COLONIAL HIGH YIELD MUNICIPAL FUND
Supplement to Prospectus dated March 29, 1996
The fourth paragraph under the caption HOW THE FUND IS MANAGED has been revised
in its entirety as follows:
Bonny E. Boatman, Senior Vice President and Director of the Adviser and head of
the Tax-Exempt Group, has managed the Fund since its inception and has managed
various other Colonial tax-exempt funds since 1985. Peter C. Andersen, Vice
President of the Adviser, has co-managed the Fund since January 1996. Prior to
co-managing the Fund, Mr. Andersen was an Associate Portfolio Manager of the
Fund and a high yield credit analyst for the Adviser's tax-exempt funds. Before
joining the Adviser in 1993, Mr. Andersen was a venture capital research
associate at MTDC and a management consultant at Arthur D. Little.
HM-36/595C-0896
September 13, 1996
