Colonial U.S. Growth & Income Fund
Class A, B, C and Z shares
Supplement to Prospectuses dated
November 1, 1999
(Replacing Supplements dated June 23, 2000 and August 1, 2000)
Effective July 14, 2000, the Fund changed its name to "Liberty Growth & Income
Fund."
Effective August 1, 2000, Mark Stoeckle no longer managed the Fund and Harvey
Hirschhorn and Scott Schermerhorn began co-managing the Fund.
The sub-caption, Portfolio Manager, under the section Managing the Fund is
changed in its entirety as follows:
Harvey B. Hirschhorn, a senior vice president of Colonial Management Associates,
Inc. (Colonial), has co-managed the Fund since August, 2000. Mr. Hirschhorn has
been affiliated with and has managed various other funds for Stein Roe & Farnham
Incorporated, an affiliate of Colonial, since 1973.
Scott Schermerhorn, a senior vice president of Colonial, has co-managed the Fund
since August, 2000. Mr. Schermerhorn has managed various other funds at Colonial
since October, 1998. Prior to joining Colonial, Mr. Schermerhorn was the head of
the value team at Federated Investors from May, 1996 to October, 1998 where he
managed the American Leader Fund, Federated Stock Trust and Federated Stock and
Bond Fund as well as other institutional accounts. Prior to 1996, Mr.
Schermerhorn was a member of the growth and income team at J&W Seligman.
The footnote to the table "Class A Sales Charges" under the subcaption SALES
CHARGES under the section YOUR ACCOUNT is revised as follows:
Class A shares bought without an initial sales charge in accounts aggregating $1
million to $25 million at the time of purchase are subject to a 1% CDSC if the
shares are sold within 18 months of the time of purchase. Subsequent Class A
purchases that bring your account value above $1 million are subject to a CDSC
if redeemed within 18 months of the date of purchase. The 18 month period begins
on the first day of the month following each purchase. The contingent deferred
sales charge does not apply to retirement plans purchased through a fee-based
program.
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The following replaces the table called "Purchases Over $1 Million" under the
subcaption SALES CHARGES under the section YOUR ACCOUNT:
Amount purchased Commission %
First $3 million 1.00
$3 million to less than $5 million 0.80
$5 million to less than $25 million 0.50
$25 million or more 0.25*
* Paid over 12 months but only to the extent the shares remain outstanding.
For Class A share purchases by participants in certain group retirement plans
offered through a fee-based program, financial advisors receive a 1% commission
from the distributor on all purchases of less than $3 million.
August 2, 2000
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Colonial Small Cap Value Fund
Class A, B, C and Z Shares
Supplement to Prospectuses dated
November 1, 1999
(Replacing Supplements dated June 23, 2000 and August 1, 2000)
Effective July 14, 2000, the Fund changed its name to "Liberty Small-Cap Value
Fund."
Effective August 1, 2000, James P. Haynie and Michael Rega no longer co-managed
the Fund and Daniel Cantor and Jeffrey Kinzel began co-managing the Fund.
The sub-caption, Portfolio Managers, under the section Managing the Fund is
changed in its entirety as follows:
Daniel K. Cantor, a senior vice president of Colonial Management Associates,
Inc. (Colonial), has been co-manager of the Fund since August, 2000. Mr. Cantor
has been affiliated with and has managed various other funds for Stein Roe &
Farnham Incorporated (Stein Roe), an affiliate of Colonial, since 1985.
Jeffrey Kinzel, a senior vice president of Colonial, has co-managed the Fund
since August, 2000. Mr. Kinzel has been affiliated with and has managed various
other funds for Stein Roe since 1991.
The footnote to the table "Class A Sales Charges" under the subcaption SALES
CHARGES under the section YOUR ACCOUNT is revised as follows:
Class A shares bought without an initial sales charge in accounts aggregating $1
million to $25 million at the time of purchase are subject to a 1% CDSC if the
shares are sold within 18 months of the time of purchase. Subsequent Class A
purchases that bring your account value above $1 million are subject to a CDSC
if redeemed within 18 months of the date of purchase. The 18 month period begins
on the first day of the month following each purchase. The contingent deferred
sales charge does not apply to retirement plans purchased through a fee-based
program.
<PAGE>
The following replaces the table called "Purchases Over $1 Million" under the
subcaption SALES CHARGES under the section YOUR ACCOUNT:
Amount purchased Commission %
First $3 million 1.00
$3 million to less than $5 million 0.80
$5 million to less than $25 million 0.50
$25 million or more 0.25*
* Paid over 12 months but only to the extent the shares remain outstanding.
For Class A share purchases by participants in certain group retirement plans
offered through a fee-based program, financial advisors receive a 1% commission
from the distributor on all purchases of less than $3 million.
August 2, 2000
