KEYPORT VARIABLE INVESTMENT TRUST
SUPPLEMENT DATED SEPTEMBER 19, 1997
TO
PROSPECTUS DATED MAY 1, 1997
This supplement contains information about all of the Funds of the Trust.
On August 14, 1997, the Board of Trustees approved certain changes that
together affect all of the Funds of the Trust. The changes included the
following matters impacting the Prospectus:
* Changing each Fund's name and the Trust's name.
* Changing the sub-adviser, investment objective and investment
program of the Colonial-Keyport Utilities Fund.
* Changing the investment objective and expanding the investment
program of the Colonial-Keyport U.S. Stock Fund.
* Expanding the authority of the Colonial-Keyport International Fund
For Growth to invest in derivatives.
* Expanding the Trust's principal underwriting arrangements.
With the exception of the change in the sub-adviser of the
Colonial-Keyport Utilities Fund, none of the above matters requires shareholder
approval. All of these changes will become effective as of November 15, 1997
(subject, in the case of the Colonial-Keyport Utilities Fund, to such
shareholder approval).
These matters are described in more detail on the following pages of this
Supplement.
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KEYPORT VARIABLE INVESTMENT TRUST
Changes to be Effected November 15, 1997
1. Colonial-Keyport Utilities Fund. Keyport Advisory Services Corp.
("KASC") (which will be renamed "Liberty Advisory Services Corp."), the
Trust's investment manager, has determined to make the following
changes with respect to the Colonial-Keyport Utilities Fund: KASC will
terminate its existing sub-advisory agreement with Colonial Management
Associates, Inc. ("Colonial") and enter into a new sub-advisory
agreement with Stein Roe & Farnham Incorporated ("Stein Roe"). KASC,
Colonial and Stein Roe are wholly-owned subsidiaries of Liberty
Financial Companies, Inc. In connection with this change, (i) the
Fund's name will change to "Stein Roe Global Utilities Fund, Variable
Series" and (ii) the investment objective and investment program of the
Fund will change. The investment changes include authorizing
investments in non-utilities securities (up to 35% of the Fund's
assets), foreign securities, certain debt securities and certain
derivatives.
The new sub-advisory agreement requires approval of the Fund's
shareholders. The Trust anticipates mailing to holders of variable
annuities and variable life insurance invested in the Fund in early
October a proxy statement with respect to the new agreement with Stein Roe
for a special shareholders meeting to be held in November. While the
investment changes do not require shareholder approval, the proxy
statement will describe them in detail, and the Fund will not make such
changes unless the Fund's shareholders approve the new Stein Roe
agreement.
2. Colonial-Keyport U.S. Stock Fund. The Fund's investment objective will
change as follows:
Current Objective: Growth exceeding over time the S&P 500 Index
(Standard & Poor's Corporation Composite Stock Price
Index) performance.
New Objective: Long-term capital growth by investing primarily in
large capitalization equity securities.
In addition, the Fund's investment program will change to authorize up to
10% of the Fund's assets to be invested in certain debt securities.
Finally, the Fund's name will change to "Colonial U.S. Stock Fund,
Variable Series." These changes do not require shareholder approval.
3. Colonial-Keyport International Fund For Growth. The Fund's investment
program will change to expand its authority to invest in derivatives.
Currently, the Fund may purchase futures contracts on foreign stock
indexes (index futures). As changed, the Fund will be able to purchase
and sell (i) foreign stock and bond index futures contracts, (ii)
foreign interest rate futures contracts and (iii) options on any of the
foregoing. Such transactions will be entered into (x) for hedging
purposes or (y) to gain exposure to a particular market pending
investment in individual securities. The Fund also will be able to
purchase and sell options on individual securities for hedging
purposes. The Fund's name also will change to "Colonial International
Fund For Growth, Variable Series." These changes do not require
shareholder approval.
4. Other Name Changes. The names of the other Funds will change as
follows: Colonial-Keyport Growth and Income Fund to "Colonial Growth
and Income Fund, Variable Series," Colonial-Keyport Strategic Income
Fund to "Colonial Strategic Income Fund, Variable Series," and
Newport-Keyport Tiger Fund to "Newport Tiger Fund, Variable Series."
Similarly, the Trust's name will change to "Liberty Variable Investment
Trust."
These changes and the other name changes described above are being made to
expand marketing opportunities for the Funds, including opportunities to
market the funds through Participating Insurance Companies which are not
affiliated with Keyport Life Insurance Company ("Keyport"). Keyport is a
wholly-owned subsidiary of Liberty Financial Companies, Inc. Except as
described above, these name changes do not involve changes to the Funds'
investment objectives or investment programs.
5. Underwriting Arrangements. Currently, Keyport Financial Services Corp.
("KFSC") is the Trust's principal underwriter. Colonial Investment
Services, Inc., a wholly-owned subsidiary of Liberty Financial
Companies, Inc., will enter into a new underwriting agreement
pertaining to sales of the Funds to separate accounts of unaffiliated
Participating Insurance Companies.
