LIBERTY VARIABLE INVESTMENT TRUST, 497, 2000-11-21

LIBERTY VARIABLE INVESTMENT TRUST
497, 2000-11-21

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LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED NOVEMBER 15, 2000

Stein Roe Global Utilities Fund, Variable Series
Colonial U.S. Growth & Income Fund, Variable Series
Colonial Strategic Income Fund, Variable Series
Colonial High Yield Securities Fund, Variable Series
Newport Tiger Fund, Variable Series

CLASS A SHARES

Trust shares are available only through variable annuity contracts and variable
life insurance policies of participating insurance companies.

* * * *

This Prospectus must be accompanied by a prospectus for your variable annuity
contract or variable life insurance policy. Retain both prospectuses for future
reference.

* * * *

Although trust shares have been registered with the Securities and Exchange
Commission, the Commission has not approved or disapproved any shares offered in
this prospectus or determined whether this prospectus is accurate or complete.
Any representation to the contrary is a criminal offense.

------------ -----------------
NOT FDIC MAY LOSE VALUE
INSURED --------------
-------- NO BANK GUARANTEE
-----------------

<PAGE>

TABLE OF CONTENTS

THE TRUST 3
------------------------------------------------------------------------------
THE FUNDS 4
------------------------------------------------------------------------------
Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History

Stein Roe Global Utilities Fund, Variable Series......................... 4

Colonial U.S. Growth & Income Fund, Variable Series...................... 6

Colonial Strategic Income Fund, Variable Series.......................... 8

Colonial High Yield Securities Fund, Variable Series..................... 11

Newport Tiger Fund, Variable Series...................................... 14

TRUST MANAGEMENT ORGANIZATIONS 16
------------------------------------------------------------------------------
The Trustees............................................................. 16

Investment Advisor: Liberty Advisory Services Corp...................... 16

Investment Sub-Advisors and Portfolio Managers........................... 16

Mixed and Shared Funding................................................. 18

OTHER INVESTMENT STRATEGIES AND RISKS 19
------------------------------------------------------------------------------
U.S. Government Securities............................................... 19

Structure Risk........................................................... 19

Zero Coupon Bonds........................................................ 19

Convertible Securities................................................... 19

Derivative Strategies.................................................... 19

Temporary Defensive Strategies........................................... 20

FINANCIAL HIGHLIGHTS 21
------------------------------------------------------------------------------

SHAREHOLDER INFORMATION 26
------------------------------------------------------------------------------
Purchases and Redemptions................................................ 26

How the Funds Calculate Net Asset Value.................................. 26

Dividends and Distributions.............................................. 26

Tax Consequences......................................................... 26

Other Classes of Shares.................................................. 26

<PAGE>

THE TRUST

Liberty Variable Investment Trust (Trust) includes seventeen separate mutual
funds (Funds), each with its own investment goals and strategies. This
Prospectus contains information about five of the Funds in the Trust. Liberty
Advisory Services Corp. (LASC) is the investment advisor to each Fund. LASC has
appointed an investment sub-advisor (Sub-Advisor) for each Fund, and all of the
Sub-Advisors are affiliates of LASC. Each Fund has the following Sub-Advisor:

FUND SUB-ADVISOR
--------------------------------------------------------------------------------
Colonial U.S. Growth & Income Fund, Colonial Management
Variable Series (U.S. Growth & Income Associates, Inc. (Colonial)
Fund) (formerly Colonial U.S. Stock Fund,
Variable Series)
Colonial Strategic Income Fund, Variable Series
(Strategic Income Fund)
Colonial High Yield Securities Fund, Variable Series
(High Yield Fund)
--------------------------------------------------------------------------------
Stein Roe Global Utilities Fund, Stein Roe & Farnham
Variable Series (Global Utilities Fund) Incorporated (Stein Roe)
--------------------------------------------------------------------------------
Newport Tiger Fund, Variable Series (Tiger Fund) Newport Fund Management, Inc.
(Newport)
--------------------------------------------------------------------------------

Other Funds may be added to or deleted from the Trust from time to time. Each
Fund offers two classes of shares - Class A and Class B shares. Each share class
has its own expense structure. Class B shares are not offered in this
prospectus.

The Trust's Funds are investment options under variable annuity contracts (VA
contracts) and variable life insurance policies (VLI policies) issued by life
insurance companies (Participating Insurance Companies). Some (but not all)
Participating Insurance Companies are affiliated with the investment advisor to
the Funds. Participating Insurance Companies invest in the Funds through
separate accounts that they set up for that purpose. Owners of VA contracts and
of VLI policies invest in sub-accounts of those separate accounts through
instructions they give to their insurance company. The principal underwriter of
the Funds is Liberty Funds Distributor, Inc. (LFD). LFD is an affiliate of LASC.

The prospectuses of the Participating Insurance Companies' separate accounts
describe which Funds are available to the purchasers of their VA contracts and
VLI policies. The Trust assumes no responsibility for those prospectuses.

<PAGE>

THE FUNDS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS
-------------------------------------------------------------------------------
The Fund seeks current income and long-term growth of capital and income.

PRIMARY INVESTMENT STRATEGIES
-------------------------------------------------------------------------------
Under normal market conditions, the Fund invests primarily in U.S. and foreign
securities of utility companies. Stein Roe diversifies the Fund's investments
among a number of developed countries and market sectors and will have exposure
to at least three countries, including the U.S. In selecting investments for the
Fund, Stein Roe looks primarily for stocks of larger utility companies with
established records.

Utility companies in which the Fund may invest include companies engaged in the
manufacture, production, generation, transmission, sale or distribution of
electricity, natural gas or other types of energy, or water or other sanitary
services. They also include companies engaged in telecommunications, including
telephone, telegraph, satellite, microwave and other communications media (but
excluding companies primarily engaged in public broadcasting, print media, cable
television or the Internet).

Additional strategies that are not primary investment strategies and the risks
associated with them are described below under "Other Investment Strategies and
Risks."

PRIMARY INVESTMENT RISKS
-------------------------------------------------------------------------------
The primary risks of investing in the Fund are described below. There are many
circumstances (including additional risks that are not described here) which
could prevent the Fund from achieving its goals. It is possible to lose money by
investing in the Fund.

Market risk is the risk that the price of a security held by the Fund will fall
due to changing market, economic or political conditions.

Utility company securities are subject to special risks. These securities are
especially affected by changes in interest rates, as well as by general
competitive and market forces in the industry. As interest rates increase, the
value of securities of utility companies tends to decrease, and vice versa. In
addition, utility companies are affected by changes in government regulation. In
particular, the profitability of utilities may in the future be adversely
affected by increased competition resulting from deregulation.

Foreign securities are subject to special risks. Foreign stock markets can be
extremely volatile. Fluctuations in currency exchange rates may impact the value
of foreign securities without a change in the intrinsic value of those
securities. The liquidity of foreign securities may be more limited than
domestic securities, which means that the Fund may at times be unable to sell
foreign securities at desirable prices. Brokerage commissions, custodial fees
and other fees are generally higher for foreign investments. In addition,
foreign governments may impose withholding taxes which would reduce the amount
of income available to distribute to shareholders. Other risks include the
following: possible delays in the settlement of transactions; less publicly
available information about companies; the impact of political, social or
diplomatic events; and possible seizure, expropriation or nationalization of the
company or its assets.

<PAGE>

THE FUNDS Stein Roe Global Utilities Fund, Variable Series

PERFORMANCE HISTORY
-------------------------------------------------------------------------------
The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year, 5 years and the life
of the Fund. The Fund's return is compared to the Standard & Poor's Utilities
Index (S&P Index), an unmanaged index that tracks the performance of domestic
utility stocks, and the Morgan Stanley Capital International World Index ND
(MSCI Index), an unmanaged index that tracks the performance of global stocks.
Unlike the Fund, indices are not investments, do not incur fees or expenses and
are not professionally managed. It is not possible to invest directly in
indices. The Fund's return is also compared to the average return of the funds
included in the Lipper Utilities Annuities Funds category average (Lipper
Average). This Lipper Average, which is calculated by Lipper, Inc., is composed
of funds with similar investment objectives to the Fund. Sales charges are not
reflected in the Lipper Average. The chart and table are intended to illustrate
some of the risks of investing in the Fund by showing the changes in the Fund's
performance. All returns include the reinvestment of dividends and
distributions. Performance results include the effect of expense reduction
arrangements, if any. As with all mutual funds, past performance does not
predict the Fund's future performance. The Fund's performance results do not
reflect the cost of insurance and separate account charges which are imposed
under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

1994 -10.27%
1995 35.15%
1996 6.53%
1997 28.75%
1998 18.33%
1999 28.63%

The Fund's year-to-date total return through September 30, 2000 was -3.22%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
--------- ------ ------- -----------
<S> <C> <C> <C> <C>

Fund (%) 7/1/93 28.63 23.06 15.04
----------------------------------------------------------------------------------------------------
MSCI Index (%) N/A 24.93 19.76 16.86(1)
----------------------------------------------------------------------------------------------------
S&P Index (%) N/A -8.88 13.66 9.11(1)
----------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 15.40 19.64 12.14(1)

</TABLE>

(1) Performance information is from June 30, 1993.

<PAGE>

COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS
--------------------------------------------------------------------------------
The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES
--------------------------------------------------------------------------------
Under normal market conditions, the Fund invests primarily in large
capitalization stocks. These are stocks with market capitalizations of greater
than $3 billion at the time of purchase. Up to 10% of the Fund's assets may be
invested in debt securities.

In selecting debt securities for the Fund, Colonial may invest in:

- debt securities that are convertible into common stock;

- corporate debt securities rated investment-grade by at least two
nationally recognized rating organizations (investment grade stocks
have a rating of BBB or higher by Standard & Poor's Ratings Services
or Baa or higher by Moody's Investors Service, Inc.); and

- debt securities issued or guaranteed by the U.S. government.

In managing the Fund, Colonial uses a value investing strategy that focuses on
buying stocks cheaply when they are undervalued or "out of favor." Colonial buys
stocks that have attractive current prices, consistent operating performance
and/or favorable future growth prospects. Colonial's strategy uses quantitative
analysis supported by fundamental business and financial analyses.

Additional strategies that are not primary investment strategies and the risks
associated with them are described below under "Other Investment Strategies and
Risks."

PRIMARY INVESTMENT RISKS
--------------------------------------------------------------------------------
The primary risks of investing in the Fund are described below. There are many
circumstances (including additional risks that are not described here) which
could prevent the Fund from achieving its goals. It is possible to lose money by
investing in the Fund.

Market risk is the risk that the price of a security held by the Fund will fall
due to changing market, economic or political conditions. Market risk includes
interest rate risk.

Because the Fund may invest in debt securities issued by private entities,
including corporate bonds and privately issued mortgage-backed and asset-backed
securities, the Fund is subject to issuer risk. Issuer risk is the possibility
that changes in the financial condition of the issuer of a security, changes in
general economic conditions, or changes in economic conditions that affect the
issuer may impact its willingness or ability to make timely payments of interest
or principal. This could result in a decrease in the price of the security and
in some cases a decrease in income.

Interest rate risk is the risk of a change in the price of a bond when interest
rates increase or decline. In general, if interest rates rise, bond prices fall;
and if interest rates fall, bond prices rise. Changes in the values of bonds
usually will not affect the amount of income the Fund receives from them but
will affect the value of the Fund's shares. Interest rate risk is generally
greater for bonds with longer maturities.

Value stocks are securities of companies that may have experienced adverse
business or industry developments or may be subject to special risks that have
caused the stocks to be out of favor. If Colonial's assessment of a company's
prospects is wrong, the price of its stock may not approach the value Colonial
has placed on it.

<PAGE>

THE FUNDS Colonial U.S. Growth & Income Fund, Variable Series

PERFORMANCE HISTORY
--------------------------------------------------------------------------------
The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year, 5 years and the life
of the Fund. The Fund's return is compared to the Standard & Poor's 500 Index
(S&P Index), an unmanaged index that tracks the performance of a selection of
widely held common stocks. Unlike the Fund, indices are not investments, do not
incur fees or expenses and are not professionally managed. It is not possible to
invest directly in indices. The Fund's return is also compared to the average
return of the funds included in the Lipper Growth & Income - Annuities Funds
category average (Lipper Average). This Lipper Average, which is calculated by
Lipper, Inc., is composed of funds with similar investment objectives to the
Fund. Sales charges are not reflected in the Lipper Average. The chart and table
are intended to illustrate some of the risks of investing in the Fund by showing
the changes in the Fund's performance. All returns include the reinvestment of
dividends and distributions. Performance results include the effect of expense
reduction arrangements, if any. If these arrangements were not in place, then
the performance results would have been lower. Any expense reduction
arrangements may be discontinued at any time. As with all mutual funds, past
performance does not predict the Fund's future performance. The Fund's
performance results do not reflect the cost of insurance and separate account
charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

1995 29.70%
1996 21.84%
1997 32.23%
1998 20.15%
1999 12.00%

The Fund's year-to-date total return through September 30, 2000 was +3.03%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
--------- ------ ------- -----------
<S> <C> <C> <C> <C>

Fund (%) 7/5/94 12.00 22.97 21.64
----------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 26.73(2)
----------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 20.42(2)
</TABLE>

(2) Performance information is from June 30, 1994.

<PAGE>

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS
--------------------------------------------------------------------------------
The Fund seeks as high a level of current income as is consistent with prudent
risk and maximizing total return.

PRIMARY INVESTMENT STRATEGIES
--------------------------------------------------------------------------------
The Fund seeks to achieve its investment goals by investing in:

- debt securities issued by the U.S. government;

- debt securities issued by foreign governments; and

- lower-rated corporate debt securities.

Colonial allocates the Fund's investments among these types of securities at any
given time based on its estimate of the expected performance and risk of each
type of investment.

The Fund pursues its investment goals by investing a portion of its assets in
lower-rated corporate debt securities. These securities have the following
ratings:

- BB through C by Standard & Poor's Ratings Services;

- Ba through D by Moody's Investors Service, Inc.;

- a comparable rating by another nationally recognized rating service; or

- the security is unrated and the advisor believes it to be comparable in
quality to securities having such ratings as noted above.

The Fund may invest in securities issued or guaranteed by foreign governments or
foreign companies, including securities issued in emerging market countries.

Additional strategies that are not primary investment strategies and the risks
associated with them are described below under "Other Investment Strategies and
Risks."

Market risk is the risk that the price of a security held by the Fund will fall
due to changing market, economic or political conditions. Market risk includes
interest rate risk.

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

Foreign securities are subject to special risks. Foreign markets can be
extremely volatile. Fluctuations in currency exchange rates may impact the value
of foreign securities without a change in the intrinsic value of those
securities. The liquidity of foreign securities may be more limited than
domestic securities, which means that the Fund may, at times, be unable to sell
foreign securities at desirable prices. Brokerage commissions, custodial fees
and other fees are generally higher for foreign investments. In addition,
foreign governments may impose withholding taxes which would reduce the amount
of income available to distribute to shareholders. Other risks include the
following: possible delays in the settlement of transactions; less publicly
available information about companies; the impact of political, social or
diplomatic events; and possible seizure, expropriation or nationalization of the
company or its assets.

Emerging markets are subject to additional risk. The risks of foreign
investments are typically increased in less developed countries, which are
sometimes referred to as emerging markets. For example, political and economic
structures in these countries may be new and developing rapidly, which may cause
instability. These countries are also more likely to experience high levels of
inflation, deflation or currency devaluations, which could hurt their economies
and securities markets.

Lower-rated debt securities involve greater risk of loss due to credit
deterioration and are less liquid, especially during periods of economic
uncertainty or change, than higher quality debt securities. Lower-rated debt
securities have the added risk that the issuer of the security may default and
not make payment of interest or prinicpal.

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY
-------------------------------------------------------------------------------
The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year, 5 years and the life
of the Fund. The Fund's return is compared to the Lehman Brothers
Government/Corporate Bond Index (Lehman Index), an unmanaged index that tracks
the performance of a selection of U.S. government agency, Treasury and
investment-grade corporate bonds. Unlike the Fund, indices are not investments,
do not incur fees or expenses and are not professionally managed. It is not
possible to invest directly in indices. The Fund's return is also compared to
the average return of the funds included in the Lipper General Bonds - Annuities
Funds category average (Lipper Average). This Lipper Average, which is
calculated by Lipper, Inc., is composed of funds with similar investment
objectives to the Fund. Sales charges are not reflected in the Lipper Average.
The chart and table are intended to illustrate some of the risks of investing in
the Fund by showing the changes in the Fund's performance. All returns include
the reinvestment of dividends and distributions. Performance results include the
effect of expense reduction arrangements, if any. If these arrangements were not
in place, then the performance results would have been lower. Any expense
reduction arrangements may be discontinued at any time. As with all mutual
funds, past performance does not predict the Fund's future performance. The
Fund's performance results do not reflect the cost of insurance and separate
account charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

1995 18.30%
1996 9.83%
1997 9.11%
1998 6.03%
1999 1.78%

The Fund's year-to-date total return through September 30, 2000 was +0.62%.

For period shown in bar chart:

Best quarter: 1st quarter 1995, +5.62%

Worst quarter: 1st quarter 1997, -1.00%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
--------- ------ ------- -----------
<S> <C> <C> <C> <C>

Fund (%) 7/5/94 1.78 8.88 8.26
--------------------------------------------------------------------------------------------------
Lehman Index (%) N/A (2.15) 7.61 7.06(3)
--------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 0.76 7.84 7.03(3)

</TABLE>

(3) Performance information is from June 30, 1994.

10
<PAGE>

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

INVESTMENT GOALS
--------------------------------------------------------------------------------
The Fund seeks current income and total return.

PRIMARY INVESTMENT STRATEGIES
--------------------------------------------------------------------------------
The Fund pursues its investment goals by investing primarily in lower-rated
corporate debt securities. These securities have the following ratings:

- BB through C by Standard & Poor's Ratings Services;

- Ba through D by Moody's Investors, Service, Inc.;

- a comparable rating by another nationally recognized rating service; or

- the security is unrated and Colonial believes it to be comparable in
quality to securities having such ratings as noted above.

Although the Fund will invest primarily in debt securities, the Fund may invest
in equity securities to seek capital appreciation. Equity securities include
common stocks, preferred stocks, warrants and debt securities convertible into
common stocks. Additionally, the Fund may invest in securities issued or
guaranteed by foreign governments or foreign companies, including securities
issued in emerging market countries.

Additional strategies that are not primary investment strategies and the risks
associated with them are described below under "Other Investment Strategies and
Risks."

Market risk is the risk that the price of a security held by the Fund will fall
due to changing market, economic or political conditions. Market risk includes
interest rate risk.

<PAGE>

THE FUNDS Colonial High Yield Securities Fund, Variable Series

Foreign securities are subject to special risks. Foreign stock markets can be
extremely volatile. Fluctuations in currency exchange rates may impact the value
of foreign securities without a change in the intrinsic value of those
securities. The liquidity of foreign securities may be more limited than
domestic securities, which means that the Fund may, at times, be unable to sell
foreign securities at desirable prices. Brokerage commissions, custodial fees
and other fees are generally higher for foreign investments. In addition,
foreign governments may impose withholding taxes which would reduce the amount
of income available to distribute to shareholders. Other risks include the
following: possible delays in the settlement of transactions; less publicly
available information about companies; the impact of political, social or
diplomatic events; and possible seizure, expropriation or nationalization of the
company or its assets.

12
<PAGE>

THE FUNDS Colonial High Yield Securities Fund, Variable Series

PERFORMANCE HISTORY
-------------------------------------------------------------------------------
The bar chart below shows the Fund's performance by illustrating the Fund's
calendar year total return. The performance table following the bar chart shows
how the Fund's average annual returns compare with those of a broad measure of
market performance for 1 year and the life of the Fund. The Fund's return is
compared to the CS First Boston Global High Yield Index (CS Index), an unmanaged
index that tracks the performance of high yield bond funds. Unlike the Fund,
indices are not investments, do not incur fees or expenses and are not
professionally managed. It is not possible to invest directly in indices. The
Fund's return is also compared to the average return of the funds included in
the Lipper High Current Yield - Annuities Funds category average (Lipper
Average). This Lipper Average, which is calculated by Lipper, Inc., is composed
of funds with similar investment objectives to the Fund. Sales charges are not
reflected in the Lipper Average. The chart and table are intended to illustrate
some of the risks of investing in the Fund by showing the changes in the Fund's
performance. All returns include the reinvestment of dividends and
distributions. Performance results include the effect of expense reduction
arrangements, if any. If these arrangements were not in place, then the
performance results would have been lower. Any expense reduction arrangements
may be discontinued at any time. As with all mutual funds, past performance does
not predict the Fund's future performance. The Fund's performance results do not
reflect the cost of insurance and separate account charges which are imposed
under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

1999 1.65%

The Fund's year-to-date total return through September 30, 2000 was -1.26%.

For period shown in bar chart:

Best quarter: 1st quarter 1999, +3.11%

Worst quarter: 3rd quarter 1999, -1.90%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999

INCEPTION LIFE OF THE
DATE 1 YEAR FUND
--------- ------ -----------

Fund (%) 5/19/98 1.65 (0.59)
--------------------------------------------------------------------------------
CS Index (%) N/A 3.28 0.06 (4)
--------------------------------------------------------------------------------
Lipper Average (%) N/A 4.04 (0.28)(4)

(4) Performance information is from April 30, 1998.

<PAGE>

NEWPORT TIGER FUND, VARIABLE SERIES

INVESTMENT GOAL
-------------------------------------------------------------------------------
The Fund seeks long-term capital appreciation.

PRIMARY INVESTMENT STRATEGIES
-------------------------------------------------------------------------------
Under normal market conditions, the Fund invests primarily in stocks of
companies located in the ten Tiger countries of Asia. The Tigers of Asia are
Hong Kong, Singapore, South Korea, Taiwan, Malaysia, Thailand, India, Indonesia,
The People's Republic of China and the Philippines. In selecting investments for
the Fund, Newport typically purchases stocks of quality growth companies.

Additional strategies that are not primary investment strategies and the risks
associated with them are described below under "Other Investment Strategies and
Risks."

PRIMARY INVESTMENT RISKS
-------------------------------------------------------------------------------
The primary risks of investing in the Fund are described below. There are many
circumstances (including additional risks that are not described here) which
could prevent the Fund from achieving its goal. It is possible to lose money by
investing in the Fund.

Market risk is the risk that the price of a security held by the Fund will fall
due to changing market, economic or political conditions.

Foreign securities are subject to special risks. Foreign stock markets can be
extremely volatile. Fluctuations in currency exchange rates may impact the value
of foreign securities without a change in the intrinsic value of those
securities. The liquidity of foreign securities may be more limited than
domestic securities, which means that the Fund may, at times, be unable to sell
foreign securities at desirable prices. Brokerage commissions, custodial fees
and other fees are generally higher for foreign investments. In addition,
foreign governments may impose withholding taxes which would reduce the amount
of income available to distribute to shareholders. Other risks include the
following: possible delays in the settlement of transactions; less publicly
available information about companies; the impact of political, social or
diplomatic events; and possible seizure, expropriation or nationalization of the
company or its assets.

Because the Fund's investments are concentrated in the ten Tiger countries of
Asia, the Fund is particularly susceptible to regional risks. Events in any one
Tiger country may impact the other countries in the Asian region as a whole. As
a result events in the region will generally have a greater effect on the Fund
than if the Fund were more geographically diversified, which may result in
greater losses and volatility.

<PAGE>

THE FUNDS Newport Tiger Fund, Variable Series

PERFORMANCE HISTORY
-------------------------------------------------------------------------------
The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year and the life of the
Fund. The Fund's return is compared to the Morgan Stanley Capital International
EAFE GDP Index (MSCI Index), a broad-based, unmanaged index that tracks the
performance of foreign stocks. Unlike the Fund, indices are not investments, do
not incur fees or expenses and are not professionally managed. It is not
possible to invest directly in indices. The Fund's return is also compared to
the average return of the funds included in the Lipper Pacific-Region-Annuities
Funds category average (Lipper Average). This Lipper Average, which is
calculated by Lipper, Inc., is composed of funds with similar investment
objectives to the Fund. Sales charges are not reflected in the Lipper Average.
The chart and table are intended to illustrate some of the risks of investing in
the Fund by showing the changes in the Fund's performance. All returns include
the reinvestment of dividends and distributions. Performance results include the
effect of expense reduction arrangements, if any. As with all mutual funds, past
performance does not predict the Fund's future performance. The Fund's
performance results do not reflect the cost of insurance and separate account
charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

1996 11.73%
1997 -31.14%
1998 - 6.43%
1999 68.01%

The Fund's year-to-date total return through September 30, 2000 was -8.40%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +37.93%

Worst quarter: 2nd quarter 1998, -28.81%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999

INCEPTION LIFE OF THE
DATE 1 YEAR FUND
--------- ------ -----------

Fund (%) 5/1/95 68.01 7.31
-------------------------------------------------------------------------------
MSCI Index (%) N/A 31.00 15.72(5)
------------------------------------------ ------------------------------------
Lipper Average (%) N/A 79.74 4.24(5)

(5) Performance information is from April 30, 1995.

<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

THE TRUSTEES
-------------------------------------------------------------------------------
The business of the Trust and the Funds is supervised by the Trust's Board of
Trustees. The Statement of Additional Information contains names of and
biographical information on the Trustees.

INVESTMENT ADVISOR: LIBERTY ADVISORY SERVICES CORP.
-------------------------------------------------------------------------------
LASC, located at 125 High Street, Boston Massachusetts 02110, is the investment
advisor to the Funds. LASC is an indirect wholly-owned subsidiary of Liberty
Financial Companies, Inc. (LFC). LASC has been an investment advisor since 1993.
As of March 31, 2000, LASC managed over $853 million in assets. LASC designates
the Trust's Sub-Advisors, evaluates and monitors Sub-Advisors' performance and
investment programs and recommends to the Board of Trustees whether
Sub-Advisors' contracts should be continued or modified and the addition or
deletion of Sub-Advisors. LASC also has the responsibility of administering the
Trust's operations, which it may delegate, at its own expense, to certain
affiliates. LASC has delegated its administrative responsibilities to Colonial
in accordance with this authority.

For the 1999 fiscal year, the Trust paid LASC management fees at the following
annual rates of the average daily net assets of each specified Fund:

Stein Roe Global Utilities Fund, Variable Series 0.65%
Colonial U.S. Growth & Income Fund, Variable Series 0.80%
Colonial Strategic Income Fund, Variable Series 0.65%
Colonial High Yield Securities Fund, Variable Series 0.60% (6)
Newport Tiger Fund, Variable Series 0.90%

(6) The High Yield Fund's advisor has voluntarily agreed to waive its
management fee and reimburse other expenses so that total expenses of the
Fund (excluding interest, taxes, 12b-1, brokerage and extraordinary
expenses) do not exceed 0.80%. As a result the actual management fee paid
to the advisor for the 1999 fiscal year was 0.12%.

INVESTMENT SUB-ADVISORS AND PORTFOLIO MANAGERS
-------------------------------------------------------------------------------
The Sub-Advisors manage the assets of the Funds under the supervision of LASC
and the Board of Trustees. Each Sub-Advisor determines which securities and
other instruments are purchased and sold for the Fund(s) it sub-advises. Each
Sub-Advisor is an indirect wholly-owned subsidiary of LFC.

COLONIAL
Colonial, an investment advisor since 1931, is the Sub-Advisor of each of the
U.S. Growth & Income Fund, Strategic Income Fund and High Yield Fund. Colonial's
principal business address is One Financial Center, Boston, Massachusetts 02111.
As of March 31, 2000, Colonial managed over $15.7 billion in assets.

LASC, out of the management fees it receives from the Trust, pays Colonial
sub-advisory fees at the following annual rates of the average daily net assets
of each specified Fund:

Colonial U.S. Growth & Income Fund, Variable Series 0.60%
Colonial Strategic Income Fund, Variable Series 0.45%
Colonial High Yield Securities Fund, Variable Series 0.40%

Colonial also provides transfer agency, pricing and record keeping services for
the Funds under separate agreements.

Harvey B. Hirschhorn, a senior vice president of Colonial, has co-managed the
U.S. Growth & Income Fund since August, 2000. Mr. Hirschhorn has been affiliated
with and has managed various other funds for Stein Roe, an affiliate of
Colonial, since 1973.

<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

Scott Schermerhorn, a senior vice president of Colonial, has co-managed the U.S.
Growth & Income Fund since August, 2000. Mr. Schermerhorn has managed various
other funds for Colonial since October, 1998. From May, 1996 to October, 1998,
Mr. Schermerhorn was the head of the value team at Federated Investors 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.

Carl C. Ericson has co-managed the Strategic Income Fund since its inception in
July, 1994. He also has co-managed the High Yield Fund since January, 1999. Mr.
Ericson, a senior vice president of Colonial and director of Colonial's Taxable
Fixed Income Group, has managed various other Colonial taxable income funds
since 1985.

Laura A. Ostrander, a senior vice president of Colonial, has co-managed the
Strategic Income Fund since September, 2000 and has co-managed various other
Colonial funds since December, 1996. Prior to joining Colonial, Ms. Ostrander
was a portfolio manager with American Express Financial Advisers from July, 1994
to November, 1996.

Scott B. Richards, a senior vice president of Colonial, has co-managed the High
Yield Fund since May, 1999. Prior to joining Colonial he was employed with State
Street Research & Management Company as a vice president and a portfolio manager
from January, 1994 to May, 1999.

Colonial will use Newport's trading facilities when buying or selling foreign
securities for the Funds' portfolios. Newport executes all trades under its own
procedures.

Colonial's investment advisory business is managed together with the mutual
funds and institutional investment advisory businesses of its affiliate, Stein
Roe. Colonial is part of a larger business unit that includes several separate
legal entities known as Liberty Funds Group LLC (LFG). The LFG business unit and
Stein Roe are managed by a single management team. Stein Roe, Colonial and the
other LFG entities also share personnel, facilities and systems that may be used
in providing administrative or operational services to the Fund. Stein Roe and
Colonial are registered investment advisors. Colonial, the other entities that
make up LFG and Stein Roe are subsidiaries of Liberty Financial Companies, Inc.

STEIN ROE
Stein Roe, an investment advisor since 1932, is the Sub-Advisor of the Global
Utilities Fund. Stein Roe's principal address is One South Wacker Drive,
Chicago, Illinois 60606. As of March 31, 2000, Stein Roe managed over $20.5
billion in assets.

LASC, out of the management fees it receives from the Trust, pays Stein Roe a
sub-advisory fee at the annual rate of 0.45% of the average daily net assets of
the Global Utilities Fund.

Ophelia Barsketis, a senior vice president of Stein Roe, has co-managed the
Global Utilities Fund since November, 1997. Ms. Barsketis joined Stein Roe in
1983 and progressed through a variety of equity analyst positions before
assuming her current responsibilities, which include managing other Stein Roe
and Colonial funds.

Deborah A. Jansen, a senior vice president and senior research analyst for
global and domestic equities and global economic forecasting for Stein Roe, has
co-managed the Global Utilities Fund since November, 1997. Ms. Jansen joined
Stein Roe in 1987 and served as an associate economist and senior economist
before assuming her current responsibilities, which include managing other Stein
Roe and Colonial Funds. Ms. Jansen left Stein Roe in January, 1995 and returned
to her position as a vice president in March, 1996. From June 5, 1995 through
June 30, 1995, Ms. Jansen was a senior equity research analyst for BancOne
Investment Advisers Corporation.

Stein Roe will use Newport's trading facilities when buying or selling foreign
securities for the Fund's portfolio. Newport executes all trades under its own
procedures.

17
<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

NEWPORT
Newport, an investment advisor since 1987, is the Sub-Advisor of the Tiger Fund.
Newport's principal address is 580 California Street, Suite 1960, San Francisco,
California 94104. As of March 31, 2000, Newport managed over $1.4 billion in
assets.

LASC, out of the management fees it receives from the Trust, pays Newport a
sub-advisory fee at the annual rate of 0.70% of the average daily net assets of
the Tiger Fund.

Thomas R. Tuttle and Lynda Couch, president and a managing director,
respectively, of Newport, co-manage the Fund. Mr. Tuttle has co-managed other
Newport Funds since November, 1995. Mr. Tuttle has been an officer of Newport
since 1984. Ms. Couch has managed other Newport Funds since April, 1995. Ms.
Couch has been an officer of Newport since 1994.

AFFILIATED BROKER/DEALER
Stein Roe and Colonial can use the services of AlphaTrade Inc., an affiliated
broker-dealer, when buying or selling equity securities for a fund's portfolio,
pursuant to procedures adopted by the Board of Trustees.

MIXED AND SHARED FUNDING
-------------------------------------------------------------------------------
The Trust serves as the funding medium for VA contracts and VLI policies of
Participating Insurance Companies, including those of Keyport, Independence Life
& Annuity Company and Keyport Benefit Life Insurance Company, each of which is a
wholly owned subsidiary of Keyport, and Liberty Life Assurance Company of
Boston, a 90%-owned subsidiary of Liberty Mutual. This is referred to as "mixed
and shared funding." The interests of owners of VA contracts and VLI policies
could diverge based on differences in state regulatory requirements, changes in
the tax laws or other unanticipated developments. The Trust does not foresee any
such differences or disadvantages at this time. However, the Board of Trustees
monitors for such developments to identify any material irreconcilable conflicts
and to determine what action, if any, should be taken in response to such
conflicts. If such a conflict were to occur, one or more separate accounts of
Participating Insurance Companies might be required to withdraw its investments
in one or more Funds or shares of another Fund may be substituted. This might
force a Fund to sell securities at disadvantageous prices.

18
<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

The primary investment strategies of each Fund and the associated risks are
described above in each Fund's individual description. This section describes
other investments a Fund may make and the risks associated with them. In seeking
to achieve its goals, each Fund may invest in various types of securities and
engage in various investment techniques which are not the principal focus of the
Fund and therefore are not described in this prospectus. These types of
securities and investment practices are identified and discussed in the Funds'
Statement of Additional Information, which you may obtain free of charge (see
back cover). Approval by the Funds' shareholders is not required to modify or
change any of the Funds' investment goals or investment strategies.

U.S. GOVERNMENT SECURITIES
-------------------------------------------------------------------------------
(Strategic Income Fund) The Fund will invest in U.S. government securities,
including U.S. Treasuries and securities of various U.S. government agencies.
Agency securities include mortgage-backed securities, which represent interests
in pools of mortgages. The Fund has flexibility to vary its allocation among
different types of U.S. government securities based upon the Sub-Advisor's
judgment of which types of securities will outperform others. In selecting
investments for the Fund, the Sub-Advisor considers a security's expected
income, together with its potential to rise or fall in price.

STRUCTURE RISK
-------------------------------------------------------------------------------
(Strategic Income Fund, U.S. Growth & Income Fund, High Yield Fund) Structure
risk is the risk that an event will occur (such as a security being prepaid or
called) that alters the security's cash flows. Prepayment risk is a particular
type of structure risk that is present in a Fund because of its investments in
mortgage-backed securities and asset-backed securities. Prepayment risk is the
possibility that asset-backed securities may be prepaid if the underlying debt
securities are prepaid. Prepayment risk for mortgage-backed securities is the
possibility that, as interest rates fall, homeowners are more likely to
refinance their home mortgages. When mortgages are refinanced, the principal on
mortgage-backed securities is paid earlier than expected. In an environment of
declining interest rates, asset-backed securities and mortgage-backed securities
may offer less potential for gain than other debt securities. During periods of
rising interest rates, these securities have a high risk of declining in price
because the declining prepayment rates effectively increase the maturity of the
security. In addition, the potential impact of prepayment on the price of a
security may be difficult to predict and result in greater volatility.

ZERO COUPON BONDS
-------------------------------------------------------------------------------
(Global Utilities Fund, Strategic Income Fund, High Yield Fund) Zero coupon
bonds do not pay interest in cash on a current basis, but instead accrue
interest over the life of the bond. As a result, these securities are issued at
a deep discount. The value of these securities may fluctuate more than similar
securities that pay interest periodically. Although these securities pay no
interest to holders prior to maturity, interest on these securities is reported
as income to the Fund and distributed to its shareholders..

CONVERTIBLE SECURITIES
-------------------------------------------------------------------------------
(U.S. Growth & Income Fund, High Yield Fund) Convertible securities are
preferred stocks or bonds that pay a fixed dividend or interest payment and are
convertible into common stocks at a specified price or conversion ratio. The
risk of investing in convertible securities is the value of the underlying
securities will fluctuate.

DERIVATIVE STRATEGIES
-------------------------------------------------------------------------------
Each Fund may enter into a number of hedging strategies, including those that
employ futures and options, to gain or reduce exposure to particular securities
or markets. These strategies, commonly referred to as derivatives, involve the
use of financial instruments whose value depends on, or are derived from, the
value of an underlying security, index or currency. A Fund may use these
strategies to adjust the Fund's sensitivity to changes in interest rates or for
other hedging purposes (e.g., attempting to offset a potential loss in one
position by establishing an interest in an opposite position). Derivative
strategies involve the risk that they may exaggerate a loss, potentially losing
more money than the actual cost of the derivative, or limit a potential gain.
Also, with some derivative strategies there is the risk that the other party to
the transaction may fail to honor its contract terms, causing a loss to a Fund.

19
<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

TEMPORARY DEFENSIVE STRATEGIES
-------------------------------------------------------------------------------
Each Fund's Sub-Advisor may determine that adverse market conditions make it
desirable to temporarily suspend the Fund's normal investment activities. During
such times, a Fund may, but is not required to, invest in cash or high-quality,
short-term debt securities, without limit.

(High Yield Fund) If necessary, the Fund has the ability to invest 100% of its
assets in higher-rated securities, if, in Colonial's opinion, economic
conditions create a situation where yield spreads narrow between lower- and
higher-rated securities.

Taking a temporary defensive position may prevent a Fund from achieving its
investment goals.

<PAGE>

FINANCIAL HIGHLIGHTS

The financial highlights tables are intended to help you understand the Funds'
financial performance. Information is shown for the Funds' last five fiscal
years, (or shorter period if a Fund commenced operations less than five years
ago) which run from January 1 to December 31. Certain information reflects
financial results for a single Fund share. This information is included in the
Funds' financial statements which have been audited by PricewaterhouseCoopers
LLP, independent accountants, whose reports, along with the Funds' financial
statements, is included in the Funds' annual report. The Funds' total returns
presented below do not reflect the cost of insurance and other insurance company
separate account charges which vary with the VA contracts and VLI policies. You
can request a free annual report by writing Keyport Financial Services Corp.
(see back cover for address) or by calling or writing the Participating
Insurance Company which issued your VA contract or VLI policy.

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of year ($) 13.76 11.92 10.70 10.50 8.11
-------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.28 0.24 0.46 0.46 0.46
-------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses)
on investments 3.63 1.93 2.62 0.23 2.39
-------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.91 2.17 3.08 0.69 2.85
-------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.23) (0.21) (0.48) (0.49) (0.46)
-------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.01) --- --- ---
-------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on investments (0.29) (0.11) (1.38) --- ---
-------------------------------------------------------------------------------------------------------------------------
Total distributions (0.52) (0.33) (1.86) (0.49) (0.46)
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 17.15 13.76 11.92 10.70 10.50
-------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:

Total investment return (%)(b) 28.63 18.33 28.75 6.53 35.15
-------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 110,150 71,186 54,603 47,907 51,597
-------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 0.77 0.82 0.83 0.81 0.83
-------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to 1.91 1.90 3.96 4.36 4.98
average net assets (%)(c)
-------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 52 53 89 14 18

</TABLE>

(a) Per share data was calculated using average shares outstanding during the
period.

(b) Total return at net asset value assuming all distributions reinvested.

<PAGE>

COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES

YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of year ($) 18.79 16.29 14.22 12.36 10.27
------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.14 0.16 0.20 0.19 0.21
------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on investments 2.07 3.12 4.37 2.52 2.84
------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.21 3.28 4.57 2.71 3.05
------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.11) (0.12) (0.18) (0.17) (0.16)
------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- --- (0.01) --- ---
------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on (1.04) (0.64) (2.30) (0.68) (0.80)
investments
------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains --- (0.02) (0.01) --- ---
------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.15) (0.78) (2.50) (0.85) (0.96)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 19.85 18.79 16.29 14.22 12.36
------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:

Total investment return (%) (b) 12.00 20.15 32.23 21.84 29.70(c)
------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:

Net assets, end of period (000) ($) 212,355 146,239 96,715 60,855 43,017
------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d) 0.88 0.90 0.94 0.95 1.00(e)
------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to 0.69 0.88 1.19 1.39 1.72(c)
average net assets (%) (d)
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 101 64 63 77 115

</TABLE>

(a) Per share data was calculated using average shares outstanding during the
period.

(b) Total return at net asset value assuming all distributions reinvested.

(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact.

(e) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, this ratio would have been 1.07%.

22
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES
<TABLE>
<CAPTION>

YEARS ENDED DECEMBER 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of year ($) 11.08 11.15 11.04 10.99 9.79
----------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.95 0.91 0.90 0.92 0.55
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) (0.75) (0.24) 0.11 0.16 1.24
on investments and foreign currency transactions
----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.20 0.67 1.01 1.08 1.79
----------------------------------------------------------------------------------------------------------------------------------
Less distributions:

Dividends from net investment income (0.84) (0.72) (0.79) (0.96) (0.56)
----------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.02) (0.05) --- ---
----------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains --- --- (0.05) (0.07) (0.03)
----------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains --- --- (0.01) --- ---
----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.84) (0.74) (0.90) (1.03) (0.59)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.44 11.08 11.15 11.04 10.99
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:

Total investment return (%) (b) 1.78 6.03 9.11(c) 9.83(c) 18.30(c)
----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 170,702 118,985 73,175 53,393 48,334
----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (e) 0.75 0.78 0.80(d) 0.80(d) 0.84(d)
----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to 8.57 7.92 7.86(c) 8.13(c) 8.08(c)
average net assets (%) (e)
----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 35 50 94 114 281

</TABLE>

(a) Per share data was calculated using average shares outstanding during the
period.

(b) Total return at net asset value assuming all distributions reinvested.

(d) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, these ratios would have been 0.82%, 0.86%
and 0.94%, respectively.

(e) The benefits derived from custody credits and directed brokerage
arrangements had no impact.

23
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

YEAR ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1999 1998***
---------------------------
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of year ($) 9.31 10.00
--------------------------------------------------------------------------------
Net investment income (a) 0.88 0.48
--------------------------------------------------------------------------------
Net realized and unrealized losses (0.72) (0.74)
--------------------------------------------------------------------------------
Total from investment operations 0.16 (0.26)
--------------------------------------------------------------------------------
Less distributions:

Dividends from net investment income (0.62) (0.43)
--------------------------------------------------------------------------------
In excess of net investment income --- (0.00)
--------------------------------------------------------------------------------
Total distributions (0.62) (0.43)
--------------------------------------------------------------------------------
Net asset value, end of year ($) 8.85 9.31
--------------------------------------------------------------------------------
TOTAL RETURN:

Total investment return (%) (b)(c) 1.65 (2.57)**
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 15,358 5,915
--------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 0.80 0.80*
--------------------------------------------------------------------------------
Ratio of net investment income to average
net assets (%) (c)(d) 9.36 7.93*
--------------------------------------------------------------------------------
Portfolio turnover ratio (%) 16 23**

* Annualized.

** Not Annualized.

*** For the period from the commencement of operations May 19, 1998 to
December 31, 1998.

(a) Per share data was calculated using average shares outstanding during the
period.

(b) Total return at net asset value assuming all distributions reinvested.

(d) The benefits derived from custody credits and directed brokerage
arrangements had no impact.

(e) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, these ratios would have been 1.28% and
1.84% (annualized), respectively.

24
<PAGE>

FINANCIAL HIGHLIGHTS

NEWPORT TIGER FUND, VARIABLE SERIES

YEARS ENDED DECEMBER 31, PERIOD ENDED
1999 1998 1997 1996 1995***
<S> <C> <C> <C> <C> <C>

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of year ($) 1.57 1.71 2.52 2.28 2.00
------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.03 0.03 0.03 0.03 0.01
------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) on investments 1.04 (0.14) (0.81) 0.24 0.29
------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.07 (0.11) (0.78) 0.27 0.30
------------------------------------------------------------------------------------------------------------------------------
Less distributions:

Distributions from net investment income (0.02) (0.03) (0.02) (0.02) (0.01)
------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- --- (0.01) --- (0.01)

Total distributions (0.02) (0.03) (0.03) (0.03) (0.02)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 2.62 1.57 1.71 2.52 2.28
------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:

Total investment return (%)(b) 68.01 (6.43) (31.14) 11.73 15.00**
------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 46,125 23,655 24,934 34,642 18,977
------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 1.21 1.30 1.25 1.27 1.75*
------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%)(c) 1.65 2.16 1.14 1.20 0.89*
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 12 16 27 7 12**

</TABLE>

* Annualized.

** Not Annualized.

*** For the period from the commencement of operations May 1, 1995 to
December 31, 1995.

(a) Per share data was calculated using average shares outstanding during the
period.

(b) Total return at net asset value assuming all distributions reinvested.

<PAGE>

SHAREHOLDER INFORMATION

PURCHASES AND REDEMPTIONS The Participating Insurance Companies place daily
orders to purchase and redeem shares of the Funds. These orders generally
reflect the net effect of instructions they receive from holders of their VA
contracts and VLI policies and certain other terms of those contracts and
policies. The Trust issues and redeems shares at net asset value (NAV) without
imposing any selling commissions, sales charge or redemption charge. Shares
generally are sold and redeemed at their NAV next determined after receipt of
purchase or redemption requests from Participating Insurance Companies. The
right of redemption may be suspended or payment postponed whenever permitted by
applicable law and regulations.

HOW THE FUNDS CALCULATE NET ASSET VALUE Each share price is its NAV next
determined. NAV is the difference between the value of a fund's assets and
liabilities divided by the number of shares outstanding. The NAV is determined
at the close of the New York Stock Exchange (NYSE), usually 4:00 p.m. Eastern
time, on each business day that the NYSE is open (typically Monday through
Friday).

To calculate NAV on a given day, we value each stock listed or traded on a stock
exchange at its latest sale price on that day. If there are no sales on that
day, we value the security at the most recent quoted bid price. We value each
over-the-counter security or National Association of Securities Dealers
Automated Quotation (Nasdaq) security as of the last sales price of that day. We
value other over-the-counter securities that have reliable quotes at the latest
quoted bid price.

We value long-term debt obligations and securities convertible into common stock
at fair value. Pricing services provide the Funds with the value of the
securities. When the price of a security is not available, including days when
we determine that the sale or bid price of the security does not reflect that
security's market value, we will value the security at a fair value determined
in good faith under procedures established by the Board of Trustees.

We value a security at fair value when events have occurred after the last
available market price and before the close of the NYSE that materially affect
the security's price. In the case of foreign securities, this could include
events occurring after the close of the foreign market and before the close of
the NYSE.

A Fund's foreign securities may trade on days when the NYSE is closed for
trading, and therefore the NAV of a Fund's shares may change on days when
Participating Insurance Companies may not purchase or redeem shares.

DIVIDENDS AND DISTRIBUTIONS Each Fund intends to declare and distribute, as
dividends or capital gain distributions, at least annually, substantially all of
its net investment income and net profits realized from the sale of portfolio
securities, if any, to its shareholders (Participating Insurance Companies'
separate accounts). The net investment income of each Fund consists of all
dividends or interest received by such Fund, less estimated expenses (including
investment advisory and administrative fees). Income dividends will be declared
and distributed annually. All net short-term and long-term capital gains of each
Fund realized during the fiscal year are declared and distributed periodically,
no less frequently than annually. All dividends and distributions are reinvested
in additional shares of the Fund at NAV, as of the record date for the
distributions.

TAX CONSEQUENCES Each Fund is treated as a separate entity for federal income
tax purposes and has elected or intends to elect to be treated, and intends to
qualify each year as a "regulated investment company" under Subchapter M of the
Internal Revenue Code (the Code). Each Fund must satisfy certain requirements
relating to the sources of its income, diversification of its assets and
distribution of its income to shareholders to qualify as a regulated investment
company. As a regulated investment company, a Fund will not be subject to
federal income tax on any net investment income and net realized capital gains
that are distributed to its shareholders as required under the Code.

In addition, each Fund follows certain portfolio diversification requirements
imposed by the Code on separate accounts of insurance companies relating to the
tax-deferred status of VA contracts and VLI policies. More specific information
on these diversification requirements is contained in the prospectus that
describes a particular VA contract or VLI policy.

OTHER CLASS OF SHARES The Funds also offer an additional class of shares, Class
B shares, which are not available in this prospectus. Your particular VA
contract or VLI policy may not offer these shares.

<PAGE>

FOR MORE INFORMATION
-------------------------------------------------------------------------------
You can get more information about the Funds' investments in the Funds'
semi-annual and annual reports to shareholders. The annual report contains a
discussion of the market conditions and investment strategies that significantly
affected the Funds' performance over their last fiscal year.

You may wish to read the Statement of Additional Information for more
information on the Funds and the securities in which they invest. The Statement
of Additional Information is incorporated into this prospectus by reference,
which means that it is considered to be part of this prospectus.

You can get free copies of reports and the Statement of Additional Information,
request other information and discuss your questions about the Funds by writing
or calling:

Keyport Financial Services Corp.
125 High Street
Boston, MA 02111
1-800-437-4466

or by calling or writing the Participating Insurance Company which issued your
VA contract or VLI policy.

Text-only versions of all Fund documents can be viewed online or downloaded from
the Edgar database on the Securities and Exchange Commission internet site at
www.sec.gov.

You can review and copy information about the Funds by visiting the following
location, and you can obtain copies upon payment of a duplicating fee by
electronic request at the e-mail address [email protected] or by writing the:

Public Reference Room
Securities and Exchange Commission
Washington, DC 20549-0102

Information on the operation of the Public Reference Room may be obtained by
calling 1-202-942-8090.

INVESTMENT COMPANY ACT FILE NUMBER:
Liberty Variable Investment Trust : 811-07556

ANN-36/201C