COLONIAL NEW YORK
INSURED MUNICIPAL FUND
[PHOTO]
ANNUAL REPORT
NOVEMBER 30, 2002
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
For a third consecutive year, the municipal bond market offered positive
returns. In general, the bond market was aided by strong demand, as investors
shied away from the stock market in light of economic uncertainty, corporate
scandals and the threat of war. Relatively stable interest rates were also an
aid to market performance. The Federal Reserve lowered short-term interest rates
early in the period and again late in the period as the economy struggled and
consumer confidence sagged. The volume of new municipal bonds increased as
cities and states faced budget deficits and revenue shortfalls. However,
investor demand for bonds also rose, and that helped support returns throughout
the year.
The following report will provide you with more detailed information about the
fund's performance and the investment strategies used by portfolio manager
Maureen Newman. As always, we thank you for choosing Colonial New York Insured
Municipal Fund and for giving us the opportunity to help you build a strong
financial future.
/s/ Keith T. Banks
Keith T. Banks
President
o NOT FDIC INSURED o MAY LOSE VALUE o NO BANK GUARANTEE
Economic and market conditions change frequently. There is no assurance that the
trends described in this report will continue or commence.
PORTFOLIO MANAGER'S REPORT
For the 12-month period ended November 30, 2002, Colonial New York Insured
Municipal Fund generated a total return of 6.56%, based on net asset value. The
fund's peer group, the Lipper New York Insured Municipal Debt Funds, averaged a
7.58% return.1
The fund's underperformance was partially the result of our decision to reduce
the fund's duration (a measure of interest rate sensitivity) by selling Treasury
futures contracts. Generally, a shorter duration hurts a fund when interest
rates decline, as they did for much of the fiscal year. During the period,
high-quality municipal bonds outperformed lower-quality bonds. A small position
in lower-quality securities held back the fund's performance. The lower-quality
securities had been added to the portfolio as a way to boost income. The fund's
leverage boosted its income stream, which, in turn, enhanced the income
available for distribution to the fund's shareholders.
The fund benefited from the prerefunding of Metropolitan Transportation
Authority bonds (2.8% of net assets2). When an issuer prerefunds bonds, it
issues new bonds and invests the proceeds from their sale in US Treasury
securities, which are pledged to pay off the older debt. Because US Treasuries
are the highest quality bonds, prerefunding improves the credit rating of the
issuer, and that, in turn, boosts the value of the older bonds.
During the period, we brought the fund in line with a new Securities and
Exchange Commission rule that requires mutual funds to invest at least 80% of
their net assets (plus any borrowings for investment purposes) in the types of
securities suggested by their names. In replacing uninsured bonds, we
restructured the portfolio to include securities that we believe should perform
well during a variety of market environments.
Looking ahead, we plan to emphasize high-quality revenue bonds, such as those in
the education, utility, and water and sewer sectors. We expect to put less focus
on bonds directly dependent on state finances because of the budget cuts
proposed by the State of New York.
/s/ Maureen G. Newman
Maureen G. Newman
Maureen G. Newman is the portfolio manager of Colonial New York Insured
Municipal Fund and a senior vice president of Colonial Management Associates,
Inc., an affiliate of Columbia Management Group. Ms. Newman received her BA in
economics from Boston College and her MBA from Babson College. She is a
Chartered Financial Analyst, a member of the Boston Security Analysts Society
and former chairman of the National Federation of Municipal Analysts.
Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale.
Tax-exempt investing offers current tax-free income, but it also involves
certain risks. The value of the fund shares will be affected by interest rate
changes and the creditworthiness of issues held in the funds. Investing in high
yield securities offers the potential for high current income and attractive
total return, but involves certain risks. Lower-rated bond risks include default
of the issuer and rising interest rates.
Single-state municipal bond funds pose additional risks due to limited
geographical diversification. Interest income from certain tax-exempt bonds may
be subject to the federal alternative minimum tax for individuals and
corporations.
1 Lipper Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment objectives
as the fund.
2 Holdings are disclosed as of November 30, 2002, and are subject to change.
PRICE PER SHARE
AS OF 11/30/02 ($)
Net asset value 15.64
--------------------------------
Market price 15.86
--------------------------------
ONE YEAR TOTAL RETURNS (%)
Net asset value 6.56
--------------------------------
Market price 16.79
--------------------------------
DISTRIBUTIONS DECLARED
PER COMMON SHARE
12/1/01-11/30/02 ($)
1.11
--------------------------------
A portion of the fund's income may be subject to the alternative minimum tax.
The fund may at times purchase tax-exempt securities at a discount from their
original issue price. Some or all of this discount may be included in the Fund's
ordinary income, and any market discount is taxable when distributed.
TOP 10 INDUSTRY SECTORS
AS OF 11/30/02 (%)
Education 17.4
--------------------------------
State appropriated 10.0
--------------------------------
Airports 8.6
--------------------------------
Hospitals 8.5
--------------------------------
Water & sewer 7.2
--------------------------------
Municipal electric 6.1
--------------------------------
Toll facilities 5.5
--------------------------------
Transportation 5.3
--------------------------------
Local general obligations 4.7
--------------------------------
Special non-property tax 4.0
--------------------------------
QUALITY BREAKDOWN
AS OF 11/30/02 (%)
AAA 83.0
--------------------------------
AA 10.9
--------------------------------
A 0.9
--------------------------------
BBB 3.5
--------------------------------
BB 0.1
--------------------------------
Non rated 1.6
--------------------------------
Quality breakdowns are calculated as a percentage of total investments,
including short-term obligations. Ratings shown in the quality breakdown
represent the highest rating assigned to a a particular bond by one of the
following nationally-recognized rating agencies: Standard & Poor's Corporation,
Moody's Investors Service, Inc. or Fitch Investors Service, Inc. Sector
breakdowns are calculated as a percentage of net assets. Because the fund is
actively managed, there can be no guarantee that the fund will continue to
maintain this quality breakdown or invest in these sectors in the future.
1
INVESTMENT PORTFOLIO
November 30, 2002 (New York unless otherwise stated)
MUNICIPAL BONDS - 97.5% PAR VALUE
----------------------------------------------------------
EDUCATION - 17.4%
Niagara County Industrial Development
Agency, Niagara University,
Series 2001 A,
5.350% 11/01/23 $1,000,000 $ 1,006,070
Schenectady Industrial Development
Agency, Union College, Series 1999 A,
5.450% 12/01/29 1,000,000 1,033,480
St. Lawrence County Industrial
Development Agency, St. Lawrence
University, Series 1998 A,
5.375% 07/01/18 700,000 736,225
State Dormitory Authority:
Cooper Union, Series 1999,
6.000% 07/01/19 1,000,000 1,109,010
New York University:
Series 1998 A,
5.750% 07/01/27 1,500,000 1,677,075
Series 2001,
5.500% 07/01/22 690,000 746,270
Pratt Institute, Series 1999,
6.000% 07/01/28 500,000 537,455
-----------
6,845,585
-----------
-----------------------------------------------------------
HEALTH CARE - 12.6%
CONGREGATE CARE RETIREMENT - 1.4%
State Dormitory Authority,
Miriam Osborn Memorial Home,
Series 2000 B,
6.875% 07/01/19 300,000 336,432
Suffolk County Industrial Development
Agency, Jefferson Ferry,
Series 1999 A,
7.200% 11/01/19 200,000 206,246
-----------
542,678
-----------
HOSPITALS - 8.5%
New York City Industrial Development
Agency, Staten Island University
Hospital, Series 2002 C,
6.450% 07/01/32 150,000 147,922
State Dormitory Authority:
New Island Hospital,
Series 1999 B,
5.750% 07/01/19 1,000,000 1,075,050
Sloan Kettering Cancer Center,
Series 1998,
5.500% 07/01/23 1,000,000 1,078,560
St. Francis Hospital,
Series 1999 A,
5.500% 07/01/29 1,000,000 1,031,700
-----------
3,333,232
-----------
PAR VALUE
----------------------------------------------------------
NURSING HOMES - 2.7%
Syracuse Housing Authority,
Loretto Rest, Series 1997 A,
5.700% 08/01/27 $1,000,000 $ 1,044,860
-----------
-----------------------------------------------------------
HOUSING - 4.3%
ASSISTED LIVING/SENIOR - 1.7%
Huntington Housing Authority,
Gurwin Jewish Senior Center,
Series 1999,
6.000% 05/01/29 200,000 172,348
State Dormitory Authority,
Willow Towers, Inc., Series 2002,
5.250% 02/01/22 500,000 501,695
-----------
674,043
-----------
SINGLE FAMILY - 2.6%
State Mortgage Agency,
Series 1999 8-2,
5.650% 04/01/30 1,000,000 1,025,770
-----------
-----------------------------------------------------------
OTHER - 4.3%
POOL/BOND BANK - 1.5%
State Environmental Facilities Corp.,
Series 2000,
5.700% 07/15/22 540,000 582,314
-----------
REFUNDED/ESCROWED (A) - 2.8%
Metropolitan Transportation Authority,
Series 1998 A,
5.250% 07/01/28 (b) 1,000,000 1,114,680
-----------
-----------------------------------------------------------
OTHER REVENUE - 1.4%
RECREATION - 1.4%
New York City Cultural Trust,
American Museum of Natural History,
Series 1997 A,
5.650% 04/01/22 500,000 534,600
-----------
-----------------------------------------------------------
TAX-BACKED - 22.6%
LOCAL GENERAL OBLIGATIONS - 4.7%
New York City:
Series 1998 B,
5.375% 08/01/22 1,000,000 1,022,690
Series 1998 D,
5.250% 08/01/21 500,000 508,115
PR Commonwealth of Puerto Rico,
Municipal Finance Agency,
Series 1999 A,
5.500% 08/01/23 300,000 314,910
-----------
1,845,715
-----------
See notes to investment portfolio.
2
INVESTMENT PORTFOLIO (CONTINUED)
November 30, 2002 (New York unless otherwise stated)
MUNICIPAL BONDS (CONTINUED) PAR VALUE
----------------------------------------------------------
TAX-BACKED (CONTINUED)
SPECIAL NON-PROPERTY TAX - 4.0%
PR Commonwealth of Puerto Rico,
Public Building Authority,
Series 1997 B,
5.000% 07/01/27 $1,000,000 $ 1,004,690
VI Virgin Islands Public Finance
Authority, Series 1999,
6.500% 10/01/24 500,000 554,245
-----------
1,558,935
-----------
STATE APPROPRIATED - 10.0%
Metropolitan Transportation Authority,
Series 2002,
5.500% 07/01/17 500,000 555,305
State Dormitory Authority:
City University of New York,
Series 1997 I,
5.125% 07/01/27 1,000,000 1,002,010
State University of New York,
Series 1999 C,
5.500% 07/01/29 1,200,000 1,252,932
State Urban Development Corp.,
Series 1999 C,
6.000% 01/01/29 1,000,000 1,110,940
-----------
3,921,187
-----------
STATE GENERAL OBLIGATIONS - 3.9%
PR Commonwealth of Puerto Rico,
Series 1997,
5.375% 07/01/25 1,500,000 1,543,155
-----------
-----------------------------------------------------------
TRANSPORTATION - 19.7%
AIR TRANSPORTATION - 0.3%
New York City Industrial
Development Agency:
British Airways PLC, Series 2002,
7.625% 12/01/32 100,000 81,647
JFK International Airport,
American Airlines,
Series 2002 B,
8.500% 08/01/28 100,000 56,761
-----------
138,408
-----------
AIRPORTS - 8.6%
Albany County Airport Authority,
Series 1997,
5.500% 12/15/19 1,500,000 1,559,370
Niagara Frontier Transportation Authority,
Series 1999 A,
5.625% 04/01/29 1,750,000 1,818,565
-----------
3,377,935
-----------
TOLL FACILITIES - 5.5%
Triborough Bridge & Tunnel Authority:
Series 1992 Y,
6.125% 01/01/21 1,390,000 1,616,070
Series 2002,
5.500% 11/15/20 500,000 547,510
-----------
2,163,580
-----------
PAR VALUE
----------------------------------------------------------
TRANSPORTATION - 5.3%
Metropolitan Transportation Authority:
Series 2002 A,
5.000% 11/15/30 $ 500,000 $ 494,790
Series 2002 E,
5.500% 11/01/15 500,000 560,190
New York City Transportation Authority,
Series 1999 A,
5.250% 01/01/29 1,000,000 1,013,760
-----------
2,068,740
-----------
-----------------------------------------------------------
UTILITY - 15.2%
INDEPENDENT POWER PRODUCER - 1.9%
New York City Industrial Development
Agency, Brooklyn Navy Yard Partners,
Series 1997,
5.650% 10/01/28 300,000 281,268
Port Authority of New York &
New Jersey, KIAC Partners,
Series 1996 IV,
6.750% 10/01/19 200,000 202,602
PR Commonwealth of Puerto Rico
Industrial, Educational, Medical
& Environmental Cogeneration
Facilities, AES Project,
Series 2000,
6.625% 06/01/26 250,000 257,940
-----------
741,810
-----------
MUNICIPAL ELECTRIC - 6.1%
GM Guam Power Authority,
Series 1999 A,
5.250% 10/01/34 500,000 509,550
Long Island Power Authority:
Series 1998 A,
5.250% 12/01/26 1,000,000 1,011,120
Series 2000 A,
(c) 06/01/19 2,000,000 880,900
-----------
2,401,570
-----------
WATER & SEWER - 7.2%
Albany Municipal Water Finance
Authority, Series 2000 A,
6.375% 12/01/17 200,000 233,220
Buffalo Municipal Water Finance
Authority, Series 1999,
6.000% 07/01/29 1,450,000 1,612,487
Clifton Park Water Authority,
Series 1999 A,
5.000% 10/01/29 1,000,000 989,730
-----------
2,835,437
-----------
TOTAL INVESTMENTS - 97.5%
(cost of $35,008,724) (d) 38,294,234
-----------
OTHER ASSETS & LIABILITIES, NET - 2.5% 980,446
-----------------------------------------------------------
NET ASSETS* - 100.0% $39,274,680
-----------
See notes to investment portfolio.
3
INVESTMENT PORTFOLIO (CONTINUED)
November 30, 2002
NOTES TO INVESTMENT PORTFOLIO:
--------------------------------------------------------------------------------
(a) The Fund has been informed that each issuer has placed direct obligations of
the U.S. Government in an irrevocable trust, solely for the payment of the
interest and principal.
(b) This security, or a portion thereof with a market value of $169,431, is
being used to collateralized open futures contracts.
(c) Zero coupon bond.
(d) Cost for generally accepted accounting principles is $35,008,724. Cost for
federal income tax purposes is $34,956,442. The difference between cost for
generally accepted accounting principles and cost on a tax basis is related
to amortization/accretion tax elections on fixed-income securities.
Short futures contracts open at November 30, 2002:
Par Value Unrealized
Covered by Expiration Appreciation
Type Contracts Month at 11/30/02
--------------------------------------------------------------
10 Year U.S. Treasury Note$9,800,000 March $48,190
-----------
Summary of securities by insurer (unaudited):
% of Total
Insurer Investments
--------------------------------------------------------------
MBIA Insurance Corp. 37.8%
Financial Security Assurance, Inc. 16.7
Ambac Assurance Corp. 15.5
Financial Guaranty Insurance Corp. 7.6
Radian Asset Assurance, Inc. 4.0
Federal Housing Administration 2.7
GNMA Collateralized 1.3
ACA Financial Guaranty Corp. 0.9
-----------
86.5%
-----------
* Net assets represent both Common Shares and Auction Preferred Shares.
See notes to financial statements.
4
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2002
ASSETS:
Investments, at cost $35,008,724
-----------
Investments, at value $38,294,234
Cash 347,228
Interest receivable 696,775
Expense reimbursement due from Advisor 20,996
Deferred Trustees' compensation plan 1,232
-----------
Total Assets 39,360,465
-----------
LIABILITIES:
Payable for:
Futures variation margin 32,156
Distributions-- Preferred Shares 1,780
Management fee 11,287
Pricing and bookkeeping fees 1,664
Trustees' fee 322
Audit fee 23,580
Reports to shareholders 9,447
Deferred Trustees' fee 1,232
Other liabilities 4,317
-----------
Total Liabilities 85,785
-----------
Auction Preferred Shares (564 shares issued
and outstanding at $25,000 per share) 14,100,000
-----------
COMPOSITION OF NET ASSETS APPLICABLE
TO COMMON SHARES:
Paid-in capital - common shares $22,733,027
Undistributed net investment income 134,274
Accumulated net realized loss (1,026,321)
Net unrealized appreciation on:
Investments 3,285,510
Futures contracts 48,190
-----------
Net assets at value applicable to 1,609,743
common shares of beneficial interest
outstanding $25,174,680
-----------
Net asset value per common share $ 15.64
-----------
STATEMENT OF OPERATIONS
For the Year Ended November 30, 2002
INVESTMENT INCOME:
Interest $2,078,977
-----------
EXPENSES:
Management fee 255,386
Pricing and bookkeeping fees 42,117
Trustees' fee 7,023
Preferred shares remarketing commissions 35,388
Transfer agent fee 31,105
Audit fee 27,099
Custody fee 2,656
Reports to shareholders 23,989
Other expenses 10,792
-----------
Total Expenses 435,555
Fees and expenses waived or reimbursed
by Advisor (217,135)
Custody earnings credit (2,514)
-----------
Net Expenses 215,906
-----------
Net Investment Income 1,863,071
-----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FUTURES CONTRACTS:
Net realized gain (loss) on:
Investments 714,021
Futures contracts (654,444)
-----------
Net realized gain 59,577
-----------
Net change in unrealized appreciation/depreciation on:
Investments (186,150)
Futures contracts 1,581
-----------
Net change in unrealized
appreciation/depreciation (184,569)
-----------
Net Loss (124,992)
-----------
Net Increase in Net Assets from Operations 1,738,079
-----------
LESS DISTRIBUTIONS DECLARED TO
PREFERRED SHAREHOLDERS:
From net investment income (191,814)
-----------
Net Increase in Net Assets from Operations
Applicable to Common Shares $1,546,265
-----------
See notes to financial statements.
5
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED NOVEMBER 30,
--------------------------
INCREASE (DECREASE) IN NET ASSETS: 2002 2001
------------------------------------------------------------
OPERATIONS:
Net investment income $ 1,863,071 $ 1,889,342
Net realized gain (loss) on
investments and futures contracts 59,577 (241,059)
Net change in unrealized
appreciation/depreciation
on investments and futures
contracts (184,569) 1,455,505
------------ ------------
Net Increase from Operations 1,738,079 3,103,788
------------ ------------
LESS DISTRIBUTIONS DECLARED
TO PREFERRED SHAREHOLDERS:
From net investment income (191,814) (397,551)
------------ ------------
Net Increase in Net Assets from
Operations Applicable to
Common Shares 1,546,265 2,706,237
------------ ------------
LESS DISTRIBUTIONS DECLARED TO
COMMON SHAREHOLDERS:
From net investment income (1,780,031) (1,338,553)
------------ ------------
SHARE TRANSACTIONS:
Distributions reinvested -
common shares 45,245 --
------------ ------------
Total Increase (Decrease) in
Net Assets Applicable to
Common Shares (188,521) 1,367,684
NET ASSETS APPLICABLE TO
COMMON SHARES:
Beginning of period 25,363,201 23,995,517
------------ ------------
End of period (including
undistributed net investment
income of $134,274 and
$207,841, respectively) $25,174,680 $25,363,201
------------ ------------
YEAR ENDED NOVEMBER 30,
--------------------------
NUMBER OF FUND SHARES: 2002 2001
------------------------------------------------------------
Common Shares:
Issued for distributions reinvested 2,843 --
Outstanding at:
Beginning of period 1,606,900 1,606,900
------------ ------------
End of period 1,609,743 1,606,900
------------ ------------
Preferred Shares:
Outstanding at end of period 564 564
------------ ------------
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
November 30, 2002
NOTE 1. ACCOUNTING POLICIES
ORGANIZATION:
Colonial New York Insured Municipal Fund (the "Fund") is a Massachusetts
business trust registered under the Investment Company Act of 1940 (the "Act"),
as amended, as a non-diversified, closed-end management investment company. The
Fund's investment goal is to provide current income, generally exempt from
ordinary federal income tax and New York State and City personal income taxes.
The Fund is authorized to issue an unlimited number of common shares of
beneficial interest and 564 Auction Preferred Shares ("APS").
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements.
SECURITY VALUATION AND TRANSACTIONS:
Debt securities generally are valued by a pricing service based upon market
transactions for normal, institutional-size trading units of similar securities.
When management deems it appropriate, an over-the-counter or exchange bid
quotation is used.
Options are valued at the last sale price, or in the absence of a sale, the mean
between the last quoted bid and asking price.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Investments for which market quotations are not readily available, or quotations
which management believes are not appropriate, are valued at fair value under
procedures approved by the Board of Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.
The Fund may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Fund to subsequently invest at less advantageous prices.
FEDERAL INCOME TAXES:
Consistent with the Fund's policy to qualify as a regulated investment company
and to distribute all of its taxable and tax-exempt income, no federal income
tax has been accrued.
INTEREST INCOME, DEBT DISCOUNT AND PREMIUM:
Interest income is recorded on the accrual basis. Original issue discount is
accreted to interest income over the life of the security with a corresponding
increase in the cost basis. Premium is amortized against interest income with a
corresponding decrease in the cost basis.
Effective December 1, 2001, the Fund adopted the provisions of the AICPA Audit
and Accounting Guide for Investment Companies and began accreting market
discount on all debt securities. The cumulative effect of this accounting change
did not impact total net assets of the Fund, but resulted in reclassifications
as follows, based on securities held by the Fund on December 1, 2001:
NET UNREALIZED
COST APPRECIATION
------ --------------
$35,207 $(35,207)
The effect of this change, for the year ended November 30, 2002, was as follows:
NET INVESTMENT NET REALIZED NET UNREALIZED
INCOME GAINS APPRECIATION
------ ------- ------------
$18,546 $(1,471) $(17,075)
The Statement of Changes in Net Assets and Financial Highlights for prior
periods have not been restated to reflect this change.
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to common shareholders are recorded on the ex-date.
Distributions to preferred shareholders are recorded daily and are payable at
the end of each dividend period. Each dividend payment period for the APS is
generally seven days. The applicable dividend rate for the APS on November 30,
2002 was 1.20%. For the year ended November 30, 2002, the Fund declared
dividends to Auction Preferred shareholders amounting to $191,814 representing
an average APS dividend rate of 1.36%.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2. FEDERAL TAX INFORMATION
Income and capital gain distributions are determined in accordance with income
tax regulations, which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for discount
accretion on debt securities, straddle deferrals, mark-to-market on futures
contracts, current year distribution payable, capital loss carryforwards, and
non-deductible expenses. Reclassifications are made to the Fund's capital
accounts to reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.
The tax character of distributions paid to common and APS shareholders during
the year was as follows:
TAX-EXEMPT
ORDINARY INCOME INCOME
------------ -----------
$7,894 $1,963,951
As of November 30, 2002, the components of distributable earnings on a tax basis
were as follows:
UNDISTRIBUTED
TAX-EXEMPT UNREALIZED
INCOME APPRECIATION
------------ ---------------
$83,999 $3,385,982
The following capital loss carryforwards are 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 CAPITAL LOSS
EXPIRATION CARRYFORWARD
------ --------------
2008 $265,521
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE:
Colonial Management Associates, Inc. (the "Advisor") is the investment advisor
of the Fund and furnishes accounting and other services and office facilities
for a fee to be paid monthly at the annual rate of 0.65% of the Fund's average
weekly net assets, including assets applicable to the APS. Through November 30,
2004, the Advisor has contractually agreed to waive a portion of the fee so that
it will not exceed 0.35% annually.
PRICING AND BOOKKEEPING FEES:
The Advisor is responsible for providing pricing and bookkeeping services to the
Fund under a Pricing and Bookkeeping Agreement. Under a separate agreement (the
"Outsourcing Agreement"), the Advisor has delegated those functions to State
Street Bank and Trust Company ("State Street"). The Advisor pays fees to State
Street under the Outsourcing Agreement.
Under its pricing and bookkeeping agreement with the Fund, the Advisor receives
from the Fund an annual flat fee of $10,000, paid monthly, and in any month that
the Fund's average weekly net assets, including assets applicable to the APS,
are more than $50 million, a monthly fee equal to the average weekly net assets,
including assets applicable to the APS, of the Fund for that month multiplied by
a fee rate that is calculated by taking into account the fees payable to State
Street under the Outsourcing Agreement. The Fund also pays out-of-pocket costs
for pricing services.
EXPENSE LIMITS:
The Advisor has voluntarily agreed to waive fees and bear certain Fund expenses
to the extent that total expenses (exclusive of management fees, brokerage
commissions, interest, taxes and extraordinary expenses, if any) exceed 0.20%
annually of the Fund's average weekly net assets, including assets applicable to
the APS. This arrangement may be modified or terminated by the Advisor at any
time.
OTHER:
The Fund pays no compensation to its officers, all of whom are employees of the
Advisor or its affiliates.
The Fund's Independent 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.
The Fund has an agreement with its custodian bank under which $2,514 of custody
fees were reduced by balance credits for the year ended November 30, 2002. The
Fund could have invested a portion of the assets utilized in connection with the
expense offset arrangement in an income-producing asset if it had not entered
into such an agreement.
8
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4. PREFERRED SHARES
The Fund currently has outstanding 564 APS. The APS are redeemable at the option
of the Fund on any dividend payment date at the redemption price of $25,000 per
share, plus an amount equal to any dividends accumulated on a daily basis unpaid
through the redemption date (whether or not such dividends have been declared).
Under the Act, the Fund is required to maintain asset coverage of at least 200%
with respect to the APS as of the last business day of each month in which any
APS are outstanding. Additionally, the Fund is required to meet more stringent
asset coverage requirements under the terms of the APS and in accordance with
the guidelines prescribed by the rating agencies. Should these requirements not
be met, or should dividends accrued on the APS not be paid, the Fund may be
restricted in its ability to declare dividends to common shareholders or may be
required to redeem certain of the APS. At November 30, 2002, there were no such
restrictions on the Fund.
Under Emerging Issues Task Force ("EITF") promulgation Topic D-98,
Classification and Measurement of Redeemable Securities, which was issued on
July 19, 2001, preferred securities that are redeemable for cash or other assets
are classified outside of permanent equity to the extent that the redemption is
at a fixed or determinable price and at the option of the holder or upon the
occurrence of an event that is not solely within the control of the issuer.
Subject to the guidance of the EITF, the Fund's preferred shares, which were
previously classified as a component of net assets, have been reclassified
outside of permanent equity (net assets) in the accompanying financial
statements. Prior year amounts have also been reclassified to conform with this
presentation. The impact of this reclassification creates no change to the net
assets available to common shareholders.
NOTE 5. PORTFOLIO INFORMATION
INVESTMENT ACTIVITY:
For the year ended November 30, 2002, purchases and sales of investments, other
than short-term obligations, were $6,264,110 and $7,215,650, respectively.
Unrealized appreciation (depreciation) at November 30, 2002, based on cost of
investments for federal income tax purposes, was:
Gross unrealized appreciation $3,465,573
Gross unrealized depreciation (127,781)
------------
Net unrealized appreciation $3,337,792
------------
OTHER:
There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related events in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.
The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.
The Fund may invest in municipal and U.S. Treasury futures contracts and
purchase and write options on futures. The Fund will invest in these instruments
to hedge against the effects of changes in the value of portfolio securities due
to anticipated changes in interest rates and/or market conditions, for duration
management, or when the transactions are economically appropriate to the
reduction of risk inherent in the management of the Fund and not for trading
purposes. The use of futures contracts and options involves certain risks which
include: (1) imperfect correlation between the price movement of the instruments
and the underlying securities, (2) inability to close out positions due to
different trading hours, or the temporary absence of a liquid market, for either
the instrument or the underlying securities or (3) an inaccurate prediction by
the Advisor of the future direction of interest rates. Any of these risks may
involve amounts exceeding the amount recognized in the Fund's Statement of
Assets and Liabilities at any given time.
Upon entering into a futures contract, the Fund deposits cash or securities with
its custodian in an amount sufficient to meet the initial margin requirement.
Subsequent payments are made or received by the Fund equal to the daily change
in the contract value and are recorded as variation margin payable or receivable
and offset in unrealized gains or losses. The Fund recognizes a realized gain or
loss when the contract is closed or expires. Refer to the Fund's Investment
Portfolio for a summary of open futures contracts at November 30, 2002.
9
FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period is as follows
(common shares unless otherwise noted):
PERIOD
YEAR ENDED NOVEMBER 30, ENDED
------------------------------------- NOVEMBER 30,
2002 2001 2000 1999 (a)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.78 $ 14.93 $ 14.24 $ 14.33
----------- ------------ ------------ ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 1.16(b)(c) 1.18(c) 1.27(d) 0.02
Net realized and unrealized gain (loss) on investments and futures contracts (0.07)(b) 0.75 0.86 (0.08)
----------- ------------ ------------ ----------
Total from Investment Operations 1.09 1.93 2.13 (0.06)
----------- ------------ ------------ ----------
LESS DISTRIBUTIONS DECLARED TO PREFERRED SHAREHOLDERS:
From net investment income (0.12) (0.25) (0.33) --
----------- ------------ ------------ ----------
Total from Investment Operations Applicable to Common Shareholders 0.97 1.68 1.80 (0.06)
----------- ------------ ------------ ----------
LESS DISTRIBUTIONS DECLARED TO COMMON SHAREHOLDERS:
From net investment income (1.11) (0.83) (0.93) --
----------- ------------ ------------ ----------
LESS SHARE TRANSACTIONS:
Offering costs-- common shares -- -- -- (0.03)
Commission and offering costs-- preferred shares -- -- (0.18) --
----------- ------------ ------------ ----------
Total Share Transactions -- -- (0.18) (0.03)
----------- ------------ ------------ ----------
NET ASSET VALUE, END OF PERIOD $ 15.64 $ 15.78 $ 14.93 $ 14.24
----------- ------------ ------------ ----------
Market price per share-- common shares $ 15.86 $ 14.60 $ 14.63 $ 15.06
----------- ------------ ------------ ----------
Total return-- based on market value-- common shares (e) 16.79%(f) 5.63%(f) 3.58%(f) 0.41%(g)
----------- ------------ ------------ ----------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Expenses (h)(i) 0.85%(j) 0.81%(j) 0.32%(j) 0.20%(k)
Net investment income before preferred stock dividend (h)(i) 7.38%(b) 7.49% 8.86% 5.20%(k)
Net investment income after preferred stock dividend (h)(i) 6.62%(b) 5.91% 6.53% 5.20%(k)
Voluntary waiver/reimbursement (i) 0.39% 0.57% 0.18% --%
Portfolio turnover rate 16% 4% 32% 0%(g)
Net assets, end of period (000's)-- common shares $ 25,175 $ 25,363 $ 23,996 $ 22,873
(a)The Fund commenced investment operations on November 19, 1999.
(b)Effective December 1, 2001, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began accreting
market discount on all debt securities. The effect of this change for the
year ended November 30, 2002, was to increase net investment income per share
by $0.01, increase net realized and unrealized loss per share by $0.01,
increase the ratio of net investment income to average net assets from 7.30%
to 7.38% and increase the ratio of net investment income (adjusted for
dividend payments to preferred shareholders) from 6.54% to 6.62%. Per share
data and ratios for periods prior to November 30, 2002 have not been restated
to reflect this change in presentation.
(c)Per share data was calculated using average shares outstanding during the
period.
(d)The per share net investment income amount does not reflect the period's
reclassifications of differences between book and tax basis net investment
income.
(e)Total return at market value assuming all distributions reinvested at prices
calculated in accordance with the Dividend Reinvestment Plan.
(f)Had the Advisor not waived or reimbursed a portion of expenses, total return
would have been reduced.
(g)Not annualized.
(h)The benefits derived from custody credits and directed brokerage
arrangements, if applicable, had an impact of less than 0.01%.
(i)Ratios reflect average net assets available to common shares only.
(j)Ratios calculated using average net assets of the Fund equals 0.55%, 0.52%
and 0.20% for the years ended November 30, 2002, November 30, 2001 and
November 30, 2000, respectively.
(k)Annualized.
ASSET COVERAGE REQUIREMENTS
INVOLUNTARY
ASSET LIQUIDATING AVERAGE
TOTAL AMOUNT COVERAGE PREFERENCE MARKET VALUE
OUTSTANDING PER SHARE PER SHARE PER SHARE
------------------------------------------------------------------------------
11/30/02 $14,100,000 $69,636 $25,003 $25,000
11/30/01 14,100,000 69,970 25,003 25,000
11/30/00* 14,100,000 67,545 25,014 25,000
* On December 20, 1999, the Fund began offering Auction Preferred Shares.
10
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND THE SHAREHOLDERS OF COLONIAL NEW YORK INSURED MUNICIPAL FUND
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Colonial New York Insured Municipal
Fund (the "Fund") at November 30, 2002, and the results of its operations, the
changes in its net assets and its 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 auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 2002 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 20, 2003
11
UNAUDITED INFORMATION
FEDERAL INCOME TAX INFORMATION
99.60% of the distributions from net investment income will be treated as exempt
income for federal income tax purposes.
12
DIVIDEND REINVESTMENT PLAN
COLONIAL NEW YORK INSURED MUNICIPAL FUND
Pursuant to the Fund's Dividend Reinvestment Plan (the "Plan"), all Common
Shareholders whose shares are registered in their own names will have all
distributions reinvested automatically in additional Common Shares of the Fund
by EquiServe Trust Company, N.A. (the "Plan Agent"), as agent under the Plan,
unless a Common Shareholder elects to receive cash. An election to receive cash
may be revoked or reinstated at the option of the Common Shareholder.
Shareholders whose shares are held in the name of a broker or nominee will have
distributions reinvested automatically by the broker or nominee in additional
shares under the Plan, unless the service is not provided by the broker or
nominee, or unless the shareholder elects to receive distributions in cash. If
the service is not available, such distributions will be paid in cash.
Shareholders whose shares are held in the name of a broker or nominee should
contact the broker or nominee for details. All distributions to investors who
elect not to participate (or whose broker or nominee elects not to participate)
in the Plan will be paid by check mailed directly to the record holder by the
Plan Agent, as dividend paying agent.
The Plan Agent will furnish each person who buys shares in the offering with
written information relating to the Plan. Included in such information will be
procedures for electing to receive distributions in cash (or, in the case of
shares held in the name of a broker or nominee who does not participate in the
Plan, procedures for having such shares registered in the name of the
shareholder so that such shareholder may participate in the Plan).
If the Trustees of the Fund declare a dividend (including a capital gain
dividend) payable either in shares or in cash, as holders of shares may have
elected, then nonparticipants in the Plan will receive cash and participants in
the Plan will receive the equivalent in shares valued as set forth below.
Whenever a market price is equal to or exceeds net asset value at the time
shares are valued for the purpose of determining the number of shares equivalent
to the distribution, participants will be issued shares at the net asset value
most recently determined as provided under "Net Asset Value" in the Fund's
prospectus and its Statement of Additional Information, but in no event less
than 95% of the market price. If the net asset value of the shares at such time
exceeds the market price of shares at such time, or if the Fund should declare a
dividend (including a capital gain dividend) payable only in cash, the Plan
Agent will, as agent for the participants, use the cash that the shareholders
would have received as a dividend to buy shares in the open market, the New York
Stock Exchange or elsewhere, for the participants' accounts. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
of the shares, the average per share purchase price paid by the Plan Agent may
exceed the net asset value of the shares, resulting in the acquisition of fewer
shares than if the dividend (including a capital gain dividend) had been paid in
shares issued by the Fund. The Plan Agent will apply all cash received as a
dividend (including a capital gain dividend) to purchase shares on the open
market as soon as practicable after the payment date of such dividend, but in no
event later than 30 days after such date, except where necessary to comply with
applicable provisions of the federal securities laws.
There is no charge to participants for reinvesting dividends (including capital
gain dividends). The Plan Agent's fees for handling the reinvestment of
dividends (including capital gain dividends) will be paid by the Fund. There
will be no brokerage charges with respect to shares issued directly by the Fund
as a result of dividends or capital gains distributions payable either in stock
or in cash. However, each participant will pay a pro rata share of brokerage
commissions incurred with respect to the Plan Agent's open market purchases in
connection with the reinvestment of dividends (including capital gain
dividends).
The automatic reinvestment of dividends (including capital gain dividends) will
not relieve participants of any income tax which may be payable on such
dividends. The amount of the dividend for tax purposes may vary depending on
whether the Fund issues new Common Shares or purchases them on the open market.
The Plan may be amended or terminated on 30 days' written notice to Plan
participants. All correspondence concerning the Plan should be directed to
EquiServe Trust Company, N.A., by mail at P.O. Box 43010, Providence, RI
02940-3010, or by phone at 1-800-730-6001.
13
TRUSTEES
The Trustees serve terms of indefinite duration. The names, addresses and ages
of the Trustees and officers of Colonial New York Insured Municipal Fund, 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.
Year first Number of
elected or portfolios in fund Other
Position with appointed Principal occupation(s) complex overseen directorships
Name, address and age Liberty Funds1 to office during past five years by trustee held
------------------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees
----------------------
Douglas A. Hacker (age 47) Trustee 1996 Executive Vice President-Strategy of United Airlines 103 None
c/o Liberty Funds Group LLC since December 2002 (formerly President of UAL
One Financial Center Loyalty Services and Executive Vice President
Boston, MA 02111 of United Airlines (airline) from September 2001
to December 2002; formerly Executive Vice
President from July 1999 to September 2001);
Chief Financial Officer of United Airlines since
July 1999; Senior Vice President and Chief
Financial Officer of UAL, Inc. prior thereto
Janet Langford Kelly (age 45) Trustee 1996 Executive Vice President-Corporate Development 103 None
c/o Liberty Funds Group LLC and Administration, General Counsel and
One Financial Center Secretary, Kellogg Company (food manufacturer),
Boston, MA 02111 since September 1999; Senior Vice President,
Secretary and General Counsel, Sara Lee
Corporation (branded, packaged, consumer-
products manufacturer) prior thereto
Richard W. Lowry (age 66) Trustee 1995 Private Investor since 1987 (formerly 105*** None
c/o Liberty Funds Group LLC Chairman and Chief Executive Officer, U.S.
One Financial Center Plywood Corporation (building products
Boston, MA 02111 manufacturer))
Salvatore Macera (age 71) Trustee 1998 Private Investor since 1981 (formerly Executive 103 None
c/o Liberty Funds Group LLC Vice President and Director of Itek Corporation
One Financial Center (electronics) from 1975 to 1981)
Boston, MA 02111
Charles R. Nelson (age 60) Trustee 1981 Professor of Economics, University of Washington, 118* None
c/o Liberty Funds Group LLC since January 1976; Ford and Louisa Van Voorhis
One Financial Center Professor of Political Economy, University of
Boston, MA 02111 Washington, since September 1993; Director,
Institute for Economic Research, University of
Washington, since September2001; Adjunct
Professor of Statistics, University of Washington,
since September 1980; Associate Editor, Journal
of Money Credit and Banking, since September,
1993; Trustee, Columbia Funds since July 2002;
consultant on economic and statistical matters
John J. Neuhauser (age 59) Trustee 1985 Academic Vice President and Dean of Faculties 105*** Saucony, Inc.
c/o Liberty Funds Group LLC since August 1999, Boston College (formerly (athletic footwear)
One Financial Center Dean, Boston College School of Management and SkillSoft Corp.
Boston, MA 02111 from September 1977 to September 1999) (e-learning)
Thomas E. Stitzel (age 66) Trustee 1998 Business Consultant since 1999 (formerly 103 None
c/o Liberty Funds Group LLC Professor of Finance from 1975 to 1999 and Dean
One Financial Center from 1977 to 1991, College of Business, Boise State
Boston, MA 02111 University); Chartered Financial Analyst
1 In December 2000, the board of each of the Liberty Funds and Stein Roe Funds
were combined into one board of trustees with common membership. The date
shown is the earliest date on which a trustee was elected to either the
Liberty board or the former Stein Roe Funds board.
14
TRUSTEES (CONTINUED)
Year first Number of
elected or portfolios in fund Other
Position with appointed Principal occupation(s) complex overseen directorships
Name, address and age Liberty Funds to office during past five years by trustee held
------------------------------------------------------------------------------------------------------------------------------------
Disinterested Trustees
----------------------
Thomas C. Theobald (age 65) Trustee 1996 Managing Director, William Blair Capital Partners 103 Xerox Corporation
c/o Liberty Funds Group LLC (private equity investing) since September 1994 (business products
One Financial Center (formerly Chief Executive Officer and Chairman and services),
Boston, MA 02111 of the Board of Directors, Continental Bank Anixter International
Corporation) (network support
equipment distributor),
Jones Lang LaSalle
(real estate management
services) and MONY
Group (life insurance)
Anne-Lee Verville (age 57) Trustee 1998 Author and speaker on educational systems needs 103 Chairman of the
c/o Liberty Funds Group LLC (formerly General Manager, Global Education Board of Directors,
One Financial Center Industry from 1994 to 1997, and President, Enesco Group, Inc.
Boston, MA 02111 Applications Solutions Division from 1991 to (designer, importer
1994, IBM Corporation (global education and and distributor of
global applications)) giftware and
collectibles)
Interested Trustees
-------------------
William E. Mayer** (age 62) Trustee 1994 Managing Partner, Park Avenue Equity Partners 105*** Lee Enterprises
c/o Liberty Funds Group LLC (private equity fund) since February 1999 (print and online
One Financial Center (formerly Founding Partner, Development Capital media), WR Hambrecht
Boston, MA 02111 LLC from November 1996 to February 1999; + Co. (financial
Dean and Professor, College of Business and service provider),
Management, University of Maryland from First Health (health
October 1992 to November 1996) care) and Systech
Retail Systems
(retail industry
technology provider)
Joseph R. Palombo** (age 49) Trustee 2000 Chief Operating Officer of Columbia 103 None
One Financial Center and Management Group, Inc. (Columbia Management
Boston, MA 02111 Chairman Group) since November 2001; formerly Chief
of the Operations Officer of Mutual Funds, Liberty
Board Financial Companies, Inc. from August 2000 to
November 2001; Executive Vice President of Stein
Roe & Farnham, Incorporated (Stein Roe) since
April 1999; Executive Vice President and Director
of Colonial Management Associates, Inc. since
April 1999; Executive Vice President and Chief
Administrative Officer of Liberty Funds Group
LLC (LFG) since April 1999; Director of Stein Roe
since September 2000; Trustee and Chairman of
the Board of Stein Roe Mutual Funds since
October 2000; Manager of Stein Roe Floating
Rate Limited Liability Company since October
2000; Vice President of Galaxy Funds since September
2002; (formerly Vice President of Liberty Funds
from April 1999 to August 2000; Chief Operating
Officer and Chief Compliance Officer, Putnam
Mutual Funds from December 1993 to March 1999)
* In addition to serving as a disinterested trustee of Liberty Funds, Mr.
Nelson serves as a disinterested director of Columbia Funds, currently
consisting of 15 funds, which are advised by an affiliate of the Advisor.
** Mr. Mayer is an "interested person" (as defined in the Investment Company
Act of 1940 ("1940 Act")) by reason of his affiliation with WR Hambrecht +
Co, a registered broker-dealer. Mr. Palombo is an interested person as an
employee of an affiliate of the Advisor.
*** In addition to serving as a trustee of Liberty Funds, Mr. Lowry, Mr.
Neuhauser and Mr. Mayer each serve as a director/trustee of Liberty
All-Star Funds, currently consisting of 2 funds, which are advised by an
affiliate of the Advisor.
15
OFFICERS
Year first
elected or
Position with appointed
Name, address and age Liberty Funds to office Principal occupation(s) during past five years
------------------------------------------------------------------------------------------------------------------------------------
Keith T. Banks (age 47) President 2001 President of Liberty Funds since November 2001; President, Chief Investment
Columbia Management Group, Inc. Officer and Chief Executive Officer of Columbia Management Group or its
590 Madison Avenue, 36th Floor predecessor since August 2000; President, Chief Executive Officer and Chief
New York, NY 10022 Investment Officer of Fleet Investment Advisors Inc. since 2000 (formerly
Managing Director and Head of U.S. Equity, J.P. Morgan Investment Management
from November 1996 to August 2000); President of Galaxy Funds since September
2002
Vicki L. Benjamin (age 41) Chief 2001 Controller of Liberty Funds, Stein Roe and Liberty All-Star Funds since May
One Financial Center Accounting 2002; Chief Accounting Officer of Liberty Funds, Stein Roe and Liberty All-Star
Boston, MA 02111 Officer Funds since June 2001; Controller and Chief Accounting Officer of Galaxy Funds
since September 2002; Vice President of Liberty Funds since April 2001 (formerly
Vice President, Corporate Audit, State Street Bank and Trust Company from May
1998 to April 2001; Audit Manager from July 1994 to June 1997; Senior Audit
Manager from July 1997 to May 1998, Coopers & Lybrand, LLP)
J. Kevin Connaughton (age 38) Treasurer 2000 Treasurer of Liberty Funds and Liberty All-Star Funds since December 2000
One Financial Center (formerly Controller of the Liberty Funds and Liberty All-Star Funds from
Boston, MA 02111 February 1998 to October 2000); Treasurer of Stein Roe Funds since February 2001
(formerly Controller from May 2000 to February 2001); Treasurer of Galaxy Funds
since September 2002; Senior Vice President of Liberty Funds since January 2001
(formerly Vice President from April 2000 to January 2001; Vice President of
Colonial Management Associates, Inc. from February 1998 to October 2000; Senior
Tax Manager; Coopers & Lybrand, LLP from April 1996 to January 1998)
Jean S. Loewenberg (age 57) Secretary 2002 Secretary of Liberty Funds, Stein RoeFunds and Liberty All-Star Funds since
One Financial Center February 2002; General Counsel of Columbia Management Group since December 2001;
Boston, MA 02111 Senior Vice President since November 1996, Assistant General Counsel since
September 2002 of Fleet National Bank (formerly Senior Vice President and Group
Counsel of Fleet National Bank from November 1996 to September 2002)
16
TRANSFER AGENT
IMPORTANT INFORMATION ABOUT THIS REPORT
The Transfer Agent for Colonial New York Insured Municipal Fund is:
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
800-730-6001
The fund mails one shareholder report to each shareholder address. Shareholders
can order additional reports by calling 800-345-6611. In addition,
representatives at that number can provide shareholders information about the
fund.
Financial advisors who want additional information about the fund may speak to a
representative at 800-426-3750.
This report has been prepared for shareholders of Colonial New York Insured
Municipal Fund.
COLONIAL NEW YORK INSURED MUNICIPAL FUND ANNUAL REPORT
IY-02/051M-1102 (01/03) 02/3049