LIBERTY VARIABLE INVESTMENT TRUST
          Colonial International Fund for Growth, Variable Series
            Colonial U.S. Growth & Income Fund, Variable Series
               Colonial Global Equity Fund, Variable Series
              Colonial Strategic Income Fund, Variable Series
              Colonial Small Cap Value Fund, Variable Series
           Colonial High Yield Securities Fund, Variable Series
           Colonial International Horizons Fund, Variable Series
         Crabbe Huson Real Estate Investment Fund, Variable Series
                Liberty Select Value Fund, Variable Series
                    Liberty Value Fund, Variable Series
               Liberty All-Star Equity Fund, Variable Series
                Liberty S&P 500 Index Fund, Variable Series
         Liberty Newport Japan Opportunities Fund, Variable Series
                    Newport Tiger Fund, Variable Series
              Rydex Financial Services Fund, Variable Series
                  Rydex Health Care Fund, Variable Series
             Stein Roe Global Utilities Fund, Variable Series


      Supplement to Prospectuses and Statement of Additional Information

On June 4, 2001,  Liberty  Financial  Companies,  Inc. (Liberty  Financial),  an
intermediate  parent of Liberty  Advisory  Services  Corp.  (LASC),  each Fund's
investment  advisor,  announced  that Fleet  National Bank has agreed to acquire
Liberty  Financial's asset management  business,  including LASC. Fleet National
Bank  is  an  indirect   wholly-owned   subsidiary  of   FleetBoston   Financial
Corporation,  a U.S.  financial  holding  company.  The closing of the  proposed
transaction  is  expected  to take place  during the second  half of 2001 and is
subject to a number of conditions,  including  approval by the  shareholders  of
Liberty Financial.  In addition,  under the rules for mutual funds, the proposed
transaction  may  result  in a change of  control  of LASC  and,  therefore,  an
assignment of its investment advisory and sub-advisory contracts with the Funds.
The assignment of these contracts generally requires  shareholder approval under
the Investment  Company Act of 1940.  Consequently,  it is anticipated that LASC
will seek approval of new contracts  from the Trust's Board of Trustees and from
shareholders of the Funds prior to the consummation of the proposed transaction.
The new  contracts  will be identical  to the current  contracts in all respects
except for their effective and termination dates. The new contracts will have no
effect on the  contractual  advisory or  sub-advisory  fee rates  payable by the
Funds.

On May 3, 2001,  Liberty Financial  announced that Sun Life Financial has agreed
to acquire Liberty Financial's annuity and bank marketing businesses,  including
Keyport  Life  Insurance  Company,  the  parent  of  LASC.  The  closing  of the
transaction  is  expected  to take place  during the second  half of 2001 and is
subject to a number of  conditions,  including  receipt of  approvals by various
state  insurance  regulators  in the United  States,  certain  other  regulatory
authorities in the United States and Canada and approval of the  shareholders of
Liberty  Financial.  Prior  to the  closing,  Liberty  Financial  will  transfer
ownership  of LASC to one of its asset  management  subsidiaries  which  will be
included in the proposed sale of Liberty  Financial's asset management  business
described above.


G-36/331G-0601                                                      June 5, 2001