LIBERTY - STEIN ROE FUNDS INVESTMENT TRUST
Stein Roe Balanced Fund
Stein Roe Asia Pacific Fund
Liberty Growth Investor Fund (including Stein Roe Growth Investor Fund, Class S)
Stein Roe Growth Stock Fund
Liberty Midcap Growth Fund (including Stein Roe Midcap Growth Fund, Class S
Stein Roe Focus Fund (including Liberty Focus Fund, Class A)
Stein Roe Capital Opportunities Fund (including
Liberty Capital Opportunities Fund, Class A)
Stein Roe Small Company Growth Fund (including
Liberty Small Company Growth Fund, Class A)
Stein Roe Young Investor Fund
Stein Roe International Fund
Liberty Value Opportunities Fund (including Stein
Roe Growth & Income Fund, Class S)
Stein Roe Disciplined Stock Fund
LIBERTY - STEIN ROE FUNDS MUNICIPAL TRUST
Stein Roe Intermediate Municipals Fund
Stein Roe High-Yield Municipals Fund (including
Liberty High Income Municipals Fund, Class A)
Stein Roe Municipal Money Market Fund
Stein Roe Managed Municipals Fund
LIBERTY - STEIN ROE FUNDS TRUST
Stein Roe Institutional Client High Yield Fund
LIBERTY - STEIN ROE ADVISOR TRUST
Liberty Young Investor Fund
Liberty Growth Stock Fund
Stein Roe Advisor High - Yield Municipals Fund
Stein Roe Advisor Intermediate Bond Fund
LIBERTY - STEIN ROE FUNDS INCOME TRUST
Stein Roe Income Fund (including Liberty Income Bond Fund, Class A)
Stein Roe Intermediate Bond Fund (including Liberty Intermediate Bond
Fund, Class A)
Stein Roe High Yield Fund (including Liberty High Yield Bond Fund, Class A)
Stein Roe Cash Reserves Fund
LIBERTY FLOATING RATE FUND
The Funds listed above are referred to collectively as the "Funds" and the
Trusts listed above are referred to collectively as the "Trusts."
Supplement to Statements of Additional Information
Special Meetings of Shareholders of the Funds (Meetings) were held on December
27, 2000. At the Meetings, each of Richard W. Lowry, Salvatore Macera, William
E. Mayer, John J. Neuhauser and Anne-Lee Verville were elected as new trustees
of the Trusts. As a result, each Fund's Statement of Additional Information is
amended to include the following information on new trustees:
<TABLE>
<S> <C> <C>
Position held
Name, Age; Address With the Trust Principal occupation(s) during past five years
------------------ -------------- ----------------------------------------------
Richard W. Lowry, 64 Trustee Private Investor since 1987 (formerly Chairman and
10701 Charleston Drive Chief Executive Officer, U.S. Plywood Corporation
Vero Beach, FL 32963 (building products manufacturer)).
Salvatore Macera, 69 Trustee Private Investor since 1981 (formerly Executive Vice
26 Little Neck Lane President and Director of Itek Corporation
New Seabury, MA 02649 (electronics)).
William E. Mayer(1), 60 Trustee Partner, Park Avenue Equity Partners (venture capital)
500 Park Avenue, 5th Floor since November, 1996; Dean, College of Business and
New York, NY 10022 Management, University of Maryland prior thereto;
Director, Johns Manville (building
products manufacturer), Lee Enterprises (print
and on-line media) and WR Hambrecht + Co (financial
service provider).
John J. Neuhauser, 57 Trustee Academic Vice President and Dean of Faculties,
Boston 84 College Road College since August, 1999; Dean,
Boston College Chestnut Hill, MA 02467-3838 School
of Management prior thereto.
Thomas E. Stitzel, 64 Trustee Business Consultant since 1999; Professor of Finance
2208 Tawny Woods Place and Dean prior thereto, College of Business, Boise
Boise, ID 83706 State University prior thereto; Chartered Financial
Analyst.
Anne-Lee Verville, 54 Trustee Consultant since 1997; General Manager, Global
359 Stickney Hill Road Education Industry prior thereto (formerly President,
Hopkinton, NH 03229 Applications Solutions Division, IBM Corporation
(global education and global applications)).
</TABLE>
(1) Mr. Mayer is an "interested person," as defined in the Investment Company
Act of 1940 (1940 Act) because he is a Director of WR Hambrecht + Co. (a
registered broker-dealer).
The Board of Trustees consists of the six new trustees as well as the current
trustees, Ms. Kelly and Messrs. Hacker, Nelson and Theobald. Messrs. Bacon, Boyd
and Cook did not stand for reelection and retired on December 27, 2000.
The following table sets forth the compensation paid to Ms. Verville and Messrs.
Lowry, Macera, Mayer, Neuhauser and Stitzel in their capacities as Trustees of
the Liberty Funds complex(2):
Total Compensation From the Fund Complex Paid to the
Trustee Trustees for the Calendar Year Ended December 31, 1999
------- ------------------------------------------------------
Mr. Lowry $ 97,000
Mr. Macera 95,000
Mr. Mayer 101,000
Mr. Neuhauser 101,252
Mr. Stitzel 95,000
Ms. Verville 96,000
(2) At December 31, 1999, the complex consisted of 51 open-end and 8 closed-end
management investment company portfolios in the Liberty Funds Group -
Boston and 12 open-end management investment portfolios in the Liberty
Variable Investment Trust (together, the Fund Complex).
DIR-35/523E-0101 January 16, 2001