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Liberty All-Star(R) Equity Fund January 2012 Monthly Update

Below is the January 2012 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

Liberty All-Star Equity Fund                                  Monthly Update
Ticker: USA                                                     January 2012

Monthly Performance
Performance                                    NAV   Market Price  Discount
----------------------------------------------------------------------------
Beginning of month value                      $4.99      $4.22       15.4%
Distributions                                   -          -
End of month value                            $5.31      $4.64       12.6%
Performance for month                         6.41%      9.95%
Performance year-to-date                      6.41%      9.95%
Past performance cannot predict future
results


Net Assets at Month-End ($millions)
Total                                       $969.6
Equities                                    $945.6
Percent Invested                            97.5%


Top 20 Holdings at Month-End
   (30.6% of equity portfolio)
   (Rank from previous month)
 1 Apple, Inc. (1)                           3.2%
 2 JPMorgan Chase & Co. (2)                  2.2%
 3 QUALCOMM, Inc. (3)                        2.1%
 4 Cisco Systems, Inc. (4)                   2.1%
 5 Wells Fargo & Co. (6)                     1.9%
 6 Dell, Inc. (8)                            1.7%
 7 Google, Inc., Class A (5)                 1.6%
 8 ACE Ltd. (7)                              1.6%
 9 Exxon Mobil Corp. (12)                    1.5%
10 BP PLC (13)                               1.4%
11 The Allstate Corp. (10)                   1.3%
12 Staples, Inc. (11)                        1.3%
13 Microsoft Corp. (16)                      1.2%
14 SunTrust Banks, Inc. (19)                 1.1%
15 The Western Union Co. (9)                 1.1%
16 Hewlett-Packard Co. (18)                  1.1%
17 State Street Corp. (15)                   1.1%
18 American Tower Corp., Class A (17)        1.1%
19 Schlumberger Ltd. (21)                    1.0%
20 Visa, Inc., Class A (14)                  1.0%

   Holdings are subject to change.


Sector Breakdown (% of equity portfolio)*
Information Technology                       25.9%
Financials                                   19.9%
Energy                                       14.6%
Consumer Discretionary                       10.7%
Health Care                                  8.4%
Industrials                                  7.7%
Consumer Staples                             6.1%
Materials                                    3.6%
Utilities                                    1.6%
Telecommunication Services                   1.5%
                                             100.0%
*Based on Standard & Poor's and MSCI Barra Global Industry Classification
Standard (GICS).


New Holdings                             Holdings Liquidated
  Fastenal Co.                             Bank of New York Mellon Corp.
  LyondellBasell Industries NV, Class A    Robert Half International, Inc.
  Marriott International, Inc., Class A    Western Digital Corp.
  VF Corp.