Liberty
All-Star® Equity Fund
Periods
Ended September 30, 2023 (Unaudited)
| Fund
Statistics |
|
| Net
Asset Value (NAV) |
$6.07 |
| Market
Price |
$5.92 |
| Discount |
-2.5% |
| |
Quarter |
Year-to-Date |
| Distributions* |
$0.16 |
$0.46 |
| Market
Price Trading Range |
$5.83
to $7.04 |
$5.72
to $7.04 |
| Premium/(Discount)
Range |
5.3%
to -5.7% |
5.3%
to -5.7% |
Performance
| Shares
Valued at NAV with Dividends Reinvested |
-3.02% |
10.75% |
| Shares
Valued at Market Price with Dividends Reinvested |
-6.15% |
11.81% |
| Dow
Jones Industrial Average |
-2.10% |
2.73% |
| Lipper
Large-Cap Core Mutual Fund Average |
-3.20% |
11.44% |
| NASDAQ
Composite Index |
-3.94% |
27.11% |
| S&P
500® Index |
-3.27% |
13.07% |
| * | | 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 2023 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 2023. |
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 20.
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 2023 |
Stocks’
struggles in the third quarter of 2023 can be attributed to inflation and interest rates. The Federal Reserve raised the federal funds
rate in late July for the 11th time since March 2022. While inflation had been drifting downward, consumer price increases remained above
the Fed’s 2 percent inflation target, prompting the July increase. The market took the hint that interest rates would not be coming
down as quickly as hoped and may go even higher if data compels the Fed to act.
In
this environment, U.S. Treasuries offered investors a competitive risk-adjusted alternative to stocks. The yield on benchmark 10-year
Treasuries rose to 4.55 percent during the quarter, the highest since 2007 (and up from 3.50 percent as recently as May). Bonds not only
siphoned money out of stocks, but the rising rates also renewed investor concerns over the potential for an economic recession. Thus,
stocks ended the quarter lower, with three key barometers posting negative returns: the S&P 500® Index, -3.27 percent;
the Dow Jones Industrial Average (DJIA), -2.10 percent; and the NASDAQ Composite Index, -3.94 percent. The quarter closed with stocks
suffering four straight losing weeks, the longest reversal of the year.
The
challenge of higher interest rates was compounded by a range of other concerns:
| ● | The
price of oil climbed to over $90 a barrel after Russia and Saudi Arabia agreed in August
to reduce output by 1.3 million barrels per day through December. In response, oil prices
scored their longest streak of daily gains in four years. |
| ● | The
potential for a shutdown of the federal government on October 1 put investors on watch as
September progressed. While a bipartisan agreement provided a temporary reprieve at the last
minute, it did not occur until markets had closed for the quarter. |
| ● | The
labor situation unsettled markets, as unions had begun to strike. It started with the Screen
Actors Guild strike in July. Then the “Big Three” domestic auto producers faced
an industry-wide strike by the United Auto Workers (UAW). On September 15, the union began
striking at one factory at each producer and signaled intentions to expand the strike to
more factories and warehouses. In its first two weeks the strike resulted in an estimated
$4 billion in economic losses. |
| ● | Markets
worldwide reflected worries over the global banking system and China’s troubled economy.
Investors were wary of China’s slowing growth, deflationary pressures and precarious
real estate market. |
While
the economy was strong enough to weather higher interest rates it was not so strong as to write off any fear of recession and that, too,
lingered as an unrealized threat. Signs of strength included unemployment at near record lows (the jobless rate declined to 3.5 percent),
retail sales holding their own and, on balance, inflation appearing to be cooling. But some industries encountered headwinds, housing
and manufacturing being two examples.
It
could be forgotten that the momentum of the first six months carried over into July, which saw the S&P 500® return
3.21 percent. In July, the Federal Reserve delivered its highly anticipated quarter-point increase in the federal funds rate, taking
it to the range of 5.25 percent to 5.50 percent, the highest in 22 years. But stocks shrugged it off. The Consumer Price Index (CPI)
rose 3.0 percent in June (reported in July) down from 9.1 percent from a year earlier. U.S. GDP was reported at an annualized rate of
2.4 percent in 2Q23, up from 2.0 percent in Q1. The surge in AI-related stocks drove the S&P 500® to its highest level
in 15 months. Consumer confidence rose to a two-year high.
| Third Quarter Report (Unaudited) | September 30, 2023 |
1 |
| Liberty
All-Star® Equity Fund |
President’s
Letter |
(Unaudited)
Investor
sentiment changed on the very first day of August when Fitch Ratings downgraded U.S. sovereign debt from AAA to AA+ in response to debt
in excess of $33 trillion, a situation compounded by political infighting over the budget and new government spending initiatives that
are expected to add to deficits in the future. Equity markets reacted by retrenching on August 2, as most indexes declined 1.0 percent
or more. Meanwhile, the CPI crept up 3.2 percent in July, breaking a string of monthly declines, and the Producer Price Index (PPI) rose
0.8 percent in July from July 2022 following a modest 0.1 percent year-over-year increase in June. The CPI held more disappointing news
as the August print showed the gauge rose 3.7 percent year over year, up from July’s inflation rate of 3.2 percent. In September,
the average 30-year fixed mortgage reached 7.31 percent, the highest level in nearly 23 years. Bottom line for investors: the S&P
500® returned -1.59 percent in August accelerating to -4.77 percent in September. The technology-oriented NASDAQ Composite
returned -2.05 percent and -5.77 percent, respectively, for the two months.
Value
stocks reversed their position from the first half of the year as laggards relative to growth stocks by narrowly outperforming in the
third quarter. The broad market Russell 3000® Value Index returned -3.15 percent versus -3.34 percent for its growth counterpart.
That difference, just 19 basis points, compares to a gap of 844 basis points in favor of growth stocks in the second quarter. In the
rising rate environment, investors punished growth stocks for their valuations and perceived vulnerability to higher borrowing costs.
Liberty
All-Star® Equity Fund
On
an absolute return basis, Liberty All-Star Equity Fund had negative results in the third quarter. Relative to key benchmarks, results
were modestly positive when shares are valued at net asset value (NAV) with dividends reinvested, as the Fund’s NAV returned -3.02
percent with dividends reinvested for the quarter. Shares returned -6.15 percent when valued at market price with dividends reinvested.
(Fund returns are net of expenses).
The
NAV return of -3.02 percent was better than that of the Fund’s primary benchmark, the Lipper Large-Cap Core Mutual Fund Average,
which returned -3.20 percent. The Fund also fared better than the previously mentioned returns for the S&P 500® and
the NASDAQ Composite but was just below the DJIA. The Fund’s market price return of -6.15 percent lagged all relevant benchmarks,
however.
Through
nine months this year the Fund’s market price return was modestly ahead of the Lipper benchmark while its NAV return was slightly
lower. Fund returns were well ahead of the DJIA but behind the S&P 500® and NASDAQ Composite.
For
the quarter, only two of 11 S&P sectors—energy and communication services—delivered positive returns, but the Fund had
an underweight allocation to each. The Fund’s underweight to information technology and overweight to financials were the largest
positive contributors to performance. Stock selection was positive overall, with information technology being the largest contributor.
The Fund’s underweight to seven mega-cap stocks1, often referred to as the “magnificent seven”, that have
been driving returns this year helped in the third quarter, as higher interest rates weighed on these stocks. Year to date through nine
months, however, the underweight cost the Fund 6.4 percent in return relative to the S&P 500®.
| 1 | | Those stocks are
Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla. |
| Liberty
All-Star® Equity Fund |
President’s
Letter |
(Unaudited)
During
the third quarter the discount range for many closed-end funds widened owing to the heightened downside volatility. That was true for
the Fund as well. The range over which Fund shares traded relative to their underlying NAV ranged from a premium of 5.3 percent to a
discount of -5.7 percent. This compares with a 1.3 percent premium ranging to a discount of -1.8 percent in the second quarter.
In
accordance with the Fund’s distribution policy, the Fund paid a distribution of $0.16 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 $30.14 per share for a total of more than $3.6 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.
While
stocks took a turn downward in the last two months of the third quarter, strong returns through the first seven months of 2023 kept many
benchmarks—as well as Liberty All-Star Equity Fund—in positive returns by double-digits through September. We can hope the
Federal Reserve is nearing the end of its rising rate regime, but there are many forces at work shaping the near-term direction of the
stock market. As always, we will diligently monitor the broader investment environment. At the same time, however, we will keep our primary
focus on the long term, recognizing that short-term volatility is a distraction but vision, discipline and experience are the enduring
foundation of a sound stock portfolio.
Sincerely,
Mark
T. Haley, CFA
President
Liberty
All-Star® Equity Fund
The
views expressed in the President’s letter reflect the views of the President as of October 2023 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.
| Third Quarter Report (Unaudited) | September 30, 2023 |
3 |
| Liberty
All-Star® Equity Fund |
Table
of Distributions,
Rights Offerings and Tax Credits |
(Unaudited)
| Year |
Per
Share
Distributions |
Rights Offerings |
Tax
Credits1 |
| Month
Completed |
Shares
Needed to Purchase
One Additional Share |
Subscription
Price |
| 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 |
0.81 |
November |
102 |
7.78 |
|
| 2022 |
0.69 |
|
|
|
|
2023
1st
Quarter
2nd Quarter
3rd Quarter |
0.15
0.15
0.16 |
|
|
|
|
| Total |
$30.14 |
|
|
|
|
| 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. |
| Liberty
All-Star® Equity Fund |
Investment
Managers/
Portfolio Characteristics |
(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, 2023 (Unaudited)
Investment
Style Spectrum
| |
Value |
|
|
|
Growth |
|
|
| |
 |
|
|
| |
PZENA |
FIDUCIARY |
ARISTOTLE |
SUSTAINABLE |
TCW |
TOTAL
FUND |
S&P
500®
INDEX |
| Number
of Holdings |
38 |
30 |
42 |
28 |
32 |
147* |
503 |
| Percent
of Holdings in Top 10 |
41% |
48% |
33% |
47% |
55% |
22% |
31% |
| Weighted
Average Market Capitalization (billions) |
$70 |
$202 |
$181 |
$429 |
$571 |
$296 |
$633 |
| Average
Five-Year Earnings Per Share Growth |
8% |
7% |
16% |
16% |
16% |
13% |
18% |
| Dividend
Yield |
2.6% |
1.3% |
2.1% |
0.7% |
0.5% |
1.4% |
1.6% |
| Price/Earnings
Ratio** |
14x |
19x |
18x |
33x |
42x |
22x |
22x |
| Price/Book
Value Ratio |
1.4x |
3.2x |
2.8x |
6.0x |
5.4x |
2.9x |
3.8x |
| * | | Certain
holdings are held by more than one manager. |
| ** | | Excludes
negative earnings. |
| Third Quarter Report (Unaudited) | September 30, 2023 |
5 |
| Liberty
All-Star® Equity Fund |
Top 20 Holdings & Economic Sectors |
September
30, 2023 (Unaudited)
| Top
20 Holdings* |
Percent
of Net Assets |
| Microsoft
Corp. |
3.46% |
| Alphabet,
Inc. |
3.25 |
| UnitedHealth
Group, Inc. |
2.53 |
| Amazon.com,
Inc. |
2.39 |
| NVIDIA
Corp. |
2.29 |
| Visa,
Inc. |
2.08 |
| ServiceNow,
Inc. |
1.93 |
| S&P
Global, Inc. |
1.61 |
| Danaher
Corp. |
1.37 |
| Sony
Group Corp. |
1.33 |
| Adobe,
Inc. |
1.30 |
| Booking
Holdings, Inc. |
1.25 |
| Salesforce,
Inc. |
1.16 |
| Charles
Schwab Corp. |
1.14 |
| Capital
One Financial Corp. |
1.14 |
| Ecolab,
Inc. |
1.12 |
| Fresenius
Medical Care AG & Co. KGaA |
1.11 |
| Autodesk,
Inc. |
1.06 |
| Ferguson
PLC |
1.02 |
| Berkshire
Hathaway, Inc. |
0.99 |
| |
33.53% |
| Economic
Sectors* |
Percent
of Net Assets |
| Financials |
20.86% |
| Information
Technology |
20.40 |
| Health
Care |
13.99 |
| Consumer
Discretionary |
12.35 |
| Industrials |
7.68 |
| Communication
Services |
5.63 |
| Materials |
5.61 |
| Consumer
Staples |
4.54 |
| Energy |
2.45 |
| Real
Estate |
1.84 |
| Utilities |
1.41 |
| Other
Net Assets |
3.24 |
| |
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. |
| Liberty
All-Star® Equity Fund |
Stock
Changes in the Quarter
and Distribution Policy |
(Unaudited)
The
following are the largest ($5 million or more) stock changes - both purchases and sales - that were made in the Fund’s portfolio
during the third quarter of 2023.
| Security
Name |
Shares |
| Purchases
(Sales) |
Held
as of 9/30/23 |
| Purchases |
|
|
Baxter
International, Inc. |
198,892 |
198,892 |
| Canadian
Pacific Kansas City, Ltd. |
134,874 |
134,874 |
| Gartner,
Inc. |
16,088 |
16,088 |
| Global
Payments, Inc. |
54,153 |
54,153 |
| Palo
Alto Networks, Inc. |
29,129 |
29,129 |
| Teledyne
Technologies, Inc. |
18,026 |
18,026 |
| Tyson
Foods, Inc. |
123,530 |
123,530 |
| U.S.
Bancorp |
174,729 |
204,301 |
| Sales |
|
|
Activision Blizzard, Inc. |
(91,000) |
0 |
| Adobe,
Inc. |
(17,001) |
42,421 |
| Axis
Capital Holdings, Ltd. |
(129,401) |
0 |
| Cincinnati
Financial Corp. |
(57,489) |
0 |
| Intuitive
Surgical, Inc. |
(18,370) |
24,264 |
| Mohawk
Industries, Inc. |
(67,297) |
0 |
| TransUnion |
(74,151) |
0 |
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 2023 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, 2023 |
7 |
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES |
| |
VALUE |
|
| COMMON STOCKS (96.76%) | |
| | | |
| | |
| COMMUNICATION SERVICES (5.63%) | |
| | | |
| | |
| Entertainment (0.76%) | |
| | | |
| | |
| Netflix, Inc.(a) | |
| 25,035 | | |
$ | 9,453,216 | |
| Walt Disney Co.(a) | |
| 40,170 | | |
| 3,255,778 | |
| | |
| | | |
| 12,708,994 | |
| Interactive Media & Services (3.25%) | |
| | | |
| | |
| Alphabet,
Inc., Class A(a) | |
| 134,470 | | |
| 17,596,744 | |
| Alphabet,
Inc., Class C(a) | |
| 276,184 | | |
| 36,414,861 | |
| | |
| | | |
| 54,011,605 | |
| Media (1.62%) | |
| | | |
| | |
| Charter
Communications, Inc., Class A(a) | |
| 22,843 | | |
| 10,046,808 | |
| Omnicom Group, Inc. | |
| 115,075 | | |
| 8,570,786 | |
| Trade
Desk, Inc., Class A(a) | |
| 105,216 | | |
| 8,222,631 | |
| | |
| | | |
| 26,840,225 | |
| CONSUMER DISCRETIONARY (12.35%) | |
| | | |
| | |
| Automobile Components (1.90%) | |
| | | |
| | |
| Cie Generale des Etablissements Michelin SCA(b)(c) | |
| 420,100 | | |
| 6,402,324 | |
| Lear Corp. | |
| 109,726 | | |
| 14,725,229 | |
| Magna
International, Inc., Class A(c) | |
| 194,419 | | |
| 10,422,803 | |
| | |
| | | |
| 31,550,356 | |
| Broadline Retail (2.39%) | |
| | | |
| | |
| Amazon.com, Inc.(a) | |
| 312,436 | | |
| 39,716,864 | |
| | |
| | | |
| | |
| Hotels, Restaurants & Leisure (2.58%) | |
| | | |
| | |
| Booking Holdings, Inc.(a) | |
| 6,734 | | |
| 20,767,319 | |
| Starbucks Corp. | |
| 109,542 | | |
| 9,997,899 | |
| Yum! Brands, Inc. | |
| 96,347 | | |
| 12,037,594 | |
| | |
| | | |
| 42,802,812 | |
| Household Durables (2.36%) | |
| | | |
| | |
| Lennar Corp., Class A | |
| 89,000 | | |
| 9,988,470 | |
| Newell Brands, Inc. | |
| 783,352 | | |
| 7,073,669 | |
| Sony Group Corp.(b)(c) | |
| 268,330 | | |
| 22,113,075 | |
| | |
| | | |
| 39,175,214 | |
| Specialty Retail (1.70%) | |
| | | |
| | |
| CarMax, Inc.(a) | |
| 142,513 | | |
| 10,079,944 | |
| Home Depot, Inc. | |
| 27,375 | | |
| 8,271,630 | |
| TJX Cos., Inc. | |
| 48,411 | | |
| 4,302,770 | |
| Ulta Beauty, Inc.(a) | |
| 14,155 | | |
| 5,654,215 | |
| | |
| | | |
| 28,308,559 | |
See
Notes to Schedule of Investments.
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES | | |
VALUE | |
| COMMON STOCKS (continued) | |
| | | |
| | |
| Textiles, Apparel & Luxury Goods (1.42%) | |
| | | |
| | |
| Gildan Activewear, Inc.(c) | |
| 322,869 | | |
$ | 9,043,561 | |
| NIKE, Inc., Class B | |
| 72,716 | | |
| 6,953,104 | |
| PVH Corp. | |
| 77,568 | | |
| 5,934,727 | |
| Skechers
U.S.A., Inc., Class A(a) | |
| 34,199 | | |
| 1,674,041 | |
| | |
| | | |
| 23,605,433 | |
| CONSUMER STAPLES (4.54%) | |
| | | |
| | |
| Beverages (0.85%) | |
| | | |
| | |
| Coca-Cola Co. | |
| 132,500 | | |
| 7,417,350 | |
| Constellation Brands, Inc., Class A | |
| 26,700 | | |
| 6,710,511 | |
| | |
| | | |
| 14,127,861 | |
| Consumer Staples Distribution & Retail (1.82%) | |
| | | |
| | |
| Costco Wholesale Corp. | |
| 20,719 | | |
| 11,705,406 | |
| Dollar Tree, Inc.(a) | |
| 74,772 | | |
| 7,959,480 | |
| SYSCO Corp. | |
| 159,323 | | |
| 10,523,284 | |
| | |
| | | |
| 30,188,170 | |
| Food Products (0.37%) | |
| | | |
| | |
| Tyson Foods, Inc., Class A | |
| 123,530 | | |
| 6,237,030 | |
| | |
| | | |
| | |
| Household Products (0.43%) | |
| | | |
| | |
| Procter & Gamble Co. | |
| 49,400 | | |
| 7,205,484 | |
| | |
| | | |
| | |
| Multiline Retail (0.51%) | |
| | | |
| | |
| Dollar General Corp. | |
| 79,742 | | |
| 8,436,704 | |
| | |
| | | |
| | |
| Personal Care Products (0.56%) | |
| | | |
| | |
| Unilever PLC(b) | |
| 187,331 | | |
| 9,254,151 | |
| | |
| | | |
| | |
ENERGY
(2.45%) | |
| | | |
| | |
| Energy Equipment & Services (1.00%) | |
| | | |
| | |
| Halliburton Co. | |
| 76,599 | | |
| 3,102,259 | |
| NOV, Inc. | |
| 316,776 | | |
| 6,620,618 | |
| Schlumberger NV | |
| 116,865 | | |
| 6,813,230 | |
| | |
| | | |
| 16,536,107 | |
| Oil, Gas & Consumable Fuels (1.45%) | |
| | | |
| | |
| Coterra Energy, Inc. | |
| 300,600 | | |
| 8,131,230 | |
| Phillips 66 | |
| 61,100 | | |
| 7,341,165 | |
| Shell PLC(b) | |
| 134,846 | | |
| 8,681,386 | |
| | |
| | | |
| 24,153,781 | |
See
Notes to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2023 |
9 |
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES | | |
VALUE | |
| COMMON STOCKS (continued) | |
| | | |
| | |
| FINANCIALS (20.86%) | |
| | | |
| | |
| Banks (4.38%) | |
| | | |
| | |
| Bank of America Corp. | |
| 343,426 | | |
$ | 9,403,004 | |
| Citigroup, Inc. | |
| 311,076 | | |
| 12,794,556 | |
| Commerce Bancshares, Inc. | |
| 73,710 | | |
| 3,536,606 | |
| Cullen/Frost Bankers, Inc. | |
| 52,400 | | |
| 4,779,404 | |
| JPMorgan Chase & Co. | |
| 69,655 | | |
| 10,101,368 | |
| Mitsubishi UFJ Financial Group, Inc.(b)(c) | |
| 613,500 | | |
| 5,208,615 | |
| PNC Financial Services Group, Inc. | |
| 45,800 | | |
| 5,622,866 | |
| U.S. Bancorp | |
| 204,301 | | |
| 6,754,191 | |
| Wells Fargo & Co. | |
| 357,023 | | |
| 14,587,960 | |
| | |
| | | |
| 72,788,570 | |
| Capital Markets (6.05%) | |
| | | |
| | |
| Ameriprise Financial, Inc. | |
| 28,600 | | |
| 9,428,848 | |
| BlackRock, Inc. | |
| 9,656 | | |
| 6,242,508 | |
| Blackstone Group LP | |
| 70,600 | | |
| 7,564,084 | |
| Charles Schwab Corp. | |
| 344,521 | | |
| 18,914,203 | |
| Goldman Sachs Group, Inc. | |
| 16,458 | | |
| 5,325,315 | |
| MSCI, Inc. | |
| 23,530 | | |
| 12,072,772 | |
| Northern Trust Corp. | |
| 119,642 | | |
| 8,312,726 | |
| S&P Global, Inc. | |
| 73,225 | | |
| 26,757,147 | |
| UBS Group AG | |
| 242,844 | | |
| 5,986,105 | |
| | |
| | | |
| 100,603,708 | |
| Consumer Finance (1.61%) | |
| | | |
| | |
| American Express Co. | |
| 52,531 | | |
| 7,837,100 | |
| Capital One Financial Corp. | |
| 194,392 | | |
| 18,865,743 | |
| | |
| | | |
| 26,702,843 | |
| Financial Services (5.93%) | |
| | | |
| | |
| Berkshire
Hathaway, Inc., Class B(a) | |
| 46,789 | | |
| 16,390,187 | |
| Equitable Holdings, Inc. | |
| 371,413 | | |
| 10,544,415 | |
| FleetCor Technologies, Inc.(a) | |
| 33,067 | | |
| 8,443,328 | |
| Global Payments, Inc. | |
| 54,153 | | |
| 6,248,714 | |
| Mastercard, Inc., Class A | |
| 32,723 | | |
| 12,955,363 | |
| PayPal Holdings, Inc.(a) | |
| 55,445 | | |
| 3,241,315 | |
| Visa, Inc., Class A | |
| 150,142 | | |
| 34,534,161 | |
| Voya Financial, Inc. | |
| 92,584 | | |
| 6,152,207 | |
| | |
| | | |
| 98,509,690 | |
| Insurance (2.89%) | |
| | | |
| | |
| American International Group, Inc. | |
| 85,780 | | |
| 5,198,268 | |
| Aon PLC, Class A | |
| 42,427 | | |
| 13,755,682 | |
| Arch Capital Group, Ltd.(a) | |
| 98,389 | | |
| 7,842,587 | |
| MetLife, Inc. | |
| 205,815 | | |
| 12,947,822 | |
See
Notes to Schedule of Investments.
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES | | |
VALUE | |
| COMMON STOCKS (continued) | |
| | | |
| | |
| Insurance (continued) | |
| | | |
| | |
| Progressive Corp. | |
| 60,112 | | |
$ | 8,373,601 | |
| | |
| | | |
| 48,117,960 | |
| HEALTH CARE (13.99%) | |
| | | |
| | |
| Biotechnology (1.15%) | |
| | | |
| | |
| Amgen, Inc. | |
| 33,500 | | |
| 9,003,460 | |
| Regeneron Pharmaceuticals, Inc.(a) | |
| 12,214 | | |
| 10,051,633 | |
| | |
| | | |
| 19,055,093 | |
| Health Care Equipment & Supplies (4.14%) | |
| | | |
| | |
| Alcon, Inc. | |
| 95,200 | | |
| 7,336,112 | |
| Align Technology, Inc.(a) | |
| 13,452 | | |
| 4,107,165 | |
| Baxter International, Inc. | |
| 198,892 | | |
| 7,506,184 | |
| Boston Scientific Corp.(a) | |
| 159,769 | | |
| 8,435,803 | |
| Dexcom, Inc.(a) | |
| 72,142 | | |
| 6,730,849 | |
| Intuitive Surgical, Inc.(a) | |
| 24,264 | | |
| 7,092,125 | |
| Koninklijke Philips NV(c) | |
| 405,046 | | |
| 8,076,617 | |
| Medtronic PLC | |
| 161,322 | | |
| 12,641,192 | |
| Smith & Nephew PLC(b) | |
| 278,538 | | |
| 6,899,386 | |
| | |
| | | |
| 68,825,433 | |
| Health Care Providers & Services (3.91%) | |
| | | |
| | |
| Cardinal Health, Inc. | |
| 52,166 | | |
| 4,529,052 | |
| Fresenius Medical Care AG & Co. KGaA(b) | |
| 854,142 | | |
| 18,398,219 | |
| UnitedHealth Group, Inc. | |
| 83,429 | | |
| 42,064,067 | |
| | |
| | | |
| 64,991,338 | |
| Life Sciences Tools & Services (3.04%) | |
| | | |
| | |
| Danaher Corp. | |
| 91,513 | | |
| 22,704,375 | |
| IQVIA Holdings, Inc.(a) | |
| 82,427 | | |
| 16,217,512 | |
| Thermo Fisher Scientific, Inc. | |
| 22,908 | | |
| 11,595,343 | |
| | |
| | | |
| 50,517,230 | |
| Pharmaceuticals (1.75%) | |
| | | |
| | |
| Bristol-Myers Squibb Co. | |
| 137,360 | | |
| 7,972,374 | |
| Merck & Co., Inc. | |
| 78,500 | | |
| 8,081,575 | |
| Pfizer, Inc. | |
| 76,452 | | |
| 2,535,913 | |
| Zoetis, Inc. | |
| 60,774 | | |
| 10,573,461 | |
| | |
| | | |
| 29,163,323 | |
INDUSTRIALS
(7.68%) | |
| | | |
| | |
| Aerospace & Defense (0.39%) | |
| | | |
| | |
| General Dynamics Corp. | |
| 29,400 | | |
| 6,496,518 | |
| | |
| | | |
| | |
| Building Products (2.09%) | |
| | | |
| | |
| Carlisle Cos., Inc. | |
| 40,984 | | |
| 10,625,512 | |
See Notes
to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2023 |
11 |
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES | | |
VALUE | |
| COMMON STOCKS (continued) | |
| | | |
| | |
| Building Products (continued) | |
| | | |
| | |
| Carrier Global Corp. | |
| 218,598 | | |
$ | 12,066,610 | |
| Masco Corp. | |
| 225,229 | | |
| 12,038,490 | |
| | |
| | | |
| 34,730,612 | |
| Commercial Services & Supplies (0.41%) | |
| | | |
| | |
| Waste Connections, Inc. | |
| 51,189 | | |
| 6,874,683 | |
| | |
| | | |
| | |
| Electrical Equipment (0.28%) | |
| | | |
| | |
| Eaton Corp. PLC | |
| 21,476 | | |
| 4,580,401 | |
| | |
| | | |
| | |
| Ground Transportation (0.60%) | |
| | | |
| | |
| Canadian Pacific Kansas City, Ltd. | |
| 134,874 | | |
| 10,035,974 | |
| | |
| | | |
| 10,035,974 | |
| Industrial Conglomerates (0.94%) | |
| | | |
| | |
| General Electric Co. | |
| 75,902 | | |
| 8,390,966 | |
| Honeywell International, Inc. | |
| 39,000 | | |
| 7,204,860 | |
| | |
| | | |
| 15,595,826 | |
| Machinery (1.96%) | |
| | | |
| | |
| Oshkosh Corp. | |
| 49,700 | | |
| 4,742,871 | |
| Parker-Hannifin Corp. | |
| 28,900 | | |
| 11,257,128 | |
| Wabtec Corp. | |
| 92,513 | | |
| 9,831,357 | |
| Xylem, Inc. | |
| 73,400 | | |
| 6,681,602 | |
| | |
| | | |
| 32,512,958 | |
| Trading Companies & Distributors (1.01%) | |
| | | |
| | |
| Ferguson PLC | |
| 102,590 | | |
| 16,872,977 | |
| | |
| | | |
| | |
INFORMATION
TECHNOLOGY (20.40%) | |
| | | |
| | |
| Electronic Equipment & Instruments (0.38%) | |
| | | |
| | |
| TE Connectivity Ltd. | |
| 51,086 | | |
| 6,310,654 | |
| | |
| | | |
| | |
| Electronic Equipment, Instruments & Components (1.23%) | |
| | | |
| | |
| CDW Corp. | |
| 64,607 | | |
| 13,035,108 | |
| Teledyne Technologies, Inc.(a) | |
| 18,026 | | |
| 7,365,063 | |
| | |
| | | |
| 20,400,171 | |
| IT Services (1.64%) | |
| | | |
| | |
| Amdocs, Ltd. | |
| 67,795 | | |
| 5,727,999 | |
| Cognizant Technology Solutions Corp., Class A | |
| 183,958 | | |
| 12,461,315 | |
| Gartner, Inc.(a) | |
| 16,088 | | |
| 5,527,998 | |
| Snowflake,
Inc., Class A(a) | |
| 22,616 | | |
| 3,455,046 | |
| | |
| | | |
| 27,172,358 | |
See
Notes to Schedule of Investments.
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES | | |
VALUE | |
| COMMON STOCKS (continued) | |
| | | |
| | |
| Semiconductors & Semiconductor Equipment (4.79%) | |
| | | |
| | |
| ASML Holding N.V. | |
| 13,714 | | |
$ | 8,072,883 | |
| Enphase Energy, Inc.(a) | |
| 26,570 | | |
| 3,192,385 | |
| Microchip Technology, Inc. | |
| 121,800 | | |
| 9,506,490 | |
| Micron Technology, Inc. | |
| 197,465 | | |
| 13,433,544 | |
| NVIDIA Corp. | |
| 87,541 | | |
| 38,079,460 | |
| QUALCOMM, Inc. | |
| 66,400 | | |
| 7,374,384 | |
| | |
| | | |
| 79,659,146 | |
| Software (12.36%) | |
| | | |
| | |
| Adobe, Inc.(a) | |
| 42,421 | | |
| 21,630,468 | |
| ANSYS, Inc.(a) | |
| 31,000 | | |
| 9,224,050 | |
| Autodesk, Inc.(a) | |
| 84,854 | | |
| 17,557,141 | |
| Crowdstrike
Holdings, Inc., Class A(a) | |
| 48,759 | | |
| 8,161,281 | |
| Intuit, Inc. | |
| 19,951 | | |
| 10,193,764 | |
| Microsoft Corp. | |
| 181,873 | | |
| 57,426,400 | |
| Palo Alto Networks, Inc.(a) | |
| 29,129 | | |
| 6,829,003 | |
| Salesforce, Inc.(a) | |
| 95,292 | | |
| 19,323,312 | |
| SAP SE(b) | |
| 79,998 | | |
| 10,345,341 | |
| ServiceNow, Inc.(a) | |
| 57,357 | | |
| 32,060,269 | |
| Workday,
Inc., Class A(a) | |
| 59,048 | | |
| 12,686,463 | |
| | |
| | | |
| 205,437,492 | |
| MATERIALS (5.61%) | |
| | | |
| | |
| Chemicals (3.71%) | |
| | | |
| | |
| Corteva, Inc. | |
| 213,500 | | |
| 10,922,660 | |
| Dow, Inc. | |
| 299,505 | | |
| 15,442,478 | |
| Ecolab, Inc. | |
| 109,700 | | |
| 18,583,180 | |
| RPM International, Inc. | |
| 77,800 | | |
| 7,376,218 | |
| Sherwin-Williams Co. | |
| 36,371 | | |
| 9,276,423 | |
| | |
| | | |
| 61,600,959 | |
| Construction Materials (0.59%) | |
| | | |
| | |
| Martin Marietta Materials, Inc. | |
| 24,000 | | |
| 9,851,520 | |
| | |
| | | |
| | |
| Containers & Packaging (1.31%) | |
| | | |
| | |
| Avery Dennison Corp. | |
| 78,934 | | |
| 14,418,874 | |
| Ball Corp. | |
| 146,405 | | |
| 7,288,041 | |
| | |
| | | |
| 21,706,915 | |
REAL
ESTATE (1.84%) | |
| | | |
| | |
| Residential REITs (0.36%) | |
| | | |
| | |
| Equity LifeStyle Properties, Inc. | |
| 93,500 | | |
| 5,956,885 | |
See Notes
to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2023 |
13 |
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (Unaudited)
| | |
SHARES | | |
VALUE | |
| COMMON
STOCKS (continued) | |
| | | |
| | |
| Specialized
REITs (1.48%) | |
| | | |
| | |
| American
Tower Corp. | |
| 50,247 | | |
$ | 8,263,119 | |
| Crown
Castle, Inc. | |
| 50,600 | | |
| 4,656,718 | |
| Equinix,
Inc. | |
| 16,028 | | |
| 11,640,495 | |
| | |
| | | |
| 24,560,332 | |
| UTILITIES
(1.41%) | |
| | | |
| | |
| Electric
Utilities (0.95%) | |
| | | |
| | |
| Edison
International | |
| 143,112 | | |
| 9,057,559 | |
| Xcel
Energy, Inc. | |
| 118,000 | | |
| 6,751,960 | |
| | |
| | | |
| 15,809,519 | |
| Gas
Utilities (0.46%) | |
| | | |
| | |
| Atmos
Energy Corp. | |
| 72,300 | | |
| 7,658,739 | |
| | |
| | | |
| | |
| TOTAL
COMMON STOCKS | |
| | | |
| | |
| (COST
OF $1,410,840,715) | |
| | | |
| 1,607,959,177 | |
| | |
| | | |
| | |
| SHORT
TERM INVESTMENTS (4.81%) | |
| | | |
| | |
| MONEY
MARKET FUND (3.07%) | |
| | | |
| | |
| State
Street Institutional US Government Money Market Fund, 5.29%(d) | |
| | | |
| | |
| (COST
OF $51,047,461) | |
| 51,047,461 | | |
| 51,047,461 | |
| | |
| | | |
| | |
| INVESTMENTS
PURCHASED WITH COLLATERAL FROM | |
| | | |
| | |
| SECURITIES
LOANED (1.74%) | |
| | | |
| | |
| State
Street Navigator Securities Lending Government Money Market Portfolio, 5.36% | |
| | | |
| | |
| (COST
OF $28,959,271) | |
| 28,959,271 | | |
| 28,959,271 | |
| | |
| | | |
| | |
| TOTAL
SHORT TERM INVESTMENTS | |
| | | |
| | |
| (COST
OF $80,006,732) | |
| | | |
| 80,006,732 | |
| | |
| | | |
| | |
| TOTAL
INVESTMENTS (101.57%) | |
| | | |
| | |
| (COST
OF $1,490,847,447) | |
| | | |
| 1,687,965,909 | |
| | |
| | | |
| | |
| LIABILITIES
IN EXCESS OF OTHER ASSETS (-1.57%) | |
| | | |
| (26,152,727 | ) |
| | |
| | | |
| | |
| NET
ASSETS (100.00%) | |
| | | |
$ | 1,661,813,182 | |
| | |
| | | |
| | |
| NET
ASSET VALUE PER SHARE | |
| | | |
| | |
| (273,757,654
SHARES OUTSTANDING) | |
| | | |
$ | 6.07 | |
See Notes
to Schedule of Investments.
| Liberty
All-Star® Equity Fund |
Schedule of Investments |
September
30, 2023 (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 $38,075,916. |
| (d) | Rate
reflects seven-day effective yield on September 30, 2023. |
See
Notes to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2023 |
15 |
| Liberty
All-Star® Equity Fund |
Notes to Schedule of Investments |
September
30, 2023 (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 (“NAV”) 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”). The Board has designated ALPS Advisors,
Inc. (the “Advisor”) as the Fund’s Valuation Designee. The Valuation Designee is responsible for determining fair value
in good faith for all Fund investments, subject to oversight by 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 Advisor’s Valuation Committee using fair valuation
procedures established by the Valuation Designee. Examples of potentially significant events that could materially impact a Fund’s
NAV 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, 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, 2023, 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.
| Liberty
All-Star® Equity Fund |
Notes to Schedule of Investments |
September
30, 2023 (Unaudited)
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.
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, 2023:
Market
Value of
Securities
on Loan |
Cash
Collateral
Received |
Non-Cash
Collateral
Received |
Total
Collateral
Received |
| $38,075,916 |
$28,959,271 |
$10,204,418 |
$39,163,689 |
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.
| Third Quarter Report (Unaudited) | September 30, 2023 |
17 |
| Liberty
All-Star® Equity Fund |
Notes to Schedule of Investments |
September
30, 2023 (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 open-end mutual funds 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, 2023:
| | |
Valuation Inputs | | |
| |
| Investments in Securities at Value | |
| Level 1 | | |
| Level 2 | | |
| Level 3 | | |
| Total | |
| Common Stocks* | |
$ | 1,607,959,177 | | |
$ | – | | |
$ | – | | |
$ | 1,607,959,177 | |
| Short Term Investments | |
| 80,006,732 | | |
| – | | |
| – | | |
| 80,006,732 | |
| Total | |
$ | 1,687,965,909 | | |
$ | – | | |
$ | – | | |
$ | 1,687,965,909 | |
| * | | See
Schedule of Investments for industry classifications. |
The
Fund did not have any securities that used significant unobservable inputs (Level 3) in determining fair value during the period.
| Liberty
All-Star® Equity Fund |
Notes to Schedule of Investments |
September
30, 2023 (Unaudited)
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, 2023 |
19 |
| Liberty
All-Star® Equity Fund |
Description of Lipper Benchmark
and Market Indices |
(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 96% 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 represents approximately 80% of the total domestic U.S. equity
market capitalization.
An
investor cannot invest directly in an index.
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