ALL-STAR Equity Fund Jan. Update.

BOSTON--(BUSINESS WIRE)--Feb. 16, 1996--

    Liberty ALL-STAR Equity Fund (NYSE:USA)
    Monthly Update: January 1996

                                                Premium/
Performance            NAV      Market Price    (Discount)
   Beginning of month
    value             $11.04    $10.875          -1.5%
   Distributions    --------   --------
   End of month value $11.39    $11.000          -3.4%
   Performance for
    month                3.2%       1.1%
   Performance
    year-to-date         3.2%       1.1%

(Please Note: Daily NAV and year-to-date NAV performance are available
by calling 1-800-542-3863.)

------------------------------------------------------------------------
Net Assets at Month-End ($ millions)

   Total                            $900.3
   Equities                         $846.7
   Percent Invested in Equities       94.0%

------------------------------------------------------------------------
Top 20 Holdings at Month-End (26.1% of total portfolio)
   (Rank from previous month)

  1 Monsanto (1)               1.9%  11 Kimberly-Clark (13)       1.3%
  2 Royal Dutch Petroleum (3)  1.5%  12 McDonnell Douglas (9)     1.3%
  3 Microsoft (4)              1.5%  13 Ericsson L M (12)         1.2%
  4 First Data (5)             1.5%  14 Cisco Systems (16)        1.2%
  5 Merck (2)                  1.5%  15 Oracle Systems (21)       1.1%
  6 Raytheon (6)               1.4%  16 Citicorp (18)             1.1%
  7 Federal Home Loan                17 American Greetings (19)   1.1%
     Mortgage (11)             1.4%  18 American Int'l Group (22) 1.0%
  8 Avon Products (7)          1.4%  19 Amgen (24)                1.0%
  9 May Department Stores (10) 1.4%  20 EXCEL Limited (27)        1.0%
 10 Computer Assoc. Int'l (15) 1.3%

------------------------------------------------------------------------
Purchases & Sales for Month

New Holdings               Holdings Liquidated

 Allstate                   American Express       LSI Logic (2)
 Boston Scientific          Andrew                 Medtronic (2)
 Cardinal Health (1)        Applied Materials (2)  Nokia (2)
 Elan                       British Petroleum      V.F. Corp
 Freeport-McMoran           Chubb
 Green Tree Financial       KLA Instruments
 Republic Industries        Loral

Major Increases            Major Reductions
($1 million +)             ($1 million +)

 Block (H&R)                Applied Materials
 Kimberly-Clark             Dun & Bradstreet
 Parker-Hannifin            Hewlett-Packard
 St. Jude Medical           Intel
 Tenneco                    Merck
 US Robotics                Nabisco(1) New purchase by one manager, and already held in fund by another

manager. (2) Issue liquidated by one manager, but still held in fund by another

manager.

CONTACT: Liberty Financial

Jeffrey Cathie 617-371-2268