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THE GALAXY VIP FUND
MONEY MARKET FUND
EQUITY FUND
GROWTH AND INCOME FUND
SMALL COMPANY GROWTH FUND
COLUMBIA REAL ESTATE EQUITY FUND II
ASSET ALLOCATION FUND
HIGH QUALITY BOND FUND
COLUMBIA HIGH YIELD FUND II
SUPPLEMENT DATED JUNE 20, 2000
TO STATEMENT OF ADDITIONAL INFORMATION DATED APRIL 30, 2000
1. The following paragraphs are added to the section entitled "Investment
Strategies, Policies and Risks - Other Investment Policies and Risk
Considerations" immediately after the paragraphs entitled "Stand-By
Commitments" on pages 32-33 of the Statement of Additional Information:
U.S. TREASURY ROLLS
The Asset Allocation and High Quality Bond Funds may hold certain
investments in connection with U.S. Treasury rolls. In U.S. Treasury
rolls, a Fund sells outstanding U.S. Treasury securities and buys back
on a delayed settlement basis the same U.S. Treasury securities.
During the period prior to the delayed settlement date, the assets
from the sale of the U.S. Treasury securities are invested in certain
cash equivalent instruments. U.S. Treasury rolls entail the risk that
the Fund could suffer an opportunity loss if the counterparty to the
roll failed to perform its obligations on the settlement date, and if
market conditions changed adversely. Each Fund intends, however, to
enter into U.S. Treasury rolls only with U.S. Government securities
dealers recognized by the Federal Reserve Bank or with member banks of
the Federal Reserve System. Each Fund will hold and maintain in a
segregated account until the settlement date cash or other liquid
assets in an amount equal to the forward purchase price.
For financial reporting and tax purposes, the Funds propose to
treat U.S. Treasury rolls as two separate transactions, one involving
the purchase of a security and a separate transaction involving a
sale. The Funds do not currently intend to enter into U.S. Treasury
rolls that are accounted for as a financing.
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2. The following paragraph is added immediately following the carryover
paragraph on page 37 of the Statement of Additional Information:
With respect to Investment Limitation No. 2 above, mortgage
dollar rolls and U.S. Treasury rolls entered into by the Asset
Allocation and High Quality Bond Funds that are not accounted for as
financings shall not constitute borrowings.
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