Liberty All-Star(R) Equity Fund December 2015 Update

BOSTON, MA -- (Marketwired) -- 01/19/16 -- Below is the December 2015 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

Liberty All-Star Equity Fund                                  Monthly Update
Ticker: USA                                                   December, 2015


Investment Approach

Fund Style: Large-Cap Core

Fund Strategy: Combines three value-style and two growth-style
investment managers. Those selected demonstrate a consistent
investment philosophy, decision making process, continuity of key
people and above-average long-term results compared to managers
with similar styles.

Investment Managers:
Value Managers:
Aristotle Capital Management, LLC
Delaware Investments
Pzena Investment Management, LLC

Growth Managers:
Cornerstone Capital Management LLC
TCW Investment Management Company


Top 20 Holdings at Month-End
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   (27.6% of equity portfolio)
   (Rank from previous month)
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 1 Alphabet, Inc., Class A & C (1)                        2.7%
 2 Microsoft Corp. (2)                                    1.9%
 3 Amazon.com, Inc. (4)                                   1.8%
 4 Salesforce.com, Inc. (3)                               1.8%
 5 Facebook, Inc., Class A (5)                            1.8%
 6 The Home Depot, Inc. (24)                              1.7%
 7 Visa, Inc., Class A (10)                               1.3%
 8 Bank of America Corp. (34)                             1.3%
 9 Alexion Pharmaceuticals, Inc. (9)                      1.3%
10 Intel Corp. (11)                                       1.3%
11 ACE Ltd. (27)                                          1.3%
12 Mondelez International, Inc., Class A (83)             1.2%
13 JPMorgan Chase & Co. (7)                               1.2%
14 CVS Health Corp. (6)                                   1.1%
15 American Tower Corp. (22)                              1.0%
16 Archer-Daniels-Midland Co. (98)                        1.0%
17 Oracle Corp. (53)                                      1.0%
18 Baxalta, Inc. (31)                                     1.0%
19 The Coca-Cola Co. (26)                                 1.0%
20 The Charles Schwab Corp. (19)                          0.9%
----------------------------------------------------------------------------
   Holdings are subject to change.


Monthly Performance
----------------------------------------------------------------------------
Performance                                    NAV   Market Price  Discount
----------------------------------------------------------------------------
Beginning of month value                      $6.35      $5.40       15.0%
Distributions                                   -          -
End of month value                            $6.18      $5.35       13.4%
Performance for month                        -2.68%     -0.93%
Performance year-to-date                     -1.01%     -1.98%
----------------------------------------------------------------------------


The net asset value (NAV) of a closed-end fund is the market value of the
underlying investments (i.e., stocks and bonds) in the Fund's portfolio,
minus liabilities, divided by the total number of Fund shares outstanding.
However, the Fund also has a market price; the value at which it trades on
an exchange. If the market price is above the NAV the Fund is trading at a
premium. If the market price is below the NAV the Fund is trading at a
discount.

Performance returns for the Fund are total returns, which includes
dividends, and are net of management fees and other Fund expenses. The
Fund's performance is calculated assuming that a shareholder reinvested all
distributions. Past performance cannot predict future investment results.

Performance will fluctuate with changes in market conditions. Current
performance may be lower or higher than the performance data shown.
Performance information shown does not reflect the deduction of taxes that
shareholders would pay on Fund distributions or the sale of Fund shares.
Shareholders must be willing to tolerate significant fluctuations in the
value of their investment. An investment in the Fund involves risk,
including loss of principal.

Sources of distributions to shareholders may include ordinary dividends,
long-term capital gains and return of capital. 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. 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, available at
http://www.all-starfunds.com/. These estimates may not match the final
tax characterization (for the full year's distributions) contained in
shareholders' 1099-DIV forms after the end of the year.


Net Assets at Month-End ($millions)
----------------------------------------------------------------------------
Total                                       $1,136.6
Equities                                    $1,116.5
Percent Invested                            98.2%
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Sector Breakdown (% of equity portfolio)*
----------------------------------------------------------------------------
   Financials                                         20.7%
   Information Technology                             20.6%
   Health Care                                        17.0%
   Consumer Discretionary                             13.9%
   Consumer Staples                                   9.0%
   Industrials                                        7.3%
   Energy                                             6.9%
   Materials                                          1.8%
   Utilities                                          1.5%
   Telecommunication Services                         1.3%
   Total Market Value                                 100.0%
----------------------------------------------------------------------------

*Based on Standard & Poor's and MSCI Barra Global
Industry Classification Standard (GICS).

New Holdings**                         Holdings Liquidated**
-------------------------------------  -------------------------------------
Delta Air Lines, Inc.                  Baker Hughes, Inc.
NXP Semiconductors NV                  Polaris Industries, Inc.
Seagate Technology PLC


** Transactions resulting from the manager replacement of Matrix Asset
Advisors with Aristotle Capital Management, LLC as one of the Fund's five
portfolio managers effective December 14, 2015 are excluded from the New
Holdings and Holdings Liquidated.

Liberty All-Star Equity Fund
1-800-241-1850

Source: ALPS Advisors, Inc.

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