THE LIBERTY FUNDS
THE LIBERTY NEWPORT FUNDS
LIBERTY TAX-MANAGED GROWTH FUND
LIBERTY TAX-MANAGED VALUE FUND
LIBERTY TAX-MANAGED GROWTH FUND II
LIBERTY FLOATING RATE ADVANTAGE FUND
LIBERTY INVESTMENT GRADE BOND FUND
RULE 12b-1 DISTRIBUTION PLAN
AUGUST 1, 2000
Each Massachusetts Business Trust (Trust) designated in Appendix 1 as
revised from time to time, acting severally, adopts the following distribution
plan (the Plan) pursuant to Rule 12b-1 (the Rule) under the Investment Company
Act of 1940 (Act) on behalf of each Fund in that Trust.
I. A. PLANS APPLYING TO CLASS A, B AND C SHARES
Except as indicated below, each Fund having Class A, B or C Shares shall
pay a service fee at the annual rate of 0.25% of the net assets of its Class A,
B and C Shares, and a distribution fee at the annual rate of 0.75% of the
average daily net assets of its Class B and C Shares.
LIBERTY MONEY MARKET FUND AND LIBERTY TAX-EXEMPT MONEY MARKET FUND do not
pay a service fee on Class A shares.
LIBERTY CALIFORNIA TAX-EXEMPT FUND, LIBERTY CONNECTICUT TAX-EXEMPT FUND,
LIBERTY FLORIDA TAX-EXEMPT FUND, LIBERTY MASSACHUSETTS TAX-EXEMPT FUND, LIBERTY
MICHIGAN TAX-EXEMPT FUND, LIBERTY MINNESOTA TAX-EXEMPT FUND, LIBERTY NEW YORK
TAX-EXEMPT FUND, LIBERTY NORTH CAROLINA TAX-EXEMPT FUND AND LIBERTY OHIO
TAX-EXEMPT FUND each pays a service fee at the annual rates of:
(A) 0.10% of the net assets attributable to its outstanding Class A and
Class B Shares issued prior to December 1, 1994, and
(B) 0.25% of the net assets attributable to its outstanding Class A, B and
C Shares issued thereafter.
THE LIBERTY FUND AND LIBERTY SELECT VALUE FUND each pays a service fee at
the annual rates of:
(A) 0.15% of the net assets attributable to its outstanding Class A and B
Shares issued prior to April 1, 1989, and
(B) 0.25% of the net assets attributable to its outstanding Class A, B and
C Shares issued thereafter.
LIBERTY STRATEGIC INCOME FUND pays a service fee at the annual rates of:
(A) 0.15% of its net assets attributable to its outstanding Class A
and B Shares issued prior to January 1, 1993, and
(B) 0.25% of the net assets attributable to its outstanding Class A, B and
C Shares issued thereafter.
<PAGE>
LIBERTY SHORT TERM GOVERNMENT FUND AND LIBERTY INTERMEDIATE TAX-EXEMPT
FUND each pays a service fee at the annual rate of 0.20% of the net assets of
its Class A, B and C Shares and a distribution fee at an annual rate of 0.65% of
the average daily net assets of its Class B and C Shares.
LIBERTY STRATEGIC BALANCED FUND, LIBERTY NEWPORT EUROPE FUND AND LIBERTY
FLOATING RATE ADVANTAGE FUND each pays an annual distribution fee not exceeding
0.10% of the average net assets of its Class A Shares.
LIBERTY FLOATING RATE ADVANTAGE FUND AND LIBERTY INVESTMENT GRADE BOND
FUND each pays an annual distribution fee not exceeding 0.45% of the average net
assets of its Class B Shares and 0.60% of the average net assets of its Class C
Shares.
LIBERTY TAX-MANAGED VALUE FUND AND LIBERTY TAX-MANAGED AGGRESSIVE GROWTH
FUND each pays an annual distribution fee not exceeding 0.05% of the average net
assets of its Class A Shares.
B. PLANS APPLYING TO OTHER CLASSES OF SHARES
LIBERTY TAX-MANAGED GROWTH FUND:
CLASS E SHARES. Class E shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.10% of the average daily net assets of the Class.
CLASS F SHARES. Class F Shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.75% of the average daily net assets of the Class.
LIBERTY STRATEGIC INCOME FUND AND LIBERTY NEWPORT JAPAN OPPORTUNITIES FUND:
CLASS J SHARES. Class J Shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.35% of the average daily net assets of the Class for Colonial Strategic
Income Fund and a distribution fee at the annual rate of 0.25% of the average
daily net assets of the Class for Newport Japan Opportunities Fund.
LIBERTY NEWPORT JAPAN OPPORTUNITIES FUND:
CLASS N SHARES. Class N Shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.75% of the average daily net assets of the Class.
THE FOLLOWING FUNDS DO NOT HAVE 12b-1 PLANS FOR THE SPECIFIED CLASSES OF SHARES:
LIBERTY CONTRARIAN SMALL-CAP FUND, LIBERTY CONTRARIAN EQUITY FUND, LIBERTY
CONTRARIAN BALANCED FUND, LIBERTY CONTRARIAN INCOME FUND:
Class I Shares.
<PAGE>
LIBERTY NEWPORT TIGER FUND: Class T and Class Z Shares.
LIBERTY STRATEGIC INCOME FUND, LIBERTY INCOME FUND, LIBERTY INTERMEDIATE
GOVERNMENT FUND, LIBERTY FEDERAL SECURITIES FUND, LIBERTY NEWPORT GREATER CHINA
FUND, LIBERTY NEWPORT INTERNATIONAL EQUITY FUND, LIBERTY REAL ESTATE FUND,
LIBERTY COUNSELOR INCOME PORTFOLIO, LIBERTY COUNSELOR BALANCED PORTFOLIO,
LIBERTY COUNSELOR GROWTH PORTFOLIO, LIBERTY NEWPORT ASIA PACIFIC FUND, LIBERTY
SMALL-CAP VALUE FUND, LIBERTY GROWTH & INCOME FUND, THE LIBERTY FUND, LIBERTY
HIGH YIELD SECURITIES FUND, LIBERTY UTILITIES FUND, LIBERTY VALUE FUND, LIBERTY
SELECT VALUE FUND, LIBERTY TAX-MANAGED GROWTH FUND, LIBERTY NEWPORT JAPAN
OPPORTUNITIES FUND, LIBERTY TAX-MANAGED VALUE FUND, LIBERTY NEWPORT EUROPE FUND,
LIBERTY FLOATING RATE ADVANTAGE FUND, LIBERTY TAX-MANAGED GROWTH FUND II,
LIBERTY INVESTMENT GRADE BOND FUND AND LIBERTY TAX-MANAGED AGGRESSIVE GROWTH
FUND: Class Z Shares.
II. PAYMENTS OF FEES UNDER THE PLAN
Each Fund shall make all payments of service and distribution fees under
this Plan to Liberty Funds Distributor, Inc. (LFDI) monthly, on the 20th day of
each month or, if such day is not a business day, on the next business day
thereafter. No Fund shall pay, nor shall LFDI be entitled to receive, any amount
under this Plan if such payment would result in LFDI receiving amounts in excess
of those permitted by applicable law or by rules of the National Association of
Securities is Dealers, Inc.
III. USE OF FEES.
LFDI may pay part or all of the service and distribution fees it receives
from a Fund as commissions to financial service firms that sell Fund Shares or
as reimbursements to financial service firms or other entities that provide
shareholder services to record or beneficial owners of shares (including third
party administrators of qualified plans). This provision does not obligate LFDI
to make any such payments nor limit the use that LFDI may make of the fees it
receives.
IV. REPORTING
LFDI shall provide to the Trust's Trustees, and the Trustees shall review,
at least quarterly, reports setting forth all Plan expenditures, and the
purposes for those expenditures. Amounts payable under this paragraph are
subject to any limitations on such amounts prescribed by applicable laws or
rules.
V. OTHER PAYMENTS AUTHORIZED
Payments by the Trust to LFDI and its affiliates (including Colonial
Management Associates, Inc.) other than as set forth in Section I which may be
indirect financing of distribution costs are authorized by this Plan.
VI. CONTINUATION; AMENDMENT; TERMINATION
This Plan shall continue in effect with respect to a Class of Shares only
so long as specifically approved for that Class at least annually as provided in
the Rule. The Plan may not be amended to increase materially the service fee or
distribution fee with
<PAGE>
respect to a Class of Shares without such shareholder approval as is required by
the Rule and any applicable orders of the Securities and Exchange Commission,
and all material amendments of the Plan must be approved in the manner described
in the Rule. The Plan may be terminated with respect to any Class of Shares at
any time as provided in the Rule without payment of any penalty. The continuance
of the Plan shall be effective only if the selection and nomination of the
Trust's Trustees who are not interested persons (as defined under the Act) of
the Trust is effected by such non-interested Trustees as required by the Rule.
Approved by the Trustees as of the date set forth above:
By: _____________________________________
Nancy L. Conlin, Secretary For Each Trust
<PAGE>
APPENDIX 1 TO RULE 12B-1 DISTRIBUTION PLAN
<TABLE>
<CAPTION>
Trust Series
----- ------
<S> <C>
Liberty Funds Trust I
Liberty High Yield Securities Fund
Liberty Income Fund
Liberty Strategic Income Fund
Liberty Tax-Managed Growth Fund
Liberty Tax-Managed Value Fund
Liberty Tax-Managed Growth Fund II
Liberty Tax-Managed Aggressive Growth Fund
Liberty Funds Trust II
Liberty Money Market Fund
Liberty Intermediate Government Fund
Liberty Short Term Government Fund
Liberty Newport Japan Opportunities Fund
Liberty Newport Greater China Fund
Stein Roe Small Cap Tiger Fund
Liberty Funds Trust III
Liberty Select Value Fund
The Liberty Fund
Liberty Federal Securities Fund
Liberty Newport Global Equity Fund
Liberty Newport International Equity Fund
Liberty Strategic Balanced Fund
Liberty Newport Global Utilities Fund
Liberty Contrarian Small-Cap Fund
Liberty Special Fund
Liberty Contrarian Equity Fund
Liberty Real Estate Fund
Liberty Contrarian Balanced Fund
Liberty Oregon Tax-Free Fund
Liberty Contrarian Income Fund
Liberty Contrarian Fund
Liberty Funds Trust IV
Liberty High Yield Municipal Fund
Liberty Intermediate Tax-Exempt Fund
Liberty Tax-Exempt Fund
Liberty Tax-Exempt Insured Fund
Liberty Tax-Exempt Money Market Fund
Liberty Utilities Fund
Liberty Counselor Income Portfolio
Liberty Counselor Balanced Portfolio
Liberty Counselor Growth Portfolio
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Liberty Funds Trust V
Liberty Massachusetts Tax-Exempt Fund
Liberty Connecticut Tax-Exempt Fund
Liberty California Tax-Exempt Fund
Liberty Michigan Tax-Exempt Fund
Liberty Minnesota Tax-Exempt Fund
Liberty New York Tax-Exempt Fund
Liberty North Carolina Tax-Exempt Fund
Liberty Ohio Tax-Exempt Fund
Liberty Florida Tax-Exempt Fund
Liberty Funds Trust VI
Liberty Growth & Income Fund
Liberty Small-Cap Value Fund
Liberty Value Fund
Liberty Newport Asia Pacific Fund
Liberty Funds Trust VII
Liberty Newport Tiger Fund
Liberty Newport Europe Fund
</TABLE>
Liberty Floating Rate Advantage Fund
Liberty Investment Grade Bond Fund
