COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES
SUPPLEMENT TO PROSPECTUSES DATED MAY 1, 2000 AND JUNE 1, 2000
(REPLACING SUPPLEMENTS DATED JUNE 1, 2000)
The Fund's Prospectuses are amended as follows:
Under the Fund's description the caption PRIMARY INVESTMENT STRATEGIES is
revised in its entirety as follows:
The Fund seeks to achieve its investment goals by investing in:
o debt securities issued by the U.S. government;
o debt securities issued by foreign governments; and
o lower-rated corporate debt securities.
Colonial allocates the Fund's investments among these types of securities at any
given time based on its estimate of the expected performance and risk of each
type of investment.
The Fund pursues its investment goals by investing a portion of its assets in
lower-rated corporate debt securities. These securities have the following
ratings:
o BB through C by Standard & Poor's Ratings Services;
o Ba through D by Moody's Investors Service, Inc.;
o a comparable rating by another nationally recognized rating service; or
o the security is unrated and the advisor believes it to be comparable in
quality to securities having such ratings as noted above.
The Fund may invest in securities issued or guaranteed by foreign governments or
foreign companies, including securities issued in emerging market countries.
Additional strategies that are not primary investment strategies and the risks
associated with them are described below under "Other Investment Strategies and
Risks."
Effective September 19, 2000, Laura A. Ostrander began co-managing the Fund.
Under the sub-caption, COLONIAL, under the section INVESTMENT SUB-ADVISORS AND
PORTFOLIO MANAGERS, the paragraph referring to Carl C. Ericson is revised in its
entirety and the following paragraph referring to Laura A. Ostrander is added:
Carl C. Ericson has co-managed the Strategic Income Fund since its inception in
July, 1994. He also has co-managed the High Yield Fund since January, 1999. Mr.
Ericson, a senior vice president of Colonial Management Associates, Inc.
(Colonial) and director of Colonial's Taxable Fixed Income Group, has managed
various other Colonial taxable income funds since 1985.
Laura A. Ostrander, a senior vice president of Colonial, has co-managed the
Strategic Income Fund since September, 2000 and has co-managed various other
Colonial funds since December, 1996. Prior to joining Colonial, Ms. Ostrander
was a portfolio manager with American Express Financial Advisers from July, 1994
to November, 1996.
Effective June 1, 2000, the Fund began offering a new class of shares. The new
class of shares is designated Class B shares. The existing class of shares is
designated Class A shares. The classes differ only in that each share class has
its own expense structure.
ANN-36/229D-0900 October 6, 2000
