COLONIAL INTERMEDIATE TAX-EXEMPT FUND
COLONIAL SHORT-TERM TAX-EXEMPT FUND
Supplement to Prospectus dated March 30, 1994
On February 17, 1995, the Trustees approved modifications to the
wording of the Funds' investment objectives. Each Fund's current
objective is to seek, primarily, current income exempt from federal
income tax and, secondarily, preservation of capital. Effective
May 31, 1995, the Intermediate Fund's objective will be to seek as
high a level of after-tax total return, as is consistent with
moderate volatility, by pursuing current income exempt from federal
income tax and opportunities for appreciation from a portfolio
primarily invested in investment-grade, intermediate-term municipal
bonds. Effective May 31, 1995, the Short-Term Fund's objective
will be to seek as high a level of current income exempt from
federal income tax as is consistent with relatively low volatility
by investing primarily in investment-grade short-term municipal
securities.
This modification is intended to reflect the Funds' emphasis on
after-tax total return, a major component of which will continue to
be current tax-exempt income.
IS-36/718A-0395 March 6, 1995
