ALPS Advisors offers investors a choice of two closed-end, exchange-traded equity funds: the Liberty All-Star® Equity Fund and the Liberty All-Star® Growth Fund. Both funds are listed on the New York Stock Exchange and trade like any exchange-listed stock. The price of a share is determined by supply and demand and pricing is continuous—not just end-of-day, as is the case with open-end mutual funds. And, while many exchange-traded funds are passive investments whose return is based on an index, the All-Star Funds are actively managed.
The two funds follow different investment strategies, but they pursue the same investment goals: to deliver consistent performance and above average returns relative to comparable funds. In addition to the potential for capital appreciation, both funds historically have provided a reliable distribution stream through a quarterly distribution policy.
The All-Star Equity Fund (symbol: USA), established in 1986, is designed to be a core equity holding. The Fund provides investors with access to five investment managers practicing the two primary investment styles: value and growth. The Fund’s assets are equally allocated to three value managers and two growth managers. Typically, value style managers focus on companies with attractive prospects that trade at comparatively low multiples of earnings, sales and book value. Growth style managers generally focus on companies with high expected sales and earnings growth that are leaders in expanding sectors of the economy. Because investor sentiment shifts between value and growth, the All-Star team’s skill in blending the two styles in a single portfolio can reduce volatility and enhance consistency of returns over time.
The All-Star Growth Fund (symbol: ASG), established as a multi-managed fund in 1995, is a domestic growth equity fund that divides its assets equally among three investment managers. While all the managers practice the growth style of investing, each is selected for its particular investment strategy and capitalization focus: small-cap, mid-cap and large-cap.
The Liberty All-Star Equity Fund blends three value style investment managers and two growth style investment managers to form a core equity fund of mid- to large capitalization companies.
The Liberty All-Star Growth Fund blends three growth style investment managers diversified by capitalization range, providing growth investors with exposure to the entire capitalization spectrum of growth companies.