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Diversified Income Fund

Diversified Income Fund    Fact Sheet


Fixed Income



A Shares (BCGAX)
Inception: 01.29.1998
C Shares (BCCCX)
Inception: 02.01.2001
Inst'l Shares (BMGTX)
Inception: 10.02.1997

Philosophy and Process

  • The fund seeks income and capital appreciation by investing in a broad range of income-generating asset classes and strategies.
  • The strategy is based on the insight that a diversified, opportunistic approach across multiple income-generating asset classes and strategies have the potential to simultaneously accomplish the objectives of providing a stable income stream for investors and generating competitive long-term total returns (absolute and risk-adjusted) versus strategies that rely more heavily on capital appreciation.
  • Expanding the opportunity set to include non-traditional investments such as insurance-linked securities and option strategies has the potential to enhance income and also lead to additional sources of alpha.
  • The portfolio management team will make allocation decisions according to their outlook for the economy, financial markets and relative market valuation of the underlying funds.
  • The Fund uses a cost-effective blend of active and passive management to help achieve its objectives.

Investment Considerations

The fund is primarily concentrated in underlying funds and is therefore subject to the same risks the funds are invested in and may entail higher expenses. The fund is also subject to valuation risk which is the risk the fund has valued certain securities that won't appreciate as anticipated or remain undervalued for a long period of time.

The underlying funds may be invested in equity securities including more aggressive investments that engage in short selling, options, exchange-traded funds (ETFs), Master Limited Partnerships (MLPs - affected by the natural resources sector of the economy and regulation) and real estate investment trusts (REITs - affected by economic factors related to the real estate industry). The fund's volatility may be amplified by its use of short sales and derivatives. Investments in fixed income and debt type securities are subject to credit risk, call risk, prepayment and interest rate risk so that as interest rates rise the value of bond prices will decline. Investing in high-yield debt (junk) securities involve greater risks and less liquidity than investment grade bonds.

Fund Facts

Class A Shares Class C Shares Class Inst'l Shares
Inception Date 01.29.199802.01.200110.02.1997
Investment Min. $1,000.00$1,000.00$1,000,000.00
Subsequent Investment Min.* $0.00$0.00$0.00
Max. Up Front Sales Charge 5.75%N/AN/A
Max. Deferred Sales Charge N/A1.00%N/A
*If subsequent investments are made as part of an AIP, the minimum is $25.


Shane A. Burke
Shane A. Burke

Executive Director

View Biography
Brandon W. Carl, CFA®
Brandon W. Carl, CFA®

Executive Director

View Biography


Fund Performance as of 09.30.2020

QTR YTD 1 Year 3 Years 5 Years 10 Years Since
A Shares with 5.75% Sales Charge -3.15% -14.56% -12.16% -2.92% 0.82% 2.84% 3.37%
A Shares without Sales Charge 2.77% -9.34% -6.78% -0.98% 2.01% 3.45% 3.63%
Institutional Shares 2.91% -9.13% -6.55% -0.72% 2.28% 3.71% 3.90%
Lipper Mixed-Asset Target Allocation Conservative Median 3.21% 3.07% 5.71% 4.30% 5.15% 5.10% N/A

The total expense ratios for Class A, C and I Shares are 1.47%, 2.22% and 1.22%, respectively.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit the performance summary.

The performance of the Diversified Income Fund reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The inception date for Class A Shares is 01/29/1998. The inception date for Class C Shares is 02/01/2001. The inception date for Class Inst'l Shares is 10/02/1997. The performance for Class A Shares is based on the historical performance of Class A shares, which commenced operations on 10/2/97. The inception date for C Shares is 2/1/01. The performance for Class C Shares is based on the performance of Class A Shares. The performance shown reflects the reinvestment of all dividend and capital gains distributions. The Fund is structured as a fund-of-funds and is subject to the same risks as the funds they hold. Investors will incur the expenses of the Fund in addition to fees of the underlying funds in the portfolio.


Asset Allocation as of 09.30.2020

Allocations are based on the current weight to funds in the cited Sector. The composition of the fund's holdings is subject to change.

Growth of $10,000 as of 09.30.2020

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2020. It includes the reinvestment of dividends and capital gains.

Glossary of Terms


Fact Sheet
Monthly Holdings
Fund Reports
Fund Reports

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Not a deposit - Not FDIC insured - Not guaranteed by the bank - Not insured by any government agency - May lose value

An investor should consider a fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Sterling Capital Funds can be found in the Funds' prospectus. To obtain a prospectus, please call 1 (888) 228-1872 or click here. Please read the prospectus carefully before investing.

Sterling Capital Management LLC, a separate subsidiary of Truist Financial Corporation, serves as investment adviser to the Sterling Capital Funds and is paid a fee for its services as described in the prospectus. Shares of the Sterling Capital Funds are not deposits or obligations of, or guaranteed or endorsed by, Branch Banking and Trust Company now Truist Bank or its affiliates. The Funds are not insured by the FDIC or any other government agency. The Funds are distributed by Sterling Capital Distributors LLC, which is not affiliated with Branch Banking and Trust Company now Truist Bank or its affiliates.