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 | -1.36% | -1.36% | 19.10% | 6.03% | 8.64% | 6.56% | 9.00% |
| A Shares without Sales Charge | 4.68% | 4.68% | 26.37% | 8.14% | 9.93% | 7.20% | 9.24% |
| Institutional Shares | 4.73% | 4.73% | 26.65% | 8.40% | 10.20% | 7.46% | 9.38% |
| 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. | 1.45% |
| 2 | Amkor Technology, Inc. | 1.05% |
| 3 | Warrior Met Coal, Inc. | 0.94% |
| 4 | Meritage Homes | 0.85% |
| 5 | UFP Industries, Inc. | 0.84% |
| 6 | M/I Homes, Inc. | 0.84% |
| 7 | Encore Wire Corp. | 0.84% |
| 8 | Alpha Metallurgical Resources Inc | 0.83% |
| 9 | Oasis Petroleum, Inc. | 0.78% |
| 10 | Otter Tail Corp | 0.76% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 12.31.2023
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 12.31.2023
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2023. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.39 |
| Beta | 0.97 |
| R-Squared | 96.18 |
| Standard Deviation | 20.46 |
| Sharpe Ratio | 0.28 |
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 | 9.91 |
| Weighted Average P/B | 1.41 |
| Weighted Average Market Cap | $3.99B |
| Annual Turnover | 89% |
Behavioral Small Cap Value Equity Fund
Materials
Equity Funds
Insights
04.04.2024 • Charles Wittmann, CFA®
The Lead - "Seeking Advantaged Economies of Scale"
- One important advantage we seek in large capitalization stocks is having dominant market shares that provide economies of scale. - Economies of scale may make a company more profitable and earn higher returns on its capital than its competitors. - We believe it is possible to identify companies that gain scale, market share, and returns at the expense of competitors. - As we have stated for close to two decades as part of our investment philosophy, we believe size usually translates into cost advantages in production, marketing, and research and development expenditures that can be re-invested back into the business, making such advantages sustainable.
03.05.2024 • Charles Wittmann, CFA®
The Lead - "Advantaged Market Share"
- What makes an advantaged company? - In our view, one notable characteristic of an advantaged company is growing its market share. - Simply put, we believe companies with greater market share are more profitable. - We seek to field a portfolio of advantaged companies with strong and potentially growing market shares to position our clients to win.
03.01.2024
4Q23 Equity Income SMA Review and Outlook
The 4Q23 Equity Income SMA Review and Outlook reviews performance, holdings, and dividend growth within the strategy.
03.01.2024 • Shane Burke
The Federal Reserve During an Election Year - March 2024
2024 is expected to be one of the biggest election years in history, with more than 60 countries representing approximately half of the world’s population heading to the polls. The year will include multi-day legislative elections in India (the largest population in the world), Indonesia’s presidential election (the world’s largest single-day vote), and the globally-anticipated U.S. presidential election.
02.06.2024 • Charles Wittmann, CFA®
- By utilizing our investment process and our investment team, we believe we can build portfolios different from the benchmark and provide an opportunity to generate returns above the benchmark over time. - Ironically, many passive indexes make active bets themselves. In 2023, the S&P 500 Dividend Aristocrats suffered its worst performance relative to the S&P 500® Index since 1999. - We’ve believed for over 20 years that portfolio managers with material amounts of their net worth invested alongside clients incentivizes portfolio diversification and active adjustments, rather than a static index where there is no vested interest. Our mission is to generate above-average returns with below-average risk over time.
02.02.2024
Sterling Capital Management LLC to be acquired by Guardian Capital Group Limited
We are delighted to announce that Guardian Capital Group Limited has reached an agreement under which Guardian’s wholly-owned subsidiary Guardian Capital LLC will acquire Sterling Capital from Truist. Post-closing, Sterling Capital will become an independently-operated subsidiary of Guardian.
Contact
Learn more about Sterling Capital solutions and services.
