Liberty All-Star(R) Equity Fund December 2011 Monthly Update

BOSTON, MA -- (Marketwire) -- 01/18/12 -- Below is the December 2011 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

Liberty All-Star Equity Fund                                 Monthly Update
Ticker: USA                                                   December 2011

Monthly Performance

Performance                                  NAV    Market Price   Discount
                                             ---    ------------   --------
Beginning of month value                     $5.09      $4.31        15.3%
Distributions (Ex-Date December 14)          $0.08      $0.08
End of month value                           $4.99      $4.22        15.4%
Performance for month                       -0.39%     -0.30%
Performance year-to-date                    -6.73%     -8.09%

Past performance cannot predict future results


Net Assets at Month-End ($millions)
Total                                       $911.8
Equities                                    $898.4
Percent Invested                             98.5%


Top 20 Holdings at Month-End
  (30.4% of equity portfolio)
  (Rank from previous month)

 1 Apple, Inc. (1)                                  3.0%
 2 JPMorgan Chase & Co. (5)                         2.1%
 3 QUALCOMM, Inc. (2)                               2.1%
 4 Cisco Systems, Inc. (3)                          2.0%
 5 Google, Inc., Class A (4)                        2.0%
 6 Wells Fargo & Co. (7)                            1.9%
 7 ACE Ltd. (6)                                     1.8%
 8 Dell, Inc. (8)                                   1.5%
 9 The Western Union Co. (10)                       1.4%
10 The Allstate Corp. (11)                          1.3%
11 Staples, Inc. (13)                               1.3%
12 Exxon Mobil Corp. (46)                           1.3%
13 BP PLC (9)                                       1.3%
14 Visa, Inc., Class A (12)                         1.2%
15 State Street Corp. (14)                          1.1%
16 Microsoft Corp. (24)                             1.1%
17 American Tower Corp., Class A (16)               1.0%
18 Hewlett-Packard Co. (15)                         1.0%
19 SunTrust Banks, Inc. (29)                        1.0%
20 Carnival Corp. (21)                              1.0%

   Holdings are Subject to Change


Sector Breakdown (% of equity portfolio)*

Information Technology                          25.4%
Financials                                      19.5%
Energy                                          14.6%
Consumer Discretionary                          10.6%
Health Care                                      8.8%
Industrials                                      8.0%
Consumer Staples                                 6.4%
Materials                                        3.5%
Utilities                                        1.8%
Telecommunication Services                       1.4%
                                                100.0%

*Based on Standard & Poor's and MSCI Barra Global Industry Classification
Standard (GICS).


New Holdings               Holdings Liquidated
 Brown & Brown, Inc.        Broadcom Corp., Class A
 Citrix Systems, Inc.       Colgate-Palmolive Co.
 CSX Corp.                  Edison International
 Dollar General Corp.       Expedia, Inc.
 General Mills, Inc.        Textron, Inc.
 Pharmasset, Inc.
 Texas Instruments, Inc.

Contact Information:
Liberty All-Star Equity Fund
1-800-241-1850
www.all-starfunds.com