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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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<SEC-DOCUMENT>0000773757-06-000146.txt : 20060829
<SEC-HEADER>0000773757-06-000146.hdr.sgml : 20060829
<ACCEPTANCE-DATETIME>20060829133337
ACCESSION NUMBER:		0000773757-06-000146
CONFORMED SUBMISSION TYPE:	NSAR-A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060630
FILED AS OF DATE:		20060829
DATE AS OF CHANGE:		20060829
EFFECTIVENESS DATE:		20060829

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIBERTY ALL STAR EQUITY FUND
		CENTRAL INDEX KEY:			0000799195
		IRS NUMBER:				042935840
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		NSAR-A
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04809
		FILM NUMBER:		061061602

	BUSINESS ADDRESS:	
		STREET 1:		FEDERAL RESERVE PLZ
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210
		BUSINESS PHONE:		6177226000
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002 A000000 ONE FINANCIAL CENTER
002 B000000 BOSTON
002 C000000 MA
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008 A000003 PZENA INVESTMENT MANAGEMENT LLC
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008 D020004 PA
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008 A000005 MASTRAPASQUA ASSET MANAGEMENT, INC.
008 B000005 S
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<PAGE>      PAGE  2
008 D020005 TN
008 D030005 37203
008 A000006 TCW INVESTMENT MANAGEMENT CO.
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008 C000006 801-7380
008 D010006 LOS ANGELES
008 D020006 CA
008 D030006 90017
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<PAGE>      PAGE  3
014 B000015 8-99999
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014 A000017 BOSTON SECURITIES S.A. SOCIEDAD DE BOLSA
014 B000017 8-99999
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014 B000018 8-30683
014 A000019 FITZMAURICE INVESTMENT MANAGEMENT
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014 A000020 INVERSIONES BOSTON CORREDOR DE BOLSA LIMITADA
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015 D010005 BANGLADESH
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015 E040008 X
<PAGE>      PAGE  4
015 A000009 CITIBANK, N.A.
015 B000009 S
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015 D010009 BOLIVIA
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015 D010010 BOTSWANA
015 E040010 X
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015 D010011 BRAZIL
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015 A000012 ING BANK N.V.
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015 D010015 CHILE
015 E040015 X
015 A000016 HONGKONG AND SHANGHAI BANKING CORP LIMITED
015 B000016 S
015 C010016 SHANGHAI
015 D010016 CHINA
015 E040016 X
015 A000017 HONGKONG AND SHANGHAI BANKING CORP LIMITED
015 B000017 S
015 C010017 SHENZHEN
015 D010017 CHINA
015 E040017 X
015 A000018 CITITRUST COLOMBIA S.A. SOCIEDAD FIDUCIARIA
015 B000018 S
015 C010018 BOGOTA
015 D010018 COLOMBIA
015 E040018 X
015 A000019 BANCO BCT S.A.
<PAGE>      PAGE  5
015 B000019 S
015 C010019 SAN JOSE
015 D010019 COSTA RICA
015 E040019 X
015 A000020 PRIVREDNA BANKA ZAGREB D.D.
015 B000020 S
015 C010020 ZAGREB
015 D010020 CROATIA
015 E040020 X
015 A000021 CYPRUS POPULAR BANK LIMITED
015 B000021 S
015 C010021 NICOSIA
015 D010021 CYPRUS
015 E040021 X
015 A000022 CESKOSLOVENSKA OBCHODNI BANKA A.S.
015 B000022 S
015 C010022 PRAGUE
015 D010022 CZECH REPUBLIC
015 E040022 X
015 A000023 DANSKE BANK A/S
015 B000023 S
015 C010023 COPENHAGEN
015 D010023 DENMARK
015 E040023 X
015 A000024 CITIBANK, N.A.
015 B000024 S
015 C010024 QUITO
015 D010024 ECUADOR
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015 E040025 X
015 A000026 HANSAPANK (HANSABANK)
015 B000026 S
015 C010026 TALLINN
015 D010026 ESTONIA
015 E040026 X
015 A000027 EUROCLEAR
015 B000027 S
015 C010027 BRUSSELS
015 D010027 BELGIUM
015 E040027 X
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015 E040028 X
015 A000029 BNP PARIBAS SECURITIES SERVICES, S.A.
015 B000029 S
<PAGE>      PAGE  6
015 C010029 PARIS
015 D010029 FRANCE
015 E040029 X
015 A000030 DRESDNER BANK AG
015 B000030 S
015 C010030 FRANKFURT
015 D010030 GERMANY
015 E040030 X
015 A000031 BNP PARIBAS SECURITIES SERVICES, S.A.
015 B000031 S
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015 D010031 GERMANY
015 E040031 X
015 A000032 BARCLAYS BANK OF GHANA LIMITED
015 B000032 S
015 C010032 ACCRA
015 D010032 GHANA
015 E040032 X
015 A000033 NATIONAL BANK OF GREECE S.A.
015 B000033 S
015 C010033 ATHENS
015 D010033 GREECE
015 E040033 X
015 A000034 SOCIETE GENERALE DE BANQUES EN COTE DIVOIRE
015 B000034 S
015 C010034 ABIDJAN, IVORY COAST
015 D010034 GUINEA-BISSAU
015 E040034 X
015 A000035 STANDARD CHARTERED BANK
015 B000035 S
015 C010035 HONG KONG
015 D010035 HONG KONG (SAR)
015 E040035 X
015 A000036 HVB BANK HUNGARY RT.
015 B000036 S
015 C010036 BUDAPEST
015 D010036 HUNGARY
015 E040036 X
015 A000037 ICEBANK LIMITED
015 B000037 S
015 C010037 REYKJAVIK
015 D010037 ICELAND
015 E040037 X
015 A000038 HONGKONG AND SHANGHAI BANKING CORP LIMITED
015 B000038 S
015 C010038 MUMBAI
015 D010038 INDIA
015 E040038 X
015 A000039 DEUTSCHE BANK AG
015 B000039 S
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<PAGE>      PAGE  7
015 D010039 INDIA
015 E040039 X
015 A000040 STANDARD CHARTERED BANK
015 B000040 S
015 C010040 JAKARTA
015 D010040 INDONESIA
015 E040040 X
015 A000041 BANK OF IRELAND
015 B000041 S
015 C010041 DUBLIN
015 D010041 IRELAND
015 E040041 X
015 A000042 BANK HAPOALIM B.M.
015 B000042 S
015 C010042 TEL AVIV
015 D010042 ISRAEL
015 E040042 X
015 A000043 BNP PARIBAS SECURITIES SERVICES, S.A.
015 B000043 S
015 C010043 MILAN
015 D010043 ITALY
015 E040043 X
015 A000044 SCOTIABANK JAMAICA TRUST & MERCHANT BANK LTD
015 B000044 S
015 C010044 KINGSTON
015 D010044 JAMAICA
015 E040044 X
015 A000045 THE FUJI BANK, LIMITED
015 B000045 S
015 C010045 TOKYO
015 D010045 JAPAN
015 E040045 X
015 A000046 SUMITOMO MITSUI BANKING CORPORATION
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015 E040046 X
015 A000047 HSBC BANK MIDDLE EAST
015 B000047 S
015 C010047 AMMAN
015 D010047 JORDAN
015 E040047 X
015 A000048 BARCLAYS BANK OF KENYA LIMITED
015 B000048 S
015 C010048 NAIROBI
015 D010048 KENYA
015 E040048 X
015 A000049 HONGKONG AND SHANGHAI BANKING CORP LIMITED
015 B000049 S
015 C010049 SEOUL
015 D010049 REPUBLIC OF KOREA
<PAGE>      PAGE  8
015 E040049 X
015 A000050 A/S HANSABANKA
015 B000050 S
015 C010050 RIGA
015 D010050 LATVIA
015 E040050 X
015 A000051 HSBC BANK MIDDLE EAST
015 B000051 S
015 C010051 BEIRUT
015 D010051 LEBANON
015 E040051 X
015 A000052 VILNIAUS BANKAS AB
015 B000052 S
015 C010052 VILNIUS
015 D010052 LITHUANIA
015 E040052 X
015 A000053 CLEARSTREAM BANKING
015 B000053 S
015 C010053 LUXEMBOURG
015 D010053 LUXEMBOURG
015 E040053 X
015 A000054 STANDARD CHARTERED BANK MALAYSIA BERHAD
015 B000054 S
015 C010054 KUALA LUMPUR
015 D010054 MALAYSIA
015 E040054 X
015 A000055 SOCIETE GENERALE DE BANQUES EN COTE DIVOIRE
015 B000055 S
015 C010055 ABIDJAN, IVORY COAST
015 D010055 MALI
015 E040055 X
015 A000056 HONGKONG AND SHANGHAI BANKING CORP LIMITED
015 B000056 S
015 C010056 PORT LOUIS
015 D010056 MAURITIUS
015 E040056 X
015 A000057 BANCO NACIONAL DE MEXICO S.A.
015 B000057 S
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015 D010057 MEXICO
015 E040057 X
015 A000058 BANQUE COMMERCIALE DU MAROC
015 B000058 S
015 C010058 CASABLANCA
015 D010058 MOROCCO
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015 A000059 STANDARD BANK NAMIBIA LIMITED
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<PAGE>      PAGE  9
015 A000060 FORTIS BANK (NEDERLAND) N.V.
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015 D010060 NETHERLANDS
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015 A000061 WESTPAC BANKING CORPORATION
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015 C010061 WELLINGTON
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015 E040061 X
015 A000062 SOCIETE GENERALE DE BANQUES EN COTE DIVOIRE
015 B000062 S
015 C010062 ABIDJAN, IVORY COAST
015 D010062 NIGER
015 E040062 X
015 A000063 STANBIC BANK NIGERIA LIMITED
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015 C010063 LAGOS
015 D010063 NIGERIA
015 E040063 X
015 A000064 NORDEA BANK NORGE ASA
015 B000064 S
015 C010064 OSLO
015 D010064 NORWAY
015 E040064 X
015 A000065 HSBC BANK MIDDLE EAST
015 B000065 S
015 C010065 MUSCAT
015 D010065 OMAN
015 E040065 X
015 A000066 DEUTSCHE BANK AG
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015 C010066 KARACHI
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015 E040066 X
015 A000067 HSBC BANK MIDDLE EAST
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015 C010067 RAMALLAH
015 D010067 PALESTINE
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015 A000068 BANKBOSTON, N.A.
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015 C010068 PANAMA CITY
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015 A000069 CITIBANK, N.A.
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015 C010069 LIMA
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<PAGE>      PAGE  10
015 B000070 S
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015 E040071 X
015 A000072 BANCO COMERCIAL PORTUGUES
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015 C010072 LISBON
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015 E040072 X
015 A000073 CITIBANK, N.A.
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015 C010073 SAN JUAN
015 D010073 PUERTO RICO
015 E040073 X
015 A000074 HSBC BANK MIDDLE EAST
015 B000074 S
015 C010074 DOHA
015 D010074 QATAR
015 E040074 X
015 A000075 ING BANK N.V.
015 B000075 S
015 C010075 BUCHAREST
015 D010075 ROMANIA
015 E040075 X
015 A000076 CREDIT SUISSE FIRST BOSTON AO
015 B000076 S
015 C010076 MOSCOW
015 D010076 RUSSIA
015 E040076 X
015 A000077 SOCIETE GENERALE DE BANQUES EN COTE DIVOIRE
015 B000077 S
015 C010077 ABIDJAN, IVORY COAST
015 D010077 SENEGAL
015 E040077 X
015 A000078 THE DEVELOPMENT BANK OF SINGAPORE LIMITED
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015 A000079 CESKOSLOVENSKA OBCHODNI BANKA A.S.
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<PAGE>      PAGE  11
015 C010080 LJUBLJANA
015 D010080 SLOVENIA
015 E040080 X
015 A000081 STANDARD BANK OF SOUTH AFRICA LIMITED
015 B000081 S
015 C010081 JOHANNESBURG
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015 A000082 SANTANDER CENTRAL HISPANO S.A.
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015 C010082 MADRID
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015 A000083 HONGKONG AND SHANGHAI BANKING CORP LIMITED
015 B000083 S
015 C010083 COLOMBO
015 D010083 SRI LANKA
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015 A000084 STANDARD BANK SWAZILAND LIMITED
015 B000084 S
015 C010084 MBABANE
015 D010084 SWAZILAND
015 E040084 X
015 A000085 SKANDINAVISKA ENSKILDA BANKEN
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015 C010085 STOCKHOLM
015 D010085 SWEDEN
015 E040085 X
015 A000086 UBS AG
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015 D010086 SWITZERLAND
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015 A000087 CENTRAL TRUST OF CHINA
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015 C010087 TAIPEI
015 D010087 TAIWAN (R.O.C.)
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015 A000088 STANDARD CHARTERED BANK
015 B000088 S
015 C010088 BANGKOK
015 D010088 THAILAND
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015 A000089 SOCIETE GENERALE DE BANQUES EN COTE D'IVOIRE
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<PAGE>      PAGE  12
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015 A000093 ING BANK UKRAINE
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015 C010093 KIEV
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015 D020093 04070
015 E040093 X
015 A000094 HSBC BANK MIDDLE EAST
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015 C010094 DUBAI
015 D010094 UNITED ARAB EMIRATES
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015 A000095 STATE STREET BANK AND TRUST COMPANY
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015 C010095 LONDON
015 D010095 UNITED KINGDOM
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015 A000096 STATE STREET BANK AND TRUST COMPANY
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015 C030096 02110
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<PAGE>      PAGE  13
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020 B000006 13-1944376
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020 B000007 95-2622900
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020 A000008 KNIGHT SECURITIES L.P.
020 B000008 22-3660471
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<PAGE>      PAGE  14
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025 B000002 13-3112953
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025 D000002   27585
025 A000003 BANK OF NEW YORK
025 B000003 13-4941102
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025 D000003    8404
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025 B000004 13-5674085
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<PAGE>      PAGE  16
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<PAGE>      PAGE  17
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<PAGE>      PAGE  18
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<PAGE>      PAGE  20
087 A010000 LIBERTY ALL STAR EQUITY FUND
087 A020000 530158104
087 A030000 USA
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SIGNATURE   PATRICE HURLEY
TITLE       VICE PRESIDENT

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exh.txt
<TEXT>
770 Transactions effected pursuant to Rule 10f-3

Liberty All-Star Equity Fund (Fund)

On February 8, 2006, the Fund purchased 2,700 par value of common stock of
Avnet, Inc. (Securities) for a total purchase price of $64,800 from Credit
Suisse First Boston Corp pursuant to a public offering in which Banc of America
Securities acted as a participating underwriter. Banc of America Securities may
be considered to be an affiliate of the Fund.

The following information was collected pursuant to Rule 10f-3 procedures
adopted by the Fund's Trustees:

       o The Fund's advisor, Columbia Management Advisors, Inc. (Advisor)
         believed that the gross underwriting spread associated with the
         purchase of the Securities was reasonable and fair compared to the
         spreads in connection with similar underwritings of similar securities
         being sold during a comparable period of time;

o        The Securities were offered pursuant to an underwriting or similar
         agreement under which the underwriters were committed to purchase all
         of the Securities being offered;

o       The issuer of the Securities has been in continuous operation for at
        least three years;

o       The amount of Securities purchased did not exceed 25% of the amount
        of the offering;

o       The Securities were to be purchased at not more than the public offering
        price no later than the first day of the offering.

Along with Banc of America Securities, the following is a list of members of the
underwriting syndicate for the aforementioned Securities: SG Cowen Securities;
TCW Brokerage; Fimat USA, Inc.

On March 2, 2006, the Fund purchased 1,800 par value of common stock of Genworth
Financial Inc. (Securities) for a total purchase price of $58,950 from Merrill
Lynch, Pierce, Fenner & Smith pursuant to a public offering in which Banc of
America Securities acted as a participating underwriter. Banc of America
Securities may be considered to be an affiliate of the Fund.

The following information was collected pursuant to Rule 10f-3 procedures
adopted by the Fund's Trustees:

       o The Fund's advisor, Columbia Management Advisors, Inc. (Advisor)
         believed that the gross underwriting spread associated with the
         purchase of the Securities was reasonable and fair compared to the
         spreads in connection with similar underwritings of similar securities
         being sold during a comparable period of time;

o        The Securities were offered pursuant to an underwriting or similar
         agreement under which the underwriters were committed to purchase all
         of the Securities being offered;

o       The issuer of the Securities has been in continuous operation for at
        least three years;

o       The amount of Securities purchased did not exceed 25% of the amount
        of the offering;

o       The Securities were to be purchased at not more than the public offering
        price no later than the first day of the offering.

Along with Banc of America Securities, the following is a list of members of the
underwriting syndicate for the aforementioned Securities: SG Cowen Securities;
TCW Brokerage; Fimat USA, Inc.



<PAGE>


77Q1 Exhibits

                         PORTFOLIO MANAGEMENT AGREEMENT

                                  June 1, 2006

Chase Investment Counsel Corporation
300 Preston Avenue, Suite 403
Charlottesville, VA  22902-5091

Re: Portfolio Management Agreement

Ladies and Gentlemen:

    Liberty All-Star Equity Fund (the "Fund") is a diversified closed-end
investment company registered under the Investment Company Act of 1940, as
amended (the "Act"), and is subject to the rules and regulations promulgated
thereunder.

    Banc of America Investment Advisors, Inc. (the "Fund Manager") evaluates and
recommends portfolio managers for the assets of the Fund, and is responsible for
the day-to-day corporate management and Fund administration of the Fund.

    1. Employment as a Portfolio Manager. The Fund being duly authorized hereby
employs Chase Investment Counsel Corporation ("Portfolio Manager") as a
discretionary portfolio manager, on the terms and conditions set forth herein,
of that portion of the Fund's assets which the Fund Manager determines to assign
to the Portfolio Manager (those assets being referred to as the "Portfolio
Manager Account"). The Fund Manager may, from time to time, allocate and
reallocate the Fund's assets among the Portfolio Manager and the other portfolio
managers of the Fund's assets. The Portfolio Manager will be an independent
contractor and will have no authority to act for or represent the Fund or the
Fund Manager in any way or otherwise be deemed to be an agent of the Fund or the
Fund Manager except as expressly authorized in this Agreement or in another
writing by the Fund Manager and the Portfolio Manager. The Portfolio Manager's
responsibilities for providing portfolio management services to the Fund shall
be limited to the Portfolio Manager Account.

    2. Acceptance of Employment; Standard of Performance. The Portfolio Manager
accepts its employment as a discretionary portfolio manager and agrees to use
its best professional judgment to make timely investment decisions for the
Portfolio Manager Account in accordance with the provisions of this Agreement.

    3. Portfolio Management Services of Portfolio Manager.

A. In providing portfolio management services to the Portfolio Manager Account,
the Portfolio Manager shall be subject to the investment objectives, policies
and restrictions of the Fund as set forth in its Prospectus and Statement of
Additional Information, as the same may be modified from time to time (together,
the "Prospectus"), the policies and restrictions of the Fund as determined from
time to time by the Board of Trustees, and the investment and other restrictions
set forth in the Act and the rules and regulations thereunder, to the
supervision and control of the Board of Trustees of the Fund, and to
instructions from the Fund Manager. The Portfolio Manager shall not, without the
prior approval of the Fund or the Fund Manager, effect any transactions that
would cause the Portfolio Manager Account, treated as a separate fund, to be out
of compliance with any of such restrictions or policies. The Portfolio Manager
shall not consult with any other portfolio manager of the Fund concerning
transactions for the Fund in securities or other assets.

B. As part of the services it will provide hereunder, the Portfolio Manager
will:

         (i) formulate and implement a continuous investment program for the
Portfolio Manager Account;

         (ii)     take whatever steps are necessary to implement the investment
                  program for the Portfolio Manager Account by arranging for the
                  purchase and sale of securities and other investments;

         (iii)    keep the Fund Manager and the Board of Trustees of the Fund
                  fully informed in writing on an ongoing basis, as agreed by
                  the Fund Manager and the Portfolio Manager, of all material
                  facts concerning the investment and reinvestment of the assets
                  in the Portfolio Manager Account, the Portfolio Manager and
                  its key investment personnel and operations; make regular and
                  periodic special written reports of such additional
                  information concerning the same as may reasonably be requested
                  from time to time by the Fund Manager or the Trustees of the
                  Fund; attend meetings with the Fund Manager and/or Trustees,
                  as reasonably requested, to discuss the foregoing and such
                  other matters as may be requested by the Fund Manager or
                  Trustees;

         (iv)     in accordance with procedures and methods established by the
                  Trustees of the Fund, which may be amended from time to time,
                  provide assistance in determining the fair value of all
                  securities and other investments/assets in the Portfolio
                  Manager Account, as necessary, and use reasonable efforts to
                  arrange for the provision of valuation information or a
                  price(s) from a party(ies) independent of the Portfolio
                  Manager for each security or other investment/asset in the
                  Portfolio Manager Account for which market prices are not
                  readily available; and

         (v)      cooperate with and provide reasonable assistance to the Fund
                  Manager, the Fund's custodian, transfer agent and pricing
                  agents and all other agents and representatives of the Fund
                  and the Fund Manager; keep all such persons fully informed as
                  to such matters as they may reasonably deem necessary to the
                  performance of their obligations to the Fund and the Fund
                  Manager; provide prompt responses to reasonable requests made
                  by such persons; and maintain any appropriate interfaces with
                  each so as to promote the efficient exchange of information.

    4. Transaction Procedures. All portfolio transactions for the Portfolio
Manager Account will be consummated by payment to or delivery by the custodian
of the Fund (the "Custodian"), or such depositories or agents as may be
designated by the Custodian in writing, as custodian for the Fund, of all cash
and/or securities due to or from the Portfolio Manager Account, and the
Portfolio Manager shall not have possession or custody thereof or any
responsibility or liability with respect to such custody. The Portfolio Manager
shall advise and confirm in writing to the Custodian all investment orders for
the Portfolio Manager Account placed by it with brokers and dealers at the time
and in the manner set forth in Schedule A hereto (as amended from time to time
by the Fund Manager). The Fund shall issue to the Custodian such instructions as
may be appropriate in connection with the settlement of any transaction
initiated by the Portfolio Manager. The Fund shall be responsible for all
custodial arrangements and the payment of all custodial charges and fees, and,
upon giving proper instructions to the Custodian, the Portfolio Manager shall
have no responsibility or liability with respect to custodial arrangements or
the acts, omissions or other conduct of the Custodian.

    5. Allocation of Brokerage. The Portfolio Manager shall have authority and
discretion to select brokers and dealers to execute portfolio transactions
initiated by the Portfolio Manager for the Portfolio Manager Account, and to
select the markets on or in which the transaction will be executed.

        A. In doing so, the Portfolio Manager's primary responsibility shall be
    to seek to obtain best net price and execution for the Fund. However, this
    responsibility shall not obligate the Portfolio Manager to solicit
    competitive bids for each transaction or to seek the lowest available
    commission cost to the Fund, so long as the Portfolio Manager reasonably
    believes that the broker or dealer selected by it can be expected to obtain
    a "best execution" market price on the particular transaction and determines
    in good faith that the commission cost is reasonable in relation to the
    value of the brokerage and research services (as defined in Section 28(e)(3)
    of the Securities Exchange Act of 1934) provided by such broker or dealer to
    the Portfolio Manager viewed in terms of either that particular transaction
    or of the Portfolio Manager's overall responsibilities with respect to its
    clients, including the Fund, as to which the Portfolio Manager exercises
    investment discretion, notwithstanding that the Fund may not be the direct
    or exclusive beneficiary of any such services or that another broker may be
    willing to charge the Fund a lower commission on the particular transaction.

        B. Subject to the requirements of paragraph A above, the Fund Manager
    shall have the right to request that transactions giving rise to brokerage
    commissions, in an amount to be agreed upon by the Fund Manager and the
    Portfolio Manager, shall be executed by brokers and dealers that provide
    brokerage or research services to the Fund Manager, or as to which an
    on-going relationship will be of value to the Fund in the management of its
    assets, which services and relationship may, but need not, be of direct
    benefit to the Portfolio Manager Account. Notwithstanding any other
    provision of this Agreement, the Portfolio Manager shall not be responsible
    under paragraph A above with respect to transactions executed through any
    such broker or dealer.

        C. The Portfolio Manager shall not execute any portfolio transactions
    for the Portfolio Manager Account with a broker or dealer which is an
    "affiliated person" (as defined in the Act) of the Fund, the Portfolio
    Manager or any other portfolio manager of the Fund without the prior written
    approval of the Fund. The Fund Manager will provide the Portfolio Manager
    with a list of brokers and dealers which are "affiliated persons" of the
    Fund or its portfolio managers.

    6. Proxies. The Fund Manager will vote all proxies solicited by or with
respect to the issuers of securities in which assets of the Portfolio Manager
Account may be invested from time to time in accordance with such policies as
shall be determined by the Fund Manager. Upon the written request of the Fund
Manager, Portfolio Manager will vote all proxies solicited by or with respect to
the issuers of securities in which assets of the Portfolio Manager Account may
be invested from time to time in accordance with such policies as shall be
determined by the Fund Manager.

    7. Fees for Services. The compensation of the Portfolio Manager for its
services under this Agreement shall be calculated and paid by the Fund Manager
in accordance with the attached Schedule C. Pursuant to the Fund Management
Agreement between the Fund and the Fund Manager, the Fund Manager is solely
responsible for the payment of fees to the Portfolio Manager, and the Portfolio
Manager agrees to seek payment of its fees solely from the Fund Manager.

    8. Other Investment Activities of Portfolio Manager. The Fund acknowledges
that the Portfolio Manager or one or more of its affiliates has investment
responsibilities, renders investment advice to and performs other investment
advisory services for other individuals or entities ("Client Accounts"), and
that the Portfolio Manager, its affiliates or any of its or their directors,
officers, agents or employees may buy, sell or trade in any securities for its
or their respective accounts ("Affiliated Accounts"). Subject to the provisions
of paragraph 2 hereof, the Fund agrees that the Portfolio Manager or its
affiliates may give advice or exercise investment responsibility and take such
other action with respect to other Client Accounts and Affiliated Accounts which
may differ from the advice given or the timing or nature of action taken with
respect to the Portfolio Manager Account, provided that the Portfolio Manager
acts in good faith, and provided further, that it is the Portfolio Manager's
policy to allocate, within its reasonable discretion, investment opportunities
to the Portfolio Manager Account over a period of time on a fair and equitable
basis relative to the Client Accounts and the Affiliated Accounts, taking into
account the cash position and the investment objectives and policies of the Fund
and any specific investment restrictions applicable thereto. The Fund
acknowledges that one or more Client Accounts and Affiliated Accounts may at any
time hold, acquire, increase, decrease, dispose of or otherwise deal with
positions in investments in which the Portfolio Manager Account may have an
interest from time to time, whether in transactions which involve the Portfolio
Manager Account or otherwise. The Portfolio Manager shall have no obligation to
acquire for the Portfolio Manager Account a position in any investment which any
Client Account or Affiliated Account may acquire, and the Fund shall have no
first refusal, co-investment or other rights in respect of any such investment,
either for the Portfolio Manager Account or otherwise.

    9. Limitation of Liability. The Portfolio Manager shall not be liable for
any action taken, omitted or suffered to be taken by it in its reasonable
judgment, in good faith and reasonably believed by it to be authorized or within
the discretion or rights or powers conferred upon it by this Agreement, or in
accordance with (or in the absence of) specific directions or instructions from
the Fund, provided, however, that such acts or omissions shall not have resulted
from the Portfolio Manager's willful misfeasance, bad faith or gross negligence,
a violation of the standard of care established by and applicable to the
Portfolio Manager in its actions under this Agreement or breach of its duty or
of its obligations hereunder (provided, however, that the foregoing shall not be
construed to protect the Portfolio Manager from liability in violation of
Section 17(i) of the Act).

    10. Confidentiality. Subject to the duty of the Portfolio Manager, the Fund
Manager and the Fund to comply with applicable law, including any demand of any
regulatory or taxing authority having jurisdiction, the parties hereto shall
treat as confidential all information pertaining to the Portfolio Manager
Account and the actions of the Portfolio Manager and the Fund in respect
thereof.

    11. Assignment. This Agreement shall terminate automatically in the event of
its assignment, as that term is defined in Section 2(a)(4) of the Act. The
Portfolio Manager shall notify the Fund in writing sufficiently in advance of
any proposed change of control, as defined in Section 2(a)(9) of the Act, as
will enable the Fund to consider whether an assignment as defined in Section
2(a)(4) of the Act will occur, and whether to take the steps necessary to enter
into a new contract with the Portfolio Manager.

    12. Representations, Warranties and Agreements of the Fund. The Fund
represents, warrants and agrees that:

        A. The Portfolio Manager has been duly appointed to provide investment
    services to the Portfolio Manager Account as contemplated hereby.

        B. The Fund will deliver to the Portfolio Manager a true and complete
    copy of its then current Prospectus as effective from time to time and such
    other documents governing the investment of the Fund Account and such other
    information as is necessary for the Portfolio Manager to carry out its
    obligations under this Agreement.

    13. Representations, Warranties and Agreements of the Portfolio Manager. The
Portfolio Manager represents, warrants and agrees that:

        A. It is registered as an "investment adviser" under the Investment
    Advisers Act of 1940, as amended ("Advisers Act").

        B. It will maintain, keep current and preserve on behalf of the Fund, in
    the manner required or permitted by the Act and the rules and regulations
    thereunder, the records required to be so kept by an investment adviser of
    the Fund in accordance with applicable law, including without limitation
    those identified in Schedule B (as Schedule B may be amended from time to
    time by the Fund Manager). The Portfolio Manager agrees that such records
    are the property of the Fund, and will be surrendered to the Fund promptly
    upon request.

        C. It has adopted a written code of ethics complying with the
    requirements of Rule 204A-1 under the Advisers Act and Rule 17j-1 under the
    Act and will provide the Fund Manager and the Board of Trustees with a copy
    of its code of ethics and evidence of its adoption. Within 45 days of the
    end of each year while this Agreement is in effect, or at any other time
    requested by the Fund Manager, an officer, director or general partner of
    the Portfolio Manager shall certify to the Fund that the Portfolio Manager
    has complied with the requirements of Rule 17j-1 and Rule 204A-1 during the
    previous year and that there has been no violation of its code of ethics or,
    if such a violation has occurred, that appropriate action was taken in
    response to such violation. It will promptly notify the Fund Manager of any
    material change to its code of ethics or material violation of its code of
    ethics.

        D. Upon request, the Portfolio Manager will promptly supply the Fund
    with any information concerning the Portfolio Manager and its stockholders,
    partners, employees and affiliates that the Fund may reasonably request in
    connection with the preparation of its registration statement (as amended
    from time to time), prospectus and statement of additional information (as
    supplemented and modified from time to time), proxy material, reports and
    other documents required to be filed under the Act, the Securities Act of
    1933, or other applicable securities laws.

        E. Reference is hereby made to the Declaration of Trust dated August 20,
    1986 establishing the Fund, a copy of which has been filed with the
    Secretary of the Commonwealth of Massachusetts and elsewhere as required by
    law, and to any and all amendments thereto so filed or hereafter filed. The
    name Liberty All-Star Equity Fund refers to the Trustees under said
    Declaration of Trust, as Trustees and not personally, and no Trustee,
    shareholder, officer, agent or employee of the Fund shall be held to any
    personal liability hereunder or in connection with the affairs of the Fund,
    but only the trust estate under said Declaration of Trust is liable under
    this Agreement. Without limiting the generality of the foregoing, neither
    the Portfolio Manager nor any of its officers, directors, partners,
    shareholders, agents or employees shall, under any circumstances, have
    recourse or cause or willingly permit recourse to be had directly or
    indirectly to any personal, statutory, or other liability of any
    shareholder, Trustee, officer, agent or employee of the Fund or of any
    successor of the Fund, whether such liability now exists or is hereafter
    incurred for claims against the trust estate, but shall look for payment
    solely to said trust estate, or the assets of such successor of the Fund.

F.  The Portfolio Manager shall maintain and implement compliance procedures
    that are reasonably designed to ensure its compliance with Rule 206(4)-7 of
    the Advisers Act and to prevent violations of the Federal Securities Laws
    (as defined in Rule 38a-1 under the Act).

        G.The Portfolio Manager will: (i) on the cover page of each Form 13F
    that the Portfolio Manager files with the Securities and Exchange Commission
    (the "SEC"), check the "13F Combination Report" box and on the Form 13F
    Summary Page identify "Banc of America Investment Advisors, Inc." as another
    manager for which the Portfolio Manager is filing the From 13F report; (ii)
    within 60 days after the end of each calendar year, provide the Fund Manager
    with a certification that the Portfolio Manager's Form 13F was filed with
    the SEC on a timely basis and included all of the securities required to be
    reported by the SEC; (iii) within 60 days after the end of each calendar
    year, provide to the Fund Manager a copy of each Form 13F, or amendment to a
    Form 13F filed by it during the prior four quarters; and (iv) promptly
    notify the Fund Manager in the event the Portfolio Manager determines that
    it has failed to comply with Section 13(f) in a material respect, or
    receives a comment letter from the SEC raising a question with respect to
    compliance.

        H.The Portfolio Manager has adopted written compliance policies and
    procedures reasonably designed to prevent violations of the Advisers Act and
    the rules promulgated thereunder and the Portfolio Manager agrees to
    provide: (a) from time to time, a copy and/or summary of such compliance
    policies and procedures and an accompanying certification certifying that
    the Portfolio Manager's compliance policies and procedures comply with the
    Advisers Act; (b) a report of the annual review determining the adequacy and
    effectiveness of the Portfolio Manager's compliance policies and procedures;
    and (c) the name of the Portfolio Manager's Chief Compliance Officer to act
    as a liaison for compliance matters that may arise between the Fund and the
    Portfolio Manager.

        I. The Portfolio Manager will notify the Fund and the Fund Manager of
    any assignment of this Agreement or change of control of the Portfolio
    Manager, as applicable, and any changes in the key personnel who are either
    the portfolio manager(s) of the Portfolio Manager Account or senior
    management of the Portfolio Manager, in each case prior to or promptly
    after, such change. The Portfolio Manager agrees to bear all reasonable
    expenses of the Fund, if any, arising out of an assignment or change in
    control.

        J. The Portfolio Manager agrees to maintain an appropriate level of
    errors and omissions or professional liability insurance coverage.

    14. Amendment. This Agreement may be amended at any time, but only by
written agreement among the Portfolio Manager, the Fund Manager and the Fund,
which amendment, other than amendments to Schedules A, B and C, is subject to
the approval of the Board of Trustees and the shareholders of the Fund as and to
the extent required by the Act, the rules thereunder or exemptive relief granted
by the SEC, provided that Schedules A and B may be amended by the Fund Manager
without the written agreement of the Fund or the Portfolio Manager.

    15. Effective Date; Term. This Agreement shall continue until July 31, 2007
and from year to year thereafter provided such continuance is specifically
approved at least annually by (i) the Fund's Board of Trustees or (ii) a vote of
a "majority" (as defined in the Act) of the Fund's outstanding voting
securities, provided that in either event such continuance is also approved by a
majority of the Board of Trustees who are not "interested persons" (as defined
in the Act) of any party to this Agreement, by vote cast in person at a meeting
called for the purpose of voting on such approval and provided further that, in
accordance with the conditions of the application of the Fund and Fund Manager
for an exemption from 15(a) of the Act (Rel. Nos. IC 19436 and 19491), the
continuance of this Agreement shall be subject to approval by such "majority" of
the Fund's outstanding voting securities at the regularly scheduled annual
meeting of shareholders of the Fund next following the date of this Agreement.
The aforesaid requirement that continuance of this Agreement be "specifically
approved at least annually" shall be construed in a manner consistent with the
Act and the rules and regulations thereunder.

    16. Termination. This Agreement may be terminated at any time by any party,
without penalty, immediately upon written notice to the other parties in the
event of a breach of any provision thereof by a party so notified, or otherwise
upon not less than thirty (30) days' written notice to the Portfolio Manager in
the case of termination by the Fund or the Fund Manager, or ninety (90) days'
written notice to the Fund and the Fund Manager in the case of termination by
the Portfolio Manager, but any such termination shall not affect the status,
obligations or liabilities of any party hereto to the other parties.

    17. Applicable Law. To the extent that state law is not preempted by the
provisions of any law of the United States heretofore or hereafter enacted, as
the same may be amended from time to time, this Agreement shall be administered,
construed and enforced according to the laws of the Commonwealth of
Massachusetts.

    18. Severability; Counterparts. If any term or condition of this Agreement
shall be invalid or unenforceable to any extent or in any application, then the
remainder of this Agreement, and such term or condition except to such extent or
in such application, shall not be affected thereby, and each and every term and
condition of this Agreement shall be valid and enforced to the fullest extent
and in the broadest application permitted by law. This Agreement may be executed
in counterparts, each of which will be deemed an original and all of which
together will be deemed to be one and the same agreement.

    19. Use of Name. The Portfolio Manager agrees and acknowledges that the Fund
Manager is the sole owner of the names and marks "Liberty All-Star" and
"All-Star", and that all use of any designation comprised in whole or in part of
these names and marks shall inure to the benefit of the Fund Manager. Except as
used to identify the Fund to third parties as a client, the use by the Portfolio
Manager on its own behalf of such marks in any advertisement or sales literature
or other materials promoting the Portfolio Manager shall be with the prior
written consent of the Fund Manager. The Portfolio Manager shall not, without
the consent of the Fund Manager, make representations regarding the Fund or the
Fund Manager in any disclosure document, advertisement or sales literature or
other materials promoting the Portfolio Manager. Consent by the Fund Manager
shall not be unreasonably withheld. Upon termination of this Agreement for any
reason, the Portfolio Manager shall cease any and all use of these marks as soon
as reasonably practicable.


                                 LIBERTY ALL-STAR EQUITY FUND

                                 By: /s/ William R. Parmentier
                                 Name: William R. Parmentier
                                 Title: President

                                 BANC OF AMERICA INVESTMENT ADVISORS, INC.

                                 By:/s/ William R. Parmentier
                                 Name: William R. Parementier
                                 Title: Senior Vice President

ACCEPTED:

CHASE INVESTMENT COUNSEL CORPORATION

By: /s/ David B. Scott
Name: David B. Scott
Title: Senior Vice President


SCHEDULES:             A.   Operational Procedures For Portfolio Transactions
                       B.   Record Keeping Requirements
                       C.   Fee Schedule


<PAGE>


                                   Schedule A

                          Liberty All-Star Equity Fund
                      Chase Investment Counsel Corporation
                             Operational Procedures


         In order to minimize operational problems, the following represents a
standard flow of information requirements. The Portfolio Manager must furnish
State Street Corporation (accounting agent) with daily information as to
executed trades, no later than 12:00 p.m. (EST) on trade date plus one day to
ensure the information is processed in time for pricing. If there are no trades,
a report must be sent to State Street stating there were no trades for that day.

         The necessary information must be transmitted via facsimile machine to
Max King at State Street at 617-662-2342 and contain an authorized signature.

Liberty All-Star Equity Fund trade reporting requirements:

1.   Name of fund & Portfolio Manager

2.   Trade date

3.   Settlement date

4.   Purchase or sale

5.   Security name/description

6.   Cusip / sedol / or other numeric identifier

7.   Purchase/sale price per share or unit

8.   Interest purchased/sold (if applicable)

9.   Aggregate commission amount

10.  Indication as to whether or not commission amounts are BAIA Directed.

11.  Executing broker and clearing bank (if applicable)

12.  Total net amount of the transaction

13.  Sale lot disposition method, if different from the established policy of
     Lowest Cost.

14.  Confirmation of DTC trades; please advise brokers to use the custodian's
     DTC ID system number to facilitate the receipt of information by the
     custodian. The Portfolio Manager will affirm trades to the custodian.



Commission Reporting

The Portfolio Manager is responsible for reporting the correct broker for all
direct-commission trades on the trade tickets. As a follow-up procedure, The
Fund Manager will summarize the accounting records and forward to the Portfolio
Manager monthly. The Portfolio Manager is responsible for comparing their
records to the accounting records and contacting the Fund Manager regarding
discrepancies.


Trade Exception Processing

1.   Revised or cancelled trades: the Portfolio Manager is responsible for
     notifying State Street Fund Accounting of revisions and/or cancellations on
     a timely basis. In addition, the Portfolio Manager is responsible for
     notifying State Street if the revised or cancelled trade pertains to a next
     day or current day settlement.

2.   In the event, trades are sent after the 12:00 EST deadline, the Portfolio
     Manager is responsible for notifying the appropriate contact at State
     Street. If trades are received after 4:00 PM EST, State Street Fund
     Accounting will book trades on a "best efforts" basis.



                                            State Street delivery instructions



DTC instructions:
- ----------------

For Liberty All Star Equity

Depository Trust Company (DTC)

Participant # 0997

Agent Bank# 20997

Ref: C7R1



Physical Securities DVP/RVP

DTC/New York Window

55 Water Street

New York, NY 10041

Attn: Robert Mendes

Ref: Fund C7R1



Government issues delivered through Fed Book Entry

Boston Federal Reserve Bank

ABA 011000028

STATE ST BOS/SPEC/C7R1





Wire Instructions:

State Street Bank

ABA # 011000028

Ref: Liberty All Star Equity

Fund Number: C7R1

DDA # 40601767





Custodian (State Street Corporation)

Cash Availability: State Street will supply the portfolio manager with a cash
availability report by 11:00 AM EST on a daily basis. This will be done by fax
so that the Portfolio Manager will know the amount available for investment
purposes.

Voluntary Corporate Actions

State Street will be responsible for notifying the Portfolio Manager of all
voluntary corporate actions. The Portfolio Manager will fax instructions back to
State Street to the fax number indicated on the corporate action notice.



Other Custodian Requirements



All trades must be transmitted to the custodian bank, State Street, via signed
facsimile to 617-662-2342.

In the event there are no trades on a given day State Street needs to receive a
signed fax indicating this.

State Street will need an authorized signature list from the Portfolio Manager.

State Street will need the daily contacts for corporate actions and trading from
the Portfolio Manager (please notify SSC of any future changes).




                          Liberty All-Star Equity Fund
                         Portfolio Management Agreement
                                   SCHEDULE B

RECORDS TO BE MAINTAINED BY THE PORTFOLIO MANAGER

1. (Rule 31a-1(b)(5) and (6)) A record of each brokerage order, and all other
   portfolio purchases and sales, given by the Portfolio Manager on behalf of
   the Fund for, or in connection with, the purchase or sale of securities,
   whether executed or unexecuted. Such records shall include:

    A. The name of the broker;

    B. The terms and conditions of the order and of any modifications or
cancellation thereof;

    C. The time of entry or cancellation;

    D. The price at which executed;

    E. The time of receipt of a report of execution; and

    F. The name of the person who placed the order on behalf of the Fund.

2. (Rule 31a-1(b)(9)) A record for each fiscal quarter, completed within ten
   (10) days after the end of the quarter, showing specifically the basis or
   bases upon which the allocation of orders for the purchase and sale of
   portfolio securities to named brokers or dealers was effected, and the
   division of brokerage commissions or other compensation on such purchase and
   sale orders. Such record:

    A. Shall include the consideration given to:

        (i)The sale of shares of the Fund by brokers or dealers.

        (ii) The supplying of services or benefits by brokers or dealers to:

            (a) The Fund;

            (b) The Fund Manager (Banc of America Investment Advisors, Inc.);

            (c) The Portfolio Manager; and

            (d) Any person other than the foregoing.

        (iii) Any other consideration other than the technical qualifications of
the brokers and dealers as such.

    B. Shall show the nature of the services or benefits made available.

    C. Shall describe in detail the application of any general or specific
       formula or other determinant used in arriving at such allocation of
       purchase and sale orders and such division of brokerage commissions or
       other compensation.

    D. The name of the person responsible for making the determination of such
       allocation and such division of brokerage commissions or other
       compensation.

3. (Rule 31a-1(b)(10)) A record in the form of an appropriate memorandum
   identifying the person or persons, committees or groups authorizing the
   purchase or sale of portfolio securities. Where an authorization is made by a
   committee or group, a record shall be kept of the names of its members who
   participate in the authorization. There shall be retained as part of this
   record: any memorandum, recommendation or instruction supporting or
   authorizing the purchase or sale of portfolio securities and such other
   information as is appropriate to support the authorization.(1)





4. (Rule 31a-1(f)) Such accounts, books and other documents as are required to
   be maintained by registered investment advisers by rule adopted under Section
   204 of the Investment Advisers Act of 1940, to the extent such records are
   necessary or appropriate to record the Portfolio Manager's transactions with
   the Fund.

- ----------
(1) Such information might include: the current Form 10-K, annual and quarterly
    reports, press releases, reports by analysts and from brokerage firms
    (including their recommendation: i.e., buy, sell, hold) or any internal
    reports or portfolio manager reviews.




                                   SCHEDULE C

                              PORTFOLIO MANAGER FEE


         For services provided to the Portfolio Manager Account, the Fund
Manager will pay to the Portfolio Manager, on or before the 10th day of each
calendar month, a monthly fee for the previous calendar month in the amount of
1/12th of: 0.40% of the amount obtained by multiplying the Portfolio Manager's
Percentage (as hereinafter defined) times the Average Total Fund Net Assets (as
hereinafter defined) up to $400 million; 0.36% of the amount obtained by
multiplying the Portfolio Manager's Percentage times the Average Total Fund Net
Assets exceeding $400 million up to and including $800 million; 0.324% of the
amount obtained by multiplying the Portfolio Manager's Percentage times the
Average Total Fund Net Assets exceeding $800 million up to and including $1.2
billion; 0.292% of the amount obtained by multiplying the Portfolio Manager's
Percentage times the Average Total Fund Net Assets exceeding $1.2 billion.

                  "Portfolio Manager's Percentage" means the percentage obtained
by dividing (i) the average of the net asset values of the Portfolio Manager
Account as of the close of the last business day of the New York Stock Exchange
in each calendar week during the preceding calendar month, by (ii) the Average
Total Fund Net Assets.

                  "Average Total Fund Net Assets" means the average of the net
asset values of the Fund as a whole as of the close of the last business day of
the New York Stock Exchange in each calendar week during the preceding calendar
month.

                  The fee shall be pro-rated for any month during which this
Agreement is in effect for only a portion of the month.






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