LIBERTY FUNDS TRUST III
NSAR-A/A, EX-99.77D, 2000-06-30
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Colonial International Horizons Fund

Item 77D  Policies with respect to security investments


Pursuant to the Board of Trustees' approval, the Fund has changed its investment
goals and  investment  strategy.  The Fund  changed  its  investment  goals from
seeking preservation of capital purchasing power and long-term growth to seeking
long-term growth.

The Fund  changed its  investment  strategy  from  investing at least 65% of its
total assets in the equity securities of inflation  sensitive  companies located
outside of the United States to investing in at least 65% of its total assets in
the equity  securities of growth companies located outside of the United States.
In  selecting  stocks for the Fund,  the advisor  will  choose  stocks of growth
companies with long-term,  above average growth potential.  These companies will
be found in market segments that are driving  economic  growth.  Stock selection
will target companies with proven  management,  predictable growth rates and low
levels of debt.


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