497 1 liberty.txt SUPPLEMENT LIBERTY FUNDS TRUST I Liberty High Yield Securities Fund Liberty Income Fund Liberty Strategic Income Fund Liberty Tax-Managed Aggressive Growth Fund Liberty Tax-Managed Value Fund Liberty Tax-Managed Growth Fund Liberty Tax-Managed Growth Fund II LIBERTY FUNDS TRUST II Liberty Newport Japan Opportunities Fund Liberty Newport Greater China Fund Liberty Money Market Fund Liberty Intermediate Government Fund LIBERTY FUNDS TRUST III Liberty Newport Global Equity Fund Liberty Newport International Equity Fund Liberty Select Value Fund Liberty Federal Securities Fund The Liberty Fund Liberty Contrarian Small-Cap Fund Liberty Contrarian Equity Fund Liberty Contrarian Income Fund Liberty Contrarian Fund LIBERTY FUNDS TRUST IV Liberty Tax-Exempt Fund Liberty Tax-Exempt Insured Fund Liberty Utilities Fund Liberty Municipal Money Market Fund LIBERTY FUNDS TRUST V Liberty California Tax-Exempt Fund Liberty Connecticut Tax-Exempt Fund Liberty Massachusetts Tax-Exempt Fund Liberty New York Tax-Exempt Fund Liberty Ohio Tax-Exempt Fund Liberty Global Young Investor Fund LIBERTY FUNDS TRUST VI Liberty Small-Cap Value Fund Liberty Growth & Income Fund Liberty Newport Asia Pacific Fund LIBERTY FUNDS TRUST VII Liberty Newport Tiger Fund Liberty Newport Europe Fund LIBERTY FLOATING RATE ADVANTAGE FUND LIBERTY FLOATING RATE FUND LIBERTY-STEIN ROE FUNDS INCOME TRUST Liberty High Yield Bond Fund, Class A Liberty Income Bond Fund, Class A Liberty Intermediate Bond Fund, Class A LIBERTY-STEIN ROE FUNDS INVESTMENT TRUST Liberty Midcap Growth Fund Liberty Focus Fund, Class A Liberty Small Company Growth Fund, Class A Liberty Capital Opportunities Fund, Class A Liberty Growth Investor Fund LIBERTY-STEIN ROE FUNDS MUNICIPAL TRUST Liberty High Income Municipals Fund, Class A Stein Roe Intermediate Municipals Fund, Classes A, B, C LIBERTY-STEIN ROE ADVISOR TRUST Liberty Young Investor Fund Liberty Growth Stock Fund Supplement to Prospectuses On November 1, 2001, Fleet National Bank completed its acquisition of the asset management business of Liberty Financial Companies, Inc., including each investment advisor and affiliated sub-advisor of the Funds. Fleet National Bank is a direct, wholly owned subsidiary of FleetBoston Financial Corporation, a U.S. financial holding company. Under the rules for mutual funds, the transaction resulted in a change of control of the Funds' investment advisors and affiliated sub-advisor and, therefore, an assignment of their investment advisory, and, if applicable, sub-advisory and portfolio management contracts with the Funds. At meetings of shareholders held on September 26, 2001, shareholders of the Funds approved new investment advisory, sub-advisory and portfolio management contracts. The new contracts are substantially identical in all respects to the contracts in effect prior to November 1, 2001 except for their effective and termination dates and other non-material changes. November 2, 2001 LIBERTY FUNDS TRUST I Liberty High Yield Securities Fund Liberty Income Fund Liberty Strategic Income Fund Liberty Tax-Managed Aggressive Growth Fund Liberty Tax-Managed Value Fund Liberty Tax-Managed Growth Fund Liberty Tax-Managed Growth Fund II LIBERTY FUNDS TRUST II Liberty Newport Japan Opportunities Fund Liberty Newport Greater China Fund Liberty Money Market Fund Liberty Intermediate Government Fund LIBERTY FUNDS TRUST III Liberty Newport Global Equity Fund Liberty Newport International Equity Fund Liberty Select Value Fund Liberty Federal Securities Fund The Liberty Fund Liberty Contrarian Small-Cap Fund Liberty Contrarian Equity Fund Liberty Contrarian Income Fund Liberty Contrarian Fund LIBERTY FUNDS TRUST IV Liberty High Yield Municipal Fund Liberty Tax-Exempt Fund Liberty Tax-Exempt Insured Fund Liberty Utilities Fund Liberty Municipal Money Market Fund LIBERTY FUNDS TRUST V Liberty California Tax-Exempt Fund Liberty Connecticut Tax-Exempt Fund Liberty Massachusetts Tax-Exempt Fund Liberty New York Tax-Exempt Fund Liberty Ohio Tax-Exempt Fund Liberty Global Young Investor Fund LIBERTY FUNDS TRUST VI Liberty Small-Cap Value Fund Liberty Growth & Income Fund Liberty Newport Asia Pacific Fund LIBERTY FUNDS TRUST VII Liberty Newport Tiger Fund Liberty Newport Europe Fund LIBERTY FLOATING RATE ADVANTAGE FUND LIBERTY FLOATING RATE FUND LIBERTY-STEIN ROE FUNDS INCOME TRUST Liberty High Yield Bond Fund, Class A Liberty Income Bond Fund, Class A Liberty Intermediate Bond Fund, Class A LIBERTY-STEIN ROE FUNDS INVESTMENT TRUST Liberty Midcap Growth Fund Liberty Focus Fund, Class A Liberty Small Company Growth Fund, Class A Liberty Capital Opportunities Fund, Class A Liberty Growth Investor Fund LIBERTY-STEIN ROE FUNDS MUNICIPAL TRUST Liberty High Income Municipals Fund, Class A Stein Roe Intermediate Municipals Fund, Classes A, B, C LIBERTY-STEIN ROE ADVISOR TRUST Liberty Young Investor Fund Liberty Growth Stock Fund Supplement to Statements of Additional Information On November 1, 2001, Fleet National Bank completed its acquisition of the asset management business of Liberty Financial Companies, Inc., including each investment advisor and affiliated sub-advisor of the Funds. Fleet National Bank is a direct, wholly owned subsidiary of FleetBoston Financial Corporation, a U.S. financial holding company. Under the rules for mutual funds, the transaction resulted in a change of control of the Funds' investment advisors and affiliated sub-advisor and, therefore, an assignment of their investment advisory and, if applicable, sub-advisory portfolio management contracts with the Funds. At meetings of shareholders held on September 26, 2001, shareholders of the Funds approved new investment advisory, sub-advisory and portfolio management contracts. The new contracts are substantially identical in all respects to the contracts in effect prior to November 1, 2001 except for their effective and termination dates and other non-material changes. The investment advisor for each Fund, except those listed in the following paragraphs, is a wholly owned subsidiary of Liberty Funds Group LLC (LFG), One Financial Center, Boston, MA 02111. LFG is a wholly owned subsidiary of Fleet/Liberty Holdings, Inc., which in turn is a wholly owned subsidiary of Fleet National Bank, which in turn is a wholly owned subsidiary of FleetBoston Financial Corporation. Each of FleetBoston Financial Corporation, Fleet National Bank and Fleet/Liberty Holdings, Inc. is located at 100 Federal Street, Boston, MA 02110. The investment advisor for the Liberty Contrarian Funds is a wholly owned subsidiary of Fleet/Liberty Holdings, Inc., which in turn is a wholly owned subsidiary of Fleet National Bank, which in turn is a wholly owned subsidiary of FleetBoston Financial Corporation. The investment advisor for the Liberty Newport Funds is a majority-owned subsidiary of Newport Pacific Management, Inc., which in turn is a wholly owned subsidiary of Liberty Newport Holdings, Limited, which in turn is a wholly owned subsidiary of Fleet/Liberty Holdings, Inc., which in turn is a wholly owned subsidiary of Fleet National Bank, which in turn is a wholly owned subsidiary of FleetBoston Financial Corporation. Newport Pacific Management, Inc. is located at 580 California Street, San Francisco, CA 94104. The investment sub-advisor for the Liberty Global Young Investor Fund is a wholly owned subsidiary of Fleet/Liberty Holdings, Inc., which in turn is a wholly owned subsidiary of Fleet National Bank, which in turn is a wholly owned subsidiary of FleetBoston Financial Corporation. The Fund's investment sub-advisor is a limited partnership managed by its general partner, WAM Acquisition G.P. ("WAM GP"). WAM GP is a wholly owned subsidiary of Fleet/Liberty Holdings, Inc. and is located at 227 West Monroe Street, Suite 3000, Chicago, IL 60606. As of November 1, 2001, Keith T. Banks, 45, whose business address is c/o Fleet Asset Management, 590 Madison Avenue, 36th Floor, Mail Stop NY EH 30636A, New York, NY 10022, replaces Stephen E. Gibson as President of each of the above referenced Trusts. In addition to his position as President of the Trusts, Mr. Banks is and has been Chief Investment Officer and Chief Executive Officer of Fleet Asset Management since 2000 and was formerly Managing Director and Head of U.S. Equity for J.P. Morgan Investment Management from 1996 to 2000. As of November 1, 2001, Kevin M. Carome is no longer Executive Vice President of the Trusts. November 2, 2001