COLONIAL GLOBAL EQUITY FUND
Supplement to the February 27, 1998 Prospectus
(Replacing Supplement dated October 30, 1998)
The Fund's Prospectus is amended as follows:
(1) To the front cover of the Prospectus, a new paragraph is added below the
Table of Contents as follows:
This Prospectus is also available on-line at the Web site
http://www.libertyfunds.com. The SEC maintains a Web site
(http://www.sec.gov) that contains the Statement of Additional Information,
materials that are incorporated by reference into this Prospectus and the
Statement of Additional Information, and other information regarding the
Fund.
(2) A new sub-caption is added under the caption HOW THE FUND PURSUES ITS
OBJECTIVES AND CERTAIN RISK FACTORS as follows:
Emerging Markets. The Fund may invest up to 35% of its total assets in
foreign securities issued or guaranteed by companies or governments located
in countries whose economies or securities markets are not yet highly
developed. Special risks associated with these investments (in addition to
those of foreign investments generally) may include, among others, greater
political uncertainties, and economy's dependence on revenues from
particular commodities or on international aid or development assistance,
extreme or volatile debt burdens or inflation rates, highly limited number
of potential buyers for such securities, heightened volatility of security
prices, restrictions on repatriation of capital invested abroad and delays
and disruptions in securities settlement procedures.
(3) The sub-caption "Borrowing of Money" under the caption HOW THE FUND PURSUES
ITS OBJECTIVE AND CERTAIN RISK FACTORS is revised in its entirety as
follows:
Borrowing of Money. The Fund may borrow money from banks, affiliated funds
and other entities to the extent permitted by law for temporary or
emergency purposes up to 33 1/3% of its total assets.
(4) Gita Rao, a Vice President of the Advisor, co-manages the Fund. Ms. Rao has
managed various other Colonial funds since 1995. Prior to joining the
Advisor, she was a global equity research analyst at Fidelity Management &
Research Company from 1994 to 1995 and a Vice President in the domestic
equity research group at Kidder, Peabody and Company from 1991 to 1994.
(5) A new caption and paragraph is added after the last paragraph of the
caption HOW THE FUND IS MANAGED as follows:
YEAR 2000
The Fund's Advisor, Distributor and Transfer Agent (Liberty Companies) are
actively managing Year 2000 readiness for the Fund. The Liberty Companies
are taking steps that they believe are reasonably designed to address the
Year 2000 problem and are communicating with vendors who provide services,
software and systems to the Fund to provide that date-related information
and data can be properly processed and calculated on and after January 1,
2000. Many Fund service providers and vendors, including the Liberty
Companies, are in the process of making Year 2000 modifications to their
software and systems and believe that such modifications will be completed
on a timely basis prior to January 1, 2000. The Fund will not pay the cost
of these modifications. However, no assurances can be given that all
modifications required to ensure proper data processing and calculation on
and after January 1, 2000 will be timely made or that services to the Fund
will not be adversely affected.
(6) The last sentence under the caption HOW THE FUND VALUES ITS SHARES is
revised in its entirety as follows:
In addition, if the values of foreign securities have been materially
affected by events occurring after the closing of a foreign market, the
foreign securities may be valued at their fair value.
(7) The following is added to the paragraph "Class A Shares" under the caption
HOW TO EXCHANGE SHARES:
Exchanges of Class A shares are not subject to a contingent deferred sales
charge. However, in determining whether a contingent deferred sales charge
is applicable to redemptions, the schedule of the fund in which the
original investment was made should be used.
(8) The Distributor pays an additional 1% commission (total commission of 5%)
to financial service firms on sales of Class B shares of the Fund to its
clients or customers. The commission is paid directly by the Distributor
from its assets and will not effect the expenses paid by Fund shareholders.
Financial services firms may waive receipt of all or any portion of these
payments.
(9) Under the caption TELEPHONE TRANSACTIONS the first sentence is revised in
its entirety and new second and third sentences are added as follows:
All shareholders and/or their financial advisors are automatically eligible
to exchange Fund shares and to redeem up to $100,000 of Fund shares by
calling 1-800-422-3737 toll-free any business day between 9:00 a.m.
(Eastern time) and the time at which the Fund values it shares. Telephone
redemptions are limited to a total of $100,000 in a 30-day period.
Redemptions that exceed $100,000 may be accomplished by placing a wire
order trade through a broker, or furnishing a signature guaranteed request.
(10) Liberty Financial Investments, Inc., the Fund's distributor, has changed
its name to Liberty Funds Distributor, Inc. (Distributor). The new name
does not affect the investment management of, or service to, the Fund. The
Distributor continues to offer selected investment products managed by
subsidiaries of Liberty Financial Companies, Inc. (NYSE:L), the indirect
parent of the Distributor.
(11) Colonial Investors Service Center, Inc. (Transfer Agent.), the Fund's
transfer agent, changed its name to Liberty Funds Services, Inc. The new
name will not affect the services that the Transfer Agent provides to the
Fund.
(12) The Chase Manhattan Bank is the Fund's Custodian. The Custodian's address
is 270 Park Avenue, New York, NY 10017-2070.
(13) Price Waterhouse LLP, the Fund's independent accountants, changed its name
to PricewaterhouseCoopers LLP. The new name will not affect the services
the independent accountants provide to the Fund.
GE-36/330G-1198 December 31, 1998
