SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section
14(a) of the Securities Exchange Act of 1934
Filed by the Registrant [ X ]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ X ] Preliminary Proxy Statement
[ ] Confidential, For Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
LIBERTY FUNDS TRUST I
Liberty High Yield Securities Fund
Liberty Income Fund
Liberty Strategic Income Fund
Liberty Tax-Managed Aggressive Growth Fund
Liberty Tax-Managed Value Fund
LIBERTY FUNDS TRUST II
Liberty Intermediate Government Fund
Liberty Money Market Fund
Liberty Newport Greater China Fund
Liberty Newport Japan Opportunities Fund
LIBERTY FUNDS TRUST III
Liberty Contrarian Fund
Liberty Contrarian Equity Fund
Liberty Contrarian Income Fund
Liberty Federal Securities Fund
Liberty Newport Global Utilities Fund
Liberty Newport International Equity Fund
Liberty Real Estate Fund
Liberty Select Value Fund
The Liberty Fund
Liberty Special Fund
LIBERTY FUNDS TRUST IV
Liberty Counselor Balanced Portfolio
Liberty Counselor Growth Portfolio
Liberty Counselor Income Portfolio
Liberty High Yield Municipal Fund
Liberty Tax-Exempt Fund
Liberty Tax-Exempt Insured Fund
Liberty Municipal Money Market Fund
Liberty Utilities Fund
LIBERTY FUNDS TRUST V
Colonial California Tax-Exempt Fund
Colonial Connecticut Tax-Exempt Fund
Colonial Massachusetts Tax-Exempt Fund
Colonial New York Tax-Exempt Fund
Colonial Ohio Tax-Exempt Fund
LIBERTY FUNDS TRUST VI
Liberty Growth & Income Fund
Liberty Newport Asia Pacific Fund
LIBERTY FUNDS TRUST VII
Liberty Newport Europe Fund
Liberty Newport Tiger Fund
LIBERTY FLOATING RATE ADVANTAGE FUND
------------------------------------------
(Name of Registrant as Specified In Its Charter)
------------------------------------------
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[ X ] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
1) Title of each class of securities to which transaction applies:
2) Aggregate number of securities to which transaction applies:
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pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
4) Proposed maximum aggregate value of transaction:
5) Total fee paid:
<PAGE>
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by registration
statement number, or the form or schedule and the date of its filing.
1) Amount Previously Paid:
2) Form, Schedule or Registration Statement No.:
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4) Date Filed:
<PAGE>
LIBERTY MUTUAL FUNDS
One Financial Center, Boston, Massachusetts 02111
Dear Shareholder:
Your Fund will hold a special meeting on December 27, 2000 at 10:00 a.m. Eastern
Time, at the offices of Colonial Management Associates, Inc. (Colonial). An
exhibit summarizing the proposals and the voting process (Exhibit A) and formal
Notice of Special Meetings of Shareholders appear on the next few pages,
followed by the proxy statement which explains in more detail the proposals to
be considered. We hope that you can attend the Meeting in person; however, we
urge you in any event to vote your shares at your earliest convenience.
YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU OWN. YOU CAN VOTE
EASILY AND QUICKLY AT OUR WEB SITE, BY MAIL, BY FAX (NOT AVAILABLE FOR ALL
SHAREHOLDERS; REFER TO ENCLOSED PROXY INSERT), BY PHONE OR IN PERSON. TO VOTE
THROUGH OUR WEB SITE, JUST FOLLOW THE SIMPLE INSTRUCTIONS THAT APPEAR ON THE
ENCLOSED PROXY INSERT. A SELF-ADDRESSED, POSTAGE-PAID ENVELOPE HAS BEEN ENCLOSED
FOR YOUR CONVENIENCE. PLEASE HELP YOUR FUND AVOID THE EXPENSE OF A FOLLOW-UP
MAILING BY VOTING TODAY!
Your Fund is using Shareholder Communications Corporation (SCC), a professional
proxy solicitation firm, to assist shareholders in the voting process. As the
date of the special meeting approaches, if we have not yet received your vote,
you may receive a telephone call from SCC reminding you to exercise your right
to vote.
Please take a few moments to review the details of each proposal. If you have
any questions regarding the proxy statement, please feel free to call SCC at
1-800-732-3683. Our hearing impaired shareholders may call Liberty Funds
Services, Inc., the Liberty Mutual Funds' transfer agent, at 1-800-528-6979 if
you have special TTD equipment.
We appreciate your participation and prompt response in these matters and thank
you for your continued support.
Sincerely,
[GRAPHIC OMITTED][GRAPHIC OMITTED]
Stephen E. Gibson, President
November 13, 2000
[Job Code]
<PAGE>
EXHIBIT A
Throughout this exhibit and the proxy statement, the Funds listed on the
following Notice of Special Meetings of Shareholders are referred to
collectively as the "Liberty Mutual Funds" and the Trusts listed on the Notice
of Special Meetings of Shareholders are referred to collectively as the
"Trusts."
The following table lists the proposals, the affected Funds and the page of the
proxy statement the proposals are discussed in greater detail:
------------------------------------ --------------------------------- ---------
Liberty Mutual Fund Whose
Shareholders are Entitled to Table of
Proposals Vote Contents
------------------------------------ --------------------------------- ---------
------------------------------------ --------------------------------- ---------
1. To elect a Board of Trustees Each Liberty Mutual Fund Page
of each Trust.
------------------------------------ --------------------------------- ---------
------------------------------------ --------------------------------- ---------
2. To approve new portfolio Liberty Newport Global Page
management agreements with Newport Utilities Fund and Liberty
Fund Management, Inc. Newport International Equity
Fund
------------------------------------ --------------------------------- ---------
------------------------------------ --------------------------------- ---------
3. To approve a sub-advisory The Liberty Fund Page
agreement with Unibank Securities,
Inc.
------------------------------------ --------------------------------- ---------
------------------------------------ --------------------------------- ---------
4. To elect a Board of Trustees Liberty Money Market Fund and Page
of the SR&F Base Trust. Liberty Municipal Money Market
Fund
------------------------------------ --------------------------------- ---------
<PAGE>
VOTING PROCESS.
You can vote in any one of the following five ways:
a. By mail, by filling out and returning the enclosed proxy card;
b. By phone, by calling 1-800-732-3683 and following the
instructions;
c. By internet, by visiting our Web site at www.libertyfunds.com
and clicking on "Proxy Voting;"
d. By fax (not available for all shareholders; refer to enclosed
proxy insert); or
e. In person at the Meeting.
Shareholders who owned shares on the record date, September 29, 2000, are
entitled to vote at the meeting. Shareholders are entitled to cast one vote for
each share owned on the record date. We encourage you to vote by internet, using
the 12-digit or 14-digit "control" number that appears on the enclosed proxy
card. Voting by internet will reduce expenses by saving postage costs. If you
choose to vote by mail or by fax, and you are an individual account owner,
please sign exactly as your name appears on the proxy card. Either owner of a
joint account may sign the proxy card, but the signer's name must exactly match
the name that appears on the card. Whichever method you choose, please carefully
read the proxy statement which outlines in more detail the proposals you are
asked to vote on.
<PAGE>
4
NOTICE OF SPECIAL MEETINGS OF SHAREHOLDERS
TO BE HELD ON DECEMBER 27, 2000
LIBERTY FUNDS TRUST I LIBERTY FUNDS TRUST IV
Liberty Counselor Balanced Portfolio
Liberty High Yield Securities Fund Liberty Counselor Growth Portfolio
Liberty Income Fund Liberty Counselor Income Portfolio
Liberty High Yield Municipal Fund
Liberty Strategic Income Fund Liberty Tax-Exempt Fund
Liberty Tax-Managed Aggressive Liberty Tax-Exempt Insured Fund
Growth Fund
Liberty Tax-Managed Value Fund Liberty Municipal Money Market Fund
Liberty Utilities Fund
LIBERTY FUNDS TRUST II LIBERTY FUNDS TRUST V
Liberty Intermediate Government Liberty California Tax-Exempt Fund
Fund Liberty Connecticut Tax-Exempt Fund
Liberty Money Market Fund Liberty Massachusetts Tax-Exempt Fund
Liberty New York Tax-Exempt Fund
Liberty Newport Greater China Liberty Ohio Tax-Exempt Fund
Fund
Liberty Newport Japan
Opportunities Fund
LIBERTY FUNDS TRUST VI
LIBERTY FUNDS TRUST III Liberty Growth & Income Fund
Liberty Contrarian Fund Liberty Newport Asia Pacific Fund
Liberty Contrarian Equity Fund
Liberty Contrarian Income Fund LIBERTY FUNDS TRUST VII
Liberty Newport Europe Fund
Liberty Federal Securities Fund Liberty Newport Tiger Fund
Liberty Newport Global Utilities
Fund
Liberty Newport International LIBERTY FLOATING RATE ADVANTAGE FUND
Equity Fund
Liberty Real Estate Fund
Liberty Select Value Fund
The Liberty Fund
Liberty Special Fund
<PAGE>
NOTICE IS HEREBY GIVEN that Special Meetings of Shareholders of the Liberty
Mutual Funds listed above will be held at 10:00 a.m. on Wednesday, December 27,
2000 at the offices of Colonial Management Associates, Inc., One Financial
Center, Boston, Massachusetts 02111 for these purposes:
1. Shareholders of each Liberty Mutual Fund: To elect a Board of Trustees
of the Trust of which such Liberty Mutual Fund is a series;
2. Shareholders of Liberty Newport Global Utilities Fund and Liberty
Newport International Equity Fund: To approve a new portfolio
management agreement for each Fund with Newport Fund Management, Inc.;
3. Shareholders of The Liberty Fund: To approve a sub-advisory agreement
with Unibank Securities, Inc.;
4. Shareholders of Liberty Money Market Fund and Liberty Municipal Money
Market Fund: To elect a Board of Trustees of the SR&F Base Trust; and
5. To consider and act upon any other matters that properly come before
the meeting and any adjourned session of the meeting.
Shareholders of record at the close of business on September 29, 2000, are
entitled to notice of and to vote at the meeting and any adjourned session.
By order of the Board of Trustees,
William J. Ballou, Secretary
November 13, 2000
NOTICE: YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU
OWN. YOU CAN VOTE EASILY AND QUICKLY AT OUR WEB SITE, BY PHONE,
BY MAIL, BY FAX (NOT AVAILABLE FOR ALL SHAREHOLDERS; REFER TO
ENCLOSED PROXY INSERT) OR IN PERSON. TO VOTE THROUGH OUR WEB
SITE, JUST FOLLOW THE SIMPLE INSTRUCTIONS THAT APPEAR ON THE
ENCLOSED PROXY INSERT. PLEASE HELP YOUR FUND AVOID THE EXPENSE
OF A FOLLOW-UP MAILING BY VOTING TODAY!
<PAGE>
SPECIAL MEETINGS OF SHAREHOLDERS
LIBERTY MUTUAL FUNDS
PROXY STATEMENT
General Information
November 13, 2000
This proxy statement, which is divided into the following four parts, is a
combined proxy statement for all of the Liberty Mutual Funds listed in the
Notice of Special Meetings of Shareholders:
Part 1. Overview. Page
Part 2. Proposals. Page
Part 3. Information Regarding Voting and Shareholder
Meetings. Page
Part 4. Fund Information. Page
If at any time you have any questions regarding the information contained in the
proxy statement, please call SCC at 1-800-732-3683. This proxy statement was
first mailed to shareholders on or about November 13, 2000.
PART 1. OVERVIEW.
The Boards of Trustees of the Trusts listed on the Notice of Special Meetings of
Shareholders (Trusts) and the SR&F Base Trust have called Special Meetings of
Shareholders for 10:00 a.m. Eastern Time, Wednesday, December 27, 2000, for the
purposes described in the accompanying Notice of Special Meetings of
Shareholders and as summarized below. The purpose of this proxy statement is to
provide you with additional information regarding the proposals to be voted on
at the meeting and to request your proxy to vote in favor of the proposals.
Set forth below is a summary of each proposal that the Boards of Trustees
recommends that you consider:
PROPOSAL 1. ELECT A BOARD OF TRUSTEES OF EACH TRUST.
We ask that you consider the election of eleven nominees as members of the Board
of Trustees of each Trust. Each nominee, if elected, will serve as a trustee of
the Trusts until the next meeting of shareholders or until a successor is
elected, or until death, resignation, removal or retirement.
PROPOSAL 2. APPROVE NEW PORTFOLIO MANAGEMENT AGREEMENTS WITH NEWPORT
FUND MANAGEMENT, INC. (Liberty Newport Global Utilities Fund
and Liberty Newport International Equity Fund).
We ask that you approve new portfolio management agreements with Newport Fund
Management, Inc. for Liberty Newport Global Utilities Fund and Liberty Newport
International Equity Fund.
<PAGE>
PROPOSAL 3. APPROVE A SUB-ADVISORY AGREEMENT
WITH UNIBANK SECURITIES, INC. (The Liberty Fund).
We ask that you approve a new sub-advisory agreement with Unibank Securities,
Inc. for The Liberty Fund.
<PAGE>
PROPOSAL 4. ELECT A BOARD OF TRUSTEES OF THE SR&F BASE TRUST
(Liberty Money Market Fund and Liberty Municipal Money
Market Fund).
We ask that you consider the election of eleven nominees as members of the Board
of Trustees of the SR&F Base Trust. Each nominee, if elected, will serve as a
trustee of the SR&F Base Trust until the next meeting of shareholders or until a
successor is elected, or until death, resignation, removal or retirement.
PART 2. PROPOSALS.
PROPOSAL 1. ELECT A BOARD OF TRUSTEES.
The purpose of this proposal is to elect four new members as well as seven of
the currently serving members of the Boards of Trustees of the Trusts. All of
the nominees listed below, except for the proposed four new members (Ms. Kelly
and Messrs. Hacker, Nelson and Theobald), are currently members of the Boards of
Trustees of the Trusts, as well as nine Liberty closed-end funds (and, in the
case of Messrs. Lowry, Mayer and Neuhauser, one) other Liberty open-end trusts
(collectively, the "Liberty Fund Complex"), and have served in that capacity
continuously since originally elected or appointed. All of the currently serving
members, other than Mr. Palombo, have been previously elected to those Boards by
the shareholders of the Liberty Fund Complex. The proposed four new members
currently serve on the Boards of Trustees of two Stein Roe closed-end funds and
seven Stein Roe open-end trusts (collectively, the "Stein Roe Funds"), and were
recommended for election as Trustees of the Trusts by the Boards of Trustees of
each of the Trusts at a meeting held on October 25, 2000. Each of the nominees
elected will serve as a Trustee of each of the Trusts until the next meetings of
shareholders of the Liberty Mutual Funds called for the purpose of electing a
Board of Trustees, and until a successor is elected and qualified or until
death, retirement, resignation or removal.
Currently, two different boards of trustees are responsible for overseeing
substantially all of the Liberty Fund Complex and Stein Roe Funds. The Trustees
of the Liberty Fund Complex and the Stein Roe Funds and Liberty Financial
Companies, Inc. ("Liberty Financial"), the indirect parent of the investment
advisors to the Liberty Mutual and Stein Roe Funds, have agreed that shareholder
interests can more effectively be represented by a single board with
responsibility for overseeing substantially all of the Liberty Fund Complex and
Stein Roe Funds. Creation of a single, consolidated board should also provide
certain administrative efficiencies and potential future cost savings for both
the Liberty Fund Complex and Stein Roe Funds and Liberty Financial. The nominees
listed below will be the members of the single, consolidated Board of Trustees.
The persons named in the enclosed proxy card intend to vote at the Meetings in
favor of the election of the nominees named below as Trustees (if so
instructed). If any nominee listed below becomes unavailable for election, the
enclosed proxy card may be voted for a substitute nominee in the discretion of
the proxy holder(s).
Information about the Nominees
Set forth below is information concerning each of the nominees.
Nominee Name & Age Principal Occupation (1) and Directorships Trustee Since
------------------ ------------------------------------------ -------------
Douglas A. Hacker Executive Vice President and Chief New nominee
(43) Financial Officer of UAL, Inc. (airline)
since July, 1999; Senior Vice President
and Chief Financial Officer of UAL, Inc.
prior thereto.
Janet Langford Kelly Executive Vice President-Corporate New nominee
(41) Development, General Counsel and
Secretary, Kellogg Company, since
September, 1999; Senior Vice President,
Secretary and General Counsel of Sara Lee
Corporation (branded, packaged,
consumer-products manufacturer).
Richard W. Lowry Private Investor since 1987. (formerly 1995
(64) Chairman and Chief Executive Officer of
U.S. Plywood Corporation).
Salvatore Macera Private Investor since 1981. (formerly 1998
(69) Executive Vice President and Director of
Itek Corporation (electronics)).
<PAGE>
Nominee Name & Age Principal Occupation (1) and Directorships Trustee Since
------------------ ------------------------------------------ -------------
William E. Mayer(2) Partner, Park Avenue Equity Partners 1994
(60) (venture capital) since November, 1996;
Dean, College of Business and Management,
University of Maryland, prior thereto;
Director, Johns Manville, Lee Enterprises
and WR Hambrecht + Co.
Charles R. Nelson Van Voorhis Professor, Department of New nominee
(57) Economics, University of Washington and
consultant on economic and statistical
matters.
John J. Neuhauser Academic Vice President and Dean of 1985
(57) Faculties, Boston College, since August,
1999; Dean, Boston College School of
Management prior thereto.
Joseph R. Palombo(3) Vice President of the Liberty Mutual 2000
(47) Funds from April, 1999 to October, 2000;
Executive Vice President and Director of
Colonial and Stein Roe & Farnham
Incorporated; Executive Vice President
and Chief Administrative Officer of
Liberty Funds Group LLC since April,
1999; Chief Operating Officer, Putnam
Mutual Funds prior thereto.
Thomas E. Stitzel Business Consultant since 1999; Chartered 1998
(64) Financial Analyst; Professor of Finance
and Dean, College of Business, Boise
State University prior thereto.
Thomas C. Theobald Managing Director, William Blair Capital New nominee
(62) Partners (private equity investing) since
1994; (formerly Chief Executive Officer
and Chairman of the Board of Directors,
Continental Bank Corporation).
Anne-Lee Verville Consultant since 1997; General Manager, 1998
(54) Global Education Industry prior thereto;
formerly President, Applications
Solutions Division, IBM Corporation
(global education and global applications).
---------------------------
<PAGE>
(1) Except as otherwise noted, each individual has held the office indicated
or other offices in the same company for the last five years.
(2) Mr. Mayer is not affiliated with Liberty Financial Companies, Inc.
(Liberty Financial), but is an "interested person," as defined in the
Investment Company Act of 1940, as amended (the "1940 Act"), because of
his affiliation with WR Hambrecht + Co. (a registered broker-dealer).
(3) Mr. Palombo is an "interested person," as defined in the 1940 Act,
because of his affiliation with Liberty Financial.
Trustees' Compensation; Meetings and Committees
A. Trustees' Compensation.
The members of the Board of Trustees of each Trust will serve as Trustees of the
Liberty Fund Complex and Stein Roe Funds, for which service each Trustee, except
for Mr. Palombo, will receive an annual retainer of $45,000, and attendance fees
of $8,000 for each regular joint Board meeting and $1,000 for each special joint
Board meeting. The Board of Trustees is expected to hold six regular joint Board
meetings each year. Committee chairs will receive an additional annual retainer
of $5,000. Other Committee members will receive an additional annual retainer of
$1,000, and receive $1,000 for each special meeting attended on a day other than
a regular joint Board meeting day. Two-thirds of the Trustees' fees are
allocated among the Liberty Fund Complex and Stein Roe Funds based on their
relative net assets, and one-third of the fees is divided equally among the
Liberty Fund Complex and Stein Roe Funds.
The Liberty Mutual Funds do not currently provide pension or retirement plan
benefits to the Trustees. However, certain Trustees currently serving on the
Board of Trustees of the Liberty Mutual Funds who are not continuing on the
combined Board of Trustees of the Liberty Mutual and Stein Roe Funds will
receive payments at an annual rate equal to their 1999 Trustee compensation for
the lesser of two years or until the date they would otherwise have retired at
age 72. These payments will be made quarterly, beginning in 2001. Liberty
Financial and the Liberty Mutual Funds will each bear one-half of the cost of
the payments; the Liberty Mutual Funds' portion of the payments will be
allocated among the Liberty Mutual Funds based on each fund's share of the
Trustee fees for 2000.
Further information concerning the Trustees' compensation is disclosed under
Part 4. Fund Information on page ___.
B. Meetings and Certain Committees.
Composition. The current Board of Trustees of each Trust consists of two
interested and nine non-interested Trustees. Mr. Mayer is not affiliated with
Liberty Financial or any of its affiliates, but is considered interested as a
result of his affiliation with a broker-dealer.
Audit Committee. The Audit Committee of each Trust, consisting of Ms. Verville
(Chairperson) and Tom Bleasdale, James E. Grinnell, James L. Moody, Jr., and
Messrs. Lowry and Macera, all of whom are non-interested Trustees, recommends to
the Board of Trustees the independent accountants to serve as auditors, reviews
with the independent accountants the results of the auditing engagement and
internal accounting procedures and considers the independence of the independent
accountants the range of their audit services and their fees.
Compensation Committee. The Compensation Committee of each Trust, consisting of
Messrs. Neuhauser (Chairman), Grinnell and Stitzel and Lora S. Collins, all of
whom are non-interested Trustees, reviews compensation of the Board of Trustees.
Governance Committee. The Governance Committee of each Trust, consisting of
Messrs. Bleasdale (Chairman), Lowry, Mayer and Moody and Ms. Verville, all of
whom are non-interested Trustees, except for Mr. Mayer (Mr. Mayer is interested
as a result of his affiliation with a broker-dealer, but is not affiliated with
Liberty Financial), recommends to the Board of Trustees, among other things,
nominees for trustee and for appointments to various committees. The Committee
will consider candidates for trustee recommended by shareholders. Written
recommendations with supporting information should be directed to the Committee
in care of the applicable Liberty Mutual Fund.
The Boards of Trustees and the Committees held the following number of meetings
during the following fiscal years ended: November 30, 1999 of Liberty Funds
Trust IV (11/30/99 Funds); December 31, 1999 of Liberty Funds Trust I, and
Liberty Funds Trust VII (12/31/99 Funds); January 31, 2000 of Liberty Funds
Trust V (1/31/00 Funds); June 30, 2000 of Liberty Funds Trust VI, Liberty Funds
Trust II and Liberty Funds Trust IV (6/30/00 Funds); August 31, 2000 of Liberty
Funds Trust II , Liberty Funds Trust III, and Liberty Funds Trust III (8/31/00
Funds); and October 31, 2000 of Liberty Funds Trust III and Liberty Funds Trust
I (10/31/00 Funds) as follows:
------------------------- --------------- ---------------- ---------------
11/30/99 Funds 12/31/99 Funds 1/31/00 Funds
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Board of Trustees 6 6 6
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Audit Committee 3 3 3
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Compensation Committee 2 2 1
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Governance Committee 4 4 4
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
6/30/00 Funds 8/31/00 Funds 10/31/00 Funds
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Board of Trustees 6 6 6
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Audit Committee 4 4 4
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Compensation Committee 2 2 2
------------------------- --------------- ---------------- ---------------
------------------------- --------------- ---------------- ---------------
Governance Committee 6 6 5
------------------------- --------------- ---------------- ---------------
During the most recently completed fiscal years, each of the current Trustees
attended more than 75% of the meetings of the Board of Trustees of each Trust
and the committees of which such Trustee is a member.
THE BOARD OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF EACH LIBERTY MUTUAL
FUND VOTE FOR PROPOSAL 1.
REQUIRED VOTE FOR PROPOSAL 1
Shareholders of each Liberty Mutual Fund vote together with the shareholders of
the other series of the applicable Trust for the election of Trustees. A
plurality of the votes cast at the Meetings, if a quorum is represented, is
required for the election of each Trustee to the Board of Trustees of each
Trust. Since the number of Trustees has been fixed at eleven, this means that
the eleven persons receiving the highest number of votes will be elected.
<PAGE>
PROPOSAL 2. APPROVE NEW PORTFOLIO MANAGEMENT AGREEMENTS WITH
NEWPORT FUND MANAGEMENT, INC. (Newport) (Liberty
Newport Global Utilities Fund and Liberty Newport
International Equity Fund - herein referred to for
purposes of this Proposal 2 as each a "Fund" or
collectively the "Funds")
A. Description of Proposal. The Board of Trustees of Liberty Funds Trust III
proposes that the shareholders of each Fund approve a new Management Agreement,
substantially in the form set forth in Appendix A to this proxy statement,
between the Trust, on behalf of each Fund, and Newport. Newport is an affiliate
of Colonial, the current investment advisor of Liberty Newport International
Equity Fund, and Stein Roe & Farnham Incorporated (Stein Roe), the current
investment advisor of Liberty Newport Global Utilities Fund. The new Management
Agreements are identical to the existing Management Agreements, except that
Newport will now provide investment management services to each of the Funds.
With respect to Liberty Newport International Equity Fund, Newport will engage
Colonial at Newport's own expense to provide administrative services to the
Fund. With respect to the Liberty Newport Global Utilities Fund, the current
portfolio managers are dual employees of Stein Roe and Newport and will continue
to manage the Fund as employees of Newport. If the new Management Agreement for
Liberty Newport Global Utilities Fund is not approved, the current portfolio
managers will continue to manage the Fund and will remain dual employees of
Stein Roe and Newport.
The existing Management Agreement for Liberty Newport International Equity Fund,
dated October 1, 1997, was most recently approved by the shareholders of the
Fund on February 15, 1995. The existing Management Agreement for Liberty Newport
Global Utilities Fund, dated February 26, 1999, was most recently approved by
shareholders of the Fund on February 4, 1993.
The existing Management Agreements for Liberty Newport International Equity Fund
and Liberty Newport Global Utilities Fund provide for monthly fees at the annual
rate of 0.75% and 0.40%, respectively, of each Fund's average daily net assets.
For the fiscal year ended October 31, 1999, the aggregate fees paid by Liberty
Newport International Equity Fund to Colonial under the existing Management
Agreement was approximately $861,000, and the aggregate fee paid by Liberty
Newport Global Utilities Fund to Stein Roe under the existing Management
Agreement was approximately $484,000.
Colonial currently provides administrative services to Liberty Newport Global
Utilities Fund under a separate Administration Agreement for an annual fee of
0.25% of the Fund's average daily net assets. For the fiscal year ended October
31, 1999, the aggregate fee paid by Liberty Newport Global Utilities Fund to
Colonial under the existing Administration Agreement was approximately $363,000.
Upon shareholder approval of the new Management Agreements, Newport will provide
investment management services to Liberty Newport International Equity Fund and
Liberty Newport Global Utilities Fund, and be responsible for providing
administrative services to Liberty Newport International Equity Fund. Newport
will be paid at the same annual rate for providing these services as was paid
under the existing Management Agreement. With respect to Liberty Newport Global
Utilities Fund, the current Administration Agreement with Colonial will remain
in effect.
It is important to note that the annual rates payable by the Funds for
investment management and administrative services will not increase or decrease
as a result of the Trust entering into new Management Agreements on behalf of
the Funds.
B. Consideration by the Board of Trustees.
The Board of Trustees met on December 15-16, 1999, to consider, among other
things, the proposed change of each Fund's investment advisor. After due
consideration, the Board of Trustees, including all Trustees who were not
interested and who had no direct or indirect financial interests in the
operation of the new Management Agreements or in any agreements related thereto,
unanimously approved the new Management Agreements, subject to shareholder
approval. The Board of Trustees concluded that the new Management Agreements are
fair and reasonable, and are in the best interest of shareholders of each Fund.
During the course of their deliberations, the Board of Trustees considered a
variety of factors. The Board of Trustees considered the fact that the new
Management Agreements with Newport would not impact the current fee structure of
the existing Management Agreements, and that the current expense waivers would
continue until further notice. The Board of Trustees, however, focused
specifically on the experience and size of Newport's international investment
management team, Newport's growth investment style, Newport's expertise and
proven performance as an investment advisor of international and global growth
funds similar to the Liberty Mutual Funds, as well as the increased complexity
of the international securities markets.
<PAGE>
C. Comparison and Impact of the Existing and New Management Agreements. For each
of the Funds, the new Management Agreement is identical to the existing
Management Agreement except for its effective date and the named investment
advisor. The new Management Agreements do not differ from the existing
Management Agreements with respect to the investment advisor's responsibilities
or duties to the Funds, or the fees payable to the investment advisor for
providing those services.
Compensation under the existing and new Management Agreements is subject to
reduction if in any year the expenses of a Fund exceed the limits on investment
company expenses imposed by any statute or regulatory authority of any
jurisdiction in which shares of the Fund are qualified for offer and sale. No
such limits currently are in effect.
Both the existing and new Management Agreements provide that, subject to the
Board of Trustees' supervision, the investment advisor will manage the assets of
each Fund in accordance with its Prospectus and Statement of Additional
Information, purchase and sell securities and other investments on behalf of the
Fund, and report results to the Board of Trustees periodically. With respect to
Liberty Newport International Equity Fund, the existing and new Management
Agreements also require the investment advisor to furnish, at its expense: (a)
office space, supplies, facilities and equipment; (b) executive and other
personnel for managing the affairs of the Fund (excluding custodial, transfer
agency, pricing and certain record keeping services); and (c) compensation to
Trustees who are directors, officers of or employees of the advisor or its
affiliates. Any liability of the investment advisor to the Trust, the Fund
and/or its shareholders is limited to situations involving the advisor's own
willful misfeasance, bad faith, gross negligence or reckless disregard of its
duties.
Each new Management Agreement provides that it will continue in effect for an
initial term ending June 30, 2002 and thereafter so long as it is approved
annually in accordance with the 1940 Act. The existing and new Management
Agreements may be terminated at any time by Newport, by the Board of Trustees or
by vote of a majority of the outstanding voting securities of any Fund without
penalty on 60 days' written notice, and shall automatically terminate upon any
"assignment" (as that term is defined in the 1940 Act). Each new Management
Agreement may be amended only by the affirmative vote of the holders of a
"majority of the outstanding voting securities" of the Fund (as defined in the
1940 Act).
<PAGE>
D. Comparison of Investment Objectives and Strategies.
In the case of Liberty Newport Global Utilities Fund, Newport will not change
the investment objective or strategy of the Fund. In the case of Liberty Newport
International Equity Fund, Newport will not change the Fund's investment
objective, but will change its investment strategy. Colonial's investment
strategy in selecting stocks for Liberty Newport International Equity Fund has
been to choose companies in industries and markets which Colonial believes will
react favorably to inflation in the U.S. economy. Inflation-sensitive companies
in which Liberty Newport International Equity Fund has invested include
companies engaged in the development and processing of natural resources and
companies engaged in consumer-oriented business. As the new advisor to Liberty
Newport International Equity Fund, Newport will no longer focus on
inflation-sensitive stocks and will select stocks of international companies
with long-term, above average growth potential. These are companies with proven
management, predictable growth rates and low levels of debt. Newport may sell a
stock if there is a deterioration in a company's fundamentals or a change in a
company's management style, or if Newport identifies a different company with
more attractive growth prospects. The Board of Trustees has approved this change
to the investment strategy of Liberty Newport International Equity Fund. The
change in the investment strategy of Liberty Newport International Equity Fund
is not a change to a fundamental policy of the Fund and therefore, shareholder
approval of this change is not required. This change also does not affect
Liberty Newport International Equity Fund's investment goal, which is to seek
the preservation of capital purchasing power and long-term growth.
E. Information concerning Colonial, Stein Roe, Newport and their affiliates.
Colonial Management Associates, Inc. and Stein Roe & Farnham Incorporated
Colonial and/or its affiliate, Colonial Advisory Services, Inc. (CASI), has
rendered investment advisory services to investment company, institutional and
other clients since 1931. Colonial currently serves as investment advisor or
administrator for 70 open-end and 9 closed-end management investment company
portfolios. As of September 30, 2000, Colonial managed and/or administered over
$18 billion in assets.
The directors of Colonial are Stephen E. Gibson and Joseph R. Palombo. Mr.
Gibson is the President and Chief Executive Officer of Colonial. Mr. Palombo is
the Executive Vice President and Chief Administrative Officer of Colonial. The
business address of the directors and officers of Colonial is One Financial
Center, Boston, Massachusetts 02111. In addition, the following individuals who
are officers or Trustees of the Funds' Trusts are also officers or directors of
Colonial: William J. Ballou, Suzan M. Barron, Michael G. Clarke, Stephen E.
Gibson, Ellen Harrington, Russell L. Kane, Gail E. Knudsen, Pamela A. McGrath,
Joseph R. Palombo, Dianne Paras, Vincent P. Pietropaolo and Glenn M. Wolfset.
Stein Roe and its predecessor have been providing investment advisory services
since 1932. Stein Roe acts as investment advisor to wealthy individuals,
trustees, pension and profit sharing plans, charitable organizations and other
institutional investors. The sole director of Stein Roe is C. Allen Merritt, Jr.
Mr. Merritt is Chief Operating Officer of Liberty Financial. Stephen E. Gibson
is President of Stein Roe's Mutual Funds division and William E. Rankin is
President of Stein Roe's Private Capital Management division. The business
address of Mr. Merritt is 600 Atlantic Avenue, Federal Reserve Plaza, Boston,
Massachusetts 02210; that of Mr. Gibson is One Financial Center, Boston,
Massachusetts 02111; and that of Mr. Rankin is One South Wacker Drive, Chicago,
Illinois 60606.
In addition, the following individuals who are officers or Trustees of the
Funds' Trusts are also officers or directors of Stein Roe: Stephen E. Gibson and
Joseph R. Palombo.
Colonial provides, and after shareholder approval of the new Management
Agreement, will continue to provide, pricing and bookkeeping services to each of
the Funds pursuant to a Pricing and Bookkeeping Agreement. For each Fund,
Colonial is paid a monthly fee of $2,250 plus the following percentages of the
Fund's average daily net assets over $50 million:
0.035% annually on the next $950 million;
0.025% annually on the next $1 billion;
0.015% annually on the next $1 billion; and
0.001% annually on the excess over $3 billion
For the fiscal year ended October 31, 1999, the pricing and bookkeeping fees
paid by Liberty Newport International Equity Fund and Liberty Newport Global
Utilities Fund to Colonial under the Pricing and Bookkeeping Agreement were
approximately $50,000 and $65,000, respectively.
Liberty Funds Services, Inc. (LFSI), a subsidiary of LFG, located at One
Financial Center, Boston, Massachusetts 02111, is the Funds' investor servicing
agent (transfer, plan and dividend disbursing agent, and shareholder services
provider), for which it receives monthly fees paid by each Fund. The fee paid to
LFSI is based on the average daily net assets of each Fund, charges based on the
number of shareholder accounts and transactions and reimbursement for certain
out-of-pocket expenses. For the fiscal year ended October 31, 1999, the
aggregate fees paid to LFSI on behalf of Liberty Newport International Equity
Fund and Liberty Newport Global Utilities Fund were approximately $395,000 and
$509,000, respectively.
Liberty Funds Distributor, Inc. (LFDI), a subsidiary of Colonial, located at One
Financial Center, Boston, Massachusetts 02111, acts as distributor for each Fund
under a distribution agreement. The Trustees have approved a 12b-1 plan (Plan)
for each Fund pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each
Fund pays LFDI a service fee at an annual rate of 0.25% of the Fund's net assets
attributable to Classes A, B and C. Each Fund also pays a monthly distribution
fee at an annual rate of 0.75% of the average daily net assets attributable to
Class B and Class C Shares. For the fiscal year ended October 31, 1999, the
aggregate fees paid by the Funds to LFDI were as follows:
12b-1 fees paid to LFDI for the fiscal year ended October 31, 1999
----------------------- ------------------ ------------------
Liberty Newport Liberty Newport
International Global Utilities
Fees (Approximate) Equity Fund Fund
----------------------- ------------------ ------------------
----------------------- ------------------ ------------------
Service Fees $280,000(a) $457,000(c)
----------------------- ------------------ ------------------
----------------------- ------------------ ------------------
Distribution Fees $420,000(b) $56,000(d)
----------------------- ------------------ ------------------
(a) $139,000 were attributable to Class A Shares; $138,000 were attributable to
Class B Shares; $3,000 were attributable to Class C Shares.
(b) $411,000 were attributable to Class B Shares; $9,000 were attributable to
Class C Shares.
(c) $438,000 were attributable to Class A Shares; $16,000 were attributable to
Class B Shares; $3,000 were attributable to Class C Shares.
(d) $48,000 were attributable to Class B Shares; $8,000 were attributable to
Class C Shares.
Colonial and Stein Roe may use the services of AlphaTrade Inc. (AlphaTrade), a
registered broker-dealer subsidiary of Colonial, when buying or selling certain
equity securities for a Fund's portfolio pursuant to procedures adopted by the
Trustees and Rule 17e-1 under the 1940 Act. For the fiscal year ended October
31, 1999, the aggregate commissions paid by Colonial to AlphaTrade on behalf of
Liberty Newport International Equity Fund was $25,135, which constituted 15.6%
of the Fund's aggregate brokerage commissions. No commissions were paid by Stein
Roe to AlphaTrade on behalf of Liberty Newport Global Utilities Fund for the
fiscal year ended October 31, 1999.
In addition to the fees described above, each Fund pays all of its expenses not
assumed by its advisor, including, without limitation, fees and expenses of the
independent Trustees, interest charges, taxes, brokerage commissions, expenses
of issue or redemption of shares, fees and expenses of registering and
qualifying shares of each Fund for distribution under federal and state laws and
regulations, custodial, auditing and legal expenses, expenses of determining net
asset value of each Fund's shares, expenses of providing reports to
shareholders, proxy statements and proxies to existing shareholders, and its
proportionate share of insurance premiums and professional association dues or
assessments. Each Fund also is responsible for such non-recurring expenses as
may arise, including litigation in which each Fund may be a party, and other
expenses as determined by the Board of Trustees. Each Fund may have an
obligation to indemnify its officers and Trustees with respect to litigation.
Newport Fund Management, Inc.
Newport is a direct majority-owned subsidiary of Newport Pacific Management,
Inc. (Newport Pacific), 580 California Street, San Francisco, California 94104.
Newport Pacific is a direct wholly-owned subsidiary of Liberty Newport Holdings,
Limited (Liberty Newport), which in turn is a direct wholly-owned subsidiary of
Liberty Financial.
The directors of Newport are Lindsay Cook, J. Andrew Hilbert, John M. Mussey and
Thomas R. Tuttle. Mr. Cook is an Executive Vice President of Liberty Financial.
Mr. Hilbert is Chief Financial Officer of Liberty Financial. Mr. Mussey is Vice
Chairman of Newport and Newport Pacific. Mr. Tuttle is the President and Chief
Executive Officer of Newport. He also is President of Newport Pacific. The
business address of Mr. Cook and Mr. Hilbert is 600 Atlantic Avenue, Federal
Reserve Plaza, Boston, Massachusetts 02210; and that of Messrs. Mussey and
Tuttle is 580 California Street, San Francisco, California 94104.
<PAGE>
F. Other Funds Managed by Newport. In addition to the services proposed to be
provided by Newport to each of the Funds, Newport also provides management and
other services and facilities to other investment companies. Information with
respect to the assets of and management fees payable to Newport by funds having
investment objectives similar to those of the Funds is set forth below:
------------------------------------------ ----------------- ------------------
Annual Total Net Assets
9/30/00
Fund Management Fee (in Millions)
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Liberty Newport Tiger Fund 1.00%(a) $954.9
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Stein Roe Small Cap Tiger Fund 1.15%(b) 10.4
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Liberty Newport Japan Opportunities Fund 0.95%(b) 90.5
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Liberty Newport Greater China Fund 1.15%(b) 66.8
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Liberty Newport Asia Pacific Fund 1.00%(b) 17.7
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Liberty Newport Europe Fund 0.70%(d) 13.0
------------------------------------------ ----------------- ------------------
------------------------------------------ ----------------- ------------------
Stein Roe Asia Pacific Fund 0.55%(c) 5.3
------------------------------------------ ----------------- ------------------
(a) The management fee is 1.00% for the first $100 million of average net
assets; 0.75% for the next $1.4 billion; 0.70% for the next $1 billion; and
0.65% over $2.5 billion.
(b) Newport has voluntarily agreed to waive a certain portion of the management
fee and reimburse the fund for certain expenses. Newport may terminate the
fee waiver and expense reimbursement arrangement at any time.
(c) Stein Roe & Farnham Incorporated is the advisor to the fund and receives
an annual fee of 0.95%. Newport receives 0.55% as sub-advisor to the fund.
(d) The fund commenced operations on November 1, 1999 and has not paid
management fees to Newport.
THE BOARD OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF EACH APPLICABLE
LIBERTY FUND VOTE FOR PROPOSAL 2.
REQUIRED VOTE FOR PROPOSAL 2
Approval of the new Management Agreement for each Fund will require the
affirmative vote of a "majority of the outstanding voting securities" of the
Fund (as defined in the 1940 Act), which means the affirmative vote of the
lesser of (1) more than 50% of the outstanding shares of the Fund or (2) 67% or
more of the shares of the Fund present at the Meeting if more than 50% of the
outstanding shares of the Fund are represented at the Meeting in person or by
proxy.
PROPOSAL 3. APPROVE A SUB-ADVISORY AGREEMENT
WITH UNIBANK SECURITIES, INC. (The Liberty Fund - herein
referred to for purposes of this Proposal 3 as the "Fund")
A. Description of Proposal.
The Board of Trustees of Liberty Funds Trust III (Trust) proposes that the
shareholders of the Fund approve a Sub-Advisory Agreement, substantially in the
form set forth in Appendix B, among Colonial, the investment advisor to the
Fund, Unibank Securities, Inc., which does business in the U.S. as Unibank
Investment Management (Unibank), and the Trust, on behalf of the Fund. Under the
terms of the Sub-Advisory Agreement, Unibank will manage a portion of the assets
of the Fund, as determined by Colonial, in accordance with the investment
objectives, policies and limitations of the Fund as set forth in the Fund's
Prospectus and Statement of Additional Information (as modified to take into
account the Fund's acquisition of Liberty Strategic Balanced Fund (Balanced
Fund), which is subject to the approval of the shareholders of the Balanced
Fund). Unibank will invest primarily in large capitalization, non-U.S. equity
securities for the Fund. Approval of the Sub-Advisory Agreement will not affect
the amount of management fees paid by the Fund to Colonial; Colonial, not the
Fund, pays sub-advisory fees to Unibank under the Sub-Advisory Agreement.
Currently, Colonial manages the investment of the assets of Fund pursuant to a
Management Agreement between the Trust, on behalf of the Fund, and Colonial,
dated March 27, 1995, as amended , which was most recently approved by the
shareholders of the Fund on February 15, 1995. Colonial receives monthly fees at
the annual rate of 0.55% for the first $1 billion of the average daily net
assets of the Fund and 0.50% of assets in excess of $1 billion. For the fiscal
year ended October 31, 1999, the aggregate fees paid by the Fund to Colonial
under the Management Agreement were approximately $8,985,000.
B. Consideration by the Board of Trustees.
The Board of Trustees met on October 25/26, 2000, to consider, among other
things, the proposed retention by Colonial of Unibank as a sub-advisor to the
Fund. After due consideration, the Board of Trustees, including all Trustees who
were not interested and who had no direct or indirect financial interest in the
operation of the Sub-Advisory Agreement or in any agreements related thereto,
unanimously approved the Sub-Advisory Agreement, subject to shareholder
approval. The Board of Trustees concluded that the Sub-Advisory Agreement is
fair and reasonable, and is in the best interest of the shareholders of the
Fund. During the course of their deliberations, the Board of Trustees focused on
the experience and proven performance of Unibank as an investment advisor to
international and global funds as well as on the increased complexity of the
international securities markets. The Board of Trustees also considered a
variety of factors, including that the Sub-Advisory Agreement with Unibank will
not affect the fees paid by the Fund under the Management Agreement.
C. Description of Sub-Advisory Agreement.
Pursuant to the terms of the Sub-Advisory Agreement, Unibank, under the
supervision of the Board of Trustees and Colonial, will: (a) manage the
investment of a portion of the assets of the Fund, as determined by Colonial, in
accordance with the investment objectives, policies and limitations of the Fund
as stated in the Fund's then current Prospectus and Statement of Additional
Information; (b) place purchase and sale orders for portfolio transactions for
the Fund; (c) evaluate such economic, statistical and financial information and
undertake such investment research as it shall deem advisable; (d) employ
professional portfolio managers to provide research services to the Fund; and
(e) report results to the Board of Trustees. For the services to be rendered by
Unibank under the Sub-Advisory Agreement, Colonial will pay Unibank a monthly
fee at the annual rate of 0.40% of the average daily net asset value of that
portion of the Fund's assets under management by Unibank. Any liability of
Unibank to the Trust, the Fund and/or its shareholders is limited to situations
involving Unibank's own willful misfeasance, bad faith or gross negligence in
the performance of its duties.
The Sub-Advisory Agreement provides that it will remain in effect for an initial
term ending June 30, 2002 and from year to year thereafter so long as its
continuance is specifically approved at least annually by the Board of Trustees
or by vote of a majority of the outstanding voting securities of the Fund. The
Sub-Advisory Agreement may be terminated at any time without penalty on sixty
days' written notice to Unibank by vote of the Board of Trustees, by vote of a
majority of the outstanding voting securities of the Fund, or by Colonial, or by
Unibank on ninety days' written notice to Colonial and the Trust. The
Sub-Advisory Agreement will terminate automatically in the event of its
assignment or in the event that the Management Agreement for the Fund shall have
terminated for any reason. The Sub-Advisory Agreement may be amended only in
accordance with the 1940 Act.
The preceding description of the proposed Sub-Advisory Agreement is qualified in
its entirety by reference to the form of Sub-Advisory Agreement that is set
forth in Appendix B to this proxy statement.
<PAGE>
D. Information concerning Colonial, Unibank and their affiliates.
Colonial Management Associates, Inc.
Colonial, located at One Financial Center, Boston, Massachusetts 02111, is a
wholly-owned subsidiary of Liberty Funds Group, LLC (LFG), which in turn is an
indirect wholly-owned subsidiary of Liberty Financial. Liberty Financial is a
direct majority-owned subsidiary of LFC Management Corporation, which in turn is
a direct wholly-owned subsidiary of Liberty Corporate Holdings, Inc., which in
turn is a direct wholly-owned subsidiary of LFC Holdings, Inc., which in turn is
a direct wholly-owned subsidiary of Liberty Mutual Equity Corporation, which in
turn is a direct wholly-owned subsidiary of Liberty Mutual Insurance Company
(Liberty Mutual). As of September 30, 2000, LFC Management Corporation owned
71.12% of Liberty Financial. Liberty Financial is a diversified and integrated
asset management organization which provides insurance and investment products
to individuals and institutions. The principal executive offices of Liberty
Financial, LFC Management Corporation, Liberty Corporate Holdings, Inc., and LFC
Holdings, Inc. are located at 600 Atlantic Avenue, 24th Floor, Boston,
Massachusetts 02210. Liberty Mutual is an underwriter of workers' compensation
insurance and a property and casualty insurer in the United States, organized
under the laws of Massachusetts in 1912. The principal business activities of
Liberty Mutual's subsidiaries other than Liberty Financial are property-casualty
insurance, insurance services and life insurance (including group life and
health insurance products) marketed through its own sales force. The principal
executive offices of Liberty Mutual and Liberty Mutual Equity Corporation are
located at 175 Berkeley Street, Boston, Massachusetts 02117.
Colonial and/or its affiliate, Colonial Advisory Services, Inc. (CASI), has
rendered investment advisory services to investment company, institutional and
other clients since 1931. Colonial currently serves as investment advisor or
administrator for 70 open-end and 9 closed-end management investment company
portfolios. As of September 30, 2000, Colonial managed and/or administered over
$18 billion in assets.
The directors of Colonial are Stephen E. Gibson and Joseph R. Palombo. Mr.
Gibson is the President and Chief Executive Officer of Colonial. Mr. Palombo is
the Executive Vice President and Chief Administrative Officer of Colonial. The
business address of the directors and officers of Colonial is One Financial
Center, Boston, Massachusetts 02111.
<PAGE>
In addition, the following individuals who are officers or Trustees of the
Funds' Trusts are also officers or directors of Colonial: William J. Ballou,
Suzan M. Barron, Michael G. Clarke, Stephen E. Gibson, Ellen Harrington, Russell
L. Kane, Gail E. Knudsen, Pamela A. McGrath, Joseph R. Palombo, Dianne Paras,
Vincent P. Pietropaolo and Glenn M. Wolfset.
Colonial provides, and after shareholder approval of the Sub-Advisory Agreement
will continue to provide, pricing and bookkeeping services to the Fund pursuant
to a Pricing and Bookkeeping Agreement. Colonial is paid a monthly fee of $2,250
plus the following percentages of the Fund's average daily net assets over $50
million:
0.035% annually on the next $950 million;
0.025% annually on the next $1 billion;
0.015% annually on the next $1 billion; and
0.001% annually on the excess over $3 billion
For the fiscal year ended October 31, 1999, the pricing and bookkeeping fees
paid by the Fund to Colonial under the Pricing and Bookkeeping Agreement were
approximately $534,000.
Liberty Funds Services, Inc. (LFSI), a subsidiary of LFG located at One
Financial Center, Boston, Massachusetts 02111, is the Trust's investor servicing
agent (transfer, plan and dividend disbursing agent, and shareholder services
provider), for which it receives monthly fees paid by the Trust. The fee paid to
LFSI is based on the average daily net assets of the Fund, charges based on the
number of shareholder accounts and transactions, and reimbursement for certain
out-of-pocket expenses. For the fiscal year ended October 31, 1999, the
aggregate fees paid by to LFSI on behalf of the Fund were approximately
$4,728,000.
Liberty Funds Distributor, Inc. (LFDI), a subsidiary of Colonial located at One
Financial Center, Boston, MA 02111, acts as distributor for the Fund under a
distribution agreement. The Trustees have approved a 12b-1 plan (Plan) for the
Fund pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund pays
LFDI a service fee at an annual rate of 0.25% of the Fund's net assets
attributable to Classes A, B and C. The Fund also pays a monthly distribution
fee at an annual rate of 0.75% of the average daily net assets attributable to
Class B and Class C Shares. For the fiscal year ended October 31, 1999, the
aggregate fees paid by the Fund to LFDI were as follows:
<PAGE>
12b-1 fees paid to LFDI for the fiscal year ended October 31, 1999
---------------------------- ---------------------------------
Fees (Approximate) The Liberty Fund
---------------------------- ---------------------------------
---------------------------- ---------------------------------
Service Fees $4,082,000(a)
---------------------------- ---------------------------------
---------------------------- ---------------------------------
Distribution Fees $5,370,000(b)
---------------------------- ---------------------------------
(a) Classes A, B, and C.
(b) $5,311,000 were attributable to Class B shares; $59,000 were attributable
to Class C shares.
Colonial may use the services of AlphaTrade Inc. (AlphaTrade), a registered
broker-dealer subsidiary of Colonial, when buying or selling certain equity
securities for the Fund's portfolio pursuant to procedures adopted by the
Trustees and Rule 17e-1 under the 1940 Act. For the fiscal year ended October
31, 1999, Colonial did not pay any commissions to AlphaTrade on behalf of the
Fund.
In addition to the fees described above, the Fund pays all of its expenses not
assumed by its advisor, including, without limitation, fees and expenses of the
independent Trustees, interest charges, taxes, brokerage commissions, expenses
of issue or redemption of shares, fees and expenses of registering and
qualifying shares of the Fund for distribution under federal and state laws and
regulations, custodial, auditing and legal expenses, expenses of determining net
asset value of the Fund's shares, expenses of providing reports to shareholders,
proxy statements and proxies to existing shareholders, and its proportionate
share of insurance premiums and professional association dues or assessments.
The Fund also is responsible for such non-recurring expenses as may arise,
including litigation in which the Fund may be a party, and other expenses as
determined by the Board of Trustees. The Fund may have an obligation to
indemnify its officers and Trustees with respect to litigation.
Unibank Securities, Inc.
Unibank is located at 13-15 West 54th Street, New York, New York, 10019. Unibank
offers a range of equity investment products and services to institutional
clients, including private and public retirement funds, unions, endowments,
foundations and insurance companies, as well as to mutual fund sponsors on a
sub-advisory basis. Unibank often structures portfolios to meet benchmarks
established by the client, or tailored to standard Morgan Stanley Capital
International (MSCI) benchmarks such as the MSCI EAFE Index. Unibank is a direct
wholly-owned subsidiary of Unibank A/S, one of Scandinavia's leading financial
institutions, which in turn is a direct wholly-owned subsidiary of Unidanmark
A/S, which in turn is a direct wholly-owned subsidiary of Nordic Baltic Holding
AB. The principal executive offices of Unibank A/S are located at Torvegade 2
DK-1786 Copenhagen V, Denmark. The principal executive offices of Unidanmark A/S
are located at Strandgrade 3 DK-1786 Copenhagen V., Denmark. The principal
executive offices of Nordic Baltic Holding AB are located at Hamngatan 10,
SE-105 71 Stockholm, Sweden.
The directors of Unibank Securities, Inc. are Henrik Bak, Ole Jacobsen, Jerry
Murphy, Peter Nyegaard and Finn Pedersen. Mr. Bak is President and Chairman of
the Board of Unibank Securities, Inc. Mr. Jacobsen is Managing Director and Head
of Unibank Investment Management. Mr. Murphy is Head of Administration, Nordic
Baltic Holding, New York. Mr. Nyegaard is Head of Markets, Nordic Baltic Holding
AB. Mr. Pedersen is Head of Equities, Aros Maizel. The business address of each
of Messrs. Bak, Nyegaard, Murphy, Jacobsen and Pedersen is 13-15 West 54th
Street, New York, New York, 10019.
In addition to the services proposed to be provided by Unibank to the Fund,
Unibank also provides sub-advisory and other services and facilities to other
investment companies. Information with respect to the assets of and management
fees payable to Unibank by funds having objectives similar to the Fund is set
forth below:
------------------------------------------- -------------------- ---------------
Total Net Assets
Annual Management 9/30/00
Fund Fee (in Thousands)
------------------------------------------- -------------------- ---------------
------------------------------------------- -------------------- ---------------
UM International Equity Fund 0.60%(a) $15,697
------------------------------------------- -------------------- ---------------
(a) The management fee is 0.95%, which is paid to Undiscovered Managers,
LLC, the investment advisor to the Fund. Unibank is the sub-advisor to
the Fund and receives a sub-advisory fee of 0.60% for the first $200
million of average net assets, 0.55% for the next $100 million, and
0.50% for assets in excess of $300 million.
THE BOARD OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE LIBERTY FUND VOTE
FOR PROPOSAL 3.
REQUIRED VOTE FOR PROPOSAL 3
Approval of a new Sub-Advisory Agreement for any Fund will require the
affirmative vote of a "majority of the outstanding voting securities" of the
Fund (as defined in the 1940 Act), which means the affirmative vote of the
lesser of (1) more than 50% of the outstanding shares of the Fund or (2) 67% or
more of the shares of the Fund present at the Meeting if more than 50% of the
outstanding shares of the Fund are represented at the Meeting in person or by
proxy.
PROPOSAL 4. ELECTION OF A BOARD OF TRUSTEES FOR SR&F BASE TRUST
(Liberty Money Market Fund and Liberty Municipal Money
Market Fund - herein referred to for purposes of this
Proposal 4 as each a "Fund" or collectively the "Funds")
You are being asked to approve the election of six new members as well as five
of the currently serving members of the Board of Trustees of the SR&F Base Trust
("Base Trust"). Rather than investing directly in portfolio securities, each of
Liberty Money Market Fund and Liberty Municipal Money Market Fund is a feeder
fund that invests all of its assets in a master fund. The master fund for
Liberty Money Market Fund is SR&F Cash Reserves Portfolio and the master fund
for Liberty Municipal Money Market Fund is SR&F Municipal Money Market Portfolio
(each, a "Portfolio"). Each Portfolio is a series of the Base Trust. Each of the
Funds, as a Portfolio investor, has been requested by the Base Trust to vote on
the election of trustees of the Base Trust. Therefore, each Fund is soliciting
proxies from its shareholders relating to the election of trustees of the Base
Trust.
All of the nominees listed below, except for the proposed six new members (Ms.
Verville and Messrs. Lowry, Macera, Mayer, Neuhauser and Stitzel), are currently
members of the Board of Trustees of the Base Trust, as well as two Stein Roe
closed-end funds and seven other Stein Roe open-end trusts (collectively, the
"Stein Roe Funds"), and have served in that capacity continuously since
originally elected or appointed. All of the currently serving members, other
than Ms. Kelly and Mr. Palombo, have been previously elected by the shareholders
of theBase Trust. The proposed six new members currently serve on the Boards of
Trustees of ten Liberty closed-end funds and a number of Liberty open-end trusts
(collectively, the "Liberty Fund Complex") and were recommended for election as
Trustees of the Base Trust by the Board of Trustees of the Base Trust at a
special meeting held on October 17, 2000. Each of the nominees elected will
serve as a Trustee of the Base Trust until the next meeting of shareholders of
the Funds called for the purpose of electing a Board of Trustees, and until a
successor is elected and qualified or until death, retirement, resignation or
removal.
Currently, two different boards of trustees are responsible for overseeing
substantially all of the Liberty Fund Complex and Stein Roe Funds. Liberty
Financial and the Trustees of the Liberty Fund Complex and Stein Roe Funds have
agreed that shareholder interests can more effectively be represented by a
single board with responsibility for overseeing substantially all of the Liberty
Fund Complex and Stein Roe Funds. Creation of a single, consolidated board
should also provide certain administrative efficiencies and potential future
cost savings for both the Liberty Fund Complex and Stein Roe Funds and Liberty
Financial. The nominees listed below will be the members of the single,
consolidated Board of Trustees. The persons named in the enclosed proxy card
intend to vote at the Meetings in favor of the election of the nominees named
below as Trustees (if so instructed). If any nominee listed below becomes
unavailable for election, the enclosed proxy card may be voted for a substitute
nominee in the discretion of the proxy holder(s).
The following table sets forth certain information about each nominee:
Year of
Election or
Recommended
for Election
Nominee Name & Age Principal Occupation (1) and Directorships as Trustee
------------------ ------------------------------------------ ----------
Douglas A. Hacker Executive Vice President and Chief 1996
(43) Financial Officer of UAL, Inc. (airline)
since July, 1999; Senior Vice President
and Chief Financial Officer of UAL, Inc.
prior thereto.
Janet Langford Kelly Executive Vice President-Corporate 1996
(41) Development, General Counsel and
Secretary, Kellogg Company, since
September, 1999; Senior Vice President,
Secretary and General Counsel, Sara Lee
Corporation (branded, packaged,
consumer-products manufacturer).
Richard W. Lowry Private Investor 1987. (formerly New nominee
(64) Chairman and Chief Executive Officer,
U.S. Plywood Corporation).
Salvatore Macera Private Investor since 1981. (formerly New nominee
(69) Executive Vice President and Director of
Itek Corporation (electronics)).
William E. Mayer(2) Partner, Park Avenue Equity Partners New nominee
(60) (venture capital) since November, 1996;
Dean, College of Business and Management,
University of Maryland, priorthereto;
Director, Johns Manville, Lee Enterprises
and WR Hambrecht + Co.
Charles Nelson Van Voorhis Professor, Department of 1987
(57) Economics, University of Washington and
consultant on economic and statistical
matters.
<PAGE>
Year of
Election or
Recommended
for Election
Nominee Name & Age Principal Occupation (1) and Directorships as Trustee
------------------ ------------------------------------------ -----------
John J. Neuhauser Academic Vice President and Dean of New nominee
(57) Faculties, Boston College, since August,
1999; Dean, Boston College School of
Management priorthereto.
Joseph R. Palombo(3) Vice President of the Liberty Mutual 2000
(47) Funds from April, 1999 to October, 2000;
Executive Vice President and Director of
Colonial and Stein Roe & Farnham
Incorporated; Executive Vice President
and Chief Administrative Officer of
Liberty Funds Group LLC since April,
1999; Chief Operating Officer, Putnam
Mutual Funds priorthereto.
Thomas E. Stitzel Business Consultant since 1999; Chartered New nominee
(64) Financial Analyst; Professor of Finance
and Dean, College of Business, Boise
State University priorthereto.
Thomas C. Theobald Managing Director, William Blair Capital 1996
(62) Partners (private equity investing) since
1994; (formerly Chief Executive Officer
and Chairman of the Board of Directors,
Continental Bank Corporation.
Anne-Lee Verville Consultant since 1997; General Manager, New nominee
(54) Global Education Industry priorthereto;
formerly President, Applications
Solutions Division, IBM Corporation
(global education and global applications).
---------------------------
<PAGE>
(1) Except as otherwise noted, each individual has held the office indicated or
other offices in the same company for the last five years.
(2) Mr. Mayer is an "interested person," as defined in the Investment Company
Act of 1940 (1940 Act) because of his affiliation with WR Hambrecht & Co.
(a registered broker-dealer).
(3) Mr. Palombo is an "interested person," as defined in the 1940 Act because
of his affiliation with Liberty Financial Companies, Inc. (Liberty
Financial), an indirect majority-owned subsidiary of Liberty Mutual
Insurance Company.
<PAGE>
Trustees' Compensation; Meetings and Committees
A. Trustees' Compensation. The Board of Trustees will serve as Trustees of the
Liberty Fund Complex and Stein Roe Funds for which each Trustee, except for Mr.
Palombo, will receive an additional annual retainer of $45,000, and attendance
fees of $8,000 for each regular joint Board meeting and $1,000 for each special
joint Board meeting. The Board is expected to hold six regular joint Board
meetings each year. Committee chairs will receive an annual retainer of $5,000.
Other Committee members will receive an additional annual retainer of $1,000,
and receive $1,000 for each special meeting attended on a day other than a
regular joint meeting day. Two-thirds of the Trustees' fees are allocated among
the Liberty Fund Complex and Stein Roe Funds based on their relative net assets,
and one-third of the fees are divided equally among the Liberty Fund Complex and
Stein Roe Funds.
The Stein Roe Funds do not currently provide pension or retirement plan benefits
to the Trustees. However, William W. Boyd and John A. Bacon, two of the Trustees
currently serving on the Boards of Trustees of the Stein Roe Funds who are not
continuing on the Boards, will receive certain payments after completing their
service on the Boards. Mr. Boyd will receive a payment of $50,000 upon his
departure. Mr. Bacon will receive payments at an annual rate equal to the 1999
compensation of the Trustees of the Stein Roe Funds until he would otherwise
have retired at age 74 on December 31, 2001. The payments to Mr. Bacon will be
made quarterly, beginning in 2001. Liberty Financial and Stein Roe Funds will
each bear one-half of the cost of the payments to Messrs. Boyd and Bacon; the
Stein Roe Funds' portion of the payments will be allocated among the Stein Roe
Funds based on each fund's share of the Trustee fees for 2000.
Further information concerning the Trustees' compensation is included in Part 4.
Fund Information on page _____.
B. Meetings and Committees. The current Board of Trustees of the Stein Roe
Funds consists of one interested and six non-interested Trustees.
Audit Committee. The Audit Committee of the Stein Roe Funds, consisting of
Messrs. Hacker (Chairman), Bacon, Boyd, Nelson and Theobald and Ms. Kelly, all
of whom are non-interested Trustees, recommends to the Board of Trustees the
independent accountants to serve as auditors, reviews with the independent
accountants the results of the auditing engagement and internal accounting
procedures and considers the independence of the independent accountants, the
range of their audit services and their fees.
Compensation Committee. The Compensation Committee of the Stein Roe Funds,
consisting of Messrs. Boyd and Nelson, both of whom are non-interested Trustees,
reviews compensation of the board members who are not affiliated with the
investment adviser.
Nominating Committee. The Nominating Committee of the Stein Roe Funds,
consisting of Messrs. Boyd and Nelson, both of whom are non-interested Trustees,
recommends to the Board of Trustees, among other things, nominees for trustee
and for appointments to various committees. The Committee will consider
candidates for trustee recommended by shareholders. Written recommendations with
supporting information should be directed to the Committee in care of your Fund.
Executive Committee. The Executive Committee of the Stein Roe Funds, consisting
of Mr. Boyd, a non-interested Trustee, and Mr. Cook, an interested Trustee, is
authorized to take certain actions delegated to it by the full Board of Trustees
and to exercise the full powers of the Board of Trustees, with some exceptions,
between Board meetings.
Record of Board and Committee Meetings. During the fiscal year ended June 30,
2000, the Board of Trustees of the Base Trust held six meetings, the Audit
Committee held four meetings, the Compensation Committee held one meeting, the
Nominating Committee did not hold any meetings and the Executive Committee held
two meetings.
During the most recently completed fiscal years, each of the current Trustees
attended more than 75% of the meetings of the Board of Trustees and the
committees of which such Trustee is a member.
If any nominee listed above becomes unavailable for election, the enclosed proxy
card may be voted for a substitute nominee in the discretion of the proxy
holder(s).
THE BOARD OF TRUSTEES OF THE BASE TRUST RECOMMENDS THAT THE SHAREHOLDERS OF EACH
FUND VOTE FOR EACH NOMINEE IN PROPOSAL 4.
REQUIRED VOTE FOR PROPOSAL 4
Shareholders of each Fund vote together with the shareholders of the other
feeder funds of the respective Portfolios and with the shareholders of the other
master funds of the Base Trust for the election of Trustees of the Base Trust. A
plurality of the votes cast at the Meetings for the Base Trust, if a quorum is
represented, is required for the election of each Trustee to the Board of
Trustees of the Base Trust.
PART 3. INFORMATION REGARDING VOTING AND SHAREHOLDER MEETINGS.
This section provides further information regarding the methods of voting and
shareholder meetings.
In Parts 3 and 4, the following acronym codes will be used to identify the
Liberty Mutual Funds:
------------- -------------------------- ---------- ----------------------------
CODE LIBERTY MUTUAL FUND CODE LIBERTY MUTUAL FUND
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LHYSF Liberty High Yield LCBP Liberty Counselor Balanced
Securities Portfolio
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LIF Liberty Income Fund LCGP Liberty Counselor Growth
Portfolio
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LSIF Liberty Strategic Income LCIP Liberty Counselor Income
Fund Portfolio
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LTMAGF Liberty Tax-Managed LHYMF Liberty High Yield
Aggressive Growth Fund Municipal
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LTMVF Liberty Tax-Managed LITEF Liberty Intermediate
Value Tax-Exempt Fund
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LIGF Liberty Intermediate LTEF Liberty Tax-Exempt Fund
Government Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LMMF Liberty Money Market Fund LTEIF Liberty Tax-Exempt Insured
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LNGCF Liberty Newport Greater LTEMMF Liberty Tax-Exempt Money
China Market Fund
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LNJOF Liberty Newport Japan LUF Liberty Utilities Fund
Opportunities Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LCF Liberty Contrarian Fund LCATEF Liberty California
Tax-Exempt
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LCEF Liberty Contrarian LCTTEF Liberty Connecticut
Equity Tax-Exempt Fund
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LCIF Liberty Contrarian LMATEF Liberty Massachusetts
Income Tax-Exempt Fund
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LFSF Liberty Federal LNYTEF Liberty New York
Securities Fund Tax-Exempt
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LNGUF Liberty Newport Global LOHTEF Liberty Ohio Tax-Exempt
Utilities Fund Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LNIEF Liberty Newport LGIF Liberty Growth & Income
International Fund
Equity Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LREF Liberty Real Estate Fund LNAPF Liberty Newport Asia
Pacific
Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LSVF Liberty Select Value Fund LNEF Liberty Newport Europe Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
LSF Liberty Special Fund LNTF Liberty Newport Tiger Fund
------------- -------------------------- ---------- ----------------------------
------------- -------------------------- ---------- ----------------------------
TLF The Liberty Fund LFRAF Liberty Floating Rate
Advantage
Fund
------------- -------------------------- ---------- ----------------------------
<PAGE>
A. Proxy Solicitation Methods. Shareholders of the Liberty Mutual Funds entitled
to vote at the Meetings will receive proxy materials in the mail. The Funds have
engaged the services of SCC to assist in the solicitation of proxies. As the
date approaches, if your vote is not received, you may receive a call from SCC
reminding you to exercise your right to vote. At this time, you may elect to
vote your shares telephonically.
B. Proxy Solicitation Costs. The Liberty Mutual Funds will bear the cost of the
solicitation (with a portion of certain Funds' expenses borne by Liberty
Financial) which includes printing of proxy materials, mailing and the
tabulation of votes. By voting as soon as you receive your proxy materials, you
will help reduce the cost of additional mailings. The cost of this assistance
for each Liberty Mutual Fund is not expected to exceed the following:
------------- -------------------------- ----------- ---------------------------
CODE SOLICITATION COST CODE SOLICITATION COST
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LHYSF $107,912 LCBP 1,962
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LIF 17,768 LCGP 2,928
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LSIF 152,376 LCIP 833
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LTMAGF 1,138 LHYMF 9,371
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LTMVF 6,880 LITEF 1,639
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LIGF 69,210 LTEF 108,397
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LMMF 23,856 LTEIF 8,704
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LNGCF 18,096 LTEMMF 1,459
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LNJOF 12,756 LUF 105,786
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LCF 763 LCATEF 10,934
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LCEF 13,410 LCTTEF 7,512
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LCIF 991 LMATEF 9,083
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LFSF 71,536 LNYTEF 5,055
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LNGUF 25,572 LOHTEF 5,947
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LNIEF 16,505 LGIF 172,610
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LREF 2,202 LNAPF 3,695
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LSVF 102,922 LNEF 1,915
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
LSF 17,335 LNTF 199,050
------------- -------------------------- ----------- ---------------------------
------------- -------------------------- ----------- ---------------------------
TLF $164,763 LFRAF 3,780
------------- -------------------------- ----------- ---------------------------
C. Record Date and Quorum. Each shareholder of record of any Fund at the close
of business on September 29, 2000 (Record Date) will have one vote for each
share held. Holders of 30% of the shares of each Liberty Mutual Fund voting on a
Proposal outstanding on the Record Date constitute a quorum and must be present
in person or represented by proxy for business to be transacted at the Meetings
on Proposals 2 and 3. With respect to Proposal 1, shareholders of each Liberty
Mutual Fund vote together with the shareholders of the other series of the
applicable Trust for the election of Trustees; 30% of the outstanding shares of
the Trust constitutes a quorum for voting on the election of Trustees. With
respect to Proposal 4, the shareholders of each of Liberty Money Market Fund and
Liberty Municipal Money Market Fund vote together with the shareholders of the
other feeder funds of the respective Portfolios and with the shareholders of the
other master funds of the Base Trust for the election of Trustees of the Base
Trust; 30% of the outstanding shares of the Base Trust constitutes a quorum for
voting on the election of Trustees. Regardless of how you vote ("For", "Against"
or "Abstain"), your shares will be counted as present and entitled to vote for
purposes of determining the presence of a quorum. If a shareholder withholds
authority or abstains, or the proxy reflects a "broker non-vote" (i.e., shares
held by brokers or nominees as to which (i) instructions have not been received
from the beneficial owners or persons entitled to vote and (ii) the broker or
nominee does not have discretionary voting power on a particular matter), it
will have the effect of votes (a) present for purposes of determining a quorum
for each proposal and (b) against proposals 2 through 4. With respect to the
election of Trustees (Proposals 1 and 4), withheld authority, abstentions and
broker non-votes have no effect on the outcome of the voting.
D. Revoking Your Proxy. You may revoke your proxy at any time up until the
voting results are announced at the Meetings. You may revoke your proxy by
writing to the Secretary of the Liberty Mutual Funds, Attn: William J. Ballou,
One Financial Center, 11th Floor, Boston, MA 02111-2621. You may also revoke
your proxy by voting again by using one of the following four ways: (a) by
accessing our Web site; (b) by using your enclosed proxy card; (c) by fax (not
available for all shareholders; refer to the enclosed proxy insert) or (d)
voting in person at the Meetings. You may also revoke your vote telephonically
by calling SCC at 1-800-732-3683.
E. Shareholder Proposals. Proposals of shareholders which are intended to be
considered for inclusion in the Liberty Mutual Funds' proxy statement must be
received within a reasonable amount of time prior to any meetings. The Liberty
Mutual Funds do not currently intend to hold shareholder meetings in 2001.
F. Annual/Semiannual Reports. Further information concerning a Liberty Mutual
Fund is contained in its most recent Annual and/or Semiannual Report to
Shareholders, which is obtainable free of charge by writing Colonial Management
Associates, Inc. at One Financial Center, Boston, Massachusetts 02111 or by
calling 1-800-426-3750.
G. Other Matters. As of the date of this proxy statement, only the business
mentioned in proposals 1 through 4 of the Notice of the Special Meetings of
Shareholders is contemplated to be presented. If any procedural or other matters
come before the Meetings, your proxy shall be voted in accordance with the best
judgement of the proxy holder(s).
H. Adjournment. If sufficient votes in favor of any of the proposals set forth
in the Notice of Special Meetings of Shareholders are not received by the time
scheduled for the meeting, the persons named as proxies may propose adjournments
of the meeting for a period or periods of not more than 120 days in the
aggregate to permit further solicitation of proxies with respect to those
proposals. Any adjournment will require the affirmative vote of a majority of
the votes cast on the question in person or by proxy at the session of the
meeting to be adjourned. The persons named as proxies will vote in favor of
adjournment those proxies that are entitled to vote in favor of such proposals.
They will vote against adjournment those proxies required to be voted against
such proposals. Any proposals for which sufficient favorable votes have been
received by the time of the meeting may be acted upon and considered final
regardless of whether the meeting is adjourned to permit additional solicitation
with respect to any other proposal.
I. Compliance with Section 16(a) of the Securities Exchange Act of 1934 (Liberty
Floating Rate Advantage Fund only). Section 16(a) of the Securities Exchange Act
of 1934, as amended, and Section 30(f) of the 1940 Act, as amended, require the
Fund's Board and certain other persons (Section 16 reporting persons), to file
with the Securities and Exchange Commission (SEC) initial reports of ownership
and reports of changes in ownership of the Fund's shares and to furnish the Fund
with copies of all Section 16(a) forms they file. Based solely upon a review of
copies of such reports furnished to the Fund for the fiscal year ended August
31, 2000, the Section 16 reporting persons complied with all Section 16(a)
filings applicable to it.
PART 4. FUND INFORMATION.
For each class of each Liberty Mutual Fund's shares and each Trust's shares
entitled to vote at the Meetings, the number of shares outstanding as of
September 29, 2000 was as follows:
<PAGE>
-------------- --------------------- --------------------- ---------------------
Liberty
Mutual Fund Outstanding Outstanding Outstanding
Class A Shares Class B Shares Class C Shares
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LIF 16,148,249.120 5,552,405.321 427,097.942
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LMMF 239,005,963.398 71,961,717.385 4,112,265.135
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LCF 331,485.813 74,278.688 4,412.855
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LNGUF 10,348,066.451 930,888.097 62,594.830
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LSF 4,884,506.242 0.000 0.000
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LCIP 298,986.212 250,776.121 187,015.430
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LHYMF 5,788,695.741 9,226,892.968 303,956.972
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LITEF 1,598,122.143 1,119,745.397 181,420.286
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LTEF 144,371,138.034 15,870,162.790 389,499.862
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LTEIF 16,346,727.166 3,265,663.585 73,256.843
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LTEMMF 11,693,512.056 560,889.127 222,996.360
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LCATEF 9,320,321.743 8,710,410.880 486,216.731
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LCTTEF 27,046,330.054 9,976,521.288 689,904.308
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LMATEF 18,851,864.727 5,901,995.294 177,799.580
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LNYTEF 6,334,227.330 6,049,749.324 80,177.473
-------------- --------------------- --------------------- ---------------------
-------------- --------------------- --------------------- ---------------------
LOHTEF 6,563,828.390 3,997,235.115 40,882.573
-------------- --------------------- --------------------- ---------------------
-------------- --------------- ---------------- ---------------- ---------------
Liberty Outstanding Outstanding Outstanding Outstanding
Mutual Fund Class A Class B Shares Class C Shares Class I Shares
Shares
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LCEF 4,080,501.791 28,816.534 608.519 591,404.515
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
Liberty Outstanding Outstanding Outstanding Outstanding
Mutual Fund Class A Class B Shares Class C Shares Class Z Shares
Shares
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LHYSF 76,049,963.256 85,000,541.081 9,484,939.401 94,118.705
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LTMAGF 314,282.990 1,118,558.394 76,151.548 10,377.487
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LTMVF 1,155,286.572 4,127,766.734 835,535.857 103.950
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LIGF 76,405,556.013 26,876,141.566 307,789.366 966,002.020
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LNGCF 3,189,764.828 320,194.813 71,303.235 8,143.287
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LNIEF 3,368,778.377 3,420,523.691 88,370.612 479,140.841
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LFSF 57,933,053.043 5,154,093.185 353,058.312 102.664
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LREF 530,746.385 92,439.873 13,527.014 33,788.089
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LSVF 17,344,993.683 13,474,790.485 1,043,774.270 47,566.852
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
TLF 85,501,505.934 60,443,270.570 640,428.421 313.575
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LCBP 777,227.095 1,152,133.755 470,120.394 53,994.765
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LCGP 909,246.217 1,164,332.097 499,742.022 81,282.092
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LUF 16,651,725.002 28,643,739.600 200,553.719 14,549.200
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LGIF 15,676,398.992 38,455,709.768 1,403,147.563 52.015
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LNAPF 425,886.313 236,850.346 52,040.187 91,432.893
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LNEF 796,834.961 261,794.817 41,326.596 3,031.573
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LFRAF 6,284,360.530 1,850,429.620 1,454,213.709 221,897.853
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
Liberty Outstanding Outstanding Outstanding Outstanding
Mutual Fund Class A Class B Shares Class C Shares Class J Shares
Shares
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LSIF 91,129,446.697 120,605,548.331 7,289,349.992 90,370,760.596
-------------- --------------- ---------------- ---------------- ---------------
-------------- ---------------
Liberty Outstanding
Mutual Fund Class Z Shares
-------------- ---------------
-------------- ---------------
LSIF 793,964.353
-------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
Liberty Outstanding Outstanding Outstanding Outstanding
Mutual Fund Class A Class B Shares Class C Shares Class I Shares
Shares
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LCIF 441,733.547 23,503.966 2,671.810 10,601.265
-------------- --------------- ---------------- ---------------- ---------------
-------------- ---------------
Liberty Outstanding
Mutual Fund Class Z Shares
-------------- ---------------
-------------- ---------------
LCIF 363,381.320
-------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
Liberty Outstanding Outstanding Outstanding Outstanding
Mutual Fund Class A Class B Shares Class C Shares Class T Shares
Shares
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LNTF 27,808,356.182 25,782,765.785 4,131,642.676 4,311,916.152
-------------- --------------- ---------------- ---------------- ---------------
-------------- ---------------
Liberty Outstanding
Mutual Fund Class Z Shares
-------------- ---------------
-------------- ---------------
LNTF 14,660,618.823
-------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
Liberty Outstanding Outstanding Outstanding Outstanding
Mutual Fund Class A Class B Shares Class C Shares Class J Shares
Shares
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------- ---------------- ---------------
LNJOF 1,189,572.229 1,547,061.523 621,308.594 90.000
-------------- --------------- ---------------- ---------------- ---------------
-------------- --------------- ---------------
Liberty Outstanding Outstanding
Mutual Fund Class N Shares Class Z Shares
-------------- --------------- ---------------
-------------- --------------- ---------------
LNJOF 375,473.000 293,020.205
-------------- --------------- ---------------
<PAGE>
--------------------------------------- ----------------------------------------
Liberty Trust Outstanding Shares
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust I 559,435,280.400*
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust II 432,208,774.200
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust III 297,679,032.823
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust IV 262,368,102.700
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust V 125,847,396.700
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust VI 72,651,977.750
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Funds Trust VII 77,798,287.540
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Liberty Floating Rate Advantage Fund 9,810,901.712
--------------------------------------- ----------------------------------------
* Includes outstanding shares for Liberty Tax-Managed Growth Fund and Liberty
Tax-Managed Growth Fund II, two series of Liberty Funds Trust I that will
elect trustees of the Trust in a separate proxy statement.
As of September 29, 2000, the following shareholders of record owned 5% or more
of the applicable outstanding Class(es) of shares of the following Liberty
Mutual Funds:
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LHYSF B & C Merrill Lynch, Pierce, 9,086,380.550 10.69%
Fenner & Smith, Inc. (B) 12.37%
For the Sole Benefit 1,173,308.314
of its Customers (C)
4800 Deer Lake Drive
E. 3rd Floor
Jacksonville, FL 32216
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LHYSF C Banc One Securities 2,829,878.142 29.84%
Corp
FBO The One Select
Portfolio
733 Greencrest Drive
Westerville, OH 43081
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LIF B & C Merrill Lynch, Pierce, 565,392.653 (B) 10.18%
Fenner & Smith, Inc. 55,606.580 (C) 13.02%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSIF B & C Merrill Lynch, Pierce, 6,688,700.666 5.55%
Fenner & Smith, Inc. (B) 12.09%
BankBoston NA Custodian 880,929.778 (C)
4800 Deer Lake Drive
E. 3rd Floor
Jacksonville, FL 32216
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LSIF J Tokai Maruman 90,370,760.596 100.00% (*)
Securities
1-10, Nihonbashi
2-Chome
Chuo-Ku
Tokyo, Japan 103-0027
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSIF Z Colonial Counselor 472,038.079 59.45%
Growth Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSIF Z Colonial Counselor 111,036.292 13.99%
Income Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSIF Z Colonial Counselor 210,726.507 26.54%
Balanced Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTMAGF A, C & Colonial Management 141,666.667 (A) 45.08%
Z Associates, Inc. 8,333.333 (C) 10.94%
One Financial Center 8,333.333 (Z) 80.30%
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTMAGF B & C Merrill Lynch, Pierce, 103,822.973 (B) 9.28%
Fenner & Smith, Inc. 17,189.750 (C) 22.57%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTMAGF C Cranford Construction 7,105.584 9.33%
Company Inc.
c/o Selengut
1678 45th Street
Brooklyn, NY 11204
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTMAGF C Pegge Ann Wall Trustee 7,283.321 9.56%
U/W F Willard Wall
Trust 1
32394 Pleasant Oaks
Drive
Springville, CA 93265
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTMAGF Z Margery L. Hayward 2,044.154 19.70%
7327 W. Lafayette Place
Mequon, WI 53092
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTMVF A & C Merrill Lynch, Pierce, 99,831.558 (A) 8.64%
Fenner & Smith, Inc. 78,582.051 (C) 9.40%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LTMVF Z Colonial Management 103.950 100.00%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LIGF B & C Merrill Lynch, Pierce, 1,950,512.625 7.26%
Fenner & Smith, Inc. (B) 12.45%
For the Sole Benefit 38,310.617 (C)
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LIGF C Cynthia D. Frankel 17,236.089 5.60%
P.O. Box 25003
Asheville, NC 28813
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LIGF C The Reese Family 16,307.041 5.30%
Partnership
17317 Wood Road
Bow, WA 98232
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LIGF Z Colonial Counselor 333,593.438 34.53%
Income Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LIGF Z Colonial Counselor 632,244.524 65.45%
Balanced Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LMMF A Colonial Investment 27,288,167.790 11.42%
Services, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LMMF B Susan P. Ryan 209,009.300 5.08%
8 Burlington Road
Harwinton CT 06791
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LMMF B Investors Bank & Trust 388,665.500 9.45%
Company Custodian
Michael Lutsky IRA
4601 Brewster Lane
Tarzana, CA 91356
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNGCF A, B & Merrill Lynch, Pierce, 559,280.470 (A) 17.53%
C Fenner & Smith, Inc. 67,086.595 (B) 20.95%
For the Sole Benefit 15,761.287 (C) 22.10%
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LNGCF Z Colonial Management 7,616.387 93.53%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNJOF A, B & Merrill Lynch, Pierce, 76,377.274 (A) 6.42%
C Fenner & Smith, Inc. 208,250.199 (B) 13.46%
For the Sole Benefit 99,225.535 (C) 15.97%
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNJOF Z Thomas C. Theobald 16,910.764 5.77%
55 Railroad Avenue
Plaza Level
Greenwich, CT 06830
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNJOF Z Mitra & Co. 233,736.059 79.77%
c/o Marshall & Ilsley
Trust Company
1000 N. Water Street
Milwaukee, WI 53202
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCF A James E. Crabbe Trustee 200,000.000 60.33% (*)
James E. Crabbe Trust
121 SW Morrison
Portland, OR 97204
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCF A Richard S. Huson 100,000.000 30.17%
Yvonne M. Huson Trustee
Richard S. Huson Trust
2480 NW Tower Rock Rd.
Bend, OR 97701
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCF B Advest Bank Trustee 8,287.934 11.16%
Jacob Levinson Mar
Trust
FBO M. Levinson
Attn: Trust Division
90 State House Square
Hartford, CT 06103
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCF C Orville B. Lamb 274.163 6.21%
Edna M. Lamb
Orville Paul Lamb
101 Honeysuckle
Casper, WY 82604
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF B Investors Bank & Trust 1,479.255 5.13%
Company Custodian
Morris E. Kinghorn IRA
P.O. Box 83
Pocatello, ID 83204
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LCEF B Investors Bank & Trust 1,616.486 5.61%
Company Trustee
Arms Inc. 401(k) Plan
2447 E. Sunshine Drive
Boise, ID 83712
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF C Investors Bank & Trust 284.402 46.74%
Company Custodian
Clyde Williams SARSEP
Plan
Burnt Ranch Road
Cherry Creek Ranch
Mitchell, OR 97750
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF C Investors Bank & Trust 41.083 6.75%
Company Custodian
Susan C. Williams
SARSEP Plan
43861 Burnt Ranch Road
Mitchell, OR 97750
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF C Colonial Management 62.691 10.30%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF C Investors Bank & Trust 75.327 12.38%
Company Trustee
Morgan Franklin
Corporation 401(k)
Retirement Plan
47042 Dixon Court
Lexington Park, MD
20653
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF C Investors Bank & Trust 31.998 5.26%
Company Trustee
Morgan Franklin
Corporation 401(k)
Retirement Plan
45803 Spruce Drive
Lexington Park, MD
20653
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF C Don A. McKee 89.993 14.79%
Molly McKee
3917 Oakwood Drive N.
Pearlanad, TX 77581
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LCEF I Northwestern Trust 470,458.694 79.55%
Company Custodian
FBO IBEW Local 76
Supplemental Income
Fund
1201 3rd Ave. Ste. 2010
Seattle, WA 98101
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCEF I Northwestern Trust 113,624.910 19.21%
Company Custodian
FBO IBEW Local 76
Supplemental
Income Fund
1201 3rd Avenue
Ste. 2010
Seattle, WA 98101
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF A & B Merrill Lynch, Pierce, 49,929.317 (A) 11.30%
Fenner & Smith, Inc. 13,433.080 (B) 57.15%
Merrill Lynch
Financial Data Service
Attn: Service Team
4800 Deer Lake Drive
E. 3rd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF A Ibak & Co. 116,525.561 26.38%
P.O. Box 1700
102 South Clinton
Iowa City, IA 52244
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF B Raymond James & 1,284.876 5.47%
Associates Inc. CSDN
Norma B. Porche IRA
127 W. McKennon
Bixby, OK 74008
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF B Jan C. Brueckmann 2,535.358 10.79%
4510 Church Road
Hampstead, MD 21074
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF I Colonial Management 10,601.265 100.00%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF Z Colonial Counselor 103,003.279 28.35%
Income Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIF Z Colonial Counselor 260,272.153 71.63% (*)
Balanced Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LFSF A, B & Merrill Lynch, Pierce, 3,625,214.954 6.26%
C Fenner & Smith, Inc. (A) 11.42%
For the Sole Benefit 588,410.739 (B) 6.60%
of its Customers 23,307.294 (C)
4800 Deer Lake Drive
E. 3rd Floor
Jacksonville, FL 32216
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LFSF C The Simsbury Fire 54,313.566 15.38%
District
871 Hopmeadow Street
Simsbury, CT 86070
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LFSF C Dental Laboratory 23,051.755 6.53%
Assoc of the State of
New York
A Corporation
c/o Mark Polevoy
#1 Barstow Rd. Ste. P20
Great Neck, NY 11021
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LFSF Z Colonial Management 102.664 100.00%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNGUF C Merrill Lynch, Pierce, 11,159.305 17.83%
Fenner & Smith, Inc.
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNIEF B & C Merrill Lynch, Pierce, 363,249.908 (B) 10.62%
Fenner & Smith, Inc. 5,020.230 (C) 5.68%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNIEF C Colonial Management 9,733.271 11.01%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNIEF Z Colonial Counselor 325,486.231 67.93%
Growth Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNIEF Z Colonial Counselor 153,570.425 32.05%
Balanced Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LREF A Enele & Co 46,972.293 8.85%
Dividend Reinvest
c/o Copper Mountain
Trust
601 SW Second Avenue
Suite 1800
Portland, OR 97204
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LREF A Charles Schwab & Co. 185,632.640 34.98% (*)
Inc.
Special Custody A/C
for Benefit of
Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LREF B Investors Bank & Trust 4,917.683 5.32%
Company Custodian
Joseph M. Gnesin IRA
11 Beach Street
New York, NY 10013
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LREF B First Trust 5,329.694 5.77%
Corporation Custodian
17 Tobey Village
Office Park
Pittsford, NY 14534
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LREF C Daniel Keilitz 886.783 6.56%
17100 Bridgestone
Court #207
Ft. Myers, FL 33908
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LREF C Raymond James & 898.473 6.64%
Associates, Inc.
Custodian
880 Carillon Parkway
St. Peters, FL 33716
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LREF I Colonial Counselor 33,681.108 99.68%
Income Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSVF B & C Merrill Lynch, Pierce, 716,672.622 (B) 5.32%
Fenner & Smith, Inc. 145,989.764 (C) 13.99%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSVF C Banc One Securities 240,769.130 23.07%
Corp
FBO The One Select
Portfolio
733 Greencrest Drive
Westerville, OH 43081
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LSVF C AG Edwards & Sons 88,068.956 11.85%
One North Jefferson
Avenue
St. Louis, MO 63103
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSF A FTC & Co. 577,726.047 11.83%
Attn: Datalynx #203
P.O. Box 173736
Denver, CO 80217
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LSF A Charles Schwab & Co. 1,109,976.285 22.72%
Inc.
Special Custody A/C
for Benefit of
Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
TLF Z Louis A. Volante Jr. 313.574 100.00%
RoseMarie A. Volante
32 Sheparo Avenue
N. Providence, RI 02904
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCBP A Daughters of Mary of 55,791.904 7.18%
the Immaculate
Conception Manor
Convent
50 Pulaski Street
New Britian, CT 06053
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCBP A Newtown Square Fire 90,931.449 11.70%
Company
Commonwealth Bank CSA
8 N Newtown St. Rd.
P.O. Box 453
Newtown Square, PA
19073
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCBP C Robert T. Buchanan 26,811.273 5.70%
Sara M. Buchanan
Trustee
Kangaroo Court
Restaurants Texas, Inc.
102 W. Crocket St. #800
San Antonio, TX 78205
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCBP C The Trustees for the 74,330.937 15.81%
Plan of McAllen Bolt &
Screw Inc. Profit
Sharing Retirement Plan
A/C Master Account
P.O. Box 1090
McAllen, TX 78505
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LCBP C Bruno A. Schiavo 31,688.134 6.74%
Michelina Schiavo
Trustee
B&M Schiavo Nominee
Trust
79 Walker Road
Westwood, MA 02090
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP A International 97,875.461 10.76%
BancShares Corporation
Employee Profit
Sharing Plan
1200 San Bernardo Ave.
Laredo, TX 78042
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP A International Bank of 90,252.165 9.93%
Commerce Trustee
Abraham Rigal Trust
1200 San Bernardo Ave.
Laredo, TX 78042
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP C Roberto & Soila Garcia 26,683.094 5.34%
Family Ltd Partnership
304 Sunflower Street
McAllen, TX 78504
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP C Liberty Securities C 65,974.144 13.20%
c/o Independent
Financial Mark
100 Manhattanville Road
Puchase, NY 10577
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP C William A. Schuchmann 26,837.065 5.37%
56 North Prospect
Street
Ansonia, CT 06401
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP C Lazaro Geideshman 93,476.850 18.71%
302 Convent
Laredo, TX 78040
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCGP C Tommy L. Davis 28,293.777 5.66%
Joan A. Davis
1012 Petra Drive
Napa, CA 94558
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP A Margaret Bagdigian 24,958.481 8.35%
19 Batterson Park Road
Farmington, CT 06032
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP A Investors Bank & Trust 21,821.714 7.30%
Company Custodian
Donald W. Hofsess IRA
865 South Adams Street
Denver, CO 80209
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP A Valerie Parker 15,989.166 5.35%
252 Lexington Road
Concord, MA 01742
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LCIP A Bernard Dathe 43,355.603 14.50%
Margaret Dathe
265 Oak Park Lane
Pleasant Hill, CA 94523
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP A Investors Bank & Trust 16,761.822 5.61%
Company Custodian
Sylvan B. Baer IRA
3770 S. Albion Street
Englewood, CO 80110
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP B Investors Bank & Trust 28,781.052 11.48%
Company Custodian
Donald L. Noblit IRA
563 Pochassic Road
Westfield, MA 01085
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C John Fertig Jr. 11,955.780 6.39%
Janice Nardona-Clews
Trustees
Sophie S. Nardona Trust
24 Gilbert Street
Waterbury, CT 06702
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Estelle Mosko Trustee 13,718.446 7.34%
Estelle Mosko Trust
390 Forest Street
Denver, CO 80220
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Laredo Childrens Museum 11,980.902 6.41%
West End Washington St.
Laredo, TX 78040
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C International Bank of 13,272.595 7.10%
Commerce Trustee
Belia R. Munoz Guerra
Trust
1200 San Bernardo Ave.
Laredo, TX 78042
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Mary Louise Johnican 21,191.795 11.33%
Rhonda Rochelle Herndon
3221 8th Street
Bay City, TX 77414
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Ella Bocock 9,664.357 5.17%
P.O. Box 513A
Port Lavaca, TX 77979
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Bobby W. Neuman 9,694.920 5.18%
110 Blackstone
Port Lavaca, TX 77979
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Jess C. Sanford 18,529.038 9.91%
27 Oak Circle
Bay City, TX 77414
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LCIP C Joycelyn L. Handel 10,855.621 5.80%
2725 E. Fir Unit #94
Mount Vernon, WA 98273
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCIP C Stephen H. Tontini 17,071.413 9.13%
Ana I Solloso Blanco
Lockheed Martin
Bethesda Mail Pouch #52
Attn: S. Tontini/6801
Rockledge Drive
Bethesda, MD 20817
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LHYMF B & C Merrill Lynch, Pierce, 864,860.035 (B) 9.37%
Fenner & Smith, Inc. 21,965.601 (C) 7.23%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LHYMF C Bost & Co 47,303.690 15.56%
Mellon Private Asset
Management
Attn: Mutual Fund
Operations
P.O. Box 534005
Pittsburgh, PA 15253
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LITEF A & C Merrill Lynch, Pierce, 93,766.769 (A) 5.87%
Fenner & Smith, Inc. 71,220.571 (C) 39.26%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LITEF C Leone O'Ferrall 12,369.869 6.82%
Angeline O'Ferrall
Trustee
Leone & Angeline
O'Ferrall Rev Trust
P.O. Box 145
Gualala, CA 95445
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LITEF C Donald I. Coggins 12,820.513 7.07%
Trustee
Donald I. Coggins Trust
P.O. Box 544
Wilmington, VT 05363
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LITEF C Eleanor B. Coggins 16,025.641 8.83%
Trustee
Eleanor B. Coggins
Trust
Lape Raponda
P.O. Box 544
Wilmington, VT 05363
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LTEF B Merrill Lynch, Pierce, 1,048,557.256 6.61%
Fenner & Smith, Inc.
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEF C Terry Collins 203,886.537 52.35%
RoseMary Collins
306 Jester Court
Petaluma, CA 94954
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEIF B & C Merrill Lynch, Pierce, 229,841.980 (B) 7.04%
Fenner & Smith, Inc. 17,692.177 (C) 24.15%
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEIF C Don C. Fisher Trustee 6,730.574 9.19%
Don C. Fisher Living
Trust
P.O. Box 701
Jackson, WY 83001
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEIF C Francis E. Torr 12,742.951 17.39%
Florence J. Torr
Trustees
Torr Family Trust
1 Bear Creek Road
Novato, CA 94947
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEMMF A Billy Gene Yarbrough 2,035,235.050 17.40%
Louise Yarbrough
Trustees
Yarbrough Family Trust
97 Dobbins Street
Vacaville, CA 95688
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEMMF B RSBCO 80,700.693 14.39%
FBO Julianne F. Cole
P.O. Drawer 1410
Ruston, LA 71273
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEMMF B Vincent Dellaquilla 32,071.970 5.72%
Yolanda Dellaquilla
Joann Lendroth
33 Wolcott Street
New Haven, CT 06513
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEMMF B Charles R. Matties 94,190.420 16.79%
Laura B. Matties
84 Overbrook Road
West Hartford, CT 06107
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LTEMMF C David M. Sutcliffe 15,949.950 7.15%
Trustee
DCR Trust
P.O. Box 220
Wrentham, MA 02093
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LTEMMF C Colonial Management 108,381.860 48.60%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LUF B & C Merrill Lynch, Pierce, 4,602,211.650 16.07%
Fenner & Smith, Inc. (B) 15.22%
For the Sole Benefit 30,528.279 (C)
of its Customers
4800 Deer Lake Drive
E. 3rd Floor
Jacksonville, FL 32216
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LUF Z Colonial Counselor 14,497.353 99.64%
Income Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCATEF A, B & Merrill Lynch, Pierce, 2,068,678.383 7.65%
C Fenner & Smith, Inc. (A) 5.68%
For the Sole Benefit 566,811.317 (B) 28.03%
of its Customers 193,373.004 (C)
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LCTTEF A, B & Merrill Lynch, Pierce, 1,119,185.003 12.01%
C Fenner & Smith, Inc. (A) 15.19%
For the Sole Benefit 1,323,067.710 20.56%
of its Customers (B)
4800 Deer Lake Drive 99,985.017 (C)
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LMATEF C Sybil N. Wetzler 12,581.399 7.08%
Teresa A. Wetzler-Finn
Steven A. Finn Trustee
Sybil N. Wetzler Rev
Trust
5 Tallyho Lane
Andover, MA 01810
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LMATEF C Merrill Lynch, Pierce, 39,366.697 22.14%
Fenner & Smith, Inc.
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LMATEF C Teresa A. Wetzler-Finn 11,318.347 6.37%
Lawrence A. Wetzler
Trustees
U/W Jacob Neumann
5 Tallyho Lane
Andover, MA 01810
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LMATEF C Emily M. Robinson 12,601.336 7.09%
Barrett F. Robinson
405 Winter Street
North Andover, MA 01845
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNYTEF A & B Merrill Lynch, Pierce, 735,457.793 (A) 11.61%
Fenner & Smith, Inc. 1,075,058.659 17.77%
For the Sole Benefit (B)
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNYTEF C Joan Parrotta 4,386.483 5.47%
262-17 Grand Central
Parkway
Little Neck, NY 11362
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNYTEF C Abe Weinstein 14,653.813 18.28%
Laura Weinstein
David Weinstein
Linda Marine
92-30 56 Avenue #1K
Elmhurst, NY 11373
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNYTEF C Howard Read 7,163.801 8.93%
Acct #2
25 Eagle Street
c/o Read & Laniado
Albany, NY 12207
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNYTEF C Dino Gobbo 5,813.756 7.25%
Marita Gobbo
76-11 175 Street
Flushing, NY 11366
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNYTEF C Read & Laniado 14,499.362 18.08%
A Partnership
25 Eagle Street
Albany, NY 12207
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LOHTEF A, B & Merrill Lynch, Pierce, 388,168.470 (A) 5.91%
C Fenner & Smith, Inc. 302,536.402 (B) 7.57%
For the Sole Benefit 4,353.684 (C) 10.65%
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LOHTEF C Virginia Royko Trustee 2,127.959 5.21%
Howard W. Rose
Irrevocable Trust
7450 Little Mountain
Road
Mentor, OH 44060
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LGIF C Merrill Lynch, Pierce, 91,069.436 6.49%
Fenner & Smith, Inc.
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LGIF C Banc One Securities 93,538.117 6.67%
Corp.
FBO The One Select
Portfolio
733 Greencrest Drive
Westerville, OH 43081
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LGIF Z Colonial Management 52.015 100.00%
Associates, Inc.
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNAPF A & C Colonial Management 244,505.198 (A) 57.41%
Associates, Inc. 10,605.322 (C) 20.38%
One Financial Center
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNAPF C Merrill Lynch, Pierce, 8,378.478 16.10%
Fenner & Smith, Inc.
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNAPF Z Colonial Counselor 61,928.635 67.73%
Growth Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNAPF Z Colonial Counselor 29,225.670 31.96%
Balanced Portfolio
245 Summer Street
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNEF A, C & Colonial Management 479,324.792 (A) 60.15% (*)
Z Associates, Inc. 10,000.000 (C) 24.20%
One Financial Center 10,000.000 (Z) 32.99%
Boston, MA 02111
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LNEF A Newport Fund 157,211.210 19.73%
Management, Inc.
580 California St.
#1960
San Francisco, CA 94104
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNEF C Merrill Lynch, Pierce, 4,221.835 10.22%
Fenner & Smith, Inc.
For the Sole Benefit
of its Customers
4800 Deer Lake Drive
E. 2nd Floor
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNEF Z Michael Ellis 546.610 18.03%
Kirsty Ellis
346 Woodside Avenue
Mill Valley, CA 94941
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNEF Z John J. Harrell 570.211 18.81%
P.O. Box 965
Lyle, WA 98635
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNEF Z Thomas R. Tuttle 711.238 23.46%
Sylvia C. Tuttle
Trustee
Tuttle Revocable Trust
440 Davis Court #1621
San Francisco, CA 94111
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNTF A Pershing Custodian 1,672,700.730 6.02%
One Pershing Plaza
Jersey City, NJ 07399
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNTF A, B & Merrill Lynch, Pierce, 1,580,581.891 5.69%
C Fenner & Smith, Inc. (A) 14.63%
For the Sole Benefit 3,773,008.783 28.73%
of its Customers (B)
4800 Deer Lake Drive 1,186,974.366
E. 2nd Floor (C)
Jacksonville, FL 32246
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNTF A & Z Charles Schwab & Co 2,629,110.834 9.45%
Inc. (A) 18.00%
Attn: Mutual Fund 2,639,505.544
Operations 333/4 (Z)
101 Montgomery Street
San Francisco, CA 94104
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNTF Z The Northern Trust 3,206,009.472 21.87%
Company Trustee
Liberty Mutual 401(k)
Retirement Plan
P.O. Box 92956
Chicago, IL 60607
-------------- -------- ------------------------ ---------------- --------------
<PAGE>
-------------- -------- ------------------------ --------------- ---------------
Number of Percentage of
Liberty Class Outstanding Outstanding
Mutual Fund of Name and Address of Shares of Shares of Class
Shares Shareholder Class Owned Owned
-------------- -------- ------------------------ --------------- ---------------
-------------- -------- ------------------------ --------------- ---------------
LNTF Z Wendel & Co 1,433,450.350 9.78%
c/o Bank of New York
Mutual Funds/Reorg
Dept.
P.O. Box 1066
Wall Street Station
New York, NY 10268
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNTF Z The James Irvine 3,157,673.131 21.54%
Foundation
One Market Steuart
Tower
Suite 2500
San Francisco, CA 94105
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LNTF Z Fidelity Investments 1,081,495.535 7.38%
Institutional
Operations Company Inc.
Agent for Certain
Employee Benefits Plan
100 Magellan Way
Mail Zone KW1C
Covington, KY 41015
-------------- -------- ------------------------ ---------------- --------------
-------------- -------- ------------------------ ---------------- --------------
LFRAF A, B, Keyport Life Insurance 881,812.317 (A) 13.97%
C & Z Company 880,110.800 (B) 47.30%
c/o Chris Westfall 220,384.088 (C) 15.08%
125 High Street 221,499.132 (Z) 99.01%
Boston, MA 02101
-------------- -------- ------------------------ ---------------- --------------
* Entity owned 25% or more of the outstanding shares of beneficial interest of
named Fund, and therefore may be presumed to "control" such Fund, as that term
is defined in the 1940 Act.
As of the Record Date, the executive officers and the current Boards of Trustees
as a group were known to beneficially own less than 1% of each of the
outstanding Class(es) of shares of each of the Liberty Mutual Funds.
<PAGE>
The following table sets forth certain information about the executive officers
of each Liberty Mutual Fund:
Executive Officer Office with the Liberty Mutual Funds; Year of Election as
Name & Age Principal Occupation (1) Executive Officer
---------- ------------------------ -----------------
Stephen E. Gibson President of the Liberty Funds since 1998
(46) June, 1998, Chairman of the Board
since July, 1998, Chief Executive
Officer and President since
December, 1996 and Director, since
July, 1996 of the Colonial
(formerly Executive Vice President
from July, 1996 to December,
1996); Director, Chief Executive
Officer and President of Liberty
Funds Group LLC (LFG) since December,
1998 (formerly Director, Chief
Executive Officer and President of
The Colonial Group, Inc. (TCG) from
December, 1996 to December, 1998);
President and Vice Chairman of Stein
Roe & Farnham Incorporated (SR&F)
since January, 2000
(formerly Assistant Chairman from
August, 1998 to January, 2000)
(formerly Managing Director of
Marketing of Putnam Investments, June,
1992 to July, 1996.)
Pamela A. McGrath Treasurer and Chief Financial Officer 1999
(46) of the Liberty Funds and Liberty
All-Star Funds since April, 2000;
Treasurer, Chief Financial Officer
and Vice President of LFG since December,
1999; Chief Financial Officer, Treasurer
and Senior Vice President of
Colonial since December, 1999;
Director of Offshore Accounting for
Putnam Investments from May, 1998 to
October, 1999; Managing Director of
Scudder Kemper Investments from
October, 1984 to December, 1997.
Glenn M. Wolfset Controller and Chief Accounting 2000
(37) Officer of the Liberty Funds since
October, 2000; Senior Vice President
since March, 2000; Senior Vice
President from 1999 to 2000 and Vice
President from 1994 to 1999 of Scudder
Kemper Investments.
Kevin M. Carome Executive Vice President of Liberty
(44) Funds and Liberty All-Star Funds since
October, 2000; Executive Vice
President and Assistant Secretary,
Liberty Funds Group - Chicago;
Senior Vice President, Legal since
January, 1999 of LFG; General Counsel
and Secretary of Stein Roe & Farnham,
Inc. since 1998; Associate General
Counsel and Vice President of Liberty
Financial Companies, Inc. through
January, 1999.
<PAGE>
Executive Officer Office with the Liberty Mutual Funds; Year of Election as
Name & Age Principal Occupation (1) Executive Officer
---------- ------------------------ -----------------
William J. Ballou Secretary of the Liberty Funds and 2000
(35) Liberty All-Star Funds since October,
2000 (Formerly Assistant Secretary
from October, 1997 to October, 2000);
Vice President, Assistant Secretary
and Counsel of Colonial since October,
1997; Vice President and
Counsel since April, 2000 and
Assistant Secretary since
December, 1988 of LFG (Formerly
Associate Counsel from May,
1995 to September, 1997, MFS).
(1) Except as otherwise noted, each individual has held the office
indicated or other offices in the same company for the last five
years.
The current Board of Trustees received the following compensation from each
Liberty Mutual Fund as of each Fund's fiscal year end and for the calendar year
ended December 31, 1999(1):
<PAGE>
------------------- ------------- -------------- ------------- -------------
LIBERTY MUTUAL
FUND
LCF LCEF LCIF LNGUF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
10/31/99 10/31/99 10/31/99 10/31/99
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bleasdale $456(2) $1,146(3) $541(4) $1,387(5)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Collins 427 1,077 509 1,164
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Grinnell 445 1,123 530 1,213
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Lowry 432 1,088 514 1,176
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Macera 423 1,078 510 1,294
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Mayer 451 1,105 523 1,176
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Moody 403(6) 993(7) 472(8) 1,094(9)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Neuhauser 454 1,139 540 1,230
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Stitzel 423 1,078 510 1,294
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Verville 422(10) 1,066(11) 503(12) 1,316(13)
------------------- ------------- -------------- ------------- -------------
<PAGE>
------------------- ------------- -------------- ------------- -------------
LIBERTY MUTUAL
FUND
LNIEF LREF LSVF LSF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
10/31/99 10/31/99 10/31/99 10/31/99
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bleasdale $1,104(14) $570(15) $3,590(16) $796(17)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Collins 937 536 3,093 748
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Grinnell 976 558 3,224 779
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Lowry 946 542 3,126 756
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Macera 1,039 537 3,376 749
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Mayer 945 552 3,133 768
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Moody 879(18) 497(19) 2,906(20) 694(21)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Neuhauser 989 568 3,260 791
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Stitzel 1,039 537 3,376 749
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Verville 1,055(22) 530(23) 3,429(24) 768(25)
------------------- ------------- -------------- ------------- -------------
<PAGE>
------------------- ------------- --------------
LIBERTY MUTUAL
FUND
TLF LTMAGF
------------------- ------------- --------------
------------------- ------------- --------------
Fiscal Year End
10/31/99 10/31/99(26)
------------------- ------------- --------------
------------------- ------------- --------------
Trustee:
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Bleasdale $7,468(27) $451(28)
------------------- ------------- --------------
------------------- ------------- --------------
Ms. Collins 6,387 433
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Grinnell 6,657 451
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Lowry 6,453 433
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Macera 6,971 433
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Mayer 6.460 451
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Moody 6,007(29) 451(30)
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Neuhauser 6,728 455
------------------- ------------- --------------
------------------- ------------- --------------
Mr. Stitzel 6,971 433
------------------- ------------- --------------
------------------- ------------- --------------
Ms. Verville 7,088(31) 451(32)
------------------- ------------- --------------
<PAGE>
------------------- ------------- -------------- ------------- -------------
LIBERTY MUTUAL
FUND
LTMVF LTEF LTEIF LHYMF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
10/31/99 11/30/99 11/30/99 11/30/99
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bleasdale $153(33) $10,598(34) $1,312(35) $1,303(36)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Collins 145 9,974 1,235 1,227
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Grinnell 145 10,396 1,287 1,278
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Lowry 147 10,109 1,247 1,239
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Macera 144 9,985 1,241 1,232
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Mayer 151 10,048 1,244 1,237
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Moody 129(37) 9,384(38) 1,160(39) 1,153(40)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Neuhauser 83 10,504 1,304 1,295
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Stitzel 144 9,985 1,241 1,232
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Verville 144(41) 9,869(42) 1,222(43) 1,214(44)
------------------- ------------- -------------- ------------- -------------
<PAGE>
------------------- ------------- -------------- ------------- -------------
LIBERTY MUTUAL
FUND
LUF LHYSF LIF LSIF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
11/30/99 12/31/99 12/31/99 12/31/99
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bleasdale $4,649(45) $5,056(46) $1,156(47) $6,723(48)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Collins 4,374 4,711 1,077 6,271
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Grinnell 4,560 4,909 1,123 6,489
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Lowry 4,420 4,760 1,088 6,347
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Macera 4,379 4,692 1,076 6,260
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Mayer 4,423 4,958 1,134 6,562
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Moody 4,112(49) 4,485(50) 1,022(51) 5,851(52)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Neuhauser 4,608 4,962 1,138 6,566
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Stitzel 4,379 4,692 1,076 6,260
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Verville 4,328(53) 4,710(54) 1,076(55) 6,301(56)
------------------- ------------- -------------- ------------- -------------
<PAGE>
------------------- ------------- -------------- ------------- -------------
LIBERTY MUTUAL
FUND
LNTF LCATEF LCTTEF LMATEF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
12/31/99 1/31/00 1/31/00 1/31/00
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bleasdale $3,615(57) $1,779(58) $1,173(59) $1,398(60)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Collins 3,369 1,658 1,093 1,480
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Grinnell 3,509 1,728 1,139 1,358
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Lowry 3,405 1,675 1,105 1,317
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Macera 3,357 1,645 1,084 1,292
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Mayer 3,542 1,746 1,151 1,372
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Moody 3,198(61) 1,568(62) 1,035(63) 1,233(64)
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Neuhauser 3,546 1,750 1,155 1,376
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Stitzel 3,357 1,645 1,084 1,292
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Verville 3,372(65) 1,661(66) 1,095(67) 1,305(68)
------------------- ------------- -------------- ------------- -------------
<PAGE>
------------------- ------------- ------------- -------------- -------------
LIBERTY MUTUAL
FUND
LNYTEF LOHTEF LGIF LNAPF
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Fiscal Year End
1/31/00 1/31/00 6/30/00 6/30/00
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Trustee:
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Bleasdale $948(69) $916(70) $5,278(71) $588(72)
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Ms. Collins 883 854 4,787 533
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Grinnell 920 889 4,989 555
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Lowry 893 863 4,931 549
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Macera 876 847 4,761 530
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Mayer 930 898 4,989 555
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Moody 836(73) 807(74) 5,029(75) 561(76)
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Neuhauser 934 903 5,040 564
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Mr. Stitzel 876 847 4,809 536
------------------- ------------- ------------- -------------- -------------
------------------- ------------- ------------- -------------- -------------
Ms. Verville 885(77) 855(78) 4,748(79) 528(80)
------------------- ------------- ------------- -------------- -------------
<PAGE>
-------------------- ------------- ------------- ------------- -------------
LIBERTY MUTUAL FUND
LMMF LTEMMF LFRAF LIGF
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Fiscal Year End
6/30/00 6/30/00 8/31/00 8/31/00
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Trustee:
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Bleasdale $1,608(81) $602(82) $239(83) $3,484(84)
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Ms. Collins 1,456 546 204 3,162
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Grinnell 1,517 569 216 3,327
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Lowry 1,501 562 221 3,253
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Macera 1,449 543 210 3,182
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Mayer 1,517 569 213 3,296
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Moody 1,532(85) 573(86) 233(87) 3,312(88)
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Neuhauser 1,535 577 217 3,333
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Stitzel 1,464 548 210 3,183
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Ms. Verville 1,311(89) 541(90) 207(91) 3,206(92)
-------------------- ------------- ------------- ------------- -------------
<PAGE>
-------------------- ------------- ------------- ------------- -------------
LIBERTY MUTUAL FUND
LNGCF LNJOF LFSF LNEF
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Fiscal Year End
8/31/00 8/31/00 8/31/00 8/31/00
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Trustee:
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Bleasdale $773(93) $811(94) $3,250(95) $361(96)
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Ms. Collins 700 733 2,949 321
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Grinnell 736 772 2,638 339
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Lowry 722 757 3,035 336
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Macera 705 740 2,968 326
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Mayer 729 763 3,074 334
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Moody 736(97) 776(98) 3,093(99) 354(100)
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Neuhauser 875 775 3,105 341
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Mr. Stitzel 705 740 2,969 326
-------------------- ------------- ------------- ------------- -------------
-------------------- ------------- ------------- ------------- -------------
Ms. Verville 709(101) 744(102) 2,990(103) 326(104)
-------------------- ------------- ------------- ------------- -------------
<PAGE>
------------------- ---------------------------------------
TOTAL COMPENSATION PAID FROM LIBERTY
FUNDS COMPLEX TO THE BOARD OF
LIBERTY MUTUAL TRUSTEES FOR THE CALENDAR YEAR ENDED*
FUND
------------------- ---------------------------------------
------------------- ---------------------------------------
Fiscal Year End
12/31/99
------------------- ---------------------------------------
------------------- ---------------------------------------
Trustee:
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Bleasdale $103,000 (105)
------------------- ---------------------------------------
------------------- ---------------------------------------
Ms. Collins 96,000
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Grinnell 100,000
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Lowry 97,000
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Macera 95,000
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Mayer 101,000
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Moody 91,000 (106)
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Neuhauser 101,252
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Stitzel 95,000
------------------- ---------------------------------------
------------------- ---------------------------------------
Ms. Verville 96,000 (107)
------------------- ---------------------------------------
<PAGE>
The following table sets forth the compensation paid to Messrs. Birnbaum,
Grinnell, Lowry, Mayer and Neuhauser in their capacities as Trustees or
Directors of the Liberty All-Star Equity Fund, the Liberty All-Star Growth Fund,
Inc. and Liberty Funds Trust IX (together, Liberty All-Star Funds) for service
during the calendar year ended December 31, 1999:
---------------------- -----------------------------------------------------
Total Compensation Paid To The Trustees From the
Liberty All-Star Funds For The Calendar Year Ended
Trustee December 31, 1999108
---------------------- -----------------------------------------------------
---------------------- -----------------------------------------------------
Robert J. Birnbaum $25,000
---------------------- -----------------------------------------------------
---------------------- -----------------------------------------------------
James E. Grinnell 25,000
---------------------- -----------------------------------------------------
---------------------- -----------------------------------------------------
Richard W. Lowry 25,000
---------------------- -----------------------------------------------------
---------------------- -----------------------------------------------------
William E. Mayer 25,000
---------------------- -----------------------------------------------------
---------------------- -----------------------------------------------------
John J. Neuhauser 25,000
---------------------- -----------------------------------------------------
1 The Liberty Mutual Funds do not currently provide pension or retirement
plan benefits to the Trustees.
2 Includes $234 payable in later years as deferred compensation.
3 Includes $593 payable in later years as deferred compensation.
4 Includes $276 payable in later years as deferred compensation.
5 Includes $636 payable in later years as deferred compensation.
6 Total compensation of $403 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
7 Total compensation of $993 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
8 Total compensation of $472 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
9 Total compensation of $1,094 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
10 Total compensation of $422 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
11 Total compensation of $1,066 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
12 Total compensation of $503 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
13 Total compensation of $1,316 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
14 Includes $511 payable in later years as deferred compensation.
15 Includes $291 payable in later years as deferred compensation.
16 Includes $1,697 payable in later years as deferred compensation.
17 Includes $409 payable in later years as deferred compensation.
18 Total compensation of $879 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
19 Total compensation of $497 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
20 Total compensation of $2,906 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
21 Total compensation of $694 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
22 Total compensation of $1,055 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
23 Total compensation of $530 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
24 Total compensation of $3,429 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
25 Total compensation of $768 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
26 Since the Fund has not completed its first full fiscal year, compensation
is estimated based upon future payments to be made and upon estimated
relative Fund net assets.
27 Includes $3,508 payable in later years as deferred compensation.
28 Includes $232 payable in later years as deferred compensation.
29 Total compensation of $6,007 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
30 Total compensation of $451 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
31 Total compensation of $7,088 for the fiscal year ended October 31, 1999,
will be payable in later years as deferred compensation.
32 Total compensation of $451 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
33 Includes $73 payable in later years as deferred compensation.
34 Includes $5,487 payable in later years as deferred compensation.
35 Includes $675 payable in later years as deferred compensation.
36 Includes $670 payable in later years as deferred compensation.
37 Total compensation of $129 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
38 Total compensation of $9,384 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
39 Total compensation of $1,160 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
40 Total compensation of $1,153 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
41 Total compensation of $144 for the fiscal year ended October 31, 1999, will
be payable in later years as deferred compensation.
42 Total compensation of $9,869 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
43 Total compensation of $1,222 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
44 Total compensation of $1,214 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
45 Includes $2,405 payable in later years as deferred compensation.
46 Includes $2,573 payable in later years as deferred compensation.
47 Includes $594 payable in later years as deferred compensation.
48 Includes $2,832 payable in later years as deferred compensation.
49 Total compensation of $4,112 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
50 Total compensation of $4,485 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
51 Total compensation of $1,022 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
52 Total compensation of $5,851 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
53 Total compensation of $4,328 for the fiscal year ended November 30, 1999,
will be payable in later years as deferred compensation.
54 Total compensation of $4,710 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
55 Total compensation of $1,076 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
56 Total compensation of $6,301 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
57 Includes $1,820 payable in later years as deferred compensation.
58 Includes $903 payable in later years as deferred compensation.
59 Includes $595 payable in later years as deferred compensation.
60 Includes $709 payable in later years as deferred compensation.
61 Total compensation of $3,198 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
62 Total compensation of $1,568 for the fiscal year ended January 31, 2000,
will be payable in later years as deferred compensation.
63 Total compensation of $1,035 for the fiscal year ended January 31, 2000,
will be payable in later years as deferred compensation.
64 Total compensation of $1,233 for the fiscal year ended January 31, 2000,
will be payable in later years as deferred compensation.
65 Total compensation of $3,372 for the fiscal year ended December 31, 1999,
will be payable in later years as deferred compensation.
66 Total compensation of $1,661 for the fiscal year ended January 31, 2000,
will be payable in later years as deferred compensation.
67 Total compensation of $1,095 for the fiscal year ended January 31, 2000,
will be payable in later years as deferred compensation.
68 Total compensation of $1,305 for the fiscal year ended January 31, 2000,
will be payable in later years as deferred compensation.
69 Includes $479 payable in later years as deferred compensation.
70 Includes $463 payable in later years as deferred compensation.
71 Includes $2,576 payable in later years as deferred compensation.
72 Includes $290 payable in later years as deferred compensation.
73 Total compensation of $836 for the fiscal year ended January 31, 2000, will
be payable in later years as deferred compensation.
74 Total compensation of $807 for the fiscal year ended January 31, 2000, will
be payable in later years as deferred compensation.
75 Total compensation of $5,029 for the fiscal year ended June 30, 2000, will
be payable in later years as deferred compensation.
76 Total compensation of $561 for the fiscal year ended June 30, 2000, will be
payable in later years as deferred compensation.
77 Total compensation of $885 for the fiscal year ended January 31, 2000, will
be payable in later years as deferred compensation.
78 Total compensation of $855 for the fiscal year ended January 31, 2000, will
be payable in later years as deferred compensation.
79 Total compensation of $4,748 for the fiscal year ended June 30, 2000, will
be payable in later years as deferred compensation.
80 Total compensation of $528 for the fiscal year ended June 30, 2000, will be
payable in later years as deferred compensation.
81 Includes $792 payable in later years as deferred compensation.
82 Includes $300 payable in later years as deferred compensation.
83 Includes $77 payable in later years as deferred compensation.
84 Includes $1,752 payable in later years as deferred compensation.
85 Total compensation of $1,532 for the fiscal year ended June 30, 2000, will
be payable in later years as deferred compensation.
86 Total compensation of $573 for the fiscal year ended June 30, 2000, will be
payable in later years as deferred compensation.
87 Total compensation of $233 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
88 Total compensation of $3,312 for the fiscal year ended August 31, 2000,
will be payable in later years as deferred compensation.
89 Total compensation of $1,311 for the fiscal year ended June 30, 2000, will
be payable in later years as deferred compensation.
90 Total compensation of $541 for the fiscal year ended June 30, 2000, will be
payable in later years as deferred compensation.
91 Total compensation of $207 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
92 Total compensation of $3,206 for the fiscal year ended August 31, 2000,
will be payable in later years as deferred compensation.
93 Includes $384 payable in later years as deferred compensation.
94 Includes $394 payable in later years as deferred compensation.
95 Includes $1,629 payable in later years as deferred compensation.
96 Includes $162 payable in later years as deferred compensation.
97 Total compensation of $736 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
98 Total compensation of $776 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
99 Total compensation of $3,093 for the fiscal year ended August 31, 2000,
will be payable in later years as deferred compensation.
100 Total compensation of $354 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
101 Total compensation of $709 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
102 Total compensation of $744 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
103 Total compensation of $2,990 for the fiscal year ended August 31, 2000,
will be payable in later years as deferred compensation.
104 Total compensation of $326 for the fiscal year ended August 31, 2000, will
be payable in later years as deferred compensation.
105 Includes $52,000 payable in later years as deferred compensation.
106 Total compensation of $91,000 for the calendar year ended December 31,
1999, will be payable in later years as deferred compensation.
107 Total compensation of $96,000 for the calendar year ended December 31,
1999, will be payable in later years as deferred compensation.
* Includes compensation from Liberty Tax-Managed Growth Fund and Liberty
Tax-Managed Growth Fund II, two series of Liberty Funds Trust I that will
elect trustees of the Trust in a separate proxy statement.
108 The Liberty All-Star Funds are advised by Liberty Asset Management Company
(LAMCO). LAMCO is an indirect wholly-owned subsidiary of Liberty Financial
Companies, Inc. (an intermediate parent of the Colonial).
<PAGE>
Appendix A
FORM OF MANAGEMENT AGREEMENT
AGREEMENT dated as of [ ], 2000, between LIBERTY FUNDS TRUST III, a
Massachusetts business trust (Trust), with respect to [NAME OF FUND] (Fund), and
NEWPORT FUND MANAGEMENT, INC., a Virginia corporation (Adviser).
In consideration of the promises and covenants herein, the parties agree as
follows:
1. The Adviser will manage the investment of the assets of the Fund in
accordance with its prospectus and statement of additional information and
will perform the other services herein set forth, subject to the
supervision of the Board of Trustees of the Trust. The Adviser may delegate
its investment responsibilities to a sub-adviser.
2. In carrying out its investment management obligations, the Adviser shall:
(a) evaluate such economic, statistical and financial information and
undertake such investment research as it shall believe advisable; (b)
purchase and sell securities and other investments for the Fund in
accordance with the procedures described in its prospectus and
statement of additional information; and (c) report results to the
Board of Trustees of the Trust.
3. The Adviser shall furnish at its expense the following:
(a) office space, supplies, facilities and equipment; (b) executive and
other personnel for managing the affairs of the Fund (including
preparing financial information of the Fund and reports and tax
returns required to be filed with public authorities, but exclusive of
those related to custodial, transfer, dividend and plan agency
services, determination of net asset value and maintenance of records
required by Section 31(a) of the Investment Company Act of 1940, as
amended, and the rules thereunder (1940 Act)); and (c) compensation of
Trustees who are directors , officers, partners or employees of the
Adviser or its affiliated persons (other than a regulated investment
company).
4. The Adviser shall be free to render similar services to others so long as
its services hereunder are not impaired thereby.
5. The Fund shall pay the Adviser monthly a fee at the annual rate of [ %] of
the average daily net assets of the Fund.
6. If the operating expenses of the Fund for any fiscal year exceed the most
restrictive applicable expense limitation for any state in which shares are
sold, the Adviser's fee shall be reduced by the excess but not to less than
zero. Operating expenses shall not include brokerage, interest, taxes,
deferred organization expenses, Rule 12b-1 distribution fees, service fees
and extraordinary expenses, if any. The Adviser may waive its compensation
(and bear expenses of the Fund) to the extent that expenses of the Fund
exceed any expense limitation the Adviser declares to be effective.
7. This Agreement shall become effective as of the date of its execution, and
(a) unless otherwise terminated, shall continue until June 30, 2002 and
from year to year thereafter so long as approved annually in
accordance with the 1940 Act; (b) may be terminated without penalty on
sixty days' written notice to the Adviser either by vote of the Board
of Trustees of the Trust or by vote of a majority of the outstanding
shares of the Fund; (c) shall automatically terminate in the event of
its assignment; and (d) may be terminated without penalty by the
Adviser on sixty days' written notice to the Trust.
8. This Agreement may be amended in accordance with the 1940 Act.
<PAGE>
9. For the purpose of the Agreement, the terms "vote of a majority of the
outstanding shares", "affiliated person" and "assignment" shall have their
respective meanings defined in the 1940 Act and exemptions and
interpretations issued by the Securities and Exchange Commission under the
1940 Act.
10. In the absence of willful misfeasance, bad faith or gross negligence on the
part of the Adviser, or reckless disregard of its obligations and duties
hereunder, the Adviser shall not be subject to any liability to the Trust
or the Fund, to any shareholder of the Trust or the Fund or to any other
person, firm or organization, for any act or omission in the course of, or
connected with, rendering services hereunder.
LIBERTY FUNDS TRUST III on behalf of
[name of fund]
By:
Name:
Title:
NEWPORT FUND MANAGEMENT, INC.
By:
Name:
Title:
A copy of the document establishing the Trust is filed with the Secretary of The
Commonwealth of Massachusetts. This Agreement is executed by officers not as
individuals and is not binding upon any of the Trustees, officers or
shareholders of the Trust individually but only upon the assets of the Fund.
<PAGE>
Appendix B
SUB-ADVISORY AGREEMENT
SUB-ADVISORY AGREEMENT, dated this [ ] day of [ ], by and between
COLONIAL MANAGEMENT ASSOCIATES, INC. a Massachusetts corporation (the
"Adviser"), UNIBANK SECURITIES, INC., d/b/a "UNIBANK INVESTMENT MANAGEMENT," a
company incorporated under the laws of the State of Delaware (the "Sub-Adviser")
and LIBERTY FUNDS TRUST III (the "Trust"), on behalf of THE LIBERTY FUND (the
"Fund").
WITNESSETH:
WHEREAS, the Adviser provides the Fund, a series of the Trust, an
open-end investment company registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), business services pursuant to the terms and
conditions of an investment advisory agreement dated March 27, 1995, as amended
October 1, 1997 (the "Advisory Agreement"), between the Adviser and the Trust,
on behalf of the Fund; and
WHEREAS, the Sub-Adviser is willing to provide services to the Adviser
on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
of the parties hereto as herein set forth, the parties covenant and agree as
follows:
1. Duties of the Sub-Adviser. Subject to the supervision of the
Trustees of the Trust and the Adviser, the Sub-Adviser will: (a) manage the
investment of a portion of the assets of the Fund, as determined by the Adviser,
in accordance with the Fund's investment objectives, policies and limitations as
stated in the Fund's then current Prospectus (the "Prospectus") and Statement of
Additional Information (the "Statement"), and in compliance with the 1940 Act
and the rules, regulations and orders thereunder; (b) place purchase and sale
orders for portfolio transactions for the Fund; (c) evaluate such economic,
statistical and financial information and undertake such investment research as
it shall believe advisable; (d) employ professional portfolio managers to
provide research services to the Fund; and (e) report results to the Board of
Trustees of the Trust. The Adviser agrees to provide the Sub-Adviser with such
assistance as may be reasonably requested by the Sub-Adviser in connection with
its activities under this Agreement, including, without limitation, information
concerning the Fund, its funds available, or to become available, for investment
and generally as to the conditions of the Fund's affairs.
Should the Trustees of the Trust or the Adviser at any time make any
determination as to investment policy and notify the Sub-Adviser thereof in
writing, the Sub-Adviser shall be bound by such determination for the period, if
any, specified in such notice or until notified that such determination has been
revoked. Further, the Adviser or the Trustees of the Trust may at any time, upon
written notice to the Sub-Adviser, suspend or restrict the right of the
Sub-Adviser to determine what assets of the Fund shall be purchased or sold and
what portion, if any, of the Fund's assets shall be held uninvested. It is
understood that the Adviser undertakes to discuss with the Sub-Adviser any such
determinations of investment policy and any such suspension or restrictions on
the right of the Sub-Adviser to determine what assets of the Fund shall be
purchased or sold or held uninvested, prior to the implementation thereof.
2. Certain Information to the Sub-Adviser. Copies of the Prospectus and
the Statement have been delivered to the Sub-Adviser. The Adviser agrees to
notify the Sub-Adviser of each change in the investment policies of the Fund and
to provide to the Sub-Adviser as promptly as practicable copies of all
amendments and supplements to the Prospectus and the Statement. In addition, the
Adviser will promptly provide the Sub-Adviser with any procedures applicable to
the Sub-Adviser adopted from time to time by the Trustees of the Trust and
agrees to provide promptly to the Sub-Adviser copies of all amendments thereto.
3. Execution of Certain Documents. Subject to any other written
instructions of the Adviser and the Trustees of the Trust, the Sub-Adviser is
hereby appointed the Adviser's and the Trust's agent and attorney-in-fact to
execute account documentation, agreements, contracts and other documents as the
Sub-Adviser shall be requested by brokers, dealers, counterparties and other
persons in connection with its management of the assets of the Fund.
4. Reports. The Sub-Adviser shall furnish to the Trustees of the Trust
or the Adviser, or both, as may be appropriate, quarterly reports of its
activities on behalf of the Fund, as required by applicable law or as otherwise
requested from time to time by the Trustees of the Trust or the Adviser, and
such additional information, reports, evaluations, analyses and opinions as the
Trustees of the Trust or the Adviser, as appropriate, may request from time to
time.
5. Compensation of the Sub-Adviser. For the services to be rendered by
the Sub-Adviser under this Agreement, the Adviser shall pay to the Sub-Adviser
compensation, computed and paid monthly in arrears in U.S. dollars, at an annual
rate of 0.40% of the average daily net asset value of the portion of the Fund's
assets under management by the Sub-Adviser. If the Sub-Adviser shall serve for
less than the whole of any month, the compensation payable to the Sub-Adviser
with respect to the Fund will be prorated. The Sub-Adviser will pay its expenses
incurred in performing its duties under this Agreement. Neither the Trust nor
the Fund shall be liable to the Sub-Adviser for the compensation of the
Sub-Adviser. For the purpose of determining fees payable to the Sub-Adviser, the
value of the Fund's net assets shall be computed at the times and in the manner
specified in the Prospectus and/or Statement.
6. Limitation of Liability of the Sub-Adviser. The Sub-Adviser shall
not be liable for any error of judgment or mistake of law or for any loss
arising out of any investment or for any act or omission in the execution and
management of the Fund, except for willful misfeasance, bad faith or gross
negligence in the performance of its duties and obligations hereunder. The
Trust, on behalf of the Fund, may enforce any obligations of the Sub-Adviser
under this Agreement and may recover directly from the Sub-Adviser for any
liability it may have to the Fund.
7. Activities of the Sub-Adviser. The services of the Sub-Adviser to
the Fund are not deemed to be exclusive, the Sub-Adviser being free to render
investment advisory and/or other services to others.
8. Covenants of the Sub-Adviser. The Sub-Adviser agrees that it (a)
will not deal with itself, "affiliated persons" of the Sub-Adviser, the Trustees
of the Trust or the Fund's distributor, as principals, agents, brokers or
dealers in making purchases or sales of securities or other property for the
account of the Fund, except as permitted by the 1940 Act and the rules,
regulations and orders thereunder and subject to the prior written approval of
the Adviser, and except in accordance with Rule 17e-1 procedures as approved by
the Trustees from time to time and (b) will comply with all other provisions of
the then-current Prospectus and Statement relative to the Sub-Adviser and its
trustees, officers, employees and affiliates.
9. Representations, Warranties and Additional Agreements of the
Sub-Adviser. The Sub-Adviser represents, warrants and agrees that:
(a) It (i) is registered as an investment adviser under the U.S.
Investment Advisers Act of 1940 (the "Advisers Act"), is authorized to undertake
investment business in the U.S. and is registered under the laws of any
jurisdiction in which the Sub-Adviser is required to be registered as an
investment adviser in order to perform its obligations under this Agreement, and
will continue to be so registered for so long as this Agreement remains in
effect; (ii) is not prohibited by the 1940 Act or the Advisers Act from
performing the services contemplated by this Agreement; (iii) has met, and will
continue to meet for so long as this Agreement remains in effect, any other
applicable Federal or State requirements, or the applicable requirements of any
regulatory or industry self-regulatory agency, necessary to be met in order to
perform the services contemplated by this Agreement; (iv) has the authority to
enter into and perform the services contemplated by this Agreement; (v) will
immediately notify the Adviser in writing of the occurrence of any event that
would disqualify the Sub-Adviser from serving as an investment adviser of an
investment company pursuant to Section 9(a) of the 1940 Act or otherwise; and
(vi) will immediately notify the Adviser in writing of any change of control of
the Sub-Adviser or any parent of the Sub-Adviser resulting in an "assignment" of
this Agreement.
(b) It will maintain, keep current and preserve on behalf of the Fund,
in the manner and for the periods of time required or permitted by the 1940 Act
and the rules, regulations and orders thereunder and the Advisers Act and the
rules, regulations and orders thereunder, records relating to investment
transactions made by the Sub-Adviser for the Fund as may be reasonably requested
by the Adviser or the Fund from time to time. The Sub-Adviser agrees that such
records are the property of the Fund, and will be surrendered to the Fund
promptly upon request.
(c) The Sub-Adviser has adopted a written code of ethics complying with
the requirements of Rule 17j-1 under the 1940 Act and, if it has not already
done so, will provide the Adviser and the Trust with a copy of such code of
ethics, and upon any amendment to such code of ethics, promptly provide such
amendment. At least annually the Sub-Adviser will provide the Trust and the
Adviser with a certificate signed by the chief compliance officer (or the person
performing such function) of the Sub-Adviser certifying, to the best of his or
her knowledge, compliance with the code of ethics during the immediately
preceding twelve (12) month period, including any material violations of or
amendments to the code of ethics or the administration thereof.
(d) It has provided the Adviser and the Trust with a copy of its Form
ADV as most recently filed with the Securities and Exchange Commission (the
"SEC") and will, promptly after filing any amendment to its Form ADV with the
SEC, furnish a copy of such amendment to the Adviser and the Trust.
10. Duration and Termination of this Agreement. This Agreement shall
become effective on the date first above written and shall govern the relations
between the parties hereto thereafter, and shall remain in force until June 30,
2002 and from year to year thereafter but only so long as its continuance is
"specifically approved at least annually" by the Board of Trustees of the Trust
or by "vote of a majority of the outstanding voting securities" of the Fund.
This Agreement may be terminated at any time without penalty on sixty days'
written notice to the Sub-Adviser by vote of the Board of Trustees of the Trust,
by "vote of a majority of the outstanding voting securities" of the Fund, or by
the Adviser. This Agreement also may be terminated at any time without penalty
by the Sub-Advisor on ninety days' written notice to the Adviser and Trust. This
Agreement shall automatically terminate in the event of its "assignment" or in
the event that the Advisory Agreement shall have terminated for any reason.
11. Amendments to this Agreement. This Agreement may be amended
in accordance with the 1940 Act.
12. Certain Definitions. The terms "specifically approved at least
annually", "vote of a majority of the outstanding voting securities",
"assignment", "control", "affiliated persons" and "interested person", when used
in this Agreement, shall have the respective meanings specified, and shall be
construed in a manner consistent with, the 1940 Act and the rules, regulations
and orders thereunder, subject, however, to such exemptions as may be granted by
the SEC under the 1940 Act.
13. Survival of Representations and Warranties; Duty to Update
Information. All representations and warranties made by the Sub-Adviser pursuant
to Section 9 hereof shall survive for the duration of this Agreement and the
Sub-Adviser shall immediately notify, but in no event later than five (5)
business days, the Adviser in writing upon becoming aware that any of the
foregoing representations and warranties are no longer true.
14. Miscellaneous. This Agreement shall be governed by and construed in
accordance with the internal laws of The Commonwealth of Massachusetts. All
notices provided for by this Agreement shall be in writing and shall be deemed
given when received, against appropriate receipt, by the Sub-Adviser's Secretary
in the case of the Sub-Adviser, the Adviser's General Counsel in the case of the
Adviser, and the Trust's Secretary in the case of the Fund, or such other person
as a party shall designate by notice to the other parties. This Agreement
constitutes the entire agreement among the parties hereto and supersedes any
prior agreement among the parties relating to the subject matter hereof. The
section headings of this Agreement are for convenience of reference and do not
constitute a part hereof.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered in their names and on their behalf by the undersigned,
thereunto duly authorized, and their respective seals to be hereto affixed, all
as of the day and year first written above.
COLONIAL MANAGEMENT ASSOCIATES, INC.
By:
-------------------------------------
Name:
Title:
UNIBANK SECURITIES, INC.
By:
--------------------------------------
Name:
Title:
LIBERTY FUNDS TRUST III, on behalf of The
Liberty Fund
By:
--------------------------------------
Name:
Title:
--------
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
Liberty Funds Services, Inc.
Liberty Income Fund
Liberty Strategic Income Fund
Liberty High Yield Securities Fund
Liberty Intermediate Government Fund
Liberty Federal Securities Fund
Liberty Ohio Tax-Exempt Fund
Liberty Connecticut Tax-Exempt Fund
Liberty New York Tax-Exempt Fund
Liberty California Tax-Exempt Fund
Liberty Tax-Exempt Insured Fund
Liberty Massachusetts Tax-Exempt Fund
Liberty Tax-Exempt Fund
Liberty High Yield Municipal Fund
Liberty Select Value Fund
Liberty Growth & Income Fund
Liberty Utilities Fund
Liberty Newport Japan Opportunities Fund
Liberty Newport Greater China Fund
Liberty Newport Tiger Fund
Liberty Newport Asia Pacific Fund
Liberty Newport Europe Fund
Liberty Tax-Managed Value Fund
Liberty Tax-Managed Aggressive Growth Fund
Liberty Special Fund
Liberty Real Estate Fund
Liberty Contrarian Equity Fund
Liberty Contrarian Income Fund
Liberty Contrarian Fund
Liberty Counselor Income Portfolio
Liberty Counselor Balanced Portfolio
Liberty Counselor Growth Portfolio
Liberty Floating Rate Advantage Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR Item 1 below. This proxy will be voted
in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Item:
1. Proposal to elect eleven Trustees (Item 1 of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
__ __ __
|__| |__| |__|
MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ---------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
Liberty Funds Services, Inc.
THE LIBERTY FUND
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR Item 1 below. This proxy will be voted
in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Item:
1. Proposal to elect eleven Trustees (Item 1 of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
__ __ __
|__| |__| |__|
2. To approve or disapprove a sub-advisory agreement with
UnibankSecurities, Inc. (Item 4 of the Notice).
For Against Abstain
__ __ __
|__| |__| |__|
MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
Liberty Funds Services, Inc.
Liberty Newport Global Utilities Fund
Liberty Newport International Equity Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR Item 1 below. This proxy will be voted
in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Item:
1. Proposal to elect eleven Trustees (Item 1 of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
__ __ __
|__| |__| |__|
2. To approve or disapprove a new portfolio management agreement with
Newport Fund Management (Item 3 of the Notice).
For Against Abstain
__ __ __
|__| |__| |__|
MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
Liberty Funds Services, Inc.
Liberty Money Market Fund
Liberty Municipal Money Market Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR Item 1 below. This proxy will be voted
in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Item:
1. Proposal to elect eleven Trustees (Item 1 of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
__ __ __
|__| |__| |__|
2. Proposal to elect eleven Trustees of the SR&F Base Trust
(Item 5 of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
__ __ __
|__| |__| |__|
MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
________________________________________
________________________________________
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
_________________________ ______________________
Shareholder sign here Co-owner sign here
TWO CONVENIENT WAYS TO VOTE YOUR PROXY
PROXY VOTING--QUICK AND CONVENIENT
The enclosed proxy statement provides details on important issues affecting your
Liberty and Stein Roe Funds. The Board of Trustees recommends that you vote for
all proposals.
We are offering two ways to vote: by internet or fax. These methods may be
quicker and more convenient than the traditional method of mailing back your
proxy card. Please follow the simple instructions on this proxy insert.
If you are voting by internet or fax, you SHOULD NOT mail your proxy card.
YOUR PROXY VOTE IS IMPORTANT!
<TABLE>
<CAPTION>
Vote by Internet: Vote by Fax:
<S> <C>
Read the proxy statement and have your proxy card Read the proxy statement.
available.
Visit our Web site (www.libertyfunds.com or Fax your proxy card to 1-800-733-1885.
www.steinroe.com) and go to "Proxy Voting."
When you are ready to vote, click on the [blue]
"Vote My Proxy" link.
Enter the 14-digit Control Number from your proxy
card.
Follow the instructions provided on the site.
</TABLE>
<PAGE>
CONVENIENT WAY TO VOTE YOUR PROXY
PROXY VOTING--QUICK AND CONVENIENT
The enclosed proxy statement provides details on important issues affecting your
Liberty and Stein Roe Funds. The Board of Trustees recommends that you vote for
all proposals.
We are offering another way to vote: by internet. This method may be quicker and
more convenient than the traditional method of mailing back your proxy card.
Please follow the simple instructions on this proxy insert.
If you are voting by internet, you SHOULD NOT mail your proxy card.
YOUR PROXY VOTE IS IMPORTANT!
Vote by Internet:
Read the proxy statement and have your proxy card available.
Visit our Web site (www.libertyfunds.com or www.steinroe.com) and go to "Proxy
Voting."
When you are ready to vote, click on the [red] "Vote My Proxy" link.
Enter the 12-digit Control Number from your proxy card.
Follow the instructions provided on the site.
