Liberty All-Star Growth Fund Inc · NYSE:ASG
Liberty All-Star Growth Fund — Proxy Contest (April 2010)
17 slides from Liberty All-Star Growth Fund's proxy contest presentation, Apr 6, 2010
Slide 1: Liberty All-Star Growth Fund, Inc. Investor Presentation
William R. Parmentier, Jr. President Mark T. Haley, CFA Senior Vice President Thomas W. Brock Independent Director Liberty All-Star® Growth Fund, Inc. Investor Presentation
Slide 2: Contents
Fund Facts Investment Process Management’s Response Summary Contents
Slide 3: Fund Facts
* Annual distribution rate was changed from 10% to 6% effective 2nd quarter 2009 Fund Facts Ticker Symbol: NYSE: ASG (Market Price) Nasdaq: XASGX (NAV) Fund Type: Closed-end, Multi-Managed Style: Multi-Cap Growth Investment Advisor: ALPS Advisors, Inc. Number of Sub-Advisers: Three (Small, Mid, and
Slide 4: Investment Process
Goal: Superior Performance with Less Volatility Fund Review of Multi-Manager Structure & Design Daily Monitoring of Transactions & Performance Selection of Managers with Complementary Styles Active Rebalancing In-Depth Qualitative & Quantitative Manager Evaluation Investment Process Ongoing Manager
Slide 5: Multi-Management Structure & Design
Combined investment styles and strategies fulfill investment objective Individual portfolio manager styles are complementary Portfolio structure maintained via active rebalancing Multi-Management Structure & Design
Slide 6: Selection of Managers
Selection Of Managers Philosophy People Process Performance Stated investment philosophy applied consistently over time Continuity of key people Structured decision making process applied consistently over time Competitive historical performance 4 P’s
Slide 7: In-Depth Manager Evaluation
Investment style is consistently practiced Firm’s professionals and process continue to support style Transactions and holdings representative of style Competitive performance relative to peers and benchmarks Continuity of ownership structure Replace managers when necessary In-Depth Manager Evaluati
Slide 8: Why Replace A Manager?
Change/deviation in fundamental investment philosophy or process of the firm Major change in the ownership and/or organizational structure of the firm Departure of key investment professionals (people) Period of poor performance versus relevant benchmarks and peers Why Replace A Manager?
Slide 9: Fund and Board Evaluation of FVP's Proxy
No specific proposals Misleading to shareholders Will impair Advisor’s ability to manage the Fund Designed to benefit FVP’s short-term interests at the expense of long-term shareholders Fund and Board Evaluation of FVP’s Proxy: Fair Value Partners L.P. (FVP) Proxy
Slide 10: FVP Proxy Is Misleading To Shareholders
During this period, the facts are as follows: The Fund outperformed its primary benchmark – The Lipper Multi-Cap Growth Mutual Fund Average The Fund outperformed 64% of its peers in that Lipper universe The Russell 3000® Growth Index lost over 2.5 times more per annum than the Fund The Fund’s market
Slide 11: Performance Summary: 10 Years Ending January 31, 2010
Lipper Percentile Rank: 36th Percentile Fund Performance Comparisons* 10 Years Ending January 31, 2010 * Performance data are annualized total returns. Percentile ranks calculated using the Fund’s NAV reinvested results within the Lipper Multi-Cap Growth Mutual Fund Universe (1=best; 100=worst). Per
Slide 12: Performance Summary: Periods Ending March 31, 2010
* Performance data are total returns. Returns greater than 1 year are annualized. Percentile ranks calculated using the Fund’s NAV reinvested results within the Lipper Multi-Cap Growth Mutual Fund Universe (1=best; 100=worst). Performance Summary Fund Performance Comparisons Periods Ending March 31,
Slide 13: FVP Proxy Is Misleading To Shareholders
The facts are as follows: Multi-management is a widely accepted institutional investment process that reduces portfolio volatility. It is practiced by the world’s largest and most successful pension and endowment funds Liberty All-Star Growth Fund is unique in that it provides individual investors a
Slide 14: Fund Performance and Volatility Compared
69 Open-End Multi-Cap Growth Funds as classified by Lipper, Inc. Fund Performance and Volatility Compared With Other Lipper Multi-Cap Growth Funds Ten Years Ending January 31, 2010 Annual Non-Market Volatility (Market = Russell 3000® Growth Index) All-Star Growth Lipper Multi-Cap Growth Universe Ave
Slide 15: FVP Proxy Is Misleading To Shareholders: Discount
The facts are as follows: The six independent board members review the Fund’s discount regularly The Fund’s long-term discount is modest and compares favorably with its peers During the ten year period ended January 31, 2010, the Fund’s average discount was 4.5% The Board put in place a distribution
Slide 16: FVP Will Impair Advisor's Ability to Manage the Fund
The facts are as follows: Since the Fund’s multi-management structure was put in place six sub-advisors have been replaced Impairing our ability to replace sub-advisers – a fundamental aspect of the Advisor’s management responsibilities – will be detrimental to the interest of the Fund’s long-term s
Slide 17: Summary
The Fund and Board believe FVP is not acting in the shareholder’s best interest Summary All non-historical statements in this letter constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks
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