Liberty All-Star® Equity Fund Increases Annual Distribution Rate 25 Percent
September 18 2017 - 4:19PM
Business Wire
The Board of Trustees (the “Board”) of Liberty All-Star Equity
Fund (the “Fund”) (NYSE: USA) has approved an increase in the
Fund’s distribution policy from an annual rate of approximately 8
percent (2.0 percent quarterly) of net asset value (“NAV”) to
approximately 10 percent (2.5 percent quarterly). The increase will
be effective for the Fund’s fourth quarter distribution which will
be declared on November 6, 2017.
The Board believes this increase in the distribution rate may
enhance long-term shareholder value by providing a consistent
method of distributing the Fund’s assets at NAV while increasing
liquidity and reducing the discount at which shares currently trade
to NAV. This 25 percent increase in the distribution rate from 8 to
10 percent restores the rate to the level when the distribution
policy was first adopted in 1988.
William Parmentier, President of the Fund, said, “This action by
the Board balances the interests of all shareholders by increasing
the controlled distribution of Fund assets at NAV without
disrupting the Fund’s disciplined investment process for our many
long-term shareholders.”
A portion of the Fund’s distributions may be treated as paid
from sources other than net income, including but not limited to
short-term capital gain, long-term capital gain and return of
capital. The final determination of the source of all distributions
in 2017 for tax reporting purposes, including the percentage of
qualified dividend income, will be made after year-end. If the
Fund’s net investment income and net realized capital gains for any
year exceed the amount distributed under the distribution policy,
the Fund may, in its discretion, retain and not distribute capital
gains and pay income tax thereon to the extent of such excess.
The Fund does not continuously issue shares and trades in the
secondary market, investors wishing to buy or sell shares need to
place orders through an intermediary or broker. The share price of
a closed-end fund is based on the market’s value. The Fund’s shares
are listed on the New York Stock Exchange under the ticker symbol
USA. ALPS Advisors, Inc. is the investment advisor of the Fund, a
multi-managed, closed-end investment company with more than $1.2
billion in net assets as of September 15, 2017.
Past performance cannot predict future results.An investment in
the Fund involves risk, including loss of principal. ALPS Portfolio
Solutions Distributor, Inc. – FINRA Member Firm
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version on businesswire.com: http://www.businesswire.com/news/home/20170918006410/en/
Liberty All-Star Equity Fund, Inc. (USA)Bill Parmentier,
1-800-241-1850www.all-starfunds.com
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