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Total Return Bond Fund

Total Return Bond Fund    Fact Sheet

Overall Morningstar Rating™

Morningstar StarMorningstar StarMorningstar StarMorningstar StarMorningstar Star  

Morningstar Category: Intermediate-Term Bond

*Based on risk-adjusted returns among 403 funds as of 10.31.2022.

Morningstar Style Box

A Shares (BICAX)
Inception: 12.02.1999
C Shares (BICCX)
Inception: 02.01.2001
Inst'l Shares (BIBTX)
Inception: 12.02.1999
R6 Shares (STRDX)
Inception: 02.01.2018

Philosophy and Process

In managing the fund, the portfolio management team employs a multi-faceted approach to generate excess return and uses a combination of top-down and bottom-up analysis, quantitative vs. qualitative analysis and fundamentals vs. valuation. There is a strong emphasis on risk management and an adherence to certain core investment beliefs:

  • "If you cannot measure it, you cannot manage it."
  • Avoid unintended exposures
  • Average duration around 5 to 7 years with focus on high quality and risk management
  • Participate in longer term trends - don't buy on short-term trends or try to time what is going on in the market
  • Attempts to achieve risk-adjusted performance over time

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. The fund may invest in more aggressive investments such as foreign securities which may expose the fund to currency and exchange rate fluctuations; derivatives (futures and swaps); mortgage backed securities sensitive to interest rates and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.

Fund Facts

Type Class A Shares Class C Shares Class Inst'l Shares Class R6 Shares
Inception Date 12.02.199902.01.200112.02.199902.01.2018
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.


Mark M. Montgomery, CFA®
Mark M. Montgomery, CFA®

Co-Portfolio Manager

Peter L. Brown, CFA®
Peter L. Brown, CFA®

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 5.75% Sales Charge -10.03% -19.61% -19.81% -4.74% -1.21% 0.58% 3.69%
A Shares without Sales Charge -4.50% -14.73% -14.94% -2.85% -0.03% 1.17% 3.96%
Institutional Shares -4.44% -14.57% -14.81% -2.64% 0.20% 1.42% 4.21%
Lipper Core Bond Median -4.67% -15.16% -15.29% -3.21% -0.33% 0.90% N/A

The total expense ratios for Class A, C and I Shares are 0.70%, 1.45% and 0.45%, respectively. The gross expense ratio for Class R6* Shares is 0.45%. The net expense ratio for Class R6* Shares is 0.35%.

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 Total Return Bond 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 12/02/1999. The inception date for Class C Shares is 02/01/2001. The inception date for Class Inst'l Shares is 12/02/1999. The inception date for Class R6 Shares is 02/01/2018. The performance of Class C Shares is adjusted to reflect the 1% contingent deferred sales charge. 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 as of 09.30.2022

Name Value
0-1 Yr. 15.4
1-2 Yr. 9.1
2-3 Yr. 7.9
3-5 Yr. 22.7
5-10 Yr. 28.2
10+ Yrs. 16.7

Summary Statistics as of 09.30.2022

Name Value
Number of Holdings 326
Average Life 8.55 Years
Effective Duration 5.88 Years
Annual Turnover 54%

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
Corporate 25.2% 24.0%
    Financial Institutions 12.4% 8.0%
    Industrial 10.0% 14.0%
    Utility 2.3% 2.0%
Government Related 4.4% 5.3%
    Agency 0.0% 2.1%
    Local Authority 4.4% 0.9%
    Sovereign 0.0% 0.9%
    Supranational 0.0% 1.4%
Securitized 55.0% 29.9%
    ABS 16.0% 0.4%
    CMBS 16.0% 1.9%
    CMO 1.9% 0.0%
    MBS Passthrough 21.1% 27.6%
Treasury 14.9% 40.9%
    Treasury 14.9% 40.9%
Cash 0.5% 0.0%
    Cash 0.5% 0.0%

Top Ten Holdings as of 09.30.2022

Name Value
U.S. Treasury 1.375% 15-Aug-2050 5.04%
U.S. Treasury 2.5% 15-Feb-2045 3.80%
U.S. Treasury 2.625% 15-Feb-2029 2.46%
U.S. Treasury 1.5% 31-Jan-2027 1.71%
Onemain Financial Issuance Trust 2021-1 1.55% 16-Jun-2036 1.61%
Fnma 30Yr Pool 1475 3.500% 01-Apr-2052 1.39%
Onemain Direct Auto Receivables Trust 2021-1 0.87% 14-Jul-2028 1.37%
Americredit Automobile Receivables Trust 2021-1 0.68% 19-Oct-2026 1.33%
Hertz Vehicle Financing Iii Series 2021-2 1.68% 25-Dec-2027 1.25%
Fnma 30Yr Pool 1185 3.500% 01-Apr-2052 1.16%

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 Class R6 Shares
November 2022 $0.0215 $0.0159 $0.0233 $0.0241
October 2022 $0.0212 $0.0155 $0.0231 $0.0239
September 2022 $0.0198 $0.0141 $0.0218 $0.0225
August 2022 $0.0200 $0.0138 $0.0221 $0.0229
July 2022 $0.0198 $0.0137 $0.0219 $0.0227
June 2022 $0.0193 $0.0134 $0.0212 $0.0220
May 2022 $0.0193 $0.0131 $0.0214 $0.0222
April 2022 $0.0183 $0.0122 $0.0203 $0.0211
March 2022 $0.0187 $0.0122 $0.0209 $0.0217
February 2022 $0.0172 $0.0112 $0.0192 $0.0200
January 2022 $0.0182 $0.0114 $0.0205 $0.0214
December 2021 $0.0182 $0.0113 $0.0205 $0.0215

30-Day SEC Yield as of 10.31.2022

Without Waivers With Waivers
Class A 3.52% 3.60%
Class C 2.84% 2.92%
Class I 3.85% 3.93%
Class R6 3.85% 3.86%


Fact Sheet
Quarterly Holdings
Fund Reports
Fund Reports

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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.