Columbia Money Market Fund


77D Policies with respect to security investments

On April 15, 2005, the following was added to the Fund's Statements of
Additional Information

Proposed Fundamental Restrictions
The Funds may not, as a matter of fundamental policy:

1.   Underwrite  any issue of  securities  issued by other  persons  within  the
     meaning of the 1933 Act except when it might be deemed to be an underwriter
     either: (a) in connection with the disposition of a portfolio security;  or
     (b) in connection with the purchase of securities  directly from the issuer
     thereof in accordance with its investment objective. This restriction shall
     not limit the Portfolio's  ability to invest in securities  issued by other
     registered investment companies.

2.   Purchase or sell real  estate,  except a Fund may  purchase  securities  of
     issuers  which deal or invest in real  estate and may  purchase  securities
     which are  secured by real  estate or  interests  in real estate and it may
     hold and  dispose  of real  estate or  interests  in real  estate  acquired
     through  the  exercise  of its rights as a holder of  securities  which are
     secured by real estate or interests therein.

3.   Purchase  or  sell  commodities,  except  that  a Fund  may  to the  extent
     consistent with its investment objective, invest in securities of companies
     that purchase or sell  commodities  or which invest in such  programs,  and
     purchase  and sell  options,  forward  contracts,  futures  contracts,  and
     options  on  futures  contracts  and enter  into swap  contracts  and other
     financial  transactions  relating to commodities.  This limitation does not
     apply to foreign currency transactions including without limitation forward
     currency contracts.

4.   [Except  for  Funds  that are  "concentrated"  in an  industry  or group of
     related industries.]  Purchase any securities which would cause 25% or more
     of the value of its total  assets at the time of purchase to be invested in
     the securities of one or more issuers  conducting their principal  business
     activities in the same industry,  provided that: (a) there is no limitation
     with respect to  obligations  issued or guaranteed by the U.S.  Government,
     any state or  territory  of the United  States,  or any of their  agencies,
     instrumentalities or political  subdivisions;  and (b) notwithstanding this
     limitation or any other fundamental  investment  limitation,  assets may be
     invested in the securities of one or more management  investment  companies
     to the  extent  permitted  by the  1940  Act,  the  rules  and  regulations
     thereunder and any applicable exemptive relief.

5.   Make loans,  except to the extent  permitted by the 1940 Act, the rules and
     regulations thereunder and any applicable exemptive relief.

6.   Borrow money or issue senior  securities  except to the extent permitted by
     the 1940 Act,  the  rules and  regulations  thereunder  and any  applicable
     exemptive relief.

7.   [Except for Funds  classified as  "non-diversified"  under Section 5 of the
     1940 Act.] Purchase  securities  (except securities issued or guaranteed by
     the U.S. Government,  its agencies or  instrumentalities) of any one issuer
     if, as a result,  more than 5% of its total  assets will be invested in the
     securities  of such  issuer  or it would  own more  than 10% of the  voting
     securities of such issuer,  except that:  (a) up to 25% of its total assets
     may be invested without regard to these limitations and (b) a Fund's assets
     may be  invested in the  securities  of one or more  management  investment
     companies  to  the  extent  permitted  by  the  1940  Act,  the  rules  and
     regulations thereunder,  or any applicable exemptive relief. [For municipal
     Funds only: For purposes of this  restriction,  tax exempt  securities that
     are supported solely by the revenues of a particular private entity will be
     deemed to have been issued by that entity.]



77E Legal Proceedings


Legal Proceedings
On February 9, 2005, Columbia and the Distributor (collectively, the "Columbia
Group") entered into an Assurance of Discontinuance with the New York Attorney
General ("NYAG") (the "NYAG Settlement") and consented to the entry of a
cease-and-desist order by the Securities and Exchange Commission ("SEC") (the
"SEC Order"). The SEC Order and the NYAG Settlement are referred to collectively
as the "Settlements". The Settlements contain substantially the same terms and
conditions as outlined in the agreements in principle which Columbia Group
entered into with the SEC and NYAG in March 2004.

Under the terms of the SEC Order, the Columbia Group has agreed among other
things, to: pay $70 million in disgorgement and $70 million in civil money
penalties; cease and desist from violations of the antifraud provisions and
certain other provisions of the federal securities laws; maintain certain
compliance and ethics oversight structures; retain an independent consultant to
review the Columbia Group's applicable supervisory, compliance, control and
other policies and procedures; and retain an independent distribution consultant
(see below). The Columbia Funds have also undertaken to implement certain
governance measures designed to maintain the independence of their boards of
trustees. The NYAG Settlement also, among other things, requires Columbia and
its affiliates, Banc of America Capital Management, LLC and BACAP Distributors,
LLC to reduce certain Columbia Funds, Nations Funds and other mutual funds
management fees collectively by $32 million per year for five years, for a
projected total of $160 million in management fee reductions.

Pursuant to the procedures set forth in the SEC order, the $140 million in
settlement amounts described above will be distributed in accordance with a
distribution plan to be developed by an independent distribution consultant, who
is acceptable to the SEC staff and the Columbia Funds' independent trustees. The
distribution plan must be based on a methodology developed in consultation with
the Columbia Group and the Funds' independent trustees and not unacceptable to
the staff of the SEC. At this time, the distribution plan is still under
development. As such, any gain to the Funds or its shareholders cannot currently
be determined.

As a result of these matters or any adverse publicity or other developments
resulting from them, there may be increased redemptions or reduced sales of fund
shares, which could increase transaction costs or operating expenses, or have
other adverse consequences for the funds.

A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A
copy of the NYAG Settlement is available as part of the Bank of America
Corporation Form 8-K filing on February 10, 2005.

In connection with the events described in detail above, various parties have
filed suit against certain funds, the Trustees of the Columbia Funds,
FleetBoston Financial Corporation and its affiliated entities and/or Bank of
America and its affiliated entities. More than 300 cases including those filed
against entities unaffiliated with the funds, their Boards, FleetBoston
Financial Corporation and its affiliated entities and/or Bank of America and its
affiliated entities have been transferred to the Federal District Court in
Maryland and consolidated in a multi-district proceeding (the "MDL").

The derivative cases purportedly brought on behalf of the Columbia Funds in the
MDL have been consolidated under the lead case. The fund derivative plaintiffs
allege that the funds were harmed by market timing and late trading activity
and seek, among other things, the removal of the trustees of the Columbia Funds,
removal of the Columbia Group, disgorgement of all management fees and monetary
damages. On March 21, 2005 purported class action plaintiffs filed suit in
Massachusetts state court alleging that the conduct, including market timing,
entitles Class B shareholders in certain Columbia funds to an exemption from
contingent deferred sales charges upon early redemption ("the CDSC Lawsuit").
The CDSC Lawsuit has been removed to federal court in Massachusetts and the
federal Judicial Panel has transferred the CDSC Lawsuit to the MDL.

The MDL is ongoing. Accordingly, an estimate of the financial impact of this
litigation on any Fund, if any, cannot currently be made.

On January 11, 2005, a putative class action lawsuit was filed in federal
district court in Massachusetts against, among others, the Trustees of the
Columbia Funds and Columbia. The lawsuit alleged that defendants violated common
law duties to fund shareholders as well as sections of the Investment Company
Act of 1940, by failing to ensure that the Funds and other affiliated funds
participated in securities class action settlements for which the funds were
eligible. Specifically, plaintiffs alleged that defendants failed to submit
proof of claims in connection with settlements of securities class action
lawsuits filed against companies in which the funds held positions. Plaintiffs
filed a notice of voluntary dismissal of the lawsuit as to all defendants and
all claims, without prejudice, which was so-ordered by the judge on or about
November 9, 2005.

In 2004, certain Columbia funds, advisers and affiliated entities were named as
defendants in certain purported shareholder class and derivative actions making
claims, including claims under the Investment Company and the Investment
Advisers Acts of 1940 and state law. The suits allege, inter alia, that the fees
and expenses paid by the funds are excessive and that the advisers and their
affiliates inappropriately used fund assets to distribute the funds and for
other improper purpose. On March 2, 2005, the actions were consolidated in the
Massachusetts federal court as In re Columbia Entities Litigation. The
plaintiffs filed a consolidated amended complaint on June 9, 2005.

The Funds and the other defendants to these actions, including Columbia and
various of its affiliates, certain other mutual funds advised by Columbia and
its affiliates, and various directors of such funds, have denied these
allegations and are contesting the plaintiffs' claims. These proceedings (with
the exception of the January 11, 2005 "failure to participate" litigation, which
has been dismissed) are ongoing, however, based on currently available
information, Columbia believes that these lawsuits are without merit, that the
likelihood they will have a material adverse impact on any fund is remote, and
that the lawsuits are not likely to materially affect its ability to provide
investment management services to its clients, including the Funds.