STEIN ROE ADVISOR SELECT GROWTH & INCOME FUND
Class A, B, C and Z shares
SUPPLEMENT TO PROSPECTUSES DATED NOVEMBER 22, 1999
Replacing Supplements dated June 23, 2000 and August 1, 2000
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Effective July 14, 2000, the Fund changed its name to "Liberty Value
Opportunity Fund."
The section of the prospectus entitled "Principal Investment Strategy" is
replaced with the following:
Principal Investment Strategy Growth & Income Fund invests all of its assets in
SR&F Growth & Income Portfolio as part of a master fund/feeder fund structure.
The Portfolio invests primarily in common stocks of well-established companies
having large-market capitalizations. The Portfolio may also invest in companies
having midsized market capitalizations. The Portfolio may also invest up to 25%
of its assets in foreign stocks. In selecting investments for the Fund, the
advisor, uses a bottom-up, fundamental analysis to find well-managed businesses
selling at very attractive valuations. The advisor focuses on the stocks of
companies that have experienced management, broad, highly diversified product
lines, deep financial resources, easy access to credit and a history of paying
dividends.
The advisor may sell a portfolio holding if the security reaches the portfolio
managers' price target or if the company has a deterioration of fundamentals
such as failing to meet key operating benchmarks. The advisor may also sell a
portfolio holding to fund redemptions.
The following paragraph is added to section entitled Principal Investment Risks:
The securities issued by mid-capitalization companies may have more risk than
those of larger companies. These securities may be more susceptible to market
downturns, and their prices could be more volatile.
The section entitled "Defining Capitalization" is replaced with the following:
DEFINING CAPITALIZATION
The section of the prospectus entitled "Defining Capitalization" is replaced
with the following:
Defining Capitalization. A company's market capitalization is simply its stock
price multiplied by the number of shares of stock it has issued and outstanding.
In the financial markets, companies generally are sorted into one of three
capitalization-based categories: large capitalization (large cap); medium
capitalization (mid cap) or small capitalization (small cap). In defining a
company's market capitalization, we use capitalization-based categories as they
are defined by Morningstar, Inc.
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Morningstar ranks stocks as follows: the top 5% of the 5000 largest domestic
stocks in Morningstar's equity database are classified as large cap, the next
15% of the 5000 are classified as mid cap, and the remaining 80% (as well as
companies that fall outside the largest 5000) are classified as small cap. As of
June 30, 2000, large cap companies had market capitalizations greater than $10.5
billion, mid cap companies had market capitalizations between $1.7 and $10.5
billion, and small cap companies had market capitalizations less than $1.7
billion. These amounts are subject to change.
Effective August 1, 2000, Daniel K. Cantor no longer managed the Fund and the
Portfolio and Harvey Hirschhorn and Scott Schermerhorn began co-managing the
Fund and the Portfolio.
The following is added to the sub-caption, Portfolio Manager, under the section
Managing the Fund:
Harvey Hirschhorn, a senior vice president of Stein Roe & Farnham Incorporated
(Stein Roe), has co-managed the Fund since August, 2000. Mr. Hirschhorn has been
affiliated with and has managed various other funds for Stein Roe, since 1973.
Scott Schermerhorn, a senior vice president of Stein Roe, has co-managed the
Fund since August, 2000. Mr. Schermerhorn has been affiliated with and has
managed various other funds for Colonial Management Associates, Inc., an
affiliate of Stein Roe, since October, 1998. Mr. Schermerhorn was the head of
the value team at Federated Investors from May, 1996 to October, 1998 where he
managed the American Leader Fund, Federated Stock Trust and Federated Stock and
Bond Fund as well as other institutional accounts. Prior to 1996, Mr.
Schermerhorn was a member of the growth and income team at J&W Seligman.
The footnote to the table "Class A Sales Charges" under the subcaption SALES
CHARGES under the section YOUR ACCOUNT is revised as follows:
Class A shares bought without an initial sales charge in accounts aggregating $1
million to $25 million at the time of purchase are subject to a 1% CDSC if the
shares are sold within 18 months of the time of purchase. Subsequent Class A
purchases that bring your account value above $1 million are subject to a CDSC
if redeemed within 18 months of the date of purchase. The 18 month period begins
on the first day of the month following each purchase. The contingent deferred
sales charge does not apply to retirement plans purchased through a fee-based
program.
The following replaces the table called "Purchases Over $1 Million" under the
subcaption SALES CHARGES under the section YOUR ACCOUNT:
Amount purchased Commission %
First $3 million 1.00
$3 million to less than $5 million 0.80
$5 million to less than $25 million 0.50
$25 million or more 0.25*
* Paid over 12 months but only to the extent the shares remain outstanding.
For Class A share purchases by participants in certain group retirement plans
offered through a fee-based program, financial advisors receive a 1% commission
from the distributor on all purchases of less than $3 million.
August 2, 2000
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Stein Roe Growth & Income Fund
Class S Shares
Supplement to Prospectus dated
February 1, 2000
Effective August 1, 2000, Daniel K. Cantor and Jeff Kinzel no longer managed the
Fund and Harvey Hirschhorn and Scott Schermerhorn began co-managing the Fund.
The sub-caption, Portfolio Managers, under the section The Funds' Management is
changed with respect to the Fund, and information relating to Mr. Schermerhorn
is added, as follows:
Growth & Income Fund/Growth & Income Portfolio - Harvey Hirschhorn, portfolio
co-manager since August, 2000; Scott Schermerhorn, portfolio co-manager since
August, 2000.
Scott Schermerhorn, a senior vice president of Stein Roe & Farnham Incorporated
(Stein Roe), has managed the Fund since August, 2000. Mr. Schermerhorn has been
affiliated with and has managed various other funds for Colonial Management
Associates, Inc., an affiliate of Stein Roe, since October, 1998. Mr.
Schermerhorn was the head of the value team at Federated Investors from May,
1996 to October, 1998 where he managed the American Leader Fund, Federated Stock
Trust and Federated Stock and Bond Fund as well as other institutional accounts.
Prior to 1996, Mr. Schermerhorn was a member of the growth and income team at
J&W Seligman.
August 2, 2000
