Large institutional investors have long employed an approach to investing known as “multi-management,” which is the practice of allocating portfolio assets among a group of carefully-selected, independent investment management firms. The two primary benefits of this approach are the pursuit of risk reduction through diversification and potentially greater consistency of returns through time.
This is the concept behind the Liberty All-Star® Funds: Enabling individual investors to access a portfolio of diversified, institutional-quality equity investment managers in support of their long-term investment objectives.
The Liberty All-Star® Equity Fund is a core equity holding that allocates its assets to three value style investment managers and two growth style investment managers. As is well known to professionals, market sentiment routinely rotates among these two principal investment styles as market and economic conditions change. At any point in time, one style is usually favored over the other. By allocating its assets to multiple managers representing both styles, the Fund seeks more consistent performance, which, over time, can produce better results than more volatile single-manager funds. Typically, value style managers focus on companies with attractive prospects but that trade at comparatively low multiples of earnings, revenue and book value. Growth style managers generally concentrate on companies with high expected sales and earnings growth that are leaders in expanding sectors of the economy.
The Liberty All-Star® Growth Fund follows a similar principle but with an exclusive focus on growth style investing. The Fund allocates its assets among three investment managers, each specializing in either large-cap, mid-cap or small-cap growth style equities, thus diversifying the Fund across the capitalization spectrum. The result is a high-quality, multi-cap growth holding for long-term investors.
ALPS Advisors serves as the Funds’ investment advisor—because even all-star investment managers need a steady hand at the helm to work as a team. ALPS Advisors rigorously researches, retains and combines investment managers with complementary styles. ALPS Advisors then continuously monitors the managers to ensure that they adhere to each Fund’s objective and are performing in line with expectations. ALPS Advisors also performs the all-important function of periodic rebalancing, a well-recognized investment discipline, to maintain the Funds’ structural integrity. Further, having an investment advisor select independent investment managers (as opposed to in-house entities) helps to ensure alignment with shareholders’ best interests. And both Funds are governed by a Board of Trustees/Directors elected by and responsible to shareholders.
Liberty All-Star® Equity Fund is multi-managed, an investment discipline that is followed by large institutional investors to diversify their portfolios. In 1986, Liberty All-Star® Equity Fund became the first closed-end fund to bring multi-management to individual investors.
Large institutional investors have traditionally employed multiple investment managers. With three investment managers investing across the full capitalization range of growth stocks, the Fund brings multi-management to individual investors.
The Fund has a fixed number of shares that trade on the New York Stock Exchange and other exchanges. Share pricing is continuous—not just end-of-day, as it is with open-end mutual funds. Fund shares offer immediate liquidity, there are no annual sales fees and can often be traded commission free.
The Fund has a fixed number of shares that trade on the New York Stock Exchange and other exchanges. Share pricing is continuous—not just end-of day, as it is with open-end mutual funds. Fund shares offer immediate liquidity, there are no annual sales fees and can often be traded commission free.
The Fund’s investment managers invest primarily for pension funds, endowments, foundations and other institutions. Because institutional managers are closely monitored by their clients, they tend to be more disciplined and consistent in their investment process.
The Fund’s investment managers invest primarily for pension funds, endowments, foundations and other institutions. Because institutional managers are closely monitored by their clients, they tend to be more disciplined and consistent in their investment process.
ALPS Advisors continuously monitors these investment managers to ensure that they are performing as expected and adhering to their style and strategy, and will replace managers when warranted. Periodic rebalancing maintains the Fund’s structural integrity and is a well-recognized investment discipline.
ALPS Advisors continuously monitors these investment managers to ensure that they are performing as expected and adhering to their style and strategy, and will replace the managers when warranted. Periodic rebalancing maintains the Fund’s structural integrity and is a well-recognized investment discipline.
Alignment with shareholders’ best interests and objective decision-making help to ensure that the Fund is managed openly and equitably. In addition, the Fund is governed by a Board of Trustees that is elected by and responsible to shareholders.
Alignment with shareholders’ best interests and objective decision-making help to ensure that the Fund is managed openly and equitably. In addition, the Fund is governed by a Board of Directors that is elected by and responsible to shareholders.
Since 1988, the Fund has followed a policy of paying annual distributions on its shares at a rate that approximates historical equity market returns. The current annual distribution rate is 10 percent of the Fund’s net asset value (paid quarterly at 2.5 percent per quarter), providing a systematic mechanism for distributing funds to shareholders.
Since 1997, the Fund has followed a policy of paying annual distributions on its shares at a rate that approximates historical equity market returns. The current annual distribution rate is 8 percent of the Fund’s net asset value (paid quarterly at 2 percent per quarter), providing a systematic mechanism for distributing funds to shareholders.
Seeks to own high quality, attractively valued companies that possess catalysts for positive change.
Seeks to invest in durable business franchises that are selling at low valuations and a significant discount to their intrinsic value.
Seeks to invest in companies with low price‐to‐normalized earnings ratios that have the ability to generate earnings recovery.
Seeks to invest in companies with predictable, sustainable earnings and cash flow growth over the long term.
Seeks to invest in companies that have superior sales growth, leading and/or rising market shares, and high and/or rising profit margins.
Seeks to invest in companies with enduring competitive advantages and high, sustainable earnings growth.
Seeks to invest in companies with improving fundamentals, emphasizing earnings growth consistency, free cash flow, and solid balance sheet metrics.
Seeks to invest in companies with predictable, sustainable earnings and cash flow growth over the long term.
