Toggle navigation

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

Neil T. Grant, CFA ®
Neil T. Grant, CFA ®

Managing Director

View Biography
Michael Z. Sun, CFA ®
Michael Z. Sun, CFA ®

Executive Director

View Biography

Performance

Fund Performance as of 03.31.2019

QTR YTD 1 Year 3 Years 5 Years 10 Years Since
Inception
A Shares with 2.00% Sales Charge -0.29% -0.29% 1.10% -0.11% 0.81% 1.62% 4.05%
A Shares without Sales Charge 1.78% 1.78% 3.19% 0.57% 1.22% 1.83% 4.13%
Institutional Shares 1.84% 1.84% 3.45% 0.83% 1.48% 2.08% 4.39%
Lipper Intermediate U.S. Gov't Median 1.95% 1.95% 3.69% 0.94% 1.82% 2.32% N/A

The gross expense ratios for Class A, C and I Shares are 0.91%, 1.66% and 0.66%, respectively. The net expense ratios for Class A, C and I Shares are 0.75%, 1.50% and 0.50%, 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 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 03.31.2019

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 03.31.2019

Name Value
0-1 Yr. 15.1
1-2 Yrs. 18.0
2-3 Yrs. 16.9
3-5 Yrs. 22.8
5-10 Yrs. 27.2

Summary Statistics as of 03.31.2019

Name Value
Number of Holdings 49
Average Life 4.77 Years
Effective Duration 3.54 Years
Annual Turnover 44

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

Portfolio Composition as of 03.31.2019

Composition Fund Index
Corporate 2.5% 0.0%
    Financial Institutions 2.5% 0.0%
Government Related 37.9% 3.3%
    Agency 31.4% 3.3%
    Local Authority 6.6% 0.0%
Securitized 37.0% 0.0%
    ABS 1.2% 0.0%
    CMBS 5.3% 0.0%
    CMO 17.3% 0.0%
    MBS Passthrough 13.1% 0.0%
Treasury 11.6% 96.7%
    Treasury 11.6% 96.7%
Cash & Equivalents 10.9% 0.0%
    Cash & Equivalents 10.9% 0.0%

Top Ten Holdings as of 03.31.2019

Name Value
Federal National Mortgage Association 6.25% 15-may-2029 8.29%
Federal National Mortgage Association 7.125% 15-jan-2030 4.42%
FNMA, Series 2016-49, Class PA 3.31%
Federal Home Loan Mortgage Corporation 2.375% 13-jan-2022 3.16%
Federal Home Loan Bank System 3.27% 07-feb-2028 3.16%
Federal Farm Credit Banks Funding Corp. 2.72% 03-apr-2024 3.14%
MBS OTHER FN FN0000 3.06%
Federal Farm Credit Banks Funding Corp. 2.67% 20-dec-2027 3.05%
Federal National Mortgage Association 1.875% 24-sep-2026 3.02%
New York N Y City Mun Wtr Fin Auth Wtr & Swr Sysrev 6.452% 15-jun-2041 2.63%

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

Growth of $10,000 as of 03.31.2019

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 03/31/2019. It includes the reinvestment of dividends and capital gains.

Glossary of Terms

Distribution

Monthly Dividend Distribution as of 04.30.2019

Month Class A Shares Class C Shares Class Inst'l Shares
April 2019 $0.0216 $0.0157 $0.0237
March 2019 $0.0220 $0.0158 $0.0241
February 2019 $0.0197 $0.0141 $0.0215
January 2019 $0.0191 $0.0129 $0.0211
December 2018 $0.0183 $0.0122 $0.0203
November 2018 $0.0174 $0.0116 $0.0194
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

30-Day SEC Yield as of 04.30.2019

Without Waivers With Waivers
Class A 2.13% 2.29%
Class C 1.43% 1.59%
Class I 2.42% 2.58%

Materials

Fact Sheet
Monthly Holdings
Fund Reports
Fund Reports

© 2019 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.


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.