STEINROE VARIABLE INVESTMENT TRUST, N-30D, 1999-09-10

STEINROE VARIABLE INVESTMENT TRUST
N-30D, 1999-09-10

Previous: PAINEWEBBER MORTGAGE ACCEPTANCE CORPORATION IV, 8-K, 1999-09-10

Next: COVA VARIABLE ANNUITY ACCOUNT ONE, 497, 1999-09-10

Liberty Variable Investment Trust

Colonial Global Equity Fund, Variable Series
Colonial Growth and Income Fund, Variable Series
Colonial High Yield Securities Fund, Variable Series
Colonial International Fund for Growth, Variable Series
Colonial International Horizons Fund, Variable Series
Colonial Small Cap Value Fund, Variable Series
Colonial Strategic Income Fund, Variable Series
Colonial U.S. Growth & Income Fund, Variable Series
Crabbe Huson Real Estate Investment Fund, Variable Series
Liberty All-Star Equity Fund, Variable Series
Newport Tiger Fund, Variable Series
Stein Roe Global Utilities Fund, Variable Series

SteinRoe Variable Investment Trust

*Stein Roe Small Company Growth Fund, Variable Series
Stein Roe Growth Stock Fund, Variable Series
Stein Roe Balanced Fund, Variable Series
Stein Roe Mortgage Securities Fund, Variable Series
Stein Roe Money Market Fund, Variable Series

Semiannual Report
June 30, 1999
<PAGE>

- --------------------------------------------------------------------------------
PRESIDENTS' LETTER
Liberty Variable Investment Trust
SteinRoe Variable Investment Trust
- --------------------------------------------------------------------------------

Dear Contract Owner:

We are pleased to present the 1999 semiannual report for Liberty Variable
Investment Trust and Stein Roe Variable Investment Trust. The six months ended
June 30, 1999 were a rewarding time for domestic and international equity
investors and a period of volatility and uncertainty for domestic bonds.

On the pages that follow, you'll find a portfolio manager's discussion of fund
performance, investment strategy and market conditions for each of the 17
series of the two trusts. We encourage you to review how your fund(s) fared.

A Climate of Growth

Thus far, 1999 has been an excellent year for the U.S. economy, as growth in
many sectors has been higher than expected. Corporate profits, too, have been
robust. Advances in technology--particularly electronic commerce--as well as
prudent Federal Reserve monetary policy, have helped fuel one of the longest
and strongest U.S. booms since the end of World War II. As of June 30, 1999,
the nation's unemployment rate stood at 4.3%, a level not seen since the 1960s.

Fear of Inflation

America's growing economy can help corporate bond issuers and homeowners meet
debt payments, but too much growth can cause the cost of living to accelerate.
Higher prices, in turn, reduce the purchasing power of bond income.

Fear of higher inflation has cast a shadow over fixed-income securities since
the spring. When the government reported that inflation in April was
higher-than-expected, bond traders demanded much higher bond yields. Bond
prices--which move in the opposite direction of yields--fell sharply. This fear
was compounded by the resignation of a U.S. Treasury Secretary who helped
engineer the first budget surpluses in a generation; higher oil prices and
reports of building material and labor shortages. As of June 30, 1999, the
average yield of 30-year U.S. Treasury bonds stood at 5.98%, nearly 1% higher
than six months earlier.

Small Company Stocks Fared Well

Despite higher interest rates, domestic small company stocks showed renewed
vigor during the first half of calendar year 1999. In fact, between March 31,
1999 and June 30, 1999, the unmanaged S&P Small Cap 600 Index provided a return
of 15.42%, more than twice the return of the unmanaged S&P 500 Index, a group
of large-company stocks.

We believe current U.S. economic conditions can help many small companies
thrive over the long term. Our nation's sound economic underpinnings can be
easy to forget amid the barrage of daily headlines about inflation, market
sentiment and the latest short-term change in interest rates. While we can't
say what the future holds, we believe more investors appear to be focusing on
the size of an investment opportunity rather than the market capitalization of
a company.

A Slowdown in Europe; Emerging Markets Rebound

Outside the U.S., the investing climate was mixed during the first half of
1999. Asian emerging markets rebounded and Japan delivered strong returns for
the first time in several years amid signs of economic recovery. Western
Europe, however, suffered fallout from the Russian and Brazilian currency
devaluations. Slow growth and unfavorable political developments in Germany
depressed stocks there. Stocks in the United Kingdom rallied in response to
several interest rate cuts by the central bank.

Since January, global commodity markets--especially oil--have firmed, and this
helped strengthen stock prices in emerging market countries where basic
materials and natural resource companies account for a large share of GDP.
Stronger-than-expected growth in the U.S. resulted in high demand for imported
goods, further boosting growth in export-dependent countries.
<PAGE>

Think Long-Term

Whether you are a global investor or have a portfolio focused entirely on the
U.S., we encourage you to look at your annuity investment as you would an
investment in your own business or property, one that takes time and commitment
to bear fruit. Investing in an annuity is a long-term affair, especially
commitments to small-cap and international stocks because of the increased
risks and potential volatility.

On behalf of Liberty and Stein Roe, we wish to thank you for your commitment to
a variable annuity. We will do everything we can to maintain your continued
confidence in our organizations.

Sincerely,

/s/ Stephen E. Gibson /s/ Thomas W. Butch
- ------------------------------- -----------------------------
Stephen E. Gibson Thomas W. Butch
President, Liberty Variable President, Stein Roe Variable
Investment Trust Investment Trust
August 11, 1999 August 11, 1999

Investments in small company stocks may experience greater volatility. Overseas
investing involves economic, political, accounting and currency risks not
associated with investments in domestic securities. Investing in emerging
markets involves additional risks not associated with established international
markets. Each index cited above is an unmanaged group of stocks that differs
from any Liberty or Stein Roe fund; they are not available for direct
investment.

<PAGE>

- --------------------------------------------------------------------------------
TABLE OF CONTENTS

- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Liberty Variable Investment Trust

Portfolio Managers' Discussions:

Colonial Global Equity Fund, Variable Series ...................... 1

Colonial Growth and Income Fund, Variable Series .................. 2

Colonial High Yield Securities Fund, Variable Series .............. 3

Colonial International Fund for Growth, Variable Series ........... 4

Colonial International Horizons Fund, Variable Series ............. 5

Colonial Small Cap Value Fund, Variable Series .................... 6

Colonial Strategic Income Fund, Variable Series ................... 7

Colonial U.S. Growth and Income Fund, Variable Series ............. 9

Crabbe Huson Real Estate Investment Fund, Variable Series ......... 10

Liberty All-Star Equity Fund, Variable Series ..................... 11

Newport Tiger Fund, Variable Series ............................... 12

Stein Roe Global Utilities Fund, Variable Series .................. 13

Financial Statements:

Colonial Global Equity Fund, Variable Series ...................... 14

Colonial Growth and Income Fund, Variable Series .................. 23

Colonial High Yield Securities Fund, Variable Series .............. 31

Colonial International Fund for Growth, Variable Series ........... 38

Colonial International Horizons Fund, Variable Series ............. 48

Colonial Small Cap Value Fund, Variable Series .................... 57

Colonial Strategic Income Fund, Variable Series ................... 66

Colonial U.S. Growth & Income Fund, Variable Series ............... 77

Crabbe Huson Real Estate Investment Fund, Variable Series ......... 85

Liberty All-Star Equity Fund, Variable Series ..................... 91

Newport Tiger Fund, Variable Series ............................... 99

Stein Roe Global Utilities Fund, Variable Series .................. 106
</TABLE>

<PAGE>

- --------------------------------------------------------------------------------
TABLE OF CONTENTS

- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
SteinRoe Variable Investment Trust

Portfolio Managers' Discussions:

Stein Roe Small Company Growth Fund, Variable Series ......... 114

Stein Roe Growth Stock Fund, Variable Series ................. 116

Stein Roe Balanced Fund, Variable Series ..................... 118

Stein Roe Mortgage Securities Fund, Variable Series .......... 120

Stein Roe Money Market Fund, Variable Series ................. 122

Financial Statements:

Stein Roe Small Company Growth Fund, Variable Series ......... 123

Stein Roe Growth Stock Fund, Variable Series ................. 131

Stein Roe Balanced Fund, Variable Series ..................... 137

Stein Roe Mortgage Securities Fund, Variable Series .......... 145

Stein Roe Money Market Fund, Variable Series ................. 152
</TABLE>

Must be preceded or accompanied by a prospectus.
Liberty Funds Distributor, Inc. 8/99
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Colonial Global Equity Fund, Variable Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial Global Equity Fund, Variable Series seeks long-term growth by
investing primarily in global equity securities.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ............................... 6/1/99
Assuming reinvestment of all distributions
Cumulative total return since 6/1/99 ......... 4.50%
Net asset value per share on 6/30/99 ......... $ 10.45
</TABLE>

Portfolio Manager's Discussion

Gita Rao is portfolio manager of Colonial Global Equity Fund, Variable
Series and a senior vice president of Colonial Management Associates, Inc.
(CMA).

What was the investment environment like leading into the Fund's inception?

Strengthening commodity prices, particularly in oil, helped developing
economies. Europe showed signs of stabilizing, while Japan and Southeast Asia
showed signs of economic recovery. Collectively, these factors became the
catalyst for a more favorable global outlook. The Fund began investment
operations in this environment on June 1, 1999.

What was the Fund's strategy during the period?

The new portfolio is broadly diversified across regional and industrial
sectors. We allocated significant assets in the United Kingdom due to interest
rate cuts which caused stock prices to rise and the United States because of
strong economic growth and low inflation rates. We made core allocations to
emerging markets. The retail sector was avoided, particularly in Europe, since
growth there had slowed.

What is your outlook for the period ahead?

Our global economic outlook has become more positive for several reasons.
The rise in commodity prices should continue to help strengthen those economies
that depend on their export. In addition, after almost 10 years of recession,
Japan's economy appears to be in the early stages of recovery. We made core
allocations to emerging markets, in particular to large companies that are
dominant players in their sectors such as, Telebras (0.78% of total net
assets), a telephone company in Brazil and Cemex (0.72% of total net assets),
the world's largest producer of cement in Mexico. Economic growth in the U.K.
has been reasonable, and we remain positive on its ability to strengthen.

1
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial Growth and Income Fund, Variable Series primarily seeks income
and long-term capital growth, and secondarily, preservation of capital.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 7/1/93
Assuming reinvestment of all distributions
six-month total return ..................... 8.05%
Net asset value per share on 6/30/99 .......... $ 17.71
Net asset value per share on 12/31/98 ......... $ 16.39
</TABLE>

Portfolio Manager's Discussion

John E. Lennon is the portfolio manager for Colonial Growth and Income
Fund, Variable Series and senior vice president of Colonial Management
Associates, Inc.

What was the investment environment like over the past six months?

In an environment of strong economic growth and low inflation, the U.S.
stock market continued to perform well. Worldwide economic developments were
partially responsible for a shift in market leadership during the past six
months. In the first half of the period, the market's gain continued to be
driven by a narrow list of large-capitalization growth stocks. In the latter
half of the period, investors began to focus their attention on the values
available in the broader stock market -- particularly mid-cap and cyclical
stocks. This shift occurred partially as a response to improving global
economic conditions -- principally in the Far East -- and continued strong U.S.
economic growth. While we are encouraged by the development of broader
participation in the market's gain, it is still too early to predict how long
this trend will last.

For the six months ended June 30, 1999, the Fund had a total return of
8.05%, based on net asset value. By comparison, the total returns for the major
stock market indexes were: 12.38% for the large-cap S&P 500 Index and 6.87% for
the mid-cap S&P 400 Index.(1)

What was the Fund's strategy during the period?

During the period, we made some modifications to the portfolio to help
position it for changing market and economic conditions. First, while the Fund
has had a mid-cap bias in recent years, we have been increasing its exposure to
large-cap stocks to represent a broader range of capitalization in the
portfolio. Second, given the improved performance of some overseas markets and
the relative attractiveness of the domestic market, we took advantage of rising
prices to reduce the exposure to foreign stocks from 6.0% of the Fund to 2.0%
at period end.

While some of our computer hardware holdings performed well -- in
particular, Sun Microsystems (0.88% of total net assets) -- others, such as
Compaq underperformed. We used this period of strength for Sun Microsystems to
pare back our position, which had become quite large, and we eliminated our
Compaq holding due to an uncertain outlook for the company.

To shore up the Fund's technology sector, we initiated positions in
several large technology stocks, such as Texas Instruments (2.53% of total net
assets) and Motorola (1.61% of total net assets) whose products should be the
beneficiary of the surging demand for communications equipment. Also, we more
than doubled our position in International Business Machines (2.05% of total
net assets). IBM is in a strong position as a solutions provider for
centralized computing architecture, a business that is being driven by the
growth of the Internet.

What is your outlook for the period ahead?

While we are optimistic about the outlook for the U.S. economy for the
remainder of this year, we are maintaining a vigilant posture. The recent
interest rate hike by the Federal Reserve Board that occurred in late June had
been anticipated by the market and signaled to investors that for now inflation
was under control. However, a continued worldwide rise in economic growth
combined with an increasingly tight U.S. labor market has implications for
inflation as we move forward. If inflation should occur, the Federal Reserve
Board may raise interest rates which would have a slowing effect on the U.S.
economy.

- ----------------------
(1)The Standard & Poor's 500 Index is an unmanaged index that tracks the
performance of 500 widely held, large-capitalization U.S. stocks. The Standard
& Poor's 400 Index is an unmanaged index that tracks the performance of
middle-capitalization U.S. stocks.

2
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust Colonial High Yield Securities Fund, Variable
Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial High Yield Securities Fund, Variable Series seeks high current
income and total return.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 5/19/98
Assuming reinvestment of all distributions
six-month total return ..................... 1.93%
Net asset value per share on 6/30/99 .......... $ 9.49
Net asset value per share on 12/31/98 ......... $ 9.31
</TABLE>

Portfolio Managers' Discussion

Scott B. Richards is a senior vice president of Colonial Management
Associates, Inc. (CMA) and lead manager of Colonial High Yield Securities Fund,
Variable Series. Carl C. Ericson, senior vice president and director of CMA's
Taxable Fixed-Income Department, co-manages the Fund.

What was the investment environment like during the past six months?

Despite an unfavorable interest rate environment, Colonial High Yield
Securities Fund, Variable Series posted positive returns in the first half of
1999. For the six-month period ended June 30, 1999, the Fund generated a total
return of 1.93%.

During the period, much stronger-than-expected U.S. economic growth and
inflationary fears created a negative backdrop for investment grade bonds. As
bond yields moved higher in response to rising interest rates, bond prices
generally declined. However, the comparatively high levels of income provided by
high-yield bonds helped cushion them against those price declines. In addition,
economic strength translated into strong revenues for high-yield companies.

What was the Fund's strategy during the period?

We maintained significant holdings in well-managed cable, broadcast and
media companies (15.30% of total net assets). After falling to depressed levels
last fall, high-yield securities issued by cable and telecommunications
companies were among the market's and the Fund's best performers. For example,
U.K. cable company NTL (1.81% of total net assets) posted strong gains. The
company reported continued rapid growth in the number of subscribers to its
cable television and telephone services and it plans to roll out Internet
access services across the country. On the telecommunications side, Nextel
(1.44% of total net assets), also benefited from strong subscriber growth.

The strength of the U.S. economy, coupled with improvement in many of the
most-troubled foreign economies, helped set the stage for better performance
from select commodity-related companies. Conversely even though oil prices rose
in the spring, the Fund's holdings in oil companies generally proved to be a
disappointment during the six-month period.

What is your outlook for the period ahead?

We have a reasonably favorable outlook for the high-yield bond market.
Although we expect the Federal Reserve Board to hike short-term interest rates
again this year, we don't believe it will be enough to derail the high-yield
market's progress. Barring dramatic interest rate hikes or a significant stock
market correction, we believe that relatively low interest rates and inflation,
coupled with slow but steady economic growth, will continue to favor high-yield
bonds. Looking ahead, we will continue to be selective, generally avoiding less
liquid securities that could experience trouble if the market reverses course.
As always, we'll continue to focus on doing good quality credit research to
identify the market's next winners.

3
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial International Fund for Growth, Variable Series seeks long-term
growth by investing primarily in global equities.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 5/2/94
Assuming reinvestment of all distributions
six-month total return ..................... 8.50%
Net asset value per share on 6/30/99 .......... $ 2.17
Net asset value per share on 12/31/98 ......... $ 2.00
</TABLE>

Portfolio Manager's Discussion

Gita Rao is portfolio manager of Colonial International Fund for Growth,
Variable Series and a senior vice president of Colonial Management Associates,
Inc. (CMA).

What was the investment environment like over the past six months?

Growth in Europe was slow due to a delayed reaction to the Asian crisis
and currency devaluations in Russia and Brazil. Commodity markets firmed in the
fourth quarter of 1998 strengthening stock prices in emerging markets.
Stronger-than-expected growth in the United States resulted in high demand for
imported goods, further boosting the international economy. Japan delivered
strong returns while stock prices in the United Kingdom rallied in response to
several interest rate cuts by the central bank.

What was the Fund's strategy during the period?

We focused our investments in commodity-related energy, metal and mining
markets. Emerging markets also had strong exposure during the past six months.
We allocated significant assets to the U.K. and Japan -- developed markets we
believe will have the greatest potential in this environment. We avoided the
retail sector, particularly in core European countries, due to slow economic
growth.

What is your outlook for the period ahead?

It appears that the markets in core European countries are stabilizing and
may be poised to move upward. We will closely monitor that region in search of
investment opportunities. Emerging markets have rebounded nicely and will
continue to be evaluated to make sure the recovery is sustainable.

4
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Colonial International Horizons Fund,
Variable Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial International Horizons Fund, Variable Series seeks long-term
growth and preservation of capital purchasing power.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ............................... 6/1/99
Assuming reinvestment of all distributions
Cumulative total return since 6/1/99 ......... 4.20%
Net asset value per share on 6/30/99 ......... $ 10.42
</TABLE>

Portfolio Manager's Discussion

Gita Rao is portfolio manager of Colonial International Horizons Fund,
Variable Series and a senior vice president of Colonial Management Associates,
Inc. (CMA)

What was the investment environment like for the Fund?

The Fund began operations on June 1, 1999 in a more stable global economy
than we saw in late 1998 and early 1999. Growth in Europe was slow, prior to
the Fund's inception, due to a delayed reaction to the Asian crisis and
currency devaluations in Russia and Brazil. Commodity markets firmed in the
fourth quarter of 1998 strengthening stock prices in emerging markets.
Stronger-than-expected growth in the United States resulted in high demand for
imported goods, further boosting the international economy. Japan delivered
strong returns while stock prices in the United Kingdom rallied in response to
several interest rate cuts by the central bank.

What was the Fund's strategy during the period?

In the month since the Fund's inception, we focused on allocating the
investments in countries such as the U.K., which benefited from a series of
interest rate cuts by the central bank. We invested in Japan -- an economy that
has begun to turn around after ten years of stagnation. We also invested
selectively in the emerging markets of Southeast Asia because of the strong
growth potential in that region. Our sector weightings favor industries such as
energy, metals and mining, which should benefit from a stable commodities
market. We avoided retail, especially in Western Europe, where growth has
slowed.

What is your outlook for the period ahead?

We are cautiously optimistic about economic trends overseas, and believe
the U.S. should continue to show solid growth in 1999, provided that inflation
remains in check and interest rates do not spike. As we move into the second
and third quarters of 1999, investors should have a better idea whether
stronger global economic growth is sustainable.

5
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust Colonial Small Cap Value Fund, Variable
Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial Small Cap Value Fund, Variable Series seeks long-term growth.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 5/19/98
Assuming reinvestment of all distributions
six-month total return ..................... 1.28%
Net asset value per share on 6/30/99 .......... $ 8.70
Net asset value per share on 12/31/98 ......... $ 8.59
</TABLE>

Portfolio Managers' Discussion

James P. Haynie and Michael Rega are portfolio co-managers of Colonial Small
Cap Value Fund, Variable Series. Mr. Haynie is a senior vice president of
Colonial Management Associates, Inc. (CMA). Mr. Rega is a vice president of
CMA.

What was the investment environment like during the period?

As we began the Fund's fiscal year, Asian and Latin America's financial
problems continued to show signs of recovery as they had in late 1998. The U.S.
economy also continued its upward trend and investors looked to technology
stocks--Internet related "dot com" stocks soared far past their fundamental
valuations. The technology sector accounted for more than 25% of the Russell
2000 and S&P 600 indexes.(1) Later in the period, the market favored deep value
stocks, followed by a broadening of the market, which is a more favorable
environment for stock-pickers.

What was the Fund's strategy during the period?

As the market broadened in the second quarter of 1999, the Fund performed
well. Technology holdings benefited the Fund as we increased our technology
holdings during the period to remain within 5% of the S&P 600 Small Cap Index's
weighting. Avoiding unproven internet or "dot com" stocks that we believed were
overvalued, we focused on more established companies that provide the
infrastructure, or hardware, that the Internet needs to continue growing.

What is your outlook for the period ahead?

Going forward, we believe the recent broadening trend in the market will
continue as investors remain confident in worldwide financial recovery. At the
small cap level, in particular, companies are reporting increased profits as a
result of continued strength in consumer spending and production as well as an
increase in demand for exports.

(1)The Russell 2000 Index is an unmanaged index that tracks the performance of
small-capitalization stocks traded on the New York Stock Exchange, the American
Stock Exchange and the NASDAQ. The Standard & Poor's 600 Index is an unmanaged
index that tracks the performance of small-capitalization U.S. stocks.

6
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Colonial Strategic Income Fund, Variable
Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial Strategic Income Fund, Variable Series seeks as high a level of
current income, as is consistent with prudent risk and maximizing total return.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 7/5/94
Assuming reinvestment of all distributions
six-month total return ..................... 0.36%
Net asset value per share on 6/30/99 .......... $ 11.12
Net asset value per share on 12/31/98 ......... $ 11.08
</TABLE>

Portfolio Manager's Discussion

Carl C. Ericson is portfolio manager of Colonial Strategic Income Fund,
Variable Series. Mr. Ericson is a senior vice president of Colonial Management
Associates, Inc. and director of the Taxable Fixed Income Department.

What was the investment environment like over the past six months?

While fears of higher interest rates weighed on all types of U.S. bonds,
high-yield securities held up well. Partly due to their high coupons,
high-yield bonds were less interest-rate sensitive and tend to perform in
response to the health of the company backing the security, as well as
expectations for inflation or interest rates. Furthermore, the strength of the
economy helped sustain, and in many cases, accelerate the revenues at many
companies that issue high-yield securities.

Among foreign bonds, emerging markets rebounded from last fall's depressed
levels due to evidence of an economic turnaround in some regions. Elsewhere,
much of Western Europe experienced declining bond prices in local currency
terms as a result of interest rates across much of the continent in 1999.
Weakness in the euro, however, aggravated their declines in U.S. dollar terms.

Rather than trying to "time" the market, the Fund remained broadly
diversified among the U.S. government, high-yield corporate and foreign bond
markets. Although that diversification curtailed the Fund's returns over the
past six months, it has provided the Fund with significant returns over longer
periods of time by ensuring participation in positive market moves and
providing some protection against dramatic downturns.

What was the Fund's strategy during the period?

High-Yield Corporate Bonds

The Fund increased its weighting in high-yield corporate bonds (about 41%
of total net assets), which helped performance. High-yield bonds were boosted
by strong economic growth and, because of their high levels of income, were
better insulated from the price declines that plagued government bonds.
Performance in the cable and telecom sectors was particularly strong. U.K.
cable company NTL (1.79% of total net assets) posted strong gains thanks to
rapid growth in the number of subscribers to its cable television and telephone
services. On the telecommunications side, Nextel (0.46% of total net assets)
also benefited from strong subscriber growth.

U.S. Government Bonds

In response to investor uncertainty over the direction of interest rates,
the performance of U.S. Treasurys and agency securities was weak throughout the
past six months. In early 1999, we had somewhat reduced our U.S. government and
agency holdings from 31.5% of total net assets to about 24.1% of total net
assets to find more compelling values in other fixed-income investments. Since
we believed that inflationary concerns were overblown and that U.S. government
bonds played a key role in maintaining good portfolio diversification, we did
not make further reductions.

Foreign Bonds

In early 1999, emerging market bonds were fairly cheap and, in our view,
offered good value. As a result, we initiated positions or added to existing
positions in government debt issued by countries we felt could benefit from a
potential rise in oil prices including Venezuela, Russia, Mexico and Brazil.
When the price of oil moved higher, these holdings performed quite well.

Our holdings in European bonds--primarily from Greece, Norway, and
Sweden--did not perform as well as interest rates rose. But in U.S. dollar
terms, these holdings posted negative returns.

7
<PAGE>

What is your outlook for the period ahead?

We have a reasonably favorable outlook for the high-yield bond market.
Although we expect the Federal Reserve to raise short-term interest rates one
more time this year, we don't believe it will be enough to derail the
high-yield market's progress. Barring more interest rate hikes or a significant
stock market correction, we believe that relatively low interest rates and
inflation, coupled with slow but steady economic growth, will continue to favor
high-yield bonds. Looking ahead, we will continue to be selective, generally
avoiding less liquid high-yield securities that could experience trouble if the
market reverses course.

Over a longer term, we are optimistic about U.S. government securities,
although we believe they could suffer a bit in the short term from continued
uncertainty over the direction of interest rates. As for emerging markets, we
think they still have some room to run, although their gains are unlikely to
rival those posted in the first half of this year. Beyond emerging markets, we
don't see many compelling values among foreign bonds--most offer yields
significantly below U.S. Treasury yields. No matter what the environment, we'll
continue to remain diversified among high-yield, U.S. government and foreign
bonds.

8
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Colonial U.S. Growth & Income Fund, Variable
Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Colonial U.S. Growth & Income Fund, Variable Series(1) seeks long-term
growth and income.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 7/5/94
Assuming reinvestment of all distributions
six-month total return ..................... 9.15%
Net asset value per share on 6/30/99 .......... $ 20.51
Net asset value per share on 12/31/98 ......... $ 18.79
</TABLE>

Portfolio Manager's Discussion

Mark Stoeckle is portfolio manager of Colonial U.S. Growth & Income Fund,
Variable Series and is a senior vice president of Colonial Management
Associates, Inc.

What was the investment environment like over the past six months?

The environment was marked by a series of events that created dramatic
shifts in investor sentiment. Going into the year, economic problems in Asia
and Latin America, coupled with fears of inflation, created an atmosphere of
uncertainty about the direction of the stock market. As a result, investors
sought large-cap, blue-chip stocks for their quality and liquidity. The Dow was
spurred to new highs on the strength of about 18 top growth stocks.

Moving into 1999, Asia and Latin America's financial problems showed signs
of recovery and the U.S. economy continued its upward trend. Though the market
was still led by a few growth leaders, the technology sector, especially
Internet stocks, saw spectacular gains. In March and April, oil prices
rebounded sharply, improving the outlook for energy companies and improvement
in the performance of value stocks and companies in cyclical sectors followed.

What was the Fund's strategy during the period?

The market was unusually narrow with just a few stocks accounting for most
of the total return during the year. While the Fund kept pace with the market
during the first half of the year, we didn't change our strategy to follow the
"hot" sectors in the second half. We believe that over time, our strategy of
broad diversification can smooth the bumps of a volatile market. Where we work
to add value to the investor is through stock selection. We seek to identify
companies with solid management and good business plans that are currently
undervalued relative to other companies in the same economic sector. We believe
this strategy may offer significant long-term gains as the value of each
company is realized.

Another focus for the Fund has been cyclical stocks like manufacturing,
retail and energy. Cyclical commodities got help from OPEC late in the Fund's
fiscal period as members agreed to reduce oil production in an effort to raise
prices. The move was successful raising both oil and natural gas prices,
improving the prospects for energy companies that were so badly hurt by the
Asian crisis. We also saw a hint of more broad, global economic growth by
countries that had been relatively stagnant like Japan and Brazil. If
sustainable, this bodes well for cyclicals going forward.

What is your outlook for the period ahead?

Earnings estimates for the second quarter have yielded few surprises, and
the economic recovery seems real. If this remains true, we believe that the
market will continue to favor a broader range of stocks--an environment
favorable for our management style. Rising inflation, if it occurs, could be a
threat to the market's growth, but the Federal Reserve Board's (Fed's) recent
move to increase interest rates should help to control any inflationary
pressure in the economy. As Chairman Greenspan has signaled the Fed's
commitment to keeping inflation in check, our outlook going into the remainder
of 1999 is a positive one.

(1)Formerly, Colonial U.S. Stock Fund, Variable Series.

9
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Crabbe Huson Real Estate Investment Fund,
Variable Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Crabbe Huson Real Estate Investment Fund, Variable Series seeks to provide
growth of capital and current income.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ............................... 6/1/99
Assuming reinvestment of all distributions
Cumulative total return since 6/1/99 ......... (4.10)%
Net asset value per share on 6/30/99 ......... $ 9.59
</TABLE>

Portfolio Manager's Discussion

Michael B. Stokes is portfolio manager of the Crabbe Huson Real Estate
Investment Fund, Variable Series.

Would you describe the potential benefits of a REIT fund?

A rapidly increasing percentage of real estate properties is being
converted to publicly traded companies in the form of real estate investment
trusts (REITs). A REIT owns a portfolio of real estate properties to earn
profits for its shareholders. An important benefit of a REIT is the income it
generates. REITs pass along virtually all net income to shareholders in the
form of dividends. In addition, REIT shares can increase in value based on the
appreciation potential of the properties owned by the REIT. As a result, a
variable annuity that invests in REITs can provide investors with a convenient
and efficient way to tap the impressive growth and income potential of the
expanding commercial and residential real estate market.

Can you describe your contrarian approach?

Crabbe Huson Real Estate Investment Fund, Variable Series invests
primarily in REITs and equity securities of companies in the real estate
industry. Using a risk-averse strategy known as "contrarian" investing, the
Fund's managers search the real estate market for securities of what they
consider to be high-quality companies available at attractive prices. In
particular, they focus on companies which they believe:

o are out of favor due to industry conditions, company shortfalls, or
prevailing market preferences

o are fundamentally strong, offering solid financial characteristics and
experienced management teams

o possess positive characteristics that may change investor's perceptions
of the value of its stock.

We believe that securities of solid, underpriced companies offering
appreciation potential can represent attractive, more risk-averse investments.
Accordingly, the Fund's managers seek to own a security at the very beginning
of its upward trend. By purchasing securities they believe offer greater upside
potential than downside risk, the Fund provides investors with a sensible
approach towards pursuing their goals.

What was the Fund's strategy during the period?

At inception, mid- and small-cap REITs were undervalued compared to
large-cap REITs. However, our analysis indicated that many of these stocks
offer strong cash flows, adequate dividend coverage and solid growth rates.
Although REIT share prices fell last year, cash flow per share increased and
many companies raised their dividends. The average yield on REITs now exceeds
7.0%, well above the average 1.2% yield on the S&P 500. This presents an
exceptional opportunity for yield-orientated investors, and we believe high
yielding REITs will generate solid returns once broader confidence returns to
the real estate market.

What is your outlook for the period ahead?

Looking ahead, we are encouraged by increasingly favorable trends in the
real estate market. A stronger economy along with rising occupancies and rents
should encourage increased capital flow into REITs from real estate funds and
value-orientated funds. If this occurs, we believe that share prices of REITs
are primed to better reflect the value of their underlying assets.

10
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S DISCUSSION
Liberty Variable Investment Trust Liberty All-Star Equity Fund, Variable Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Liberty All-Star Equity Fund, Variable Series seeks total investment
return, comprised of long-term capital appreciation and current income, through
investment primarily in a diversified portfolio of equity securities. Liberty
Asset Management Company (LAMCO) is the manager of the Fund.

Fund Performance (as of June 30, 1999)

<TABLE>
<S> <C>
Inception date ................................ 11/17/97
Assuming reinvestment of all distributions
six-month total return ..................... 8.57%
Net asset value per share on 6/30/99 .......... $ 12.92
Net asset value per share on 12/31/98 ......... $ 11.90
</TABLE>

Portfolio Managers' Discussion

The Fund's investment program is based upon LAMCO's multi-manager concept.
LAMCO allocates the Fund's portfolio assets on an approximately equal basis
among a number of independent investment management organizations (Portfolio
Managers) -- currently five in number -- each of which employs a different
investment style. LAMCO, from time to time, rebalances the portfolio among the
Portfolio Managers so as to maintain an approximately equal allocation of the
portfolio among them throughout all market cycles.

The Fund's current Portfolio Managers are:

o Boston Partners Asset Management, L.P.;
Investment Style/Value

o J.P. Morgan Investment Management Inc.;
Investment Style/Value

o OpCap Advisors
Investment Style/Value

o Westwood Management Corporation;
Investment Style/Growth

o Wilke/Thompson Capital Management, Inc.;
Investment Style/Growth

What was the investment environment like over the past six months?

The first six months of 1999 was characterized by a rotation in market
leadership from the large-capitalization growth stocks to more cyclically
oriented stocks across a broader capitalization spectrum. The catalyst for this
shift in preference was an increasing perception that domestic growth remained
strong, coupled with evidence that economic conditions were improving abroad. In
addition, many of the cyclical sectors of the market had considerably lower
valuations compared to growth stocks where premiums for their earnings
visibility had risen significantly. As a result, the environment favored both
growth- and value-oriented investment strategies at different points. This style
rotation is illustrated by the performance of the Russell 1000 Growth and Value
Indexes for the first and second quarters. In the first quarter of 1999 the
Growth Index returned 6.4% versus 1.4% for the Value Index. In the second
quarter, the Value Index led the way with a return of 11.3%, followed by the
Growth Index with a return of 3.8%.

What was the Fund's strategy during the period?

Value strategies that emphasized cyclical sectors like basic materials,
capital goods and energy stocks were strong at the end of the period. The
Fund's three value managers (J.P. Morgan Investment Management, Boston Partners
Asset Management and OpCap Advisors) benefited from this rotation to value.
Liberty Asset Management Company's multi-managed approach in the Fund seeks to
provide more consistent returns by combining both value and growth styles of
investment management. Each of the institutional investment managers in the
Fund practices a specific style of growth or value investment management. As a
result, the Fund will participate in both growth and value style investment
markets.

The Russell 1000 Growth Index contains those securities in the Russell 1000
Index with a greater than average growth orientation. Companies in this Index
tend to exhibit higher price to book and price-earnings ratios, lower dividend
yields and higher forecasted growth rates. The Russell 1000 Value Index
contains those securities in the Russell 1000 Index with a less than average
growth orientation. Companies in this index generally have low price to book
and price-earnings ratios, higher dividend yields and lower forecasted growth
values.

Unlike mutual funds, indexes are not investments and do not incur fees or
expenses. It is not possible to invest in an index.

11
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust Newport Tiger Fund, Variable Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Newport Tiger Fund, Variable Series(1) seeks long-term capital appreciation.

Fund Performance (as of June 30,1999)

<TABLE>
<S> <C>
Inception date ................................ 5/1/95
Assuming reinvestment of all distributions
six-month total return ..................... 29.30%
Net asset value per share on 6/30/99 .......... $ 2.03
Net asset value per share on 12/31/98 ......... $ 1.57
</TABLE>

Portfolio Managers' Discussion

Thomas R.Tuttle and Lynda Couch are portfolio co-managers of Newport Tiger
Fund, Variable Series. Mr. Tuttle is president of Newport Fund Management, Inc.
and Ms. Couch is senior vice president of Newport Fund Management, Inc.

What was the investment environment like over the past six months?

Asia's economic prospects have improved as the result of a variety of
factors, perhaps the most important being a $165 billion infusion from the
International Monetary Fund. The purpose of this infusion was to stabilize the
tenuous economies and bring interest rates down. Governments responded by
easing their monetary policies, and interest rates fell from record highs to
post-war lows. For example, interest rates in Korea fell from approximately 30%
to 8%, a staggering change by any standard. The decline in rates pushed the
region's stock markets sharply higher. During the first six months of 1999, the
Fund returned 29.30%.

What was the Fund's strategy during the period?

During the first half of the year, the Fund made new commitments to
countries such as Korea and Taiwan. In keeping with the Fund's conservative
philosophy, our strategy has been to keep our initial exposures low until we
have more confidence that the economic recoveries of these nations will prove
sustainable. However, our underweighting of the region's lesser economies also
held back the Fund's overall performance during early 1999. That is because the
more speculative economies, which suffered disproportionately during the 1997
downturn, also exhibited the biggest rebound during the recent recovery.

What is your outlook for the period ahead?

We continue to believe that The People's Republic of China represents a
significant long-term growth opportunity. The country is moving from a
socialist system towards a market-oriented economy, which means that the state
is no longer taking care of the individual in such areas as education and
medical care. As a result, the country's savings rate has been unusually high
and consumer demand correspondingly low. We believe that as households bolster
their balance sheets, the stage will be set for impressive growth at the
consumer level. Our portfolio now maintains an overweighted position in China,
primarily through our ownership of Hong Kong companies with significant
business interests in China.

(1)Investing in Newport Tiger Fund, Variable Series offers long-term growth
potential; however, the value will fluctuate due to economic and political
developments and currency fluctuations. Many of the Asian countries are
considered emerging, which means there may be greater risks associated with
investing there than in more-developed countries. Because market conditions
change frequently, there can be no assurance that the trends described herein
will come to pass or affect the performance of the Fund.

12
<PAGE>

- --------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust Stein Roe Global Utilities Fund, Variable
Series
- --------------------------------------------------------------------------------

Dear Contract Owner:

Stein Roe Global Utilities Fund, Variable Series seeks current income and
long-term growth of capital and income.

Fund Performance (as of June 30,1999)

<TABLE>
<S> <C>
Inception date ................................ 7/1/93
Assuming reinvestment of all distributions
six-month total return ..................... 8.58%
Net asset value per share on 6/30/99 .......... $ 14.94
Net asset value per share on 12/31/98 ......... $ 13.76
</TABLE>

Portfolio Managers' Discussion

Ophelia Barsketis and Deborah A. Jansen, senior vice presidents of Stein
Roe & Farnham Incorporated, are portfolio co-managers of Stein Roe Global
Utilities Fund, Variable Series.

What was the investment environment like over the past six months?

In an environment that favored more growth-orientated sectors, we were
pleased with the performance of the Fund. We attribute performance to the
Fund's diversification across a variety of countries and utilities sectors, and
our core holdings in quality companies. However, the beginning of 1999 proved a
difficult period for domestic and European utility stocks. Generally speaking,
utility stocks were depressed in recent months as investors sought stocks that
would benefit from a reacceleration of economic growth. Our limited exposure to
developing economies may have slightly hampered performance during the second
half of the period, but we believe our conservative investment strategy
provided greater flexibility in an uncertain investment environment and reduced
volatility for risk-averse investors.

What was the Fund's strategy during the period?

Over the course of this six-month period, the Fund maintained its
overweighting in these regions, but cautiously entered Latin America. Since a
number of global economies showed signs of positive growth, we did not invest
more substantially due to concerns that these markets were not yet out of the
woods.

Although we maintained a portfolio diversified among different regions and
subsectors of the utilities market, such as telephone, gas, electricity and
water, we held the largest percentage of the portfolio's assets in the
telecommunications sector. We looked for companies that offered attractive
opportunities driven by continuing economic growth as well as privatization,
deregulation and merger activity.

What is your outlook for the period ahead?

We are encouraged by the early signs of recovery in a number of global
economies, and believe the U.S. economy should continue to show solid growth in
1999--provided that inflation remains in check and interest rates do not rise
significantly. Going forward, we plan to focus on domestic and European
utilities, while exploring quality companies in developing economies. We expect
that stocks of U.S. and European electric companies will continue to face
challenges if interest rates rise, as they have in the last few months.
Deregulation and merger activity may ultimately lead to stock price
appreciation as these issues are resolved. As always, we will monitor
opportunities that may arise as a result of regulatory changes. We believe that
the Fund continues to offer risk-averse investors an opportunity to participate
in the long-term growth potential of U.S. and international utility stocks.

13
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited)
Liberty Variable Investment Trust Colonial Global Equity Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
------- ------- ----------
<S> <C> <C> <C>
COMMON STOCK--100.0%
Construction--1.7%
Building Construction--1.0%
Centex Corp. ........................................................ 1,400 $ 52,587
----------
Special Trade Contractors--0.7%
Tomkins PLC (a) ..................................................... UK 8,000 34,701
----------
Finance, Insurance & Real Estate--21.7%
Depository Institutions--8.5%
Chase Manhattan Corp. ............................................... 700 60,637
Cie Financiere de Paribas ........................................... Fr 270 30,339
Corporacion Bancaria de
Espana SA ........................................................ Sp 1,300 29,686
Credito Italiano .................................................... It 6,500 28,658
First American Corp. ................................................ 1,000 41,563
HSBC Holdings PLC (b) ............................................... HK 1,000 35,426
Lloyds Bank PLC ..................................................... UK 2,000 27,320
Standard Chartered PLC .............................................. UK 2,000 32,691
Svenska Handelsbanken,
Class A .......................................................... Sw 2,400 28,934
The Bank of Tokyo
Mitsubishi ....................................................... Ja 4,000 56,888
Union Bank of Switzerland ........................................... Sz 100 29,932
Washington Mutual, Inc. ............................................. 1,200 42,450
----------
444,524
----------
Holding & Other Investment Offices--.5%
Zurich Allied AG .................................................... Sz 50 28,512
----------
Insurance Carriers--3.4%
Allstate Corp. ...................................................... 1,700 60,987
American International
Group, Inc. ...................................................... 400 46,825
AXA ................................................................. Fr 260 31,796
International Nederlanden
Groep ............................................................ Ne 700 37,990
----------
177,598
----------
Investment Companies--3.3%
Irish Investment Fund, Inc. ......................................... Ir 1,800 29,700
Korea Fund, Inc. .................................................... Ko 3,100 46,113
Taiwan Fund, Inc. ................................................... Tw 3,000 62,250
Thai Fund ........................................................... Th 3,200 32,800
----------
170,863
----------
Nondepository Credit Institutions--3.0%
Associates First Capital Corp. 1,400 62,038
Nichiei Co., Ltd. ................................................... Ja 400 34,998
Promise Co., Ltd. ................................................... Ja 1,000 59,018
----------
156,054
----------
Real Estate--3.0%
Cheung Kong Holdings Ltd. ........................................... HK 8,000 71,146
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
------- ------- ----------
<S> <C> <C> <C>
New World Development
Co., Ltd. ........................................................ HK 28,000 $ 83,906
----------
155,052
----------
Manufacturing--45.3%
Chemicals & Allied Products--9.6%
Akzo Nobel NV ....................................................... Ne 700 29,524
BASF AG ............................................................. G 750 33,222
Clorox Co. .......................................................... 500 53,406
E.I. DuPont de Nemours &
Co. .............................................................. 800 54,650
Kao Corp. ........................................................... Ja 2,000 56,129
Merck & Co., Inc. ................................................... 600 44,400
Novartis ............................................................ Sz 25 36,608
Pharmacia & Upjohn, Inc. ............................................ 1,000 56,813
Rhone Poulenc, Class A .............................................. Fr 660 30,232
Schering-Plough Corp. ............................................... 1,100 58,300
Warner-Lambert Co. .................................................. 700 48,563
----------
501,847
----------
Communications Equipment--3.3%
Lucent Technologies, Inc. ........................................... 800 53,950
Racal Electronics PLC ............................................... UK 7,000 42,784
Sony Corp. .......................................................... Ja 390 42,010
Telefonakteibolaget LM
Ericsson ......................................................... Sw 1,100 36,231
----------
174,975
----------
Electrical Industrial Equipment--1.1%
General Electric Co. ................................................ 500 56,500
----------
Electronic Components--0.8%
Koninklijke Philips
Electronics NV ADR (a) ........................................... Ne 400 40,350
----------
Food & Kindred Products--4.5%
Bass PLC ............................................................ UK 3,000 42,683
Carlton Communications
PLC .............................................................. UK 4,000 32,954
Diageo PLC .......................................................... UK 3,000 31,551
Groupe Danone ....................................................... Fr 130 33,597
Kellogg Co. ......................................................... 1,500 49,500
PepsiCo, Inc. ....................................................... 1,200 46,425
----------
236,710
----------
Furniture & Fixtures--1.2%
Furniture Brands
International, Inc. (a) .......................................... 2,300 64,113
----------
Household Appliances--0.6%
Electrolux AB, Series B ............................................. Sw 1,500 31,557
----------
Machinery & Computer Equipment--5.2%
Canon, Inc. ......................................................... Ja 1,000 28,725
EMC Corp. (a) ....................................................... 1,000 55,000
Hewlett-Packard Co. ................................................. 400 40,200
</TABLE>

See Notes to Investment Portfolio.
14
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial Global Equity Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
------- ------- ----------
<S> <C> <C> <C>
International Business
Machines Corp. ................................................... 400 $ 51,700
Invensys PLC ........................................................ UK 9,000 42,623
Mannesmann AG ....................................................... G 350 52,354
----------
270,602
----------
Measuring & Analyzing Instruments--0.7%
Fuji Photo Film Co., Ltd. ........................................... Ja 1,000 37,804
----------
Paper Products--1.4%
Aracruz Celulose SA ADR ............................................. Bz 2,000 44,000
Royal Koninklijke PTT
Nederland NV ..................................................... Ne 600 28,221
----------
72,221
----------
Petroleum Refining--4.3%
Amerada Hess Corp. .................................................. 1,000 59,500
BP Amoco PLC ADR .................................................... UK 300 32,550
Compagnie Francaise de
Petroleum, Total B ............................................... Fr 250 32,330
ENI ................................................................. It 5,000 29,565
Royal Dutch Petroleum Co. ........................................... Ne 500 29,358
Texaco, Inc. ........................................................ 700 43,750
----------
227,053
----------
Primary Metals--2.0%
Acerinox SA ......................................................... Sp 1,200 35,168
Pirelli SPA ......................................................... It 11,000 30,020
Pohang Iron & Steel Co.,
Ltd. ADR ......................................................... Ko 1,100 36,988
----------
102,176
----------
Rubber & Plastic--1.1%
Premark International, Inc. ......................................... 1,500 56,250
----------
Stone, Clay, Glass & Concrete--2.4%
Cemex SA ............................................................ Mx 7,500 37,440
Hanson PLC .......................................................... UK 3,000 26,759
Holderbank Financiere
Glaris AG ........................................................ Sz 25 29,593
Lafarge SA .......................................................... Fr 310 29,547
----------
123,339
----------
Transportation Equipment--7.1%
DaimlerChrysler AG .................................................. G 500 43,417
Dana Corp. .......................................................... 600 27,638
Ford Motor Co. ...................................................... 900 50,794
GKN PLC ............................................................. UK 3,000 51,704
General Dynamics Corp. .............................................. 500 34,250
Honda Motor Co. Ltd. ................................................ Ja 1,000 42,344
MAN AG. ............................................................. G 1,300 44,482
Textron, Inc. ....................................................... 300 24,694
United Technologies Corp. ........................................... 700 50,181
----------
369,504
----------
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
------- ------- ----------
<S> <C> <C> <C>
Mining & Energy--3.4%
Nonmetallic, Except Fuels--1.1%
Potash Corp. of
Saskatchewan, Inc. ............................................... Ca 1,100 $ 56,925
----------
Oil & Gas Extraction--0.5%
YPF SA .............................................................. Ar 700 27,584
----------
Oil & Gas Field Services--1.8%
Petroleum Geo-Services (a) .......................................... No 1,900 28,609
Schlumberger Ltd. ................................................... 1,000 63,688
----------
92,297
----------
Retail Trade--4.6%
Apparel & Accessory Stores--1.0%
Hennes & Mauritz AB (a) ............................................. Sw 2,200 54,605
----------
Food Stores--2.0%
Safeway, Inc. (a) ................................................... 900 44,550
Tesco PLC ........................................................... UK 12,000 31,098
Vendex International NV ............................................. Ne 1,000 26,774
----------
102,422
----------
General Merchandise Stores--1.1%
Wal-Mart Stores, Inc. ............................................... 1,200 57,900
----------
Miscellaneous Retail--0.5%
Rite Aid Corp. ...................................................... 1,100 27,088
----------
Services--5.3%
Amusement & Recreation--0.5%
Hilton Group PLC .................................................... UK 7,000 28,155
----------
Computer Related Services--0.7%
Cap Gemini SA ....................................................... Fr 230 36,235
----------
Computer Software--4.1%
Compuware Corp. (a) ................................................. 1,500 47,719
Microsoft Corp. ..................................................... 600 54,113
Misys PLC ........................................................... UK 3,000 25,765
SAP AG .............................................................. G 150 50,860
SunGard Data Systems,
Inc. (a) ......................................................... 1,100 37,950
----------
216,407
----------
Transportation, Communications,
Electric, Gas & Sanitary Services--17.3%
Communications--1.4%
Viacom, Inc., Class A (a) ........................................... 800 35,300
Vodafone Group PLC .................................................. UK 2,000 39,622
----------
74,922
----------
Electric Services--2.8%
Empresa Nacional de
Electricidad ..................................................... Sp 1,400 29,929
Korea Eletric Power Corp.,
ADR .............................................................. Ko 3,200 65,600
Texas Utilities Co. ................................................. 1,200 49,500
----------
145,029
----------
</TABLE>

See Notes to Investment Portfolio.
15
<PAGE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
------- ------- ----------
<S> <C> <C> <C>
Gas Services--1.5%
BG PLC ................................................................ UK 5,000 $ 30,560
NICOR, Inc. ........................................................... 1,300 49,481
----------
80,041
----------
Motor Freight & Warehousing--0.8%
CNF Transportation .................................................... 1,100 42,213
----------
Telecommunications--10.8%
Bell Atlantic Corp. ................................................... 900 58,838
British Telecommunications
PLC ................................................................ UK 2,000 33,615
COLT Telecom Group PLC (a) UK 2,000 41,010
France Telecom SA ..................................................... Fr 390 29,532
Hong Kong
Telecommunications
Ltd. (b) ........................................................... HK 13,000 34,937
MCI WorldCom, Inc. (a) ................................................ 700 60,375
Nippon Telegraph &
Telephone Corp. .................................................... Ja 4 46,554
Nokia Oyj ............................................................. Fi 700 61,508
Philippine Long Distance
Telephone, ADR ..................................................... Ph 1,800 54,225
Telecel-Comunicacaoes
Pessoais, SA ....................................................... Pt 200 25,844
Telecom Italia SPA .................................................... It 3,000 31,183
Telecomunicacoes Brasileiras
SA ................................................................. Bz 450 40,584
Telefonos de Mexico SA ................................................ Mx 11,100 45,088
----------
563,293
----------
Wholesale Trade--0.7%
Nondurable Goods
Imasco Ltd. ........................................................... Ca 1,300 35,270
----------
Total Common Stock
(cost of $5,002,519) .......................................................................... 5,225,278
----------
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
------- ------- ----------
<S> <C> <C> <C>
Rights--0.0%
(cost of $354)
Finance, Insurance & Real Estate
Depository Institutions
Holderbank Financiere
Glarus AG .......................................................... Sz 1 $ 15
----------
Total Investments--100.0%
(cost of $5,002,873) (c) ........................................................................ 5,225,293
----------
</TABLE>

<TABLE>
<CAPTION>
Par
--------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--0.0%
Repurchase agreement with SBC
Warburg Ltd., dated 06/30/99
due 07/01/99 at 4.800%, by
Treasury bonds and/or notes
with various maturities
collateralized to 2027, market
value $2,071 (repurchase
proceeds $2,000) ................ $2,000 2,000
-----
Other Assets & Liabilities, Net--0.0% ....... (1,114)
------
Net Assets--100% ............................ $5,226,179
==========
</TABLE>

Notes to Investment Portfolio:
(a) Non-income producing.
(b) The value of this security represents fair value as determined in good
faith under the direction of the Trustees.
(c) Cost for federal income tax purposes is the same.

See Notes to Financial Statements.
16
<PAGE>

Summary of Securities by Country

<TABLE>
<CAPTION>
% of Total
Country Securities
Summary of Securities by Country Abbrev. Value at Value
- ---------------------------------- --------- ------------- -----------
<S> <C> <C> <C>
United States .................. $2,076,379 39.7%
United Kingdom ................. UK 628,145 12.0
Japan .......................... Ja 404,470 7.7
France ......................... Fr 253,608 4.9
Hong Kong ...................... HK 225,415 4.3
Germany ........................ G 224,335 4.3
Netherlands .................... Ne 192,217 3.7
Sweden ......................... Sw 151,327 2.9
Korea .......................... Ko 148,701 2.9
Switzerland .................... Sz 124,660 2.4
Italy .......................... It 119,426 2.3
Spain .......................... Sp 94,783 1.8
Canada ......................... Ca 92,195 1.8
Brazil ......................... Bz 84,584 1.6
Mexico ......................... Mx 82,528 1.6
Taiwan ......................... Tw 62,250 1.2
Finland ........................ Fi 61,508 1.2
Philippines .................... Ph 54,225 1.0
Thailand ....................... Th 32,800 0.6
Ireland ........................ Ir 29,700 0.6
Norway ......................... No 28,609 0.5
Argentina ...................... Ar 27,584 0.5
Portugal ....................... Pt 25,844 0.5
---------- -----
$5,225,293 100.0%
========== =====
</TABLE>

Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.

<TABLE>
<CAPTION>
Acronym Name
- ----------- ----------------------------
<S> <C>
ADR American Depositary Receipt
</TABLE>

See Notes to Financial Statements.
17
<PAGE>

- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
Liberty Variable Investment Trust Colonial Global Equity Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets:
Investments, at market value (identified cost $5,002,873) ......................... $5,225,293
Short-term obligations ............................................................ 2,000
Cash .............................................................................. 30,870
Dividends and interest receivable ................................................. 4,975
Expense reimbursement due from Advisor ............................................ 7,413
Other assets ...................................................................... 30,537
----------
Total assets .................................................................... 5,301,088
----------
Liabilities:
Payable for investments purchased ................................................. 61,301
Management fee payable ............................................................ 3,904
Bookkeeping fee payable ........................................................... 2,250
Accrued expenses payable .......................................................... 6,145
Other liabilities ................................................................. 1,309
----------
Total liabilities ............................................................... 74,909
----------
Net assets ........................................................................ $5,226,179
==========
Net assets represented by:
Paid-in capital .................................................................. $5,000,000
Accumulated undistributed net investment income .................................. 7,197
Accumulated net realized losses on foreign currency transactions ................. (3,157)
Net unrealized appreciation on investments and foreign currency transactions ..... 222,139
----------
Total net assets applicable to outstanding shares of beneficial interest .......... $5,226,179
==========
Shares of beneficial interest outstanding ......................................... 500,000
==========
Net asset value per share ......................................................... $10.45
==========
</TABLE>

- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (Unaudited)

For the Period Ended June 30, 1999*
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Investment income:
Interest income ........................................................................ $ 6,149
Dividends .............................................................................. 5,933
--------
Total investment income (net of nonreclaimable foreign taxes withheld at source which
amounted to $742) ................................................................... 12,082
--------
Expenses:
Management fee ........................................................................ 3,904
Bookkeeping fee ....................................................................... 2,250
Transfer agent fee .................................................................... 625
Audit fee ............................................................................. 2,100
Printing expense ...................................................................... 840
Trustees' expense ..................................................................... 570
Custodian fee ......................................................................... 1,230
Legal fee ............................................................................. 150
Miscellaneous expense ................................................................. 629
--------
Total expenses ....................................................................... 12,298
--------
Less: Expense reimbursable by Manager .................................................. (7,413)
--------
Net expenses ........................................................................... 4,885
--------
Net investment income .................................................................. 7,197
Realized and unrealized gains on investments:
Net realized gains on foreign currency transactions ................................... (3,157)
Change in net unrealized appreciation on investments and foreign currency transactions 222,139
--------
Net increase in net assets resulting from operations ................................... $226,179
========
</TABLE>

* For the period from the commencement of operations June 1, 1999 to June 30,
1999.

See Notes to Financial Statements.
18
<PAGE>

- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
Liberty Variable Investment Trust Colonial Global Equity Fund, Variable Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Period Ended
June 30,
1999*
-------------
<S> <C>
Operations:
Net investment income .................................................................. $ 7,197
Net realized gains on foreign currency transactions .................................... (3,157)
Change in unrealized appreciation on investments and foreign currency transactions ..... 222,139
----------
Net increase in net assets resulting from operations .................................... 226,179
----------
Fund share transactions:
Proceeds from fund shares sold ......................................................... 5,000,000
----------
Net increase in net assets resulting from fund share transactions ....................... 5,000,000
----------
Total increase in net assets ............................................................ 5,226,179
Net assets:
Beginning of year ...................................................................... --
----------
End of year ............................................................................ 5,226,179
==========
Accumulated undistributed net investment income included in ending net assets ........... $ 7,197
==========
Analysis of changes in shares of beneficial interest:
Shares sold ............................................................................ 500,000
</TABLE>

*For the period from the commencement of operations June 1, 1999 to June 30,
1999.

See Notes to Financial Statements.
19
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Interim Financial Statements

In the opinion of management of Colonial Global Equity Fund, Variable Series
(the Fund), a series of Liberty Variable Investment Trust, the accompanying
financial statements contain all normal and recurring adjustments necessary for
the fair presentation of the financial position of the Fund at June 30, 1999,
and the results of its operations, the changes in its assets and the financial
highlights for the six months then ended.

Note 2. Accounting Policies

Organization--The Fund is a non-diversified portfolio of a Massachusetts
business trust, registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Fund's investment
objective is to seek long-term growth by investing primarily in global
equities. The Fund's capitalization consists of an unlimited number of shares
of beneficial interest without par value that represent a separate series of
the Trust. Each share of a Fund represents an equal proportionate beneficial
interest in that Fund and, when issued and outstanding, is fully paid and
nonassessable. Shareholders would be entitled to share proportionally in the
net assets of a Fund available for distribution to shareholders upon
liquidation of a Fund. Shares of the Trust are available and are being marketed
exclusively as a pooled funding vehicle for variable annuity contracts ("VA
contracts") and Variable Life Insurance Policies ("VLI Policies") offered by
the separate accounts of the life insurance companies ("Participating Insurance
Companies"). Certain Participating Insurance Companies are affiliated with the
Investment Advisor and sub-advisors to the Fund ("Affiliated Participating
Insurance Companies"). Such Affiliated Participating Insurance Companies are
Keyport Life Insurance Company ("Keyport"), Independence Life & Annuity Company
("Independence") and Liberty Life Assurance Company of Boston ("Liberty Life").
The Participating Insurance Companies and their separate accounts own all the
shares of the Fund. Liberty Advisory Services Corp. (the Manager) ("LASC"),
provides investment management and advisory services to the Fund pursuant to
its Management Agreements with the Trust. Colonial Management Associates, Inc.
("Colonial") provides sub-advisory services. LASC has delegated various
administrative matters to Colonial. Colonial also provides transfer agency and
pricing and record keeping services to the Trust. Keyport Financial Services
Corp. ("KFSC") serves as the principal underwriter of the Trust with respect to
sales of shares to Affiliated Participating Insurance Companies. The Manager,
Colonial, KFSC, Keyport and Independence are wholly-owned indirect subsidiaries
of Liberty Financial Companies, Inc. ("LFC"). As of June 30, 1999, Liberty
Mutual Insurance Companies ("Liberty Mutual") owned approximately 71% of the
outstanding voting shares of LFC. Liberty Life is a subsidiary of Liberty
Mutual.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements.

Security valuation and transactions--Equity securities generally are valued at
the last sale price or, in the case of unlisted or listed securities for which
there were no sales during the day, at current quoted bid prices.

Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific
identification method for both financial statement and federal income tax
purposes.

Federal income taxes--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

Interest income, debt discount and premium-- Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; premium and
market discount are not amortized or accreted.

Distributions to shareholders--The funds intend to distribute as dividends or
capital gains distributions, at least annually, substantially all of their net
investment income and net profits realized from the sale of investments. All
dividends and distributions are reinvested in additional shares of the Funds at
net asset value as of the record date of the distribution. Income and capital
gain distributions are determined in accordance with Federal Income accounting
principles.

The amount and character of income and gains to be distributed are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. Reclassifications are made to the Fund's
capital accounts to reflect income and gains available for distribution (or
available capital loss carryforwards) under income tax regulations.

20
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

Foreign currency transactions--Net realized and unrealized gains (losses) on
foreign currency transactions includes gains (losses) arising from the
fluctuations in exchange rates between trade and settlement dates on securities
transactions, gains (losses) arising from the disposition of foreign currency,
and currency gains (losses) between the accrual and payment dates on dividends
and interest income and foreign withholding taxes.

The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included
with the net realized and unrealized gains (losses) on investments.

Forward currency contracts--The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains (losses) which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. Forward currency
contracts do not eliminate fluctuations in the prices of the Fund's portfolio
securities. While the maximum potential loss from such contracts is the
aggregate face value in U.S. dollars at the time the contract was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. Risks may also arise if
counterparties fail to perform their obligations under the contracts.

Other--Corporate actions are recorded on ex-date (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware
of such), net of nonrebatable tax withholdings. Where a high level of
uncertainty as to collection exists, income on securities is recorded net of
all tax withholdings with any rebates recorded when received.

The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is
marked-to-market daily to ensure that the market value of the underlying assets
remains sufficient to protect the Fund. The Fund may experience costs and
delays in liquidating the collateral if the issuer defaults or enters
bankruptcy.

Note 3. Fees and Compensation Paid to Affiliates

Management and Sub-Advisory fees--Liberty Advisory Services Corp. (the
Manager), receives a monthly fee equal to 0.95% annually of the Fund's average
daily net assets. The Manager, out of the management fee it receives, pays
Colonial a monthly sub-advisory fee equal to 0.75% annually of the Fund's
average daily net assets.

Bookkeeping fee--Colonial provides bookkeeping and pricing services for a
monthly fee equal to $27,000 annually plus 0.035% of the Fund's average net
assets over $50 million.

Transfer agent fee--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Advisor, provides shareholder services for an annual rate of
$7,500.

Expense limits--The Manager has agreed, until further notice, to waive fees
and bear certain Fund expenses to the extent that total expenses (including
management fee) exceed 1.15% annually of the Fund's average daily net assets.

Other--The Fund pays no compensation to its officers, all of whom are
employees of the Advisor.

The Fund's Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Fund's assets.

Note 4. Portfolio Information

Investment activity--During the six months ended June 30, 1999, purchases and
sales of investments, other than short term obligations, were $5,002,873 and
none, respectively.

Unrealized appreciation (depreciation) at June 30, 1999, based on cost of
investments for both financial statement and federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation $286,612
Gross unrealized depreciation (64,192)
--------
Net unrealized appreciation $222,420
--------
</TABLE>

Other--There are certain additional risks involved when investing in foreign
securities that are not inherent with investments in domestic securities. These
risks may involve foreign currency exchange rate fluctuations, adverse
political and economic developments and the possible prevention of foreign
currency exchange or the imposition of other foreign governmental laws or
restrictions.

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

21
<PAGE>

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust Colonial Global Equity Fund, Variable Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(Unaudited)
Period Ended
June 30,
1999*
------------
<S> <C>
Per share operating performance:
Net asset value, beginning of year .................................... $10.00
------
Net investment income (a)(b) .......................................... 0.01
Net realized and unrealized gains on investments ...................... 0.44
------
Total from investment operations ...................................... 0.45
------
Less distributions:
Dividends from and in excess of net investment income ................ --
Distributions from and in excess of net realized gains on investments --
-------
Total distributions ................................................... --
-------
Net asset value, end of year .......................................... $10.45
=======
Total return:
Total investment return (c)(d) ....................................... 4.50%**

Ratios/supplemental data:
Net assets, end of year (000's) ....................................... $5,226
Ratio of expenses to average net assets (e) ........................... 1.15%***
Ratio of net investment income to average net assets (e) .............. 1.73%***
Fees and expenses waived or borne by the Advisor (e) .................. 1.78%***
Portfolio turnover ratio .............................................. 0%**

(a) Net of fees and expenses waived or borne by the Advisor which
amounted to: $0.015
(b) Per share data was calculated using average shares outstanding during the
period.
(c) Total return at net assets value assuming all distributions reinvested.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
* For the period from the commencement of operations June 1, 1999 to June 30,
1999.
** Not annualized.
*** Annualized.
</TABLE>

See Notes to Financial Statements.
22
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited)
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- -------------- ----------
<S> <C> <C> <C>
COMMON STOCKS--91.5%
Finance, Insurance & Real Estate--12.7%
Depository Institutions--3.2%
Astoria Financial Corp. ............................................ 31,000 $1,362,063
Bank of Montreal ................................................... Ca 17,300 632,509
First Union Corp. .................................................. 11,702 549,994
Greenpoint Financial Corp. ......................................... 85,000 2,789,063
National Australia Bank Ltd. Au 38,800 646,554
----------
5,980,183
----------
Insurance Carriers--6.5%
Allstate Corp. ..................................................... 47,000 1,686,125
American Bankers Insurance
Group, Inc. ..................................................... 34,400 1,872,650
American International
Group, Inc. ..................................................... 18,468 2,161,910
CIGNA Corp. ........................................................ 30,000 2,670,000
Citigroup, Inc. .................................................... 55,950 2,657,625
Old Republic International
Corp. ........................................................... 38,100 659,606
St. Paul Cos., Inc. ................................................ 18,000 572,625
----------
12,280,541
----------
Nondepository Credit Institutions--0.7%
Associates First Capital
Corp. ........................................................... 8,124 359,995
Metris Companies, Inc. ............................................. 25,468 1,037,821
----------
1,397,816
----------
Security Brokers & Dealers--2.3%
A.G. Edwards, Inc. ................................................. 51,300 1,654,425
Merrill Lynch & Co., Inc. .......................................... 32,500 2,597,969
----------
4,252,394
----------
Manufacturing--47.2%
Apparel--0.5%
VF Corp. ........................................................... 20,000 855,000
----------
Chemicals & Allied Products--9.4%
Allergan, Inc. ..................................................... 11,700 1,298,700
Bristol-Myers Squibb Co. ........................................... 45,600 3,211,950
Dow Chemical Co. ................................................... 15,700 1,991,938
Eli Lilly & Co. .................................................... 27,000 1,933,875
Johnson & Johnson .................................................. 22,800 2,234,400
Merck & Co., Inc. .................................................. 32,400 2,397,600
Monsanto Co. ....................................................... 20,000 788,750
Pfizer, Inc. ....................................................... 5,000 548,750
Pharmacia & Upjohn, Inc. ........................................... 28,000 1,590,750
Warner-Lambert Co. ................................................. 25,000 1,734,375
----------
17,731,088
----------
Communications Equipment--2.7%
Lucent Technologies, Inc ........................................... 30,000 2,023,125
Motorola, Inc. ..................................................... 32,000 3,032,000
----------
5,055,125
----------
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- -------------- ----------
<S> <C> <C> <C>
Electrical Industrical Equipment--1.0%
General Electric Co. ............................................... 17,000 $1,921,000
----------
Electronic Components--2.5%
Texas Instruments, Inc. ............................................ 33,000 4,785,000
----------
Fabricated Metal--0.4%
Danaher Corp. ...................................................... 14,600 848,625
----------
Food & Kindred Products--2.6%
Anheuser Busch Cos., Inc. .......................................... 26,500 1,879,844
Heinz (H.J.) Co. ................................................... 38,500 1,929,813
Philip Morris Companies,
Inc. ............................................................ 27,500 1,105,156
----------
4,914,813
----------
Furniture & Fixtures--1.4%
Herman Miller, Inc. ................................................ 40,000 840,000
Masco Corp. ........................................................ 65,000 1,876,875
----------
2,716,875
----------
Household Appliances--1.0%
Maytag Corp. ....................................................... 26,000 1,811,875
----------
Machinery & Computer Equipment--11.4%
Apple Computer, Inc. ............................................... 39,000 1,806,188
Applied Materials, Inc. (a) ........................................ 30,000 2,216,250
Black & Decker Corp. ............................................... 28,000 1,767,500
Caterpillar, Inc. .................................................. 32,000 1,920,000
Cisco Systems, Inc. (a) ............................................ 35,600 2,296,200
EMC Corp. (a) ...................................................... 40,000 2,200,000
International Business
Machines Corp. .................................................. 30,000 3,877,500
Sun Microsystems, Inc. (a) ......................................... 24,000 1,653,000
Tyco International Ltd. ............................................ 19,500 1,847,625
Unisys Corp. (a) ................................................... 52,000 2,024,750
----------
21,609,013
----------
Measuring & Analyzing Instruments--1.4%
Eastman Kodak Co. .................................................. 30,000 $2,032,500
Tektronix, Inc. .................................................... 17,500 528,281
----------
2,560,781
----------
Petroleum Refining--3.7%
BP Amoco plc ADR ................................................... 11,000 1,193,500
Exxon Corp. ........................................................ 30,000 2,313,750
Mobil Corp. ........................................................ 13,000 1,287,000
Phillips Petroleum Co. ............................................. 34,100 1,715,656
Sunco, Inc. ........................................................ 18,000 543,375
----------
7,053,281
----------
Primary Smelting--0.6%
Phelps Dodge Corp. ................................................. 17,400 1,077,713
----------
Rubber & Plastic--1.0%
Goodyear Tire & Rubber Co. 6,000 352,875
Premark International
Incorporated .................................................... 33,000 1,237,500
</TABLE>

See Notes to Investment Portfolio.
23
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- -------------- ----------
<S> <C> <C> <C>
Wynn's International, Inc. ......................................... 20,000 $ 368,750
----------
1,959,125
----------
Stone, Clay, Glass & Concrete--1.5%
Corning, Inc. ...................................................... 40,000 2,805,000
----------
Tobacco Products--0.4%
Gallaher Group PLC ADR ............................................. 28,000 684,250
----------
Transportation Equipment--5.7%
AlliedSignal, Inc. ................................................. 45,000 2,835,000
Cordant Technologies, Inc. ......................................... 20,000 903,750
Delphi Automotive Systems
Corp. ........................................................... 13,978 259,467
Ford Motor Co. ..................................................... 30,000 1,693,125
General Dynamics Corp. ............................................. 24,400 1,671,400
General Motors Corp. ............................................... 20,000 1,320,000
Textron, Inc. ...................................................... 24,400 2,008,425
----------
10,691,167
----------
Mining & Energy--2.6%
Oil & Gas Extraction--0.3%
R & B Falcon Corp. (a) ............................................. 70,000 656,250
----------
Oil & Gas Field Services--2.3%
Enron Corp. ........................................................ 37,500 3,065,625
Schlumberger Ltd. .................................................. 20,000 1,273,750
----------
4,339,375
----------
Retail Trade--9.4%
Food Stores--1.5%
Albertson's, Inc. .................................................. 26,500 1,366,406
Kroger Corp. (a) ................................................... 52,000 1,452,750
----------
2,819,156
----------
General Merchandise Stores--3.1%
Dayton Hudson Corp. ................................................ 26,500 1,722,500
Family Dollar Stores, Inc. ......................................... 64,000 1,536,000
Kmart Corp. ........................................................ 100,000 1,643,750
Sears, Roebuck & Co. ............................................... 20,000 891,250
----------
5,793,500
----------
Home Furnishing & Equipment--2.8%
Best Buy Co., Inc. (a) ............................................. 28,500 1,923,750
Pier 1 Imports, Inc. ............................................... 58,500 658,125
Tandy Corp. ........................................................ 56,000 2,737,000
----------
5,318,875
----------
Miscellaneous Retail--1.3%
Office Depot, Inc. (a) ............................................. 80,000 1,765,000
Rite Aid Corp. ..................................................... 26,000 640,250
----------
2,405,250
----------
Restaurants--0.7%
Brinker International,
Inc. (a) ........................................................ 50,000 1,359,375
----------
Services--8.4%
Business Services--1.6%
Omnicom Group, Inc. ................................................ 38,800 3,104,000
----------
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- -------------- ----------
<S> <C> <C> <C>
Computer Related Services--1.2%
America Online, Inc. (a) ........................................... 3,500 $ 386,750
Teradyne, Inc. (a) ................................................. 25,000 1,793,750
----------
2,180,500
----------
Computer Software--3.1%
BMC Software, Inc. (a) ............................................. 33,000 1,782,000
Compuware Corp. (a) ................................................ 43,000 1,367,938
J.D. Edwards & Co. (a) ............................................. 14,000 259,000
Microsoft Corp. (a) ................................................ 11,800 1,064,213
Oracle Systems Corp. (a) ........................................... 15,000 556,875
Sterling Software, Inc. (a) ........................................ 29,000 773,938
----------
5,803,964
----------
Engineering, Accounting, Research
& Management--0.9%
EG&G, Inc. ......................................................... 35,000 1,246,875
International-Muller NV ............................................ Ne 18,400 406,098
----------
1,652,973
----------
Health Services--1.6%
Healthsouth Corp. (a) .............................................. 105,000 1,568,438
Lincare Holdings, Inc. (a) ......................................... 18,600 465,000
Universal Health Services,
Inc., Class B (a) ............................................... 22,500 1,074,375
----------
3,107,813
----------
Transportation, Communication, Electric,
Gas & Sanitary Services--10.6%
Air Transportation--1.2%
Delta Air Lines, Inc. .............................................. 30,800 1,774,850
US Airways Group, Inc. ............................................. 12,700 553,244
----------
2,328,094
----------
Electric Services--3.4%
Edison International ............................................... 60,000 1,605,000
Entergy Corp. ...................................................... 48,800 1,525,000
Texas Utilities Co. ................................................ 41,000 1,691,250
Unicom Corp. ....................................................... 42,000 1,619,625
----------
6,440,875
----------
Telecommunication--6.0%
AT&T Corp. ......................................................... 40,500 2,260,406
Ameritech Corp. .................................................... 39,400 2,895,900
Bell Atlantic Corp. ................................................ 10,000 653,750
BellSouth Corp. .................................................... 18,000 843,750
GTE Corp. .......................................................... 32,000 2,424,000
MCI WorldCom, Inc. (a) ............................................. 25,500 2,199,375
----------
11,277,181
----------
Wholesale Trade--0.6%
Durable Goods--0.2%
Beers NV ........................................................... Ne 7,235 295,428
----------
Nondurable Goods--0.4%
Bergen Brunswig Corp.,
Class A ......................................................... 50,000 862,500
----------
</TABLE>

See Notes to Investment Portfolio.
24
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- -------- ------------
<S> <C> <C> <C>
Total Common Stocks
(cost of $130,039,393) ................. $172,735,774
------------
</TABLE>

<TABLE>
<CAPTION>
Par
-------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--2.2%
Federal Home Loan Mortgage
Corp., 6.500% 1/1/2026 ......... $1,183,031 1,141,992
Federal National Mortgage
Association:
6.500% 12/1/2023 ................. 1,806,017 1,742,223
6.000% 12/1/2008 ................. 1,244,411 1,202,013
---------
2,944,236
---------
Total U.S. Government Obligations
(cost of $4,153,456) ......................... 4,086,228
---------
Total Investments--93.7%
(Cost of $134,192,849) (b) ................... 176,822,002
-----------
</TABLE>

<TABLE>
<CAPTION>
Par Value
-------------- ------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--6.0%
Repurchase agreement with SBC
Warburg Ltd., dated 06/30/99
due 07/01/99 at 4.800%,
collateralized by U.S. Treasury
bonds and/or notes with
various maturities to 2027,
market value $11,810,060
(repurchase proceeds
$11,408,521) .................. $11,407,000 $ 11,407,000
Other Assets & Liabilities, Net--0.3% ........... 578,367
------------
Net Assets--100.0% .............................. $188,807,369
============
</TABLE>

Notes to Investment Portfolio:
(a) Non-income producing.
(b) The cost for federal income tax purposes is the same.

Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.

<TABLE>
<CAPTION>
Acronym Name
- ----------- ----------------------------
<S> <C>
ADR American Depository Receipt
</TABLE>

See Notes to Financial Statements.
25
<PAGE>

- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets:
Investments, at market value (identified cost $134,192,849) .................. $ 176,822,002
Short-term obligations ....................................................... 11,407,000
Cash (including foreign currencies) .......................................... 9,153
Receivable for investments sold .............................................. 967,567
Receivable for fund shares sold .............................................. 35,500
Dividends, tax reclaims and interest receivable .............................. 275,474
Other assets ................................................................. 3,411
-------------
Total assets ............................................................... 189,520,107
-------------
Liabilities:
Payable for investments purchased ............................................ 440,000
Payable for fund shares repurchased .......................................... 160,828
Management fee payable ....................................................... 96,142
Bookkeeping fee payable ...................................................... 5,765
Transfer agent fee payable ................................................... 625
Accrued expenses payable ..................................................... 8,863
Other liabilities ............................................................ 515
-------------
Total liabilities .......................................................... 712,738
-------------
Net assets ................................................................... $ 188,807,369
=============
Net assets represented by:
Paid-in capital ............................................................. $ 140,672,861
Accumulated undistributed net investment income ............................. 785,433
Accumulated net realized gains on investments ............................... 4,720,362
Net unrealized appreciation on investments and foreign currency transactions 42,628,713
-------------
Total net assets applicable to outstanding shares of beneficial interest ..... $ 188,807,369
=============
Shares of beneficial interest outstanding .................................... 10,660,976
=============
Net asset value per share .................................................... $ 17.71
=============
</TABLE>

- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (Unaudited)

For the Six Months Ended June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Investment income:
Interest income ........................................................................ $ 370,199
Dividends .............................................................................. 1,041,691
-----------
Total investment income (net of nonreclaimable foreign taxes withheld at source which
amounted to $17,269) ................................................................. 1,411,890
-----------
Expenses:
Management fee ........................................................................ 527,948
Bookkeeping fee ....................................................................... 33,139
Transfer agent fee .................................................................... 3,720
Audit fee ............................................................................. 8,491
Printing expense ...................................................................... 4,747
Trustees' expense ..................................................................... 1,808
Custodian fee ......................................................................... 4,839
Miscellaneous expense ................................................................. 3,108
-----------
Total expenses ....................................................................... 587,800
-----------
Net investment income .................................................................. 824,090
Realized and unrealized gains on investments:
Net realized gains on investments ..................................................... 4,748,068
Net realized gains on foreign currency transactions ................................... 10,225
Change in net unrealized appreciation on investments and foreign currency transactions 8,044,238
-----------
Net increase in net assets resulting from operations ................................... $13,626,621
===========
</TABLE>

See Notes to Financial Statements.
26
<PAGE>

- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, December 31,
1999 1998
------------- -------------
<S> <C> <C>
Operations:
Net investment income .......................................................... $ 824,090 $ 1,539,622
Net realized gains on investments .............................................. 4,748,068 4,073,761
Net realized gains on foreign currency transactions ............................ 10,225 (3,098)
Change in unrealized appreciation on investments and foreign currency
transactions .................................................................. 8,044,238 7,754,026
------------- -------------
Net increase in net assets resulting from operations ............................ 13,626,621 13,364,311
------------- -------------
Distributions declared from:
Net investment income .......................................................... -- (1,536,000)
In excess of net investment income ............................................. -- (38,486)
Net realized gains ............................................................. -- (4,110,459)
In excess of net realized gains ................................................ -- (10,275)
------------- -------------
Total distributions ............................................................. -- (5,695,220)
------------- -------------
Fund share transactions:
Proceeds from fund shares sold ................................................. 36,777,536 86,125,469
Cost of fund shares repurchased ................................................ (11,416,857) (56,579,053)
Distributions reinvested ....................................................... -- 5,695,220
------------- -------------
Net increase in net assets resulting from fund share transactions ............... 25,360,679 35,241,636
------------- -------------
Total increase in net assets .................................................... 38,987,300 42,910,727
Net assets:
Beginning of year .............................................................. 149,820,069 106,909,342
------------- -------------
End of year .................................................................... $ 188,807,369 149,820,069
============= =============
Accumulated undistributed (overdistributed) net investment income included in
ending net assets .............................................................. $ 785,433 $ (38,657)
============= =============
Analysis of changes in shares of beneficial interest:
Shares sold .................................................................... 2,207,797 13,975,007
Shares repurchased ............................................................. (686,563) (12,155,226)
Distributions reinvested ....................................................... -- 350,922
------------- -------------
Net increase .................................................................... 1,521,234 2,170,703
============= =============
</TABLE>

See Notes to Financial Statements.
27
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Interim Financial Statements

In the opinion of management of Colonial Growth & Income Fund, Variable Series
(the Fund), a series of Liberty Variable Investment Trust, the accompanying
financial statements contain all normal and recurring adjustments necessary for
the fair presentation of the financial position of the Fund at June 30, 1999,
and the results of its operations, the changes in its assets and the financial
highlights for the six months then ended.

Note 2. Accounting Policies

Organization--The Fund is a diversified portfolio of a Massachusetts business
trust, registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund's investment objective is to
seek primarily income and long-term capital growth and secondarily, preservation
of capital. The Fund's capitalization consists of an unlimited number of shares
of beneficial interest without par value that represent a separate series of the
Trust. Each share of a Fund represents an equal proportionate beneficial
interest in that Fund and, when issued and outstanding, is fully paid and
nonassessable. Shareholders would be entitled to share proportionally in the net
assets of a Fund available for distribution to shareholders upon liquidation of
a Fund. Shares of the Trust are available and are being marketed exclusively as
a pooled funding vehicle for variable annuity contracts ("VA contracts") and
Variable Life Insurance Policies ("VLI Policies") offered by the separate
accounts of the life insurance companies ("Participating Insurance Companies").
Certain Participating Insurance Companies are affiliated with the Investment
Advisor and sub-advisors to the Fund ("Affiliated Participating Insurance
Companies"). Such Affiliated Participating Insurance Companies are Keyport Life
Insurance Company ("Keyport"), Independence Life & Annuity Company
("Independence") and Liberty Life Assurance Company of Boston ("Liberty Life").
The Participating Insurance Companies and their separate accounts own all the
shares of the Fund. Liberty Advisory Services Corp. (the Manager) ("LASC"),
provides investment management and advisory services to the Fund pursuant to its
Management Agreements with the Trust. Colonial Management Associates, Inc.
("Colonial") provides sub-advisory services. LASC has delegated various
administrative matters to Colonial. Colonial also provides transfer agency and
pricing and record keeping services to the Trust. Keyport Financial Services
Corp. ("KFSC") serves as the principal underwriter of the Trust with respect to
sales of shares to Affiliated Participating Insurance Companies. The Manager,
Colonial, KFSC, Keyport and Independence are wholly-owned indirect subsidiaries
of Liberty Financial Companies, Inc. ("LFC"). As of June 30, 1999, Liberty
Mutual Insurance Companies ("Liberty Mutual") owned approximately 71% of the
outstanding voting shares of LFC. Liberty Life is a subsidiary of Liberty
Mutual.

Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific
identification method for both financial statement and federal income tax
purposes.

Federal income taxes--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

28
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

accounts to reflect income and gains available for distribution (or available
capital loss carryforwards) under income tax regulations.

Note 3. Fees and Compensation Paid to Affiliates

Management and Sub-Advisory fees--Liberty Advisory Services Corp. (the
Manager), receives a monthly fee equal to 0.65% annually of the Fund's average
daily net assets. The Manager, out of the management fee it receives, pays
Colonial a monthly sub-advisory fee equal to 0.45% annually of the Fund's
average daily net assets.

Bookkeeping fee--Colonial provides bookkeeping and pricing services for a
monthly fee equal to $27,000 annually plus 0.035% of the Fund's average net
assets over $50 million.

Transfer agent fee--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Advisor, provides shareholder services for an annual rate of
$7,500.

Expense limits--The Manager has agreed, until further notice, to waive fees
and bear certain Fund expenses to the extent that total expenses (including
management fee) exceed 1.00% annually of the Fund's average daily net assets.

For the six months ended June 30, 1999, the Fund's operating expenses, as
defined above, did not exceed the 1.00% expense limit.

Other--The Fund pays no compensation to its officers, all of whom are
employees of the Advisor.

The Fund's Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Fund's assets.

Note 4. Portfolio Information

Investment activity--During the six months ended June 30, 1999, purchases and
sales of investments, other than short term obligations, were $61,647,954 and
$38,069,521, respectively.

Unrealized appreciation (depreciation) at June 30, 1999, based on cost of
investments for both financial statement and federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation $47,532,393
Gross unrealized depreciation (4,903,240)
-----------
Net unrealized appreciation $42,629,153
-----------
</TABLE>

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

29
<PAGE>

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust Colonial Growth and Income Fund, Variable
Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(Unaudited)
Six Months
Ended
June 30,
1999
----------
<S> <C>
Per share operating performance:
Net asset value, beginning of year .......... $ 16.39
--------
Net investment income (a) ................... 0.08
Net realized and unrealized gains
on investments ............................. 1.24
--------
Total from investment operations ............ 1.32
--------
Less distributions:
Dividends from and in excess of
net investment income ..................... --
Distributions from and in excess of
net realized gains on investments ......... --
---------
Total distributions ......................... --
---------
Net asset value, end of year ................ $ 17.71
=========
Total return:
Total investment return (b) ................. 8.05%**
Ratios/supplemental data:
Net assets, end of year (000's) ............. $188,807
Ratio of expenses to average net assets ..... 0.72%(c)*
Ratio of net investment income to average
net assets ................................. 1.00%(c)*
Portfolio turnover ratio .................... 25%**
</TABLE>

<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------- --------- --------- --------- -------
<S> <C> <C> <C> <C> <C>
Per share operating performance:
Net asset value, beginning of year .......... $ 15.34 $ 13.96 $ 12.60 $ 10.03 $ 10.36
-------- -------- ------- ------- -------
Net investment income (a) ................... 0.20 0.28 0.28 0.29 0.26
Net realized and unrealized gains
on investments ............................. 1.50 3.75 1.98 2.72 (0.34)
-------- -------- ------- ------- -------
Total from investment operations ............ 1.70 4.03 2.26 3.01 (0.08)
-------- -------- ------- ------- -------
Less distributions:
Dividends from and in excess of
net investment income ..................... (0.18) (0.28) (0.28) (0.25) (0.25)
Distributions from and in excess of
net realized gains on investments ......... (0.47) (2.37) (0.62) (0.19) --
-------- -------- ------- ------- -------
Total distributions ......................... (0.65) (2.65) (0.90) (0.44) (0.25)
-------- -------- ------- ------- -------
Net asset value, end of year ................ $ 16.39 $ 15.34 $ 13.96 $ 12.60 $ 10.03
======== ======== ======= ======= =======
Total return:
Total investment return (b) ................. 11.13% 28.97% 17.89% 30.03% (0.76)%
Ratios/supplemental data:
Net assets, end of year (000's) ............. $149,820 $106,909 $93,247 $71,070 $48,052
Ratio of expenses to average net assets ..... 0.76%(c) 0.79%(c) 0.79%(c) 0.81%(c) 0.87%
Ratio of net investment income to average
net assets ................................. 1.24%(c) 1.77%(c) 2.02%(c) 2.51%(c) 2.82%
Portfolio turnover ratio .................... 28% 60% 24% 79% 55%
</TABLE>

* Annualized.
** Not annualized.
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Total return at net assets value assuming all distributions reinvested.
(c) The benefits derived from custody credits and directed brokerage
arrangements had no impact. Prior years' ratios are net of benefits
received, if any.

See Notes to Financial Statements.
30
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited)
Liberty Variable Investment Trust Colonial High Yield Securities Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Value
---------- ----------
<S> <C> <C>
CORPORATE FIXED-INCOME
BONDS & NOTES--86.2%
Finance, Insurance & Real Estate--2.3%
Depository Institutions
KMC Telecom Holdings, Inc.,
13.500% 5/15/2009 ................... $250,000 $ 250,000
----------
Manufacturing--36.1%
Chemicals & Allied Products--3.6%
Sterling Chemicals, Inc.,
11.750% 8/15/2006 ................... 190,000 146,300
Trans Resources, Inc., 10.750%
3/15/2008 ........................... 250,000 241,250
----------
387,550
----------
Food & Kindred Products--4.5%
Chattem, Inc., 8.875% 4/1/2008 250,000 240,000
Di Giorgio Corp., 10.000%
6/15/2007 ........................... 250,000 246,250
----------
486,250
----------
Measuring & Analyzing Instruments--1.2%
Envirosource, Inc., 9.750%
6/15/2003 ........................... 200,000 126,000
----------
Miscellaneous Manufacturing--7.6%
Eagle-Picher Industries, Inc.,
9.375% 3/1/2008 ..................... 200,000 190,000
Moll Industries, Inc., 10.500%
7/1/2008 ............................ 250,000 222,500
Simmons Co., 10.250%
3/15/2009 ........................... 40,000 40,700
Thermadyne Holdings Corp.,
9.875% 6/1/2008 ..................... 150,000 132,000
Tokheim Corp., 11.375%
8/1/2008 ............................ 250,000 237,500
----------
822,700
----------
Paper Products--3.3%
Repap New Brunswick, Inc.,
10.625% 4/15/2005 ................... 200,000 160,500
Riverwood International Corp.,
10.875% 4/1/2008 .................... 200,000 194,500
----------
355,000
----------
Primary Metal--5.9%
Keystone Consolidated
Industries, Inc., 9.625%
8/1/2007 ............................ 200,000 194,000
WCI Steel Inc., 10.000%
12/1/2004 ........................... 200,000 203,500
Wheeling-Pittsburgh Corp.,
9.250% 11/15/2007 ................... 250,000 239,375
----------
636,875
----------
</TABLE>

<TABLE>
<CAPTION>
Par Value
---------- ----------
<S> <C> <C>
Printing & Publishing--1.9%
American Lawyer Media, Inc.,
9.750% 12/15/2007 ................... $200,000 $ 200,000
----------
Rubber & Plastic--1.4%
Burke Industries, Inc., 10.000%
8/15/2007 ........................... 200,000 153,000
----------
Transportation Equipment--6.7%
Johnstown America Industries,
Inc., 11.750% 8/15/2005 ............. 225,000 237,375
LDM Technologies, Inc.,
10.750% 1/15/2007 ................... 250,000 247,500
Venture Holdings Trust,
Series B, 9.500% 7/1/2005 ........... 250,000 236,250
----------
721,125
----------
Mining & Energy--5.1%
Oil & Gas Extraction--3.1%
Mariner Energy, Inc., 10.500%
8/1/2006 ............................ 250,000 231,250
Petsec Energy, Inc., 9.500%
6/15/2007 ........................... 200,000 106,000
----------
337,250
----------
Oil & Gas Field Services--2.0%
Chile Offshore Corp., 10.000%
5/1/2008 ............................ 250,000 212,500
----------
Retail Trade--1.9%
Food Stores
Pathmark Stores, Inc., 9.625%
5/1/2003 ............................ 200,000 203,000
----------
Services--8.3%
Amusement & Recreation--6.4%
Hollywood Park, Inc., 9.250%
2/15/2007 ........................... 250,000 246,250
Horseshoe Gaming, LLC,
9.375% 6/15/2007 .................... 250,000 254,375
Regal Cinemas, Inc., 9.500%
6/1/2008 ............................ 200,000 188,000
----------
688,625
----------
Health Services--0.5%
Hanger Orthopedic Group,
11.250% 6/15/2009 ................... 50,000 50,750
----------
Hotels, Camps & Lodging--1.4%
CapRock Communications
Corp., 11.500% 5/1/2009 ............. 150,000 151,500
----------
Transportation, Communication, Electric,
Gas & Sanitary Services--32.1%
Broadcasting--2.2%
Fox Family Worldwide, Inc.,
9.250% 11/1/2007 .................... 250,000 233,125
----------
</TABLE>

See Notes to Investment Portfolio.
31
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial High Yield Securities Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Value
---------- ----------
<S> <C> <C>
Cable--11.2%
Adelphia Communications
Corp., 9.875% 3/1/2007 .............. $ 250,000 $ 261,250
Charter Communications
Holding LLC, stepped
coupon, (9.920%
04/01/04) (a) 4/1/2011 (b) .......... 500,000 310,000
Diamond Cable
Communication, PLC,
stepped coupon, (10.750%
02/15/02) (a) 2/15/2007 (b) ......... 250,000 195,000
FrontierVision Holdings LP,
stepped coupon, (11.875%
09/15/01) (a) 9/15/2007 (b) ......... 250,000 216,250
Telewest Communication PLC,
stepped coupon, (11.000%
10/01/00) (a) 10/1/2007 (b) ......... 250,000 223,125
-----------
1,205,625
-----------
Communications--5.5%
Microcell Telecommunications,
Inc., stepped coupon,
(14.000% 12/01/01) (a)
6/1/2006 (b) ........................ 250,000 203,125
Nextlink Communications, Inc.,
10.750% 6/1/2009 .................... 250,000 256,875
Spectrasite Holdings, Inc.,
stepped coupon, (11.250%
04/15/04) (a) 4/15/2009 (b) ......... 250,000 142,500
-----------
602,500
-----------
Electric Services--0.3%
AES Corp., 9.500% 6/1/2009 ............. 35,000 36,050
-----------
Motor Freight & Warehousing--0.5%
MTL, Inc., 10.000% 6/15/2006 ........... 50,000 49,500
-----------
Telecommunication--12.4%
Carrier1 International S.A.,
13.250% 2/15/2009 ................... 250,000 253,750
Loral Space & Communications
Ltd., 11.250% 1/15/2007 ............. 250,000 220,000
McLeod USA, Inc., stepped
coupon, (10.500%
03/01/02) (a) 3/1/2007 (b) .......... 250,000 191,875
</TABLE>

<TABLE>
<CAPTION>
Par Value
---------- ----------
<S> <C> <C>
Metrocall, Inc.:
9.750% 11/1/2007 ...................... $ 100,000 $ 74,000
11.000% 9/15/2008 ..................... 150,000 117,750
Nextel Communications, Inc.,
Stepped Coupon, (9.750%
10/31/02) (a) 10/31/2007 (b)......... 100,000 70,250
Verio, Inc., 11.250% 12/1/2008.......... 395,000 413,763
-----------
1,341,388
-----------
Wholesale Trade--0.4%
Nondurable Goods
Revlon Consumer Products
Corp., 9.000% 11/1/2006 ............. 50,000 49,500
-----------
Total Corporate Fixed Income
Bonds & Notes,
(cost of $9,877,108) .................................. 9,299,813
-----------
PREFERRED STOCK--0.8%
Transportation, Communication,
Electric, Gas & Sanitary Services
Telecommunication
Nextel Communications, Inc. 11.125% PIK
(cost of $94,715)...................................... 85,308
-----------
Total Investments--87.0%
(cost of $9,971,823)(c) ............................... 9,385,121
-----------
SHORT-TERM OBLIGATIONS--12.8%
Repurchase agreement with
SBC Warburg Ltd., dated
06/30/99, due 07/01/99 at
4.800%, collateralized by U.S.
Treasury bonds and/or notes
with various maturities to
2027, market value
$ 1,430,832 (repurchase
proceeds $1,382,184) ................ $1,382,000 $ 1,382,000
-----------
Other Assets & Liabilities, Net--0.2% .................... 22,510
-----------
Net Assets--100% ......................................... $10,789,631
===========
</TABLE>

Notes to Investment Portfolio:
(a) Currently zero coupon. Shown parenthetically is the interest rate to be and
the date the Fund will begin accruing this rate.
(b) This is a British security. Par amount is stated in U.S. dollars.
(c) The cost for federal income tax purposes is identical.

See Notes to Financial Statements.
32
<PAGE>

- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
Liberty Variable Investment Trust Colonial High Yield Securities Fund, Variable
Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets:
Investments, at market value (identified cost $9,971,823) ............... $ 9,385,121
Short-term obligations .................................................. 1,382,000
Cash .................................................................... 18,047
Interest receivable ..................................................... 212,852
Other assets ............................................................ 6,127
-----------
Total assets .......................................................... 11,004,147
-----------
Liabilities:
Payable for investments purchased ....................................... 202,500
Management fee payable .................................................. 8,193
Bookkeeping fee payable ................................................. 2,138
Transfer agent fee payable .............................................. 595
Other liabilities ....................................................... 1,090
-----------
Total liabilities ..................................................... 214,516
-----------
Net assets .............................................................. $10,789,631
===========
Net assets represented by:
Paid-in capital ........................................................ $11,075,829
Accumulated undistributed net investment income ........................ 356,701
Accumulated net realized losses on investments ......................... (56,197)
Net unrealized depreciation on investments ............................. (586,702)
-----------
Total net assets applicable to outstanding shares of beneficial interest $10,789,631
===========
Shares of beneficial interest outstanding ............................... 1,136,533
===========
Net asset value per share ............................................... $9.49
=====
</TABLE>

- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (Unaudited)
For the Six Months Ended June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Investment income:
Interest income ............................................... $ 390,109
Dividends ..................................................... 2,378
----------
Total investment income ..................................... 392,487
----------
Expenses:
Management fee ............................................... 23,820
Bookkeeping fee .............................................. 13,388
Transfer agent fee ........................................... 3,720
Audit fee .................................................... 6,192
Printing expense ............................................. 42
Trustees' expense ............................................ 383
Miscellaneous expense ........................................ 2,222
----------
Total expenses .............................................. 49,767
----------
Less:
Expense reimbursable by Manager .............................. (18,007)
----------
Net expenses .................................................. 31,760
----------
Net investment income ......................................... 360,727
Realized and unrealized gains (losses) on investments:
Net realized gains on investments ............................ 3,038
Change in net unrealized depreciation on investments ......... (268,268)
----------
Net increase in net assets resulting from operations .......... $ 95,497
==========
</TABLE>

See Notes to Financial Statements.
33
<PAGE>

- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
Liberty Variable Investment Trust Colonial High Yield Securities Fund, Variable
Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Period
Ended Ended
June 30, December 31,
1999 1998*
----------- ------------
<S> <C> <C>
Operations:
Net investment income .......................................................... $ 360,727 $ 257,812
Net realized gains (losses) on investments ..................................... 3,038 (59,235)
Change in unrealized depreciation on investments ............................... (268,268) (318,434)
----------- ----------
Net increase (decrease) in net assets resulting from operations ................. 95,497 (119,857)
----------- ----------
Distributions declared from:
Net investment income .......................................................... -- (257,812)
In excess of net investment income ............................................. -- (4,026)
----------- ----------
Total distributions ............................................................. -- (261,838)
----------- ----------
Fund share transactions:
Proceeds from fund shares sold ................................................. 5,124,511 6,073,053
Cost of fund shares repurchased ................................................ (345,453) (38,120)
Distributions reinvested ....................................................... -- 261,838
----------- ----------
Net increase in net assets resulting from fund share transactions ............... 4,779,058 6,296,771
----------- ----------
Total increase in net assets .................................................... 4,874,555 5,915,076
Net assets:
Beginning of year .............................................................. 5,915,076 --
----------- ----------
End of year .................................................................... $10,789,631 $5,915,076
=========== ==========
Accumulated undistributed (overdistributed) net investment income included in
ending net assets .............................................................. $ 356,701 $ (4,026)
=========== ==========
Analysis of changes in shares of beneficial interest:
Shares sold .................................................................... 537,281 700,987
Shares repurchased ............................................................. (36,093) (93,796)
Distributions reinvested ....................................................... -- 28,154
----------- ----------
Net increase .................................................................... 501,188 635,345
=========== ==========
</TABLE>

* For the period from the commencement of operations May 19, 1998 to December
31, 1998.

See Notes to Financial Statements.
34
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Interim Financial Statements

In the opinion of management of Colonial High Yield Securities Fund, Variable
Series (the Fund), a series of Liberty Variable Investment Trust, the
accompanying financial statements contain all normal and recurring adjustments
necessary for the fair presentation of the financial position of the Fund at
June 30, 1999, and the results of its operations, the changes in its assets and
the financial highlights for the six months then ended.

Note 2. Accounting Policies

Organization--The Fund is a diversified portfolio of a Massachusetts business
trust, registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund's investment objective is to
seek high current income and total return by investing primarily in lower-rate
corporate debt securities. The Fund's capitalization consists of an unlimited
number of shares of beneficial interest without par value that represent a
separate series of the Trust. Each share of a Fund represents an equal
proportionate beneficial interest in that Fund and, when issued and
outstanding, is fully paid and nonassessable. Shareholders would be entitled to
share proportionally in the net assets of a Fund available for distribution to
shareholders upon liquidation of a Fund. Shares of the Trust are available and
are being marketed exclusively as a pooled funding vehicle for variable annuity
contracts ("VA contracts") and Variable Life Insurance Policies ("VLI
Policies") offered by the separate accounts of the life insurance companies
("Participating Insurance Companies"). Certain Participating Insurance
Companies are affiliated with the Investment Advisor and sub-advisers to the
Fund ("Affiliated Participating Insurance Companies"). Such Affiliated
Participating Insurance Companies are Keyport Life Insurance Company
("Keyport"), Independence Life & Annuity Company ("Independence") and Liberty
Life Assurance Company of Boston ("Liberty Life"). The Participating Insurance
Companies and their separate accounts own all the shares of the Fund. Liberty
Advisory Services Corp. (the Manager) ("LASC"), provides investment management
and advisory services to the Fund pursuant to its Management Agreements with
the Trust. Colonial Management Associates, Inc. ("Colonial") provides
sub-advisory services. LASC had delegated various administrative matters to
Colonial. Colonial also provides transfer agency and pricing and record keeping
services to the Trust. Keyport Financial Services Corp. ("KFSC") serves as the
principal underwriter of the Trust with respect to sales of shares to
Affiliated Participating Insurance Companies. The Manager, Colonial, KFSC,
Keyport and Independence are wholly-owned indirect subsidiaries of Liberty
Financial Companies, Inc. ("LFC"). As of June 30, 1999, Liberty Mutual
Insurance Companies ("Liberty Mutual") owned approximately 71% of the
outstanding voting shares of LFC. Liberty Life is a subsidiary of Liberty
Mutual.

Security valuation and transactions--Debt securities generally are valued by a
pricing service based upon market transactions for normal, institutional-size
trading units of similar securities. When management deems it appropriate, an
over-the-counter or exchange bid quotation is used.

Equity securities generally are valued at the last sale price or, in the case
of unlisted or listed securities for which there were no sales during the day,
at current quoted bid prices.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific
identification method for both financial statement and federal income tax
purposes.

The Fund may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Fund to subsequently invest at less advantageous prices.

Federal income taxes--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

Interest income, debt discount and premium--Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; premium and
market discount are not amortized or accreted.

The value of additional securities received as an interest or dividend payment
is recorded as income and as the cost basis of such securities.

Distributions to shareholders--The Fund intends to distribute as dividends or
capital gains distributions, at least

35
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

annually, substantially all of their net investment income and net profits
realized from the sale of investments. All dividends and distributions are
reinvested in additional shares of the Funds at net asset value as of the
record date of the distribution. Income and capital gain distributions are
determined in accordance with Federal Income accounting principles.

Note 3. Fees and Compensation Paid to Affiliates

Management and Sub-Advisory fees--Liberty Advisory Services Corp. (the
Manager), receives a monthly fee equal to 0.60% annually of the Fund's average
daily net assets. The Manager, out of the management fee it receives, pays
Colonial a monthly sub-advisory fee equal to 0.40% annually of the Fund's
average daily net assets.

Bookkeeping fee--Colonial provides bookkeeping and pricing services for a
monthly fee equal to $27,000 annually plus 0.035% of the Fund's average net
assets over $50 million.

Transfer agent fee--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Advisor, provides shareholder services for an annual rate of
$7,500.

Expense limits--The Manager has agreed, until further notice, to waive fees
and bear certain Fund expenses to the extent that total expenses (including
management fee) exceed 0.80% annually of the Fund's average daily net assets.

Other--The Fund pays no compensation to its officers, all of whom are
employees of the Advisor.

The Fund's Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Fund's assets.

Note 4. Portfolio Information

Investment activity--During the six months ended June 30, 1999, purchases and
sales of investments, other than short term obligations, were $4,660,952 and
$106,539, respectively.

Unrealized appreciation (depreciation) at June 30, 1999, based on cost of
investments for federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation $ 47,833
Gross unrealized depreciation (634,535)
---------
Net unrealized depreciation $(586,702)
---------
</TABLE>

Capital loss carryforwards--At December 31, 1998, capital loss carryforwards
available (to the extent provided in regulations) to offset future realized
gains were approximately as follows:

<TABLE>
<CAPTION>
Year of Capital loss
expiration carryforward
- ------------- -------------
<S> <C>
2006 $49,000
</TABLE>

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

36
<PAGE>

- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust Colonial High Yield Securities Fund, Variable
Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(Unaudited)
Six Months
Ended Period Ended
June 30, December 31,
1999 1998***
----------- ------------
<S> <C> <C>
Per share operating performance:
Net asset value, beginning of year .................................... $ 9.31 $10.00
------- ------
Net investment income (a) ............................................. 0.43 0.48
Net realized and unrealized gains on investments ...................... (0.25) (0.74)
------- ------
Total from investment operations ...................................... 0.18 (0.26)
------- ------
Less distributions:
Dividends from and in excess of net investment income ................ -- (0.43)
Distributions from and in excess of net realized gains on investments -- (0.00)
------- ------
Total distributions ................................................... -- (0.43)
------- ------
Net asset value, end of year .......................................... $ 9.49 $ 9.31
======= ======
Total return:
Total investment return (b)(c) ........................................ 1.93%** (2.57)%**
Ratios/supplemental data:
Net assets, end of year (000's) ....................................... $10,790 $5,915
Ratio of expenses to average net assets (d) ........................... 0.80%* 0.80%*
Ratio of net investment income to average net assets (c)(d) ........... 8.97%* 7.93%*
Portfolio turnover ratio .............................................. 1%** 23%**
</TABLE>

* Annualized.
** Not annualized.
*** For the period from the commencement of operations May 19, 1998 to December
31, 1998.
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Total return at net assets value assuming all distributions reinvested.
(c) Computed giving effect to Manager's expense limitation undertaking.
(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact.

See Notes to Financial Statements.
37
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited)
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- --------- ---------
<S> <C> <C> <C>
COMMON STOCK--88.1%
Agriculture, Forestry & Fishing--0.5%
Agricultural Services--0.1%
PT Chareon Pokphand
Indonesia (a) ................................................... In 162,500 $ 41,974
---------
Agriculture--Crops--0.4%
Tabacalera S.A. .................................................... Sp 11,700 237,060
---------
Construction--3.8%
Heavy Construction--
Non-Building Constructions--2.9%
Hyder PLC .......................................................... UK 49,000 583,522
Kaneshita Construction ............................................. Ja 21,000 134,338
Vivendi ............................................................ Fr 13,338 1,083,060
---------
1,800,920
---------
Special Trade Contractors--0.9%
Tomkins PLC (a) .................................................... UK 136,392 591,610
---------
Finance, Insurance & Real Estate--18.8%
Depository Institutions--12.2%
Allied Irish Banks PLC ............................................. Ir 29,500 388,942
Argentaria Caja Postal Y
Banco Hipotecario de
Espana, SA ...................................................... Sp 12,300 280,877
Banca Popolare di Milano
(BPM) ........................................................... It 127,100 985,948
Banco Latinoamericano de
Exportaciones, SA ............................................... Pn 16,000 428,000
Banque Nationale de Paris .......................................... Fr 12,620 1,054,111
Deutsche Bank AG ................................................... G 16,750 1,024,201
Generale Banque, VVPR
STRIP (a) ....................................................... Be 105 2
HSBC Holdings PLC (b) .............................................. HK 201 7,121
Lloyds Bank PLC .................................................... UK 37,000 505,428
MeritaNordbanken Oyj
Series A ........................................................ Fi 146,500 834,459
Standard Chartered PLC ............................................. UK 41,000 670,174
Svenska Handelsbanken,
Class A ......................................................... Sw 48,600 585,906
The Bank of Tokyo
Mitsubishi ...................................................... Ja 37,000 526,215
Westpac Banking Corp. .............................................. Au 50,300 328,569
---------
7,619,953
---------
Financial Services--1.0%
Halifax PLC (a) .................................................... UK 42,088 506,647
Industrial Finance Corp. of
Thailand ........................................................ Th 170,700 108,874
---------
615,521
---------
Holding & Other Investment Offices--0.0%
Fortis AG-CVG (a) .................................................. Be 3,395 19,373
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- --------- ---------
<S> <C> <C> <C>
Fortis AG-Strip VVPR (a) ........................................... Be 30,555 $ 316
---------
19,689
---------
Holding Companies--1.5%
Fortis Amev NV ..................................................... Ne 29,604 916,564
---------
Insurance Carriers--0.8%
Assurances Generales De
France .......................................................... Fr 11,060 533,934
---------
Investment Companies--1.6%
Irish Investment Fund, Inc. ........................................ Ir 25,500 420,750
Japan OTC Equity Fund,
Inc. (a) ........................................................ Ja 250 258,750
World Equity Benchmark
Share--Japan .................................................... Ja 24,800 310,000
---------
989,500
---------
Nondepository Credit Institution--1.6%
Promise Co., Ltd. .................................................. Ja 16,500 973,793
---------
Real Estate--0.1%
IOI Properties Berhad .............................................. Ma 62,000 88,399
---------
Manufacturing--45.6%
Apparel--0.8%
Tokyo Style ........................................................ Ja 48,000 515,064
---------
Chemicals & Allied Products--6.9%
Glaxo Holdings PLC ................................................. UK 17,000 472,732
Indian Petrochemicals Corp.,
Ltd. GDR ........................................................ Id 15,800 120,475
Kao Corp. .......................................................... Ja 21,000 589,352
Kemira Oyj ......................................................... Fi 66,000 399,813
Norsk Hydro AS ..................................................... No 30,533 1,152,298
Novartis ........................................................... Sz 417 610,624
Reliance Industries Ltd. GDR ....................................... Id 12,000 121,200
SmithKline Beecham PLC ............................................. UK 67,400 876,526
---------
4,343,020
---------
Communications Equipment--5.3%
Koor Industries Ltd. ............................................... Is 13,000 303,875
Matsushita Electric Industrial
Co. ............................................................. Ja 57,000 1,105,654
Portugal Telecom SA ................................................ Pt 9,500 391,281
Racal Electronics PLC .............................................. UK 163,300 998,096
Sony Corp. ......................................................... Ja 5,000 538,588
---------
3,337,494
---------
Electronic Components--5.9%
Alcatel Alsthom .................................................... Fr 6,755 953,177
Koninklijke Philips
Electronics ADR (a) ............................................. Ne 12,420 1,252,868
Murata Manufacturing Co.,
Ltd. ............................................................ Ja 19,000 1,248,370
Samsung Electronics ................................................ Ko 1,329 145,817
</TABLE>

See Notes to Investment Portfolio.
38
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- --------- ---------
<S> <C> <C> <C>
Samsung Electronics GDS ............................................ Ko 1,958 $ 105,340
---------
3,705,572
---------
Fabricated Metals--0.7%
Amcor Ltd. ......................................................... Au 75,500 422,625
---------
Food & Kindred Products--1.3%
Groupe Danone ...................................................... Fr 2,010 519,459
Perdiago S.A. ...................................................... Bz 70,000,000 99,857
Vitasoy International
Holdings Ltd. ................................................... HK 583,750 205,024
---------
824,340
---------
Household Appliances--1.3%
Electrolux AB, Series B ............................................ Sw 28,900 608,008
Moulinex (a) ....................................................... Fr 18,300 195,230
---------
803,238
---------
Machinery & Computer Equipment--2.1%
Canon, Inc. ........................................................ Ja 16,000 459,595
Mannesmann AG ...................................................... G 5,950 890,022
---------
1,349,617
---------
Measuring & Analyzing Instruments--0.6%
Orbotech, Ltd. (a) ................................................. Is 7,600 396,150
---------
Paper Products--4.5%
Metro Pacific Corp. ................................................ Ph 2,992,340 149,420
Mo och Domsjo AB. Class B Sw 26,000 608,457
Royal Koninklijke PTT
Nederland ....................................................... Ne 16,130 758,685
Stora Enso Oyj Class R ............................................. Fi 90,500 972,965
TNT Post Group NV .................................................. Ne 15,154 362,655
---------
2,852,182
---------
Petroleum Refining--2.9%
BP Amoco PLC ADR ................................................... UK 6,000 651,000
Total Fina SA--B Shares ............................................ Fr 8,989 1,162,477
---------
1,813,477
---------
Primary Metals--2.4%
Avesta Sheffield AB ................................................ Sw 83,900 364,923
Billiton PLC ....................................................... UK 193,000 661,350
Svenskt Stal AB (SSAB),
Series B ........................................................ Sw 38,263 477,114
---------
1,503,387
---------
Rubber & Plastic--2.2%
Bridgestone Corp. .................................................. Ja 18,000 543,789
Michelin Class B ................................................... Fr 20,100 824,278
---------
1,368,067
---------
Stone, Clay, Glass & Concrete--2.8%
Companion Building
Materials, Ltd. ................................................. HK 1,911,840 34,990
CRH PLC ............................................................ Ir 27,000 478,606
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- --------- ---------
<S> <C> <C> <C>
Holderbank Financiere
Glaris AG ....................................................... Sz 425 $ 503,080
Lafarge SA ......................................................... Fr 5,690 542,324
N.V. Koninklijke Sphinx
Gustavsberg ..................................................... Ne 16,846 215,070
---------
1,774,070
---------
Textile Mill Products--0.1%
PT Evershine Textile
Industry (a) .................................................... In 427,396 50,467
---------
Tobacco Products--1.7%
Allied Zurich PLC .................................................. UK 37,000 465,422
B.A.T. Industries PLC .............................................. UK 28,000 263,441
Grupo Carso SA, Series A-1 ......................................... Mx 69,900 326,524
---------
1,055,387
---------
Transportation Equipment--4.1%
DaimlerChrysler AG ................................................. G 6,300 547,060
GKN PLC ............................................................ UK 38,000 654,924
Honda Motor Co. Ltd. ............................................... Ja 11,000 465,786
MAN AG. ............................................................ G 8,100 277,159
Volvo AB ........................................................... Sw 22,000 640,960
---------
2,585,889
---------
Mining & Energy--1.4%
Coal Mining--0.8%
Samchully Co. ...................................................... Ko 11,273 475,267
---------
Miscellaneous Metal Ores--0.6%
Southern Peru Copper Co. ........................................... Pe 25,500 368,156
---------
Retail Trade--2.3%
Food Stores--0.4%
Jardine Matheson Holdings
Ltd. (a) ........................................................ Si 1 5
Tesco PLC .......................................................... UK 87,000 225,461
---------
225,466
---------
General Merchandise Stores--1.3%
Globex Utilidades S.A. ............................................. Bz 15,600 82,340
Ito-Yokado Co., Ltd. ............................................... Ja 9,000 601,733
PT Matahari Putra Prima ............................................ In 858,000 113,977
---------
798,050
---------
Miscellaneous Retail--0.3%
Centros Comerciales (a) ............................................ Sp 9,650 215,475
---------
Restaurants--0.3%
TelePizza S.A. (a) ................................................. Sp 33,300 172,808
---------
Services--2.8%
Computer Related Services--0.9%
Dixons Group PLC ................................................... UK 28,800 541,085
---------
Computer Software--1.9%
Ing C. Olivetti & SPA (a) .......................................... It 295,880 713,585
Misys PLC .......................................................... UK 54,000 463,774
---------
1,177,359
---------
</TABLE>

See Notes to Investment Portfolio.
39
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- --------- -----------
<S> <C> <C> <C>
Transportation, Communication, Electric,
Gas & Sanitary Services--12.0%
Communications--1.0%
Vodafone Group PLC ..................... UK 31,000 $ 614,137
-----------
Gas Services--2.5%
BG PLC ................................. UK 172,076 1,051,735
Centrica PLC (a) ....................... UK 208,800 490,717
-----------
1,542,452
-----------
Sanitary Services--0.2%
Companhia de Saneamento
Basico do Estado de Sao
Paulo ............................... Bz 1,902,000 153,028
-----------
Telecommunication--7.9%
COLT Telecom Group PLC ................. UK 28,000 574,137
Embratel Participacoes SA
ADR ................................. Bz 12,400 172,050
Nippon Telegraph &
Telephone Corp. ..................... Ja 108 1,256,954
Nokia Oyj .............................. Fi 5,600 492,065
SK Telecom Co., Ltd. ................... Ko 136 184,539
Telecom Argentina Stet-
France Telecom ...................... Ar 11,500 307,625
Telecom Italia SPA ..................... It 75,000 779,577
Telecomunicacoes Brasileiras
SA ADR Preferred Block .............. Bz 6,000 541,125
Telecomunicacoes Brasileiras
SA (a) .............................. Bz 12,400 775
Telefonica de Espana ADR ............... Sp 2,341 344,405
Telesp Participacoes SA
ADR (a) ............................. Bz 12,400 283,650
-----------
4,936,902
-----------
Water Transportation--0.4%
Hong Kong Ferry Holdings
Co. ................................. HK 203,000 257,717
-----------
Wholesale Trade--0.9%
Durable Goods
Brierley Investments Ltd. .............. Nz 903,000 255,208
Yamazen Corp. .......................... Ja 151,000 279,191
-----------
534,399
-----------
Total Common Stock
(cost of $49,583,262) ........................................... 55,141,843
-----------
</TABLE>

<TABLE>
<CAPTION>
Country
Abbrev. Shares Value
--------- --------- -----------
<S> <C> <C> <C>
PREFERRED STOCK--3.1%
Manufacturing--3.2%
Chemicals & Allied Products--1.3%
Henkel KGAA ............................ G 11,483 $ 785,831
-----------
Electronic Components--1.9%
Samsung Electronics NV ................. Ko 21,300 1,186,910
-----------
Total Preferred Stock
(cost of $854,150) .............................................. 1,972,741
-----------
RIGHTS & WARRANTS--0.2% (a)
Construction--0.0%
Heavy Construction--
Non-Building Constructions
Vivendi Rights, expires
07/16/99 ............................ Fr 13,338 15,718
Vivendi Warrants, expires
05/02/01 ............................ Fr 2,755 7,405
-----------
23,123
-----------
Finance, Insurance & Real Estate--0.0%
Depository Institutions
Holderbank Financiere
Glarus AG
expires 07/19/99 .................... Sz 17 250
Siam Commercial Bank
Public Co., Ltd.
expires 12/31/02 (b) ................ Th 12,000 (c)
-----------
250
-----------
Manufacturing--0.1%
Electronic Components
Samsung Electronics Rights,
expires 07/16/99 (b) ................ Ko 1,810 89,304
Samsung Electronics GDS,
expires 07/15/99 (b) ................ Ko 157 3,698
-----------
93,002
-----------
Transportation, Communication, Electric,
Gas & Sanitary Services--0.0%
Electronic Components
SK Telecom, expires
07/28/99 ............................ Ko 31 15,990
-----------
Services--0.1%
Computer Software
Ing C. Olivetti & SPA,
expires 07/16/99 .................... It 295,880 40,711
-----------
Total Rights & Warrants--
(cost of $63,176) ............................................... 173,076
-----------
Total Investments--
(cost of $50,500,588) (d) ....................................... 57,287,081
-----------
</TABLE>

See Notes to Investment Portfolio.
40
<PAGE>

- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Par Value
------------- -------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--8.1%
Repurchase agreement with SG
Warburg Ltd., dated 06/30/99,
due 07/01/99 at 4.800%,
by U.S. Treasury bonds
and/or notes with various
maturities collateralized to
2027, market value
$ 5,222,227 (repurchase
proceeds $5,044,673) ......................... $5,044,000 $5,044,000
----------
</TABLE>

<TABLE>
<CAPTION>
Value
-----------
<S> <C>
Other Assets & Liabilities, Net--0.4% . $ 251,561
-----------
Net Assets--100.0% .................. $62,582,642
===========
</TABLE>

Notes to Investment Portfolio
(a) Non-income producing.
(b) The value of this security represents fair value as determined in good
faith under the direction of the Trustees.
(c) Rounds to less than one.
(d) Cost for federal income tax purposes is $50,534,743.

<TABLE>
<CAPTION>
% of Total
Country Securities
Summary of Securities by Country Abbrev. Value at Value
- ---------------------------------- --------- -------------- -----------
<S> <C> <C> <C>
United Kingdom ................. UK $11,861,918 20.7%
Japan .......................... Ja 9,807,172 17.1
France ......................... Fr 6,891,173 12.0
Germany ........................ G 3,524,273 6.1
Netherlands .................... Ne 3,505,842 6.1
Sweden ......................... Sw 3,285,368 5.7
Finland ........................ Fi 2,699,302 4.7
Italy .......................... It 2,519,821 4.4
Korea .......................... Ko 2,206,865 3.8
Brazil ......................... Bz 1,332,825 2.3
Spain .......................... Sp 1,250,625 2.2
Ireland ........................ Ir 1,288,298 2.2
Norway ......................... No 1,152,298 2.0
Switzerland .................... Sz 1,113,954 1.9
Austrailia ..................... Au 751,194 1.3
Israel ......................... Is 700,025 1.2
Hong Kong ...................... HK 504,852 1.2
Panama ......................... Pn 428,000 0.9
Portugal ....................... Pt 391,281 0.7
Peru ........................... Pe 368,156 0.6
Mexico ......................... Mx 326,524 0.6
Argentina ...................... Ar 307,625 0.5
New Zealand .................... NZ 255,208 0.4
India .......................... Id 241,675 0.4
Indonesia ...................... In 206,418 0.4
Philippines .................... Ph 149,420 0.3
Thailand ....................... Th 108,874 0.2
Malaysia ....................... Ma 88,399 0.1
Belgium ........................ Be 19,691 0.0
Singapore ...................... Si 5 0.0
----------- -----
$57,287,081 100.0%
=========== =====
</TABLE>

Certain securities are listed by country of underlying exposure but may
trade predominantly on other exchanges.

<TABLE>
<CAPTION>
Acronym Name
- ----------- ----------------------------------------------------
<S> <C>
ADR American Depositary Receipt
GDR Global Depositary Receipt
GDS Global Depositary Shares
STRIP Separately Traded Receipt of Interest and Principal
</TABLE>

See Notes to Financial Statements.
41
<PAGE>

- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series / June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Assets:
Investments, at market value (identified cost $50,500,588) ................... $57,287,081
Short-term obligations ....................................................... 5,044,000
Cash ......................................................................... 749
Receivable for investments sold .............................................. 980,998
Dividends, tax reclaims and interest receivable .............................. 325,210
-----------
Total assets ............................................................... 63,638,038
-----------
Liabilities:
Payable for investments purchased ............................................ 789,378
Management fee payable ....................................................... 9,974
Bookkeeping fee payable ...................................................... 1,739
Transfer agent fee payable ................................................... 589
Accrued expenses payable ..................................................... 66,920
Other liabilities ............................................................ 186,796
-----------
Total liabilities .......................................................... 1,055,396
-----------
Net assets ................................................................... $62,582,642
===========
Net assets represented by:
Paid-in capital ............................................................. $56,417,018
Accumulated undistributed net investment income ............................. 428,326
Accumulated net realized losses on investments .............................. (1,039,884)
Net unrealized appreciation on investments and foreign currency transactions 6,777,182
-----------
Total net assets applicable to outstanding shares of beneficial interest ..... $62,582,642
===========
Shares of beneficial interest outstanding .................................... 28,869,942
===========
Net asset value per share .................................................... $2.17
=====
</TABLE>

- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (Unaudited)

For the Six Months Ended June 30, 1999
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Investment income:
Interest income ........................................................................ $ 106,962
Dividends .............................................................................. 755,438
----------
Total investment income .............................................................. 862,400
----------
Expenses:
Management fee ........................................................................ 255,720
Bookkeeping fee ....................................................................... 13,946
Transfer agent fee .................................................................... 3,714
Audit fee ............................................................................. 11,826
Printing expense ...................................................................... 1,140
Trustees' expense ..................................................................... 2,641
Custodian fee ......................................................................... 30,236
Legal fee ............................................................................. 394
Amortization of organization expense .................................................. 2,141
Miscellaneous expense ................................................................. 7,172
----------
Total expenses ....................................................................... 328,930
----------
Net investment income .................................................................. 533,470
Realized and unrealized gains on investments:
Net realized gains on investments ..................................................... 925,262
Net realized gains on foreign currency transactions ................................... 3,593
Change in net unrealized appreciation on investments and foreign currency transactions 3,372,262
----------
Net increase in net assets resulting from operations ................................... $4,834,587
==========
</TABLE>

See Notes to Financial Statements.
42
<PAGE>

- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
Liberty Variable Investment Trust Colonial International Fund for Growth,
Variable Series
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Six Months Year
Ended Ended
June 30, December 31,
1999 1998
------------- -------------
<S> <C> <C>
Operations:
Net investment income .......................................................... $ 533,470 $ 318,148
Net realized gains (losses) on investments ..................................... 925,262 (1,623,553)
Net realized gains on foreign currency transactions ............................ 3,593 11,753
Change in unrealized appreciation on investments and foreign currency
transactions .................................................................. 3,372,262 5,220,545
------------- -------------
Net increase in net assets resulting from operations ............................ 4,834,587 3,926,893
------------- -------------
Distributions declared from:
Net investment income .......................................................... -- (121,681)
In excess of net investment income ............................................. -- (145,244)
------------- -------------
Total distributions ............................................................. -- (266,925)
------------- -------------
Fund share transactions:
Proceeds from fund shares sold ................................................. 59,048,975 57,088,376
Cost of fund shares repurchased ................................................ (53,769,230) (39,146,772)
Distributions reinvested ....................................................... -- 266,925
------------- -------------
Net increase in net assets resulting from fund share transactions ............... 5,279,745 18,208,529
------------- -------------
Total increase in net assets .................................................... 10,114,332 21,868,497
Net assets:
Beginning of year .............................................................. 52,468,310 30,599,813
------------- -------------
End of year .................................................................... $ 62,582,642 $ 52,468,310
============= =============
Accumulated undistributed (overdistributed) net investment income included in
ending net assets .............................................................. $ 428,326 $ (105,144)
============= =============
Analysis of changes in shares of beneficial interest:
Shares sold .................................................................... 30,165,544 29,337,610
Shares repurchased ............................................................. (27,687,837) (20,432,403)
Distributions reinvested ....................................................... 125,112 135,980
------------- -------------
Net increase .................................................................... 2,602,819 9,041,187
============= =============
</TABLE>

See Notes to Financial Statements.
43
<PAGE>

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Interim Financial Statements

In the opinion of management of Colonial International Fund for Growth,
Variable Series (the Fund), a series of Liberty Variable Investment Trust, the
accompanying financial statements contain all normal and recurring adjustments
necessary for the fair presentation of the financial position of the Fund at
June 30, 1999, and the results of its operations, the changes in its assets and
the financial highlights for the six months then ended.

Note 2. Accounting Policies

Organization--The Fund is a non-diversified portfolio of a Massachusetts
business trust, registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Fund's investment
objective is to seek long-term capital appreciation, by investing primarily in
non-U.S. equity securities. The Fund may invest more than 5% of its total
assets in the securities of a single issuer, thereby increasing the risk of
loss compared to a diversified fund. The Fund's capitalization consists of an
unlimited number of shares of beneficial interest without par value that
represent a separate series of the Trust. Each share of a Fund represents an
equal proportionate beneficial interest in that Fund and, when issued and
outstanding, is fully paid and nonassessable. Shareholders would be entitled to
share proportionally in the net assets of a Fund available for distribution to
shareholders upon liquidation of a Fund. Shares of the Trust are available and
are being marketed exclusively as a pooled funding vehicle for variable annuity
contracts ("VA contracts") and Variable Life Insurance Policies ("VLI
Policies") offered by the separate accounts of the life insurance companies
("Participating Insurance Companies"). Certain Participating Insurance
Companies are affiliated with the Investment Advisor and sub-advisors to the
Fund ("Affiliated Participating Insurance Companies"). Such Affiliated
Participating Insurance Companies are Keyport Life Insurance Company
("Keyport"), Independence Life & Annuity Company ("Independence") and Liberty
Life Assurance Company of Boston ("Liberty Life"). The Participating Insurance
Companies and their separate accounts own all the shares of the Fund. Liberty
Advisory Services Corp. (the Manager) ("LASC"), provides investment management
and advisory services to the Fund pursuant to its Management Agreements with
the Trust. Colonial Management Associates, Inc. ("Colonial") provides
sub-advisory services. LASC has delegated various administrative matters to
Colonial. Colonial also provides transfer agency and pricing and record keeping
services to the Trust. Keyport Financial Services Corp. ("KFSC") serves as the
principal underwriter of the Trust with respect to sales of shares to
Affiliated Participating Insurance Companies. The Manager, Colonial, KFSC,
Keyport and Independence are wholly-owned indirect subsidiaries of Liberty
Financial Companies, Inc. ("LFC"). As of June 30, 1999, Liberty Mutual
Insurance Companies ("Liberty Mutual") owned approximately 71% of the
outstanding voting shares of LFC. Liberty Life is a subsidiary of Liberty
Mutual.

Foreign currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.