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Behavioral Large Cap Value Equity Fund

Mutual Funds

Behavioral Large Cap Value Equity Fund


Fund Managers

Photo of Robert  Bridges

Robert Bridges, CFA®

Photo of Robert  Weller

Robert Weller, CFA®

Overview

I
Shares

BBISX

Inception
Date

10.09.1992

Investment
Min.

$1,000,000

Subsequent
Investment Min.1

N/A

Max. Up Front
Sales Charge

N/A

Max. Deferred
Sales Charge

N/A

1If subsequent investments are made as part of an AIP, the minimum is $25.

Philosophy & Process

The portfolio management team applies "behavioral finance" principles in the construction of the fund's portfolio. Behavioral finance theorizes that investment decisions are often influenced by emotion, and that investors can be predictable (and, at times, irrational) in their decision making. These emotionally charged investment decisions can lead to stock price anomalies that create buying opportunities in the marketplace. The portfolio management team seeks to capitalize on these behaviorally driven market anomalies by employing a disciplined investment process that ranks companies in the fund's investment universe based on a number of factors, such as valuation, price momentum and earnings revisions, and also takes into account such factors as country and sector exposure to construct a diversified portfolio. The team considers selling a security when the security's ranking becomes less attractive and/or in light of liquidity, sector exposure or diversification considerations.

Investment Considerations

The overall results of the Fund will be dependent on the process and ability of the Adviser to apply “behavioral finance” principles to recognize a company's value, earnings revisions and price momentum. The Fund may invest in undervalued securities which may not appreciate in value as anticipated or remain undervalued for longer than anticipated. The overall results of the fund will be dependent on the process and ability of the Adviser to recognize a company’s value. The Fund may invest in REITs (Real EstateInvestment Trusts), the value of which will be affected by conditions of the real estate industry and exchange-traded funds (ETFs), thus shareholders may bear additional costs and the ETF may not exactly replicate the performance it seeks to track.

Fund Facts

Term Class A Shares Class C Shares Class I Shares Class R6 Shares
Ticker BBTGXBCVCXBBISXSTRAX
Inception Date 10.09.199202.01.200110.09.199202.01.2018
Investment Min. $1,000$1,000$1,000,000N/A
Subsequent Investment Min.2 N/AN/AN/AN/A
Max. Up Front Sales Charge 5.75%N/AN/AN/A
Max. Deferred Sales Charge N/A1%N/AN/A

2If subsequent investments are made as part of an AIP, the minimum is $25.

Behavioral Large Cap Value Equity Fund

Management

View professional designations disclosures

Photo of Robert  Bridges

Robert Bridges, CFA®

Co-Portfolio Manager

Photo of Robert  Weller

Robert Weller, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 09.30.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 5.75% Sales Charge -6.94% -3.25% 9.74% 10.83% 3.85% 7.54% 7.17%
A Shares without Sales Charge -1.28% 2.65% 16.42% 13.04% 5.08% 8.18% 7.37%
Institutional Shares -1.20% 2.86% 16.74% 13.32% 5.34% 8.45% 7.64%
Lipper Multi-Cap Value Median -2.43% 1.91% 14.92% 12.40% 6.20% 8.19% N/A

The total expense ratios for Class A, C, and I Shares are 0.91%, 1.66% and 0.66%, respectively. The gross expense ratio for Class R6 Shares is 0.66%. The net expense ratio for Class R6 Shares is 0.61%.

The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .05% 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 Large Cap Value Diversified 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 10.09.1992. The inception date for Class C Shares is 02.01.2001. The inception date for Class Inst'l Shares is 10.09.1992. The inception date for Class R6 Shares is 02.01.2018. 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. The performance shown reflects the reinvestment of all dividend and capital gains distributions.

Characteristics

Top Ten Holdings as of 09.30.2023

# Company Name Value
1 JPMORGAN CHASE & CO. 3.60%
2 Cisco Systems, Inc. 2.40%
3 MERCK & CO., INC. 2.37%
4 Comcast Corp. 2.33%
5 AT&T INC 1.76%
6 FEDEX CORP. 1.74%
7 GILEAD SCIENCES, INC. 1.73%
8 MARATHON PETROLEUM CORP. 1.71%
9 PHILLIPS 66 1.67%
10 ORACLE CORP. 1.67%

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

Sector Allocation as of 09.30.2023

Allocations are based on the current weight to funds in the cited Sector. The composition of the fund's holdings is subject to change.

Growth of $10,000 as of 09.30.2023

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 09.30.2023. It includes the reinvestment of dividends and capital gains.

Statistics

Risk/Return Statistics vs. Russell 1000® Value Index 3 as of 09.30.2023

Term Value
Alpha -0.05
Beta 0.98
R-Squared 95.00
Standard Deviation 15.17
Sharpe Ratio 0.47

3The Funds composition is subject to change. Annual Turnover Ratio is 12 month rolling calculation. Alpha, Beta, R-Squared, Standard Deviation, and Sharpe Ratio are based on a 10-year calculation.

View a Glossary of Terms.

Summary Statistics as of 09.30.2023

Term Value
Weighted Median P/E 16.15
Weighted Average P/B 2.26
Weighted Average Market Cap $106.00B
Annual Turnover 120%

Equity Funds

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The Lead - "Balance Sheet Season"

- Rising interest costs are causing companies that fund their businesses through borrowing to reassess their priorities. - By investing in quality companies that we feel generate higher-than-average returns on capital, we believe they have more control over their business and do not depend on excessive debt to fund it. - Dividend payers themselves offer evidence of financial strength and financial health by demonstrating the ability to reward their shareholders with cash proceeds from their business each quarter. - Historically, this is why dividend payers tend to outperform later in an interest rate tightening cycle, as seen in the chart above.

10.03.2023 • Charles Wittmann, CFA®

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- In a period of rising interest costs, wages, and energy costs, double-digit dividend growers have outperformed in 2023. - The largest dividend growers are also outpacing high dividend yielders in 2023. - Higher dividend growers are being rewarded in part for their ability to return more cash to their shareholders than slower growth peers. - We believe owning quality companies that earn returns on capital well above their cost of capital have the potential do well in this new environment.

Contact

Learn more about Sterling Capital solutions and services.

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© 2023 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.

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