Toggle navigation

Equity Income Fund

Equity Income Fund    Fact Sheet

Overall Morningstar Rating™

Morningstar StarMorningstar StarMorningstar StarMorningstar Star  

Morningstar Category: Large Value

*Based on risk-adjusted returns among 1154 funds as of 08.31.2022.

Morningstar Style Box

A Shares (BAEIX)
Inception: 06.30.2004
C Shares (BCEGX)
Inception: 06.30.2004
Inst'l Shares (BEGIX)
Inception: 06.30.2004
R6 Shares (STREX)
Inception: 02.01.2018

Philosophy and Process

The fund’s management team utilizes fundamental analysis to construct a portfolio of high-quality, dividend growth equities. They look for the best ideas that include companies with strong balance sheets that are reasonably valued and have shown market/sales gain over time with a credible plan to continue such growth in the future. The fund represents a concentrated portfolio utilizing "best ideas" with the typical number of core holdings between 30 and 35. Dividends matter to the management team and they only purchase companies that have raised their dividends for the last three consecutive years or for six years of the last ten. They target stocks with dividend yields greater than the yield of the S&P 500® Index.

Investment Considerations

The fund invests primarily in dividend-paying securities but also in convertible securities in search of yield. These securities may be undervalued not performing as anticipated and its value could be negatively affected by a rise in interest rates. The fund may engage in writing covered call options. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the stock. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.

Fund Facts

Type Class A Shares Class C Shares Class Inst'l Shares Class R6 Shares
Inception Date 06.30.200406.30.200406.30.200402.01.2018
Investment Min. $1,000.00$1,000.00$1,000,000.00$0.00
Subsequent Investment Min.* $0.00$0.00$0$0
Max. Up Front Sales Charge 5.75%N/AN/AN/A
Max. Deferred Sales Charge N/A1.00%N/AN/A
*If subsequent investments are made as part of an AIP, the minimum is $25.


Adam B. Bergman, CFA®
Adam B. Bergman, CFA®

Co-Portfolio Managers

Charles J. Wittmann, CFA®
Charles J. Wittmann, CFA®

Co-Portfolio Managers


Fund Performance as of 06.30.2022

Share QTR YTD 1 Year 3 Years 5 Years 10 Years Since
A Shares with 5.75% Sales Charge -13.38% -14.47% -5.88% 8.87% 10.54% 10.31% 9.82%
A Shares without Sales Charge -8.11% -9.26% -0.14% 11.04% 11.86% 10.97% 10.18%
Institutional Shares -8.06% -9.15% 0.11% 11.31% 12.14% 11.25% 10.45%
Lipper Equity Income Median -10.72% -12.30% -4.35% 8.12% 8.18% 10.01% N/A

The total expense ratios for Class A, C and I Shares are 1.04%, 1.79% and 0.79%, respectively. The gross expense ratio for Class R6* Shares is 0.79%. The net expense ratio for Class R6* Shares is 0.69%.

The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .10% of the Class R6 average daily net assets for the period February 1, 2021 through January 31, 2022. 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 Equity 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 06/30/2004. The inception date for Class C Shares is 06/30/2004. The inception date for Class Inst'l Shares is 06/30/2004. The inception date for Class R6 Shares is 02/01/2018. The performance shown reflects the reinvestment of all dividend and capital gains distributions.


Top Ten Holdings as of 06.30.2022

Name Value
Anthem, Inc. 4.25%
Starbucks Corp. 4.03%
Fidelity National Information Services, 3.85%
Abbvie, Inc. 3.82%
Goldman Sachs Group, Inc. (The) 3.72%
Microsoft Corp. 3.71%
Analog Devices, Inc. 3.66%
Ace, Ltd. 3.58%
Cvs Health Corp. 3.57%
Abbott Laboratories 3.55%

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Sector Allocation as of 06.30.2022

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 06.30.2022

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 06/30/2022. It includes the reinvestment of dividends and capital gains.

Lipper Equity Income Category Based on Total Return as of 03.31.2022

1 Year 3 Years 5 Years 10 Years
Lipper Ranking / Number of Funds in Category 67/462 24/442 6/407 41/254
Lipper Quartile (Percentile) 1st (15%) 1st (6%) 1st (2%) 1st (17%)

Morningstar Large Value Category Based on Risk-Adjusted Returns as of 03.31.2022

Overall Rating 1 Year 3 Years 5 Years 10 Years
Institutional Shares Morningstar Rating ™ Morningstar StarMorningstar StarMorningstar StarMorningstar StarMorningstar Star -- Morningstar StarMorningstar StarMorningstar StarMorningstar StarMorningstar Star Morningstar StarMorningstar StarMorningstar StarMorningstar StarMorningstar Star Morningstar StarMorningstar StarMorningstar StarMorningstar Star
Morningstar Ranking /
Number of Funds in Category
1,145 133/1,217 73/1,145 6/1,077 128/779
Morningstar Quartile (Percentile) 1st (13%) 1st (8%) 1st (1%) 1st (20%)
Glossary of Terms


Risk/Return Statistics vs. Russell 1000® Value Index* as of 06.30.2022

Alpha 1.23
Beta 0.92
R-Squared 91.32
Standard Deviation 13.52
Sharpe Ratio 0.77

Summary Statistics as of 06.30.2022

Weighted Median P/E 22.79
Weighted Average P/B 3.02
Weighted Average Market Cap. $201.05B
Annual Turnover 27%
*The Funds composition is subject to change.
*Annual Turnover Ratio is 12 month rolling calculation.
*Alpha, Beta, R-Squared, Standard Deviation, and Sharpe Ratio are based on a 10-year calculation.
*Click for a glossary of terms


Fact Sheet
Monthly Holdings
Fund Reports
Fund Reports

© 2022 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.


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 view our fund information 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, 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 Truist Bank or its affiliates.