COLONIAL AGGRESSIVE GROWTH FUND
                           COLONIAL EQUITY INCOME FUND
                        COLONIAL FEDERAL SECURITIES FUND
                           COLONIAL GLOBAL EQUITY FUND
                         COLONIAL GLOBAL UTILITIES FUND
                   COLONIAL INTERMEDIATE U.S. GOVERNMENT FUND
                       COLONIAL INTERNATIONAL EQUITY FUND
                     COLONIAL INTERNATIONAL FUND FOR GROWTH
                      COLONIAL INTERNATIONAL HORIZONS FUND
                           COLONIAL MONEY MARKET FUND
                      COLONIAL MUNICIPAL MONEY MARKET FUND
                  COLONIAL SHORT DURATION U.S. GOVERNMENT FUND
                           COLONIAL SELECT VALUE FUND
                          COLONIAL SMALL CAP VALUE FUND
                        COLONIAL STRATEGIC BALANCED FUND
                               NEWPORT TIGER FUND
                             NEWPORT TIGER CUB FUND
                        NEWPORT JAPAN OPPORTUNITIES FUND
                           NEWPORT GREATER CHINA FUND
                                THE COLONIAL FUND

               Supplement to Statements of Additional Information


The  following  is added as the last  paragraphs  under the caption  PERFORMANCE
MEASURES:

General. From time to time, the Fund may discuss, or quote its current portfolio
manager as well as other investment personnel, including such persons' views on:
the  economy;  securities  markets;  portfolio  securities  and  their  issuers;
investment  philosophies,  strategies,  techniques  and  criteria  used  in  the
selection of securities to be purchased or sold for the Fund,  including the New
ValueTM  investment  strategy that expands upon the  principles  of  traditional
value investing;  the Fund's  portfolio  holdings;  the investment  research and
analysis process; the formulation and evaluation of investment  recommendations;
and the assessment and evaluation of credit,  interest rate, market and economic
risks and similar or related matters.

The Fund may also quote evaluations mentioned in independent radio or television
broadcasts,  and use charts and graphs to  illustrate  the past  performance  of
various indices such as those mentioned in Appendix II and  illustrations  using
hypothetical  rates of return to  illustrate  the  effects  of  compounding  and
tax-deferral.  The  Fund may  advertise  examples  of the  effects  of  periodic
investment plans,  including the principle of dollar costs averaging.  In such a
program,  an  investor  invests  a fixed  dollar  amount  in a fund at  periodic
intervals,  thereby purchasing fewer shares when prices are high and more shares
when prices are low.

From  time to  time,  the  Fund  may also  discuss  or  quote  the  views of its
distributor,  its investment adviser and other financial  planning,  legal, tax,
accounting, insurance, estate planning and other professionals, or from surveys,
regarding  individual  and family  financial  planning.  Such views may  include
information regarding: retirement planning; general investment techniques (e.g.,
asset  allocation and disciplined  saving and investing);  business  succession;
issues with  respect to  insurance  (e.g.,  disability  and life  insurance  and
Medicare  supplemental  insurance);  issues regarding  financial and health care
management for elderly family members; and similar or related matters.

D-39/514F-0698                                                   June 22, 1998