Liberty All-Star® Equity Fund Declares Distribution

Rhea-AI Summary

Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.17 per share payable on March 4, 2024 to shareholders of record on January 19, 2024. The distribution policy pays approximately 10% of its net asset value per year, in four quarterly installments of 2.5%. A portion may be treated as paid from sources other than net income. The distribution will be paid in newly issued shares to all shareholders except those not participating in the Dividend Reinvestment Plan and who elect to receive the distribution in cash.

Insights

Financial Analyst

The declaration of a $0.17 per share distribution by Liberty All-Star Equity Fund (USA) reflects a 10 percent annual distribution policy, which is significant for income-focused investors. The distribution, payable in March, is structured to provide quarterly installments, aligning with investor expectations for consistent income streams. The option for shareholders to receive distributions in newly issued shares or cash provides flexibility and could potentially dilute existing share value, though the impact is mitigated by the provision that shares will be issued at no less than 95% of market value.

Investors should note the mix of income sources for the distribution, including capital gains and return of capital, which can affect the tax treatment of the distributions received. The tax implications are crucial for assessing the true net benefit of the distributions. Additionally, the closed-end fund structure means share prices can deviate from the net asset value, introducing a layer of price volatility that does not exist with open-end mutual funds.

Market Research Analyst

Liberty All-Star Equity Fund's performance and distribution policy could influence investor perception in the closed-end fund market. The fund's net asset value of more than $1.8 billion as of early January indicates a sizable market presence. Given that shares are not continuously issued and trade on the secondary market, the fund's announcement may affect its market liquidity and share price, especially around the ex-dividend date. The involvement of ALPS Advisors as the investment advisor and the support from affiliated entities such as ALPS Portfolio Solutions Distributor, Inc. suggests a robust backing, which may reassure investors about the fund's management and secondary market support.

Economist

The distribution policy of Liberty All-Star Equity Fund may have broader economic implications. A steady 10 percent annual distribution can be indicative of the fund's confidence in its investment strategy and asset management. However, investors must consider the economic context, such as interest rate trends and market cycles, which can impact the fund's underlying assets and consequently its ability to maintain such distributions. The payout strategy, particularly when it includes returns of capital, may also reflect on the fund's earnings and capital growth prospects. Prolonged periods of capital return distributions could signal a potential challenge in generating sufficient investment income or realized capital gains.

BOSTON, Jan. 8, 2024 /PRNewswire/ -- The Board of Trustees of Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.17 per share payable on March 4, 2024 to shareholders of record on January 19, 2024 (ex-dividend date of January 18, 2024). This distribution is in accordance with the Fund's current distribution policy of paying distributions on its shares totaling approximately 10 percent of its net asset value per year, payable in four quarterly installments of 2.5 percent. A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions in 2024 for tax reporting purposes, including the percentage of qualified dividend income, will be made after year-end.

The distribution will be paid in newly issued shares to all shareholders except those who are not participating in Liberty All-Star Equity Fund's Dividend Reinvestment Plan and who elect to receive the distribution in cash. Shares will be issued at the lower of the February 16, 2024 net asset value per share or market value per share (but not less than 95% of market value). The market value of the Fund's shares for this purpose will be the last sales price on the New York Stock Exchange.

The Fund does not continuously issue shares and trades in the secondary market, investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value. The Fund's shares are listed on the New York Stock Exchange under the ticker symbol USA. ALPS Advisors, Inc. is the investment advisor of the Fund, a multi-managed, closed-end investment company with more than $1.8 billion in net assets as of January 5, 2024.

Past performance cannot predict future results.
An investment in the Fund involves risk, including loss of principal.
Secondary market support provided to the Fund by ALPS Fund Services, Inc.'s affiliate ALPS Portfolio Solutions Distributor, Inc., a FINRA Member. ALPS Fund Services, Inc., ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are affiliated entities.

For Information Contact:
Liberty All-Star^® Equity Fund
1-800-241-1850
www.all-starfunds.com

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SOURCE Liberty All-Star Funds

FAQ

What is the distribution amount declared by Liberty All-Star Equity Fund (USA) and when is it payable?

Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.17 per share payable on March 4, 2024.

What is the distribution policy of Liberty All-Star Equity Fund (USA)?

The distribution policy pays approximately 10% of its net asset value per year, in four quarterly installments of 2.5%.

How will the distribution be paid to shareholders of Liberty All-Star Equity Fund (USA)?

The distribution will be paid in newly issued shares to all shareholders except those not participating in the Dividend Reinvestment Plan and who elect to receive the distribution in cash.

What is the ticker symbol of Liberty All-Star Equity Fund?

The ticker symbol of Liberty All-Star Equity Fund is USA.