Anyone Familiar With Liberty All-Star Equity Fund (USA) ?

[ownyourfuture]

I have zero experience with closed-end funds.
If I was to purchase, it would be in a taxable account.
My goal would be simple.
Do better than the 0.01% cash is currently yielding at Fidelity.

Here’s the fund profile
https://www.all-starfunds.com/documents/liberty-all-star-equity-fund-fs-20210630.pdf

And a recent news release
https://finance.yahoo.com/news/liberty-star-equity-fund-announces-201500815.html

 

[braumeister]

With a closed-end fund, I would always want to buy it at a discount to its NAV. Currently that one is at a 3.54% premium to NAV, so I wouldn't be interested.

 

[ownyourfuture]

With a closed-end fund, I would always want to buy it at a discount to its NAV. Currently that one is at a 3.54% premium to NAV, so I wouldn't be interested.

Thanks for the reply/input.

 

[triangle]

With low interest rates, it seems many CEFs are trading at higher premiums or smaller discounts than before. If you have a long term outlook, it might be a good holding for you, but I would expect the share price to rise and fall along with the market.

I recently started a small position in the sister fund ASG (Liberty All-Star Growth Fund). I liked how its holdings had very little overlap with any individual stocks I already owned. I don't have any special insights here, just anticipating that interest rates will remain relatively low enough over coming months/years to avoid a big setback.

 

[pb4uski]

....My goal would be simple.
Do better than the 0.01% cash is currently yielding at Fidelity. ...

I'm not sure if you really understand what this investment is. It is simply an equity mutual fund that distributes 2.5% a quarter, but some of that distribution may be a return of capital. You could do better by just buying VTI and withdrawing 2.5% a quarter. According to Portfolio Visualizer, if you had invested $10k in each in Aug 2011 and withdrawn 2.5% quarterly, at the end of July 2021 you would have $11,850 left with XUSAX and $14,897 left with VTI. XUSAX has all the risk of equities.

https://www.portfoliovisualizer.com...location1_1=100&symbol2=VTI&allocation2_2=100

If it were me, and these are long-term holdings, I would consider PFF or investing in some recently issued investment grade preferred stocks like JPM-M (4.155% yield) or FRC-M (4.000% yield) or MGRD (4.248%) or RNR-G (4.102%). YMMV.

https://innovativeincomeinvestor.com/new-preferred-stock-and-baby-bonds-since-12-2020/