Strategic Allocation Balanced Fund Fact Sheet
Philosophy and Process
- The Fund seeks capital appreciation and, secondarily, income by investing primarily in a group of diversified Sterling Capital Funds which invest mainly in equity and fixed income securities.
- 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 will invest 45% to 75% of its total assets in Underlying Funds which invest mainly in equity securities, 25% to 55% of its total assets in Underlying Funds which invest mainly in fixed income securities (including investment grade and high yield ("junk") bonds and floating rate securities) and up to 15% of its total assets in underlying Funds which are money market funds.
The Strategic Allocation Funds (Funds of Funds) are primarily concentrated in underlying funds and are therefore subject to the same risks the funds are invested in as well as entail higher expenses than if invested into a fund directly. The underlying funds may be invested in equity securities and is subject to market risk. Investments in bonds are subject to credit risk, call risk and interest rate risk so that as interest rates rise the value of bond prices will decline. The underlying funds may invest in more aggressive investments such as foreign securities, which involve certain risks such as currency volatility, political and social instability and reduced market liquidity; small capitalization companies subject to greater volatility and less liquidity due to limited resources or product lines and more sensitivity to economic factors; and high-yield (junk) debt securities which involve greater risks than investment grade bonds.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in them.
|Class A Shares||Class C Shares||Class Inst'l Shares|
|Subsequent Investment Min.*||$0.00||$0.00||$0.00|
|Max. Up Front Sales Charge||5.75%||N/A||N/A|
|Max. Deferred Sales Charge||N/A||1.00%||N/A|
Fund Performance as of 12.31.2019
|QTR||YTD||1 Year||3 Years||5 Years||10 Years||Since
|A Shares with 5.75% Sales Charge||-1.34%||9.35%||9.35%||5.21%||4.01%||5.94%||4.14%|
|A Shares without Sales Charge||4.71%||16.01%||16.01%||7.31%||5.25%||6.57%||4.41%|
|Lipper Mixed-Asset Target Allocation Moderate Median||N/A||N/A||N/A||N/A||N/A||N/A||N/A|
The gross expense ratios for Class A, C and I Shares are 1.38%, 2.13% and 1.13%, respectively. The net expense ratios for Class A, C and I Shares are 1.13%, 1.88% and 0.88%, respectively.
The Advisor has contractually agreed to limit certain fees paid by the Fund from February 1, 2019 through January 31, 2020. Performance would have been lower without limitations in effect.
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 Strategic Allocation Balanced 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. Performance for Class A Shares for periods prior to inception is based on the performance of Institutional Shares of the Fund. Performance for Class C Shares for periods prior to inception 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 09.30.2019
Allocations are based on the current weight to funds in the cited Sector. The composition of the fund's holdings is subject to change.
Portfolio Allocation as of 09.30.2019
|Sterling Capital Total Return Bond Fund, Instl. Class||36.3%|
|Sterling Capital Behavioral International Equity Fund, Instl. Class||31.7%|
|Sterling Capital Special Opportunities Fund, Instl. Class||15.7%|
|Sterling Capital Equity Income Fund, Instl. Class||15.4%|
|Federated Treasury Obligations Fund||-98.1%|
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 09.30.2019
The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2019. It includes the reinvestment of dividends and capital gains.
© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.