Liberty All-Star® Equity Fund Declares Distribution

Rhea-AI Summary

Liberty All-Star Equity Fund (USA) declares a distribution of $0.18 per share, following a 10% annual distribution policy. The distribution will be paid on June 3, 2024, to shareholders of record on April 19, 2024, with an ex-dividend date of April 18, 2024.

Insights

Financial Analyst

The declaration of a distribution of $0.18 per share by Liberty All-Star Equity Fund is a reflection of its commitment to a consistent distribution policy, aimed at returning value to shareholders. The policy of distributing approximately 10 percent of the fund's net asset value per year aligns with the interests of income-focused investors, particularly those seeking regular quarterly income streams. However, it's important to note that a part of the distribution might come from capital gains or return of capital, not just net income. This could influence the fund's future growth potential, as reinvesting these gains could otherwise contribute to compounded growth over time.

For investors, the tax implications of these distributions will be a point of consideration, as the final determination of the source will affect individual tax liabilities. The option for shareholders to receive distributions in newly issued shares or cash provides flexibility, but also implies a potential dilution of the value for existing shareholders not participating in the Dividend Reinvestment Plan. The issuance of shares at a minimum of 95% of market value is a safeguard against significant dilution.

The fund's structure as a closed-end fund that does not continuously issue shares and trades in the secondary market means that its share price is subject to market fluctuations and can trade at a premium or discount to net asset value. This characteristic is important for investors to understand when considering the liquidity and valuation of their investments.

Market Research Analyst

From a market perspective, the announcement by Liberty All-Star Equity Fund can impact investor sentiment towards the fund. The distribution policy reinforces the fund's image as a stable source of income, potentially attracting investors who prioritize dividends. However, the market's reaction to distributions often depends on the overall health of the fund's portfolio and the broader economic context. For example, in an environment where interest rates are rising, fixed-income investments might become more attractive compared to dividend-paying equities, possibly affecting the demand for shares of funds like Liberty All-Star Equity Fund.

The fund's performance and the secondary market support by ALPS Portfolio Solutions Distributor, Inc. also play a role in maintaining investor confidence. While past performance is not indicative of future results, it is often used by investors as a benchmark. The fund's net assets of over $1.9 billion as of early April 2024 suggest a substantial size that might provide some level of stability and resilience to market volatility. However, investors should be cautious, as size does not guarantee performance and larger funds can still experience significant price swings.

BOSTON, April 8, 2024 /PRNewswire/ -- The Board of Trustees of Liberty All-Star Equity Fund (NYSE: USA) has declared a distribution of $0.18 per share payable on June 3, 2024 to shareholders of record on April 19, 2024 (ex-dividend date of April 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 May 17, 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 $1.9 billion in net assets as of April 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)?

Liberty All-Star Equity Fund (USA) has declared a distribution of $0.18 per share.

When will the distribution be paid to shareholders?

The distribution will be paid on June 3, 2024, to shareholders of record on April 19, 2024.

What is the ex-dividend date for the distribution?

The ex-dividend date for the distribution is April 18, 2024.

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

The Fund has a current distribution policy of paying distributions totaling approximately 10% of its net asset value per year.

Who is the investment advisor of Liberty All-Star Equity Fund (USA)?

ALPS Advisors, Inc. is the investment advisor of the Fund.