The current policy is to pay distributions on its shares totaling approximately 6 percent of its net asset value per year, payable in four quarterly installments of 1.5% 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. The fixed distributions are not related to the amount of the Fund's net investment income or net realized capital gains or losses and may be taxed as ordinary income up to the amount of the Fund's current and accumulated earnings and profits. If, for any calendar year, the total distributions made under the distribution policy exceed the Fund's net investment income and net realized capital gains, the excess will generally be treated as a non-taxable return of capital, reducing the shareholder's adjusted basis in his or her shares. If the Fund's net investment income and net realized capital gains for any year exceed the amount distributed under the distribution policy, the Fund may, in its discretion, retain and not distribute net realized capital gains and pay income tax thereon to the extent of such excess.
The Liberty All-Star Equity Fund and Liberty All-Star Growth Fund, Inc. are both closed-end funds. What does that mean?
A closed-end fund is one that has a fixed number of shares, which are bought and sold on a stock exchange through a broker or other financial intermediary. By contrast, most mutual funds are "open-ended" funds that continually offer new shares to investors and redeem shares when requested by the investor. The All-Star Funds are listed on the New York Stock Exchange, (Liberty All-Star Equity Fund's ticker symbol is USA and Liberty All-Star Growth Fund's ticker symbol is ASG). The Funds are priced just like any other stock traded on an exchange - that is, by the supply and demand for the stock. Open-ended mutual funds are not traded on stock exchanges; rather, purchases and redemptions are transacted at the net asset value by the fund sponsor.
For more information on closed-end funds, you can download the informational brochure: "Understanding the Advantages of Closed-End Funds".
You would initially purchase shares through any financial services provider, such as a full service, online, or discount brokerage firm, that allows you to trade stocks. After your initial purchase, the shares may be transferred to the Funds' transfer agent, Computershare (1-800-542-3863). Once this is done, you may buy and sell shares directly through Computershare. When shares are registered with Computershare, shareholders are able to enroll in the Funds' Automatic Dividend Reinvestment and Direct Purchase Plan. This plan allows shareholders to reinvest the Funds' quarterly dividend payments and allows shareholders to purchase additional shares and sell existing shares.
The net asset value (NAV) of the All-Star Funds are updated daily on this Web site. You can find this information by clicking on our home page. You can also find the NAV using the symbol XUSAX for the All-Star Equity Fund and XASGX for the All-Star Growth Fund.
To make changes to your account, you need to contact the brokerage firm, bank, or other nominee your shares are registered with. If your shares are registered with the Funds' transfer agent, Computershare, you can contact them directly at 1-800-542-3863. You can also access your account information through Computershare's website.
Yes. When shares are registered with Computershare, shareholders are able to enroll in the Funds' Automatic Dividend Reinvestment and Direct Purchase Plan. This plan allows shareholders to reinvest the Funds' quarterly dividend payments and allows shareholders to purchase additional shares and sell existing shares. If your shares are registered with a brokerage firm, bank, or other nominee, you will need to contact that firm regarding reinvestment of your dividends through the Funds' Dividend Reinvestment Plan.
We are happy to furnish you with a complete literature packet, however, because both the Liberty All-Star Equity Fund (NYSE: USA ) and the Liberty All-Star Growth Fund (NYSE: ASG) are closed-end funds, they are not required to have a current prospectus. However, the literature in the packet will contain everything you need in order to help you make an informed decision about either, or both funds.
Liberty All-Star Equity Fund (ticker symbol: USA ) and Liberty All-Star Growth Fund (ticker symbol: ASG) both invest in a diversified portfolio of U.S. equity securities using multiple investment management firms. More detailed information may be obtained in the following ways:
1. Ordering literature under the "Mail Request" section.
2. Accessing annual and/or quarterly reports in the "Literature PDF" section.
3. Accessing the top 20 holdings with the "Monthly Update" link for each fund:
Yes. In the event that you did not find the information you need on our website, please call us at our toll free number 1-800-241-1850 and someone will be happy to assist you.
Tax information for each of the Fund's current year's distributions is not determined until after December 31st. You should receive a Form 1099-DIV by the end of January of the following year that will disclose the final tax information. The form will list the amount of your taxable and/or non-taxable distributions and will identify what portion of the distributions may qualify for the lower income tax rates resulting from The Jobs and Growth Tax Relief Reconciliation Act of 2003. Once the information is available you may find the tax information for the most recent year and previous years on this site in the "Dividend & Tax Information" section of each fund.