Liberty All-Star® Equity Fund Declares Distribution

Rhea-AI Summary

Liberty All-Star Equity Fund (NYSE: USA) has announced a quarterly distribution of $0.15 per share, payable on June 2, 2025, to shareholders of record on April 17, 2025. This distribution aligns with the Fund's policy of distributing approximately 10% of its net asset value annually, paid in four quarterly installments of 2.5%.

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 over $1.7 billion in net assets as of April 4, 2025. Trading on the NYSE under symbol USA, the Fund operates in the secondary market rather than continuously issuing shares.

Positive

• Consistent quarterly dividend distribution maintained at 10% annual rate
• Substantial assets under management of $1.7 billion
• Flexible distribution option allowing shareholders to choose between shares and cash

Negative

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

Insights

Investment Income Analyst

Liberty All-Star Equity Fund (NYSE: USA) has declared its quarterly distribution of $0.15 per share, payable June 2 to shareholders of record April 17. This maintains the fund's policy of distributing approximately 10% of NAV annually through four quarterly payments of 2.5% each.

The distribution mechanics include an important detail for shareholders: payment will be in newly issued shares by default, with cash payments available only to those who specifically opt out of the Dividend Reinvestment Plan. Shares will be issued at the lower of May 16's NAV or market value (but not below 95% of market value).

This distribution structure helps the $1.7 billion closed-end fund maintain its asset base while providing regular income to shareholders. The fund's approach of potentially sourcing distributions from various pools (net income, short/long-term capital gains, return of capital) gives it flexibility in maintaining the 10% distribution target, though the exact tax characterization won't be determined until year-end.

For income-focused investors, this consistent distribution policy provides predictability, though it's worth understanding that closed-end funds trading on exchanges can see market prices diverge from NAV, potentially affecting the actual yield based on current market price.

BOSTON, April 7, 2025 /PRNewswire/ -- The Board of Trustees of Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.15 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 10 percent of its net asset value per year, payable in four quarterly installments of 2.5 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 Equity 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 USA. ALPS Advisors, Inc. is the investment advisor of the Fund, a multi-managed, closed-end investment company with more than $1.7 billion 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.

LAS001300

For Information Contact:

Liberty All-Star^® Equity Fund
1-800-241-1850
www.all-starfunds.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/liberty-all-star-equity-fund-declares-distribution-302422172.html

SOURCE Liberty All-Star Equity Fund

FAQ

What is the dividend amount and payment date for Liberty All-Star Equity Fund (USA)?

$0.15 per share, payable on June 2, 2025, to shareholders of record as of April 17, 2025

How much is Liberty All-Star Equity Fund's (USA) annual distribution policy?

Approximately 10% of net asset value per year, paid in four quarterly installments of 2.5%

What are Liberty All-Star Equity Fund's (USA) total net assets as of April 2025?

Over $1.7 billion in net assets as of April 4, 2025

How does Liberty All-Star Equity Fund (USA) distribute dividends to shareholders?

Distributions are paid in newly issued shares, except for shareholders not in the Dividend Reinvestment Plan who can elect cash payments