Liberty All-Star Equity Fund February 2024 Monthly Update
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Insights
The disclosed monthly performance data for the Liberty All-Star Equity Fund, with a net asset value (NAV) increase and a market price movement, provides a snapshot of the fund's health and trajectory. The fund's performance relative to its NAV is particularly noteworthy, as it indicates the market's valuation of the fund's assets compared to the fund's own accounting. A widening discount could signal investor concerns or a potential buying opportunity if the market underestimates the underlying value.
The sector breakdown reveals a strategic allocation with a strong emphasis on Information Technology and Financials, which aligns with broader market trends favoring these sectors. The addition and liquidation of holdings suggest active management in response to market conditions or a reevaluation of company prospects.
For stakeholders, the year-to-date performance figures are crucial, as they provide insights into the fund's short-term efficacy in capital growth. However, it's important to consider that past performance is not indicative of future results and the fund's volatility must be acknowledged as an inherent investment risk.
Understanding the top holdings of the Liberty All-Star Equity Fund is essential for assessing its potential risk and return profile. The concentration of investments in leading technology and healthcare companies, such as Microsoft and UnitedHealth Group, suggests exposure to sectors with high growth potential but also to industry-specific risks. The fund's diversification across various sectors, however, may mitigate systemic risks.
The fund's new holdings and liquidated positions indicate a strategic shift that could be based on macroeconomic factors, sector outlooks, or company-specific developments. Investors should monitor these changes as they may impact the fund's future performance.
Lastly, the fund's distribution sources, including ordinary dividends and potential return of capital, are a key consideration for investors seeking income, as well as for the tax implications of these distributions.
The Liberty All-Star Equity Fund's performance and investment approach can be reflective of broader economic conditions. A strong emphasis on large-cap core equities is a sign of confidence in established companies during uncertain economic times. The fund's active management style, involving both value and growth strategies, aims to capitalize on market inefficiencies and could be particularly effective in periods of economic volatility.
Investors should also consider the implications of the fund's sector allocations in the context of economic cycles. For instance, an overweight position in Information Technology and Financials might be advantageous during expansionary phases but could pose greater risks during economic downturns.
The fund's discount to NAV is also an important economic indicator, as it may reflect broader market sentiment and investor expectations regarding future economic and market conditions.
Liberty All-Star Equity Fund
Ticker: USA
Monthly Update, February, 2024
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
Fiduciary Management, Inc.
Pzena Investment Management, LLC
Growth Managers:
Sustainable Growth Advisers, LP
TCW Investment Management Company
Top 20 Holdings at Month-End | ||
( | ||
1 | Microsoft Corp. | 3.9 % |
2 | NVIDIA Corp. | 3.0 % |
3 | Alphabet, Inc. | 2.9 % |
4 | Amazon.com, Inc. | 2.8 % |
5 | UnitedHealth Group, Inc. | 2.1 % |
6 | Visa, Inc. | 2.1 % |
7 | ServiceNow, Inc. | 1.9 % |
8 | S&P Global, Inc. | 1.4 % |
9 | Salesforce, Inc. | 1.4 % |
10 | Danaher Corp. | 1.4 % |
11 | Charles Schwab Corp. | 1.3 % |
12 | Adobe, Inc. | 1.2 % |
13 | Capital One Financial Corp. | 1.2 % |
14 | Sony Group Corp. | 1.2 % |
15 | Ecolab, Inc. | 1.2 % |
16 | Ferguson PLC | 1.1 % |
17 | Autodesk, Inc. | 1.1 % |
18 | Dollar General Corp. | 1.1 % |
19 | Berkshire Hathaway, Inc. | 1.0 % |
20 | Wells Fargo & Co. | 0.9 % |
Holdings are subject to change. | ||
Monthly Performance: | |||
Performance | NAV | Market Price | Discount |
Beginning of month value | -1.9 % | ||
End of month value | -3.2 % | ||
Performance for month | 4.03 % | 2.74 % | |
Performance year-to-date | 5.91 % | 8.52 % | |
Net Assets at Month-End ($millions) | |
Total | |
Equities | |
Percent Invested | 97.9 % |
Sector Breakdown (% of equity portfolio)* | |
Information Technology | 21.5 % |
Financials | 21.3 % |
Health Care | 14.2 % |
Consumer Discretionary | 12.9 % |
Industrials | 8.0 % |
Communication Services | 6.0 % |
Materials | 5.8 % |
Consumer Staples | 5.3 % |
Energy | 1.9 % |
Real Estate | 1.8 % |
Utilities | 1.3 % |
Total Market Value | 100.0 % |
*Based on Standard & Poor's and MSCI Global Industry Classification Standard (GICS). | |
New Holdings
Lowe's Companies, Inc.
Meta Platforms, Inc.
TotalEnergies SE
Waste Management, Inc.
Holdings Liquidated
Cardinal Health, Inc.
General Electric Co.
Phillips 66
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. Returns are 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 final determination of the source of all distributions in 2024 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. 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.
All data is as of February 29, 2024 unless otherwise noted.
Liberty All-Star® Equity Fund
1-800-241-1850
www.all-starfunds.com
libinfo@alpsinc.com
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SOURCE Liberty All-Star Equity Fund
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