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                                    Columbia

                                 COLUMBIA FUNDS


                                Supplement to the
               Columbia Funds' Statement of Additional Information
                             dated February 25, 2002


         Effective May 20, 2002, Thomas L. Thomsen has retired as Vice President
of the Columbia  Funds (the  "Funds").  Mr. Thomsen has also retired as Chairman
and  Chief  Executive  Officer  of the  Adviser  to the  Funds,  Columbia  Funds
Management Company ("CFMC").

Pricing and Bookkeeping Agreement
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         Effective July 1, 2002 the Funds have retained Columbia Management
Group ("CMG") to perform certain administrative services for the Funds pursuant
to a Pricing and Bookkeeping Agreement (the "Agreement"). Under the terms of the
Agreement, CMG (a) provides fund accounting oversight of State Street Bank and
Trust, who provides the daily fund accounting services; (b) maintains and
preserves in a secure manner the accounting records of the Funds; (c) provides
fund administration, including daily prospectus, investment restrictions and
Investment Company Act of 1940 compliance review, tax and distribution
management, expense budgeting, performance reporting and statistical analysis,
financial reporting and board reporting; and (d) provides disaster planning. CMG
is the parent corporation of CFMC. For the services rendered by CMG, each Fund
has agreed to pay CMG, on a monthly basis, a fee equal to 1/12 of .01 of 1
percent of the Fund's average daily net assets. The fee for a Fund in a given
year shall not be less than $25,000 or exceed $150,000.

Custodian Agreement
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         Effective July 1, 2002 the Funds' Custodian, for both domestic and
foreign securities, has been changed to State Street Bank and Trust Company (the
"Custodian"), 225 Franklin Street, Boston, Massachusetts 02101. The Custodian
holds all securities and cash of the Funds, receives and pays for securities
purchased, delivers against payment securities sold, receives and collects
income from investments, makes all payments covering expenses of the Funds, and
performs other administrative duties, all as directed by authorized officers of
the Adviser. The Custodian does not exercise any supervisory function in the
purchase and sale of portfolio securities or payment of dividends.

         Portfolio securities purchased in the United States are maintained in
the custody of the Funds' Custodian. Portfolio securities purchased outside the
United States by the Funds are maintained in the custody of foreign banks, trust
companies, or depositories that have sub-custodian arrangements with the
Custodian (the "foreign sub-custodians"). Each of the domestic and foreign
custodial institutions that may hold portfolio securities of the Funds has been
approved by the Board of Directors of the Funds or, in the case of foreign
securities, at the discretion of the Board of Directors, by Custodian, as a
delegate of the Board of Directors, all in accordance with regulations under the
1940 Act.

         The Adviser determines whether it is in the best interest of the Funds
and their shareholders to maintain a Fund's assets in each of the countries in
which the Fund invests ("Prevailing Market Risk"). The review of Prevailing
Market Risk includes an assessment of the risk of holding a Fund's assets in a
country, including risks of expropriation or imposition of exchange controls. In
evaluating the foreign reliability of the foreign sub-custodian. With respect to
foreign investments and the selection of foreign sub-custodians, however, there
is no assurance that the Funds, and the value of their shares, will not be
adversely affected by acts of foreign governments, financial or operational
difficulties of the foreign sub-custodians, difficulties and cost of obtaining
jurisdiction over, or enforcing judgements against, the foreign sub-custodians,
or the application of foreign law to a Fund's foreign sub-custodian arrangement.
Accordingly, an investor should recognize that the risks involved in holding
assets abroad are greater than those associated with investing in the United
States.

                                  July 1, 2002