SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
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LIBERTY - STEIN ROE FUNDS INCOME TRUST
LIBERTY - STEIN ROE FUNDS MUNICIPAL TRUST
LIBERTY - STEIN ROE FUNDS INVESTMENT TRUST
LIBERTY - STEIN ROE ADVISOR TRUST
LIBERTY - STEIN ROE FUNDS TRUST
LIBERTY - STEIN ROE INSTITUTIONAL FLOATING RATE INCOME FUND
LIBERTY FLOATING RATE FUND
________________________________________________
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<PAGE>
LIBERTY - STEIN ROE MUTUAL FUNDS
One Financial Center, Boston,
Massachusetts 02111
(617) 426-3750
Dear Shareholder:
The Funds listed in the Notice of Special Meetings of Shareholders, will hold
special meetings on December 27, 2000 and formal Notice of Special Meetings of
Shareholders appear on the next few pages, followed by the proxy statement which
explains in more detail the proposals to be considered. We hope that you can
attend the Meetings in person; however, we urge you in any event to vote your
shares at your earliest convenience.
YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU OWN. YOU CAN VOTE
EASILY AND QUICKLY AT OUR WEB SITE, BY MAIL, BY FAX (NOT AVAILABLE FOR ALL
SHAREHOLDERS; REFER TO ENCLOSED PROXY INSERT) OR IN PERSON. TO VOTE THROUGH OUR
WEB SITE, JUST FOLLOW THE SIMPLE INSTRUCTIONS THAT APPEAR ON THE ENCLOSED PROXY
INSERT. PLEASE HELP YOUR LIBERTY - STEIN ROE MUTUAL FUND AVOID THE EXPENSE OF A
FOLLOW-UP MAILING BY VOTING TODAY!
The Liberty - Stein Roe Mutual Funds are using Shareholder Communications
Corporation (SCC), a professional proxy solicitation firm, to assist
shareholders in the voting process. As the date of the special meetings
approaches, if we have not yet received your vote, you may receive a telephone
call from SCC reminding you to exercise your right to vote.
Please take a few moments to review the details of each proposal. If you have
any questions regarding the proxy statement, please feel free to call SCC at
1-800-732-3683.
We appreciate your participation and prompt response in these matters and thank
you for your continued support.
Sincerely,
Stephen E. Gibson, President
November 13, 2000
[Job Code]
<PAGE>
EXHIBIT A
Throughout this exhibit and the proxy statement, the Funds listed in the
following Notice of Special Meetings of Shareholders, which are managed by Stein
Roe & Farnham Incorporated (SR&F), are referred to collectively as the "Liberty
- Stein Roe Mutual Funds."
The following table lists the proposals, the affected Funds and the page of the
proxy statement where the proposals are discussed in greater detail:
------------------------------- --------------------------------- -----------
Liberty - Stein Roe Mutual Fund
Whose Shareholders are Entitled Table of
Proposals to Vote Contents
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
1.(a) To elect a Board of Each Liberty - Stein Roe Mutual Page
Trustees. Fund
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(b) To elect a Board of Stein Roe Income Fund, Stein Page
Trustees for SR&F Base Trust. Roe Municipal Money Market
Fund, Stein Roe High - Yield
Municipals Fund, Stein Roe
Advisor High - Yield Municipals
Fund, Stein Roe Cash Reserves
Fund, Stein Roe Intermediate
Bond Fund, Stein Roe Advisor
Intermediate Bond Fund, Stein
Roe High Yield Fund, Stein Roe
Balanced Fund, Stein Roe Growth
Stock Fund, Liberty Growth Stock
Fund, Stein Roe Growth Investor
Fund, Stein Roe Young Investor
Fund, Liberty Young Investor
Fund, Stein Roe International Fund
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(c) To elect a Board of Liberty Floating Rate Fund and Page
Managers for Stein Roe Liberty - Stein Roe
Floating Rate Limited Institutional Floating Rate
Liability Company. Income Fund
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
2. To approve a new Stein Roe International Fund Page
portfolio management (on behalf of SR&F
agreement with Newport Fund International Portfolio)
Management, Inc.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
3. To approve a new Stein Roe Balanced Fund (on Page
sub-advisory agreement with behalf of SR&F Balanced
Unibank Securities, Inc. Portfolio)
------------------------------- --------------------------------- -----------
<PAGE>
------------------------------- --------------------------------- -----------
4.(a) To reclassify the Stein Roe Income Fund, Stein Page
fundamental investment Roe High Yield Fund, Stein Roe
restriction prohibiting the Intermediate Bond Fund, Stein
purchase of securities on Roe Cash Reserves Fund, Stein
margin as non-fundamental. Roe Intermediate Municipals
Fund, Stein Roe High - Yield
Municipals Fund, Stein Roe
Municipal Money Market Fund,
Stein Roe Managed Municipals
Fund, Stein Roe Institutional
Client High Yield Fund,
Liberty Floating Rate
Fund, Liberty - Stein Roe
Institutional Floating
Rate Income Fund, Stein Roe
Advisor Intermediate
Bond Fund and Stein Roe
Advisor High - Yield
Municipals Fund
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(b) To approve a similar Stein Roe Income Fund Page
reclassification of the
fundamental investment
restriction prohibiting the
purchase of securities on
margin for the SR&F Income
Portfolio of SR&F Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(c) To approve a similar Stein Roe High Yield Fund Page
reclassification of the
fundamental investment
restriction prohibiting the
purchase of securities on
margin for the SR&F High
Yield Portfolio of SR&F Base
Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(d) To approve a similar Stein Roe Intermediate Bond Fund Page
reclassification of the
fundamental investment
restriction prohibiting the
purchase of securities
on margin for the SR&F
Intermediate Bond Portfolio
of SR&F Base Trust.
------------------------------- --------------------------------- -----------
<PAGE>
------------------------------- --------------------------------- -----------
(e) To approve a similar Stein Roe Cash Reserves Fund Page
reclassification of the
fundamental investment
restriction prohibiting
the purchase of securities
on margin for the SR&F Cash
Reserves Portfolio of SR&F
Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(f) To approve a similar Stein Roe High - Yield Page
reclassification of the Municipals Fund and Stein Roe
fundamental investment Advisor High -Yield Municipals
restriction prohibiting the Fund
purchase of securities on
margin for the SR&F High -
Yield Municipals Portfolio
of SR&F Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(g) To approve a similar Stein Roe Municipal Money Page
reclassification of the Market Fund
fundamental investment
restriction prohibiting the
purchase of securities on
margin for the SR&F Municipal
Money Market Portfolio of
SR&F Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(h) To approve a similar Liberty Floating Rate Fund and Page
reclassification of the Liberty - Stein Roe
fundamental investment Institutional Floating Rate
restriction prohibiting the Income Fund
purchase of securities on
margin for the Stein Roe
Floating Rate Limited
Liability Company.
------------------------------- --------------------------------- -----------
<PAGE>
------------------------------- --------------------------------- -----------
5.(a) To reclassify the Stein Roe Intermediate Page
fundamental investment Municipals Fund, Stein Roe High
restriction prohibiting - Yield Municipals Fund, Stein
pledging securities as Roe Municipal Money Market
non-fundamental. Fund, Stein Roe Managed
Municipals Fund and Stein Roe
Advisor High - Yield Municipals
Fund
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(b) To approve a similar Stein Roe High - Yield Page
reclassification of the Municipals Fund and Stein Roe
fundamental investment Advisor High - Yield Municipals
restriction prohibiting Fund
pledging securities for the
SR&F High - Yield Municipals
Portfolio of SR&F Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(c) To approve a similar Stein Roe Municipal Money Page
reclassification of the Market Fund
fundamental investment
restriction prohibiting
pledging securities for the
SR&F Municipal Money Market
Portfolio of SR&F Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
6.(a) To reclassify the Stein Roe Intermediate Page
fundamental investment Municipals Fund, Stein Roe High
restriction prohibiting the - Yield Municipals Fund, Stein
purchase of securities from Roe Municipal Money Market
affiliates of the fund as Fund, Stein Roe Managed
non-fundamental. Municipals Fund, Stein Roe
Advisor Intermediate Bond Fund
and Stein Roe Advisor High -
Yield Municipals Fund
------------------------------- --------------------------------- -----------
<PAGE>
------------------------------- --------------------------------- -----------
(b) To approve a similar Stein Roe High - Yield Page
reclassification of the Municipals Fund
fundamental investment
restriction prohibiting the
purchase of securities from
affiliates of the fund
for the SR&F High - Yield
Municipals Portfolio of SR&F
Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(c) To approve a Stein Roe Municipal Money Page
reclassification of the Market Fund
fundamental investment
restriction prohibiting the
purchase of securities from
affiliates of the fund for
the SR&F Municipal Money
Market Portfolio of SR&F Base
Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
7.(a) To reclassify the Stein Roe Municipal Money Page
fundamental investment Market Fund and Stein Roe
restriction prohibiting the Managed Municipals Fund
purchase of "other securities"
as non-fundamental.
------------------------------- --------------------------------- -----------
<PAGE>
------------------------------- --------------------------------- -----------
(b) To approve a similar Stein Roe Municipal Money Page
reclassification of the Market Fund
fundamental investment
restriction prohibiting the
purchase of "other
securities" for the SR&F
Municipal Money Market
Portfolio of SR&F Base Trust.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
8.(a) To modify the Each Page
Liberty - Stein Roe Mutual
fundamental investment
Fund restriction relating
to borrowing.
------------------------------- --------------------------------- -----------
------------------------------- --------------------------------- -----------
(b). To approve a similar Stein Roe Balanced Fund, Stein Page
modification to the Roe Growth Stock Fund, Liberty
fundamental investment Growth Stock Fund, Stein Roe
restriction relating to International Fund, Liberty
borrowing for the respective Growth Investor Fund, Stein Roe
portfolio of SR&F Base Trust Young Investor Fund, Liberty
or Stein Roe Floating Rate Young Investor Fund, Stein Roe
Limited Liability Company. High Yield Fund, Stein Roe
Income Fund, Stein Roe
Intermediate Bond Fund,
Stein Roe Advisor Intermediate
Bond Fund, Stein Roe High -
Yield Municipals Fund, Stein
Roe Advisor High - Yield
Municipals Fund, Stein Roe
Cash Reserves Fund, Stein Roe
Municipal Money Market Fund,
Liberty Floating Rate Fund,
Liberty - Stein Roe Institutional
Floating Rate Income Fund
------------------------------- --------------------------------- -----------
VOTING PROCESS.
You can vote in any one of the following four ways:
a. By internet, by visiting our Web site at www.SteinRoe.com and
clicking on "Proxy Voting;"
b. By mail, by filling out and returning the enclosed proxy card;
c. By fax (not available for all shareholders; refer to enclosed
proxy insert); or
d. In person at the Meetings.
Shareholders who owned shares on the Record Date, September 29, 2000, are
entitled to vote at the Meetings. We encourage you to vote by internet, using
the 12 to 20 digit "control" number that appears on the enclosed proxy card.
Voting by internet will reduce Fund expenses by saving postage costs. If you
choose to vote by mail or by fax, and you are an individual account owner,
please sign exactly as your name appears on the proxy card. Either owner of a
joint account may sign the proxy card, but the signer's name must exactly match
the name that appears on the card. Whichever method you choose, please carefully
read the proxy statement which outlines in more detail the proposals you are
asked to vote on.
<PAGE>
NOTICE OF SPECIAL MEETINGS OF SHAREHOLDERS
TO BE HELD ON DECEMBER 27, 2000
LIBERTY-STEIN ROE FUNDS INVESTMENT TRUST LIBERTY-STEIN ROE FUNDS MUNCIPAL TRUST
Stein Roe Balanced Fund Stein Roe Intermediate Municipals Fund
Stein Roe Asia Pacific Fund
Liberty Growth Investor Fund Stein Roe High Yield Municipals
(including Stein Roe Growth Fund (including Liberty High
Investor Fund, Class S) Income Municipals Fund,
Stein Roe Growth Stock Fund Class A)
Liberty Midcap Growth Fund Stein Roe Municipal Money Market Fund
(including Stein Roe Midcap Stein Roe Managed Municipals Fund
Growth Fund, Class S)
Stein Roe Focus Fund (including
Liberty Focus Fund, Class A)
Stein Roe Capital Opportunities LIBERTY - STEIN ROE FUNDS TRUST
Fund (including Liberty Capital Stein Roe Institutional Client High
Opportunities Fund, Class A) Yield Fund
Stein Roe Small Company Growth
Fund (including Liberty Small
Company Growth Fund, Class A)
Stein Roe Young Investor Fund
Stein Roe International Fund LIBERTY-STEIN ROE ADVISOR TRUST
LIBERTY-STEIN ROE FUNDS INCOME TRUST Liberty Young Investor Fund
Liberty Growth Stock Fund
Stein Roe Income Fund (including Stein Roe Advisor High - Yield
Liberty Income Bond Fund, Municipals Fund
Class A) Stein Roe Advisor Intermediate Bond
Stein Roe Intermediate Bond Fund Fund
(including Liberty Intermediate
Bond Fund, Class A) LIBERTY-STEIN ROE INSTITUTIONAL
Stein Roe High Yield Fund FLOATING RATE INCOME FUND
(including Liberty High Yield
Bond Fund, Class A) LIBERTY FLOATING RATE FUND
Stein Roe Cash Reserves Fund
<PAGE>
NOTICE IS HEREBY GIVEN that Special Meetings of Shareholders (Meetings) of the
Funds listed above will be held at the offices of Colonial Management
Associates, Inc., One Financial Center, Boston, Massachusetts on Wednesday,
December 27, 2000 at 10:00 a.m. Eastern Time. The purpose of the Meetings is to
consider and act upon the following proposals:
1. Shareholders of each Fund: To elect Boards of Trustees for the
respective Funds' Trust, and, if applicable, SR&F Base Trust, and,
for Liberty Floating Rate Fund and Liberty - Stein Roe Institutional
Floating Rate Income Fund, to elect a Board of Managers of Stein Roe
Floating Rate Limited Liability Company;
2. Shareholders of Stein Roe International Fund on behalf of SR&F
International Portfolio: To approve a new portfolio management
agreement with Newport Fund Management, Inc.;
3. Shareholders of Stein Roe Balanced Fund on behalf of SR&F Balanced
Portfolio: To approve a new sub-advisory agreement with Unibank
Securities, Inc.;
4. Shareholders of Stein Roe Income Fund, Stein Roe High Yield Fund,
Stein Roe Intermediate Bond Fund, Stein Roe Cash Reserves Fund,
Stein Roe Intermediate Municipals Fund, Stein Roe High - Yield
Municipals Fund, Stein Roe Municipal Money Market Fund, Stein Roe
Managed Municipals Fund, Stein Roe Institutional Client High Yield
Fund, Liberty Floating Rate Fund, Liberty - Stein Roe Institutional
Floating Rate Income Fund, Stein Roe Advisor Intermediate Bond Fund
and Stein Roe Advisor High - Yield Municipals Fund: To reclassify
the fundamental investment restriction on the purchase of securities
on margin as non-fundamental, and, if applicable, to reclassify a
similar restriction for the Fund's respective SR&F Base Trust
Portfolio and for the Stein Roe Floating Rate Limited Liability
Company;
5. Shareholders of Stein Roe Intermediate Municipals Fund, Stein Roe
High - Yield Municipals Fund, Stein Roe Municipal Money Market Fund,
Stein Roe Managed Municipals Fund and Stein Roe Advisor High - Yield
Municipals Fund: To reclassify the fundamental investment restriction
on pledging securities as non-fundamental, and, if applicable, to
reclassify a similar restriction for the respective Fund's SR&F Base
Trust Portfolio;
6. Shareholders of Stein Roe Intermediate Municipals Fund, Stein Roe
High--Yield Municipals Fund, Stein Roe Municipal Money Market Fund,
Stein Roe Managed Municipals Fund, Stein Roe Advisor Intermediate
Bond Fund and Stein Roe Advisor High - Yield Municipals Fund: To
reclassify the fundamental investment restriction on the purchase of
securities from affiliates of a fund as non-fundamental, and, if
applicable, to reclassify a similar restriction for the respective
Fund's SR&F Base Trust Portfolio;
7. Shareholders of Stein Roe Municipal Money Market Fund and Stein Roe
Managed Municipals Fund: To reclassify the fundamental investment
restriction on the purchase of "other securities" as
non-fundamental, and to reclassify a similar restriction for the
respective Fund's SR&F Base Trust Portfolio;
8. Shareholders of Each Liberty - Stein Roe Mutual Fund: To modify the
fundamental investment restriction relating to borrowing, and, if
applicable, to modify a similar restriction for the respective
Fund's SR&F Base Trust Portfolio or Stein Roe Floating Rate Limited
Liability Company;
9. To transact such other business as may properly come before the
Meetings or any adjournment thereof.
By order of the Board of Trustees,
William J. Ballou, Assistant Secretary
November 13, 2000
NOTICE: YOUR VOTE IS IMPORTANT, REGARDLESS OF THE NUMBER OF SHARES YOU
OWN. YOU CAN VOTE EASILY AND QUICKLY AT OUR WEB SITE, BY
MAIL, BY FAX (NOT AVAILABLE FOR ALL SHAREHOLDERS; REFER TO
ENCLOSED PROXY INSERT) OR IN PERSON. TO VOTE THROUGH OUR WEB
SITE, JUST FOLLOW THE SIMPLE INSTRUCTIONS THAT APPEAR ON THE
ENCLOSED PROXY INSERT. PLEASE HELP YOUR LIBERTY -STEIN ROE
MUTUAL FUND AVOID THE EXPENSE OF A FOLLOW-UP MAILING BY VOTING
TODAY!
<PAGE>
SPECIAL MEETINGS OF SHAREHOLDERS
LIBERTY - STEIN ROE MUTUAL FUNDS
PROXY STATEMENT
General Information
November 13, 2000
This proxy statement, which is divided into the following four parts, is a
combined proxy statement for all of the Funds listed in the Notice of Special
Meetings of Shareholders:
Part 1. Overview. Page
Part 2. Proposals. Page
Part 3. Information Regarding Voting and Shareholder
Meetings. Page
Part 4. Fund Information. Page
If at any time you have any questions regarding the information contained in the
proxy statement, please call SCC at 1-800-732-3683. This proxy statement was
first mailed to shareholders on or about November 13, 2000.
PART 1. OVERVIEW.
The Boards of Trustees of the Trusts or Funds named in all capital letters in
the Notice of Special Meetings of Shareholders (the Trusts), have called the
Meetings for the purposes described in the accompanying Notice of Special
Meetings of Shareholders and as summarized below. The purpose of this proxy
statement is to provide you with additional information regarding the proposals
to be voted on at the Meetings and to request your proxy to vote in favor of the
proposals.
Set forth below is a summary of each proposal that the Board of Trustees
recommends that you consider:
PROPOSAL 1. ELECT BOARDS OF TRUSTEES.
We ask that you consider the election of eleven nominees as members of the Board
of Trustees. Each nominee, if elected, will serve as a trustee until the next
meetings of shareholders or until a successor is elected, or until death,
resignation, removal or retirement.
Shareholders of certain Funds will also be asked to authorize their Fund to cast
votes for the election of a Board of Trustees of the SR&F Base Trust and for the
election of a Board of Managers of the Stein Roe Floating Rate Limited Liability
Company.
PROPOSAL 2. APPROVE A NEW PORTFOLIO MANAGEMENT AGREEMENT WITH NEWPORT
FUND MANAGEMENT, INC.
We ask that shareholders of Stein Roe International Fund (on behalf of SR&F
International Portfolio, a series of SR&F Base Trust and the portfolio in which
the Fund invests its assets) approve a new portfolio management agreement with
Newport Fund Management, Inc. with the same fees and terms as the portfolio
management agreement currently in place with Stein Roe & Farnham Incorporated
(SR&F).
<PAGE>
PROPOSAL 3. APPROVE A NEW SUB-ADVISORY AGREEMENT WITH UNIBANK
SECURITIES, INC.
We ask that shareholders of Stein Roe Balanced Fund (on behalf of SR&F Balanced
Portfolio, a series of SR&F Base Trust and the portfolio in which the Fund
invests its assets) approve a new sub-advisory agreement with Unibank
Securities, Inc. to provide management services to SR&F with respect to a
portion of the SR&F Balanced Portfolio's assets.
PROPOSALS 4 THROUGH 8. As described in the following proposals, the Trustees are
recommending that shareholders approve a number of changes to certain funds'
fundamental investment restrictions, including the reclassification of certain
of these restrictions as "non-fundamental." The purpose of these changes is to
standardize the investment restrictions of all of the Liberty - Stein Roe Mutual
Funds and, in certain cases, to increase the funds' investment flexibility. By
standardizing investment restrictions for all of the Liberty - Stein Roe Mutual
Funds, SR&F will be able to more easily monitor each fund's compliance with its
investment policies. Most of these changes will have no effect on the way your
fund is managed given the fund's current investment objective and policies.
Several of the proposals request that certain fundamental investment
restrictions be made non-fundamental, so that the fund would have the ability to
modify or eliminate these restrictions without shareholder approval.
The adoption of these proposals is not contingent on the adoption of any other
proposal.
<PAGE>
PROPOSAL 4. APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL INVESTMENT
RESTRICTION ON THE PURCHASE OF SECURITIES ON MARGIN AS
NON-FUNDAMENTAL.
Each of Stein Roe Income Fund, Stein Roe High Yield Fund, Stein Roe Intermediate
Bond Fund, Stein Roe Cash Reserves Fund, Stein Roe Intermediate Municipals Fund,
Stein Roe High - Yield Municipals Fund, Stein Roe Municipal Money Market Fund,
Stein Roe Managed Municipals Fund, Stein Roe Institutional Client High Yield
Fund, Liberty Floating Rate Fund, Liberty - Stein Roe Institutional Floating
Rate Income Fund, Stein Roe Advisor Intermediate Bond Fund and Stein Roe Advisor
High - Yield Municipals Fund has adopted a fundamental investment restriction
prohibiting the purchase of securities on margin, except for the use of
short-term credit necessary for clearance of purchases and sales of portfolio
securities. The Stein Roe Intermediate Municipals Fund, Stein Roe Managed
Municipals Fund and Stein Roe High - Yield Municipals Fund may make margin
deposits in connection with futures and options transactions. This restriction
was made a restriction because of regulatory and business conditions at the
time. With the passage of time and the change in regulatory standards, this
restriction is no longer required to be stated as a fundamental restriction.
Therefore, in order to simplify and modernize the Funds' investment
restrictions, the Funds' Board of Trustees recommends reclassifying this
restriction as "non-fundamental."
Shareholders of certain Funds will also be asked to authorize their Fund to
approve a similar amendment to the fundamental investment restrictions of the
respective portfolio of SR&F Base Trust and the Stein Roe Floating Rate Limited
Liability Company.
<PAGE>
PROPOSAL 5. APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL INVESTMENT
RESTRICTION ON THE PLEDGING OF SECURITIES AS NON-
FUNDAMENTAL.
Each of Stein Roe Intermediate Municipals Fund, Stein Roe High - Yield
Municipals Fund, Stein Roe Municipal Money Market Fund, Stein Roe Managed
Municipals Fund, Stein Roe Advisor Intermediate Bond Fund and Stein Roe Advisor
High - Yield Municipals Fund has adopted a fundamental investment restriction
prohibiting mortgaging, pledging, hypothecating or in any manner transferring,
as security for indebtedness, any securities owned or held by it except (a) as
may be necessary in connection with borrowings (b) as may be necessary to enter
into futures and options transactions. This restriction was made a restriction
because of regulatory and business conditions at the time. With the passage of
time and the change in regulatory standards, this restriction is no longer
required to be stated as a fundamental restriction. Therefore, in order to
simplify and modernize the Funds' investment restrictions, the Funds' Board of
Trustees recommends reclassifying this restriction as "non-fundamental."
Shareholders of certain Funds will also be asked to authorize their Fund to
approve a similar amendment to the fundamental investment restrictions of the
respective portfolio of SR&F Base Trust.
<PAGE>
PROPOSAL 6. APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL
INVESTMENT RESTRICTION ON THE PURCHASE OF SECURITIES FROM
AFFILIATES OF THE FUND AS NON-FUNDAMENTAL.
Each of Stein Roe Intermediate Municipals Fund, Stein Roe High - Yield
Municipals Fund, Stein Roe Municipal Money Market Fund, Stein Roe Managed
Municipals Fund, Stein Roe Advisor Intermediate Bond Fund and Stein Roe Advisor
High - Yield Municipals Fund has adopted a fundamental investment restriction
prohibiting the purchase of portfolio securities for the Fund from, or sell
portfolio securities to, any of the officers, directors, or trustees of the
Funds or of its investment advisor. This restriction was made a restriction
because of regulatory and business conditions at the time. With the passage of
time and the change in regulatory standards, this restriction is no longer
required to be stated as a fundamental investment restriction. Therefore, in
order to simplify and modernize the Funds' investment restrictions, the Funds'
Board of Trustees recommends reclassifying this restriction as non-fundamental.
Shareholders of certain Funds will also be asked to authorize their Fund to
approve a similar amendment to the fundamental investment restrictions of the
respective portfolio of SR&F Base Trust.
<PAGE>
PROPOSAL 7. APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL INVESTMENT
RESTRICTION ON THE PURCHASE OF OTHER SECURITIES AS
NON-FUNDAMENTAL.
Each of Stein Roe Municipal Money Market Fund and Stein Roe Managed Municipals
Fund has adopted a fundamental investment restriction prohibiting the purchase
of any securities other than certain securities described in its Statement of
Additional Information. This restriction was made a restriction because of
regulatory and business conditions at the time. With the passage of time and the
change in regulatory standards, this restriction is no longer required to be
stated as a fundamental restriction. Therefore, in order to simplify and
modernize the Funds' investment restrictions, the Funds' Board of Trustees
recommends reclassifying this restriction as non-fundamental.
Shareholders of each Fund will also be asked to authorize their Fund to approve
a similar amendment to the fundamental investment restrictions of the respective
portfolio of SR&F Base Trust.
<PAGE>
PROPOSAL 8. APPROVE THE MODIFICATION OF THE FUNDAMENTAL INVESTMENT
RESTRICTION RELATING TO BORROWING.
Each Fund has adopted a fundamental investment restriction relating to
borrowing. This restriction was adopted a number of years ago in response to
certain regulatory requirements or business and industry conditions that no
longer exist. Therefore, in order to allow the Funds to borrow to the extent
permitted by the Investment Company Act of 1940, the Funds' Board of Trustees
recommends that this restriction be modified.
Shareholders of certain Funds will also be asked to authorize their Fund to
approve a similar amendment to the fundamental investment restrictions of the
respective portfolio of SR&F Base Trust or the Stein Roe Floating Rate Limited
Liability Company.
PART 2. PROPOSALS.
PROPOSAL 1.(a) ELECT BOARDS OF TRUSTEES.
(b) Authorize Stein Roe Income Fund, Stein Roe Municipal
Money Market Fund, Stein Roe High - Yield Municipals
Fund, Stein Roe Advisor High -Yield Municipals Fund,
Stein Roe Cash Reserves Fund, Stein Roe Intermediate Bond
Fund, Stein Roe Advisor Intermediate Bond Fund, Stein Roe
High Yield Fund, Stein Roe Balanced Fund, Stein Roe
Growth Stock Fund, Liberty Growth Stock Fund, Stein Roe
Growth Investor Fund, Stein Roe Young Investor Fund,
Liberty Young Investor Fund and Stein Roe International
Fund to cast votes for the election of a board of
trustees of SR&F Base Trust.
(c) Authorize Liberty Floating Rate Fund and Liberty - Stein
Roe Institutional Floating Rate Income Fund to cast
votes for the election of a board of managers of Stein
Roe Floating Rate Limited Liability Company
The purpose of this proposal is to elect six new members as well as five of the
currently serving members, of the Boards of each Trust and of the Board of
Managers of Stein Roe Floating Rate Limited Liability Company. All of the
nominees listed below, except for the proposed six new members (Ms. Verville and
Messrs. Lowry, Macera, Mayer, Neuhauser and Stitzel), are currently members of
those Boards, as well as one other Liberty - Stein Roe Trust, and have served in
that capacity continuously since originally elected or appointed. All of the
currently serving members, other than Ms. Kelly and Mr. Palombo, have been
previously elected to those Boards by the shareholders. The proposed six new
members currently serve on the Boards of Trustees of ten Liberty closed-end
funds and a number of Liberty open-end trusts, and were recommended for election
as Trustees of the Liberty - Stein Roe Mutual Funds by the Boards of Trustees of
the Liberty - Stein Roe Mutual Funds at a special meeting held on October 17,
2000. Each of the nominees elected will serve as a Trustee of the Liberty -
Stein Roe Mutual Funds or until a successor is elected and qualified or until
death, retirement, resignation or removal.
In addition to voting for a Board of Trustees of their respective Trusts,
shareholders of Stein Roe Income Fund, Stein Roe Municipal Money Market Fund,
Stein Roe High - Yield Municipals Fund, Stein Roe Cash Reserves Fund, Stein Roe
Intermediate Bond Fund, Stein Roe High Yield Fund, Stein Roe Balanced Fund,
Stein Roe Growth Stock Fund, Stein Roe Growth Investor Fund, Stein Roe Young
Investor Fund and Stein Roe International Fund are voting to direct their
respective Funds to cast votes for the election of an identical slate for the
Board of Trustees of SR&F Base Trust.
In addition to voting for a Board of Trustees of their respective Trusts,
shareholders of Liberty Floating Rate Fund and Liberty - Stein Roe Institutional
Floating Rate Income Fund are voting to direct their Fund to cast votes for or
against the election of an identical slate for the Board of Managers of Stein
Roe Floating Rate Limited Liability Company.
The following table sets forth certain information about each nominee including
age as of October 31, 2000 and principal occupation during the past five years:
Year of
Election or
Recommended
for Election
Nominee Name & Age Principal Occupation (1) and Directorships as Trustee
Douglas A. Hacker Executive Vice President and Chief 1996
(43) Financial Officer of UAL, Inc. (airline)
since July, 1999; Senior Vice President
and Chief Financial Officer of UAL, Inc.
prior thereto.
Janet Langford Kelly Executive Vice President-Corporate 1996
(41) Development, General Counsel, and
Secretary, Kellogg Company, since
September, 1999; Senior Vice
President, Secretary and General Counsel,
Sara Lee Corporation (branded,
packaged, consumer-products manufacturer)
prior thereto.
Richard W. Lowry Private Investor since 1987 (formerly New Nominee
(64) Chairman and Chief Executive Officer,
U.S. Plywood Corporation).
Salvatore Macera Private Investor since 1981 (formerly New Nominee
(69) Executive Vice President and Director of
Itek Corporation (electronics).
William E. Mayer(2) Partner, Park Avenue Equity Partners New Nominee
(60) (venture capital) since November, 1996;
Dean, College of Business and Management,
University of Maryland prior thereto;
Director, Johns Manville, Lee
Enterprises and WR Hambrecht & Co.
Charles R. Nelson Van Voorhis Professor, Department of 1981
(57) Economics, University of Washington;
consultant on economic and statistical
matters.
John J. Neuhauser Academic Vice President and Dean of New Nominee
(57) Faculties, Boston College since August,
1999; Dean, Boston College School of
Management prior thereto.
Joseph R. Palombo(3) Chairman of the Board of 2000
(47) Trustees/Managers of each Trust and Stein
Roe Floating Rate Limited Liability Company
and Liberty Trusts; Executive Vice President
and Director of Colonial and Executive
Vice President and Chief Administrative
Officer of Liberty Funds Group (LFG)
since April, 1999; Vice President of
the Funds from April 1999 to October 2000;
Chief Operating Officer, Putnam Mutual
Funds prior thereto.
Thomas E. Stitzel Business Consultant since 1999; Professor New Nominee
(64) of Finance and Dean prior thereto,
College of Business, Boise State
University prior thereto; Chartered
Financial Analyst.
<PAGE>
Year of
Election or
Recommended
for Election
Nominee Name & Age Principal Occupation (1) and Directorships as Trustee
Thomas C. Theobald Managing Director, William Blair Capital 1996
(62) Partners (private equity investing) since
1994; (formerly Chief Executive Officer
and Chairman of the Board of Directors,
Continental Bank Corporation).
Anne-Lee Verville Consultant since 1997; General Manager, New Nominee
(54) Global Education Industry prior thereto,
(formerly President, Applications
Solutions Division, IBM Corporation
(global education and global
applications)).
---------------------------
<PAGE>
(1) Except as otherwise noted, each individual has held the office indicated
or other offices in the same company for the last five years.
(2) Mr. Mayer is an "interested person," as defined in the Investment
Company Act of 1940 (1940 Act) because of his affiliation with WR
Hambrecht & Co. (a registered broker-dealer).
(3) Mr. Palombo is an "interested person," as defined in the 1940 Act
because of his affiliation with Liberty Financial Companies, Inc.
(Liberty Financial), the parent company of SR&F and an indirect
majority-owned subsidiary of Liberty Mutual Insurance Company.
Trustees' Compensation; Meetings and Committees
A. Trustees' Compensation. The Boards will serve as Trustees or Managers of the
Funds, Stein Roe Floating Rate Limited Liability Company, seven Liberty Trusts
and nine Liberty closed-end funds, for which each Trustee will receive an annual
retainer of $45,000 and attendance fees of $8,000 for each regular joint Board
meeting and $1,000 for each special joint Board meeting. Committee chairs
receive an annual retainer of $5,000 and $1,000 for each special committee
meeting attended on a day other than a regular joint Board meeting day. Other
committee members receive an annual retainer of $1,000 and $1,000 for each
special committee meeting attended on a day other than a regular joint Board
meeting day. Two-thirds of the Trustees' fees are allocated among the Liberty -
Stein Roe Mutual Funds based on each their relative net assets, and one-third of
the fees are divided equally among the Liberty - Stein Roe Mutual Funds.
The Liberty - Stein Roe Mutual Funds do not currently provide pension or
retirement plan benefits to the Trustees. However, William W. Boyd. and John A.
Bacon, two of the Trustees currently serving on the Boards of the Trusts and of
Stein Roe Floating Rate Limited Liability Company (the Stein Roe Trusts) who are
not continuing on the Boards, will receive certain payments after completing
their service on the Boards. Mr. Boyd will receive a payment of $50,000 upon his
departure. Mr. Bacon will receive payments at an annual rate equal to the 1999
compensation of the Trustees of the Stein Roe Trusts until he would otherwise
have retired at age 74 on December 31, 2001. The payments to Mr. Bacon will be
made quarterly, beginning in 2001. Liberty Financial and the Stein Roe Trusts
will each bear one-half of the cost of the payments to Messrs. Boyd and Bacon;
the Stein Roe Trust's portion of the payments will be allocated among the Funds
of the Trusts based on each fund's share of the Trustee fees for 2000.
Further information concerning the Trustees' compensation is included in "Part
4. Fund Information" below.
B. Meetings and Committees. The current Board of Trustees of the Stein Roe
Trusts consists of two interested and six non-interested Trustees.
Audit Committee. The Audit Committee of each Stein Roe Trust, consisting of
Messrs. Hacker (Chairman), Bacon, Boyd, Nelson and Theobald and Ms. Kelly, all
of whom are non-interested Trustees, recommends to the Board the independent
accountants to serve as auditors, reviews with the independent accountants the
results of the auditing engagement and internal accounting procedures and
considers the independence of the independent accountants, the range of their
audit services and their fees.
Compensation Committee. The Compensation Committee of each Stein Roe Trust,
consisting of Messrs. Boyd and Nelson, both of whom are non-interested Trustees,
reviews compensation of the board members who are not affiliated with the
investment adviser.
Nominating Committee. The Nominating Committee of each Stein Roe Trust,
consisting of Messrs. Boyd and Nelson, both of whom are non-interested Trustees,
recommends to the Board, among other things, nominees for trustee and for
appointments to various committees. The Committee will consider candidates for
trustee recommended by shareholders. Written recommendations with supporting
information should be directed to the Committee in care of your Fund.
Executive Committee. The Executive Committee of each Stein Roe Trust, consisting
of Mr. Boyd, a non-interested Trustee, and Mr. Cook, an interested Trustee, is
authorized to take certain actions delegated to it by the full Board and to
exercise the full powers of the Board, with some exceptions, between Board
meetings.
Record of Board and Committee Meetings. The respective Boards and the Committees
held the following numbers of meetings during the following fiscal years ended:
June 30, 2000 of Liberty - Stein Roe Funds Income Trust, Liberty - Stein Roe
Funds Municipal Trust, Liberty - Stein Roe Funds Trust and Liberty - Stein Roe
Advisor Trust (excluding Liberty Young Investor Fund and Liberty Growth Stock
Fund), SR&F Base Trust (excluding SR&F Growth & Income Portfolio, SR&F
International Portfolio, SR&F Growth Investor Portfolio, SR&F Balanced
Portfolio, SR&F Growth Stock Portfolio and SR&F Disciplined Stock Portfolio)
(6/30/00 Funds); August 31, 2000 of Liberty Floating Rate Fund and Liberty -
Stein Roe Institutional Floating Rate Income Fund (8/31/00 Funds); and September
30, 2000 of Liberty - Stein Roe Funds Investment Trust, Liberty - Stein Roe
Advisor Trust (excluding Stein Roe Advisor Intermediate Bond Fund and Stein Roe
Advisor High - Yield Municipals Fund) and SR&F Base Trust (excluding SR&F Cash
Reserves Portfolio, SR&F Municipal Money Market Portfolio, SR&F High - Yield
Municipals Portfolio, SR&F Intermediate Bond Portfolio, SR&F High Yield
Portfolio and SR&F Income Portfolio) (9/30/00 Funds) as follows:
------------------------ ---------------- --------------- ----------------
6/30/00 Funds 8/31/00 Funds 9/30/00 Funds
------------------------ ---------------- --------------- ----------------
------------------------ ---------------- --------------- ----------------
Board of 6 5 5
Trustees/Managers
------------------------ ---------------- --------------- ----------------
------------------------ ---------------- --------------- ----------------
Audit Committee 4 4 4
------------------------ ---------------- --------------- ----------------
------------------------ ---------------- --------------- ----------------
Compensation Committee
1 0 0
------------------------ ---------------- --------------- ----------------
------------------------ ---------------- --------------- ----------------
Nominating Committee 0 0 0
------------------------ ---------------- --------------- ----------------
------------------------ ---------------- --------------- ----------------
Executive Committee 2 2 2
------------------------ ---------------- --------------- ----------------
During the most recently completed fiscal years, each of the current Trustees
attended more than 75% of the meetings of the Board and the committees of which
such Trustee is a member.
If any nominee listed above becomes unavailable for election, the enclosed proxy
card may be voted for a substitute nominee in the discretion of the proxy
holder(s).
THE BOARD OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF EACH FUND VOTE FOR
EACH NOMINEE IN PROPOSAL 1.
REQUIRED VOTE FOR PROPOSAL 1
For each Stein Roe Trust, a plurality of the votes cast at the Meetings, if a
quorum is represented, is required for the election of each Trustee.
<PAGE>
PROPOSAL 2. APPROVE A NEW PORTFOLIO MANAGEMENT AGREEMENT WITH
NEWPORT FUND MANAGEMENT, INC. (Newport) (Stein Roe
International Fund, herein referred to for purposes of
this Proposal 2 as the "Fund")
A. Description of Proposal. The Board of Trustees of the Liberty - Stein Roe
Investment Trust (Investment Trust) propose that the shareholders of the Fund
approve a new Management Agreement on behalf of SR&F International Portfolio
(International Portfolio), a series of SR&F Base Trust and the portfolio into
which the Fund invests its assets, and Newport, substantially in the form set
forth in Appendix A to this proxy statement. Newport is an affiliate of SR&F,
the current investment advisor of the International Portfolio. The new
Management Agreement is identical to the existing Management Agreement, except
that Newport will now provide investment management services to the
International Portfolio. Newport will engage CMA, an affiliate of SR&F, at
Newport's own expense to provide administrative services to the International
Portfolio.
The Fund will vote its shares of the International Portfolio for or against the
new Management Agreement proportionately to the instructions to vote for and
against received from Fund shareholders.
The existing Management Agreement for the International Portfolio was most
recently approved by the shareholders of the Fund on July 18, 1996 as part of
the conversion of the Fund to a master fund-feeder fund structure.
The existing Management Agreement for the International Portfolio provides for
monthly compensation to SR&F at the annual rate of 0.85% of the International
Portfolio's daily net assets. For the fiscal year ended September 30, 1999, the
aggregate fees paid by the International Portfolio to SR&F under the existing
Management Agreement was $1,024,073.
Upon shareholder approval of the new Management Agreement, Newport will provide
investment management services to the International Portfolio and be responsible
for providing administrative services to the International Portfolio. Newport
will be paid at the same annual rate for providing these services as was paid
under the existing Management Agreement.
It is important to note that the annual rates payable by the International
Portfolio for investment management and administrative services will not
increase or decrease as a result of the International Portfolio entering into a
New Management Agreement on behalf of the International Portfolio.
B. Consideration by the Board of Trustees. The Board of Trustees of Investment
Trust met on February 8, 2000, to consider, among other things, the proposed
change of the International Portfolio's investment advisor. After due
consideration, the Board of Trustees, including all Trustees who were not
interested and who had no direct or indirect financial interests in the
operation of the new Management Agreements or in any agreements related thereto,
unanimously approved the new Management Agreement, subject to shareholder
approval. The Board of Trustees concluded that the new Management Agreement is
fair and reasonable, and is in the best interest of shareholders of the Fund.
During the course of their deliberations, the Board of Trustees considered a
variety of factors. The Board of Trustees considered the fact that the new
Management Agreement with Newport would not impact the current fee structure of
the existing Management Agreement. The Board of Trustees, however, focused
specifically on the experience and size of Newport's international investment
management team, Newport's growth investment style, Newport's expertise and
proven performance as an investment advisor of international and global growth
funds similar to the Fund, as well as the increased complexity of the
international securities markets.
C. Comparison and Impact of the Existing and New Management Agreements. The new
Management Agreement is identical to the existing Management Agreement except
for its effective date and the named investment advisor. The new Management
Agreement does not differ from the existing Management Agreement with respect to
the investment advisor's responsibilities or duties to the International
Portfolio, or the fees payable to the investment advisor for providing those
services.
Compensation under the existing and new Management Agreements is subject to
reduction if in any year the expenses of the International Portfolio exceed the
limits on investment company expenses imposed by any statute or regulatory
authority of any jurisdiction in which shares of the Fund are qualified for
offer and sale. No such limits currently are in effect.
Both the existing and new Management Agreements provide that, subject to the
Board of Trustees' supervision, the investment advisor will manage the assets of
the International Portfolio in accordance with the Prospectus and Statement of
Additional Information of the Fund, purchase and sell securities and other
investments on behalf of the International Portfolio, and report results to the
Board of Trustees periodically. Any liability of the investment advisor to the
International Portfolio, the Trust, the Fund and/or their shareholders is
limited to situations involving the advisor's willful misfeasance, bad faith,
gross negligence or reckless disregard of its duties.
The new Management Agreement provides that it will continue in effect until June
30, 2002 and thereafter so long as it is approved annually in accordance with
the Investment Company Act of 1940, as amended (1940 Act). The existing and new
Management Agreements may be terminated at any time by the advisor, by the Board
of Trustees or by vote of a majority of the outstanding voting securities of the
Fund without penalty on 60 days' written notice, and shall automatically
terminate upon any assignment. The new Management Agreement may be amended only
by the affirmative vote of the holders of a "majority of the outstanding voting
securities" of the Fund.
D. Comparison of Investment Objectives and Strategies. Newport will not change
the investment objective or strategy of the International Portfolio.
E. Information concerning SR&F, Newport and their affiliates.
Stein Roe & Farnham Incorporated
SR&F, located at One South Wacker Drive, Chicago, Illinois 60606, is a
wholly-owned, indirect subsidiary of Liberty Financial Companies, Inc. (Liberty
Financial). Liberty Financial is a direct majority-owned subsidiary of LFC
Management Corporation, which in turn is a direct wholly-owned subsidiary of
Liberty Corporate Holdings, Inc., which in turn is a direct wholly-owned
subsidiary of LFC Holdings, Inc., which in turn is a direct wholly-owned
subsidiary of Liberty Mutual Equity Corporation, which in turn is a direct
wholly-owned subsidiary of Liberty Mutual Insurance Company (Liberty Mutual). As
of August 31, 2000, LFC Management Corporation owned 71.12% of Liberty
Financial. Liberty Financial is a diversified and integrated asset management
organization which provides insurance and investment products to individuals and
institutions. The principal executive offices of Liberty Financial, LFC
Management Corporation, Liberty Corporate Holdings, Inc. and LFC Holdings, Inc.
are located at 600 Atlantic Avenue, 24th Floor, Boston, Massachusetts 02210.
Liberty Mutual is an underwriter of workers' compensation insurance and a
property and casualty insurer in the United States, organized under the laws of
Massachusetts in 1912. The principal business activities of Liberty Mutual's
subsidiaries other than Liberty Financial are property-casualty insurance,
insurance services and life insurance (including group life and health insurance
products) marketed through its own sales force. The principal executive offices
of Liberty Mutual and Liberty Mutual Equity Corporation are located at 175
Berkeley Street, Boston, Massachusetts 02117.
SR&F and its predecessor have been providing investment advisory services since
1932. SR&F acts as investment advisor to wealthy individuals, trustees, pension
and profit sharing plans, charitable organizations and other institutional
investors.
The directors of SR&F are Stephen E. Gibson, J. Andrew Hilbert, C. Allen
Merritt, Jr. and Joseph R. Palombo. Mr. Gibson is Assistant Chairman of SR&F and
President of SR&F's Mutual Funds division. Mr. Hilbert is Senior Vice President
and Chief Financial Officer of Liberty Financial. Mr. Merritt is Chief Operating
Officer of Liberty Financial. Mr. Palombo is Executive Vice President of SR&F.
The principal executive officers of SR&F are Messrs. Stephen E. Gibson and
William E. Rankin. Mr. Rankin is President of SR&F's Private Capital Management
division. The business address of Messrs. Gibson and Palombo is One Financial
Center, Boston, MA 02111; that of Messrs. Hilbert and Merritt is 600 Atlantic
Avenue, Federal Reserve Plaza, Boston, MA 02210; and that of Mr. Rankin is One
South Wacker Drive, Chicago, IL 60606.
In addition, the following individuals who are officers of the Trust are also
officers or directors of SR&F: William D. Andrews, David P. Brady, Daniel K.
Cantor, Kevin M. Carome, Denise E. Chasmer, William M. Garrison, Stephen E.
Gibson, Erik P. Gustafson, Loren A. Hansen, Harvey B. Hirschhorn, Lynn C. Maddux
and Arthur J. McQueen.
SR&F currently provides administrative services to the Fund under a separate
administrative agreement. Under the administrative agreement, the fees payable
to SR&F by the Fund are at the annual rate of 0.15% of the Fund's average net
assets. For the fiscal year ended September 30, 1999, the aggregate
administrative fee paid by the Fund to SR&F was $180,363. The administrative
agreement provides that SR&F will reimburse the Fund to the extent that total
annual expenses of the Fund (including fees paid to SR&F, but excluding taxes,
interest, commissions and other normal charges incident to the purchase and sale
of portfolio securities) exceed the applicable limits prescribed by any state in
which shares of the Fund are being offered for sale to the public. However, SR&F
is not required to reimburse the Fund an amount in excess of fees paid by the
Fund under the administrative agreement for that year. Upon shareholder approval
of the Management Agreement, the Fund, under the existing administrative
agreement, will continue to pay the same fee to SR&F at the annual rate of 0.15%
of the Fund's average net assets. Under the existing administration agreement,
the SR&F may make use of its affiliated companies in connection with the
administrative services to be provided to the Fund under the contract.
Pursuant to a separate agreement with Investment Trust, SR&F receives a fee for
performing certain bookkeeping and accounting services. For such services, SR&F
receives from the Fund a fee at the annual rate of $25,000 plus 0.0025 of 1% of
the Fund's average net assets over $50 million. During the fiscal year ended
September 30, 1999, SR&F received $26,755 from the Fund for services performed
under that Agreement.
SteinRoe Services, Inc. (SSI), One South Wacker Drive, Chicago, IL 60606, is the
agent of the Trust for the transfer of shares, disbursement of dividends, and
maintenance of shareholder accounting records. For performing these services,
SSI receives from the Fund a fee based at the annual rate of 0.22% of the Fund's
average net assets. For the fiscal year ended September 30, 1999, the aggregate
fees paid by to SSI on behalf of the Fund were approximately $6,000.
Liberty Funds Distributor, Inc. (LFDI), a wholly-owned, indirect subsidiary of
Liberty Financial located at One Financial Center, Boston, MA 02111, acts as
distributor for the Fund under a distribution agreement.
SR&F may use the services of AlphaTrade Inc. (AlphaTrade), a registered
broker-dealer subsidiary of Liberty Financial, when buying or selling certain
equity securities for the International Portfolio pursuant to procedures adopted
by the Trustees and Rule 17e-1 under the 1940 Act. For the fiscal year ended
September 30, 1999, no commissions were paid by SR&F to AlphaTrade on behalf of
the International Portfolio.
In addition to the fees described above, the Fund pays all of its expenses not
assumed by its advisor, including, without limitation, fees and expenses of the
independent Trustees, interest charges, taxes, brokerage commissions, expenses
of issue or redemption of shares, fees and expenses of registering and
qualifying shares of the Fund for distribution under federal and state laws and
regulations, custodial, auditing and legal expenses, expenses of determining net
asset value of the Fund's shares, expenses of providing reports to shareholders,
proxy statements and proxies to existing shareholders, and its proportionate
share of insurance premiums and professional association dues or assessments.
The Fund also is responsible for such non-recurring expenses as may arise,
including litigation in which the Fund may be a party, and other expenses as
determined by the Board of Trustees. The Fund may have an obligation to
indemnify its officers and Trustees with respect to litigation.
Newport Fund Management, Inc.
Newport is a direct majority-owned subsidiary of Newport Pacific Management,
Inc. (Newport Pacific), 580 California Street, San Francisco, CA 94104. Newport
Pacific is a direct wholly-owned subsidiary of Liberty Newport Holdings, Limited
(Liberty Newport), which in turn is a direct wholly-owned subsidiary of Liberty
Financial, which in turn is a direct majority-owned subsidiary of Liberty
Corporate Holdings, Inc., which in turn is a direct wholly-owned subsidiary of
LFC Holdings, Inc., which in turn is a direct wholly-owned subsidiary of Liberty
Mutual Equity Corporation, which in turn is a direct wholly-owned subsidiary of
Liberty Mutual.
The directors of Newport are Lindsay Cook, J. Andrew Hilbert, John M. Mussey and
Thomas R. Tuttle. Mr. Cook is an Executive Vice President of Liberty Financial.
Mr. Hilbert is Senior Vice President and Chief Financial Officer of Liberty
Financial. Mr. Mussey is Vice Chairman of Newport and Newport Pacific. Thomas R.
Tuttle is the President and Chief Executive Officer of Newport. He also is
President of Newport Pacific. The business address of Messrs. Cook and Hilbert
is 600 Atlantic Avenue, Federal Reserve Plaza, Boston, Massachusetts 02210; and
that of Messrs. Mussey and Tuttle is 580 California Street, San Francisco,
California 94104.
F. Other Funds Managed by Newport. In addition to the services proposed to be
provided by Newport to the Fund, Newport also provides management and other
services and facilities to other investment companies. Information with respect
to the assets of and management fees payable to Newport by funds having
investment objectives similar to those of the Fund is set forth below:
---------------------------------------------- ----------------- ---------------
Total Net Assets
Annual 9/30/00
Fund Management Fee (in Thousands)
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Liberty Newport Tiger Fund 1.00%(a) $954,900
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Stein Roe Small Cap Tiger Fund 1.15%(b) 10,400
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Liberty Newport Japan Opportunities Fund 0.95%(b) 90,500
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Liberty Newport Greater China Fund 1.15%(b) 66,800
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Liberty Newport Asia Pacific Fund 1.00%(b) 17,700
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Liberty Newport Europe Fund 0.70%(d) 13,000
---------------------------------------------- ----------------- ---------------
---------------------------------------------- ----------------- ---------------
Stein Roe Asia Pacific Fund 0.55%(c) 5,300
---------------------------------------------- ----------------- ---------------
(a) The management fee is 1.00% for the first $100 million of average net
assets; 0.75% for the next $1.4 billion; 0.70% for the next $1 billion; and
0.65% over $2.5 billion.
(b) Newport has voluntarily agreed to waive a certain portion of the management
fee and reimburse the fund for certain expenses. Newport may terminate the
fee waiver and expense reimbursement arrangement at any time.
(c) SR&F is the advisor to the fund and receives an annual fee of 0.95%.
Newport receives 0.55% as sub-advisor to the fund.
(d) The fund commenced operations on November 1, 1999 and has not paid
management fees to Newport.
THE BOARD OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUND VOTE FOR
PROPOSAL 2.
<PAGE>
REQUIRED VOTE FOR PROPOSAL 2
Approval of the new Management Agreement for the Fund will require the
affirmative vote of a "majority of the outstanding voting securities" of the
Fund (as defined in the 1940 Act), which means the affirmative vote of the
lesser of (1) more than 50% of the outstanding shares of the Fund or (2) 67% or
more of the shares of the Fund present at the Meeting if more than 50% of the
outstanding shares of the Fund are represented at the Meeting in person or by
proxy.
PROPOSAL 3. APPROVE A SUB-ADVISORY AGREEMENT
WITH UNIBANK SECURITIES, INC. (Stein Roe Balanced Fund -
herein referred to for purposes of this Proposal 3 as the
"Fund")
A. Description of Proposal. The Board of Trustees of Investment Trust (Trust)
proposes that the shareholders of the Fund approve a Sub-Advisory Agreement,
substantially in the form set forth in Appendix B, between Stein Roe & Farnham
Incorporated (SR&F), the investment advisor to SR&F Balanced Portfolio (Balanced
Portfolio), a series of SR&F Base Trust and the portfolio in which the Fund
invests all of its assets, and Unibank Securities, Inc., which does business in
the U.S. as Unibank Investment Management (Unibank). Under the terms of the
Sub-Advisory Agreement, Unibank will manage a portion of the assets of Balanced
Portfolio, as determined by SR&F, in accordance with the investment objectives,
policies and limitations of the Fund as set forth in the Fund's Prospectus and
Statement of Additional Information. Unibank will invest primarily in large
capitalization, non-U.S. equity securities for Balanced Portfolio. Approval of
the Sub-Advisory Agreement will not affect the amount of management fees paid by
Balanced Portfolio to SR&F. SR&F, not the Fund or Balanced Portfolio, pays
sub-advisory fees to Unibank under the Sub-Advisory Agreement.
The Fund will vote its shares of the Balanced Portfolio for or against the
Sub-Advisory Agreement proportionately to the instructions to vote for and
against received from Fund shareholders.
Currently, SR&F manages the investment of the assets of Balanced Portfolio
pursuant to a Management Agreement between SR&F Base Trust and SR&F, dated
August 15, 1995, as amended, which was most recently approved by shareholders of
the Fund on . SR&F receives monthly fees from Balanced Portfolio at the annual
rate of 0.550% on the first $500 million of average daily net assets, 0.500% on
the next $500 million, and 0.450% on average daily net assets in excess of $1
billion. For the fiscal year ended September 30, 1999, the aggregate fees paid
by Balanced Portfolio to SR&F under the Management Agreement were $1,444,813.
B. Consideration by the Board of Trustees. The Board of Trustees of Investment
Trust and of SR&F Base Trust met on October 17, 2000, to consider, among other
things, the proposed retention by SR&F of Unibank as a sub-advisor to the
Balanced Portfolio. After due consideration, the Boards, including all Trustees
who were not interested and who had no direct or indirect financial interests in
the operation of the Sub-Advisory Agreement or in any agreements related
thereto, unanimously approved the Sub-Advisory Agreement, subject to shareholder
approval. The Boards concluded that the Sub-Advisory Agreement is fair and
reasonable, and is in the best interest of the shareholders of the Fund and of
Balanced Portfolio. During the course of their deliberations, the Boards
considered a variety of factors, including that the Sub-Advisory Agreement with
Unibank will not affect the fees paid by the Fund or Balanced Portfolio under
the Management Agreement. Specifically, the Board of Trustees focused on the
experience and proven performance of Unibank as an investment advisor to
international and global funds as well as on the increased complexity of the
international securities markets.
C. Description of Sub-Advisory Agreement. Pursuant to the terms of the
Sub-Advisory Agreement, Unibank, under the supervision of the Board of Trustees
of SR&F Base Trust and SR&F, will: (a) manage the investment of a portion of the
assets of Balanced Portfolio, as determined by SR&F, in accordance with the
investment objectives, policies and limitations of Balanced Portfolio as stated
in the Fund's then current Prospectus and Statement of Additional Information;
(b) place purchase and sale orders for portfolio transactions for Balanced
Portfolio; (c) evaluate such economic, statistical and financial information and
undertaking such investment research as it shall deem advisable; (d) employ
professional portfolio managers to provide research services to Balanced
Portfolio; and (e) report results to the Board of Trustees of SR&F Base Trust.
For the services to be rendered by Unibank under the Sub-Advisory Agreement,
SR&F will pay Unibank a monthly fee at the annual rate of 0.40% of the average
daily net asset value of the portion of Balanced Portfolio's assets managed by
Unibank. Any liability of Unibank to the Trust, the Fund and/or its shareholders
is limited to situations involving Unibank's own willful misfeasance, bad faith
or gross negligence in the performance of its duties.
The Sub-Advisory Agreement provides that it will remain in effect until June 30,
2002 and from year to year thereafter so long as its continuance is specifically
approved at least annually by the Board of Trustees of SR&F Base Trust or by
vote of a majority of the outstanding voting securities of the Fund. The
Sub-Advisory Agreement may be terminated at any time without penalty on sixty
days' written notice to Unibank by vote of the Board of Trustees, by vote of a
majority of the outstanding voting securities of the Fund, or by the Adviser, or
by Unibank on ninety days' written notice to SR&F and SR&F Base Trust. The
Sub-Advisory Agreement will terminate automatically in the event of its
assignment or in the event that the Management Agreement for the Balanced
Portfolio shall have terminated for any reason. The Sub-Advisory Agreement may
be amended only in accordance with the Investment Company Act of 1940, as
amended (1940 Act).
The preceding description of the proposed Sub-Advisory Agreement is qualified in
its entirety by reference to the form of Sub-Advisory Agreement that is set
forth in Appendix B to this proxy statement.
D. Information concerning SR&F, Unibank and their affiliates.
SR&F
Information relating to SR&F, its owners, directors and officers is listed above
under Proposal 2, Part E. appearing on page ___.
SR&F currently provides administrative services to the Fund under a separate
administrative agreement. Under the administrative agreement, the fees payable
to SR&F by the Fund are at the annual rate of 0.150% of the first $500 million
of average net assets, 0.125% on the next $500 million, and 0.100% thereafter.
For the fiscal year ended September 30, 1999, the aggregate administrative fee
payable by the Fund to SR&F was $393,529. The administrative agreement provides
that SR&F will reimburse the Fund to the extent that total annual expenses of
the Fund (including fees paid to SR&F, but excluding taxes, interest,
commissions and other normal charges incident to the purchase and sale of
portfolio securities, and expenses of litigation to the extent permitted under
applicable state law) exceed the applicable limits prescribed by any state in
which shares of the Fund are being offered for sale to the public. However, SR&F
is not required to reimburse the Fund an amount in excess of fees paid by the
Fund under the administrative agreement for that year. Upon shareholder approval
of the Sub-Advisory Agreement, the Fund, under the existing administrative
agreement, will continue to pay the same administrative fee to SR&F. Under the
existing administrative agreement, the Administrator may make use of its
affiliated companies in connection with the administrative services to be
provided to the Fund under the contract.
Pursuant to a separate agreement with the Trust, SR&F receives a fee for
performing certain bookkeeping and accounting services. For such services, SR&F
receives from the Trust a fee at the annual rate of $25,000 plus 0.0025 of 1% of
the Fund's average net assets over $50 million. During the fiscal year ended
September 30, 1999, SR&F received $354,273 from the Trust for services performed
under that Agreement.
Liberty Funds Distributor, Inc. (LFDI), One Financial Center, Boston, MA 02111,
acts as distributor for the Fund under a distribution agreement. LFDI is a
subsidiary of Colonial Management Associates, Inc.
SSI is the agent of the Trust for the transfer of shares, disbursement of
dividends, and maintenance of shareholder accounting records. For performing
these services, SSI receives from the Fund a fee based at the annual rate of
0.22% of the Fund's average net assets. For the fiscal year ended September 30,
1999, the aggregate fees paid by to SSI on behalf of the Fund were approximately
$599,000.
Unibank
Unibank, d/b/a Unibank Investment Management in the U.S., is located at 13-15
West 54th Street, New York, New York, 10019. Unibank offers a range of equity
investment products and services to institutional clients, including private and
public retirement funds, unions, endowments, foundations, and insurance
companies, as well as to mutual fund sponsors on a sub-advisory basis. Unibank
often structures portfolios to meet benchmarks established by the client, or
tailored to standard Morgan Stanley Capital International (MSCI) benchmarks such
as the MSCI EAFE Index. Unibank is a direct wholly-owned subsidiary of Unibank
A/S, one of Scandinavia's leading financial institutions, which in turn is a
direct wholly-owned subsidiary of Unidanmark A/S, which in turn is a direct
wholly-owned subsidiary of Nordic Baltic Holding AB. The principal executive
offices of Unibank A/S are located at Torvegade 2 DK-1786 Copenhagen V.,
Denmark. The principal executive offices of Unidanmark A/S are located at
Strandgrade 3 DK-1786 Copenhagen V., Denmark. The principal executive offices of
Nordic Baltic Holding AB are located at Hamngatan 10, SE-105 71 Stockholm,
Sweden.
The directors of Unibank Securities, Inc. are Henrik Bak, Ole Jacobsen, Jerry
Murphy, Peter Nyegaard and Finn Pedersen. Mr. Bak is President and Chairman of
the Board of Unibank Securities, Inc. Mr. Jacobsen is Managing Director and Head
of Unibank Investment Management. Mr. Murphy is Head of Administration, Nordic
Baltic Holding, New York. Mr. Nyegaard is Head of Markets, Nordic Baltic Holding
AB. Mr. Pedersen is Head of Equities, Aros Maizel, a Unibank-affiliated
broker-dealer. The business address of each of Messrs. Bak, Nyegaard, Murphy,
Jacobsen and Pedersen is 13-15 West 54th Street, New York, New York, 10019.
In addition to the services proposed to be provided by Unibank to the Fund,
Unibank also provides sub-advisory and other services and facilities to other
investment companies. Information with respect to the assets of and management
fees payable to Unibank by funds having objectives similar to the Fund is set
forth below:
------------------------------------------- -------------------- ---------------
Total Net Assets
Annual Management 9/30/00
Fund Fee (in Thousands)
------------------------------------------- -------------------- ---------------
------------------------------------------- -------------------- ---------------
UM International Equity Fund
0.60%(a) $15,697
------------------------------------------- -------------------- ---------------
(a) The management fee is 0.95%, which is paid to Undiscovered Managers, LLC,
the investment adviser to the Fund. Unibank is the sub-adviser to the Fund
and receives a sub-advisory fee of 0.60% for the first $200 million of
average net assets. 0.55% for the next $100 million, and 0.50% for assets
in excess of $300 million.
THE BOARD OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUND VOTE FOR
PROPOSAL 3.
REQUIRED VOTE FOR PROPOSAL 3
Approval of the Sub-Advisory Agreement for the Fund will require the affirmative
vote of a "majority of the outstanding voting securities" of the Fund (as
defined in the 1940 Act), which means the affirmative vote of the lesser of (1)
more than 50% of the outstanding shares of the Fund or (2) 67% or more of the
shares of the Fund present at the Meeting if more than 50% of the outstanding
shares of the Fund are represented at the Meeting in person or by proxy.
PROPOSAL 4. (a) APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL
INVESTMENT RESTRICTION PROHIBITING THE PURCHASE OF
SECURITIES ON MARGIN AS NON-FUNDAMENTAL. (Stein Roe
Income Fund, Stein Roe High Yield Fund, Stein Roe
Intermediate Bond Fund, Stein Roe Cash Reserves Fund,
Stein Roe Intermediate Municipals Fund, Stein Roe High
- Yield Municipals Fund, Stein Roe Municipal Money
Market Fund, Stein Roe Managed Municipals Fund, Stein
Roe Institutional Client High Yield Fund, Liberty
Floating Rate Fund, Liberty - Stein Roe Institutional
Floating Rate Income Fund, Stein Roe Advisor
Intermediate Bond Fund and Stein Roe Advisor High -
Yield Municipals Fund - herein referred to for
purposes of this Proposal 4 as the "Funds")
(b) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the SR&F Income Portfolio of
SR&F Base Trust. (Stein Roe Income Fund shareholders
only)
(c) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the SR&F High yield portfolio
of SR&F Base Trust. (Stein Roe High Yield Fund
shareholders only)
(d) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the SR&F Intermediate bond
Portfolio of SR&F Base Trust. (Stein Roe Intermediate
Bond Fund shareholders only)
(e) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the SR&F cash reserves
Portfolio of SR&F Base Trust. (Stein Roe Cash Reserves
Fund shareholders only)
(f) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the SR&F high - yield
municipals Portfolio of SR&F Base Trust. (Stein Roe
High - Yield Municipals Fund shareholders only)
<PAGE>
(g) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the SR&F municipal money
market Portfolio of SR&F Base Trust. (Stein Roe
Municipal Money Market Fund shareholders only)
(h) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities on margin for the Stein roe floating rate
limited liability company. (Liberty Floating Rate Fund
and Liberty - Stein Roe Institutional Floating Rate
Income Fund shareholders only)
Each of the Funds has adopted a fundamental investment restriction prohibiting
the purchase of securities on margin, except for the use of short-term credit
necessary for clearance of purchases and sales of portfolio securities. Certain
Funds may also make margin deposits in connection with futures and options
transactions.
The Funds originally adopted this restriction to comply with certain state
securities law requirements which are no longer applicable. If the proposal is
approved, the Trustees intend to reclassify this restriction as
"non-fundamental." By making this restriction non-fundamental, a Fund will have
the ability to modify or eliminate the restriction to increase investment
flexibility without the need for shareholder approval.
The Funds potential use of margin transactions beyond transactions in financial
futures and options and for the clearance of purchases and sales of securities,
including the use of margin in ordinary securities transactions, is generally
limited by the Securities and Exchange Commission position that margin
transactions are prohibited under Section 18 of the Investment Company Act of
1940 because they create senior securities. The Funds ability to engage in
margin transactions is also limited by its investment policies, which generally
permit the Funds to borrow money only (if shareholders approve proposal 8) to
the extent permitted by the Investment Company Act of 1940.
<PAGE>
THE BOARDS OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUNDS VOTE FOR
PROPOSAL 4.
REQUIRED VOTE FOR PROPOSAL 4
Approval of this proposal for any Fund will require the affirmative vote of a
"majority of the outstanding voting securities" of the Fund (as defined in the
1940 Act), which means the affirmative vote of the lesser of (1) more than 50%
of the outstanding shares of the Fund or (2) 67% or more of the shares of the
Fund present at the Meeting if more than 50% of the outstanding shares of the
Fund are represented at the Meeting in person or by proxy.
PROPOSAL 5. (a) APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL
INVESTMENT RESTRICTION ON THE PLEDGING OF SECURITIES
AS NON-FUNDAMENTAL. (Stein Roe Intermediate Municipals
Fund, Stein Roe High - Yield Municipals Fund, Stein
Roe Municipal Money Market Fund, Stein Roe Managed
Municipals Fund, Stein Roe Advisor Intermediate Bond
Fund and Stein Roe Advisor High - Yield Municipals
Fund - herein referred to for purposes of this
Proposal 5 as the "Funds")
(b) Approve a similar reclassification of the fundamental
investment restriction prohibiting pledging securities
for the SR&F High - Yield Municipals Portfolio of SR&F
Base Trust. (Stein Roe High -Yield Municipals Fund
only)
(c) Approve a similar reclassification of the fundamental
investment restriction prohibiting pledging securities
for the SR&F Municipal Money Market Portfolio of SR&F
Base Trust. (Stein Roe Municipal Money Market Fund
shareholders only)
Each of the Funds has adopted a fundamental investment restriction prohibiting
mortgaging, pledging, hypothecating or in any manner transferring, as security
for indebtedness, any securities owned or held by it except (a) as may be
necessary in connection with borrowings (b) as may be necessary to enter into
futures and options transactions.
The Funds originally adopted this restriction to comply with certain state
securities law requirements which are no longer applicable. If the proposal is
approved, the Trustees intend to reclassify this restriction as
"non-fundamental." By making this restriction non-fundamental, a Fund will have
the ability to modify or eliminate the restriction to increase investment
flexibility without the need for shareholder approval.
Pledging assets does entail certain risks. To the extent that the Funds pledge
their assets, the Funds may have less flexibility in liquidating its assets. If
a large portion of a fund's assets were involved, the fund's ability to meet
redemption requests or other obligations could be delayed.
THE BOARDS OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUNDS VOTE FOR
PROPOSAL 5.
REQUIRED VOTE FOR PROPOSAL 5
Approval of this proposal for any Fund will require the affirmative vote of a
"majority of the outstanding voting securities" of the Fund (as defined in the
1940 Act), which means the affirmative vote of the lesser of (1) more than 50%
of the outstanding shares of the Fund or (2) 67% or more of the shares of the
Fund present at the Meeting if more than 50% of the outstanding shares of the
Fund are represented at the Meeting in person or by proxy.
PROPOSAL 6. (a) APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL
INVESTMENT RESTRICTION ON THE PURCHASE OF SECURITIES
FROM AFFILIATES OF THE FUND AS NON-FUNDAMENTAL. (Stein
Roe Intermediate Municipals Fund, Stein Roe High -
Yield Municipals Fund, Stein Roe Municipal Money
Market Fund, Stein Roe Managed Municipals Fund, Stein
Roe Advisor Intermediate Bond Fund and Stein Roe
Advisor High - Yield Municipals Fund - herein referred
to for purposes of this Proposal 6 as the "Funds")
(b) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities from affiliates of the fund for the SR&F
High - Yield Municipals Portfolio of SR&F Base Trust.
(Stein Roe High - Yield Municipals Fund shareholders
only)
(c) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
securities from affiliates of the fund for the SR&F
Municipal Money Market Portfolio of SR&F Base Trust.
(Stein Roe Municipal Money Market Fund shareholders
only)
Each of the Funds has adopted a fundamental investment restriction prohibiting
the purchase of portfolio securities for the Fund from, or sell portfolio
securities to, any of the officers, directors, or trustees of the Funds or of
its investment advisor.
The Funds originally adopted this restriction to comply with certain state
securities law requirements which are no longer applicable. If the proposal is
approved, the Trustees intend to reclassify this restriction as
"non-fundamental." By making this restriction non-fundamental, a Fund will have
the ability to modify or eliminate the restriction to increase investment
flexibility without the need for shareholder approval.
THE BOARDS OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUNDS VOTE FOR
PROPOSAL 6.
REQUIRED VOTE FOR PROPOSAL 6
Approval of this proposal for any Fund will require the affirmative vote of a
"majority of the outstanding voting securities" of the Fund (as defined in the
1940 Act), which means the affirmative vote of the lesser of (1) more than 50%
of the outstanding shares of the Fund or (2) 67% or more of the shares of the
Fund present at the Meeting if more than 50% of the outstanding shares of the
Fund are represented at the Meeting in person or by proxy.
PROPOSAL 7. (a) APPROVE THE RECLASSIFICATION OF THE FUNDAMENTAL
INVESTMENT RESTRICTION ON THE PURCHASE OF OTHER
SECURITIES AS NON-FUNDAMENTAL. (Stein Roe Municipal
Money Market Fund and Stein Roe Managed Municipals
Fund - herein referred to for purposes of this
Proposal 7 as the "Funds")
(b) Approve a similar reclassification of the fundamental
investment restriction prohibiting the purchase of
"other securities" for the SR&F Municipal Money Market
Portfolio of SR&F Base Trust. (Stein Roe Municipal
Money Market Fund shareholders only)
Each of the Funds has adopted a fundamental investment restriction prohibiting
the purchase of any securities other than those described in its Statement of
Additional Information. This restriction was made a restriction because of
regulatory and business conditions at the time. With the passage of time and the
change in regulatory standards, this restriction is no longer required to be
stated as a fundamental or non-fundamental restriction. Therefore, in order to
simplify and modernize the Funds' investment restrictions, the Funds' Board of
Trustees recommends reclassifying this restriction as "non-fundamental." A
non-fundamental restriction may be changed upon vote of the Board without
further shareholder approval.
THE BOARDS OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUNDS VOTE FOR
PROPOSAL 7.
REQUIRED VOTE FOR PROPOSAL 7
Approval of this proposal for any Fund will require the affirmative vote of a
"majority of the outstanding voting securities" of the Fund (as defined in the
1940 Act), which means the affirmative vote of the lesser of (1) more than 50%
of the outstanding shares of the Fund or (2) 67% or more of the shares of the
Fund present at the Meeting if more than 50% of the outstanding shares of the
Fund are represented at the Meeting in person or by proxy.
<PAGE>
PROPOSAL 8. (a) APPROVE THE MODIFICATION OF THE FUNDAMENTAL INVESTMENT
RESTRICTION RELATING TO BORROWING.
(b) Approve a similar modification to the fundamental
investment restriction relating to borrowing for the
respective portfolio of SR&F Base Trust or Stein Roe
Floating Rate Limited Liability Company. (Stein Roe
Balanced Fund, Stein Roe Growth Stock Fund, Liberty
Growth Stock Fund, Stein Roe International Fund, Liberty
Growth Investor Fund, Stein Roe Young Investor Fund,
Liberty Young Investor Fund, Stein Roe High Yield Fund,
Stein Roe Income Fund, Stein Roe Intermediate Bond Fund,
Stein Roe Advisor Intermediate Bond Fund, Stein Roe High
- Yield Municipals Fund, Stein Roe Advisor High - Yield
Municipals Fund, Stein Roe Cash Reserves Fund, Stein Roe
Municipal Money Market Fund, Liberty Floating Rate Fund
and Liberty - Stein Roe Institutional Floating Rate
Income Fund shareholders only)
Each of the Liberty - Stein Roe Mutual Funds has adopted a fundamental
investment restriction relating to borrowing. This restriction was adopted a
number of years ago in response to certain regulatory requirements or business
and industry conditions that no longer exist. Therefore, in order to allow the
Funds to borrow to the extent permitted by the Investment Company Act of 1940,
the Funds' Board of Trustees recommends that this restriction be modified.
With the exception of Liberty Floating Rate Fund and Liberty - Stein Roe
Institutional Floating Rate Income Fund, the Funds do not intend to change their
investment strategies if this proposal is adopted. If this proposal is adopted
by the shareholders of Liberty Floating Rate Fund and Liberty - Stein Roe
Institutional Floating Rate Income Fund, the Funds intend to use borrowing for
leverage. If these funds were permitted to borrow money for the purpose of
leverage, their net assets would tend to increase or decrease at a greater rate
than if leverage were not used.
Current Investment Restrictions. The Funds' current investment restrictions are
as follows:
Stein Roe Balanced Fund, Stein Roe Asia Pacific Fund, Stein Roe Growth Stock
Fund, Liberty Growth Investor Fund, Liberty Midcap Growth Fund, Stein Roe Focus
Fund, Stein Roe Capital Opportunities Fund, Stein Roe Small Company Growth Fund,
Stein Roe International Fund, Stein Roe Institutional Client High Yield Fund,
Liberty Young Investor Fund, Liberty Growth Stock Fund, Stein Roe High Yield
Fund, Stein Roe Income Fund, Stein Roe Intermediate Bond Fund, Stein Roe Advisor
Intermediate Bond Fund, SR&F Balanced Portfolio, SR&F Growth Stock Portfolio,
SR&F Growth Investor Portfolio, SR&F International Portfolio, SR&F Income
Portfolio, SR&F Intermediate Bond Portfolio and SR&F High Yield Portfolio: "[The
Fund/Portfolio may not] borrow except that it may (a) borrow for nonleveraging,
temporary or emergency purposes, (b) engage in reverse repurchase agreements and
make other borrowings, provided that the combination of (a) and (b) shall not
exceed 33 1/3% of the value of its total assets (including the amount borrowed)
less liabilities (other than borrowings) or such other percentage permitted by
law, and (c) enter into futures and options transactions; it may borrow from
banks, other Stein Roe Funds and Portfolios, and other purposes to the extent
permitted by applicable law."
Stein Roe Cash Reserves Fund and SR&F Cash Reserves Portfolio: "[The
Fund/Portfolio may not] borrow except that it may (a) borrow for nonleveraging,
temporary or emergency purposes, (b) engage in reverse repurchase agreements and
make other borrowings, provided that the combination of (a) and (b) shall not
exceed 33 1/3% of the value of its total assets (including the amount borrowed)
less liabilities (other than borrowings) or such other percentage permitted by
law; it may borrow from banks, other Stein Roe Funds and Portfolios, and other
purposes to the extent permitted by applicable law."
Stein Roe Intermediate Municipals Fund, Stein Roe High - Yield Municipals Fund,
Stein Roe Municipal Money Market Fund, Stein Roe Managed Municipals Fund, Stein
Roe Advisor High - Yield Municipals Fund, SR&F High - Yield Municipals Portfolio
and SR&F Municipal Money Market Portfolio: "[The Fund/Portfolio may not] borrow
except that it may (a) borrow for nonleveraging, temporary or emergency
purposes, (b) engage in reverse repurchase agreements and make other borrowings,
provided that the combination of (a) and (b) shall not exceed 33 1/3% of the
value of its total assets (including the amount borrowed) less liabilities
(other than borrowings) or such other percentage permitted by law; it may borrow
from banks, other Stein Roe Funds and Portfolios, and other purposes to the
extent permitted by applicable law."
Liberty Floating Rate Fund and Liberty Institutional Floating Rate Income Fund:
"[Neither the Fund nor the Portfolio may] borrow except that it may (a) borrow
for nonleveraging, temporary or emergency purposes, (b) engage in reverse
repurchase agreements, hedging transactions, when-issued and delayed-delivery
transactions and similar strategies, and make other borrowings, provided that
the combination of (a) and (b) shall not at any time exceed 33 1/3% of the value
of its total assets (including the amount borrowed) less liabilities (other than
borrowings) or such other percentage permitted by law, and (c) enter into
futures and options transactions; it may borrow from banks, other investment
companies to which Stein Roe provides investment advisory services, and other
persons to the extent permitted by applicable law."
Proposed Investment Restriction. The investment restrictions above would be
revised in their entirety if approved by shareholders, as follows:
"[The Fund/Portfolio may not] borrow except from banks, other affiliated funds
and other entities to the extent permitted by the Investment Company Act of
1940."
If the proposed change is approved, the Funds will be able to borrow up to the
Investment Company Act of 1940 limit. The Funds will no longer be restricted
from borrowing only for redemption requests or for extraordinary or emergency
purposes, and would not be limited to borrowing only from banks.
Shareholders of certain Funds will also be asked to authorize their Funds to
approve a similar amendment to the fundamental investment restrictions of the
respective portfolios of SR&F Base Trust or the Stein Roe Floating Rate Limited
Liability Company.
THE BOARDS OF TRUSTEES RECOMMENDS THAT THE SHAREHOLDERS OF THE FUNDS VOTE FOR
PROPOSAL 7.
REQUIRED VOTE FOR PROPOSAL 7
Approval of this proposal for any Fund will require the affirmative vote of a
"majority of the outstanding voting securities" of the Fund (as defined in the
1940 Act), which means the affirmative vote of the lesser of (1) more than 50%
of the outstanding shares of the Fund or (2) 67% or more of the shares of the
Fund present at the Meeting if more than 50% of the outstanding shares of the
Fund are represented at the Meeting in person or by proxy.
PART 3. INFORMATION REGARDING VOTING AND SHAREHOLDER MEETINGS.
This section provides further information regarding the methods of voting and
shareholder meetings.
In Parts 3 and 4, the following acronym codes will be used to identify the
Liberty - Stein Roe Mutual Funds:
-------------- ------------------------- ----------- ---------------------------
LIBERTY - STEIN ROE LIBERTY - STEIN ROE
CODE MUTUAL FUND CODE MUTUAL FUND
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRBF Stein Roe Balanced Fund SRCRF Stein Roe Cash Reserves
Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRAPF Stein Roe Asia Pacific SRIMF Stein Roe Intermediate
Fund Municipals Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
LGIF Liberty Growth Investor SRHYMF Stein Roe High - Yield
Fund Municipals Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRGSF Stein Roe Growth Stock SRMMMF Stein Roe Municipal Money
Fund Market Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
LMCGF Liberty Midcap Growth SRMMF Stein Roe Managed
Fund Municipals Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
<PAGE>
LIBERTY - STEIN ROE LIBERTY - STEIN ROE
CODE MUTUAL FUND CODE MUTUAL FUND
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRFF Stein Roe Focus Fund SRICHYF Stein Roe Institutional
Client High Yield Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRCOF Stein Roe Capital LYIF Liberty Young Investor
Opportunities Fund Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRSCGF Stein Roe Small Company LGSF Liberty Growth Stock Fund
Growth Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRYIF Stein Roe Young SRAHYMF Stein Roe Advisor High -
Investor Fund Yield Municipal Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRIF Stein Roe International SRAIBF Stein Roe Advisor
Fund Intermediate Bond Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRINCF Stein Roe Income Fund LFRF Liberty Floating Rate Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRIBF Stein Roe Intermediate LSRIFRIF Liberty - Stein Roe
Bond Fund Institutional Floating
Rate Income Fund
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRHYF Stein Roe High Yield
Fund
-------------- ------------------------- ----------- ---------------------------
A. Proxy Solicitation Methods. Shareholders entitled to vote at the Meetings
will receive proxy materials in the mail. The Funds have engaged the services of
SCC to assist in the solicitation of proxies. As the date approaches, if your
vote is not received, you may receive a call from SCC reminding you to exercise
your right to vote. At this time, you may elect to vote your shares
telephonically.
B. Proxy Solicitation Costs. The Liberty - Stein Roe Mutual Funds will bear the
cost of the solicitation (with a portion of certain Funds' expenses borne by
Liberty Financial) which includes printing of proxy materials, mailing and the
tabulation of votes. By voting as soon as you receive your proxy materials, you
will help reduce the cost of additional mailings. The cost of this assistance
for each Fund is not expected to exceed the following amounts:
-------------- ------------------------- ----------- ---------------------------
CODE SOLICITATION COST CODE SOLICITATION COST
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRBF $11,972 SRCRF $22,416
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRAPF $814 SRIMF $4,698
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
LGIF $6,902 SRHYMF $6,749
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRGSF $30,366 SRMMMF $3,280
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
LMCGF $9,125 SRMMF $11,708
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRFF $13,299 SRICHYF $536
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRCOF $51,588 LYIF $82,317
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRSCGF $2,663 LGSF $142,924
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRYIF $332,649 SRAHYMF $538
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRIF $4,569 SRAIBF $551
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRINCF $8,718 LFRF $12,826
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRIBF $21,772 LSRIFRIF $590
-------------- ------------------------- ----------- ---------------------------
-------------- ------------------------- ----------- ---------------------------
SRHYF $4,183
-------------- ------------------------- ----------- ---------------------------
C. Record Date and Quorum. Each shareholder of any Fund of record at the close
of business on September 29, 2000 (Record Date) is entitled to a number of votes
on any matter relating to that Fund that comes before the Meeting equal to the
dollar net asset value of the shares of the Fund held by the shareholder as of
the Record Date for the Meeting, except that a shareholder of Liberty Floating
Rate Fund or Liberty - Stein Roe Institutional Floating Rate Income Fund is
entitled to cast one vote for each share of that Fund held on the Record Date.
Shares outstanding and net asset values of each class of shares are referenced
under "Part 4. Fund Information" below. Holders of 30% of the shares of each
Liberty - Stein Roe Mutual Fund except Liberty Floating Rate Fund and Liberty -
Stein Roe Institutional Floating Rate Income Fund, outstanding on the Record
Date constitute a quorum and must be present in person or represented by proxy
for business to be transacted at the Meetings. Holders of a majority of the
shares of Liberty Floating Rate Fund and Liberty - Stein Roe Institutional
Floating Rate Income Fund outstanding on the Record Date constitute a quorum and
must be present in person or represented by proxy for business to be transacted
at the Meetings. Regardless of how you vote ("For", "Against" or "Abstain"),
your shares will be counted as present and entitled to vote for purposes of
determining the presence of a quorum. If a shareholder withholds authority or
abstains, or the proxy reflects a "broker non-vote" (i.e., shares held by
brokers or nominees as to which (i) instructions have not been received from the
beneficial owners or persons entitled to vote and (ii) the broker or nominee
does not have discretionary voting power on a particular matter), that vote will
have the effect of votes (a) present for purposes of determining a quorum for
each proposal and (b) against proposals 2 through 8. With respect to the
election of Trustees (proposal 1), withheld authority, abstentions and broker
non-votes have no effect on the outcome of the voting.
D. Revoking Your Proxy. You may revoke your proxy at any time up until the
voting results are announced at the Meetings. You may revoke your vote by
writing to the Assistant Secretary of the Liberty - Stein Roe Mutual Funds, One
Financial Center, 11th Floor, Boston, MA 02111-2621. You may also revoke your
proxy by voting again by using one of the following four ways: (a) by accessing
our Web site; (b) by using your enclosed proxy card; (c) by fax (not available
for all shareholders; refer to the enclosed proxy insert) or (d) voting in
person at the Meetings. You may also revoke your vote telephonically by calling
SCC at 1-800-732-3683.
E. Adjournment. If sufficient votes in favor of any of the proposals set forth
in the Notice are not received by the time scheduled for the meeting, the
persons named as proxies may propose adjournments of the meeting for a period or
periods of not more than 120 days in the aggregate to permit further
solicitation of proxies with respect to those proposals. Any adjournment will
require the affirmative vote of a majority of the votes cast on the question in
person or by proxy at the session of the meeting to be adjourned. The persons
named as proxies will vote in favor of adjournment those proxies that are
entitled to vote in favor of such proposals. They will vote against adjournment
those proxies required to be voted against such proposals. Any proposals for
which sufficient favorable votes have been received by the time of the meeting
may be acted upon and considered final regardless of whether the meeting is
adjourned to permit additional solicitation with respect to any other proposal.
F. Shareholder Proposals. Proposals of shareholders which are intended to be
considered for inclusion in the Liberty - Stein Roe Mutual Funds' proxy
statement must be received within a reasonable amount of time prior to any
meetings. The Liberty - Stein Roe Mutual Funds do not currently intend to hold
shareholder meetings in 2001.
G. Annual/Semiannual Reports. Further information concerning a Liberty - Stein
Roe Mutual Fund is contained in its most recent Annual and/or Semiannual Report
to Shareholders, which is obtainable free of charge by writing Liberty - Stein
Roe Mutual Funds at One Financial Center, Boston, Massachusetts 02111 or by
calling 1-800-338-2550.
H. Compliance with Section 16(a) of the Securities Exchange Act of 1934 (Liberty
Floating Rate Fund and Liberty - Stein Roe Institutional Floating Rate Income
Fund only). Section 16(a) of the Securities Exchange Act of 1934, as amended,
and Section 30(f) of the 1940 Act, as amended, require the Fund's Boards and
certain other persons (Section 16 reporting persons), to file with the
Securities and Exchange Commission (SEC) initial reports of ownership and
reports of changes in ownership of the Fund's shares and to furnish the Fund
with copies of all Section 16(a) forms they file. Based solely upon a review of
copies of such reports furnished to the Funds for the fiscal year ended August
31, 2000, the Section 16 reporting persons complied with all Section 16(a)
filings applicable to them.
I. Litigation. The Liberty - Stein Roe Mutual Funds are not currently involved
in any material litigation.
J. Other Matters. As of the date of this proxy statement, only the business
mentioned in proposals 1 through 8 of the Notice of the Special Meetings of
Shareholders is contemplated to be presented. If any procedural or other matters
come before the Meetings, your proxy shall be voted in accordance with the best
judgement of the proxy holder(s).
<PAGE>
PART 4. FUND INFORMATION.
As of the Record Date, each Liberty - Stein Roe Mutual Fund had the following
outstanding shares of beneficial interest:
-------------------- -------------------
Liberty - Stein Shares of
Roe Mutual Fund Beneficial
Interest (SBI)
-------------------- -------------------
-------------------- -------------------
SRBF 7,201,556
-------------------- -------------------
-------------------- -------------------
SRAPF 316,129
-------------------- -------------------
-------------------- -------------------
SRGSF 18,154,143
-------------------- -------------------
-------------------- -------------------
SRYIF 33,837,048
-------------------- -------------------
-------------------- -------------------
SRIF 9,471,191
-------------------- -------------------
-------------------- -------------------
SRCRF 529,486,259
-------------------- -------------------
-------------------- -------------------
SRIMF 12,340,604
-------------------- -------------------
-------------------- -------------------
SRMMMF 108,251,310
-------------------- -------------------
-------------------- -------------------
SRMMF 52,033,228
-------------------- -------------------
-------------------- -------------------
SRICHYF 6,026,471
-------------------- -------------------
-------------------- -------------------
LSRIFRIF 18,681,772
-------------------- -------------------
-------------- -----------------------------------------------------------------
Shares Outstanding of each Class
------------ -------------------------------------------------------------------
------------ ----------- ----------- ----------- --------- ----------- ---------
Liberty -
Stein Roe A B C K S Z
Mutual Fund
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LGIF 341,839 1,209,263 57,407 N/A 1,634,029 92
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LMCGF 6,339 11,016 1,842 N/A 3,907,237 63
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRFF 73 N/A N/A N/A 5,153,458 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRCOF 25 N/A N/A N/A 13,542,012 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRSCGF 53 N/A N/A N/A 1,646,144 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRINCF 110 N/A N/A N/A 25,190,184 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRIBF 120 N/A N/A N/A 49,099,782 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRHYF 112 N/A N/A N/A 2,785,993 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRHYMF 91 N/A N/A N/A 22,337,823 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LYIF 9,199,719 N/A N/A 31,098 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LGSF 9,186,463 42,111,377 3,349,286 169,296 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRAHYMF N/A N/A N/A 5,116 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRAIBF N/A N/A N/A 17,539 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LFRF 15,486,123 9,784,860 11,093,129 N/A N/A 691,560
------------ ----------- ----------- ----------- --------- ----------- ---------
As of the Record Date, the net asset value of each Liberty - Stein Roe Mutual
Fund was as follows:
-------------------- -------------------
Liberty - Stein
Roe Mutual Fund Net Asset
Value
-------------------- -------------------
-------------------- -------------------
SRBF $32.75
-------------------- -------------------
-------------------- -------------------
SRAPF $16.75
-------------------- -------------------
-------------------- -------------------
SRGSF $59.66
-------------------- -------------------
-------------------- -------------------
SRYIF $35.89
-------------------- -------------------
-------------------- -------------------
SRIF $10.75
-------------------- -------------------
-------------------- -------------------
SRCRF $1.00
-------------------- -------------------
-------------------- -------------------
SRIMF $11.04
-------------------- -------------------
-------------------- -------------------
SRMMMF $1.00
-------------------- -------------------
-------------------- -------------------
SRMMF $8.74
-------------------- -------------------
-------------------- -------------------
SRICHYF $8.35
-------------------- -------------------
-------------------- -------------------
LSRIFRIF $9.98
-------------------- -------------------
------------ -------------------------------------------------------------------
Net Asset Value of each Class
------------ -------------------------------------------------------------------
------------ ----------- ----------- ----------- --------- ----------- ---------
Liberty -
Stein Roe A B C K S Z
Mutual Fund
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LGIF $12.22 $12.15 $12.15 N/A $12.24 $12.24
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LMCGF $16.84 $16.82 $16.81 N/A $16.83 $16.84
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRFF $15.45 N/A N/A N/A $15.45 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRCOF $42.21 N/A N/A N/A $42.24 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRSCGF $22.15 N/A N/A N/A $22.16 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRINCF $9.27 N/A N/A N/A $9.27 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRIBF $8.56 N/A N/A N/A $8.55 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRHYF $8.60 N/A N/A N/A $8.59 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRHYMF $11.13 N/A N/A N/A $11.12 N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LYIF $18.24 N/A N/A $18.35 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LGSF $21.40 $20.96 $20.93 $18.35 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRAHYMF N/A N/A N/A $21.44 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
SRAIBF N/A N/A N/A $9.09 N/A N/A
------------ ----------- ----------- ----------- --------- ----------- ---------
------------ ----------- ----------- ----------- --------- ----------- ---------
LFRF $9.99 $9.99 $9.99 N/A N/A $9.99
------------ ----------- ----------- ----------- --------- ----------- ---------
As of the Record Date, the following persons were known to own of record or
beneficially 5% or more of the applicable outstanding Class(es) of shares of the
following Liberty - Stein Roe Mutual Funds:
<PAGE>
-------------- ---------- ------------------------- ------------ -------------
Liberty -
Stein Roe Percentage
Mutual Fund Class of Name and Address Number of of Shares
Shares Shares Owned
Owned
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRBF SBI Charles Schwab & Co. 644,166 8.95%
FBO American Express
Conversion
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRAPF SBI Liberty Financial 272,509 86.20%
Companies, Inc.
Attn: Michael Santilli
600 Atlantic Avenue
Federal Reserve Plaza
Boston, MA 02210
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
LGIF S Trust Company of America 134,563 8.24%
F/B/O SPA
P.O. Box 6503
Englewood, CO 80155
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRGSF SBI Charles Schwab & Co. 1,881,783 10.36%
F/B/O Larry G. Cobb
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4175
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
LMCGF S Charles Schwab & Co. 1,019,600 26.10%
Special Custody A/C for
the Exclusive Benefit
of Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRFF S Charles Schwab & Co. 1,334,850 25.90%
Special Custody A/C for
the Exclusive Benefit
of Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
<PAGE>
-------------- ---------- ------------------------- ------------ -------------
SRCOF S Charles Schwab & Co. 3,463,362 25.57%
Special Custody A/C for
the Exclusive Benefit
of Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
National Financial 723,246 5.34%
Services Corp. For the
Exclusive Benefit of
Our Customers
Attn: Mutual Funds
P.O. Box 3908
Church Street Station
New York, NY 10008-3908
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRSCGF S Keyport Life Insurance 391,121 23.76%
Company
C/o Michelle Cote
125 High Street
Boston, MA 02101
S Charles Schwab & Co. 492,986 29.95%
Special Custody A/C for
the Exclusive Benefit
of Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRYIF SBI Charles Schwab & Co. 4,539,388 13.42%
FBO American Express
Conversion
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRIF SBI Liberty Mutual 1,282,804 13.54%
Insurance Company
175 Berkeley Street
Boston, MA 02117
SBI Trustees for the Plan 551,862 5.83%
of Hinshaw Culbertson
Money Purchase Pension
Plan A/C Helen
Waldschmidt
222 N. LaSalle
Chicago, IL 60601-1003
-------------- ---------- ------------------------- ------------ -------------
<PAGE>
-------------- ---------- ------------------------- ------------ -------------
SRINCF S Liberty Mutual 10,170,360 40.37%
Insurance Company
175 Berkeley Street
Boston, MA 02117
S Trustees for the Plan 4,313,971 17.13%
of Hinshaw Culbertson
Money Purchase Pension
Plan A/C Lawrence R.
Moelmann
222 N. LaSalle
Chicago, IL 60601-1003
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRIBF None
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRHYF S Charles Schwab & Co. 718,391 25.79%
Special Custody A/C for
the Exclusive Benefit
of Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRCRF SBI Liberty Financial 43,389,222 8.19%
Services
Attn: Mike Santilli
600 Atlantic Ave. Fl. 23
Boston, MA 02210-2211
SBI Stein Roe & Farnham, Inc. 34,702,484 6.55%
Client Fees
C/o Colonial Management
Associates, Inc.
One Financial Center
Floor 13
Boston, MA 02111
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRIMF SBI Charles Schwab & Co. 1,904,548 15.43%
Special Custody A/C for
the Exclusive Benefit
of Customers
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRHYMF S Charles Schwab & Co. 3,310,974 14.82%
FBO American Express
Conversion
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA
94104-4122
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRMMMF None
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRMMF None
-------------- ---------- ------------------------- ------------ -------------
<PAGE>
-------------- ---------- ------------------------- ------------ -------------
SRICHYF SBI National City Bank TTEE 424,045 7.04%
Akron General Medical
Ctr. Defined Benefit
Pension Trust
P.O. Box 94984
Cleveland, OH 44101-4984
SBI John W. Anderson 657,878 10.92%
Foundation
402 Wall Street
Valparaiso, IN 46383
SBI The Firemans Annuity & 2,715,155 45.05%
Benefit Fund of Chicago
c/o Ken Kaczmarz
1 North Franklin, Suite
2500
Chicago, IL 60606
SBI Covenant Benevolent 2,068,125 34.32%
Institution
5145 North California
Chicago, IL 60625
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
LYIF None
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
LGSF None
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRAHYMF None
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
SRAIBF None
-------------- ---------- ------------------------- ------------ -------------
-------------- ---------- ------------------------- ------------ -------------
LFRF None
-------------- ---------- ------------------------- ------------ -------------
<PAGE>
-------------- ---------- ------------------------- ------------ -------------
LSRIFRIF SBI Citibank TTEE 2,139,902 11.45%
Evangelical Covenant
Church Retirement Plan
5115 N. Francisco,
Suite 200
Chicago, IL 60625
SBI Covenant Benevolent 1,132,881 11.45%
Institution
5145 North California
Chicago, IL 60625
SBI The Firemans Annuity 1,842,707 9.86%
and Benefit Fund of
Chicago
1 North Franklin, Suite
SBI 2500
Chicago, IL 60606
SBI Milwaukee County 2,038,170 10.91%
Employees Retirement
System
901 N. 9th Street, Room
210C
Milwaukee, WI 53233
SBI GFS Holding Inc. 7,395,084 39.58%
Suite 1228
1105 North Market St.
P.O. Box 8985
Wilmington, DE 19899
-------------- ---------- ------------------------- ------------ -------------
<PAGE>
The following table sets forth certain information about the executive officers
of each Stein Roe Trust and Stein Roe Floating Rate Limited Liability Company
(the Trusts):
Executive Officer Office with the Liberty -Stein Roe Year of Election as
Name & Age Mutual Funds; Principal Occupation (1) Executive Officer
Stephen E. Gibson President of the Trusts; President of 1999
(47) the Liberty Funds since June, 1998,
Chairman of the Board since July,
1998, Chief Executive Officer and
President since December, 1996 and
Director, since July, 1996
of Colonial Management Associates,
Inc. (Colonial) (formerly Executive
Vice President from July, 1996 to
December, 1996); Director, Chief
Executive Officer and President of
Liberty Funds Group LLC (LFG)
since December, 1998 (formerly
Director, Chief Executive Officer
and President of The Colonial Group,
Inc. (TCG) from December, 1996 to
December, 1998); President and
Vice Chairman of Stein Roe & Farnham
Incorporated (SR&F) since January,
2000 (formerly Assistant
Chairman from August, 1998 to
January, 2000) (formerly
Managing Director of Marketing of Putnam
Investments, June, 1992 to July, 1996.).
William Andrews Executive Vice President of the 199_
(53) Trusts; Executive
Vice President of SR&F.
Kevin Carome Executive Vice President of the 1999
(44) Trusts since ; Chief Legal
Officer, Liberty Financial
since August, 2000; Senior Vice
President, Legal, Liberty Funds
Group LLC since January, 1999; General
Counsel and Secretary of SR&F since January,
1998; Associate General Counsel
and Vice President of Liberty
Financial prior thereto.
Loren Hansen Executive Vice President of the Trusts; 199_
(52) Chief Investment
Officer/Equity of Colonial since 1997;
Executive Vice President of SR&F since Dec.
1995; Vice President of The
Northern Trust (bank) prior thereto.
Pamela A. McGrath Treasurer and Chief Financial Officer 2000
(46) of the Trusts, Liberty Funds and
Liberty All-Star Funds since April, 2000;
Treasurer, Chief Financial Officer and
Vice President of LFG since December,
1999; Chief Financial Officer, Treasurer
and Senior Vice President of Colonial since
December, 1999; Director of Offshore
Accounting for Putnam Investments from May,
1998 to October, 1999; Managing Director
of Scudder Kemper prior thereto.
(1) Except as otherwise noted, each individual has held the office
indicated or other offices in the same company for the last five
years.
Share Ownership by Trustees and Officers
As of the Record Date, the executive officers and the current Board of Trustees
as a group were known to beneficially own less than 1% of each of the
outstanding Class(es) of shares of each of the Liberty - Stein Roe Mutual Funds.
The current Board of Trustees received the following compensation from each
Liberty -- Stein Roe Mutual Fund as of each Fund's fiscal year end1:
------------------- ------------- -------------- ------------- -------------
LIBERTY - STEIN
ROE MUTUAL FUND
SRBF SRAPF LGIF SRGSF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
9/30/00 6/30/00 9/30/00 9/30/00
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bacon $ 1,300 $ 1,500 $ 1,300 $ 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Boyd 1,400 1,600 1,400 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Hacker 1,300 1,500 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Kelly 1,300 1,500 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Dr. Nelson 1,300 1,500 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Theobald 1,300 1,500 1,300 1,300
------------------- ------------- -------------- ------------- -------------
<PAGE>
------------------- ------------- -------------- ------------- -------------
LIBERTY - STEIN
ROE MUTUAL FUND
LMCGF SRFF SRCOF SRSCGF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
9/30/00 9/30/00 9/30/00 6/30/00
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bacon $ 2,100 $ 2,100 $ 3,300 $ 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Boyd 2,200 2,200 3,400 1,600
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Hacker 2,100 2,100 3,300 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Kelly 2,100 2,100 3,300 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Dr. Nelson 2,100 2,100 3,300 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Theobald 2,100 2,100 3,300 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
LIBERTY - STEIN
ROE MUTUAL FUND
SRYIF SRIF SRINCF SRIBF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
9/30/00 9/30/00 6/30/00 6/30/00
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bacon $ 1,300 $ 1,300 $ 1,400 $ 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Boyd 1,400 1,400 1,500 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Hacker 1,300 1,300 1,400 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Kelly 1,300 1,300 1,400 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Dr. Nelson 1,300 1,300 1,500 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Theobald 1,300 1,300 1,400 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
LIBERTY - STEIN
ROE MUTUAL FUND
SRHYF SRCRF SRIMF SRHYMF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
6/30/00 6/30/00 6/30/00 6/30/00
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bacon $ 1,400 $ 1,400 $ 2,200 $ 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Boyd 1,500 1,500 2,400 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Hacker 1,400 1,400 2,200 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Kelly 1,400 1,400 2,200 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Dr. Nelson 1,500 1,500 2,300 1,500
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Theobald 1,400 1,400 2,200 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
LIBERTY - STEIN
ROE MUTUAL FUND
SRMMF SRICHYF LYIF LGSF
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Fiscal Year End
6/30/00 6/30/00 6/30/00 6/30/00
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Trustee:
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Bacon $ 3,100 $ 1,400 $ 1,300 $ 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Boyd 3,200 1,500 1,400 1,400
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Hacker 3,100 1,400 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Ms. Kelly 3,100 1,400 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Dr. Nelson 3,200 1,500 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- ------------- -------------- ------------- -------------
Mr. Theobald 3,100 1,400 1,300 1,300
------------------- ------------- -------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
LIBERTY - STEIN
ROE MUTUAL FUND
SRAHYMF SRAIBF LFRF LSRIFRIF
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Fiscal Year End
6/30/00 6/30/00 8/31/99 8/31/99
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Trustee:
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Mr. Bacon $ 1,400 $ 1,400 $ 1,300 $ 1,300
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Mr. Boyd 1,500 1,500 1,400 1,400
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Mr. Hacker 1,400 1,400 1,300 1,300
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Ms. Kelly 1,400 1,400 1,300 1,300
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Dr. Nelson 1,500 1,500 1,300 1,300
------------------- -------------- ------------- ------------- -------------
------------------- -------------- ------------- ------------- -------------
Mr. Theobald 1,400 1,400 1,300 1,300
------------------- -------------- ------------- ------------- -------------
------------------- --------------
LIBERTY - STEIN
ROE MUTUAL FUND
SRMMMF
------------------- --------------
------------------- --------------
Fiscal Year End
6/30/00
------------------- --------------
------------------- --------------
Trustee:
------------------- --------------
------------------- --------------
Mr. Bacon $ 1,400
------------------- --------------
------------------- --------------
Mr. Boyd 1,500
------------------- --------------
------------------- --------------
Mr. Hacker 1,400
------------------- --------------
------------------- --------------
Ms. Kelly 1,400
------------------- --------------
------------------- --------------
Dr. Nelson 1,500
------------------- --------------
------------------- --------------
Mr. Theobald 1,400
------------------- --------------
<PAGE>
The following table sets forth the compensation paid to each Trustee from the
respective portfolio of SR&F Base Trust, in which certain funds invest their
assets, in their capacity as a Trustee to SR&F Base Trust, an open-end
investment company, for service during each portfolio's fiscal year:
---------------- ---------------- ---------------- --------------- -------------
SR&F Growth SR&F Growth
SR&F Balanced SR&F Cash and Income Investor
Portfolio Reserves Portfolio Portfolio
Portfolio
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Fiscal Year End
9/30/00 6/30/00 9/30/00 9/30/00
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Trustee
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Mr. Bacon $ 2,250 $ 4,000 $ 2,700 $ 4,350
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Mr. Boyd 2,350 4,200 2,800 4,450
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Mr. Hacker 2,250 4,000 2,700 4,350
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Ms. Kelly 2,250 4,000 2,700 4,350
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Dr. Nelson 2,250 4,100 2,700 4,350
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
Mr. Theobald 2,250 4,000 2,700 4,350
---------------- ---------------- ---------------- --------------- -------------
---------------- ---------------- ---------------- --------------- -------------
SR&F Growth SR&F High -
Stock Portfolio SR&F High Yield SR&F Income
Yield Portfolio Municipals Portfolio
Portfolio
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Fiscal Year End
9/30/00 6/30/00 6/30/00 6/30/00
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Trustee
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Mr. Bacon $ 4,350 $ 2,800 $ 2,800 $ 2,800
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Mr. Boyd 4,450 3,000 3,000 3,000
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Mr. Hacker 4,350 2,800 2,800 2,800
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Ms. Kelly 4,350 2,800 2,800 2,800
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Dr. Nelson 4,350 2,900 2,900 2,900
-------------------------------- ---------------- --------------- --------------
-------------------------------- ---------------- --------------- --------------
Mr. Theobald 4,350 2,800 2,800 2,800
-------------------------------- ---------------- --------------- --------------
<PAGE>
------------------ ---------------- ---------------- --------------- -----------
SR&F
SR&F Municipal SR&F
Intermediate SR&F Money Market Disciplined
Bond Portfolio International Portfolio Stock
Portfolio Portfolio
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Fiscal Year End
6/30/00 9/30/00 6/30/00 9/30/00
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Trustee
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Mr. Bacon $ 2,800 $ 2,100 $ 2,200 $ 3,450
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Mr. Boyd 3,000 2,200 2,400 3,550
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Mr. Hacker 2,800 2,100 2,200 3,450
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Ms. Kelly 2,800 2,100 2,200 3,450
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Dr. Nelson 2,900 2,100 2,300 3,450
---------------- ---------------- ---------------- ------------- ---------------
---------------- ---------------- ---------------- ------------- ---------------
Mr. Theobald 2,800 2,100 2,200 3,450
---------------- ---------------- ---------------- ------------- ---------------
The following table sets forth the compensation paid to each Trustee for serving
on the Board of Managers of Stein Roe Floating Rate Limited Liability Company,
(SRFRLLC) in which certain funds invest their assets, for service during the
fiscal year ended August 31, 2000:
--------------------------------------- ----------------------------------------
Total Compensation Paid To The Trustees
From SRFRLLC For The Fiscal Year Ended
Trustee August 31, 2000
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Mr. Bacon $ 1,950
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Mr. Boyd 2,050
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Mr. Hacker 1,950
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Ms. Kelly 1,950
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Dr. Nelson 1,950
--------------------------------------- ----------------------------------------
--------------------------------------- ----------------------------------------
Mr. Theobald 1,950
--------------------------------------- ----------------------------------------
<PAGE>
The following table sets forth the compensation paid to each Trustee from each
series of SteinRoe Variable Investment Trust, an open-end investment company,
for service during the Trust's fiscal year ended December 31, 1999:
------------- ---------------- ---------------- --------------- ----------------
Stein Roe Stein Roe
Stein Roe Stein Roe Money Market Mortgage
Balanced Fund, Growth Stock Fund, Securities
Variable Series Fund, Variable Variable Fund, Variable
Series Series Series
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Trustee
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Mr. Bacon $ 2,900 $ 2,900 $ 2,300 $ 2,300
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Mr. Boyd 3,000 3,000 2,400 2,400
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Mr. Hacker 2,450 2,450 2,000 2,000
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Ms. Kelly 2,900 2,900 2,300 2,300
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Dr. Nelson 3,000 3,000 2,400 2,400
------------- ---------------- ---------------- --------------- ----------------
------------- ---------------- ---------------- --------------- ----------------
Mr. Theobald 2,900 2,900 2,300 2,300
------------- ---------------- ---------------- --------------- ----------------
------------- ----------------
Stein Roe
Small Company
Growth Fund,
Variable Series
------------------ ----------------
------------------ ----------------
Trustee
------------------ ----------------
------------------ ----------------
Mr. Bacon $ 2,300
------------------ ----------------
------------------ ----------------
Mr. Boyd 2,400
------------------ ----------------
------------------ ----------------
Mr. Hacker 2,000
------------------ ----------------
------------------ ----------------
Ms. Kelly 2,300
------------------ ----------------
------------------ ----------------
Dr. Nelson 2,400
------------------ ----------------
------------------ ----------------
Mr. Theobald 2,300
------------------ ----------------
<PAGE>
------------------- ---------------------------------------
TOTAL COMPENSATION PAID FROM LIBERTY
- STEIN ROE MUTUAL FUNDS COMPLEX(1)
TO THE BOARD OF TRUSTEES FOR THE
CALENDAR YEAR ENDED
------------------- ---------------------------------------
------------------- ---------------------------------------
Trustee: 12/31/99
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Bacon $103,450
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Boyd $109,950
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Hacker $93,950
------------------- ---------------------------------------
------------------- ---------------------------------------
Ms. Kelly $103,450
------------------- ---------------------------------------
------------------- ---------------------------------------
Dr. Nelson $108,050
------------------- ---------------------------------------
------------------- ---------------------------------------
Mr. Theobald $103,450
------------------- ---------------------------------------
(1) At June 30, 2,000, the Liberty - Stein Roe Mutual Funds Complex consisted
of four series of Liberty - Stein Roe Funds Income Trust, one series of
Liberty - Stein Roe Funds Trust, four series of Liberty - Stein Roe Funds
Municipal Trust, 12 series of Liberty - Stein Roe Funds Investment Trust,
five series of Liberty - Stein Roe Advisor Trust, five series of SteinRoe
Variable Investment Trust, 12 portfolios of SR&F Base Trust, Liberty
Floating Rate Fund, Liberty-Stein Roe Institutional Floating Rate Income
Fund, and Stein Roe Floating Rate Limited Liability Company.
<PAGE>
Appendix A
MANAGEMENT AGREEMENT
AGREEMENT dated as of , 2000, between SR&F BASE TRUST, a Massachusetts business
trust (Trust), with respect to SR&F INTERNATIONAL PORTFOLIO (Portfolio), and
NEWPORT FUND MANAGEMENT, INC., a Virginia corporation (Adviser).
In consideration of the promises and covenants herein, the parties agree as
follows:
1. The Adviser will manage the investment of the assets of the Portfolio in
accordance with its prospectus and statement of additional information and
will perform the other services herein set forth, subject to the
supervision of the Board of Trustees of the Trust. The Adviser may delegate
its investment responsibilities to a sub-adviser.
2. In carrying out its investment management obligations, the Adviser shall:
(a) evaluate such economic, statistical and financial information and
undertake such investment research as it shall believe advisable; (b)
purchase and sell securities and other investments for the Portfolio
in accordance with the procedures described in its prospectus and
statement of additional information; and (c) report results to the
Board of Trustees of the Trust.
3. The Adviser shall furnish at its expense the following:
(a) office space, supplies, facilities and equipment; (b) executive and
other personnel for managing the affairs of the Portfolio (including
preparing financial information of the Portfolio and reports and tax
returns required to be filed with public authorities, but exclusive of
those related to custodial, transfer, dividend and plan agency
services, determination of net asset value and maintenance of records
required by Section 31(a) of the Investment Company Act of 1940, as
amended, and the rules thereunder (1940 Act)); and (c) compensation of
Trustees who are directors , officers, partners or employees of the
Adviser or its affiliated persons (other than a regulated investment
company).
4. The Adviser shall be free to render similar services to others so long as
its services hereunder are not impaired thereby.
5. The Portfolio shall pay the Adviser monthly a fee at the annual rate of
0.85% of the average daily net assets of the Portfolio.
6. If the operating expenses of the Portfolio for any fiscal year exceed the
most restrictive applicable expense limitation for any state in which
shares are sold, the Adviser's fee shall be reduced by the excess but not
to less than zero. Operating expenses shall not include brokerage,
interest, taxes, deferred organization expenses, Rule 12b-1 distribution
fees, service fees and extraordinary expenses, if any. The Adviser may
waive its compensation (and bear expenses of the Portfolio) to the extent
that expenses of the Portfolio exceed any expense limitation the Adviser
declares to be effective.
7. This Agreement shall become effective as of the date of its execution, and
(a) unless otherwise terminated, shall continue until June 30, 2002 and
from year to year thereafter so long as approved annually in
accordance with the 1940 Act; (b) may be terminated without penalty on
sixty days' written notice to the Adviser either by vote of the Board
of Trustees of the Trust or by vote of a majority of the outstanding
shares of the Portfolio; (c) shall automatically terminate in the
event of its assignment; and (d) may be terminated without penalty by
the Adviser on sixty days' written notice to the Trust.
8. This Agreement may be amended in accordance with the 1940 Act.
9. For the purpose of the Agreement, the terms "vote of a majority of the
outstanding shares", "affiliated person" and "assignment" shall have their
respective meanings defined in the 1940 Act and exemptions and
interpretations issued by the Securities and Exchange Commission under the
1940 Act.
<PAGE>
10. In the absence of willful misfeasance, bad faith or gross negligence on the
part of the Adviser, or reckless disregard of its obligations and duties
hereunder, the Adviser shall not be subject to any liability to the Trust
or the Portfolio, to any shareholder of the Trust or the Portfolio or to
any other person, firm or organization, for any act or omission in the
course of, or connected with, rendering services hereunder.
SR&F BASE TRUST on behalf of
SR&F International Portfolio
By: __________________________
Name:
Title:
NEWPORT FUND MANAGEMENT, INC.
By: __________________________
Name:
Title:
A copy of the document establishing the Trust is filed with the Secretary of The
Commonwealth of Massachusetts. This Agreement is executed by officers not as
individuals and is not binding upon any of the Trustees, officers or
shareholders of the Trust individually but only upon the assets of the
Portfolio.
<PAGE>
Appendix B
SUB-ADVISORY AGREEMENT
SUB-ADVISORY AGREEMENT, dated this day of , among STEIN ROE & FARNHAM
INCORPORATED, a Delaware corporation (the "Adviser"), UNIBANK SECURITIES, INC.,
d/b/a "UNIBANK INVESTMENT MANAGEMENT," a company incorporated under the laws of
the State of Delaware (the "Sub-Adviser") and SR&F BASE TRUST (the "Trust"), on
behalf of SR&F Balanced Portfolio (the "Portfolio").
WITNESSETH:
WHEREAS, the Adviser provides the Portfolio, a series of the Trust, an
open-end investment company registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), business services pursuant to the terms and
conditions of an investment advisory agreement dated August 15, 1995, as
amended, (the "Advisory Agreement") between the Adviser and the Trust, on behalf
of the Portfolio; and
WHEREAS, the Sub-Adviser is willing to provide services to the Adviser
on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
of the parties hereto as herein set forth, the parties covenant and agree as
follows:
1. Duties of the Sub-Adviser. Subject to the supervision of the
Trustees of the Trust and the Adviser, the Sub-Adviser will: (a) manage the
investment of a portion of the assets of the Portfolio, as determined by the
Adviser, in accordance with the Portfolio's investment objectives, policies and
limitations as stated in the Portfolio's then current Prospectus (the
"Prospectus") and Statement of Additional Information (the "Statement"), and in
compliance with the 1940 Act and the rules, regulations and orders thereunder;
(b) place purchase and sale orders for portfolio transactions for the Portfolio;
(c) evaluate such economic, statistical and financial information and undertake
such investment research as it shall believe advisable; (d) employ professional
portfolio managers to provide research services to the Portfolio; and (e) report
results to the Board of Trustees of the Trust. The Adviser agrees to provide the
Sub-Adviser with such assistance as may be reasonably requested by the
Sub-Adviser in connection with its activities under this Agreement, including,
without limitation, information concerning the Portfolio, its funds available,
or to become available, for investment and generally as to the conditions of the
Portfolio's affairs.
Should the Trustees of the Trust or the Adviser at any time make any
determination as to investment policy and notify the Sub-Adviser thereof in
writing, the Sub-Adviser shall be bound by such determination for the period, if
any, specified in such notice or until notified that such determination has been
revoked. Further, the Adviser or the Trustees of the Trust may at any time, upon
written notice to the Sub-Adviser, suspend or restrict the right of the
Sub-Adviser to determine what assets of the Portfolio shall be purchased or sold
and what portion, if any, of the Portfolio's assets shall be held uninvested. It
is understood that the Adviser undertakes to discuss with the Sub-Adviser any
such determinations of investment policy and any such suspension or restrictions
on the right of the Sub-Adviser to determine what assets of the Portfolio shall
be purchased or sold or held uninvested, prior to the implementation thereof.
2. Certain Information to the Sub-Adviser. Copies of the Prospectus and
the Statement have been delivered to the Sub-Adviser. The Adviser agrees to
notify the Sub-Adviser of each change in the investment policies of the
Portfolio and to provide to the Sub-Adviser as promptly as practicable copies of
all amendments and supplements to the Prospectus and the Statement. In addition,
the Adviser will promptly provide the Sub-Adviser with any procedures applicable
to the Sub-Adviser adopted from time to time by the Trustees of the Trust and
agrees to provide promptly to the Sub-Adviser copies of all amendments thereto.
3. Execution of Certain Documents. Subject to any other written
instructions of the Adviser and the Trustees of the Trust, the Sub-Adviser is
hereby appointed the Adviser's and the Trust's agent and attorney-in-fact to
execute account documentation, agreements, contracts and other documents as the
Sub-Adviser shall be requested by brokers, dealers, counterparties and other
persons in connection with its management of the assets of the Portfolio.
4. Reports. The Sub-Adviser shall furnish to the Trustees of the Trust
or the Adviser, or both, as may be appropriate, quarterly reports of its
activities on behalf of the Portfolio, as required by applicable law or as
otherwise requested from time to time by the Trustees of the Trust or the
Adviser, and such additional information, reports, evaluations, analyses and
opinions as the Trustees of the Trust or the Adviser, as appropriate, may
request from time to time.
5. Compensation of the Sub-Adviser. For the services to be rendered by
the Sub-Adviser under this Agreement, the Adviser shall pay to the Sub-Adviser
compensation, computed and paid monthly in arrears in U.S. dollars, at an annual
rate of 0.40% of the average daily net asset value of the portion of the
Portfolio's assets under management by the Sub-Adviser. If the Sub-Adviser shall
serve for less than the whole of any month, the compensation payable to the
Sub-Adviser with respect to the Portfolio will be prorated. The Sub-Adviser will
pay its expenses incurred in performing its duties under this Agreement. Neither
the Trust nor the Portfolio shall be liable to the Sub-Adviser for the
compensation of the Sub-Adviser. For the purpose of determining fees payable to
the Sub-Adviser, the value of the Portfolio's net assets shall be computed at
the times and in the manner specified in the Prospectus and/or Statement.
6. Limitation of Liability of the Sub-Adviser. The Sub-Adviser shall
not be liable for any error of judgment or mistake of law or for any loss
arising out of any investment or for any act or omission in the execution and
management of the Portfolio, except for willful misfeasance, bad faith or gross
negligence in the performance of its duties and obligations hereunder. The
Trust, on behalf of the Portfolio, may enforce any obligations of the
Sub-Adviser under this Agreement and may recover directly from the Sub-Adviser
for any liability it may have to the Portfolio.
7. Activities of the Sub-Adviser. The services of the Sub-Adviser to
the Portfolio are not deemed to be exclusive, the Sub-Adviser being free to
render investment advisory and/or other services to others.
8. Covenants of the Sub-Adviser. The Sub-Adviser agrees that it (a)
will not deal with itself, "affiliated persons" of the Sub-Adviser, the Trustees
of the Trust or the Portfolio's distributor, as principals, agents, brokers or
dealers in making purchases or sales of securities or other property for the
account of the Portfolio, except as permitted by the 1940 Act and the rules,
regulations and orders thereunder and subject to the prior written approval of
the Adviser, and except in accordance with Rule 17e-1 procedures as approved by
the Trustees from time to time and (b) will comply with all other provisions of
the then-current Prospectus and Statement relative to the Sub-Adviser and its
trustees, officers, employees and affiliates.
9. Representations, Warranties and Additional Agreements of the
Sub-Adviser. The Sub-Adviser represents, warrants and agrees that:
(a) It (i) is registered as an investment adviser under the U.S.
Investment Advisers Act of 1940 (the "Advisers Act"), is authorized to undertake
investment business in the U.S. and is registered under the laws of any
jurisdiction in which the Sub-Adviser is required to be registered as an
investment adviser in order to perform its obligations under this Agreement, and
will continue to be so registered for so long as this Agreement remains in
effect; (ii) is not prohibited by the 1940 Act or the Advisers Act from
performing the services contemplated by this Agreement; (iii) has met, and will
continue to meet for so long as this Agreement remains in effect, any other
applicable Federal or State requirements, or the applicable requirements of any
regulatory or industry self-regulatory agency, necessary to be met in order to
perform the services contemplated by this Agreement; (iv) has the authority to
enter into and perform the services contemplated by this Agreement; (v) will
immediately notify the Adviser in writing of the occurrence of any event that
would disqualify the Sub-Adviser from serving as an investment adviser of an
investment company pursuant to Section 9(a) of the 1940 Act or otherwise; and
(vi) will immediately notify the Adviser in writing of any change of control of
the Sub-Adviser or any parent of the Sub-Adviser resulting in an "assignment" of
this Agreement.
(b) It will maintain, keep current and preserve on behalf of the
Portfolio, in the manner and for the periods of time required or permitted by
the 1940 Act and the rules, regulations and orders thereunder and the Advisers
Act and the rules, regulations and orders thereunder, records relating to
investment transactions made by the Sub-Adviser for the Portfolio as may be
reasonably requested by the Adviser or the Portfolio from time to time. The
Sub-Adviser agrees that such records are the property of the Portfolio, and will
be surrendered to the Portfolio promptly upon request.
(c) The Sub-Adviser has adopted a written code of ethics complying with
the requirements of Rule 17j-1 under the 1940 Act and, if it has not already
done so, will provide the Adviser and the Trust with a copy of such code of
ethics, and upon any amendment to such code of ethics, promptly provide such
amendment. At least annually the Sub-Adviser will provide the Trust and the
Adviser with a certificate signed by the chief compliance officer (or the person
performing such function) of the Sub-Adviser certifying, to the best of his or
her knowledge, compliance with the code of ethics during the immediately
preceding twelve (12) month period, including any material violations of or
amendments to the code of ethics or the administration thereof.
(d) It has provided the Adviser and the Trust with a copy of its Form
ADV as most recently filed with the Securities and Exchange Commission (the
"SEC") and will, promptly after filing any amendment to its Form ADV with the
SEC, furnish a copy of such amendment to the Adviser and the Trust.
10. Duration and Termination of this Agreement. This Agreement shall become
effective on the date first above written and shall govern the relations between
the parties hereto thereafter, and shall remain in force until June 30, 2002 and
from year to year thereafter but only so long as its continuance is
"specifically approved at least annually" by the Board of Trustees of the Trust
or by "vote of a majority of the outstanding voting securities" of the
Portfolio. This Agreement may be terminated at any time without penalty on sixty
days' written notice to the Sub-Adviser by vote of the Board of Trustees of the
Trust, by "vote of a majority of the outstanding voting securities" of the
Portfolio, or by the Adviser. This Agreement also may be terminated at any time
without penalty by the Sub-Advisor on ninety days' written notice to the Adviser
and Trust. This Agreement shall automatically terminate in the event of its
"assignment" or in the event that the Advisory Agreement shall have terminated
for any reason.
11. Amendments to this Agreement. This Agreement may be amended in
accordance with the 1940 Act.
12. Certain Definitions. The terms "specifically approved at least
annually", "vote of a majority of the outstanding voting securities",
"assignment", "control", "affiliated persons" and "interested person", when used
in this Agreement, shall have the respective meanings specified, and shall be
construed in a manner consistent with, the 1940 Act and the rules, regulations
and orders thereunder, subject, however, to such exemptions as may be granted by
the SEC under the 1940 Act.
13. Survival of Representations and Warranties; Duty to Update
Information. All representations and warranties made by the Sub-Adviser pursuant
to Section 9 hereof shall survive for the duration of this Agreement and the
Sub-Adviser shall immediately notify, but in no event later than five (5)
business days, the Adviser in writing upon becoming aware that any of the
foregoing representations and warranties are no longer true.
14. Miscellaneous. This Agreement shall be governed by and construed in
accordance with the internal laws of The Commonwealth of Massachusetts. All
notices provided for by this Agreement shall be in writing and shall be deemed
given when received, against appropriate receipt, by the Sub-Adviser's Secretary
in the case of the Sub-Adviser, the Adviser's General Counsel in the case of the
Adviser, and the Trust's Secretary in the case of the Portfolio, or such other
person as a party shall designate by notice to the other parties. This Agreement
constitutes the entire agreement among the parties hereto and supersedes any
prior agreement among the parties relating to the subject matter hereof. The
section headings of this Agreement are for convenience of reference and do not
constitute a part hereof.
<PAGE>
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered in their names and on their behalf by the undersigned,
thereunto duly authorized, and their respective seals to be hereto affixed, all
as of the day and year first written above.
STEIN ROE & FARNHAM INCORPORATED
By:
-------------------------------------
Name:
Title:
UNIBANK SECURITIES, INC.
By:
--------------------------------------
Name:
Title:
SR&F BASE TRUST on behalf of SR&F
Balanced Portfolio
By:
--------------------------------------
Name:
Title:
--------
1 The Liberty - Stein Roe Mutual Funds do not currently provide pension or
retirement plan benefits to the Trustees.
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
Stein Roe Services, Inc.
Stein Roe Asia Pacific Fund
Liberty Midcap Growth Fund
Stein Roe Midcap Growth Fund, Class S
Stein Roe Focus Fund
Liberty Focus Fund, Class A
Stein Roe Capital Opportunities Fund
Liberty Capital Opportunities Fund, Class A
Stein Roe Small Company Growth Fund
Liberty Small Company Growth Fund, Class A
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1. Proposal to elect eleven Trustees (Item 1 of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
<PAGE>
MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Balanced Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove a new sub-advisory agreement with Unibank
Securities, Inc. (Item 3. of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the Balanced Portfolio of SR&F Base Trust
(Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Cash Reserves Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohitibing the purchase of securities on margin as
non-fundamental for the Cash Reserves Portfolio of SR&F Base Trust (Item 4.(e)
of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the Cash Reserves Portfolio of SR&F Base
Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Liberty -- Stein Roe Institutional Floating Rate Income Fund
Liberty Floating Rate Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Managers for Stein Roe Floating Rate Limited
Liability Company (Item 1.(c) of the Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities on margin as
non-fundamental for Stein Roe Floating Rate Limited Liability Company (Item
4.(h) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for Stein Roe Floating Rate Limited Liability
Company (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Growth Stock Fund
Liberty Growth Stock Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the Growth Stock Portfolio of SR&F Base
Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe High -- Yield Municipals Fund, Class S
Liberty High Income Municipals Fund, Class A
Stein Roe Advisor High - Yield Municipals Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities on margin as
non-fundamental for the High - Yield Municipals Portfolio of SR&F Base Trust
(Item 4.(f) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the pledging of securities as non-fundamental (Item
5.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the pledging of securities as non-fundamental
for the High - Yield Municipals Portfolio of SR&F Base Trust (Item 5.(b) of the
Notice).
For Against Abstain
-- -- --
|--| |--| |--|
7. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities from affiliates of the Fund
as non-fundamental (Item 6.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
8. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities from affiliates of
the Fund as non-fundamental for the High - Yield Municipals Portfolio of SR&F
Base Trust (Item 6.(c) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
9. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
10. To approve or disapprove a similar modification of the fundamental
investment restriction relating to borrowing for the High - Municipals Portfolio
of SR&F Base Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe High Yield Fund, Class S
Liberty High Yield Bond Fund, Class A
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities on margin as
non-fundamental for the High Yield Portfolio of SR&F Base Trust (Item 4.(b) of
the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the High Yield Portfolio of SR&F Base
Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Income Fund, Class S
Liberty Income Bond Fund, Class A
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities on margin as
non-fundamental for the Income Portfolio of SR&F Base Trust (Item 4.(b) of the
Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the Income Portfolio of SR&F Base Trust
(Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Institutional Client High Yield Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
3. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
<PAGE>
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Intermediate Bond Fund, Class S
Liberty Intermediate Bond Fund, Class A
Stein Roe Advisor Intermediate Bond Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohitibing the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities on margin as
non-fundamental for the Intermediate Bond Portfolio of SR&F Base Trust (Item
4.(d) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the Intermediate Bond Portfolio of SR&F
Base Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Intermediate Municipals Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the pledging of securities as non-fundamental (Item
5.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
<PAGE>
4. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities from affiliates of the Fund
as non-fundamental (Item 6.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe International Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2.To approve or disapprove a new agreement with Newport Fund Management, Inc.
(Item 2 of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
3. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar modification to the fundamental investment
restriction relating to borrowing for the International Portfolio of SR&F Base
Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Managed Municipals Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the pledging of securities as non-fundamental (Item
5.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
<PAGE>
4. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities from affiliates of the Fund
as non-fundamental (Item 6.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of "other securities" as non-fundamental
(Item 7.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE
AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Stein Roe Municipal Money Market Fund
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities on margin as non-fundamental
(Item 4.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities on margin as
non-fundamental for the Municipal Money Market Portfolio of SR&F Base Trust
(Item 4.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
5. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the pledging of securities as non-fundamental (Item
5.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
6. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the pledging of securities as non-fundamental
for the Municipal Money Market Portfolio of SR&F Base Trust (Item 5.(c) of the
Notice).
For Against Abstain
-- -- --
|--| |--| |--|
7. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of securities from affiliates of the Fund
as non-fundamental (Item 6.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
8. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of securities from affiliates of
the Fund as non-fundamental for the Municipal Money Market Portfolio of SR&F
Base Trust (Item 6.(c) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
9. To approve or disapprove the reclassification of the fundamental investment
restriction prohibiting the purchase of "other securities" as non-fundamental
(Item 7.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
10. To approve or disapprove a similar reclassification of the fundamental
investment restriction prohibiting the purchase of "other securities" as
non-fundamental for the Municipal Money Market Portfolio of SR&F Base Trust
(Item 7.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
11. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
<PAGE>
12. To approve or disapprove a similar modification of the fundamental
investment restriction relating to borrowing for the Municipal Money Market
Portfolio of SR&F Base Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
PLEASE VOTE PROMPTLY
*********************************
<PAGE>
Your vote is important, no matter how many shares you own. Please vote on the
reverse side of this proxy card and sign in the space(s) provided. Return your
completed proxy card in the enclosed envelope today.
You may receive additional proxies for other accounts. These are not duplicates;
you should sign and return each proxy card in order for your votes to be
counted.
This proxy is solicited on behalf of the Board of Trustees. The signers of this
proxy hereby appoint William J. Ballou, Suzan M. Barron, Stephen E. Gibson,
Russell L. Kane, Pamela A. McGrath, and Vincent P. Pietropaolo each of them
proxies of the signers, with power of substitution to vote at the
Special Meeting of Shareholders to be held at Boston, Massachusetts, on
Wednesday, December 27, 2000, and at any adjournments, as specified herein, and
in accordance with their best judgement, on any other business that may properly
come before this meeting.
After careful review, the Board of Trustees unanimously has recommended a vote
"FOR" all matters.
<PAGE>
[Liberty Logo] LIBERTY
SteinRoe Services, Inc.
Liberty Growth Investor Fund Class A, B, C, Z
Stein Roe Growth Investor Fund, Class S
Stein Roe Young Investor
Liberty Young Investor
This proxy, when properly executed, will be voted in the manner directed herein
and, absent direction, will be voted FOR each Item below. This proxy will be
voted in accordance with the holder's best judgement as to any other matter.
The Board of Trustees recommends a vote FOR the following Items:
1.(a) Proposal to elect eleven Trustees (Item 1.(a) of the Notice).
(01) Douglas A. Hacker
(02) Janet Langford Kelly
(03) Richard W. Lowry
(04) Salvatore Macera
(05) William E. Mayer
(06) Charles Nelson
(07) John J. Neuhauser
(08) Joseph R. Palombo
(09) Thomas E. Stitzel
(10) Thomas C. Theobald
(11) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
2. Proposal to elect eleven Trustees for the SR&F Base Trust (Item 1.(b) of the
Notice).
(12) Douglas A. Hacker
(13) Janet Langford Kelly
(14) Richard W. Lowry
(15) Salvatore Macera
(16) William E. Mayer
(17) Charles Nelson
(18) John J. Neuhauser
(19) Joseph R. Palombo
(20) Thomas E. Stitzel
(21) Thomas C. Theobald
(22) Anne-Lee Verville
For Withheld For All
All From All Nominees
Nominees Nominees Except as
Noted
-- -- --
|--| |--| |--|
<PAGE>
3. To approve or disapprove the modification of the fundamental investment
restriction relating to borrowing (Item 8.(a) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
4. To approve or disapprove a similar modification of the fundamental investment
restriction relating to borrowing for the Growth Investor Portfolio of SR&F Base
Trust (Item 8.(b) of the Notice).
For Against Abstain
-- -- --
|--| |--| |--|
|__|MARK BOX AT RIGHT FOR ADDRESS CHANGE AND NOTE BELOW |__|
----------------------------------------
----------------------------------------
PLEASE MARK, SIGN DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
Please sign exactly as name or names appear hereon. Joint owners should each
sign personally. When signing as attorney, executor, administrator, trustee or
guardian, please give full corporate name by President or other authorized
officer. If a partnership, please sign in partnership name by authorized person.
Date_________________
------------------------- ----------------------
Shareholder sign here Co-owner sign here
<PAGE>
TWO CONVENIENT WAYS TO VOTE YOUR PROXY
PROXY VOTING--QUICK AND CONVENIENT
The enclosed proxy statement provides details on important issues affecting your
Liberty and Stein Roe Funds. The Board of Trustees recommends that you vote for
all proposals.
We are offering two ways to vote: by internet or fax. These methods may be
quicker and more convenient than the traditional method of mailing back your
proxy card. Please follow the simple instructions on this proxy insert.
If you are voting by internet or fax, you SHOULD NOT mail your proxy card.
YOUR PROXY VOTE IS IMPORTANT!
<TABLE>
<CAPTION>
Vote by Internet: Vote by Fax:
<S> <C>
o Read the proxy statement and have your proxy card o Read the proxy statement.
available.
o Visit our Web site (www.libertyfunds.com or o Fax your proxy card to 1-800-733-1885.
www.steinroe.com) and go to "Proxy Voting."
o When you are ready to vote, click on the [blue]
"Vote My Proxy" link.
o Enter the 14-digit Control Number from your proxy card.
o Follow the instructions provided on the site.
</TABLE>
[code - for 14-digit control numbers]
<PAGE>
CONVENIENT WAY TO VOTE YOUR PROXY
PROXY VOTING--QUICK AND CONVENIENT
The enclosed proxy statement provides details on important issues affecting your
Liberty and Stein Roe Funds. The Board of Trustees recommends that you vote for
all proposals.
We are offering another way to vote: by internet. This method may be quicker and
more convenient than the traditional method of mailing back your proxy card.
Please follow the simple instructions on this proxy insert.
If you are voting by internet, you SHOULD NOT mail your proxy card.
YOUR PROXY VOTE IS IMPORTANT!
Vote by Internet:
o Read the proxy statement and have your proxy card available.
o Visit our Web site (www.libertyfunds.com or www.steinroe.com) and go to "Proxy
Voting."
o When you are ready to vote, click on the [red] "Vote My Proxy" link.
o Enter the 12-digit Control Number from your proxy card.
o Follow the instructions provided on the site.
[code - for 12-digit control number]