COLONIAL SMALL CAP VALUE FUND
Supplement to Prospectuses
On September 30, 1997, the shareholders of the Fund approved a
management fee change. Effective immediately, the Fund will pay
Colonial Management Associates, Inc. ("Adviser") a monthly
management fee equal to 0.80% of the Fund's average daily net
assets.
As a result of the management fee change, and based on "Other
expenses" incurred in the Fund's most recent fiscal year, the
following information under SUMMARY OF EXPENSES is revised as
follows:
Annual Operating Expenses (as a % of average net assets)
Class A Class B Class C Class Z
Management fee 0.80% 0.80% 0.80% 0.80%
12b-1 fees 0.25 1.00 1.00 0.00
Other expenses 0.47 0.47 0.47 0.47
---- ---- ---- ----
Total operating
expenses 1.52% 2.27% 2.27% 1.27%
==== ==== ==== ====
Example
The Example shows the cumulative expenses attributable to a
hypothetical $1,000 investment in each class of shares of the Fund for
the periods specified, assuming a 5% annual return, and, unless
otherwise noted, redemption at period end. The 5% return and expenses
used in this Example should not be considered indicative of actual or
expected Fund performance or expenses, both of which will vary.
Class A Class B Class C Class Z
Period: (7) (8) (7) (8)
1 year $ 72 $ 73 $ 23 $ 33 $23 $ 13
3 years 103 101 71 71(10) 71 40
5 years 136 142 122 122 122 70
10 years 228 242(9) 242(9) 261 261 153
(7) Assumes redemption at period end.
(8) Assumes no redemption.
(9) Class B shares automatically convert to Class A shares after
approximately 8 years; therefore, years 9 and 10 reflect Class A
share expenses.
(10) Class C shares do not incur a contingent deferred sales charge on
redemptions made after one year.
The third paragraph under the caption HOW THE FUND IS MANAGED is
revised in its entirety as follows:
The Adviser furnishes the Fund with investment management,
accounting and administrative personnel and services, office space
and other equipment and services at the Adviser's expense. For
these services, the Fund pays the Adviser a fee of 0.80% of the
Fund's average daily net assets. For these services, the Fund paid
the Adviser 0.60% of the Fund's average daily net assets for fiscal
year 1997.
Effective October 15, 1997, the Distributor's name changed to
"Liberty Financial Investments, Inc."
SC-36/266E-1097 October 20, 1997
<PAGE>
COLONIAL SMALL CAP VALUE FUND
Supplement to Statement of Additional Information
dated October 28, 1996, Revised February 28, 1997
Effective immediately, Colonial Investment Services, Inc.'s (CISI) name
is changed to Liberty Financial Investments, Inc. (LFII). All
references to CISI in the Statement of Additional Information are now
references to LFII.
The first paragraph under the caption FUND CHARGES AND EXPENSES is
revised in its entirety as follows:
Under the Fund's management agreement, the Fund pays the Adviser a
monthly fee based on the average daily net assets of the Fund,
determined at the close of each business day during the month, at the
annual rate of 0.80%, subject to any voluntary reduction that the
Adviser may agree to from time to time.
SC-39/267E-1097 October 20, 1997
