UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File No.: 811-04809

Liberty All-Star Equity Fund

(Exact name of Registrant as specified in charter)

1290 Broadway, Suite 1000, Denver, Colorado 80203

(Address of principal executive offices) (Zip code)

Sareena Khwaja-Dixon, Esq.

ALPS Fund Services, Inc.

1290 Broadway, Suite 1000

Denver, Colorado 80203

(Name and address of agent for service)

Registrant’s telephone number, including area code: 303-623-2577

Date of fiscal year end: December 31

Date of reporting period: January 1, 2025 – December 31, 2025

Item 1. Report of Shareholders.

(a)

Contents

1	President’s Letter
6	Unique Fund Attributes
8	Table of Distribution, Tax Credits & Rights Offerings
9	Investment Growth and Distribution Policy
10	Stock Changes in the Quarter
11	Top 20 Holdings and Economic Sectors
12	Investment Managers/ Portfolio Characteristics
13	Manager Roundtable
20	Schedule of Investments
28	Statement of Assets and Liabilities
29	Statement of Operations
30	Statements of Changes in Net Assets
32	Financial Highlights
34	Notes to Financial Statements
43	Report of Independent Registered Public Accounting Firm
44	Automatic Dividend Reinvestment and Direct Purchase Plan
46	Additional Information
47	Trustees and Officers
51	Board Consideration of the Renewal of the Fund Management & Portfolio Management Agreements
56	Summary of Updated Information Regarding the Fund
61	Privacy Policy
63	Description of Lipper Benchmark and Market Indices
Inside Back Cover: Fund Information

A SINGLE INVESTMENT...

A DIVERSIFIED CORE PORTFOLIO

A single fund that offers:

●

A diversified, multi-managed portfolio of growth and value stocks

●

Exposure to many of the industries that make the U.S. economy one of the world’s most dynamic

●

Access to institutional quality investment managers

●

Objective and ongoing manager evaluation

●

Active portfolio rebalancing

●

A quarterly fixed distribution policy

●

Actively managed, exchange-traded, closed-end fund listed on the New York Stock Exchange (ticker symbol: USA)

LIBERTY ALL-STAR^® EQUITY FUND

Liberty All-Star^® Equity Fund

President's Letter

(Unaudited)

Fellow Shareholders:

February 2026

April 2, 2025, was called “Liberation Day” by President Trump. The date marked a change in tariff policy for U.S. trade partners and a distinct change in direction for the U.S. stock market. At the close on April 8, the S&P 500^® Index was down 14.98 percent for the year and 18.55 percent below its February record high. On April 9, the index posted a single-day gain of 9.52 percent and the equity market surge was on: for the year, the S&P 500 returned 17.88 percent; the Dow Jones Industrial Average (DJIA), 14.92 percent; and the NASDAQ Composite Index, 21.14 percent.

The turnaround that began on April 9 was sparked when the President paused the previous week’s announcement of across-the-board tariff increases, which had sown doubt about prospects for the economic outlook, particularly global trade disruptions and greater inflationary pressures. The potential of tariffs’ worst-case scenario reduced, positive forces were freed to propel equities higher through year-end: solid consumer spending, declining interest rates, strong corporate earnings, spending on artificial intelligence (AI) technology and capital investment to meet the rapidly growing power demands of AI.

Like any year, 2025 experienced bumps in the equity markets and reasons for caution. As noted, the first quarter was lower—the S&P 500 by 4.27 percent and the NASDAQ Composite by more than 10 percent. Tariff announcements periodically unsettled markets as did other issues like job growth, growth of the national debt, housing affordability, inflation and a government shutdown. Inflation remained sticky throughout the year as the consumer price index (CPI) remained stubbornly above the Fed’s 2 percent target ending the year at 2.7 percent. The U.S. created only 181,000 new jobs in 2025 versus 2024’s 1.5 million in what was dubbed the “don’t fire, don’t hire” labor environment. The enormous national debt—now some $38.4 trillion—captured headlines periodically, particularly during the shutdown, and was a factor in the year’s higher bond yields.

However, despite the many concerns, a resilient economy and strong corporate earnings powered the stock market to robust returns for the year. Third quarter earnings for S&P 500 companies rose over 13 percent year over year. The gross domestic product (GDP)—the broadest measure of economic activity—grew at an annual rate of 4.3 percent in the third quarter, ahead of the 3.8 percent pace for the second quarter. Consumer spending was mixed—starting the year strong but decelerating as affordability and uncertainty dampened momentum.

Equity investors saw gains in the S&P 500, DJIA and NASDAQ Composite for the third straight year. But the advance in 2025, as in other recent years, was concentrated around mega- and large-cap names seen to be leaders in AI and information technology, led by the “Magnificent Seven¹”. Beneath the surface, however, performance was not nearly as strong for the majority of stocks comprising major large-cap indexes. The table on the next page shows that headline returns for the S&P 500 as well as for key large-cap growth and value indexes masked performance that was actually very shallow. One example: Within the index with the highest return, the Russell 1000^® Growth at 18.56 percent, the stocks of fully half of the names posted negative returns while the median²return was barely positive for the year. This phenomenon was driven by the extreme level of concentration in Russell 1000^® Growth, where the top 10 stocks accounted for over 61 percent of the index at year-end.

Those stocks are Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.

The middle or midpoint in a range of numbers ordered highest to lowest (half are above, half below).

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

President's Letter

(Unaudited)

	2025
Index	Return	Median Return	% with Negative Return	% with Return Above Index
S&P 500	17.88%	7.05%	37%	30%
Russell 1000^® Growth	18.56%	0.15%	50%	26%
Russell 1000^® Value	15.91%	5.47%	41%	33%

Growth stocks outperformed their value counterparts again in 2025—but the disparity was not nearly as great as it was in 2023-2024, a reflection of a modest broadening of the market in the first quarter and to end the year. For the year the large-cap Russell 1000^® Growth Index returned 18.56 percent while the value index returned 15.91 percent. For perspective, last year the large-cap Russell 1000^® Growth Index returned 33.36 percent—well over twice the 14.37 percent return of the value index.

Liberty All-Star^® Equity Fund

It was another difficult year for active managers as the narrow AI-led rally persisted and led to the market results reflected in the preceding table. Although the impact of the Magnificent Seven moderated, stocks with high beta, momentum and growth characteristics driven by AI dominated equity returns. For the full year Liberty All-Star^® Equity Fund returned 8.80 percent when shares are valued at net asset value (NAV) with dividends reinvested and -0.11 percent when shares are valued at market price with dividends reinvested. (Fund returns are net of expenses.) Both measures of return trailed key benchmarks, including the Fund’s primary benchmark, the Lipper Large-Cap Mutual Fund Average, which returned 15.31 percent. For the fourth quarter, Fund shares valued at NAV returned 0.84 percent while shares valued at market price returned 1.79 percent, both with dividends reinvested. The primary Lipper benchmark returned 2.23 percent.

While the Fund underperformed the S&P 500 Index for both periods, it should be pointed out that this widely-followed index is capitalization weighted (“cap weighted”), meaning that index components are weighted by their total market value, so larger companies have a bigger impact on the index's performance. At year end the top 10 stocks in the S&P 500 Index accounted for 41 percent of the index, an unprecedented level that many would say is not representative of a diversified portfolio. We have commented in previous reports that this concentration, including the Magnificent Seven stocks and similar mega-cap names, have driven index returns and make for a very narrow and concentrated market—the opposite of the approach followed by a diversified, multi-managed fund such as Liberty All-Star^® Equity Fund.

The Fund’s market price return lagged behind the NAV return for the full year. This was due in large part to the increase in the discount at which Fund shares traded relative to their underlying NAV. For the year, Fund shares traded in a range from a 1.2 percent premium to NAV to a discount of as much as -10.4 percent; for comparison, in 2024 Fund shares traded in a range from a premium of 0.8 percent to a discount of -5.8 percent.

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Liberty All-Star^® Equity Fund

President's Letter

(Unaudited)

In accordance with the Fund’s distribution policy, the Fund paid a distribution of $0.17 per share in the fourth quarter. The Fund’s distribution policy has been in place since 1988 and is a major component of the Fund’s total return. The Fund has paid distributions of $31.67 per share for a total of more than $4.0 billion since 1987 (the Fund’s first full calendar year of operations). We continue to emphasize that shareholders should include these distributions when determining the total return on their investment in the Fund.

We are pleased to once again offer our shareholders a view into the Fund’s five investment managers’ approach to stock selection and their assessment of the 2025 market and outlook on AI and its potential impacts over the next 12 to 18 months. Our annual Manager Roundtable begins on page 13.

On a daily basis, year-in, year-out, we at ALPS Advisors constantly monitor each manger and the overall composition of the Fund in comparison to the stock market overall and the economic, business and geopolitical environment in which we operate. We would like to report better relative performance for 2025, but we believe the fundamental pillars underlying the Fund’s investment objectives, strategy and structure that have been applied for many years meet the industry’s highest standards and are consistent with our commitment to shareholders. When market breadth improves a diversified portfolio of quality stocks will be rewarded again. We thank you for your continued support of the Fund as 2026 marks the 40th anniversary of the Fund’s founding in 1986.

Sincerely,

Mark T. Haley, CFA

President

Liberty All-Star^® Equity Fund

The views expressed in the President’s Letter, Unique Fund Attributes and Manager Roundtable reflect the current views of the respective parties and may not reflect their views on the date this report is first published or anytime thereafter. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions, and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for the Fund are based on numerous factors, may not be relied on as an indication of trading intent. References to specific company securities should not be construed as a recommendation or investment advice.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

President's Letter

(Unaudited)

FUND STATISTICS AND SHORT-TERM PERFORMANCE

PERIODS ENDED DECEMBER 31, 2025

FUND STATISTICS:
Net Asset Value (NAV)	$6.84
Market Price	$6.28
Discount	-8.2%

	Quarter	2025
Distributions*	$0.17	$0.67
Market Price Trading Range	$5.80 to $6.47	$5.64 to $7.34
Premium/(Discount) Range	-7.6% to -10.4%	1.2% to -10.4%

PERFORMANCE:
Shares Valued at NAV with Dividends Reinvested	0.84%	8.80%
Shares Valued at Market Price with Dividends Reinvested	1.79%	-0.11%
Dow Jones Industrial Average	4.03%	14.92%
Lipper Large-Cap Core Mutual Fund Average	2.23%	15.31%
NASDAQ Composite Index	2.72%	21.14%
S&P 500^® Index	2.66%	17.88%
S&P 500^® Equal Weight Index	1.39%	11.43%

All 2025 distributions consist of ordinary dividends and long-term capital gains. A breakdown of each 2025 distribution for federal income tax purposes can be found in the table on page 46.

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Liberty All-Star^® Equity Fund

President's Letter

(Unaudited)

LONG-TERM PERFORMANCE SUMMARY	ANNUALIZED RATES OF RETURN
AND DISTRIBUTIONS PERIODS ENDED DECEMBER 31, 2025	3 YEARS	5 YEARS	10 YEARS
LIBERTY ALL-STAR^® EQUITY FUND
Distributions	$1.99	$3.49	$6.50
Shares Valued at NAV with Dividends Reinvested	16.10%	9.16%	11.84%
Shares Valued at Market Price with Dividends Reinvested	14.15%	8.73%	12.50%
Dow Jones Industrial Average	15.36%	11.58%	13.11%
Lipper Large-Cap Core Mutual Fund Average	20.76%	12.71%	13.46%
NASDAQ Composite Index	31.43%	13.35%	17.66%
S&P 500^® Index	23.01%	14.42%	14.82%
S&P 500^® Equal Weight Index	12.76%	10.48%	11.71%

Performance returns for the Fund are calculated assuming all distributions are reinvested at actual reinvestment prices and all primary rights in the Fund's rights offering were exercised. Returns are net of management fees and other Fund expenses.

The returns shown for the Lipper Large-Cap Core Mutual Fund Average are based on open-end mutual funds’ total returns, which include dividends, and are net of fund expenses. Returns for the unmanaged Dow Jones Industrial Average, NASDAQ Composite Index and the S&P 500^® Indexes are total returns, including dividends. A description of the Lipper benchmark and the market indexes can be found on page 63.

Past performance cannot predict future results. Performance will fluctuate with market conditions. Current performance may be lower or higher than the performance data shown. Performance information does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of Fund shares. An investment in the Fund involves risk, including loss of principal.

Closed-end funds raise money in an initial public offering and shares are listed and traded on an exchange. Open-end mutual funds continuously issue and redeem shares at net asset value. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the Fund’s shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Unique Fund Attributes

(Unaudited)

UNIQUE ATTRIBUTES OF Liberty All-Star^® Equity Fund

Several attributes help to make the Fund a core equity holding for investors seeking diversification, income and the potential for long-term appreciation.

	MULTI-MANAGEMENT FOR INDIVIDUAL INVESTORS

	Liberty All-Star^® Equity Fund is multi-managed, an investment discipline that is followed by large institutional investors to diversify their portfolios. In 1986, Liberty All-Star^® Equity Fund became the first closed-end fund to bring multi-management to individual investors.

	REAL-TIME TRADING AND LIQUIDITY

	The Fund has a fixed number of shares that trade on the New York Stock Exchange and other exchanges. Share pricing is continuous—not just end-of-day, as it is with open-end mutual funds. Fund shares offer immediate liquidity, there are no annual sales fees and can often be traded commission free.

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Liberty All-Star^® Equity Fund

Unique Fund Attributes

(Unaudited)

	ACCESS TO INSTITUTIONAL MANAGERS

	The Fund’s investment managers invest primarily for pension funds, endowments, foundations and other institutions. Because institutional managers are closely monitored by their clients, they tend to be more disciplined and consistent in their investment process.

	MONITORING AND REBALANCING

	ALPS Advisors continuously monitors these investment managers to ensure that they are performing as expected and adhering to their style and strategy, and will replace managers when warranted. Periodic rebalancing maintains the Fund’s structural integrity and is a well-recognized investment discipline.

	ALIGNMENT AND OBJECTIVITY

	Alignment with shareholders’ best interests and objective decision-making help to ensure that the Fund is managed openly and equitably. In addition, the Fund is governed by a Board of Trustees that is elected by and responsible to shareholders.

	DISTRIBUTION POLICY

	Since 1988, the Fund has followed a policy of paying annual distributions on its shares at a rate that approximates historical equity market returns. The current annual distribution rate is 10 percent of the Fund’s net asset value (paid quarterly at 2.5 percent per quarter), providing a systematic mechanism for distributing funds to shareholders.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Table of Distributions, Tax Credits
and Rights Offerings

(Unaudited)

		RIGHTS OFFERINGS
YEAR	PER SHARE DISTRIBUTIONS	MONTH COMPLETED	SHARES NEEDED TO PURCHASE ONE ADDITIONAL SHARE	SUBSCRIPTION PRICE	TAX CREDITS¹
1987	$1.18
1988	0.64
1989	0.95
1990	0.90
1991	1.02
1992	1.07	April	10	$10.05
1993	1.07	October	15	10.41	$0.18
1994	1.00	September	15	9.14
1995	1.04
1996	1.18				0.13
1997	1.33				0.36
1998	1.40	April	20	12.83
1999	1.39
2000	1.42
2001	1.20
2002	0.88	May	10	8.99
2003	0.78
2004	0.89	July	10²	8.34
2005	0.87
2006	0.88
2007	0.90	December	10	6.51
2008	0.65
2009³	0.31
2010	0.31
2011	0.34
2012	0.32
2013	0.35
2014	0.39
2015⁴	0.51
2016	0.48
2017⁵	0.56
2018	0.68
2019	0.66
2020	0.63
2021	0.81	November	10²	7.78
2022	0.69
2023	0.61
2024	0.71
2025	0.67
Total	$31.67

The Fund’s net investment income and net realized capital gains exceeded the amount to be distributed under the Fund’s distribution policy. In each case, the Fund elected to pay taxes on the undistributed income and passed through a proportionate tax credit to shareholders.

The number of shares offered was increased by an additional 25 percent to cover a portion of the over-subscription requests.

Effective with the second quarter distribution, the annual distribution rate was changed from 10 percent to 6 percent.

⁴

Effective with the second quarter distribution, the annual distribution rate was changed from 6 percent to 8 percent.

⁵

Effective with the fourth quarter distribution, the annual distribution rate was changed from 8 percent to 10 percent.

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Liberty All-Star^® Equity Fund

Investment Growth
and Distribution Policy

(Unaudited)

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT

The graph below illustrates the growth of a hypothetical $10,000 investment assuming the purchase of shares of beneficial interest at the closing market price on December 31, 2015, and tracking its progress through December 31, 2025. This assumes that a shareholder reinvested all distributions at actual reinvestment prices and exercised all primary rights in the Fund's rights offering excluding the cost to exercise of $2,591.

Past performance cannot predict future results. Performance will fluctuate with changes in market conditions. Current performance may be lower or higher than the performance data shown. Performance information does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of Fund shares. An investment in the Fund involves risk, including loss of principal.

DISTRIBUTION POLICY

The current policy is to pay distributions on its shares totaling approximately 10 percent of its net asset value per year, payable in four quarterly installments of 2.5 percent of the Fund’s net asset value at the close of the New York Stock Exchange on the Friday prior to each quarterly declaration date. Sources of distributions to shareholders may include ordinary dividends, long-term capital gains and return of capital. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholder 1099-DIV forms after the end of the year. If the Fund’s ordinary dividends and long-term capital gains for any year exceed the amount distributed under the distribution policy, the Fund may, in its discretion, retain and not distribute capital gains and pay income tax thereon to the extent of such excess.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Stock Changes in the Quarter

December 31, 2025 (Unaudited)

The following are the largest ($5 million or more) stock changes - both purchases and sales - that were made in the Fund’s portfolio during the fourth quarter of 2025.

	SHARES
SECURITY NAME	PURCHASE (SALES)	HELD AS OF 12/31/25
PURCHASES
Accenture Ltd.	56,694	56,694
Arch Capital Group, Ltd.	88,113	88,113
Broadcom Inc.	16,206	87,669
Oracle Corp.	20,769	20,769
Welltower, Inc.	30,063	30,063
SALES
BlackRock, Inc.	(6,007)	0
CarMax, Inc.	(236,081)	0
Ferguson Enterprises, Inc.	(25,056)	90,849
ServiceNow, Inc.	(8,887)	157,971^*

Adjusted for stock split.

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Liberty All-Star^® Equity Fund

Top 20 Holdings and Economic Sectors

December 31, 2025(Unaudited)

TOP 20 HOLDINGS*	PERCENT OF NET ASSETS
NVIDIA Corp.	4.89%
Microsoft Corp.	4.42
Alphabet, Inc.	4.05
Amazon.com, Inc.	2.57
Capital One Financial Corp.	2.30
Meta Platforms, Inc.	1.65
Visa, Inc.	1.64
Charles Schwab Corp.	1.49
Wells Fargo & Co.	1.48
Broadcom Inc.	1.47
Fresenius Medical Care AG	1.31
S&P Global, Inc.	1.25
ServiceNow, Inc.	1.17
Synopsys, Inc.	1.16
CVS Health Corp.	1.13
Parker-Hannifin Corp.	1.13
Sony Group Corp.	1.11
UnitedHealth Group, Inc.	1.11
Booking Holdings, Inc.	1.10
Baxter International, Inc.	1.00
	37.43%

ECONOMIC SECTORS*	PERCENT OF NET ASSETS
Information Technology	24.37%
Financials	19.33
Health Care	13.48
Consumer Discretionary	10.54
Industrials	10.18
Communication Services	6.81
Materials	4.81
Consumer Staples	4.77
Energy	2.00
Utilities	1.28
Real Estate	0.53
Other Net Assets	1.90
	100.00%

Because the Fund is actively managed, there can be no guarantee that the Fund will continue to hold securities of the indicated issuers and sectors in the future.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Investment Managers/
Portfolio Characteristics

(Unaudited)

THE FUND’S ASSETS ARE APPROXIMATELY EQUALLY DISTRIBUTED AMONG THREE VALUE MANAGERS AND TWO GROWTH MANAGERS:

ALPS Advisors, Inc., the investment advisor to the Fund, has the ultimate authority (subject to oversight by the Board of Trustees) to oversee the investment managers and recommend their hiring, termination and replacement.

MANAGERS’ DIFFERING INVESTMENT STRATEGIES

ARE REFLECTED IN PORTFOLIO CHARACTERISTICS

The portfolio characteristics table below is a regular feature of the Fund’s shareholder reports. It serves as a useful tool for understanding the value of a multi-managed portfolio. The characteristics are different for each of the Fund’s five investment managers. These differences are a reflection of the fact that each pursues a different investment style. The shaded column highlights the characteristics of the Fund as a whole, while the final column shows portfolio characteristics for the S&P 500^® Index.

	INVESTMENT STYLE SPECTRUM
PORTFOLIO CHARACTERISTICS	VALUE				GROWTH
AS OF DECEMBER 31, 2025						Total	S&P 500^®
	Pzena	Fiduciary	Aristotle	Sustainable	TCW	Fund	Index
Number of Holdings	32	27	43	28	28	137*	503
Percent of Holdings in Top 10	46%	51%	35%	53%	65%	26%	41%
Weighted Average Market Capitalization (billions)	$85	$312	$393	$1,292	$1,867	$795	$1,435
Average Five-Year Earnings Per Share Growth	2%	15%	11%	15%	21%	12%	17%
Dividend Yield	2.5%	1.6%	1.8%	0.7%	0.3%	1.4%	1.2%
Price/Earnings Ratio**	19x	23x	21x	34x	43x	26x	29x
Price/Book Value Ratio	1.5x	3.6x	2.7x	6.5x	8.8x	3.1x	5.2x

Certain holdings are held by more than one manager.

Excludes negative earnings.

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Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

MANAGER ROUNDTABLE

The stock market has seemed one dimensional in recent years, as it has been propelled almost singlehandedly by artificial intelligence. But hints of broadening surfaced in 2025 and going forward AI itself may be a factor behind greater participation by more stocks.

Liberty All-Star^® Equity Fund’s five investment managers possess considerable experience, deep knowledge, proven track records and diversified points of view given that they represent both value and growth styles of investing. Looking at the equity market in 2025, two questions—both related to realized and expected growth of artificial intelligence (AI)—were top of mind for investors: Is the market overvalued? Will the market broaden? There are no simple yes or no answers to questions like these, but with value and growth styles being represented by Fund managers, this year’s Roundtable is an opportunity to explore the nuances. The Fund’s Investment Advisor, ALPS Advisors, serves as moderator of the roundtable. Participating investment management firms, the portfolio manager for each and their respective styles and strategies are:

ARISTOTLE CAPITAL MANAGEMENT, LLC

Portfolio Manager/Gregory Padilla, CFA

Portfolio Manager and Managing Partner

Investment Style/Value – Aristotle seeks to invest in high quality companies that it believes are selling at a significant discount to their intrinsic value and where catalysts exist that will lead to a realization by the market of this true value. Aristotle practices a fundamental, bottom-up research-driven process and invests with a long-term perspective.

FIDUCIARY MANAGEMENT, INC.

Portfolio Manager/Jonathan Bloom

Chief Investment Officer and Portfolio Manager

Investment Style/Value – Fiduciary utilizes a business owner’s approach to investing by thoroughly examining the economics of the business and the quality of the management team, seeking to invest in durable business franchises that are selling at a discount to their underlying value.

PZENA INVESTMENT MANAGEMENT, LLC

Portfolio Manager/Daniel Babkes

Principal and Portfolio Manager

Investment Style/Value – Pzena uses fundamental research and a disciplined process to identify good companies with a sustainable business advantage that the firm believes are undervalued on the basis of current price to an estimated normal level of earnings.

SUSTAINABLE GROWTH ADVISERS, LP

Portfolio Manager/Kishore Rao

Principal and Portfolio Manager

Investment Style/Growth—Sustainable focuses on companies that have unique characteristics that lead to a high degree of predictability, strong profitability and above-average earnings and cash flow growth over the long term.

TCW INVESTMENT MANAGEMENT COMPANY

Portfolio Manager/Bo Fifer, CFA

Managing Director and Portfolio Manager

Investment Style/Growth – TCW invests in companies that have superior sales growth, leading and/ or rising market shares, and high and/or rising profit margins. TCW’s concentrated growth equity strategy seeks companies with distinct advantages in their business model.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

Index concentration and valuation hung over the stock market throughout 2025. But as long as there are more buyers than sellers, stocks will rise regardless, suggesting more emotion than discipline on the part of some investors. Experienced investment managers adhering to their buy/sell disciplines should be able to mitigate such a risk. Can you describe your decision-making process when purchasing a new holding or adding to an existing one, and how you decide it’s time to sell or trim a position? Greg, get us started for the value managers.

Padilla (Aristotle – Value): We often say that if we are willing to own one share, we should be willing to own the entire business. In practice, this means that we must develop high conviction before investing and if we develop said conviction we express it by entering at a full weight, which is typically 2.0 to 2.5 percent. We then act as if we own the entire business and our default is to do little to no trimming or adding, except on risk controls as our maximum position size is 6 percent.

Most managers of active equity strategies, especially those with a value orientation, believe a stock that has appreciated significantly becomes riskier and should be trimmed or sold, and a stock that has declined significantly becomes less risky and should be “doubled down” upon. From our perspective, this is a misunderstanding of risk and can compound small mistakes into big ones by throwing good money after bad. While one must be cognizant of changes in valuation, we believe it is best to focus on the business and not the stock price. It takes discipline and patience to avoid the temptation to chase the short-term gratification of “declaring victory” by realizing a modest gain. It takes humility to avoid the temptation to “prove the market wrong” and continuously double down on a losing investment.

Dan, tell us about Pzena’s buy/sell disciplines.

Babkes (Pzena – Value): Pzena adheres to a strict, valuation-based decision-making process centered on price-to-normal earnings, P/N. Purchases for both new and existing positions are made when stocks fall into the cheapest P/N quintile of the investable universe due to what we deem to be temporary, not structural, headwinds, with a credible path to recovery. Our positions are continuously monitored over their holding periods, and our normal earnings estimates are always subject to revision based on updated information. We subsequently sell a position when its P/N valuation reaches the midpoint of its investable universe, indicating it is no longer a value stock.

Jonathan, round it out for the value managers, please.

Bloom (Fiduciary – Value): Fiduciary runs a concentrated portfolio, currently 27 stocks of our best ideas using a long-term time horizon. Our turnover is low, and we typically purchase four to six companies in a given calendar year. We focus on business quality, valuation, balance sheet strength and downside protection. When making investment decisions, we let the weight of the evidence from our bottom-up fundamental research drive the conclusion. Our Portfolio Management Committee discusses the merits of each new and existing investment idea, working through business quality attributes (competitive advantages, return on invested capital profile), valuation (discount to intrinsic value), cloud/controversy analysis, management quality and other factors. If a thesis remains intact, we will look to increase/decrease the position size as the margin of safety (discount) widens/narrows. Most often we sell due to valuation. Other reasons include poor capital allocation, a thesis change or better opportunity elsewhere. We approach each stock with a clean sheet of paper every day, comparing the relative investment case versus the portfolio and rest of the opportunity set.

14	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

That leads us to the growth managers. Bo, open up for TCW.

Fifer (TCW – Growth): We believe strong long-term performance can be achieved by participating in the growth and success of extraordinary businesses purchased at attractive valuations. When purchasing a new holding, we start by looking for companies competing in large and growing end markets, with defensible business models and wide competitive moats that we believe can compound earnings at a high rate over a multi-year investment horizon. To initiate a position, we need at least a 15 percent internal rate of return (IRR) on the security over five years. Each holding has two price targets— intermediate term and long term. We add to an existing holding when we believe there is a disconnect between company fundamentals and the current stock price. We trim a holding when the price has exceeded our intermediate term price target, but we believe there is still value over the long term. We completely exit a position when we believe the business model is impaired, the revenue opportunity is impaired or there is no longer sufficient upside to our long-term target.

Kishore, take us inside your process at Sustainable.

Rao (Sustainable – Growth): The first step in our process is to be very selective in company identification. We are focused on identifying and owning the rare businesses that generate predictable, sustainable earnings and cash flow growth over time with lower variability, across the growth spectrum. Once we have identified the few select companies that meet our quality characteristics—which are pricing power, repeat revenues, long runways of growth, management strength and financial strength—they are included on our qualified company list. From there we assess valuations and build the portfolio based on the most attractively valued growth opportunities. Given our portfolio limit of 30 stocks, we will frequently sell existing holdings to make room for new opportunities where growth and valuation are more attractive. Adding to or trimming existing positions is also based on the relative attractiveness of their growth opportunities and valuations. Positions are sold outright if our thesis breaks down, if there are better opportunities elsewhere or if valuation gets too high.

Good, thanks. Turning to 2025 specifically, large-cap growth stocks outperformed value stocks once again—but value stocks narrowed the return gap appreciably in the latter part of the year, raising the possibility of a rotation going forward. Make the case for your style—growth or value—over the next 12 to 18 months. Let’s stay with the growth managers and TCW.

Fifer (TCW – Growth): Growth has outperformed value in 13 of the past 17 years coming out of the Great Financial Crisis. The low-interest rate environment prevalent for much of the 2010s certainly helped growth stocks. Value got a boost in 2016 following the first fed funds interest rate hike in seven years, and again in 2022 following the rapid rise in rates as the Federal Reserve looked to stave off inflation. With the economy on semi-solid footing and two rate cuts already discounted for 2026, value stocks will likely have to look somewhere other than a rapid rate hike cycle for outperformance in the short term. The market, as measured by nearly every benchmark today, is being driven by several powerful secular tailwinds, including AI most notably. These growth markets are likely to continue fueling equity performance for some years.

"The market, as measured by nearly every benchmark today, is being driven by several powerful secular tailwinds, including AI most notably. These growth markets are likely to continue fueling equity performance for some years."

—Bo Fifer

(TCW – Growth)

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

Kishore, what’s Sustainable seeing as we move forward?

"We expect growth in AI infrastructure spending to slow given constraints on capital, power generation and labor. This poses a critical risk for cyclical and speculative trades as many of these stocks trade at historically high valuations."

—Kishore Rao

(Sustainable — Growth)

Rao (Sustainable – Growth): While growth stocks outperformed in 2025, the market backdrop was characterized by one of the most extreme momentum markets over the past seven decades. This was especially true following “Liberation Day” in April as subsequent market leadership was concentrated in lower-quality, more speculative and cyclically sensitive stocks. Nonprofitable tech stocks were among the market darlings while companies with defensive characteristics, stable margins, and reliable growth prospects underperformed by a wide margin. The cyclical trade was buoyed by the massive spending going into AI infrastructure, which accounted for roughly a quarter of U.S. GDP growth through the third quarter, leading investors to chase the immediate beneficiaries such as semiconductor and AI capital equipment stocks. Looking ahead, we expect growth in AI infrastructure spending to slow given constraints on capital, power generation and labor. This poses a critical risk for cyclical and speculative trades as many of these stocks trade at historically high valuations. While there might be some rotations between growth and value stocks moving forward, we see an especially strong opportunity for high-quality stocks, which have gone unrewarded in recent years and currently trade at very attractive relative valuations while benefiting from growth opportunities that expand beyond AI infrastructure spending.

Value managers, what’s your thesis for the intermediate term?

Babkes (Pzena – Value): The recent outperformance of growth stocks reflects an environment dominated by momentum. Historically, late-stage momentum has been a short-term headwind to value, but it has also tended to set the stage for value’s subsequent outperformance. After such momentum extremes, our research shows a clear divergence in returns between cheap and expensive stocks, with the cheapest quintile generating over 5 percent of annualized outperformance relative to the most expensive stocks over the subsequent five years. Although the timing of any leadership shift is uncertain, the recent narrowing of the performance gap suggests increasing sensitivity to fundamentals. From here, we believe the disconnect between price and underlying earnings power across many value stocks creates a favorable backdrop for disciplined value investing as fundamentals reassert themselves over time.

"The recent outperformance of growth stocks reflects an environment dominated by momentum. Historically, late-stage momentum has been a short-term headwind to value, but it has also tended to set the stage for value’s subsequent outperformance.”

—Daniel Babkes

(Pzena – Value)

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Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

Padilla (Aristotle – Value): Value investing is often associated with lower quality, but our philosophy is different. We look for high-quality companies whose current stock prices do not reflect our estimate of the intrinsic value of the enterprises. We believe that by sticking to companies with excellent balance sheets, strong cash flow and proven, predictable business models, we can not only outperform growth stocks when value is in “favor,” but can be quite competitive even when growth is leading the way. Historically, quality companies, those with higher profitability and less debt to name just two attributes, outperform. In 2025, according to Bank of America, quality was the worst-performing style with low-quality outperforming high-quality by more than eight percentage points. We believe recent results provide an attractive entry point for quality-value oriented styles.

“We believe that by sticking to companies with excellent balance sheets, strong cash flow and proven business models, we can not only outperform growth stocks when value is in 'favor,' but can be competitive even when growth is leading the way.”

—Gregory Padilla (Aristotle – Value)

“Growth stocks have bled into the value benchmarks, with 251 overlapping companies between the Russell 1000^® Growth and Russell 1000^® Value indexes.”

—Jonathan Bloom

(Fiduciary – Value)

Bloom (Fiduciary – Value): Growth stocks have bled into the value benchmarks, with 251 overlapping companies between the Russell 1000^® Growth and Russell 1000^® Value indexes. In the second half of 2025, two-thirds of the performance of the Russell 1000^® Value Index was driven by companies with a price/earnings ratio greater than 25 times, which is not exactly “value.” Over one-third of the return of Russell 1000^® Value Index came from just 10 of these overlapping stocks, which gained over 40 percent on average.

Admittedly, growth has dominated in recent years. Fortunately for value investors, nothing goes straight up forever. Eventually, speculative behavior has consequences. Greed gets replaced by fear, and 10th decile valuations come under pressure, as downside protection is paramount. In the meantime, we follow our DNA: buy strong companies that make money, avoid stressed balance sheets, stay disciplined on valuation and keep it simple. While the market is less interested in our types of companies today, we view that as a historical anomaly. We continue to stay the course.

A final discussion point: The stocks of companies seen as key players in AI have powered major equity indexes higher for the past few years. As capabilities and applications expand, users of AI are expected to secure benefits ranging from lower costs to greater productivity to R&D breakthroughs. What are a couple of industries that you expect to start reaping tangible benefits from AI and is there a company in your portion of the Fund that you believe may be especially well positioned to benefit? We’ll mix it up: Let’s hear from Aristotle on the value side and TCW for growth.

Padilla (Aristotle – Value): Uber Technologies (UBER), the ride-hailing and delivery platform, is a company we added to the portfolio in April 2025 and is perhaps the most underappreciated AI beneficiary in our portfolio today. The company is embedding AI across its platform, powering rider-driver matching, dynamic pricing, routing and demand forecasting. These capabilities directly improve utilization, reduce wait times and increase trips per hour, translating into better unit economics and margin expansion.

We believe Uber is particularly compelling because it captures these benefits without the capital intensity associated with building large foundational AI models. Instead, Uber applies machine learning to an enormous proprietary dataset generated by more than 30 million trips per day, reinforcing its competitive advantage. AI is also helping lower overhead through automation in customer support. Over time, autonomous vehicle partnerships with Nvidia, Waymo and others, could further enhance economics, driving (pardon the pun!) Uber’s normalized cash earnings power higher.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

Fifer (TCW – Growth): AI will affect virtually all employees, companies, industries and sectors...eventually. Healthcare stands to benefit from AI by using AI agents to eliminate administrative waste and could produce total savings to the system of about $500 billion annually, which is roughly 10 percent of our annual national expenditure. More importantly, AI will save lives by designing treatments with better efficacy and fewer side effects, and by detecting diseases much earlier. We also see the restaurant of the future being powered by AI. The digital waiter will be an avatar on a tabletop display who takes our orders and transmits them to the kitchen, and—once again, eventually—a humanoid robot will deliver the order. In the real estate sector, we recently purchased Welltower (WELL). The company’s proprietary data science and machine learning platform is the first of its kind in the $378 trillion global commercial real estate sector. It’s making some of the most innovative use of AI we've ever seen.

Interesting, for certain…ride hailing, healthcare, dining and commercial real estate. What else? Let’s hear from Sustainable.

Rao (Sustainable – Growth): We believe generative AI will have profound benefits across industries and the broader economy over time. We see tangible use cases already across industries such as enterprise software, financial services, insurance and healthcare. Within enterprise software our long-time holding Salesforce (CRM) is well-positioned to benefit from AI developments as the company evolves from “software-as-a-service” to delivering “agents-as-a-service,” unlocking higher value-added functionalities and business impacts. This transformation may not only enhance the stickiness of their revenue streams but also deepen their strategic relevance to customers and lead to accelerating growth in coming years.

Pzena and Fiduciary, finish it up for us with the value perspective.

Babkes (Pzena – Value): We do not construct our portfolio based on thematic predictions about which industries will win the AI revolution. Our process is bottom-up, and we view AI as one of many factors that can influence long-term earnings power. That said, enthusiasm around AI has created polarized expectations, with perceived AI beneficiaries trading at elevated valuations and companies viewed as being disrupted priced at the opposite extreme. This latter group includes industries such as IT services and business process outsourcing, where AI is widely assumed to be deflationary as automation reduces traditional workloads. Our research suggests the impact is more nuanced, with AI-driven efficiency gains lowering delivery costs and enabling clients to pursue additional work and new use cases, rather than simply reduce spending.

In that context, within our portion of the Fund, Cognizant (CTSH), a global IT services company, is an example of how improving fundamentals can be overshadowed by industry-level concerns. The company is emerging from several years of company-specific execution challenges that pre-dated AI, with recent results showing progress in growth and margins. Despite this improvement, Cognizant’s valuation continues to reflect persistent concerns about AI-driven disruption across the industry. We own Cognizant not as an AI play, but as a value opportunity where those disruption concerns appear overstated relative to the company’s improving fundamentals.

18	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Manager Roundtable

(Unaudited)

Bloom (Fiduciary – Value): There are 42 AI-related stocks in the S&P 500^® Index, which today represent 45 percent of the index’s market cap. These stocks have accounted for a remarkable 78 percent of index returns, 66 percent of earnings growth and 71 percent of capital spending growth since ChatGPT launched in November 2022, per J.P. Morgan. Rather than chase popular AI-related stocks, Fiduciary purchases out-of-favor quality compounders trading at discount valuations.

We expect numerous financial services and IT software and services companies to benefit from AI. Accenture (ACN), the world’s leading IT consultant, is an example from our portfolio. While AI will cause deflationary pressure in parts of Accenture’s business—thus weighing on sentiment—we believe it will be more than offset by the work required for enterprises to adopt AI. The AI supplier landscape is increasingly fragmented, and corporate customers need significant help adopting these technologies at scale. We believe this will drive AI suppliers and customers into Accenture’s arms.

That wraps it up for this year’s Roundtable, and we want to thank each of the participants for their valuable insights. There’s a case to be made for both styles, value and growth, going forward. That suggests that greater diversification and market breadth may lie ahead.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (98.10%)
COMMUNICATION SERVICES (6.81%)
Diversified Telecommunication Services (0.39%)
Verizon Communications, Inc.		199,100	$	8,109,343

Entertainment (0.72%)
Netflix, Inc.^(a)		84,575		7,929,752
Spotify Technology SA^(a)		11,863		6,888,963
				14,818,715
Interactive Media & Services (5.70%)
Alphabet, Inc., Class A		63,598		19,906,174
Alphabet, Inc., Class C		202,672		63,598,473
Meta Platforms, Inc., Class A		51,507		33,999,256
				117,503,903
CONSUMER DISCRETIONARY (10.54%)
Automobile Components (1.62%)
Lear Corp.		134,405		15,402,813
Magna International, Inc., Class A^(b)		338,513		18,042,743
				33,445,556
Broadline Retail (2.57%)
Amazon.com, Inc.^(a)		229,547		52,984,038

Entertainment (1.11%)
Sony Group Corp.^(b)(c)		895,591		22,927,130

Hotels, Restaurants & Leisure (3.31%)
Aramark		497,736		18,346,549
Booking Holdings, Inc.		4,243		22,722,665
Chipotle Mexican Grill, Inc.^(a)		269,934		9,987,558
Yum! Brands, Inc.		113,375		17,151,370
				68,208,142
Household Durables (0.56%)
Lennar Corp., Class A		83,500		8,583,800
Newell Brands, Inc.		783,352		2,914,069
				11,497,869
Specialty Retail (0.81%)
Lowe's Cos., Inc.		32,400		7,813,583
O'Reilly Automotive, Inc.^(a)		99,089		9,037,908
				16,851,491
Textiles, Apparel & Luxury Goods (0.56%)
NIKE, Inc., Class B		121,134		7,717,447

See Notes to Financial Statements.

20	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (continued)
Textiles, Apparel & Luxury Goods (continued)
PVH Corp.^(b)		56,548	$	3,789,847
				11,507,294
CONSUMER STAPLES (4.77%)
Beverages (0.42%)
Coca-Cola Co.		124,600		8,710,786

Consumer Staples Distribution & Retail (1.70%)
Costco Wholesale Corp.		12,953		11,169,890
Dollar Tree, Inc.^(a)		94,185		11,585,697
SYSCO Corp.		167,234		12,323,473
				35,079,060
Food Products (0.84%)
McCormick & Co., Inc.		54,568		3,716,627
Tyson Foods, Inc., Class A		231,491		13,570,002
				17,286,629
Household Products (0.34%)
Procter & Gamble Co.		48,400		6,936,204

Multiline Retail (0.82%)
Dollar General Corp.		127,841		16,973,450

Personal Care Products (0.65%)
Unilever PLC^(b)(c)		203,328		13,297,651

ENERGY (2.00%)
Energy Equipment & Services (0.73%)
NOV, Inc.		441,864		6,906,334
SLB, Ltd.		209,488		8,040,150
				14,946,484
Oil, Gas & Consumable Fuels (1.27%)
Coterra Energy, Inc.		291,400		7,669,648
Shell PLC^(b)(c)		145,792		10,712,796
TotalEnergies SE^(b)		120,400		7,876,568
				26,259,012
FINANCIALS (19.33%)
Banks (4.92%)
Bank of America Corp.		282,564		15,541,020
Citigroup, Inc.		175,639		20,495,315
Cullen/Frost Bankers, Inc.^(b)		48,700		6,166,881
Mitsubishi UFJ Financial Group, Inc.^(b)(c)		600,000		9,516,000

See Notes to Financial Statements.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (continued)
Banks (continued)
PNC Financial Services Group, Inc.		42,200	$	8,808,406
U.S. Bancorp		193,800		10,341,168
Wells Fargo & Co.		327,128		30,488,329
				101,357,119
Capital Markets (4.21%)
Ameriprise Financial, Inc.		22,734		11,147,390
Blackstone Group LP		52,400		8,076,936
Charles Schwab Corp.		306,451		30,617,519
S&P Global, Inc.		49,377		25,803,926
UBS Group AG^(b)		242,844		11,246,106
				86,891,877
Consumer Finance (2.78%)
American Express Co.		26,554		9,823,652
Capital One Financial Corp.		195,918		47,482,687
				57,306,339
Financial Services (4.88%)
Berkshire Hathaway, Inc., Class B^(a)		27,132		13,637,900
Corebridge Financial, Inc.		391,221		11,803,137
Equitable Holdings, Inc.		116,546		5,553,417
Global Payments, Inc.		181,644		14,059,246
Mastercard, Inc., Class A		23,759		13,563,538
Visa, Inc., Class A		96,258		33,758,643
Voya Financial, Inc.		110,585		8,237,477
				100,613,358
Insurance (2.54%)
American International Group, Inc.		112,700		9,641,485
Aon PLC, Class A		32,998		11,644,334
Arch Capital Group, Ltd.^(a)		88,113		8,451,799
MetLife, Inc.		193,512		15,275,837
Progressive Corp.		32,215		7,336,000
				52,349,455
HEALTH CARE (13.48%)
Biotechnology (0.51%)
Amgen, Inc.		32,000		10,473,920

Health Care Equipment & Supplies (5.42%)
Alcon AG^(b)		89,800		7,077,138
Baxter International, Inc.^(b)		1,082,862		20,693,493
Becton Dickinson & Co.		87,612		17,002,861
Boston Scientific Corp.^(a)		103,640		9,882,074
Cooper Cos., Inc.^(a)		144,616		11,852,727

See Notes to Financial Statements.

22	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (continued)
Health Care Equipment & Supplies (continued)
IDEXX Laboratories, Inc.^(a)		5,031	$	3,403,622
Intuitive Surgical, Inc.^(a)		19,504		11,046,286
Koninklijke Philips NV^(b)		516,026		13,973,984
Medtronic PLC		174,331		16,746,236
				111,678,421
Health Care Providers & Services (5.22%)
CVS Health Corp.		294,840		23,398,503
Fresenius Medical Care AG^(c)		1,132,792		26,983,106
Humana, Inc.		77,649		19,888,238
Quest Diagnostics, Inc.		83,659		14,517,346
UnitedHealth Group, Inc.		69,440		22,922,838
				107,710,031
Life Sciences Tools & Services (0.88%)
Danaher Corp.		79,359		18,166,862

Pharmaceuticals (1.45%)
Bristol-Myers Squibb Co.		246,566		13,299,770
Merck & Co., Inc.		70,000		7,368,200
Pfizer, Inc.		367,153		9,142,110
				29,810,080
INDUSTRIALS (10.18%)
Aerospace & Defense (0.97%)
General Dynamics Corp.		27,100		9,123,486
General Electric Co.		35,539		10,947,078
				20,070,564
Building Products (2.37%)
Allegion PLC		80,611		12,834,884
Carlisle Cos., Inc.		19,273		6,164,662
Carrier Global Corp.		313,079		16,543,094
Masco Corp.		209,629		13,303,056
				48,845,696
Commercial Services & Supplies (1.25%)
Waste Connections, Inc.		39,197		6,873,586
Waste Management, Inc.		86,159		18,929,994
				25,803,580
Electrical Equipment (0.35%)
Eaton Corp. PLC		22,701		7,230,495

Ground Transportation (1.71%)
Canadian Pacific Kansas City, Ltd.^(b)		204,468		15,054,979

See Notes to Financial Statements.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (continued)
Ground Transportation (continued)
CSX Corp.		318,861	$	11,558,711
Uber Technologies, Inc.^(a)		105,503		8,620,650
				35,234,340
Machinery (1.44%)
Oshkosh Corp.^(b)		51,100		6,419,693
Parker-Hannifin Corp.		26,500		23,292,440
				29,712,133
Passenger Airlines (0.59%)
Delta Air Lines, Inc.		174,364		12,100,862

Trading Companies & Distributors (1.50%)
Ferguson Enterprises, Inc.		90,849		20,225,713
WW Grainger, Inc.		10,536		10,631,351
				30,857,064
INFORMATION TECHNOLOGY (24.37%)
Communications Equipment (0.33%)
Arista Networks, Inc.^(a)		52,550		6,885,626

Electronic Equipment & Instruments (0.21%)
TE Connectivity Ltd.		19,072		4,339,071

Electronic Equipment, Instruments & Components (0.97%)
CDW Corp.		81,917		11,157,095
Teledyne Technologies, Inc.^(a)		17,200		8,784,556
				19,941,651
IT Services (2.88%)
Accenture Ltd., Class A		56,694		15,211,000
Amdocs, Ltd.^(b)		132,812		10,692,694
Cognizant Technology Solutions Corp., Class A		180,764		15,003,412
Gartner, Inc.^(a)		35,184		8,876,220
Shopify, Inc., Class A^(a)(b)		58,970		9,492,401
				59,275,727
Semiconductors & Semiconductor Equipment (8.69%)
ARM Holdings PLC^(a)(b)(c)		73,320		8,014,609
ASML Holding N.V.		9,886		10,576,636
Broadcom Inc.		87,669		30,342,241
Microchip Technology, Inc.		121,100		7,716,492
NVIDIA Corp.		540,733		100,846,705
QUALCOMM, Inc.		61,500		10,519,575

See Notes to Financial Statements.

24	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (continued)
Semiconductors & Semiconductor Equipment (continued)
Skyworks Solutions, Inc.		175,874	$	11,152,170
				179,168,428
Software (10.65%)
Adobe, Inc.^(a)		22,500		7,874,775
Cadence Design Systems, Inc.^(a)		27,562		8,615,330
Crowdstrike Holdings, Inc., Class A^(a)		22,307		10,456,629
Intuit, Inc.		27,235		18,041,009
Microsoft Corp.		188,429		91,128,033
Oracle Corp.		20,769		4,048,086
Palo Alto Networks, Inc.^(a)		46,807		8,621,849
Salesforce, Inc.		57,503		15,233,120
ServiceNow, Inc.^(a)		157,971		24,199,578
Synopsys, Inc.^(a)		50,750		23,838,290
Tyler Technologies, Inc.^(a)		16,417		7,452,497
				219,509,196
Technology Hardware, Storage & Equipment (0.64%)
Apple, Inc.		48,764		13,256,981

MATERIALS (4.81%)
Chemicals (3.25%)
Air Products & Chemicals, Inc.		28,336		6,999,559
Corteva, Inc.		196,900		13,198,207
Dow, Inc.		355,607		8,314,091
Ecolab, Inc.		67,585		17,742,414
PPG Industries, Inc.		128,530		13,169,184
RPM International, Inc.		73,800		7,675,200
				67,098,655
Construction Materials (0.58%)
Martin Marietta Materials, Inc.		19,200		11,955,072

Containers & Packaging (0.98%)
Avery Dennison Corp.		110,708		20,135,571

REAL ESTATE (0.53%)
Health Care REITs (0.27%)
Welltower, Inc.		30,063		5,579,994

Residential REITs (0.26%)
Equity LifeStyle Properties, Inc.		88,900		5,388,229

See Notes to Financial Statements.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

	SHARES		VALUE
COMMON STOCKS (continued)
UTILITIES (1.28%)
Electric Utilities (0.41%)
Xcel Energy, Inc.		115,200	$	8,508,672

Gas Utilities (0.49%)
Atmos Energy Corp.		60,264		10,102,054

Water Utilities (0.38%)
American Water Works Co., Inc.		59,900		7,816,950

TOTAL COMMON STOCKS
(COST OF $1,611,915,758)				2,022,516,830

SHORT TERM INVESTMENTS (8.34%)
MONEY MARKET FUND (3.11%)
State Street Institutional US Government Money Market Fund, Premier Class, 3.72%^(d)
(COST OF $64,200,983)		64,200,983		64,200,983

INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED (5.23%)
State Street Navigator Securities Lending Government Money Market Portfolio, 3.83%
(COST OF $107,849,978)		107,849,978		107,849,978

TOTAL SHORT TERM INVESTMENTS
(COST OF $172,050,961)				172,050,961

TOTAL INVESTMENTS (106.44%)
(COST OF $1,783,966,719)				2,194,567,791

LIABILITIES IN EXCESS OF OTHER ASSETS (-6.44%)				(132,827,005	)

NET ASSETS (100.00%)			$	2,061,740,786

NET ASSET VALUE PER SHARE
(301,551,615 SHARES OUTSTANDING)			$	6.84

See Notes to Financial Statements.

26	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Schedule of Investments

December 31, 2025

^(a)

Non-income producing security.

^(b)

Security, or a portion of the security position, is currently on loan. The total market value of securities on loan is $135,287,240.

^(c)

American Depositary Receipt.

^(d)

Rate reflects seven-day effective yield on December 31, 2025.

See Notes to Financial Statements.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Statement of Assets and Liabilities

December 31, 2025

ASSETS:
Investments at value (Cost $1,783,966,719)^(a)	$	2,194,567,791
Receivable for investment securities sold		5,100,607
Dividends and interest receivable		1,099,808
Tax reclaim receivable		277,696
Cash		41,112
Prepaid and other assets		7,507
TOTAL ASSETS		2,201,094,521

LIABILITIES:
Payable for collateral upon return of securities loaned		107,849,978
Distributions payable to shareholders		29,724,575
Investment advisory fee payable		1,155,611
Payable for administration, pricing and bookkeeping fees		279,669
Payable for investments purchased		183,262
Accrued expenses		160,640
TOTAL LIABILITIES		139,353,735
NET ASSETS	$	2,061,740,786

NET ASSETS REPRESENTED BY:
Paid-in capital	$	1,706,136,596
Total distributable earnings		355,604,190
NET ASSETS	$	2,061,740,786

Shares of common stock outstanding (unlimited number of shares of beneficial interest without par value authorized)		301,551,615
NET ASSET VALUE PER SHARE	$	6.84

^(a)

Includes securities on loan of $135,287,240.

See Notes to Financial Statements.

28	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Statement of Operations

For the Year Ended December 31, 2025

INVESTMENT INCOME:
Dividends (Net of foreign taxes withheld at source which amounted to $657,158)	$	30,125,351
Securities lending income		213,150
TOTAL INVESTMENT INCOME		30,338,501

EXPENSES:
Investment advisory fee		13,425,247
Administration, pricing and bookkeeping fees		3,244,458
Audit fee		23,594
Custodian fee		93,841
Insurance expense		85,306
Legal fees		197,300
NYSE fee		320,266
Proxy fees		121,235
Shareholder communication expenses		80,618
Transfer agent fees		148,328
Trustees' fees and expenses		491,492
Miscellaneous expenses		25,776
TOTAL EXPENSES		18,257,461
NET INVESTMENT INCOME		12,081,040

REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain on investment transactions		169,381,895
Net realized gain on foreign currency transactions		536
Net change in unrealized depreciation on investments		(13,569,531	)
Net change in unrealized appreciation on foreign currency transactions		3,193
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS		155,816,093
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	167,897,133

See Notes to Financial Statements.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Statements of Changes in Net Assets

	For the Year Ended December 31, 2025			For the Year Ended December 31, 2024
FROM OPERATIONS:
Net investment income	$	12,081,040		$	10,901,075
Net realized gain on investment transactions		169,382,431			189,989,262
Net change in unrealized appreciation/(depreciation) on investments		(13,566,338	)		54,442,629
Net Increase in Net Assets From Operations		167,897,133			255,332,966

DISTRIBUTIONS TO SHAREHOLDERS:
From distributable earnings		(196,658,142	)		(199,644,055	)
Total Distributions		(196,658,142	)		(199,644,055	)

CAPITAL SHARE TRANSACTIONS:
Dividend reinvestments		83,486,419			84,411,874
Net increase resulting from Capital Share Transactions		83,486,419			84,411,874
Total Increase in Net Assets		54,725,410			140,100,785

NET ASSETS:
Beginning of year		2,007,015,376			1,866,914,591
End of year	$	2,061,740,786		$	2,007,015,376

See Notes to Financial Statements.

30	www.all-starfunds.com

Intentionally Left Blank

Liberty All-Star^® Equity Fund

Financial Highlights

PER SHARE OPERATING PERFORMANCE:

Net asset value at beginning of year

INCOME FROM INVESTMENT OPERATIONS:

Net investment income^(a)

Net realized and unrealized gain/(loss) on investments

Total from Investment Operations

LESS DISTRIBUTIONS TO SHAREHOLDERS:

Net investment income

Net realized gain on investments

Return of capital

Total Distributions

Change due to rights offering^(b)

Net asset value at end of year

Market price at end of year

TOTAL INVESTMENT RETURN FOR SHAREHOLDERS:^(c)

Based on net asset value

Based on market price

RATIOS AND SUPPLEMENTAL DATA:

Net assets at end of period (millions)

Ratio of expenses to average net assets

Ratio of net investment income to average net assets

Portfolio turnover rate

^(a)

Calculated using average shares outstanding during the period.

^(b)

Effect of Fund's rights offering for shares at a price below net asset value, net of costs.

^(c)

Calculated assuming all distributions are reinvested at actual reinvestment prices and all primary rights in the Fund's rights offerings were exercised. The net asset value and market price returns will differ depending upon the level of any discount from or premium to net asset value at which the Fund's shares traded during the period. Past performance is not a guarantee of future results.

See Notes to Financial Statements.

32	www.all-starfunds.com

Financial Highlights

For the Year Ended December 31,
2025			2024			2023			2022			2021
$	6.95		$	6.75		$	5.90		$	8.20		$	7.37

	0.04			0.04			0.04			0.03			0.02
	0.52			0.87			1.42			(1.64	)		1.67
	0.56			0.91			1.46			(1.61	)		1.69

	(0.05	)		(0.12	)		(0.07	)		(0.03	)		(0.02	)
	(0.62	)		(0.59	)		(0.54	)		(0.37	)		(0.74	)
	–			–			–			(0.29	)		(0.05	)
	(0.67	)		(0.71	)		(0.61	)		(0.69	)		(0.81	)
	–			–			–			–			(0.05	)
$	6.84		$	6.95		$	6.75		$	5.90		$	8.20
$	6.28		$	6.95		$	6.38		$	5.70		$	8.38

	8.8	%		14.1	%		26.1	%		(20.1	%)		24.0	%
	(0.1	%)		20.7	%		23.4	%		(24.5	%)		35.3	%

$	2,062		$	2,007		$	1,867		$	1,566		$	2,084
	0.91	%		0.90	%		0.93	%		0.93	%		0.93	%
	0.60	%		0.55	%		0.60	%		0.52	%		0.23	%
	22	%		25	%		23	%		23	%		22	%

See Notes to Financial Statements.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

NOTE 1. ORGANIZATION

Liberty All-Star^® Equity Fund (the “Fund”) is a Massachusetts business trust registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as a diversified, closed-end management investment company.

Investment Goal

The Fund seeks total investment return comprised of long-term capital appreciation and current income through investing primarily in a diversified portfolio of equity securities.

Fund Shares

The Fund may issue an unlimited number of shares of beneficial interest.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The Fund is considered an investment company under U.S. generally accepted accounting principles (“GAAP”) and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946 Financial Services - Investment Companies. In regards to Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), the Chief Operating Decision Maker (“CODM”) monitors the operating results of the Fund as a whole. The Fund's Treasurer is the CODM for the Fund. The Fund’s financial information is used by the CODM to assess each segment’s performance. The CODM has determined that the Fund is a single operating segment as defined by ASU 2023-07 that recognizes revenues and incurs expenses. This is supported by the single investment strategy of the Fund, against which the CODM assesses performance.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.

Security Valuation

Equity securities are valued at the last sale price at the close of the principal exchange on which they trade, except for securities listed on the NASDAQ Stock Market LLC (“NASDAQ”), which are valued at the NASDAQ official closing price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets.

Cash collateral from securities lending activity is reinvested in the State Street Navigator Securities Lending Government Money Market Portfolio (“State Street Navigator”), a registered investment company under the 1940 Act, which operates as a money market fund in compliance with Rule 2a-7 under the 1940 Act. Shares of registered investment companies are valued daily at that investment company’s net asset value ("NAV") per share.

34	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

The Fund’s investments are valued at market value or, in the absence of market value with respect to any portfolio securities, at fair value according to procedures adopted by the Fund's Board of Trustees (the "Board"). The Board has designated ALPS Advisors, Inc. (the "Advisor" or "AAI") as the Fund's Valuation Designee (as defined in Rule 2a-5 under the 1940 Act). The Valuation Designee is responsible for determining fair value in good faith for all Fund investments, subject to oversight by the Board. When market quotations are not readily available, or in management’s judgment they do not accurately reflect fair value of a security, or an event occurs after the market close but before the Fund is priced that materially affects the value of a security, the security will be valued by the Advisor’s Valuation Committee using fair valuation procedures established by the Valuation Designee. Examples of potentially significant events that could materially impact a Fund’s net asset value include, but are not limited to: single issuer events such as corporate actions, reorganizations, mergers, spin-offs, liquidations, acquisitions and buyouts; corporate announcements on earnings or product offerings; regulatory news; and litigation and multiple issuer events such as governmental actions; natural disasters or armed conflicts that affect a country or a region; or significant market fluctuations. Potential significant events are monitored by the Advisor, Sub-Advisers and/or the Valuation Committee through independent reviews of market indicators, general news sources and communications from the Fund’s custodian.

Security Transactions

Security transactions are recorded on trade date. Cost is determined and gains/(losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

Income Recognition

Interest income is recorded on the accrual basis. Corporate actions are recorded on the ex-date.

Dividend income is recognized on the ex-dividend date, or for certain foreign securities, as soon as information is available to the Fund. Withholding taxes on foreign dividends are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country’s tax rules and rates and are disclosed in the Statement of Operations.

The Fund estimates components of distributions from real estate investment trusts (“REITs”). Distributions received in excess of income are recorded as a reduction of the cost of the related investments. Once the REIT reports annually the tax character of its distributions, the Fund revises its estimates. If the Fund no longer owns the applicable securities, any distributions received in excess of income are recorded as realized gains.

Lending of Portfolio Securities

The Fund may lend its portfolio securities only to borrowers that are approved by the Fund’s securities lending agent, State Street Bank & Trust Co. (“SSB”). The Fund will limit such lending to not more than 30% of the value of its total assets. The borrower pledges and maintains with the Fund collateral consisting of cash (U.S. Dollar only), securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, or by irrevocable bank letters of credit issued by a person other than the borrower or an affiliate of the borrower. The initial collateral received by the Fund is required to have a value of no less than 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of no less than 105% of the market value for all other securities. The collateral is maintained thereafter, at a market value equal to no less than 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

Any cash collateral received is reinvested in State Street Navigator. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is not disclosed in the Fund’s Statement of Assets and Liabilities or the contractual maturity table below as it is held by the lending agent on behalf of the Fund and the Fund does not have the ability to re-hypothecate these securities. Income earned by the Fund from securities lending activity is disclosed in the Statement of Operations.

The following is a summary of the Fund's securities lending positions and related cash and non-cash collateral received as of December 31, 2025:

Market Value of Securities on Loan				Cash Collateral Received				Non-Cash Collateral Received				Total Collateral Received
$	135,287,240			$	107,849,978			$	31,569,208			$	139,419,186

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by SSB. SSB’s indemnity allows for full replacement of securities lent wherein SSB will purchase the unreturned loaned securities on the open market by applying the proceeds of the collateral, or to the extent such proceeds are insufficient or the collateral is unavailable, SSB will purchase the unreturned loan securities at SSB’s expense. However, the Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged or securities loaned, and the remaining contractual maturity of those transactions as of December 31, 2025:

	Remaining contractual maturity of the agreements
Securities Lending Transactions	Overnight & Continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
State Street Navigator	$	107,849,978	$	–	$	–	$	–	$	107,849,978
Total Borrowings									$	107,849,978
Gross amount of recognized liabilities for securities lending (collateral received)									$	107,849,978

Fair Value Measurements

The Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

36	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

Valuation techniques used to value the Fund’s investments by major category are as follows:

Equity securities that are valued based on unadjusted quoted prices in active markets are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the mean of the most recent quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy. Investments in open-end mutual funds are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.

Various inputs are used in determining the value of the Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.

These inputs are categorized in the following hierarchy under applicable financial accounting standards:

Level 1 –	Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date;

Level 2 –	Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and

Level 3 –	Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2025:

	Valuation Inputs
Investments in Securities at Value	Level 1		Level 2		Level 3		Total
Common Stocks*	$	2,022,516,830	$	–	$	–	$	2,022,516,830
Short Term Investments		172,050,961		–		–		172,050,961
Total	$	2,194,567,791	$	–	$	–	$	2,194,567,791

See Schedule of Investments for industry classifications.

The Fund did not have any securities that used significant unobservable inputs (Level 3) in determining fair value during the period. There were no transfers into or out of Level 3 during the year ended December 31, 2025.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

Distributions to Shareholders

The Fund currently has a policy of paying distributions on its shares of beneficial interest totaling approximately 10% of its net asset value per year. The distributions are payable in four quarterly distributions of 2.5% of the Fund’s net asset value at the close of the New York Stock Exchange on the Friday prior to each quarterly declaration date. Distributions to shareholders are recorded on ex-date.

NOTE 3. RISKS

Investment and Market Risk

An investment in shares is subject to investment risk, including the possible loss of the entire amount invested. An investment in shares represents an indirect investment in the securities owned by the Fund, most of which are anticipated to be traded on a national securities exchange or in the over-the-counter markets. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. Shares at any point in time may be worth less than their original cost, even after taking into account the reinvestment of dividends and other distributions.

Common Stock Risk

The Fund is not limited in the percentage of its assets that may be invested in common stocks and other equity securities, and therefore a risk of investing in the Fund is common stock or equity risk. Equity risk is the risk that the market value of securities held by the Fund will fall due to general market or economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, and the particular circumstances and performance of particular companies whose securities the Fund holds. In addition, common stock of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common equity securities in which the Fund will invest are structurally subordinated to preferred stocks, bonds and other debt instruments in a company’s capital structure, in terms of priority to corporate income, and therefore will be subject to greater payment risk than preferred stocks or debt instruments of such issuers. In addition, while broad market measures of common stocks have historically generated higher average returns than fixed income securities, common stocks have also experienced significantly more volatility in their returns.

Growth stocks are stocks of companies believed to have above-average potential for growth in revenue and earnings. In certain market conditions, prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as the stock market in general.

Foreign Currency Risk

Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments insecurities at fiscal period end, resulting from changes in exchange rates.

38	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

Market Disruption and Geopolitical Risk

Social, political, and economic events, such as natural disasters and health emergencies (e.g., epidemics and pandemics, such as the COVID-19 outbreak), ongoing U.S military activities and political developments, as well as the threat of terrorist attacks, could have significant adverse effects on the U.S. economy, the stock market, world economies and markets generally, and may lead to volatility in the value of the Fund’s investments. These types of events may develop quickly and unexpectedly and could significantly impact issuers, industries, governments and other systems, including financial markets. Global systems are increasingly interconnected, and an event in one area of the world may have adverse effects in other economies and financial markets. It is difficult to predict the timing or duration of an event, or its impact on the Fund and its shareholders.

NOTE 4. FEDERAL TAX INFORMATION AND TAX BASIS INFORMATION

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. If, for any calendar year, the total distributions made under the distribution policy exceed the Fund’s net investment income and net realized capital gains, the excess will generally be treated as a non-taxable return of capital, reducing the shareholder’s adjusted basis in his or her shares. If the Fund’s net investment income and net realized capital gains for any year exceed the amount distributed under the distribution policy, the Fund may, in its discretion, retain and not distribute net realized capital gains and pay income tax thereon to the extent of such excess. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations.

Classification of Distributions to Shareholders

Net investment income/(loss) and net realized gain/(loss) may differ for financial statement and tax purposes. The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. Due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Fund. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are determined at the time in which distributions are paid, which may occur after the fiscal year end.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

The tax character of distributions paid during the years ended December 31, 2025 and December 31, 2024 were as follows:

Distributions Paid From:	December 31, 2025		December 31, 2024
Ordinary Income	$	19,939,145	$	34,268,902
Long-term capital gains		163,414,020		169,011,893
Total	$	183,353,165	$	203,280,795

The Fund declared a distribution of $50,685,313 with an ex-date in 2025 that was paid in 2026 and is not included above. The tax character of this distribution will be determined at the end of 2026.

The Fund declared a distribution of $51,436,733 with an ex-date in 2024 that was paid in 2025. $37,380,336 of this distribution is included above. The tax character of this distribution was determined in the current fiscal year.

As of December 31, 2025, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income				Accumulated Capital Losses				Net Unrealized Appreciation				Other Cumulative Effect of Timing Differences				Total
$	–			$	(1,898,392	)		$	408,179,302			$	(50,676,720	)		$	355,604,190

The other cumulative effect of timing differences in the components of distributable earnings is related to the difference in timing of the distributions payable for financial statement and tax purposes.

The Fund elects to defer to the period ending December 31, 2026, capital losses recognized during the period November 1, 2025 through December 31, 2025 in the amount of $1,898,392.

As of December 31, 2025, the cost of investments for federal income tax purposes and accumulated net unrealized appreciation/(depreciation) on investments was as follows:

Cost of Investments				Gross unrealized Appreciation (excess of value over tax cost)				Gross unrealized Depreciation (excess of tax cost over value)				Unrealized Appreciation on Foreign Currencies				Net Unrealized Appreciation
$	1,786,391,699			$	542,297,071			$	(134,120,979	)		$	3,210			$	408,179,302

The differences between book-basis and tax-basis are primarily due to deferral of losses from wash sales and the differing treatment of certain other investments.

Federal Income Tax Status

For federal income tax purposes, the Fund currently qualifies, and intends to remain qualified, as a regulated investment company under the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, by distributing substantially all of its investment company taxable net income including realized gain, not offset by capital loss carryforwards, if any, to its shareholders. Accordingly, no provision for federal income or excise taxes has been made.

40	www.all-starfunds.com

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

As of and during the year ended December 31, 2025, the Fund did not have a liability for any unrecognized tax benefits. The Fund files U.S. federal, state, and local tax returns as required. The Fund’s tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

NOTE 5. FEES AND COMPENSATION PAID TO AFFILIATES

Investment Advisory Fee

AAI serves as the investment advisor to the Fund. AAI receives a monthly investment advisory fee based on the Fund’s average daily net assets at the following annual rates:

Average Daily Net Assets	Annual Fee Rate
First $400 million	0.800%
Next $400 million	0.720%
Next $400 million	0.648%
Over $1.2 billion	0.584%

Investment Advisory Fees for the year ended December 31, 2025 are reported on the Statement of Operations.

AAI retains multiple Portfolio Managers to manage the Fund’s investments in various asset classes. AAI pays each Portfolio Manager a portfolio management fee based on the assets of the investment portfolio that they manage. The portfolio management fee is paid from the investment advisory fees collected by AAI and is based on the Fund’s average daily net assets at the following annual rates:

Average Daily Net Assets	Annual Fee Rate
First $400 million	0.400%
Next $400 million	0.360%
Next $400 million	0.324%
Over $1.2 billion	0.292%

Administration, Bookkeeping and Pricing Services

ALPS Fund Services, Inc. (“ALPS”), an affiliate of AAI, serves as the administrator to the Fund and the Fund has agreed to pay expenses incurred in connection with this service. Pursuant to an Administrative, Bookkeeping and Pricing Services Agreement, ALPS provides operational services to the Fund including, but not limited to, fund accounting and fund administration and generally assists in the Fund’s operations. The Fund’s administration fee is accrued on a daily basis and paid monthly. Administration, Pricing and Bookkeeping fees paid by the Fund for the year ended December 31, 2025 are disclosed in the Statement of Operations.

The Fund also reimburses ALPS for out-of-pocket expenses and charges, including fees payable to third parties for pricing the Fund’s portfolio securities and direct internal costs incurred by ALPS in connection with providing fund accounting oversight and monitoring and certain other services.

Annual Report | December 31, 2025

Liberty All-Star^® Equity Fund

Notes to Financial Statements

December 31, 2025

Fees Paid to Officers

All officers of the Fund, including the Fund’s Chief Compliance Officer, are employees of AAI or its affiliates, and receive no compensation from the Fund. The Board of Trustees has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations.

NOTE 6. PORTFOLIO INFORMATION

Purchases and Sales of Securities

For the year ended December 31, 2025, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $438,071,510 and $533,177,889, respectively.

NOTE 7. CAPITAL TRANSACTIONS

During the years ended December 31, 2025 and December 31, 2024, distributions in the amounts of $83,486,419 and $84,411,874, respectively, were paid in newly issued shares valued at market value or net asset value, but not less than 95% of market value. Such distributions resulted in the issuance of 12,651,928 and of 12,311,548 shares, respectively.

Under the Fund’s Automatic Dividend Reinvestment and Direct Purchase Plan (the “Plan”), shareholders automatically participate and have all their Fund dividends and distributions reinvested. Under the Plan, all dividends and distributions will be reinvested in additional shares of the Fund. Distributions declared payable in cash will be reinvested for the accounts of participants in the Plan in additional shares purchased by the Plan Agent on the open market at prevailing market prices, subject to certain limitations as described more fully in the Plan. Distributions declared payable in shares are paid to participants in the Plan entirely in newly issued full and fractional shares valued at the lower of market value or net asset value per share on the valuation date for the distribution (but not at a discount of more than 5 percent from market price). Dividends and distributions are subject to taxation, whether received in cash or in shares.

NOTE 8. INDEMNIFICATION

In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Fund’s organizational documents and by contract, the Trustees and Officers of the Fund are indemnified against certain liabilities that may arise out of their duties to the Fund. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be minimal.

NOTE 9. SUBSEQUENT EVENTS

Subsequent events, if any, after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has determined that there were no subsequent events to report through the issuance of these financial statements.

42	www.all-starfunds.com

Liberty All-Star^®Equity Fund

Report of Independent Registered
Public Accounting Firm

To the Shareholders and Board of Trustees of Liberty All-Star^® Equity Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Liberty All-Star^® Equity Fund (the “Fund”) as of December 31, 2025, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2025, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

The Fund’s financial highlights for the year ended December 31, 2021, were audited by other auditors whose report dated February 25, 2022, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more investment companies advised by ALPS Advisors, Inc. since 2013.

COHEN & COMPANY, LTD.

Cleveland, Ohio

February 26, 2026

Annual Report | December 31, 2025

Liberty All-Star^®Equity Fund

Automatic Dividend Reinvestment
and Direct Purchase Plan

(Unaudited)

Under the Fund’s Automatic Dividend Reinvestment and Direct Purchase Plan (the “Plan”), shareholders automatically participate and have all their Fund dividends and distributions reinvested by Computershare Trust Company, N.A., as agent for participants in the Plan (the “Plan Agent”), in additional shares of the Fund. For further information, call Investor Assistance at 1-800-LIB-FUND (1-800-542-3863) weekdays between 9 a.m. and 5 p.m. Eastern Time.

Shareholders whose shares are held in the name of a brokerage firm, bank or other nominee can participate in the Plan only if their brokerage firm, bank or nominee is able to do so on their behalf. Shareholders participating in the Plan through a brokerage firm may not be able to transfer their shares to another brokerage firm and continue to participate in the Plan.

Under the Plan, all dividends and distributions will be reinvested in additional shares of the Fund. Distributions declared payable in cash will be reinvested for the accounts of participants in the Plan in additional shares purchased by the Plan Agent on the open market at prevailing market prices. If, prior to the Plan Agent’s completion of such open market purchases, the market price of a share plus estimated brokerage commissions exceeds the net asset value, the remainder of the distribution will be paid in newly issued shares valued at net asset value (but not at a discount of more than 5% from market price). Distributions declared payable in shares (or cash at the option of shareholders) are paid to participants in the Plan entirely in newly issued full and fractional shares valued at the lower of market value or net asset value per share on the valuation date for the distribution (but not at a discount of more than 5 percent from market price). Dividends and distributions are subject to taxation, whether received in cash or in shares.

Plan participants have the option of making additional investments of $100 or more on a monthly basis up to a maximum of $120,000 in a calendar year. These direct purchases will be invested on or shortly after the 15th of each month and direct purchases should be sent so as to be received by the Plan Agent at least two business days prior to the next investment date. Barring suspension of trading, direct purchases will be invested within 35 days after such date. Alternatively, participants can authorize an automatic monthly deduction from a checking or savings account at a U.S. bank or other financial institution. A participant may withdraw a direct purchase by written notice received by the Plan Agent at least two business days before such payment is to be invested.

The Plan Agent maintains all shareholder accounts in the Plan and furnishes confirmations of all transactions in the account, including information needed by shareholders for tax records. Shares in the account of each Plan participant will be held by the Plan Agent in book-entry or noncertificated form in the name of the participant, and each shareholder’s proxy will include those shares purchased or received pursuant to the Plan.

SEC Form N-CSR filed by Liberty All-Star Equity Fund