COLONIAL TRUST III
497, 1997-10-20
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                           COLONIAL GLOBAL EQUITY FUND
                Supplement to Statement of Additional Information
                 dated February 28, 1997, Revised August 1, 1997




Effective  immediately,  Colonial  Investment  Services,  Inc.'s  (CISI) name is
changed to Liberty Financial Investments, Inc. (LFII). All references to CISI in
the Statement of Additional Information are now references to LFII.

The first  paragraph  under the caption  FUND CHARGES AND EXPENSES is revised in
its entirety as follows:

Under the Fund's management  agreement,  the Fund pays the Adviser a monthly fee
based on the average  daily net assets of the Fund,  determined  at the close of
each business day during the month, at the annual rate of 0.95%,  subject to any
voluntary reduction that the Adviser may agree to from time to time.






















GE-39/298E-1097                                          October 20, 1997









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