BOSTON, MA -- (Marketwire) -- 11/09/12 -- Below is the October 2012 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

Liberty All-Star Equity Fund                                  Monthly Update
Ticker: USA                                                       October 12


Monthly Performance
Performance                                    NAV   Market Price  Discount
----------------------------------------------------------------------------
Beginning of month value                      $5.38      $4.83       10.2%
Distributions (Ex-Date October 31)            $0.08      $0.08
End of month value                            $5.21      $4.64       10.9%
Performance for month                        -1.67%     -2.28%
Performance year-to-date                     11.16%     17.68%
Past performance cannot predict future
results


Net Assets at Month-End ($millions)
Total                                       $958.2
Equities                                    $955.2
Percent Invested                            99.7%


Top 20 Holdings at Month-End
   (31.3% of equity portfolio)
                           (Rank from previous month)
 1 Apple, Inc. (1)                                        3.2%
 2 JPMorgan Chase & Co. (2)                               2.6%
 3 QUALCOMM, Inc. (3)                                     2.1%
 4 Google, Inc., Class A (4)                              1.9%
 5 Citigroup, Inc. (10)                                   1.7%
 6 Schlumberger Ltd. (5)                                  1.7%
 7 ACE Ltd. (8)                                           1.6%
 8 Wells Fargo & Co. (9)                                  1.5%
 9 SunTrust Banks, Inc. (7)                               1.5%
10 State Street Corp. (11)                                1.4%
11 MetLife, Inc. (19)                                     1.4%
12 Devon Energy Corp. (13)                                1.3%
13 The Allstate Corp. (6)                                 1.3%
14 Chesapeake Energy Corp. (17)                           1.2%
15 Teva Pharmaceutical Industries Ltd. (14)               1.2%
16 TE Connectivity Ltd. (12)                              1.2%
17 Visa, Inc., Class A (16)                               1.2%
18 Arch Coal, Inc. (30)                                   1.1%
19 NVR, Inc. (22)                                         1.1%
20 Cisco Systems, Inc. (15)                               1.1%
   Holdings are subject to change.


Sector Breakdown (% of equity portfolio)*
   Financials                                         22.8%
   Information Technology                             21.8%
   Energy                                             15.0%
   Consumer Discretionary                             12.1%
   Health Care                                        9.7%
   Industrials                                        7.3%
   Consumer Staples                                   5.5%
   Materials                                          3.1%
   Telecommunication Services                         1.6%
   Utilities                                          1.1%
Total Market Value                                    100.0%
*Based on Standard & Poor's and MSCI Barra Global Industry
Classification Standard (GICS).


 New Holdings                           Holdings Liquidated
  NIKE, Inc., Class B                    Fortune Brands Home & Security,
                                         Inc.
  Realogy Holdings Corp.                 Monster Beverage Corp.