LIBERTY VARIABLE INVESTMENT TRUST, N-30D, 2000-10-26

LIBERTY VARIABLE INVESTMENT TRUST
N-30D, 2000-10-26

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<PAGE> 1

Liberty Variable Investment Trust

Colonial Global Equity Fund, Variable Series
Colonial Growth and Income Fund, Variable Series
Colonial High Yield Securities Fund, Variable Series
Colonial International Fund for Growth, Variable Series
Colonial International Horizons Fund, Variable Series
Colonial Select Value Fund, Variable Series
Colonial Small Cap Value Fund, Variable Series
Colonial Strategic Income Fund, Variable Series
Colonial U.S. Growth & Income Fund, Variable Series
Crabbe Huson Real Estate Investment Fund, Variable Series
Liberty All Star Equity Fund, Variable Series
Liberty Newport Japan Opportunities Fund, Variable Series
Liberty S&P 500 Index Fund Variable Series
Newport Tiger Fund, Variable Series
Rydex Financial Services Fund, Variable Series
Rydex Health Care Fund, Variable Series
Stein Roe Global Utilities Fund, Variable Series

Stein Roe Variable Investment Trust

Stein Roe Balanced Fund, Variable Series
Stein Roe Growth Stock Fund, Variable Series
Stein Roe Mortgage Securities Fund, Variable Series
Stein Roe Small Company Growth, Variable Series
Stein Roe Money Market Fund, Variable Series

Semiannual Report
June 30, 2000
<PAGE> 2

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TABLE OF CONTENTS
Liberty Variable Investment Trust
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
PORTFOLIO MANAGERS' DISCUSSIONS:
Colonial Global Equity Fund, Variable Series.............. 1
Colonial Growth and Income Fund, Variable Series.......... 11
Colonial High Yield Securities Fund, Variable Series...... 20
Colonial International Fund for Growth, Variable Series... 31
Colonial International Horizons Fund, Variable Series..... 42
Colonial Select Value Fund, Variable Series............... 53
Colonial Small Cap Value Fund, Variable Series............ 63
Colonial Strategic Income Fund, Variable Series........... 74
Colonial U.S. Growth and Income Fund, Variable Series..... 90
Crabbe Huson Real Estate Investment Fund, Variable
Series................................................. 99
Liberty All-Star Equity Fund, Variable Series............. 106
Liberty Newport Japan Opportunities Fund, Variable
Series................................................. 115
Liberty S&P 500 Index Fund, Variable Series............... 124
Newport Tiger Fund, Variable Series....................... 136
Rydex Financial Services Fund, Variable Series............ 145
Rydex Health Care Fund, Variable Series................... 152
Stein Roe Global Utilities Fund, Variable Series.......... 159
FINANCIAL STATEMENTS:
Colonial Global Equity Fund, Variable Series.............. 2
Colonial Growth and Income Fund, Variable Series.......... 12
Colonial High Yield Securities Fund, Variable Series...... 21
Colonial International Fund for Growth, Variable Series... 32
Colonial International Horizons Fund, Variable Series..... 43
Colonial Select Value Fund, Variable Series............... 54
Colonial Small Cap Value Fund, Variable Series............ 64
Colonial Strategic Income Fund, Variable Series........... 76
Colonial U.S. Growth and Income Fund, Variable Series..... 91
Crabbe Huson Real Estate Investment Fund, Variable
Series................................................. 100
Liberty All-Star Equity Fund, Variable Series............. 107
Liberty Newport Japan Opportunities Fund, Variable
Series................................................. 116
Liberty S&P 500 Fund, Variable Series..................... 125
Newport Tiger Fund, Variable Series....................... 137
Rydex Financial Services Fund, Variable Series............ 146
Rydex Health Care Fund, Variable Series................... 153
Stein Roe Global Utilities Fund, Variable Series.......... 160
</TABLE>
<PAGE> 3

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TABLE OF CONTENTS
Stein Roe Variable Investment Trust
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
PORTFOLIO MANAGERS' DISCUSSIONS:
Stein Roe Balanced Fund, Variable Series.................. 167
Stein Roe Growth Stock Fund, Variable Series.............. 179
Stein Roe Mortgage Securities Fund, Variable Series....... 186
Stein Roe Small Company Growth Fund, Variable Series...... 196
Stein Roe Money Market Fund, Variable Series.............. 206
FINANCIAL STATEMENTS:
Stein Roe Balanced Fund, Variable Series.................. 168
Stein Roe Growth Stock Fund, Variable Series.............. 180
Stein Roe Mortgage Securities Fund, Variable Series....... 188
Stein Roe Small Company Growth Fund, Variable Series...... 197
Stein Roe Money Market Fund, Variable Series.............. 207
</TABLE>

Must be preceded or accompanied by a prospectus.
Liberty Funds Distributor, Inc. 8/00
<PAGE> 4

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PRESIDENT'S LETTER
Liberty Variable Investment Trust
Stein Roe Variable Investment Trust
--------------------------------------------------------------------------------

Dear Contract Owner:

In the following pages, you will find the June 30, 2000 Semiannual Report for
Liberty Variable Investment Trust and Stein Roe Variable Investment Trust.
Included are discussions with portfolio managers regarding fund performance,
strategy during the six-month period, and outlooks for the markets in which the
funds invest.

A PERIOD OF MARKET VOLATILITY

The previous six months saw volatility in many major market sectors, including
the ever-active technology and telecommunications industries. The strong growth
evidenced in 1999 was followed by a sharp decline in the last few weeks of the
period, which prompted investors to seek more stable, less volatile market
sectors. Interest rate increases by the Federal Reserve Board (the Fed), in an
effort to slow economic growth and preempt resulting inflation, led to higher
volatility in debt securities. In April, the U.S. Treasury announced a buy back
program for previously-issued long-term debt using part of the budget surplus,
thereby reducing the supply of outstanding Treasury debt. In general, however,
the debt supply remained plentiful when government agencies, corporations, and
tax-exempt issuers are included.

THE STOCK MARKET

During most of the six-month period, stock markets showed positive performance
globally. Both domestic and international markets posted gains across the board,
with the technology and telecommunications industries the undisputed leaders.
However, in March 2000 rising interest rates, market corrections and individual
company concerns caused a sharp decline in most major markets worldwide.

THE BOND MARKET

As always, the most influential factor in the bond market involved interest
rates. For the fixed-income market, the six-month period brought first a rise in
the yield of the benchmark 30-year Treasury, then a decline. The movements in
the bond market were fueled by fears of inflation resulting from rapid economic
growth and by rising interest rates. As bond yields increased in the face of
rising interest rates, bond prices generally declined.

A LIFELONG COMMITMENT

As you know, your annuity investment seeks to bring you long-term return and
help provide you with financial security in the future. Although it is important
to keep abreast of the economic climate and how it affects your investments, it
is also important to remember that current economic trends and events are part
of the long-term investment picture.

Sincerely,

/s/ Stephen E. Gibson

Stephen E. Gibson
President
August 11, 2000

Because market and economic conditions change frequently, there can be no
assurance that the trends described here will continue.
<PAGE> 5

--------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

DEAR CONTRACT OWNER:

Colonial Global Equity Fund, Variable Series, seeks long-term growth by
investing primarily in global equity securities.

FUND PERFORMANCE AS OF JUNE 30, 2000

<TABLE>
<CAPTION>
CLASS A(1) B
----- ------ ------
<S> <C> <C>
Inception Date.................... 6/1/00 6/1/99
Six-month total return............ (2.94)% (2.94)%
Net asset value per share
6/30/00......................... $10.88 $10.88
Net asset value per share
12/31/99........................ -- $11.21
</TABLE>

PORTFOLIO MANAGERS' DISCUSSION

Ophelia Barsketis and Deborah Jansen are co-managers of Colonial Global Equity
Fund. Ophelia Barsketis is a Managing Director and Deborah Jansen is a Senior
Vice President of Newport Pacific Management. Ms. Barsketis and Ms. Jansen
became portfolio managers of the Fund in March, 2000.

WHAT WAS THE INVESTMENT ENVIRONMENT LIKE FOR THE FUND?

As the global market breathed a collective sigh of relief over a rather
uneventful Y2K, focus shifted quickly to slowing in the U.S. economy. The strong
market rate gains of 1999 turned around completely in the first quarter of 2000.
Rising interest rates in the U.S. echoed unfavorably in the markets of Asia and
Latin America and, to a lesser degree, Europe. Throughout the period, investors
exercised caution in a global market where volatility remained the watchword.

WHAT WAS THE FUND'S STRATEGY DURING THE PERIOD?

As new managers for the Fund, we brought a fresh approach to the Fund's
investment strategy. Since assuming management of the Portfolio in March, we
have reduced the number of holdings in the Fund, selling off smaller, illiquid
holdings and repositioning the Portfolio in larger, well-managed companies that
operate globally. We seek to own companies with strong position and quality in
markets and industries where we foresee superior growth. We believe that holding
fewer names allows us to focus on each holding's operations, management, and
financial position, as well as on global industry trends and other factors that
can influence the value of a particular holding.

We seek to invest in industries and companies that are expanding operations
around the world such as telecommunications, financial services,
pharmaceuticals, energy and technology. We believe that maintaining diversity
among high-growth industries is more important to the Fund's return potential
than positioning within individual countries. Therefore, we focus less on owning
companies that are captive to the rise and fall of their economies and more on
companies that are driven by the strength of multiple countries such as Nokia,
the telecommunications equipment company based in Finland (2.1% of net assets).

WHAT IS YOUR OUTLOOK?

Now more than ever, the global market is sensitive to the rise and fall of
individual economies. The ripple effects of economic events in individual
countries are felt worldwide, and it is no longer possible to focus exclusively
on one market and ignore others. With the global market continuing to be
volatile, our focus remains on investing for the long term. The U.S. market
continues to show signs of slowing, but it is still uncertain as to whether or
not it will slow enough to relieve concerns about inflation and result in a
stabilization of interest rates. We believe, however, that equity investing will
be rewarded in the long term despite less than ideal prospects for the next six
months.

International investing offers significant long-term growth potential, but also
involves certain risks. The Fund may be affected by political, business and
economic conditions, as well as by currency fluctuations.

Performance numbers reflect all Fund expenses, but do not include any insurance
charges imposed by your insurance company's separate accounts. If performance
included the effect of these additional charges, it would be lower.

(1 )Class A share (newer class shares) performance information includes returns
of the Fund's Class B shares (the oldest existing fund class) for periods
prior to the inception of the newer class shares. These Class B share
returns were not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class B shares and the newer class shares.

1
<PAGE> 6

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INVESTMENT PORTFOLIO (UNAUDITED)
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable Series
/ June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
COMMON STOCKS--82.5%
FINANCE, INSURANCE & REAL ESTATE--12.8%
DEPOSITORY INSTITUTIONS--3.6%
BankAmerica Corp....... 1,600 $ 68,800
Banque Nationale de
Paris (a)............ Fr 577 55,530
Banque Nationale de
Paris (a)............ Fr 169 871
Chase Manhattan
Corp................. 1,550 71,397
Grupo Financiero
Banamex Accival, SA
(a).................. Mx 16,100 67,803
HSBC Holdings PLC
(b).................. UK 3,000 34,389
Lloyds TSB Group PLC... UK 4,200 40,872
UBS AG (a)............. Sz 200 29,282
----------
368,944
----------
INSURANCE AGENTS & BROKERS--2.4%
Marsh & McLennan
Companies, Inc. ..... 2,300 240,206
----------
INSURANCE CARRIERS--5.5%
AXA.................... Fr 460 72,465
American International
Group, Inc........... 1,000 117,500
Citigroup, Inc......... 4,600 277,150
International
Nederlanden Group.... Ne 1,300 87,875
----------
554,990
----------
NONDEPOSITORY CREDIT INSTITUTIONS--0.8%
Promise Co., Ltd....... Ja 1,000 79,041
----------
REAL ESTATE--0.5%
Cheung Kong (Holdings)
Ltd.................. HK 5,000 55,320
----------
MANUFACTURING--33.3%
CHEMICALS & ALLIED PRODUCTS--7.0%
Glaxo Holdings PLC..... UK 2,320 67,727
Kao Corp............... Ja 4,000 122,241
Merck & Co., Inc....... 1,400 107,275
Novartis............... Sz 25 39,574
Pfizer, Inc. (a)....... 3,850 184,800
Pharmacia Corp......... 2,290 118,364
Takeda Chemical
Industries Ltd....... Ja 1,000 65,648
----------
705,629
----------
COMMUNICATIONS EQUIPMENT--6.3%
Lucent Technologies,
Inc.................. 1,700 100,725
Philips Electronics
(a).................. Ne 5,200 245,256
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
Sony Corp.............. Ja 1,880 $ 175,552
Telefon LM Ericsson.... 5,800 116,000
----------
637,533
----------
ELECTRICAL INDUSTRIAL EQUIPMENT--1.4%
General Electric Co.... 2,600 137,800
----------
ELECTRONIC COMPONENTS--6.1%
Alcatel (a)............ Fr 1,200 78,709
Intel Corp............. 1,300 173,794
Kyocera Corp........... Ja 500 84,842
Murata Manufacturing
Co., Ltd............. Ja 1,000 143,558
Texas Instruments,
Inc.................. 2,000 137,375
----------
618,278
----------
MACHINERY & COMPUTER EQUIPMENT--9.7%
Canon, Inc............. Ja 3,000 149,406
Cisco Systems, Inc.
(a).................. 4,350 276,497
EMC Corp. (a).......... 3,900 300,056
Equant NV (a).......... Ne 1,000 40,634
Hewlett-Packard Co. ... 800 99,900
International Business
Machines Corp. ...... 1,000 109,563
----------
976,056
----------
MEASURING & ANALYZING INSTRUMENTS--0.1%
Agilent Technologies,
Inc. (a)............. 152 11,210
----------
PAPER PRODUCTS--0.5%
KPN NV (a)............. Ne 1,200 53,676
----------
PETROLEUM REFINING--1.9%
BP Amoco PLC, ADR...... 1,000 56,563
Compagnie Francaise de
Petroleum, Total B... Fr 250 38,333
Royal Dutch Petroleum
Co................... Ne 500 31,077
Texaco, Inc. .......... 1,200 63,900
----------
189,873
----------
STONE, CLAY, GLASS & CONCRETE--0.3%
Cemex SA............... Mx 7,500 35,209
----------
MINING & ENERGY--4.4%
CRUDE PETROLEUM & NATURAL GAS--0.5%
Conoco, Inc. Class B... 1,982 48,683
----------
OIL & GAS EXTRACTION--1.2%
PetroChina Co., Ltd.
Class H (a).......... HK 606,000 125,933
----------
OIL & GAS FIELD SERVICES--2.7%
Enron Corp. ........... 3,100 199,950
Schlumberger Ltd. ..... 1,000 74,625
----------
274,575
----------
</TABLE>

See Notes to Investment Portfolio.
2
<PAGE> 7
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (UNAUDITED) (CONTINUED)
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable Series
/ June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
RETAIL TRADE--1.8%
APPAREL & ACCESSORY STORES--0.5%
Hennes & Mauritz AB
Class B.............. Sw 2,200 $ 46,054
----------
GENERAL MERCHANDISE STORES--1.3%
Wal-Mart Stores,
Inc. ................ 2,300 132,538
----------
SERVICES--4.0%
BUSINESS SERVICES--2.2%
Oracle Corp. Japan..... Ja 100 36,219
Oracle Corp. Japan New
Shares (a)........... Ja 50 18,369
Sun Microsystems,
Inc. (a)............. 1,800 163,687
----------
218,275
----------
COMPUTER SOFTWARE--1.8%
Microsoft Corp. (a).... 1,200 96,000
SunGard Data Systems,
Inc. (a)............. 2,900 89,900
----------
185,900
----------
TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS &
SANITARY SERVICES--25.8%
BROADCASTING--2.5%
Grupo Televisa SA
(a).................. 3,600 248,175
----------
COMMUNICATIONS--3.5%
Viacom, Inc.
Class B (a).......... 2,000 136,375
Vodafone AirTouch
PLC.................. UK 53,637 215,064
----------
351,439
----------
ELECTRIC, GAS & SANITARY SERVICES--1.8%
Dynegy Inc. ........... 2,700 184,444
----------
ELECTRIC SERVICES--2.5%
AES Corp. (a).......... 5,500 250,938
----------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
GAS SERVICES--1.6%
Kinder Morgan, Inc. ... 4,800 $ 165,900
----------
TELECOMMUNICATION--13.9%
AT&T Wireless
Group (a)............ 9,000 250,875
Bell Atlantic Corp..... 1,700 86,381
COLT Telecom Group PLC
(a).................. UK 3,500 116,832
France Telecom S.A. ... Fr 390 54,512
Korea Telecom Corp.
ADR.................. 2,500 120,938
MCI WorldCom,
Inc. (a)............. 1,850 84,869
Nippon Telegraph &
Telephone Corp. ..... Ja 8 106,395
Nokia Oyj (a).......... Fi 4,100 209,228
SK Telecom Co.
Ltd. ADR............. 2,200 79,888
Telecel-Comunicacaoes
Pessoais, SA (a)..... Pt 2,000 30,361
Telecom Italia SPA..... It 3,000 41,102
Telecomunicacoes
Brasileiras SA....... 450 43,706
Telefonica de Espana... 1,900 121,719
Telefonos de Mexico
SA................... Mx 22,200 63,458
----------
1,410,264
----------
WHOLESALE TRADE--0.4%
DURABLE GOODS
Softbank Corp. ........ Ja 300 40,747
----------
TOTAL COMMON STOCKS
(cost of $7,634,289) (c)....................... 8,347,630
----------
</TABLE>

See Notes to Investment Portfolio.
3
<PAGE> 8
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INVESTMENT PORTFOLIO (UNAUDITED) (CONTINUED)
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable Series
/ June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--17.2%
Repurchase agreement with SBC
Warburg Ltd., dated 6/30/00,
due 7/03/00 at 6.60%,
collateralized by Treasury
notes with various maturities
to 2026, market value
$1,779,587 (repurchase
proceeds $1,743,959)......... $1,743,000 $ 1,743,000
-----------
OTHER ASSETS & LIABILITIES, NET--0.3%....... 29,409
-----------
NET ASSETS--100%............................ $10,120,039
-----------
</TABLE>

(a) Non-income producing security.
(b) The value of this security represents fair market value as determined in
good faith under the direction of the Trustees.
(c) Cost for federal income tax purposes is the same.

SUMMARY OF SECURITIES BY COUNTRY

<TABLE>
<CAPTION>
% OF TOTAL
SUMMARY OF SECURITIES COUNTRY SECURITIES
BY COUNTRY ABBREV. VALUE AT VALUE
--------------------- ------- ---------- ----------
<S> <C> <C> <C>
United States $5,417,322 64.9
Japan Ja 1,022,018 12.2
United Kingdom UK 474,884 5.7
Netherlands Ne 458,518 5.5
France Fr 300,420 3.6
Finland Fi 209,228 2.5
Hong Kong HK 181,253 2.2
Mexico Mx 166,470 2.0
Switzerland Sz 46,054 0.6
Portugal Pt 30,361 0.4
Italy It 41,102 0.4
---------- -----
$8,347,630 100.0%
---------- -----
</TABLE>

Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.

See Notes to Financial Statements.
4
<PAGE> 9

--------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at market value (identified cost $7,634,289)... $ 8,347,630
Short-term obligations...................................... 1,743,000
Cash (including foreign currencies)......................... 82,662
Receivable for investments sold............................. 28,014
Receivable for fund shares sold............................. 24,354
Dividends and interest receivable........................... 12,175
Expense reimbursement due from Manager...................... 2,264
Other....................................................... 38,227
-----------
TOTAL ASSETS........................................... 10,278,326
-----------
LIABILITIES:
Cash (including foreign currencies)......................... 102,055
Accrued:
Management fee............................................ 18,090
Bookkeeping fee........................................... 2,745
Distribution fee--Class B................................. 1,793
Other....................................................... 33,604
-----------
TOTAL LIABILITIES...................................... 158,287
-----------
NET ASSETS.................................................. $10,120,039
-----------
NET ASSETS REPRESENTED BY:
Paid-in capital........................................... $ 9,671,733
Undistributed net investment income....................... 38,902
Accumulated net realized losses on investments and foreign
currency transactions.................................. (305,846)
Net unrealized appreciation on investments and foreign
currency transactions.................................. 715,250
-----------
TOTAL NET ASSETS APPLICABLE TO OUTSTANDING SHARES OF
BENEFICIAL INTEREST....................................... $10,120,039
-----------
TOTAL NET ASSETS APPLICABLE TO CLASS A SHARES............... $1,056
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS A.......... 97
-----------
NET ASSET VALUE PER SHARE--CLASS A.......................... $10.88
-----------
TOTAL NET ASSETS APPLICABLE TO CLASS B SHARES............... $10,118,983
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS B.......... 930,209
-----------
NET ASSET VALUE PER SHARE--CLASS B.......................... 10.88
-----------
</TABLE>

--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED)
For the Six Months Ended June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 60,635
Interest.................................................... 47,562
---------
Total investment income (net of nonreclaimable foreign
taxes withheld at source which amounted to $5,519).... 108,197
---------
EXPENSES:
Management fee............................................ 40,479
Bookkeeping fee........................................... 13,845
Distribution fee--Class B................................. 10,711
Transfer agent fee........................................ 3,745
Audit fee................................................. 5,260
Printing expense.......................................... 1,152
Trustees' expense......................................... 3,186
Custodian fee............................................. 2,702
Legal fee................................................. 638
Miscellaneous expense..................................... 971
---------
Total expenses......................................... 82,689
---------
Less:
Expense reimbursable by Manager........................... (22,696)
---------
Net expenses................................................ 59,993
---------
Net investment income....................................... 48,204
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized losses on investments........................ (278,331)
Net realized losses on foreign currency transactions...... (27,514)
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (15,519)
---------
Net decrease in net assets resulting from operations........ $(273,160)
---------
</TABLE>

See Notes to Financial Statements.

5
<PAGE> 10

--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER
2000 1999*
----------- ----------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 48,204 $ 19,104
Net realized gains (losses) on investments................ (278,331) 893
Net realized losses on investments and foreign currency
transactions........................................... (27,514) (3,287)
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (15,519) 730,769
----------- ----------
Net increase (decrease) in net assets resulting from
operations................................................ (273,160) 747,479
----------- ----------
DISTRIBUTIONS DECLARED FROM:
Net investment income..................................... -- (27,304)
Net realized gains on investments......................... -- (894)
----------- ----------
Total distributions......................................... -- (28,198)
----------- ----------
FUND SHARE TRANSACTIONS:
Proceeds from fund shares sold--Class A................... 1,000 --
----------- ----------
Proceeds from fund shares sold--Class B................... 3,763,783 6,617,664
Cost of fund shares repurchased--Class B.................. (655,101) (81,626)
Distributions reinvested--Class B......................... -- 28,198
----------- ----------
3,108,682 6,564,236
----------- ----------
Net increase in net assets resulting from fund share
transactions.............................................. 3,109,682 6,564,236
----------- ----------
Total increase in net assets................................ 2,836,522 7,283,517
NET ASSETS:
Beginning of year......................................... 7,283,517 --
----------- ----------
End of year............................................... $10,120,039 $7,283,517
----------- ----------
Undistributed (overdistributed) net investment income
included in ending net assets............................. $ 38,902 $ (9,302)
----------- ----------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST:
Shares sold--Class A...................................... 97 --
----------- ----------
Shares sold--Class B...................................... 339,893 654,515
Shares repurchased--Class B............................... (59,225) (7,575)
Distributions reinvested--Class B......................... -- 2,601
----------- ----------
280,668 649,541
----------- ----------
</TABLE>

* For period from the commencement of operations, June 1, 1999 to December 31,
1999.

See Notes to Financial Statements.

6
<PAGE> 11

NOTES TO FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION AND ACCOUNTING POLICIES

ORGANIZATION--Colonial Global Equity Fund, Variable Series (the Fund), a
series of Liberty Variable Investment Trust, is a non-diversified portfolio of a
Massachusetts business trust, registered under the Investment Company Act of
1940, as amended, as an open-end management investment company. The Fund's
investment objective is to seek long-term growth by investing primarily in
global equity securities. The Fund's capitalization consists of an unlimited
number of shares of beneficial interest without par value that represent a
separate series of the Trust. The Fund offers two classes of shares: Class A and
Class B. Class B shares are subject to an annual distribution fee. Each share of
a Fund represents an equal proportionate beneficial interest in that Fund and,
when issued and outstanding, is fully paid and nonassessable. Shareholders would
be entitled to share proportionally in the net assets of the Fund available for
distribution to shareholders upon liquidation of the Fund. Shares of the Trust
are available and are being marketed exclusively as a pooled funding vehicle for
variable annuity contracts ("VA contracts") and Variable Life Insurance Policies
("VLI Policies") offered by the separate accounts of the life insurance
companies ("Participating Insurance Companies"). Certain Participating Insurance
Companies are affiliated with the Investment Advisor and sub-advisors to the
Fund ("Affiliated Participating Insurance Companies"). Such Affiliated
Participating Insurance Companies are Keyport Life Insurance Company
("Keyport"), Independence Life & Annuity Company ("Independence") and Liberty
Life Assurance Company of Boston ("Liberty Life"). The Participating Insurance
Companies and their separate accounts own all the shares of the Fund. Liberty
Advisory Services Corp. (the Manager) ("LASC"), provides investment management
and advisory services to the Fund pursuant to its Management Agreements with the
Trust. Colonial Management Associates, Inc. ("Colonial") provides sub-advisory
services. LASC has delegated various administrative matters to Colonial.
Colonial also provides transfer agency and pricing and record keeping services
to the Trust. Keyport Financial Services Corp. ("KFSC") serves as the principal
underwriter of the Trust with respect to sales of shares to Affiliated
Participating Insurance Companies. The Manager, Colonial, KFSC, Keyport and
Independence are wholly-owned indirect subsidiaries of Liberty Financial
Companies, Inc. ("LFC"). As of June 30 2000, Liberty Mutual Insurance Companies
("Liberty Mutual") owned approximately 71% of the outstanding voting shares of
LFC. Liberty Life is a subsidiary of Liberty Mutual.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements.

SECURITY VALUATION AND TRANSACTIONS--Equity securities generally are valued at
the last sale price or, in the case of unlisted or listed securities for which
there were no sales during the day, at current quoted bid prices.

Forward currency contracts are valued based on the weighted value of the
exchange-traded contracts with similar durations.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies is
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.

DETERMINATION OF CLASS NET ASSET VALUES AND FINANCIAL HIGHLIGHTS--All income,
expenses (other than the Class B distribution fee), and realized and unrealized
gains (losses) are allocated to each class proportionately on a daily basis for
purposes of determining the net asset value of each class.

The per share data was calculated using average shares outstanding during the
period. In addition, Class B net investment income per share data reflects the
distribution fee applicable to Class B shares only.

Class B ratios are calculated by adjusting the expense and net investment income
ratios for the Fund for the entire period by the distribution fee applicable to
Class B shares only.

FEDERAL INCOME TAXES--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

DISTRIBUTIONS TO SHAREHOLDERS--The Fund intends to distribute as dividends or
capital gains distributions, at least annually, substantially all of its net
investment income and net profits realized from the sale of investments. All
dividends and distributions are reinvested in additional shares of the Fund at
net asset value as of the record date of the distribution. Income and capital
gain distributions are determined in accordance with federal income tax
regulations.

7
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforwards) under income tax regulations.

FOREIGN CURRENCY TRANSACTIONS--Net realized and unrealized gains (losses) on
foreign currency transactions includes gains (losses) arising from the
fluctuation in exchange rates between trade and settlement dates on securities
transactions, gains (losses) arising from the disposition of foreign currency,
and currency gains (losses) between the accrual and payment dates on dividends
and interest income and foreign withholding taxes.

The Fund does not distinguish that portion of gains (losses) on investments,
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included with
the net realized and unrealized gains (losses) on investments.

FORWARD CURRENCY CONTRACTS--The Fund may enter into forward currency contracts
to purchase or sell foreign currencies at predetermined exchange rates in
connection with the settlement of purchases and sales of securities. The Fund
may also enter into forward currency contracts to hedge certain other foreign
currency denominated assets. The contracts are used to minimize the exposure to
foreign exchange rate fluctuations during the period between trade and
settlement date of the contracts. All contracts are marked-to-market daily,
resulting in unrealized gains (losses) which become realized at the time the
forward currency contracts are closed or mature. Realized and unrealized gains
(losses) arising from such transactions are included in net realized and
unrealized gains (losses) on foreign currency transactions. Forward currency
contracts do not eliminate fluctuations in the prices of the Fund's portfolio
securities. While the maximum potential loss from such contracts is the
aggregate face value in U.S. dollars at the time the contract was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. Risks may also arise if counterparties
fail to perform their obligations under the contracts.

NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES

MANAGEMENT AND SUB-ADVISORY FEES--The Manager receives a monthly fee equal to
0.95% annually of the Fund's average daily net assets. The Manager, out of the
management fee it receives, pays Colonial a monthly sub-advisory fee equal to
0.75% annually of the Fund's average daily net assets.

BOOKKEEPING FEE--Colonial provides bookkeeping and pricing services for
$27,000 per year plus 0.040% of the Fund's average net assets over $50 million.

TRANSFER AGENT FEE--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Manager, provides shareholder services for an annual rate of
$7,500.

DISTRIBUTION FEE--The Fund has adopted a 12b-1 plan which requires it to pay
Liberty Funds Distributor, Inc. ("LFDI") and KFSC a distribution fee totaling
0.25% on Class B net assets as of the 20th of each month.

EXPENSE LIMITS--The Manager has agreed, until further notice, to waive fees
and bear certain Fund expenses to the extent that total expenses (exclusive of
12b-1 fees brokerage commissions, interest, taxes and extraordinary expenses)
exceed 1.15% of the Fund's average net assets.

OTHER--The Fund pays no compensation to its officers, all of whom are
employees of the Manager.

The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.

NOTE 3. PORTFOLIO INFORMATION

INVESTMENT ACTIVITY--During the six months ended June 30, 2000, purchases and
sales of investments, other than short term obligations, were $6,631,638 and
$3,697,058, respectively.

Unrealized appreciation (depreciation) at June 30, 2000, based on cost of
investments for both financial statement and federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation $ 1,075,294
Gross unrealized depreciation (361,953)
-----------
Net unrealized appreciation $ 713,341
-----------
</TABLE>

8
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

OTHER--There are certain additional risks involved when investing in foreign
securities that are not inherent with investments in domestic securities. These
risks may involve foreign currency exchange rate fluctuations, adverse political
and economic developments and the possible prevention of foreign currency
exchange or the imposition of other foreign governmental laws or restrictions.

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

9
<PAGE> 14

--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust: Colonial Global Equity Fund, Variable Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
PERIOD SIX MONTHS
ENDED ENDED PERIOD ENDED
JUNE 30, JUNE 30, DECEMBER 31,
2000 2000 1999***
----------- ----------- ------------
CLASS A**** CLASS B CLASS B
----------- ----------- ------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.......................... $10.64 $ 11.21 $10.00
------ ------- ------
Net investment income (a)................................... 0.02 0.06 0.04
Net realized and unrealized gains (losses) on investments... 0.22 (0.39) 1.22
------ ------- ------
Total from investment operations............................ 0.24 (0.33) 1.26
------ ------- ------
Less distributions:
Dividends from net investment income...................... -- -- (0.05)
------ ------- ------
Total distributions......................................... -- -- (0.05)
------ ------- ------
Net asset value, end of year................................ $10.88 $ 10.88 $11.21
------ ------- ------
TOTAL RETURN:
Total investment return (b)(c).............................. 2.26%** (2.94)%** 12.57%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's)............................. $ 1 $10,119 $7,284
Ratio of expenses to average net assets (d)(e).............. 1.15%* 1.40%* 1.40%*
Ratio of net investment income to average net assets (d).... 1.38%* 1.13%* 1.55%*
Portfolio turnover ratio.................................... 53%** 53%** 1%
</TABLE>

* Annualized.

** Not annualized.

*** For the period from commencement of operations June 1, 1999 to December
31, 1999.

**** Class A shares were initially offered on June 1, 2000. Per share data
reflects activity from that date.

(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 1.69%, 2.09%
and 2.18% (annualized).

10
<PAGE> 15

--------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust: Colonial Growth and Income Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

DEAR CONTRACT OWNER:

Colonial Growth and Income Fund, Variable Series, seeks primarily income and
long-term capital growth, and secondarily, preservation of capital.

FUND PERFORMANCE AS OF JUNE 30, 2000

<TABLE>
<S> <C>
Inception date.............................. 7/1/93
Assuming reinvestment of all distributions
six-month total return for Class A shares... 0.08%
Net asset value per share on 6/30/00........ $13.19
Net asset value per share on 12/31/99....... $13.18
</TABLE>

PORTFOLIO MANAGERS' DISCUSSION

Scott Schermerhorn is the portfolio manager of Colonial Growth and Income
Fund, Variable Series and is a senior vice president of Colonial Management
Associates, Inc.

WHAT WAS THE INVESTMENT ENVIRONMENT LIKE OVER THE PAST SIX MONTHS?

The U.S. economy continued to grow at a rapid rate, prompting the Federal
Reserve Board to boost short-term interest rates even beyond the levels they
reached in 1999. This drove investors away from growth stocks, primarily the
technology issues that were so dominant in the previous months. Investors began
to realize that many of the companies whose stocks had been driven up to
abnormally high values could not sustain their projected growth rates. Value
stocks of companies with solid earnings began to gain more investor attention.

WHAT WAS THE FUND'S STRATEGY DURING THE PERIOD?

We took advantage of price weakness in the market to add some high-quality
companies to the portfolio. This included names like Proctor & Gamble,
McDonald's, Sara Lee and Disney (2.73%; 1.42%, 3.21% and 1.48% of net assets,
respectively), all of which we see as well run firms that are positioned to
prosper in their marketplaces. We have been focusing on strengthening the
portfolio in several areas we believe offer solid opportunity. One is consumer
staple companies, such as the food business, that have been able to effectively
increase prices on many of their products. The second is energy, where higher
oil prices have boosted drilling activity, increasing the potential for a number
of companies in the oil services business. Select financial companies, primarily
insurance firms who have seen stock prices stay depressed for several years,
also appear poised for a rebound.

WHAT IS YOUR OUTLOOK FOR THE PERIOD AHEAD?

Although value stocks regained some lost ground late in the period, they still
offer very attractive opportunities for investors. Many of these companies have
maintained solid earnings growth and excellent balance sheets, but have yet to
achieve their fullest potential.

It is unclear at this time what direction the economy will move. If growth
remains strong, the Federal Reserve is likely to maintain its aggressive efforts
to stem that growth and attempt to keep inflation in check. If growth does slow
but a recession is avoided, markets should see that as a positive sign. In
either case, we believe the Fund is well positioned by holding a portfolio of
high quality companies that we believe are fundamentally sound.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN WILL VARY, SO YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.
Holdings are disclosed as a percentage of the portfolio's total net assets as of
June 30, 2000, and are subject to change. Total return performance includes the
changes in share price and reinvestment of all distributions. Each index
mentioned in the discussion in an unmanaged group of stocks that differ from the
composition of the Fund; indexes are not available for direct investment.

Performance numbers reflect all expenses, but do not include any insurance
charges imposed by your insurance company's separate accounts. If performance
included the effect of these additional amounts, it would be lower.

11
<PAGE> 16

--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (UNAUDITED)
Liberty Variable Investment Trust: Colonial Growth and Income Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- ------------
<S> <C> <C> <C>
COMMON STOCKS--100.1%
FINANCE, INSURANCE & REAL ESTATE--15.1%
DEPOSITORY INSTITUTIONS--5.6%
Banc One Corp. ...... 132,400 $ 3,516,875
Firstar Corp. ....... 77,600 1,634,450
FleetBoston Financial
Corp. ............. 68,500 2,329,000
Washington Mutual,
Inc. .............. 97,900 2,826,863
------------
10,307,188
------------
INSURANCE CARRIERS--7.7%
Aetna Life and
Casualty Co. ...... 46,100 2,959,044
Aon Corp. ........... 140,700 4,370,494
United Healthcare
Corp. ............. 25,200 2,160,900
XL Capital Ltd.,
Class A............ 87,500 4,735,938
------------
14,226,376
------------
NONDEPOSITORY CREDIT INSTITUTIONS--1.8%
Freddie Mac.......... 82,300 3,333,150
------------
MANUFACTURING--62.8%
CHEMICALS & ALLIED PRODUCTS--14.7%
Abbott
Laboratories....... 138,100 6,154,081
Merck & Co., Inc. ... 60,900 4,666,463
Praxair, Inc. ....... 63,500 2,377,281
Procter & Gamble
Co. ............... 87,700 5,020,825
Schering-Plough
Corp. ............. 103,000 5,201,500
Sherwin-Williams
Co. ............... 164,500 3,485,344
------------
26,905,494
------------
ELECTRICAL INDUSTRIAL EQUIPMENT--2.1%
Emerson Electric
Co. ............... 65,200 3,936,450
------------
FOOD & KINDRED PRODUCTS--15.4%
Bestfoods............ 92,700 6,419,475
General Mills,
Inc. .............. 69,300 2,650,725
Nabisco Holdings
Corp. ............. 73,500 3,858,750
PepsiCo, Inc. ....... 95,900 4,261,556
Philip Morris
Companies, Inc. ... 195,200 5,185,000
Sara Lee Corp. ...... 306,200 5,913,488
------------
28,288,994
------------
LUMBER & WOOD PRODUCTS--1.2%
Georgia Pacific
Corp. ............. 86,400 2,268,000
------------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- ------------
<S> <C> <C> <C>
MACHINERY & COMPUTER EQUIPMENT--2.2%
Compaq Computer
Corp. ............. 77,100 $ 1,970,869
Ingersoll Rand
Co. ............... 51,100 2,056,775
------------
4,027,644
------------
MEASURING & ANALYZING INSTRUMENTS--4.7%
Boston Scientific
Corp. (a).......... 83,500 1,831,781
Eastman Kodak Co. ... 63,800 3,796,100
Xerox Corp. ......... 146,200 3,033,650
------------
8,661,531
------------
MISCELLANEOUS MANUFACTURING--1.8%
Mattel, Inc. ........ 244,800 3,228,300
------------
PAPER PRODUCTS--1.8%
Kimberly Clark
Corp. ............. 57,500 3,299,062
------------
PETROLEUM REFINING--10.0%
Amerada Hess
Corp. ............. 72,300 4,464,525
Chevron Corp. ....... 27,300 2,315,381
Royal Dutch Petroleum
Co. ............... 76,200 4,691,063
Texaco, Inc. ........ 59,300 3,157,725
USX-Marathon Group... 148,400 3,719,275
------------
18,347,969
------------
RUBBER & PLASTIC--2.1%
Nike, Inc., Class
B.................. 97,600 3,885,700
------------
STONE, CLAY, GLASS & CONCRETE--1.9%
Minnesota Mining &
Manufacturing
Co. ............... 41,800 3,448,500
------------
TRANSPORTATION EQUIPMENT--4.9%
Boeing Co. .......... 109,300 4,570,106
Delphi Automotive
Systems Corp. ..... 180,278 2,625,298
United Technologies
Corp. ............. 32,500 1,913,437
------------
9,108,841
------------
MINING & ENERGY--3.7%
CRUDE PETROLEUM & NATURAL GAS--2.2%
Anadarko Petroleum
Corp. ............. 81,800 4,033,761
------------
OIL & GAS FIELD SERVICES--1.5%
Diamond Offshore
Drilling, Inc. .... 78,600 2,760,825
------------
RETAIL TRADE--5.7%
APPAREL & ACCESSORY STORES--1.3%
Nordstrom, Inc. ..... 101,000 2,436,624
------------
</TABLE>

See Notes to Investment Portfolio.
12
<PAGE> 17
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial Growth and Income Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- ------------
<S> <C> <C> <C>
FOOD STORES--2.1%
Albertson's, Inc. ... 118,600 $ 3,943,450
------------
GENERAL MERCHANDISE STORES--0.9%
Federated Department
Stores, Inc. ...... 46,600 1,572,750
------------
RESTAURANTS--1.4%
McDonald's Corp. .... 79,400 2,615,238
------------
SERVICES--3.7%
COMPUTER RELATED SERVICES--2.2%
First Data Corp. .... 83,200 4,128,800
------------
MOTION PICTURES--1.5%
The Walt Disney
Co. ............... 70,200 2,724,638
------------
TRANSPORTATION, COMMUNICATION, ELECTRIC,
GAS & SANITARY SERVICES--9.1%
ELECTRIC SERVICES--3.1%
Entergy Corp. ....... 80,600 2,191,313
PG&E Corp. .......... 46,500 1,145,063
Southern Co. ........ 107,500 2,506,094
------------
5,842,470
------------
RAILROAD--1.0%
Union Pacific
Corp. ............. 47,800 1,777,563
------------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- ------------
<S> <C> <C> <C>
TELECOMMUNICATION--3.7%
AT&T Corp. .......... 113,100 $ 3,576,788
MCI WorldCom,
Inc. .............. 70,600 3,238,774
------------
6,815,562
------------
WATER TRANSPORTATION--1.3%
Tidewater, Inc. ..... 65,100 2,343,600
------------
WHOLESALE TRADE--0.0%
DURABLE GOODS
Beers NV............. Ne 1,635 52,450
------------
TOTAL COMMON STOCKS
(cost of $178,708,579)(b).................... 184,320,930
------------
OTHER ASSETS & LIABILITIES, NET--(0.1)%........ (260,366)
------------
NET ASSETS--100.0%............................. $184,060,564
------------
</TABLE>

NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing security.
(b) The cost for federal income tax purposes is the same.

SUMMARY OF SECURITIES BY COUNTRY

<TABLE>
<CAPTION>
% OF TOTAL
SUMMARY OF SECURITIES COUNTRY SECURITIES
BY COUNTRY ABBREV. VALUE AT VALUE
--------------------- ------- ------------ ----------
<S> <C> <C> <C>
United States $ $184,268,480 99.9%
Netherlands Ne 52,450 0.1
------------ ----
$184,320,930 100%
------------ ----
</TABLE>

Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.

<TABLE>
<CAPTION>
ACRONYM NAME
------- ----
<S> <C>
ADR American Depositary Receipt
</TABLE>

See Notes to Financial Statements.
13
<PAGE> 18

--------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
Liberty Variable Investment Trust: Colonial Growth and Income Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at market value (identified cost
$178,708,579)............................................. $184,320,930
Receivable for investments sold............................. 41,029
Dividends, tax reclaims and interest receivable............. 443,721
Other....................................................... 101,964
------------
TOTAL ASSETS........................................... 184,907,644
------------
LIABILITIES:
Cash (including foreign currencies)......................... 27,542
Payable for fund shares repurchased......................... 613,657
Accrued:
Management fee payable.................................... 205,234
Transfer agent fee........................................ 647
TOTAL LIABILITIES...................................... 847,080
------------
NET ASSETS.................................................. $184,060,564
------------
NET ASSETS REPRESENTED BY:
Paid-in capital........................................... $186,887,347
Undistributed net investment income....................... 1,268,238
Accumulated net realized losses on investments and foreign
currency transactions.................................. (9,707,372)
Net unrealized appreciation on investments and foreign
currency transactions.................................. 5,612,351
------------
TOTAL NET ASSETS APPLICABLE TO OUTSTANDING SHARES OF
BENEFICIAL INTEREST....................................... $184,060,564
------------
NET ASSETS APPLICABLE TO CLASS A SHARES..................... $184,059,602
------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS A.......... 13,952,377
------------
NET ASSET VALUE PER SHARE--CLASS A.......................... $13.19
------
</TABLE>

--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED)
For the Six Months ended June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 27,560
Interest.................................................... 1,929,273
----------
Total investment income................................ 1,956,833
----------
EXPENSES:
Management fee............................................ 606,864
Bookkeeping fee........................................... 38,052
Distribution fee--Class B................................. (a)
Transfer agent fee........................................ 3,740
Audit fee................................................. 11,947
Printing expense.......................................... 3,627
Trustees' expense......................................... 7,943
Custodian fee............................................. 5,629
Legal fee................................................. 1,392
Miscellaneous expense..................................... 6,479
----------
Total expenses......................................... 685,673
----------
Net investment income....................................... 1,271,160
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized losses on investments........................ (8,919,831)
Net realized gains on foreign currency transactions....... 1,405
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... 7,395,534
----------
Net decrease in net assets resulting from operations........ $ (251,732)
----------
</TABLE>

(a) Rounds to less than one.

See Notes to Financial Statements.

14
<PAGE> 19

--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Liberty Variable Investment Trust: Colonial Growth and Income Fund, Variable
Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
2000 1999
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 1,271,160 $ 1,763,871
Net realized gains (losses) on investments................ (8,919,831) 43,889,093
Net realized gains on foreign currency transactions....... 1,405 1,335
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... 7,395,534 (36,367,658)
------------ ------------
Net increase (decrease) in net assets resulting from
operations................................................ (251,732) 9,286,641
------------ ------------
DISTRIBUTIONS DECLARED FROM:
Net investment income..................................... -- (1,741,134)
Net realized gains........................................ -- (43,890,430)
In excess of net realized gains........................... -- (738,015)
------------ ------------
Total distributions......................................... -- (46,369,579)
------------ ------------
FUND SHARE TRANSACTIONS:
Proceeds from fund shares sold--Class A................... 5,609,711 60,866,970
Cost of fund shares repurchased--Class A.................. (18,820,968) (22,451,127)
Distributions reinvested--Class A......................... -- 46,369,579
------------ ------------
(13,211,257) 84,785,422
------------ ------------
Proceeds from fund shares sold--Class B..................... 1,000 --
------------ ------------
Net increase (decrease) in net assets resulting from fund
share transactions........................................ (13,210,257) 84,785,422
------------ ------------
Total increase (decrease) in net assets........... (13,461,989) 47,702,484
NET ASSETS:
Beginning of year......................................... 197,522,553 149,820,069
------------ ------------
End of year............................................... $184,060,564 $197,522,553
------------ ------------
Undistributed (overdistributed) net investment income
included in ending net assets............................. $ 1,268,238 $ (2,922)
------------ ------------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST:
Shares sold--Class A...................................... 433,302 3,638,111
Shares repurchased--Class A............................... (1,464,491) (1,355,698)
Distributions reinvested--Class A......................... -- 3,561,411
------------ ------------
(1,031,189) 5,843,824
------------ ------------
Shares sold--Class B...................................... 73 --
------------ ------------
</TABLE>

See Notes to Financial Statements.
15
<PAGE> 20

NOTES TO FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION AND ACCOUNTING POLICIES

Colonial Growth and Income Fund, Variable Series (the Fund) a series of Liberty
Variable Investment Trust (the "Trust") is a non-diversified portfolio of a
Massachusetts business trust, registered under the Investment Company Act of
1940, as amended, as an open-end management investment company. The Fund's
investment objective is to seek primarily income and long-term capital growth
and secondarily, preservation of capital. The Fund's capitalization consists of
an unlimited number of shares of beneficial interest without par value that
represent a separate series of the Trust. The Fund offers two classes of shares:
Class A and Class B. Class B shares are subject to an annual distribution fee.
Each share of a Fund represents an equal proportionate beneficial interest in
that Fund and, when issued and outstanding, is fully paid and nonassessable.
Shareholders would be entitled to share proportionally in the net assets of the
Fund available for distribution to shareholders upon liquidation of the Fund.
Shares of the Trust are available and are being marketed exclusively as a pooled
funding vehicle for variable annuity contracts ("VA contracts") and Variable
Life Insurance Policies ("VLI Policies") offered by the separate accounts of the
life insurance companies ("Participating Insurance Companies"). Certain
Participating Insurance Companies are affiliated with the Investment Advisor and
sub-advisors to the Fund ("Affiliated Participating Insurance Companies"). Such
Affiliated Participating Insurance Companies are Keyport Life Insurance Company
("Keyport"), Independence Life & Annuity Company ("Independence") and Liberty
Life Assurance Company of Boston ("Liberty Life"). The Participating Insurance
Companies and their separate accounts own all the shares of the Fund. Liberty
Advisory Services Corp. (the Manager) ("LASC"), provides investment management
and advisory services to the Fund pursuant to its Management Agreements with the
Trust. Colonial Management Associates, Inc. ("Colonial") provides sub-advisory
services. LASC has delegated various administrative matters to Colonial.
Colonial also provides transfer agency and pricing and record keeping services
to the Trust. Keyport Financial Services Corp. ("KFSC") serves as the principal
underwriter of the Trust with respect to sales of shares to Affiliated
Participating Insurance Companies. The Manager, Colonial, KFSC, Keyport and
Independence are wholly-owned indirect subsidiaries of Liberty Financial
Companies, Inc. ("LFC"). As of June 30, 2000, Liberty Mutual Insurance Companies
("Liberty Mutual") owned approximately 71% of the outstanding voting shares of
LFC. Liberty Life is a subsidiary of Liberty Mutual.

Forward currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies is
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.

The per share data was calculated using average shares outstanding during the
period.

FEDERAL INCOME TAXES--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

16
<PAGE> 21
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

FOREIGN CURRENCY TRANSACTIONS--Net realized and unrealized gains (losses) on
foreign currency transactions includes gains (losses) arising from the
fluctuations in exchange rates between trade and settlement dates on securities
transactions, gains (losses) arising from the disposition of foreign currency,
and currency gains (losses) between the accrual and payment dates on dividends
and interest income and foreign withholding taxes.

The Fund does not distinguish that portion of gains (losses) on investments
which is due to changes in foreign exchange rates from that which is due to
changes in market prices of the investments. Such fluctuations are included with
the net realized and unrealized gains (losses) on investments.

NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES

MANAGEMENT AND SUB-ADVISORY FEES--The Manager, receives a monthly fee equal to
0.65% annually of the Fund's average daily net assets. The Manager, out of the
management fee it receives, pays Colonial a monthly sub-advisory fee equal to
0.45% annually of the Fund's average daily net assets.

BOOKKEEPING FEE--Colonial provides bookkeeping and pricing services for a
monthly fee equal to $27,000 annually plus 0.040% of the Fund's average net
assets over $50 million.

TRANSFER AGENT FEE--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Manager, provides shareholder services for an annual rate of
$7,500.

DISTRIBUTION FEE--Effective June 1, 2000, the Fund has adopted a 12b-1 plan
which requires it to pay Liberty Funds Distributor, Inc. ("LFDI") and KFSC a
distribution fee totaling 0.25% on Class B net assets as of the 20th of each
month.

EXPENSE LIMITS--The Manager has agreed, until further notice, to waive fees
and bear certain Fund expenses to the extent that total expenses (exclusive of
brokerage commissions, interest, taxes and extraordinary expenses) exceed 1.00%
of the Fund's average net assets.

For the six months ended June 30, 2000, the Fund's operating expenses, as
defined above, did not exceed the 1.00% expense limit.

OTHER--The Fund pays no compensation to its officers, all of whom are
employees of the Manager.

The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.

NOTE 3. PORTFOLIO INFORMATION

INVESTMENT ACTIVITY--During the six months ended June 30, 2000, purchases and
sales of investments, other than short term obligations, were $103,875,588 and
$114,913,588, respectively.

Unrealized appreciation (depreciation) at June 30, 2000, based on cost of
investments for both financial statement and federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation... $15,520,209
Gross unrealized depreciation... (9,907,231)
-----------
Net unrealized appreciation..... $ 5,612,978
-----------
</TABLE>

17
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

prevention of foreign currency exchange or the imposition of other foreign
governmental laws or restrictions.

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

NOTE 4. OTHER RELATED PARTY TRANSACTIONS

During the six months ended June 30, 2000, the Fund used Alphatrade, a wholly
owned subsidiary of Colonial Management Associates, Inc., as a broker. Total
commissions paid to Alphatrade during the period were $66,100.

18
<PAGE> 23

--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust: Colonial Growth and Income Fund, Variable
Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS
ENDED
JUNE 30,
2000
------------
CLASS A
------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.......................... $ 13.18
------------
Net investment income (a)................................... 0.09
Net realized and unrealized gains (losses) on investments... (0.08)
------------
Total from investment operations............................ 0.01
------------
Net asset value, end of year................................ $ 13.19
------------
TOTAL RETURN:
Total investment return (b)................................. 0.08%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's)............................. $ 184,060
Ratio of expenses to average net assets (c)................. 0.73%*
Ratio of net investment income to average net assets (c).... 1.36%*
Portfolio turnover ratio.................................... 56%**
</TABLE>

* Annualized.
** Not annualized.
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Total return at net asset value assuming all distributions reinvested.
(c) The benefits derived from custody credits and directed brokerage
arrangements had no impact.

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.......................... $ 16.39 $ 15.34 $ 13.96 $ 12.60 $ 10.03
-------- -------- -------- ------- -------
Net investment income (a)................................... 0.17 0.20 0.28 0.28 0.29
Net realized and unrealized gains on investments............ 0.69 1.50 3.75 1.98 2.72
-------- -------- -------- ------- -------
Total from investment operations............................ 0.86 1.70 4.03 2.26 3.01
-------- -------- -------- ------- -------
less distributions:
Dividends from net investment income...................... (0.15) (0.18) (0.27) (0.28) (0.25)
In excess of net investment income........................ -- -- (0.01) -- --
Distributions from net realized gains..................... (3.85) (0.47) (2.37) (0.62) (0.19)
In excess of net realized gains........................... (0.07) -- -- -- --
-------- -------- -------- ------- -------
Total distributions......................................... (4.07) (0.65) (2.65) (0.90) (0.44)
-------- -------- -------- ------- -------
Net asset value, end of year................................ $ 13.18 $ 16.39 $ 15.34 $ 13.96 $ 12.60
-------- -------- -------- ------- -------
TOTAL RETURN:
Total investment return (b)................................. 5.55% 11.13% 28.97% 17.89% 30.03%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's)............................. $197,523 $149,820 $106,909 $93,247 $71,070
Ratio of expenses to average net assets (c)................. 0.73% 0.76% 0.79% 0.79% 0.81%
Ratio of net investment income to average net assets (c).... 0.99% 1.24% 1.77% 2.02% 2.51%
Portfolio turnover ratio.................................... 172% 28% 60% 24% 79%
</TABLE>

19
<PAGE> 24

--------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

DEAR CONTRACT OWNER:

Colonial High Yield Securities Fund, Variable Series, seeks current income and
total return.

FUND PERFORMANCE AS OF JUNE 30, 2000

<TABLE>
<S> <C>
Inception date............................. 5/19/98
Assuming reinvestment of all distributions
six-month total return for Class A
shares..................................... (1.47)%
Net asset value per share on 6/30/00....... $8.72
Net asset value per share on 12/31/99...... $8.85
</TABLE>

PORTFOLIO MANAGERS' DISCUSSION

Carl C. Ericson and Scott B. Richards are portfolio co-managers of Colonial
High Yield Securities Fund, Variable Series. Mr. Ericson is a senior vice
president of Colonial Management Associates, Inc. (CMA) and director of the
Taxable Fixed Income Department. Mr. Richards is a senior vice president of CMA.

WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PAST SIX MONTHS?

High yield securities lost ground to other parts of the bond market during the
period. Investors pulled away from bonds with lower credit quality as economic
uncertainty overtook the market. The U.S. economy continued to grow at a rapid
rate, once again raising concerns about the threat of inflation. That put the
Federal Reserve Board in an aggressive mode, raising short-term interest rates
dramatically in an effort to slow economic growth and keep inflation in check.

U.S. Treasury rates declined during the period while high-yield bond rates
rose, pushing the yield spread between the two sectors to near historic highs.
Mutual fund redemptions and other cash outflows had a significant impact on the
high-yield sector. This environment forced managers to sell high-yield bonds
despite the strong operating results of issuers. Many sellers and few buyers
drove bond prices down. While some opportunistic investors stepped in to
purchase these bonds, current sentiment remained negative at the end of June.

WHAT WAS THE FUND'S STRATEGY DURING THE PERIOD?

The Fund continues to focus on companies that are asset-rich, with strong cash
flows. Media and telecommunications firms are prominent names in the portfolio.
While they struggled a bit in the second quarter of the year, they appear to be
well-positioned for a rebound. Beyond that, we are carefully assessing bonds on
an issuer-by-issuer basis, using our extensive in-house research staff to
identify companies with solid credit credentials for consideration in the
portfolio.

WHAT IS YOUR OUTLOOK FOR THE PERIOD AHEAD?

We believe the high-yield market currently offers significant value. The
recent malaise has been due primarily to technical factors, specifically mutual
fund flows and limited trading liquidity, rather than credit-related concerns.
Fundamental measures--corporate earnings, cash flows and issuer liquidity--are
all showing positive trends. Technical factors, however, continue to be negative
and have been responsible for driving bond prices down.

Now, yield spreads between high-yield bonds and Treasury bonds are near
historically wide levels and most bonds in the high-yield sector are priced at
least 10% below their par value. Still, we have confidence in the fundamental
strength of the issuers of the bonds represented in the portfolio. The bonds
held in the Fund offer attractive yields. We believe our consistent, research-
intensive investment process should continue to deliver strong returns relative
to the high-yield bond market as a whole.

High yield investing offers the potential for high income and attractive total
return, but also involves certain risks. These include credit risks associated
with lower-rated bonds, changes in interest rates, and certain risks associated
with foreign investments.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN WILL VARY, SO YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL SHARES. Holdings
are disclosed as a percentage of the portfolio's total net assets as of June 30,
2000, and are subject to change. Total return performance includes changes in
share price and reinvestment of all distributions. Each index mentioned in the
above discussion is an unmanaged group of stocks that differ from the
composition of the Fund; indices are not available for direct investment.

20
<PAGE> 25

--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (UNAUDITED)
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
CORPORATE FIXED-INCOME BONDS & NOTES--82.5%
CONSTRUCTION--1.1%
BUILDING CONSTRUCTION
Atrium Cos., Inc., 10.500%
5/1/09....................... $ 100,000 $ 85,000
Morrison/Knudsen, 11.000%
7/1/10 (a)................... 125,000 124,375
-----------
209,375
-----------
FINANCE, INSURANCE & REAL ESTATE--0.9%
DEPOSITORY INSTITUTIONS
Sovereign Bancorp, Inc.,
10.500% 11/15/06............. 175,000 173,569
-----------
MANUFACTURING--28.6%
CHEMICALS & ALLIED PRODUCTS--6.0%
Agricultural Minerals Co., LP,
10.750% 9/30/03.............. 75,000 48,750
Allied Waste North America,
Inc., 10.000% 8/1/09......... 245,000 204,575
Bio-Rad Laboratories, Inc.,
11.625% 2/15/07 (a).......... 150,000 154,500
Huntsman ICI Holdings LLC,
12/31/09 (b)................. 445,000 142,400
HydroChem Industrial Services,
10.375% 8/1/07............... 75,000 57,375
Lyondell Chemical Co., 10.875%
5/1/09....................... 125,000 123,750
PCI Chemicals Canada, Inc.,
9.250% 10/15/07.............. 90,000 56,700
Pioneer Americas Acquisition
Corp., 9.250% 6/15/07........ 50,000 31,500
Sterling Chemicals, Inc.,
11.750% 8/15/06.............. 190,000 155,800
Terra Industries, Inc., 10.500%
6/15/05...................... 110,000 70,400
Texas Petrochemical Corp.,
11.125% 7/1/06............... 100,000 85,000
Trans Resources, Inc., 10.750%
3/15/08...................... 155,000 31,000
-----------
1,161,750
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT--1.4%
Flextronics International Ltd.,
9.875% 7/1/10 (a)............ 80,000 81,000
Gentek, Inc., 11.000% 8/1/09... 100,000 101,500
TransDigm, Inc., 10.375%
12/1/08...................... 100,000 85,000
-----------
267,500
-----------
</TABLE>

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
FABRICATED METAL--0.5%
Earle M. Jorgensen & Co.,
9.500% 4/1/05................ $ 50,000 $ 45,000
Euramax International PLC,
11.250% 10/1/06.............. 50,000 47,500
-----------
92,500
-----------
FOOD & KINDRED PRODUCTS--3.3%
Chattem, Inc., 8.875% 4/1/08... 250,000 200,000
Di Giorgio Corp., 10.000%
6/15/07...................... 250,000 220,000
Premier International Foods
PLC, 12.000% 9/1/09 (a)(c)... 250,000 222,500
-----------
642,500
-----------
MACHINERY & COMPUTER EQUIPMENT--0.3%
Tritel PCS, Inc., stepped
coupon (12.750% 5/11/04) (d)
5/15/09...................... 100,000 66,000
-----------
MEASURING & ANALYZING INSTRUMENTS--0.7%
Envirosource, Inc., 9.750%
6/15/03...................... 300,000 135,000
-----------
MISCELLANEOUS MANUFACTURING--5.7%
Blount, Inc., 13.000% 8/1/09... 195,000 198,900
Eagle-Picher Industries, Inc.,
9.375% 3/1/08................ 65,000 54,925
Koppers Industries, Inc.,
9.875% 12/1/07............... 150,000 139,500
Moll Industries, Inc., 10.500%
7/1/08....................... 170,000 42,500
Owens-Illinois, Inc., 7.500%
5/15/10...................... 250,000 218,015
Special Devices, Inc., 11.375%
12/15/08..................... 100,000 35,000
Station Casinos, 9.875%
7/1/10 (a)................... 50,000 50,250
Tekni-Plex, Inc., 12.750%
6/15/10...................... 65,000 64,838
Terex Corp., 8.875% 4/1/08..... 100,000 90,000
Thermadyne Holdings Corp.,
9.875% 6/1/08................ 120,000 94,800
Werner Holding Co., 10.000%
11/15/07..................... 100,000 96,250
-----------
1,084,978
-----------
</TABLE>

See Notes to Investment Portfolio.
21
<PAGE> 26
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
PAPER PRODUCTS--2.3%
Gaylord Container Corp.:
9.375% 6/15/07............... $ 100,000 $ 78,000
9.750% 6/15/07............... 50,000 39,500
Repap New Brunswick, Inc.,
10.625% 4/15/05.............. 150,000 135,000
Riverwood International Corp.,
10.875% 4/1/08............... 225,000 198,000
-----------
450,500
-----------
PETROLEUM REFINING--0.5%
Benton Oil & Gas Co.:
9.375% 11/1/07............... 110,000 68,750
11.625% 5/1/03............... 25,000 18,125
-----------
86,875
-----------
PRIMARY METAL--4.2%
AK Steel Corp., 7.875%
2/15/09...................... 100,000 89,000
Algoma Steel, Inc., 12.375%
7/15/05...................... 50,000 43,000
Kaiser Aluminum & Chemical
Corp., 10.875% 10/15/06...... 150,000 143,625
Keystone Consolidated
Industries, Inc., 9.625%
8/1/07....................... 200,000 156,000
Renco Metals, Inc., 11.500%
7/1/03....................... 50,000 19,000
WCI Steel, Inc., 10.000%
12/1/04...................... 200,000 190,000
Wheeling-Pittsburgh Corp.,
9.250% 11/15/07.............. 250,000 167,500
-----------
808,125
-----------
PRINTING & PUBLISHING--0.6%
American Lawyer Media, Inc.,
9.750% 12/15/07.............. 65,000 58,988
Cable Satisfaction
International, Inc., 12.750%
3/1/10....................... 50,000 49,500
-----------
108,488
-----------
RUBBER & PLASTIC--1.2%
Burke Industries, Inc., 10.000%
8/15/07...................... 45,000 18,000
Callahan Nordrhein, 14.000%
7/15/10 (a).................. 65,000 65,163
Metromedia Fiber Network, Inc.,
10.000% 12/15/09............. 150,000 147,000
-----------
230,163
-----------
STONE, CLAY, GLASS & CONCRETE--0.2%
Owens-Illinois, Inc., 7.350%
5/15/08...................... 50,000 44,065
-----------
TEXTILE MILL PRODUCTS--0.8%
Collins & Aikman Products Co.,
10.000% 1/15/07.............. 150,000 145,500
-----------
</TABLE>

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
TRANSPORTATION EQUIPMENT--0.9%
Dura Operating Corp., 9.000%
5/1/09....................... $ 100,000 $ 87,000
LDM Technologies, Inc., 10.750%
1/15/07...................... 100,000 78,500
-----------
165,500
-----------
MINING & ENERGY--4.8%
COAL MINING--0.1%
AEI Resources, Inc., 10.500%
12/15/2005 (a)............... 100,000 20,000
-----------
OIL & GAS EXTRACTION--4.4%
HS Resources, Inc., 9.250%
11/15/06..................... 100,000 97,500
Magnum Hunter Resources, Inc.,
10.000% 6/1/07............... 100,000 94,500
Mariner Energy, Inc., 10.500%
8/1/06....................... 250,000 230,000
Ocean Energy, Inc., 8.875%
7/15/07...................... 150,000 148,875
Petsec Energy, Inc., 9.500%
6/15/07 (e).................. 200,000 78,000
Vintage Petroleum, Inc., 9.750%
6/30/09...................... 200,000 202,500
-----------
851,375
-----------
OIL & GAS FIELD SERVICES--0.3%
RBF Finance Co., 11.000%
3/15/06...................... 50,000 53,750
-----------
RETAIL TRADE--0.8%
FOOD STORES
Pathmark Stores, Inc., 9.625%
5/1/2003 (e)................. 225,000 155,250
-----------
SERVICES--8.3%
AMUSEMENT & RECREATION--5.5%
Boyd Gaming Corp., 9.500%
7/15/07...................... 75,000 71,813
Coast Hotels & Casinos, Inc.,
9.500% 4/1/09................ 100,000 95,500
Hollywood Casino Corp., 11.250%
5/1/07....................... 140,000 143,150
Hollywood Casino Shreveport,
13.000% 8/1/06............... 100,000 106,250
Hollywood Park, Inc., 9.250%
2/15/07...................... 250,000 249,375
Horseshoe Gaming LLC, 9.375%
6/15/07...................... 250,000 247,500
Mohegan Tribal Gaming
Authority, 8.750% 1/1/09..... 145,000 137,750
-----------
1,051,338
-----------
</TABLE>

See Notes to Investment Portfolio.
22
<PAGE> 27
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
HEALTH SERVICES--1.7%
InSight Health Services Corp.,
9.625% 6/15/08............... $ 50,000 $ 44,750
Tenet Healthcare Corp., 8.625%
1/15/07...................... 300,000 287,250
-----------
332,000
-----------
HOTELS, CAMPS & LODGING--0.7%
CapRock Communications Corp.,
11.500% 5/1/09............... 150,000 135,000
-----------
OTHER SERVICES--0.4%
Intertek Finance PLC, 10.250%
11/1/06 (c).................. 100,000 82,000
-----------
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS
& SANITARY SERVICES--38.0%
AIR TRANSPORTATION--0.5%
U.S. Air, Inc., 10.375%
3/1/13....................... 100,000 91,000
-----------
BROADCASTING--3.7%
Allbritton Communications Co.,
9.750% 11/30/07.............. 150,000 145,500
Cumulus Media, Inc., 10.375%
7/1/08....................... 25,000 21,750
Fox Family Worldwide, Inc.,
9.250% 11/1/07............... 150,000 136,500
LIN Holding Corp., stepped
coupon (10.000% 3/01/03) (d)
3/1/08....................... 150,000 98,625
Sinclair Broadcast Group, Inc.:
9.000% 7/15/07............... 150,000 133,875
10.000% 9/30/05.............. 75,000 71,906
Young Broadcasting Corp.,
11.750% 11/15/04............. 100,000 100,500
-----------
708,656
-----------
CABLE--8.9%
Adelphia Communications Corp.:
8.375% 2/1/08................ 150,000 132,375
9.875% 3/1/07................ 250,000 239,375
Charter Communications Holding
LLC, stepped coupon (9.250%
2/01/04) (d) 4/1/11.......... 175,000 99,312
Diamond Cable Co., stepped
coupon (10.750% 2/15/02) (d)
2/15/07 (c).................. 250,000 190,625
EchoStar DBS Corp., 9.250%
2/1/06....................... 250,000 242,500
FrontierVision Holdings LP,
stepped coupon (11.875%
9/15/01) (d) 9/15/07......... 250,000 216,875
NTL, Inc., 10.000% 2/15/07..... 250,000 237,500
</TABLE>

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
Northland Cable Television,
Inc., 10.250% 11/15/07....... $ 135,000 $ 112,050
Telewest Communication PLC,
stepped coupon (11.000%
10/1/00) (d) 10/1/07 (c)..... 250,000 239,062
-----------
1,709,674
-----------
COMMUNICATIONS--5.8%
Call-Net Enterprises, Inc.,
stepped coupon (10.800%
5/15/04) (d) 5/15/09......... 50,000 19,000
Centennial Cellular Corp.,
10.750% 12/15/08............. 100,000 100,000
Exodus Communications, Inc.:
10.750% 12/15/09............. 155,000 149,575
11.625% 7/15/10 (a).......... 40,000 40,200
Metrocall, Inc., 9.750%
11/1/07...................... 25,000 16,500
Orbcomm Global LP, 14.000%
8/15/04...................... 15,000 11,700
Spectrasite Holdings, Inc.:
stepped coupon (11.250%
4/15/04) (d) 4/15/09......... 295,000 171,100
10.750% 3/15/10 (a).......... 25,000 24,875
Tele1 Europe BV, 11.875%
12/1/09...................... 50,000 46,305
Time Warner Telecom L.L.C.,
9.750% 7/15/08............... 150,000 145,500
United Pan-Europe
Communications NV, 11.500%
2/1/10 (a)................... 185,000 164,650
Verio, Inc., 11.250% 12/1/08... 195,000 216,450
-----------
1,105,855
-----------
ELECTRIC SERVICES--1.1%
AES Corp., 9.500% 6/1/09....... 210,000 205,800
-----------
MOTOR FREIGHT & WAREHOUSING--0.3%
MTL, Inc., 10.000% 6/15/06..... 75,000 56,250
-----------
TELECOMMUNICATION--17.1%
AirGate PCS, Inc., stepped
coupon (13.500% 10/1/04) (d)
10/1/09...................... 85,000 50,150
Carrier1 International SA,
13.250% 2/15/09.............. 250,000 246,250
Clearnet Communications, Inc.,
stepped coupon (14.750%
12/15/00) (d) 12/15/05....... 200,000 206,000
Covad Communications Group,
Inc., 12.000% 2/15/10 (a).... 30,000 25,200
Crown Castle International
Corp., stepped coupon
(10.375% 5/15/04) (d)
5/15/11...................... 360,000 219,600
Flag Telecom Holding Ltd.,
11.625% 3/30/10.............. 35,000 33,600
</TABLE>

See Notes to Investment Portfolio.
23
<PAGE> 28
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
Flag Telecom Holding Ltd.,
11.625% 3/30/10 (a)(c)....... $ 90,000 $ 82,490
Global Crossing Holding Ltd.,
9.625% 5/15/08............... 50,000 48,625
Global Crossing Ltd., 9.125%
11/15/06 (a)................. 100,000 96,250
Hyperion Telecommunications,
Inc., stepped coupon (13.000%
4/15/01) (d) 4/15/03 (a)..... 50,000 46,500
Jazztel PLC, 13.250%
12/15/2009 (c)............... 50,000 44,396
KMC Telecom Holdings, Inc.,
13.500% 5/15/09.............. 100,000 88,000
Level 3 Communications, Inc.:
9.125% 5/1/08................ 60,000 53,850
11.000% 3/15/08 (a).......... 75,000 74,250
McLeodUSA, Inc., stepped coupon
(10.500% 3/1/02) (d)
3/1/07....................... 100,000 82,500
Microcell Telecommunications,
Inc., stepped coupon (14.000%
12/1/01) (d) 6/1/06.......... 250,000 231,875
Nextel Communications, Inc.:
(stepped coupon 9.750%
10/31/02) (d) 10/31/07....... 100,000 74,500
9.375% 11/15/09.............. 100,000 96,000
Nextel International, Inc.,
stepped coupon (12.125%
4/15/03) (d) 4/15/08......... 60,000 39,103
Nextel Partners, Inc., 11.000%
3/15/10 (a).................. 100,000 99,500
Nextlink Communications, Inc.,
10.750% 6/1/09............... 250,000 246,875
ONO Finance PLC:
13.000% 5/1/09............... 100,000 98,000
14.000% 7/15/10 (a).......... 175,000 167,081
RCN Corp. stepped coupon
(11.125% 10/15/02) (d)
10/15/07..................... 50,000 30,500
TeleCorp PCS, Inc., stepped
coupon (11.625% 4/15/04) (d)
4/15/09...................... 250,000 164,375
UbiquiTel Operating Co.,
stepped coupon (14.000%
4/15/05) (d) 4/15/10......... 50,000 28,750
Williams Communications Group,
Inc., 10.875% 10/1/09........ 230,000 224,250
WinStar Communications Unit,
12.750% 4/15/10 (a).......... $ 10,000 $ 9,650
WinStar Equipment Corp.,
12.500% 4/15/08 (a).......... 150,000 146,250
Worldwide Fiber, Inc., 12.000%
8/1/09....................... 145,000 137,750
XM Satellite Radio Holdings,
Inc., 14.000% 3/15/10 (a).... 100,000 88,500
-----------
3,280,620
-----------
WATER--0.6%
Azurix Corp., 10.750%
2/15/10 (a).................. 120,000 115,200
-----------
TOTAL CORPORATE FIXED-INCOME BONDS & NOTES
(cost of $17,422,733)..................... 15,826,156

-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
------------
<S> <C> <C>
PREFERRED STOCKS--4.2%
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS
& SANITARY SERVICES--4.2%
BROADCASTING--1.3%
Granite Broadcasting Corp.,
PIK, 12.750% (g)............. 59 52,071
PriMedia, Inc. 10.000%......... 2,000 193,000
-----------
245,071
-----------
CABLE--0.8%
CSC Holdings Ltd., PIK,
11.125%...................... 1,535 162,795
-----------
COMMUNICATIONS--0.6%
Dobson Communication Corp.,
PIK, 12.250%................. 106 107,387
-----------
TELECOMMUNICATION--1.5%
Nextel Communications, Inc.,
PIK, 11.125%................. 311 297,005
-----------
TOTAL PREFERRED STOCKS
(cost of $856,635)........................ 812,258
-----------
WARRANTS (G)--0.2%
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS
& SANITARY SERVICES--0.2%
TELECOMMUNICATION
AirGate PCS, Inc., expires 10/1/09.......... 5,645
Cable Satisfaction International, Inc.,
expires 3/1/10............................ 50
Carrier1 International SA, expires
2/19/09................................... 37,290
-----------
</TABLE>

See Notes to Investment Portfolio.
24
<PAGE> 29
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
------------ ------------
<S> <C> <C>
TOTAL WARRANTS
(cost of $6,311)............................ $ 42,985
-----------
TOTAL INVESTMENTS
(cost of $18,285,679) (h)................. 16,681,399
-----------
SHORT-TERM OBLIGATIONS--12.9%
Repurchase agreement with SBC
Warburg, Ltd., dated 6/30/00,
due 7/3/00 at 6.60%,
collateralized by U.S.
Treasury notes with various
maturities to 2026, market
value $2,517,763 (repurchase
proceeds $2,467,356)......... $2,466,000 2,466,000
-----------
FORWARD CURRENCY CONTRACTS--0.1% (I)........ 17,045
-----------
OTHER ASSETS & LIABILITIES, NET--0.1%....... 28,037
-----------
NET ASSETS--100.0%.......................... $19,192,481
-----------
</TABLE>

(a) These securities are exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
June 30, 2000 the value of these securities amounted to $1,817,384 or 9.5%
of net assets.
(b) Zero coupon bond.
(c) This is a British security. Par amount is stated in U.S. dollars.
(d) Currently zero coupon. Shown parenthetically is the interest to be paid and
the date the Fund will begin accruing this rate.
(e) This issuer is in default of certain debt covenants. Income is not being
accrued.
(f) This is a Bermudian security. Par amount is stated in U.S. dollars.
(g) Non-income producing security.
(h) Cost for federal income tax purposes is the same.
(i) As of June 30, 2000, the Fund had entered into the following forward
currency exchange contract:

<TABLE>
<CAPTION>
IN NET UNREALIZED
CONTRACTS EXCHANGE SETTLEMENT APPRECIATION
TO DELIVER FOR DATE (U.S.$)
---------- ----------- ---------- --------------
<S> <C> <C> <C>
Eu 340,411 US $326,636 9/18/00 $17,045
</TABLE>

<TABLE>
<CAPTION>
ACRONYM NAME
------- ----
<S> <C>
Eu Euro
PIK Payment-In-Kind
</TABLE>

See Notes to Financial Statements.

25
<PAGE> 30

--------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at market value (identified cost
$18,285,679).............................................. $16,681,399
Short-term obligations...................................... 2,466,000
Cash (including foreign currencies)......................... 81,003
Unrealized appreciation on forward currency contracts....... 17,045
Dividends and interest receivable........................... 368,402
Receivable for investments sold............................. 188,766
Receivable for fund shares sold............................. 23
Expense reimbursement due from Manager...................... 15,851
-----------
TOTAL ASSETS........................................... 19,818,489
-----------
LIABILITIES:
Payable due to custodian bank............................... 77,791
Payable for investments purchased........................... 433,059
Payable for fund shares repurchased......................... 89,637
Accrued
Management fees........................................... 16,352
Bookkeeping fee........................................... 2,157
Transfer agent fee........................................ 615
Other....................................................... 6,397
-----------
TOTAL LIABILITIES...................................... 626,008
-----------
NET ASSETS.................................................. $19,192,481
-----------
NET ASSETS REPRESENTED BY:
Paid-in capital........................................... $20,679,526
Undistributed net investment income....................... 816,228
Accumulated net realized losses on investments and foreign
currency transactions.................................. (719,426)
Net unrealized depreciation on investments and foreign
currency transactions.................................. (1,583,847)
-----------
TOTAL NET ASSETS APPLICABLE TO OUTSTANDING SHARES OF
BENEFICIAL INTEREST....................................... $19,192,481
-----------
NET ASSETS APPLICABLE TO CLASS A SHARES..................... $19,191,477
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS A.......... 2,200,612
-----------
NET ASSET VALUE PER SHARE--CLASS A.......................... $8.72
-----
</TABLE>

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend.................................................... $ 43,928
Interest.................................................... 825,289
---------
Total investment income................................ 869,217
---------
EXPENSES:
Management fee............................................ 51,425
Bookkeeping fee........................................... 13,463
Distribution fee.......................................... (a)
Transfer agent fee........................................ 3,740
Audit fee................................................. 7,592
Printing expense.......................................... 772
Trustees' expense......................................... 2,994
Custodian fee............................................. 868
Legal fees................................................ 726
Miscellaneous expense..................................... 775
---------
Total expenses......................................... 82,355
---------
Less:
Expenses reimbursable by Manager.......................... (11,720)
---------
Net expenses................................................ 70,635
---------
Net investment income....................................... 798,582
REALIZED AND UNREALIZED LOSSES ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized losses on investments and foreign currency
transactions........................................... (512,737)
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (546,516)
---------
Net decrease in net assets resulting from operations........ $(260,671)
---------
</TABLE>

See Notes to Financial Statements.

26
<PAGE> 31

--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 798,582 $ 960,172
Net realized losses on investments and foreign currency
transactions........................................... (512,737) (147,441)
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (546,516) (718,897)
----------- -----------
Net increase (decrease) in net assets resulting from
operations................................................ (260,671) 93,834
----------- -----------
DISTRIBUTIONS DECLARED FROM:
From net investment income................................ -- (938,513)
----------- -----------
Total distributions......................................... -- (938,513)
----------- -----------
FUND SHARE TRANSACTIONS:
Proceeds from fund shares sold--Class A................... 6,504,394 10,124,281
Cost of fund shares repurchased--Class A.................. (2,410,373) (775,060)
Distributions reinvested--Class A......................... -- 938,513
----------- -----------
4,094,021 --
----------- -----------
Proceeds from fund shares sold--Class B................... 1,000 --
----------- -----------
Net increase in net assets resulting from fund share
transactions.............................................. 4,095,021 10,287,734
----------- -----------
Total increase in net assets................................ 3,834,350 9,443,055
NET ASSETS:
Beginning of year......................................... 15,358,131 5,915,076
----------- -----------
End of year............................................... $19,192,481 $15,358,131
----------- -----------
Undistributed net investment income included in ending net
assets.................................................... $ 816,228 $ 17,646
----------- -----------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST:
Shares sold--Class A...................................... 740,571 1,075,551
Shares repurchased--Class A............................... (274,921) (81,741)
Dividends reinvested--Class A............................. -- 105,807
----------- -----------
465,650 1,099,617
----------- -----------
Shares sold--Class B...................................... 115
----------- -----------
</TABLE>

See Notes to Financial Statements.

27
<PAGE> 32

NOTES TO FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION AND ACCOUNTING POLICIES

ORGANIZATION--Colonial High Yield Securities Fund, Variable Series (the
"Fund"), a series of Liberty Variable Investment Trust (the "Trust"), is a
diversified portfolio of a Massachusetts business trust, registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek current income and total
return. The Fund's capitalization consists of an unlimited number of shares of
beneficial interest without par value that represent a separate series of the
Trust. The Fund offers two classes of shares: Class A and Class B. Class B
shares are subject to an annual distribution fee. Each share of a Fund
represents an equal proportionate beneficial interest in that Fund and, when
issued and outstanding, is fully paid and nonassessable. Shareholders would be
entitled to share proportionally in the net assets of the Fund available for
distribution to shareholders upon liquidation of the Fund. Shares of the Trust
are available and are being marketed exclusively as a pooled funding vehicle for
variable annuity contracts ("VA contracts") and Variable Life Insurance Policies
("VLI Policies") offered by the separate accounts of the life insurance
companies ("Participating Insurance Companies"). Certain Participating Insurance
Companies are affiliated with the Investment Advisor and sub-advisers to the
Fund ("Affiliated Participating Insurance Companies"). Such Affiliated
Participating Insurance Companies are Keyport Life Insurance Company
("Keyport"), Independence Life & Annuity Company ("Independence") and Liberty
Life Assurance Company of Boston ("Liberty Life"). The Participating Insurance
Companies and their separate accounts own all the shares of the Fund. Liberty
Advisory Services Corp. (the Manager) ("LASC"), provides investment management
and advisory services to the Fund pursuant to its Management Agreements with the
Trust. Colonial Management Associates, Inc. ("Colonial") provides sub-advisory
services. LASC has delegated various administrative matters to Colonial.
Colonial also provides transfer agency and pricing and record keeping services
to the Trust. Keyport Financial Services Corp. ("KFSC") serves as the principal
underwriter of the Trust with respect to sales of shares to Affiliated
Participating Insurance Companies. The Manager, Colonial, KFSC, Keyport and
Independence are wholly-owned indirect subsidiaries of Liberty Financial
Companies, Inc. ("LFC"). As of June 30, 2000, Liberty Mutual Insurance Companies
("Liberty Mutual") owned approximately 71% of the outstanding voting shares of
LFC. Liberty Life is a subsidiary of Liberty Mutual.

SECURITY VALUATION AND TRANSACTIONS--Debt securities generally are valued by a
pricing service based upon market transactions for normal, institutional-size
trading units of similar securities. When management deems it appropriate, an
over-the-counter or exchange bid quotation is used.

Equity securities generally are valued at the last sale price or, in the case of
unlisted or listed securities for which there were no sales during the day, at
current quoted bid prices.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies are
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.

The Fund may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Fund to subsequently invest at less advantageous prices.

The per share data was calculated using average shares outstanding during the
period.

FEDERAL INCOME TAXES--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

INTEREST INCOME, DEBT DISCOUNT AND PREMIUM--Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; premium and
market discount are not amortized or accreted.

The value of additional securities received as an interest or dividend payment
is recorded as income and as the cost basis of such securities.

DISTRIBUTIONS TO SHAREHOLDERS--The Fund intends to distribute as dividends or
capital gains distributions, at least annually, substantially all of its net
investment income and

28
<PAGE> 33
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

net profits realized from the sale of investments. All dividends and
distributions are reinvested in additional shares of the Fund at net asset value
as of the record date of the distribution. Income and capital gain distributions
are determined in accordance with federal income tax regulations.

OTHER--Corporate actions are recorded on ex-date (except for certain foreign
securities which are recorded as soon after ex-date as the Fund becomes aware of
such), net of nonrebatable tax withholdings. Where a high level of uncertainty
as to collection exists, income on securities is recorded net of all tax
withholdings with any rebates recorded when received.

The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is marked-to-market
daily to ensure that the market value of the underlying assets remains
sufficient to protect the Fund. The Fund may experience costs and delays in
liquidating the collateral if the issuer defaults or enters bankruptcy.
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT AND SUB-ADVISORY FEES--The Manager receives a monthly fee equal to
0.60% annually of the Fund's average daily net assets. The Manager, out of the
management fee it receives, pays Colonial a monthly sub-advisory fee equal to
0.40% annually of the Fund's average daily net assets.

BOOKKEEPING FEE--Colonial provides bookkeeping and pricing services for a
monthly fee equal to $27,000 annually plus 0.040% of the Fund's average net
assets over $50 million.

TRANSFER AGENT FEE--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Manager, provides shareholder services for an annual rate of
$7,500.

Effective May 30, 2000, the expense limit was changed from 0.80% to the current
rate.

OTHER--The Fund pays no compensation to its officers, all of whom are
employees of the Manager.

The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.

NOTE 3. PORTFOLIO INFORMATION

INVESTMENT ACTIVITY--During the six months ended June 30, 2000, purchases and
sales of investments, other than short term obligations, were $6,705,343 and
$2,884,045, respectively.

Unrealized appreciation (depreciation) at June 30, 2000, based on cost of
investments for both financial statements and federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation $ 126,452
Gross unrealized depreciation (1,735,137)
-----------
Net unrealized depreciation $(1,608,685)
-----------
</TABLE>

CAPITAL LOSS CARRYFORWARDS--At December 31, 1999, capital loss carryforwards
available (to the extent provided in regulations) to offset future realized
gains were approximately as follows:

<TABLE>
<CAPTION>
YEAR OF CAPITAL LOSS
EXPIRATION CARRYFORWARD
---------- ------------
<S> <C>
2006 $ 49,000
2007 53,000
--------
$102,000
--------
</TABLE>

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

29
<PAGE> 34

--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust: Colonial High Yield Securities Fund, Variable
Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS YEAR ENDED PERIOD ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998***
----------- ------------ ------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.......................... $ 8.85 $ 9.31 $10.00
------- ------- ------
Net investment income (a)................................... 0.41 0.88 0.48
Net realized and unrealized loss............................ (0.54) (0.72) (0.74)
------- ------- ------
Total from investment operations............................ (0.13) 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................................ $ 8.72 $ 8.85 $ 9.31
------- ------- ------
TOTAL RETURN:
Total investment return (b)(c).............................. (1.47)%** 1.65% (2.57)%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's)............................. $19,191 $15,358 $5,915
Ratio of expenses to average net assets (d)(e).............. 0.80%* 0.80% 0.80%*
Ratio of net investment income to average net assets (d).... 9.28%* 9.36% 7.93%*
Portfolio turnover ratio.................................... 19%** 16% 23%**
</TABLE>

* 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, this ratio would have been 0.94%
(annualized), 1.28% and 1.84% (annualized).

30
<PAGE> 35

--------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

DEAR CONTRACT OWNER:

Colonial International Fund for Growth, Variable Series seeks long-term
capital growth.

FUND PERFORMANCE AS OF JUNE 30, 2000

<TABLE>
<CAPTION>
CLASS A B(1)
----- ------- -------
<S> <C> <C>
Inception Date................... 5/2/94 6/30/00
Six-month total return........... (10.04)% (10.04)%
Net asset value per share
6/30/00........................ $2.51 $2.51
Net asset value per share
12/31/99....................... $2.79 --
</TABLE>

PORTFOLIO MANAGERS' DISCUSSION

The Portfolio Managers of the Fund are Charles R. Roberts, Michael Ellis, and
Deborah F. Snee. Mr. Roberts, Mr. Ellis, and Ms. Snee have co-managed the Fund
since March 2000. Mr. Roberts and Mr. Ellis are senior vice presidents of
Colonial Management Associates, Inc., and Ms. Snee is a vice president of
Colonial Management Associates, Inc.

WHAT WAS THE INVESTMENT ENVIRONMENT LIKE FOR THE FUND?

In Europe, telecommunications and information technology drove the markets.
The Fund was well represented in the telecommunications sector, and participated
in this rally. However, these gains were diluted by holdings in cyclical sectors
which underperformed such as paper and auto parts.

Both the MSCI Telecommunications Index and the MSCI Information Technology
index declined in the second quarter. The Fund's investments in these sectors,
which are in predominantly large-cap companies, also declined, following the
general trend. However, some of the Fund's investments bucked the trend. Alcatel
(1.5% of net assets), a telecommunications equipment company in France increased
close to 50% for the quarter. Canon (1.6% of net assets), a Japanese
manufacturer of camera and video equipment, climbed 18% for the quarter.

Two sectors which helped boost the Fund's performance were Energy and Health
Care. The MSCI Health Care Index increased 16% for the quarter and the Fund
participated in this rally through holdings like AstraZeneca (1.0% of net
assets), a UK pharmaceutical company which increased 21% over the quarter and
Sanofi-Synthelabo (1.0% of net assets), a French pharmaceutical company which
returned 25%.

WHAT WAS THE FUND'S STRATEGY DURING THE PERIOD?

The Fund came under new portfolio management as of April 2000. As the new
managers we follow a long-term, quality, growth stock style, the Fund is now
positioned largely in the following six growth sectors: business services,
consumer growth, financial services, health care, information technology and
telecommunications. In addition, we invest only in quality companies we believe
have the management and balance sheet strength to take advantage of emerging
opportunities.

WHAT IS YOUR OUTLOOK?

As managers of the Fund, we remain convinced of the long-term growth prospects
of the six sectors in which we currently invest. Sometimes these growth sectors
and quality companies will be challenged by rising interest rates, disruptive
technologies and high valuations, but their long-term prospects have remained
positive. Data and wireless traffic should continue to grow exponentially. The
aging of the population as well as increasing disposable income should fuel the
growth of health care and private pension plans. Further, in both Europe and
Japan, there is increasing emphasis on creating shareholder value. At the same
time, stock ownership by individuals has been rapidly gaining acceptance.

(1) Class B share (newer class shares) performance information includes returns
of the Fund's Class A shares (the oldest existing fund class) for periods
prior to the inception of the newer class shares. These Class A share
returns were not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class A shares and the newer class shares.

31
<PAGE> 36

--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (UNAUDITED)
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
COMMON STOCKS--86.6%
FINANCE, INSURANCE & REAL ESTATE--17.3%
DEPOSITORY INSTITUTIONS--7.0%
Banca Fideuram SPA...... It 90,000 $ 1,373,121
Banca Popolare di Milano
(BPM)................. It 127,100 902,835
Deutsche Bank AG........ G 16,750 1,381,714
Generale Banque, VVPR
STRIP (a)............. Be 105 2
Lloyds TSB Bank PLC..... UK 37,000 360,062
Standard Chartered
PLC................... UK 41,000 511,983
Svenska Handelsbanken,
Class A............... Sw 32,600 474,735
-----------
5,004,452
-----------
HOLDING & OTHER INVESTMENT OFFICES--0.0%
Fortis (B) CVG (a)...... Be 3,395 24,148
Fortis AG-Strip VVPR
(a)................... Be 30,555 292
-----------
24,440
-----------
HOLDING COMPANIES--3.1%
Astrazenca PLC.......... UK 15,523 723,616
Fortis Amev NV.......... Ne 29,604 861,782
Roche Holding AG........ Sz 64 622,593
-----------
2,207,991
-----------
INSURANCE CARRIERS--2.7%
Aegon NV................ Ne 18,000 640,504
Allianz AG.............. G 1,770 642,165
Skandia Forsakrings
AB.................... Sz 24,716 655,175
-----------
1,937,844
-----------
NONDEPOSITORY CREDIT INSTITUTIONS--3.3%
Nordic Baltic Holding AB
FDR................... Sz 149,430 1,087,132
Promise Co., Ltd. ...... Ja 16,500 1,304,188
-----------
2,391,320
-----------
REAL ESTATE--1.2%
IOI Properties Berhad... Ma 124,000 195,789
Orix Corp............... Ja 4,400 649,500
-----------
845,289
-----------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
MANUFACTURING--30.5%
CHEMICALS & ALLIED PRODUCTS--10.8%
Altana AG............... G 8,650 $ 685,463
Glaxo Holdings PLC...... UK 17,000 496,278
Kao Corp. .............. Ja 32,000 977,928
Novartis................ Sz 417 660,088
Sanofi-Synthelabo SA.... Fr 15,000 714,630
SmithKline Beecham PLC.. UK 67,563 894,306
Takeda Chemical
Industries............ Ja 23,000 1,509,903
UCB SA.................. Be 17,900 657,624
Yamanouchi
Pharmaceutical........ Ja 21,000 1,146,859
-----------
7,743,079
-----------
COMMUNICATIONS EQUIPMENT--3.0%
Sony Corp. ............. Ja 10,000 933,786
Telefon LM Ericsson..... Sw 62,800 1,246,748
-----------
2,180,534
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT--1.8%
Siemens AG.............. G 8,600 1,293,209
-----------
1,293,209
-----------
ELECTRONIC COMPONENTS--8.3%
Alcatel Alsthom......... Fr 16,375 1,076,927
Arm Holdings PLC........ UK 26,012 269,172
Electrocomponents PLC... UK 33,500 343,099
Epcos AG................ G 5,753 578,928
Koninklijke Philips
Electronics ADR (a)... Ne 18,380 873,050
Murata Manufacturing
Co., Ltd. ............ Ja 13,000 1,866,251
Rohm Co. Ltd. .......... Ja 1,900 555,555
Samsung Electronics
GDS................... Ko 1,958 384,747
-----------
5,947,729
-----------
FOOD & KINDRED PRODUCTS--3.3%
Groupe Danone........... Fr 4,020 533,495
Nestle AG Registered
Shares................ Sz 525 1,050,064
Numico N.V.............. Ne 15,500 735,492
-----------
2,319,051
-----------
MACHINERY & COMPUTER EQUIPMENT--2.0%
Canon, Inc. ............ Ja 22,000 1,095,642
Fujitsu Ltd. ........... Ja 9,000 311,545
-----------
1,407,187
-----------
STONE, CLAY, GLASS & CONCRETE--0.7%
Holderbank Financiere
Glaris AG............. Sz 425 520,706
-----------
</TABLE>

See Notes to Investment Portfolio.
32
<PAGE> 37
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
TOBACCO PRODUCTS--0.6%
Allied Zurich PLC....... UK 37,000 $ 439,759
-----------
RETAIL TRADE--8.7%
FOOD STORES--1.3%
Carrefour SA............ Fr 9,300 635,749
Jardine Matheson
Holdings Ltd. (a)..... Si 1 4
Tesco PLC............... UK 87,000 270,574
-----------
906,327
-----------
GENERAL MERCHANDISE STORES--3.3%
Ito-Yokado Co., Ltd. ... Ja 11,600 856,706
Seven-Eleven Japan Co.,
Ltd. ................. Ja 18,000 1,505,942
-----------
2,362,648
-----------
MISCELLANEOUS RETAIL--4.1%
Christian Dior SA....... Fr 4,200 952,363
L'Oreal................. Fr 1,300 1,125,746
Pinault-Printemps SA.... Fr 3,900 866,464
-----------
2,944,573
-----------
SERVICES--7.0%
COMPUTER RELATED SERVICES--3.0%
Altran Technologies..... Fr 1,400 274,147
Cap Gemini S.A. ........ Fr 2,900 510,839
Secom Co., Ltd. ........ Ja 19,000 1,388,889
-----------
2,173,875
-----------
COMPUTER SOFTWARE--4.0%
Check Point Software
Technologies.......... Is 970 205,398
Datacraft Asia Ltd. .... Si 41,000 360,800
Intershop Communications
AG.................... G 294 132,769
Hitachi Software
Engineering Co.,
Ltd. ................. Ja 6,500 705,055
Logica PLC.............. UK 14,924 354,155
Oracle Corp. Japan...... Ja 1,100 398,415
Oracle Corp. Japan New
Shares................ Ja 550 202,061
SAP AG.................. G 3,300 493,081
-----------
2,851,734
-----------
TRANSPORTATION, COMMUNICATION, ELECTRIC & GAS
SERVICES--22.4%
COMMUNICATIONS--6.6%
Adecco SA............... Sz 1,280 1,086,792
Capita Group PLC........ UK 28,000 686,973
Securitas AB Class B.... Sw 42,800 910,561
Vodafone Airtouch PLC... UK 505,839 2,028,221
-----------
4,712,547
-----------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
GAS SERVICES--2.4%
BG PLC.................. UK 152,956 $ 988,619
Centrica PLC (a)........ UK 208,800 696,398
-----------
1,685,017
-----------
PUBLISHING--1.8%
Hutchinson Whampoa
Ltd. ................. UK 27,000 339,422
Singapore Press
Holdings.............. Si 26,000 406,168
Wolters Kluwer--CVA..... Ne 19,400 516,768
-----------
1,262,358
-----------
TELECOMMUNICATION--11.6%
Cable & Wireless HKT
Ltd. ................. HK 61,200 130,791
China Telecom Ltd....... HK 44,000 391,595
COLT Telecom Group
PLC................... UK 28,000 934,657
Koninklijke KPN NV...... Ne 32,260 1,442,991
Nortel Networks......... Ca 17,700 1,208,025
Nokia Oyj............... Fi 22,400 1,143,103
NTT Mobile Communication
Network............... Ja 38 1,028,674
SK Telecom Co., Ltd. ... Ko 1,360 445,241
Sonera Group OYJ........ Fi 10,500 478,688
Telecom Italia Mobile
SPA................... It 60,255 616,130
Telefonica de Espana
ADR................... Sp 7,159 458,623
-----------
8,278,518
-----------
WHOLESALE TRADE--0.7%
DURABLE GOODS
Bil Finance Limited..... Nz 496,375 139,635
Li & Fung Ltd. ......... HK 76,301 381,720
-----------
521,355
-----------
TOTAL COMMON STOCKS
(cost of $50,064,611)....................... 61,961,542
-----------
PREFERRED STOCK--1.2%
MANUFACTURING--1.2%
ELECTRONIC COMPONENTS
Samsung Electronics
(cost of $57,622)..... Ko 5,830 854,968
-----------
</TABLE>

See Notes to Investment Portfolio.
33
<PAGE> 38

--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
RIGHTS & WARRANTS--0.0% (A)
FINANCE
DEPOSITORY INSTITUTIONS
Siam Commercial Bank
Public Co., Ltd.
expires 12/31/02 (cost
of $0) (b)............ Th 12,000 $ 1,316
-----------
TOTAL INVESTMENTS
(cost of $50,122,233) (c)................... $62,817,826
-----------
</TABLE>

<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
<S> <C> <C>
SHORT-TERM OBLIGATIONS--8.7%
Repurchase agreement with SBC
Warburg Ltd., dated 6/30/00,
due 7/03/00 at 6.60%,
collateralized by U.S.
Treasury notes with various
maturities to 2026, market
value $6,377,108 (repurchase
proceeds $6,249,435)........ $6,246,000 $ 6,246,000
-----------
OTHER ASSETS & LIABILITIES, NET--3.5%...... 2,516,827
-----------
NET ASSETS--100.0%......................... $71,580,653
-----------
</TABLE>

(a) Non-income producing security.
(b) The value of this security represents fair value as determined in good faith
under the direction of the Trustees.
(c) Cost for federal income tax purposes is the same.

SUMMARY OF SECURITIES BY COUNTRY

<TABLE>
<CAPTION>
% TOTAL
SUMMARY OF SECURITIES COUNTRY SECURITIES
BY COUNTRY ABBREV. VALUE AT VALUE
--------------------- ------- ----------- ----------
<S> <C> <C> <C>
Japan Ja $16,436,899 26.2
United Kingdom Uk 10,337,294 16.5
France Fr 6,690,360 10.7
Switzerland Sz 5,682,550 9.0
Germany G 5,207,329 8.3
Netherlands Ne 5,070,587 8.1
Italy It 2,892,086 4.6
Sweden Sw 2,632,044 4.2
Korea Ko 1,684,956 2.7
Finland Fi 1,621,791 2.6
Canada Ca 1,208,025 1.9
Hong Kong HK 904,106 1.4
Singapore Si 766,972 1.2
Belgium Be 682,066 1.1
Spain Sp 458,623 0.7
Israel Is 205,398 0.3
Malaysia Ma 195,789 0.3
New Zealand NZ 139,635 0.2
Thailand Th 1,316 0.0
----------- -----
$62,817,826 100.0%
----------- -----
</TABLE>

Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.

<TABLE>
<CAPTION>
ACRONYM NAME
------- ----
<S> <C> <C>
ADR
American Depositary Receipt
GDR
Global Depositary Receipt
GDS
Global Depositary Shares
STRIP
Separately Traded Receipt
of Interest and Principal
</TABLE>

See Notes to Financial Statements.
34
<PAGE> 39

--------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at market value (identified cost
$50,122,233).............................................. $62,817,826
Short-term obligations...................................... 6,246,000
Cash (including foreign currencies)......................... 4,489
Receivable for investments sold............................. 1,855,605
Receivable for fund shares sold............................. 743,325
Dividends, tax reclaims, and interest receivable............ 244,755
Other....................................................... 60,365
-----------
TOTAL ASSETS........................................... 71,972,365
-----------
LIABILITIES:
Payable for investments purchased........................... 85,095
Payable for fund shares repurchased......................... 17,484
Accrued:
Management fee............................................ 114,563
Bookkeeping fee........................................... 2,661
Transfer agent fee........................................ 459
Other....................................................... 171,450
-----------
TOTAL LIABILITIES...................................... 391,712
-----------
NET ASSETS.................................................. $71,580,653
-----------
NET ASSETS REPRESENTED BY:
Paid-in capital........................................... $54,907,599
Undistributed net investment income....................... 1,033,346
Accumulated net realized gains on investments and foreign
currency transactions.................................. 2,973,271
Net unrealized appreciation on investments and foreign
currency transactions.................................. 12,666,437
-----------
TOTAL NET ASSETS APPLICABLE TO OUTSTANDING SHARES OF
BENEFICIAL INTEREST....................................... $71,580,653
-----------
NET ASSETS APPLICABLE TO CLASS A SHARES..................... $71,579,606
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS A.......... 28,495,496
-----------
NET ASSET VALUE PER SHARE--CLASS A.......................... $2.51
-----------
NET ASSETS APPLICABLE TO CLASS B SHARES..................... $1,047
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS B SHARES... 417
-----------
NET ASSET VALUE PER SHARE--CLASS B.......................... $2.51
-----------
</TABLE>

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 1,032,041
Interest.................................................... 222,425
------------
Total investment income (net of nonrebatable foreign
taxes withheld at source of $130,719)................. 1,254,466
------------
EXPENSES:
Management fee............................................ 344,558
Bookkeeping fee........................................... 18,249
Distribution fee--Class B................................. (a)
Transfer agent fee........................................ 3,735
Audit fee................................................. 11,298
Printing expense.......................................... 1,330
Trustees' expense......................................... 5,488
Custodian fee............................................. 22,148
Legal fees................................................ 1,134
Miscellaneous expense..................................... 1,374
------------
Total expenses......................................... 409,314
------------
Net investment income....................................... 845,152
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gains on investments......................... 5,321,048
Net realized losses on foreign currency transactions...... (457,803)
Net change in unrealized appreciation/depreciation
investments and foreign currency transactions.......... (13,769,667)
------------
Net decrease in net assets resulting from operations........ $ (8,061,270)
------------
</TABLE>

(a) Rounds to less than one.

See Notes to Financial Statements.

35
<PAGE> 40

--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
2000 1999
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 845,152 $ 722,778
Net realized gains on investments......................... 5,321,048 251,951
Net realized losses on foreign currency transactions...... (457,803) (8,578)
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (13,769,667) 23,031,184
------------ ------------
Net increase (decrease) in net assets resulting from
operations................................................ (8,061,270) 23,997,335
------------ ------------
DISTRIBUTIONS DECLARED FROM:
Net investment income..................................... -- (594,044)
------------ ------------
FUND SHARE TRANSACTIONS:
Proceeds from fund shares sold--Class A................... 6,883,369 65,519,084
Cost of fund shares repurchased--Class A.................. (9,313,158) (59,914,017)
Distributions reinvested.................................. -- 594,044
------------ ------------
(2,429,789) 6,199,111
------------ ------------
Proceeds from fund shares sold--Class B................... 1,000 --
------------ ------------
Net increase (decrease) in net assets resulting from fund
share transactions........................................ (2,428,789) 6,199,111
------------ ------------
Total increase (decrease) in net assets..................... (10,490,059) 29,602,402
NET ASSETS:
Beginning of year......................................... 82,070,712 52,468,310
------------ ------------
End of year............................................... $ 71,580,653 $ 82,070,712
------------ ------------
Undistributed net investment income included in ending net
assets.................................................... $ 1,033,346 $ 188,194
------------ ------------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST:
Shares sold--Class A...................................... 2,600,343 33,091,632
Shares repurchased--Class A............................... (3,479,455) (30,213,507)
Dividends reinvested--Class A............................. -- 229,360
------------ ------------
(879,112) 3,107,485
------------ ------------
Shares sold--Class B...................................... 417 --
------------ ------------
</TABLE>

See Notes to Financial Statements.
36
<PAGE> 41

NOTES TO FINANCIAL STATEMENTS

NOTE 1. ACCOUNTING POLICIES

ORGANIZATION--Colonial International Fund for Growth, Variable Series, (the
"Fund"), a series of Liberty Investment Trust (the "Trust") is a non-diversified
portfolio of a Massachusetts business trust, registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's investment objective is to seek long-term capital growth. The Fund's
capitalization consists of an unlimited number of shares of beneficial interest
without par value that represent a separate series of the Trust. The Fund offers
two classes of shares: Class A and Class B. Class B shares are subject to an
annual distribution fee. Each share of a Fund represents an equal proportionate
beneficial interest in that Fund and, when issued and outstanding, is fully paid
and nonassessable. Shareholders would be entitled to share proportionally in the
net assets of the Fund available for distribution to shareholders upon
liquidation of the Fund. Shares of the Trust are available and are being
marketed exclusively as a pooled funding vehicle for variable annuity contracts
("VA contracts") and Variable Life Insurance Policies ("VLI Policies") offered
by the separate accounts of the life insurance companies ("Participating
Insurance Companies"). Certain Participating Insurance Companies are affiliated
with the Investment Advisor and sub-advisors to the Fund ("Affiliated
Participating Insurance Companies"). Such Affiliated Participating Insurance
Companies are Keyport Life Insurance Company ("Keyport"), Independence Life &
Annuity Company ("Independence") and Liberty Life Assurance Company of Boston
("Liberty Life"). The Participating Insurance Companies and their separate
accounts own all the shares of the Fund. Liberty Advisory Services Corp. (the
Manager) ("LASC"), provides investment management and advisory services to the
Fund pursuant to its Management Agreements with the Trust. Colonial Management
Associates, Inc. ("Colonial") provides sub-advisory services. LASC has delegated
various administrative matters to Colonial. Colonial also provides transfer
agency and pricing and record keeping services to the Trust. Keyport Financial
Services Corp. ("KFSC") serves as the principal underwriter of the Trust with
respect to sales of shares to Affiliated Participating Insurance Companies. The
Manager, Colonial, KFSC, Keyport and Independence are wholly-owned indirect
subsidiaries of Liberty Financial Companies, Inc. ("LFC"). As of June 30, 2000,
Liberty Mutual Insurance Companies ("Liberty Mutual") owned approximately 71% of
the outstanding voting shares of LFC. Liberty Life is a subsidiary of Liberty
Mutual.

Foreign currency contracts are valued based on the weighted value of the
exchange traded contracts with similar durations.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

The value of all assets and liabilities quoted in foreign currencies is
translated into U.S. dollars at that day's exchange rates.

Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.

Class B ratios are calculated by adjusting the expense and net investment income
ratios for the Fund for the entire period by the distribution fee applicable to
Class B shares only.

FEDERAL INCOME TAXES--Consistent with the Fund's policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.

DISTRIBUTIONS TO SHAREHOLDERS--The Fund intends to distribute as dividends or
capital gains distributions, at least annually, substantially all of its net
investment income and net profits realized from the sale of investments. All
dividends and distributions are reinvested in additional shares of the Funds at
net asset value as of the record date of the distribution. Income and capital
gain distributions are

37
<PAGE> 42
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

determined in accordance with federal income tax regulations.

OTHER--Interest income is recorded on the accrual basis. Corporate actions are
recorded on ex-date (except for certain foreign securities which are recorded as
soon after ex-date as the Fund becomes aware of such), net of nonrebatable tax
withholdings. Where a high level of uncertainty as to collection exists, income
on securities is recorded net of all tax withholdings with any rebates recorded
when received.
The Fund's custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is marked-to-market
daily to ensure that the market value of the underlying assets remains
sufficient to protect the Fund. The Fund may experience costs and delays in
liquidating the collateral if the issuer defaults or enters bankruptcy.

NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES

MANAGEMENT AND SUB-ADVISORY FEES--Liberty Advisory Services Corp. (the
Manager), receives a monthly fee equal to 0.90% annually of the Fund's average
daily net assets. The Manager, out of the management fee it receives, pays
Colonial a monthly sub-advisory fee equal to 0.70% annually of the Fund's
average daily net assets.

BOOKKEEPING FEE--Colonial provides bookkeeping and pricing services for
$27,000 per year plus 0.040% of the Fund's average net assets over $50 million.

TRANSFER AGENT FEE--Liberty Funds Services, Inc. (the Transfer Agent), an
affiliate of the Advisor, provides shareholder services for an annual rate of
$7,500.

For the six months ended June 30, 2000, the Fund's operating expenses as defined
above, did not exceed the 1.75% expense limit.

OTHER--The Fund pays no compensation to its officers, all of whom are
employees of the Advisor.

The Fund's Trustees may participate in a deferred compensation plan which may be
terminated at any time. Obligations of the plan will be paid solely out of the
Fund's assets.

NOTE 4. PORTFOLIO INFORMATION

INVESTMENT ACTIVITY--During the six months ended June 30, 2000, purchases and
sales of investments, other than short term obligations, were $31,406,875 and
$38,336,252, respectively.

Unrealized appreciation (depreciation) at June 30, 2000, based on cost of
investments for both financial statements and federal income tax purposes was:

<TABLE>
<S> <C>
Gross unrealized appreciation $14,932,164
Gross unrealized depreciation (2,224,278)
-----------
Net unrealized appreciation $12,707,886
-----------
</TABLE>

38
<PAGE> 43
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

39
<PAGE> 44

--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Liberty Variable Investment Trust: Colonial International Fund for Growth,
Variable Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED) (UNAUDITED)
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 2000 JUNE 30, 2000***
---------------- ----------------
CLASS A CLASS B
---------------- ----------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.......................... $ 2.79 $2.50
------- -----
Net investment income (a)................................... 0.03 0.00
Net realized and unrealized gains (losses) on investments... (0.31) 0.01
------- -----
Total from investment operations............................ (0.28) 0.01
------- -----
Net asset value, end of year................................ $ 2.51 $2.51
------- -----
TOTAL RETURN:
Total investment return (b)................................. (10.04)%** 0.40%**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's)............................. $71,580 $ 1
Ratio of expenses to average net assets (c)................. 1.07%* 1.30%*
Ratio of net investment income to average net assets (c).... 2.20%* 1.09%*
Portfolio turnover ratio.................................... 46%** 46%**
</TABLE>

* Annualized.

** Not annualized.

*** Class B shares were initially offered on June 1, 2000. Per share data
reflects activity from that date.

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

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

40
<PAGE> 45

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year..................... $ 2.00 $ 1.78 $ 1.96 $ 1.97 $ 1.88
------- ------- ------- ------- -------
Net investment income (a).............................. 0.03 0.02 0.02 0.02 0.01
Net realized and unrealized gains (losses) on
investments.......................................... 0.78 0.21 (0.08) 0.09 0.10
------- ------- ------- ------- -------
Total from investment operations....................... 0.81 0.23 (0.06) 0.11 0.11
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income................. (0.02) (0.00) (0.02) -- (0.02)
In excess of net investment income................... -- (0.01) (0.02) -- --
Dividends from net realized gains.................... -- -- (0.08) (0.12) --
------- ------- ------- ------- -------
Total distributions.................................... (0.02) (0.01) (0.12) (0.12) (0.02)
------- ------- ------- ------- -------
Net asset value, end of year........................... $ 2.79 $ 2.00 $ 1.78 $ 1.96 $ 1.97
------- ------- ------- ------- -------
TOTAL RETURN:
Total investment return (b)............................ 40.58% 12.96% (3.27)% 5.61% 5.85%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's)........................ $82,071 $52,468 $30,600 $26,593 $22,764
Ratio of expenses to average net assets (c)............ 1.10% 1.24% 1.34% 1.40% 1.40%
Ratio of net investment income to average net assets
(c).................................................. 1.14% 0.77% 0.82% 0.84% 0.75%
Portfolio turnover ratio............................... 35% 28% 28% 115% 40%
</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.

41
<PAGE> 46

--------------------------------------------------------------------------------
PORTFOLIO MANAGERS' DISCUSSION
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

DEAR CONTRACT OWNER:

Colonial International Horizons Fund, Variable Series, seeks long-term growth
and preservation of capital purchasing power.

FUND PERFORMANCE AS OF JUNE 30, 2000

<TABLE>
<CAPTION>
CLASS A(1) B
----- ------ ------
<S> <C> <C>
Inception Date.................... 6/1/00 6/1/99
Six-month total return............ (12.35)% (12.35)%
Net asset value per share
6/30/00......................... $10.79 $10.79
Net asset value per share
12/31/99........................ -- $12.31
</TABLE>

PORTFOLIO MANAGERS' DISCUSSION

WHAT WAS THE INVESTMENT ENVIRONMENT LIKE FOR THE FUND?

During the period, uncertainty about interest rates and inflation created
volatility in U.S. markets, a trend which spilled over into Japanese and
European markets as well. Contrary to expectations, economic growth in Europe
and Japan was slow during the period. While stocks that benefit from
infrastructure improvements like cyclicals and commodities remained flat (note
oil was the exception), Japanese and European markets were led by a small group
of technology and telecommunications stocks during the period.

WHAT WAS THE FUND'S STRATEGY DURING THE PERIOD?

Having expected significant market growth in Japan and Europe, the Fund
invested heavily in economically sensitive sectors such as paper and housing.
This overweighting in cyclical stocks exerted negative influence on the Fund's
performance, resulting in disappointing returns for the period. However, the
Fund was well positioned in telecommunications and technology stocks, which led
the markets during much of the period. One of the Fund's largest holdings,
Japanese telecommunications company NTT DoCoMo, Inc. (1.9% of net assets),
posted significant gains driven largely by demand for its I-mode service, which
provides Internet access through cellular phones. Dutch phone company KPN was
also a strong performer (0.6% of net assets, respectively).

As new managers of the Fund, we feel that it is important to explain our
investment approach. In selecting stocks for the Fund, we look for quality
growth companies with strong balance sheets, a track record of earnings, and
sound management. We currently focus on six industry sectors:
telecommunications, technology, business services, consumer growth, financial
services, and health care.

WHAT IS YOUR OUTLOOK?

Volatility in U.S. markets has tended to create ripples worldwide. As the
Federal Reserve Board has been progressively raising interest rates to slow the
pace of economic growth and combat resulting inflationary pressure, the market
has experienced considerable volatility through the first four months of this
year. As the effects of these trends are felt worldwide, and as Europe and Japan
begin to show signs of long-anticipated growth, we believe that the rationale
for worldwide diversification is strong. Given that backdrop, we plan to
position the Fund in large, high-quality companies that are leaders in the
segments driving growth.

(1) Class A share (newer class shares) performance information includes returns
of the Fund's Class B shares (the oldest existing fund class) for periods
prior to the inception of the newer class shares. These Class B share
returns were not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class B shares and the newer class shares.

42
<PAGE> 47

--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (UNAUDITED)
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
COMMON STOCKS--79.0%
FINANCE, INSURANCE & REAL ESTATE--12.2%
DEPOSITORY INSTITUTIONS--6.0%
Banca Fideuram SpA.... It 13,000 $ 198,340
Deutsche Bank AG...... G 2,050 169,105
Lloyds TSB Group PLC.. UK 3,000 29,194
Nordic Baltic Holding
AB FDR.............. Sw 6,528 47,492
Standard Chartered
PLC................. UK 9,379 117,119
Svenska
Handelsbanken....... Sw 7,000 101,937
UBS AG................ Sz 200 29,282
-----------
692,469
-----------
HOLDING & OTHER INVESTMENT OFFICES--1.1%
Zurich Allied AG ..... Sz 250 123,438
-----------
HOLDING COMPANIES--1.1%
CGU PLC............... UK 2,000 31,529
Fortis (NL) NV........ Ne 1,000 29,110
Hutchison Whampoa
Ltd. ............... HK 5,000 62,856
-----------
123,495
-----------
INSURANCE CARRIERS--3.3%
AXA................... Fr 893 140,678
Aegon NV.............. Ne 4,000 142,334
Allianz AG............ G 280 101,585
-----------
384,597
-----------
NONDEPOSITORY CREDIT INSTITUTIONS--0.7%
Promise Co., Ltd...... Ja 1,000 79,042
-----------
MANUFACTURING--39.0%
CHEMICALS & ALLIED PRODUCTS--12.9%
Altana AG............. G 1,550 122,829
AstraZenca Group
PLC................. UK 2,308 107,589
Aventis SA............ Fr 700 51,093
Christian Dior SA..... Fr 435 98,638
Kao Corp.............. Ja 5,000 152,801
L'Oreal............... Fr 147 127,296
Novartis.............. Sz 80 126,636
Roche Holding AG...... Sz 10 97,280
SmithKline Beecham
PLC................. UK 10,433 138,098
Takeda Chemical
Industries Ltd...... Ja 3,000 196,944
UCB SA................ 2,948 108,306
Yamanouchi
Pharmaceutical
Co.................. Ja 3,000 163,837
-----------
1,491,347
-----------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
COMMUNICATIONS EQUIPMENT--4.6%
Nortel Networks
Corp................ 2,593 $ 176,972
Sony Corp............. Ja 1,820 169,949
Telefon LM Ericsson,
Class B............. Sw 9,422 187,052
-----------
533,973
-----------
ELECTRICAL INDUSTRIAL EQUIPMENT--1.0%
STMicroelectronics
N.V. ............... Fr 1,920 120,986
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT--2.4%
ARM Holdings PLC...... UK 4,036 41,764
Siemens AG............ G 1,100 165,410
Spirent PLC........... UK 12,000 75,911
-----------
283,085
-----------
ELECTRONIC COMPONENTS--7.3%
Alcatel............... Fr 1,350 88,548
Electrocomponents PLC... UK 5,200 53,257
Epcos AG.............. G 830 83,523
Murata Manufacturing
Co., Ltd............ Ja 2,000 287,116
Rohm Co., Ltd......... Ja 400 116,959
Royal Philips
Electronics NV...... 1,200 57,000
Samsung Electronics
GDS................. Ko 800 157,200
-----------
843,603
-----------
FOOD & KINDRED PRODUCTS--3.6%
Carrefour SA.......... Fr 1,720 117,579
Groupe Danone......... Fr 260 34,505
Ito En, Ltd........... Ja 2,100 155,093
Nestle AG, (registered
shares)............. Sz 55 110,007
-----------
417,184
-----------
MACHINERY & COMPUTER EQUIPMENT--2.5%
Canon, Inc............ Ja 3,000 149,406
Fujitsu Ltd........... Ja 4,000 138,464
-----------
287,870
-----------
MISCELLANEOUS MANUFACTURING--1.9%
Secom Co., Ltd........ Ja 3,000 219,298
-----------
PAPER PRODUCTS--0.6%
KPN NV................ Ne 1,600 71,568
-----------
</TABLE>

See Notes to Investment Portfolio.
43
<PAGE> 48
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
PRINTING & PUBLISHING--1.0%
Wolters Kluwer........ Ne 4,200 $ 111,878
-----------
STONE, CLAY, GLASS & CONCRETE--0.3%
Holderbank Financiere
Glaris AG........... Sz 25 30,630
-----------
PUBLIC ADMINISTRATION--0.9%
Human Resource
Programs Adecco
SA.................. Sz 123 104,434
-----------
RETAIL TRADE--5.7%
FOOD STORES--2.4%
Koninklijke Ahold
NV.................. Ne 5,200 153,062
Numico NV ............ Ne 2,594 123,088
-----------
276,150
-----------
GENERAL MERCHANDISE STORES--2.2%
Seven-Eleven Japan
Co., Ltd............ Ja 3,000 250,990
-----------
HOME FURNISHINGS & EQUIPMENT--0.8%
Securitas AB, Class
B................... Sw 4,146 88,205
-----------
MISCELLANEOUS RETAIL--0.3%
Pinault-Printemps
SA.................. Fr 180 39,991
-----------
SERVICES--7.8%
BUSINESS SERVICES--2.0%
CMG PLC............... UK 4,664 65,503
Capita Group PLC...... UK 2,100 51,523
Oracle Corp. Japan.... Ja 200 72,439
Oracle Corp. Japan New
Shares.............. Ja 100 36,738
-----------
226,203
-----------
COMPUTER RELATED SERVICES--3.2%
Cap Gemini SA......... Fr 489 86,138
Datacraft Asia Ltd.... 6,000 52,800
Hitachi Software
Engineering Co.,
Ltd................. Ja 1,100 119,317
Orix Corp............. Ja 800 118,091
-----------
376,346
-----------
COMPUTER SOFTWARE--1.1%
Check Point Software
Technologies Ltd.... 150 31,763
Logica PLC............ UK 2,322 55,102
SAP AG................ G 300 44,826
-----------
131,691
-----------
HEALTH SERVICES--1.1%
Sanofi-Synthelabo
SA.................. Fr 2,579 122,869
-----------
OTHER SERVICES--0.4%
Randstad Holding NV... Ne 1,300 48,096
-----------
</TABLE>

<TABLE>
<CAPTION>
COUNTRY
ABBREV. SHARES VALUE
------- ----------- -----------
<S> <C> <C> <C>
TRANSPORTATION, COMMUNICATION, ELECTRIC, GAS &
SANITARY SERVICES--13.8%
COMMUNICATIONS--3.6%
Cable & Wireless
PLC................. UK 5,600 $ 93,080
Carlton Communications
PLC................. UK 3,000 38,567
Intershop
Communications AG... G 47 21,225
Vodafone AirTouch
PLC................. UK 65,452 262,437
-----------
415,309
-----------
ELECTRIC SERVICES--0.2%
Endesa SA............. Sp 1,050 20,340
-----------
GAS SERVICES--0.7%
BG PLC................ UK 5,333 34,469
Centrica PLC.......... UK 13,000 43,358
-----------
77,827
-----------
TELECOMMUNICATION--9.3%
Altran Technologies
SA.................. Fr 200 39,164
COLT Telecom Group
PLC................. UK 2,000 66,761
Cable & Wireless HKT
Ltd................. HK 8,600 18,379
China Telecom Ltd..... HK 6,000 53,399
NTT Mobile
Communication
Network, Inc........ Ja 8 216,563
Nokia Oyj............. Fi 5,053 257,862
SK Telecom Co. Ltd.
ADR................. Ko 600 21,788
Seat Pagine Gialle
SPA................. It 23,000 79,932
Sonera Group Oyj...... Fi 1,200 54,707
Tele Norte Leste
Participacoes SA
ADR................. Sp 50 1,181
Telecom Italia Mobile
SPA................. It 14,128 144,464
Telefonica de
Espana.............. Mx 1,900 121,719
-----------
1,075,919
-----------
WHOLESALE TRADE--0.5%
DURABLE GOODS
Li & Fung Ltd......... HK 12,399 62,030
-----------
TOTAL COMMON STOCKS
(cost of $8,742,338).......................... 9,130,863
-----------
</TABLE>

See Notes to Investment Portfolio.
44
<PAGE> 49
--------------------------------------------------------------------------------
INVESTMENT PORTFOLIO (CONTINUED)
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
PAR VALUE
----------- -----------
<S> <C> <C> <C>
SHORT-TERM OBLIGATIONS--21.3%
Repurchase agreement
with SBC Warburg
Ltd., dated 06/30/00,
due 7/03/00 at 6.60%,
collateralized by U.S. Treasury
notes with various maturities to
2026, market value $2,511,637
(repurchase proceeds
$2,461,353)..................... $2,460,000 $ 2,460,000
-----------
OTHER ASSETS & LIABILITIES, NET--(0.3)%......... (27,623)
-----------
NET ASSETS--100%................................ $11,563,240
-----------
</TABLE>

(a) Non-income producing security.
(b) Cost for federal income tax purposes is the same.

SUMMARY OF SECURITIES BY COUNTRY

<TABLE>
<CAPTION>
% OF TOTAL
SUMMARY OF SECURITIES COUNTRY SECURITIES
BY COUNTRY ABBREV. VALUE AT VALUE
--------------------- ------- ---------- ----------
<S> <C> <C> <C>
Japan Ja $2,643,047 28.9
United Kingdom UK 1,305,261 14.3
France Fr 1,067,485 11.7
Germany G 708,503 7.8
Netherlands Ne 679,136 7.4
Switzerland Sz 621,707 6.8
United States 426,841 4.7
Sweden Sw 424,686 4.7
Italy It 422,736 4.6
Finland Fi 312,569 3.4
Hong Kong HK 196,664 2.2
Korea Ko 178,988 2.0
Mexico Mx 121,719 1.3
Spain Sp 21,521 0.2
---------- -----
$9,130,863 100.0%
---------- -----
</TABLE>

Certain securities are listed by country of underlying exposure but may trade
predominantly on other exchanges.

<TABLE>
<CAPTION>
ACRONYM NAME
------- ----
<S> <C>
ADR American Depositary Receipt
</TABLE>

See Notes to Financial Statements.

45
<PAGE> 50

--------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES (UNAUDITED)
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series / June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
ASSETS:
Investments, at market value (identified cost $8,742,338)... $ 9,130,863
Short-term obligations...................................... 2,460,000
Receivable for investments sold............................. 1,838,046
Receivable for fund shares sold............................. 156,381
Dividends and interest receivable........................... 23,243
Expense reimbursement due from Manager...................... 37,751
Other....................................................... 2,691
-----------
TOTAL ASSETS........................................... 13,648,975
-----------
LIABILITIES:
Cash (including foreign currencies)......................... 1,530,496
Payable for fund shares repurchased......................... 476,464
Accrued:
Management fee............................................ 8,782
Bookkeeping fee........................................... 2,550
Distribution fee--Class B................................. 1,803
Transfer agent fee........................................ 749
Other....................................................... 64,891
-----------
TOTAL LIABILITIES...................................... 2,085,735
-----------
NET ASSETS.................................................. $11,563,240
-----------
NET ASSETS REPRESENTED BY:
Paid-in capital........................................... $11,679,868
Undistributed net investment income....................... 47,638
Accumulated net realized losses on investments and foreign
currency transactions.................................. (539,328)
Net unrealized appreciation on investments and foreign
currency transactions.................................. 375,062
-----------
TOTAL NET ASSETS APPLICABLE TO OUTSTANDING SHARES OF
BENEFICIAL INTEREST....................................... $11,563,240
-----------
NET ASSETS APPLICABLE TO CLASS A SHARES..................... $ 1,036
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS A.......... 96
-----------
NET ASSET VALUE PER SHARE--CLASS A.......................... $10.79
-----------
NET ASSETS APPLICABLE TO CLASS B SHARES..................... $11,562,204
-----------
SHARES OF BENEFICIAL INTEREST OUTSTANDING--CLASS B.......... 1,071,323
-----------
NET ASSET VALUE PER SHARE--CLASS B.......................... $ 10.79
-----------
</TABLE>

See Notes to Financial Statements.

46
<PAGE> 51

--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED)
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series
For the Six Months Ended June 30, 2000
--------------------------------------------------------------------------------

<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $ 79,561
Interest.................................................... 60,327
-----------
Total investment income (net of nonrebatable foreign
taxes withheld at source which amounted to $11,266)... 139,888
-----------
EXPENSES:
Management fee............................................ 45,875
Bookkeeping fee........................................... 13,650
Distribution fee--Class B................................. 13,022
Transfer agent fee........................................ 3,791
Audit fee................................................. 5,260
Printing expense.......................................... 1,244
Trustees' expense......................................... 3,232
Custodian fee............................................. 3,436
Legal fee................................................. 594
Miscellaneous expense..................................... 951
-----------
Total expenses......................................... 91,055
-----------
Less:
Expense reimbursable by Manager........................... (24,139)
-----------
Net expenses................................................ 66,916
-----------
Net investment income....................................... 72,972
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized losses on investments........................ (475,795)
Net realized losses on foreign currency transactions...... (58,289)
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (825,909)
-----------
Net decrease in net assets resulting from operations........ $(1,287,021)
-----------
</TABLE>

See Notes to Financial Statements.

47
<PAGE> 52

--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Liberty Variable Investment Trust: Colonial International Horizons Fund,
Variable Series
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS PERIOD
ENDED ENDED
JUNE 30, DECEMBER 31,
2000 1999*
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 72,972 $ 25,852
Net realized losses on investments........................ (475,795) (5,245)
Net realized gains (losses) on foreign currency
transactions........................................... (58,289) 9,298
Net change in unrealized appreciation/depreciation on
investments and foreign currency transactions.......... (825,909) 1,200,971
----------- ----------
Net increase (decrease) in net assets resulting from
operations................................................ (1,287,021) 1,230,876
----------- ----------
DISTRIBUTIONS DECLARED FROM:
Net investment income..................................... -- (25,852)
In excess of net investment income........................ -- (36,446)
----------- ----------
Total distributions......................................... -- (62,298)
----------- ----------
FUND SHARE TRANSACTIONS:
Proceeds from fund shares sold--Class A................... 1,000 --
----------- ----------
Proceeds from fund shares sold--Class B................... 5,897,435 6,730,094
Cost of fund shares repurchased--Class B.................. (755,162) (253,982)
Distributions reinvested--Class B......................... -- 62,298
----------- ----------
5,142,273 6,538,410
----------- ----------
Net increase in net assets resulting from fund share
transactions.............................................. 5,143,273 6,538,410
----------- ----------
Total increase in net assets................................ 3,856,252 7,706,988
NET ASSETS:
Beginning of period....................................... 7,706,988 --
----------- ----------
End of period............................................. $11,563,240 $7,706,988
----------- ----------
Undistributed (overdistributed) net investment income
included in ending net assets............................. $ 47,638 $ (25,334)
----------- ----------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST:
Shares sold--Class A...................................... 96 --
----------- ----------
Shares sold--Class B...................................... 513,731 643,267
Shares repurchased--Class B............................... (68,383) (22,594)
Distributions reinvested--Class B......................... -- 5,302
----------- ----------
445,348 625,975
----------- ----------
</TABLE>

* For the period from the commencement of operations June 1, 1999 to December
31, 1999.

See Notes to Financial Statements.

48
<PAGE> 53

NOTES TO FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION AND ACCOUNTING POLICIES

ORGANIZATION--Colonial International Horizons Fund, Variable Series (the
"Fund"), a series of Liberty Variable Investment Trust, (the "Trust") is a
non-diversified portfolio of a Massachusetts business trust, registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund's investment objective is to seek long-term growth
and preservation of capital purchasing power. The Fund's capitalization consists
of an unlimited number of shares of beneficial interest without par value that
represents a separate series of the Trust. The Fund offers two classes of
shares: Class A and Class B. Class B shares are subject to an annual
distribution fee. Each share of the Fund represents an equal proportionate
beneficial interest in that Fund and, when issued and outstanding, is fully paid
and nonassessable. Shareholders would be entitled to share proportionally in the
net assets of the Fund available for distribution to shareholders upon
liquidation of the Fund. Shares of the Trust are available and are being
marketed exclusively as a pooled funding vehicle for variable annuity contracts
("VA contracts") and Variable Life Insurance Policies ("VLI Policies") offered
by the separate accounts of the life insurance companies ("Participating
Insurance Companies"). Certain Participating Insurance Companies are affiliated
with the Investment Advisor and sub-advisers to the Fund ("Affiliated
Participating Insurance Companies"). Such Affiliated Participating Insurance
Companies are Keyport Life Insurance Company ("Keyport"), Independence Life &
Annuity Company ("Independence") and Liberty Life Assurance Company of Boston
("Liberty Life"). The Participating Insurance Companies and their separate
accounts own all the shares of the Fund. Liberty Advisory Services Corp. (the
"Manager") ("LASC"), provides investment management and advisory services to the
Fund pursuant to its Management Agreements with the Trust. Colonial Management
Associates, Inc. ("Colonial") provides sub-advisory services. LASC has delegated
various administrative matters to Colonial. Keyport Financial Services Corp.
("KFSC") serves as the principal underwriter of the Trust with respect to sales
of shares to Affiliated Participating Insurance Companies. The Manager,
Colonial, KFSC, Keyport, and Independence are wholly-owned indirect subsidiaries
of Liberty Financial Companies, Inc. ("LFC"). As of June 30, 2000, Liberty
Mutual Insurance Companies ("Liberty Mutual") owned approximately 71% of the
outstanding voting shares of LFC. Liberty Life is a subsidiary of Liberty
Mutual.