Mutual Funds
Behavioral Small Cap Value Equity Fund
Fund Managers
Robert Bridges, CFA®
Robert Weller, CFA®
Overview
C
Shares
SPSDX
Inception
Date
02.01.2010
Investment
Min.
$1,000
Subsequent
Investment Min.1
N/A
Max. Up Front
Sales Charge
N/A
Max. Deferred
Sales Charge
1%
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 | -8.43% | -4.17% | 9.59% | 2.42% | 7.94% | 6.00% | 8.80% |
| A Shares without Sales Charge | -2.85% | 1.70% | 16.25% | 4.46% | 9.22% | 6.64% | 9.04% |
| Institutional Shares | -2.77% | 1.83% | 16.53% | 4.73% | 9.50% | 6.90% | 9.18% |
| 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. | 1.64% |
| 2 | Encore Wire Corp. | 0.99% |
| 3 | Amkor Technology, Inc. | 0.98% |
| 4 | Warrior Met Coal, Inc. | 0.90% |
| 5 | Mr Cooper Group Inc | 0.86% |
| 6 | Radian Group, Inc. | 0.85% |
| 7 | Jackson Financial Inc | 0.84% |
| 8 | Taylor Morrison Home Corp. | 0.84% |
| 9 | Sterling Construction Co., Inc. | 0.83% |
| 10 | Oasis Petroleum, Inc. | 0.80% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 03.31.2024
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 03.31.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2024. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.59 |
| Beta | 0.97 |
| R-Squared | 96.05 |
| Standard Deviation | 20.42 |
| Sharpe Ratio | 0.29 |
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 | 12.15 |
| Weighted Average P/B | 1.44 |
| Weighted Average Market Cap | $4.41B |
| Annual Turnover | 82% |
Behavioral Small Cap Value Equity Fund
Materials
Equity Funds
Insights
07.02.2024
Sterling Capital Management LLC joins Guardian Capital Group Limited
Sterling Capital Management LLC announced today the completion of its acquisition by Guardian Capital LLC, a wholly-owned subsidiary of global asset manager Guardian Capital Group Limited.
06.27.2024 • Jeffrey Ormsby, CFA®
Fixed Income and Federal Reserve Rate Cuts: How Should We Expect Fixed Income to Perform?
As one would expect, in most historical periods where interest rates were declining, fixed income total return has been good, with investors capturing the coupon income as well as benefiting from the increase in prices as rates fall. Looking at the history of the Bloomberg Aggregate Bond Index since 1988, in the previous five Federal Reserve (Fed) rate-cutting cycles, the index posted annualized returns averaging north of 8%.
06.13.2024 • Andrew Richman, CTFA
When It Comes to Fed Policy, Follow the Data, Not the Dots
Andy Richman's update on the June Federal Open Market Committee meeting.
06.05.2024 • Charles Wittmann, CFA®
The Lead - "An Indicator of Business Confidence"
- Several notable companies have elected to inaugurate a quarterly dividend this year, while 47 companies in the U.S. stopped paying dividends during the COVID-19 crisis and have yet to reinstitute one. Why? - We would suggest it comes down to the ability to pay an ever-increasing dividend alongside their confidence in their business’s future. - In the current period of fewer dividend initiations, slower dividend growth in the market, and household names cutting their dividends, we believe there are several lessons to learn.
05.31.2024
Today Sterling Capital announces the resignation of Shawn M. Gallagher, CFA®, Co-Portfolio Manager of the firm’s Mid Cap Relative Value and Real Estate strategies, effective immediately. Andrew T. DiZio, CFA®, who served as Co-Portfolio Manager on both strategies, will now serve as sole Portfolio Manager for both strategies, effective immediately.
05.07.2024 • Charles Wittmann, CFA®
The Lead - "Dividends for Offense and Defense"
- What could be a catalyst for dividend yielding equities in 2024? - We discuss three considerations: inexpensive valuations relative to history; valuations for dividend yield versus growth; and how both have a history of performing well after positive economic surprises. - Why do dividend payers perform well as the economy surprises to the upside? We provide several possible reasons.
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