File No. 333-87177
Rule 497(e)
LIBERTY-STEIN ROE ADVISOR FLOATING RATE FUND
Supplement to Statement of Additional Information Dated
November 1, 1999
_____________
The following changes are hereby made to this Statement of
Additional Information (SAI) of Liberty-Stein Roe Advisor Floating
Rate Fund (Fund):
1. The Fund's address is One Financial Center, Boston,
Massachusetts 02110.
2. The following new section is added to this SAI:
PROGRAMS FOR REDUCING OR ELIMINATING SALES CHARGES
Right of Accumulation and Statement of Intent (Class A shares
only). Reduced sales charges on Class A shares can be effected by
combining a current purchase with prior purchases of Class A, B, C
and Z shares of the funds distributed by Liberty Funds
Distributor, Inc. (LFD). The applicable sales charge is based on
the combined total of:
1. the current purchase; and
2. the value at the public offering price at the close of
business on the previous day of all funds' Class A shares
held by the shareholder (except shares of any money market
fund, unless such shares were acquired by exchange from Class
A shares of another fund other than a money market fund and
Class B, C and Z shares).
LFD must be promptly notified of each purchase which entitles
a shareholder to a reduced sales charge. Such reduced sales
charge will be applied upon confirmation of the shareholder's
holdings by LFS. A fund may terminate or amend this Right of
Accumulation.
Any person may qualify for reduced sales charges on purchases
of Class A shares made within a thirteen-month period pursuant to
a Statement of Intent ("Statement"). A shareholder may include,
as an accumulation credit toward the completion of such Statement,
the value of all Class A, B, C and Z shares held by the
shareholder on the date of the Statement in funds (except shares
of any money market fund, unless such shares were acquired by
exchange from Class A shares of another non-money market fund).
The value is determined at the public offering price on the date
of the Statement. Purchases made through reinvestment of
distributions do not count toward satisfaction of the Statement.
During the term of a Statement, LFS will hold shares in
escrow to secure payment of the higher sales charge applicable to
Class A shares actually purchased. Dividends and capital gains
will be paid on all escrowed shares and these shares will be
released when the amount indicated has been purchased. A
Statement does not obligate the investor to buy or a fund to sell
the amount of the Statement.
If a shareholder exceeds the amount of the Statement and
reaches an amount which would qualify for a further quantity
discount, a retroactive price adjustment will be made at the time
of expiration of the Statement. The resulting difference in
offering price will purchase additional shares for the
shareholder's account at the applicable offering price. As a part
of this adjustment, the financial service firm ("FSF") shall
return to LFD the excess commission previously paid during the
thirteen-month period.
If the amount of the Statement is not purchased, the
shareholder shall remit to LFD an amount equal to the difference
between the sales charge paid and the sales charge that should
have been paid. If the shareholder fails within twenty days after
a written request to pay such difference in sales charge, LFS will
redeem that number of escrowed Class A shares to equal such
difference. The additional amount of FSF discount from the
applicable offering price shall be remitted to the shareholder's
FSF of record.
Additional information about and the terms of Statements of
Intent are available from your FSF, or from LFS at 1-800-426-3750.
Reinstatement Privilege. An investor who has redeemed Class
A, B or C shares may, upon request, reinstate within one year a
portion or all of the proceeds of such sale in shares of the same
Class of any fund at the NAV next determined after LFSI receives a
written reinstatement request and payment. Any EWC paid at the
time of the redemption will be credited to the shareholder upon
reinstatement. The period between the redemption and the
reinstatement will not be counted in aging the reinstated shares
for purposes of calculating any EWC or conversion date. Investors
who desire to exercise this privilege should contact their FSF or
LFS. Shareholders may exercise this Privilege an unlimited number
of times. Exercise of this privilege does not alter the Federal
income tax treatment of any capital gains realized on the prior
sale of fund shares, but to the extent any such shares were sold
at a loss, some or all of the loss may be disallowed for tax
purposes. Consult your tax advisor.
Privileges of Stein Roe Employees or Financial Service.
Class A shares of certain funds may be sold at NAV to the
following individuals whether currently employed or retired:
Trustees of funds advised or administered by the Advisor;
directors, officers and employees of the Advisor, LFD and other
companies affiliated with the Advisor; registered representatives
and employees of FSFs (including their affiliates) that are
parties to dealer agreements or other sales arrangements with LFD;
and such persons' families and their beneficial accounts.
Sponsored Arrangements. Class A shares may be purchased at
reduced or no sales charge pursuant to sponsored arrangements,
which include programs under which an organization makes
recommendations to, or permits group solicitation of, its
employees, members or participants in connection with the purchase
of shares of the Fund on an individual basis. The amount of the
sales charge reduction will reflect the anticipated reduction in
sales expense associated with sponsored arrangements. The
reduction in sales expense, and therefore the reduction in sales
charge, will vary depending on factors such as the size and
stability of the organization's group, the term of the
organization's existence and certain characteristics of the
members of its group. The Fund reserves the right to revise the
terms of or to suspend or discontinue sales pursuant to sponsored
plans at any time.
Class A shares may also be purchased at reduced or no sales
charge by clients of dealers, brokers or registered investment
advisors that have entered into agreements with LFD pursuant to
which the Fund is included as investment options in programs
involving fee-based compensation arrangements, and by participants
in certain retirement plans.
Waiver of Early Withdrawal Charges (EWCs). EWCs may be
waived on redemptions in the following situations with the proper
documentation:
1. Death. EWCs may be waived on redemptions within one year
following the death of (i) the sole shareholder on an
individual account, (ii) a joint tenant where the surviving
joint tenant is the deceased's spouse, or (iii) the
beneficiary of a Uniform Gifts to Minors Act (UGMA), Uniform
Transfers to Minors Act (UTMA) or other custodial account.
If, upon the occurrence of one of the foregoing, the account
is transferred to an account registered in the name of the
deceased's estate, the EWC will be waived on any redemption
from the estate account occurring within one year after the
death. If the Class B shares are not redeemed within one year
of the death, they will remain subject to the applicable EWC,
when redeemed from the transferee's account. If the account
is transferred to a new registration and then a redemption is
requested, the applicable EWC will be charged.
2. Disability. EWCs may be waived on redemptions occurring
within one year after the sole shareholder on an individual
account or a joint tenant on a spousal joint tenant account
becomes disabled (as defined in Section 72(m)(7) of the
Internal Revenue Code). To be eligible for such waiver, (i)
the disability must arise after the purchase of shares and
(ii) the disabled shareholder must have been under age 65 at
the time of the initial determination of disability. If the
account is transferred to a new registration and then a
redemption is requested, the applicable EWC will be charged.
3. Death of a trustee. EWCs may be waived on redemptions
occurring upon dissolution of a revocable living or grantor
trust following the death of the sole trustee where (i) the
grantor of the trust is the sole trustee and the sole life
beneficiary, (ii) death occurs following the purchase and
(iii) the trust document provides for dissolution of the trust
upon the trustee's death. If the account is transferred to a
new registration (including that of a successor trustee), the
applicable EWC will be charged upon any subsequent redemption.
4. Returns of excess contributions. EWCs may be waived on
redemptions required to return excess contributions made to
retirement plans or individual retirement accounts, so long as
the FSF agrees to return the applicable portion of any
commission paid by Colonial.
5. Qualified Retirement Plans. EWCs may be waived on redemptions
required to make distributions from qualified retirement plans
following normal retirement (as stated in the Plan document).
EWCs also will be waived on SWP redemptions made to make
required minimum distributions from qualified retirement plans
that have invested in funds distributed by LFDI for at least
two years.
The EWC also may be waived where the FSF agrees to return all
or an agreed upon portion of the commission earned on the sale of
the shares being redeemed.
3. The section of this SAI entitled "Transfer Agent" is restated
in its entirety as follows:
TRANSFER AGENT
Liberty Funds Services, Inc. ("LFS") performs certain
transfer agency services for the Fund, as described under
"Management of the Fund" in the Prospectus. For performing these
services, the Fund pays LFS a fee at the annual rate of 0.170 of
1% of its average daily net assets. The Board believes the
charges by LFS to the Fund are comparable to those of other
companies performing similar services. (See "Investment Advisory
and Other Services.") Under a separate agreement, SSI also
provides certain investor accounting services to the Portfolio.
This Supplement is Dated February 1, 2000
