Columbia Funds issued a supplement to the January 1, 2004 prospectus for the Newport Tiger Fund, one of the funds that was prominent in the market timing scandals.

The March 15 update covers language in the sections on investment risks, trading policies and portfolio manager. It includes statements about the Fund's policies to deter market timing, stronger language on the fact that no deterrence policies can be 100 percent effective, and an updated Managers section, reflecting the departure of the Fund’s co-manager.

In the section on Principle Investment Risks, language on market timing was made more specific. The statement: "Although the Fund attempts to discourage market timing activities, it may be unable to prevent all market timing" was replaced with "Although the Fund has adopted certain policies and methods intended to identify and to discourage frequent trading based on this strategy, it cannot ensure that all such activity can be identified or terminated."

Added to "Fund Policy on Trading of Fund Shares." The section already stated that the Fund had the right to refuse any purchase or exchange request, particularly from market timers or disruptive investors. The supplement adds that "the Fund may also fully redeem the shares an close the account of any shareholder whom it believes is engaged or intends to engage in frequent trading."

Also in the section on trading policy, the supplement include an entire subsection warning investors that the Fund may not be able to identify frequent trading activity in omnibus accounts.

The Portfolio Managers section is revised to the singular, reflecting the departure of Christopher Legallet, previous co-manager of the Fund, who was placed on administrative leave and subsequently left the firm after the SEC brought civil fraud charges against Columbia. Eric Robert Lewis Sandlund is now the sole portfolio manager for the fund. 

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