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Intermediate U.S. Government Fund

Intermediate U.S. Government Fund    Fact Sheet


High
Med.
Low
Ltd.Mod.Ext.

Morningstar Style Box

A Shares (BGVAX)
Inception: 10.09.1992
C Shares (BIUCX)
Inception: 02.01.2001
Inst'l Shares (BBGVX)
Inception: 10.09.1992

Philosophy and Process

The Fund seeks current income consistent with the preservation of capital.

The Fund invests, under normal market conditions, in U.S. Government Securities, some of which may be subject to repurchase agreements, or in "high grade" (rated at the time of purchase in one of the three highest rating categories by a nationally recognized statistical rating organization or are determined by the portfolio manager to be of comparable quality) mortgage-backed securities, including collateralized mortgage obligations.


Investment Considerations

The fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline and an investor may lose money. The fund may invest in mortgage backed securities which tend to be more sensitive to changes in interest rates. The fund invests in U.S. Government securities or its agencies (such as Fannie Mae or Freddie Mac securities). Although U.S. Government Securities issued directly by the U.S. Government are guaranteed by the U.S. Treasury, other U.S. Government Securities issued by an agency or instrumentality of the U.S. government may not be. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

Fund Facts

Class A Shares Class C Shares Class Inst'l Shares
Ticker BGVAXBIUCXBBGVX
Inception Date 10.09.199202.01.200110.09.1992
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 2.00%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.

Management

Brad D. Eppard, CFA ®
Brad D. Eppard, CFA ®

Director

View Biography
Neil T. Grant, CFA ®
Neil T. Grant, CFA ®

Managing Director

View Biography

Performance

Fund Performance as of 09.30.2018

QTR YTD 1 Year 3 Years 5 Years 10 Years Since
Inception
A Shares with 2.00% Sales Charge -2.31% -3.45% -3.67% -0.88% 0.27% 1.89% 3.99%
A Shares without Sales Charge -0.26% -1.48% -1.73% -0.20% 0.68% 2.10% 4.06%
Institutional Shares -0.20% -1.30% -1.48% 0.05% 0.93% 2.34% 4.32%
Lipper Intermediate U.S. Gov't Median -0.45% -1.51% -1.81% 0.15% 1.18% 2.44% N/A

The total expense ratios for Class A, C and I Shares are 0.87%, 1.62% and 0.62%, 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 Intermediate U.S. Government 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 10/9/92. The inception date for Class A Shares is 10/09/1992. The inception date for Class C Shares is 02/01/2001. The inception date for Class Inst'l Shares is 10/09/1992.  The performance of Class C Shares is based on the historical performance of Class A Shares, adjusted to reflect the 1% contingent deferred sales charge. Performance does not reflect Class C Share 12b-1 fees or expenses. Performance of Institutional Shares prior to inception is based on the performance of Class S Shares of the Fund which were re-designated as Institutional Shares as of February 1, 2013. With those adjustments, performance would be lower. The performance shown reflects the reinvestment of all dividend and capital gains distributions.


Characteristics

Quality Breakdown as of 09.30.2018

Credit quality ratings using Moody's rating symbols reflect the credit quality of the underlying bonds in the fund portfolio and not of the Fund itself. Moody's assigns a range of ratings from Aaa being the highest quality to C being the lowest rated class of bonds. Securities not rated by Moody's may be rated by S&P, Fitch or if no agency rating is available, the Fund will assign a rating of not rated. Bond quality ratings are subject to change.

Effective Duration Breakdown as of 09.30.2018

Name Value
0-1 Yr. 19.8
1-2 Yrs. 11.6
2-3 Yrs. 11.9
3-5 Yrs. 24.7
5-10 Yrs. 32.0

Summary Statistics as of 09.30.2018

Name Value
Number of Holdings 57
Average Life 4.74 Years
Effective Duration 3.72 Years
Annual Turnover 41

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

Portfolio Composition as of 09.30.2018

Composition Fund Index
Corporate 2.5% 0.0%
     Financial Institutions 1.7% 0.0%
     Industrial 0.8% 0.0%
Government Related 37.5% 3.9%
     Agency 33.9% 3.9%
     Local Authority 3.6% 0.0%
Securitized 24.9% 0.0%
     ABS 1.2% 0.0%
     CMBS 5.2% 0.0%
     CMO 12.0% 0.0%
     MBS Passthrough 6.5% 0.0%
Treasury 31.2% 96.1%
     Treasury 31.2% 96.1%
Cash & Equivalents 3.8% 0.0%
     Cash & Equivalents 3.8% 0.0%

Top Ten Holdings as of 09.30.2018

Name Value
FNMA 6.25% 15-May-2029 5.56%
U.S. Treasury Notes 1.38% 30-Sep-2018 5.30%
U.S. Treasury Notes 1.25% 31-Oct-2018 4.41%
FHLMC 3.15% 28-Jun-2023 4.39%
U.S. Treasury Notes 2.75% 15-Feb-2024 4.37%
U.S. Treasury Notes 3.13% 15-May-2021 3.11%
FNMA 7.13% 15-Jan-2030 2.98%
FNMA, Series 2016-49, Class PA 3.00% 18-Jan-2038 2.41%
U.S. Treasury Notes 0.13% 15-Apr-2019 2.36%
FNMA, Pool #FN0000 3.59% 01-Sep-2020 2.34%

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

Growth of $10,000 as of 09.30.2018

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2018. It includes the reinvestment of dividends and capital gains.

Glossary of Terms

Distribution

Monthly Dividend Distribution as of 10.31.2018

Month Class A Shares Class C Shares Class Inst'l Shares
October 2018 $0.0164 $0.0104 $0.0185
September 2018 $0.0167 $0.0108 $0.0186
August 2018 $0.0162 $0.0101 $0.0182
July 2018 $0.0223 $0.0162 $0.0244
June 2018 $0.0240 $0.0181 $0.0261
May 2018 $0.0249 $0.0188 $0.0270
April 2018 $0.0245 $0.0186 $0.0265
March 2018 $0.0253 $0.0191 $0.0273
February 2018 $0.0246 $0.0190 $0.0264
January 2018 $0.0262 $0.0200 $0.0283
December 2017 $0.0191 $0.0128 $0.0212
November 2017 $0.0187 $0.0126 $0.0208

30-Day SEC Yield as of 10.31.2018

Class A 2.32%
Class C 1.63%
Class I 2.63%

Materials

Fact Sheet
Monthly Holdings
Fund Reports
Fund Reports

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STERLING CAPITAL FUNDS ARE:

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 BB&T 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 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 or its affiliates.