Fund
Statistics
Net
Asset Value (NAV)
|
$6.46
|
Market
Price
|
$6.01
|
Discount
|
-7.0%
|
|
Quarter
|
Year-to-Date
|
Distribution*
|
$0.16
|
$0.47
|
Market
Price Trading Range
|
$5.68
to $6.31
|
$3.67
to $7.15
|
Premium/(Discount)
Range
|
-6.2%
to -9.0%
|
2.5%
to -21.3%
|
Performance
|
|
|
Shares
Valued at NAV with Dividends Reinvested
|
7.30%
|
1.04%
|
Shares
Valued at Market Price with Dividends Reinvested
|
7.85%
|
-4.19%
|
Dow
Jones Industrial Average
|
8.22%
|
-0.91%
|
Lipper
Large-Cap Core Mutual Fund Average
|
8.45%
|
3.94%
|
NASDAQ
Composite Index
|
11.24%
|
25.33%
|
S&P
500® Index
|
8.93%
|
5.57%
|
|
*
|
Sources
of distributions to shareholders may include ordinary dividends, long-term capital gains
and return of capital. The final determination of the source of all distributions in
2020 for tax reporting purposes will be made after year end. The actual amounts and sources
of the amounts for tax reporting purposes will depend upon the Fund’s investment
experience during its fiscal year and may be subject to changes based on tax regulations.
Based on current estimates a portion of the distributions consist of a return of capital.
Pursuant to Section 852 of the Internal Revenue Code, the taxability of this distribution
will be reported on Form 1099-DIV for 2020.
|
Performance
returns for the Fund are total returns, which include dividends. Returns are net of management fees and other Fund expenses.
The
returns shown for the Lipper Large-Cap Core Mutual Fund Average are based on open-end mutual funds’ total returns, which
include dividends, and are net of fund expenses. Returns for the unmanaged Dow Jones Industrial Average, NASDAQ Composite Index
and the S&P 500® Index are total returns, including dividends. A description of the Lipper benchmark and the
market indices can be found on page 19.
Past
performance cannot predict future results. Performance will fluctuate with market conditions. Current performance may be lower
or higher than the performance data shown. Performance information does not reflect the deduction of taxes that shareholders would
pay on Fund distributions or the sale of Fund shares. An investment in the Fund involves risk, including loss of principal.
Closed-end
funds raise money in an initial public offering and shares are listed and traded on an exchange. Open-end mutual funds continuously
issue and redeem shares at net asset value. Shares of closed-end funds frequently trade at a discount to net asset value. The
price of the Fund’s shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore,
the Fund cannot predict whether its shares will trade at, below or above net asset value.
Liberty
All-Star® Equity Fund
|
President’s
Letter
|
(Unaudited)
Fellow
Shareholders:
|
October
2020
|
Despite
giving up ground in September, equity markets consolidated exceptional second quarter returns with further gains in the third
quarter. The S&P 500® Index returned 8.93 percent for the quarter, while the Dow Jones Industrial Average (DJIA)
returned 8.22 percent and the NASDAQ Composite Index advanced 11.24 percent.
Through
nine months, the S&P 500® returned 5.57 percent, the DJIA returned -0.91 percent and the NASDAQ Composite returned
25.33 percent.
The
third quarter got off to a strong start, with investors believing that economic damage owing to the pandemic would not be as severe
as once feared. This was due to government stimulus programs and a report that employers added 4.8 million jobs in June for the
second straight month of growth. Investors anticipated a sharp contraction in the economy and in latter July the Commerce Department
confirmed their fears with a report that U.S. GDP fell 9.5 percent in the second quarter, the steepest quarterly decline on record.
Nevertheless,
August saw the market’s momentum hold, as the S&P 500® posted six straight days of gains to begin
the month. August also saw the S&P 500® log its first record close in six months, an event that marked the
fastest recovery in history following a bear market. From its February 19 high, the S&P 500® dropped 34
percent by March 23 only to reach a new record high on August 18. A typical peak-to-peak recovery takes 1,542 trading
days on average, according to Dow Jones Market Data.
August
ended with stocks closing out their best month since April, a gain of 7.19 percent. But just days later, on September 3, the S&P
500® posted its worst day since mid-June. September would go on to see the S&P 500® encounter
its first four-week losing streak in more than a year and that same index came close to a 10 percent decline, which would have
marked correction territory. Among concerns weighing on investors were the rich valuations of certain technology stocks, tensions
between the U.S. and China, election uncertainties and the outlook for the economy in the pandemic age. The inability of the House
and the Senate to come to any agreement on extra unemployment benefits and other economic aid also caused concern. A rebound in
the last few trading days recouped some of the losses, but the S&P 500® still declined -3.80 percent for the
month.
Liberty
All-Star® Equity Fund
Fund
performance in the third quarter trailed key market benchmarks. The Fund returned 7.30 percent with shares valued at net asset
value (NAV) with dividends reinvested and 7.85 percent with shares valued at market price with dividends reinvested. (Fund returns
are net of expenses.) The Fund’s primary benchmark, the Lipper Large-Cap Core Mutual Fund Average, returned 8.45 percent.
As noted earlier, respective returns for the S&P 500®, the DJIA and the NASDAQ Composite were 8.93 percent,
8.22 percent and 11.24 percent.
Third
Quarter Report (Unaudited) | September 30, 2020
|
1
|
Liberty
All-Star® Equity Fund
|
President’s
Letter
|
(Unaudited)
Through
nine months, the Fund returned 1.04 percent with shares valued at NAV with dividends reinvested and -4.19 percent with shares
valued at market price with dividends reinvested. The Lipper Large-Cap Core benchmark returned 3.94 percent for the same period.
The nine-month return for the S&P 500® was 5.57 percent, while the DJIA returned -0.91 percent and the NASDAQ
Composite returned 25.33 percent. The Fund had a strong second quarter, but results year to date continue to lag owing to a difficult
first quarter.
Throughout
the year, the market has been dominated by a handful of mega-cap technology stocks. To illustrate, the S&P 500®
Index is capitalization-weighted, meaning that stocks with large capitalizations receive a heavier weighting than those with lesser
capitalizations. The cap-weighted S&P 500® returned 5.57 percent through September. But an equal-weighted S&P
500®—removing the effect of size and treating the performance of each stock equally—returned -4.75
percent. Another indicator of the market’s concentration is the fact that just three S&P sectors out of 11 have outperformed
the index year to date: information technology, consumer discretionary and communication services.
This
data would indicate that growth style stocks have continued to outperform value style issues and, indeed, that is the case. In
the third quarter, the Russell 1000® Growth Index returned 13.22 percent, while its Value counterpart returned
less than half that, just 5.59 percent. The outperformance of growth stocks year to date has been even more pronounced—the
Russell 1000® Growth Index returned 24.33 percent compared to its Value counterpart, which declined -11.58 percent.
In
the third quarter Fund shares traded in a discount range relative to their underlying NAV that was little changed relative to
the second quarter. For the most recent quarter, the discount ranged from -6.2 percent to -9.0 percent, whereas during the previous
quarter the range went from -3.4 percent to -10.2 percent.
In
accordance with the Fund’s distribution policy, the Fund paid a distribution of $0.16 per share in the third quarter. The
Fund’s distribution policy has been in place since 1988 and is a major component of the Fund’s total return. The Fund
has paid distributions of $28.02 per share for a total of more than $3.1 billion since 1987 (the Fund’s first full calendar year
of operations). We continue to emphasize that shareholders should include these distributions when determining the total return
on their investment in the Fund.
In
Fund news, the annual meeting of shareholders was held (by telephone, owing to the coronavirus) on October 6. The key outcome
was a vote to approve Fiduciary Management, Inc. as one of the Fund’s investment managers. It was necessary to reach out
to some shareholders multiple times to obtain the necessary votes and we wish to thank shareholders for their support throughout
this lengthy process.
Liberty
All-Star® Equity Fund
|
President’s
Letter
|
(Unaudited)
Recently,
ongoing market characteristics—high valuations, the dominance of a few mega-cap stocks and growth stocks’ outperformance
over value stocks—have been challenges for the Fund. Nevertheless, the Fund’s five investment managers—three
value managers and two growth managers—continue
to perform as expected, adhering to their specific investment style and strategy and making sound, well-reasoned stock selections.
The Fund’s long-term performance reflects this, and we at ALPS Advisors continue our commitment to the Fund’s core
attributes: institutional-quality investment management, rigorous review of the managers’ performance, diversification by
style and strategy, a long-term perspective, and alignment with shareholders’ best interests.
Sincerely,
William
R. Parmentier, Jr.
President
and Chief Executive Officer
Liberty
All-Star® Equity Fund
The
views expressed in the President’s letter reflect the views of the President as of October 2020 and may not reflect his
views on the date this report is first published or anytime thereafter. These views are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly
from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the
Fund disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment
decisions for the Fund are based on numerous factors, may not be relied on as an indication of trading intent.
Third
Quarter Report (Unaudited) | September 30, 2020
|
3
|
Liberty
All-Star® Equity Fund
|
Table
of Distributions & Rights Offerings
|
September
30, 2020 (Unaudited)
|
|
|
Rights
Offerings
|
|
|
Year
|
Per
Share
Distributions
|
Month
Completed
|
Shares
Needed to Purchase
One Additional Share
|
Subscription
Price
|
Tax
Credits1
|
1987
|
$1.18
|
|
|
|
|
1988
|
0.64
|
|
|
|
|
1989
|
0.95
|
|
|
|
|
1990
|
0.90
|
|
|
|
|
1991
|
1.02
|
|
|
|
|
1992
|
1.07
|
April
|
10
|
$10.05
|
|
1993
|
1.07
|
October
|
15
|
10.41
|
$0.18
|
1994
|
1.00
|
September
|
15
|
9.14
|
|
1995
|
1.04
|
|
|
|
|
1996
|
1.18
|
|
|
|
0.13
|
1997
|
1.33
|
|
|
|
0.36
|
1998
|
1.40
|
April
|
20
|
12.83
|
|
1999
|
1.39
|
|
|
|
|
2000
|
1.42
|
|
|
|
|
2001
|
1.20
|
|
|
|
|
2002
|
0.88
|
May
|
10
|
8.99
|
|
2003
|
0.78
|
|
|
|
|
2004
|
0.89
|
July
|
102
|
8.34
|
|
2005
|
0.87
|
|
|
|
|
2006
|
0.88
|
|
|
|
|
2007
|
0.90
|
December
|
10
|
6.51
|
|
2008
|
0.65
|
|
|
|
|
20093
|
0.31
|
|
|
|
|
2010
|
0.31
|
|
|
|
|
2011
|
0.34
|
|
|
|
|
2012
|
0.32
|
|
|
|
|
2013
|
0.35
|
|
|
|
|
2014
|
0.39
|
|
|
|
|
20154
|
0.51
|
|
|
|
|
2016
|
0.48
|
|
|
|
|
20175
|
0.56
|
|
|
|
|
2018
|
0.68
|
|
|
|
|
2019
|
0.66
|
|
|
|
|
2020
|
|
|
|
|
|
1st
Quarter
|
0.17
|
|
|
|
|
2nd
Quarter
|
0.14
|
|
|
|
|
3rd
Quarter
|
0.16
|
|
|
|
|
Total
|
$28.02
|
|
|
|
|
|
1
|
The
Fund’s net investment income and net realized capital gains exceeded the amount
to be distributed under the Fund’s distribution policy. In each case, the Fund
elected to pay taxes on the undistributed income and passed through a proportionate tax
credit to shareholders.
|
|
2
|
The
number of shares offered was increased by an additional 25 percent to cover a portion
of the over-subscription requests.
|
|
3
|
Effective
with the second quarter distribution, the annual distribution rate was changed from 10
percent to 6 percent.
|
|
4
|
Effective
with the second quarter distribution, the annual distribution rate was changed from 6
percent to 8 percent.
|
|
5
|
Effective
with the fourth quarter distribution, the annual distribution rate was changed from 8
percent to 10 percent.
|
DISTRIBUTION
POLICY
The
current policy is to pay distributions on its shares totaling approximately 10 percent of its net asset value per year, payable
in four quarterly installments of 2.5 percent of the Fund’s net asset value at the close of the New York Stock Exchange
on the Friday prior to each quarterly declaration date. Sources of distributions to shareholders may include ordinary dividends,
long-term capital gains and return of capital. The final determination of the source of all distributions in 2020 for tax reporting
purposes will be made after year end. The actual amounts and sources of the amounts for tax reporting purposes will depend upon
the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate
of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s
distributions) contained in shareholder 1099-DIV forms after the end of the year. If the Fund’s ordinary dividends and long-term
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.
|
Investment
Managers/
|
Liberty
All-Star® Equity Fund
|
Portfolio
Characteristics
|
September
30, 2020 (Unaudited)
THE
FUND’S ASSETS ARE APPROXIMATELY EQUALLY DISTRIBUTED AMONG THREE VALUE MANAGERS AND TWO GROWTH MANAGERS:
ALPS
Advisors, Inc., the investment advisor to the Fund, has the ultimate authority (subject to oversight by the Board of Trustees)
to oversee the investment managers and recommend their hiring, termination and replacement.
MANAGERS’
DIFFERING INVESTMENT STRATEGIES ARE REFLECTED IN PORTFOLIO CHARACTERISTICS
The
portfolio characteristics table below is a regular feature of the Fund’s shareholder reports. It serves as a useful tool
for understanding the value of a multi-managed portfolio. The characteristics are different for each of the Fund’s five
investment managers. These differences are a reflection of the fact that each pursues a different investment style. The shaded
column highlights the characteristics of the Fund as a whole, while the final column shows portfolio characteristics for the S&P
500® Index.
PORTFOLIO
CHARACTERISTICS As of September 30, 2020 (Unaudited)
|
|
Investment
Style Spectrum
|
|
|
|
|
Value
|
|
|
|
Growth
|
|
|
|
|
|
|
|
PZENA
|
FIDUCIARY
|
ARISTOTLE
|
SUSTAINABLE
|
TCW
|
TOTAL
FUND
|
S&P
500®
INDEX
|
Number
of Holdings
|
38
|
30
|
46
|
29
|
32
|
151*
|
505
|
Percent
of Holdings in Top 10
|
40%
|
46%
|
37%
|
44%
|
55%
|
21%
|
28%
|
Weighted
Average Market Capitalization (billions)
|
$39
|
$114
|
$155
|
$335
|
$340
|
$203
|
$452
|
Average
Five-Year Earnings Per Share Growth
|
-8%
|
9%
|
10%
|
17%
|
31%
|
12%
|
12%
|
Dividend
Yield
|
2.5%
|
1.5%
|
1.7%
|
0.7%
|
0.4%
|
1.3%
|
1.7%
|
Price/Earnings
Ratio**
|
14x
|
21x
|
22x
|
43x
|
48x
|
27x
|
27x
|
Price/Book
Value Ratio
|
0.9x
|
3.2x
|
2.4x
|
8.9x
|
9.6x
|
2.5x
|
3.8x
|
|
*
|
Certain
holdings are held by more than one manager.
|
|
**
|
Excludes
negative earnings.
|
Third Quarter Report (Unaudited)
| September 30, 2020
|
5
|
Liberty
All-Star® Equity Fund
|
Top
20 Holdings & Economic Sectors
|
September
30, 2020 (Unaudited)
Top 20 Holdings*
|
Percent
of Net Assets
|
Amazon.com,
Inc.
|
2.61%
|
Adobe,
Inc.
|
2.34
|
PayPal
Holdings, Inc.
|
2.30
|
Visa,
Inc.
|
2.04
|
Facebook,
Inc.
|
1.99
|
Microsoft
Corp.
|
1.92
|
Alphabet,
Inc.
|
1.90
|
salesforce.com,
Inc.
|
1.80
|
Danaher
Corp.
|
1.74
|
UnitedHealth
Group, Inc.
|
1.54
|
ServiceNow,
Inc.
|
1.36
|
JPMorgan
Chase & Co.
|
1.35
|
Sony
Corp.
|
1.32
|
Berkshire
Hathaway, Inc.
|
1.29
|
Equinix,
Inc.
|
1.24
|
IHS
Markit, Ltd.
|
1.16
|
Chubb,
Ltd.
|
1.12
|
Capital
One Financial Corp.
|
1.11
|
Masco
Corp.
|
1.01
|
Dollar
General Corp.
|
0.98
|
|
32.12%
|
|
|
Economic Sectors*
|
Percent
of Net Assets
|
Information
Technology
|
22.05%
|
Financials
|
15.03
|
Health
Care
|
14.40
|
Consumer
Discretionary
|
13.92
|
Industrials
|
11.86
|
Communication
Services
|
5.96
|
Materials
|
4.41
|
Consumer
Staples
|
3.91
|
Energy
|
2.95
|
Real
Estate
|
2.65
|
Utilities
|
0.53
|
Other
Net Assets
|
2.33
|
|
100.00%
|
|
*
|
Because
the Fund is actively managed, there can be no guarantee that the Fund will continue to
hold securities of the indicated issuers and sectors in the future.
|
Liberty All-Star®
Equity Fund
|
Major Stock Changes in the
Quarter
|
September
30, 2020 (Unaudited)
The
following are the major ($2 million or more) stock changes–both purchases and sales–that were made in the Fund’s
portfolio during the third quarter of 2020.
|
Shares
|
Security Name
|
Purchases (Sales)
|
Held
as of 9/30/20
|
Purchases
|
|
|
Ball Corp.
|
34,726
|
113,168
|
Booking Holdings,
Inc.
|
1,520
|
7,605
|
Capital One Financial
Corp.
|
34,311
|
214,632
|
IQVIA Holdings, Inc.
|
18,600
|
18,600
|
Procter & Gamble
Co.
|
51,500
|
51,500
|
Textron, Inc.
|
135,257
|
135,257
|
Thermo Fisher Scientific,
Inc.
|
19,768
|
19,768
|
Wells Fargo &
Co.
|
92,145
|
422,158
|
|
|
|
Sales
|
|
|
Adobe, Inc.
|
(14,095)
|
66,315
|
Amazon.com, Inc.
|
(919)
|
11,532
|
Intuitive Surgical,
Inc.
|
(4,081)
|
10,458
|
Morgan Stanley
|
(72,883)
|
104,531
|
PayPal Holdings, Inc.
|
(37,966)
|
162,053
|
salesforce.com, Inc.
|
(20,046)
|
99,687
|
Stanley Black &
Decker, Inc.
|
(14,058)
|
34,340
|
Third Quarter Report (Unaudited)
| September 30, 2020
|
7
|
Liberty All-Star®
Equity Fund
|
Schedule of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (97.67%)
|
|
|
|
|
|
|
|
|
COMMUNICATION SERVICES (5.96%)
|
|
|
|
|
|
|
|
|
Interactive Media & Services (4.79%)
|
|
|
|
|
|
|
|
|
Alphabet, Inc., Class C(a)
|
|
|
17,958
|
|
|
$
|
26,391,077
|
|
Facebook, Inc., Class A(a)
|
|
|
105,666
|
|
|
|
27,673,925
|
|
Match Group, Inc.(a)
|
|
|
55,544
|
|
|
|
6,145,922
|
|
Twitter, Inc.(a)
|
|
|
142,600
|
|
|
|
6,345,700
|
|
|
|
|
|
|
|
|
66,556,624
|
|
Media (1.17%)
|
|
|
|
|
|
|
|
|
Comcast Corp., Class A
|
|
|
224,820
|
|
|
|
10,400,173
|
|
Omnicom Group, Inc.
|
|
|
119,755
|
|
|
|
5,927,873
|
|
|
|
|
|
|
|
|
16,328,046
|
|
CONSUMER DISCRETIONARY (13.92%)
|
|
|
|
|
|
|
|
|
Auto Components (0.63%)
|
|
|
|
|
|
|
|
|
Lear Corp.
|
|
|
80,253
|
|
|
|
8,751,590
|
|
|
|
|
|
|
|
|
|
|
Automobiles (0.69%)
|
|
|
|
|
|
|
|
|
Ford Motor Co.
|
|
|
1,443,832
|
|
|
|
9,615,921
|
|
|
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure (0.76%)
|
|
|
|
|
|
|
|
|
Carnival Corp.(b)
|
|
|
25,012
|
|
|
|
379,682
|
|
Yum! Brands, Inc.
|
|
|
111,345
|
|
|
|
10,165,799
|
|
|
|
|
|
|
|
|
10,545,481
|
|
Household Durables (3.14%)
|
|
|
|
|
|
|
|
|
Lennar Corp., Class A
|
|
|
103,300
|
|
|
|
8,437,544
|
|
Lennar Corp., Class B
|
|
|
2,500
|
|
|
|
164,150
|
|
Mohawk Industries, Inc.(a)
|
|
|
86,151
|
|
|
|
8,407,476
|
|
Newell Brands, Inc.
|
|
|
482,863
|
|
|
|
8,285,929
|
|
Sony Corp.(c)
|
|
|
238,205
|
|
|
|
18,282,234
|
|
|
|
|
|
|
|
|
43,577,333
|
|
Internet & Direct Marketing Retail (3.55%)
|
|
|
|
|
|
|
|
|
Amazon.com, Inc.(a)
|
|
|
11,532
|
|
|
|
36,311,154
|
|
Booking Holdings, Inc.(a)
|
|
|
7,605
|
|
|
|
13,009,722
|
|
|
|
|
|
|
|
|
49,320,876
|
|
Multiline Retail (1.72%)
|
|
|
|
|
|
|
|
|
Dollar General Corp.
|
|
|
65,300
|
|
|
|
13,688,186
|
|
Dollar Tree, Inc.(a)
|
|
|
112,433
|
|
|
|
10,269,630
|
|
|
|
|
|
|
|
|
23,957,816
|
|
Specialty Retail (1.41%)
|
|
|
|
|
|
|
|
|
Home Depot, Inc.
|
|
|
26,980
|
|
|
|
7,492,616
|
|
TJX Cos., Inc.
|
|
|
149,780
|
|
|
|
8,335,257
|
|
Ulta Beauty, Inc.(a)
|
|
|
16,971
|
|
|
|
3,801,164
|
|
|
|
|
|
|
|
|
19,629,037
|
|
See
Notes to Schedule of Investments.
Liberty All-Star®
Equity Fund
|
Schedule of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods (2.02%)
|
|
|
|
|
|
|
|
|
Gildan Activewear, Inc.
|
|
|
505,446
|
|
|
$
|
9,942,123
|
|
NIKE, Inc., Class B
|
|
|
98,157
|
|
|
|
12,322,629
|
|
PVH Corp.
|
|
|
97,564
|
|
|
|
5,818,717
|
|
|
|
|
|
|
|
|
28,083,469
|
|
CONSUMER STAPLES (3.91%)
|
|
|
|
|
|
|
|
|
Beverages (1.03%)
|
|
|
|
|
|
|
|
|
Coca-Cola Co.
|
|
|
142,000
|
|
|
|
7,010,540
|
|
PepsiCo, Inc.
|
|
|
53,050
|
|
|
|
7,352,730
|
|
|
|
|
|
|
|
|
14,363,270
|
|
Food & Staples Retailing (0.70%)
|
|
|
|
|
|
|
|
|
Costco Wholesale Corp.
|
|
|
20,066
|
|
|
|
7,123,430
|
|
Walgreens Boots Alliance, Inc.
|
|
|
71,000
|
|
|
|
2,550,320
|
|
|
|
|
|
|
|
|
9,673,750
|
|
Food Products (0.89%)
|
|
|
|
|
|
|
|
|
Nestle SA(c)
|
|
|
62,995
|
|
|
|
7,512,469
|
|
Tyson Foods, Inc., Class A
|
|
|
81,000
|
|
|
|
4,817,880
|
|
|
|
|
|
|
|
|
12,330,349
|
|
Household Products (0.51%)
|
|
|
|
|
|
|
|
|
Procter & Gamble Co.
|
|
|
51,500
|
|
|
|
7,157,985
|
|
|
|
|
|
|
|
|
|
|
Personal Products (0.78%)
|
|
|
|
|
|
|
|
|
Unilever PLC(c)
|
|
|
175,925
|
|
|
|
10,851,054
|
|
|
|
|
|
|
|
|
|
|
ENERGY (2.95%)
|
|
|
|
|
|
|
|
|
Energy Equipment & Services (1.64%)
|
|
|
|
|
|
|
|
|
Baker Hughes Co.
|
|
|
537,344
|
|
|
|
7,141,302
|
|
Halliburton Co.
|
|
|
598,814
|
|
|
|
7,215,708
|
|
National Oilwell Varco, Inc.
|
|
|
593,470
|
|
|
|
5,376,838
|
|
Schlumberger NV
|
|
|
200,105
|
|
|
|
3,113,634
|
|
|
|
|
|
|
|
|
22,847,482
|
|
Oil, Gas & Consumable Fuels (1.31%)
|
|
|
|
|
|
|
|
|
Cabot Oil & Gas Corp.
|
|
|
330,000
|
|
|
|
5,728,800
|
|
Cenovus Energy, Inc.
|
|
|
528,447
|
|
|
|
2,055,659
|
|
Exxon Mobil Corp.
|
|
|
73,583
|
|
|
|
2,526,104
|
|
Phillips 66
|
|
|
66,000
|
|
|
|
3,421,440
|
|
Pioneer Natural Resources Co.
|
|
|
25,500
|
|
|
|
2,192,745
|
|
Royal Dutch Shell PLC, Class A(c)
|
|
|
91,039
|
|
|
|
2,291,452
|
|
|
|
|
|
|
|
|
18,216,200
|
|
FINANCIALS (15.03%)
|
|
|
|
|
|
|
|
|
Banks (4.70%)
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
|
|
317,622
|
|
|
|
7,651,514
|
|
See
Notes to Schedule of Investments.
Third
Quarter Report (Unaudited) | September 30, 2020
|
9
|
Liberty All-Star®
Equity Fund
|
Schedule of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
|
|
Banks (continued)
|
|
|
|
|
|
|
|
|
BOK Financial Corp.
|
|
|
29,600
|
|
|
$
|
1,524,696
|
|
Citigroup, Inc.
|
|
|
239,427
|
|
|
|
10,321,698
|
|
Commerce Bancshares, Inc.
|
|
|
64,000
|
|
|
|
3,602,560
|
|
Cullen/Frost Bankers, Inc.
|
|
|
38,000
|
|
|
|
2,430,100
|
|
East West Bancorp, Inc.
|
|
|
94,300
|
|
|
|
3,087,382
|
|
JPMorgan Chase & Co.
|
|
|
195,283
|
|
|
|
18,799,894
|
|
Mitsubishi UFJ Financial Group, Inc.(b)(c)
|
|
|
650,000
|
|
|
|
2,606,500
|
|
PNC Financial Services Group, Inc.
|
|
|
49,400
|
|
|
|
5,429,554
|
|
Wells Fargo & Co.
|
|
|
422,158
|
|
|
|
9,924,935
|
|
|
|
|
|
|
|
|
65,378,833
|
|
Capital Markets (3.43%)
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
|
|
43,200
|
|
|
|
6,657,552
|
|
Charles Schwab Corp.
|
|
|
307,000
|
|
|
|
11,122,610
|
|
Goldman Sachs Group, Inc.
|
|
|
39,171
|
|
|
|
7,872,196
|
|
Morgan Stanley
|
|
|
104,531
|
|
|
|
5,054,074
|
|
Northern Trust Corp.
|
|
|
87,915
|
|
|
|
6,854,732
|
|
S&P Global, Inc.
|
|
|
17,000
|
|
|
|
6,130,200
|
|
UBS Group AG
|
|
|
361,404
|
|
|
|
4,029,655
|
|
|
|
|
|
|
|
|
47,721,019
|
|
Consumer Finance (1.11%)
|
|
|
|
|
|
|
|
|
Capital One Financial Corp.
|
|
|
214,632
|
|
|
|
15,423,456
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial Services (2.18%)
|
|
|
|
|
|
|
|
|
Berkshire Hathaway, Inc., Class B(a)
|
|
|
83,925
|
|
|
|
17,870,989
|
|
Equitable Holdings, Inc.
|
|
|
398,322
|
|
|
|
7,265,393
|
|
Voya Financial, Inc.
|
|
|
105,990
|
|
|
|
5,080,101
|
|
|
|
|
|
|
|
|
30,216,483
|
|
Insurance (3.61%)
|
|
|
|
|
|
|
|
|
American International Group, Inc.
|
|
|
416,768
|
|
|
|
11,473,623
|
|
Axis Capital Holdings, Ltd.
|
|
|
171,252
|
|
|
|
7,541,938
|
|
Chubb, Ltd.
|
|
|
133,522
|
|
|
|
15,504,575
|
|
Cincinnati Financial Corp.
|
|
|
12,693
|
|
|
|
989,673
|
|
MetLife, Inc.
|
|
|
207,103
|
|
|
|
7,698,018
|
|
Progressive Corp.
|
|
|
72,795
|
|
|
|
6,891,503
|
|
|
|
|
|
|
|
|
50,099,330
|
|
HEALTH CARE (14.40%)
|
|
|
|
|
|
|
|
|
Biotechnology (1.26%)
|
|
|
|
|
|
|
|
|
Amgen, Inc.
|
|
|
35,800
|
|
|
|
9,098,928
|
|
BioMarin Pharmaceutical, Inc.(a)
|
|
|
37,200
|
|
|
|
2,830,176
|
|
Regeneron Pharmaceuticals, Inc.(a)
|
|
|
9,871
|
|
|
|
5,525,588
|
|
|
|
|
|
|
|
|
17,454,692
|
|
See
Notes to Schedule of Investments.
Liberty All-Star®
Equity Fund
|
Schedule of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
|
|
Health Care Equipment & Supplies (6.60%)
|
|
|
|
|
|
|
|
|
Abbott Laboratories
|
|
|
105,709
|
|
|
$
|
11,504,311
|
|
Alcon, Inc.(a)
|
|
|
104,500
|
|
|
|
5,951,275
|
|
Align Technology, Inc.(a)
|
|
|
19,546
|
|
|
|
6,398,579
|
|
Becton Dickinson and Co.
|
|
|
34,315
|
|
|
|
7,984,414
|
|
Boston Scientific Corp.(a)
|
|
|
151,747
|
|
|
|
5,798,253
|
|
Danaher Corp.
|
|
|
112,186
|
|
|
|
24,157,011
|
|
Intuitive Surgical, Inc.(a)
|
|
|
10,458
|
|
|
|
7,420,369
|
|
Koninklijke Philips NV(a)
|
|
|
188,722
|
|
|
|
8,898,249
|
|
Medtronic PLC
|
|
|
70,000
|
|
|
|
7,274,400
|
|
Smith & Nephew PLC(c)
|
|
|
162,720
|
|
|
|
6,362,352
|
|
|
|
|
|
|
|
|
91,749,213
|
|
Health Care Providers & Services (3.10%)
|
|
|
|
|
|
|
|
|
Cardinal Health, Inc.
|
|
|
53,609
|
|
|
|
2,516,943
|
|
McKesson Corp.
|
|
|
45,454
|
|
|
|
6,769,464
|
|
Quest Diagnostics, Inc.
|
|
|
107,710
|
|
|
|
12,331,718
|
|
UnitedHealth Group, Inc.
|
|
|
68,838
|
|
|
|
21,461,623
|
|
|
|
|
|
|
|
|
43,079,748
|
|
Life Sciences Tools & Services (1.72%)
|
|
|
|
|
|
|
|
|
Illumina, Inc.(a)
|
|
|
39,469
|
|
|
|
12,199,079
|
|
IQVIA Holdings, Inc.(a)
|
|
|
18,600
|
|
|
|
2,931,918
|
|
Thermo Fisher Scientific, Inc.
|
|
|
19,768
|
|
|
|
8,727,967
|
|
|
|
|
|
|
|
|
23,858,964
|
|
Pharmaceuticals (1.72%)
|
|
|
|
|
|
|
|
|
Elanco Animal Health, Inc.(a)
|
|
|
209,500
|
|
|
|
5,851,335
|
|
Mylan NV(a)
|
|
|
205,038
|
|
|
|
3,040,714
|
|
Novartis AG(c)
|
|
|
68,000
|
|
|
|
5,913,280
|
|
Zoetis, Inc.
|
|
|
55,300
|
|
|
|
9,144,961
|
|
|
|
|
|
|
|
|
23,950,290
|
|
INDUSTRIALS (11.86%)
|
|
|
|
|
|
|
|
|
Aerospace & Defense (1.31%)
|
|
|
|
|
|
|
|
|
General Dynamics Corp.
|
|
|
34,000
|
|
|
|
4,706,620
|
|
Honeywell International, Inc.
|
|
|
52,620
|
|
|
|
8,661,778
|
|
Textron, Inc.
|
|
|
135,257
|
|
|
|
4,881,425
|
|
|
|
|
|
|
|
|
18,249,823
|
|
Air Freight & Logistics (0.52%)
|
|
|
|
|
|
|
|
|
Expeditors International of Washington, Inc.
|
|
|
79,240
|
|
|
|
7,172,805
|
|
|
|
|
|
|
|
|
|
|
Building Products (1.89%)
|
|
|
|
|
|
|
|
|
Allegion PLC
|
|
|
61,000
|
|
|
|
6,033,510
|
|
Johnson Controls International PLC
|
|
|
151,500
|
|
|
|
6,188,775
|
|
See
Notes to Schedule of Investments.
Third Quarter Report (Unaudited)
| September 30, 2020
|
11
|
Liberty All-Star®
Equity Fund
|
Schedule of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
|
|
Building Products (continued)
|
|
|
|
|
|
|
|
|
Masco Corp.
|
|
|
254,630
|
|
|
$
|
14,037,752
|
|
|
|
|
|
|
|
|
26,260,037
|
|
Commercial Services & Supplies (0.37%)
|
|
|
|
|
|
|
|
|
Waste Connections, Inc.
|
|
|
50,100
|
|
|
|
5,200,380
|
|
|
|
|
|
|
|
|
|
|
Electrical Equipment (0.84%)
|
|
|
|
|
|
|
|
|
Eaton Corp. PLC
|
|
|
82,515
|
|
|
|
8,419,005
|
|
Emerson Electric Co.
|
|
|
49,580
|
|
|
|
3,250,961
|
|
|
|
|
|
|
|
|
11,669,966
|
|
Industrial Conglomerates (0.79%)
|
|
|
|
|
|
|
|
|
General Electric Co.
|
|
|
1,755,143
|
|
|
|
10,934,541
|
|
|
|
|
|
|
|
|
|
|
Machinery (3.32%)
|
|
|
|
|
|
|
|
|
Oshkosh Corp.
|
|
|
81,000
|
|
|
|
5,953,500
|
|
PACCAR, Inc.
|
|
|
93,530
|
|
|
|
7,976,238
|
|
Parker-Hannifin Corp.
|
|
|
33,600
|
|
|
|
6,798,624
|
|
Stanley Black & Decker, Inc.
|
|
|
34,340
|
|
|
|
5,569,948
|
|
Wabtec Corp.
|
|
|
131,958
|
|
|
|
8,165,561
|
|
Xylem, Inc.
|
|
|
138,600
|
|
|
|
11,659,032
|
|
|
|
|
|
|
|
|
46,122,903
|
|
Professional Services (1.65%)
|
|
|
|
|
|
|
|
|
IHS Markit, Ltd.
|
|
|
205,474
|
|
|
|
16,131,764
|
|
TransUnion
|
|
|
81,200
|
|
|
|
6,831,356
|
|
|
|
|
|
|
|
|
22,963,120
|
|
Road & Rail (0.69%)
|
|
|
|
|
|
|
|
|
Union Pacific Corp.
|
|
|
48,881
|
|
|
|
9,623,202
|
|
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors (0.48%)
|
|
|
|
|
|
|
|
|
HD Supply Holdings, Inc.(a)
|
|
|
162,620
|
|
|
|
6,706,449
|
|
|
|
|
|
|
|
|
|
|
INFORMATION TECHNOLOGY (22.05%)
|
|
|
|
|
|
|
|
|
IT Services (7.01%)
|
|
|
|
|
|
|
|
|
Accenture Ltd., Class A, Class A
|
|
|
26,530
|
|
|
|
5,995,515
|
|
Cognizant Technology Solutions Corp., Class A
|
|
|
119,153
|
|
|
|
8,271,601
|
|
FleetCor Technologies, Inc.(a)
|
|
|
48,355
|
|
|
|
11,513,326
|
|
Mastercard, Inc., Class A
|
|
|
28,696
|
|
|
|
9,704,126
|
|
PayPal Holdings, Inc.(a)
|
|
|
162,053
|
|
|
|
31,929,303
|
|
Snowflake, Inc.(a)
|
|
|
6,967
|
|
|
|
1,748,717
|
|
Visa, Inc., Class A
|
|
|
141,458
|
|
|
|
28,287,356
|
|
|
|
|
|
|
|
|
97,449,944
|
|
See
Notes to Schedule of Investments.
Liberty
All-Star® Equity Fund
|
Schedule
of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
|
|
Semiconductors & Semiconductor Equipment (3.12%)
|
|
|
|
|
|
|
|
|
ASML Holding N.V.
|
|
|
15,353
|
|
|
$
|
5,669,402
|
|
Microchip Technology, Inc.
|
|
|
75,800
|
|
|
|
7,789,208
|
|
NVIDIA Corp.
|
|
|
23,993
|
|
|
|
12,985,492
|
|
QUALCOMM, Inc.
|
|
|
70,000
|
|
|
|
8,237,600
|
|
Xilinx, Inc.
|
|
|
83,670
|
|
|
|
8,721,761
|
|
|
|
|
|
|
|
|
43,403,463
|
|
Software (11.39%)
|
|
|
|
|
|
|
|
|
Adobe, Inc.(a)
|
|
|
66,315
|
|
|
|
32,522,865
|
|
ANSYS, Inc.(a)
|
|
|
35,000
|
|
|
|
11,453,050
|
|
Autodesk, Inc.(a)
|
|
|
36,986
|
|
|
|
8,544,136
|
|
Intuit, Inc.
|
|
|
19,134
|
|
|
|
6,241,702
|
|
Microsoft Corp.
|
|
|
126,993
|
|
|
|
26,710,438
|
|
salesforce.com, Inc.(a)
|
|
|
99,687
|
|
|
|
25,053,337
|
|
ServiceNow, Inc.(a)
|
|
|
38,881
|
|
|
|
18,857,285
|
|
Splunk, Inc.(a)
|
|
|
41,955
|
|
|
|
7,892,994
|
|
Trade Desk, Inc., Class A(a)
|
|
|
17,954
|
|
|
|
9,314,176
|
|
Workday, Inc., Class A(a)
|
|
|
54,001
|
|
|
|
11,617,235
|
|
|
|
|
|
|
|
|
158,207,218
|
|
Technology Hardware, Storage & Peripherals (0.53%)
|
|
|
|
|
|
|
|
|
Hewlett Packard Enterprise Co.
|
|
|
790,520
|
|
|
|
7,407,172
|
|
|
|
|
|
|
|
|
|
|
MATERIALS (4.41%)
|
|
|
|
|
|
|
|
|
Chemicals (3.27%)
|
|
|
|
|
|
|
|
|
Corteva, Inc.
|
|
|
225,000
|
|
|
|
6,482,250
|
|
Dow Chemical Co.
|
|
|
184,991
|
|
|
|
8,703,827
|
|
Ecolab, Inc.
|
|
|
38,335
|
|
|
|
7,660,866
|
|
Linde PLC
|
|
|
35,258
|
|
|
|
8,395,988
|
|
PPG Industries, Inc.
|
|
|
62,350
|
|
|
|
7,611,688
|
|
RPM International, Inc.
|
|
|
80,000
|
|
|
|
6,627,200
|
|
|
|
|
|
|
|
|
45,481,819
|
|
Construction Materials (0.46%)
|
|
|
|
|
|
|
|
|
Martin Marietta Materials, Inc.
|
|
|
27,000
|
|
|
|
6,354,720
|
|
|
|
|
|
|
|
|
|
|
Containers & Packaging (0.68%)
|
|
|
|
|
|
|
|
|
Ball Corp.
|
|
|
113,168
|
|
|
|
9,406,524
|
|
|
|
|
|
|
|
|
|
|
REAL ESTATE (2.65%)
|
|
|
|
|
|
|
|
|
Equity Real Estate Investment Trusts (REITs) (2.65%)
|
|
|
|
|
|
|
|
|
American Tower Corp.
|
|
|
54,050
|
|
|
|
13,065,506
|
|
Equinix, Inc.
|
|
|
22,628
|
|
|
|
17,200,222
|
|
Equity LifeStyle Properties, Inc.
|
|
|
52,600
|
|
|
|
3,224,380
|
|
See
Notes to Schedule of Investments.
Third
Quarter Report (Unaudited) | September 30, 2020
|
13
|
Liberty All-Star®
Equity Fund
|
Schedule of Investments
|
September
30, 2020 (Unaudited)
|
|
SHARES
|
|
|
MARKET VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
|
|
Equity Real Estate Investment Trusts (REITs) (continued)
|
|
|
|
|
|
|
|
|
Sun Communities, Inc.
|
|
|
23,800
|
|
|
$
|
3,346,518
|
|
|
|
|
|
|
|
|
36,836,626
|
|
UTILITIES (0.53%)
|
|
|
|
|
|
|
|
|
Electric Utilities (0.53%)
|
|
|
|
|
|
|
|
|
NRG Energy, Inc.
|
|
|
237,861
|
|
|
|
7,311,847
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
|
|
|
|
|
|
|
|
|
(COST OF $1,138,634,732)
|
|
|
|
|
|
|
1,357,500,870
|
|
|
|
|
|
|
|
|
|
|
SHORT TERM INVESTMENTS (2.59%)
|
|
|
|
|
|
|
|
|
MONEY MARKET FUND (2.38%)
|
|
|
|
|
|
|
|
|
State Street Institutional US Government Money Market Fund, 0.024%(d)
|
|
|
|
|
|
|
|
|
(COST OF $33,046,968)
|
|
|
33,046,968
|
|
|
|
33,046,968
|
|
|
|
|
|
|
|
|
|
|
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES
LOANED (0.21%)
|
|
|
|
|
|
|
|
|
State Street Navigator Securities Lending Government Money Market Portfolio, 0.09%
|
|
|
|
|
|
|
|
|
(COST OF $2,871,000)
|
|
|
2,871,000
|
|
|
|
2,871,000
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHORT TERM INVESTMENTS
|
|
|
|
|
|
|
|
|
(COST OF $35,917,968)
|
|
|
|
|
|
|
35,917,968
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS (100.26%)
|
|
|
|
|
|
|
|
|
(COST OF $1,174,552,700)
|
|
|
|
|
|
|
1,393,418,838
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.26%)
|
|
|
|
|
|
|
(3,580,153
|
)
|
|
|
|
|
|
|
|
|
|
NET ASSETS (100.00%)
|
|
|
|
|
|
$
|
1,389,838,685
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE PER SHARE
|
|
|
|
|
|
|
|
|
(215,084,612 SHARES OUTSTANDING)
|
|
|
|
|
|
$
|
6.46
|
|
|
(a)
|
Non-income
producing security.
|
|
(b)
|
Security,
or a portion of the security position, is currently on loan. The total market value of securities on loan is $2,712,760.
|
|
(c)
|
American
Depositary Receipt.
|
|
(d)
|
Rate
reflects seven-day effective yield on September 30, 2020.
|
See
Notes to Schedule of Investments.
Liberty All-Star®
Equity Fund
|
Notes to Schedule of Investments
|
September 30, 2020 (Unaudited)
Security
Valuation
Equity
securities are valued at the last sale price at the close of the principal exchange on which they trade, except for securities
listed on the NASDAQ Stock Market LLC (“NASDAQ”), which are valued at the NASDAQ official closing price. Unlisted
securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges
or over-the-counter markets.
Cash
collateral from securities lending activity is reinvested in the State Street Navigator Securities Lending Government Money Market
Portfolio (“State Street Navigator”), a registered investment company under the Investment Company Act of 1940 (the
“1940 Act”), which operates as a money market fund in compliance with Rule 2a-7 under the 1940 Act. Shares of registered
investment companies are valued daily at that investment company’s net asset value per share.
The
Fund’s investments are valued at market value or, in the absence of market value with respect to any portfolio securities,
at fair value according to procedures adopted by the Fund’s Board of Trustees (the “Board”). When market quotations
are not readily available, or in management’s judgment they do not accurately reflect fair value of a security, or an event
occurs after the market close but before the Fund is priced that materially affects the value of a security, the security will
be valued by the Fund’s Valuation Committee using fair valuation procedures established by the Board. Examples of potentially
significant events that could materially impact a Fund’s net asset value include, but are not limited to: single issuer
events such as corporate actions, reorganizations, mergers, spin-offs, liquidations, acquisitions and buyouts; corporate announcements
on earnings or product offerings; regulatory news; and litigation and multiple issuer events such as governmental actions; natural
disasters or armed conflicts that affect a country or a region; or significant market fluctuations. Potential significant events
are monitored by the Advisor, ALPS Advisors, Inc. (the “Advisor”), Sub-Advisers and/or the Valuation Committee through
independent reviews of market indicators, general news sources and communications from the Fund’s custodian. As of September
30, 2020, the Fund held no securities that were fair valued.
Security
Transactions
Security
transactions are recorded on trade date. Cost is determined and gains/(losses) are based upon the specific identification method
for both financial statement and federal income tax purposes.
Income
Recognition
Interest
income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date.
The
Fund estimates components of distributions from real estate investment trusts (“REITs”). Distributions received in
excess of income are recorded as a reduction of the cost of the related investments. Once the REIT reports annually the tax character
of its distributions, the Fund revises its estimates. If the Fund no longer owns the applicable securities, any distributions
received in excess of income are recorded as realized gains.
Third Quarter
Report (Unaudited) | September 30, 2020
|
15
|
Liberty All-Star®
Equity Fund
|
Notes to Schedule of Investments
|
September
30, 2020 (Unaudited)
Lending
of Portfolio Securities
The
Fund may lend its portfolio securities only to borrowers that are approved by the Fund’s securities lending agent, State
Street Bank & Trust Co. (“SSB”). The Fund will limit such lending to not
more than 30% of the value of its total assets. The borrower pledges and maintains with the Fund collateral consisting of cash
(U.S. Dollar only), securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, or by irrevocable
bank letters of credit issued by a person other than the borrower or an affiliate of the borrower. The initial collateral received
by the Fund is required to have a value of no less than 102% of the market value of the loaned securities for securities traded
on U.S. exchanges and a value of no less than 105% of the market value for all other securities. The collateral is maintained
thereafter, at a market value equal to no less than 100% of the current value of the securities on loan. The market value of the
loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund
on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the
loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed
securities within the standard time period for settlement of securities transactions.
Any
cash collateral received is reinvested in State Street Navigator. Non-cash collateral, in the form of securities issued or guaranteed
by the U.S. government or its agencies or instrumentalities, is not disclosed in the Fund’s Schedule of Investments as it
is held by the lending agent on behalf of the Fund, and the Fund does not have the ability to re-hypothecate these securities.
The
following is a summary of the Fund’s securities lending positions and related cash and non-cash collateral received as
of September 30, 2020:
Market Value of
Securities on Loan
|
|
|
Cash
Collateral Received
|
|
|
Non-Cash
Collateral Received
|
|
|
Total
Collateral Received
|
|
$
|
2,712,760
|
|
|
$
|
2,871,000
|
|
|
$
|
0
|
|
|
$
|
2,871,000
|
|
The
risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not
return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by SSB.
SSB’s indemnity allows for full replacement of securities lent wherein SSB will purchase the unreturned loaned securities
on the open market by applying the proceeds of the collateral, or to the extent such proceeds are insufficient or the collateral
is unavailable, SSB will purchase the unreturned loan securities at SSB’s expense. However, the Fund could suffer a loss
if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.
Fair
Value Measurements
The
Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to
measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability,
including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants
would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting
entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would
use in pricing the asset or liability that are developed based on the best information available.
Liberty All-Star®
Equity Fund
|
Notes to Schedule of Investments
|
September
30, 2020 (Unaudited)
Valuation
techniques used to value the Fund’s investments by major category are as follows:
Equity
securities that are valued based on unadjusted quoted prices in active markets are categorized as Level 1 in the hierarchy. In
the event there were no sales during the day or closing prices are not available, securities are valued at the mean of the most
recent quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy. Investments in shares
of registered investment companies are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.
Various
inputs are used in determining the value of the Fund’s investments as of the end of the reporting period. When inputs used
fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls
is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated
input levels are not necessarily an indication of the risk or liquidity associated with these investments.
These
inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1 –
|
Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund
has the ability to access at the measurement date;
|
Level 2 –
|
Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other
than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability;
and
|
Level 3 –
|
Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value
of investments) where there is little or no market activity for the asset or liability at the measurement date.
|
The
following is a summary of the inputs used to value the Fund’s investments as of September 30, 2020:
|
|
Valuation Inputs
|
|
|
|
|
|
Investments in Securities at Value
|
|
|
Level 1
|
|
|
|
Level 2
|
|
|
|
Level 3
|
|
|
|
Total
|
|
Common Stocks*
|
|
$
|
1,357,500,870
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,357,500,870
|
|
Short Term Investments
|
|
|
35,917,968
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35,917,968
|
|
Total
|
|
$
|
1,393,418,838
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,393,418,838
|
|
*
|
See
Schedule of Investments for industry classifications.
|
The
Fund did not have any securities which used significant unobservable inputs (Level 3) in determining fair value during the period.
Third Quarter Report (Unaudited)
| September 30, 2020
|
17
|
Liberty All-Star®
Equity Fund
|
Notes to Schedule of Investments
|
September
30, 2020 (Unaudited)
Indemnification
In
the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which
provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future
claims against the Fund. Also, under the Fund’s organizational documents and by contract, the Trustees and Officers of the
Fund are indemnified against certain liabilities that may arise out of their duties to the Fund. However, based on experience,
the Fund expects the risk of loss due to these warranties and indemnities to be minimal.
Liberty
All-Star® Equity Fund
|
Description
of Lipper Benchmark
|
and
Market Indices
|
|
September 30, 2020
(Unaudited)
|
Dow
Jones Industrial Average
A
price-weighted measure of 30 U.S. blue-chip companies.
Lipper
Large-Cap Core Mutual Fund Average
The
average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations
(on a three-year weighted basis) above Lipper’s U.S. domestic equity large-cap floor. These funds typically have average
characteristics compared to the S&P 500® Index.
NASDAQ
Composite Index
Measures
all NASDAQ domestic and international based common type stocks listed on the NASDAQ Stock Market.
Russell
1000® Growth Index
Measures
the performance of those Russell 1000® companies with lower book-to-price ratios and higher growth values. The
Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000®
Index.
Russell
1000® Value Index
Measures
the performance of those Russell 1000® companies with higher book-to-price ratios and lower growth values. The
Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000®
Index.
S&P
500® Index
A
large-cap U.S. equities index that includes 500 leading companies and captures approximately 80% coverage of available market
capitalization.
An
investor cannot invest directly in an index.
Third Quarter Report (Unaudited)
| September 30, 2020
|
19
|
Intentionally
Left Blank
|
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT
ADVISOR
|
LEGAL
COUNSEL
|
|
ALPS Advisors, Inc.
|
K&L Gates LLP
|
|
1290 Broadway, Suite 1000
|
1601 K Street, NW
|
|
Denver, Colorado 80203
|
Washington, DC 20006
|
|
303-623-2577
|
|
|
www.all-starfunds.com
|
TRUSTEES
|
|
|
|
|
Thomas W. Brock*,
Chairman
|
|
INDEPENDENT
REGISTERED
|
Edmund J. Burke
|
|
PUBLIC
ACCOUNTING FIRM
|
George R. Gaspari*
|
|
Deloitte & Touche LLP
|
Milton M. Irvin*
|
|
1601 Wewatta Street, Suite 400
|
Dr. John J. Neuhauser*
|
|
Denver, Colorado 80202
|
Maureen K. Usifer*
|
|
|
|
|
|
|
|
CUSTODIAN
|
OFFICERS
|
|
State Street Bank & Trust Company
|
William R. Parmentier,
Jr., President
|
|
One Lincoln Street
|
Mark T. Haley, CFA,
Senior Vice President
|
|
Boston, Massachusetts 02111
|
Jill Kerschen, Treasurer
|
|
|
Sareena Khwaja-Dixon,
Secretary
|
|
|
Jennifer Craig, Assistant
Secretary
|
|
INVESTOR
ASSISTANCE,
TRANSFER
& DIVIDEND
DISBURSING
AGENT & REGISTRAR
|
Matthew
Sutula, Chief Compliance Officer
* Member
of the Audit Committee
|
|
Computershare Trust Company, N.A.
|
|
|
P.O. Box 505000
|
|
|
Louisville, Kentucky 40233
|
|
|
1-800-LIB-FUND (1-800-542-3863)
|
|
|
www.computershare.com
|
|
|
|
|
|
A
description of the Fund’s proxy voting policies and procedures is available (i) on the Securities and Exchange Commission’s
(“SEC”) website at www.sec.gov, and (ii) without charge, upon request, by calling 1-800-542-3863. Information regarding
how the Fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC’s
website at www.sec.gov.
The
Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year in Form
N-PORT. The Fund’s Form N-PORTs are available on the SEC’s website at www.sec.gov and may be reviewed and copied at
the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained
by calling 1-800-SEC-0330.
Notice
is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase at market prices
from time to time shares of its own common stock in the open market.
This
report is transmitted to shareholders of Liberty All-Star® Equity Fund for their information. It is not a prospectus
or other document intended for use in the purchase of Fund shares.
|
|
|
|
|
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