BOSTON, MA -- (Marketwire) -- 06/08/12 -- Below is the May 2012 Monthly Update for the Liberty All-Star® Equity Fund. (NYSE: USA)

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

Monthly Performance
Performance                                    NAV   Market Price  Discount
----------------------------------------------------------------------------
Beginning of month value                      $5.58      $4.90       12.2%
Distributions (Ex-Date May 23)                $0.08      $0.08
End of month value                            $4.98      $4.41       11.4%
Performance for month                        -9.32%     -8.37%
Performance year-to-date                      2.88%      8.13%
Past performance cannot predict future
results


Net Assets at Month-End ($millions)
Total                                       $910.1
Equities                                    $910.6
Percent Invested                            100.1%


Top 20 Holdings at Month-End
   (30.3% of equity portfolio)
   (Rank from previous month)
 1 Apple, Inc. (1)                                        4.0%
 2 JPMorgan Chase & Co. (2)                               2.1%
 3 QUALCOMM, Inc. (3)                                     2.0%
 4 Google, Inc., Class A (4)                              1.8%
 5 Wells Fargo & Co. (5)                                  1.6%
 6 ACE Ltd. (7)                                           1.6%
 7 The Allstate Corp. (8)                                 1.5%
 8 Exxon Mobil Corp. (6)                                  1.5%
 9 State Street Corp. (10)                                1.3%
10 SunTrust Banks, Inc. (14)                              1.3%
11 Staples, Inc. (9)                                      1.3%
12 Citigroup, Inc. (12)                                   1.3%
13 TE Connectivity Ltd. (15)                              1.2%
14 Dell, Inc. (11)                                        1.2%
15 Microsoft Corp. (17)                                   1.1%
16 Schlumberger Ltd. (21)                                 1.1%
17 Cisco Systems, Inc. (16)                               1.1%
18 American Tower Corp., Class A (20)                     1.1%
19 Visa, Inc., Class A (19)                               1.1%
20 Chesapeake Energy Corp. (28)                           1.1%
   Holdings are subject to change.

Sector Breakdown (% of equity portfolio)*
   Information Technology                             24.3%
   Financials                                         20.9%
   Energy                                             14.3%
   Consumer Discretionary                             11.7%
   Health Care                                        8.4%
   Industrials                                        8.2%
   Consumer Staples                                   6.1%
   Materials                                          2.9%
   Telecommunication Services                         1.7%
   Utilities                                          1.5%
   Total Market Value                                 100.0%
*Based on Standard & Poor's and MSCI Barra Global Industry
Classification Standard (GICS).


New Holdings                          Holdings Liquidated
  Emerson Electric Co.                  CA, Inc.
  Facebook, Inc., Class A               Cooper Industries PLC
  National Oilwell Varco, Inc.          The Estee Lauder Cos., Inc., Class A
  NetApp, Inc.                          Ross Stores, Inc.
  Oracle Corp.                          The TJX Cos., Inc.