LIBERTY ALL-STAR®
EQUITY FUND
|
Period Ended September 30, 2021 (Unaudited)
|
Fund Statistics
|
|
Net Asset Value (NAV)
|
$7.91
|
Market Price
|
$8.60
|
Premium
|
8.7%
|
|
Quarter
|
Year-to-Date
|
Distributions*
|
$0.21
|
$0.60
|
Market Price Trading Range
|
$8.14 to $9.34
|
$6.70 to $9.34
|
Premium/(Discount) Range
|
1.1% to 12.1%
|
13.0% to -7.8%
|
Performance
|
|
|
Shares Valued at NAV with Dividends Reinvested
|
-0.19%
|
15.77%
|
Shares Valued at Market Price with Dividends Reinvested
|
-2.41%
|
34.44%
|
Dow Jones Industrial Average
|
-1.46%
|
12.12%
|
Lipper
Large-Cap Core Mutual Fund Average
|
0.08%
|
14.94%
|
NASDAQ Composite Index
|
-0.23%
|
12.66%
|
S&P
500® Index
|
0.58%
|
15.92%
|
|
*
|
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
2021 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 these distributions
will be reported on Form 1099-DIV for 2021.
|
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 18.
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 2021
|
U.S. equity markets were flat to modestly lower
in the third quarter owing to a weak September, highlighted by the 4.65 percent monthly decline in the S&P 500®
Index. For the quarter, the S&P 500® returned 0.58 percent, the Dow Jones Industrial Average (DJIA) declined
1.46 percent and the NASDAQ Composite Index lost 0.23 percent.
Although choppy in July and August, equities
continued to gain ground; the S&P 500® returned 2.38 percent in July and 3.04 percent in August. But in September
a number of factors came together to blunt the advance and lead to the first monthly reversal in the index since January. These
included an increase in the number of COVID-19 cases in the U.S., chiefly attributed to the highly contagious Delta variant; supply
chain bottlenecks in everything from semiconductors to retail merchandise for the holiday season; instability in China’s
real estate market; and the U.S. Federal Reserve tightening money supply by slowing its bond purchases.
The quarter also saw positive news: In early
July, the Labor Department reported that 850,000 U.S. jobs were added in June and in August the department reported that July job
growth reached 943,000. (August data disappointed, as just 235,000 jobs were added.) Corporate earnings generally topped even optimistic
estimates, with nearly 90 percent of companies exceeding forecasts. And second quarter GDP growth (reported in July) came in at
6.6 percent, meaning that the economy had exceeded its pre-pandemic level.
In the more positive environment that characterized
the first two months of the quarter, the DJIA broke the 35000 level for the first time (July 23) and the NASDAQ surpassed 15000,
also a first (August 24).
Of the 11 S&P sectors, six posted positive
returns for the quarter while five were negative. Financial stocks generated the strongest gains, as banks are seen as benefiting
from higher interest rates. Industrials and materials were the two poorest performing sectors, hurt by supply chain disruptions
and higher energy costs. Higher interest rates were also a drag, particularly for richly valued information technology companies.
Liberty All-Star® Equity
Fund
Liberty All-Star Equity Fund experienced moderately
lower returns in the third quarter. The Fund returned -0.19 percent when shares are valued at net asset value (NAV) with dividends
reinvested and -2.41 percent when shares are valued at market price with dividends reinvested. (Fund returns are net of expenses.)
The Fund’s NAV return was slightly lower
than the 0.08 percent return of the Fund’s primary benchmark, the Lipper Large-Cap Core Mutual Fund Average, and was mixed
for the quarter compared to key market indices—ahead of the DJIA and the NASDAQ Composite and less than one percentage point
behind the 0.58 percent gain posted by the S&P 500®. The Fund’s market price return, however, lagged all
the aforementioned indices.
Through the first nine months of the year,
the Fund has consistently outperformed: The Fund returned 15.77 percent with return measured by NAV and 34.44 percent when measured
by market price. The Lipper benchmark returned 14.94 percent for the same period. Both Fund returns also topped the DJIA and NASDAQ
Composite; the Fund’s NAV return was essentially equal with the S&P 500® (trailing by 15 basis points)
while its market price return considerably exceeded that of the 15.92 percent posted by the S&P 500®.
Third Quarter Report (Unaudited) | September
30, 2021
|
1
|
Liberty All-Star® Equity Fund
|
President’s Letter
|
|
(Unaudited)
|
Through three quarters, the broad market Russell
3000® Value Index continued to outperform its growth counterpart, returning 16.58 percent versus 13.49 percent.
The Growth index moderately outperformed in the third quarter, however.
Over the quarter, Fund shares traded at premium
to their underlying NAV, the premium ranging from 1.1 percent to 12.1 percent. Through nine months this year, the trading range
has extended from a discount of -7.8 percent to a premium of 13.0 percent.
In accordance with the Fund’s distribution
policy, the Fund paid a distribution of $0.21 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 $28.78 per share
for a total of more than $3.2 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.
Turning to Fund news, on August 9 the Board
of Trustees announced that it had authorized a rights offering to the Fund’s shareholders of rights to purchase additional
shares of the Fund. Shareholders as of the record date, which was later set as October 15, are able to subscribe for one additional
share for every 10 shares held, with the right to subscribe for additional shares not subscribed for by others in the primary subscription.
If over-subscription requests exceed the number of shares available in the offering, the Fund may elect to issue up to an additional
25 percent of shares above those offered in the primary subscription. The subscription price per share will be 95 percent of the
reported net asset value or market price per share, whichever is lower, on the expiration date. Market price per share will be
determined based on the average of last reported sales prices of a share on the New York Stock Exchange on the expiration date
and the four trading days preceding the expiration date. Details of the offering are contained in the prospectus and as of this
writing, the rights offering is expected to commence on October 21 and to expire on November 22.
September altered the tenor of the third quarter—from
one building on the year’s positive momentum to one that was mildly negative to unchanged. Given the volatility of trading
in the first few days of October, the fourth quarter is a question mark. While short-term changes of direction are a fact of life
in the equity markets, we at ALPS Advisors are focused on the long term. With Fund returns exceeding those of its primary Lipper
benchmark for the trailing one-, three- and five-year periods, we are confident that the Fund will continue to serve as a core
equity holding for investors who share our long-term perspective.
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 2021 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.
Liberty All-Star® Equity Fund
|
Table of Distributions & Rights Offerings
|
|
September 30, 2021 (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
|
0.63
|
|
|
|
|
2021
|
|
|
|
|
|
1st Quarter
|
0.19
|
|
|
|
|
2nd Quarter
|
0.20
|
|
|
|
|
3rd Quarter
|
0.21
|
|
|
|
|
Total
|
$28.78
|
|
|
|
$0.67
|
|
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 2021 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.
Third Quarter Report (Unaudited) | September
30, 2021
|
3
|
Liberty All-Star® Equity Fund
|
Investment Managers/Portfolio Characteristics
|
|
September 30, 2021 (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, 2021 (Unaudited)
|
|
|
Investment Style Spectrum
|
|
|
|
|
Value
|
|
|
|
Growth
|
|
|
|
|
|
|
|
PZENA
|
FIDUCIARY
|
ARISTOTLE
|
SUSTAINABLE
|
TCW
|
TOTAL FUND
|
S&P 500® INDEX
|
Number of Holdings
|
39
|
31
|
44
|
29
|
33
|
152*
|
505
|
Percent of Holdings in Top 10
|
40%
|
48%
|
34%
|
45%
|
53%
|
20%
|
28%
|
Weighted Average Market Capitalization (billions)
|
$68
|
$214
|
$183
|
$441
|
$438
|
$268
|
$565
|
Average Five-Year Earnings Per Share Growth
|
-2%
|
17%
|
17%
|
24%
|
32%
|
19%
|
18%
|
Dividend Yield
|
2.0%
|
1.3%
|
1.4%
|
0.5%
|
0.3%
|
1.1%
|
1.4%
|
Price/Earnings Ratio**
|
14x
|
19x
|
20x
|
39x
|
54x
|
23x
|
27x
|
Price/Book Value Ratio
|
1.5x
|
3.0x
|
3.0x
|
9.1x
|
11.6x
|
3.2x
|
4.6x
|
|
*
|
Certain holdings are held by more than one manager.
|
|
**
|
Excludes negative earnings.
|
Liberty All-Star® Equity Fund
|
Top 20 Holdings & Economic Sectors
|
|
September 30, 2021 (Unaudited)
|
Top 20 Holdings*
|
Percent of Net Assets
|
Alphabet, Inc.
|
2.64%
|
Amazon.com, Inc.
|
2.42
|
Facebook, Inc.
|
2.28
|
PayPal Holdings, Inc.
|
2.27
|
Adobe, Inc.
|
2.03
|
Visa, Inc.
|
1.78
|
salesforce.com, Inc.
|
1.78
|
Microsoft Corp.
|
1.75
|
UnitedHealth Group, Inc.
|
1.63
|
Danaher Corp.
|
1.60
|
Sony Group Corp.
|
1.54
|
Berkshire Hathaway, Inc.
|
1.29
|
Charles Schwab Corp.
|
1.23
|
JPMorgan Chase & Co.
|
1.22
|
Capital One Financial Corp.
|
1.21
|
ServiceNow, Inc.
|
1.19
|
IHS Markit, Ltd.
|
1.15
|
General Electric Co.
|
1.04
|
NVIDIA Corp.
|
1.03
|
American International Group, Inc.
|
1.03
|
|
32.11%
|
Economic Sectors*
|
Percent of Net Assets
|
Information Technology
|
21.50%
|
Financials
|
16.91
|
Health Care
|
14.12
|
Consumer Discretionary
|
13.51
|
Industrials
|
9.19
|
Communication Services
|
8.41
|
Materials
|
3.94
|
Energy
|
3.53
|
Real Estate
|
2.63
|
Consumer Staples
|
2.48
|
Utilities
|
1.49
|
Other Net Assets
|
2.29
|
|
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.
|
Third Quarter Report (Unaudited) | September
30, 2021
|
5
|
Liberty All-Star® Equity Fund
|
Major Stock Changes in the Quarter
|
|
September 30, 2021 (Unaudited)
|
The following are the major ($5 million or
more) stock changes–both purchases and sales–that were made in the Fund’s portfolio during the third quarter
of 2021.
|
Shares
|
Security Name
|
Purchases (Sales)
|
Held as of 9/30/21
|
Purchases
|
|
|
Ecolab, Inc.
|
41,172
|
41,172
|
Fresenius Medical Care AG & Co. KGaA
|
177,673
|
425,150
|
Netflix, Inc.
|
12,738
|
27,438
|
Sales
|
|
|
Textron, Inc.
|
(92,421)
|
78,387
|
Union Pacific Corp.
|
(44,934)
|
0
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (97.71%)
|
|
|
|
|
|
|
COMMUNICATION SERVICES (8.41%)
|
|
|
|
|
|
|
Entertainment (1.62%)
|
|
|
|
|
|
|
Netflix, Inc.(a)
|
|
|
27,438
|
|
|
$
|
16,746,509
|
|
Walt Disney Co.(a)
|
|
|
70,266
|
|
|
|
11,886,899
|
|
|
|
|
|
|
|
|
28,633,408
|
|
Interactive Media & Services (5.40%)
|
|
|
|
|
|
|
|
|
Alphabet, Inc., Class A(a)
|
|
|
3,721
|
|
|
|
9,948,168
|
|
Alphabet, Inc., Class C(a)
|
|
|
13,802
|
|
|
|
36,786,608
|
|
Facebook, Inc., Class A(a)
|
|
|
118,910
|
|
|
|
40,356,865
|
|
Twitter, Inc.(a)
|
|
|
142,600
|
|
|
|
8,611,614
|
|
|
|
|
|
|
|
|
95,703,255
|
|
Media (1.39%)
|
|
|
|
|
|
|
|
|
Comcast Corp., Class A
|
|
|
283,468
|
|
|
|
15,854,365
|
|
Omnicom Group, Inc.
|
|
|
119,755
|
|
|
|
8,677,448
|
|
|
|
|
|
|
|
|
24,531,813
|
|
CONSUMER DISCRETIONARY (13.51%)
|
|
|
|
|
|
|
|
|
Auto Components (1.24%)
|
|
|
|
|
|
|
|
|
Cie Generale des Etablissements Michelin SCA(b)
|
|
|
269,529
|
|
|
|
8,274,540
|
|
Lear Corp.
|
|
|
87,154
|
|
|
|
13,637,858
|
|
|
|
|
|
|
|
|
21,912,398
|
|
Automobiles (0.43%)
|
|
|
|
|
|
|
|
|
Ford Motor Co.(a)
|
|
|
534,293
|
|
|
|
7,565,589
|
|
|
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure (1.52%)
|
|
|
|
|
|
|
|
|
Booking Holdings, Inc.(a)
|
|
|
6,411
|
|
|
|
15,218,881
|
|
Yum! Brands, Inc.
|
|
|
96,468
|
|
|
|
11,799,001
|
|
|
|
|
|
|
|
|
27,017,882
|
|
Household Durables (3.17%)
|
|
|
|
|
|
|
|
|
Lennar Corp., Class A
|
|
|
103,300
|
|
|
|
9,677,144
|
|
Lennar Corp., Class B
|
|
|
2,500
|
|
|
|
193,975
|
|
Mohawk Industries, Inc.(a)
|
|
|
48,630
|
|
|
|
8,626,962
|
|
Newell Brands, Inc.
|
|
|
468,159
|
|
|
|
10,365,040
|
|
Sony Group Corp.(b)
|
|
|
247,123
|
|
|
|
27,326,862
|
|
|
|
|
|
|
|
|
56,189,983
|
|
Internet & Direct Marketing Retail (2.42%)
|
|
|
|
|
|
|
|
|
Amazon.com, Inc.(a)
|
|
|
13,042
|
|
|
|
42,843,492
|
|
|
|
|
|
|
|
|
|
|
Multiline Retail (1.53%)
|
|
|
|
|
|
|
|
|
Dollar General Corp.
|
|
|
72,713
|
|
|
|
15,425,336
|
|
Dollar Tree, Inc.(a)
|
|
|
121,399
|
|
|
|
11,620,312
|
|
|
|
|
|
|
|
|
27,045,648
|
|
See
Notes to Schedule of Investments.
|
|
Third Quarter Report (Unaudited) | September
30, 2021
|
7
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
Specialty Retail (1.04%)
|
|
|
|
|
|
|
Home Depot, Inc.
|
|
|
24,980
|
|
|
$
|
8,199,935
|
|
TJX Cos., Inc.
|
|
|
67,744
|
|
|
|
4,469,749
|
|
Ulta Beauty, Inc.(a)
|
|
|
15,771
|
|
|
|
5,692,069
|
|
|
|
|
|
|
|
|
18,361,753
|
|
Textiles, Apparel & Luxury Goods (2.16%)
|
|
|
|
|
|
|
|
|
Gildan Activewear, Inc.
|
|
|
245,055
|
|
|
|
8,946,958
|
|
NIKE, Inc., Class B
|
|
|
85,416
|
|
|
|
12,404,966
|
|
PVH Corp.(a)
|
|
|
97,564
|
|
|
|
10,028,603
|
|
Skechers U.S.A., Inc., Class A(a)
|
|
|
164,168
|
|
|
|
6,914,756
|
|
|
|
|
|
|
|
|
38,295,283
|
|
CONSUMER STAPLES (2.48%)
|
|
|
|
|
|
|
|
|
Beverages (0.42%)
|
|
|
|
|
|
|
|
|
Coca-Cola Co.
|
|
|
142,000
|
|
|
|
7,450,740
|
|
|
|
|
|
|
|
|
|
|
Food & Staples Retailing (0.65%)
|
|
|
|
|
|
|
|
|
Costco Wholesale Corp.
|
|
|
18,216
|
|
|
|
8,185,359
|
|
Walgreens Boots Alliance, Inc.
|
|
|
71,000
|
|
|
|
3,340,550
|
|
|
|
|
|
|
|
|
11,525,909
|
|
Food Products (0.36%)
|
|
|
|
|
|
|
|
|
Tyson Foods, Inc., Class A
|
|
|
81,000
|
|
|
|
6,394,140
|
|
|
|
|
|
|
|
|
|
|
Household Products (0.41%)
|
|
|
|
|
|
|
|
|
Procter & Gamble Co.
|
|
|
51,500
|
|
|
|
7,199,700
|
|
|
|
|
|
|
|
|
|
|
Personal Products (0.64%)
|
|
|
|
|
|
|
|
|
Unilever PLC(b)
|
|
|
209,272
|
|
|
|
11,346,728
|
|
|
|
|
|
|
|
|
|
|
ENERGY (3.53%)
|
|
|
|
|
|
|
|
|
Energy Equipment & Services (2.03%)
|
|
|
|
|
|
|
|
|
Baker Hughes Co.
|
|
|
457,914
|
|
|
|
11,324,213
|
|
Halliburton Co.
|
|
|
502,719
|
|
|
|
10,868,785
|
|
NOV, Inc.(a)
|
|
|
593,470
|
|
|
|
7,780,392
|
|
Schlumberger NV
|
|
|
200,105
|
|
|
|
5,931,112
|
|
|
|
|
|
|
|
|
35,904,502
|
|
Oil, Gas & Consumable Fuels (1.50%)
|
|
|
|
|
|
|
|
|
Cabot Oil & Gas Corp.
|
|
|
330,000
|
|
|
|
7,180,800
|
|
Cenovus Energy, Inc.(c)
|
|
|
370,268
|
|
|
|
3,724,896
|
|
Exxon Mobil Corp.
|
|
|
128,092
|
|
|
|
7,534,372
|
|
Phillips 66
|
|
|
58,500
|
|
|
|
4,096,755
|
|
See Notes to Schedule of Investments.
|
|
8
|
www.all-starfunds.com
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels (continued)
|
|
|
|
|
|
|
Royal Dutch Shell PLC, Class A(b)
|
|
|
91,039
|
|
|
$
|
4,057,608
|
|
|
|
|
|
|
|
|
26,594,431
|
|
FINANCIALS (16.91%)
|
|
|
|
|
|
|
|
|
Banks (4.90%)
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
|
|
136,340
|
|
|
|
5,787,633
|
|
Citigroup, Inc.
|
|
|
212,596
|
|
|
|
14,919,987
|
|
Commerce Bancshares, Inc.
|
|
|
67,200
|
|
|
|
4,682,496
|
|
Cullen/Frost Bankers, Inc.
|
|
|
53,320
|
|
|
|
6,324,819
|
|
East West Bancorp, Inc.
|
|
|
46,300
|
|
|
|
3,590,102
|
|
JPMorgan Chase & Co.
|
|
|
131,458
|
|
|
|
21,518,360
|
|
Mitsubishi UFJ Financial Group, Inc.(b)(c)
|
|
|
650,000
|
|
|
|
3,854,500
|
|
PNC Financial Services Group, Inc.
|
|
|
44,200
|
|
|
|
8,647,288
|
|
Wells Fargo & Co.
|
|
|
374,483
|
|
|
|
17,379,756
|
|
|
|
|
|
|
|
|
86,704,941
|
|
Capital Markets (3.89%)
|
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc.
|
|
|
33,200
|
|
|
|
8,768,784
|
|
Charles Schwab Corp.
|
|
|
299,700
|
|
|
|
21,830,148
|
|
Goldman Sachs Group, Inc.
|
|
|
18,928
|
|
|
|
7,155,352
|
|
MSCI, Inc.
|
|
|
17,689
|
|
|
|
10,760,926
|
|
Northern Trust Corp.
|
|
|
87,915
|
|
|
|
9,478,116
|
|
S&P Global, Inc.
|
|
|
12,133
|
|
|
|
5,155,190
|
|
UBS Group AG
|
|
|
361,404
|
|
|
|
5,760,780
|
|
|
|
|
|
|
|
|
68,909,296
|
|
Consumer Finance (1.76%)
|
|
|
|
|
|
|
|
|
American Express Co.
|
|
|
58,083
|
|
|
|
9,730,645
|
|
Capital One Financial Corp.
|
|
|
132,686
|
|
|
|
21,491,152
|
|
|
|
|
|
|
|
|
31,221,797
|
|
Diversified Financial Services (2.28%)
|
|
|
|
|
|
|
|
|
Berkshire Hathaway, Inc., Class B(a)
|
|
|
83,925
|
|
|
|
22,906,490
|
|
Equitable Holdings, Inc.
|
|
|
371,413
|
|
|
|
11,008,681
|
|
Voya Financial, Inc.
|
|
|
105,990
|
|
|
|
6,506,726
|
|
|
|
|
|
|
|
|
40,421,897
|
|
Insurance (4.08%)
|
|
|
|
|
|
|
|
|
American International Group, Inc.
|
|
|
333,319
|
|
|
|
18,295,880
|
|
Arch Capital Group, Ltd.(a)
|
|
|
130,403
|
|
|
|
4,978,786
|
|
Axis Capital Holdings, Ltd.
|
|
|
171,252
|
|
|
|
7,884,442
|
|
Chubb, Ltd.
|
|
|
76,610
|
|
|
|
13,290,303
|
|
Cincinnati Financial Corp.
|
|
|
71,000
|
|
|
|
8,109,620
|
|
MetLife, Inc.
|
|
|
177,166
|
|
|
|
10,936,457
|
|
Progressive Corp.
|
|
|
96,553
|
|
|
|
8,727,426
|
|
|
|
|
|
|
|
|
72,222,914
|
|
See Notes to Schedule of Investments.
|
|
Third Quarter Report (Unaudited) | September 30, 2021
|
9
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
HEALTH CARE (14.12%)
|
|
|
|
|
|
|
Biotechnology (1.00%)
|
|
|
|
|
|
|
Amgen, Inc.
|
|
|
35,800
|
|
|
$
|
7,612,870
|
|
Regeneron Pharmaceuticals, Inc.(a)
|
|
|
16,714
|
|
|
|
10,114,979
|
|
|
|
|
|
|
|
|
17,727,849
|
|
Health Care Equipment & Supplies (6.06%)
|
|
|
|
|
|
|
|
|
Abbott Laboratories
|
|
|
85,740
|
|
|
|
10,128,466
|
|
Alcon, Inc.
|
|
|
96,800
|
|
|
|
7,789,496
|
|
Align Technology, Inc.(a)
|
|
|
18,146
|
|
|
|
12,074,893
|
|
Boston Scientific Corp.(a)
|
|
|
140,697
|
|
|
|
6,104,843
|
|
Danaher Corp.
|
|
|
92,804
|
|
|
|
28,253,250
|
|
Dexcom, Inc.(a)
|
|
|
16,311
|
|
|
|
8,919,833
|
|
Intuitive Surgical, Inc.(a)
|
|
|
7,027
|
|
|
|
6,985,892
|
|
Koninklijke Philips NV
|
|
|
245,352
|
|
|
|
10,903,449
|
|
Medtronic PLC
|
|
|
70,000
|
|
|
|
8,774,500
|
|
Smith & Nephew PLC(b)
|
|
|
215,082
|
|
|
|
7,385,916
|
|
|
|
|
|
|
|
|
107,320,538
|
|
Health Care Providers & Services (3.97%)
|
|
|
|
|
|
|
|
|
Cardinal Health, Inc.
|
|
|
64,689
|
|
|
|
3,199,518
|
|
Fresenius Medical Care AG & Co. KGaA(b)
|
|
|
425,150
|
|
|
|
14,867,495
|
|
McKesson Corp.
|
|
|
37,804
|
|
|
|
7,537,362
|
|
Quest Diagnostics, Inc.
|
|
|
107,710
|
|
|
|
15,651,340
|
|
UnitedHealth Group, Inc.
|
|
|
73,968
|
|
|
|
28,902,256
|
|
|
|
|
|
|
|
|
70,157,971
|
|
Life Sciences Tools & Services (1.60%)
|
|
|
|
|
|
|
|
|
Illumina, Inc.(a)
|
|
|
22,204
|
|
|
|
9,006,164
|
|
IQVIA Holdings, Inc.(a)
|
|
|
33,261
|
|
|
|
7,967,340
|
|
Thermo Fisher Scientific, Inc.
|
|
|
19,859
|
|
|
|
11,346,043
|
|
|
|
|
|
|
|
|
28,319,547
|
|
Pharmaceuticals (1.49%)
|
|
|
|
|
|
|
|
|
Elanco Animal Health, Inc.(a)
|
|
|
209,500
|
|
|
|
6,680,955
|
|
Novartis AG(b)
|
|
|
68,000
|
|
|
|
5,561,040
|
|
Pfizer, Inc.
|
|
|
95,506
|
|
|
|
4,107,713
|
|
Zoetis, Inc.
|
|
|
51,750
|
|
|
|
10,046,745
|
|
|
|
|
|
|
|
|
26,396,453
|
|
INDUSTRIALS (9.19%)
|
|
|
|
|
|
|
|
|
Aerospace & Defense (0.69%)
|
|
|
|
|
|
|
|
|
General Dynamics Corp.
|
|
|
34,000
|
|
|
|
6,665,020
|
|
Textron, Inc.
|
|
|
78,387
|
|
|
|
5,472,196
|
|
|
|
|
|
|
|
|
12,137,216
|
|
See Notes to Schedule of Investments.
|
10
|
www.all-starfunds.com
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
Air Freight & Logistics (0.23%)
|
|
|
|
|
|
|
Expeditors International of Washington, Inc.
|
|
|
33,928
|
|
|
$
|
4,041,843
|
|
|
|
|
|
|
|
|
|
|
Building Products (1.46%)
|
|
|
|
|
|
|
|
|
Johnson Controls International PLC
|
|
|
137,800
|
|
|
|
9,381,424
|
|
Masco Corp.
|
|
|
295,064
|
|
|
|
16,390,805
|
|
|
|
|
|
|
|
|
25,772,229
|
|
Commercial Services & Supplies (0.32%)
|
|
|
|
|
|
|
|
|
Waste Connections, Inc.
|
|
|
45,050
|
|
|
|
5,673,147
|
|
|
|
|
|
|
|
|
|
|
Electrical Equipment (0.61%)
|
|
|
|
|
|
|
|
|
Eaton Corp. PLC
|
|
|
41,679
|
|
|
|
6,223,091
|
|
Emerson Electric Co.
|
|
|
49,580
|
|
|
|
4,670,436
|
|
|
|
|
|
|
|
|
10,893,527
|
|
Industrial Conglomerates (1.52%)
|
|
|
|
|
|
|
|
|
General Electric Co.
|
|
|
178,705
|
|
|
|
18,411,976
|
|
Honeywell International, Inc.
|
|
|
40,100
|
|
|
|
8,512,428
|
|
|
|
|
|
|
|
|
26,924,404
|
|
Machinery (2.74%)
|
|
|
|
|
|
|
|
|
Dover Corp.
|
|
|
48,926
|
|
|
|
7,607,993
|
|
PACCAR, Inc.
|
|
|
121,153
|
|
|
|
9,561,395
|
|
Parker-Hannifin Corp.
|
|
|
32,000
|
|
|
|
8,947,840
|
|
Wabtec Corp.
|
|
|
152,075
|
|
|
|
13,110,386
|
|
Xylem, Inc.
|
|
|
75,100
|
|
|
|
9,288,368
|
|
|
|
|
|
|
|
|
48,515,982
|
|
Professional Services (1.62%)
|
|
|
|
|
|
|
|
|
IHS Markit, Ltd.
|
|
|
173,925
|
|
|
|
20,283,133
|
|
TransUnion
|
|
|
75,400
|
|
|
|
8,468,174
|
|
|
|
|
|
|
|
|
28,751,307
|
|
INFORMATION TECHNOLOGY (21.50%)
|
|
|
|
|
|
|
|
|
IT Services (7.01%)
|
|
|
|
|
|
|
|
|
Amdocs, Ltd.
|
|
|
122,515
|
|
|
|
9,275,611
|
|
Cognizant Technology Solutions Corp., Class A
|
|
|
170,692
|
|
|
|
12,667,053
|
|
FleetCor Technologies, Inc.(a)
|
|
|
43,873
|
|
|
|
11,462,699
|
|
Mastercard, Inc., Class A
|
|
|
26,896
|
|
|
|
9,351,201
|
|
PayPal Holdings, Inc.(a)
|
|
|
154,590
|
|
|
|
40,225,864
|
|
Snowflake, Inc., Class A(a)
|
|
|
15,403
|
|
|
|
4,658,329
|
|
Twilio, Inc., Class A(a)
|
|
|
15,194
|
|
|
|
4,847,646
|
|
Visa, Inc., Class A
|
|
|
141,813
|
|
|
|
31,588,846
|
|
|
|
|
|
|
|
|
124,077,249
|
|
See Notes to Schedule of Investments.
|
Third Quarter Report (Unaudited) | September 30, 2021
|
11
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
Semiconductors & Semiconductor Equipment (3.19%)
|
|
|
|
|
|
|
ASML Holding N.V.
|
|
|
12,944
|
|
|
$
|
9,644,704
|
|
Microchip Technology, Inc.
|
|
|
65,800
|
|
|
|
10,099,642
|
|
Micron Technology, Inc.
|
|
|
133,675
|
|
|
|
9,488,251
|
|
NVIDIA Corp.
|
|
|
88,368
|
|
|
|
18,306,315
|
|
QUALCOMM, Inc.
|
|
|
70,000
|
|
|
|
9,028,600
|
|
|
|
|
|
|
|
|
56,567,512
|
|
Software (10.80%)
|
|
|
|
|
|
|
|
|
Adobe, Inc.(a)
|
|
|
62,501
|
|
|
|
35,983,076
|
|
ANSYS, Inc.(a)
|
|
|
33,000
|
|
|
|
11,234,850
|
|
Autodesk, Inc.(a)
|
|
|
45,157
|
|
|
|
12,877,422
|
|
Intuit, Inc.
|
|
|
23,101
|
|
|
|
12,463,221
|
|
Microsoft Corp.
|
|
|
109,858
|
|
|
|
30,971,167
|
|
RingCentral, Inc., Class A(a)
|
|
|
41,982
|
|
|
|
9,131,085
|
|
salesforce.com, Inc.(a)
|
|
|
116,212
|
|
|
|
31,519,019
|
|
ServiceNow, Inc.(a)
|
|
|
33,997
|
|
|
|
21,155,313
|
|
Splunk, Inc.(a)
|
|
|
19,537
|
|
|
|
2,827,199
|
|
Trade Desk, Inc., Class A(a)
|
|
|
130,901
|
|
|
|
9,202,340
|
|
Workday, Inc., Class A(a)
|
|
|
55,505
|
|
|
|
13,870,144
|
|
|
|
|
|
|
|
|
191,234,836
|
|
Technology Hardware, Storage & Peripherals (0.50%)
|
|
|
|
|
|
|
|
|
Hewlett Packard Enterprise Co.
|
|
|
616,587
|
|
|
|
8,786,365
|
|
|
|
|
|
|
|
|
|
|
MATERIALS (3.94%)
|
|
|
|
|
|
|
|
|
Chemicals (2.78%)
|
|
|
|
|
|
|
|
|
Corteva, Inc.
|
|
|
225,000
|
|
|
|
9,468,000
|
|
Dow Chemical Co.
|
|
|
158,435
|
|
|
|
9,119,518
|
|
Ecolab, Inc.
|
|
|
41,172
|
|
|
|
8,589,303
|
|
Linde PLC
|
|
|
23,473
|
|
|
|
6,886,509
|
|
PPG Industries, Inc.
|
|
|
62,350
|
|
|
|
8,916,673
|
|
RPM International, Inc.
|
|
|
80,000
|
|
|
|
6,212,000
|
|
|
|
|
|
|
|
|
49,192,003
|
|
Construction Materials (0.47%)
|
|
|
|
|
|
|
|
|
Martin Marietta Materials, Inc.
|
|
|
24,600
|
|
|
|
8,405,328
|
|
|
|
|
|
|
|
|
|
|
Containers & Packaging (0.69%)
|
|
|
|
|
|
|
|
|
Ball Corp.
|
|
|
134,750
|
|
|
|
12,123,458
|
|
|
|
|
|
|
|
|
|
|
REAL ESTATE (2.63%)
|
|
|
|
|
|
|
|
|
Equity Real Estate Investment Trusts (REITs) (2.63%)
|
|
|
|
|
|
|
|
|
American Tower Corp.
|
|
|
50,800
|
|
|
|
13,482,828
|
|
Crown Castle International Corp.
|
|
|
51,200
|
|
|
|
8,873,984
|
|
See Notes to Schedule of Investments.
|
|
12
|
www.all-starfunds.com
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS (continued)
|
|
|
|
|
|
|
Equity Real Estate Investment Trusts (REITs) (continued)
|
|
|
|
|
|
|
Equinix, Inc.
|
|
|
20,022
|
|
|
$
|
15,819,983
|
|
Equity LifeStyle Properties, Inc.
|
|
|
52,600
|
|
|
|
4,108,060
|
|
Sun Communities, Inc.
|
|
|
23,200
|
|
|
|
4,294,320
|
|
|
|
|
|
|
|
|
46,579,175
|
|
UTILITIES (1.49%)
|
|
|
|
|
|
|
|
|
Electric Utilities (1.49%)
|
|
|
|
|
|
|
|
|
Edison International
|
|
|
226,635
|
|
|
|
12,571,444
|
|
NRG Energy, Inc.
|
|
|
339,121
|
|
|
|
13,846,310
|
|
|
|
|
|
|
|
|
26,417,754
|
|
TOTAL COMMON STOCKS
|
|
|
|
|
|
|
|
|
(COST OF $1,153,738,259)
|
|
|
|
|
|
|
1,730,013,192
|
|
|
|
|
|
|
|
|
|
|
SHORT TERM INVESTMENTS (2.68%)
|
|
|
|
|
|
|
|
|
MONEY MARKET FUND (2.32%)
|
|
|
|
|
|
|
|
|
State Street Institutional US Government Money Market Fund, 0.03%(d)
|
|
|
|
|
|
|
|
|
(COST OF $40,890,743)
|
|
|
40,890,743
|
|
|
|
40,890,743
|
|
|
|
|
|
|
|
|
|
|
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED (0.36%)
|
|
|
|
|
|
|
|
|
State Street Navigator Securities Lending Government Money Market Portfolio, 0.03%
|
|
|
|
|
|
|
|
|
(COST OF $6,401,225)
|
|
|
6,401,225
|
|
|
|
6,401,225
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHORT TERM INVESTMENTS
|
|
|
|
|
|
|
|
|
(COST OF $47,291,968)
|
|
|
|
|
|
|
47,291,968
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS (100.39%)
|
|
|
|
|
|
|
|
|
(COST OF $1,201,030,227)
|
|
|
|
|
|
|
1,777,305,160
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.39%)
|
|
|
|
|
|
|
(6,830,151
|
)
|
|
|
|
|
|
|
|
|
|
NET ASSETS (100.00%)
|
|
|
|
|
|
$
|
1,770,475,009
|
|
|
|
|
|
|
|
|
|
|
NET ASSET VALUE PER SHARE
|
|
|
|
|
|
|
|
|
(223,839,318 SHARES OUTSTANDING)
|
|
|
|
|
|
$
|
7.91
|
|
See Notes to Schedule of Investments.
|
Third Quarter Report (Unaudited) | September 30, 2021
|
13
|
Liberty All-Star® Equity Fund
|
Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
|
(a)
|
Non-income producing security.
|
|
(b)
|
American Depositary Receipt.
|
|
(c)
|
Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $7,325,625.
|
|
(d)
|
Rate reflects seven-day effective yield on September 30, 2021.
|
See Notes to Schedule of Investments.
|
14
|
www.all-starfunds.com
|
Liberty All-Star® Equity Fund
|
Notes to Schedule of Investments
|
|
September 30, 2021 (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, 2021, 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.
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.
|
|
Third Quarter Report
(Unaudited) | September 30, 2021
|
15
|
Liberty All-Star® Equity Fund
|
Notes to Schedule of Investments
|
|
September 30, 2021 (Unaudited)
|
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, 2021:
Market Value of Securities on Loan
|
Cash Collateral Received
|
Non-Cash Collateral Received
|
Total Collateral Received
|
$ 7,325,625
|
$ 6,401,225
|
$1,283,400
|
$ 7,684,625
|
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, 2021 (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, 2021:
|
|
Valuation Inputs
|
|
|
|
|
Investments in Securities at Value
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Common Stocks*
|
|
$
|
1,730,013,192
|
|
|
$
|
–
|
|
|
$
|
–
|
|
|
$
|
1,730,013,192
|
|
Short Term Investments
|
|
|
47,291,968
|
|
|
|
–
|
|
|
|
–
|
|
|
|
47,291,968
|
|
Total
|
|
$
|
1,777,305,160
|
|
|
$
|
–
|
|
|
$
|
–
|
|
|
$
|
1,777,305,160
|
|
|
*
|
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.
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.
|
|
Third Quarter Report
(Unaudited) | September 30, 2021
|
17
|
Liberty All-Star® Equity Fund
|
Description
of Lipper Benchmark and Market Indices
|
|
September 30, 2021 (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 3000® Growth Index
Measures the performance of those Russell
3000® companies with lower book-to-price ratios and higher growth values. The Russell 3000® Index
measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately
98% of the investable U.S. equity market.
Russell 3000® Value Index
Measures the performance of those Russell
3000® companies with higher book-to-price ratios and lower growth values.
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.
|
|
|
|
|
|
|
|
|
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
|
and Treasurer
|
|
|
Sareena Khwaja-Dixon, Secretary
|
|
|
Jennifer Craig, Assistant Secretary^
|
|
INVESTOR ASSISTANCE,
|
Matthew Sutula, Chief Compliance Officer
|
|
TRANSFER & DIVIDEND
|
|
|
DISBURSING AGENT & REGISTRAR
|
* Member of the Audit Committee
|
|
Computershare Trust Company, N.A.
|
^ Through September 23, 2021
|
|
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.
|
|
|
|
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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