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Maryland Intermediate Tax-Free Fund

Maryland Intermediate Tax-Free Fund    Fact Sheet


High
Med.
Low
Ltd.Mod.Ext.

Morningstar Style Box

A Shares (BMAAX)
Inception: 02.24.2003
C Shares (BMDCX)
Inception: 02.01.2012
Inst'l Shares (BMAIX)
Inception: 02.24.2003

Philosophy and Process

The Fund seeks current income exempt from federal and Maryland income taxes consistent with preservation of capital.

In managing the Fund, the team specializes in actively building and managing a high credit quality fixed income portfolio focused on the intermediate segment of the yield curve offering. The team employs a top-down investment process that focuses on: duration management, yield curve strategy and finding the best relative value with limited amount of risk in order to maximize the risk-adjusted total return.

Buy Strategy: We buy high quality, liquid issues and seek the best relative sector and security values available. We attempt to maximize total return and current income while reducing price volatility.

Sell Strategy: We will consider selling a security we own in order to reposition the Fund along the yield curve and adjust the Fund's average maturity or duration. In addition, we might replace a security with one that offers greater potential for total return or when its credit fundamentals are deteriorating.


Investment Considerations

The funds are subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The funds are non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the funds invest primarily in state specific municipal obligations of issuers and therefore will be affected by economic, political or other events affecting municipal issuers.

Fund Facts

Class A Shares Class C Shares Class Inst'l Shares
Ticker BMAAXBMDCXBMAIX
Inception Date 02.24.200302.01.201202.24.2003
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

Robert F. Millikan, CFA®
Robert F. Millikan, CFA®

Executive Director

View Biography
Michael P. McVicker
Michael P. McVicker

Executive 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 -2.30% -2.96% -3.16% 0.13% 1.28% 3.05% 2.99%
A Shares without Sales Charge -0.29% -1.01% -1.23% 0.81% 1.69% 3.25% 3.12%
Institutional Shares -0.32% -0.91% -1.07% 1.03% 1.94% 3.50% 3.33%
Lipper Other States Intermediate Municipal Median -0.22% -0.79% -0.55% 1.05% 2.08% 3.43% N/A

The total expense ratios for Class A, C and I Shares are 0.86%, 1.61% and 0.61%, 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 Maryland Intermediate Tax-Free 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 02/24/2003. The inception date for Class C Shares is 02/01/2012. The inception date for Class Inst'l Shares is 02/24/2003. Performance reflects 12b-1 fees and applicable expenses. Performance for Class C Shares for periods prior to inception is based on the performance of Class A Shares of the Fund.  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. 5.9
1-2 Yrs. 9.1
2-3 Yrs. 7.5
3-5 Yrs. 40.2
5-10 Yrs. 37.3

Summary Statistics as of 09.30.2018

Name Value
Number of Holdings 40
Average Life 4.93 Years
Effective Duration 4.59 Years
Annual Turnover 31

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
General Obligation 35.7% 33.5%
Pre-Refunded 5.9% 5.5%
Revenue 56.7% 61.1%
Cash & Equivalents 1.7% 0.0%

Top Ten Holdings as of 09.30.2018

Name Value
Prince George's Cnty, MD, Consldtd Pub Imprvmnts, Ser A 4.00% 01-Sep-2025 4.05%
Maryland, St, Stadium Authority Lease Revenue, Ref Bnds 5.00% 15-Jun-2023 3.92%
Cecil County, MD, Consolidated Public Improvement 4.00% 01-Feb-2024 3.73%
Howard Cnty, MD, Ref, Met Dist, Series E 5.00% 15-Feb-2031 3.13%
MD St, Hlth & Hghr Ed Fac Auth Rev, MD Inst Cllg Of Art 5.00% 01-Jun-2023 3.04%
Maryland Stadium Authority 5.00% 01-May-2035 3.03%
City of Baltimore MD 5.00% 01-Jul-2030 3.00%
Washington, MD Sub Sntry Dist, Cnsl Pub Impt-2nd Ser 5.00% 18-Jan-2038 3.00%
Charles County, MD, Consolidated Public Improvement 5.00% 15-Jul-2025 2.99%
Montgomery County, MD, Ad Valorem Prprty Tx, Ref, Ser D 4.00% 01-Nov-2027 2.95%

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 $0.0168 $0.0100 $0.0190
September 2018 $0.0162 $0.0096 $0.0184
August 2018 $0.0165 $0.0097 $0.0188
July 2018 $0.0164 $0.0096 $0.0187
June 2018 $0.0165 $0.0099 $0.0187
May 2018 $0.0172 $0.0104 $0.0195
April 2018 $0.0171 $0.0105 $0.0193
March 2018 $0.0176 $0.0108 $0.0199
February 2018 $0.0159 $0.0097 $0.0180
January 2018 $0.0177 $0.0108 $0.0200
December 2017 $0.0175 $0.0105 $0.0198
November 2017 $0.0169 $0.0101 $0.0191

30-Day SEC Yield as of 10.31.2018

Class A 2.11%
Class C 1.40%
Class I 2.40%

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.