Liberty All-Star® Equity Fund Declares Distribution

The Liberty All-Star® Equity Fund (NYSE: USA) has announced a distribution of $0.18 per share, set to be paid on September 2, 2025, to shareholders recorded on July 18, 2025. This distribution aligns with the Fund's policy of returning approximately 10% of its net asset value annually, distributed quarterly in installments of 2.5%. It's important for shareholders to note that a portion of this payout may originate from sources beyond net income, such as short-term and long-term capital gains or return of capital. The precise classification of these distributions for tax purposes will be finalized at the end of the year.

Shareholders can expect to receive their distributions in newly issued shares unless they are opting out of the Dividend Reinvestment Plan and choose to receive cash. Shares will be priced based on the lower of the net asset value per share as of August 15, 2025, or the market value, ensuring it reflects at least 95% of the market value.

As a closed-end investment company with a significant sum of over $2.1 billion in net assets as of July 3, 2025, the Fund does not continuously offer shares but is traded on the secondary market. Investors need to place orders through intermediaries or brokers, with share prices driven by market value.

It’s crucial for potential investors to recognize that investments in the Fund carry risks, including the possibility of losing principal. The Fund's investment advisory is managed by ALPS Advisors, Inc., which, along with its affiliates, provides additional financial services. For more information, investors can visit www.all-starfunds.com or reach out to the Fund directly.

The recent announcement by the Liberty All-Star® Equity Fund (NYSE: USA) regarding its distribution of $0.18 per share highlights an essential aspect of the Fund’s ongoing strategy. This scheduled distribution aligns with the Fund's policy of regular payouts, reflecting approximately 10% of its net asset value annually, paid quarterly. Shareholders will receive these distributions in cash or as newly issued shares, depending on their participation in the Dividend Reinvestment Plan.

Investors should recognize that a portion of the distribution may derive from sources beyond net income. Specifically, it might include short-term and long-term capital gains as well as returns of capital. This elucidation emphasizes the importance of conducting thorough tax planning, as the final sourcing will only be disclosed at the end of the year for tax reporting purposes.

Given the Fund's position as a multi-managed, closed-end investment vehicle with over $2.1 billion in net assets, it provides unique exposure to diversified equities, capable of yielding consistent returns. However, it is crucial for potential investors to consider the associated risks, including the potential loss of principal, particularly as market perceptions often influence share price, which may trade at a premium or discount to its net asset value.

Investors considering entering positions should remain vigilant of the secondary market dynamics, as shares are not continuously issued but traded on the NYSE. The market's liquidity can fluctuate, potentially impacting the share price relative to NAV.

In summary, while the upcoming distribution underscores the Fund's commitment to yield generation, potential investors should evaluate both the risk profile and market conditions before making decisions. Continuous monitoring of market trends and the Fund's performance will be essential for optimizing investment outcomes.