All-Star Equity Jan. update.

BOSTON--(BUSINESS WIRE)--Feb. 24, 1997--

             Liberty All-Star Equity Fund (NYSE:USA)
                  Monthly Update: January 1997

Performance                   NAV      Market Price     Premium/
                                                       (Discount)

 Beginning of month value   $11.96       $11.250         -5.9%
 Distributions              -----         -----
 End of month value         $12.65       $11.625         -8.1%
 Performance for month        5.8%          3.3%
 Performance year-to-date     5.8%          3.3%
 1996 Performance            21.7%         16.2%

(Please Note: Daily NAV and year-to-date NAV performance are
available by calling 1-800-542-3863.  Past updates and news releases
can be found at LAMCO's web site at www.lamco.com)
----------------------------------------------------------

Net Assets at Month-End ($millions)
   Total                          $1,045.9
   Equities                       $1,003.3
   Percent Invested in Equities       95.9%

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Top 20 Holdings at Month-End (25.5% of total portfolio)
(Rank from previous month)

1   Microsoft (1)                   2.1%
2   Federal Home Loan Mort. (4)     1.7%
3   Intel (2)                       1.6%
4   Monsanto (3)                    1.5%
5   Pfizer (10)                     1.4%
6   McDonnell Douglas (5)           1.3%
7   Warner-Lambert (7)              1.3%
8   Citicorp (9)                    1.3%
9   May Department Stores (6)       1.3%
10  General Electric (29)           1.2%
11  Avon Products (13)              1.2%
12  Columbia/HCA Healthcare (14)    1.2%
13  Providian (18)                  1.1%
14  USX-Marathon (24)               1.1%
15  IBM (8)                         1.1%
16  Travelers (19)                  1.0%
17  NationsBank (67) (A)            1.0%
18  EXEL (21)                       1.0%
19  Cisco Systems (15)              1.0%
20  Federal National Mortgage (20)  1.0%

(A) merged with Boatman BancShares

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Purchases & Sales for Month

New Holdings
------------
Advanta               Fluor                   Panenergy
America Online        General Electric (1)    Teva Pharmaceuticals-ADR
Browning Ferris       General Instruments (1) Texas Instruments
Caterpillar           General Mills           Washington Mutual
Circus Circus         General Motors-CL H     WMX Technologies(1)
Cisco Systems (1)     Grand Metropolitan-ADR  Xilinix
CSX                   HJ Heinz
CVS                   Int'l GameTech
First Union           Motorola
First USA Paymentech  Nordstrom

Holdings Liquidated
--------------------
American Home Products     Fleet Financial (2)
Apple Computer             Home Depot
Atlantic Richfield         IBM (2)
AT&T                       Int'l Flavors & Fragrances
Autodesk                   Minnesota Mining & Mfg.
Broderbund Software        Netscape
Burlington Resources       Read-Rite
Cabletron Systems          Smithkline-Beecham-ADR
Computer Assoc. (2)        Texaco
First Data (2)             Toys R Us (2)
First USA (2)              Walt Disney

Major Increases ($1 million +)
-------------------------------
Bay Networks
Columbia/HCA Healthcare
CUC Int'l
Edison Int'l
Eli Lilly
Pacific Gas & Electric
Sensormatic Electronics


Major Reductions ($1 million +)
-------------------------------
Adaptec                   Hilton Hotels
Aluminum Co. of America   Intel
Amgen                     Kimberly Clark
Boeing                    McDonnell Douglas
Citicorp                  Oracle
CPC Int'l                 US Robotics
Firstar                   USG Corp.
General Motors            Xerox

(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