Liberty All-Star(R) Equity Fund May 2013 Monthly Update

BOSTON, MA--(Marketwired - Jun 17, 2013) - Below is the May 2013 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

Liberty All-Star Equity Fund	Monthly Update
Ticker: USA	May, 2013

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:   
Matrix Asset Advisors, Inc.   
Pzena Investment Management, LLC   
Schneider Capital Management Corporation      

Growth Managers:   
Cornerstone Capital Management LLC   
TCW Investment Management Company   

Top 20 Holdings at Month-End
		(31.9% of equity portfolio)
		(Rank from previous month)
1		Google, Inc., Class A (1)		2.6%
2		JPMorgan Chase & Co. (2)		2.4%
3		QUALCOMM, Inc. (3)		2.1%
4		Citigroup, Inc. (4)		2.1%
5		Schlumberger Ltd. (5)		1.8%
6		ACE Ltd. (6)		1.6%
7		State Street Corp. (8)		1.6%
8		Bank of America Corp. (7)		1.6%
9		MetLife, Inc. (12)		1.5%
10		SunTrust Banks, Inc. (10)		1.5%
11		Microsoft Corp. (11)		1.4%
12		TE Connectivity Ltd. (9)		1.4%
13		Hewlett-Packard Co. (15)		1.4%
14		Visa, Inc., Class A (13)		1.4%
15		Devon Energy Corp. (14)		1.3%
16		Morgan Stanley (19)		1.3%
17		Salesforce.com, Inc. (17)		1.3%
18		The Charles Schwab Corp. (22)		1.2%
19		American International Group, Inc. (16)		1.2%
20		Chesapeake Energy Corp. (21)		1.2%
		Holdings are subject to change.

Monthly Performance
Performance	NAV	Market Price	Discount
Beginning of month value	$5.83	$5.20	10.8%
Distributions (Ex-Date May 1)	$0.08	$0.08
End of month value	$5.99	$5.30	11.5%
Performance for month	4.30%	3.46%
Performance year-to-date	15.47%	14.59%

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.

Returns for the Fund are total returns, which include dividends, after deducting Fund expenses. The Fund's performance is calculated assuming that a shareholder reinvested all distributions and exercised all primary rights in the Fund's rights offerings. 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.    

Net Assets at Month-End ($millions)
Total	$1,117.0
Equities	$1,085.0
Percent Invested	97.1%

Sector Breakdown (% of equity portfolio)*
	Financials		26.4%
	Information Technology		20.1%
	Energy		14.6%
	Consumer Discretionary		13.1%
	Health Care		9.3%
	Industrials		6.9%
	Consumer Staples		5.6%
	Materials		2.3%
	Telecommunication Services		0.9%
	Utilities		0.8%
	Total Market Value		100.0%
*Based on Standard & Poor's and MSCI Barra Global Industry Classification Standard (GICS).

New Holdings			Holdings Liquidated
	BioMarin Pharmaceutical, Inc.			Apple, Inc.
	ING US, Inc.			First Energy Corp.
	Michael Kors Holdings Ltd.			Harris Corp.
	Shutterfly, Inc.			Hugo Boss AG
	Splunk, Inc.			Life Technologies Corp.
	Taylor Morrison Home Corp.			SunEdison, Inc.