COLONIAL SHORT DURATION U.S. GOVERNMENT FUND
COLONIAL INTERMEDIATE U.S. GOVERNMENT FUND
COLONIAL FEDERAL SECURITIES FUND
CLASS A, B AND C SHARES
SUPPLEMENT TO PROSPECTUS DATED
JANUARY 1, 2000
(Replacing Supplements dated June 23, 2000,
August 1, 2000 and October 24, 2000)
Effective July 14, 2000, the Funds changed their names. Colonial Short Duration
U.S. Government Fund changed its name to "Liberty Short Term Government Fund,"
Colonial Intermediate U.S. Government Fund changed its name to "Liberty
Intermediate Government Fund" and Colonial Federal Securities Fund changed its
name to "Liberty Federal Securities Fund."
Effective September 19, 2000, Michael Bissonnette began co-managing Liberty
Intermediate Government Fund.
The following replaces the paragraph for Michael Bissonnette under the
sub-caption, PORTFOLIO MANAGERS, under the section MANAGING THE FUNDS for the
Liberty Intermediate Government Fund in the Funds' Prospectus:
MICHAEL BISSONNETTE, a senior vice president of Colonial Management Associates,
Inc. (Colonial), is a co-manager for the Liberty Federal Securities Fund and the
Liberty Intermediate Government Fund. Prior to joining Colonial, Mr. Bissonnette
was a portfolio manager for APAM, Inc. from June, 1998 to June, 1999, and a
portfolio manager at Caxton Corporation from July, 1996 to June, 1998. From
June, 1993 to June, 1996, Mr. Bissonnette served as a portfolio manager of
fixed-income funds and a vice president of Colonial.
Effective September 19, 2000, Ann T. Peterson began co-managing the Liberty
Federal Securities Fund.
The following replaces the paragraph for Ann T. Peterson under the sub-caption,
PORTFOLIO MANAGERS, under the section MANAGING THE FUNDS for the Liberty Federal
Securities Fund in the Funds' Prospectus:
ANN T. PETERSON, a vice president of Colonial, is the lead portfolio manager for
the Liberty Short Term Government Fund. Ms. Peterson also serves as a co-manager
of the Liberty Intermediate Government Fund and the Liberty Federal Securities
Fund. Since 1993, she has served as a manager or a co-manager of various other
Colonial taxable income funds.
The footnote to the table "Class A Sales Charges" under the subcaption SALES
CHARGES under the section YOUR ACCOUNT is revised as follows:
Class A shares bought without an initial sales charge in accounts aggregating $1
million to $25 million at the time of purchase are subject to a 1% CDSC if the
shares are sold within 18 months of the time of purchase. Subsequent Class A
purchases that bring your account value above $1 million are subject to a CDSC
if redeemed within 18 months of the date of purchase. The 18-month period begins
on the first day of the month following each purchase. The CDSC does not apply
to retirement plans purchased through a fee-based program.
The following replaces the table called "Purchases Over $1 Million" under the
subcaption SALES CHARGES under the section YOUR ACCOUNT:
AMOUNT PURCHASED COMMISSION %
First $3 million 1.00
$3 million to less than $5 million 0.80
$5 million to less than $25 million 0.50
$25 million or more 0.25
The commission to financial advisors for Class A share purchases of $25 million
or more is paid over 12 months but only to the extent the shares remain
outstanding.
For Class A share purchases by participants in certain group retirement plans
offered through a fee-based program, financial advisors receive a 1% commission
from the distributor on all purchases of less than $3 million.
GOV-36/805D-1100 November 15, 2000
<PAGE>
COLONIAL FEDERAL SECURITIES FUND
CLASS Z SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 1, 2000
(Replacing Supplements dated June 23, 2000,
August 15, 2000 and October 24, 2000)
Effective July 14, 2000, the Fund changed its name from Colonial Federal
Securities Fund to "Liberty Federal Securities Fund."
Effective September 19, 2000, Ann T. Peterson began co-managing the Fund.
The following paragraph is being added under the sub-caption, PORTFOLIO
MANAGERS, under the section MANAGING THE FUND:
ANN T. PETERSON, a vice president of Colonial Management Associates, Inc.
(Colonial), is a co-manager for the Fund and has managed or co-managed various
other Colonial taxable income funds since 1993.
The following investors are now eligible to purchase Class Z shares: (i) clients
of broker-dealers or registered investment advisors that both recommend the
purchase of Fund shares and charge such clients an asset-based fee; (ii) a
retirement plan (or the custodian for such plan) with aggregate plan assets of
at least $5 million at the time of purchase and which purchases shares directly
from Liberty Funds Distributor, Inc., the Fund's distributor, or through a third
party broker-dealer; (iii) any insurance company, trust company or bank
purchasing shares for its own account; (iv) any endowment, investment company or
foundation; (v) clients of investment advisory affiliates of the distributor
provided that the clients meet certain criteria established by the distributor
and its affiliates; (vi) any shareholder (or family member of such shareholder)
who owned shares of any of the funds 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 has since then continued to own shares of
any funds distributed by Liberty Funds Distributor, Inc.; (vii) any person
investing all or part of the proceeds of a distribution, roll over or transfer
of assets into a Liberty IRA, from any deferred compensation plan which was a
shareholder of any of the funds of Liberty Acorn Trust on September 29, 2000, in
which the investor was a participant and through which the investor invested in
one or more of the funds of Liberty Acorn Trust immediately prior to the
distribution, roll over or transfer; (viii) any trustee of Liberty Acorn Trust,
any employee of Liberty Wanger Asset Management, L.P., or a member of the family
of such trustee or employee; and (ix) any person or entity listed in the account
registration for any account (such as joint owners, trustees, custodians, and
designated beneficiaries) that held shares of any of the funds of Liberty Acorn
Trust on September 29, 2000 and that has since then continued to hold shares of
any fund distributed by Liberty Funds Distributor, Inc.
Initial purchases of Class Z shares are subject to a minimum purchase amount of
$100,000, except that purchases by (a) retirement plans described in clause (ii)
above are not subject to any initial investment minimum, and (b) investors
described in clauses (vi), (viii) and (ix) above are subject to a minimum
purchase amount of $1,000. The Fund reserves the right to change the investment
minimums.
GOV-36/804D-1100 November 15, 2000
