Liberty All-Star® Equity Fund Declares Distribution

Rhea-AI Summary

Liberty All-Star Equity Fund (NYSE: USA) has announced a $0.17 per share distribution payable on March 10, 2025, to shareholders of record on January 24, 2025. This aligns with the Fund's policy of distributing approximately 10% of its net asset value annually 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 February 21, 2025 net asset value or market value, but not below 95% of market value.

The Fund, with over $1.9 billion in net assets as of January 10, 2025, is a closed-end investment company managed by ALPS Advisors, Inc. Trading on the NYSE under symbol USA, the Fund does not continuously issue shares and operates in the secondary market through intermediaries.

Positive

• Maintains consistent 10% annual distribution policy
• Substantial asset base of $1.9 billion
• Offers dividend reinvestment option for shareholders

Negative

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

Insights

Financial Analyst

Liberty All-Star Equity Fund's latest quarterly distribution announcement of $0.17 per share represents a key component of their 10% annual NAV distribution policy. With current net assets of $1.9 billion, this distribution strategy provides shareholders with consistent income while maintaining the fund's capital base. The payment structure, offering either cash or reinvested shares at a favorable pricing mechanism (the lower of NAV or 95% of market value), demonstrates thoughtful shareholder consideration.

The distribution's flexibility in sourcing from various capital pools (including potential return of capital) provides tax efficiency opportunities, though investors should note this may impact their cost basis calculations. The fund's closed-end structure, trading on secondary markets, creates opportunities for tactical investors to potentially purchase shares at discounts to NAV, adding another layer of value proposition beyond the distribution yield.

Investment Portfolio Strategist

The quarterly payout mechanism reveals sophisticated portfolio management, particularly in maintaining the 2.5% quarterly distribution rate while preserving long-term sustainability. The ability to issue new shares for distributions rather than purely cash payments helps minimize portfolio disruption from liquidation pressures. This approach is especially relevant in the current market environment where maintaining steady distributions without excessive portfolio turnover is crucial.

The $1.9 billion asset base provides sufficient scale for efficient operations while allowing flexibility in investment selection. The multi-manager approach suggests robust diversification benefits, though investors should monitor the fund's trading discount/premium to NAV as this affects total return potential beyond the distribution yield.

BOSTON, Jan. 13, 2025 /PRNewswire/ -- The Board of Trustees of Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.17 per share payable on March 10, 2025 to shareholders of record on January 24, 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 February 21, 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 $1.9 billion in net assets as of January 10, 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.

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

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SOURCE Liberty All-Star Equity Fund

FAQ

What is the latest distribution amount declared by Liberty All-Star Equity Fund (USA)?

Liberty All-Star Equity Fund (USA) declared a distribution of $0.17 per share, payable on March 10, 2025.

When is the record date for USA's Q1 2025 distribution?

The record date for the distribution is January 24, 2025.

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

The Fund's policy is to pay distributions totaling approximately 10% of its net asset value per year, distributed in four quarterly installments of 2.5%.

How will USA's distribution be paid to shareholders?

The distribution will be paid in newly issued shares, except for shareholders not participating in the Dividend Reinvestment Plan who elect to receive cash.

What was USA's net asset value as of January 2025?

The Fund reported net assets of more than $1.9 billion as of January 10, 2025.