BOSTON - Liberty Funds Distributor Inc. has launched an aggressive growth fund that focuses on reducing investors' tax burden on returns.

The Liberty Tax-Managed Aggressive Growth Fund is the fourth such portfolio started by the company.

The fund is to invest in mid-cap companies with long-term growth prospects. Fund managers are also looking to reduce tax exposure through a variety of means, including holding securities for long periods, minimizing turnover, buying stocks that pay low dividends, and offsetting gains with losses, the company said.

Citing its own results and data from Morningstar Inc., the company said that in the three years through March 31 the average tax-managed fund gained 22.95%, compared to 22.12% for average equity funds on an after-tax basis.

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