DEF: Liberty All-Star Funds 2026 Proxy Statement

The Liberty All-Star Equity and Growth Funds have issued a proxy statement for their 2026 Joint Annual Meeting to vote on new portfolio management agreements and board elections.

Summary

• The Equity Fund is seeking shareholder approval for a new Portfolio Management Agreement with Loomis, Sayles & Company, L.P., which replaced Sustainable Growth Advisers, LP on June 15, 2026.
• The Equity Fund is electing two Trustees to three-year terms.
• The Growth Fund is electing two Directors to three-year terms.
• The Equity Fund will incur approximately $315,000 in additional costs related to the proxy solicitation for the new sub-adviser agreement.
• The meeting is scheduled for August 26, 2026, in Boston, Massachusetts.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine administrative and governance filing related to sub-adviser changes and board elections, which is neutral for the funds' long-term investment thesis.

Positives

• The new sub-advisory agreement with Loomis Sayles maintains the same fee structure as the previous agreement.
• The Board believes the hiring of Loomis Sayles will enhance the investment style mix and complement existing portfolio managers.
• Loomis Sayles has demonstrated a favorable performance record relative to the Russell 1000 Growth Index and the previous manager.

Negatives

• The Equity Fund will incur $315,000 in additional costs for proxy solicitation due to the change in sub-advisers.
• Increased portfolio turnover may occur during the transition between sub-advisers, potentially leading to higher transaction costs and capital gains taxes.

Risks

• Failure to obtain shareholder approval for the new Portfolio Management Agreement will result in the termination of the agreement and require the reallocation of assets, causing further costs and portfolio turnover.
• Uncertainty exists regarding the applicability of the Maryland Business Control Share Acquisition Act following a Massachusetts court decision.
• Market volatility and changing investor preferences may impact the effectiveness of the multi-manager methodology.

Future Outlook

The Funds intend to continue their multi-manager methodology, seeking consistent and less volatile performance over the long term by blending different investment styles.

Management Comments

• The Boards of Trustees/Directors unanimously recommend that shareholders vote FOR all proposals.
• ALPS Advisors believes the Loomis Sayles growth investment style will better complement the philosophies of the Equity Fund's other portfolio managers.

Industry Context

StockSavvy.ai notes that the transition to a new sub-adviser for a closed-end fund is a standard but costly regulatory process, reflecting the industry's ongoing focus on optimizing manager performance and style diversification.

Comparison to Industry Standards

• The fee structure for the new sub-adviser is consistent with industry standards for similar large-cap growth mandates.
• The use of a multi-manager methodology is a common strategy among closed-end funds to mitigate volatility compared to single-manager approaches.

Corporate Governance

Stakeholder Impact

• Shareholders will bear the $315,000 cost of the proxy solicitation.
• Shareholders may experience potential tax implications due to portfolio turnover during the sub-adviser transition.

Next Steps

• Shareholders are urged to vote via proxy card, telephone, or internet prior to the August 26, 2026 meeting.
• The Equity Fund will proceed with the transition of assets to Loomis Sayles pending shareholder approval.

Key Dates

Keywords

Liberty All-Star Equity Fund, Liberty All-Star Growth Fund, Proxy Statement, Loomis Sayles, ALPS Advisors, Closed-end fund, Investment management