Colonial Global Equity Fund
Supplement to March 1, 2000 Prospectus
and Statement of Additional Information
The Fund's prospectus and Statement of Additional Information are amended as
follows:
Shareholder Meeting to Consider Management Agreement. The Board of Trustees of
Liberty Funds Trust III has called a meeting of the Fund's shareholders for June
1, 2000 to vote on a proposed management agreement with Newport Fund Management,
Inc. (Newport), an affiliate of Colonial Management Associates, Inc. (Colonial),
the Fund's investment advisor. At a February 17, 2000 meeting, the Fund's Board
of Trustees voted in favor of the proposed management agreement. Accordingly, if
the Fund's shareholders approve the proposed management agreement, Newport will
replace Colonial as the Fund's investment advisor and will provide investment
management services to the Fund, for the same investment management fee and on
substantially the same terms and conditions as the Fund's existing management
agreement with Colonial. Newport is a wholly owned subsidiary of Liberty
Financial Companies, Inc. (LFC), and is located at 580 California Street, Suite
1960, San Francisco, CA 94104. Newport is registered as an investment advisor
under the Investment Advisers Act of 1940 and specializes in international
investing. As of February 29, 2000, Newport managed over $2.6 billion in assets.
Portfolio Managers. Effective March 15, 2000, Ophelia Barsketis and Deborah A.
Jansen will replace Nicholas Ghajar as co-managers of the Fund. Effective March
15, 2000, each of the co-managers will become joint employees of Newport,
Colonial and Stein Roe & Farnham Incorporated (Stein Roe), an affiliate of
Colonial. Both Colonial and Stein Roe are indirect wholly owned subsidiaries of
LFC.
Ms. Barsketis will be a Managing Director of Newport. She also is a Senior Vice
President of both Colonial and Stein Roe. Ms. Barsketis joined Stein Roe in 1983
and progressed through a variety of equity analyst positions before assuming her
current responsibilities as co-manager of the Colonial Global Utilities Fund in
September, 1993, and the Stein Roe Global Utilities Fund, Variable Series in
November, 1997.
Ms. Jansen will be a Senior Vice President of Newport. She holds the same
position with both Colonial and Stein Roe. Ms. Jansen joined Stein Roe in 1987
and served as an associate economist and senior economist before assuming her
current responsibilities as co-manager of the Colonial Global Utilities Fund in
April, 1996, and the Stein Roe Global Utilities Fund, Variable Series, in
November, 1997. Ms. Jansen left Stein Roe in January, 1995 and returned to her
position as Vice President in March, 1996. For a period of time before returning
to Stein Roe in March, 1996, Ms. Jansen was a Senior Equity Research Analyst for
BancOne Investment Advisers Corporation.
Investment Advisor. Effective March 15, 2000, Colonial will use Newport's
trading facilities when buying or selling foreign securities for the Fund's
portfolio. Newport will execute all trades under its own procedures.
This Supplement is dated March 15, 2000.
781-36/829A-0300
Colonial Global Utilities Fund
Supplement to March 1, 2000 Prospectus
and Statement of Additional Information
The Fund's prospectus and Statement of Additional Information are amended as
follows:
Shareholder Meeting to Consider Management Agreement. The Board of Trustees of
Liberty Funds Trust III has called a meeting of the Fund's shareholders for June
1, 2000 to vote on a proposed management agreement with Newport Fund Management,
Inc. (Newport), an affiliate of Stein Roe & Farnham Incorporated (Stein Roe),
the Fund's investment advisor. At a February 17, 1999 meeting, the Fund's Board
of Trustees voted in favor of the proposed management agreement. Accordingly, if
the Fund's shareholders approve the proposed management agreement, Newport will
replace Stein Roe as the Fund's investment advisor and will provide investment
management services to the Fund, for the same investment management fee and on
substantially the same terms and conditions as the Fund's existing management
agreement with Stein Roe. Newport is a wholly owned subsidiary of Liberty
Financial Companies, Inc. (LFC) and is located at 580 California Street, Suite
1960, San Francisco, CA 94104. Newport is registered as an investment advisor
under the Investment Advisers Act of 1940 and specializes in international
investing. As of February 29, 2000, Newport managed over $2.6 billion in assets.
Portfolio Managers. Effective March 15, 2000, Ophelia Barsketis and Deborah
A. Jansen, the co-managers of the Fund, will become joint employees of
Newport, Stein Roe and Colonial Management Associates, Inc. (Colonial). Both
Colonial and Stein Roe are indirect wholly owned subsidiaries of LFC.
Ms. Barsketis will be a Managing Director of Newport. She also is a Senior Vice
President of both Colonial and Stein Roe. Ms. Barsketis joined Stein Roe in 1983
and progressed through a variety of equity analyst positions before assuming her
current responsibilities as co-manager of the Colonial Global Utilities Fund in
September, 1993, and the Stein Roe Global Utilities Fund, Variable Series in
November, 1997.
Ms. Jansen will be a Senior Vice President of Newport. She holds the same
position with both Colonial and Stein Roe. Ms. Jansen joined Stein Roe in 1987
and served as an associate economist and senior economist before assuming her
current responsibilities as co-manager of the Colonial Global Utilities Fund in
April, 1996, and the Stein Roe Global Utilities Fund, Variable Series in
November, 1997. Ms. Jansen left Stein Roe in January, 1995 and returned to her
position as Vice President in March, 1996. For a period of time before returning
to Stein Roe in March, 1996, Ms. Jansen was a Senior Equity Research Analyst for
BancOne Investment Advisers Corporation.
Investment Advisor. Effective March 15, 2000, Stein Roe will use Newport's
trading facilities when buying or selling foreign securities for the Fund's
portfolio. Newport will execute all trades under its own procedures.
This Supplement is dated March 15, 2000.
733-36/830A-0300
Colonial International Horizons Fund
Supplement to March 1, 2000 Prospectus
and Statement of Additional Information
The Fund's prospectus and Statement of Additional Information are amended as
follows:
Shareholder Meeting to Consider Management Agreement. The Board of Trustees of
Liberty Funds Trust III has called a meeting of the Fund's shareholders for June
1, 2000 to vote on a proposed management agreement with Newport Fund Management,
Inc. (Newport), an affiliate of Colonial Management Associates, Inc. (Colonial),
the Fund's investment advisor. At a February 17, 2000 meeting, the Fund's Board
of Trustees voted in favor of the proposed management agreement. Accordingly, if
the Fund's shareholders approve the proposed management agreement, Newport will
replace Colonial as the Fund's investment advisor and will provide investment
management services to the Fund, for the same investment management fee and on
substantially the same terms and conditions as the Fund's existing management
agreement with Colonial. Newport is a wholly owned subsidiary of Liberty
Financial Companies, Inc. (LFC), and is located at 580 California Street, Suite
1960, San Francisco, CA 94104. Newport is registered as an investment advisor
under the Investment Advisers Act of 1940 and specializes in international
investing. As of February 29, 2000, Newport managed over $2.6 billion in assets.
Portfolio Managers. Effective March 15, 2000, Charles R. Roberts, Michael Ellis
and Deborah F. Snee will replace Nicholas Ghajar as co-managers of the Fund.
Effective March 15, 2000, each of the co-managers will become joint employees of
Newport, Colonial and Stein Roe & Farnham Incorporated (Stein Roe), an affiliate
of Colonial. Both Colonial and Stein Roe are indirect wholly owned subsidiaries
of LFC.
Mr. Roberts is a Managing Director of Newport. Mr. Roberts is also a Managing
Director of Newport Pacific Management, Inc. (Newport Pacific), Newport's
immediate parent. Mr. Roberts will be a Senior Vice President of both
Colonial and Stein Roe. Mr. Roberts has been employed with Newport and
Newport Pacific since November, 1998, where he has managed other funds or
accounts on behalf of Newport and Newport Pacific. Prior to joining Newport
and Newport Pacific, he managed the European component of institutional
international equity accounts at Progress Investment Management (Progress)
since 1997. Prior to joining Progress in 1997, he managed the European
component of institutional international equity accounts and was a member of
the investment policy committee at Sit/Kim International since prior to 1994.
Mr. Ellis is a Senior Vice President of both Newport and Newport Pacific. Mr.
Ellis will hold the same position with Colonial and Stein Roe. Prior to
joining Newport and Newport Pacific in December, 1996, he was a Vice President
at Matthews International Capital Management since September, 1991.
Ms. Snee is a Vice President and Europe analyst at Newport. She also will be
an analyst at Colonial and Stein Roe. Prior to working at Newport, Ms. Snee
spent five years at Sit/Kim as an emerging markets analyst.
Investment Advisor. Effective March 15, 2000, Colonial will use Newport's
trading facilities when buying or selling foreign securities for the Fund's
portfolio. Newport will execute all trades under its own procedures.
This Supplement is dated March 15, 2000.
782-36/831A-0300
