Liberty All-Star Equity Fund (1GQ)

Overview

The Liberty All-Star Equity Fund is a multi-managed, diversified closed-end equity fund aimed at achieving total investment return through a blend of long-term capital appreciation and current income. It distinguishes itself by dividing its investment portfolio among several independent management organizations that employ distinct investment styles. Managed by ALPS Advisors, Inc. and overseen by five sub-advisors, the fund primarily focuses on investing in the equity securities of large-cap U.S. companies across various sectors and industries. The fund's strategy is to balance value and growth by allocating its assets to both undervalued companies with strong fundamentals and firms with superior growth prospects and market leadership. This approach is designed to deliver steady returns to investors by mitigating risk through diversification and frequent portfolio benchmarking against major indices like the S&P 500.

Products and Services

List and explanation of the Liberty All-Star Equity Fund's main offerings:

• Equity Investment in Large-Cap U.S. Companies: The core offering of the Liberty All-Star Equity Fund is its investment in the equity securities of large-cap U.S. firms, covering diverse sectors and industries. By adhering to a mandate that requires holding at least 80% of its assets in equities under normal market conditions, the fund aims to provide investors with substantial exposure to the U.S. equity market.
• Diversified Investment Strategy: The fund employs a unique investment approach that balances value and growth investment styles. It does so by nearly equally allocating its assets among several independent investment management organizations. Three of these organizations are value managers focusing on undervalued companies with strong fundamentals, while two are growth managers who seek out firms with superior growth prospects and market leadership. This strategy is intended to mitigate risk and promote steady returns through diversification.
• Multi-Managed Structure: Another distinctive feature of the Liberty All-Star Equity Fund is its multi-managed structure. This setup allows the fund to blend contributions from different managers, each employing distinct and complementary investment styles. This structure aids in diversifying the fund's investment portfolio, potentially reducing volatility and enhancing the potential for returns.
• Quarterly Distributions: Designed to cater to investors seeking regular income in addition to long-term capital growth, the fund is recognized for providing quarterly distributions. This aspect of the fund's offering underscores its commitment to delivering a combination of current income and capital appreciation to its shareholders.