Colonial High Yield Securities Fund
Colonial Income Fund*
Colonial Strategic
Income Fund Stein Roe Advisor Tax-Managed Growth Fund
Stein Roe Advisor Tax-Managed Value Fund
Colonial Money Market Fund*
Newport Japan Opportunities
Fund Newport Tiger Cub Fund
Newport Greater China Fund
Colonial Short Duration U.S. Government Fund(1)
Colonial Intermediate U.S. Government Fund*
Colonial Federal Securities Fund*
Crabbe Huson Contrarian Fund
Crabbe Huson Real Estate Fund
Crabbe Huson Equity Fund
Crabbe Huson Managed Income & Equity Fund
Crabbe Huson Oregon Tax-Free Fund*
Colonial Global Equity Fund
Colonial International Horizons Fund
Colonial Global Utilities Fund
Colonial Select Value Fund
Colonial Strategic Balanced Fund
The Colonial Fund
Colonial High Yield Municipal Fund*
Colonial Tax-Exempt Fund*
Colonial Tax-Exempt Insured Fund*
Colonial Intermediate Tax-Exempt Fund(1)
Colonial Municipal Money Market Fund*
Colonial Utilities Fund
Colonial California Tax-Exempt Fund*
Colonial Connecticut Tax-Exempt Fund*
Colonial Florida Tax-Exempt Fund*
Colonial Massachusetts Tax-Exempt Fund*
Colonial Michigan Tax-Exempt Fund*
Colonial Minnesota Tax-Exempt Fund*
Colonial New York Tax-Exempt Fund*
Colonial North Carolina Tax-Exempt Fund*
Colonial Ohio Tax-Exempt Fund*
Colonial Small Cap Value Fund
Colonial U.S. Growth & Income Fund
Colonial Value Fund
Newport Asia Pacific Fund
Newport Europe Fund
Newport Tiger Fund
Colonial Counselor Select Income Portfolio*
Colonial Counselor Select Balanced Portfolio
Colonial Counselor Select Growth Portfolio
Liberty All-Star Growth and Income
<PAGE>
Supplement to the Prospectus for each of the Funds Referenced Above
The following information supplements the information in the Sales
Charges section of the Prospectus of each Fund:
The contingent deferred sales charges (CDSCs) for larger purchases of
Class B shares of the Funds through participating financial advisor firms are
being reduced, effective February 1, 2000, as follows:
o The reductions apply only to Class B shares purchased on or after
February 1, 2000.
o The reductions apply only to customers of financial advisor firms
that have elected to participate in these reductions. (Some
financial advisors firms are not able to participate, because
their record keeping or transaction processing systems are not
designed to accommodate these reductions.) Consult your financial
advisor to see whether it participates in these reductions.
The CDSC, the holding period between your purchase of shares and the automatic
conversion of those shares to Class A shares, and the commission the Funds'
distributor pays to your financial advisor firm when you buy the shares will be
as follows:
<TABLE>
<CAPTION>
<C> <S>
Purchases of less than $250,000
- ------------------------------------------------------- -----------------------------------------------------
Holding period after purchase CDSC as % deducted when shares sold
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through first year 5.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through second year 4.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through third year 3.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through fourth year 3.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through fifth year 2.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through sixth year 1.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Longer than six years 0.00
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>
Commission to the financial advisor: 5%
* 4% for Funds marked with an asterisk in heading above
Automatic conversion to Class A shares: 8 years after purchase
<TABLE>
<CAPTION>
<C> <S>
Purchases of $250,000 to less than $500,000
- ------------------------------------------------------- -----------------------------------------------------
Holding period after purchase CDSC as % deducted when shares sold
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through first year 3.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through second year 2.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through third year 1.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Longer than four years 0.00
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>
Commission to financial advisor: 2.50%
Automatic conversion to Class A shares: 4 years after purchase
<TABLE>
<CAPTION>
<C> <S>
Purchases of $500,000 to less than $1 million
- ------------------------------------------------------- -----------------------------------------------------
Holding period after purchase CDSC as % deducted when shares sold
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through first year 3.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through second year 2.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Through third year 1.00
- ------------------------------------------------------- -----------------------------------------------------
- ------------------------------------------------------- -----------------------------------------------------
Longer than four years 0.00
- ------------------------------------------------------- -----------------------------------------------------
</TABLE>
Commission to financial advisor: 1.75%
Automatic conversion to Class A shares: 3 years after purchase
For purchases through financial advisor firms that do not participate
in the Class B discount program, the CDSC, conversion period and commission to
the financial advisor will continue to be as described in the Prospectus.
If your financial advisor firm participates in the discount program,
purchases of over $1 million can only be made Class A or Class C shares. If your
financial advisor firm does not participate in the Class B discount program,
purchases of more than $250,000 but less than $1 million can only be made in
Class A or Class C shares.
If a shareholder exchanges from any Fund not participating in this Class B
purchase program into any other Fund which does so participate, or transfers any
Fund account from a financial advisor firm that does not participate in the
Class B discount program to a financial advisor firm that does participate, the
exchanged or transferred shares will retain their pre-existing CDSC and
conversion schedule, but additional purchases of shares which cause the
exchanged or transferred Fund account to exceed the applicable discount level
will receive the lower CDSC and reduced holding period for amounts exceeding the
discount level and the financial advisor firm will receive the lower commission.
An additional way shareholders can pay a lower CDSC and be subject to the
applicable reduced holding period when purchasing Class B shares through
participating financial advisor firms is through Rights of Accumulation. If the
combined value of the Fund accounts maintained by a shareholder, the
shareholder's spouse and minor children reaches a discount level, any additional
shares purchased in any of the accounts will be subject to the applicable lower
CDSC and reduced holding period.
*****************
(1) The Colonial Short Duration U.S. Government Fund and Colonial Intermediate
Tax-Exempt Fund will be affected by only some of the above changes. The Funds'
policies regarding the purchase of Class B shares through participating
financial advisor firms of less than $250,000 will not change from what appears
in each Fund's current Prospectus. For purchases of $250,000 to less than
$500,000 and of $500,000 to less than $1 million, the applicable charts above
will apply.
D-36/258I-1299 December 28, 1999
