BOSTON, MA -- (Marketwire) -- 10/12/12 -- Below is the September 2012 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

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

Monthly Performance
Performance                                NAV       Market Price   Discount
----------------------------------------------------------------------------
  Beginning of month value                $5.24          $4.73        9.7%
  Distributions                             -              -
  End of month value                      $5.38          $4.83       10.2%
  Performance for month                   2.67%          2.11%
  Performance year-to-date               13.05%         20.42%
Past performance cannot predict future results

Net Assets at Month-End ($millions)
  Total                                   $990.0
  Equities                                $973.7
  Percent Invested                        98.4%

Top 20 Holdings at Month-End
    (30.7% of equity portfolio)
      (Rank from previous month)
 1  Apple, Inc. (1)                                          3.4%
 2  JPMorgan Chase & Co. (2)                                 2.4%
 3  QUALCOMM, Inc. (3)                                       2.2%
 4  Google, Inc., Class A (4)                                2.1%
 5  Schlumberger Ltd. (7)                                    1.6%
 6  The Allstate Corp. (8)                                   1.5%
 7  SunTrust Banks, Inc. (9)                                 1.5%
 8  ACE Ltd. (6)                                             1.5%
 9  Wells Fargo & Co. (5)                                    1.5%
10  Citigroup, Inc. (10)                                     1.5%
11  State Street Corp. (12)                                  1.3%
12  TE Connectivity Ltd. (11)                                1.2%
13  Devon Energy Corp. (18)                                  1.2%
14  Teva Pharmaceutical Industries Ltd. (15)                 1.2%
15  Cisco Systems, Inc. (13)                                 1.2%
16  Visa, Inc., Class A (16)                                 1.1%
17  Chesapeake Energy Corp. (14)                             1.1%
18  American Tower Corp., Class A (17)                       1.1%
19  MetLife, Inc. (20)                                       1.1%
20  Baidu, Inc. (24)                                         1.0%
    Holdings are subject to change.


Sector Breakdown (% of equity portfolio)*
  Information Technology             23.2%
  Financials                         21.8%
  Energy                             14.2%
  Consumer Discretionary             12.3%
  Health Care                        9.8%
  Industrials                        7.2%
  Consumer Staples                   5.7%
  Materials                          3.0%
  Telecommunication Services         1.7%
  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
  Camden Property Trust         Avon Products, Inc.
  Capital One Financial Corp.   Coach, Inc.
  Kellogg Co.                   Expeditors International of Washington, Inc.
  The Sherwin-Williams Co.      Texas Instruments, Inc.