COLONIAL TRUST III
497, 1998-03-31
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                                THE COLONIAL FUND
                           COLONIAL GLOBAL EQUITY FUND
                      COLONIAL INTERNATIONAL HORIZONS FUND
                        COLONIAL STRATEGIC BALANCED FUND
                         COLONIAL GLOBAL UTILITIES FUND
                           COLONIAL SELECT VALUE FUND
                          COLONIAL SMALL CAP VALUE FUND
                            COLONIAL U.S. STOCK FUND

                           Supplement to Prospectuses

Effective immediately,  Liberty Financial  Investments,  Inc. (Distributor) will
pay an additional 1% commission  (total  commission of 5%) to financial  service
firms  on  sales  of Class B shares  of the  above  Funds  to their  clients  or
customers.  The  commission  will be made directly by the  Distributor  from its
assets and will not effect the  expenses  paid by Fund  shareholders.  Financial
service firms may waive receipt of all or any portion of these payments.


D-43/978E-0398                       March 30, 1998




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