LIBERTY FUNDS TRUST I-IX
LIBERTY FLOATING RATE ADVANTAGE FUND
LIBERTY INVESTMENT GRADE BOND FUND
Plan pursuant to Rule 18f-3(d) under the Investment Company Act of 1940
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Effective April 22, 19961
Amended August 1, 2000
Each series ("Fund") of Liberty Funds Trusts I-IX, Liberty Floating Rate
Advantage Fund and Liberty Investment Grade Bond Fund (the "Trusts") may from
time to time issue one or more of the following classes of shares: Class A
shares, Class B shares, Class C shares, Class E shares, Class F shares, Class I
shares, Class J shares, Class N shares, Class S, Class T shares and Class Z
shares. Each class is subject to such investment minimums and other conditions
of eligibility as set forth in the Funds' prospectuses as from time to time in
effect. The differences in expenses among these classes of shares, and the
conversion and exchange features of each class of shares, are set forth below in
this Plan, which is subject to change, to the extent permitted by law and by the
Declaration of Trust and By-laws of each Trust, by action of the Board of
Trustees of each Trust.
Class A shares
Class A shares are offered at net asset value ("NAV") plus the initial sales
charges described in the Funds' prospectuses as from time to time in effect.
Initial sales charges may not exceed 6.50%, and may be reduced or waived as
permitted by Rule 22d-1 under the Investment Company Act of 1940 (the "1940
Act") and as described in the Funds' prospectuses from time to time in effect.
Purchases of $1 million to $5 million of Class A shares that are redeemed within
18 months from purchase are subject to a contingent deferred sales charge
("CDSC") of 1% of either the purchase price or the NAV of the shares redeemed,
whichever is less. Class A shares are not otherwise subject to a CDSC. The CDSC
may be reduced or waived as permitted by Rule 6c-10 under the 1940 Act and as
described in the Funds' prospectuses as from time to time in effect.
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Class A shares pay service fees pursuant to plans adopted pursuant to Rule 12b-1
under the 1940 Act ("12b-1 Plans") as described in the Funds' prospectuses in
effect from time to time. Such fees may not exceed 0.25% per annum of the
average daily net assets attributable to such class. Class A shares generally do
not pay distribution fees, except that Liberty Tax-Managed Value Fund and
Liberty Tax-Managed Aggressive Growth Fund each pay a distribution fee of 0.05%
per annum of average daily net assets attributable to their respective Class A
shares and Liberty- Floating Rate Advantage Fund, Liberty Strategic Balanced
Fund and Liberty Newport Europe Fund each pay a distribution fee of 0.10% per
annum of average daily net assets attributable to their respective Class A
shares.
Class A shares of any Fund may be exchanged, at the holder's option, for Class A
shares of another Fund without the payment of a sales charge, except that if
shares of any other non-money market fund are exchanged within five months after
purchase for shares of a Fund with a higher sales charge, then the difference in
sales charges must be paid on the exchange.
Class B shares
Class B shares are offered at NAV, without an initial sales charge. Class B
shares that are redeemed within the period of time after purchase (not more than
6 years) specified in each Fund's prospectus as from time to time in effect are
subject to a CDSC of up to 5% of either the purchase price or the NAV of the
shares redeemed, whichever is less; such percentage may be lower for certain
Funds or for purchases of certain minimum amounts and declines the longer the
shares are held, all as described in the Funds' prospectuses as from time to
time in effect. Class B shares purchased with reinvested distributions are not
subject to a CDSC. The CDSC is subject to reduction or waiver in certain
circumstances, as permitted by Rule 6c-10 under the 1940 Act and as described in
the Funds' prospectuses as from time to time in effect.
Class B shares pay distribution and service fees pursuant to 12b-1 Plans as
described in the Funds' prospectuses in effect from time to time. Such fees may
be in amounts up to but may not exceed, respectively, 0.75% and 0.25% per annum
of the average daily net assets attributable to such class.
Class B shares automatically convert to Class A shares of the same Fund eight or
fewer years after purchase as described in the Funds' prospectuses as from time
to time in effect, except that Class B shares purchased through the reinvestment
of dividends and other distributions on Class B shares convert proportionally to
the amount of Class B shares otherwise being converted.
Class B shares of any Fund may be exchanged, at the holder's option, for Class B
shares of another Fund, without the payment of a CDSC. The holding period for
determining the CDSC and the conversion to Class A shares will include the
holding period of the shares exchanged. If the Class B shares received in the
exchange are subsequently redeemed, the amount of the CDSC, if any, will be
determined by the schedule of the Fund in which the original investment was
made, except if additional purchases of Class B shares exceed a CDSC reduction
level as described in the exchanged Fund's prospectus from time to time, the
shares in excess of the CDSC reduction level will receive the applicable lower
CDSC and reduced holding period.
Class C shares
Class C shares are offered at NAV without an initial sales charge. Class C
shares that are redeemed within one year from purchase may be subject to a CDSC
of 1% of either the purchase price or the NAV of the shares redeemed, whichever
is less. Class C shares purchased with reinvested dividends or capital gain
distributions are not subject to a CDSC. The CDSC may be reduced or waived in
certain circumstances as permitted by Rule 6c-10 under the 1940 Act and as
described in the Funds' prospectuses as from time to time in effect.
Class C shares pay distribution and service fees pursuant to 12b-1 Plans, as
described in the Funds' prospectuses in effect from time to time. Such fees may
be in amounts up to but may not exceed, respectively, 0.75% and 0.25% per annum
of the average daily net assets attributable to such class.
Class C shares of any Fund may be exchanged for Class C shares of any other Fund
that offers Class C shares. The holding period for determining whether a CDSC
will be charged will include the holding period of the shares exchanged. Only
one exchange of any Fund's Class C shares may be made in any three month period.
For this purpose, an exchange into any Fund and a prior or subsequent exchange
out of the Fund constitutes "one exchange."
Class E shares
Class E shares are offered at NAV plus the initial sales charges described in
the Fund's prospectus as from time to time in effect. Initial sales charges may
not exceed 4.50%, and may be reduced or waived as permitted by Rule 22d-1 under
the 1940 Act and as described in the Fund's prospectus from time to time in
effect.
Purchases of $1 million to $5 million of Class E shares that are redeemed within
18 months from purchase are subject to the same CDSC on the same basis as Class
A shares. Class E shares are not otherwise subject to a CDSC. The CDSC may be
reduced or waived as permitted by Rule 6c-10 under the 1940 Act and as described
in the Fund's prospectus as from time to time in effect.
Class E shares pay distribution and service fees pursuant to 12b-1 Plans, as
described in the Fund's prospectus in effect from time to time. Such fees may be
in amounts up to but may not exceed, respectively, 0.10% and 0.25% per annum of
the average daily net assets attributable to such class.
Class E shares may not be exchanged for shares of any other Fund.
Class F shares
Class F shares are offered at NAV without an initial sales charge and subject to
the same declining CDSC, distribution and service fees as Class B shares. Class
F shares automatically convert to Class E shares eight years after purchase,
except that Class F shares purchased through the reinvestment of dividends and
other distributions on Class F shares convert proportionally to the amount of
Class E shares being converted.
Class F shares pay distribution and service fees pursuant to 12b-1 Plans, as
described in the Fund's prospectus in effect from time to time. Such fees may be
in amounts up to but may not exceed, respectively, 0.75% and 0.25% per annum of
the average daily net assets attributable to such class.
Class F shares may not be exchanged for shares of any other Fund.
Class I shares
Class I shares are offered at NAV, without an initial sales charge or CDSC.
Class I shares do not pay fees under a Rule 12b-1 Plan. Class I shares of a Fund
may only be exchanged for Class I shares of another Fund.
Class J shares
Class J shares are offered at NAV, plus the initial sales charges described in
the Funds' prospectuses as from time to time in effect. Initial sales charges
may not exceed 3.00%, and may be reduced or waived as permitted by Rule 22d-1
under the 1940 Act and as described in the Funds' prospectuses from time to time
in effect.
Class J shares pay distribution and service fees pursuant to 12b-1 Plans as
described in the Funds' prospectuses in effect from time to time. Such fees may
be in amounts up to but may not exceed, respectively, 0.35% and 0.25% per annum
of the average daily net assets attributable to such class.
Class J shares also bear certain expenses of offering and distribution in Japan,
such as registration and prospectus translation expenses.
Class J shares may only be exchanged for Class J shares of another Fund.
Class N shares
Class N shares are offered at NAV, without an initial sales charge. Class N
shares that are redeemed within the period of time after purchase (not more than
5 years) specified in each Fund's prospectus as from time to time in effect are
subject to a CDSC of up to 3% of either the purchase price or the NAV of the
shares redeemed, whichever is less; such percentage may be lower for certain
Funds or for purchases of certain minimum amounts and declines the longer the
shares are held, all as described in the Funds' prospectuses as from time to
time in effect. Class N shares purchased with reinvested distributions are not
subject to a CDSC. The CDSC is subject to reduction or waiver in certain
circumstances, as permitted by Rule 6c-10 under the 1940 Act and as described in
the Funds' prospectuses as from time to time in effect.
Class N shares pay distribution and service fees pursuant to 12b-1 Plans as
described in the Funds' prospectuses in effect from time to time. Such fees may
be in amounts up to but may not exceed, respectively, 0.75% and 0.25% per annum
of the average daily net assets attributable to such class.
Class N shares automatically convert to Class J shares of the same Fund five
years after purchase as described in the Funds' prospectuses as from time to
time in effect, except that Class N shares purchased through the reinvestment of
dividends and other distributions on Class N shares convert proportionally to
the amount of Class N shares otherwise being converted.
Class N shares also bear certain expenses of offering and distribution in Japan,
such as registration and prospectus translation expenses.
Class N shares may not be exchanged for shares of any other Fund.
Class S shares
Class S shares are offered at NAV, without an initial sales charge or CDSC.
Class S shares do not pay fees under a 12b-1 Plan. Class S shares of a Fund may
be exchanged for the Class S shares of another Fund.
Class T shares
Class T shares are offered at NAV plus the initial sales charges described in
the Funds' prospectuses as from time to time in effect. The sales charge may not
exceed 6.50%, and may be reduced or waived as permitted by Rule 22d-1 under the
1940 Act and as described in the Funds' prospectuses from time to time in
effect.
Purchases of $1 million or more of Class T shares that are redeemed within 18
months from purchase are subject to a CDSC of 1% of either the purchase price or
the NAV of the shares redeemed, whichever is less. Class T shares are not
otherwise subject to a CDSC. The CDSC may be reduced or waived as permitted by
Rule 6c-10 under the 1940 Act and as described in the Funds' prospectuses as
from time to time in effect.
Class T shares do not pay fees pursuant to a 12b-1 Plan. Class T shares of a
Fund may only be exchanged for Class A shares of another Fund.
Class Z shares
Class Z shares are offered at NAV, without an initial sales charge or CDSC.
Class Z shares do not pay fees under a 12b-1 Plan. Class Z shares of a Fund may
be exchanged for the Class A or Class Z shares of another Fund.
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1 Liberty Funds Trusts I-VII (the "Trusts") have been offering multiple classes
of shares, prior to the effectiveness of this Plan, pursuant to an exemptive
order of the Securities and Exchange Commission. This Plan is intended to permit
the Trusts to offer multiple classes of shares pursuant to Rule 18f-3 under the
Investment Company Act of 1940, without any change in the arrangements and
expense allocations that have been approved by the Board of Trustees of each
Trust under such order of exemption.
