LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES
SUPPLEMENT TO THE PROSPECTUSES DATED MAY 1, 2000 AND JUNE 1, 2000
Effective November 1, 2000, J.P. Morgan Investment Management Inc. was replaced
by Mastrapasqua & Associates (Mastrapasqua) to provide portfolio management
services to the Liberty All-Star Equity Fund, Variable Series (Fund). Frank
Mastrapasqua, Ph.D, Chairman and Chief Executive Officer, and Thomas A. Trantum,
CFA, President, will be responsible for the management of the Fund's assets
assigned to Mastrapasqua.
Pursuant to the portfolio management agreement, the Fund's sub-advisor, Liberty
Asset Management Company, pays Mastrapasqua a fee at an annual rate of 0.30% of
the average daily net assets of that portion of the Fund's portfolio assigned to
Mastrapasqua.
In addition to Mastrapasqua, the Fund's current portfolio managers are Boston
Partners Asset Management, L.P., Oppenheimer Capital, TCW Investment Management
Company and Westwood Management Corp.
ANN-36/913D-1100 November 21, 2000
<PAGE>
LIBERTY VARIABLE INVESTMENT TRUST
LIBERTY VALUE FUND, VARIABLE SERIES
STEIN ROE GLOBAL UTILITIES FUND, VARIABLE SERIES
COLONIAL INTERNATIONAL FUND FOR GROWTH, VARIABLE SERIES
COLONIAL U.S. GROWTH & INCOME FUND, VARIABLE SERIES
COLONIAL STRATEGIC INCOME FUND, VARIABLE SERIES
NEWPORT TIGER FUND, VARIABLE SERIES
LIBERTY ALL-STAR EQUITY FUND, VARIABLE SERIES
COLONIAL SMALL CAP VALUE FUND, VARIABLE SERIES
COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES
COLONIAL INTERNATIONAL HORIZONS FUND, VARIABLE SERIES
COLONIAL GLOBAL EQUITY FUND, VARIABLE SERIES
CRABBE HUSON REAL ESTATE INVESTMENT FUND, VARIABLE SERIES
LIBERTY NEWPORT JAPAN OPPORTUNITIES FUND, VARIABLE SERIES
LIBERTY SELECT VALUE FUND, VARIABLE SERIES
RYDEX FINANCIAL SERVICES FUND, VARIABLE SERIES
RYDEX HEALTH CARE FUND, VARIABLE SERIES
LIBERTY S&P 500 INDEX FUND, VARIABLE SERIES
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 2000, REVISED JUNE 1, 2000
(REPLACING SUPPLEMENT DATED JUNE 27, 2000)
The Funds' Statement of Additional Information is amended as follows:
1. The following is added as the first paragraph under the section
"ORGANIZATION AND HISTORY":
On November 1, 2000, Liberty Financial Companies, Inc. ("Liberty
Financial"), the ultimate parent of Liberty Advisory Services Corp., the
Funds' advisor, announced that it had retained CS First Boston to help it
explore strategic alternatives, including the possible sale of Liberty
Financial.
2. The third paragraph on page seven under the section "INVESTMENT MANAGEMENT
AND OTHER SERVICES - General" is changed in its entirety as follows:
Oppenheimer Capital. Oppenheimer Capital, an investment advisor since 1969,
located at 1345 Avenue of the Americas, New York, New York 10105, is a
Delaware partnership and an indirect wholly-owned subsidiary of Allianz
A.G. Oppenheimer Capital's principal executive officer is Kenneth M.
Poovey. As of March 31, 2000, Oppenheimer Capital managed over $45 billion
in assets.
3. Effective November 1, 2000, J.P. Morgan Investment Management Inc. was
replaced by Mastrapasqua & Associates ("Mastrapasqua") to serve as one of
the Liberty All-Star Equity Fund, Variable Series' ("Fund") Portfolio
Managers.
Mastrapasqua is located at 814 Church Street, Suite 600, Nashville,
Tennessee 37203. Established in 1993, Mastrapasqua is an investment advisor
to individuals, foundations, endowments, retirement plans, mutual funds and
other institutions. As of September 30, 2000, Mastrapasqua was owned 100%
by its officers and trustees. Frank Mastrapasqua, Ph.D., Chairman and Chief
Executive Officer, Thomas A. Trantum, President, and Mauro Mastrapasqua,
First Vice President, are deemed to be control persons of Mastrapasqua by
virtue of the aggregate ownership by them of more than 25% of the
outstanding voting stock of Mastrapasqua. As of September 30, 2000,
Mastrapasqua had $2.5 billion in assets under management.
Pursuant to the portfolio management agreement, the Fund's sub-advisor,
Liberty Asset Management Company, pays Mastrapasqua a fee at an annual rate
of 0.30% of the average daily net assets of that portion of the Fund's
portfolio assigned to Mastrapasqua.
In addition to Mastrapasqua, the Fund's current portfolio managers are
Boston Partners Asset Management, L.P., Oppenheimer Capital, TCW Investment
Management Company and Westwood Management Corp.
ANN-35/914D-1100 November 21, 2000
