Investors should carefully consider the investment objectives, risks, charges and expenses of the Sterling Capital Active ETFs. This and other important information about the Fund(s) is contained in the prospectus, which can be obtained at www.sterlingcapital.com/ETF or by calling 888.637.7798. The prospectus should be read carefully before investing. The Sterling Capital Active ETFs are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Sterling Capital Management is not affiliated with Northern Lights Distributors, LLC.
Important Risks
Investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. The Sterling Capital Enhanced Core Bond ETF is new and has a limited history of operations.
ETFs are subject to advisory and other expenses, which will be indirectly paid by the Fund(s). ETFs are subject to issuer risks and other risks specific to the Fund(s). Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund(s). Brokerage commissions will reduce returns.
The Fund(s) may face more risks than if it were diversified broadly over numerous industries or sectors. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank and is not insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency.
Interest rate risk occurs when interest rates rise causing bond prices to fall. The Fund’s income could decline during periods of falling interest rates. Fixed-income securities may be susceptible to general movements in the bond market and are subject to credit and interest rate risks.
Credit risk arises from an issuer’s ability to make interest and principal payments when due, as well as the prices of bonds declining when an issuer’s credit quality is expected to deteriorate. Investments in below investment grade or high yield securities are subject to liquidity risk and heightened credit risk.
Mortgage-backed and other asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Rising interest rates tend to extend the duration of mortgage-backed securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. Mortgage-backed securities are also subject to pre-payment risk. Due to their often-complicated structures, various mortgage-backed and asset-backed securities may be difficult to value and may constitute illiquid securities. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer protection credit laws with respect to these securities, which may give the debtor the right to avoid or reduce payment.
High-yield/high-risk debt securities are securities, otherwise known as “junk bonds” are rated below investment grade by the primary rating agencies. These securities are considered speculative and involve greater risk of loss than investment grade debt securities. High-yield/high-risk debt securities are subject to credit risk, market risk, interest rate risk, cyclical economic risk, and price volatility risk. These and other ETF-specific risk considerations, such as limited authorized participants, market makers and liquidity providers risk; not individually redeemable; trading issues; and market price variance risks are described in detail in the “Additional Principal Investment Risk Information” section in the Fund’s Prospectus.
Diversification does not ensure a profit or guarantee against loss.
The opinions contained on this website reflect those of Sterling Capital Management LLC (SCM), are for general information only, and are educational in nature. This information and the opinions expressed are as of the date of publication and are subject to change without notice. These opinions are not meant to be predictions and do not constitute an offer of individual or personalized investment advice. They are not intended as an offer or solicitation with respect to the purchase or sale of any security. All opinions and information herein have been obtained or derived from sources believed to be reliable. Any type of investing involves risk and there are no guarantees that these methods will be successful. SCM does not assume liability for any loss which may result from the reliance by any person upon such information or opinions.
SCM, an indirect, wholly-owned subsidiary of Guardian Capital Group Limited, serves as investment adviser to the Sterling Capital Active ETFs and is paid a fee for its services.
