LIBERTY FUNDS TRUST I LIBERTY FUNDS TRUST IV
Liberty High Yield Securities Fund Liberty High Yield Municipal Fund
Liberty Income Fund Liberty Intermediate Tax-Exempt Fund
Liberty Strategic Income Fund Liberty Tax-Exempt Fund
Liberty Tax-Managed Aggressive Growth Fund Liberty Tax-Exempt Insured Fund
Liberty Tax-Managed Value Fund Liberty Municipal Money Market Fund
Liberty Tax-Managed Growth Fund Liberty Utilities Fund
Liberty Tax-Managed Growth Fund II
LIBERTY FUNDS TRUST V
LIBERTY FUNDS TRUST II Liberty California Tax-Exempt Fund
Liberty Intermediate Government Fund Liberty Connecticut Tax-Exempt Fund
Liberty Money Market Fund Liberty Florida Tax-Exempt Fund
Liberty Newport Greater China Fund Liberty Massachusetts Tax-Exempt Fund
Liberty Newport Japan Opportunities Fund Liberty Michigan Tax-Exempt Fund
Liberty Newport Tiger Cub Fund Liberty Minnesota Tax-Exempt Fund
Liberty Short-Term Government Fund Liberty New York Tax-Exempt Fund
Liberty North Carolina Tax-Exempt Fund
LIBERTY FUNDS TRUST III Liberty Ohio Tax-Exempt Fund
Liberty Contrarian Balanced Fund
Liberty Contrarian Fund LIBERTY FUNDS TRUST VI
Liberty Contrarian Equity Fund Liberty Growth & Income Fund
Liberty Contrarian Small-Cap Fund Liberty Newport Asia Pacific Fund
Liberty Oregon Tax-Free Fund Liberty Small-Cap Value Fund
Liberty Contrarian Income Fund Liberty Value Fund
Liberty Federal Securities Fund
Liberty Newport Global Equity Fund LIBERTY FUNDS TRUST VII
Liberty Newport Global Utilities Fund Liberty Newport Europe Fund
Liberty Newport International Equity Fund Liberty Newport Tiger Fund
Liberty Select Value Fund
The Liberty Fund LIBERTY FLOATING RATE ADVANTAGE FUND
Liberty Special Fund
Liberty Strategic Balanced Fund
The Funds listed above are referred to collectively as the "Funds" and the
Trusts listed above are referred to collectively as the "Trusts."
Supplement to Statements of Additional Information
Each Fund's Statement of Additional Information is amended as follows:
1. Special Meetings of Shareholders of the Funds (Meetings) were held on
December 27, 2000. At the Meetings, each of Douglas A. Hacker, Janet
Langford Kelly, Charles R. Nelson and Thomas C. Theobald were elected as
new trustees of the Trusts. Set forth below is information on each of the
new trustees.
<TABLE>
<S> <C> <C> <C>
Name and Address Age Position with Trust Principal Occupation During Past Five Years
---------------- --- ------------------- -------------------------------------------
Douglas A. Hacker 43 Trustee Executive Vice President and Chief Financial Officer of
P.O. Box 66100 UAL, Inc. (airline) since July, 1999; Senior Vice
Chicago, IL 60666 President and Chief Financial Officer of UAL, Inc. prior
thereto.
Janet Langford Kelly 41 Trustee Executive Vice President-Corporate Development, General
One Kellogg Square Counsel, and Secretary, Kellogg Company (food, beverage
Battle Creek, MI 49016 and tobacco manufacturer), since September, 1999; Senior
Vice President,
Secretary and General
Counsel, Sara Lee
Corporation (branded,
packaged,
consumer-products
manufacturer) prior
thereto.
Charles R. Nelson 57 Trustee Van Voorhis Professor, Department of Economics,
Department of Economics University of Washington; consultant on economic and
University of Washington statistical matters.
Seattle, WA 98195
Thomas C. Theobald 62 Trustee Managing Director, William Blair Capital Partners
Suite 1300 (private equity investing) since 1994; (formerly Chief
222 West Adams Street Executive Officer and Chairman of the Board of Directors,
Chicago, IL 60606 Continental Bank Corporation); Director of Xerox
Corporation (business
products and services),
Anixter International
(network support
equipment distributor),
Jones Lang LaSalle
(real estate management
services) and MONY
Group (life insurance).
</TABLE>
The Board of Trustees consists of the four new trustees as well as the current
trustees, Ms. Verville and Messrs. Lowry, Macera, Mayer, Neuhauser, Palombo and
Stitzel. Ms. Collins and Messrs. Bleasdale, Grinnell and Moody did not stand for
reelection and retired on December 27, 2000. The Funds do not currently provide
pension or retirement plan benefits to the Trustees.
The following table sets forth the compensation paid to Ms. Kelly and Messrs.
Hacker, Nelson and Theobald in their capacities as Trustees of the Stein Roe
Funds Complex1:
Total Compensation From the Fund Complex Paid to the
Trustee Trustees for the Calendar Year Ended December 31, 1999
------- ------------------------------------------------------
Douglas A. Hacker $ 93,950
Janet Langford Kelly 103,450
Charles R. Nelson 108,050
Thomas C. Theobald 103,450
2. The following persons were elected as officers of each Trust by the Trustees:
<TABLE>
<S> <C> <C>
Name and Age Position with Trust Principal Occupation During Past Five Years
------------ ------------------- -------------------------------------------
J. Kevin Connaughton (36) Treasurer Treasurer and Chief Financial Officer of the Funds and
of the Liberty All-Star Funds since December, 2000
(formerly Controller of the Funds from February, 1998
to October, 2000); Vice President of Colonial
Management Associates, Inc. (CMA) since February, 1998
(formerly Senior Tax Manager, Coopers & Lybrand, LLP
from April, 1996 to January, 1998; Vice President, 440
Financial Group/First Data Investor Services Group
from March, 1994 to April, 1996).
Michael G. Clarke (31) Controller Controller of the Funds and of the Liberty All-Star
Funds since December, 2000, Assistant Vice President
of CMA since August, 1999; Assistant Vice President of
LFG since April, 2000 (formerly Audit Manager from
May, 1997 to August, 1999, Audit Senior Accountant
from September, 1995 to May, 1997 and Audit Staff
Accountant from September, 1993 to September, 1995 of
Deloitte & Touche LLP).
Kevin M. Carome (44) Executive Vice Executive Vice President of Funds and of the Liberty
President All-Star Funds since October, 2000; Executive Vice
President of the Stein Roe Funds Complex since May,
1999 (formerly Vice President from April, 1998
to May, 1999, Assistant Secretary from April, 1998
to February, 2000 and Secretary from February,
2000 to May, 2000); Chief Legal Officer of Liberty
Financial Companies, Inc. (LFC) since August, 2000;
Senior Vice President, Legal since January, 1999 of LFG;
Associate General Counsel and Vice President of LFC
through January, 1999; Executive Vice President and
Assistant Secretary of Stein Roe & Farnham, Inc. since
January, 2001 (formerly General Counsel and
Secretary of Stein Roe & Farnham, Inc. from January,
1998 to December, 1999).
William J. Ballou (35) Secretary Secretary of the Funds and of the Liberty All-Star
Funds since October, 2000 (formerly Assistant
Secretary from October, 1997 to October, 2000);
Assistant Secretary of the Stein Roe Funds Complex
since May, 2000; Vice President, Assistant Secretary
and Counsel of CMA since October, 1997; Vice President
and Counsel since April, 2000, and Assistant Secretary
since December, 1998 of Liberty Funds Group LLC (LFG)
(formerly Associate Counsel, Massachusetts Financial
Services Company from May, 1995 to September, 1997).
</TABLE>
G-35/521E-0101 January 16, 2001
------------------------------
1 As of November 30, 2000, the Stein Roe Funds Complex consisted of the Liberty
Floating Rate Fund, the Stein Roe Floating Rate Limited Liability Company,
Liberty-Stein Roe Institutional Floating Rate Income Fund, and the following
open-end mutual funds: four series of Liberty-Stein Roe Funds Income Trust, four
series of Liberty-Stein Roe Funds Municipal Trust, 12 series of Liberty-Stein
Roe Funds Investment Trust, four series of Liberty-Stein Roe Advisor Trust, one
series of Stein Roe Trust, 12 portfolios of SR&F Base Trust, and five series of
SteinRoe Variable Investment Trust.
