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Ultra Short Bond Fund

Ultra Short Bond Fund    Fact Sheet

Overall Morningstar Rating™

Morningstar StarMorningstar StarMorningstar StarMorningstar Star  

Morningstar Category: Ultrashort Bond

*Based on risk-adjusted returns among 215 funds as of 08.31.2022.

Morningstar Style Box

A Shares (BUSRX)
Inception: 11.30.2012
Inst'l Shares (BUSIX)
Inception: 11.30.2012

Philosophy and Process

To pursue its investment objective, the Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in fixed income securities (bonds). The Fund will maintain an average duration of 18 months or less and the average maturity is expected to be between zero and 24 months.

In managing the portfolio, the portfolio manager uses a "top down" investment management approach focusing on allocation among sectors, credit risk, and individual securities selection. The portfolio manager focuses on macro trends in the economy to establish a duration target that reflects the outlook for the future direction of interest rates. For yield curve management, in addition to the trend in interest rates, other factors such as future inflation expectations, supply factors, and future interest rate expectations are considered. Sector weightings are driven by a combination of the portfolio manager's macro view on interest rates and volatility as well as relative spread analysis. Utilizing fundamental analysis the portfolio manager then selects individual securities consistent with the target by looking for the best relative values within particular sectors. The analysis includes an attempt to understand the structure and embedded features of potential securities. Features that are analyzed include puts, calls, sinking fund requirements, prepayment and extension risk, and individual company financial data for potential corporate holdings. Scenario analysis is the primary tool employed for these assessments.

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; mortgage-backed and asset-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. The fund invests in securities issued or guaranteed by the U.S. government or its agencies. These guarantees do not apply to the fund. Investments in municipal obligations may be subject to more risk depending on economic, political and other conditions within the state and municipality. The fund may trade securities actively, which could increase its transaction costs thereby lowering its performance.

Fund Facts

Type Class A Shares Class Inst'l Shares
Inception Date 11.30.201211.30.2012
Investment Min. $1,000.00$1,000,000.00
Subsequent Investment Min.* $0$0
Max. Up Front Sales Charge N/AN/A
Max. Deferred Sales Charge 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®

Senior Managing Director

Byron G. Mims, CFA®
Byron G. Mims, CFA®

Executive Director

Jeffrey D. Ormsby, CFA®
Jeffrey D. Ormsby, CFA®

Executive Director


Fund Performance as of 06.30.2022

Share QTR YTD 1 Year 3 Years 5 Years Since
A Shares with 0.50% Sales Charge -0.43% -1.22% -1.37% 0.58% 1.10% 0.81%
A Shares without Sales Charge -0.43% -1.22% -1.37% 0.58% 1.10% 0.81%
Institutional Shares -0.37% -1.10% -1.13% 0.86% 1.37% 1.07%
Lipper Ultra-Short Obligations Median -0.45% -1.14% -1.23% 0.56% 1.16% N/A

The gross expense ratios for Class A and I Shares are 0.81% and 0.53%, respectively. The net expense ratios for Class A and I Shares are 0.56% and 0.28%, respectively.

The Advisor has contractually agreed to limit certain fees paid by the Fund from 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 Ultra Short 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 11/30/2012. The inception date for Class Inst'l Shares is 11/30/2012. The performance shown reflects the reinvestment of all dividend and capital gains distributions.


Quality Breakdown as of 06.30.2022

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 06.30.2022

Name Value
0-1 Yr. 80.7
1-2 Yr. 16.8
2-3 Yr. 2.5

Summary Statistics as of 06.30.2022

Name Value
Number of Holdings 152
Average Life 0.83 Years
Effective Duration 0.55 Years
Annual Turnover 61%

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

Portfolio Composition as of 06.30.2022

Composition Fund Index
Commercial Paper 2.2% 0.0%
Corporate 58.9% 0.0%
    Financial Institutions 20.4% 0.0%
    Industrial 29.7% 0.0%
    Utility 8.9% 0.0%
Government Related 1.4% 0.0%
    Local Authority 1.4% 0.0%
Securitized 36.5% 0.0%
    ABS 19.7% 0.0%
    CMBS 16.1% 0.0%
    CMO 0.6% 0.0%
Treasury 0.0% 100.0%
    Treasury 0.0% 100.0%
Cash 1.0% 0.0%
    Cash 1.0% 0.0%

Top Ten Holdings as of 06.30.2022

Name Value
Wfrbs Commercial Mortgage Trust 2012-C10 2.875% 15-Dec-2045 1.49%
Goldman Sachs Group, Inc. Frn 23-Feb-2023 1.44%
Avis Budget Rental Car Funding (Aesop) Series 2018-1 3.7% 20-Sep-2024 1.44%
Chesapeake Funding Ii Llc 0.87% 15-Aug-2032 1.39%
Reliance Standard Life Global Funding Ii 2.625% 22-Jul-2022 1.38%
Santander Consumer Auto Receivables Trust 2021-A 0.33% 15-Oct-2025 1.28%
Dte Energy Company 2.25% 01-Nov-2022 1.20%
Ford Motor Credit Company Llc 2.979% 03-Aug-2022 1.18%
Williams Companies, Inc. 3.7% 15-Jan-2023 1.11%
Oneok Partners, L.P. 3.375% 01-Oct-2022 1.10%

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

Growth of $10,000 as of 06.30.2022

The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 06/30/2022. It includes the reinvestment of dividends and capital gains.

Glossary of Terms


Monthly Dividend Distribution as of 08.31.2022

Month Class A Shares Class Inst'l Shares
August 2022 $0.0138 $0.0158
July 2022 $0.0122 $0.0142
June 2022 $0.0106 $0.0126
May 2022 $0.0098 $0.0118
April 2022 $0.0083 $0.0103
March 2022 $0.0083 $0.0104
February 2022 $0.0072 $0.0091
January 2022 $0.0072 $0.0093
December 2021 $0.0074 $0.0094
November 2021 $0.0071 $0.0091
October 2021 $0.0077 $0.0098
September 2021 $0.0076 $0.0094

30-Day SEC Yield as of 08.31.2022

Without Waivers With Waivers
Class A 2.19% 2.44%
Class I 2.45% 2.69%


Fact Sheet
Quarterly Holdings
Fund Reports
Fund Reports

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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.