COLONIAL HIGH YIELD SECURITIES FUND
Supplement to the April 30, 1998 Prospectus,
Revised September 8, 1998 Prospectus
The Fund's Prospectus is amended as follows:
(1) The last sentence of the fourteenth paragraph and the paragraph Borrowing
of Money under the caption HOW THE FUND PURSUES ITS OBJECTIVE AND CERTAIN RISK
FACTORS are revised in their entireties as follows:
(a) Not more than 15% of the Fund's net assets will be invested in repurchase
agreements maturing in more than seven days and other illiquid assets.
(b) Borrowing of Money. The Fund may borrow money from banks, other affiliated
funds and other entities to the extent permitted by law for temporary or
emergency purposes up to 33 1/3% of its total assets.
(1) Effective January 25, 1999, Andrea Feingold no longer manages the Fund.
(3) Effective January 25, 1999, the fourth paragraph under the caption HOW THE
FUND IS MANAGED is revised in its entirety as follows:
Carl C. Ericson, Senior Vice President, Director and Manager of the Taxable
Fixed Income Group of the Advisor, manages the Fund and has managed various
other Colonial taxable income funds since 1985.
(4) The paragraph under the caption YEAR 2000 is revised in its entirety
as follows:
The Fund's Advisor, Distributor and Transfer Agent (Liberty Companies) are
actively managing Year 2000 readiness for the Fund. The Liberty Companies are
taking steps that they believe are reasonably designed to address the Year 2000
problem and are communicating with vendors who provide services, software and
systems to the Fund to provide that date-related information and data can be
properly processed and calculated on and after January 1, 2000. Many Fund
service providers and vendors, including the Liberty Companies, are in the
process of making Year 2000 modifications to their software and systems and
believe that such modifications will be completed on a timely basis prior to
January 1, 2000. The Fund will not pay the cost of these modifications. However,
no assurances can be given that all modifications required to ensure proper data
processing and calculation on and after January 1, 2000 will be timely made or
that services to the Fund will not be adversely affected.
(5) The last sentence under the caption HOW THE FUND VALUES ITS SHARES is
revised in its entirety as follows:
In addition, if the values of foreign securities have been materially affected
by events occurring after the closing of a foreign market, the foreign
securities may be valued at their fair value.
(6) The last sentence of the first paragraph under the caption HOW TO SELL
SHARES is revised in its entirety as follows:
To avoid delay in payment, investors are advised to purchase shares
unconditionally, such as by federal fund wire or other immediately available
funds.
(7) The following sentence is added to the paragraph Class A Shares under the
caption HOW TO EXCHANGE SHARES:
Exchanges of Class A shares are not subject to a contingent deferred sales
charge. However, in determining whether a contingent deferred sales charge is
applicable to redemptions, the schedule of the fund into which the original
investment was made should be used.
(8) Under the caption TELEPHONE TRANSACTIONS, the first sentence is revised in
its entirety and new second and third sentences are added as follows:
All shareholders and/or their financial advisers are automatically eligible to
exchange Fund shares and redeem up to $100,000 of Fund shares by calling
1-800-422-3737 toll-free any business day between 9:00 a.m Eastern Time and the
time at which the Fund values its shares. Telephone redemptions are limited to a
total of $100,000 in a 30-day period. Redemptions that exceed $100,000 may be
done by placing a wire order trade through a broker or furnishing a signature
guaranteed request.
HY-36/613G-0299 January 25, 1999
