COLONIAL AGGRESSSIVE GROWTH FUND
Supplement to Prospectus dated October 27, 1997
<PAGE>
At an adjourned Special Meeting of Shareholders held on July 7, 1998, the Fund's
shareholders approved a new management agreement with Stein Roe & Farnham
Incorporated (Advisor). The Advisor's address is One South Wacker Drive, Suite
3200, Chicago, IL 60606.
The Fund's Prospectus is amended as follows:
(1) The first paragraph on the cover of the Prospectus is revised as follows:
Colonial Management Associates, Inc. (Administrator) and your full-service
financial adviser want you to understand both the risks and benefits of
Mutual Fund investing.
(2) On the front cover of the Prospectus, a new paragraph is added below the
Table of Contents as follows:
The SEC maintains a Web site (http://www.sec.gov) that contains the
Statement of Additional Information, materials that are incorporated by
reference into this Prospectus and the Statement of Additional Information,
and other information regarding the Fund.
(3) The third paragraph under the caption "How The Fund Is Managed" is revised
as follows:
The Advisor furnishes the Fund with investment management services. For
these services the Fund pays the Advisor 0.60% of the Fund's average daily
net assets.
(4) Under the caption "How The Fund Is Managed" a new paragraph is added as
follows:
The Administrator provides certain administrative services to the Fund, for
which the Fund pays the Administrator a monthly fee at the rate of 0.25% of
the Fund's average daily net assets. The Administrator provides pricing and
bookkeeping services to the Fund for a monthly fee of $2,250 plus a
percentage of the net assets over $50. million.
(5) The eighth paragraph under the caption "How The Fund Is Managed" is
revised in its entirety as follows:
The Advisor places all orders for the purchase and sale of securities for
the Fund. In doing so, the Advisor seeks to obtain the best combination of
price and execution, which involves a number of judgmental factors. When
the Advisor believes that more than one broker-dealer is capable of
providing the best combination of price and execution in a particular
portfolio transaction, the Advisor often selects a broker-dealer that
furnishes it with research products or services.
(6) The ninth paragraph under the caption "How The Fund Is Managed" is deleted.
(7) Mark Stoeckle no longer manages the Fund. The Fund's portfolio managers are
William Garrison and Steven Salopek. Mr. Garrison joined the Advisor in
1989. He received his A.B. From Princeton University (1988) and an M.B.A.
from the University of Chicago (1995). Mr. Salopek has been a Vice
President with the Adviser since February, 1998, and an Analyst with the
Advisor since June, 1996. Prior to joining the Advisor, Mr. Salopek was an
Analyst with Banc One Investment Advisors from November, 1990 to May, 1996.
(8) A new caption is added after the "How The Fund Is Managed" entitled
"Year 2000" as follows:
The Fund's Advisor, Administrator, Distributor and Transfer Agent (Liberty
Companies) are actively coordinating, managing and monitoring Year 2000
readiness for the Fund. A central program office at the Liberty Companies
is working within the Liberty Companies and with vendors who provide
services, software and systems to the Fund to ensure that date-related
information and data can be properly processed and calculated on and after
January 1, 2000. Many Fund service providers and vendors, including the
Liberty Companies, are in the process of making Year 2000 modifications to
their services, software and systems and believe that such modifications
will be completed on a timely basis prior to January 1, 2000. The cost of
these modifications will not affect the Fund. However, no assurances can be
given that all modifications required to ensure proper data processing and
calculation on and after January 1, 2000 will be timely made or that
services to the Fund will not be adversely affected.
(9) Under the caption "Telephone Transactions" the first sentence is revised in
its entirety and a new second sentence is added as follows:
All shareholders and/or their financial advisers are automatically eligible
to exchange Fund shares and to redeem up to $100,000 of Fund shares by
calling 1-800-422-3737 toll-free any business day between 9:00 a.m. and the
time at which the Fund values it shares.
Telephone redemptions are limited to a total of $100,000 in a 30-day
period. Redemptions that exceed $100,000 may be done by placing a wire
order trade through a broker, writing a check against the account for funds
allowing check-writing, or furnishing a signature guaranteed request.
(10) Effective July 20, 1998, Liberty Financial Investments, Inc., the Fund's
distributor, changed its name to Liberty Funds Distributor, Inc.
(Distributor). The new name does not affect the investment management of,
or service to, the Fund. The Distributor continues to offer selected
investment products managed by subsidiaries of its parent company, Liberty
Financial Companies, Inc. (NYSE:L).
(11) Effective October 1, 1998, Colonial Investors Service Center, Inc., the
Fund's transfer agent, will change its name to Liberty Funds Services, Inc.
The new name will not affect the services to the Fund.
(12) Price Waterhouse LLP, the Fund's independent accountants, changed its name
to PricewaterhouseCoopers LLP. The new name will not affect the services to
the Fund.
September 15, 1998
<PAGE>
COLONIAL AGGRESSIVE GROWTH FUND
Supplement to Statement of Additional Information Replacing Supplement
dated June 22, 1998
At an adjourned Special Meeting of Shareholders held on July 7, 1998, the Fund's
shareholders approved a new management agreement with Stein Roe & Farnham
Incorporated (SR&F). SR&F address is One South Wacker Drive, Suite 3200,
Chicago, IL 60606.
The Fund's Statement of Additional Information is amended as follows:
The first paragraph under the caption FUND CHARGES AND EXPENSES, is revised as
follows:
SR&R furnishes the Fund with investment management services. For these services
the Fund pays the Adviser 0.60% of the Fund's average daily net assets. Colonial
Management Associates, Inc. (CMA) provides certain administrative services to
the Fund, for which the Fund pays CMA a monthly fee at the rate of 0.25% of the
Fund's average daily net assets.
The following is added after the last paragraph under the caption PERFORMANCE
MEASURES:
General. From time to time, the Fund may discuss, or quote its current portfolio
manager as well as other investment personnel, including such persons' views on:
the economy; securities markets; portfolio securities and their issuers;
investment philosophies, strategies, techniques and criteria used in the
selection of securities to be purchased or sold for the Fund, including the New
ValueTM investment strategy that expands upon the principles of traditional
value investing; the Fund's portfolio holdings; the investment research and
analysis process; the formulation and evaluation of investment recommendations;
and the assessment and evaluation of credit, interest rate, market and economic
risks and similar or related matters.
The Fund may also quote evaluations mentioned in independent radio or television
broadcasts, and use charts and graphs to illustrate the past performance of
various indices such as those mentioned in Appendix II and illustrations using
hypothetical rates of return to illustrate the effects of compounding and
tax-deferral. The Fund may advertise examples of the effects of periodic
investment plans, including the principle of dollar costs averaging. In such a
program, an investor invests a fixed dollar amount in a fund at periodic
intervals, thereby purchasing fewer shares when prices are high and more shares
when prices are low.
From time to time, the Fund may also discuss or quote the views of its
distributor, its investment adviser and other financial planning, legal, tax,
accounting, insurance, estate planning and other professionals, or from surveys,
regarding individual and family financial planning. Such views may include
information regarding: retirement planning; general investment techniques (e.g.,
asset allocation and disciplined saving and investing); business succession;
issues with respect to insurance (e.g., disability and life insurance and
Medicare supplemental insurance); issues regarding financial and health care
management for elderly family members; and similar or related matters.
September 15, 1998
