Notes to Financial Statements/November 30, 1996
the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract
was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it
remains open. Risks may also arise if counterparties fail to perform their obligations under the contracts.
OTHER: Corporate actions are recorded on the ex-date (except for certain foreign securities which are recorded
as soon after ex-date as the Fund becomes aware of such), net of nonrebatable tax withholdings. Where a high
level of uncertainty as to collection exists, income on securities is recorded net of all tax withholdings with any
rebates recorded when received.
The Fund's custodian takes possession through the federal book-entry system of securities collateralizing
repurchase agreements. Collateral is marked-to-market daily to ensure that the market value of the underlying
assets remains sufficient to protect the Fund. The Fund may experience costs and delays in liquidating the
collateral if the issuer defaults or enters bankruptcy.
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE: Colonial Management Associates, Inc. (the Adviser) is the investment adviser of the
Fund and furnishes accounting and other services and office facilities for a monthly fee equal to 0.75% annually of
the Fund's average weekly net assets.
BOOKKEEPING FEE: The Adviser provides bookkeeping and pricing services for $18,000 per year plus
0.0233% of the Fund's average net assets over $50 million.
OTHER: The Fund pays no compensation to its officers, all of whom are employees of the Adviser.
The Fund's Trustees may participate in a deferred compensation plan which may be terminated at any time.
Obligations of the plan will be paid solely out of the Fund's assets.
NOTE 3. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY: During the year ended November 30, 1996, purchases and sales of investments,
other than short-ter