Liberty All-Star® Growth Fund, Inc. Declares Distribution

Rhea-AI Summary

Liberty All-Star Growth Fund (NYSE: ASG) has announced a quarterly distribution of $0.10 per share, payable on June 2, 2025, to shareholders of record on April 17, 2025. This distribution aligns with the Fund's policy of paying approximately 8% of net asset value annually, distributed in four quarterly installments of 2%.

The distribution will be paid in newly issued shares, except for shareholders not participating in the Dividend Reinvestment Plan who elect cash payments. Shares will be issued at the lower of the May 16, 2025 net asset value or market value, but not below 95% of market value.

The Fund, managed by ALPS Advisors, Inc., is a closed-end investment company with net assets exceeding $297 million as of April 4, 2025. Trading on the NYSE under symbol ASG, the Fund operates in the secondary market rather than continuously issuing shares.

Positive

• Consistent 8% annual distribution policy maintained
• Substantial asset base of $297 million
• Flexible payment options offering both share reinvestment and cash distributions

Negative

• Distribution may include return of capital, not just net income
• Share issuance for distributions could lead to dilution

Insights

Financial Analyst

Liberty All-Star Growth Fund's quarterly distribution announcement of $0.10 per share maintains its established policy of returning approximately 8% of NAV annually to shareholders, divided into four quarterly installments. While this provides income predictability, investors should note this is essentially a routine maintenance of existing policy rather than a positive catalyst.

The distribution mechanics offer nuanced considerations. Shareholders can receive cash or newly issued shares through the Dividend Reinvestment Plan. These shares are priced at the lower of May 16 NAV or market value (with a 95% of market value floor) - potentially creating minor value for reinvesting shareholders depending on the fund's premium/discount status.

Importantly, the announcement indicates portions of the distribution might derive from sources other than net income, including capital gains or return of capital. This distinction carries significant tax implications and potentially affects the fund's long-term distribution sustainability if substantial portions represent return of capital rather than genuine investment returns.

With $297 million in net assets, ASG continues operating as a substantial closed-end fund. However, without context regarding the fund's underlying performance or distribution coverage ratio, this announcement primarily signals continuity rather than strength or weakness in the fund's operations or strategy.

BOSTON, April 7, 2025 /PRNewswire/ -- The Board of Directors of Liberty All-Star Growth Fund, Inc. (NYSE: ASG) has declared a distribution of $0.10 per share payable on June 2, 2025 to shareholders of record on April 17, 2025. This distribution is in accordance with the Fund's current distribution policy of paying distributions on its shares totaling approximately 8 percent of its net asset value per year, payable in four quarterly installments of 2 percent. A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions in 2025 for tax reporting purposes, including the percentage of qualified dividend income, will be made after year-end.

The distribution will be paid in newly issued shares to all shareholders except those who are not participating in Liberty All-Star Growth Fund's Dividend Reinvestment Plan and who elect to receive the distribution in cash. Shares will be issued at the lower of the May 16, 2025 net asset value per share or market value per share (but not less than 95% of market value). The market value of the Fund's shares for this purpose will be the last sales price on the New York Stock Exchange.

The Fund does not continuously issue shares and trades in the secondary market, investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value. The Fund's shares are listed on the New York Stock Exchange under the ticker symbol ASG. ALPS Advisors, Inc. is the investment advisor of the Fund, a multi-managed, closed-end investment company with more than $297 million in net assets as of April 4, 2025.

Past performance cannot predict future results.
An investment in the Fund involves risk, including loss of principal.
Secondary market support provided to the Fund by ALPS Fund Services, Inc.'s affiliate ALPS Portfolio Solutions Distributor, Inc., a FINRA Member. ALPS Fund Services, Inc., ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are affiliated entities.

LAS001299

For Information Contact:
Liberty All-Star® Growth Fund, Inc. 
1-800-241-1850
www.all-starfunds.com

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SOURCE Liberty All-Star Growth Fund, Inc.

FAQ

What is the latest dividend amount announced by Liberty All-Star Growth Fund (ASG)?

ASG announced a quarterly distribution of $0.10 per share, payable on June 2, 2025.

How does ASG's dividend reinvestment plan work for the June 2025 distribution?

Shareholders receive newly issued shares unless they opt out of the Dividend Reinvestment Plan and elect cash payments. Shares are issued at the lower of May 16 NAV or market value (minimum 95% of market value).

What is Liberty All-Star Growth Fund's (ASG) current distribution policy?

ASG pays approximately 8% of net asset value annually, distributed in four quarterly installments of 2% each.

What are ASG's total net assets as of April 2025?

The Fund reported net assets of more than $297 million as of April 4, 2025.

When is the record date for ASG's latest dividend distribution?

The record date for ASG's distribution is April 17, 2025.