COLONIAL SELECT VALUE FUND
Supplement to Prospectus dated
February 28, 1997, Revised August 1, 1997
On September 30, 1997, the shareholders of the Fund approved a management fee
change. Effective immediately, the Fund will pay Colonial Management Associates,
Inc. ("Adviser") a monthly management fee equal to 0.70% of the Fund's average
daily net assets.
As a result of the management fee change, and based on "Other expenses" incurred
in the Fund's most recent fiscal year, the following information under the
caption SUMMARY OF EXPENSES is revised as follows:
Annual Operating Expenses (as a % of average net assets)
Class A Class B Class C
Management fee 0.70% 0.70% 0.70%
12b-1 fees (6) 0.24 0.99 0.99
Other expenses 0.38 0.38 0.38
---- ---- ----
Total operating expenses 1.32% 2.07% 2.07%
==== ==== ====
(6) Service fee will fluctuate but will not exceed 0.25%.
Example
The Example shows the cumulative expenses attributable to a hypothetical $1,000
investment in each class of shares of the Fund for the periods specified,
assuming a 5% annual return, and, unless otherwise noted, redemption at period
end. The 5% return and expenses used in this Example should not be considered
indicative of actual or expected Fund performance or expenses, both of which
will vary.
Class A Class B Class C
Period: (7) (8) (7) (8)
1 year $ 70 $ 71 $ 21 $ 31 $ 21
3 years 97 95 65 65(10) 65
5 years 126 131 111 111 111
10 years 207 221(9) 221(9) 240 240
(7) Assumes redemption at period end.
(8) Assumes no redemption.
(9) Class B shares automatically convert to Class A shares after
approximately 8 years; therefore, years 9 and 10 reflect Class A share
expenses.
(10) Class C shares do not incur a contingent deferred sales charge on
redemptions made after one year.
The third paragraph under the caption HOW THE FUND IS MANAGED is revised in its
entirety as follows:
The Adviser furnishes the Fund with investment management, accounting and
administrative personnel and services, office space and other equipment and
services at the Adviser's expense. For these services, the Fund pays the Adviser
a fee of 0.70% of the Fund's average daily net assets. For these services, the
Fund paid the Adviser 0.55% of the Fund's average daily net assets for fiscal
year 1996.
The fourth paragraph under the caption HOW THE FUND IS MANAGED is revised in its
entirety as follows:
James P. Haynie, Vice President of the Adviser, has co-managed the Fund since
October, 1997. Prior to joining the Adviser in 1993, Mr. Haynie was a Vice
President at Massachusetts Financial Services Company and a Portfolio Manager at
Trinity Investment Management.
Michael Rega, Vice President of the Adviser, has been employed by the Adviser as
an Analyst since 1993 and has co-managed the Fund since October, 1997. Prior to
joining the Adviser in 1993, Mr. Rega was a Project Manager at MIT's Lincoln
Laboratory.
Effective October 15, 1997, the Distributor's name changed to "Liberty
Financial Investments, Inc."
SV-36/295E-1097 October 20, 1997
COLONIAL SELECT VALUE 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. (LIFI). All references to CISI
in the Statement of Additional Information are now references to LIFI.
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 0.70%, subject to any
voluntary reduction that the Adviser may agree from time to time.
The second and third paragraphs under the caption FUND CHARGES AND EXPENSES are
deleted.
SV-39/296E-1097 October 20, 1997
