COLONIAL STRATEGIC BALANCED FUND
COLONIAL INTERNATIONAL FUND FOR GROWTH
Supplement to Prospectuses
The Funds' Prospectuses are amended as follows:
(1)The Funds' Trustees approved a name change for each Fund's Class D
shares and eliminated the Class D share initial sales charge. Each
Fund's "Class D" shares have been renamed "Class C" shares. Any
reference in the Funds' Prospectuses to "Class D" shares is now a
reference to "Class C" shares. Except as described below, the other
features of Class D shares remain unchanged, including the 1.00%
contingent deferred sales charge.
In connection with this change, the "Maximum Sales Charge" under
Shareholder Transaction Expenses on Page 2 is deleted, and the
"Maximum Initial Sales Charge Imposed on a Purchase" is reduced to
0.00%. Purchases of $1,000,000 or more must be for Class A shares.
(2)Colonial Management Associates, Inc. ("Adviser") will no longer waive
or bear expenses of each Fund. Therefore, Annual Operating Expenses
(as a % of average net assets) are revised as follows:
Colonial International Fund for Growth
Class A Class B Class C
Management fee 0.90% 0.90% 0.90%
12b-1 fees 0.25 1.00 1.00
Other expenses 0.64 0.64 0.64
---- ---- ----
Total operating expenses 1.79% 2.54% 2.54%
==== ==== ====
Colonial Strategic Balanced Fund
Class A Class B Class C
Management fee 0.70% 0.70% 0.70%
12b-1 fees 0.55 1.00 1.00
Other expenses 0.59 0.59 0.59
---- ---- ----
Total operating expenses 1.84% 2.29% 2.29%
==== ==== ====
(3)The Funds' Examples on Page 2 in each Fund's Prospectus, which
reflect expenses after voluntary fee reductions, are hereby deleted.
The Funds' Examples, as they relate to cumulative expenses
attributable to a hypothetical $1,000 investment in each Fund's Class
C shares for the periods specified, assuming a 5% annual return and,
unless otherwise noted, redemption at period end, are revised as
follows:
Colonial International Fund for Growth
Class C
Period: (1) (2)
1 year $ 36 $ 26
3 years $ 79 $ 79(3)
5 years $135 $135
10 years $287 $287
Colonial Strategic Balanced Fund
Class C
Period: (1) (2)
1 year $ 33 $ 23
3 years $ 72 $ 72(3)
5 years $123 $123
10 years $263 $263
(1) Assumes redemption at period end.
(2) Assumes no redemption.
(3) Class C shares do not incur a contingent deferred sales charge
on redemptions made after one year.
(4)The two paragraphs following the subcaption Class D Shares under the
caption How to Buy Shares are revised in their entirety as follows:
Class C Shares. Class C shares are offered at net asset value and
are subject to a 0.75% annual distribution fee and a 1.00% contingent
deferred sales charge on redemptions made within one year after the
end of the month in which the purchase was accepted.
The Distributor pays financial service firms an initial commission of
1.00% on Class C share purchases and an ongoing commission of 0.75%
annually commencing after the shares purchased have been outstanding
for one year. Payment of the ongoing commission is conditioned on
receipt by the Distributor of the 0.75% annual distribution fee
referred to above. The commission may be reduced or eliminated if
the distribution fee paid by each Fund is reduced or eliminated for
any reason.
(5)Each Fund's Class C share exchange policy has been modified to permit
only one "roundtrip" exchange per three-month period, measured from
the date of the initial purchase. For example, an exchange from Fund
A to Fund B and back to Fund A would be permitted only once during
each three-month period.
(6)Gita Rao, a Vice President of the Adviser has been named as a co-
manager of the Colonial Strategic Balanced Fund, effective December
18, 1997. Ms. Rao has managed various other Colonial funds since
1996. Prior to joining the Adviser in 1995, she was a Quantitative
Research Analyst at Fidelity Management & Research Company and a Vice
President in the equity research group at Kidder, Peabody and
Company.
James P. Haynie no longer co-manages the Colonial Strategic Balanced
Fund.
(7)The Funds' Distributor has changed its name to "Liberty Financial
Investments, Inc." The Distributor's address and telephone number
remain unchanged.
(8)A new custodian was named for each Fund. Colonial Strategic Balanced
Fund's Custodian is (and Colonial International Fund for Growth's
Custodian, effective later in January will be), The Chase Manhattan
Bank, 4 Chase MetroTech Center, Brooklyn, NY 11245.
D-36/629E-1297 January 1, 1998
<PAGE>
COLONIAL INTERNATIONAL FUND FOR GROWTH
Supplement to Statement of Additional Information
The Fund's Trustees approved a name change for the Fund's Class D
shares and eliminated the Class D share initial sales charge. The
Fund's "Class D" shares have been renamed "Class C" shares. Any
reference in the Fund's Prospectus and Statement of Additional
Information to "Class D" shares is now a reference to "Class C"
shares. Class C shares are described in a Prospectus Supplement.
Colonial Investment Services, Inc. (CISI) changed its name to Liberty
Financial Investments, Inc. (LFII). All references to CISI in the
Statement of Additional are now references to LFII.
The Chase Manhattan Bank has been selected to replace the Fund's
current custodian later in January, 1998.
IN-39/631E-1297 January 1, 1998
