LIBERTY CONTRARIAN SMALL-CAP FUND
LIBERTY CONTRARIAN EQUITY FUND
LIBERTY REAL ESTATE FUND
LIBERTY CONTRARIAN BALANCED FUND
LIBERTY CONTRARIAN INCOME FUND
LIBERTY OREGON TAX-FREE FUND
LIBERTY CONTRARIAN FUND
LIBERTY SPECIAL FUND
Supplement to Statements of Additional Information
Pursuant to the Board of Trustees' approval, the shareholders' servicing and
transfer agency fee arrangement between Liberty Funds Services, Inc. (LFS) and
each Fund has been revised, effective January 1, 2000. Each Fund pays LFS a
monthly fee at the annual rate of 0.07% of the average daily closing value of
the total net assets of each Fund for such month. In addition to this
compensation, each Fund pays LFS the following fees:
1. A transaction fee of $1.18 per transaction occurring in Fund accounts
during any month; PLUS
2. An account fee for open accounts of $4.00 per annum, payable on a
monthly basis, in an amount equal to 1/12 the per annum charge; PLUS
3. An account fee for closed accounts of $1.50 per annum, payable on a
monthly basis, in an amount equal to 1/12 the per annum charge; PLUS
4. Each Fund's allocated share of LFS reimbursement out-of-pocket expenses.
Notwithstanding the foregoing, for the period January 1, 2000 through October
14, 2000, with respect to the Funds listed above (January 1, 2000 through
December 22, 2000, in the case of Liberty Special Fund), the fees payable for
services hereunder shall not exceed the greater of the amount determined as
above or the amount which would otherwise have been payable by such Funds
pursuant to the previous shareholders' servicing and transfer agency fee
arrangement.
G-35/449C-0700 August 21, 2000
