The Liberty All-Star Growth Fund is a group that invests money in different things to make more money. They announced they will give some of the extra money they made to their investors, but instead of giving cash, they will give them more shares of the fund. This means if you own more shares, you own a bigger part of the fund and can benefit from its growth. Read from source...
1. The title is misleading and does not reflect the main content of the article. It implies that Liberty All-Star® Growth Fund, Inc. is declaring a regular or special distribution to its shareholders, but in reality, it is announcing a dividend reinvestment plan and issuing shares as a result. This creates confusion and false expectations for readers who may think that the fund is generating cash flows or returns for its investors.
2. The article does not provide any background information on the Liberty All-Star® Growth Fund, Inc., such as its objectives, strategies, performance, fees, etc. It assumes that the readers are already familiar with the fund and its history, which may not be the case for many potential or existing investors who want to learn more about it before making a decision.
3. The article uses vague and ambiguous terms such as "alified dividend income", "lower of the net asset value per share or market value per share" without explaining what they mean or how they are calculated. It also does not explain the implications of receiving shares instead of cash for the distribution, such as the tax consequences, liquidity issues, dilution effects, etc.
4. The article mentions that the fund is a closed-end investment company with multiple managers, but it does not elaborate on how this affects its performance, diversification, risk management, etc. It also does not compare the fund to other similar or alternative investments in the market, such as open-end funds, ETFs, individual stocks, bonds, etc.
5. The article ends with a promotional note for ALPS Advisors, Inc., the investment advisor of the fund, without disclosing any potential conflicts of interest or compensation arrangements. It also does not provide any contact information for the fund or its adviser, making it difficult for readers to seek more information or assistance if needed.
1. Liberty All-Star® Growth Fund, Inc. (ASG) is a closed-end investment company that seeks long-term growth of capital by investing in a diversified portfolio of equity securities. The fund invests in companies with market capitalizations between $2 billion and $10 billion, which are often overlooked or undervalued by other investors. ASG has a history of generating consistent returns and outperforming its benchmark index, the Russell 3000 Index.
2. The fund's distribution policy is to pay quarterly distributions in cash or shares, depending on the option chosen by the shareholder. For the fiscal year ended November 30, 2021, ASG paid an annualized distribution rate of 8.7%, which represents a yield of approximately 6.5% based on the current net asset value (NAV) of $25.46 per share.
3. The fund's investment strategy involves a disciplined approach to identifying and selecting undervalued equity securities that have the potential for long-term growth. ASG employs a team of experienced portfolio managers who use a combination of quantitative and qualitative analysis to identify opportunistic investments across various market sectors.
4. The fund's risk profile is moderately high, as it invests in small- and mid-cap companies that may be more volatile than larger, more established companies. Additionally, the fund may experience capital gains or losses due to its active management of the portfolio, which can affect the NAV and distribution yield of the shares.
5. ASG is currently trading at a 4.9% discount to its NAV of $25.46 per share, which presents an attractive opportunity for investors seeking long-term growth at a reasonable price. The fund's shares are also listed on the New York Stock Exchange and can be bought or sold through any intermediary or broker.
6. Based on ASG's historical performance, distribution yield, and discount to NAV, it is recommended that investors consider allocating 2% to 5% of their portfolio to this fund, depending on their risk tolerance and time horizon. Investors should also be aware of the risks associated with investing in small- and mid-cap companies, as well as the potential for capital gains or losses due to the fund's active management strategy.