UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-04809

LIBERTY ALL-STAR EQUITY FUND
(Exact name of registrant as specified in charter)

1290 Broadway, Suite 1100, Denver, Colorado 80203
(Address of principal executive offices) (Zip code)

Sareena Khwaja-Dixon
ALPS Fund Services, Inc.
1290 Broadway, Suite 1100
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: September 30, 2017


Item 1 – Schedule of Investments.
 
Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)
 
   
SHARES
   
MARKET VALUE
 
COMMON STOCKS (97.77%)
           
CONSUMER DISCRETIONARY (11.83%)
 
Automobiles (0.59%)
 
Ford Motor Co.
   
631,580
   
$
7,560,012
 
                 
Hotels, Restaurants & Leisure (2.20%)
 
Chipotle Mexican Grill, Inc.(a)
   
24,602
     
7,573,234
 
Hilton Worldwide Holdings, Inc.
   
74,166
     
5,150,829
 
Starbucks Corp.
   
285,340
     
15,325,611
 
             
28,049,674
 
Household Durables (0.52%)
 
Lennar Corp., Class A
   
125,000
     
6,600,000
 
                 
Internet & Direct Marketing Retail (2.98%)
 
Amazon.com, Inc.(a)
   
20,022
     
19,248,150
 
The Priceline Group, Inc.(a)
   
10,253
     
18,771,397
 
             
38,019,547
 
Media (1.09%)
 
The Interpublic Group of Cos., Inc.
   
128,075
     
2,662,679
 
News Corp., Class A
   
305,600
     
4,052,256
 
Omnicom Group, Inc.
   
97,893
     
7,250,935
 
             
13,965,870
 
Multiline Retail (0.59%)
 
Dollar Tree, Inc.(a)
   
87,200
     
7,570,704
 
                 
Specialty Retail (3.12%)
 
The Home Depot, Inc.
   
54,000
     
8,832,240
 
Lowe's Companies, Inc.
   
203,748
     
16,287,615
 
The TJX Companies, Inc.
   
106,470
     
7,850,033
 
Ulta Beauty, Inc.(a)
   
30,254
     
6,839,219
 
             
39,809,107
 
Textiles, Apparel & Luxury Goods (0.74%)
 
NIKE, Inc., Class B
   
183,095
     
9,493,476
 
                 
CONSUMER STAPLES (6.70%)
 
Beverages (0.90%)
 
The Coca-Cola Co.
   
113,700
     
5,117,637
 
Monster Beverage Corp.(a)
   
115,700
     
6,392,425
 
             
11,510,062
 
Food & Staples Retailing (2.72%)
 
Costco Wholesale Corp.
   
40,075
     
6,583,922
 
CVS Health Corp.
   
136,345
     
11,087,575
 
The Kroger Co.
   
200,600
     
4,024,036
 
Walgreens Boots Alliance, Inc.
   
83,100
     
6,416,982
 

Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)
 
   
SHARES
   
MARKET VALUE
 
COMMON STOCKS (continued)
           
Food & Staples Retailing (continued)
 
Wal-Mart Stores, Inc.
   
84,200
   
$
6,579,388
 
             
34,691,903
 
Food Products (2.55%)
 
Archer-Daniels-Midland Co.
   
266,300
     
11,320,413
 
Mondelez International, Inc., Class A
   
523,678
     
21,292,748
 
             
32,613,161
 
Personal Products (0.53%)
 
Unilever NV
   
114,000
     
6,730,560
 
                 
ENERGY (8.77%)
 
Energy Equipment & Services (2.51%)
 
Core Laboratories NV(b)
   
68,945
     
6,804,872
 
Halliburton Co.
   
384,770
     
17,710,963
 
Schlumberger Ltd.
   
107,592
     
7,505,618
 
             
32,021,453
 
Oil, Gas & Consumable Fuels (6.26%)
 
BP PLC(c)
   
126,501
     
4,861,433
 
Cenovus Energy, Inc.
   
580,200
     
5,813,604
 
Chevron Corp.
   
64,200
     
7,543,500
 
Concho Resources, Inc.(a)
   
27,204
     
3,583,311
 
ConocoPhillips
   
159,300
     
7,972,965
 
EQT Corp.
   
74,800
     
4,879,952
 
Exxon Mobil Corp.
   
61,486
     
5,040,622
 
Marathon Oil Corp.
   
612,010
     
8,298,856
 
Murphy Oil Corp.
   
143,075
     
3,800,072
 
Occidental Petroleum Corp.
   
116,500
     
7,480,465
 
Phillips 66
   
74,500
     
6,824,945
 
Pioneer Natural Resources Co.
   
28,600
     
4,219,644
 
Royal Dutch Shell PLC, Class A(c)
   
159,229
     
9,646,093
 
             
79,965,462
 
FINANCIALS (17.23%)
 
Banks (6.16%)
 
Banco Bilbao Vizcaya Argentaria SA(b)(c)
   
810,000
     
7,225,200
 
Bank of America Corp.
   
672,041
     
17,029,519
 
BB&T Corp.
   
159,300
     
7,477,542
 
BOK Financial Corp.
   
44,400
     
3,955,152
 
Citigroup, Inc.
   
146,006
     
10,620,476
 
Cullen/Frost Bankers, Inc.
   
38,000
     
3,606,960
 
East West Bancorp, Inc.
   
20,225
     
1,209,051
 
First Republic Bank
   
31,302
     
3,269,807
 
JPMorgan Chase & Co.
   
130,783
     
12,491,084
 
Mitsubishi UFJ Financial Group, Inc.(b)(c)
   
650,000
     
4,186,000
 

Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)
 
   
SHARES
   
MARKET VALUE
 
COMMON STOCKS (continued)
           
Banks (continued)
 
Wells Fargo & Co.
   
137,987
   
$
7,609,983
 
             
78,680,774
 
Capital Markets (5.58%)
 
Ameriprise Financial, Inc.
   
52,000
     
7,722,520
 
Bank of New York Mellon Corp.
   
140,000
     
7,422,800
 
The Charles Schwab Corp.
   
149,300
     
6,530,382
 
Franklin Resources, Inc.
   
168,889
     
7,517,249
 
The Goldman Sachs Group, Inc.
   
35,709
     
8,469,818
 
Morgan Stanley
   
174,645
     
8,412,650
 
S&P Global, Inc.
   
20,900
     
3,266,879
 
State Street Corp.
   
170,485
     
16,288,137
 
UBS Group AG
   
325,600
     
5,584,040
 
             
71,214,475
 
Consumer Finance (0.98%)
 
Capital One Financial Corp.
   
147,440
     
12,482,270
 
                 
Diversified Financial Services (0.64%)
 
Voya Financial, Inc.
   
205,650
     
8,203,379
 
                 
Insurance (3.87%)
 
The Allstate Corp.
   
82,200
     
7,555,002
 
American International Group, Inc.
   
112,956
     
6,934,369
 
Axis Capital Holdings Ltd.
   
89,225
     
5,113,485
 
Brighthouse Financial, Inc.(a)
   
10,531
     
640,285
 
Chubb Ltd.
   
108,859
     
15,517,850
 
Marsh & Mclennan Cos., Inc.
   
90,900
     
7,618,329
 
MetLife, Inc.
   
115,850
     
6,018,407
 
             
49,397,727
 
HEALTH CARE (15.97%)
 
Biotechnology (3.67%)
 
AbbVie, Inc.
   
92,000
     
8,175,120
 
Alexion Pharmaceuticals, Inc.(a)
   
39,600
     
5,555,484
 
Amgen, Inc.
   
31,500
     
5,873,175
 
BioMarin Pharmaceutical, Inc.(a)
   
62,873
     
5,851,590
 
Celgene Corp.(a)
   
89,821
     
13,097,698
 
Regeneron Pharmaceuticals, Inc.(a)
   
18,636
     
8,332,529
 
             
46,885,596
 
Health Care Equipment & Supplies (2.50%)
 
Abbott Laboratories
   
140,200
     
7,481,072
 
Baxter International, Inc.
   
141,700
     
8,891,675
 
Danaher Corp.
   
82,000
     
7,033,960
 
Medtronic PLC
   
86,200
     
6,703,774
 

Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)
 
   
SHARES
   
MARKET VALUE
 
COMMON STOCKS (continued)
           
Health Care Equipment & Supplies (continued)
 
West Pharmaceutical Services, Inc.
   
18,400
   
$
1,771,184
 
             
31,881,665
 
Health Care Providers & Services (4.62%)
 
Acadia Healthcare Co., Inc.(a)(b)
   
226,293
     
10,807,754
 
Cardinal Health, Inc.
   
104,600
     
6,999,832
 
Cigna Corp.
   
29,625
     
5,538,097
 
Express Scripts Holding Co.(a)
   
190,404
     
12,056,381
 
McKesson Corp.
   
48,431
     
7,439,486
 
Quest Diagnostics, Inc.
   
71,900
     
6,732,716
 
UnitedHealth Group, Inc.
   
48,410
     
9,481,099
 
             
59,055,365
 
Health Care Technology (0.75%)
 
Cerner Corp.(a)
   
133,617
     
9,529,564
 
                 
Life Sciences Tools & Services (0.25%)
 
Illumina, Inc.(a)
   
16,395
     
3,265,884
 
                 
Pharmaceuticals (4.18%)
 
Allergan PLC
   
22,334
     
4,577,353
 
Johnson & Johnson
   
54,900
     
7,137,549
 
Merck & Co., Inc.
   
113,300
     
7,254,599
 
Mylan NV(a)
   
271,736
     
8,524,359
 
Novartis AG(c)
   
68,000
     
5,837,800
 
Novo Nordisk AS(c)
   
185,081
     
8,911,650
 
Pfizer, Inc.
   
207,400
     
7,404,180
 
Zoetis, Inc.
   
58,100
     
3,704,456
 
             
53,351,946
 
INDUSTRIALS (5.73%)
 
Aerospace & Defense (1.80%)
 
General Dynamics Corp.
   
38,000
     
7,812,040
 
Northrop Grumman Corp.
   
27,100
     
7,797,212
 
Raytheon Co.
   
39,800
     
7,425,884
 
             
23,035,136
 
Commercial Services & Supplies (0.91%)
 
Waste Connections, Inc.
   
56,750
     
3,970,230
 
Waste Management, Inc.
   
97,200
     
7,607,844
 
             
11,578,074
 
Machinery (1.70%)
 
Dover Corp.
   
92,275
     
8,433,012
 
Oshkosh Corp.
   
97,000
     
8,006,380
 
Parker-Hannifin Corp.
   
15,070
     
2,637,552
 
Stanley Black & Decker, Inc.
   
17,198
     
2,596,382
 
             
21,673,326
 

Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)

   
SHARES
   
MARKET VALUE
 
COMMON STOCKS (continued)
           
Professional Services (0.29%)
 
TransUnion(a)
   
78,500
   
$
3,709,910
 
                 
Road & Rail (0.67%)
 
J.B. Hunt Transport Services, Inc.
   
77,118
     
8,566,267
 
                 
Trading Companies & Distributors (0.36%)
 
Fastenal Co.
   
101,600
     
4,630,928
 
                 
INFORMATION TECHNOLOGY (22.98%)
 
Communications Equipment (0.59%)
 
Cisco Systems, Inc.
   
225,300
     
7,576,839
 
                 
Internet Software & Services (4.18%)
 
Alphabet, Inc., Class C(a)
   
28,284
     
27,127,467
 
Facebook, Inc., Class A(a)
   
153,916
     
26,299,627
 
             
53,427,094
 
IT Services (6.19%)
 
Alliance Data Systems Corp.
   
32,507
     
7,201,926
 
Automatic Data Processing, Inc.
   
53,161
     
5,811,560
 
Cognizant Technology Solutions Corp., Class A
   
123,305
     
8,944,545
 
FleetCor Technologies, Inc.(a)
   
67,119
     
10,388,008
 
Mastercard, Inc., Class A
   
42,100
     
5,944,520
 
PayPal Holdings, Inc.(a)
   
231,190
     
14,803,096
 
Visa, Inc., Class A
   
246,364
     
25,927,347
 
             
79,021,002
 
Semiconductors & Semiconductor Equipment (1.26%)
 
Intel Corp.
   
197,200
     
7,509,376
 
Microchip Technology, Inc.
   
95,000
     
8,529,100
 
             
16,038,476
 
Software (9.64%)
 
Adobe Systems, Inc.(a)
   
135,706
     
20,244,621
 
ANSYS, Inc.(a)
   
47,000
     
5,768,310
 
Autodesk, Inc.(a)
   
72,713
     
8,162,761
 
CA, Inc.
   
211,600
     
7,063,208
 
Micro Focus International PLC(a)(b)(c)
   
73,220
     
2,335,718
 
Microsoft Corp.
   
112,000
     
8,342,880
 
Oracle Corp.
   
322,100
     
15,573,535
 
Red Hat, Inc.(a)
   
77,181
     
8,556,286
 
Salesforce.com, Inc.(a)
   
246,217
     
23,001,592
 
SAP SE(b)(c)
   
71,204
     
7,807,519
 
ServiceNow, Inc.(a)
   
75,581
     
8,883,035
 
Splunk, Inc.(a)
   
111,629
     
7,415,514
 
             
123,154,979
 

Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)
 
   
SHARES
   
MARKET VALUE
 
COMMON STOCKS (continued)
           
Technology Hardware, Storage & Peripherals (1.12%)
 
Hewlett Packard Enterprise Co.
   
533,187
   
$
7,843,181
 
HP, Inc.
   
234,400
     
4,678,624
 
Seagate Technology PLC
   
53,050
     
1,759,668
 
             
14,281,473
 
MATERIALS (3.29%)
 
Chemicals (2.74%)
 
Air Products & Chemicals, Inc.
   
23,800
     
3,599,036
 
DowDuPont, Inc.
   
205,631
     
14,235,834
 
Ecolab, Inc.
   
78,105
     
10,045,084
 
PPG Industries, Inc.
   
66,000
     
7,171,560
 
             
35,051,514
 
Construction Materials (0.55%)
 
Martin Marietta Materials, Inc.
   
34,100
     
7,032,443
 
                 
REAL ESTATE (2.83%)
 
Equity Real Estate Investment Trusts (2.83%)
 
American Tower Corp.
   
92,850
     
12,690,738
 
Equinix, Inc.
   
36,766
     
16,408,666
 
Equity Residential
   
106,800
     
7,041,324
 
             
36,140,728
 
TELECOMMUNICATION SERVICES (1.19%)
 
Diversified Telecommunication Services (1.19%)
 
AT&T, Inc.
   
196,300
     
7,689,071
 
Verizon Communications, Inc.
   
153,000
     
7,571,970
 
             
15,261,041
 
UTILITIES (1.25%)
 
Electric Utilities (0.55%)
 
Edison International
   
91,200
     
7,037,904
 
                 
Gas Utilities (0.43%)
 
National Fuel Gas Co.
   
97,000
     
5,491,170
 
                 
Independent Power and Renewable Electricity Producers (0.27%)
 
AES Corp.
   
307,000
     
3,383,140
 
                 
TOTAL COMMON STOCKS
         
(COST OF $1,008,821,432)
     
1,248,641,080
 

Liberty All-Star® Equity Fund
Schedule of Investments

As of September 30, 2017 (Unaudited)
 
   
SHARES
   
MARKET VALUE
 
SHORT TERM INVESTMENTS (2.97%)
           
MONEY MARKET FUND (2.21%)
 
State Street Institutional U.S. Government Money Market Fund, 0.93%(d)
           
(COST OF $28,200,491)
   
28,200,491
   
$
28,200,491
 
                 
INVESTMENTS PURCHASED WITH COLLATERAL FROM SECURITIES LOANED (0.76%)
               
State Street Navigator Securities Lending Government Money Market Portfolio, 1.02%
               
(COST OF $9,681,113)
   
9,681,113
     
9,681,113
 
               
TOTAL SHORT TERM INVESTMENTS
         
(COST OF $37,881,604)
     
37,881,604
 
               
TOTAL INVESTMENTS (100.74%)
         
(COST OF $1,046,703,036)
     
1,286,522,684
 
               
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.74%)
     
(9,463,792
)
               
NET ASSETS (100.00%)
   
$
1,277,058,892
 
               
NET ASSET VALUE PER SHARE
         
(192,004,410 SHARES OUTSTANDING)
   
$
6.65
 
 
(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 $16,155,315.
(c)
American Depositary Receipt.
(d)
Rate reflects seven-day effective yield on September 30, 2017.
 
See Notes to Schedule of Investments.

Liberty All-Star® Equity Fund
Notes to Schedule of Investments

September 30, 2017 (Unaudited)
 
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, a registered investment company under the Investment Company Act of 1940 (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 per share.

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"). 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 Fund's Valuation Committee using fair valuation procedures established by the Board. 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, ALPS Advisors, Inc. (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. As of September 30, 2017, the Fund held no securities that were fair valued.

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 and dividend income are recorded on the ex-date.
 
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.


Liberty All-Star® Equity Fund
Notes to Schedule of Investments

September 30, 2017 (Unaudited)
 
Any cash collateral received is reinvested in a money market fund managed by SSB as disclosed in the Fund's Schedule of Investments. 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 Schedule of Investments 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.

The following is a summary of the Fund's securities lending positions and related cash and non-cash collateral received as of September 30, 2017:

Market Value of
Securities
on Loan
   
Cash
Collateral Received
   
Non-Cash
Collateral
Received
   
Total
Collateral Received
 
$
16,155,315
   
$
9,681,113
   
$
6,726,675
   
$
16,407,788
 

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.

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.

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 quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy. Investments in shares of registered investment companies are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.


Liberty All-Star® Equity Fund
Notes to Schedule of Investments

September 30, 2017 (Unaudited)
 
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 September 30, 2017:
 
   
Valuation Inputs
       
Investments in Securities at Value*
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
 
$
1,248,641,080
   
$
   
$
   
$
1,248,641,080
 
Short Term Investment
   
28,200,491
     
     
     
28,200,491
 
Investments Purchased with Collateral from Securities Loaned
   
9,681,113
     
     
     
9,681,113
 
Total
 
$
1,286,522,684
   
$
   
$
   
$
1,286,522,684
 
 
*
See Schedule of Investments for industry classifications.
 
The Fund recognizes transfers between levels as of the end of the period. For the nine months ended September 30, 2017, the Fund did not have any transfers between Level 1 and Level 2 securities. The Fund did not have any securities which used significant unobservable inputs (Level 3) in determining fair value during the period.

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.

Item 2 - Controls and Procedures.

(a)
The registrant's Principal Executive Officer and Principal Financial Officer have evaluated the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date.

(b)
There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) during registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3 – Exhibits.

Separate certifications for the registrant's Principal Executive Officer and Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Ex99.CERT.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
LIBERTY ALL-STAR EQUITY FUND
 
 
 
 
 
 
By:
/s/ William Parmentier
 
 
 
William Parmentier
 
 
 
President (principal executive officer)
 
 
 
 
 
 
Date: November 17, 2017
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By: /s/ William Parmentier
 
 
 
William Parmentier
 
 
 
President (principal executive officer)
 
 
 
 
 
 
Date: November 17, 2017
 
 
 
 
 
 
By: /s/ Kimberly Storms
 
 
 
Kimberly Storms
 
 
 
Treasurer (principal financial officer)
 
 
 
 
 
 
Date: November 17, 2017