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North Carolina Intermediate Tax-Free Fund

North Carolina Intermediate Tax-Free Fund    Fact Sheet


Morningstar Style Box

A Shares (BNCAX)
Inception: 10.16.1992
C Shares (BBNCX)
Inception: 02.01.2012
Inst'l Shares (BBNTX)
Inception: 10.16.1992

Philosophy and Process

The Fund seeks current income exempt from federal and North Carolina 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

Type Class A Shares Class C Shares Class Inst'l Shares
Inception Date 10.16.199202.01.201210.16.1992
Investment Min. $1,000.00$1,000.00$1,000,000.00
Subsequent Investment Min.* $0.00$0.00$0
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.


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

Co-Portfolio Manager

Michael P. McVicker
Michael P. McVicker

Co-Portfolio Manager


Fund Performance as of 09.30.2022

Share QTR YTD 1 Year 3 Years 5 Years 10 Years Since
A Shares with 2.00% Sales Charge -4.61% -11.00% -10.71% -2.56% -0.45% 0.51% 3.14%
A Shares without Sales Charge -2.63% -9.22% -8.92% -1.91% -0.05% 0.71% 3.21%
Institutional Shares -2.67% -9.14% -8.78% -1.70% 0.18% 0.96% 3.41%
Lipper Other States Intermediate Municipal Median -2.57% -9.72% -9.37% -1.91% 0.14% 0.94% N/A

The total expense ratios for Class A, C and I Shares are 0.80%, 1.55% and 0.55%, 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 North Carolina 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 10/16/1992. The inception date for Class C Shares is 02/01/2012. The inception date for Class Inst'l Shares is 10/16/1992. 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.


Quality Breakdown as of 09.30.2022

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 09.30.2022

Name Value
0-1 Yr. 9.3
1-2 Yr. 5.5
2-3 Yr. 11.6
3-5 Yr. 32.3
5-10 Yr. 41.3
10+ Yrs.

Summary Statistics as of 09.30.2022

Name Value
Number of Holdings 82
Average Life 5.18 Years
Effective Duration 4.33 Years
Annual Turnover 50%

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

Portfolio Composition as of 09.30.2022

Composition Fund Index
General Obligation 29.1% 28.8%
Pre-Refunded 8.5% 5.7%
Revenue 59.2% 65.5%
Cash 3.2% 0.0%

Top Ten Holdings as of 09.30.2022

Name Value
North Carolina St Grant Antic Rev 4.0% 01-Mar-2034 3.16%
North Carolina St Ltd Oblig 5.0% 01-May-2030 3.14%
Alamance Cnty N C 5.0% 01-May-2027 3.01%
Charlotte N C 5.0% 01-Jun-2029 2.36%
North Carolina St Ltd Oblig 5.0% 01-May-2028 2.23%
Forsyth Cnty N C 5.0% 01-Mar-2031 2.17%
Mecklenburg Cnty N C 5.0% 01-Dec-2027 2.17%
Charlotte N C Wtr & Swr Sys Rev 5.0% 01-Jul-2036 2.14%
Forsyth Cnty N C 4.0% 01-Mar-2029 2.06%
North Carolina St 5.0% 01-Jun-2030 1.86%

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

Growth of $10,000 as of 09.30.2022

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2022. It includes the reinvestment of dividends and capital gains.

Glossary of Terms


Monthly Dividend Distribution as of 11.30.2022

Month Class A Shares Class C Shares Class Inst'l Shares
November 2022 $0.0154 $0.0093 $0.0175
October 2022 $0.0157 $0.0094 $0.0178
September 2022 $0.0145 $0.0083 $0.0166
August 2022 $0.0151 $0.0086 $0.0173
July 2022 $0.0143 $0.0077 $0.0165
June 2022 $0.0132 $0.0069 $0.0153
May 2022 $0.0142 $0.0077 $0.0163
April 2022 $0.0141 $0.0078 $0.0162
March 2022 $0.0130 $0.0063 $0.0152
February 2022 $0.0119 $0.0057 $0.0139
January 2022 $0.0128 $0.0059 $0.0151
December 2021 $0.0121 $0.0051 $0.0144

30-Day SEC Yield as of 10.31.2022

Class A 2.80%
Class C 2.10%
Class I 3.11%


Fact Sheet
Quarterly Holdings
Fund Reports
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