| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (98.03%) | ||||||||
| COMMUNICATION SERVICES (4.74%) | ||||||||
| Entertainment (0.56%) | ||||||||
| Netflix, Inc.(a) | 34,247 | $ | 8,063,114 | |||||
| Interactive Media & Services (3.58%) | ||||||||
| Alphabet, Inc., Class A(a) | 129,440 | 12,380,936 | ||||||
| Alphabet, Inc., Class C(a) | 285,700 | 27,470,055 | ||||||
| Match Group, Inc.(a) | 104,207 | 4,975,884 | ||||||
| Meta Platforms, Inc., Class A(a) | 52,535 | 7,127,949 | ||||||
| 51,954,824 | ||||||||
| Media (0.60%) | ||||||||
| Omnicom Group, Inc. | 138,145 | 8,715,568 | ||||||
| CONSUMER DISCRETIONARY (15.12%) | ||||||||
| Auto Components (1.32%) | ||||||||
| Cie Generale des Etablissements Michelin SCA(b) | 455,680 | 5,064,883 | ||||||
| Lear Corp. | 117,329 | 14,043,108 | ||||||
| 19,107,991 | ||||||||
| Hotels, Restaurants & Leisure (2.36%) | ||||||||
| Booking Holdings, Inc.(a) | 10,495 | 17,245,489 | ||||||
| Starbucks Corp. | 83,145 | 7,005,798 | ||||||
| Yum! Brands, Inc. | 94,078 | 10,004,254 | ||||||
| 34,255,541 | ||||||||
| Household Durables (2.77%) | ||||||||
| Lennar Corp., Class A | 107,200 | 7,991,760 | ||||||
| Lennar Corp., Class B | 2,500 | 148,775 | ||||||
| Mohawk Industries, Inc.(a) | 67,297 | 6,136,814 | ||||||
| Newell Brands, Inc. | 670,289 | 9,310,314 | ||||||
| Sony Group Corp.(b) | 258,736 | 16,572,041 | ||||||
| 40,159,704 | ||||||||
| Internet & Direct Marketing Retail (2.40%) | ||||||||
| Amazon.com, Inc.(a) | 308,761 | 34,889,993 | ||||||
| Multiline Retail (2.27%) | ||||||||
| Dollar General Corp. | 82,428 | 19,771,180 | ||||||
| Dollar Tree, Inc.(a) | 96,595 | 13,146,580 | ||||||
| 32,917,760 | ||||||||
| Specialty Retail (2.04%) | ||||||||
| CarMax, Inc.(a) | 115,361 | 7,616,133 | ||||||
| Home Depot, Inc. | 26,980 | 7,444,861 | ||||||
| TJX Cos., Inc. | 123,846 | 7,693,314 | ||||||
See Notes to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2022 | 7 |
| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (continued) | ||||||||
| Specialty Retail (continued) | ||||||||
| Ulta Beauty, Inc.(a) | 17,071 | $ | 6,848,714 | |||||
| 29,603,022 | ||||||||
| Textiles, Apparel & Luxury Goods (1.96%) | ||||||||
| Gildan Activewear, Inc. | 377,917 | 10,683,714 | ||||||
| NIKE, Inc., Class B | 58,560 | 4,867,507 | ||||||
| PVH Corp. | 107,324 | 4,808,115 | ||||||
| Skechers U.S.A., Inc., Class A(a) | 254,954 | 8,087,141 | ||||||
| 28,446,477 | ||||||||
| CONSUMER STAPLES (3.24%) | ||||||||
| Beverages (1.00%) | ||||||||
| Coca-Cola Co. | 135,500 | 7,590,710 | ||||||
| Constellation Brands, Inc., Class A | 30,300 | 6,959,304 | ||||||
| 14,550,014 | ||||||||
| Food & Staples Retailing (0.64%) | ||||||||
| Costco Wholesale Corp. | 19,716 | 9,311,275 | ||||||
| Food Products (0.34%) | ||||||||
| Tyson Foods, Inc., Class A | 74,900 | 4,938,157 | ||||||
| Household Products (0.48%) | ||||||||
| Procter & Gamble Co. | 54,600 | 6,893,250 | ||||||
| Personal Products (0.78%) | ||||||||
| Unilever PLC(b) | 258,896 | 11,350,001 | ||||||
| ENERGY (2.78%) | ||||||||
| Energy Equipment & Services (1.28%) | ||||||||
| Halliburton Co. | 264,253 | 6,505,909 | ||||||
| NOV, Inc. | 429,929 | 6,956,251 | ||||||
| Schlumberger NV | 139,668 | 5,014,081 | ||||||
| 18,476,241 | ||||||||
| Oil, Gas & Consumable Fuels (1.50%) | ||||||||
| Coterra Energy, Inc. | 326,100 | 8,517,732 | ||||||
| Exxon Mobil Corp. | 54,865 | 4,790,263 | ||||||
| Phillips 66 | 65,400 | 5,279,088 | ||||||
| Shell PLC(b) | 64,587 | 3,213,849 | ||||||
| 21,800,932 | ||||||||
| FINANCIALS (18.91%) | ||||||||
| Banks (4.71%) | ||||||||
| Bank of America Corp. | 221,632 | 6,693,286 |
See Notes to Schedule of Investments.
| 8 | www.all-starfunds.com |
| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (continued) | ||||||||
| Banks (continued) | ||||||||
| Citigroup, Inc. | 322,309 | $ | 13,430,616 | |||||
| Commerce Bancshares, Inc. | 70,200 | 4,644,432 | ||||||
| Cullen/Frost Bankers, Inc. | 54,700 | 7,232,434 | ||||||
| JPMorgan Chase & Co. | 114,623 | 11,978,104 | ||||||
| Mitsubishi UFJ Financial Group, Inc.(b) | 759,100 | 3,415,950 | ||||||
| PNC Financial Services Group, Inc. | 48,200 | 7,202,044 | ||||||
| Wells Fargo & Co. | 341,937 | 13,752,706 | ||||||
| 68,349,572 | ||||||||
| Capital Markets (6.69%) | ||||||||
| Ameriprise Financial, Inc. | 32,400 | 8,163,180 | ||||||
| BlackRock, Inc. | 10,898 | 5,996,951 | ||||||
| Blackstone Group LP | 83,200 | 6,963,840 | ||||||
| Charles Schwab Corp. | 340,079 | 24,441,478 | ||||||
| Goldman Sachs Group, Inc. | 16,458 | 4,823,017 | ||||||
| MSCI, Inc. | 29,429 | 12,412,858 | ||||||
| Northern Trust Corp. | 119,714 | 10,242,730 | ||||||
| S&P Global, Inc. | 67,733 | 20,682,271 | ||||||
| UBS Group AG(c) | 231,175 | 3,354,349 | ||||||
| 97,080,674 | ||||||||
| Consumer Finance (1.67%) | ||||||||
| American Express Co. | 54,492 | 7,351,516 | ||||||
| Capital One Financial Corp. | 182,101 | 16,784,249 | ||||||
| 24,135,765 | ||||||||
| Diversified Financial Services (2.44%) | ||||||||
| Berkshire Hathaway, Inc., Class B(a) | 66,648 | 17,796,349 | ||||||
| Equitable Holdings, Inc. | 371,413 | 9,786,733 | ||||||
| Voya Financial, Inc. | 129,803 | 7,853,081 | ||||||
| 35,436,163 | ||||||||
| Insurance (3.40%) | ||||||||
| American International Group, Inc. | 198,368 | 9,418,513 | ||||||
| Arch Capital Group, Ltd.(a) | 182,061 | 8,291,058 | ||||||
| Axis Capital Holdings, Ltd. | 171,252 | 8,417,036 | ||||||
| Cincinnati Financial Corp. | 71,000 | 6,359,470 | ||||||
| MetLife, Inc. | 175,534 | 10,668,956 | ||||||
| Progressive Corp. | 53,520 | 6,219,559 | ||||||
| 49,374,592 | ||||||||
| HEALTH CARE (13.67%) | ||||||||
| Biotechnology (1.33%) | ||||||||
| Amgen, Inc. | 36,600 | 8,249,640 | ||||||
| Regeneron Pharmaceuticals, Inc.(a) | 16,011 | 11,029,498 | ||||||
| 19,279,138 |
See Notes to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2022 | 9 |
| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (continued) | ||||||||
| Health Care Equipment & Supplies (3.63%) | ||||||||
| Abbott Laboratories | 55,841 | $ | 5,403,175 | |||||
| Alcon, Inc. | 101,700 | 5,916,906 | ||||||
| Align Technology, Inc.(a) | 19,546 | 4,048,172 | ||||||
| Boston Scientific Corp.(a) | 151,897 | 5,882,971 | ||||||
| Dexcom, Inc.(a) | 68,444 | 5,512,480 | ||||||
| Intuitive Surgical, Inc.(a) | 42,636 | 7,991,692 | ||||||
| Koninklijke Philips NV | 316,403 | 4,869,442 | ||||||
| Medtronic PLC | 67,700 | 5,466,775 | ||||||
| Smith & Nephew PLC(b)(c) | 327,567 | 7,606,105 | ||||||
| 52,697,718 | ||||||||
| Health Care Providers & Services (3.42%) | ||||||||
| Cardinal Health, Inc. | 88,179 | 5,879,775 | ||||||
| Fresenius Medical Care AG & Co. KGaA(b) | 748,421 | 10,507,831 | ||||||
| McKesson Corp. | 18,648 | 6,337,896 | ||||||
| UnitedHealth Group, Inc. | 53,219 | 26,877,724 | ||||||
| 49,603,226 | ||||||||
| Life Sciences Tools & Services (3.21%) | ||||||||
| Danaher Corp. | 84,249 | 21,760,674 | ||||||
| IQVIA Holdings, Inc.(a) | 82,812 | 15,000,566 | ||||||
| Thermo Fisher Scientific, Inc. | 19,493 | 9,886,655 | ||||||
| 46,647,895 | ||||||||
| Pharmaceuticals (2.08%) | ||||||||
| Bristol-Myers Squibb Co. | 144,486 | 10,271,510 | ||||||
| Merck & Co., Inc. | 86,330 | 7,434,740 | ||||||
| Pfizer, Inc. | 95,506 | 4,179,342 | ||||||
| Zoetis, Inc. | 55,850 | 8,281,996 | ||||||
| 30,167,588 | ||||||||
| INDUSTRIALS (8.28%) | ||||||||
| Aerospace & Defense (0.46%) | ||||||||
| General Dynamics Corp. | 31,200 | 6,619,704 | ||||||
| Building Products (1.60%) | ||||||||
| Carlisle Companies, Inc. | 39,110 | 10,966,835 | ||||||
| Masco Corp. | 262,500 | 12,256,125 | ||||||
| 23,222,960 | ||||||||
| Commercial Services & Supplies (0.45%) | ||||||||
| Waste Connections, Inc. | 48,650 | 6,574,075 |
See Notes to Schedule of Investments.
| 10 | www.all-starfunds.com |
| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (continued) | ||||||||
| Electrical Equipment (0.51%) | ||||||||
| Eaton Corp. PLC | 55,793 | $ | 7,440,554 | |||||
| Industrial Conglomerates (1.56%) | ||||||||
| General Electric Co. | 248,922 | 15,410,761 | ||||||
| Honeywell International, Inc. | 43,300 | 7,229,801 | ||||||
| 22,640,562 | ||||||||
| Machinery (2.76%) | ||||||||
| Oshkosh Corp. | 58,000 | 4,076,820 | ||||||
| PACCAR, Inc. | 136,923 | 11,459,086 | ||||||
| Parker-Hannifin Corp. | 32,100 | 7,778,151 | ||||||
| Wabtec Corp. | 117,119 | 9,527,631 | ||||||
| Xylem, Inc. | 82,200 | 7,180,992 | ||||||
| 40,022,680 | ||||||||
| Professional Services (0.33%) | ||||||||
| TransUnion | 81,400 | 4,842,486 | ||||||
| Trading Companies & Distributors (0.61%) | ||||||||
| Ferguson PLC(c) | 85,481 | 8,798,559 | ||||||
| INFORMATION TECHNOLOGY (20.87%) | ||||||||
| Electronic Equipment, Instruments & Components (0.80%) | ||||||||
| CDW Corp. | 74,599 | 11,643,412 | ||||||
| IT Services (5.31%) | ||||||||
| Amdocs, Ltd. | 120,107 | 9,542,501 | ||||||
| Cognizant Technology Solutions Corp., Class A | 204,848 | 11,766,469 | ||||||
| FleetCor Technologies, Inc.(a) | 38,829 | 6,840,505 | ||||||
| Mastercard, Inc., Class A | 30,196 | 8,585,931 | ||||||
| PayPal Holdings, Inc.(a) | 89,852 | 7,733,562 | ||||||
| Snowflake, Inc., Class A(a) | 21,125 | 3,590,405 | ||||||
| Twilio, Inc., Class A(a) | 42,044 | 2,906,922 | ||||||
| Visa, Inc., Class A | 147,242 | 26,157,541 | ||||||
| 77,123,836 | ||||||||
| Semiconductors & Semiconductor Equipment (3.34%) | ||||||||
| ASML Holding N.V. | 13,944 | 5,791,640 | ||||||
| Enphase Energy, Inc.(a) | 23,346 | 6,477,815 | ||||||
| Microchip Technology, Inc. | 136,000 | 8,300,080 | ||||||
| Micron Technology, Inc. | 196,933 | 9,866,343 | ||||||
| NVIDIA Corp. | 82,967 | 10,071,364 |
See Notes to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2022 | 11 |
| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (continued) | ||||||||
| Semiconductors & Semiconductor Equipment (continued) | ||||||||
| QUALCOMM, Inc. | 70,000 | $ | 7,908,600 | |||||
| 48,415,842 | ||||||||
| Software (11.02%) | ||||||||
| Adobe, Inc.(a) | 73,603 | 20,255,546 | ||||||
| ANSYS, Inc.(a) | 33,500 | 7,426,950 | ||||||
| Autodesk, Inc.(a) | 95,619 | 17,861,629 | ||||||
| Crowdstrike Holdings, Inc., Class A(a) | 31,587 | 5,205,853 | ||||||
| Intuit, Inc. | 27,230 | 10,546,724 | ||||||
| Microsoft Corp. | 166,953 | 38,883,354 | ||||||
| Salesforce, Inc.(a) | 135,874 | 19,544,116 | ||||||
| SAP SE(b) | 106,599 | 8,661,169 | ||||||
| ServiceNow, Inc.(a) | 36,715 | 13,863,951 | ||||||
| Trade Desk, Inc., Class A(a) | 103,711 | 6,196,732 | ||||||
| Workday, Inc., Class A(a) | 75,064 | 11,426,242 | ||||||
| 159,872,266 | ||||||||
| Technology Hardware, Storage & Peripherals (0.40%) | ||||||||
| Hewlett Packard Enterprise Co. | 490,898 | 5,880,958 | ||||||
| MATERIALS (5.51%) | ||||||||
| Chemicals (3.64%) | ||||||||
| Corteva, Inc. | 217,400 | 12,424,410 | ||||||
| Dow Chemical Co. | 240,071 | 10,546,319 | ||||||
| Ecolab, Inc. | 112,000 | 16,175,040 | ||||||
| RPM International, Inc. | 83,400 | 6,948,054 | ||||||
| Sherwin-Williams Co. | 33,012 | 6,759,207 | ||||||
| 52,853,030 | ||||||||
| Construction Materials (0.59%) | ||||||||
| Martin Marietta Materials, Inc. | 26,700 | 8,599,803 | ||||||
| Containers & Packaging (1.28%) | ||||||||
| Avery Dennison Corp. | 62,911 | 10,235,620 | ||||||
| Ball Corp. | 172,278 | 8,324,473 | ||||||
| 18,560,093 | ||||||||
| REAL ESTATE (2.25%) | ||||||||
| Equity Real Estate Investment Trusts (REITs) (2.25%) | ||||||||
| American Tower Corp. | 54,800 | 11,765,560 | ||||||
| Crown Castle, Inc. | 50,600 | 7,314,230 | ||||||
| Equinix, Inc. | 15,917 | 9,054,226 | ||||||
| Equity LifeStyle Properties, Inc. | 72,445 | 4,552,444 | ||||||
| 32,686,460 |
See Notes to Schedule of Investments.
| 12 | www.all-starfunds.com |
| Liberty All-Star® Equity Fund | Schedule of Investments |
September 30, 2022 (Unaudited)
| SHARES | VALUE | |||||||
| COMMON STOCKS (continued) | ||||||||
| UTILITIES (2.66%) | ||||||||
| Electric Utilities (2.13%) | ||||||||
| Edison International | 176,722 | $ | 9,998,931 | |||||
| NRG Energy, Inc. | 336,915 | 12,893,737 | ||||||
| Xcel Energy, Inc. | 124,034 | 7,938,176 | ||||||
| 30,830,844 | ||||||||
| Gas Utilities (0.53%) | ||||||||
| Atmos Energy Corp. | 76,000 | 7,740,600 | ||||||
| TOTAL COMMON STOCKS | ||||||||
| (COST OF $1,414,444,504) | 1,422,574,919 | |||||||
| SHORT TERM INVESTMENTS (2.78%) | ||||||||
| MONEY MARKET FUND (2.01%) | ||||||||
| State Street Institutional US Government Money Market Fund, 2.92%(d) | ||||||||
| (COST OF $29,155,181) | 29,155,181 | 29,155,181 | ||||||
| INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED (0.77%) | ||||||||
| State Street Navigator Securities Lending Government Money Market Portfolio, 3.07% | ||||||||
| (COST OF $11,165,450) | 11,165,450 | 11,165,450 | ||||||
| TOTAL SHORT TERM INVESTMENTS | ||||||||
| (COST OF $40,320,631) | 40,320,631 | |||||||
| TOTAL INVESTMENTS (100.81%) | ||||||||
| (COST OF $1,454,765,135) | 1,462,895,550 | |||||||
| LIABILITIES IN EXCESS OF OTHER ASSETS (-0.81%) | (11,705,103 | ) | ||||||
| NET ASSETS (100.00%) | $ | 1,451,190,447 | ||||||
| NET ASSET VALUE PER SHARE | ||||||||
| (262,694,494 SHARES OUTSTANDING) | $ | 5.52 |
| (a) | Non-income producing security. |
| (b) | American Depositary Receipt. |
| (c) | Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $12,905,831. |
| (d) | Rate reflects seven-day effective yield on September 30, 2022. |
See Notes to Schedule of Investments.
| Third Quarter Report (Unaudited) | September 30, 2022 | 13 |
| Liberty All-Star® Equity Fund | Notes to Schedule of Investments |
September 30, 2022 (Unaudited)
Security Valuation
Equity securities are valued at the last sale price at the close of the principal exchange on which they trade, except for securities listed on the NASDAQ Stock Market LLC (“NASDAQ”), which are valued at the NASDAQ official closing price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets.
Cash collateral from securities lending activity is reinvested in the State Street Navigator Securities Lending Government Money Market Portfolio (“State Street Navigator”), a registered investment company under the Investment Company Act of 1940 (the “1940 Act”), which operates as a money market fund in compliance with Rule 2a-7 under the 1940 Act. Shares of registered investment companies are valued daily at that investment company’s net asset value per share.
The Fund’s investments are valued at market value or, in the absence of market value with respect to any portfolio securities, at fair value according to procedures adopted by the Fund's Board of Trustees (the "Board"). Effective September 8, 2022, the Board approved changes to the Fund's valuation policy to comply with Rule 2a-5 and designated ALPS Advisors, Inc. (the "Advisor") as the Fund's Valuation Designee (as defined in the rule). The Valuation Designee will be responsible determining fair value in good faith for any and all Fund investments, subject to oversight by the Board. When market quotations are not readily available, or in management’s judgment they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the security will be valued by the Advisor’s Valuation Committee using fair valuation procedures established by the Valuation Designee. Examples of potentially significant events that could materially impact a Fund’s net asset value include, but are not limited to: single issuer events such as corporate actions, reorganizations, mergers, spin-offs, liquidations, acquisitions and buyouts; corporate announcements on earnings or product offerings; regulatory news; and litigation and multiple issuer events such as governmental actions; natural disasters or armed conflicts that affect a country or a region; or significant market fluctuations. Potential significant events are monitored by the Advisor, Sub-Advisers and/or the Valuation Committee through independent reviews of market indicators, general news sources and communications from the Fund’s custodian. As of September 30, 2022, the Fund held no securities that were fair valued.
Security Transactions
Security transactions are recorded on trade date. Cost is determined and gains/(losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income Recognition
Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date.
The Fund estimates components of distributions from real estate investment trusts (“REITs”). Distributions received in excess of income are recorded as a reduction of the cost of the related investments. Once the REIT reports annually the tax character of its distributions, the Fund revises its estimates. If the Fund no longer owns the applicable securities, any distributions received in excess of income are recorded as realized gains.
| 14 | www.all-starfunds.com |
| Liberty All-Star® Equity Fund | Notes to Schedule of Investments |
September 30, 2022 (Unaudited)
Lending of Portfolio Securities
The Fund may lend its portfolio securities only to borrowers that are approved by the Fund’s securities lending agent, State Street Bank & Trust Co. (“SSB”). The Fund will limit such lending to not more than 30% of the value of its total assets. The borrower pledges and maintains with the Fund collateral consisting of cash (U.S. Dollar only), securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, or by irrevocable bank letters of credit issued by a person other than the borrower or an affiliate of the borrower. The initial collateral received by the Fund is required to have a value of no less than 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of no less than 105% of the market value for all other securities. The collateral is maintained thereafter, at a market value equal to no less than 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
Any cash collateral received is reinvested in State Street Navigator. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is not disclosed in the Fund’s Schedule of Investments as it is held by the lending agent on behalf of the Fund, and the Fund does not have the ability to re-hypothecate these securities.
The following is a summary of the Fund’s securities lending positions and related cash and non-cash collateral received as of September 30, 2022:
| Market Value of Securities on Loan | Cash Collateral Received | Non-Cash Collateral Received | Total Collateral Received | |||||||||||
| $ | 12,905,831 | $ | 11,165,450 | $ | 2,008,125 | $ | 13,173,575 | |||||||
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by SSB. SSB’s indemnity allows for full replacement of securities lent wherein SSB will purchase the unreturned loaned securities on the open market by applying the proceeds of the collateral, or to the extent such proceeds are insufficient or the collateral is unavailable, SSB will purchase the unreturned loan securities at SSB’s expense. However, the Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.
Fair Value Measurements
The Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
| Third Quarter Report (Unaudited) | September 30, 2022 | 15 |
| Liberty All-Star® Equity Fund | Notes to Schedule of Investments |
September 30, 2022 (Unaudited)
Valuation techniques used to value the Fund’s investments by major category are as follows:
Equity securities that are valued based on unadjusted quoted prices in active markets are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the mean of the most recent quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy. Investments in shares of registered investment companies are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.
Various inputs are used in determining the value of the Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.
These inputs are categorized in the following hierarchy under applicable financial accounting standards:
| Level 1 | – | Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date; |
| Level 2 | – | Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and |
Level 3 |
– | Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date. |
The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2022:
| Valuation Inputs | ||||||||||||||||
| Investments in Securities at Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks* | $ | 1,422,574,919 | $ | – | $ | – | $ | 1,422,574,919 | ||||||||
| Short Term Investments | 40,320,631 | – | – | 40,320,631 | ||||||||||||
| Total | $ | 1,462,895,550 | $ | – | $ | – | $ | 1,462,895,550 | ||||||||
| * | See Schedule of Investments for industry classifications. |
The Fund did not have any securities which used significant unobservable inputs (Level 3) in determining fair value during the period.
Indemnification
In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Fund’s organizational documents and by contract, the Trustees and Officers of the Fund are indemnified against certain liabilities that may arise out of their duties to the Fund. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be minimal.
| 16 | www.all-starfunds.com |
| Liberty All-Star® Equity Fund | Description of Lipper Benchmark and Market Indices |
(Unaudited)
Dow Jones Industrial Average
A price-weighted measure of 30 U.S. blue-chip companies.
Lipper Large-Cap Core Mutual Fund Average
The average of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s U.S. domestic equity large-cap floor. These funds typically have average characteristics compared to the S&P 500® Index.
NASDAQ Composite Index
Measures all NASDAQ domestic and international based common type stocks listed on the NASDAQ Stock Market.
Russell 3000® Growth Index
Measures the performance of those Russell 3000® companies with lower book-to-price ratios and higher growth values. The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
Russell 3000® Value Index
Measures the performance of those Russell 3000® companies with higher book-to-price ratios and lower growth values.
S&P 500® Index
A large-cap U.S. equities index that includes 500 leading companies and represents approximately 80% of the total domestic U.S. equity market capitalization.
An investor cannot invest directly in an index.
| Third Quarter Report (Unaudited) | September 30, 2022 | 17 |