LIBERTY VARIABLE INVESTMENT TRUST, 485BPOS, 2000-04-25

LIBERTY VARIABLE INVESTMENT TRUST
485BPOS, 2000-04-25

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Registration Nos: 33-59216
811-7556

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / X /

Pre-Effective Amendment No. / /

Post-Effective Amendment No. 21 / X /

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 / X /

Amendment No. 22 / X /
(Check appropriate box or boxes)

LIBERTY VARIABLE INVESTMENT TRUST
(Exact Name of Registrant as Specified in Charter)

One Financial Center, Boston, Massachusetts 02111
(Address of Principal Executive Offices)

617-426-3750
(Registrant's Telephone Number, including Area Code)

<TABLE>
<CAPTION>
Name and Address of
Agent for Service Copy to

<S> <C>
Nancy L. Conlin, Esq. John M. Loder, Esq.
Colonial Management Associates, Inc. Ropes & Gray
One Financial Center One International Place
Boston, MA 02111 Boston, MA 02110-2624
</TABLE>

It is proposed that this filing will become effective (check appropriate box):

/ / Immediately upon filing pursuant to paragraph (b).

/ X / On May 1, 2000 pursuant to paragraph (b).

/ / 60 days after filing pursuant to paragraph (a)(1).

/ / on (date) pursuant to paragraph (a)(1).

/ / 75 days after filing pursuant to paragraph (a)(2).

/ / on (date) pursuant to paragraph (a)(2) of Rule 485.

If appropriate, check the following box:

/ / this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.

An indefinite number of shares of beneficial interest of all existing and
subsequently created series of the Trust under the Securities Act of 1933 were
registered by the Registration Statement filed on March 18, 1993 under the
Securities Act of 1933 pursuant to Rule 24f-2. A Rule 24f-2 Notice with respect
to the fiscal year ended December 31, 1996 was filed on or about February 28,
1997.
<PAGE>

LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED MAY 1, 2000

Colonial Growth and Income Fund, Variable Series
Stein Roe Global Utilities Fund, Variable Series
Colonial Small Cap Value Fund, Variable Series
Colonial U.S. Growth & Income Fund, Variable Series
Colonial Strategic Income Fund, Variable Series
Colonial High Yield Securities Fund, Variable Series
Liberty All-Star Equity Fund, Variable Series
Colonial International Fund for Growth, Variable Series
Newport Tiger Fund, Variable Series
Colonial International Horizons Fund, Variable Series
Colonial Global Equity Fund, Variable Series
Crabbe Huson Real Estate Investment Fund, Variable Series

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

* * * *

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

* * * *

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

Not FDIC Insured May Lose Value
No Bank Guarantee

<PAGE>

TABLE OF CONTENTS

THE TRUST

THE FUNDS....................................................... 4

<TABLE>

<S> <C>
Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History
Colonial Growth and Income Fund, Variable
Series........................................................... 4
Stein Roe Global Utilities Fund, Variable
Series...........................................................
Colonial Small Cap Value Fund, Variable
Series...........................................................
Colonial U.S. Growth & Income Fund, Variable
Series...........................................................
Colonial Strategic Income Fund, Variable Series..................
Colonial High Yield Securities Fund, Variable Series.............
Liberty All-Star Equity Fund, Variable Series....................
Colonial International Fund for Growth, Variable Series..........
Newport Tiger Fund, Variable Series..............................
Colonial International Horizons Fund, Variable Series............
Colonial Global Equity Fund, Variable Series.....................
Crabbe Huson Real Estate Investment Fund, Variable Series........

TRUST MANAGEMENT ORGANIZATIONS

The Trustees.....................................................
Investment Advisor: Liberty Advisory Services Corp..............
Investment Sub-Advisors and Portfolio Managers...................
Rule 12b-1 Plan..................................................

OTHER INVESTMENT STRATEGIES AND RISKS

U.S. Government Securities.......................................
Structure Risk...................................................
Zero Coupon Bonds................................................
Convertible Securities...........................................
Derivative Strategies............................................
Temporary Defensive Strategies...................................

FINANCIAL HIGHLIGHTS

SHAREHOLDER INFORMATION

Purchases and Redemptions........................................
How the Funds Calculate Net Asset Value..........................
Dividends and Distributions......................................
Tax Consequences.................................................
</TABLE>

2
<PAGE>
THE TRUST

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

<TABLE>
<CAPTION>
FUND SUB-ADVISOR

<S> <C>
Colonial Growth and Income Fund, Variable Series (Growth & Income Fund) Colonial Management Associates, Inc.
Colonial International Fund for Growth, Variable Series (International Fund) (Colonial)
Colonial U.S. Growth & Income Fund, Variable Series (U.S. Growth & Income Fund)
(formerly Colonial U.S. Stock Fund, Variable Series) Colonial Small Cap Value
Fund, Variable Series (Small Cap Fund) Colonial Strategic Income Fund, Variable
Series (Strategic Income Fund) Colonial High Yield Securities Fund, Variable
Series (High Yield Fund) Colonial International Horizons Fund, Variable Series
(International Horizons Fund) Colonial Global Equity Fund, Variable Series
(Global Equity Fund)

Stein Roe Global Utilities Fund, Variable Series (Global Utilities Fund) Stein Roe & Farnham Incorporated
(Stein Roe)

Newport Tiger Fund, Variable Series (Tiger Fund) Newport Fund Management, Inc.
(Newport)

Liberty All-Star Equity Fund, Variable Series (All-Star Equity Fund) Liberty Asset Management Company (LAMCO)

Crabbe Huson Real Estate Investment Fund, Variable Series (Real Estate Fund) Crabbe Huson Group, Inc.
(Crabbe Huson)
</TABLE>

Other Funds may be added to or deleted from the Trust from time to time.

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

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

3
<PAGE>
THE FUNDS

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks primarily income and long-term capital growth and, secondarily,
preservation of capital.

PRIMARY INVESTMENT STRATEGIES

The Fund invests in both U.S. and foreign common stocks. In selecting stocks for
the Fund, Colonial invests primarily in "value" stocks. Colonial generally
selects stocks which, when purchased, fall into one of the following categories:

1. Companies whose current business activities provide earnings,
dividends or assets that represent above average value;

2. Companies which have a record of consistent earnings growth
that may provide above average stability or value in turbulent
markets; or

3. Companies with anticipated business growth prospects that
represent above average value.

Colonial assesses whether a company's prospects are "above average." Colonial
makes this judgment subjectively, based upon available information.

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

PRIMARY INVESTMENT RISKS

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

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

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

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

4
<PAGE>
THE FUNDS Colonial Growth and Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

BAR GRAPH
1994 -0.76%
1995 30.03%
1996 17.89%
1997 28.97%
1998 11.13%
1999 5.55%

The Fund's year-to-date total return through March 31, 2000 was -1.59%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +16.92%

Worst quarter: 3rd quarter 1998, -13.57%

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

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 5.55 18.32 14.52
- -------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 22.46(1)
- -------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 17.74(1)
- -------------------------------------------------------------------------------------------------
</TABLE>

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

5
<PAGE>
STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

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

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

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

PRIMARY INVESTMENT RISKS

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

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

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

6
<PAGE>
THE FUNDS Stein Roe Global Utilities Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

BAR GRAPH

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

The Fund's year-to-date total return through March 31, 2000 was +8.05%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 28.63 23.06 15.04
- ----------------------------------------------------------------------------------------------------
MSCI Index (%) N/A 24.93 19.76 16.86(2)
- ----------------------------------------------------------------------------------------------------
S&P Index (%) N/A -8.88 13.66 9.11(2)
- ----------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 15.40 19.64 12.14(2)
</TABLE>

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

7
<PAGE>
COLONIAL SMALL CAP VALUE FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term growth.

PRIMARY INVESTMENT STRATEGIES

Under normal market conditions, the Fund invests primarily in small
capitalization stocks of U.S. companies. These are stocks with market
capitalizations of less than the market capitalization of the stock in the
Russell 2000 Index that has the largest capitalization at the time of purchase.
The remainder of the Fund's assets may be invested in other stocks, or in bonds
that are rated or considered by the advisor to be investment-grade. In managing
the Fund, Colonial uses a value investing strategy that focuses on buying stocks
cheaply when they are undervalued or "out of favor." Colonial buys stocks that
have attractive current prices, consistent operating performance and/or
favorable future growth prospects. Colonial's strategy uses fact-based
quantitative analysis supported by fundamental business and financial analysis.

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

PRIMARY INVESTMENT RISKS

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

Smaller companies are more likely than larger companies to have limited product
lines, operating histories, markets or financial resources. They may depend
heavily on a small management team. Stocks of smaller companies may trade less
frequently, may trade in smaller volumes and may fluctuate more sharply in price
than stocks of larger companies. In addition, they may not be widely followed by
the investment community, which can lower the demand for their stock.

8
<PAGE>

THE FUNDS Colonial Small Cap Value Fund, Variable Series

PERFORMANCE HISTORY

The bar chart below shows the Fund's performance by illustrating the Fund's
calendar year total returns. The performance table following the bar chart shows
how the Fund's average annual returns compare with those of a broad measure of
market performance for 1 year and the life of the Fund. The Fund's return is
compared to the Russell 2000 Index (Russell Index), an unmanaged index that
tracks the performance of small-capitalization stocks traded on the New York
Stock Exchange, American Stock Exchange and the NASDAQ. Unlike the Fund, indices
are not investments, do not incur fees or expenses and are not professionally
managed. It is not possible to invest directly in indices. The Fund's return is
also compared to the average return of the funds included in the Lipper Small
Cap-Annuities Funds category average (Lipper Average). This Lipper Average,
which is calculated by Lipper, Inc., is composed of funds with similar
investment objectives to the Fund. Sales charges are not reflected in the Lipper
Average. The chart and table are intended to illustrate some of the risks of
investing in the Fund by showing the changes in the Fund's performance. All
returns include the reinvestment of dividends and distributions. Performance
results include the effect of expense reduction arrangements, if any. If these
arrangements were not in place, then the performance results would have been
lower. Any expense reduction arrangements may be discontinued at any time. As
with all mutual funds, past performance does not predict the Fund's future
performance. The Fund's performance results do not reflect the cost of insurance
and separate account charges which are imposed under your VA contract or VLI
policy.

CALENDAR YEAR TOTAL RETURNS

[BAR GRAPH]

1999 6.34%

The Fund's year-to-date total return through March 31, 2000 was +1.43%.

For period shown in bar chart:

Best quarter: 2nd quarter 1999, +16.78%

Worst quarter: 1st quarter 1999, -13.27%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR FUND
<S> <C> <C> <C>
Fund (%) 5/19/98 6.34 (4.85)
- ------------------------------------------------------------------------------------
Russell Index (%) N/A 21.26 4.01(3)
- ------------------------------------------------------------------------------------
Lipper Average (%) N/A 37.57 12.97 (3)
</TABLE>

(3) Performance information is from April 30, 1998

9
<PAGE>

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

INVESTMENT GOALS

The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES

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

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

- debt securities that are convertible into common stock;

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

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

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

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

PRIMARY INVESTMENT RISKS

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

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

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

10
<PAGE>

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

11
<PAGE>

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

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C>
1995 29.70%
1996 21.84%
1997 32.23%
1998 20.15%
1999 12.00%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was +0.40%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

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

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Fund (%) 7/5/94 12.00 22.97 21.64
- -------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 26.73(4)
- -------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 20.42(4)
</TABLE>

(4) Perfomance information is June 30, 1994.

12
<PAGE>
COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

The Fund seeks to achieve its investment goals by investing in:

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

- debt securities issued by foreign governments; and

- lower-rated corporate debt securities.

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

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

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

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

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

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

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."

PRIMARY INVESTMENT RISKS

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

13
<PAGE>
THE FUNDS Colonial Strategic Income Fund, Variable Series

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

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

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

14
<PAGE>
THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C>
1995 18.30%
1996 9.83%
1997 9.11%
1998 6.03%
1999 1.78%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was -0.10%.

For period shown in bar chart:

Best quarter: 1st quarter 1995, +5.62%

Worst quarter: 1st quarter 1997, -1.00%

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

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

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

(5) Peformance information is from June 30, 1994.

15
<PAGE>
COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks current income and total return.

PRIMARY INVESTMENT STRATEGIES

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

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

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

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

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

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

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

PRIMARY INVESTMENT RISKS

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

16
<PAGE>
THE FUNDS Colonial High Yield Securities Fund, Variable Series

17
<PAGE>
THE FUNDS Colonial High Yield Securities Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C>
1999 1.65%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was -1.36%.

For period shown in bar chart:

Best quarter: 1st quarter 1999, +3.11%

Worst quarter: 3rd quarter 1999, -1.90%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR LIFE OF THE
DATE ------ FUND
---- ----
<S> <C> <C> <C>
Fund (%) 5/19/98 1.65 (0.59)
- --------------------------------------------------------------------------------------
CS Index (%) N/A 3.28 0.06(6)
- --------------------------------------------------------------------------------------
Lipper Average (%) N/A 4.04 (0.28)(6)
</TABLE>

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

18
<PAGE>
LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks total investment return, comprised of long-term capital
appreciation and current income, through investment primarily in a diversified
portfolio of equity securities.

PRIMARY INVESTMENT STRATEGIES

Under normal market conditions, the Fund invests primarily in equity and equity
related securities, which include common stocks, bonds convertible into stocks,
warrants and other rights to purchase stocks.

The Fund's sub-advisor, LAMCO, utilizes a multi-manager concept. LAMCO allocates
the Fund's portfolio assets on an approximately equal basis among a number of
independent investment management organizations (Portfolio Managers). There are
five Portfolio Managers as of the date of this prospectus, each of which employs
a different investment style. LAMCO attempts to rebalance the portfolio among
the Portfolio Managers so as to maintain an approximately equal allocation of
the portfolio among them throughout all market cycles.

In LAMCO's opinion, the multi-manager concept provides advantages over the use
of a single manager for the following reasons:

- - Most equity investment management firms consistently employ a distinct
investment "style" which causes them to emphasize stocks with
particular characteristics;

- - Because of changing investor preferences, any given investment style
will move into and out of market favor and will result in better
investment performance under certain market conditions, but less
successful performance under other conditions;

- - Consequently, by allocating the Fund's portfolio on an approximately
equal basis among Portfolio Managers employing different styles, the
impact of any one style on investment performance will be diluted, and
the investment performance of the total portfolio will be more
consistent and less volatile over the long term than if a single style
were employed throughout the entire period; and

- - More consistent performance at a given annual rate of return over time
produces a higher rate of return for the long term than more volatile
performance having the same average annual rate of return.

The Fund's current Portfolio Managers and investment styles are as follows:

- - J. P. Morgan Investment Management Inc. uses a value approach by
investing in companies that are diversified across all sectors and that
are undervalued relative to the firm's projected growth rates.

- - Oppenheimer Capital uses a value approach by investing in companies
that exhibit the ability to generate excess cash flow while earning
high returns on invested capital.

- - Boston Partners Asset Management, L.P. uses a value approach by
investing in companies with low price-to-earnings and price-to-book
ratios where a catalyst for positive change has been identified.

- - Westwood Management Corporation uses a growth approach by investing in
growth companies selling at reasonable valuations based on the firm's
earnings projections which are not yet reflected in consensus
estimates.

- - TCW Investment Management Company incorporates secular growth trends
and uses a "bottom-up" approach by investing in primarily large-cap
companies that have distinct business model advantages.

LAMCO continuously monitors the performance and investment styles of the Fund's
Portfolio Managers and from time to time may recommend changes of Portfolio
Managers based on factors such as:

- - Changes in a Portfolio Manager's investment style or a departure by a
Portfolio Manager from the investment style for which it had been
selected;

- - A deterioration in a Portfolio Manager's performance relative to that
of other investment management firms practicing a similar style; or

- - Adverse changes in its ownership or personnel.

19
<PAGE>
THE FUNDS Liberty All-Star Equity Fund, Variable Series

LAMCO also may recommend Portfolio Manager changes to change the mix of
investment styles employed by the Fund's Portfolio Managers. The Board of
Trustees must approve all Portfolio Manager changes. LAMCO is also the manager
of Liberty All-Star Equity Fund, a multi-managed, closed-end fund and Liberty
All-Star Growth & Income Fund, a multi-managed open-ended fund. These funds have
the same investment objective and investment program as the Fund, and currently
have the same Portfolio Managers. LAMCO expects that these funds will make
corresponding changes if and when Portfolio Managers are changed in the future.

The Fund will remain substantially fully invested during periods when stock
prices generally rise and also during periods when they generally decline. The
Fund is intended to be a long-term investment vehicle and is not designed to
provide a means of speculating on short-term stock market movements.

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

PRIMARY INVESTMENT RISKS

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

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

20
<PAGE>
THE FUNDS Liberty All-Star Equity Fund, Variable Series

PERFORMANCE HISTORY

The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year and the life of the
Fund. The Fund's return is compared to the Russell 3000 Index (Russell Index), a
capitalization weighted total return index which is comprised of 3000 of the
largest capitalized U.S. domiciled companies whose common stock is traded in the
United States on the New York Stock Exchange, American Stock Exchange and
NASDAQ. Unlike the Fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in indices. The Fund's return is also compared to the average return of
the funds included in the Lipper Growth & Income - Annuities Funds category
average (Lipper Average). This Lipper Average, which is calculated by Lipper,
Inc., is composed of funds with similar investment objectives to the Fund. Sales
charges are not reflected in the Lipper Average. The chart and table are
intended to illustrate some of the risks of investing in the Fund by showing the
changes in the Fund's performance. All returns include the reinvestment of
dividends and distributions. Performance results include the effect of expense
reduction arrangements, if any. If these arrangements were not in place, then
the performance results would have been lower. Any expense reduction
arrangements may be discontinued at any time. As with all mutual funds, past
performance does not predict the Fund's future performance. The Fund's
performance results do not reflect the cost of insurance and separate account
charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

[Bar Graph]

1998 18.67%
1999 8.47%

The Fund's year-to-date total return through March 31, 2000 was +5.21%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +18.67%

Worst quarter: 3rd quarter 1998, -12.05%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR LIFE OF THE
DATE ------ FUND
---- ----
<S> <C> <C> <C>
Fund (%) 11/17/97 8.47 13.05
- -------------------------------------------------------------------------------------
Russell Index (%) N/A 20.90 23.85(7)
- -------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 16.24(7)
</TABLE>

(7) Performance information is from October 31, 1997.

21
<PAGE>
COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital growth.

PRIMARY INVESTMENT STRATEGIES

Under normal market conditions, the Fund invests primarily in equity securities
of companies located outside the United States. The Fund may invest in equity
securities located in any foreign country, including emerging market countries.
The Fund may invest in companies of any size, including small capitalization
stocks. The Fund may also invest in high-quality foreign government debt
securities. The Fund generally diversifies its holdings across several different
countries and regions.

The Fund may invest up to 10% of its assets in shares of other investment
companies. Investing in investment companies may involve payment of duplicate
fees because the Fund, as a shareholder, will indirectly pay a portion of the
other investment company's expenses.

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

PRIMARY INVESTMENT RISKS

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

As a non-diversified mutual fund, the Fund is allowed to invest or hold greater
than 10% of outstanding voting securities of any issuer (more than 5% of its
total assets in the securities of a single issuer). This may concentrate issuer
risk and, therefore, the Fund may have an increased risk of loss compared to a
similar diversified mutual fund.

22
<PAGE>
THE FUNDS Colonial International Fund for Growth, Variable Series

countries may be new and developing rapidly, which may cause instability. These
countries are also more likely to experience high levels of inflation, deflation
or currency devaluations, which could hurt their economies and securities
markets.

23
<PAGE>
THE FUNDS Colonial International Fund for Growth, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[Bar Graph]

1995 5.85%
1996 5.61%
1997 -3.27%
1998 12.96%
1999 40.58%

The Fund's year-to-date total return through March 31, 2000 was -1.08%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +23.31%

Worst quarter: 3rd quarter 1998, -16.04%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
---- ------ ------- ----
<S> <C> <C> <C> <C>
Fund (%) 5/2/94 40.58 11.42 8.81
- ---------------------------------------------------------------------------------------------------
MSCI Index (%) N/A 26.96 12.83 11.21(8)
- ---------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 43.23 17.36 14.16(8)
</TABLE>

(8) Performance information is from April 30, 1994.

24
<PAGE>
NEWPORT TIGER FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital appreciation.

PRIMARY INVESTMENT STRATEGIES

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

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

PRIMARY INVESTMENT RISKS

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

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

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

25
<PAGE>
THE FUNDS Newport Tiger Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[Bar Graph]

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

The Fund's year-to-date total return through March 31, 2000 was +1.91%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +37.93%

Worst quarter: 2nd quarter 1998, -28.81%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR FUND
---- ------ ----
<S> <C> <C> <C>
Fund (%) 5/1/95 68.01 7.31

MSCI Index (%) N/A 31.00 15.72(9)

Lipper Average (%) N/A 79.74 4.24(9)
</TABLE>

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

26
<PAGE>

COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks long-term growth and preservation of capital purchasing power.

PRIMARY INVESTMENT STRATEGIES

The Fund invests primarily in non-U.S. equity securities which Colonial believes
will provide superior long-term growth. Colonial generally selects stocks of
companies in industries and markets that it believes will react favorably to
inflation in the U.S. economy. Inflation sensitive companies in which the Fund
may invest include:

- - companies engaged in the development and processing of natural
resources, and

- - companies engaged in consumer-oriented businesses.

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

PRIMARY INVESTMENT RISKS

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

As a non-diversified mutual fund, the Fund is allowed to invest a greater
percentage of its total assets in the securities of a single company (and hold
greater than 10% of outstanding voting securities of any issuer). Therefore, the
Fund may have an increased risk of loss compared to a similar diversified mutual
fund.

PERFORMANCE HISTORY

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

27
<PAGE>

The Fund's return is compared to the Morgan Stanley Capital International EAFE
GDP Index, an unmanaged index that tracks the performance of equity securities
of developed countries outside North America. Unlike the Fund, indices are not
investments, do not incur fees or expenses and are not professionally managed.
It is not possible to invest directly in indices.

28
<PAGE>
COLONIAL GLOBAL EQUITY FUND, VARIABLE SERIES
--------------------------------------------

INVESTMENT GOAL
- --------------------------------------------------------------------------------

The Fund seeks long-term growth by investing primarily in global equity
securities.

PRIMARY INVESTMENT STRATEGIES
- --------------------------------------------------------------------------------

Under normal market conditions, the Fund invests primarily in both U.S. and
foreign equity securities. The Fund may invest in companies of any size,
including small capitalization stocks. The Fund may also invest in high quality
U.S. and foreign government debt securities. The Fund generally diversifies its
holdings across several different countries and regions.

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

PRIMARY INVESTMENT RISKS

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

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

PERFORMANCE HISTORY
- --------------------------------------------------------------------------------

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

The Fund's return is compared to the Morgan Stanley Capital International World
GDP Index, an unmanaged price index that tracks the performance of global
stocks. Unlike the Fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in indices.

29
<PAGE>

CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES
---------------------------------------------------------

INVESTMENT GOALS
- --------------------------------------------------------------------------------

The Fund seeks to provide growth of capital and current income.

PRIMARY INVESTMENT STRATEGIES
- --------------------------------------------------------------------------------

Under normal market conditions, the Fund invests at least 75% of its total
assets in equity securities of real estate investment trusts (REITs) and other
real estate industry companies. In managing the Fund, the sub-advisor follows a
basic value contrarian approach in selecting securities for its portfolio.

The contrarian approach puts primary emphasis on security price, balance sheet
and cash flow analysis and on the relationship between the market price of a
security and its estimated intrinsic value as a share of an ongoing business.

REITs are pooled investment vehicles that invest primarily in income producing
real estate or real estate related loans or interest. The Fund's REIT
investments will consist primarily of equity REITs which invest the majority of
their assets directly in real estate and derive income primarily from rents.

Other real estate industry companies in which the Fund may invest are companies
that derive at least 50% of their revenues or profits from either (a) the
ownership, development, construction, financing, management or sale of
commercial, industrial or residential real estate or (b) products or services
related to the real estate industry, such as building supplies or mortgage
servicing.

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

PRIMARY INVESTMENT RISKS
- --------------------------------------------------------------------------------

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

The Fund may invest in equity real estate investment trusts (REITs). REITs are
entities which either own properties or make construction or mortgage loans.
Equity REITs may also include operating or finance companies. Investing in REITs
involves certain unique risks in addition to those risks associated with the
real estate industry in general. The prices of equity REITs are affected by
changes in the value of the underlying property owned by the REITs. REITs are
subject to heavy cash flow dependency and default by borrowers. In addition,
although the Fund does not invest directly in real estate, a REIT investment by
the Fund is subject to certain of the risks associated with the ownership of
real estate. These risks include possible declines in the value of real estate,
risks related to general and local economic conditions, possible lack of
availability of mortgage funds, and changes in interest rates.

The basic value contrarian approach is based on Crabbe Huson's belief that the
securities of many companies often sell at a discount from the securities'
estimated intrinsic value. The Fund attempts to identify and invest in such
undervalued securities in the hope that their market price will rise to their
estimated intrinsic value. If Crabbe Huson's assessment of a company's prospects
is wrong, the price of its stock may not approach the value Crabbe Huson has
placed on it.

PERFORMANCE HISTORY
- --------------------------------------------------------------------------------

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

30
<PAGE>

indices are not investments, do not incur fees or expenses and are not
professionally managed. It is not possible to invest directly in indices.

31
<PAGE>

TRUST MANAGEMENT ORGANIZATIONS
------------------------------

THE TRUSTEES
- --------------------------------------------------------------------------------

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

INVESTMENT ADVISOR: LIBERTY ADVISORY SERVICES CORP.
- --------------------------------------------------------------------------------

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

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

<TABLE>
<S> <C>
Colonial Growth and Income Fund, Variable Series 0.65%
Stein Roe Global Utilities Fund, Variable Series 0.65%
Colonial Small Cap Value Fund, Variable Series 0.80% (1)
Colonial U.S. Growth & Income Fund, Variable Series 0.80%
Colonial Strategic Income Fund, Variable Series 0.65%
Colonial High Yield Securities Fund, Variable Series 0.60% (2)
Liberty All-Star Equity Fund, Variable Series 0.80%
Colonial International Fund for Growth, Variable Series 0.90%
Newport Tiger Fund, Variable Series 0.90%
Colonial International Horizons Fund, Variable Series 0.95%(3)
Colonial Global Equity Fund, Variable Series 0.95%(4)
Crabbe Huson Real Estate Investment Fund, Variable Series 1.00%(5)
</TABLE>

(1) The Small Cap Fund's advisor has voluntarily agreed to waive its
management fee and reimburse other expenses so that total expenses of the
Fund (excluding interest, taxes, 12b-1, brokerage and extraordinary
expenses) do not exceed 1.00%. As a result the actual management fee paid
to the advisor for the 1999 fiscal year was 0.00%.

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

(3) The International Horizons Fund's advisor has voluntarily agreed to waive
its management fee and reimburse other expenses so that the total expenses
of the Fund (excluding interest, taxes, 12b-1, brokerage and extraordinary
expenses) do not exceed 1.15%. As a result the actual management fee paid
to the advisor for the 1999 fiscal year was 0.00%.

(4) The Global Equity Fund's advisor has voluntarily agreed to waive its
management fee and reimburse other expenses so that total expenses of the
Fund (excluding interest, taxes, 12b-1, brokerage and extraordinary
expenses) do not exceed 1.15%. As a result the actual management fee paid
to the advisor for the 1999 fiscal year was 0.12%.

(5) The Real Estate Fund's advisor has voluntarily agreed to waive its
management fee and reimburse other expenses so that total expenses of the
Fund (excluding interest, taxes, 12b-1, brokerage and extraordinary
expenses) do not exceed 1.20%. As a result the actual management fee paid
to the advisor for the 1999 fiscal year was 0.00%.

32
<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

INVESTMENT SUB-ADVISORS AND PORTFOLIO MANAGERS
- --------------------------------------------------------------------------------

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

COLONIAL

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

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

<TABLE>
<S> <C>
Colonial Growth and Income Fund, Variable Series 0.45%
Colonial Small Cap Value Fund, Variable Series 0.60%
Colonial U.S. Growth & Income Fund, Variable Series 0.60%
Colonial Strategic Income Fund, Variable Series 0.45%
Colonial High Yield Securities Fund, Variable Series 0.40%
Colonial International Fund for Growth, Variable Series 0.70%
Colonial International Horizons Fund, Variable Series 0.75%
Colonial Global Equity Fund, Variable Series 0.75%
</TABLE>

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

Scott Schermerhorn, a senior vice president of Colonial, has managed the Growth
& Income Fund since November, 1999. Mr. Schermerhorn has managed various other
funds at Colonial since October, 1998. From May, 1996 to October, 1998, Mr.
Schermerhorn was the head of the value team at Federated Investors, where he
managed the American Leader Fund, Federated Stock Trust and Federated Stock and
Bond Fund, as well as other institutional accounts. From February, 1990 to May,
1996, Mr. Schermerhorn was a portfolio manager and a member of the growth and
income team at J&W Seligman.

James P. Haynie, a senior vice president of Colonial, has co-managed the Small
Cap Fund since 1993.

Michael Rega, a vice president of Colonial, has co-managed the Small Cap Fund
since 1996. He was an analyst at Colonial from 1993 to 1996.

Mark Stoeckle has managed the U.S. Growth & Income Fund since December, 1996.
Mr. Stoeckle is a senior vice president of Colonial. Prior to joining Colonial
in October, 1996, Mr. Stoeckle was a portfolio manager at Massachusetts
Financial Services Company from January, 1993 to October, 1996.

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

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

33
<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

Charles R. Roberts, a senior vice president of Colonial, has been the lead
manager for the International Fund and International Horizons Fund since March,
2000. Mr. Roberts is also a senior vice president of Newport and Newport Pacific
Management, Inc. (Newport Pacific), an affiliate of Colonial. Mr. Roberts has
been employed with Newport and Newport Pacific since November, 1998. Prior to
joining Newport and Newport Pacific, he managed the European component of
institutional international equity accounts at Progress Investment Management
(Progress) since 1997. Prior to joining Progress in 1997, he managed the
European component of institutional international equity accounts and was a
member of the investment policy committee at Sit/Kim International (Sit/Kim)
since prior to 1994.

Michael Ellis, a senior vice president of Colonial, has co-managed the
International Fund and International Horizons Fund since March, 2000. Mr. Ellis
is also a senior vice president of Newport and Newport Pacific. Prior to joining
Newport and Newport Pacific in December, 1996, he was a vice president at
Matthews International Capital Management since September, 1991.

Deborah Snee, a Vice President of Colonial and Europe analyst at Colonial, Stein
Roe and Newport, has co-managed the International Fund and International
Horizons Fund since March, 2000. Prior to working at Newport, Ms. Snee spent
five years at Sit/Kim as an emerging markets analyst.

Ophelia Barsketis, a senior vice president of Colonial, has co-managed the
Global Equity Fund since March, 2000. Ms. Barsketis joined Stein Roe, an
affiliate of Colonial, in 1983 and progressed through a variety of equity
analyst positions before assuming her current responsibilities, which include
managing other Stein Roe and Colonial funds.

Deborah A. Jansen, a senior vice president of Colonial and senior research
analyst for global and domestic equities and global economic forecasting for
Stein Roe, has co-managed the Global Equity Fund since March, 2000. Ms. Jansen
joined Stein Roe in 1987 and served as an associate economist and senior
economist before assuming her current responsibilities, which include managing
other Stein Roe and Colonial Funds. Ms. Jansen left Stein Roe in January, 1995
and returned to her position as a vice president in March, 1996. From June 5,
1995 through June 30, 1995, Ms. Jansen was a senior equity research analyst for
BancOne Investment Advisers Corporation.

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

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

STEIN ROE

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

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

Ophelia Barsketis, a senior vice president of Stein Roe, has co-managed the
Global Utilities Fund since November, 1997.

34
<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

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

LAMCO AND LAMCO'S PORTFOLIO MANAGERS

LAMCO, an investment advisor since 1985, is the Sub-Advisor of the All-Star
Equity Fund. LAMCO's principal address is 600 Atlantic Avenue, 23rd Floor,
Boston, Massachusetts 02210. As of March 31, 2000, LAMCO managed over $1.8
billion in assets.

LASC, out of the management fees it receives from the Trust, pays LAMCO a
sub-advisory fee at the annual rate of 0.60% of the average daily net assets of
the All-Star Equity Fund.

LAMCO is a manager of other investment managers which LAMCO recommends to the
Board of Trustees for appointment pursuant to portfolio management agreements
among the Trust, LAMCO and the Portfolio Managers. The management agreements
permit each Portfolio Manager to have full investment discretion and authority
over investment of a portion of the Fund's assets.

Out of the management fees it receives from LASC, LAMCO pays each Portfolio
Manager a fee at the annual rate of 0.30% of the average daily net assets of the
portion of the Fund's assets assigned to that Portfolio Manager.

No one individual at LAMCO is responsible for LAMCO's investment management of
the All-Star Equity Fund. The following individuals who work for the indicated
Portfolio Managers manage a portion of All-Star Equity Fund's assets:

- - Henry D. Cavanna, Managing Director of J.P. Morgan Investment Management,
Inc.

- - John Lindenthal, Managing Director of Oppenheimer Capital

- - Mark Donovan, Chairman, Equity Strategy Committee, of Boston Partners
Asset Management, L.P.

- - Susan M. Byrne, President and Chief Executive Officer of Westwood
Management Corp.

- - Glen E. Bickerstaff, Managing Director - U.S. Equities of TCW Investment
Management Company

A more complete description of each Portfolio Manager is included in the
Statement of Additional Information. The Trust and LAMCO have received an
exemptive order from the SEC that permits the All-Star Equity Fund to change
Portfolio Managers without a vote of the shareholders. Information regarding any
new Portfolio Manager is sent to holders of VA contracts and VLI policies within
90 days following the effective date of the change.

NEWPORT

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

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

35
<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

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

CRABBE HUSON

Crabbe Huson, an investment advisor since 1980, is the Sub-Advisor of the Real
Estate Fund. Crabbe Huson's principal address is 121 S.W. Morrison, Suite 1400,
Portland, Oregon 97204. As of March 31, 2000, Crabbe Huson managed over $267
million in assets.

LASC, out of the management fees it receives from the Trust, pays Crabbe Huson a
sub-advisory fee at the annual rate of 0.80% of the average daily net assets of
the Real Estate Fund.

Michael B. Stokes has managed the Real Estate Fund since its inception in June,
1999. Mr. Stokes joined Crabbe Huson in August, 1996. Prior to joining Crabbe
Huson, he was a financial analyst for Salomon Brothers from July, 1994 to June,
1996.

AFFILIATED BROKER/DEALER

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

RULE 12B-1 PLAN

The Trust has adopted a plan for and on behalf of the International Horizons
Fund, Global Equity Fund and Real Estate Fund in accordance with Rule 12b-1
(Plan) under the Investment Company Act of 1940. The Plan allows the Fund to pay
distribution fees for the sale and distribution of their shares. Under the plan,
the Trust pays the distributor a fee of 0.25% of the average daily net assets
attributable to the Funds' shares. Because these fees are an ongoing expense,
over time they increase the cost of an investment and the shares willcost more
than shares that are not subject to a service fee.

36
<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

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

U.S. GOVERNMENT SECURITIES

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

STRUCTURE RISK

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

ZERO COUPON BONDS

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

37
<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

CONVERTIBLE SECURITIES

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

DERIVATIVE STRATEGIES

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

TEMPORARY DEFENSIVE STRATEGIES

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

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

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

38
<PAGE>

FINANCIAL HIGHLIGHTS

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

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 16.39 15.34 13.96 12.60 10.03
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.17 0.20 0.28 0.28 0.29
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on
investments 0.69 1.50 3.75 1.98 2.72
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.86 1.70 4.03 2.26 3.01
- -------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.15) (0.18) (0.27) (0.28) (0.25)
- -------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- (0.00) (0.01) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains (3.85) (0.47) (2.37) (0.62) (0.19)
- -------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains (0.07) (0.00) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions (4.07) (0.65) (2.65) (0.90) (0.44)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) .. 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) ($) 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>

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

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

39
<PAGE>

FINANCIAL HIGHLIGHTS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 13.76 11.92 10.70 10.50 8.11
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.28 0.24 0.46 0.46 0.46
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses)
on investments 3.63 1.93 2.62 0.23 2.39
- ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.91 2.17 3.08 0.69 2.85
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.23) (0.21) (0.48) (0.49) (0.46)
- ---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- (0.01) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on investments (0.29) (0.11) (1.38) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.52) (0.33) (1.86) (0.49) (0.46)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 17.15 13.76 11.92 10.70 10.50
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 28.63 18.33 28.75 6.53 35.15
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 110,150 71,186 54,603 47,907 51,597
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 0.77 0.82 0.83 0.81 0.83
- ---------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%)(c) 1.91 1.90 3.96 4.36 4.98
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 52 53 89 14 18
</TABLE>

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

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

40
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL SMALL CAP VALUE FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Year Ended Period Ended
December 31, December 31,
1999 1998***
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 8.59 10.00
- ------------------------------------------------------------------------------------
Net investment income (a) 0.02 0.08
- ------------------------------------------------------------------------------------
Net realized and unrealized gains
(losses) on investments 0.52 (1.41)
- ------------------------------------------------------------------------------------
Total from investment operations 0.54 (1.33)
- ------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.01) (0.07)
- ------------------------------------------------------------------------------------
In excess of net investment income -- (0.01)
- ------------------------------------------------------------------------------------
Total distributions (0.01) (0.08)
- ------------------------------------------------------------------------------------
Net asset value, end of year 9.12 8.59
- ------------------------------------------------------------------------------------
TOTAL RETURN
Total investment return (%)(b)(c) 6.34 (13.25)**
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 3,817 1,782
- ------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 1.00 1.00*
- ------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.23 1.41*
- ------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 74 51**
</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, these ratios would have been 3.66%
and 4.32% (annualized), respectively.

41
<PAGE>

FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 18.79 16.29 14.22 12.36 10.27
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.14 0.16 0.20 0.19 0.21
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on investments 2.07 3.12 4.37 2.52 2.84
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.21 3.28 4.57 2.71 3.05
- --------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.11) (0.12) (0.18) (0.17) (0.16)
- --------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- (0.01) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on
investments (1.04) (0.64) (2.30) (0.68) (0.80)
- --------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains -- (0.02) (0.01) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.15) (0.78) (2.50) (0.85) (0.96)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 19.85 18.79 16.29 14.22 12.36
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b) 12.00 20.15 32.23 21.84 29.70(c)
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 212,355 146,239 96,715 60,855 43,017
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d) 0.88 0.90 0.94 0.95 1.00(e)
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.69 0.88 1.19 1.39 1.72(c)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 101 64 63 77 115
</TABLE>

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

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

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

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

42
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 11.08 11.15 11.04 10.99 9.79
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.95 0.91 0.90 0.92 0.55
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses)
on investments and foreign currency transactions (0.75) (0.24) 0.11 0.16 1.24
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.20 0.67 1.01 1.08 1.79
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.84) (0.72) (0.79) (0.96) (0.56)
- ----------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- (0.02) (0.05) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains -- -- (0.05) (0.07) (0.03)
- ----------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains -- -- (0.01) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.84) (0.74) (0.90) (1.03) (0.59)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.44 11.08 11.15 11.04 10.99
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b) 1.78 6.03 9.11(c) 9.83(c) 18.30(c)
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 170,702 118,985 73,175 53,393 48,334
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (e) 0.75 0.78 0.80(d) 0.80(d) 0.84(d)
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (e) 8.57 7.92 7.86(c) 8.13(c) 8.08(c)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 35 50 94 114 281
</TABLE>

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

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

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

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

43
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Year Ended Period Ended
December 31, December 31,
1999 1998***
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C>
Net asset value, beginning of year ($) 9.31 10.00
- --------------------------------------------------------------------------------------------------
Net investment income (a) 0.88 0.48
- --------------------------------------------------------------------------------------------------
Net realized and unrealized losses (0.72) (0.74)
- --------------------------------------------------------------------------------------------------
Total from investment operations 0.16 (0.26)
- --------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.62) (0.43)
- --------------------------------------------------------------------------------------------------
In excess of net investment income -- (0.00)
- --------------------------------------------------------------------------------------------------
Total distributions (0.62) (0.43)
- --------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 8.85 9.31
- --------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b)(c) 1.65 (2.57)**
- --------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 15,358 5,915
- --------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 0.80 0.80*
- --------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%)
(c)(d) 9.36 7.93*
- --------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 16 23**
</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, these ratios would have been 1.28% and
1.84% (annualized), respectively.

44
<PAGE>

FINANCIAL HIGHLIGHTS

LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Year Ended December 31, Period Ended
December
31,
1999 1998 1997***
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 11.90 10.07 10.00
- ----------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.06 0.06 0.01
- ----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on investments 0.94 1.82 0.07
- ----------------------------------------------------------------------------------------------------------------
Total from investment operations 1.00 1.88 0.08
- ----------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.01)
- ----------------------------------------------------------------------------------------------------------------
Dividends form net realized gains on investments (0.38) -- --
- ----------------------------------------------------------------------------------------------------------------
Total distributions (0.43) (0.05) (0.01)
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 12.47 11.90 10.07
- ----------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 8.47 18.67(c) 0.80**(c)
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 80,095 44,870 22,228
- ----------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d) 0.95 1.00(e) 1.00*(e)
- ----------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.47 0.54(c) 0.83*(c)
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 75 70 1**
</TABLE>

* Annualized.

** Not Annualized.

*** For the period from the commencement of operations November 17, 1997
to December 31, 1997.

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

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

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

(e) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, these ratios would have been 1.04%
and 1.45% (annualized), respectively.

45
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 2.00 1.78 1.96 1.97 1.88
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.03 0.02 0.02 0.02 0.01
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) on
investments 0.78 0.21 (0.08) 0.09 0.10
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.81 0.23 (0.06) 0.11 0.11
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.02) (0.00) (0.02) -- (0.02)
- ----------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- (0.01) (0.02) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains -- -- (0.08) (0.12) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.02) (0.01) (0.12) (0.12) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 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 period (000) ($) 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.

46
<PAGE>

FINANCIAL HIGHLIGHTS

NEWPORT TIGER FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31, Period Ended
December 31,
1999 1998 1997 1996 1995***
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 1.57 1.71 2.52 2.28 2.00
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.03 0.03 0.03 0.03 0.01
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) on investments 1.04 (0.14) (0.81) 0.24 0.29
- ----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.07 (0.11) (0.78) 0.27 0.30
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Distributions from net investment income (0.02) (0.03) (0.02) (0.02) (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- (0.01) -- (0.01)
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.02) (0.03) (0.03) (0.03) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 2.62 1.57 1.71 2.52 2.28
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 68.01 (6.43) (31.14) 11.73 15.00**
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 46,125 23,655 24,934 34,642 18,977
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 1.21 1.30 1.25 1.27 1.75*
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%)(c) 1.65 2.16 1.14 1.20 0.89*
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 12 16 27 7 12**
</TABLE>

* Annualized.

** Not Annualized.

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

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

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

47
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 10.00
- ---------------------------------------------------------------------------
Net investment income (a) 0.06
- ---------------------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currency transactions 2.36
- ---------------------------------------------------------------------------
Total from investment operations 2.42
- ---------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.05)
- ---------------------------------------------------------------------------
In excess of net investment income (0.06)
- ---------------------------------------------------------------------------
Total distributions (0.11)
- ---------------------------------------------------------------------------
Net asset value, end of period ($) 12.31
- ---------------------------------------------------------------------------
TOTAL RETURN
Total investment return (%)(b)(c) 24.24**
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 7,707
- ---------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 1.40*
- ---------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.85*
- ---------------------------------------------------------------------------
Portfolio turnover ratio (%) 1**
</TABLE>

* Annualized.

** Not Annualized.

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

(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 2.36%
(annualized).

48
<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL GLOBAL EQUITY FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 10.00
- ---------------------------------------------------------------------------
Net investment income (a) 0.04
- ---------------------------------------------------------------------------
Net realized and unrealized losses on investments 1.22
- ---------------------------------------------------------------------------
Total from investment operations 1.26
- ---------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.05)
- ---------------------------------------------------------------------------
Total distributions (0.05)
- ---------------------------------------------------------------------------
Net asset value, end of period ($) 11.21
- ---------------------------------------------------------------------------
TOTAL RETURN
Total investment return (%)(b)(c) 12.57**
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 7,284
- ---------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 1.40*
- ---------------------------------------------------------------------------
Ratio of net investment income to 0.55*
average net assets (%) (d)
- ---------------------------------------------------------------------------
Portfolio turnover ratio (%) 1**
</TABLE>

* Annualized.

** Not Annualized.

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

(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 2.23%
(annualized).

49
<PAGE>

FINANCIAL HIGHLIGHTS

CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 10.00
- ---------------------------------------------------------------------------
Net investment income (a) 0.31
- ---------------------------------------------------------------------------
Net realized and unrealized losses on investments (1.70)
- ---------------------------------------------------------------------------
Total from investment operations (1.39)
- ---------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.22)
- ---------------------------------------------------------------------------
Return of capital (0.05)
- ---------------------------------------------------------------------------
Total distributions (0.27)
- ---------------------------------------------------------------------------
Net asset value, end of period ($) 8.34
- ---------------------------------------------------------------------------
TOTAL RETURN
Total investment return (%)(b)(c) (13.80)**
- ---------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 2,180
- ---------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 1.45*
- ---------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 5.90*
- ---------------------------------------------------------------------------
Portfolio turnover ratio (%) 57**
</TABLE>

* Annualized.

** Not Annualized.

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

(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 4.25%
(annualized).

50
<PAGE>

SHAREHOLDER INFORMATION

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

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

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

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

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

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

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

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

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

51
<PAGE>

FOR MORE INFORMATION
- --------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

INVESTMENT COMPANY ACT FILE NUMBER:

Liberty Variable Investment Trust : 811-07556

Colonial Growth and Income Fund, Variable Series
Stein Roe Global Utilities Fund, Variable Series
Colonial Small Cap Value Fund, Variable Series Colonial
U.S. Growth & Income Fund, Variable Series
Colonial Strategic Income Fund, Variable Series
Colonial High Yield Securities Fund, Variable Series
Liberty All-Star Equity Fund, Variable Series
Colonial International Fund for Growth, Variable Series
Newport Tiger Fund, Variable Series
Colonial International Horizons Fund, Variable Series
Colonial Global Equity Fund, Variable Series
Crabbe Huson Real Estate Investment Fund, Variable Series

<PAGE>

LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED MAY 1, 2000

Colonial Growth and Income Fund, Variable Series

Stein Roe Global Utilities Fund, Variable Series

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

Colonial Strategic Income Fund, Variable Series

Liberty All-Star Equity Fund, Variable Series

Colonial International Fund for Growth, Variable Series

Newport Tiger Fund, Variable Series

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

* * * *

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

* * * *

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

<PAGE>
TABLE OF CONTENTS

<TABLE>
<S> <C>
THE TRUST ............................................................. 3

THE FUNDS ............................................................. 4

Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History
Colonial Growth and Income Fund, Variable Series ...................... 4
Stein Roe Global Utilities Fund, Variable Series ...................... 6
Colonial U.S. Growth & Income Fund, Variable Series ................... 8
Colonial Strategic Income Fund, Variable Series........................ 10
Liberty All-Star Equity Fund, Variable Series.......................... 13
Colonial International Fund for Growth, Variable Series................ 16
Newport Tiger Fund, Variable Series.................................... 18

TRUST MANAGEMENT ORGANIZATIONS ........................................ 20

The Trustees........................................................... 20
Investment Advisor: Liberty Advisory Services Corp.................... 20
Investment Sub-Advisors and Portfolio Managers......................... 20

OTHER INVESTMENT STRATEGIES AND RISKS ................................. 23

U.S. Government Securities............................................. 23
Structure Risk......................................................... 23
Zero Coupon Bonds...................................................... 23
Convertible Securities................................................. 23
Derivative Strategies.................................................. 24
Temporary Defensive Strategies......................................... 24

FINANCIAL HIGHLIGHTS .................................................. 25

SHAREHOLDER INFORMATION ............................................... 32

Purchases and Redemptions.............................................. 32
How the Funds Calculate Net Asset Value................................ 32
Dividends and Distributions............................................ 32
Tax Consequences....................................................... 32
</TABLE>

<PAGE>
THE TRUST

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

<TABLE>
<CAPTION>
FUND SUB-ADVISOR
---- --
<S> <C>
Colonial Growth and Income Fund, Variable Series (Growth & Income Fund) Colonial Management Associates, Inc.
Colonial International Fund for Growth, Variable Series (International Fund) (Colonial)
Colonial U.S. Growth & Income Fund, Variable Series (U.S. Growth & Income
Fund) (formerly Colonial U.S. Stock Fund, Variable Series)
Colonial Strategic Income Fund, Variable Series (Strategic Income Fund)

Stein Roe Global Utilities Fund, Variable Series (Global Utilities Fund) Stein Roe & Farnham Incorporated
(Stein Roe)

Newport Tiger Fund, Variable Series (Tiger Fund) Newport Fund Management, Inc.
(Newport)

Liberty All-Star Equity Fund, Variable Series (All-Star Equity Fund) Liberty Asset Management Company (LAMCO)
</TABLE>

Other Funds may be added to or deleted from the Trust from time to time.

<PAGE>
THE FUNDS

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks primarily income and long-term capital growth and, secondarily,
preservation of capital.

PRIMARY INVESTMENT STRATEGIES

1. Companies whose current business activities provide earnings,
dividends or assets that represent above average value;

2. Companies which have a record of consistent earnings growth
that may provide above average stability or value in turbulent
markets; or

3. Companies with anticipated business growth prospects that
represent above average value.

Colonial assesses whether a company's prospects are "above average." Colonial
makes this judgment subjectively, based upon available information.

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

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial Growth and Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

<TABLE>

The Fund's year-to-date total return through March 31, 2000 was -1.59%%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +16.92%

Worst quarter: 3rd quarter 1998, -13.57%

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

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 5.55 18.32 14.52
S&P Index (%) N/A 21.03 28.54 22.46(1)
Lipper Average (%) N/A 14.63 21.86 17.74(1)
</TABLE>

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

<PAGE>
STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
THE FUNDS Stein Roe Global Utilities Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1994 -10.27%
1995 35.15%
1996 6.53%
1997 28.75%
1998 18.33%
1999 28.63%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was +8.05%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 28.63 23.06 15.04

MSCI Index (%) N/A 24.93 19.76 16.86(2)

S&P Index (%) N/A -8.88 13.66 9.11(2)

Lipper Average (%) N/A 15.40 19.64 12.14(2)
</TABLE>

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

<PAGE>
COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES

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

- debt securities that are convertible into common stock;

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

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

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial U.s. Growth & Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was +0.40%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

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

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 12.00 22.97 21.64
S&P Index (%) N/A 21.03 28.54 26.73(3)
Lipper Average (%) N/A 14.63 21.86 20.42(3)
</TABLE>

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

<PAGE>
COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

The Fund seeks to achieve its investment goals by investing in:

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

- debt securities issued by foreign governments; and

- lower-rated corporate debt securities.

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

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

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

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

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

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

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."

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1995 18.30%
1996 9.83%
1997 9.11%
1998 6.03%
1999 1.78%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was -0.10%.

For period shown in bar chart:

Best quarter: 1st quarter 1995, +5.62%

Worst quarter: 1st quarter 1997, -1.00%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
INCEPTION 1 YEAR 5 YEARS LIFE OF THE
DATE FUND

<S> <C> <C> <C> <C>
Fund (%) 7/5/94 1.78 8.88 8.26
Lehman Index (%) N/A (2.15) 7.61 7.06(4)
Lipper Average (%) N/A 0.76 7.84 7.03(4)
</TABLE>

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

<PAGE>
LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks total investment return, comprised of long-term capital
appreciation and current income, through investment primarily in a diversified
portfolio of equity securities.

PRIMARY INVESTMENT STRATEGIES

In LAMCO's opinion, the multi-manager concept provides advantages over the use
of a single manager for the following reasons:

- Most equity investment management firms consistently employ a
distinct investment "style" which causes them to emphasize
stocks with particular characteristics;

- Because of changing investor preferences, any given investment
style will move into and out of market favor and will result
in better investment performance under certain market
conditions, but less successful performance under other
conditions;

- Consequently, by allocating the Fund's portfolio on an
approximately equal basis among Portfolio Managers employing
different styles, the impact of any one style on investment
performance will be diluted, and the investment performance of
the total portfolio will be more consistent and less volatile
over the long term than if a single style were employed
throughout the entire period; and

- More consistent performance at a given annual rate of return
over time produces a higher rate of return for the long term
than more volatile performance having the same average annual
rate of return.

The Fund's current Portfolio Managers and investment styles are as follows:

- J. P. Morgan Investment Management Inc. uses a value approach
by investing in companies that are diversified across all
sectors and that are undervalued relative to the firm's
projected growth rates.

- Oppenheimer Capital uses a value approach by investing in
companies that exhibit the ability to generate excess cash
flow while earning high returns on invested capital.

- Boston Partners Asset Management, L.P. uses a value approach
by investing in companies with low price-to-earnings and
price-to-book ratios where a catalyst for positive change has
been identified.

- Westwood Management Corporation uses a growth approach by
investing in growth companies selling at reasonable valuations
based on the firm's earnings projections which are not yet
reflected in consensus estimates.

- TCW Investment Management Company incorporates secular growth
trends and uses a "bottom-up" approach by investing in
primarily large-cap companies that have distinct business
model advantages.

LAMCO continuously monitors the performance and investment styles of the Fund's
Portfolio Managers and from time to time may recommend changes of Portfolio
Managers based on factors such as:

- Changes in a Portfolio Manager's investment style or a
departure by a Portfolio Manager from the investment style for
which it had been selected;

- A deterioration in a Portfolio Manager's performance relative
to that of other investment management firms practicing a
similar style; or

- Adverse changes in its ownership or personnel.

<PAGE>
THE FUNDS Liberty All-Star Equity Fund, Variable Series

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
THE FUNDS Liberty All-Star Equity Fund, Variable Series

PERFORMANCE HISTORY

The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year and the life of the
Fund. The Fund's return is compared to the Russell 3000 Index (Russell Index), a
capitalization weighted total return index which is comprised of 3000 of the
largest capitalized U.S. domiciled companies whose common stock is traded in the
United States on the New York Stock Exchange, American Stock Exchange and
NASDAQ. Unlike the Fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in indices. The Fund's return is also compared to the average return of
the funds included in the Lipper Growth & Income - Annuities Funds category
average (Lipper Average). This Lipper Average, which is calculated by Lipper,
Inc., is composed of funds with similar investment objectives to the Fund. Sales
charges are not reflected in the Lipper Average. The chart and table are
intended to illustrate some of the risks of investing in the Fund by showing the
changes in the Fund's performance. All returns include the reinvestment of
dividends and distributions. Performance results include the effect of expense
reduction arrangements, if any. If these arrangements were not in place, then
the performance results would have been lower. Any expense reduction
arrangements may be discontinued at any time. As with all mutual funds, past
performance does not predict the Fund's future performance. The Fund's
performance results do not reflect the cost of insurance and separate account
charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1998 18.67%
1999 8.47%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was +5.21%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +18.67%

Worst quarter: 3rd quarter 1998, -12.05%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION 1 YEAR LIFE OF THE
DATE FUND
<S> <C> <C> <C>
Fund (%) 11/17/97 8.47 13.05
Russell Index (%) N/A 20.90 23.85(5)
Lipper Average (%) N/A 14.63 16.24(5)
</TABLE>

(5) Performance information is from October 31, 1997.

<PAGE>
COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital growth.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial International Fund for Growth, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1995 5.85%
1996 5.61%
1997 -3.27%
1998 12.96%
1999 40.58%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was -1.08%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +23.31%

Worst quarter: 3rd quarter 1998, -16.04%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 5/2/94 40.58 11.42 8.81

MSCI Index (%) N/A 26.96 12.83 11.21(6)

Lipper Average (%) N/A 43.23 17.36 14.16(6)
</TABLE>

(6) Performance information is from April 30, 1994.

<PAGE>
NEWPORT TIGER FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital appreciation.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was +1.91%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +37.93%

Worst quarter: 2nd quarter 1998, -28.81%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
INCEPTION LIFE OF THE
DATE 1 YEAR FUND
<S> <C> <C> <C>
Fund (%) 5/1/95 68.01 7.31

MSCI Index (%) N/A 31.00 15.72(7)

Lipper Average (%) N/A 79.74 4.24(7)
</TABLE>

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

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

THE TRUSTEES

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

INVESTMENT ADVISOR: LIBERTY ADVISORY SERVICES CORP.

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

<S> <C>
Colonial Growth and Income Fund, Variable Series 0.65%
Stein Roe Global Utilities Fund, Variable Series 0.65%
Colonial U.S. Growth & Income Fund, Variable Series 0.80%
Colonial Strategic Income Fund, Variable Series 0.65%
Liberty All-Star Equity Fund, Variable Series 0.80%
Colonial International Fund for Growth, Variable Series 0.90%
Newport Tiger Fund, Variable Series 0.90%
</TABLE>

INVESTMENT SUB-ADVISORS AND PORTFOLIO MANAGERS

COLONIAL

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

LASC, out of the management fees it receives from the Trust, pays Colonial
sub-advisory fees at the following annual rates of the average daily net assets
of each specified Fund:
<TABLE>
<S> <C>
Colonial Growth and Income Fund, Variable Series 0.45%
Colonial U.S. Growth & Income Fund, Variable Series 0.60%
Colonial Strategic Income Fund, Variable Series 0.45%
Colonial International Fund for Growth, Variable Series 0.70%
</TABLE>

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

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

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

Charles R. Roberts, a senior vice president of Colonial, has been the lead
manager for the International Fund since March, 2000. Mr. Roberts is also a
senior vice president of Newport and Newport Pacific Management, Inc. (Newport
Pacific), an affiliate of Colonial. Mr. Roberts has been employed with Newport
and Newport Pacific since November, 1998. Prior to joining Newport and Newport
Pacific, he managed the European component of institutional international equity
accounts at Progress Investment Management (Progress) since 1997. Prior to
joining Progress in 1997, he managed the European component of institutional
international equity accounts and was a member of the investment policy
committee at Sit/Kim International (Sit/Kim) since prior to 1994.

Michael Ellis, a senior vice president of Colonial, has co-managed the
International Fund since March, 2000. Mr. Ellis is also a senior vice president
of Newport and Newport Pacific. Prior to joining Newport and Newport Pacific in
December, 1996, he was a vice president at Matthews International Capital
Management since September, 1991.

Deborah Snee, a Vice President of Colonial and Europe analyst at Colonial, Stein
Roe and Newport, has co-managed the International Fund since March, 2000. Prior
to working at Newport, Ms. Snee spent five years at Sit/Kim as an emerging
markets analyst.

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

STEIN ROE

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

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

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

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

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

LAMCO AND LAMCO'S PORTFOLIO MANAGERS

LASC, out of the management fees it receives from the Trust, pays LAMCO a
sub-advisory fee at the annual rate of 0.60% of the average daily net assets of
the All-Star Equity Fund.

- - Henry D. Cavanna, Managing Director of J.P. Morgan Investment
Management, Inc.

- - John Lindenthal, Managing Director of Oppenheimer Capital

- - Mark Donovan, Chairman, Equity Strategy Committee, of Boston Partners
Asset Management, L.P.

- - Susan M. Byrne, President and Chief Executive Officer of Westwood
Management Corp.

- - Glen E. Bickerstaff, Managing Director - U.S. Equities of TCW
Investment Management Company

NEWPORT

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

AFFILIATED BROKER/DEALER

<PAGE>
OTHER INVESTMENT STRATEGIES AND RISKS

U.S. GOVERNMENT SECURITIES

STRUCTURE RISK

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

ZERO COUPON BONDS

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

CONVERTIBLE SECURITIES

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

<PAGE>
OTHER INVESTMENT STRATEGIES AND RISKS

DERIVATIVE STRATEGIES

TEMPORARY DEFENSIVE STRATEGIES

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES
<TABLE>
<CAPTION>

Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 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 -- (0.00) (0.01) -- --

Dividends from net realized gains (3.85) (0.47) (2.37) (0.62) (0.19)

In excess of net realized gains (0.07) (0.00) -- -- --

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) ($) 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>

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 13.76 11.92 10.70 10.50 8.11

Net investment income (a) 0.28 0.24 0.46 0.46 0.46

Net realized and unrealized gains (losses)
on investments 3.63 1.93 2.62 0.23 2.39

Total from investment operations 3.91 2.17 3.08 0.69 2.85

Less distributions:
Dividends from net investment income (0.23) (0.21) (0.48) (0.49) (0.46)

In excess of net investment income -- (0.01) -- -- --

Dividends from net realized gains on investments (0.29) (0.11) (1.38) -- --

Total distributions (0.52) (0.33) (1.86) (0.49) (0.46)

Net asset value, end of year ($) 17.15 13.76 11.92 10.70 10.50

TOTAL RETURN:
Total investment return (%)(b) 28.63 18.33 28.75 6.53 35.15

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 110,150 71,186 54,603 47,907 51,597

Ratio of expenses to average net assets (%)(c) 0.77 0.82 0.83 0.81 0.83

Ratio of net investment income to
average net assets (%)(c) 1.91 1.90 3.96 4.36 4.98

Portfolio turnover ratio (%) 52 53 89 14 18
</TABLE>

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES
<TABLE>
<CAPTION>

Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 18.79 16.29 14.22 12.36 10.27

Net investment income (a) 0.14 0.16 0.20 0.19 0.21
Net realized and unrealized gains on investments 2.07 3.12 4.37 2.52 2.84

Total from investment operations 2.21 3.28 4.57 2.71 3.05

Less distributions:
Dividends from net investment income (0.11) (0.12) (0.18) (0.17) (0.16)

In excess of net investment income -- -- (0.01) -- --

Dividends from net realized gains on (1.04) (0.64) (2.30) (0.68) (0.80)
investments

In excess of net realized gains -- (0.02) (0.01) -- --

Total distributions (1.15) (0.78) (2.50) (0.85) (0.96)

Net asset value, end of year ($) 19.85 18.79 16.29 14.22 12.36

TOTAL RETURN:
Total investment return (%) (b) 12.00 20.15 32.23 21.84 29.70(c)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 212,355 146,239 96,715 60,855 43,017

Ratio of expenses to average net assets (%) (d) 0.88 0.90 0.94 0.95 1.00(e)

Ratio of net investment income to
average net assets (%) (d) 0.69 0.88 1.19 1.39 1.72(c)

Portfolio turnover ratio (%) 101 64 63 77 115

</TABLE>

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

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

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

Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of year ($) 11.08 11.15 11.04 10.99 9.79
Net investment income (a) 0.95 0.91 0.90 0.92 0.55

Net realized and unrealized gains (losses)
on investments and foreign currency transactions (0.75) (0.24) 0.11 0.16 1.24

Total from investment operations 0.20 0.67 1.01 1.08 1.79

Less distributions:
Dividends from net investment income (0.84) (0.72) (0.79) (0.96) (0.56)

In excess of net investment income -- (0.02) (0.05) -- --

Dividends from net realized gains -- -- (0.05) (0.07) (0.03)

In excess of net realized gains -- -- (0.01) -- --

Total distributions (0.84) (0.74) (0.90) (1.03) (0.59)

Net asset value, end of year ($) 10.44 11.08 11.15 11.04 10.99

TOTAL RETURN:
Total investment return (%) (b) 1.78 6.03 9.11(c) 9.83(c) 18.30(c)

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 170,702 118,985 73,175 53,393 48,334

Ratio of expenses to average net assets (%) (e) 0.75 0.78 0.80(d) 0.80(d) 0.84(d)

Ratio of net investment income to
average net assets (%) (e) 8.57 7.92 7.86(c) 8.13(c) 8.08(c)

Portfolio turnover ratio (%) 35 50 94 114 281

</TABLE>

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

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES
<TABLE>
<CAPTION>

Year Ended December 31, Period Ended
December 31,
1999 1998 1997***
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 11.90 10.07 10.00

Net investment income (a) 0.06 0.06 0.01

Net realized and unrealized gains on investments 0.94 1.82 0.07

Total from investment operations 1.00 1.88 0.08

Less distributions:
Dividends from net investment income (0.05) (0.05) (0.01)

Dividends form net realized gains on investments (0.38) -- --

Total distributions (0.43) (0.05) (0.01)

Net asset value, end of year ($) 12.47 11.90 10.07

TOTAL RETURN:
Total investment return (%)(b) 8.47 18.67(c) 0.80**(c)

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 80,095 44,870 22,228

Ratio of expenses to average net assets (%) (d) 0.95 1.00(e) 1.00*(e)

Ratio of net investment income to
average net assets (%) (d) 0.47 0.54(c) 0.83*(c)

Portfolio turnover ratio (%) 75 70 1**
</TABLE>

* Annualized.

** Not Annualized.

*** For the period from the commencement of operations November 17, 1997
to December 31, 1997.

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

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

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

(e) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, these ratios would have been 1.04% and
1.45% (annualized), respectively.

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES
<TABLE>
<CAPTION>

Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 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 period (000) ($) 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.

<PAGE>
FINANCIAL HIGHLIGHTS

NEWPORT TIGER FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Years Ended December 31, Period Ended
December 31,
1999 1998 1997 1996 1995***
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 1.57 1.71 2.52 2.28 2.00

Net investment income (a) 0.03 0.03 0.03 0.03 0.01

Net realized and unrealized gains (losses) on investments 1.04 (0.14) (0.81) 0.24 0.29

Total from investment operations 1.07 (0.11) (0.78) 0.27 0.30

Less distributions:
Distributions from net investment income (0.02) (0.03) (0.02) (0.02) (0.01)

In excess of net investment income -- -- (0.01) -- (0.01)
Total distributions (0.02) (0.03) (0.03) (0.03) (0.02)

Net asset value, end of year ($) 2.62 1.57 1.71 2.52 2.28

TOTAL RETURN:
Total investment return (%)(b) 68.01 (6.43) (31.14) 11.73 15.00**

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 46,125 23,655 24,934 34,642 18,977

Ratio of expenses to average net assets (%)(c) 1.21 1.30 1.25 1.27 1.75*

Ratio of net investment income to average net assets (%)(c) 1.65 2.16 1.14 1.20 0.89*

Portfolio turnover ratio (%) 12 16 27 7 12**
</TABLE>

* Annualized.

** Not Annualized.

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

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

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

<PAGE>
SHAREHOLDER INFORMATION

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

<PAGE>
FOR MORE INFORMATION

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

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

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

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

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

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

INVESTMENT COMPANY ACT FILE NUMBER:

Liberty Variable Investment Trust : 811-07556

Colonial Growth and Income Fund, Variable Series

Stein Roe Global Utilities Fund, Variable Series

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

Colonial Strategic Income Fund, Variable Series

Liberty All-Star Equity Fund, Variable Series

Colonial International Fund for Growth, Variable Series

Newport Tiger Fund, Variable Series

<PAGE>
LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED MAY 1, 2000

Stein Roe Global Utilities Fund, Variable Series

Colonial Small Cap Value Fund, Variable Series

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

Colonial Strategic Income Fund, Variable Series

Colonial High Yield Securities Fund, Variable Series

Liberty All-Star Equity Fund, Variable Series

Newport Tiger Fund, Variable Series

Colonial International Horizons Fund, Variable Series

Colonial Global Equity Fund, Variable Series

Crabbe Huson Real Estate Investment Fund, Variable Series

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

* * * *

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

* * * *

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

<PAGE>
TABLE OF CONTENTS

THE TRUST ............................................... 3

THE FUNDS ............................................... 4

Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History
Stein Roe Global Utilities Fund, Variable Series ........ 4
Colonial Small Cap Value Fund, Variable Series .......... 6
Colonial U.S. Growth & Income Fund, Variable Series ..... 8
Colonial Strategic Income Fund, Variable Series ......... 10
Colonial High Yield Securities Fund, Variable Series .... 13
Liberty All-Star Equity Fund, Variable Series ........... 16
Newport Tiger Fund, Variable Series ..................... 19
Colonial International Horizons Fund, Variable Series ... 21
Colonial Global Equity Fund, Variable Series ............ 22
Crabbe Huson Real Estate Investment Fund, Variable Series 23

TRUST MANAGEMENT ORGANIZATIONS .......................... 24

The Trustees ............................................ 24
Investment Advisor: Liberty Advisory Services Corp. .... 24
Investment Sub-Advisors and Portfolio Managers .......... 25
Rule 12b-1 Plan ......................................... 27

OTHER INVESTMENT STRATEGIES AND RISKS ................... 28

U.S. Government Securities .............................. 28
Structure Risk .......................................... 28
Zero Coupon Bonds ....................................... 28
Convertible Securities .................................. 28
Derivative Strategies ................................... 29
Temporary Defensive Strategies .......................... 29

FINANCIAL HIGHLIGHTS .................................... 30

SHAREHOLDER INFORMATION ................................. 40

Purchases and Redemptions ............................... 40
How the Funds Calculate Net Asset Value ................. 40
Dividends and Distributions ............................. 40
Tax Consequences ........................................ 40

<PAGE>
THE TRUST

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

FUND SUB-ADVISOR
---- -----------
<S> <C>
Colonial Small Cap Value Fund, Variable Series (Small Cap Fund) Colonial Management Associates, Inc.
Colonial U.S. Growth & Income Fund, Variable Series (U.S. Growth & Income (Colonial)
Fund) (formerly Colonial U.S. Stock Fund, Variable Series)
Colonial Strategic Income Fund, Variable Series (Strategic Income Fund) Colonial
High Yield Securities Fund, Variable Series (High Yield Fund) Colonial
International Horizons Fund, Variable Series (International Horizons Fund)
Colonial Global Equity Fund, Variable Series (Global Equity Fund)

Stein Roe Global Utilities Fund, Variable Series (Global Utilities Fund) Stein Roe & Farnham Incorporated
(Stein Roe)

Newport Tiger Fund, Variable Series (Tiger Fund) Newport Fund Management, Inc.
(Newport)

Liberty All-Star Equity Fund, Variable Series (All-Star Equity Fund) Liberty Asset Management Company (LAMCO)

Crabbe Huson Real Estate Investment Fund, Variable Series (Real Estate Fund) Crabbe Huson Group, Inc.
(Crabbe Huson)
</TABLE>

Other Funds may be added to or deleted from the Trust from time to time.

<PAGE>
THE FUNDS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
THE FUNDS Stein Roe Global Utilities Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1994 -10.27%
1995 35.15%
1996 6.53%
1997 28.75%
1998 18.33%
1999 28.63%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was +8.05%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 28.63 23.06 15.04
- --------------------------------------------------------------------------
MSCI Index (%) N/A 24.93 19.76 16.86(1)
- --------------------------------------------------------------------------
S&P Index (%) N/A -8.88 13.66 9.11(1)
- --------------------------------------------------------------------------
Lipper Average (%) N/A 15.40 19.64 12.14(1)
</TABLE>

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

<PAGE>
COLONIAL SMALL CAP VALUE FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term growth.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial Small Cap Value Fund, Variable Series

PERFORMANCE HISTORY

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was +1.43%.

For period shown in bar chart:

Best quarter: 2nd quarter 1999, +16.78%

Worst quarter: 1st quarter 1999, -13.27%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION LIFE OF THE
DATE 1 YEAR FUND
<S> <C> <C> <C>
Fund (%) 5/19/98 6.34 (4.85)
- ---------------------------------------------------------------------------------
Russell Index (%) N/A 21.26 4.01(2)
--------------------------------------------------------------------------------
Lipper Average (%) N/A 37.57 12.97 (2)
</TABLE>

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

<PAGE>
COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES

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

- debt securities that are convertible into common stock;

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

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

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

PRIMARY INVESTMENT RISKS

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

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

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1995 29.70%
1996 21.84%
1997 32.23%
1998 20.15%
1999 12.00%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was +0.40%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 12.00 22.97 21.64
- ------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 26.73(3)
- ------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 20.42(3)
</TABLE>

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

<PAGE>
COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

The Fund seeks to achieve its investment goals by investing in:

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

- debt securities issued by foreign governments; and

- lower-rated corporate debt securities.

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

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

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

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

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

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

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."

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

<TABLE>

The Fund's year-to-date total return through March 31, 2000 was -0.10%.

For period shown in bar chart:

Best quarter: 1st quarter 1995, +5.62%

Worst quarter: 1st quarter 1997, -1.00%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION 1 YEAR 5 YEARS LIFE OF THE
DATE FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 1.78 8.88 8.26
- -----------------------------------------------------------------------------
Lehman Index (%) N/A (2.15) 7.61 7.06(4)
- -----------------------------------------------------------------------------
Lipper Average (%) N/A 0.76 7.84 7.03(4)
</TABLE>

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

<PAGE>
COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks current income and total return.

PRIMARY INVESTMENT STRATEGIES

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

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

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

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

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

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

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial High Yield Securities Fund, Variable Series

PERFORMANCE HISTORY

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1999 1.65%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was -1.36%.

For period shown in bar chart:

Best quarter: 1st quarter 1999, +3.11%

Worst quarter: 3rd quarter 1999, -1.90%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION 1 YEAR LIFE OF THE
DATE FUND
<S> <C> <C> <C>
Fund (%) 5/19/98 1.65 (0.59)
- ---------------------------------------------------------------------------
CS Index (%) N/A 3.28 0.06(5)
- ---------------------------------------------------------------------------
Lipper Average (%) N/A 4.04 (0.28)(5)
</TABLE>

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

<PAGE>
LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks total investment return, comprised of long-term capital
appreciation and current income, through investment primarily in a diversified
portfolio of equity securities.

PRIMARY INVESTMENT STRATEGIES

In LAMCO's opinion, the multi-manager concept provides advantages over the use
of a single manager for the following reasons:

- Most equity investment management firms consistently employ a distinct
investment "style" which causes them to emphasize stocks with
particular characteristics;

- Because of changing investor preferences, any given investment style
will move into and out of market favor and will result in better
investment performance under certain market conditions, but less
successful performance under other conditions;

- Consequently, by allocating the Fund's portfolio on an approximately
equal basis among Portfolio Managers employing different styles, the
impact of any one style on investment performance will be diluted, and
the investment performance of the total portfolio will be more
consistent and less volatile over the long term than if a single style
were employed throughout the entire period; and

- More consistent performance at a given annual rate of return over time
produces a higher rate of return for the long term than more volatile
performance having the same average annual rate of return.

The Fund's current Portfolio Managers and investment styles are as follows:

- J. P. Morgan Investment Management Inc. uses a value approach by
investing in companies that are diversified across all sectors and
that are undervalued relative to the firm's projected growth rates.

- Oppenheimer Capital uses a value approach by investing in companies
that exhibit the ability to generate excess cash flow while earning
high returns on invested capital.

- Boston Partners Asset Management, L.P. uses a value approach by
investing in companies with low price-to-earnings and price-to-book
ratios where a catalyst for positive change has been identified.

- Westwood Management Corporation uses a growth approach by investing in
growth companies selling at reasonable valuations based on the firm's
earnings projections which are not yet reflected in consensus
estimates.

- TCW Investment Management Company incorporates secular growth trends
and uses a "bottom-up" approach by investing in primarily large-cap
companies that have distinct business model advantages.

LAMCO continuously monitors the performance and investment styles of the Fund's
Portfolio Managers and from time to time may recommend changes of Portfolio
Managers based on factors such as:

- Changes in a Portfolio Manager's investment style or a departure by a
Portfolio Manager from the investment style for which it had been
selected;

- A deterioration in a Portfolio Manager's performance relative to that
of other investment management firms practicing a similar style; or

- Adverse changes in its ownership or personnel.

<PAGE>
THE FUNDS Liberty All-Star Equity Fund, Variable Series

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
THE FUNDS Liberty All-Star Equity Fund, Variable Series

PERFORMANCE HISTORY

The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year and the life of the
Fund. The Fund's return is compared to the Russell 3000 Index (Russell Index), a
capitalization weighted total return index which is comprised of 3000 of the
largest capitalized U.S. domiciled companies whose common stock is traded in the
United States on the New York Stock Exchange, American Stock Exchange and
NASDAQ. Unlike the Fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in indices. The Fund's return is also compared to the average return of
the funds included in the Lipper Growth & Income - Annuities Funds category
average (Lipper Average). This Lipper Average, which is calculated by Lipper,
Inc., is composed of funds with similar investment objectives to the Fund. Sales
charges are not reflected in the Lipper Average. The chart and table are
intended to illustrate some of the risks of investing in the Fund by showing the
changes in the Fund's performance. All returns include the reinvestment of
dividends and distributions. Performance results include the effect of expense
reduction arrangements, if any. If these arrangements were not in place, then
the performance results would have been lower. Any expense reduction
arrangements may be discontinued at any time. As with all mutual funds, past
performance does not predict the Fund's future performance. The Fund's
performance results do not reflect the cost of insurance and separate account
charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>
<S> <C>
1998 18.67%
1999 8.47%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was +5.21%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +18.67%

Worst quarter: 3rd quarter 1998, -12.05%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION 1 YEAR LIFE OF THE
DATE FUND
<S> <C> <C> <C>
Fund (%) 11/17/97 8.47 13.05
- --------------------------------------------------------------------
Russell Index (%) N/A 20.90 23.85(6)
- --------------------------------------------------------------------
Lipper Average (%) N/A 14.63 16.24(6)
</TABLE>

(6) Performance information is from October 31, 1997.

<PAGE>
NEWPORT TIGER FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital appreciation.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
THE FUNDS Newport Tiger Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]
<TABLE>

The Fund's year-to-date total return through March 31, 2000 was +1.91%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +37.93%

Worst quarter: 2nd quarter 1998, -28.81%

AVERAGE ANNUAL TOTAL RETURNS - FOR PERIODS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>

INCEPTION LIFE OF THE
DATE 1 YEAR FUND
<S> <C> <C> <C>
Fund (%) 5/1/95 68.01 7.31
- -------------------------------------------------------------------------
MSCI Index (%) N/A 31.00 15.72(7)
- ------------------------------------------------------------------------
Lipper Average (%) N/A 79.74 4.24(7)
</TABLE>

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

<PAGE>
COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks long-term growth and preservation of capital purchasing power.

PRIMARY INVESTMENT STRATEGIES

- companies engaged in the development and processing of natural
resources, and

- companies engaged in consumer-oriented businesses.

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

PRIMARY INVESTMENT RISKS

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

PERFORMANCE HISTORY

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

<PAGE>
COLONIAL GLOBAL EQUITY FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term growth by investing primarily in global equity
securities.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

PERFORMANCE HISTORY

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

<PAGE>
CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks to provide growth of capital and current income.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

PERFORMANCE HISTORY

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

The Fund's return is compared to the NAREIT Equity Index, an unmanaged index
that tracks the performance of all equity real estate investment trusts that
trade on the New York Stock Exchange, the American Stock Exchange and the
NASDAQ. Unlike the Fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in indices.

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

THE TRUSTEES

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

INVESTMENT ADVISOR: LIBERTY ADVISORY SERVICES CORP.

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

<S> <C>
Stein Roe Global Utilities Fund, Variable Series 0.65%

Colonial Small Cap Value Fund, Variable Series 0.80%(1)

Colonial U.S. Growth & Income Fund, Variable Series 0.80%

Colonial Strategic Income Fund, Variable Series 0.65%

Colonial High Yield Securities Fund, Variable Series 0.60%(2)

Liberty All-Star Equity Fund, Variable Series 0.80%

Newport Tiger Fund, Variable Series 0.90%

Colonial International Horizons Fund, Variable Series 0.95%(3)

Colonial Global Equity Fund, Variable Series 0.95%(4)

Crabbe Huson Real Estate Investment Fund, Variable Series 1.00%(5)
</TABLE>

(1) The Small Cap Fund's advisor has voluntarily agreed to waive its management
fee and reimburse other expenses so that total expenses of the Fund
(excluding interest, taxes, 12b-1, brokerage and extraordinary expenses) do
not exceed 1.00%. As a result the actual management fee paid to the advisor
for the 1999 fiscal year was 0.00%.

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

INVESTMENT SUB-ADVISORS AND PORTFOLIO MANAGERS

COLONIAL

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

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

<S> <C>
Colonial Small Cap Value Fund, Variable Series 0.60%
Colonial U.S. Growth & Income Fund, Variable Series 0.60%
Colonial Strategic Income Fund, Variable Series 0.45%
Colonial High Yield Securities Fund, Variable Series 0.40%
Colonial International Horizons Fund, Variable Series 0.75%
Colonial Global Equity Fund, Variable Series 0.75%
</TABLE>

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

James P. Haynie, a senior vice president of Colonial, has co-managed the Small
Cap Fund since 1993.

Michael Rega, a vice president of Colonial, has co-managed the Small Cap Fund
since 1996. He was an analyst at Colonial from 1993 to 1996.

Charles R. Roberts, a senior vice president of Colonial, has been the lead
manager for the International Horizons Fund since March, 2000. Mr. Roberts is
also a senior vice president of Newport and Newport Pacific Management, Inc.
(Newport Pacific), an affiliate of Colonial. Mr. Roberts has been employed with
Newport and Newport Pacific since November, 1998. Prior to joining Newport and
Newport Pacific, he managed the European component of institutional
international equity accounts at Progress Investment Management (Progress) since
1997. Prior to joining Progress in 1997, he managed the European component of
institutional international equity accounts and was a member of the investment
policy committee at Sit/Kim International (Sit/Kim) since prior to 1994.

Michael Ellis, a senior vice president of Colonial, has co-managed the
International Horizons Fund since March, 2000. Mr. Ellis is also a senior vice
president of Newport and Newport Pacific. Prior to joining Newport and Newport
Pacific in December, 1996, he was a vice president at Matthews International
Capital Management since September, 1991.

Deborah Snee, a Vice President of Colonial and Europe analyst at Colonial, Stein
Roe and Newport, has co-managed International Horizons Fund since March, 2000.
Prior to working at Newport, Ms. Snee spent five years at Sit/Kim as an emerging
markets analyst.

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

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

STEIN ROE

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

Ophelia Barsketis, a senior vice president of Stein Roe, has co-managed the
Global Utilities Fund since November, 1997.

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

LAMCO AND LAMCO'S PORTFOLIO MANAGERS

LASC, out of the management fees it receives from the Trust, pays LAMCO a
sub-advisory fee at the annual rate of 0.60% of the average daily net assets of
the All-Star Equity Fund.

<PAGE>
TRUST MANAGEMENT ORGANIZATIONS

- - Henry D. Cavanna, Managing Director of J.P. Morgan Investment Management,
Inc.

- - John Lindenthal, Managing Director of Oppenheimer Capital

- - Mark Donovan, Chairman, Equity Strategy Committee, of Boston Partners Asset
Management, L.P.

- - Susan M. Byrne, President and Chief Executive Officer of Westwood
Management Corp.

- - Glen E. Bickerstaff, Managing Director - U.S. Equities of TCW Investment
Management Company

NEWPORT

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

CRABBE HUSON

LASC, out of the management fees it receives from the Trust, pays Crabbe Huson a
sub-advisory fee at the annual rate of 0.80% of the average daily net assets of
the Real Estate Fund.

AFFILIATED BROKER/DEALER

RULE 12b-1 PLAN

The Trust has adopted a plan for and on behalf of the International Horizons
Fund, Global Equity Fund and Real Estate Fund in accordance with Rule 12b-1
(Plan) under the Investment Company Act of 1940. The Plan allows the Fund to pay
distribution fees for the sale and distribution of their shares. Under the plan,
the Trust pays the distributor a fee of 0.25% of the average daily net assets
attributable to the Funds' shares. Because these fees are an ongoing expense,
over time they increase the cost of an investment and the shares will cost more
than shares that are not subject to a service fee.

<PAGE>
OTHER INVESTMENT STRATEGIES AND RISKS

U.S. GOVERNMENT SECURITIES

STRUCTURE RISK

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

ZERO COUPON BONDS

CONVERTIBLE SECURITIES

<PAGE>
OTHER INVESTMENT STRATEGIES AND RISKS

DERIVATIVE STRATEGIES

TEMPORARY DEFENSIVE STRATEGIES

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

<PAGE>

FINANCIAL HIGHLIGHTS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Years Ended December 31,

1999 1998 1997 1996 1995
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ($) 13.76 11.92 10.70 10.50 8.11

Net investment income (a) 0.28 0.24 0.46 0.46 0.46

Net realized and unrealized gains (losses)
on investments 3.63 1.93 2.62 0.23 2.39

Total from investment operations 3.91 2.17 3.08 0.69 2.85

Less distributions:
Dividends from net investment income (0.23) (0.21) (0.48) (0.49) (0.46)

In excess of net investment income --- (0.01) --- --- ---

Dividends from net realized gains on investments (0.29) (0.11) (1.38) --- ---

Total distributions (0.52) (0.33) (1.86) (0.49) (0.46)

Net asset value, end of year ($) 17.15 13.76 11.92 10.70 10.50

TOTAL RETURN:
Total investment return (%)(b) 28.63 18.33 28.75 6.53 35.15

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 110,150 71,186 54,603 47,907 51,597

Ratio of expenses to average net assets (%)(c) 0.77 0.82 0.83 0.81 0.83

Ratio of net investment income to
average net assets (%)(c) 1.91 1.90 3.96 4.36 4.98

Portfolio turnover ratio (%) 52 53 89 14 18
</TABLE>

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL SMALL CAP VALUE FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Year Ended Period Ended
December 31, December 31,
1999 1998***

PER SHARE OPERATING PERFORMANCE:
<S> <C> <C>
Net asset value, beginning of period ($) 8.59 10.00

Net investment income (a) 0.02 0.08

Net realized and unrealized gains (losses) on investments 0.52 (1.41)

Total from investment operations 0.54 (1.33)

Less distributions:
Dividends from net investment income (0.01) (0.07)

In excess of net investment income --- (0.01)

Total distributions (0.01) (0.08)

Net asset value, end of year 9.12 8.59

TOTAL RETURN
Total investment return (%)(b)(c) 6.34 (13.25)**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 3,817 1,782

Ratio of expenses to average net assets (%) (d)(e) 1.00 1.00*

Ratio of net investment income to
average net assets (%) (d) 0.23 1.41*

Portfolio turnover ratio (%) 74 51**
</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, these ratios would have been 3.66% and
4.32% (annualized), respectively.

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Years Ended December 31,

1999 1998 1997 1996 1995
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ($) 18.79 16.29 14.22 12.36 10.27

Net investment income (a) 0.14 0.16 0.20 0.19 0.21

Net realized and unrealized gains on investments 2.07 3.12 4.37 2.52 2.84

Total from investment operations 2.21 3.28 4.57 2.71 3.05

Less distributions:
Dividends from net investment income (0.11) (0.12) (0.18) (0.17) (0.16)

In excess of net investment income --- --- (0.01) --- ---

Dividends from net realized gains on (1.04) (0.64) (2.30) (0.68) (0.80)
investments

In excess of net realized gains --- (0.02) (0.01) --- ---

Total distributions (1.15) (0.78) (2.50) (0.85) (0.96)

Net asset value, end of year ($) 19.85 18.79 16.29 14.22 12.36

TOTAL RETURN:
Total investment return (%) (b) 12.00 20.15 32.23 21.84 29.70(c)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 212,355 146,239 96,715 60,855 43,017

Ratio of expenses to average net assets (%) (d) 0.88 0.90 0.94 0.95 1.00(e)

Ratio of net investment income to
average net assets (%) (d) 0.69 0.88 1.19 1.39 1.72(c)

Portfolio turnover ratio (%) 101 64 63 77 115
</TABLE>

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

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ($) 11.08 11.15 11.04 10.99 9.79

Net investment income (a) 0.95 0.91 0.90 0.92 0.55

Net realized and unrealized gains (losses)
on investments and foreign currency transactions (0.75) (0.24) 0.11 0.16 1.24

Total from investment operations 0.20 0.67 1.01 1.08 1.79

Less distributions:
Dividends from net investment income (0.84) (0.72) (0.79) (0.96) (0.56)

In excess of net investment income --- (0.02) (0.05) --- ---

Dividends from net realized gains --- --- (0.05) (0.07) (0.03)

In excess of net realized gains --- --- (0.01) --- ---

Total distributions (0.84) (0.74) (0.90) (1.03) (0.59)

Net asset value, end of year ($) 10.44 11.08 11.15 11.04 10.99

TOTAL RETURN:
Total investment return (%) (b) 1.78 6.03 9.11(c) 9.83(c) 18.30(c)

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 170,702 118,985 73,175 53,393 48,334

Ratio of expenses to average net assets (%) (e) 0.75 0.78 0.80(d) 0.80(d) 0.84(d)

Ratio of net investment income to
average net assets (%) (e) 8.57 7.92 7.86(c) 8.13(c) 8.08(c)

Portfolio turnover ratio (%) 35 50 94 114 281
</TABLE>

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

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Year Ended Period Ended
December 31, December 31,
1999 1998***
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C>
Net asset value, beginning of year ($) 9.31 10.00

Net investment income (a) 0.88 0.48

Net realized and unrealized losses (0.72) (0.74)

Total from investment operations 0.16 (0.26)

Less distributions:
Dividends from net investment income (0.62) (0.43)

In excess of net investment income --- (0.00)

Total distributions (0.62) (0.43)

Net asset value, end of year ($) 8.85 9.31

TOTAL RETURN:
Total investment return (%) (b)(c) 1.65 (2.57)**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 15,358 5,915

Ratio of expenses to average net assets (%) (d)(e) 0.80 0.80*

Ratio of net investment income to average net assets (%) (c)(d) 9.36 7.93*

Portfolio turnover ratio (%) 16 23**
</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, these ratios would have been 1.28% and
1.84% (annualized), respectively.

<PAGE>
FINANCIAL HIGHLIGHTS

LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Year Ended December 31, Period Ended
December 31,
1999 1998 1997***
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C>
Net asset value, beginning of year ($) 11.90 10.07 10.00

Net investment income (a) 0.06 0.06 0.01

Net realized and unrealized gains on investments 0.94 1.82 0.07

Total from investment operations 1.00 1.88 0.08

Less distributions:
Dividends from net investment income (0.05) (0.05) (0.01)

Dividends form net realized gains on investments (0.38) --- ---

Total distributions (0.43) (0.05) (0.01)

Net asset value, end of year ($) 12.47 11.90 10.07

TOTAL RETURN:
Total investment return (%)(b) 8.47 18.67(c) 0.80**(c)

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of year (000) ($) 80,095 44,870 22,228

Ratio of expenses to average net assets (%) (d) 0.95 1.00(e) 1.00*(e)

Ratio of net investment income to
average net assets (%) (d) 0.47 0.54(c) 0.83*(c)

Portfolio turnover ratio (%) 75 70 1**
</TABLE>

* Annualized.

** Not Annualized.

*** For the period from the commencement of operations November 17, 1997 to
December 31, 1997.

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

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

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

(e) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, these ratios would have been 1.04% and
1.45% (annualized), respectively.

<PAGE>
FINANCIAL HIGHLIGHTS

NEWPORT TIGER FUND, VARIABLE SERIES
<TABLE>
<CAPTION>
Years Ended December 31, Period Ended
December 31,
1999 1998 1997 1996 1995***
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ($) 1.57 1.71 2.52 2.28 2.00

Net investment income (a) 0.03 0.03 0.03 0.03 0.01

Net realized and unrealized gains (losses) on investments 1.04 (0.14) (0.81) 0.24 0.29

Total from investment operations 1.07 (0.11) (0.78) 0.27 0.30

Less distributions:
Distributions from net investment income (0.02) (0.03) (0.02) (0.02) (0.01)

In excess of net investment income --- --- (0.01) --- (0.01)
Total distributions (0.02) (0.03) (0.03) (0.03) (0.02)

Net asset value, end of year ($) 2.62 1.57 1.71 2.52 2.28

TOTAL RETURN:
Total investment return (%)(b) 68.01 (6.43) (31.14) 11.73 15.00**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 46,125 23,655 24,934 34,642 18,977

Ratio of expenses to average net assets (%)(c) 1.21 1.30 1.25 1.27 1.75*

Ratio of net investment income to average net assets (%)(c) 1.65 2.16 1.14 1.20 0.89*

Portfolio turnover ratio (%) 12 16 27 7 12**
</TABLE>

* Annualized.

** Not Annualized.

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
PER SHARE OPERATING PERFORMANCE:
<S> <C>
Net asset value, beginning of period ($) 10.00

Net investment income (a) 0.06

Net realized and unrealized gain on investments and
foreign currency transactions 2.36

Total from investment operations 2.42

Less distributions:
Dividends from net investment income (0.05)

In excess of net investment income (0.06)

Total distributions (0.11)

Net asset value, end of period ($) 12.31

TOTAL RETURN
Total investment return (%)(b)(c) 24.24**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 7,707

Ratio of expenses to average net assets (%) (d)(e) 1.40*

Ratio of net investment income to
average net assets (%) (d) 0.85*

Portfolio turnover ratio (%) 1**
</TABLE>

* Annualized.

** Not Annualized.

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

(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 2.36%
(annualized).

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL GLOBAL EQUITY FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
PER SHARE OPERATING PERFORMANCE:
<S> <C>
Net asset value, beginning of period ($) 10.00

Net investment income (a) 0.04

Net realized and unrealized losses on investments 1.22

Total from investment operations 1.26

Less distributions:
Dividends from net investment income (0.05)

Total distributions (0.05)

Net asset value, end of period ($) 11.21

TOTAL RETURN
Total investment return (%)(b)(c) 12.57**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 7,284

Ratio of expenses to average net assets (%) (d)(e) 1.40*

Ratio of net investment income to 0.55*
average net assets (%) (d)

Portfolio turnover ratio (%) 1**
</TABLE>

* Annualized.

** Not Annualized.

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

(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 2.23%
(annualized).

<PAGE>
FINANCIAL HIGHLIGHTS

CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
PER SHARE OPERATING PERFORMANCE:
<S> <C>
Net asset value, beginning of period ($) 10.00

Net investment income (a) 0.31

Net realized and unrealized losses on investments (1.70)

Total from investment operations (1.39)

Less distributions:
Dividends from net investment income (0.22)

Return of capital (0.05)

Total distributions (0.27)

Net asset value, end of period ($) 8.34

TOTAL RETURN
Total investment return (%)(b)(c) (13.80)**

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 2,180

Ratio of expenses to average net assets (%) (d)(e) 1.45*

Ratio of net investment income to
average net assets (%) (d) 5.90*

Portfolio turnover ratio (%) 57**
</TABLE>

* Annualized.

** Not Annualized.

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

(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 4.25%
(annualized).

<PAGE>

SHAREHOLDER INFORMATION

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

<PAGE>

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

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

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

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

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

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

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

INVESTMENT COMPANY ACT FILE NUMBER:

Liberty Variable Investment Trust : 811-07556

Stein Roe Global Utilities Fund, Variable Series

Colonial Small Cap Value Fund, Variable Series

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

Colonial Strategic Income Fund, Variable Series

Colonial High Yield Securities Fund, Variable Series

Liberty All-Star Equity Fund, Variable Series

Newport Tiger Fund, Variable Series

Colonial International Horizons Fund, Variable Series

Colonial Global Equity Fund, Variable Series

Crabbe Huson Real Estate Investment Fund, Variable Series

<PAGE>

LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED MAY 1, 2000

Stein Roe Global Utilities Fund, Variable Series
Colonial U.S. Growth & Income Fund, Variable Series
Colonial High Yield Securities Fund, Variable Series
Liberty All-Star Equity Fund, Variable Series
Colonial International Horizons Fund, Variable Series
Crabbe Huson Real Estate Investment Fund, Variable Series

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

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

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

NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE

<PAGE>

TABLE OF CONTENTS

THE TRUST ................................................................ 3

THE FUNDS ................................................................ 4

Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History
Stein Roe Global Utilities Fund, Variable Series........................... 4
Colonial U.S. Growth & Income Fund, Variable Series........................ 6
Colonial High Yield Securities Fund, Variable Series....................... 8
Liberty All-Star Equity Fund, Variable Series.............................. 11
Colonial International Horizons Fund, Variable Series...................... 14
Crabbe Huson Real Estate Investment Fund, Variable Series.................. 15

TRUST MANAGEMENT ORGANIZATIONS ............................................ 16

The Trustees............................................................... 16
Investment Advisor: Liberty Advisory Services Corp........................ 16
Investment Sub-Advisors and Portfolio Managers............................. 16
Rule 12b-1 Plan............................................................ 19

OTHER INVESTMENT STRATEGIES AND RISKS ..................................... 20

Structure Risk............................................................. 20
Zero Coupon Bonds.......................................................... 20
Convertible Securities..................................................... 20
Derivative Strategies...................................................... 20
Temporary Defensive Strategies............................................. 20

FINANCIAL HIGHLIGHTS ...................................................... 21

SHAREHOLDER INFORMATION ................................................... 27

Purchases and Redemptions.................................................. 27
How the Funds Calculate Net Asset Value.................................... 27
Dividends and Distributions................................................ 27
Tax Consequences........................................................... 27

<PAGE>

THE TRUST

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

<TABLE>
<CAPTION>
FUND SUB-ADVISOR
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Colonial U.S. Growth & Income Fund, Variable Series (U.S. Growth & Income Colonial Management Associates, Inc. (Colonial)
Fund) (formerly Colonial U.S. Stock Fund, Variable Series)
Colonial High Yield Securities Fund, Variable Series (High Yield Fund)
Colonial International Horizons Fund, Variable Series (International Horizons
Fund)

- --------------------------------------------------------------------------------------------------------------------------------
Stein Roe Global Utilities Fund, Variable Series (Global Utilities Fund) Stein Roe & Farnham Incorporated (Stein Roe)
- --------------------------------------------------------------------------------------------------------------------------------
Liberty All-Star Equity Fund, Variable Series (All-Star Equity Fund) Liberty Asset Management Company (LAMCO)
- --------------------------------------------------------------------------------------------------------------------------------
Crabbe Huson Real Estate Investment Fund, Variable Series (Real Estate Fund) Crabbe Huson Group, Inc. (Crabbe Huson)
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Other Funds may be added to or deleted from the Trust from time to time.

<PAGE>

THE FUNDS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>
THE FUNDS STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was +8.05%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
Fund (%) 7/1/93 28.63 23.06 15.04
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MSCI Index (%) N/A 24.93 19.76 16.86(1)
- -----------------------------------------------------------------------------------------------------
S&P Index (%) N/A -8.88 13.66 9.11(1)
- -----------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 15.40 19.64 12.14(1)
</TABLE>

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

<PAGE>

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

INVESTMENT GOALS

The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES

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

- debt securities that are convertible into common stock;

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

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

PRIMARY INVESTMENT RISKS

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

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

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was +0.40%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 12.00 22.97 21.64
- ---------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 26.73(2)
- ---------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 20.42(2)
</TABLE>

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

<PAGE>

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks current income and total return.

PRIMARY INVESTMENT STRATEGIES

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

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

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

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

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

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

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial High Yield Securities Fund, Variable Series

<PAGE>

THE FUNDS Colonial High Yield Securities Fund, Variable Series

PERFORMANCE HISTORY

CALENDAR YEAR TOTAL RETURNS
<TABLE>
<S> <C>
1999 1.65%
</TABLE>

The Fund's year-to-date total return through March 31, 2000 was -1.36%.

For period shown in bar chart:

Best quarter: 1st quarter 1999, +3.11%

Worst quarter: 3rd quarter 1999, -1.90%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR LIFE OF THE
DATE FUND
<S> <C> <C> <C>
Fund (%) 5/19/98 1.65 (0.59)
- ---------------------------------------------------------------------------------------
CS Index (%) N/A 3.28 0.06(3)
- ---------------------------------------------------------------------------------------
Lipper Average (%) N/A 4.04 (0.28)(3)
</TABLE>

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

<PAGE>

LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks total investment return, comprised of long-term capital
appreciation and current income, through investment primarily in a diversified
portfolio of equity securities.

PRIMARY INVESTMENT STRATEGIES

In LAMCO's opinion, the multi-manager concept provides advantages over the use
of a single manager for the following reasons:

- Most equity investment management firms consistently employ a
distinct investment "style" which causes them to emphasize
stocks with particular characteristics;

The Fund's current Portfolio Managers and investment styles are as follows:

- J.P. Morgan Investment Management Inc. uses a value approach
by investing in companies that are diversified across all
sectors and that are undervalued relative to the firm's
projected growth rates.

- Oppenheimer Capital uses a value approach by investing in
companies that exhibit the ability to generate excess cash
flow while earning high returns on invested capital.

- Boston Partners Asset Management, L.P. uses a value approach
by investing in companies with low price-to-earnings and
price-to-book ratios where a catalyst for positive change has
been identified.

- TCW Investment Management Company incorporates secular
growth trends and uses a "bottom-up" approach by investing in
primarily large-cap companies that have distinct business
model advantages.

LAMCO continuously monitors the performance and investment styles of the Fund's
Portfolio Managers and from time to time may recommend changes of Portfolio
Managers based on factors such as:

- Changes in a Portfolio Manager's investment style or a
departure by a Portfolio Manager from the investment style for
which it had been selected;

- A deterioration in a Portfolio Manager's performance relative
to that of other investment management firms practicing a
similar style; or

- Adverse changes in its ownership or personnel.

<PAGE>

THE FUNDS Liberty All-Star Equity Fund, Variable Series

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>

THE FUNDS Liberty All-Star Equity Fund, Variable Series

PERFORMANCE HISTORY

The bar chart below shows changes in the Fund's performance from year to year by
illustrating the Fund's calendar year total returns. The performance table
following the bar chart shows how the Fund's average annual returns compare with
those of a broad measure of market performance for 1 year and the life of the
Fund. The Fund's return is compared to the Russell 3000 Index (Russell Index), a
capitalization weighted total return index which is comprised of 3000 of the
largest capitalized U.S. domiciled companies whose common stock is traded in the
United States on the New York Stock Exchange, American Stock Exchange and
NASDAQ. Unlike the Fund, indices are not investments, do not incur fees or
expenses and are not professionally managed. It is not possible to invest
directly in indices. The Fund's return is also compared to the average return of
the funds included in the Lipper Growth & Income - Annuities Funds category
average (Lipper Average). This Lipper Average, which is calculated by Lipper,
Inc., is composed of funds with similar investment objectives to the Fund. Sales
charges are not reflected in the Lipper Average. The chart and table are
intended to illustrate some of the risks of investing in the Fund by showing the
changes in the Fund's performance. All returns include the reinvestment of
dividends and distributions. Performance results include the effect of expense
reduction arrangements, if any. If these arrangements were not in place, then
the performance results would have been lower. Any expense reduction
arrangements may be discontinued at any time. As with all mutual funds, past
performance does not predict the Fund's future performance. The Fund's
performance results do not reflect the cost of insurance and separate account
charges which are imposed under your VA contract or VLI policy.

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +5.21%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +18.67%

Worst quarter: 3rd quarter 1998, -12.05%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR LIFE OF THE
DATE FUND
<S> <C> <C> <C>
Fund (%) 11/17/97 8.47 13.05
- ---------------------------------------------------------------------------------------
Russell Index (%) N/A 20.90 23.85(4)
- ---------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 16.24(4)
</TABLE>

(4) Performance information is from October 31, 1997.

<PAGE>

COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks long-term growth and preservation of capital purchasing power.

PRIMARY INVESTMENT STRATEGIES

- - companies engaged in the development and processing of natural
resources, and

- - companies engaged in consumer-oriented businesses.

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

PRIMARY INVESTMENT RISKS

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

PERFORMANCE HISTORY

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

<PAGE>

CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks to provide growth of capital and current income.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

PERFORMANCE HISTORY

Because the Fund has not completed one full calendar year of investment
performance, information related to the Fund's performance has not been included
in this prospectus.

<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

THE TRUSTEES

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

INVESTMENT ADVISOR: LIBERTY ADVISORY SERVICES CORP.

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

<TABLE>
<S> <C>
Stein Roe Global Utilities Fund, Variable Series 0.65%
Colonial U.S. Growth & Income Fund, Variable Series 0.80%
Colonial High Yield Securities Fund, Variable Series 0.60% (1)
Liberty All-Star Equity Fund, Variable Series 0.80%
Colonial International Horizons Fund, Variable Series 0.95% (2)
Crabbe Huson Real Estate Investment Fund, Variable Series 1.00% (3)
</TABLE>

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

(2) The International Horizons Fund's advisor has voluntarily agreed to
waive its management fee and reimburse other expenses so that the total
expenses of the Fund (excluding interest, taxes, 12b-1, brokerage and
extraordinary expenses) do not exceed 1.15%. As a result the actual
management fee paid to the advisor for the 1999 fiscal year was 0.00%.

(3) The Real Estate Fund's advisor has voluntarily agreed to waive its
management fee and reimburse other expenses so that total expenses of
the Fund (excluding interest, taxes, 12b-1, brokerage and extraordinary
expenses) do not exceed 1.20%. As a result the actual management fee
paid to the advisor for the 1999 fiscal year was 0.00%.

INVESTMENT SUB-ADVISORS AND PORTFOLIO MANAGERS

COLONIAL

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

<PAGE>

TRUST MANAGEMENT ORGANIZATION

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

<TABLE>
<S> <C>
Colonial U.S. Growth & Income Fund, Variable Series 0.60%
Colonial High Yield Securities Fund, Variable Series 0.40%
Colonial International Horizons Fund, Variable Series 0.75%
</TABLE>

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

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

Colonial will use its affiliate, Newport Fund Management, Inc.'s (Newport),
trading facilities when buying or selling foreign securities for the Funds'
portfolios. Newport executes all trades under its own procedures.

STEIN ROE

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

<PAGE>

TRUST MANAGEMENT ORGANIZATION

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

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

LAMCO AND LAMCO'S PORTFOLIO MANAGERS

LASC, out of the management fees it receives from the Trust, pays LAMCO a
sub-advisory fee at the annual rate of 0.60% of the average daily net assets of
the All-Star Equity Fund.

- - Henry D. Cavanna, Managing Director of J.P. Morgan Investment
Management, Inc.

- - John Lindenthal, Managing Director of Oppenheimer Capital

- - Mark Donovan, Chairman, Equity Strategy Committee, of Boston Partners
Asset Management, L.P.

- - Susan M. Byrne, President and Chief Executive Officer of Westwood
Management Corp.

- - Glen E. Bickerstaff, Managing Director - U.S. Equities of TCW
Investment Management Company

CRABBE HUSON

LASC, out of the management fees it receives from the Trust, pays Crabbe Huson a
sub-advisory fee at the annual rate of 0.80% of the average daily net assets of
the Real Estate Fund.

<PAGE>
TRUST MANAGEMENT ORGANIZATION

AFFILIATED BROKER/DEALER

RULE 12b-1 PLAN

The Trust has adopted a plan for and on behalf of the International Horizons
Fund and Real Estate Fund in accordance with Rule 12b-1 (Plan) under the
Investment Company Act of 1940. The Plan allows the Fund to pay distribution
fees for the sale and distribution of their shares. Under the plan, the Trust
pays the distributor a fee of 0.25% of the average daily net assets attributable
to the Funds' shares. Because these fees are an ongoing expense, over time they
increase the cost of an investment and the shares will cost more than shares
that are not subject to a service fee.

<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

STRUCTURE RISK

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

ZERO COUPON BONDS

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

CONVERTIBLE SECURITIES

DERIVATIVE STRATEGIES

TEMPORARY DEFENSIVE STRATEGIES

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

<PAGE>

FINANCIAL HIGHLIGHTS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 13.76 11.92 10.70 10.50 8.11
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.28 0.24 0.46 0.46 0.46
- ---------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses)
on investments 3.63 1.93 2.62 0.23 2.39
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.91 2.17 3.08 0.69 2.85
- ---------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.23) (0.21) (0.48) (0.49) (0.46)
- ---------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.01) --- --- ---
- ---------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on investments (0.29) (0.11) (1.38) --- ---
- ---------------------------------------------------------------------------------------------------------------------
Total distributions (0.52) (0.33) (1.86) (0.49) (0.46)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 17.15 13.76 11.92 10.70 10.50
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 28.63 18.33 28.75 6.53 35.15
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 110,150 71,186 54,603 47,907 51,597
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 0.77 0.82 0.83 0.81 0.83
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%)(c) 1.91 1.90 3.96 4.36 4.98
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 52 53 89 14 18
</TABLE>

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 18.79 16.29 14.22 12.36 10.27
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.14 0.16 0.20 0.19 0.21
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on investments 2.07 3.12 4.37 2.52 2.84
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.21 3.28 4.57 2.71 3.05
- --------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.11) (0.12) (0.18) (0.17) (0.16)
- --------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- --- (0.01) --- ---
- --------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on (1.04) (0.64) (2.30) (0.68) (0.80)
investments
- --------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains --- (0.02) (0.01) --- ---
- --------------------------------------------------------------------------------------------------------------------------
Total distributions (1.15) (0.78) (2.50) (0.85) (0.96)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 19.85 18.79 16.29 14.22 12.36
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b) 12.00 20.15 32.23 21.84 29.70(c)
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 212,355 146,239 96,715 60,855 43,017
- --------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d) 0.88 0.90 0.94 0.95 1.00(e)
- --------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.69 0.88 1.19 1.39 1.72(c)
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 101 64 63 77 115
</TABLE>

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

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Year Ended Period Ended
December 31, December 31,
1999 1998***
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 9.31 10.00
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.88 0.48
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized losses (0.72) (0.74)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.16 (0.26)
- ------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.62) (0.43)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.00)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.62) (0.43)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 8.85 9.31
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b)(c) 1.65 (2.57)**
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 15,358 5,915
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 0.80 0.80*
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%) (c)(d) 9.36 7.93*
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 16 23**
</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, these ratios would have been
1.28% and 1.84% (annualized), respectively.

<PAGE>
FINANCIAL HIGHLIGHTS

LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Year Ended December 31, Period Ended
December 31,
1999 1998 1997***
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 11.90 10.07 10.00
- --------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.06 0.06 0.01
- --------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on investments 0.94 1.82 0.07
- --------------------------------------------------------------------------------------------------------------
Total from investment operations 1.00 1.88 0.08
- --------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.01)
- --------------------------------------------------------------------------------------------------------------
Dividends form net realized gains on investments (0.38) --- ---
- --------------------------------------------------------------------------------------------------------------
Total distributions (0.43) (0.05) (0.01)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 12.47 11.90 10.07
- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 8.47 18.67(c) 0.80**(c)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 80,095 44,870 22,228
- --------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d) 0.95 1.00(e) 1.00*(e)
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.47 0.54(c) 0.83*(c)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 75 70 1**
</TABLE>

* Annualized.

** Not Annualized.

*** For the period from the commencement of operations November
17, 1997 to December 31, 1997.

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

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

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

(e) If the Fund had paid all of its expenses and there had been no
reimbursement from the Manager, these ratios would have been
1.04% and 1.45% (annualized), respectively.

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 10.00
- --------------------------------------------------------------------------------------------
Net investment income (a) 0.06
- --------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currency transactions 2.36
- --------------------------------------------------------------------------------------------
Total from investment operations 2.42
- --------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.05)
- --------------------------------------------------------------------------------------------
In excess of net investment income (0.06)
- --------------------------------------------------------------------------------------------
Total distributions (0.11)
- --------------------------------------------------------------------------------------------
Net asset value, end of period ($) 12.31
- --------------------------------------------------------------------------------------------
TOTAL RETURN
Total investment return (%)(b)(c) 24.24**
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 7,707
- --------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 1.40*
- --------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.85*
- --------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 1**
</TABLE>

* Annualized.

** Not Annualized.

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

(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
2.36% (annualized).

<PAGE>
FINANCIAL HIGHLIGHTS

CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Period Ended
December 31,
1999***
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 10.00
- ---------------------------------------------------------------------------------
Net investment income (a) 0.31
- ---------------------------------------------------------------------------------
Net realized and unrealized losses on investments (1.70)
- ---------------------------------------------------------------------------------
Total from investment operations (1.39)
- ---------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.22)
- ---------------------------------------------------------------------------------
Return of capital (0.05)
- ---------------------------------------------------------------------------------
Total distributions (0.27)
- ---------------------------------------------------------------------------------
Net asset value, end of period ($) 8.34
- ---------------------------------------------------------------------------------
TOTAL RETURN
Total investment return (%)(b)(c) (13.80)**
- ---------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 2,180
- ---------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d)(e) 1.45*
- ---------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 5.90*
- ---------------------------------------------------------------------------------
Portfolio turnover ratio (%) 57**
</TABLE>

* Annualized.

** Not Annualized.

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

(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
4.25% (annualized).

<PAGE>

SHAREHOLDER INFORMATION

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

<PAGE>

FOR MORE INFORMATION

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

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

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

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

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

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

INVESTMENT COMPANY ACT FILE NUMBER:

Liberty Variable Investment Trust: 811-07556

<PAGE>

LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED MAY 1, 2000

Colonial Growth and Income Fund, Variable Series
Stein Roe Global Utilities Fund, Variable Series
Colonial U.S. Growth & Income Fund, Variable Series
Colonial Strategic Income Fund, Variable Series
Colonial International Fund for Growth, Variable Series
Newport Tiger Fund, Variable Series

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

* * * *

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

* * * *

NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE

<PAGE>

TABLE OF CONTENTS

THE TRUST ............................................................ 3

THE FUNDS ............................................................ 4

Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History
Colonial Growth and Income Fund, Variable Series...................... 4
Stein Roe Global Utilities Fund, Variable Series...................... 6
Colonial U.S. Growth & Income Fund, Variable Series................... 8
Colonial Strategic Income Fund, Variable Series....................... 10
Colonial International Fund for Growth, Variable Series............... 13
Newport Tiger Fund, Variable Series................................... 15

TRUST MANAGEMENT ORGANIZATIONS ....................................... 17

The Trustees.......................................................... 17
Investment Advisor: Liberty Advisory Services Corp................... 17
Investment Sub-Advisors and Portfolio Managers........................ 17

OTHER INVESTMENT STRATEGIES AND RISKS ................................ 20

U.S. Government Securities............................................ 20
Structure Risk........................................................ 20
Zero Coupon Bonds..................................................... 20
Convertible Securities................................................ 20
Derivative Strategies................................................. 21
Temporary Defensive Strategies........................................ 21

FINANCIAL HIGHLIGHTS ................................................. 22

SHAREHOLDER INFORMATION .............................................. 28

Purchases and Redemptions............................................. 28
How the Funds Calculate Net Asset Value............................... 28
Dividends and Distributions........................................... 28
Tax Consequences...................................................... 28

<PAGE>

THE TRUST

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

<TABLE>
<CAPTION>
FUND SUB-ADVISOR
<S> <C>
Colonial Growth and Income Fund, Variable Series (Growth & Income Fund) Colonial Management Associates, Inc. (Colonial)
Colonial International Fund for Growth, Variable Series (International Fund)
Colonial U.S. Growth & Income Fund, Variable Series (U.S. Growth & Income
Fund) (formerly Colonial U.S. Stock Fund, Variable Series)
Colonial Strategic Income Fund, Variable Series (Strategic Income Fund)
- ----------------------------------------------------------------------------------------------------------------------------------
Stein Roe Global Utilities Fund, Variable Series (Global Utilities Fund) Stein Roe & Farnham Incorporated (Stein Roe)
- ----------------------------------------------------------------------------------------------------------------------------------
Newport Tiger Fund, Variable Series (Tiger Fund) Newport Fund Management, Inc. (Newport)
</TABLE>

Other Funds may be added to or deleted from the Trust from time to time.

<PAGE>

THE FUNDS

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks primarily income and long-term capital growth and, secondarily,
preservation of capital.

PRIMARY INVESTMENT STRATEGIES

1. Companies whose current business activities provide earnings,
dividends or assets that represent above average value;

2. Companies which have a record of consistent earnings growth
that may provide above average stability or value in turbulent
markets; or

3. Companies with anticipated business growth prospects that
represent above average value.

Colonial assesses whether a company's prospects are "above average." Colonial
makes this judgment subjectively, based upon available information.

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

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial Growth and Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was -1.59%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +16.92%

Worst quarter: 3rd quarter 1998, -13.57%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 5.55 18.32 14.52
- ---------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 22.46(1)
- ---------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 17.74(1)
</TABLE>

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

<PAGE>

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +8.05%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 28.63 23.06 15.04
- --------------------------------------------------------------------------------------------------
MSCI Index (%) N/A 24.93 19.76 16.86(2)
- --------------------------------------------------------------------------------------------------
S&P Index (%) N/A -8.88 13.66 9.11(2)
- --------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 15.40 19.64 12.14(2)
</TABLE>

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

<PAGE>

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

INVESTMENT GOALS

The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES

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

- debt securities that are convertible into common stock;

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

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

PRIMARY INVESTMENT RISKS

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

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

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +0.40%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 12.00 22.97 21.64
- ------------------------------------------ -------------- -------------- ----------- -------------
S&P Index (%) N/A 21.03 28.54 26.73(3)
- ------------------------------------------ -------------- -------------- ----------- -------------
Lipper Average (%) N/A 14.63 21.86 20.42(3)
</TABLE>

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

<PAGE>

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

The Fund seeks to achieve its investment goals by investing in:

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

- - debt securities issued by foreign governments; and

- - lower-rated corporate debt securities.

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

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

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

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

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

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

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."

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was -0.10%.

For period shown in bar chart:

Best quarter: 1st quarter 1995, +5.62%

Worst quarter: 1st quarter 1997, -1.00%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR 5 YEARS LIFE OF THE
DATE FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 1.78 8.88 8.26
- -------------------------------------------------------------------------------------------------
Lehman Index (%) N/A (2.15) 7.61 7.06(4)
- -------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 0.76 7.84 7.03(4)
</TABLE>

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

<PAGE>

COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital growth.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was -1.08%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +23.31%

Worst quarter: 3rd quarter 1998, -16.04%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 5/2/94 40.58 11.42 8.81
- --------------------------------------------------------------------------------------------------
MSCI Index (%) N/A 26.96 12.83 11.21(5)
- --------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 43.23 17.36 14.16(5)
</TABLE>

(5) Performance information is from April 30, 1994.

<PAGE>

NEWPORT TIGER FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term capital appreciation.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +1.91%.

For the period shown in bar chart:

Best quarter: 4th quarter 1998, +37.93%

Worst quarter: 2nd quarter 1998, -28.81%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR FUND
<S> <C> <C> <C>
Fund (%) 5/1/95 68.01 7.31
- -------------------------------------------------------------------------------------
MSCI Index (%) N/A 31.00 15.72(6)
- -------------------------------------------------------------------------------------
Lipper Average (%) N/A 79.74 4.24(6)
</TABLE>

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

<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

THE TRUSTEES

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

INVESTMENT ADVISOR: LIBERTY ADVISORY SERVICES CORP.

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

<TABLE>
<S> <C>
Colonial Growth and Income Fund, Variable Series 0.65%
Stein Roe Global Utilities Fund, Variable Series 0.65%
Colonial U.S. Growth & Income Fund, Variable Series 0.80%
Colonial Strategic Income Fund, Variable Series 0.65%
Colonial International Fund for Growth, Variable Series 0.90%
Newport Tiger Fund, Variable Series 0.90%
</TABLE>

INVESTMENT SUB-ADVISORS AND PORTFOLIO MANAGERS

COLONIAL

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

<TABLE>
<S> <C>
Colonial Growth and Income Fund, Variable Series 0.45%
Colonial U.S. Growth & Income Fund, Variable Series 0.60%
Colonial Strategic Income Fund, Variable Series 0.45%
Colonial International Fund for Growth, Variable Series 0.70%
</TABLE>

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

<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

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

STEIN ROE

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

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

<PAGE>

TRUST MANAGEMENT ORGANIZATIONS

NEWPORT

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

AFFILIATED BROKER/DEALER

<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

U.S. GOVERNMENT SECURITIES

STRUCTURE RISK

ZERO COUPON BONDS

CONVERTIBLE SECURITIES

<PAGE>

OTHER INVESTMENT STRATEGIES AND RISKS

DERIVATIVE STRATEGIES

TEMPORARY DEFENSIVE STRATEGIES

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

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

<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ($) 16.39 15.34 13.96 12.60 10.03
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.17 0.20 0.28 0.28 0.29
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on
investments 0.69 1.50 3.75 1.98 2.72
- -------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.86 1.70 4.03 2.26 3.01
- -------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.15) (0.18) (0.27) (0.28) (0.25)
- -------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.00) (0.01) --- ---
- -------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains (3.85) (0.47) (2.37) (0.62) (0.19)
- -------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains (0.07) (0.00) --- --- ---
- -------------------------------------------------------------------------------------------------------------------------
Total distributions (4.07) (0.65) (2.65) (0.90) (0.44)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 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) ($) 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>

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

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

<PAGE>

FINANCIAL HIGHLIGHTS

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 13.76 11.92 10.70 10.50 8.11
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.28 0.24 0.46 0.46 0.46
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses)
on investments 3.63 1.93 2.62 0.23 2.39
- -------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.91 2.17 3.08 0.69 2.85
- -------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.23) (0.21) (0.48) (0.49) (0.46)
- -------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.01) --- --- ---
- -------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on investments (0.29) (0.11) (1.38) --- ---
- -------------------------------------------------------------------------------------------------------------------------
Total distributions (0.52) (0.33) (1.86) (0.49) (0.46)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 17.15 13.76 11.92 10.70 10.50
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 28.63 18.33 28.75 6.53 35.15
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 110,150 71,186 54,603 47,907 51,597
- -------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 0.77 0.82 0.83 0.81 0.83
- -------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%)(c) 1.91 1.90 3.96 4.36 4.98
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 52 53 89 14 18
</TABLE>

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

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

<PAGE>

FINANCIAL HIGHLIGHTS

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

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 18.79 16.29 14.22 12.36 10.27
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.14 0.16 0.20 0.19 0.21
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains on investments 2.07 3.12 4.37 2.52 2.84
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.21 3.28 4.57 2.71 3.05
- --------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.11) (0.12) (0.18) (0.17) (0.16)
- --------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- --- (0.01) --- ---
- --------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains on (1.04) (0.64) (2.30) (0.68) (0.80)
investments
- --------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains --- (0.02) (0.01) --- ---
- --------------------------------------------------------------------------------------------------------------------------
Total distributions (1.15) (0.78) (2.50) (0.85) (0.96)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 19.85 18.79 16.29 14.22 12.36
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b) 12.00 20.15 32.23 21.84 29.70(c)
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ($) 212,355 146,239 96,715 60,855 43,017
- --------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (d) 0.88 0.90 0.94 0.95 1.00(e)
- --------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (d) 0.69 0.88 1.19 1.39 1.72(c)
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 101 64 63 77 115
</TABLE>

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

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

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

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

<PAGE>
FINANCIAL HIGHLIGHTS

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 11.08 11.15 11.04 10.99 9.79
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.95 0.91 0.90 0.92 0.55
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses)
on investments and foreign currency transactions (0.75) (0.24) 0.11 0.16 1.24
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.20 0.67 1.01 1.08 1.79
- ------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.84) (0.72) (0.79) (0.96) (0.56)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.02) (0.05) --- ---
- ------------------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains --- --- (0.05) (0.07) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gains --- --- (0.01) --- ---
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.84) (0.74) (0.90) (1.03) (0.59)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.44 11.08 11.15 11.04 10.99
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%) (b) 1.78 6.03 9.11(c) 9.83(c) 18.30(c)
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 170,702 118,985 73,175 53,393 48,334
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%) (e) 0.75 0.78 0.80(d) 0.80(d) 0.84(d)
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets (%) (e) 8.57 7.92 7.86(c) 8.13(c) 8.08(c)
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 35 50 94 114 281
</TABLE>

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

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

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

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

<PAGE>

FINANCIAL HIGHLIGHTS

COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 2.00 1.78 1.96 1.97 1.88
- -----------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.03 0.02 0.02 0.02 0.01
- -----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) on
investments 0.78 0.21 (0.08) 0.09 0.10
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.81 0.23 (0.06) 0.11 0.11
- -----------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.02) (0.00) (0.02) --- (0.02)
- -----------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- (0.01) (0.02) --- ---
- -----------------------------------------------------------------------------------------------------------------------
Dividends from net realized gains --- --- (0.08) (0.12) ---
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (0.02) (0.01) (0.12) (0.12) (0.02)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 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 period (000) ($) 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.

<PAGE>

FINANCIAL HIGHLIGHTS

NEWPORT TIGER FUND, VARIABLE SERIES

<TABLE>
<CAPTION>
Years Ended December 31, Period Ended
December 31,
1999 1998 1997 1996 1995***
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ($) 1.57 1.71 2.52 2.28 2.00
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (a) 0.03 0.03 0.03 0.03 0.01
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) on investments 1.04 (0.14) (0.81) 0.24 0.29
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.07 (0.11) (0.78) 0.27 0.30
- ---------------------------------------------------------------------------------------------------------------------------
Less distributions:
Distributions from net investment income (0.02) (0.03) (0.02) (0.02) (0.01)
- ---------------------------------------------------------------------------------------------------------------------------
In excess of net investment income --- --- (0.01) --- (0.01)
Total distributions (0.02) (0.03) (0.03) (0.03) (0.02)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 2.62 1.57 1.71 2.52 2.28
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN:
Total investment return (%)(b) 68.01 (6.43) (31.14) 11.73 15.00**
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000) ($) 46,125 23,655 24,934 34,642 18,977
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets (%)(c) 1.21 1.30 1.25 1.27 1.75*
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets (%)(c) 1.65 2.16 1.14 1.20 0.89*
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover ratio (%) 12 16 27 7 12**
</TABLE>

* Annualized.

** Not Annualized.

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

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

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

<PAGE>

SHAREHOLDER INFORMATION

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

<PAGE>

FOR MORE INFORMATION

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

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

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

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

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

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

INVESTMENT COMPANY ACT FILE NUMBER:

Liberty Variable Investment Trust: 811-07556

<PAGE>

LIBERTY VARIABLE INVESTMENT TRUST

PROSPECTUS DATED MAY 1, 2000

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

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

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

NOT FDIC MAY LOSE VALUE
INSURED NO BANK GUARANTEE

<PAGE>

TABLE OF CONTENTS

THE TRUST ............................................................ 3

THE FUNDS ............................................................ 4

Each of these sections discusses the following
topics: Investment Goals, Primary Investment Strategies,
Primary Investment Risks and Performance History
Colonial Growth and Income Fund, Variable Series...................... 4
Stein Roe Global Utilities Fund, Variable Series...................... 6
Colonial Small Cap Value Fund, Variable Series........................ 8
Colonial U.S. Growth & Income Fund, Variable Series................... 10
Colonial Strategic Income Fund, Variable Series....................... 12
Colonial High Yield Securities Fund, Variable Series.................. 15
Liberty All-Star Equity Fund, Variable Series......................... 18

TRUST MANAGEMENT ORGANIZATIONS ....................................... 21

The Trustees.......................................................... 21
Investment Advisor: Liberty Advisory Services Corp................... 21
Investment Sub-Advisors and Portfolio Managers........................ 21

OTHER INVESTMENT STRATEGIES AND RISKS ................................ 24

U.S. Government Securities............................................ 24
Structure Risk........................................................ 24
Zero Coupon Bonds..................................................... 24
Convertible Securities................................................ 24
Derivative Strategies................................................. 25
Temporary Defensive Strategies........................................ 25

FINANCIAL HIGHLIGHTS ................................................. 26

SHAREHOLDER INFORMATION .............................................. 33

Purchases and Redemptions............................................. 33
How the Funds Calculate Net Asset Value............................... 33
Dividends and Distributions........................................... 33
Tax Consequences...................................................... 33

<PAGE>

THE TRUST

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

<TABLE>
<CAPTION>
FUND SUB-ADVISOR
<S> <C>
Colonial Growth and Income Fund, Variable Series (Growth & Income Fund) Colonial Management Associates, Inc. (Colonial)
Colonial Small Cap Value Fund, Variable Series (Small Cap Fund)
Colonial U.S. Growth & Income Fund, Variable Series (U.S. Growth & Income
Fund) (formerly Colonial U.S. Stock Fund, Variable Series)
Colonial Strategic Income Fund, Variable Series (Strategic Income Fund)
Colonial High Yield Securities Fund, Variable Series (High Yield Fund)
- -----------------------------------------------------------------------------------------------------------------------------------

Stein Roe Global Utilities Fund, Variable Series (Global Utilities Fund) Stein Roe & Farnham Incorporated
(Stein Roe)
- -----------------------------------------------------------------------------------------------------------------------------------
Liberty All-Star Equity Fund, Variable Series (All-Star Equity Fund) Liberty Asset Management Company (LAMCO)
</TABLE>

Other Funds may be added to or deleted from the Trust from time to time.

<PAGE>

THE FUNDS

COLONIAL GROWTH AND INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks primarily income and long-term capital growth and, secondarily,
preservation of capital.

PRIMARY INVESTMENT STRATEGIES

1. Companies whose current business activities provide earnings,
dividends or assets that represent above average value;

2. Companies which have a record of consistent earnings growth
that may provide above average stability or value in turbulent
markets; or

3. Companies with anticipated business growth prospects that
represent above average value.

Colonial assesses whether a company's prospects are "above average." Colonial
makes this judgment subjectively, based upon available information.

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

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial Growth and Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was -1.59%%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +16.92%

Worst quarter: 3rd quarter 1998, -13.57%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 5.55 18.32 14.52
- --------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 22.46(1)
- --------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 17.74(1)
</TABLE>

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

<PAGE>

STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

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

<PAGE>

THE FUNDS Stein Roe Global Utilities Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +8.05%.

For period shown in bar chart:

Best quarter: 4th quarter 1999, +24.73%

Worst quarter: 1st quarter 1994, -8.91%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C>
Fund (%) 7/1/93 28.63 23.06 15.04
- ---------------------------------------------------------------------------------------------------
MSCI Index (%) N/A 24.93 19.76 16.86(2)
- ---------------------------------------------------------------------------------------------------
S&P Index (%) N/A -8.88 13.66 9.11(2)
- ---------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 15.40 19.64 12.14(2)
</TABLE>

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

<PAGE>

COLONIAL SMALL CAP VALUE FUND, VARIABLE SERIES

INVESTMENT GOAL

The Fund seeks long-term growth.

PRIMARY INVESTMENT STRATEGIES

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

PRIMARY INVESTMENT RISKS

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

<PAGE>
THE FUNDS Colonial Small Cap Value Fund, Variable Series

PERFORMANCE HISTORY

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +1.43%.

For period shown in bar chart:

Best quarter: 2nd quarter 1999, +16.78%

Worst quarter: 1st quarter 1999, -13.27%

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

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

<PAGE>

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

INVESTMENT GOALS

The Fund seeks long-term growth and income.

PRIMARY INVESTMENT STRATEGIES

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

- debt securities that are convertible into common stock;

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

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

PRIMARY INVESTMENT RISKS

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

<PAGE>

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

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

The Fund's year-to-date total return through March 31, 2000 was +0.40%.

For period shown in bar chart:

Best quarter: 4th quarter 1998, +21.79%

Worst quarter: 3rd quarter 1998, -14.16%

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

<TABLE>
<CAPTION>
INCEPTION LIFE OF THE
DATE 1 YEAR 5 YEARS FUND
<S> <C> <C> <C> <C> <C>
Fund (%) 7/5/94 12.00 22.97 21.64
- -------------------------------------------------------------------------------------------------
S&P Index (%) N/A 21.03 28.54 26.73(4)
- -------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 14.63 21.86 20.42(4)
</TABLE>

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

<PAGE>

COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES

INVESTMENT GOALS

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

PRIMARY INVESTMENT STRATEGIES

The Fund seeks to achieve its investment goals by investing in:

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

- - debt securities issued by foreign governments; and

- - lower-rated corporate debt securities.

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

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

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

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

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

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

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."

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

<PAGE>

THE FUNDS Colonial Strategic Income Fund, Variable Series

PERFORMANCE HISTORY

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

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was -0.10%.

For period shown in bar chart:

Best quarter: 1st quarter 1995, +5.62%

Worst quarter: 1st quarter 1997, -1.00%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR 5 YEARS LIFE OF THE
DATE FUND
<S> <C> <C> <C> <C>
Fund (%) 7/5/94 1.78 8.88 8.26
- ------------------------------------------------------------------------------------------------
Lehman Index (%) N/A (2.15) 7.61 7.06(5)
- ------------------------------------------------------------------------------------------------
Lipper Average (%) N/A 0.76 7.84 7.03(5)
</TABLE>

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

<PAGE>

COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES

INVESTMENT GOALS

The Fund seeks current income and total return.

PRIMARY INVESTMENT STRATEGIES

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

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

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

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

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

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

PRIMARY INVESTMENT RISKS

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

<PAGE>

THE FUNDS Colonial High Yield Securities Fund, Variable Series

<PAGE>

THE FUNDS Colonial High Yield Securities Fund, Variable Series

PERFORMANCE HISTORY

CALENDAR YEAR TOTAL RETURNS

[BAR CHART]

The Fund's year-to-date total return through March 31, 2000 was -1.36%.

For period shown in bar chart:

Best quarter: 1st quarter 1999, +3.11%

Worst quarter: 3rd quarter 1999, -1.90%

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

<TABLE>
<CAPTION>
INCEPTION 1 YEAR LIFE OF THE
DATE FUND
<S> <C> <C> <C> <C>
Fund (%) 5/19/98 1.65 (0.59)
- ------------------------------------------ -------------- -------------- ----------------
CS Index (%) N/A 3.28 0.06(6)
- ------------------------------------------ -------------- -------------- ----------------
Lipper Average (%) N/A 4.04 (0.28)(6)
</TABLE>