Liberty All-Star® Equity Fund December 2017 Update

Below is the December 2017 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE:USA)

Liberty All-Star Equity Fund		Monthly Update
	Ticker: USA	December, 2017
Investment Approach

Fund Style: Large-Cap Core

Fund Strategy: Combines three value-style and two growth-style
investment managers. Those selected demonstrate a consistent
investment philosophy, decision making process, continuity of key
people and above-average long-term results compared to managers
with similar styles.

Investment Managers:
Value Managers:
Aristotle Capitol Management, LLC
Macquarie Investment Management
Pzena Investment Management, LLC

Growth Managers:
Sustainable Growth Advisers, LP
TCW Investment Management Company

Top 20 Holdings at Month-End
	(29.3% of equity portfolio)
	(Rank from previous month)
1	Alphabet, Inc., Class C (3)	2.1	%
2	Facebook, Inc., Class A (2)	2.1	%
3	Visa, Inc., Class A (1)	2.0	%
4	Salesforce.com, Inc. (4)	1.9	%
5	Adobe Systems, Inc. (5)	1.8	%
6	Amazon.com, Inc. (6)	1.8	%
7	Mondelez International, Inc., Class A (7)	1.6	%
8	Bank of America Corp. (8)	1.5	%
9	Halliburton Co. (14)	1.4	%
10	PayPal Holdings, Inc. (9)	1.3	%
11	Equinix, Inc. (10)	1.3	%
12	Starbucks Corp. (13)	1.3	%
13	Lowe's Companies, Inc. (11)	1.2	%
14	Oracle Corp. (15)	1.2	%
15	Chubb Ltd. (12)	1.2	%
16	The Home Depot, Inc. (16)	1.2	%
17	The Priceline Group, Inc. (17)	1.1	%
18	Capital One Financial Corp. (20)	1.1	%
19	DowDuPont, Inc. (18)	1.1	%
20	JPMorgan Chase & Co. (19)	1.1	%
	Holdings are subject to change.

Monthly Performance
Performance	NAV	Market Price		Discount
Beginning of month value	$6.77	$6.09		-10.0%
Distributions	–	–
End of month value	$6.87	$6.30		-8.3%
Performance for month	1.48%	3.45%
Performance year-to-date	23.38%	34.42%

The net asset value (NAV) of a closed-end fund is the market value of the underlying investments (i.e., stocks and bonds) in the Fund’s portfolio, minus liabilities, divided by the total number of Fund shares outstanding. However, the Fund also has a market price; the value at which it trades on an exchange. If the market price is above the NAV the Fund is trading at a premium. If the market price is below the NAV the Fund is trading at a discount.

Performance returns for the Fund are total returns, which includes dividends, and are net of management fees and other Fund expenses. Returns are calculated assuming that a shareholder reinvested all distributions. Past performance cannot predict future investment results.

Performance will fluctuate with changes in market conditions. Current performance may be lower or higher than the performance data shown. Performance information shown does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of Fund shares. Shareholders must be willing to tolerate significant fluctuations in the value of their investment. An investment in the Fund involves risk, including loss of principal.

Sources of distributions to shareholders may include ordinary dividends, long-term capital gains and return of capital. 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. 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 shareholders’ 1099-DIV forms after the end of the year. The Liberty All-Star Equity Fund is a closed-end fund and does not continuously offer shares.The Fund trades in the secondary market, investors wishing to buy or sell shares need to place orders through an intermediary or broker by using the Fund’s ticker symbol: USA. Secondary market support provided to the Fund by ALPS Fund Services, Inc.’s affiliate ALPS Portfolio Solutions Distributor, Inc., a FINRA member. All data is as of December 31, 2017 unless otherwise noted.

Net Assets at Month-End ($millions)
Total	$1,329.8
Equities	$1,304.5
Percent Invested	98.1%

Sector Breakdown (% of equity portfolio)*
Information Technology			24.0%
Financials			17.3%
Health Care			14.6%
Consumer Discretionary			13.9%
Energy			8.8%
Consumer Staples			6.5%
Industrials			6.3%
Materials			3.4%
Real Estate			2.9%
Telecommunication Services			1.2%
Utilities			1.1%
Total Market Value			100.0%
*Based on Standard & Poor's and MSCI Barra Global Industry Classification Standard (GICS).

New Holdings				Holdings Liquidated
Align Technology, Inc.				Baxter International, Inc.
The Walt Disney Co.