497 1 lvitsupplement.txt SUPPLEMENT 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