Liberty All-Star(R) Equity Fund May 2016 Update

BOSTON, MA--(Marketwired - Jun 16, 2016) - Below is the May 2016 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

Liberty All-Star Equity Fund		Monthly Update
	Ticker: USA	May, 2016
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 Capitol Management, LLC

Delaware Investments

Pzena Investment Management, LLC

Growth Managers:

Sustainable Growth Advisers, LP*

TCW Investment Management Company

Top 20 Holdings at Month-End
		(27.8% of equity portfolio)
		(Rank from previous month)
1		Alphabet, Inc., Class A & C (1)		2.5%
2		Amazon.com, Inc. (4)		2.0%
3		Facebook, Inc., Class A (3)		1.9%
4		Salesforce.com, Inc. (2)		1.8%
5		The Home Depot, Inc. (5)		1.6%
6		Halliburton Co. (6)		1.6%
7		Chubb Ltd. (8)		1.4%
8		Microsoft Corp. (9)		1.3%
9		CVS Health Corp. (7)		1.3%
10		Alexion Pharmaceuticals, Inc. (14)		1.3%
11		Visa, Inc., Class A (10)		1.2%
12		Bank of America Corp. (11)		1.2%
13		Intel Corp. (15)		1.2%
14		Mondelez International, Inc., Class A (13)		1.2%
15		Oracle Corp. (12)		1.1%
16		Archer-Daniels-Midland Co. (18)		1.1%
17		Mobileye NV (16)		1.1%
18		First Republic Bank (21)		1.0%
19		Adobe Systems, Inc. (23)		1.0%
20		American Tower Corp. (20)		1.0%
		Holdings are subject to change.
		*Replaced Cornerstone Capital Management LLC effective June 6, 2016.

Monthly Performance
Performance			NAV	Market Price	Discount
	Beginning of month value		$5.88	$4.99	15.1%
	Distributions		-	-
	End of month value		$6.01	$5.05	16.0%
	Performance for month		2.21%	1.20%
	Performance year-to-date		2.21%	-0.79%

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 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		$1,113.9
	Equities		$1,111.9
	Percent Invested		99.8%

Sector Breakdown (% of equity portfolio)**
	Information Technology		20.4%
	Financials		19.7%
	Health Care		16.3%
	Consumer Discretionary		14.2%
	Energy		9.1%
	Consumer Staples		8.4%
	Industrials		7.6%
	Materials		1.7%
	Utilities		1.3%
	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
Constellation Brands, Inc., Class A		Continental Resources, Inc.
Danaher Corp.		Palo Alto Networks, Inc.
Pinnacle Foods, Inc.