The Liberty Funds
Rule 12b-1 Distribution Plan
December 29, 2000
Each Massachusetts Business Trust (Trust) designated in Appendix 1 as
revised from time to time, acting severally, adopts the following distribution
plan (the Plan) pursuant to Rule 12b-1 (the Rule) under the Investment Company
Act of 1940 (Act) on behalf of each Fund in that Trust.
I. A. PLANS APPLYING TO CLASS A, B AND C SHARES
Except as indicated below, each Fund having Class A, B or C Shares
shall pay a service fee at the annual rate of 0.25% of the net assets of its
Class A, B and C Shares, and a distribution fee at the annual rate of 0.75% of
the average daily net assets of its Class B and C Shares.
Liberty Money Market Fund and Liberty Tax-Exempt Money Market Fund do
not pay a service fee on Class A shares.
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 and Liberty Ohio
Tax-Exempt Fund each pays a service fee at the annual rates of:
(A) 0.10% of the net assets attributable to its outstanding
Class A and Class B Shares issued prior to December 1, 1994, and
(B) 0.25% of the net assets attributable to its outstanding
Class A, B and C Shares issued thereafter.
The Liberty Fund and Liberty Select Value Fund each pays a service fee
at the annual rates of:
(A) 0.15% of the net assets attributable to its outstanding Class A and
B Shares issued prior to April 1, 1989, and (B) 0.25% of the net assets
attributable to its outstanding Class A, B and C Shares issued
thereafter.
Liberty Strategic Income Fund pays a service fee at the annual rates
of:
(A) 0.15% of its net assets attributable to its outstanding Class A and
B Shares issued prior to January 1, 1993, and (B) 0.25% of the net
assets attributable to its outstanding Class A, B and C Shares issued
thereafter.
Liberty Short Term Government Fund and Liberty Intermediate Tax-Exempt
Fund each pays a service fee at the annual rate of 0.20% of the net assets of
its Class A, B and C Shares and a distribution fee at an annual rate of 0.65% of
the average daily net assets of its Class B and C Shares.
Liberty Global Young Investor Fund, Liberty Strategic Balanced Fund,
Liberty Newport Europe Fund and Liberty Floating Rate Advantage Fund each pays
an annual distribution fee not exceeding 0.10% of the average net assets of its
Class A Shares.
Liberty Floating Rate Advantage Fund pays an annual distribution fee
not exceeding 0.45% of the average net assets of its Class B Shares and 0.60% of
the average net assets of its Class C Shares.
Liberty Tax-Managed Value Fund and Liberty Tax-Managed Aggressive
Growth Fund each pays an annual distribution fee not exceeding 0.05% of the
average net assets of its Class A Shares.
B. PLANS APPLYING TO OTHER CLASSES OF SHARES
Liberty Tax-Managed Growth Fund:
Class E Shares. Class E shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.10% of the average daily net assets of the Class.
Class F Shares. Class F Shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.75% of the average daily net assets of the Class.
Liberty Strategic Income Fund and Liberty Newport Japan Opportunities Fund:
Class J Shares. Class J Shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.35% of the average daily net assets of the Class for Colonial Strategic
Income Fund and a distribution fee at the annual rate of 0.25% of the average
daily net assets of the Class for Newport Japan Opportunities Fund.
Liberty Newport Japan Opportunities Fund:
Class N Shares. Class N Shares pay a service fee at the annual rate of
0.25% of the net assets of the Class and a distribution fee at the annual rate
of 0.75% of the average daily net assets of the Class.
The following Funds do not have 12b-1 Plans for the specified classes of shares:
Liberty Contrarian Small-Cap Fund, Liberty Contrarian Equity Fund,
Liberty Contrarian Balanced Fund, Liberty Contrarian Income Fund,
Liberty Special Fund: Class I Shares.
Liberty Select Value Fund, Liberty Newport Asia Pacific Fund,
Stein Roe Small Cap Tiger Fund: Class S Shares.
Liberty Newport Tiger Fund: Class T and Class Z Shares.
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Liberty Strategic Income Fund, Liberty Income Fund, Liberty
Intermediate Government Fund, Liberty Federal Securities Fund, Liberty Newport
Greater China Fund, Liberty Newport International Equity Fund, Liberty Newport
Asia Pacific Fund, Liberty Small-Cap Value Fund, Liberty Growth & Income Fund,
The Liberty Fund, Liberty High Yield Securities Fund, Liberty Utilities Fund,
Liberty Value Fund, Liberty Select Value Fund, Liberty Tax-Managed Growth Fund,
Liberty Newport Japan Opportunities Fund, Liberty Tax-Managed Value Fund,
Liberty Newport Europe Fund, Liberty Floating Rate Advantage Fund, Liberty
Tax-Managed Growth Fund II, Liberty Tax-Managed Aggressive Growth Fund, Liberty
Special Fund: Class Z Shares.
II. Payments of Fees Under the Plan
Each Fund shall make all payments of service and distribution fees
under this Plan to Liberty Funds Distributor, Inc. (LFDI) monthly, on the 20th
day of each month or, if such day is not a business day, on the next business
day thereafter. No Fund shall pay, nor shall LFDI be entitled to receive, any
amount under this Plan if such payment would result in LFDI receiving amounts in
excess of those permitted by applicable law or by rules of the National
Association of Securities is Dealers, Inc.
III. Use of Fees
LFDI may pay part or all of the service and distribution fees it
receives from a Fund as commissions to financial service firms that sell Fund
Shares or as reimbursements to financial service firms or other entities that
provide shareholder services to record or beneficial owners of shares (including
third party administrators of qualified plans). This provision does not obligate
LFDI to make any such payments nor limit the use that LFDI may make of the fees
it receives.
IV. Reporting
LFDI shall provide to the Trust's Trustees, and the Trustees shall
review, at least quarterly, reports setting forth all Plan expenditures, and the
purposes for those expenditures. Amounts payable under this paragraph are
subject to any limitations on such amounts prescribed by applicable laws or
rules.
V. Other Payments Authorized
Payments by the Trust to LFDI and its affiliates (including Colonial
Management Associates, Inc.) other than as set forth in Section I which may be
indirect financing of distribution costs are authorized by this Plan.
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VI. Continuation; Amendment; Termination
This Plan shall continue in effect with respect to a Class of Shares
only so long as specifically approved for that Class at least annually as
provided in the Rule. The Plan may not be amended to increase materially the
service fee or distribution fee with respect to a Class of Shares without such
shareholder approval as is required by the Rule and any applicable orders of the
Securities and Exchange Commission, and all material amendments of the Plan must
be approved in the manner described in the Rule. The Plan may be terminated with
respect to any Class of Shares at any time as provided in the Rule without
payment of any penalty. The continuance of the Plan shall be effective only if
the selection and nomination of the Trust's Trustees who are not interested
persons (as defined under the Act) of the Trust is effected by such
non-interested Trustees as required by the Rule.
Approved by the Trustees as of the date set
forth above:
By: _____________________________________
William J. Ballou, Secretary For Each Trust
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APPENDIX 1 TO RULE 12B-1 DISTRIBUTION PLAN
Trust Series
Liberty Funds Trust I
Liberty High Yield Securities Fund Liberty Income Fund Liberty
Strategic Income Fund Liberty Tax-Managed Growth Fund Liberty
Tax-Managed Value Fund Liberty Tax-Managed Growth Fund II
Liberty Tax-Managed Aggressive Growth Fund
Liberty Funds Trust II
Liberty Money Market Fund
Liberty Intermediate Government Fund
Liberty Short Term Government Fund
Liberty Newport Japan Opportunities Fund
Liberty Newport Greater China Fund
Stein Roe Small Cap Tiger Fund
Liberty Funds Trust III
Liberty Select Value Fund
The Liberty Fund
Liberty Federal Securities Fund
Liberty Newport Global Equity Fund
Liberty Newport International Equity Fund Liberty Strategic
Balanced Fund Liberty Newport Global Utilities Fund Liberty
Contrarian Small-Cap Fund Liberty Special Fund Liberty
Contrarian Equity Fund Liberty Contrarian Balanced Fund
Liberty Oregon Tax-Free Fund Liberty Contrarian Income Fund
Liberty Contrarian Fund
Liberty Funds Trust IV
Liberty High Yield Municipal Fund
Liberty Intermediate Tax-Exempt Fund
Liberty Tax-Exempt Fund
Liberty Tax-Exempt Insured Fund
Liberty Tax-Exempt Money Market Fund
Liberty Utilities Fund
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Liberty Funds Trust V
Liberty Global Young Investor Fund Liberty Massachusetts
Tax-Exempt Fund Liberty Connecticut Tax-Exempt Fund Liberty
California 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 Florida Tax-Exempt Fund
Liberty Funds Trust VI
Liberty Growth & Income Fund
Liberty Small-Cap Value Fund
Liberty Value Fund
Liberty Newport Asia Pacific Fund
Liberty Funds Trust VII
Liberty Newport Tiger Fund
Liberty Newport Europe Fund
Liberty Floating Rate Advantage Fund
