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Columbia
COLUMBIA FUNDS
Supplement to the
Columbia Funds Prospectus
dated February 24, 1997
On August 14, 1997, Columbia Funds Management Company ("CFMC"), the Funds'
current investment advisor, Columbia Management Co. ("CMC"), Columbia Trust
Company ("CTC"), the Funds' transfer agent, and Columbia Financial Center
Incorporated ("CFCI"), the Funds' Distributor, announced that they had entered
into an agreement to be acquired by Fleet Financial Group, Inc. ("Fleet"). Under
the agreement, CFMC, CMC, CTC and CFCI will become subsidiaries of Fleet
National Bank, a wholly owned subsidiary of Fleet. The agreement calls for CFMC,
CMC, CTC and CFCI to operate as autonomous business units of Fleet, and there
are no plans to change the Funds, the portfolio managers for each of the Funds,
or the key individuals responsible for providing account services.
The proposed change in ownership of CFMC will, however, cause an
"assignment" (as that term is defined under the Investment Company Act of 1940
(the "1940 Act")) of each Fund's investment advisory contract with CFMC. Under
the 1940 Act and the investment advisory contract, an assignment results in the
automatic termination of the investment advisory contract. At a meeting held on
September 26th, 1997, the Board of Directors of each Fund approved a new
investment advisory contract between the Fund and CFMC and recommended that the
new investment advisory contract be submitted to the Fund's shareholders for
approval. The essential terms of the new investment advisory contract approved
by each Board, including the investment advisory fees, are the same as those
under the current investment advisory contract.
Shareholders of the Funds will be receiving a proxy statement describing
the transaction with Fleet in more detail and seeking shareholder approval of
the new investment advisory contract. Subject to the receipt of such approval
and the satisfaction of certain other conditions, it is presently anticipated
that the closing of the transaction will occur by the end of the year.
September 30, 1997
