<SEC-DOCUMENT>0000799195-12-000005.txt : 20120228
<SEC-HEADER>0000799195-12-000005.hdr.sgml : 20120228
<ACCEPTANCE-DATETIME>20120228163119
ACCESSION NUMBER:		0000799195-12-000005
CONFORMED SUBMISSION TYPE:	NSAR-B
PUBLIC DOCUMENT COUNT:		9
CONFORMED PERIOD OF REPORT:	20111231
FILED AS OF DATE:		20120228
DATE AS OF CHANGE:		20120228
EFFECTIVENESS DATE:		20120228

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-B
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04809
		FILM NUMBER:		12647666

	BUSINESS ADDRESS:	
		STREET 1:		C/O ALPS FUND SERVICES, INC.
		STREET 2:		P.O. BOX 328
		CITY:			DENVER
		STATE:			CO
		ZIP:			80201-0328
		BUSINESS PHONE:		303.623.2577

	MAIL ADDRESS:	
		STREET 1:		C/O ALPS FUND SERVICES, INC.
		STREET 2:		P.O. BOX 328
		CITY:			DENVER
		STATE:			CO
		ZIP:			80201-0328
</SEC-HEADER>
<DOCUMENT>
<TYPE>NSAR-B
<SEQUENCE>1
<FILENAME>answer.fil
<TEXT>
<PAGE>      PAGE  1
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<PAGE>      PAGE  3
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<PAGE>      PAGE  4
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<PAGE>      PAGE  8
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SIGNATURE   KIM STORMS
TITLE       ASSISTANT TREASURER

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77B ACCT LTTR
<SEQUENCE>2
<FILENAME>equ77b.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Converted by EDGARwiz</TITLE>
<META NAME="author" CONTENT="Stacey R. Wilson (Open)">
<META NAME="date" CONTENT="02/28/2012">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:624px"><P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></P>
<P style="margin:0px; font-family:Arial; font-size:9pt">To the Shareholders and Board of Trustees of </P>
<P style="margin:0px; font-family:Arial; font-size:9pt">Liberty All-Star&#174; Equity Fund:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Arial; font-size:9pt">In planning and performing our audit of the financial statements of Liberty All-Star&#174; Equity Fund (the &#147;Fund&#148;),<FONT style="font-family:Times New Roman; font-size:11pt"> </FONT>as of and for the year ended December 31, 2011, in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered the Fund's internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt">The management of the Fund is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A fund's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A fund's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the fund are being made only in accordance with authorizations of management and trustees of the fund; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a fund's assets that could have a material effect on the financial statements.</P>
<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt">Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.</P>
<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt">A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the fund's annual or interim financial statements will not be prevented or detected on a timely basis.</P>
<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt">Our consideration of the Fund's internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the Public Company Accounting Oversight Board (United States). However, we noted no deficiencies in the Fund's internal control over financial reporting and its operation, including controls for safeguarding securities, that we consider to be a material weakness, as defined above, as of December 31, 2011.</P>
<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt">This report is intended solely for the information and use of management and the Board of Trustees of Liberty All-Star&#174; Equity Fund and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.</P>
<P style="margin-top:0px; margin-bottom:10px; font-family:Arial; font-size:9pt"><I>DELOITTE &amp; TOUCHE LLP</I></P>
<P style="margin:0px; font-family:Arial; font-size:9pt">Denver, Colorado</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Arial; font-size:9pt">February 16, 2012</P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
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<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>3
<FILENAME>equ77q.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Shareholder Meeting (Unaudited)</TITLE>
<META NAME="author" CONTENT="Jennifer Craig">
<META NAME="date" CONTENT="02/28/2012">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:921.6px"><P style="margin-top:0px; margin-bottom:11.133px; font-family:Calibri,Times New Roman" align=justify><B>Results of the Shareholder Meeting (Unaudited)</B></P>
<P style="margin-top:0px; margin-bottom:11.133px; font-family:Calibri,Times New Roman" align=justify>A Special Meeting of shareholders of the Liberty All-Star Equity Fund (the &#147;Fund&#148;) was held on September 30, 2011 (the &#147;Meeting&#148;). The meeting was held as a result of the acquisition of ALPS Holdings, Inc., ALPS Advisors&#146; parent company, by DST Systems, Inc. On July 19, 2011, the record date of the Meeting, the Fund had outstanding 182,678,079 shares of common stock. At the Meeting, the following matters were voted on and approved by the shareholders. The results of the Special Meeting of shareholders are noted below.</P>
<P style="margin-top:0px; margin-bottom:11.133px; font-family:Calibri,Times New Roman" align=justify><B>Proposal 1</B> - To approve a new Investment Advisory Agreement between the Fund and ALPS Advisors, Inc.:</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=115.267 /><TD width=107.8 /><TD width=95.933 /><TD width=102.067 /><TD width=96.133 /><TD width=72 /><TD width=60 /><TD width=66.067 /><TD width=72 /><TD width=54.067 /><TD width=53.867 /></TR>
<TR><TD style="margin-top:0px; border:1px solid #000000" valign=top width=115.267><P style="margin:0px; padding:0px; font-size:9pt">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=401.933 colspan=4><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>Number of Votes</P>
</TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=198.067 colspan=3><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Percentage of Total Outstanding Shares</P>
</TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=179.933 colspan=3><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Percentage of Votes</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.267><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>Advisor</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=107.8><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Total Record Date Votes</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.933><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Affir<A NAME="_GoBack"></A>mative</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=102.067><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Against</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.133><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Abstain</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=72><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Affirmative</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Against</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=66.067><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Abstain</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=72><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Affirmative </P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=54.067><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Against</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=53.867><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt">Abstain</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.267><P style="margin-top:0px; margin-bottom:8px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>ALPS Advisors, Inc.</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=107.8><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>111,891,758.552</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.933><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>99,156,164.286</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=102.067><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>9,896,521.414</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.133><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>2,839,072.852</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=72><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>54.279%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=60><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>5.417%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=66.067><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>1.554%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=72><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>88.618%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=54.067><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>8.845%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=53.867><P style="margin:0px; font-family:Calibri,Times New Roman; font-size:9pt" align=justify>2.537%</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:11.133px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:11.133px; font-family:Calibri,Times New Roman" align=justify><B>Proposal 2 </B>- To approve a new Portfolio Management Agreement for the Fund with ALPS Advisors, Inc. and each of the following Sub-Advisers:</P>
</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=133.2 /><TD width=116.533 /><TD width=110.467 /><TD width=103.133 /><TD width=95.667 /><TD width=77.533 /><TD width=55.067 /><TD width=56 /><TD width=77.533 /><TD width=55.067 /><TD width=55.8 /></TR>
<TR><TD style="margin-top:0px; border:1px solid #000000" valign=top width=133.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=425.8 colspan=4><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>Number of Votes</P>
</TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=188.6 colspan=3><P style="margin:0px; font-family:Calibri,Times New Roman">Percentage of Total Outstanding Shares</P>
</TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=188.4 colspan=3><P style="margin:0px; font-family:Calibri,Times New Roman">Percentage of Votes</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=133.2><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>Sub-Adviser</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=116.533><P style="margin:0px; font-family:Calibri,Times New Roman">Total Record Date Votes</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=110.467><P style="margin:0px; font-family:Calibri,Times New Roman">Affirmative</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.133><P style="margin:0px; font-family:Calibri,Times New Roman">Against</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.667><P style="margin:0px; font-family:Calibri,Times New Roman">Abstain</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman">Affirmative</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman">Against</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56><P style="margin:0px; font-family:Calibri,Times New Roman">Abstain</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman">Affirmative</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman">Against</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.8><P style="margin:0px; font-family:Calibri,Times New Roman">Abstain</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=133.2><P style="margin-top:0px; margin-bottom:8.867px; font-family:Calibri,Times New Roman">Cornerstone Capital Management, Inc.</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=116.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>111,891,758.552</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=110.467><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>98,968,374.551</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.133><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>9,948,658.490</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.667><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>2,974,725.511</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>54.176%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>5.446%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>1.628%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>88.451%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>8.891%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.8><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>2.658%</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=133.2><P style="margin-top:0px; margin-bottom:8.867px; font-family:Calibri,Times New Roman">Matrix Asset Advisers, Inc.</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=116.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>111,891,758.552</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=110.467><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>98,923,856.755</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.133><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>9,948,113.583</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.667><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>3,019,788.214</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>54.152%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>5.445%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>1.653%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>88.411%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>8.891%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.8><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>2.698%</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=133.2><P style="margin-top:0px; margin-bottom:8.867px; font-family:Calibri,Times New Roman">Pzena Investment &nbsp;&nbsp;Management, LLC</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=116.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>111,891,758.552</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=110.467><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>98,922,544.177</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.133><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>9,911,769.545</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.667><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>3,057,444.830</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>54.151%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>5.426%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>1.673%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>88.410%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>8.858%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.8><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>2.732%</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=133.2><P style="margin-top:0px; margin-bottom:8.867px; font-family:Calibri,Times New Roman">Schneider Capital Management Corporation</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=116.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>111,891,758.552</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=110.467><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>98,949,779.627</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.133><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>9,870,727.127</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.667><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>3,071,251.798</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>54.166%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>5.403%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>1.681%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>88.434%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>8.822%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.8><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>2.744%</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=133.2><P style="margin-top:0px; margin-bottom:8.867px; font-family:Calibri,Times New Roman">TCW Investment Management Co.</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=116.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>111,891,758.552</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=110.467><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>98,877,4387.005</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.133><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>10,007,072.012</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.667><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>3,007,248.535</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>54.126%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>5.478%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=56><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>1.646%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=77.533><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>88.369%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.067><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>8.944%</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=55.8><P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>2.687%</P>
</TD></TR>
</TABLE>
<DIV style="width:921.6px"><P style="margin-top:0px; margin-bottom:11.133px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:11.133px" align=justify><BR>
<BR></P>
</DIV></BODY>
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<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
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<TEXT>
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<DIV style="width:672px"><P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>FUND MANAGEMENT AGREEMENT</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>FUND MANAGEMENT AGREEMENT dated November 1, 2011, between Liberty All-Star Equity Fund, a business trust organized under the laws of the Commonwealth of Massachusetts (the &#147;Trust&#148;), and ALPS Advisors, Inc., a corporation organized under the laws of the State of Colorado (&#147;Manager&#148;).</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>WHEREAS the Trust will operate as a closed-end investment company registered under the Investment Company Act of 1940 (&#147;Investment Company Act&#148;) for the purpose of investing and reinvesting its assets in securities pursuant to the investment objectives, policies and restrictions set forth in its Declaration of Trust and By-Laws, as amended from time to time, and its registration statement on Form N-2 under the Investment Company Act and the Securities Act of 1933 (the &#147;Registration Statement&#148;), all as heretofore amended and supplemented; and the Trust desires to avail itself of the services, information, advice, assistance and facilities of the Manager and to have the Manager provide or perform for it various administrative, management and other services; and</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>WHEREAS the Manager is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the &#147;Advisers Act&#148;), and desires to provide services to the Trust in consideration of and on the terms and conditions hereinafter set forth;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>NOW, THEREFORE, the Trust and the Manager agree as follows: </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>1. &nbsp;<U>Employment of the Manager.</U> The Trust hereby employs the Manager to manage the investment and reinvestment of the Trust&#146;s assets in the manner set forth in Section 2(A) of this Agreement and to provide the other services set forth in Section 2 of this Agreement, subject to the direction of the Board of Trustees and the officers of the Trust, for the period, in the manner, and on the terms hereinafter set forth. The Manager hereby accepts such employment and agrees during such period to render the services and to assume the obligations herein set forth. The Manager shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized (whether herein or otherwise), have no authority to act for or represent the Trust in any way or otherwise be deemed an agent of the Trust.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>2. &nbsp;<U>Obligation of and Services to be Provided by the Manager.</U> The Manager undertakes to provide the services hereinafter set forth and to assume the following obligations:</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:17.4px; float:left">A.</P>
<P style="margin:0px; padding-left:17.4px; text-indent:-2px" align=justify>Investment Management Services. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(1)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>The Manager shall have overall supervisory responsibility for the general management and investment of the Trust&#146;s assets and securities portfolio subject to and in accordance with the investment objectives, policies and restrictions of the Trust, and any directions which the Trust&#146;s Trustees may issue to the Manager from time to time.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(2)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>The Manager shall provide overall investment programs and strategies for the Trust, shall revise such programs as necessary and shall monitor and report periodically to the Trustees concerning the implementation of the programs.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.133px; float:left">(3)</P>
<P style="margin:0px; padding-left:21.133px; text-indent:-2px" align=justify>The Trust and the Manager intend to appoint one or more persons or companies (&#147;Portfolio Managers&#148;), each such Portfolio Manager to have full investment discretion and to make all determinations with respect to the investment and reinvestment of the portion of the Trust&#146;s assets assigned to that Portfolio Manager and the purchase and sale of portfolio securities with those assets, all within the Trust&#146;s investment objectives, policies and restrictions, and the Trust will take such steps as may be necessary to implement such appointments. The Manager shall not be responsible or liable for the investment merits of any decision by a Portfolio Manager to purchase, hold or sell a security for the portfolio of the Trust. The Manager shall advise the Trustees of the Trust which Portfolio Managers the Manager believes are best suited to invest the assets of the Trust; shall monitor and evaluate the investment performance of each Portfolio Manager employed by the Trust; shall allocate and reallocate the portion of the Trust&#146;s assets to be managed by each Portfolio Manager; shall recommend changes of or additional Portfolio Managers when deemed appropriate by the Manager; shall coordinate and monitor the investment activities of the Portfolio Managers to ensure compliance with the Trust&#146;s investment objectives, policies and restrictions and applicable laws, including the Investment Company Act and the Internal Revenue Code of 1986, as amended; shall have full investment discretion to make all determinations with respect to the investment of the Trust&#146;s assets not then managed by a Portfolio Manager; and shall implement procedures reasonably designed to ensure that the Portfolio Managers comply with the Trust&#146;s investment objectives, policies and restrictions.</P>
<P style="margin:0px; clear:left" align=justify><BR>
<BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.133px; float:left">&nbsp;(4)</P>
<P style="margin:0px; padding-left:21.133px; text-indent:-2px" align=justify>The Manager shall render regular reports to the Trust, at regular meetings of the Trustees, of, among other things, the decisions that it has made with respect to the allocation of the Trust&#146;s assets among Portfolio Managers. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(5)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>The Manager shall comply &#150; and to the extent the Manager takes or is required to take action on behalf of the Trust hereunder shall cause the Trust to comply &#150; with all applicable requirements of the Investment Company Act and other applicable laws, rules, regulations, orders and codes of ethics, as well as all investment objectives, policies, restrictions and procedures adopted by the Trust and the Trust&#146;s registration statement on Form N-2, Declaration of Trust and By-laws.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px" align=justify>B. &nbsp;Provision of Information Necessary for Preparation of Securities Registration Statements, Amendments and Other Materials.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>The Manager will make available and provide financial, accounting and statistical information concerning the Manager required by the Trust in the preparation of registration statements, reports and other documents required by Federal and state securities laws, and such other information as the Trust may reasonably request for use in the preparation of such documents or of other materials necessary or helpful for the distribution of the Trust&#146;s shares.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; float:left">C.</P>
<P style="margin:0px; padding-left:18.267px; text-indent:-2px" align=justify>Other Obligations and Services. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; float:left">(l)</P>
<P style="margin:0px; padding-left:18.267px; text-indent:-2px" align=justify>The Manager will make available its officers and employees to the Trustees and officers of the Trust for consultation and discussions regarding the administration and management of the Trust and its investment activities.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(2)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>The Manager will adopt a written code of ethics complying with the requirements of Rule&nbsp;204A-1 under the Advisers Act and of Rule 17j-1 under the Investment Company Act, and will provide the Trust with a copy of the code of ethics and evidence of its adoption. Within forty-five (45) days of the end of the last calendar quarter of each year while this Agreement is in effect, or at any other time required by the Board of Trustees, the President or a Vice President or other officer of the Manager shall certify to the Trust that the Manager has complied with the requirements of Rule 17j-1 during the previous year and that there has been no violation of the Manager&#146;s code of ethics or, if such a violation has occurred, that appropriate action was taken in response to such violation. Upon the written request of the Trust, the Manager shall permit the Trust, its employees or its agents to examine the reports required to be made by the Manager by Rule 17j-1(c)(2)(ii). &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(3)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>The Manager will maintain and implement compliance policies and 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 Investment Company Act). &nbsp;The Manager also will provide the Trust&#146;s Chief Compliance Officer with periodic reports regarding the Manager&#146;s compliance with the Federal Securities Laws and the Manager&#146;s compliance policies and procedures, which may include, from time to time, a copy and/or summary of such compliance policies and procedures, and a report of the annual review determining the effectiveness of such compliance policies and procedures.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(4)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>The Manager (or upon written request of the Manager, one or more Portfolio Managers) will vote all proxies solicited by or with respect to the issuers of securities in which assets of the Trust may be invested from time to time in accordance with such policies as shall be determined by the Manager, and reviewed and approved by the Board of Trustees.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">3.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Execution and Allocation of Portfolio Brokerage Commissions.</U> The Portfolio Managers, subject to and in accordance with any directions the Trust may issue from time to time, shall place, in the name of the Trust, orders for the execution of the Trust&#146;s portfolio transactions. When placing such orders, the obligation of each Portfolio Manager shall be as provided in the applicable Portfolio Management Agreement. The Manager will oversee the placement of orders by Portfolio Managers in accordance with their respective Portfolio Management Agreements and will render regular reports to the Trust of the total brokerage business placed on behalf of the Trust by the Portfolio Managers and the manner in which such brokerage business has been allocated.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px" align=justify>The Trust hereby agrees that any entity or person associated with the Manager that is a member of a national securities exchange is authorized to effect any transaction on such exchange for the account of the Trust to the extent and as permitted by Section 11(a)(1)(H) of the Securities Exchange Act of 1934, as amended (&#147;1934 Act&#148;).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Subject to the appropriate policies and procedures approved by the Board of Trustees, the Manager may, to the extent authorized by Section 28(e) of the 1934 Act, cause the Trust to pay a broker or dealer that provides brokerage or research services to the Manager, the Portfolio Manager or the Trust an amount of commission for effecting a Trust transaction in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Manager determines, in good faith, that such amount of commission is reasonable in relationship to the value of such brokerage or research services provided in terms of that particular transaction or the Manager&#146;s overall responsibilities to the Trust or its other investment advisory clients. &nbsp;To the extent authorized by said Section 28(e) and the Board of Trustees, the Manager shall not be deemed to have acted unlawfully or to have breached any duty created by this Agreement or otherwise solely by reason of such action. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">4. </P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Expenses of the Trust.</U> It is understood that the Trust will pay all its expenses other than those expressly assumed by the Manager, which expenses payable by the Trust shall include:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; float:left">A.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Fees of the Manager; </P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">B.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Expenses of all audits by independent public accountants; </P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">C.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Expenses of administrator, transfer agent, pricing services, bookkeeping services, registrar, dividend disbursing agent and shareholder record keeping services (including reasonable fees and expenses payable to the Manager, or an affiliate of the Manager, for such services);</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">D.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Expenses of custodial services;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">E.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Expenses of obtaining quotations for calculating the value of the Trust&#146;s net assets;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">F.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Salaries and other compensation of any of its executive officers and employees who are not officers, directors, stockholders or employees of the Manager or any of its affiliates;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">G.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Taxes levied against the Trust and the expenses of preparing tax returns and reports;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">H.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Brokerage fees and commissions in connection with the purchase and sale of portfolio securities for the Trust;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">I.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Expenses associated with any offering (subject to any written agreement by the Manager or an affiliate of the Manager to reimburse any portion of such expenses); </P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">J.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Costs, including the interest expense, of borrowing money; </P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">K.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Costs and/or fees incident to Trustee and shareholder meetings of the Trust, the preparation and mailings of proxy material, prospectuses and reports of the Trust to its shareholders, the filing of reports with regulatory bodies, the maintenance of the Trust&#146;s legal existence, membership dues and fees of investment company industry trade associations, the listing (and maintenance of such listing) of the Trust&#146;s shares on stock exchanges, and the registration of shares with Federal and state securities authorities;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">L.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Legal fees and expenses (including reasonable fees for legal services rendered by the Manager or its affiliates), including the legal fees related to the registration and continued qualification of the Trust&#146;s shares for sale;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">M.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Costs of printing stock certificates representing shares of the Trust, if any;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">N.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Trustees&#146; fees and expenses of Trustees who are not directors, officers, employees or stockholders of the Manager or any of its affiliates;</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">O.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Fees for the fidelity bond required by Section 17(g) of the Investment Company Act, or other insurance premiums; and</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">P.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Fees payable to Federal and state authorities in connection with the registration of the Trust&#146;s shares.</P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; clear:left; float:left">Q.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:18.267px; text-indent:-2px" align=justify>Nonrecurring and extraordinary expenses, such as indemnification payments or damages awarded in &nbsp;&nbsp;litigation or settlements made.</P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; clear:left; float:left">5.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify><U>Activities and Affiliates of the Manager.</U> </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; float:left">A.</P>
<P style="margin:0px; padding-left:18.267px; text-indent:-2px" align=justify>The services of the Manager to the Trust hereunder are not to be deemed exclusive, and the Manager and any of its affiliates shall be free to render similar services to others. The Manager shall use the same skill and care in the management of the Trust&#146;s assets as it uses in the administration of other accounts to which it provides asset management, consulting and portfolio manager selection services, but shall not be obligated to give the Trust more favorable or preferential treatment vis-a-vis its other clients.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:17.4px; float:left">B.</P>
<P style="margin:0px; padding-left:17.4px; text-indent:-2px" align=justify>Subject to, and in accordance with, the Declaration of Trust and By-Laws of the Trust and to Section 10(a) of the Investment Company Act, it is understood that Trustees, officers, agents and shareholders of the Trust are or may be interested in the Manager or its affiliates as directors, officers, agents or stockholders of the Manager or its affiliates; that directors, officers, agents and stockholders of the Manager or its affiliates are or may be interested in the Trust as Trustees, officers, agents, shareholders or otherwise; that the Manager or its affiliates may be interested in the Trust as shareholders or otherwise; and that the effect of any such interests shall be governed by said Declaration of Trust, By-Laws and the Investment Company Act.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px" align=justify>6. &nbsp;<U>Fees for Services: Compensation of Manager and Portfolio Managers.</U> The compensation of the Manager for its services under this Agreement shall be calculated and paid by the Trust in accordance with the attached Exhibit A. The Manager will compensate the Portfolio Managers as provided in the Portfolio Management Agreement entered into with the Portfolio Managers from time to time.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.333px; float:left">7.</P>
<P style="margin:0px; padding-left:15.333px; text-indent:-2px" align=justify><U>Liabilities of the Manager.</U> </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; float:left">A.</P>
<P style="margin:0px; padding-left:18.267px; text-indent:-2px" align=justify>In the absence of willful misfeasance, bad faith, gross negligence, or reckless disregard of obligations or duties hereunder on the part of the Manager, the Manager shall not be subject to liability to the Trust or to any shareholder of the Trust for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:17.4px; float:left">B.</P>
<P style="margin:0px; padding-left:17.4px; text-indent:-2px" align=justify>No provision of this Agreement shall be construed to protect any Trustee or officer of the Trust, or the Manager, from liability in violation of Sections 17(h) and (i) of the Investment Company Act.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">8.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify><U>Renewal and Termination.</U> </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:18.267px; float:left">A.</P>
<P style="margin:0px; padding-left:18.267px; text-indent:-2px" align=justify>This Agreement shall continue in effect for two years from the date of this Agreement and shall continue from year to year thereafter provided such continuance is specifically approved at least annually by (i) the Trust&#146;s Board of Trustees or (ii) a vote of a majority of the outstanding voting securities of the Trust (as defined in the Investment Company Act), provided that in either event the continuance is also approved by a majority of the Board of Trustees who are not &#147;interested persons&#148; (as defined in the Investment Company Act) of any party to this Agreement (&#147;Independent Trustees&#148;), by vote cast in person at a meeting called for the purpose of voting on such approval. The aforesaid requirement that continuance of this Agreement be &#147;specifically approved at least annually&#148; shall be construed in a manner consistent with the Investment Company Act and the Rules and Regulations thereunder.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:17.4px; float:left">B.</P>
<P style="margin:0px; padding-left:17.4px; text-indent:-2px" align=justify>This Agreement: </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:20.4px; float:left">(a)</P>
<P style="margin:0px; padding-left:20.4px; text-indent:-2px" align=justify>may at any time be terminated without the payment of any penalty either by vote of the Trustees of the Trust, including a majority of the Independent Trustees, or by vote of a majority of the outstanding voting securities of the Trust, on sixty (60) days&#146; written notice to the Manager;</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left">(b)</P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>shall immediately terminate in the event of its assignment (as that term is defined in the Investment Company Act); and</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:20.4px; float:left">(c)</P>
<P style="margin:0px; padding-left:20.4px; text-indent:-2px" align=justify>may be terminated by the Manager on sixty (60) days&#146; written notice to the Trust.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:17.4px; float:left">C.</P>
<P style="margin:0px; padding-left:17.4px; text-indent:-2px" align=justify>Any notice under this Agreement shall be given in writing addressed and delivered or mailed postpaid, to the other party to this Agreement at its principal place of business.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px" align=justify>9. &nbsp;<U>No Personal Liability.</U> Reference is hereby made to the Declaration of Trust dated August&nbsp;20, 1986 establishing the Trust, 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 Board of Trustees under said Declaration of Trust, and not to the Trustees personally, and no Trustee, shareholder, officer, agent or employee of the Trust shall be held to any personal liability hereunder or in connection with the affairs of the Trust, but only the trust estate under said Declaration of Trust is liable under this Agreement. Without limiting the generality of the foregoing, neither the Manager nor any of its officers, directors, shareholders 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 Trust or of any successor of the Trust, 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 Trust.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>10. &nbsp;<U>Use of Name.</U> The Trust may use the name &#147;Liberty All-Star,&#148; &#147;All-Star,&#148; or a similar name only for so long as this Agreement or any extension, renewal or amendment hereof remains in effect, including any similar agreement with any organization which shall have succeeded to the Manager&#146;s business as investment adviser. If this Agreement is no longer in effect, the Trust (to the extent it lawfully can) will cease to use such name or any other name indicating that it is advised by or otherwise connected with the Manager. The Trust acknowledges that the Manager may grant the non-exclusive right to use the name &#147;Liberty All-Star&#148; or &#147;All-Star&#148; to any other corporation or entity, including but not limited to any investment company of which the Manager or any subsidiary or affiliate thereof or any successor to the business or any thereof shall be an investment adviser.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>11. &nbsp;<U>Severability.</U> If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of this Agreement shall not be affected thereby.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:49px; float:left">12.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:49px; text-indent:-2px" align=justify><U>Governing Law.</U> To the extent that state law has not been 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.<U> </U></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:49px; clear:left; float:left">13.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:49px; text-indent:-2px" align=justify><U>Interpretation</U>. Nothing herein contained shall be deemed to require the Trust to take any action contrary to this Agreement and its Declaration of Trust or By-Laws, or any applicable statutory or regulatory requirements to which it is subject or by which it is bound, or to relieve or deprive the Trustees of their responsibility for and control of the conduct of the affairs of the Trust.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:49px; clear:left; float:left">14.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:49px; text-indent:-2px" align=justify><U>Entire Agreement</U>. &nbsp;This Agreement contains the entire understanding and agreement of the parties.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:49px; clear:left; float:left">15.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:49px; text-indent:-2px" align=justify><U>Headings</U>. &nbsp;The headings in the sections of this Agreement are inserted for convenience of reference only and shall not constitute a part hereof.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:49px; clear:left; float:left">16.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:49px; text-indent:-2px" align=justify><U>Force Majeure</U>. &nbsp;The Manager shall not be liable for delays or errors occurring by reason of circumstances beyond its control, including but not limited to acts of civil or military authority, national emergencies, work stoppages, fire, flood, catastrophe, acts of God, insurrection, war, riot, or failure of communication or power supply. In the event of equipment breakdowns beyond its control, the Manager shall take reasonable steps to minimize service interruptions but shall have no liability with respect thereto.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:49px; clear:left; float:left">17.</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:49px; text-indent:-2px" align=justify><U>Records</U>. &nbsp;The records relating to the services provided under this Agreement shall be the property of the Trust and shall be under its control; however, the Trust shall furnish to the Manager such records and permit it to retain such records (either in original or in duplicate form) as it shall reasonably require in order to carry out its duties. &nbsp;In the event of the termination of this Agreement, such records shall promptly be returned to the Trust by the Manager free from any claim or retention of rights therein, provided that the Manager may retain copies of any such records that are required by law. &nbsp;The Manager shall keep confidential any information obtained in connection with its duties hereunder and disclose such information only if the Trust has authorized such disclosure or if such disclosure is expressly required or lawfully requested by applicable Federal or state regulatory authorities.</P>
<P style="margin:0px; clear:left" align=justify><BR>
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<P style="margin:0px; font-size:8pt">DC-867116&nbsp;v1</P>
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<P style="margin:0px" align=justify>IN WITNESS WHEREOF, the parties hereto have caused this Fund Management Agreement to be executed, as of the day and year first written above.</P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=375.4 /><TD width=291.4 /></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px">LIBERTY ALL-STAR EQUITY FUND</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px"><BR></P>
<P style="margin:0px">By: <U>/s/ William R. Parmentier, Jr.</U></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px">Name: William R. Parmentier, Jr.</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px">Title: President</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px">ALPS ADVISORS, INC.</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">By: <U>/s/ Thomas A. Carter</U></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px">Name: &nbsp;Thomas A. Carter</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px">Title: President</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=375.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=291.4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
</TABLE>
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<P style="margin:0px; page-break-before:always" align=center><B>EXHIBIT A</B></P>
<P style="margin:0px" align=center><B>MANAGER FEE</B></P>
<P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:9pt" align=justify>For the investment management services provided to the Trust pursuant to Section 2(A) of this Agreement, the Trust will pay to the Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Fund for the previous calendar month at the annual rate of: 0.80% of the first $400 million of average daily net assets; 0.72% of average daily net assets exceeding $400 million up to and including $800 million; 0.648% of average daily net assets exceeding $800 million up to and including $1.2 billion; and 0.584% of average daily net assets exceeding $1.2 billion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:9pt" align=justify>Pursuant to Section 6 of this Agreement, the Manager will pay to each Portfolio Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Manager for the previous calendar month at the annual rate of: 0.40% of the amount obtained by multiplying the Portfolio Manager&#146;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&#146;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&#146;s Percentage times the Average Total Fund Net Assets exceeding $800 million up to and including $1.2 billion; and 0.292% of the amount obtained by multiplying the Portfolio Manager&#146;s Percentage times the Average Total Fund Net Assets exceeding $1.2 billion. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:9pt" align=justify>&#147;Portfolio Manager&#146;s Percentage&#148; means the percentage obtained by dividing (i) the average daily net asset values of the portion of the portfolio assets of the Trust assigned to that Portfolio Manager during the preceding calendar month by (ii) the Average Total Fund Net Assets. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:9pt" align=justify>&#147;Average Total Fund Net Assets&#148; means the average daily net asset values of the Trust as a whole during the preceding calendar month. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:9pt" align=justify>The fees shall be pro rated for any month during which this Agreement is in effect for only a portion of the month. &nbsp;</P>
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<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
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<FILENAME>q2.htm
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<META NAME="date" CONTENT="07/19/2011">
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<DIV style="width:672px"><P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT</B></P>
<P style="margin:0px" align=center><B>MATRIX ASSET ADVISERS, INC.</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>___________ ___, 2011</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Re: <U>Portfolio Management Agreement</U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Ladies and Gentlemen:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>Liberty All-Star Equity Fund (the &#147;Fund&#148;) is a diversified closed-end investment company registered under the Investment Company Act of 1940, as amended &nbsp;(the &#147;Act&#148;), and is subject to the rules and regulations promulgated thereunder.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>ALPS Advisors, Inc. (the &#147;Fund Manager&#148;) evaluates and recommends portfolio managers for the assets of the Fund, and the Fund Manager or an affiliate of the Fund Manager is responsible for the day-to-day Fund administration of the Fund.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>1. <U>Employment as a Portfolio Manager.</U> &nbsp;The Fund, being duly authorized, hereby employs Matrix Asset Advisers, Inc. (&#147;Portfolio Manager&#148;) as a discretionary portfolio manager, on the terms and conditions set forth herein, of that portion of the Fund&#146;s assets which the Fund Manager determines to assign to the Portfolio Manager (those assets being referred to as the &#147;Portfolio Manager Account&#148;). <FONT style="font-family:Times New Roman Bold,Times New Roman"><B>&nbsp;</B></FONT>The Fund Manager may, from time to time, allocate and reallocate the Fund&#146;s assets among the Portfolio Manager and the other portfolio managers of the Fund&#146;s assets. &nbsp;

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.

<FONT style="font-size:20pt">

 &nbsp;</FONT>The Portfolio Manager&#146;s responsibilities<A NAME="_DV_X17"></A><A NAME="_DV_C19"></A>

 for providing portfolio management services to the Fund shall be limited to the Portfolio Manager Account.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>2. <U>Acceptance of Employment; Standard of Performance.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>3. <U>Portfolio Management Services of Portfolio Manager.</U> &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">A.</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>In providing portfolio management services to the Portfolio Manager Account, the Portfolio Manager shall be subject to the Fund&#146;s Declaration of Trust and By-Laws, as amended from time to time, 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 &#147;Prospectus&#148;), the investment objectives, 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. &nbsp;The Portfolio Manager shall not consult with any other portfolio manager of the Fund concerning transactions for the Fund in securities or other assets.</P>
<A NAME="_DV_C34"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C35"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:72px; float:left">

B.

</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C36"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C37"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(i)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C38"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C39"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(ii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C40"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C41"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C42"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C43"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iv)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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<A NAME="_DV_C45"></A>

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(v)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

cooperate with and provide reasonable assistance to the Fund Manager, the Fund&#146;s administrator, 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.

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>4. <U>Transaction Procedures.</U> &nbsp;All portfolio transactions for the Portfolio Manager Account will be consummated by payment to or delivery by the custodian of the Fund (the &#147;Custodian&#148;), 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>5. <U>Allocation of Brokerage.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; float:left">A. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>In doing so, the Portfolio Manager&#146;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 &#147;best execution&#148; 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">B. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">C. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager shall not execute any portfolio transactions for the Portfolio Manager Account with a broker or dealer which is an &#147;affiliated person&#148; (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 &#147;affiliated persons&#148; of the Fund or its portfolio managers.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px; clear:left" align=justify>6. <U>Proxies.</U> &nbsp;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, and reviewed and approved by the Board of Trustees. &nbsp;

Upon the written request of the Fund Manager, the 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, and reviewed and approved by the Board of Trustees.

<FONT style="color:#0000FF"><U>

 &nbsp;

</U></FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>7. <U>Fees for Services.</U> 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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>8. <U>Other Investment Activities of Portfolio Manager.</U> 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 (&#147;Client Accounts&#148;), 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 (&#147;Affiliated Accounts&#148;). 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>9. <U>Limitation of Liability.</U> &nbsp;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&#146;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).</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>10. <U>Confidentiality.</U> &nbsp;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>11. <U>Assignment.</U> &nbsp;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. &nbsp;Should the Fund enter into a new contract with the Portfolio Manager in connection with an assignment, the Portfolio Manager agrees to pay all costs and expenses incurred by the Fund to obtain shareholder approval of the new contact, including costs associated with the preparation and mailing of the Fund&#146;s proxy statement and shareholder meeting and proxy solicitation fees. </P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>12. <U>Representations, Warranties and Agreements of the Fund.</U> &nbsp;The Fund represents, warrants and agrees that:</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>A. The Portfolio Manager has been duly appointed to provide investment services to the Portfolio Manager Account as contemplated hereby.</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>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 Portfolio Manager Account and such other information as is necessary for the Portfolio Manager to carry out its obligations under this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>13. <U>Representations, Warranties and Agreements of the Portfolio Manager.</U> &nbsp;The Portfolio Manager represents, warrants and agrees that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>A. It is registered as an &#147;investment adviser&#148; under the Investment Advisers Act of 1940, as amended (&#147;Advisers Act&#148;) and will continue to be so registered for as long as this Agreement remains in effect.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 material violation of its code of ethics or, if such a violation has occurred, that appropriate action was taken in response to such violation. &nbsp;It will promptly notify the Fund Manager of any material change to its code of ethics or material violation of its code of ethics.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 Board of Trustees under said Declaration of Trust, as Trustees and not to the Trustees 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. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:62.4px; width:101.4px; float:left">F.</P>
<P style="margin:0px; padding-left:101.4px; text-indent:-2px" align=justify>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).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">G.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;SEC&#148;), check the &#147;13F Combination Report&#148; box and on the Form 13F Summary Page identify &#147;ALPS Advisors, Inc.&#148; as another manager for which the Portfolio Manager is filing the Form 13F report; (ii) within 60 days after the end of each calendar year, provide the Fund Manager with a certification that the Portfolio Manager&#146;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.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">H.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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&#146;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&#146;s compliance policies and procedures; and (c) the name of the Portfolio Manager&#146;s Chief Compliance Officer to act as a liaison for compliance matters that may arise between the Fund and the Portfolio Manager.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">I.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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. &nbsp;The Portfolio Manager agrees to bear all reasonable expenses of the Fund, if any, arising out of an assignment or change in control.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">J.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager agrees to maintain an appropriate level of errors and omissions or professional liability insurance coverage.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>14. <U>Amendment.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>15. <U>Effective Date; Term.</U> &nbsp;This Agreement shall become effective on the date first above written, provided that this Agreement shall not take effect unless it has first been approved: (1) by a vote of a majority of the Trustees who are not &#147;interested persons&#148; (as defined in the Act) of any party to this Agreement (&#147;Independent Trustees&#148;), cast in person at a &nbsp;meeting called for the purpose of voting on such approval, and (ii) by vote of &#147;a majority of the outstanding voting securities&#148; (as defined in the Act) of the Fund. &nbsp;This Agreement shall continue for two years from the date of this Agreement and from year to year thereafter provided such continuance is specifically approved at least annually by (i) the Fund&#146;s Board of Trustees or (ii) a vote of a majority of the outstanding voting securities of the Fund, provided that in either event such continuance is also approved by a majority of the Independent Trustees, by vote cast in person at a meeting called for the purpose of voting on such approval. &nbsp;If the SEC issues an order to the Fund and the Fund Manager for an exemption from Section 15(a) of the Act, then, in accordance with the application of the Fund and the Fund Manager, the continuance of this Agreement after initial approval by the Trustees as set forth above, shall be subject to approval by a majority of the outstanding voting securities of the Fund at the regularly scheduled annual meeting of the Fund&#146;s shareholders next following the date of this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>16. <U>Termination.</U> &nbsp;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&#146; written notice to the Portfolio Manager in the case of termination by the Fund or the Fund Manager, or ninety (90) days&#146; 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>17. <U>Applicable Law.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>18. <U>Severability; Counterparts.</U> &nbsp;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. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>19. &nbsp;<U>Use of Name</U>. &nbsp;The Portfolio Manager agrees and acknowledges that the Fund Manager is the sole owner of the names and marks &#147;Liberty All-Star&#148; and &#147;All-Star&#148;, 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. &nbsp;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. &nbsp;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. &nbsp;Consent by the Fund Manager shall not be unreasonably withheld. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:19.2px" align=justify><U>20. &nbsp;Notices</U>. All notices and other communications hereunder shall be in writing, shall be deemed to have been given when received or when sent by U.S. mail, overnight carrier or facsimile, and shall be given to the following addresses (or such other addresses as to which notice is given):</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px" align=justify>To Fund Manager:</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">ALPS Advisors, Inc.<BR>
1290 Broadway, Suite 1100<BR>
Denver, Colorado 80203<BR>
Attn: General Counsel<BR>
Phone: &nbsp;(303) 623-2577<BR>
Fax: (303) 623-7850</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">To the Portfolio Manager:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Matrix Asset Advisers, Inc.</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">747 Third Avenue</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">New York, NY &nbsp;10017</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Attn: &nbsp;</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Phone:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Fax:</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="margin:0px" align=center>******************</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">LIBERTY ALL-STAR EQUITY FUND</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">ALPS ADVISORS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">ACCEPTED:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">MATRIX ASSET ADVISERS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">By: ________________________________________</P>
<P style="margin:0px">Name:</P>
<P style="margin:0px">Title:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=114 /><TD width=363.667 /></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px">SCHEDULES:</P>
</TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">A.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Operational Procedures </P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">B. &nbsp;</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Records To Be Maintained By The Portfolio Manager</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">C. </P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Portfolio Manager Fee</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE A</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>MATRIX ASSET ADVISERS, INC.</B></P>
<P style="margin:0px" align=center><B>OPERATIONAL PROCEDURES</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The necessary information must be transmitted via facsimile machine to Max King at State Street at 617-662-2342 and contain an authorized signature.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Liberty All-Star Equity Fund trade reporting requirements:</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Name of Fund &amp; Portfolio Manager</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Trade date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">3.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Settlement date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">4.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase or sale</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">5.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Security name/description</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">6.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Cusip / sedol / or other numeric identifier</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">7.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase/sale price per share or unit</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">8.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Interest purchased/sold (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">9.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Aggregate commission amount</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">10.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Indication as to whether or not commission amounts are ALPS Directed.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">11.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Executing broker and clearing bank (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">12.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Total net amount of the transaction</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">13.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Sale lot disposition method, if different from the established policy of Lowest Cost.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">14.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Confirmation of DTC trades; please advise brokers to use the custodian&#146;s DTC ID system number to facilitate the receipt of information by the custodian. &nbsp;The Portfolio Manager will affirm trades to the custodian.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; clear:left" align=justify><BR></P>
<A NAME="OLE_LINK3"></A><A NAME="OLE_LINK4"></A><P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Commission Reporting</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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. &nbsp;The Portfolio Manager is responsible for comparing their records to the accounting records and contacting the Fund Manager regarding discrepancies.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Trade Exception Processing</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;best efforts&#148; basis.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:192px; text-indent:48px; clear:left" align=justify><B><U>State Street Delivery Instructions</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>DTC instructions</U></B>:</P>
<P style="line-height:10pt; margin:0px" align=justify><B>For Liberty All Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Depository Trust Company (DTC)</P>
<P style="line-height:10pt; margin:0px" align=justify>Participant # 0997</P>
<P style="line-height:10pt; margin:0px" align=justify>Agent Bank# 20997</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: C7R3</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Physical Securities DVP/RVP</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>DTC/New York Window</P>
<P style="line-height:10pt; margin:0px" align=justify>55 Water Street</P>
<P style="line-height:10pt; margin:0px" align=justify>New York, NY 10041</P>
<P style="line-height:10pt; margin:0px" align=justify>Attn: Robert Mendes</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: Fund <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>C7R3</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Government issues delivered through Fed Book Entry</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>Boston Federal Reserve Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA &nbsp;011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>STATE ST BOS/SPEC/C7R3</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Wire Instructions</U>:</B></P>
<P style="line-height:10pt; margin:0px" align=justify>State Street Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA # 011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: <B>Liberty All-Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Fund Number: C7R3</P>
<P style="line-height:10pt; margin:0px" align=justify>DDA # 4061767</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Custodian (State Street Corporation)</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Voluntary Corporate Actions</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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 <A NAME="OLE_LINK5"></A>the fax number indicated on the corporate action notice.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B><U>Other Custodian Requirements</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>All trades must be transmitted to the custodian bank, State Street, via signed facsimile to 617-662-2342. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>In the event there are no trades on a given day State Street needs to receive a signed fax indicating this.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need an authorized signature list from the Portfolio Manager. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need the daily contacts for corporate actions and trading from the Portfolio Manager (please notify SSC of any future changes).</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE B</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>RECORDS TO BE MAINTAINED BY THE PORTFOLIO MANAGER</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">1.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the broker; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The terms and conditions of the order and of any modifications or cancellation thereof;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The time of entry or cancellation; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; clear:left; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The price at which executed; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.733px; clear:left; float:left">E.</P>
<P style="margin:0px; padding-left:35.733px; text-indent:-2px" align=justify>The time of receipt of a report of execution; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.333px; clear:left; float:left">F.</P>
<P style="margin:0px; padding-left:35.333px; text-indent:-2px" align=justify>The name of the person who placed the order on behalf of the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">2.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>Shall include the consideration given to: </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(i)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>The sale of shares of the Fund by brokers or dealers. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(ii)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>&nbsp;The supplying of services or benefits by brokers or dealers to:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; float:left">(a)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(b)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund Manager; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(c)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Portfolio Manager; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(d)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>Any person other than the foregoing. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:66px; float:left">(iii)</P>
<P style="margin:0px; padding-left:66px; text-indent:-2px" align=justify>Any other consideration other than the technical qualifications of the brokers and dealers as such.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>Shall show the nature of the services or benefits made available.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the person responsible for making the determination of such allocation and such division of brokerage commissions or other compensation.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">3.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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.<SUP>1</SUP></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; clear:left; float:left">4.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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&#146;s transactions with the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px">__________</P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left"><SUP>1</SUP></P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE C</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGER FEE</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>For services provided to the Portfolio Manager Account, the Fund Manager will pay to the Portfolio Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Fund Manager for the previous calendar month at the annual rate of: &nbsp;0.40% of the amount obtained by multiplying the Portfolio Manager&#146;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&#146;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&#146;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&#146;s Percentage times the Average Total Fund Net Assets exceeding $1.2 billion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Portfolio Manager&#146;s Percentage&#148; means the percentage obtained by dividing (i) the average daily net asset values of the Portfolio Manager Account during the preceding calendar month, by (ii) the Average Total Fund Net Assets.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Average Total Fund Net Assets&#148; means the average daily net asset values of the Fund as a whole during the preceding calendar month.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>The fee shall be pro-rated for any month during which this Agreement is in effect for only a portion of the month.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
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<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>_</TITLE>
<META NAME="date" CONTENT="07/19/2011">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:672px"><P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT</B></P>
<P style="margin:0px" align=center><B>CORNERSTONE CAPITAL MANAGEMENT, INC.</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>____________ ___, 2011</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Re: <U>Portfolio Management Agreement</U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Ladies and Gentlemen:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>Liberty All-Star Equity Fund (the &#147;Fund&#148;) is a diversified closed-end investment company registered under the Investment Company Act of 1940, as amended &nbsp;(the &#147;Act&#148;), and is subject to the rules and regulations promulgated thereunder.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>ALPS Advisors, Inc. (the &#147;Fund Manager&#148;) evaluates and recommends portfolio managers for the assets of the Fund, and the Fund Manager or an affiliate of the Fund Manager is responsible for the day-to-day Fund administration of the Fund.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>1. <U>Employment as a Portfolio Manager.</U> &nbsp;The Fund, being duly authorized, hereby employs Cornerstone Capital Management, Inc. (&#147;Portfolio Manager&#148;) as a discretionary portfolio manager, on the terms and conditions set forth herein, of that portion of the Fund&#146;s assets which the Fund Manager determines to assign to the Portfolio Manager (those assets being referred to as the &#147;Portfolio Manager Account&#148;). <FONT style="font-family:Times New Roman Bold,Times New Roman"><B>&nbsp;</B></FONT>The Fund Manager may, from time to time, allocate and reallocate the Fund&#146;s assets among the Portfolio Manager and the other portfolio managers of the Fund&#146;s assets. &nbsp;

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.

<FONT style="font-size:20pt">

 &nbsp;</FONT>The Portfolio Manager&#146;s responsibilities<A NAME="_DV_X17"></A><A NAME="_DV_C19"></A>

 for providing portfolio management services to the Fund shall be limited to the Portfolio Manager Account.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>2. <U>Acceptance of Employment; Standard of Performance.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>3. <U>Portfolio Management Services of Portfolio Manager.</U> &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">A.</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>In providing portfolio management services to the Portfolio Manager Account, the Portfolio Manager shall be subject to the Fund&#146;s Declaration of Trust and By-Laws, as amended from time to time, 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 &#147;Prospectus&#148;), the investment objectives, 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. &nbsp;The Portfolio Manager shall not consult with any other portfolio manager of the Fund concerning transactions for the Fund in securities or other assets.</P>
<A NAME="_DV_C34"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C35"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:72px; float:left">

B.

</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C36"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C37"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(i)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C38"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C39"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(ii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C40"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C41"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C42"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C43"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iv)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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<A NAME="_DV_C45"></A>

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(v)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

cooperate with and provide reasonable assistance to the Fund Manager, the Fund&#146;s administrator, 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.

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>4. <U>Transaction Procedures.</U> &nbsp;All portfolio transactions for the Portfolio Manager Account will be consummated by payment to or delivery by the custodian of the Fund (the &#147;Custodian&#148;), 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>5. <U>Allocation of Brokerage.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; float:left">A. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>In doing so, the Portfolio Manager&#146;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 &#147;best execution&#148; 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">B. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">C. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager shall not execute any portfolio transactions for the Portfolio Manager Account with a broker or dealer which is an &#147;affiliated person&#148; (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 &#147;affiliated persons&#148; of the Fund or its portfolio managers.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px; clear:left" align=justify>6. <U>Proxies.</U> &nbsp;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, and reviewed and approved by the Board of Trustees. &nbsp;

Upon the written request of the Fund Manager, the 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, and reviewed and approved by the Board of Trustees.

<FONT style="color:#0000FF"><U>

 &nbsp;

</U></FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>7. <U>Fees for Services.</U> 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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>8. <U>Other Investment Activities of Portfolio Manager.</U> 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 (&#147;Client Accounts&#148;), 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 (&#147;Affiliated Accounts&#148;). 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>9. <U>Limitation of Liability.</U> &nbsp;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&#146;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).</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>10. <U>Confidentiality.</U> &nbsp;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>11. <U>Assignment.</U> &nbsp;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. &nbsp;Should the Fund enter into a new contract with the Portfolio Manager in connection with an assignment, the Portfolio Manager agrees to pay all costs and expenses incurred by the Fund to obtain shareholder approval of the new contact, including costs associated with the preparation and mailing of the Fund&#146;s proxy statement and shareholder meeting and proxy solicitation fees. </P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>12. <U>Representations, Warranties and Agreements of the Fund.</U> &nbsp;The Fund represents, warrants and agrees that:</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>A. The Portfolio Manager has been duly appointed to provide investment services to the Portfolio Manager Account as contemplated hereby.</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>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 Portfolio Manager Account and such other information as is necessary for the Portfolio Manager to carry out its obligations under this Agreement.</P>
<P style="margin:0px" align=justify>13. <U>Representations, Warranties and Agreements of the Portfolio Manager.</U> &nbsp;The Portfolio Manager represents, warrants and agrees that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>A. It is registered as an &#147;investment adviser&#148; under the Investment Advisers Act of 1940, as amended (&#147;Advisers Act&#148;) and will continue to be so registered for as long as this Agreement remains in effect.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 material violation of its code of ethics or, if such a violation has occurred, that appropriate action was taken in response to such violation. &nbsp;It will promptly notify the Fund Manager of any material change to its code of ethics or material violation of its code of ethics.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 Board of Trustees under said Declaration of Trust, as Trustees and not to the Trustees 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. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:62.4px; width:101.4px; float:left">F.</P>
<P style="margin:0px; padding-left:101.4px; text-indent:-2px" align=justify>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).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">G.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;SEC&#148;), check the &#147;13F Combination Report&#148; box and on the Form 13F Summary Page identify &#147;ALPS Advisors, Inc.&#148; as another manager for which the Portfolio Manager is filing the Form 13F report; (ii) within 60 days after the end of each calendar year, provide the Fund Manager with a certification that the Portfolio Manager&#146;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.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">H.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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&#146;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&#146;s compliance policies and procedures; and (c) the name of the Portfolio Manager&#146;s Chief Compliance Officer to act as a liaison for compliance matters that may arise between the Fund and the Portfolio Manager.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">I.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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. &nbsp;The Portfolio Manager agrees to bear all reasonable expenses of the Fund, if any, arising out of an assignment or change in control.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">J.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager agrees to maintain an appropriate level of errors and omissions or professional liability insurance coverage.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>14. <U>Amendment.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>15. <U>Effective Date; Term.</U> &nbsp;This Agreement shall become effective on the date first above written, provided that this Agreement shall not take effect unless it has first been approved: (1) by a vote of a majority of the Trustees who are not &#147;interested persons&#148; (as defined in the Act) of any party to this Agreement (&#147;Independent Trustees&#148;), cast in person at a &nbsp;meeting called for the purpose of voting on such approval, and (ii) by vote of &#147;a majority of the outstanding voting securities&#148; (as defined in the Act) of the Fund. &nbsp;This Agreement shall continue for two years from the date of this Agreement and from year to year thereafter provided such continuance is specifically approved at least annually by (i) the Fund&#146;s Board of Trustees or (ii) a vote of a majority of the outstanding voting securities of the Fund, provided that in either event such continuance is also approved by a majority of the Independent Trustees, by vote cast in person at a meeting called for the purpose of voting on such approval. &nbsp;If the SEC issues an order to the Fund and the Fund Manager for an exemption from Section 15(a) of the Act, then, in accordance with the application of the Fund and the Fund Manager, the continuance of this Agreement after initial approval by the Trustees as set forth above, shall be subject to approval by a majority of the outstanding voting securities of the Fund at the regularly scheduled annual meeting of the Fund&#146;s shareholders next following the date of this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>16. <U>Termination.</U> &nbsp;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&#146; written notice to the Portfolio Manager in the case of termination by the Fund or the Fund Manager, or ninety (90) days&#146; 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>17. <U>Applicable Law.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>18. <U>Severability; Counterparts.</U> &nbsp;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. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>19. &nbsp;<U>Use of Name</U>. &nbsp;The Portfolio Manager agrees and acknowledges that the Fund Manager is the sole owner of the names and marks &#147;Liberty All-Star&#148; and &#147;All-Star&#148;, 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. &nbsp;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. &nbsp;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. &nbsp;Consent by the Fund Manager shall not be unreasonably withheld. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:19.2px" align=justify><U>20. &nbsp;Notices</U>. All notices and other communications hereunder shall be in writing, shall be deemed to have been given when received or when sent by U.S. mail, overnight carrier or facsimile, and shall be given to the following addresses (or such other addresses as to which notice is given):</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px" align=justify>To Fund Manager:</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">ALPS Advisors, Inc.<BR>
1290 Broadway, Suite 1100<BR>
Denver, Colorado 80203<BR>
Attn: General Counsel<BR>
Phone: &nbsp;(303) 623-2577<BR>
Fax: (303) 623-7850</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">To the Portfolio Manager:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Cornerstone Capital Management, Inc.</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">7101 W. 78<SUP>th</SUP> St., Suite 201</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Minneapolis, MN &nbsp;55439</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Attn: &nbsp;</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Phone:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Fax:</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="margin:0px" align=center>******************</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">LIBERTY ALL-STAR EQUITY FUND</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">ALPS ADVISORS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">ACCEPTED:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">CORNERSTONE CAPITAL MANAGEMENT, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">By: ________________________________________</P>
<P style="margin:0px">Name:</P>
<P style="margin:0px">Title:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=114 /><TD width=363.667 /></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px">SCHEDULES:</P>
</TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">A.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Operational Procedures </P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">B. &nbsp;</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Records To Be Maintained By The Portfolio Manager</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">C. </P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Portfolio Manager Fee</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE A</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>CORNERSTONE CAPITAL MANAGEMENT, INC.</B></P>
<P style="margin:0px" align=center><B>OPERATIONAL PROCEDURES</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The necessary information must be transmitted via facsimile machine to Max King at State Street at 617-662-2342 and contain an authorized signature.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Liberty All-Star Equity Fund trade reporting requirements:</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Name of Fund &amp; Portfolio Manager</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Trade date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">3.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Settlement date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">4.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase or sale</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">5.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Security name/description</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">6.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Cusip / sedol / or other numeric identifier</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">7.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase/sale price per share or unit</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">8.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Interest purchased/sold (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">9.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Aggregate commission amount</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">10.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Indication as to whether or not commission amounts are ALPS Directed.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">11.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Executing broker and clearing bank (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">12.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Total net amount of the transaction</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">13.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Sale lot disposition method, if different from the established policy of Lowest Cost.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">14.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Confirmation of DTC trades; please advise brokers to use the custodian&#146;s DTC ID system number to facilitate the receipt of information by the custodian. &nbsp;The Portfolio Manager will affirm trades to the custodian.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; clear:left" align=justify><BR></P>
<A NAME="OLE_LINK3"></A><A NAME="OLE_LINK4"></A><P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Commission Reporting</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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. &nbsp;The Portfolio Manager is responsible for comparing their records to the accounting records and contacting the Fund Manager regarding discrepancies.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Trade Exception Processing</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;best efforts&#148; basis.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:192px; text-indent:48px; clear:left" align=justify><B><U>State Street Delivery Instructions</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>DTC instructions</U></B>:</P>
<P style="line-height:10pt; margin:0px" align=justify><B>For Liberty All Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Depository Trust Company (DTC)</P>
<P style="line-height:10pt; margin:0px" align=justify>Participant # 0997</P>
<P style="line-height:10pt; margin:0px" align=justify>Agent Bank# 20997</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: C7R1</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Physical Securities DVP/RVP</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>DTC/New York Window</P>
<P style="line-height:10pt; margin:0px" align=justify>55 Water Street</P>
<P style="line-height:10pt; margin:0px" align=justify>New York, NY 10041</P>
<P style="line-height:10pt; margin:0px" align=justify>Attn: Robert Mendes</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: Fund <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>C7R1</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Government issues delivered through Fed Book Entry</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>Boston Federal Reserve Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA &nbsp;011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>STATE ST BOS/SPEC/C7R1</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Wire Instructions</U>:</B></P>
<P style="line-height:10pt; margin:0px" align=justify>State Street Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA # 011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: <B>Liberty All-Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Fund Number: C7R1</P>
<P style="line-height:10pt; margin:0px" align=justify>DDA # 4061767</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Custodian (State Street Corporation)</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Voluntary Corporate Actions</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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 <A NAME="OLE_LINK5"></A>the fax number indicated on the corporate action notice.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B><U>Other Custodian Requirements</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>All trades must be transmitted to the custodian bank, State Street, via signed facsimile to 617-662-2342. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>In the event there are no trades on a given day State Street needs to receive a signed fax indicating this.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need an authorized signature list from the Portfolio Manager. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need the daily contacts for corporate actions and trading from the Portfolio Manager (please notify SSC of any future changes).</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE B</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>RECORDS TO BE MAINTAINED BY THE PORTFOLIO MANAGER</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">1.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the broker; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The terms and conditions of the order and of any modifications or cancellation thereof;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The time of entry or cancellation; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; clear:left; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The price at which executed; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.733px; clear:left; float:left">E.</P>
<P style="margin:0px; padding-left:35.733px; text-indent:-2px" align=justify>The time of receipt of a report of execution; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.333px; clear:left; float:left">F.</P>
<P style="margin:0px; padding-left:35.333px; text-indent:-2px" align=justify>The name of the person who placed the order on behalf of the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">2.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>Shall include the consideration given to: </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(i)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>The sale of shares of the Fund by brokers or dealers. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(ii)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>&nbsp;The supplying of services or benefits by brokers or dealers to:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; float:left">(a)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(b)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund Manager; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(c)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Portfolio Manager; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(d)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>Any person other than the foregoing. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:66px; float:left">(iii)</P>
<P style="margin:0px; padding-left:66px; text-indent:-2px" align=justify>Any other consideration other than the technical qualifications of the brokers and dealers as such.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>Shall show the nature of the services or benefits made available.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the person responsible for making the determination of such allocation and such division of brokerage commissions or other compensation.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">3.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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.<SUP>1</SUP></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; clear:left; float:left">4.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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&#146;s transactions with the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px">__________</P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left"><SUP>1</SUP></P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE C</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGER FEE</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>For services provided to the Portfolio Manager Account, the Fund Manager will pay to the Portfolio Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Fund Manager for the previous calendar month at the annual rate of: &nbsp;0.40% of the amount obtained by multiplying the Portfolio Manager&#146;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&#146;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&#146;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&#146;s Percentage times the Average Total Fund Net Assets exceeding $1.2 billion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Portfolio Manager&#146;s Percentage&#148; means the percentage obtained by dividing (i) the average daily net asset values of the Portfolio Manager Account during the preceding calendar month, by (ii) the Average Total Fund Net Assets.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Average Total Fund Net Assets&#148; means the average daily net asset values of the Fund as a whole during the preceding calendar month.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>The fee shall be pro-rated for any month during which this Agreement is in effect for only a portion of the month.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>7
<FILENAME>q4.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>_</TITLE>
<META NAME="date" CONTENT="07/19/2011">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:672px"><P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT</B></P>
<P style="margin:0px" align=center><B>SCHNEIDER CAPITAL MANAGEMENT CORPORATION</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>_____________ ___, 2011</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Re: <U>Portfolio Management Agreement</U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Ladies and Gentlemen:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>Liberty All-Star Equity Fund (the &#147;Fund&#148;) is a diversified closed-end investment company registered under the Investment Company Act of 1940, as amended &nbsp;(the &#147;Act&#148;), and is subject to the rules and regulations promulgated thereunder.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>ALPS Advisors, Inc. (the &#147;Fund Manager&#148;) evaluates and recommends portfolio managers for the assets of the Fund, and the Fund Manager or an affiliate of the Fund Manager is responsible for the day-to-day Fund administration of the Fund.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>1. <U>Employment as a Portfolio Manager.</U> &nbsp;The Fund, being duly authorized, hereby employs Schneider Capital Management Corporation (&#147;Portfolio Manager&#148;) as a discretionary portfolio manager, on the terms and conditions set forth herein, of that portion of the Fund&#146;s assets which the Fund Manager determines to assign to the Portfolio Manager (those assets being referred to as the &#147;Portfolio Manager Account&#148;). <FONT style="font-family:Times New Roman Bold,Times New Roman"><B>&nbsp;</B></FONT>The Fund Manager may, from time to time, allocate and reallocate the Fund&#146;s assets among the Portfolio Manager and the other portfolio managers of the Fund&#146;s assets. &nbsp;

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.

<FONT style="font-size:20pt">

 &nbsp;</FONT>The Portfolio Manager&#146;s responsibilities<A NAME="_DV_X17"></A><A NAME="_DV_C19"></A>

 for providing portfolio management services to the Fund shall be limited to the Portfolio Manager Account.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>2. <U>Acceptance of Employment; Standard of Performance.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>3. <U>Portfolio Management Services of Portfolio Manager.</U> &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">A.</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>In providing portfolio management services to the Portfolio Manager Account, the Portfolio Manager shall be subject to the Fund&#146;s Declaration of Trust and By-Laws, as amended from time to time, 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 &#147;Prospectus&#148;), the investment objectives, 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. &nbsp;The Portfolio Manager shall not consult with any other portfolio manager of the Fund concerning transactions for the Fund in securities or other assets.</P>
<A NAME="_DV_C34"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C35"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:72px; float:left">

B.

</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C36"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C37"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(i)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C38"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C39"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(ii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C40"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C41"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C42"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C43"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iv)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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<A NAME="_DV_C45"></A>

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(v)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

cooperate with and provide reasonable assistance to the Fund Manager, the Fund&#146;s administrator, 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.

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>4. <U>Transaction Procedures.</U> &nbsp;All portfolio transactions for the Portfolio Manager Account will be consummated by payment to or delivery by the custodian of the Fund (the &#147;Custodian&#148;), 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>5. <U>Allocation of Brokerage.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; float:left">A. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>In doing so, the Portfolio Manager&#146;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 &#147;best execution&#148; 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">B. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">C. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager shall not execute any portfolio transactions for the Portfolio Manager Account with a broker or dealer which is an &#147;affiliated person&#148; (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 &#147;affiliated persons&#148; of the Fund or its portfolio managers.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px; clear:left" align=justify>6. <U>Proxies.</U> &nbsp;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, and reviewed and approved by the Board of Trustees. &nbsp;

Upon the written request of the Fund Manager, the 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, and reviewed and approved by the Board of Trustees.

<FONT style="color:#0000FF"><U>

 &nbsp;

</U></FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>7. <U>Fees for Services.</U> 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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>8. <U>Other Investment Activities of Portfolio Manager.</U> 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 (&#147;Client Accounts&#148;), 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 (&#147;Affiliated Accounts&#148;). 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>9. <U>Limitation of Liability.</U> &nbsp;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&#146;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).</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>10. <U>Confidentiality.</U> &nbsp;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>11. <U>Assignment.</U> &nbsp;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. &nbsp;Should the Fund enter into a new contract with the Portfolio Manager in connection with an assignment, the Portfolio Manager agrees to pay all costs and expenses incurred by the Fund to obtain shareholder approval of the new contact, including costs associated with the preparation and mailing of the Fund&#146;s proxy statement and shareholder meeting and proxy solicitation fees. </P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>12. <U>Representations, Warranties and Agreements of the Fund.</U> &nbsp;The Fund represents, warrants and agrees that:</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>A. The Portfolio Manager has been duly appointed to provide investment services to the Portfolio Manager Account as contemplated hereby.</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>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 Portfolio Manager Account and such other information as is necessary for the Portfolio Manager to carry out its obligations under this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>13. <U>Representations, Warranties and Agreements of the Portfolio Manager.</U> &nbsp;The Portfolio Manager represents, warrants and agrees that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>A. It is registered as an &#147;investment adviser&#148; under the Investment Advisers Act of 1940, as amended (&#147;Advisers Act&#148;) and will continue to be so registered for as long as this Agreement remains in effect.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 material violation of its code of ethics or, if such a violation has occurred, that appropriate action was taken in response to such violation. &nbsp;It will promptly notify the Fund Manager of any material change to its code of ethics or material violation of its code of ethics.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 Board of Trustees under said Declaration of Trust, as Trustees and not to the Trustees 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. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:62.4px; width:101.4px; float:left">F.</P>
<P style="margin:0px; padding-left:101.4px; text-indent:-2px" align=justify>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).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">G.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;SEC&#148;), check the &#147;13F Combination Report&#148; box and on the Form 13F Summary Page identify &#147;ALPS Advisors, Inc.&#148; as another manager for which the Portfolio Manager is filing the Form 13F report; (ii) within 60 days after the end of each calendar year, provide the Fund Manager with a certification that the Portfolio Manager&#146;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.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">H.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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&#146;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&#146;s compliance policies and procedures; and (c) the name of the Portfolio Manager&#146;s Chief Compliance Officer to act as a liaison for compliance matters that may arise between the Fund and the Portfolio Manager.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">I.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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. &nbsp;The Portfolio Manager agrees to bear all reasonable expenses of the Fund, if any, arising out of an assignment or change in control.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">J.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager agrees to maintain an appropriate level of errors and omissions or professional liability insurance coverage.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>14. <U>Amendment.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>15. <U>Effective Date; Term.</U> &nbsp;This Agreement shall become effective on the date first above written, provided that this Agreement shall not take effect unless it has first been approved: (1) by a vote of a majority of the Trustees who are not &#147;interested persons&#148; (as defined in the Act) of any party to this Agreement (&#147;Independent Trustees&#148;), cast in person at a &nbsp;meeting called for the purpose of voting on such approval, and (ii) by vote of &#147;a majority of the outstanding voting securities&#148; (as defined in the Act) of the Fund. &nbsp;This Agreement shall continue for two years from the date of this Agreement and from year to year thereafter provided such continuance is specifically approved at least annually by (i) the Fund&#146;s Board of Trustees or (ii) a vote of a majority of the outstanding voting securities of the Fund, provided that in either event such continuance is also approved by a majority of the Independent Trustees, by vote cast in person at a meeting called for the purpose of voting on such approval. &nbsp;If the SEC issues an order to the Fund and the Fund Manager for an exemption from Section 15(a) of the Act, then, in accordance with the application of the Fund and the Fund Manager, the continuance of this Agreement after initial approval by the Trustees as set forth above, shall be subject to approval by a majority of the outstanding voting securities of the Fund at the regularly scheduled annual meeting of the Fund&#146;s shareholders next following the date of this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>16. <U>Termination.</U> &nbsp;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&#146; written notice to the Portfolio Manager in the case of termination by the Fund or the Fund Manager, or ninety (90) days&#146; 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>17. <U>Applicable Law.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>18. <U>Severability; Counterparts.</U> &nbsp;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. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>19. &nbsp;<U>Use of Name</U>. &nbsp;The Portfolio Manager agrees and acknowledges that the Fund Manager is the sole owner of the names and marks &#147;Liberty All-Star&#148; and &#147;All-Star&#148;, 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. &nbsp;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. &nbsp;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. &nbsp;Consent by the Fund Manager shall not be unreasonably withheld. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:19.2px" align=justify><U>20. &nbsp;Notices</U>. All notices and other communications hereunder shall be in writing, shall be deemed to have been given when received or when sent by U.S. mail, overnight carrier or facsimile, and shall be given to the following addresses (or such other addresses as to which notice is given):</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px" align=justify>To Fund Manager:</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">ALPS Advisors, Inc.<BR>
1290 Broadway, Suite 1100<BR>
Denver, Colorado 80203<BR>
Attn: General Counsel<BR>
Phone: &nbsp;(303) 623-2577<BR>
Fax: (303) 623-7850</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">To the Portfolio Manager:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Schneider Capital Management Corporation</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">460 E. Swedesford Rd.</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Wayne, PA &nbsp;19087</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Attn: &nbsp;</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Phone:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Fax:</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="margin:0px" align=center>******************</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">LIBERTY ALL-STAR EQUITY FUND</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">ALPS ADVISORS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">ACCEPTED:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">SCHNEIDER CAPITAL MANAGEMENT CORPORATION</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">By: ________________________________________</P>
<P style="margin:0px">Name:</P>
<P style="margin:0px">Title:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=114 /><TD width=363.667 /></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px">SCHEDULES:</P>
</TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">A.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Operational Procedures </P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">B. &nbsp;</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Records To Be Maintained By The Portfolio Manager</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">C. </P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Portfolio Manager Fee</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE A</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>SCHNEIDER CAPITAL MANAGEMENT CORPORATION</B></P>
<P style="margin:0px" align=center><B>OPERATIONAL PROCEDURES</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The necessary information must be transmitted via facsimile machine to Max King at State Street at 617-662-2342 and contain an authorized signature.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Liberty All-Star Equity Fund trade reporting requirements:</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Name of Fund &amp; Portfolio Manager</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Trade date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">3.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Settlement date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">4.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase or sale</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">5.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Security name/description</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">6.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Cusip / sedol / or other numeric identifier</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">7.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase/sale price per share or unit</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">8.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Interest purchased/sold (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">9.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Aggregate commission amount</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">10.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Indication as to whether or not commission amounts are ALPS Directed.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">11.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Executing broker and clearing bank (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">12.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Total net amount of the transaction</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">13.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Sale lot disposition method, if different from the established policy of Lowest Cost.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">14.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Confirmation of DTC trades; please advise brokers to use the custodian&#146;s DTC ID system number to facilitate the receipt of information by the custodian. &nbsp;The Portfolio Manager will affirm trades to the custodian.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; clear:left" align=justify><BR></P>
<A NAME="OLE_LINK3"></A><A NAME="OLE_LINK4"></A><P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Commission Reporting</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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. &nbsp;The Portfolio Manager is responsible for comparing their records to the accounting records and contacting the Fund Manager regarding discrepancies.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Trade Exception Processing</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;best efforts&#148; basis.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:192px; text-indent:48px; clear:left" align=justify><B><U>State Street Delivery Instructions</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>DTC instructions</U></B>:</P>
<P style="line-height:10pt; margin:0px" align=justify><B>For Liberty All Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Depository Trust Company (DTC)</P>
<P style="line-height:10pt; margin:0px" align=justify>Participant # 0997</P>
<P style="line-height:10pt; margin:0px" align=justify>Agent Bank# 20997</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: C7R5</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Physical Securities DVP/RVP</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>DTC/New York Window</P>
<P style="line-height:10pt; margin:0px" align=justify>55 Water Street</P>
<P style="line-height:10pt; margin:0px" align=justify>New York, NY 10041</P>
<P style="line-height:10pt; margin:0px" align=justify>Attn: Robert Mendes</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: Fund <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>C7R5</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Government issues delivered through Fed Book Entry</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>Boston Federal Reserve Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA &nbsp;011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>STATE ST BOS/SPEC/C7R5</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Wire Instructions</U>:</B></P>
<P style="line-height:10pt; margin:0px" align=justify>State Street Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA # 011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: <B>Liberty All-Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Fund Number: C7R5</P>
<P style="line-height:10pt; margin:0px" align=justify>DDA # 4061767</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Custodian (State Street Corporation)</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Voluntary Corporate Actions</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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 <A NAME="OLE_LINK5"></A>the fax number indicated on the corporate action notice.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B><U>Other Custodian Requirements</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>All trades must be transmitted to the custodian bank, State Street, via signed facsimile to 617-662-2342. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>In the event there are no trades on a given day State Street needs to receive a signed fax indicating this.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need an authorized signature list from the Portfolio Manager. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need the daily contacts for corporate actions and trading from the Portfolio Manager (please notify SSC of any future changes).</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE B</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>RECORDS TO BE MAINTAINED BY THE PORTFOLIO MANAGER</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">1.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the broker; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The terms and conditions of the order and of any modifications or cancellation thereof;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The time of entry or cancellation; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; clear:left; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The price at which executed; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.733px; clear:left; float:left">E.</P>
<P style="margin:0px; padding-left:35.733px; text-indent:-2px" align=justify>The time of receipt of a report of execution; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.333px; clear:left; float:left">F.</P>
<P style="margin:0px; padding-left:35.333px; text-indent:-2px" align=justify>The name of the person who placed the order on behalf of the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">2.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>Shall include the consideration given to: </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(i)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>The sale of shares of the Fund by brokers or dealers. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(ii)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>&nbsp;The supplying of services or benefits by brokers or dealers to:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; float:left">(a)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(b)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund Manager; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(c)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Portfolio Manager; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(d)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>Any person other than the foregoing. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:66px; float:left">(iii)</P>
<P style="margin:0px; padding-left:66px; text-indent:-2px" align=justify>Any other consideration other than the technical qualifications of the brokers and dealers as such.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>Shall show the nature of the services or benefits made available.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the person responsible for making the determination of such allocation and such division of brokerage commissions or other compensation.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">3.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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.<SUP>1</SUP></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; clear:left; float:left">4.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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&#146;s transactions with the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px">__________</P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left"><SUP>1</SUP></P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE C</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGER FEE</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>For services provided to the Portfolio Manager Account, the Fund Manager will pay to the Portfolio Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Fund Manager for the previous calendar month at the annual rate of: &nbsp;0.40% of the amount obtained by multiplying the Portfolio Manager&#146;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&#146;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&#146;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&#146;s Percentage times the Average Total Fund Net Assets exceeding $1.2 billion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Portfolio Manager&#146;s Percentage&#148; means the percentage obtained by dividing (i) the average daily net asset values of the Portfolio Manager Account during the preceding calendar month, by (ii) the Average Total Fund Net Assets.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Average Total Fund Net Assets&#148; means the average daily net asset values of the Fund as a whole during the preceding calendar month.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>The fee shall be pro-rated for any month during which this Agreement is in effect for only a portion of the month.</P>
<P style="margin:0px" align=center><BR></P>
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<TYPE>EX-99.77Q1 OTHR EXHB
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<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>_</TITLE>
<META NAME="date" CONTENT="07/19/2011">
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<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:672px"><P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT</B></P>
<P style="margin:0px" align=center><B>PZENA INVESTMENT MANAGEMENT, LLC</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>_____________ ___, 2011</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Re: <U>Portfolio Management Agreement</U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Ladies and Gentlemen:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>Liberty All-Star Equity Fund (the &#147;Fund&#148;) is a diversified closed-end investment company registered under the Investment Company Act of 1940, as amended &nbsp;(the &#147;Act&#148;), and is subject to the rules and regulations promulgated thereunder.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>ALPS Advisors, Inc. (the &#147;Fund Manager&#148;) evaluates and recommends portfolio managers for the assets of the Fund, and the Fund Manager or an affiliate of the Fund Manager is responsible for the day-to-day Fund administration of the Fund.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>1. <U>Employment as a Portfolio Manager.</U> &nbsp;The Fund, being duly authorized, hereby employs Pzena Investment Management, LLC (&#147;Portfolio Manager&#148;) as a discretionary portfolio manager, on the terms and conditions set forth herein, of that portion of the Fund&#146;s assets which the Fund Manager determines to assign to the Portfolio Manager (those assets being referred to as the &#147;Portfolio Manager Account&#148;). <FONT style="font-family:Times New Roman Bold,Times New Roman"><B>&nbsp;</B></FONT>The Fund Manager may, from time to time, allocate and reallocate the Fund&#146;s assets among the Portfolio Manager and the other portfolio managers of the Fund&#146;s assets. &nbsp;

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.

<FONT style="font-size:20pt">

 &nbsp;</FONT>The Portfolio Manager&#146;s responsibilities<A NAME="_DV_X17"></A><A NAME="_DV_C19"></A>

 for providing portfolio management services to the Fund shall be limited to the Portfolio Manager Account.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>2. <U>Acceptance of Employment; Standard of Performance.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>3. <U>Portfolio Management Services of Portfolio Manager.</U> &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">A.</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>In providing portfolio management services to the Portfolio Manager Account, the Portfolio Manager shall be subject to the Fund&#146;s Declaration of Trust and By-Laws, as amended from time to time, 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 &#147;Prospectus&#148;), the investment objectives, 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. &nbsp;The Portfolio Manager shall not consult with any other portfolio manager of the Fund concerning transactions for the Fund in securities or other assets.</P>
<A NAME="_DV_C34"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C35"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:72px; float:left">

B.

</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C36"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C37"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(i)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C38"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C39"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(ii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C40"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C41"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C42"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C43"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iv)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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<A NAME="_DV_C45"></A>

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(v)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

cooperate with and provide reasonable assistance to the Fund Manager, the Fund&#146;s administrator, 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.

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>4. <U>Transaction Procedures.</U> &nbsp;All portfolio transactions for the Portfolio Manager Account will be consummated by payment to or delivery by the custodian of the Fund (the &#147;Custodian&#148;), 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>5. <U>Allocation of Brokerage.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; float:left">A. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>In doing so, the Portfolio Manager&#146;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 &#147;best execution&#148; 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">B. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">C. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager shall not execute any portfolio transactions for the Portfolio Manager Account with a broker or dealer which is an &#147;affiliated person&#148; (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 &#147;affiliated persons&#148; of the Fund or its portfolio managers.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px; clear:left" align=justify>6. <U>Proxies.</U> &nbsp;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, and reviewed and approved by the Board of Trustees. &nbsp;

Upon the written request of the Fund Manager, the 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, and reviewed and approved by the Board of Trustees.

<FONT style="color:#0000FF"><U>

 &nbsp;

</U></FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>7. <U>Fees for Services.</U> 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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>8. <U>Other Investment Activities of Portfolio Manager.</U> 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 (&#147;Client Accounts&#148;), 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 (&#147;Affiliated Accounts&#148;). 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>9. <U>Limitation of Liability.</U> &nbsp;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&#146;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).</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>10. <U>Confidentiality.</U> &nbsp;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>11. <U>Assignment.</U> &nbsp;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. &nbsp;Should the Fund enter into a new contract with the Portfolio Manager in connection with an assignment, the Portfolio Manager agrees to pay all costs and expenses incurred by the Fund to obtain shareholder approval of the new contract, including costs associated with the preparation and mailing of the Fund&#146;s proxy statement and shareholder meeting and proxy solicitation fees. </P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>12. <U>Representations, Warranties and Agreements of the Fund.</U> &nbsp;The Fund represents, warrants and agrees that:</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>A. The Portfolio Manager has been duly appointed to provide investment services to the Portfolio Manager Account as contemplated hereby.</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>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 Portfolio Manager Account and such other information as is necessary for the Portfolio Manager to carry out its obligations under this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>13. <U>Representations, Warranties and Agreements of the Portfolio Manager.</U> &nbsp;The Portfolio Manager represents, warrants and agrees that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>A. It is registered as an &#147;investment adviser&#148; under the Investment Advisers Act of 1940, as amended (&#147;Advisers Act&#148;) and will continue to be so registered for as long as this Agreement remains in effect.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 material violation of its code of ethics or, if such a violation has occurred, that appropriate action was taken in response to such violation. &nbsp;It will promptly notify the Fund Manager of any material change to its code of ethics or material violation of its code of ethics.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 Board of Trustees under said Declaration of Trust, as Trustees and not to the Trustees 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. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:62.4px; width:101.4px; float:left">F.</P>
<P style="margin:0px; padding-left:101.4px; text-indent:-2px" align=justify>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).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">G.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;SEC&#148;), check the &#147;13F Combination Report&#148; box and on the Form 13F Summary Page identify &#147;ALPS Advisors, Inc.&#148; as another manager for which the Portfolio Manager is filing the Form 13F report; (ii) within 60 days after the end of each calendar year, provide the Fund Manager with a certification that the Portfolio Manager&#146;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.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">H.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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&#146;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&#146;s compliance policies and procedures; and (c) the name of the Portfolio Manager&#146;s Chief Compliance Officer to act as a liaison for compliance matters that may arise between the Fund and the Portfolio Manager.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">I.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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. &nbsp;The Portfolio Manager agrees to bear all reasonable expenses of the Fund, if any, arising out of an assignment or change in control.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">J.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager agrees to maintain an appropriate level of errors and omissions or professional liability insurance coverage.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>14. <U>Amendment.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>15. <U>Effective Date; Term.</U> &nbsp;This Agreement shall become effective on the date first above written, provided that this Agreement shall not take effect unless it has first been approved: (1) by a vote of a majority of the Trustees who are not &#147;interested persons&#148; (as defined in the Act) of any party to this Agreement (&#147;Independent Trustees&#148;), cast in person at a &nbsp;meeting called for the purpose of voting on such approval, and (ii) by vote of &#147;a majority of the outstanding voting securities&#148; (as defined in the Act) of the Fund. &nbsp;This Agreement shall continue for two years from the date of this Agreement and from year to year thereafter provided such continuance is specifically approved at least annually by (i) the Fund&#146;s Board of Trustees or (ii) a vote of a majority of the outstanding voting securities of the Fund, provided that in either event such continuance is also approved by a majority of the Independent Trustees, by vote cast in person at a meeting called for the purpose of voting on such approval. &nbsp;If the SEC issues an order to the Fund and the Fund Manager for an exemption from Section 15(a) of the Act, then, in accordance with the application of the Fund and the Fund Manager, the continuance of this Agreement after initial approval by the Trustees as set forth above, shall be subject to approval by a majority of the outstanding voting securities of the Fund at the regularly scheduled annual meeting of the Fund&#146;s shareholders next following the date of this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>16. <U>Termination.</U> &nbsp;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&#146; written notice to the Portfolio Manager in the case of termination by the Fund or the Fund Manager, or ninety (90) days&#146; 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>17. <U>Applicable Law.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>18. <U>Severability; Counterparts.</U> &nbsp;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. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>19. &nbsp;<U>Use of Name</U>. &nbsp;The Portfolio Manager agrees and acknowledges that the Fund Manager is the sole owner of the names and marks &#147;Liberty All-Star&#148; and &#147;All-Star&#148;, 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. &nbsp;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. &nbsp;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. &nbsp;Consent by the Fund Manager shall not be unreasonably withheld. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:19.2px" align=justify><U>20. &nbsp;Notices</U>. All notices and other communications hereunder shall be in writing, shall be deemed to have been given when received or when sent by U.S. mail, overnight carrier or facsimile, and shall be given to the following addresses (or such other addresses as to which notice is given):</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px" align=justify>To Fund Manager:</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">ALPS Advisors, Inc.<BR>
1290 Broadway, Suite 1100<BR>
Denver, Colorado 80203<BR>
Attn: General Counsel<BR>
Phone: &nbsp;(303) 623-2577<BR>
Fax: (303) 623-7850</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">To the Portfolio Manager:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Pzena Investment Management, LLC</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">120 West 45<SUP>th</SUP> St.</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">New York, NY &nbsp;10036</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Attn: &nbsp;</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Phone:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Fax:</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="margin:0px" align=center>******************</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">LIBERTY ALL-STAR EQUITY FUND</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">ALPS ADVISORS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">ACCEPTED:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">PZENA INVESTMENT MANAGEMENT, LLC</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">By: ________________________________________</P>
<P style="margin:0px">Name:</P>
<P style="margin:0px">Title:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=114 /><TD width=363.667 /></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px">SCHEDULES:</P>
</TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">A.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Operational Procedures </P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">B. &nbsp;</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Records To Be Maintained By The Portfolio Manager</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">C. </P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Portfolio Manager Fee</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE A</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>PZENA INVESTMENT MANAGEMENT, LLC</B></P>
<P style="margin:0px" align=center><B>OPERATIONAL PROCEDURES</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The necessary information must be transmitted via facsimile machine to Max King at State Street at 617-662-2342 and contain an authorized signature.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Liberty All-Star Equity Fund trade reporting requirements:</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Name of Fund &amp; Portfolio Manager</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Trade date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">3.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Settlement date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">4.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase or sale</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">5.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Security name/description</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">6.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Cusip / sedol / or other numeric identifier</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">7.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase/sale price per share or unit</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">8.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Interest purchased/sold (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">9.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Aggregate commission amount</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">10.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Indication as to whether or not commission amounts are ALPS Directed.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">11.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Executing broker and clearing bank (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">12.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Total net amount of the transaction</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">13.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Sale lot disposition method, if different from the established policy of Lowest Cost.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">14.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Confirmation of DTC trades; please advise brokers to use the custodian&#146;s DTC ID system number to facilitate the receipt of information by the custodian. &nbsp;The Portfolio Manager will affirm trades to the custodian.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; clear:left" align=justify><BR></P>
<A NAME="OLE_LINK3"></A><A NAME="OLE_LINK4"></A><P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Commission Reporting</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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. &nbsp;The Portfolio Manager is responsible for comparing their records to the accounting records and contacting the Fund Manager regarding discrepancies.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Trade Exception Processing</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;best efforts&#148; basis.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:192px; text-indent:48px; clear:left" align=justify><B><U>State Street Delivery Instructions</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>DTC instructions</U></B>:</P>
<P style="line-height:10pt; margin:0px" align=justify><B>For Liberty All Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Depository Trust Company (DTC)</P>
<P style="line-height:10pt; margin:0px" align=justify>Participant # 0997</P>
<P style="line-height:10pt; margin:0px" align=justify>Agent Bank# 20997</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: C7R2</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Physical Securities DVP/RVP</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>DTC/New York Window</P>
<P style="line-height:10pt; margin:0px" align=justify>55 Water Street</P>
<P style="line-height:10pt; margin:0px" align=justify>New York, NY 10041</P>
<P style="line-height:10pt; margin:0px" align=justify>Attn: Robert Mendes</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: Fund <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>C7R2</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Government issues delivered through Fed Book Entry</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>Boston Federal Reserve Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA &nbsp;011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>STATE ST BOS/SPEC/C7R2</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Wire Instructions</U>:</B></P>
<P style="line-height:10pt; margin:0px" align=justify>State Street Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA # 011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: <B>Liberty All-Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Fund Number: C7R2</P>
<P style="line-height:10pt; margin:0px" align=justify>DDA # 4061767</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Custodian (State Street Corporation)</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Voluntary Corporate Actions</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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 <A NAME="OLE_LINK5"></A>the fax number indicated on the corporate action notice.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B><U>Other Custodian Requirements</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>All trades must be transmitted to the custodian bank, State Street, via signed facsimile to 617-662-2342. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>In the event there are no trades on a given day State Street needs to receive a signed fax indicating this.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need an authorized signature list from the Portfolio Manager. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need the daily contacts for corporate actions and trading from the Portfolio Manager (please notify SSC of any future changes).</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE B</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>RECORDS TO BE MAINTAINED BY THE PORTFOLIO MANAGER</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">1.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the broker; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The terms and conditions of the order and of any modifications or cancellation thereof;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The time of entry or cancellation; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; clear:left; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The price at which executed; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.733px; clear:left; float:left">E.</P>
<P style="margin:0px; padding-left:35.733px; text-indent:-2px" align=justify>The time of receipt of a report of execution; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.333px; clear:left; float:left">F.</P>
<P style="margin:0px; padding-left:35.333px; text-indent:-2px" align=justify>The name of the person who placed the order on behalf of the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">2.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>Shall include the consideration given to: </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(i)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>The sale of shares of the Fund by brokers or dealers. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(ii)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>&nbsp;The supplying of services or benefits by brokers or dealers to:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; float:left">(a)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(b)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund Manager; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(c)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Portfolio Manager; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(d)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>Any person other than the foregoing. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:66px; float:left">(iii)</P>
<P style="margin:0px; padding-left:66px; text-indent:-2px" align=justify>Any other consideration other than the technical qualifications of the brokers and dealers as such.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>Shall show the nature of the services or benefits made available.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the person responsible for making the determination of such allocation and such division of brokerage commissions or other compensation.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">3.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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.<SUP>1</SUP></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; clear:left; float:left">4.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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&#146;s transactions with the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px">__________</P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left"><SUP>1</SUP></P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE C</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGER FEE</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>For services provided to the Portfolio Manager Account, the Fund Manager will pay to the Portfolio Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Fund Manager for the previous calendar month at the annual rate of: &nbsp;0.40% of the amount obtained by multiplying the Portfolio Manager&#146;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&#146;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&#146;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&#146;s Percentage times the Average Total Fund Net Assets exceeding $1.2 billion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Portfolio Manager&#146;s Percentage&#148; means the percentage obtained by dividing (i) the average daily net asset values of the Portfolio Manager Account during the preceding calendar month, by (ii) the Average Total Fund Net Assets.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Average Total Fund Net Assets&#148; means the average daily net asset values of the Fund as a whole during the preceding calendar month.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>The fee shall be pro-rated for any month during which this Agreement is in effect for only a portion of the month.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
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<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>_</TITLE>
<META NAME="date" CONTENT="07/19/2011">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:672px"><P style="margin:0px" align=right><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT</B></P>
<P style="margin:0px" align=center><B>TCW INVESTMENT MANAGEMENT COMPANY</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>______________ ___, 2011</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Re: <U>Portfolio Management Agreement</U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Ladies and Gentlemen:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>Liberty All-Star Equity Fund (the &#147;Fund&#148;) is a diversified closed-end investment company registered under the Investment Company Act of 1940, as amended &nbsp;(the &#147;Act&#148;), and is subject to the rules and regulations promulgated thereunder.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>ALPS Advisors, Inc. (the &#147;Fund Manager&#148;) evaluates and recommends portfolio managers for the assets of the Fund, and the Fund Manager or an affiliate of the Fund Manager is responsible for the day-to-day Fund administration of the Fund.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>1. <U>Employment as a Portfolio Manager.</U> &nbsp;The Fund, being duly authorized, hereby employs TCW Investment Management Company (&#147;Portfolio Manager&#148;) as a discretionary portfolio manager, on the terms and conditions set forth herein, of that portion of the Fund&#146;s assets which the Fund Manager determines to assign to the Portfolio Manager (those assets being referred to as the &#147;Portfolio Manager Account&#148;). <FONT style="font-family:Times New Roman Bold,Times New Roman"><B>&nbsp;</B></FONT>The Fund Manager may, from time to time, allocate and reallocate the Fund&#146;s assets among the Portfolio Manager and the other portfolio managers of the Fund&#146;s assets. &nbsp;

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.

<FONT style="font-size:20pt">

 &nbsp;</FONT>The Portfolio Manager&#146;s responsibilities<A NAME="_DV_X17"></A><A NAME="_DV_C19"></A>

 for providing portfolio management services to the Fund shall be limited to the Portfolio Manager Account.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>2. <U>Acceptance of Employment; Standard of Performance.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>3. <U>Portfolio Management Services of Portfolio Manager.</U> &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">A.</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>In providing portfolio management services to the Portfolio Manager Account, the Portfolio Manager shall be subject to the Fund&#146;s Declaration of Trust and By-Laws, as amended from time to time, 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 &#147;Prospectus&#148;), the investment objectives, 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. &nbsp;The Portfolio Manager shall not consult with any other portfolio manager of the Fund concerning transactions for the Fund in securities or other assets.</P>
<A NAME="_DV_C34"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C35"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:72px; float:left">

B.

</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C36"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C37"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(i)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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

</P>
<A NAME="_DV_C38"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C39"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(ii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C40"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C41"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iii)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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;

</P>
<A NAME="_DV_C42"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_C43"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(iv)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

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<A NAME="_DV_C45"></A>

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">

(v)

</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>

cooperate with and provide reasonable assistance to the Fund Manager, the Fund&#146;s administrator, 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.

</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>4. <U>Transaction Procedures.</U> &nbsp;All portfolio transactions for the Portfolio Manager Account will be consummated by payment to or delivery by the custodian of the Fund (the &#147;Custodian&#148;), 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:18px" align=justify>5. <U>Allocation of Brokerage.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; float:left">A. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>In doing so, the Portfolio Manager&#146;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 &#147;best execution&#148; 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">B. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:96px; clear:left; float:left">C. </P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager shall not execute any portfolio transactions for the Portfolio Manager Account with a broker or dealer which is an &#147;affiliated person&#148; (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 &#147;affiliated persons&#148; of the Fund or its portfolio managers.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px; clear:left" align=justify>6. <U>Proxies.</U> &nbsp;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, and reviewed and approved by the Board of Trustees. &nbsp;

Upon the written request of the Fund Manager, the 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, and reviewed and approved by the Board of Trustees.

<FONT style="color:#0000FF"><U>

 &nbsp;

</U></FONT></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>7. <U>Fees for Services.</U> 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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>8. <U>Other Investment Activities of Portfolio Manager.</U> 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 (&#147;Client Accounts&#148;), 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 (&#147;Affiliated Accounts&#148;). 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&#146;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>9. <U>Limitation of Liability.</U> &nbsp;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&#146;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).</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>10. <U>Confidentiality.</U> &nbsp;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.</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>11. <U>Assignment.</U> &nbsp;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. &nbsp;Should the Fund enter into a new contract with the Portfolio Manager in connection with an assignment, the Portfolio Manager agrees to pay all costs and expenses incurred by the Fund to obtain shareholder approval of the new contact, including costs associated with the preparation and mailing of the Fund&#146;s proxy statement and shareholder meeting and proxy solicitation fees. </P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:18px" align=justify>12. <U>Representations, Warranties and Agreements of the Fund.</U> &nbsp;The Fund represents, warrants and agrees that:</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>A. The Portfolio Manager has been duly appointed to provide investment services to the Portfolio Manager Account as contemplated hereby.</P>
<P style="margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:12px" align=justify>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 Portfolio Manager Account and such other information as is necessary for the Portfolio Manager to carry out its obligations under this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>13. <U>Representations, Warranties and Agreements of the Portfolio Manager.</U> &nbsp;The Portfolio Manager represents, warrants and agrees that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>A. It is registered as an &#147;investment adviser&#148; under the Investment Advisers Act of 1940, as amended (&#147;Advisers Act&#148;) and will continue to be so registered for as long as this Agreement remains in effect.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 material violation of its code of ethics or, if such a violation has occurred, that appropriate action was taken in response to such violation. &nbsp;It will promptly notify the Fund Manager of any material change to its code of ethics or material violation of its code of ethics.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:12px" align=justify>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 Board of Trustees under said Declaration of Trust, as Trustees and not to the Trustees 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. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:62.4px; width:101.4px; float:left">F.</P>
<P style="margin:0px; padding-left:101.4px; text-indent:-2px" align=justify>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).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">G.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;SEC&#148;), check the &#147;13F Combination Report&#148; box and on the Form 13F Summary Page identify &#147;ALPS Advisors, Inc.&#148; as another manager for which the Portfolio Manager is filing the Form 13F report; (ii) within 60 days after the end of each calendar year, provide the Fund Manager with a certification that the Portfolio Manager&#146;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.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:54px; float:left">H.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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&#146;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&#146;s compliance policies and procedures; and (c) the name of the Portfolio Manager&#146;s Chief Compliance Officer to act as a liaison for compliance matters that may arise between the Fund and the Portfolio Manager.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">I.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>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. &nbsp;The Portfolio Manager agrees to bear all reasonable expenses of the Fund, if any, arising out of an assignment or change in control.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:36px; width:48px; float:left">J.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify>The Portfolio Manager agrees to maintain an appropriate level of errors and omissions or professional liability insurance coverage.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>14. <U>Amendment.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>15. <U>Effective Date; Term.</U> &nbsp;This Agreement shall become effective on the date first above written, provided that this Agreement shall not take effect unless it has first been approved: (1) by a vote of a majority of the Trustees who are not &#147;interested persons&#148; (as defined in the Act) of any party to this Agreement (&#147;Independent Trustees&#148;), cast in person at a &nbsp;meeting called for the purpose of voting on such approval, and (ii) by vote of &#147;a majority of the outstanding voting securities&#148; (as defined in the Act) of the Fund. &nbsp;This Agreement shall continue for two years from the date of this Agreement and from year to year thereafter provided such continuance is specifically approved at least annually by (i) the Fund&#146;s Board of Trustees or (ii) a vote of a majority of the outstanding voting securities of the Fund, provided that in either event such continuance is also approved by a majority of the Independent Trustees, by vote cast in person at a meeting called for the purpose of voting on such approval. &nbsp;If the SEC issues an order to the Fund and the Fund Manager for an exemption from Section 15(a) of the Act, then, in accordance with the application of the Fund and the Fund Manager, the continuance of this Agreement after initial approval by the Trustees as set forth above, shall be subject to approval by a majority of the outstanding voting securities of the Fund at the regularly scheduled annual meeting of the Fund&#146;s shareholders next following the date of this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>16. <U>Termination.</U> &nbsp;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&#146; written notice to the Portfolio Manager in the case of termination by the Fund or the Fund Manager, or ninety (90) days&#146; 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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>17. <U>Applicable Law.</U> &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>18. <U>Severability; Counterparts.</U> &nbsp;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. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:19.2px" align=justify>19. &nbsp;<U>Use of Name</U>. &nbsp;The Portfolio Manager agrees and acknowledges that the Fund Manager is the sole owner of the names and marks &#147;Liberty All-Star&#148; and &#147;All-Star&#148;, 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. &nbsp;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. &nbsp;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. &nbsp;Consent by the Fund Manager shall not be unreasonably withheld. &nbsp;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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:19.2px" align=justify><U>20. &nbsp;Notices</U>. All notices and other communications hereunder shall be in writing, shall be deemed to have been given when received or when sent by U.S. mail, overnight carrier or facsimile, and shall be given to the following addresses (or such other addresses as to which notice is given):</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px" align=justify>To Fund Manager:</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">ALPS Advisors, Inc.<BR>
1290 Broadway, Suite 1100<BR>
Denver, Colorado 80203<BR>
Attn: General Counsel<BR>
Phone: &nbsp;(303) 623-2577<BR>
Fax: (303) 623-7850</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:96px">To the Portfolio Manager:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">TCW Investment Management Company</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">865 S. Figueroa St.</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Los Angeles, CA &nbsp;90017</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Attn: &nbsp;</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Phone:</P>
<P style="line-height:10pt; margin:0px; padding-left:96px">Fax:</P>
<P style="line-height:10pt; margin:0px"><BR></P>
<P style="margin:0px" align=center>******************</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">LIBERTY ALL-STAR EQUITY FUND</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">ALPS ADVISORS, INC.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:180px">By: ________________________________________</P>
<P style="margin:0px; padding-left:180px">Name: &nbsp;</P>
<P style="margin:0px; padding-left:180px">Title: &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">ACCEPTED:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">TCW INVESTMENT MANAGEMENT COMPANY</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">By: ________________________________________</P>
<P style="margin:0px">Name:</P>
<P style="margin:0px">Title:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=114 /><TD width=363.667 /></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px">SCHEDULES:</P>
</TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">A.</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Operational Procedures </P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">B. &nbsp;</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Records To Be Maintained By The Portfolio Manager</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=114><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=363.667><P style="margin-top:0px; margin-bottom:-2px; width:24px; float:left">C. </P>
<P style="margin:0px; padding-left:24px; text-indent:-2px">Portfolio Manager Fee</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE A</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>TCW INVESTMENT MANAGEMENT COMPANY</B></P>
<P style="margin:0px" align=center><B>OPERATIONAL PROCEDURES</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>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.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px">The necessary information must be transmitted via facsimile machine to Max King at State Street at 617-662-2342 and contain an authorized signature.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B>Liberty All-Star Equity Fund trade reporting requirements:</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Name of Fund &amp; Portfolio Manager</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Trade date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">3.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Settlement date</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">4.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase or sale</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">5.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Security name/description</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">6.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Cusip / sedol / or other numeric identifier</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">7.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Purchase/sale price per share or unit</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">8.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Interest purchased/sold (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">9.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Aggregate commission amount</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">10.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Indication as to whether or not commission amounts are ALPS Directed.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">11.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Executing broker and clearing bank (if applicable)</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">12.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Total net amount of the transaction</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">13.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Sale lot disposition method, if different from the established policy of Lowest Cost.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">14.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:12.2px; padding-left:24px; text-indent:-2px" align=justify>Confirmation of DTC trades; please advise brokers to use the custodian&#146;s DTC ID system number to facilitate the receipt of information by the custodian. &nbsp;The Portfolio Manager will affirm trades to the custodian.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; clear:left" align=justify><BR></P>
<A NAME="OLE_LINK3"></A><A NAME="OLE_LINK4"></A><P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Commission Reporting</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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. &nbsp;The Portfolio Manager is responsible for comparing their records to the accounting records and contacting the Fund Manager regarding discrepancies.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Trade Exception Processing</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; float:left">1.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:-2px; width:24px; clear:left; float:left">2.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:24px; text-indent:-2px" align=justify>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 &#147;best efforts&#148; basis.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px; padding-left:192px; text-indent:48px; clear:left" align=justify><B><U>State Street Delivery Instructions</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>DTC instructions</U></B>:</P>
<P style="line-height:10pt; margin:0px" align=justify><B>For Liberty All Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Depository Trust Company (DTC)</P>
<P style="line-height:10pt; margin:0px" align=justify>Participant # 0997</P>
<P style="line-height:10pt; margin:0px" align=justify>Agent Bank# 20997</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: C7R4</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Physical Securities DVP/RVP</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>DTC/New York Window</P>
<P style="line-height:10pt; margin:0px" align=justify>55 Water Street</P>
<P style="line-height:10pt; margin:0px" align=justify>New York, NY 10041</P>
<P style="line-height:10pt; margin:0px" align=justify>Attn: Robert Mendes</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: Fund <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>C7R4</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Government issues delivered through Fed Book Entry</U></B></P>
<P style="line-height:10pt; margin:0px" align=justify>Boston Federal Reserve Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA &nbsp;011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>STATE ST BOS/SPEC/C7R4</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin:0px" align=justify><B><U>Wire Instructions</U>:</B></P>
<P style="line-height:10pt; margin:0px" align=justify>State Street Bank</P>
<P style="line-height:10pt; margin:0px" align=justify>ABA # 011000028</P>
<P style="line-height:10pt; margin:0px" align=justify>Ref: <B>Liberty All-Star Equity Fund</B></P>
<P style="line-height:10pt; margin:0px" align=justify>Fund Number: C7R4</P>
<P style="line-height:10pt; margin:0px" align=justify>DDA # 4061767</P>
<P style="line-height:10pt; margin:0px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Custodian (State Street Corporation)</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B>Voluntary Corporate Actions</B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>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 <A NAME="OLE_LINK5"></A>the fax number indicated on the corporate action notice.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><B><U>Other Custodian Requirements</U></B></P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>All trades must be transmitted to the custodian bank, State Street, via signed facsimile to 617-662-2342. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>In the event there are no trades on a given day State Street needs to receive a signed fax indicating this.</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need an authorized signature list from the Portfolio Manager. </P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify>State Street will need the daily contacts for corporate actions and trading from the Portfolio Manager (please notify SSC of any future changes).</P>
<P style="line-height:10pt; margin-top:0px; margin-bottom:6.667px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE B</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>RECORDS TO BE MAINTAINED BY THE PORTFOLIO MANAGER</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">1.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the broker; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The terms and conditions of the order and of any modifications or cancellation thereof;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; clear:left; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>The time of entry or cancellation; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; clear:left; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The price at which executed; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.733px; clear:left; float:left">E.</P>
<P style="margin:0px; padding-left:35.733px; text-indent:-2px" align=justify>The time of receipt of a report of execution; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:35.333px; clear:left; float:left">F.</P>
<P style="margin:0px; padding-left:35.333px; text-indent:-2px" align=justify>The name of the person who placed the order on behalf of the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">2.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">A.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>Shall include the consideration given to: </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(i)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>The sale of shares of the Fund by brokers or dealers. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:60px; float:left">(ii)</P>
<P style="margin:0px; padding-left:60px; text-indent:-2px" align=justify>&nbsp;The supplying of services or benefits by brokers or dealers to:</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; float:left">(a)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(b)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Fund Manager; </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(c)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>The Portfolio Manager; and </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:63.6px; width:84px; clear:left; float:left">(d)</P>
<P style="margin:0px; padding-left:84px; text-indent:-2px" align=justify>Any person other than the foregoing. </P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:41.733px; width:66px; float:left">(iii)</P>
<P style="margin:0px; padding-left:66px; text-indent:-2px" align=justify>Any other consideration other than the technical qualifications of the brokers and dealers as such.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">B.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>Shall show the nature of the services or benefits made available.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:36.6px; float:left">C.</P>
<P style="margin:0px; padding-left:36.6px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:19.2px; width:37.467px; float:left">D.</P>
<P style="margin:0px; padding-left:37.467px; text-indent:-2px" align=justify>The name of the person responsible for making the determination of such allocation and such division of brokerage commissions or other compensation.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; float:left">3.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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.<SUP>1</SUP></P>
<P style="margin-top:0px; margin-bottom:-2px; width:15.267px; clear:left; float:left">4.</P>
<P style="margin:0px; padding-left:15.267px; text-indent:-2px" align=justify>(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&#146;s transactions with the Fund.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px">__________</P>
<P style="margin-top:0px; margin-bottom:-2px; width:21.267px; float:left"><SUP>1</SUP></P>
<P style="margin:0px; padding-left:21.267px; text-indent:-2px" align=justify>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.</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>LIBERTY ALL-STAR EQUITY FUND</B></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGEMENT AGREEMENT<BR>
SCHEDULE C</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>PORTFOLIO MANAGER FEE</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>For services provided to the Portfolio Manager Account, the Fund Manager will pay to the Portfolio Manager, on or before the 10<SUP>th</SUP> day of each calendar month, a fee calculated and accrued daily and payable monthly by the Fund Manager for the previous calendar month at the annual rate of: &nbsp;0.40% of the amount obtained by multiplying the Portfolio Manager&#146;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&#146;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&#146;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&#146;s Percentage times the Average Total Fund Net Assets exceeding $1.2 billion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Portfolio Manager&#146;s Percentage&#148; means the percentage obtained by dividing (i) the average daily net asset values of the Portfolio Manager Account during the preceding calendar month, by (ii) the Average Total Fund Net Assets.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>&#147;Average Total Fund Net Assets&#148; means the average daily net asset values of the Fund as a whole during the preceding calendar month.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>The fee shall be pro-rated for any month during which this Agreement is in effect for only a portion of the month.</P>
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