All Star Equity December 2002 Monthly Update.

Business Editors

BOSTON--(BUSINESS WIRE)--Jan. 9, 2003

December 2002 Monthly Update

Performance                NAV    Market    Premium/(Discount)
                                   Price
   Beginning of
    month value           $7.68     $7.49        (2.5%)
   Distributions            -         -
   End of month value     $7.14     $6.64        (7.0%)
   Performance for month   (7.0%)   (11.4%)
   Performance
    year-to-date          (25.2%)   (33.0%)

For daily data visit the Fund's website at www.all-starfunds.com or
call 1-800-241-1850

Net Assets at Month-End ($millions)
   Total                 $868.9
   Common Stocks         $833.2
   Preferred Stocks and
    Convertible Bonds      $7.0
   Percent Invested        96.7%

Top 20 Holdings at Month-End (32.7% of equity portfolio)
   (Rank from previous month)

 1 Freddie Mac (1)     3.1%
 2 Microsoft (2)       2.8%
 3 Countrywide
   Financial (5)       2.3%
 4 Citigroup (4)       2.3%
 5 Progressive (3)     2.1%
 6 Dell Computer (6)   1.7%
 7 Amgen (8)           1.6%
 8 American International
   Group (7)           1.6%
 9 Wells Fargo (9)     1.6%
 10 AFLAC (11)         1.6%
 11 Genentech (10)     1.5%
 12 ChevronTexaco (15) 1.3%
 13 Cisco Systems (14) 1.3%
 14 J.C. Penney (16)   1.2%
 15 XL Capital (17)    1.2%
 16 Liberty Media (19) 1.1%
 17 Carnival (24)      1.1%
 18 Agilent
    Technologies (20)  1.1%
 19 Applied
    Materials (12)     1.1%
 20 Maxim Integrated
    Products (13)      1.1%


Sector Breakdown (% of equity portfolio)

   Financial
    Services         23.0%
   Technology        18.5%
   Consumer
    Discretionary    15.9%
   Health Care       14.0%
   Producer Durables  5.9%
   Integrated Oils
    and Other Energy  5.8%
   Autos and
    Transportation    5.0%
   Materials and
    Processing        3.5%
   Utilities          3.1%
   Consumer Staples   3.1%
   Other              2.2%

                    100.0%

New Holdings

Amazon.com
Dow Chemical
eBay
Procter & Gamble
Shire Pharmaceuticals Group
Tenet Healthcare

Holdings Liquidated

Andrx
Golden West Financial
Household International
Juniper Networks
Stilwell Financial
TXU
Tyson Foods