)

 

1,200,000

 

1,200,000

 

 

 

 

 

 

 

 

 

Foster/Schweihofer Real Estate Co. LLC

 

LOC: Fifth Third Bank
5.280% 09/20/33 (a)

 

7,120,000

 

7,120,000

 

 

 

 

 

 

 

 

 

Four Flags Properties, Inc.

 

LOC: Fifth Third Bank
5.330% 10/01/28 (a)

 

1,500,000

 

1,500,000

 

 

See Accompanying Notes to Financial Statements.

10



 

 

 

 

 

Par ($)

 

Value ($)

 

Galday Inn, Inc.

 

LOC: Wachovia Bank N.A.
5.430% 12/01/20 (a)

 

4,397,000

 

4,397,000

 

 

 

 

 

 

 

 

 

Garfield Investment Group LLC

 

LOC: Fifth Third Bank
5.330% 07/01/28 (a)

 

1,405,000

 

1,405,000

 

 

 

 

 

 

 

 

 

General Electric Capital Corp.

 

5.430% 09/17/07 (a)

 

100,000,000

 

100,006,543

 

 

 

 

 

 

 

 

 

Global Properties Holdings, Inc.

 

LOC: Fifth Third Bank
5.330% 05/01/25 (a)

 

6,335,000

 

6,335,000

 

 

 

 

 

 

 

 

 

Goldman Sachs Group, Inc.

 

5.390% 12/13/06 (a)(c)

 

75,000,000

 

75,000,000

 

 

 

5.660% 10/27/06 (a)

 

45,000,000

 

45,012,110

 

 

 

 

 

 

 

 

 

Grand Central, Inc.

 

LOC: U.S. Bank N.A.
5.370% 10/01/09 (a)

 

2,225,000

 

2,225,000

 

 

 

 

 

 

 

 

 

Harrier Finance Funding LLC

 

5.365% 02/16/07 (a)(b)

 

30,000,000

 

29,998,810

 

 

 

5.429% 05/04/07 (a)(b)

 

92,000,000

 

91,992,404

 

 

 

 

 

 

 

 

 

HBOS Treasury Services PLC

 

5.452% 08/31/07 (a)(b)

 

60,000,000

 

60,000,000

 

 

 

 

 

 

 

 

 

Home Builders Association of Greater Toledo, Inc.

 

LOC: Fifth Third Bank
5.330% 09/01/27 (a)

 

1,075,000

 

1,075,000

 

 

 

 

 

 

 

 

 

ILH LLC

 

LOC: Fifth Third Bank
5.330% 11/01/35 (a)

 

2,500,000

 

2,500,000

 

 

 

 

 

 

 

 

 

K2 (USA) LLC

 

5.289% 03/16/07 (a)(b)

 

25,000,000

 

24,998,661

 

 

 

 

 

 

 

 

 

Kingston Care Center of Sylvania

 

LOC: JPMorgan Chase Bank
5.370% 05/01/33 (a)

 

11,675,000

 

11,675,000

 

 

 

 

 

 

 

 

 

Kokomo Grain Co., Inc.

 

LOC: General Electric Capital Corp.
5.360% 11/01/10 (a)(b)

 

4,900,000

 

4,900,000

 

 

 

 

 

 

 

 

 

Lincoln Park Associates LP

 

LOC: National City Bank
5.420% 11/01/22 (a)

 

11,745,000

 

11,745,000

 

 

 

 

 

 

 

 

 

Links Finance LLC

 

5.468% 04/02/07 (a)(b)

 

35,000,000

 

34,997,952

 

 

 

 

 

 

 

 

 

Liquid Funding Ltd.

 

5.378% 09/06/07 (a)(b)

 

100,000,000

 

99,980,000

 

 

 

 

 

 

 

 

 

Lodge Apartments Holdings LLC

 

LOC: Wachovia Bank N.A.
5.370% 03/01/26 (a)

 

5,780,000

 

5,780,000

 

 

 

 

 

 

 

 

 

LP Pinewood SPV LLC

 

LOC: Wachovia Bank N.A.
5.330% 02/01/18 (a)

 

92,734,000

 

92,734,000

 

 

 

 

 

 

 

 

 

Mangus & Terranova Investment LP Project

 

LOC: National City Bank
5.380% 04/01/31 (a)

 

4,080,000

 

4,080,000

 

 

 

 

 

 

 

 

 

Medical Properties Investment Co.

 

LOC: Fifth Third Bank
5.330% 11/01/35 (a)

 

1,500,000

 

1,500,000

 

 

 

 

 

 

 

 

 

MMJK Properties LLC

 

LOC: JPMorgan Chase Bank
5.370% 05/01/26 (a)

 

2,000,000

 

2,000,000

 

 

See Accompanying Notes to Financial Statements.

11



 

 

 

 

 

Par ($)

 

Value ($)

 

Morgan Stanley

 

5.398% 09/27/07 (a)

 

105,000,000

 

105,000,000

 

 

 

5.615% 07/27/07 (a)

 

35,000,000

 

35,042,958

 

 

 

 

 

 

 

 

 

MRN LP

 

LOC: U.S. Bank N.A.
5.380% 12/01/33 (a)

 

11,062,000

 

11,062,000

 

 

 

 

 

 

 

 

 

New Tristate Ventures LLC

 

LOC: Fifth Third Bank
5.280% 05/01/26 (a)

 

3,000,000

 

3,000,000

 

 

 

 

 

 

 

 

 

Northern Rock PLC

 

5.406% 09/05/07 (a)(b)

 

27,000,000

 

27,000,000

 

 

 

 

 

 

 

 

 

PCP Investors LLC

 

LOC: Wells Fargo Bank N.A.
5.390% 12/01/24 (a)

 

2,000,000

 

2,000,000

 

 

 

 

 

 

 

 

 

Pineview Estates LC

 

LOC: Fifth Third Bank
5.280% 01/01/23 (a)

 

2,900,000

 

2,900,000

 

 

 

 

 

 

 

 

 

Pratt Plaza LLC

 

LOC: Fifth Third Bank
5.330% 10/01/30 (a)

 

1,000,000

 

1,000,000

 

 

 

 

 

 

 

 

 

Pretasky Roach Properties LLC

 

LOC: Wachovia Bank N.A.
5.430% 01/01/19 (a)

 

1,655,000

 

1,655,000

 

 

 

 

 

 

 

 

 

Red Lion Evangelical Association, Inc.

 

LOC: Wachovia Bank N.A.
5.380% 06/01/26 (a)

 

2,305,000

 

2,305,000

 

 

 

 

 

 

 

 

 

Redcay Funding LLC

 

LOC: SunTrust Bank
5.340% 10/01/30 (a)

 

3,230,000

 

3,230,000

 

 

 

 

 

 

 

 

 

RH Sheppard Co., Inc.

 

LOC: Wachovia Bank N.A.
5.330% 06/01/11 (a)

 

24,840,000

 

24,840,000

 

 

 

 

 

 

 

 

 

Schreiber Industrial Park North

 

LOC: National City Bank
5.380% 06/01/17 (a)

 

4,285,000

 

4,285,000

 

 

 

 

 

 

 

 

 

Scion Investments LLC

 

LOC: National City Corp.
5.380% 10/01/30 (a)

 

3,755,000

 

3,755,000

 

 

 

 

 

 

 

 

 

Sedna Finance, Inc.

 

5.360% 05/30/07 (a)(b)

 

100,000,000

 

99,992,575

 

 

 

 

 

 

 

 

 

Sigma Finance, Inc.

 

5.200% 04/13/07 (b)

 

50,000,000

 

50,000,000

 

 

 

5.356% 03/16/07 (a)(b)

 

70,000,000

 

69,996,251

 

 

 

 

 

 

 

 

 

Smith of Georgia LLC

 

LOC: Fifth Third Bank
5.330% 12/01/24 (a)

 

11,170,000

 

11,170,000

 

 

 

 

 

 

 

 

 

Texas Disposal Systems

 

LOC: JPMorgan Chase Bank
5.480% 05/01/12 (a)

 

5,400,000

 

5,400,000

 

 

 

 

 

 

 

 

 

Tri-O Development LLC

 

LOC: National City Bank
5.380% 05/01/29 (a)

 

3,180,000

 

3,180,000

 

 

 

 

 

 

 

 

 

Ultimate Health Services, Inc.

 

LOC: Fifth Third Bank
5.280% 05/01/16 (a)

 

2,600,000

 

2,600,000

 

 

 

 

 

 

 

 

 

Unicredito Italiano Bank Ireland

 

5.378% 09/07/07 (a)(b)

 

60,000,000

 

60,000,000

 

 

See Accompanying Notes to Financial Statements.

12



 

 

 

 

 

Par ($)

 

Value ($)

 

Valleydale Baptist Church

 

LOC: AmSouth Bank N.A.
5.410% 12/01/23 (a)

 

14,720,000

 

14,720,000

 

 

 

 

 

 

 

 

 

WAWW Partnership

 

LOC: Fifth Third Bank
5.330% 01/01/22 (a)

 

3,055,000

 

3,055,000

 

 

 

 

 

 

 

 

 

Wells Fargo & Co.

 

5.340% 09/14/07 (a)(b)

 

85,000,000

 

85,000,000

 

 

 

 

 

 

 

 

 

White Pine Finance LLC

 

5.445% 04/25/07 (a)(b)

 

25,000,000

 

24,998,716

 

 

 

5.460% 04/16/07 (a)(b)

 

40,000,000

 

39,997,499

 

 

 

Total Corporate Bonds
(Cost of $1,802,791,588)

 

 

 

1,802,791,588

 

 

 

 

 

 

 

 

 

Extendible Commercial Notes – 16.9%

 

 

 

 

 

 

 

Brahms Funding Corp.

 

5.290% 10/19/06 (b)(d)

 

18,606,000

 

18,474,766

 

 

 

 

 

 

 

 

 

Deer Valley Funding LLC

 

5.280% 09/11/06 (b)(d)

 

66,483,000

 

66,385,492

 

 

 

 

 

 

 

 

 

Georgetown Funding Co. LLC

 

5.300% 09/27/06 (b)(d)

 

150,000,000

 

149,425,833

 

 

 

 

 

 

 

 

 

Ivory Funding Corp.

 

5.300% 09/28/06 (b)(d)

 

103,691,000

 

103,278,828

 

 

 

 

 

 

 

 

 

KKR Atlantic Funding Trust

 

5.300% 09/20/06 (b)(d)

 

100,000,000

 

99,720,278

 

 

 

 

 

 

 

 

 

KKR Pacific Funding LLC

 

5.300% 09/18/06 (b)(d)

 

35,612,000

 

35,522,871

 

 

 

 

 

 

 

 

 

Ormond Quay Funding LLC

 

5.330% 09/08/06 (b)(d)

 

200,000,000

 

199,792,722

 

 

 

 

 

 

 

 

 

Rams Funding Two LLC Rams

 

5.310% 09/19/06 (b)(d)

 

84,173,000

 

83,949,521

 

 

 

 

 

 

 

 

 

Thornburg Mortgage Capital Resources LLC

 

5.380% 09/05/06 (b)(d)

 

45,308,000

 

45,280,916

 

 

 

Total Extendible Commercial Notes
(Cost of $801,831,227)

 

 

 

801,831,227

 

 

 

 

 

 

 

 

 

Municipal Bonds – 16.4%

 

 

 

 

 

 

 

Arizona – 0.0%

 

 

 

 

 

 

 

AZ Phoenix Industrial Development Authority

 

Pilgrim Rest Foundation Inc.,
Series 2005 B,

LOC: JPMorgan Chase Bank
5.370% 10/01/30 (a)

 

2,175,000

 

2,175,000

 

 

 

Arizona Total

 

 

 

2,175,000

 

 

 

 

 

 

 

 

 

California – 0.4%

 

 

 

 

 

 

 

CA Santa Rosa Rancheria Tachi Yokut Tribe Enterprise

 

Series 2004,
LOC: Bank One N.A.
5.300% 09/01/19 (a)

 

21,800,000

 

21,800,000

 

 

 

California Total

 

 

 

21,800,000

 

 

 

 

 

 

 

 

 

Colorado – 2.2%

 

 

 

 

 

 

 

CO Housing & Finance Authority

 

Series 2003 A-1,
SPA: FHLB
5.380% 10/01/33 (a)

 

19,120,000

 

19,120,000

 

 

 

Series 2003 B-2,
SPA: JPMorgan Chase Bank
5.380% 11/01/33 (a)

 

32,592,000

 

32,592,000

 

 

See Accompanying Notes to Financial Statements.

13



 

 

 

 

 

Par ($)

 

Value ($)

 

Colorado(continued)

 

Series 2003 C-1,
SPA: JPMorgan Chase Bank
5.380% 11/01/32 (a)

 

26,310,000

 

26,310,000

 

 

 

Series 2004 A-1,
SPA: Dexia Credit Local
5.380% 11/01/34 (a)

 

24,825,000

 

24,825,000

 

 

 

Colorado Total

 

 

 

102,847,000

 

 

 

 

 

 

 

 

 

Florida – 0.4%

 

 

 

 

 

 

 

FL Hurricane Catastrophe Fund

 

Series 2006 B,
5.340% 08/15/07 (a)

 

20,000,000

 

20,000,000

 

 

 

Florida Total

 

 

 

20,000,000

 

 

 

 

 

 

 

 

 

Georgia – 0.2%

 

 

 

 

 

 

 

GA Talbot County Development Authority Industrial Development Revenue

 

Junction City Mining Co.,
Series 2000,
LOC: Wachovia Bank N.A.
5.430% 03/01/13 (a)

 

10,825,000

 

10,825,000

 

 

 

Georgia Total

 

 

 

10,825,000

 

 

 

 

 

 

 

 

 

Idaho – 0.1%

 

 

 

 

 

 

 

ID Boise City Urban Renewal Agency

 

Series 2004 B,
LOC: KeyBank N.A.
5.380% 03/01/13 (a)

 

2,760,000

 

2,760,000

 

 

 

Idaho Total

 

 

 

2,760,000

 

 

 

 

 

 

 

 

 

Louisiana – 2.5%

 

 

 

 

 

 

 

LA New Orleans Pension Revenue

 

Series 2000,
Insured: AMBAC,

SPA: Bank One Louisiana
5.550% 09/01/30 (a)

 

117,909,000

 

117,909,000

 

 

 

Louisiana Total

 

 

 

117,909,000

 

 

 

 

 

 

 

 

 

Minnesota – 0.1%

 

 

 

 

 

 

 

MN Eagan

 

Multi-Family Revenue, Thomas Lake Housing
Associates,

Series 2003 A2,
Insured: FNMA
5.370% 03/15/33 (a)

 

2,610,000

 

2,610,000

 

 

 

Minnesota Total

 

 

 

2,610,000

 

 

 

 

 

 

 

 

 

Mississippi – 1.2%

 

 

 

 

 

 

 

MS Business Finance Corp.

 

Telepak, Inc.,
Series 2000,
LOC: First Union National Bank
5.330% 09/01/15 (a)

 

15,000,000

 

15,000,000

 

 

 

 

 

 

 

 

 

MS Pearl Urban Renewal Revenue

 

Bloomfield Equities LLC,
Series 2004 A,

LOC: First Tennessee Bank
5.330% 11/01/19 (a)

 

40,507,000

 

40,507,000

 

 

 

Mississippi Total

 

 

 

55,507,000

 

 

See Accompanying Notes to Financial Statements.

14



 

 

 

 

 

Par ($)

 

Value ($)

 

Missouri – 0.8%

 

 

 

 

 

 

 

MO Kansas City Tax Increment Financing Commission

 

Series 2005,
LOC: LaSalle Bank N.A.
5.360% 11/01/28 (a)

 

36,170,000

 

36,170,000

 

 

 

Missouri Total

 

 

 

36,170,000

 

 

 

 

 

 

 

 

 

New Mexico – 0.1%

 

 

 

 

 

 

 

NM Las Cruces Industrial Development Revenue

 

F & A Dairy Products, Inc.,
Series 2003,

LOC: Wells Fargo Bank N.A.
5.280% 12/01/23 (a)

 

4,000,000

 

4,000,000

 

 

 

New Mexico Total

 

 

 

4,000,000

 

 

 

 

 

 

 

 

 

New York – 1.9%

 

 

 

 

 

 

 

NY New York City Housing Development Corp.

 

200 West 26 LLC,
Series 2002,

LOC: Bayerische Landesbank
5.300% 06/01/33 (a)

 

14,239,000

 

14,239,000

 

 

 

RBNB 20 Owner LLC,
Series 2006 B,

LOC: Landesbank Hessen-Thuringen
5.380% 06/01/39 (a)

 

76,155,000

 

76,155,000

 

 

 

New York Total

 

 

 

90,394,000

 

 

 

 

 

 

 

 

 

North Carolina – 0.0%

 

 

 

 

 

 

 

NC Wake Forest University

 

Series 1997,
LOC: Wachovia Bank N.A.
5.380% 07/01/17 (a)

 

1,000,000

 

1,000,000

 

 

 

North Carolina Total

 

 

 

1,000,000

 

 

 

 

 

 

 

 

 

Pennsylvania – 0.3%

 

 

 

 

 

 

 

PA Cumberland County Municipal Authority

 

Lutheran Services Northeast,
Series 2003 B,

LOC: Wachovia Bank N.A.
5.380% 01/01/08 (a)

 

890,000

 

890,000

 

 

 

 

 

 

 

 

 

PA Donegal Crossing LLC

 

Series 2002,
LOC: Waypoint Bank,
LOC: FHLB
5.360% 08/15/27 (a)

 

13,380,000

 

13,380,000

 

 

 

Pennsylvania Total

 

 

 

14,270,000

 

 

 

 

 

 

 

 

 

Tennessee – 0.1%

 

 

 

 

 

 

 

TN Hamilton County Industrial Development Board

 

Series 1999,
LOC: First Union National Bank
5.480% 02/01/14 (a)

 

3,500,000

 

3,500,000

 

 

 

Tennessee Total

 

 

 

3,500,000

 

 

 

 

 

 

 

 

 

Texas – 3.0%

 

 

 

 

 

 

 

TX Harris County-Houston Sports Authority

 

Series 2001 D,
Insured: MBIA,

SPA: Morgan Guaranty Trust
5.350% 11/15/30 (a)

 

43,185,000

 

43,185,000

 

 

See Accompanying Notes to Financial Statements.

15



 

 

 

 

 

Par ($)

 

Value ($)

 

TX North Texas Higher Education Authority

 

United Student Aid Funds, Inc.,
Series 2005 B,

Insured: AMBAC,
SPA: DEPFA Bank PLC
5.320% 12/01/44 (a)

 

30,000,000

 

30,000,000

 

 

 

 

 

 

 

 

 

TX State

 

Series 1994 A-2,
SPA: DEPFA Bank PLC
5.300% 12/01/33 (a)

 

46,100,000

 

46,100,000

 

 

 

Series 2003,
LOC: DEPFA Bank PLC,

SPA: Dexia Credit Local
5.290% 06/01/21 (a)

 

23,835,000

 

23,835,000

 

 

 

Texas Total

 

 

 

143,120,000

 

 

 

 

 

 

 

 

 

Virginia – 2.8%

 

 

 

 

 

 

 

VA Housing Development Authority

 

Series 1996 E,
5.380% 01/01/46 (a)

 

131,966,000

 

131,966,000

 

 

 

Virginia Total

 

 

 

131,966,000

 

 

 

 

 

 

 

 

 

Washington – 0.0%

 

 

 

 

 

 

 

WA Meadow Springs Country Club

 

Series 2000,
LOC: U.S. Bank N.A.
5.370% 08/01/25 (a)

 

2,335,000

 

2,335,000

 

 

 

Washington Total

 

 

 

2,335,000

 

 

 

 

 

 

 

 

 

Wisconsin – 0.3%

 

 

 

 

 

 

 

WI Housing & Economic Development Authority

 

Series 2006 B,
LOC: DEPFA Bank PLC
5.300% 09/01/37 (a)

 

16,735,000

 

16,735,000

 

 

 

Wisconsin Total

 

 

 

16,735,000

 

 

 

Total Municipal Bonds
(Cost of $779,923,000)

 

 

 

779,923,000

 

 

 

 

 

 

 

 

 

Commercial Paper – 15.1%

 

 

 

 

 

 

 

Compass Securitization LLC

 

5.323% 09/11/06 (a)(b)

 

68,000,000

 

67,999,444

 

 

 

 

 

 

 

 

 

Concord Minutemen Capital Co. LLC

 

5.340% 09/06/07 (a)(b)

 

89,532,000

 

89,532,644

 

 

 

 

 

 

 

 

 

Curzon Funding LLC

 

5.330% 11/07/06 (b)(d)

 

100,000,000

 

99,008,028

 

 

 

 

 

 

 

 

 

Lexington Parker Capital Corp.

 

5.343% 11/20/06 (a)(b)

 

85,000,000

 

84,996,303

 

 

 

5.376% 11/17/06 (a)(b)

 

50,000,000

 

49,997,921

 

 

 

 

 

 

 

 

 

Long Island College Hospital

 

LOC: Landesbank Hessen-Thuringen Girozentrale
5.350% 10/06/06 (d)

 

25,700,000

 

25,566,324

 

 

 

 

 

 

 

 

 

Nationwide Building Society

 

5.320% 11/07/06 (b)(d)

 

50,000,000

 

49,504,945

 

 

 

5.325% 11/07/06 (b)(d)

 

50,000,000

 

49,504,479

 

 

 

 

 

 

 

 

 

Rhineland Funding Capital Corp.

 

5.280% 09/11/06 (b)(d)

 

15,233,000

 

15,210,658

 

 

 

5.300% 09/11/06 (b)(d)

 

8,000,000

 

7,988,222

 

 

 

5.304% 09/27/06 (a)(b)

 

100,000,000

 

99,999,262

 

 

 

 

 

 

 

 

 

Sunbelt Funding Corp.

 

5.300% 11/06/06 (b)(d)

 

80,795,000

 

80,009,942

 

 

 

Total Commercial Paper
(Cost of $719,318,172)

 

 

 

719,318,172

 

 

See Accompanying Notes to Financial Statements.

16



 

 

 

 

 

Par ($)

 

Value ($)

 

Certificates of Deposit – 13.5%

 

 

 

 

 

 

 

Bank of Tokyo Mitsubishi Ltd. NY

 

4.800% 01/11/07

 

45,000,000

 

45,000,000

 

 

 

4.850% 01/03/07

 

16,000,000

 

16,000,000

 

 

 

 

 

 

 

 

 

Barclays Bank PLC NY

 

5.450% 06/12/07

 

53,500,000

 

53,500,000

 

 

 

5.500% 06/18/07

 

15,000,000

 

15,000,000

 

 

 

 

 

 

 

 

 

Canadian Imperial Bank of Commerce NY

 

5.410% 11/15/06 (a)

 

85,000,000

 

85,001,135

 

 

 

 

 

 

 

 

 

Credit Agricole SA

 

5.000% 03/09/07

 

10,000,000

 

10,000,000

 

 

 

5.260% 04/05/07

 

35,000,000

 

35,000,000

 

 

 

5.300% 04/18/07

 

44,000,000

 

44,000,000

 

 

 

5.520% 06/18/07

 

15,000,000

 

15,000,000

 

 

 

 

 

 

 

 

 

Credit Suisse NY

 

5.250% 04/03/07

 

40,000,000

 

40,000,000

 

 

 

5.846% 03/19/07 (a)

 

9,800,000

 

9,824,533

 

 

 

 

 

 

 

 

 

DEPFA Bank PLC NY

 

4.800% 12/05/06

 

12,500,000

 

12,500,000

 

 

 

 

 

 

 

 

 

Deutsche Bank AG

 

4.805% 02/21/07

 

26,000,000

 

26,000,000

 

 

 

 

 

 

 

 

 

Natexis Banques Populaires NY

 

5.010% 02/12/07

 

14,000,000

 

14,000,000

 

 

 

5.055% 02/21/07

 

16,000,000

 

16,000,000

 

 

 

5.410% 08/13/07 (a)

 

50,000,000

 

50,000,000

 

 

 

 

 

 

 

 

 

Royal Bank of Canada NY

 

5.367% 12/22/06 (a)

 

50,000,000

 

49,994,617

 

 

 

5.400% 09/10/07 (a)

 

40,000,000

 

40,000,000

 

 

 

 

 

 

 

 

 

Societe Generale

 

5.460% 09/04/07

 

18,000,000

 

18,000,000

 

 

 

5.500% 06/18/07

 

15,000,000

 

15,000,000

 

 

 

 

 

 

 

 

 

Wachovia Bank N.A.

 

5.459% 03/30/07 (a)

 

30,000,000

 

29,997,263

 

 

 

Total Certificates of Deposit
(Cost of $639,817,548)

 

 

 

639,817,548

 

 

 

 

 

 

 

 

 

Funding Agreements – 2.0%

 

 

 

 

 

 

 

Genworth Life Insurance Co.

 

5.486% 09/05/07 (a)(c)

 

25,000,000

 

25,000,000

 

 

 

 

 

 

 

 

 

Metropolitan Life Insurance Co.

 

5.480% 05/29/07 (a)(c)

 

68,000,000

 

68,000,000

 

 

 

Total Funding Agreements
(Cost of $93,000,000)

 

 

 

93,000,000

 

 

 

 

 

 

 

 

 

Asset-Backed Securities – 0.3%

 

 

 

 

 

 

 

Paragon Mortgages PLC

 

5.320% 10/15/41 (a)(b)

 

14,674,806

 

14,674,806

 

 

 

Total Asset-Backed Securities
(Cost of $14,674,806)

 

 

 

14,674,806

 

 

 

Total Investments – 102.1%
(Cost of $4,851,356,341) (e)

 

 

 

4,851,356,341

 

 

 

Other Assets & Liabilities, Net – (2.1)%

 

 

 

(100,214,187

)

 

 

Net Assets – 100.0%

 

 

 

4,751,142,154

 

 

 

Notes to Investment Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

The interest rate shown on floating rate or variable rate securities reflects the rate at August 31, 2006.

 

 

(b)

The securities, under Rule 144A under the Securities Act of 1933, are restricted to resale normally to qualified institutional buyers. At August 31, 2006, these securities amounted to $2,592,098,674, which represents 54.6% of net assets.

 

 

(c)

Illiquid security.

 

 

(d)

The rate shown represents the discount rate at the date of purchase.

 

 

(e)

Cost for federal income tax purposes is $4,851,438,935.

 

 

Acronym

 

Name

AMBAC

 

Ambac Assurance Corp.

FHLB

 

Federal Home Loan Bank

FNMA

 

Federal National Mortgage Association

LOC

 

Letter of Credit

MBIA

 

MBIA Insurance Corp.

SPA

 

Stand-by Purchase Agreement

 

See Accompanying Notes to Financial Statements.

17



Statements of Assets and Liabilities – Columbia Money Market Funds (August 31, 2006)

 

 

 

 

Columbia
Government Plus
Reserves ($)
(a)(b)(c)(d)(e)(f)(g)

 

Columbia
Prime
Reserves ($)
(a)(b)(c)(d)(e)

 

Assets

 

Investments, (including repurchase agreements), at identified cost

 

581,730,899

 

4,851,356,341

 

 

 

Investments, at value

 

387,026,899

 

4,851,356,341

 

 

 

Repurchase agreement, at value

 

194,704,000

 

—

 

 

 

Total investments, at value

 

581,730,899

 

4,851,356,341

 

 

 

Cash

 

279

 

127

 

 

 

Receivable for:

 

 

 

 

 

 

 

Fund shares sold

 

688

 

—

 

 

 

Interest

 

2,556,149

 

24,307,240

 

 

 

Deferred Trustees’ compensation plan

 

136,784

 

285,128

 

 

 

Expense reimbursement due from Investment Advisor

 

596

 

10,882

 

 

 

Total Assets

 

584,425,395

 

4,875,959,718

 

 

 

 

 

 

 

 

 

Liabilities

 

Payable for:

 

 

 

 

 

 

 

Investments purchased

 

8,000,000

 

117,980,000

 

 

 

Fund shares repurchased

 

26,938

 

—

 

 

 

Distributions

 

1,944,391

 

5,799,008

 

 

 

Investment advisory fee

 

41,445

 

346,079

 

 

 

Administration fee

 

20,122

 

244,568

 

 

 

Transfer agent fee

 

4,786

 

16,891

 

 

 

Pricing and bookkeeping fees

 

12,206

 

13,731

 

 

 

Trustees’ fees

 

6,582

 

6,282

 

 

 

Distribution and service fees

 

3,428

 

46,126

 

 

 

Custody fee

 

1,095

 

2,798

 

 

 

Legal fee

 

44,893

 

58,948

 

 

 

Reports to shareholders

 

31,880

 

7,304

 

 

 

Chief compliance officer expenses

 

1,162

 

2,500

 

 

 

Deferred Trustees’ fees

 

136,784

 

285,128

 

 

 

Other liabilities

 

13,017

 

8,201

 

 

 

Total Liabilities

 

10,288,729

 

124,817,564

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

574,136,666

 

4,751,142,154

 

 

 

 

 

 

 

 

 

Net Assets consists of

 

Paid-in capital

 

574,283,460

 

4,751,427,521

 

 

 

Overdistributed net investment income

 

(51,355

)

(35,422

)

 

 

Accumulated net realized loss

 

(95,439

)

(249,945

)

 

 

Net Assets

 

574,136,666

 

4,751,142,154

 

 

See Accompanying Notes to Financial Statements.

18



 

 

 

 

 

Columbia
Government
Plus Reserves
(a)(b)(c)(d)(e)(f)

 

Columbia
Prime
Reserves
(a)(b)(c)(d)(e)

 

Capital Class Shares

 

Net assets

 

$

317,986,199

 

$

4,226,907,166

 

 

 

Shares outstanding

 

318,051,636

 

4,227,152,378

 

 

 

Net asset value and offering price per share

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

Liquidity Class Shares

 

 

 

 

 

 

 

 

 

Net assets

 

$

10,349

 

$

10,342

 

 

 

Shares outstanding

 

10,351

 

10,342

 

 

 

Net asset value and offering price per share

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

Adviser Class Shares

 

 

 

 

 

 

 

 

 

Net assets

 

$

8,256,326

 

$

170,956,121

 

 

 

Shares outstanding

 

8,257,529

 

170,969,288

 

 

 

Net asset value and offering price per share

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

Institutional Class Shares

 

 

 

 

 

 

 

 

 

Net assets

 

$

38,695,176

 

$

353,268,525

 

 

 

Shares outstanding

 

38,700,643

 

353,295,513

 

 

 

Net asset value and offering price per share

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

Retail A Shares

 

 

 

 

 

 

 

 

 

Net assets

 

$

10,660,329

 

—

 

 

 

Shares outstanding

 

10,687,780

 

—

 

 

 

Net asset value and offering price per share

 

$

1.00

 

—

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

 

 

 

 

 

 

 

 

Net assets

 

$

198,528,287

 

—

 

 

 

Shares outstanding

 

198,591,321

 

—

 

 

 

Net asset value and offering price per share

 

$

1.00

 

—

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31.

(b)         Effective November 21, 2005, Columbia Government Plus Reserves Institutional, Preferred and Select Shares were redesignated Capital, Adviser and Trust Class Shares, respectively. Effective November 23, 2005, Columbia Prime Reserves Institutional, Preferred and Select Shares were redesignated Capital, Adviser and Trust Class Shares, respectively.

(c)          Liquidity Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves commenced operations on November 17, 2005 and November 22, 2005, respectively.

(d)         Institutional Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves commenced operations on November 22, 2005.

(e)          Trust Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves were fully redeemed on November 20, 2005 and November 22, 2005, respectively.

(f)            Retail A and G-Trust Shares for the Fund commenced operations on November 21, 2005.

See Accompanying Notes to Financial Statements.

19



Statements of Operations – Columbia Money Market Funds (Period Ended August 31, 2006)

 

 

 

 

Columbia
Government
Plus
Reserves (a)

 

Columbia
Prime
Reserves (a)

 

Investment Income

 

Interest

 

26,938,728

 

142,144,704

 

 

 

 

 

 

 

 

 

Expenses

 

Investment advisory fee

 

1,161,343

 

5,790,246

 

 

 

Administration fee

 

270,929

 

1,815,777

 

 

 

Shareholder Services fee:

 

 

 

 

 

 

 

Liquidity Class Shares

 

20

 

20

 

 

 

Adviser Class Shares

 

17,239

 

291,303

 

 

 

Institutional Class Shares

 

12,615

 

86,244

 

 

 

Trust Class Shares

 

5,442

 

12,330

 

 

 

Retail A Shares

 

8,881

 

—

 

 

 

Transfer agent fee:

 

 

 

 

 

 

 

Capital Class Shares

 

15,035

 

48,980

 

 

 

Adviser Class Shares

 

871

 

2,149

 

 

 

Institutional Class Shares

 

1,306

 

3,878

 

 

 

Trust Class Shares

 

625

 

90

 

 

 

Retail A Shares

 

368

 

—

 

 

 

G-Trust Shares

 

7,256

 

—

 

 

 

Pricing and bookkeeping fees

 

126,188

 

134,746

 

 

 

Trustees’ fees

 

10,026

 

9,848

 

 

 

Custody fee

 

21,257

 

66,141

 

 

 

Chief compliance officer expenses (See Note 4)

 

7,017

 

12,500

 

 

 

Other expenses

 

248,954

 

314,532

 

 

 

Total Expenses

 

1,915,372

 

8,588,784

 

 

 

 

 

 

 

 

 

 

 

Fees waived or reimbursed by Investment Advisor and/or Administrator

 

(704,938

)

(3,516,540

)

 

 

Fees waived by Shareholder Service Provider:

 

 

 

 

 

 

 

Liquidity Class Shares

 

(8

)

(8

)

 

 

Trust Class Shares

 

(1,814

)

(4,110

)

 

 

Fees reimbursed by Transfer Agent:

 

 

 

 

 

 

 

Capital Class Shares

 

(1,250

)

(8,025

)

 

 

Adviser Class Shares

 

(625

)

(90

)

 

 

Trust Class Shares

 

(625

)

(90

)

 

 

Custody earnings credit

 

(2,435

)

(48,489

)

 

 

Net Expenses

 

1,203,677

 

5,011,432

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

25,735,051

 

137,133,272

 

 

 

 

 

 

 

 

 

 

 

Net realized loss on investments

 

(89,176

)

(248,068

)

 

 

Net Increase in Net Assets from Operations

 

25,645,875

 

136,885,204

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. Therefore, the period presented is for the ten-month period beginning November 1, 2005 through August 31, 2006.

See Accompanying Notes to Financial Statements.

20



Statements of Operations – Columbia Money Market Funds (Year Ended October 31, 2005)

 

 

 

 

Columbia
Government
Plus
Reserves ($)

 

Columbia
Prime
Reserves ($)

 

Investment Income

 

Interest

 

18,626,987

 

99,090,553

 

 

 

 

 

 

 

 

 

Expenses

 

Investment advisory fee

 

1,324,351

 

6,921,775

 

 

 

Administration fee

 

443,657

 

2,318,795

 

 

 

Shareholder Services fee:

 

 

 

 

 

 

 

Adviser Class Shares

 

31,779

 

325,619

 

 

 

Trust Class Shares

 

112,583

 

1,020,502

 

 

 

Transfer agent fee:

 

 

 

 

 

 

 

Capital Class Shares

 

5,178

 

19,982

 

 

 

Adviser Class Shares

 

985

 

229

 

 

 

Trust Class Shares

 

980

 

236

 

 

 

Pricing and bookkeeping fees

 

97,411

 

148,745

 

 

 

Professional fees

 

41,263

 

144,199

 

 

 

Trustees’ fees

 

26,996

 

148,282

 

 

 

Custody fee

 

27,176

 

53,520

 

 

 

Reports to shareholders

 

3,632

 

16,386

 

 

 

Other expenses

 

98,567

 

196,081

 

 

 

Total Expenses

 

2,214,558

 

11,314,351

 

 

 

 

 

 

 

 

 

 

 

Fees waived or reimbursed by Investment Advisor and/or Administrator

 

(760,518

)

(3,877,983

)

 

 

Fees reimbursed by Investment Advisor or affiliates of Investment Advisor:

 

 

 

 

 

 

 

Capital Class Shares

 

(1,074

)

(15,075

)

 

 

Adviser Class Shares

 

(930

)

(180

)

 

 

Trust Class Shares

 

(38,457

)

(340,354

)

 

 

Net Expenses

 

1,413,579

 

7,080,759

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

17,213,408

 

92,009,794

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on Investments

 

(844

)

5,676

 

 

 

Net Increase in Net Assets From Operations

 

17,212,564

 

92,015,470

 

 

See Accompanying Notes to Financial Statements.

21



Statements of Changes in Net Assets – Columbia Money Market Funds

 

 

Columbia Government Plus Reserves

 

Columbia Prime Reserves

 

Increase (Decrease) in Net
Assets

 

Period Ended
August 31,
2006 ($)(a)(b)
(c)(d)(e)(f)

 

Year Ended
October 31,
2005 ($)

 

Year Ended
October 31,
2004 ($)

 

Period Ended
August 31,
2006 ($)(a)(b)
(c)(d)(e)

 

Year Ended
October 31,
2005 ($)

 

Year Ended
October 31,
2004 ($)

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

25,735,051

 

17,213,408

 

8,356,092

 

137,133,272

 

92,009,794

 

53,347,060

 

Net realized gain (loss) on investments

 

(89,176

)

(844

)

(102

)

(248,068

)

5,676

 

(7,553

)

Net increase in net assets resulting from operations

 

25,645,875

 

17,212,564

 

8,355,990

 

136,885,204

 

92,015,470

 

53,339,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions Declared to Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Class Shares

 

(15,634,417

)

(15,022,706

)

(7,349,013

)

(121,427,827

)

(71,616,972

)

(42,912,880

)

Liquidity Class Shares

 

(351

)

—

 

—

 

(342

)

—

 

—

 

Adviser Class Shares

 

(287,349

)

(307,424

)

(311,582

)

(5,180,380

)

(3,182,518

)

(1,558,260

)

Institutional Class Shares

 

(1,378,233

)

—

 

—

 

(10,207,944

)

—

 

—

 

Trust Class Shares

 

(136,714

)

(1,886,638

)

(708,263

)

(316,395

)

(17,220,722

)

(8,915,509

)

Retail A Shares

 

(393,682

)

—

 

—

 

—

 

—

 

—

 

G-Trust Shares

 

(7,904,303

)

—

 

—

 

—

 

—

 

—

 

Total distributions declared to shareholders

 

(25,735,049

)

(17,216,768

)

(8,368,858

)

(137,132,888

)

(92,020,212

)

(53,386,649

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Capital Share Transactions

 

51,774,733

 

(118,893,847

)

(190,948,397

)

2,456,864,668

 

(1,536,961,632

)

(601,741,152

)

Total Increase (Decrease) in Net Assets

 

51,685,559

 

(118,898,051

)

(190,961,265

)

2,456,616,984

 

(1,536,966,374

)

(601,788,294

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

522,451,107

 

641,349,158

 

832,310,423

 

2,294,525,170

 

3,831,491,544

 

4,433,279,838

 

End of period

 

574,136,666

 

522,451,107

 

641,349,158

 

4,751,142,154

 

2,294,525,170

 

3,831,491,544

 

Overdistributed net investment income, at end of period

 

(51,355

)

(10,982

)

(7,622

)

(35,422

)

(35,806

)

(25,388

)

 

(a)          The Fund changed its fiscal year end from October 31 to August 31.

(b)         Effective November 21, 2005, Columbia Government Plus Reserves Institutional, Preferred and Select Shares were redesignated Capital, Adviser and Trust Class Shares, respectively. Effective November 23, 2005, Columbia Prime Reserves Institutional, Preferred and Select Shares were redesignated Capital, Adviser and Trust Class Shares, respectively.

(c)          Liquidity Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves commenced operations on November 17, 2005 and November 22, 2005, respectively.

(d)         Institutional Class Shares (a new share class) of Columbia Government Plus Reserves and Columbia Prime Reserves commenced operations on November 22, 2005.

(e)          Trust Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves were fully redeemed on November 20, 2005 and November 22, 2005, respectively.

(f)            Retail A and G Trust Shares for the Fund commenced operations on November 21, 2005.

See Accompanying Notes to Financial Statements.

22



[THIS PAGE INTENTIONALLY LEFT BLANK]

23



Schedule of Capital Stock Activity – Columbia Money Market Funds (August 31, 2006)

 

 

Columbia Government Plus Reserves

 

 

 

Period Ended
August 31, 2006 (a)(f)

 

Year Ended
October 31, 2005

 

Year Ended
October 31, 2004

 

 

 

Shares

 

Dollars ($)

 

Shares

 

Dollars ($)

 

Shares

 

Dollars ($)

 

Changes in Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Class Shares (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

1,487,104,452

 

1,487,109,680

 

2,278,508,400

 

2,278,508,400

 

2,432,719,924

 

2,432,719,924

 

Distribution reinvested

 

5,580,449

 

5,580,449

 

7,871,506

 

7,871,506

 

3,452,578

 

3,452,578

 

Redemption

 

(1,606,467,898

)

(1,606,467,899

)

(2,397,956,159

)

(2,397,956,159

)

(2,617,179,273

)

(2,617,179,273

)

Net Increase (Decrease)

 

(113,782,997

)

(113,777,770

)

(111,576,253

)

(111,576,253

)

(181,006,771

)

(181,006,771

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidity Class Shares (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

10,000

 

10,000

 

—

 

—

 

—

 

—

 

Distribution reinvested

 

351

 

351

 

—

 

—

 

—

 

—

 

Net Increase

 

10,351

 

10,351

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adviser Class Shares (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

38,118,398

 

38,118,398

 

39,181,295

 

39,181,295

 

64,860,275

 

64,860,275

 

Distribution reinvested

 

282,794

 

282,794

 

307,420

 

307,420

 

311,582

 

311,582

 

Redemption

 

(48,357,485

)

(48,357,485

)

(34,714,350

)

(34,714,350

)

(109,085,040

)

(109,085,040

)

Net Increase (Decrease)

 

(9,956,293

)

(9,956,293

)

4,774,365

 

4,774,365

 

(43,913,183

)

(43,913,183

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional Class Shares (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

279,210,302

 

279,210,302

 

—

 

—

 

—

 

—

 

Distribution reinvested

 

1,315,145

 

1,315,145

 

—

 

—

 

—

 

—

 

Redemption

 

(241,824,804

)

(241,824,804

)

—

 

—

 

—

 

—

 

Net Increase

 

38,700,643

 

38,700,643

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust Class Shares (b)(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

9,074,294

 

9,074,294

 

215,354,658

 

215,354,658

 

244,341,356

 

244,341,356

 

Distribution reinvested

 

—

 

—

 

1,886,628

 

1,886,628

 

708,263

 

708,263

 

Redemption

 

(81,494,102

)

(81,494,102

)

(229,333,245

)

(229,333,245

)

(211,078,062

)

(211,078,062

)

Net Decrease

 

(72,419,808

)

(72,419,808

)

(12,091,959

)

(12,091,959

)

33,971,557

 

33,971,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail A Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

440,597

 

440,597

 

—

 

—

 

—

 

—

 

Proceeds received in connection with merger

 

12,706,986

 

12,681,046

 

—

 

—

 

—

 

—

 

Distribution reinvested

 

410,039

 

410,039

 

—

 

—

 

—

 

—

 

Redemption

 

(2,869,842

)

(2,869,842

)

—

 

—

 

—

 

—

 

Net Increase

 

10,687,780

 

10,661,840

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G-Trust Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 

656,510,379

 

656,510,379

 

—

 

—

 

—

 

—

 

Proceeds received in connection with merger

 

219,599,981

 

219,564,430

 

—

 

—

 

—

 

—

 

Distribution reinvested

 

552,881

 

552,881

 

—

 

—

 

—

 

—

 

Redemption

 

(678,071,920

)

(678,071,920

)

—

 

—

 

—

 

—

 

Net Increase

 

198,591,321

 

198,555,770

 

—

 

—

 

—

 

—

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Effective November 21, 2005, Columbia Government Plus Reserves Institutional, Preferred and Select Shares were redesignated Capital, Adviser and Trust Class Shares, respectively. Effective November 23, 2005, Columbia Prime Reserves Institutional, Preferred and Select Shares were redesignated Capital, Adviser and Trust Class Shares, respectively.

(c)          Liquidity Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves commenced operations on November 17, 2005 and November 22, 2005, respectively.

(d)         Institutional Class Shares (a new share class) of Columbia Government Plus Reserves and Columbia Prime Reserves commenced operations on November 22, 2005.

(e)          Trust Class Shares of Columbia Government Plus Reserves and Columbia Prime Reserves were fully redeemed on November 20, 2005 and November 22, 2005, respectively.

(f)            Retail A and G-Trust Shares for the Fund commenced operations on November 21, 2005.

See Accompanying Notes to Financial Statements.

24



 

Columbia Prime Reserves

 

Period Ended
August 31, 2006 (a)

 

Year Ended
October 31, 2005

 

Year Ended
October 31, 2004

 

Shares

 

Dollars ($)

 

Shares

 

Dollars ($)

 

Shares

 

Dollars ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

10,378,224,296

 

10,378,231,774

 

8,170,032,714

 

8,170,032,714

 

12,259,510,935

 

12,259,510,935

 

67,379,493

 

67,379,493

 

20,130,683

 

20,130,683

 

18,512,380

 

18,512,380

 

(8,313,251,953

)

(8,313,251,953

)

(8,993,243,587

)

(8,993,243,587

)

(13,019,632,268

)

(13,019,632,268

)

2,132,351,836

 

2,132,359,314

 

(803,080,190

)

(803,080,190

)

(741,608,953

)

(741,608,953

)

 

 

 

 

 

 

 

 

 

 

 

 

10,000

 

10,000

 

—

 

—

 

—

 

—

 

342

 

342

 

—

 

—

 

—

 

—

 

10,342

 

10,342

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

367,585,216

 

367,585,216

 

839,157,683

 

839,157,683

 

1,215,369,087

 

1,215,369,087

 

5,130,023

 

5,130,023

 

3,182,517

 

3,182,517

 

1,558,260

 

1,558,260

 

(293,738,120

)

(293,738,120

)

(909,534,213

)

(909,534,213

)

(1,215,274,076

)

(1,215,274,076

)

78,977,119

 

78,977,119

 

(67,194,013

)

(67,194,013

)

1,653,271

 

1,653,271

 

 

 

 

 

 

 

 

 

 

 

 

 

1,031,618,460

 

1,031,618,460

 

—

 

—

 

—

 

—

 

9,895,475

 

9,895,475

 

—

 

—

 

—

 

—

 

(688,218,422

)

(688,218,422

)

—

 

—

 

—

 

—

 

353,295,513

 

353,295,513

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

62,307,301

 

62,307,301

 

3,092,417,709

 

3,092,417,709

 

3,777,546,117

 

3,777,546,117

 

—

 

—

 

17,220,722

 

17,220,722

 

8,915,509

 

8,915,509

 

(170,084,921

)

(170,084,921

)

(3,776,325,860

)

(3,776,325,860

)

(3,648,247,096

)

(3,648,247,096

)

(107,777,620

)

(107,777,620

)

(666,687,429

)

(666,687,429

)

138,214,530

 

138,214,530

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

25



Financial Highlights – Columbia Government Plus Reserves (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Capital Class Shares

 

 

Period Ended
August 31,

 

Year Ended October 31,

 

 

 

2006 (a)(b)

 

2005

 

2004 (c)

 

2003

 

2002

 

2001

 

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

 

0.037

 

0.027

 

0.011

 

0.011

 

0.017

 

0.046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.037

)

(0.027

)

(0.011

)

(0.011

)

(0.017

)

(0.046

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (d)(e)

 

3.81

%(f)

2.72

%

1.07

%

1.07

%

1.71

%

4.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

0.20

%(g)(h)

0.20

%

0.19

%

0.18

%

0.30

%

0.27

%

Net investment income

 

4.42

%(g)(h)

2.62

%

1.05

%

1.04

%

1.68

%

4.55

%

Waiver/reimbursement

 

0.12

%(g)

0.11

%

0.12

%

0.13

%

0.00

%

0.07

%

Net assets, end of period (000’s)

 

$

317,986

 

$

431,820

 

$

543,400

 

$

724,417

 

$

369,381

 

$

324,272

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Effective November 21, 2005, Institutional Shares were redesignated Capital Class Shares.

(c)          Effective February 28, 2004, Class I Shares were redesignated Institutional Shares.

(d)         Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(e)          Total return at net asset value assuming all distributions reinvested.

(f)            Not annualized.

(g)         Annualized.

(h)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

26



Selected data for a share outstanding throughout each period is as follows:

Liquidity Class Shares

 

 

Period Ended

 

 

 

August 31,

 

 

 

2006 (a)(b)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

 

 

 

 

Income from Investment Operations:

 

 

 

Net investment income

 

0.035

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

From net investment income

 

(0.035

)

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

Total return (c)(d)

 

3.50

%(e)

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

Expenses

 

0.35

%(f)(g)

Net investment income

 

4.38

%(f)(g)

Waiver/reimbursement

 

0.22

%(f)

Net assets, end of period (000’s)

 

$

10

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Liquidity Class Shares commenced operations on November 17, 2005.

(c)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(d)         Total return at net asset value assuming all distributions reinvested.

(e)          Not annualized.

(f)            Annualized.

(g)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

27



Selected data for a share outstanding throughout each period is as follows:

Adviser Class Shares

 

 

Period Ended

 

 

 

 

 

Period Ended

 

 

 

August 31,

 

Year Ended October 31,

 

October 31,

 

 

 

2006 (a)(b)

 

2005

 

2004 (c)

 

2003 (d)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

Income from Investment Operations:

 

 

 

 

 

 

 

 

 

Net investment income

 

0.035

 

0.024

 

0.008

 

0.005

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.035

)

(0.024

)

(0.008

)

(0.005

)

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (e)(f)

 

3.59

%(g)

2.47

%

0.82

%

0.51

%(g)

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

Expenses

 

0.45

%(h)(i)

0.45

%

0.43

%

0.43

%(h)

Net investment income

 

4.17

%(h)(i)

2.37

%

0.80

%

0.79

%(h)

Waiver/reimbursement

 

0.13

%(h)

0.12

%

0.13

%

0.13

%(h)

Net assets, end of period (000’s)

 

$

8,256

 

$

18,213

 

$

13,439

 

$

57,353

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Effective on November 21, 2005, Preferred Shares were redesignated as Adviser Class Shares.

(c)          Effective February 28, 2004, Class III Shares were redesignated Preferred Shares.

(d)         The Fund began offering Adviser Class Shares on February 28, 2003.

(e)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(f)            Total return at net asset value assuming all distributions reinvested.

(g)         Not annualized.

(h)         Annualized.

(i)             The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

28



Selected data for a share outstanding throughout each period is as follows:

Institutional Class Shares

 

 

Period Ended
August 31,
2006 (a)(b)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

 

 

 

 

Income from Investment Operations:

 

 

 

Net investment income

 

0.035

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

From net investment income

 

(0.035

)

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

Total return (c)(d)

 

3.59

%(e)

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

Expenses

 

0.24

%(f)(g)

Net investment income

 

4.37

%(f)(g)

Waiver/reimbursement

 

0.12

%(f)

Net assets, end of period (000’s)

 

$

38,695

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Institutional Class Shares commenced operations on November 17, 2005.

(c)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(d)         Total return at net asset value assuming all distributions reinvested.

(e)          Not annualized.

(f)            Annualized.

(g)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

29



Selected data for a share outstanding throughout each period is as follows:

Trust Class Shares

 

 

Period Ended
November 21,

 

Year Ended
October 31,

 

Period Ended
October 31,

 

 

 

2005 (a)(b)

 

2005

 

2004(c)

 

2003(d)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

 

 

 

 

 

 

 

 

 

 

Income from Investment Operations:

 

 

 

 

 

 

 

 

 

Net investment income

 

0.002

 

0.026

 

0.010

 

0.006

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.002

)

(0.026

)

(0.010

)

(0.006

)

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (e)(f)

 

0.21

%(g)

2.62

%

0.97

%

0.63

%(g)

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

Expenses

 

0.30

%(h)(i)

0.30

%

0.28

%

0.28

%(h)

Net investment income

 

3.77

%(h)(i)

2.52

%

0.95

%

0.94

%(h)

Waiver/reimbursement

 

0.19

%(h)

0.16

%

0.18

%

0.18

%(h)

Net assets, end of period (000’s)

 

$

—

 

$

72,418

 

$

84,511

 

$

50,540

 

 

(a)          Effective November 21, 2005, Select Shares were redesignated Trust Class Shares.

(b)         Trust Class Shares were fully redeemed on November 20, 2005.

(c)          Effective February 28, 2004, Class II Shares were redesignated Select Shares.

(d)         The Fund began offering Trust Class Shares on February 28, 2003.

(e)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(f)            Total return at net asset value assuming all distributions reinvested.

(g)         Not Annualized

(h)         Annualized

(i)             The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

30



Selected data for a share outstanding throughout this period is as follows:

Retail A Shares

 

 

Period Ended
August 31,
2006 (a)(b)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

 

 

 

 

Income from Investment Operations:

 

 

 

Net investment income

 

0.035

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

From net investment income

 

(0.035

)

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

Total return (c)(d)

 

3.51

%(e)

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

Expenses

 

0.30

%(f)(g)

Net investment income

 

4.39

%(f)(g)

Waiver/reimbursement

 

0.12

%(f)

Net assets, end of period (000’s)

 

$

10,660

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Retail A Shares commenced operations on November 21, 2005.

(c)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(d)         Total return at net asset value assuming all distributions reinvested.

(e)          Not annualized.

(f)            Annualized.

(g)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

31



Selected data for a share outstanding throughout this period is as follows:

G-Trust Shares

 

 

Period Ended

 

 

 

August 31,

 

 

 

2006 (a)(b)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

 

 

 

 

Income from Investment Operations:

 

 

 

Net investment income

 

0.035

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

From net investment income

 

(0.035

)

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

Total return (c)(d)

 

3.59

%(e)

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

Expenses

 

0.20

%(f)(g)

Net investment income

 

4.44

%(f)(g)

Waiver/reimbursement

 

0.12

%(f)

Net assets, end of period (000’s)

 

$

198,528

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         G-Trust Shares commenced operations on November 21, 2005.

(c)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(d)         Total return at net asset value assuming all distributions reinvested.

(e)          Not annualized.

(f)            Annualized.

(g)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

32



Financial Highlights – Columbia Prime Reserves (August 31, 2006)

Selected data for a share outstanding throughout each period is as follows:

Capital Class Shares

 

 

Period Ended
August 31,

 

Year Ended October 31,

 

 

 

2006 (a)(b)

 

2005

 

2004 (c)

 

2003

 

2002

 

2001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.039

 

0.028

 

0.011

 

0.011

 

0.017

 

0.045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.039

)

(0.028

)

(0.011

)

(0.011

)

(0.017

)

(0.045

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (d)(e)

 

3.94

%(f)

2.80

%

1.12

%

1.15

%

1.72

%

4.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

0.16

%(g)(h)

0.18

%

0.17

%

0.14

%

0.26

%

0.30

%

Net investment income

 

4.75

%(g)(h)

2.69

%

1.11

%

1.10

%

1.72

%

4.27

%

Waiver/reimbursement

 

0.12

%(g)

0.11

%

0.11

 

0.14

%

0.04

%

0.01

%

Net assets, end of period (000’s)

 

$

4,226,907

 

$

2,094,764

 

$

2,897,846

 

$

3,639,495

 

$

1,239,803

 

$

1,035,540

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Effective November 23, 2005, Institutional Shares were redesignated Capital Class Shares.

(c)          Effective February 28, 2004, Class I Shares were redesignated Institutional Shares.

(d)         Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(e)          Total return at net asset value assuming all distributions reinvested.

(f)            Not annualized.

(g)         Annualized.

(h)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

33



Selected data for a share outstanding throughout this period is as follows:

Liquidity Class Shares

 

 

Period Ended
August 31,
2006 (a)(b)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

 

 

 

 

Income from Investment Operations:

 

 

 

Net investment income

 

0.034

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

From net investment income

 

(0.034

)

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

Total return (c)(d)

 

3.41

%(e)

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

Expenses

 

0.31

%(f)(g)

Net investment income

 

4.55

%(f)(g)

Waiver/reimbursement

 

0.22

%(f)

Net assets, end of period (000’s)

 

$

10

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Liquidity Class Shares commenced operations on November 22, 2005.

(c)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(d)         Total return at net asset value assuming all distributions reinvested.

(e)          Not annualized.

(f)            Annualized.

(g)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

34



Selected data for a share outstanding throughout each period is as follows:

Adviser Class Shares

 

 

Period Ended
August 31,

 

Year Ended October 31,

 

Period Ended
October 31,

 

 

 

2006 (a)(b)

 

2005

 

2004 (c)

 

2003

 

2002

 

2001 (d)

 

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

 

0.037

 

0.025

 

0.009

 

0.009

 

0.015

 

0.024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.037

)

(0.025

)

(0.009

)

(0.009

)

(0.015

)

(0.024

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (e)(f)

 

3.72

%(g)

2.54

%

0.87

%

0.90

%

1.51

%

2.43

%(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

0.41

%(h)(i)

0.43

%

0.42

%

0.39

%

0.45

%

0.49

%(h)

Net investment income

 

4.45

%(h)(i)

2.44

%

0.86

%

0.85

%

1.53

%

4.07

%(h)

Waiver/reimbursement

 

0.12

%(h)

0.11

%

0.11

%

0.14

%

0.09

%

0.01

%(h)

Net assets, end of period (000’s)

 

$

170,956

 

$

91,991

 

$

159,185

 

$

157,533

 

$

4,748

 

$

52

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Effective November 23, 2005, Preferred Shares were redesignated Adviser Class Shares.

(c)          Effective February 28, 2004, Class III Shares were redesignated Preferred Shares.

(d)         The Fund began offering Adviser Class Shares Class on March 1, 2001.

(e)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(f)            Total return at net asset value assuming all distributions reinvested.

(g)         Not annualized.

(h)         Annualized.

(i)             The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

35



Selected data for a share outstanding throughout this period is as follows:

Institutional Class Shares

 

 

Period Ended
August 31,
2006 (a)(b)

 

Net Asset Value, Beginning of Period

 

$

1.00

 

 

 

 

 

Income from Investment Operations:

 

 

 

Net investment income

 

0.036

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

From net investment income

 

(0.036

)

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

Total return (c)(d)

 

3.66

%(e)

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

Expenses

 

0.20

%(f)(g)

Net investment income

 

4.73

%(f)(g)

Waiver/reimbursement

 

0.12

%(f)

Net assets, end of period (000’s)

 

$

353,269

 

 

(a)          The Fund changed its fiscal year end from October 31 to August 31. The period is from November 1, 2005 through August 31, 2006.

(b)         Institutional Class Shares commenced operations on November 22, 2005.

(c)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(d)         Total return at net asset value assuming all distributions reinvested.

(e)          Not annualized.

(f)            Annualized.

(g)         The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

36



Selected data for a share outstanding throughout each period is as follows:

Trust Class Shares

 

 

Period Ended
November 22,

 

Year Ended October 31,

 

Period Ended
October 31,

 

 

 

2005 (a)(b)

 

2005

 

2004 (c)

 

2003

 

2002

 

2001 (d)

 

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

 

0.002

 

0.027

 

0.010

 

0.010

 

0.016

 

0.025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Distributions Declared to Shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

(0.002

)

(0.027

)

(0.010

)

(0.010

)

(0.016

)

(0.025

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Asset Value, End of Period

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

$

1.00

 

Total return (e)(f)

 

0.23

%(g)

2.69

%

1.02

%

1.03

%

1.61

%

2.55

%(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

0.26

%(h)(i)

0.28

%

0.27

%

0.24

%

0.37

%

0.39

%(h)

Net investment income

 

3.85

%(h)(i)

2.59

%

1.01

%

1.00

%

1.61

%

4.18

%(h)

Waiver/reimbursement

 

0.18

%(h)

0.16

%

0.16

%

0.19

%

0.07

%

0.01

%(h)

Net assets, end of period (000’s)

 

$

—

 

$

107,770

 

$

774,460

 

$

636,252

 

$

39,481

 

$

52

 

 

(a)          Effective November 23, 2005, Select Shares were redesignated Trust Class Shares.

(b)         Trust Shares were fully redeemed on November 22, 2005.

(c)          Effective February 28, 2004, Class II Shares were redesignated Select Shares.

(d)         The Fund began offering Trust Shares on March 1, 2001.

(e)          Had the investment advisor and/or its affiliates not waived or reimbursed a portion of expenses, total return would have been reduced.

(f)            Total return at net asset value assuming all distributions reinvested.

(g)         Not annualized.

(h)         Annualized.

(i)             The benefits derived from custody credits has an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.

37



Notes to Financial Statements – Columbia Money Market Funds (August 31, 2006)

Note 1. Organization

Columbia Funds Series Trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment company. Information presented in these financial statements pertains to Columbia Government Plus Reserves and Columbia Prime Reserves (each a “Fund” and collectively, the “Funds”).

On November 21, 2005, all the assets and liabilities of Galaxy Institutional Government Money Market Fund were acquired by Columbia Government Plus Reserves, a new series of Columbia Funds Series Trust. On November 23, 2005, all the assets and liabilities of Galaxy Institutional Money Market Fund were acquired by Columbia Prime Reserves, a new series of Columbia Funds Series Trust. Prior to such dates, Galaxy Institutional Government Money Market Fund and Galaxy Institutional Money Market Fund were each a series of The Galaxy Fund (“Galaxy”). Columbia Government Plus Reserves and Columbia Prime Reserves are continuing the business, including carrying forward the financial and performance history, of Galaxy Institutional Government Money Market Fund and Galaxy Institutional Money Market Fund, respectively.

Effective August 16, 2006, the Board of Trustees of the Funds approved a proposal to change the year-end of the Funds from October 31 to August 31. Accordingly, the accompanying financial statements pertain to the period from November 1, 2005 to August 31, 2006.

Investment Goal

Columbia Government Plus Reserves seeks current income with liquidity and stability of principal. Columbia Prime Reserves seeks to preserve the principal value of a shareholder’s investment and to maintain a high degree of liquidity while providing current income.

Fund Shares

Each Fund may issue an unlimited number of shares. Columbia Government Plus Reserves offers seven classes of shares: Capital, Trust, Adviser, Retail A, G-Trust, Institutional and Liquidity Class. Columbia Prime Reserves offers five classes of shares: Capital, Trust, Adviser, Institutional and Liquidity Class. Retail A and G-Trust shares are closed to new investors. Trust Class shares of each Fund were not active as of August 31, 2006. Each class of shares is offered continuously at net asset value and has its own expense structure.

Note 2. Significant Accounting Policies

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.

Security Valuation

Securities in the Funds are valued utilizing the amortized cost valuation method permitted in accordance with Rule 2a-7 under the 1940 Act provided certain conditions are met. This method involves valuing a portfolio security initially at its cost and thereafter assuming a constant accretion or amortization to maturity of any discount or premium, respectively. Investments in other investment companies are valued at net asset value.

Security Transactions

Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

Repurchase Agreements

Each Fund may engage in repurchase agreement transactions with institutions that the Funds’ investment advisor has determined are creditworthy. Each Fund, through its custodian, receives delivery of underlying securities collateralizing a repurchase agreement. Columbia Management Advisors, LLC is responsible for determining that collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays or restrictions upon each Fund’s ability to dispose of the underlying securities and a possible decline in

38



the value of the underlying securities during the period while the Funds seek to assert their rights.

Reverse Repurchase Agreements

Each Fund may enter into reverse repurchase agreement transactions with institutions that the Funds’ investment advisor has determined are creditworthy. Under the terms of a typical reverse repurchase agreement, a Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it is required to have segregated assets with a current value at least equal to the Fund’s obligations arising under the reverse repurchase agreement. Reverse repurchase agreements involve the risk that the market value of the securities purchased with the proceeds from the sale of securities received by the Fund may decline below the price of the securities that the Fund is obligated to repurchase. In the event that the buyer of the securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities.

Income Recognition

Interest income is recorded on an accrual basis. Premium and discount are amortized and accreted, respectively, on all debt securities.

Expenses

General expenses of the Trust are allocated to the Funds based upon their relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses are allocated to separate classes of shares based upon their relative net asset value on the date the expenses are incurred. Expenses directly attributable to a Fund or class of shares are charged directly to such Fund or class.

Determination of Class Net Asset Values

All income, expenses (other than class-specific expenses, as shown on the Statements of Operations) and realized and unrealized gains (losses) are allocated to each class of a Fund on a daily basis for purposes of determining the net asset value of each class. Income and expenses are allocated to each class based on the settled shares method, while realized and unrealized gains (losses) are allocated based on the relative net assets of each class.

Distributions to Shareholders

Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually after the fiscal year in which the capital gains were earned or more frequently to seek to maintain a net asset value of $1.00 per share, unless offset by any available capital loss carryforward. Distributions to shareholders are recorded on the ex-dividend date. Income distributions and capital gain distributions on a Fund level are determined in accordance with federal income tax regulations which may differ from GAAP.

Federal Income Tax Status

Each Fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its tax-exempt or taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Indemnification

In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Trust’s organizational documents, the Trustees and Officers of the Trust are indemnified against certain liabilities that may arise out of their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be minimal.

Note 3. Federal Tax Information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for

39



distribution (or available capital loss carryforwards) under income tax regulations.

For the period ended August 31, 2006, permanent book and tax basis differences resulting primarily from differing treatments for distribution reclassifications and redemption based payments treated as dividends paid deduction were identified and reclassified among the components of the Funds’ net assets as follows:

 

 

Overdistributed
Net Investment
Income

 

Accumulated
Net Realized
Gain/Loss

 

Paid-In
Capital

 

Columbia Government Plus Reserves

 

$

(40,375

)

$

(5,317

)

$

45,692

 

Columbia Prime Reserves

 

—

 

—

 

—

 

 

Net investment income and net realized gains (losses), as disclosed in the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the period ended August 31, 2006 and the years ended October 31, 2005 and October 31, 2004 was as follows:

 

 

August 31, 2006

 

 

 

Tax-Exempt
Income

 

Ordinary
Income*

 

Long-Term
Capital Gains

 

Columbia Government Plus Reserves

 

$

—

 

$

25,735,049

 

$

—

 

Columbia Prime Reserves

 

—

 

137,132,888

 

—

 

 

 

 

October 31, 2005

 

 

 

Tax-Exempt
Income

 

Ordinary
Income*

 

Long-Term
Capital Gains

 

Columbia Government Plus Reserves

 

$

—

 

$

17,216,768

 

$

—

 

Columbia Prime Reserves

 

—

 

92,020,212

 

—

 

 

 

 

October 31, 2004

 

 

 

Tax-Exempt
Income

 

Ordinary
Income*

 

Long-Term
Capital Gains

 

Columbia Government Plus Reserves

 

$

—

 

$

8,368,856

 

$

—

 

Columbia Prime Reserves

 

—

 

53,386,506

 

143

 

 

*      For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions.

 

As of August 31, 2006, the components of distributable earnings on a tax basis were as follows:

 

 

Undistributed
Ordinary
Income

 

Undistributed
Long-term
Capital Gains

 

Net
Unrealized
Depreciation*

 

Columbia Government Plus Reserves

 

$

1,970,202

 

$

—

 

$

—

 

Columbia Prime Reserves

 

5,948,771

 

—

 

(82,594

)

 

*      The difference between book basis and tax basis unrealized depreciation is primarily due to wash sales.

 

Unrealized appreciation and depreciation at August 31, 2006 based on the cost of investments for federal income tax purposes was:

 

 

Unrealized
Appreciation

 

Unrealized
Depreciation

 

Net
Unrealized
Depreciation

 

Columbia Prime Reserves

 

$

—

 

$

(82,594

)

$

(82,594

)

 

The following capital loss carryforwards, determined as of August 31, 2006, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

 

 

Expiring
2011

 

Expiring
2012

 

Expiring
2013

 

Expiring
2014

 

Columbia Government Plus Reserves

 

$

5,215

 

$

204

 

$

844

 

$

89,176

 

Columbia Prime Reserves

 

—

 

1,877

 

—

 

165,474

 

 

During the period ended August 31, 2006, neither of the Funds utilized capital losses.

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as

40



occurring on the first day of the following fiscal year. As of August 31, 2006, neither of the Funds elected to defer losses occurring between November 1, 2005 and August 31, 2006 under these rules.

In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (the “Interpretation”). This Interpretation is effective for fiscal years beginning after December 15, 2006 and is to be applied to tax positions upon initial adoption. This Interpretation prescribes a minimum recognition threshold and measurement method for the financial statement recognition of tax positions taken or expected to be taken in a tax return and also requires certain expanded disclosures. Management has recently begun to evaluate the application of this Interpretation to the Funds and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on the Funds’ financial statements.

Note 4. Fees and Compensation Paid to Affiliates

Investment Advisory Fee

Columbia Management Advisors, LLC (“Columbia”), an indirect, wholly-owned subsidiary of Bank of America Corporation (“BOA”), is the investment advisor to the Funds and provides administrative and other services to the Funds. Columbia receives an investment advisory fee, calculated daily and payable monthly at the annual rate of 0.20% of each Fund’s average daily net assets.

Columbia has voluntarily agreed to waive a portion of its investment advisory fee for the Funds so that such fee will not exceed 0.09% annually of each Fund’s average daily net assets. Columbia may revise or discontinue this waiver at any time.

Administration Fee

Columbia provides administrative and other services to the Funds. Under the Administration Agreement, Columbia is entitled to receive an administration fee, calculated daily and payable monthly, at the annual rate of 0.067% of each Fund’s average daily net assets less the fees payable by the Fund’s pricing and bookkeeping agreement described below.

Prior to November 21, 2005 for Columbia Government Plus Reserves and November 23, 2005 for Columbia Prime Reserves, Columbia delegated its administrative functions to PFPC Inc. (“PFPC”), a member of PNC Financial Services Group and paid a portion of the administration fees it received to PFPC as the sub-administrator to the Funds. Under the administration agreement with the Funds, Columbia was entitled to receive a monthly administration fee from each Fund based on the combined average daily net assets of the Funds and other affiliated funds at the following annual rates:

Average Daily Net Assets

 

Annual Fee Rate

 

First $30 billion

 

0.067

%

Over $30 billion

 

0.050

%

 

Pricing and Bookkeeping Fees

Columbia is responsible for providing pricing and bookkeeping services to the Funds under a pricing and bookkeeping agreement. Under a separate agreement (the “Outsourcing Agreement”), Columbia has delegated those functions to State Street Corporation (“State Street”). As a result, the total fees payable under the pricing and bookkeeping agreement are paid to State Street.

Under its pricing and bookkeeping agreement with the Funds, Columbia receives an annual fee of $38,000 paid monthly plus an additional monthly fee based on the level of average daily net assets for the month; provided that during any 12-month period, the aggregate fee (exclusive of out-of-pocket expenses and charges) for a Fund shall not exceed $140,000.

The Funds also reimburse Columbia and State Street for out-of-pocket expenses and charges, including fees payable to third parties for pricing each Fund’s portfolio securities and direct internal costs incurred by Columbia in connection with providing fund accounting oversight and monitoring and certain other services.

Prior to November 21, 2005 for Columbia Government Plus Reserves and November 23, 2005 for Columbia Prime Reserves, Columbia delegated its pricing and bookkeeping functions to PFPC and paid the total fees it received from the Funds to PFPC as the sub-pricing and bookkeeping agent. Columbia also reimbursed PFPC for out-of-pocket expenses and charges. Under its pricing and bookkeeping agreement with the Funds, Columbia received an annual fee based on the average daily net assets of each Fund and an additional

41



annual fee of $10,000 due to the multiple class structure. The annual pricing and bookkeeping rates were as follows:

Average Daily Net Assets

 

Annual Fee Rate

 

Under $50 million

 

$

25,000

 

Over $50 million but less than $200 million

 

$

35,000

 

Over $200 million but less than $500 million

 

$

50,000

 

Over $500 million but less than $1 billion

 

$

85,000

 

Over $1 billion

 

$

125,000

 

 

Transfer Agent Fee

Columbia Management Services, Inc. (the “Transfer Agent”), an affiliate of Columbia and an indirect, wholly-owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with Boston Financial Data Services (“BFDS”) to serve as sub-transfer agent. The Transfer Agent is entitled to receive a fee for its services, paid monthly, at the annual rate of $17.00 per open account plus sub-transfer agent fees (exclusive of BFDS fees) calculated based on assets held in omnibus accounts and intended to recover the cost of payments to third parties for services to those accounts. The annual rate was $15.23 prior to April 1, 2006. The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Fund and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses.

Prior to November 21, 2005 for Columbia Government Plus Reserves and November 23, 2005 for Columbia Prime Reserves, the Transfer Agent received a class-specific fee, paid monthly at the annual rate of $20.00 per open account and was reimbursed for certain out-of-pocket expenses. A portion of these costs were reimbursed by the Transfer Agent.

Distribution and Shareholder Services Fees

Columbia Management Distributors, Inc. (the “Distributor”), a subsidiary of Columbia and an indirect, wholly-owned subsidiary of BOA, is the exclusive distributor of the Trust’s shares.

The Trust has adopted a distribution plan (“Distribution Plan”) for the Liquidity Class shares and shareholder servicing plans and shareholder administration plans (“Servicing Plans”) for each class of shares of the Funds. Currently, the Servicing Plans have not been implemented with respect to the Capital Class shares of each Fund and the G-Trust shares of Columbia Government Plus Reserves. The Distribution Plan, adopted pursuant to Rule 12b-1 under the 1940 Act, permits the Funds to compensate or reimburse the Distributor and/or selling agents for activities or expenses primarily intended to result in the sale of the classes’ shares. The Servicing Plans permit the Funds to compensate or reimburse servicing agents for the shareholder services they have provided. A substantial portion of the expenses incurred pursuant to these plans is paid to affiliates of BOA and the Distributor.

The annual rates in effect and plan limits, as a percentage of average daily net assets are as follows:

 

 

Current Rate
(after fee
waivers)

 

Plan
Limit

 

Distribution Plan:

 

 

 

 

 

Liquidity Class Shares

 

0.15

%*

0.25

%**

Servicing Plans:

 

 

 

 

 

Liquidity Class Shares

 

0.15

%*

0.25

%**

Adviser Class Shares

 

0.25

%

0.25

%

Institutional Class Shares

 

0.04

%

0.04

%

Retail A Shares

 

0.10

%

0.10

%

Trust Class Shares

 

0.10

%

0.10

%

 

*                 The Distributor has contractually agreed to waive Distribution Plan fees and/or Servicing Plan fees through December 31, 2007 as a percentage of the Fund’s Liquidity Class shares average daily net assets at an annual rate of 0.10%, to the extent that combined fees will not exceed 0.15%.

**          To the extent that any Liquidity Class shares of the Funds make payments pursuant to the Distribution Plan and/or the Servicing Plan, the total of such payments may not exceed, on an annual basis, 0.25% of the average daily net assets of the Fund’s Liquidity Class shares.

Prior to November 21, 2005 for Columbia Government Plus Reserves and November 23, 2005 for Columbia Prime Reserves, The Galaxy Fund (the Funds’ former Trust) (“Galaxy”) adopted a shareholder services plan (the “Services Plan”) with respect to the Select and Preferred shares of the Funds. The Services Plan provided compensation to institutions (including affiliates of Columbia) which provided administrative and support services to their customers who beneficially own Select and/or Preferred shares. Payment for

42



shareholder liaison services did not exceed an annual rate of 0.25% of the average daily net assets attributable to the Select and Preferred shares. Payment for shareholder administrative support services fee did not exceed an annual rate of 0.25% of the average daily net assets attributable to the Select and Preferred shares. Galaxy limited total payments under the Services Plan to aggregate annual rates not to exceed 0.15% and 0.25% of the average daily net assets attributable to the Select and Preferred shares, respectively, of the Fund. In addition, affiliates of Columbia also limited payments under the Services Plan for the Select shares so that the total fees did not exceed 0.10% annually of the average daily net assets attributable to the Select shares.

Expense Limits and Fee Waivers

Columbia has contractually agreed to waive fees and reimburse the Funds through February 28, 2007 for certain expenses to the extent that total expenses (exclusive of distribution and shareholder service fees, brokerage commissions, interest, taxes and extraordinary expenses, if any) exceed 0.20% annually for Columbia Government Plus Reserves and 0.16% for Columbia Prime Reserves annually of the Funds’ average daily net assets.

Fees Paid to Officers and Trustees

All officers of the Funds, with the exception of the Funds’ Chief Compliance Officer, are employees of Columbia or its affiliates and receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The Funds, along with other affiliated funds, pay their pro-rata share of the expenses associated with the Chief Compliance Officer. Each Fund’s expenses for the Chief Compliance Officer will not exceed $15,000 per year.

The Trust’s eligible Trustees may participate in a non-qualified deferred compensation plan which may be terminated at any time. All benefits provided under this plan are unfunded and any payments to plan participants are paid solely out of the Funds’ assets. Income earned on the plan participant’s deferral account is based on the rate of return of the eligible mutual funds selected by the participants or, if no funds are selected, on the rate of return of Columbia Treasury Reserves (formerly Nations Treasury Reserves) another portfolio of the Trust. The expense for the deferred compensation plan is included in “Trustees’ fees” in the Statements of operations. The liability for the deferred compensation plan is included in “Trustees’ fees” in the Statements of assets and liabilities.

In addition, the Funds assumed the assets and liabilities of the Galaxy deferred compensation plan. The Galaxy deferred compensation plan may be terminated at any time. Obligations of the plan will be paid solely out of the Funds’ assets.

Note 5. Shares of Beneficial Interest

As of August 31, 2006, the Funds had shareholders whose shares were beneficially owned by participant accounts over which BOA and/or its affiliates had either sole or joint investment discretion. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. The percentage of shares of beneficial interest outstanding held therein are as follows:

Fund

 

% of Shares
Outstanding Held

 

Columbia Government Plus Reserves

 

95.5

%

Columbia Prime Reserves

 

86.7

 

 

As of August 31, 2006, the Columbia Prime Reserves Fund had another shareholder that held 8.1% of the shares outstanding. Subscription and redemption activity of this shareholder may have a material effect on the Fund.

Note 6. Disclosure of Significant Risks and Contingencies

Legal Proceedings

On February 9, 2005, Banc of America Capital Management, LLC (“BACAP” now known as Columbia Management Advisors LLC) and BACAP Distributors, LLC (“BACAP Distributors” now known as Columbia Management Distributors, Inc.) entered into an Assurance of Discontinuance with the New York Attorney General (the “NYAG Settlement”) and consented to the entry of a cease-and-desist order by the U.S. Securities and Exchange Commission (the “SEC”) (the “SEC Order”). A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005 and a copy of the SEC Order is available on the SEC’s website.

43



Under the terms of the SEC Order, BACAP, BACAP Distributors, and their affiliate, Banc of America Securities, LLC (“BAS”) agreed, among other things, (1) to pay $250 million in disgorgement and $125 million in civil money penalties; (2) to cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; (3) to undertake various remedial measures to ensure compliance with the federal securities laws related to certain mutual fund trading practices; and (4) to retain an independent consultant to review their applicable supervisory, compliance, control and other policies and procedures. The NYAG Settlement also requires, among other things, BACAP and BACAP Distributors, along with Columbia Management Advisors, Inc. and Columbia Funds Distributors, Inc., the investment advisor to and distributor of the Columbia Funds, respectively, to reduce Columbia Funds. Nations Funds and other mutual funds management fees collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions. Consistent with the terms of the settlements, the Nations Funds Boards have an independent Chairman, are comprised of at least 75% independent trustees and have engaged a senior officer with a wide range of compliance and oversight responsibilities.

Pursuant to the procedures set forth in the SEC Order, $375 million will be distributed in accordance with a distribution plan developed by an independent distribution consultant and approved by the SEC. The independent distribution consultant has been in consultation with the staff of the SEC, and has submitted a proposed plan of distribution. The SEC has not yet approved a final plan of distribution.

As a result of these matters or any adverse publicity or other developments resulting from them, including lawsuits brought by shareholders of the affected Nations Funds, there may be increased redemptions or reduced sales of fund shares, which could increase transaction costs or operating expenses, or have other adverse consequences for the Nations Funds.

Civil Litigation

In connection with the events that resulted in the NYAG Settlement and SEC Order, various parties filed suits against Bank of America Corporation and certain of its affiliates, including BACAP and BACAP Distributors (collectively “BAC”), Nations Funds Trust and its Board of Trustees. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against several other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the “MDL”). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Nations Funds Trust, the Trustees, BAC and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Nations Funds Trust against BAC and others that asserts claims under federal securities laws and state common law. Nations Funds Trust is a nominal defendant in this action.

On February 25, 2005, BAC and other defendants filed motions to dismiss the claims in the pending cases.

On December 15, 2005, BAC and others entered into a Stipulation of Settlement of the direct and derivative claims brought on behalf of the Nations Funds shareholders. Among other contingencies the settlement is contingent upon a minimum threshold amount being received by the Nations Fund shareholders and/or the Nations Funds mutual funds from the previously established regulatory settlement fund. The settlement is subject to court approval. If the settlement is approved, BAC would pay settlement administration costs and fees to plaintiffs’ counsel as approved by the court. The stipulation has not yet been presented to the court for preliminary approval.

Separately, a putative class action (Reinke v. Bank of America, N.A., et al.) was filed against Nations Funds Trust and others on December 16, 2004, in the United States District Court for the Eastern District of Missouri relating to the conversion of common trust funds and the investment of assets held in fiduciary accounts in the Funds. The Court granted Nations Funds Trust’s motion to dismiss this action on December 16, 2005. On December 28, 2005, the same plaintiffs attorneys filed another putative class action based on the same facts (Siepel v. Bank of America, N.A. et al.) against Columbia Funds Series Trust (as successor to Nations Funds Trust) and others in the United States District Court for the Eastern District of Missouri. Nations Funds Trust filed a motion to dismiss this complaint on May 19, 2006, but Plaintiffs responded by filing an Amended

44



Complaint that added claims under the federal securities laws. Nations Funds Trust filed a motion to dismiss the Amended Complaint, which is currently pending. On February 22, 2006, another putative class action based on the same facts (Luieff v. Bank of America, N.A. et al.) was filed in the United States District Court for the Southern District of New York against Columbia Funds Series Trust. William Carmichael and others. Columbia Funds Series Trust and William Carmichael filed motions to dismiss this complaint on July 28, 2006, but on September 5, 2006, the plaintiffs filed an Amended Complaint. The Funds, William Carmichael and others filed a motion to dismiss the Amended Complaint on October 6, 2006, which is currently pending.

Separately, a putative class action—Mehta v AIG Sun America Life Assurance Company—involving fair value pricing of mutual funds was filed in Illinois State Court, subsequently removed to federal court and then transferred to the United States District Court for the District of Maryland for coordinated or consolidated handling in the MDL. AIG SunAmerica Life Assurance Company has made demand upon Nations Separate Account Trust (as successor to Nations Annuity Trust) and BACAP (as successor to Banc of America Advisors, Inc.) for indemnification pursuant to the terms of a Fund Participation Agreement. On June 1, 2006, the court granted a motion to dismiss this case because it was preempted by the Securities Litigation Uniform Standards Act. That dismissal has been appealed to the United States Court of Appeals for the Fourth Circuit.

Note 7. Business Combinations & Mergers

On November 21, 2005, Columbia Government Plus Reserves, a new series of Columbia Funds Series Trust, acquired all of the assets and liabilities of the Galaxy Institutional Government Money Market Fund (total net assets acquired of $579,769,970.54) pursuant to an Agreement and Plan of Reorganization approved by the shareholders of such Galaxy Fund on November 16, 2005. Also on November 21, 2005 all of the assets and liabilities of Galaxy Government Money Market Fund have been transferred to Columbia Government Plus Reserves in a tax-free exchange and the shareholders of Galaxy Government Money Market have received 232,306,967.11 shares of Columbia Government Plus Reserves in exchange for their shares as follows:

Shares
Issued

 

Net Assets
Received

232,306,967.11

 

$

232,245,476.09

 

Net Assets of
Columbia
Government Plus
Reserves After
Reorganization of
Galaxy Institutional
Government Money
Market Fund

 

Net Assets of
Galaxy
Government
Money Market
Fund
Immediately
Prior to
Combination

 

Net Assets of
Columbia
Government
Plus Reserves
Immediately
After
Combination

 

$

579,769,970.54

 

$

232,245,476.09

 

$

812,015,446.63

 

 

45



Report of Independent Registered Public Accounting Firm

To the Trustees and Shareholders of Columbia Government Plus Reserves and Columbia Prime Reserves

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Government Plus Reserves and Columbia Prime Reserves, (constituting part of Columbia Funds Series Trust, collectively hereafter referred to as the “Funds”) at August 31, 2006, the results of each of their operations, the changes in each of their net assets, and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

October 26, 2006

46



Fund Governance

Trustees

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in the Columbia Funds Complex, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of portfolios overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Disinterested Trustees

Name, address and age, Position
with funds, Year first elected or
appointed to office

 

Principal occupation(s) during past five years, Number of portfolios in Columbia Funds
Complex overseen by trustee/director, Other directorships held

 

 

 

Edward J. Boudreau (Born 1944)
c/o Columbia Management
Advisors, LLC
One Financial Center
Boston, MA 02111
Trustee (since 2005)

 


Managing Director, E.J. Boudreau & Associates (consulting), through present.

 

 

 

William P. Carmichael (Born 1943)
c/o Columbia Management
Advisors, LLC
One Financial Center Boston,
MA 02111
Trustee (since 1999)

 


Trustee and Chairman of the Board; retired.

 

 

 

William A. Hawkins (Born 1942)
c/o Columbia Management
Advisors, LLC
One Financial Center Boston,
MA 02111
Trustee (since 2005)

 


President, Retail Banking-IndyMac Bancorp, Inc., from September 199 to August 2003.

 

 

 

R. Glenn Hilliard (Born 1943)
c/o Columbia Management
Advisors, LLC
One Financial Center Boston,
MA 02111
Trustee (since 2005)

 


Chairman and Chief Executive Officer, Hilliard Group LLC (investing and consulting), from April 2003 through current, Chairman and Chief Executive Officer, ING Americas, from 1999 to April 2003; and Non-Executive Chairman, Conseco, Inc. (insurance), from September 2004 through current.

 

 

 

Minor M. Shaw (Born 1947)
c/o Columbia Management
Advisors, LLC
One Financial Center Boston,
MA 02111
Trustee (since 2003)

 


President, Micco Corporation and Mickel Investment Group.

 

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800-426-3750.

47



Fund Governance

Officers

Officers

Name, address and age, Position
with Columbia Funds, Year first
elected or appointed to office

 

Principal occupation(s) during past five years

 

 

 

Christopher L. Wilson (Born 1957)
One Financial Center
Boston, MA 02111
President (since 2004)

 


Head of Mutual Funds since August, 2004 and Managing Director of the Advisor since September, 2005; President and Chief Executive Officer, CDC IXIS Asset Management Services, Inc. (investment management) from September, 1998 to August, 2004.

 

 

 

James R. Bordewick, Jr. (Born 1959)
One Financial Center
Boston, MA 02111
Senior Vice President, Secretary
and Chief Legal Officer (since 2006)

 


Associate General Counsel, Bank of America since April, 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April, 2005.

 

 

 

J. Kevin Connaughton (Born 1964)
One Financial Center
Boston, MA 02111
Senior Vice President,
Chief Financial Officer and
Treasurer (since 2000)

 


Managing Director of the Advisor since May, 2004.

 

 

 

Mary Joan Hoene (Born 1949)
100 Federal Street
Boston, MA 02110
Senior Vice President and
Chief Compliance Officer
(since 2004)

 


Senior Vice President and Chief Compliance Officer of various funds in the Fund Complex; Partner, Carter, Ledyard & Milburn LLP (law firm) from January, 2001 to August, 2004.

 

 

 

Michael G. Clarke (Born 1969)
One Financial Center
Boston, MA 02111
Chief Accounting Officer and
Assistant Treasurer (since 2004)

 


Director of Fund Administration since January, 2006; Managing Director of Columbia Management Advisors, LLC September, 2004 to December, 2005; Vice President Fund Administration June, 2002 to September, 2004. Vice President Product Strategy and Development from February, 2001 to June, 2002.

 

 

 

Jeffrey R. Coleman (Born 1969)
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)

 


Director of Fund Administration since January, 2006; Fund Controller from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August, 2000 to September, 2004.

 

 

 

Joseph F. DiMaria (Born 1968)
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)

 


Director of Fund Administration since January, 2006; Head of Tax/Compliance and Assistant Treasurer from November, 2004 to December, 2005; Director of Trustee Administration (Sarbanes-Oxley) from May, 2003 to October, 2004; Senior Audit Manager, PricewaterhouseCoopers (independent registered public accounting firm) from July, 2000 to April, 2003.

 

48



Columbia Money Market Fund

Name, address and age, Position
with Columbia Funds, Year first
elected or appointed to office

 

Principal occupation(s) during past five years

 

 

 

Ty S. Edwards (Born 1966)
One Financial Center
Boston, MA 02111
Deputy Treasurer (since 2006)

 


Director of Fund Administration since January, 2006; Vice President of the Advisor from (Month/Year) to (Month), 2002; Assistant Vice president and Director, State Street Corporation (financial services) prior to 2002.

 

 

 

Barry S. Vallan (Born 1969)
One Financial Center
Boston, MA 02111
Controller (since 2006)

 


Vice President-Fund Treasury of the Advisor since October, 2004; Vice President-Trustee Reporting from April, 2002 to October, 2004; Management Consultant, PricewaterhouseCoopers (independent registered public accounting firm) prior to October, 2002.

 

49



Columbia Funds – Columbia Money Market Funds

Growth Funds

 

Columbia Acorn Fund
Columbia Acorn Select
Columbia Acorn USA
Columbia Large Cap Growth Fund
Columbia Marsico 21st Century Fund
Columbia Marsico Focused Equities Fund
Columbia Marsico Growth Fund
Columbia Mid Cap Growth Fund
Columbia Small Cap Growth Fund I
Columbia Small Cap Growth Fund II

 

 

 

Core Funds

 

Columbia Common Stock Fund
Columbia Large Cap Core Fund
Columbia Small Cap Core Fund

 

 

 

Value Funds

 

Columbia Disciplined Value Fund
Columbia Dividend Income Fund
Columbia Large Cap Value Fund
Columbia Mid Cap Value Fund
Columbia Small Cap Value Fund I
Columbia Small Cap Value Fund II
Columbia Strategic Investor Fund

 

 

 

Asset Allocation/Hybrid Funds

 

Columbia Asset Allocation Fund
Columbia Asset Allocation Fund II
Columbia Balanced Fund
Columbia Liberty Fund
Columbia LifeGoalTM Balanced Growth Portfolio
Columbia LifeGoalTM Growth Portfolio
Columbia LifeGoalTM Income Portfolio
Columbia LifeGoalTM Income and Growth Portfolio
Columbia Masters Global Equity Portfolio
Columbia Masters Heritage Portfolio
Columbia Masters International Equity Portfolio
Columbia Thermostat Fund

 

 

 

Index Funds

 

Columbia Large Cap Enhanced Core Fund
Columbia Large Cap Index Fund
Columbia Mid Cap Index Fund
Columbia Small Cap Index Fund

 

 

 

Specialty Funds

 

Columbia Convertible Securities Fund
Columbia Real Estate Equity Fund
Columbia Technology Fund

 

 

 

Global/International Funds

 

Columbia Acorn International
Columbia Acorn International Select
Columbia Global Value Fund
Columbia Greater China Fund
Columbia International Stock Fund
Columbia International Value Fund
Columbia Marsico International Opportunities Fund
Columbia Multi-Advisor International Equity Fund
Columbia World Equity Fund

 

50



 

Taxable Bond Funds

 

Columbia Conservative High Yield Fund
Columbia Core Bond Fund
Columbia Federal Securities Fund
Columbia High Income Fund
Columbia High Yield Opportunity Fund
Columbia Income Fund
Columbia Intermediate Bond Fund
Columbia Short Term Bond Fund
Columbia Strategic Income Fund
Columbia Total Return Bond Fund
Columbia U.S. Treasury Index Fund

 

 

 

Tax-Exempt Bond Funds

 

Columbia California Tax-Exempt Fund
Columbia California Intermediate Municipal Bond Fund
Columbia Connecticut Tax-Exempt Fund
Columbia Connecticut Intermediate Municipal Bond Fund
Columbia Georgia Intermediate Municipal Bond Fund
Columbia High Yield Municipal Fund
Columbia Intermediate Municipal Bond Fund
Columbia Massachusetts Intermediate Municipal Bond Fund
Columbia Massachusetts Tax-Exempt Fund
Columbia Maryland Intermediate Municipal Bond Fund
Columbia North Carolina Intermediate Municipal Bond Fund
Columbia New York Tax-Exempt Fund
Columbia New Jersey Intermediate Municipal Bond Fund
Columbia New York Intermediate Municipal Bond Fund
Columbia Oregon Intermediate Municipal Bond Fund
Columbia Rhode Island Intermediate Municipal Bond Fund
Columbia South Carolina Intermediate Municipal Bond Fund
Columbia Short Term Municipal Bond Fund
Columbia Tax-Exempt Fund
Columbia Virginia Intermediate Municipal Bond Fund

 

 

 

Money Market Funds

 

Columbia California Tax-Exempt Reserves
Columbia Cash Reserves
Columbia Connecticut Municipal Reserves
Columbia Government Plus Reserves
Columbia Government Reserves
Columbia Massachusetts Municipal Reserves
Columbia Money Market Reserves
Columbia Municipal Reserves
Columbia New York Tax-Exempt Reserves
Columbia Prime Reserves
Columbia Tax-Exempt Reserves
Columbia Treasury Reserves

 

For complete product information on any Columbia Fund, visit our website at www.columbiafunds.com.

Columbia Management Group, LLC (“Columbia Management”) is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of NASD and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.

51



Important Information About This Report

Columbia Money Market Funds

Transfer Agent

Columbia Management Services, Inc.

P.O. Box 8081

Boston, MA 02266-8081

800.345.6611

Distributor

Columbia Management

Distributors, Inc.

One Financial Center

Boston, MA 02111

Investment Advisor

Columbia Management Advisors, LLC

100 Federal Street

Boston, MA 02110

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

125 High Street

Boston, MA 02110

The funds mail one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800-345-6611 and additional reports will be sent to you.

This report has been prepared for shareholders of Columbia Money Market Funds. This report may also be used as sales literature when preceded or accompanied by the current prospectus which provides details of sales charges, investment objectives and operating policies of the funds and with the most recent copy of the Columbia Funds Performance Update.

A description of the policies and procedures that each fund uses to determine how to vote proxies and a copy of each fund’s voting records are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission’s website at www.sec.gov, and (iii) without charge, upon request, by calling 800-368-0346. Information regarding how each fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC’s website. Information regarding how each fund voted proxies relating to portfolio securities is also available from the funds’ website.

Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Columbia Management Group, LLC (“Columbia Management”) is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of NASD and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.

52



Columbia Money Market Funds

Annual Report – August 31, 2006

GRAPHIC



Item 2. Code of Ethics.

(a)          The registrant has, as of the end of the period covered by this report, adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b)         During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above.

(c)          During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics described in 2(a) above that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that William P. Carmichael qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR and is “independent” (as defined in Item 3 of Form N-CSR).

Item 4. Principal Accountant Fees and Services.

Fee information below is disclosed for the twelve series of the registrant whose reports to stockholders are included in this annual filing.  On August 16, 2006, the Board of Trustees approved a proposal to change the year end of the series from either October 31, March 31 or May 31 to August 31.  Accordingly, prior fiscal year comparative information represents fiscal year ends of either October 31, March 31, or May 31.

(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal year ended August 31, 2006 and prior fiscal year are approximately as follows:

2006

 

Prior Fiscal Year

 

$

416,000

 

$

419,700

 

 



Audit Fees include amounts related to the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.

(b) Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal year ended August 31, 2006 and prior fiscal year are approximately as follows:

2006

 

Prior Fiscal Year

 

$

13,500

 

$

160,700

 

 

Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported in Audit Fees above.  In both fiscal years Audit-Related Fees include agreed-upon procedures performed for semi-annual shareholder reports and fund mergers.  Prior fiscal year also includes Audit-Related Fees for agreed-upon procedures related to fund accounting and custody conversions.

During the fiscal year ended August 31, 2006 and prior fiscal year, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.

(c) Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal year ended August 31, 2006 and prior fiscal year are approximately as follows:

2006

 

Prior Fiscal Year

 

$

14,300

 

$

125,000

 

 

Tax Fees consist primarily of the review of annual tax returns and include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.  Fiscal year 2006 and prior fiscal year also include tax fees for agreed-upon procedures related to fund mergers and the review of final tax returns.

During the fiscal year ended August 31, 2006 and prior fiscal year, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.



(d) All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal year ended August 31, 2006 and prior fiscal year are approximately as follows:

2006

 

Prior Fiscal Year

 

$

14,000

 

$

900

 

 

All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above. In both fiscal years All Other Fees include agreed-upon procedures related to the review of the registrant’s anti-money laundering program.

Aggregate All Other Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal year ended August 31, 2006 and prior fiscal year are approximately as follows:

2006

 

Prior Fiscal Year

 

$

359,600

 

$

93,500

 

 

These fees consist primarily of an internal control review of the registrant’s transfer agent. In addition, fiscal year 2006 also includes an internal control examination of the registrant’s investment advisor.

(e)(1) Audit Committee Pre-Approval Policies and Procedures

The registrant’s Audit Committee is required to pre-approve the engagement of the registrant’s independent accountants to provide audit and non-audit services to the registrant and non-audit services to its investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or any entity controlling, controlled by or under common control with such investment adviser that provides ongoing services to the registrant (“Adviser Affiliates”), if the engagement relates directly to the operations and financial reporting of the registrant.

The Audit Committee has adopted a Policy for Engagement of Independent Accountants for Audit and Non-Audit Services (“Policy”). The Policy sets forth the understanding of the Audit Committee regarding the engagement of the registrant’s independent accountants to provide (i) audit and permissible audit-related, tax and other services to the registrant (collectively “Fund Services”); (ii) non-audit services to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Adviser Affiliates, if the engagement relates directly to the operations or financial reporting of a Fund (collectively “Fund-related Adviser Services”); and (iii)



certain other audit and non-audit services to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Adviser Affiliates. Unless a type of service receives general pre-approval under the Policy, it requires specific pre-approval by the Audit Committee if it is to be provided by the independent accountants.  Pre-approval of non-audit services to the registrant, the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Adviser Affiliates may be waived provided that the “de minimis” requirements set forth under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are met.

Under the Policy, the Audit Committee may delegate pre-approval authority to any pre-designated member or members who are Independent Trustees/Directors.  The member(s) to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next regular meeting. The Audit Committee’s responsibilities with respect to the pre-approval of services performed by the independent accountants may not be delegated to management.

The Policy requires the Fund Treasurer and/or Director of Board Administration to submit to the Audit Committee, on an annual basis, a schedule of the types of services that are subject to general pre-approval. The schedule(s) provide a description of each type of service that is subject to general pre-approval and, where possible, will provide estimated fee caps for each instance of providing each service. The Audit Committees will review and approve the types of services and review the projected fees for the next fiscal year and may add to, or subtract from, the list of general pre-approved services from time to time based on subsequent determinations.  That approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent accountants will be permitted to perform.

The Fund Treasurer and/or Director of Board Administration shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services initiated since the last such report was rendered, including a general description of the services, actual billed and projected fees, and the means by which such Fund Services or Fund-related Adviser Services were pre-approved by the Audit Committee.

*****

(e)(2) The percentage of services described in paragraphs (b) through (d) of this Item approved pursuant to the “de minimis” exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during both fiscal year ended August 31, 2006 and the prior fiscal year was zero.

(f) Not applicable.

(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not



including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal year ended August 31, 2006 and prior fiscal year are approximately as follows:

2006

 

Prior Fiscal Year

 

$

401,400

 

$

380,100

 

 

(h) The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments

The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, since those procedures were last disclosed in response to requirements of Item 7(d)(2)(ii)(G) of Schedule 14A or this Item.



Item 11. Controls and Procedures.

(a)          The registrant’s principal executive officer and principal financial officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, has concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

(b)         There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.

 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant)

 

Columbia Funds Series Trust

 

 

 

 

 

 

 

By (Signature and Title)

 

/s/ Christopher L. Wilson

 

 

 

Christopher L. Wilson, President

 

 

 

 

 

 

Date

 

October 27, 2006

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By (Signature and Title)

 

/s/ Christopher L. Wilson

 

 

 

Christopher L. Wilson, President

 

 

 

 

 

 

Date

 

October 27, 2006

 

 

 

 

 

 

 

By (Signature and Title)

 

/s/ J. Kevin Connaughton

 

 

 

J. Kevin Connaughton, Treasurer

 

 

 

 

 

 

Date

 

October 27, 2006