COLONIAL SHORT DURATION U.S. GOVERNMENT FUND
                   COLONIAL INTERMEDIATE U.S. GOVERNMENT FUND
                        COLONIAL FEDERAL SECURITIES FUND

                             CLASS A, B AND C SHARES

                         SUPPLEMENT TO PROSPECTUS DATED
                                 JANUARY 1, 2000
                    (Replacing Supplements dated June 23, 2000,
                       August 1, 2000 and October 24, 2000)


Effective July 14, 2000, the Funds changed their names.  Colonial Short Duration
U.S.  Government Fund changed its name to "Liberty Short Term Government  Fund,"
Colonial  Intermediate  U.S.  Government  Fund  changed  its  name  to  "Liberty
Intermediate  Government Fund" and Colonial Federal  Securities Fund changed its
name to "Liberty Federal Securities Fund."

Effective  September 19, 2000,  Michael  Bissonnette began  co-managing  Liberty
Intermediate Government Fund.

The  following  replaces  the  paragraph  for  Michael   Bissonnette  under  the
sub-caption,  PORTFOLIO  MANAGERS,  under the section MANAGING THE FUNDS for the
Liberty Intermediate Government Fund in the Funds' Prospectus:

MICHAEL BISSONNETTE,  a senior vice president of Colonial Management Associates,
Inc. (Colonial), is a co-manager for the Liberty Federal Securities Fund and the
Liberty Intermediate Government Fund. Prior to joining Colonial, Mr. Bissonnette
was a portfolio  manager for APAM,  Inc. from June,  1998 to June,  1999,  and a
portfolio  manager at Caxton  Corporation  from July,  1996 to June,  1998. From
June,  1993 to June,  1996,  Mr.  Bissonnette  served as a portfolio  manager of
fixed-income funds and a vice president of Colonial.

Effective  September 19, 2000, Ann T. Peterson began  co-managing the Liberty
Federal  Securities Fund.

The following  replaces the paragraph for Ann T. Peterson under the sub-caption,
PORTFOLIO MANAGERS, under the section MANAGING THE FUNDS for the Liberty Federal
Securities Fund in the Funds' Prospectus:

ANN T. PETERSON, a vice president of Colonial, is the lead portfolio manager for
the Liberty Short Term Government Fund. Ms. Peterson also serves as a co-manager
of the Liberty  Intermediate  Government Fund and the Liberty Federal Securities
Fund.  Since 1993,  she has served as a manager or a co-manager of various other
Colonial taxable income funds.

The footnote to the table "Class A Sales  Charges"  under the  subcaption  SALES
CHARGES under the section YOUR ACCOUNT is revised as follows:

Class A shares bought without an initial sales charge in accounts aggregating $1
million to $25 million at the time of  purchase  are subject to a 1% CDSC if the
shares are sold  within 18 months of the time of  purchase.  Subsequent  Class A
purchases  that bring your account  value above $1 million are subject to a CDSC
if redeemed within 18 months of the date of purchase. The 18-month period begins
on the first day of the month  following each purchase.  The CDSC does not apply
to retirement plans purchased through a fee-based program.

The following  replaces the table called  "Purchases  Over $1 Million" under the
subcaption SALES CHARGES under the section YOUR ACCOUNT:

AMOUNT PURCHASED                        COMMISSION %
First $3 million                            1.00
$3 million to less than $5 million          0.80
$5 million to less than $25 million         0.50
$25 million or more                         0.25

The commission to financial  advisors for Class A share purchases of $25 million
or more is paid  over 12  months  but  only  to the  extent  the  shares  remain
outstanding.

For Class A share purchases by participants  in certain group  retirement  plans
offered through a fee-based program,  financial advisors receive a 1% commission
from the distributor on all purchases of less than $3 million.

GOV-36/805D-1100                                             November 15, 2000



                       COLONIAL FEDERAL SECURITIES FUND
                                 CLASS Z SHARES

                 SUPPLEMENT TO PROSPECTUS DATED JANUARY 1, 2000
                  (Replacing  Supplements  dated June 23, 2000,
                      August 15, 2000 and October 24, 2000)


Effective  July 14,  2000,  the Fund  changed  its name  from  Colonial  Federal
Securities Fund to "Liberty Federal Securities Fund."

Effective September 19, 2000, Ann T. Peterson began co-managing the Fund.

The  following  paragraph  is  being  added  under  the  sub-caption,  PORTFOLIO
MANAGERS, under the section MANAGING THE FUND:

ANN T. PETERSON,  a vice  president  of Colonial  Management  Associates,  Inc.
(Colonial),  is a co-manager for the Fund and has managed or co-managed  various
other Colonial taxable income funds since 1993.

The following investors are now eligible to purchase Class Z shares: (i) clients
of  broker-dealers  or registered  investment  advisors that both  recommend the
purchase of Fund  shares and charge  such  clients an  asset-based  fee;  (ii) a
retirement  plan (or the custodian for such plan) with  aggregate plan assets of
at least $5 million at the time of purchase and which purchases  shares directly
from Liberty Funds Distributor, Inc., the Fund's distributor, or through a third
party  broker-dealer;  (iii)  any  insurance  company,  trust  company  or  bank
purchasing shares for its own account; (iv) any endowment, investment company or
foundation;  (v) clients of investment  advisory  affiliates of the  distributor
provided that the clients meet certain  criteria  established by the distributor
and its affiliates;  (vi) any shareholder (or family member of such shareholder)
who owned  shares of any of the funds of Liberty  Acorn Trust on  September  29,
2000  (when all of the then  outstanding  shares of  Liberty  Acorn  Trust  were
re-designated  Class Z shares) and who has since then continued to own shares of
any funds  distributed  by Liberty  Funds  Distributor,  Inc.;  (vii) any person
investing all or part of the proceeds of a  distribution,  roll over or transfer
of assets into a Liberty IRA,  from any deferred  compensation  plan which was a
shareholder of any of the funds of Liberty Acorn Trust on September 29, 2000, in
which the investor was a participant and through which the investor  invested in
one or more of the  funds  of  Liberty  Acorn  Trust  immediately  prior  to the
distribution,  roll over or transfer; (viii) any trustee of Liberty Acorn Trust,
any employee of Liberty Wanger Asset Management, L.P., or a member of the family
of such trustee or employee; and (ix) any person or entity listed in the account
registration for any account (such as joint owners,  trustees,  custodians,  and
designated  beneficiaries) that held shares of any of the funds of Liberty Acorn
Trust on September 29, 2000 and that has since then  continued to hold shares of
any fund distributed by Liberty Funds Distributor, Inc.

Initial  purchases of Class Z shares are subject to a minimum purchase amount of
$100,000, except that purchases by (a) retirement plans described in clause (ii)
above are not  subject to any  initial  investment  minimum,  and (b)  investors
described  in  clauses  (vi),  (viii)  and (ix)  above are  subject to a minimum
purchase amount of $1,000.  The Fund reserves the right to change the investment
minimums.


GOV-36/804D-1100                                              November 15, 2000