Mutual Funds
Behavioral Small Cap Value Equity Fund
Fund Managers
Robert Bridges, CFA®
Robert Weller, CFA®
Overview
A
Shares
SPSAX
Inception
Date
02.01.2010
Investment
Min.
$1,000
Subsequent
Investment Min.1
N/A
Max. Up Front
Sales Charge
5.75%
Max. Deferred
Sales Charge
N/A
1If subsequent investments are made as part of an AIP, the minimum is $25.
Philosophy & Process
The investment team applies "behavioral finance" principles in constructing the Fund's portfolio. Behavioral finance theorizes that investment decisions are often influenced by emotion, and that investors can be both predictable and irrational at times in their decision making. Emotional investment decisions can lead to stock price anomalies that create buying opportunities in the marketplace. The Team seeks to capitalize on these behaviorally driven anomalies by employing a disciplined investment process that ranks companies in the Small Cap Value Diversified Fund's investment universe. Factors in the process include valuation, price momentum and earnings revisions. The Team also takes into account factors such as market capitalization and sector exposure in building a diversified portfolio.
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.
| Term | Class A Shares | Class C Shares | Class I Shares | Class R6 Shares |
|---|---|---|---|---|
| Ticker | SPSAX | SPSDX | SPSCX | STRBX |
| Inception Date | 02.01.2010 | 02.01.2010 | 01.02.1997 | 02.01.2018 |
| Investment Min. | $1,000 | $1,000 | $1,000,000 | N/A |
| Subsequent Investment Min.2 | N/A | N/A | N/A | N/A |
| Max. Up Front Sales Charge | 5.75% | N/A | N/A | N/A |
| Max. Deferred Sales Charge | N/A | 1% | N/A | N/A |
2If subsequent investments are made as part of an AIP, the minimum is $25.
Co-Portfolio Manager
Co-Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 5.75% Sales Charge | -6.99% | -3.17% | 6.99% | 15.10% | 2.52% | 5.73% | 8.39% |
| A Shares without Sales Charge | -1.35% | 2.76% | 13.50% | 17.38% | 3.74% | 6.36% | 8.63% |
| Institutional Shares | -1.27% | 2.98% | 13.86% | 17.69% | 4.01% | 6.62% | 8.77% |
| Lipper Small-Cap Value Median | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
The total expense ratios for Class A, C and I Shares are 1.09%, 1.84% and 0.84%, respectively. The gross expense ratio for Class R6 Shares is 0.84%. The net expense ratio for Class R6 Shares is 0.79%.
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 Behavioral Small Cap Value Equity Fund is based upon the historical performance of the Sterling Small Cap Value Shares Class Fund and 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 02.01.2010. The inception date for Class C Shares is 02.01.2010. The inception date for Class Inst'l Shares is 01.02.1997. The inception date for Class R6 Shares is 02.01.2018. The performance inception date for the Fund is January 2, 1997. Performance for Class A and Class C Shares for periods prior to inception on February 1, 2010 is based on the performance of the Institutional Shares of the Fund. The performance information for the Institutional Shares prior to December 18, 2006 is based on the performance of the Institutional Shares of the Funds predecessor, Sterling Capital Small Cap Value Fund, a series of The Advisors Inner Circle Fund (the Predecessor Fund), which transferred all of its assets and liabilities to the Fund pursuant to a reorganization. Information prior to March 16, 2001 relates to the UAM Fund Inc. Sterling Partners Small Cap Value Portfolio, the assets of which were acquired by the Predecessor Fund. The performance shown reflects reinvestment of all dividend and capital gains distributions. Effective February 1, 2010, Sterling Shares Class of the Fund were renamed Institutional Shares.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | BOISE CASCADE CO. | 1.31% |
| 2 | PBF ENERGY, INC. | 0.92% |
| 3 | WARRIOR MET COAL, INC. | 0.90% |
| 4 | GROUP 1 AUTOMOTIVE, INC. | 0.87% |
| 5 | OASIS PETROLEUM, INC. | 0.87% |
| 6 | CIVITAS RESOURCES, INC. | 0.84% |
| 7 | ENCORE WIRE CORP. | 0.82% |
| 8 | AMKOR TECHNOLOGY, INC. | 0.82% |
| 9 | COMMERCIAL METALS, CO. | 0.80% |
| 10 | UFP INDUSTRIES, INC. | 0.78% |
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
| Term | Value |
|---|---|
| Alpha | 0.39 |
| Beta | 0.97 |
| R-Squared | 95.97 |
| Standard Deviation | 19.99 |
| Sharpe Ratio | 0.26 |
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.
| Term | Value |
|---|---|
| Weighted Median P/E | 8.57 |
| Weighted Average P/B | 1.24 |
| Weighted Average Market Cap | $3.74B |
| Annual Turnover | 155% |
Behavioral Small Cap Value Equity Fund
Materials
Equity Funds
Insights
12.01.2023
Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF
Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF
11.29.2023 • Robert Brown, CFA®
High Yield - The Incredible Shrinking Asset Class and the Imminent Fall of the Zombies
The high-yield bond market has been having a relatively good 2023 as technicals remain firm and the feared recession has so far failed to materialize. Through mid-November, the ICE BofA U.S. High Yield Index has generated 7.8% total return year to date and a 6.4% return in excess of duration matched Treasuries. We see a mixed picture for the asset class ahead as all in yields remain attractive, while challenges are increasing as a maturity wall looms.
11.28.2023 • Charles Wittmann, CFA®
The Lead - "Pursuing Sustainable Success"
- As investors, we want our clients to have sustained success, and that means investing in dividend-paying stocks that have a capacity to pay attractive and sustainably-growing dividends. - In the current market environment, we believe those companies are becoming increasingly scarce. - Declining dividend payments in the Energy sector have been a key contributor to the overall decline in S&P 500 dividend growth and we discuss the challenges. - We prefer companies that have rising cash flows that provide more sustainable dividend growth that may position our clients for sustained success.
11.02.2023 • Andrew Richman, CTFA
Markets breathed a sigh of relief following this week's FOMC meeting as the current fed funds rate remained unchanged. Senior Fixed Income Specialist Andy Richman, CTFA, shares his views.
10.31.2023 • Charles Wittmann, CFA®
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®
- 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.
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