LIBERTY SHORT TERM GOVERNMENT FUND
LIBERTY NEWPORT GLOBAL EQUITY FUND
LIBERTY NEWPORT GLOBAL UTILITIES FUND
LIBERTY SPECIAL FUND
LIBERTY CONTRARIAN SMALL CAP FUND
LIBERTY CONTRARIAN EQUITY FUND
LIBERTY CONTRARIAN BALANCED FUND
LIBERTY OREGON TAX-FREE FUND
LIBERTY CONTRARIAN FUND
LIBERTY HIGH YIELD MUNICIPAL FUND
LIBERTY INTERMEDIATE TAX-EXEMPT FUND
LIBERTY TAX-EXEMPT FUND
LIBERTY TAX-EXEMPT INSURED FUND
LIBERTY CALIFORNIA TAX-EXEMPT FUND
LIBERTY CONNECTICUT TAX-EXEMPT FUND
LIBERTY FLORIDA TAX-EXEMPT FUND
LIBERTY MASSACHUSETTS TAX-EXEMPT FUND
LIBERTY MICHIGAN TAX-EXEMPT FUND
LIBERTY MINNESOTA TAX-EXEMPT FUND
LIBERTY NEW YORK TAX-EXEMPT FUND
LIBERTY NORTH CAROLINA TAX-EXEMPT FUND
LIBERTY OHIO TAX-EXEMPT FUND
LIBERTY YOUNG INVESTOR FUND
LIBERTY GROWTH STOCK FUND
LIBERTY INCOME BOND FUND CLASS A
LIBERTY HIGH YIELD BOND FUND CLASS A
LIBERTY INTERMEDIATE BOND FUND CLASS A
LIBERTY HIGH INCOME MUNICIPALS FUND CLASS A
LIBERTY FOCUS FUND CLASS A
LIBERTY SMALL COMPANY GROWTH FUND CLASS A
LIBERTY CAPITAL OPPORTUNITIES FUND CLASS A
The Funds' prospectuses are amended to replace the caption HOW TO EXCHANGE
SHARES in its entirety as follows:
HOW TO EXCHANGE SHARES
You may exchange your shares for shares of the same share class of another fund
distributed by Liberty Funds Distributor, Inc. at net asset value. Shareholders
of Liberty Acorn funds that qualify to purchase Class A shares at net asset
value may exchange their Class A shares for Class Z shares of another fund
distributed by Liberty Funds Distributor, Inc. (see the Statement of Additional
Information for a description of these situations). If your shares are subject
to a CDSC, you will not be charged a CDSC upon the exchange. However, when you
sell the shares acquired through the exchange, the shares sold may be subject to
a CDSC, depending upon when you originally purchased the shares you exchanged.
For purposes of computing the CDSC, the length of time you have owned your
shares will be computed from the date of your original purchase, and the
applicable CDSC will be the CDSC of the original fund. Unless your account is
part of a tax-deferred retirement plan, an exchange is a taxable event.
Therefore, you may realize a gain or a loss for tax purposes. The Fund may
terminate your exchange privilege if the advisor determines that your exchange
activity is likely to adversely impact its ability to manage the Fund. To
exchange by telephone, call 1-800-422-3737.
G-36/486D-1000 October 23, 2000
<PAGE>
LIBERTY SHORT TERM GOVERNMENT FUND
LIBERTY NEWPORT GLOBAL EQUITY FUND
LIBERTY NEWPORT GLOBAL UTILITIES FUND
LIBERTY SPECIAL FUND
LIBERTY CONTRARIAN SMALL CAP FUND
LIBERTY CONTRARIAN EQUITY FUND
LIBERTY CONTRARIAN BALANCED FUND
LIBERTY OREGON TAX-FREE FUND
LIBERTY CONTRARIAN FUND
LIBERTY HIGH YIELD MUNICIPAL FUND
LIBERTY INTERMEDIATE TAX-EXEMPT FUND
LIBERTY TAX-EXEMPT FUND
LIBERTY TAX-EXEMPT INSURED FUND
LIBERTY CALIFORNIA TAX-EXEMPT FUND
LIBERTY CONNECTICUT TAX-EXEMPT FUND
LIBERTY FLORIDA TAX-EXEMPT FUND
LIBERTY MASSACHUSETTS TAX-EXEMPT FUND
LIBERTY MICHIGAN TAX-EXEMPT FUND
LIBERTY MINNESOTA TAX-EXEMPT FUND
LIBERTY NEW YORK TAX-EXEMPT FUND
LIBERTY NORTH CAROLINA TAX-EXEMPT FUND
LIBERTY OHIO TAX-EXEMPT FUND
LIBERTY YOUNG INVESTOR FUND
LIBERTY GROWTH STOCK FUND
LIBERTY INCOME BOND FUND CLASS A
LIBERTY HIGH YIELD BOND FUND CLASS A
LIBERTY INTERMEDIATE BOND FUND CLASS A
LIBERTY HIGH INCOME MUNICIPALS FUND CLASS A
LIBERTY FOCUS FUND CLASS A
LIBERTY SMALL COMPANY GROWTH FUND CLASS A
LIBERTY CAPITAL OPPORTUNITIES FUND CLASS A
The Funds' Statements of Additional Information are amended to add the following
sub-heading under the PROGRAMS FOR REDUCING OR ELIMINATING SALES CHARGES:
PRIVILEGES OF LIBERTY ACORN FUNDS SHAREHOLDERS. Any shareholder who owned shares
of any fund of Liberty Acorn Trust on September 29, 2000 (when all of the then
outstanding shares of Liberty Acorn Trust were re-designated Class Z shares) and
who since that time has remained a shareholder of any fund distributed by LFD,
may purchase Class A shares of any fund distributed by LFD at NAV in those cases
where a Liberty Fund Class Z share is not available. Qualifying shareholders
will not be subject to Class A initial or contingent deferred sales charges;
however, they will be subject to the annual 12b-1 service fee.
G-35/485D-1000 October 23, 2000
