Mutual Funds
Behavioral Small Cap Value Equity Fund
Fund Managers
Robert Bridges, CFA®
Robert Weller, CFA®
Overview
R6
Shares
STRBX
Inception
Date
02.01.2018
Investment
Min.
N/A
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 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 Behavioral Small Cap Value 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 Estate Investment 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 | 2.52% | 4.26% | 20.81% | 5.87% | 9.93% | 7.65% | 9.10% |
| A Shares without Sales Charge | 8.79% | 10.64% | 28.21% | 7.97% | 11.24% | 8.29% | 9.54% |
| Institutional Shares | 8.86% | 10.86% | 28.50% | 8.23% | 11.52% | 8.55% | 9.42% |
| Lipper Small-Cap Core Median | 8.48% | 10.73% | 24.93% | 4.62% | 9.99% | 8.62% | N/A |
The total expense ratios for Class A, C and I Shares are 1.10%, 1.85% and 0.85%, respectively. The gross expense ratio for Class R6 Shares is 0.85%. The net expense ratio for Class R6 Shares is 0.78%.
The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .07% of the Class R6 avg. daily net assets for the period 02.01.2024-01.31.2025. 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 Sterling Capital Behavioral Small Cap Value Equity 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 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 shown reflects the reinvestment of all dividend and capital gains distributions. Performance is annualized for periods greater than one year.
Performance for Class A Shares for periods prior to inception is based on the performance of the Institutional Shares of the Fund. The performance information for the Institutional Shares prior to 12.18.2006 is based on the performance of the Institutional Shares of the Fund’s 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 03.16.2001 relates to the UAM Fund Inc.’s Sterling Partners’ Small Cap Value Portfolio, the assets of which were acquired by the Predecessor Fund. Effective 02.01.2010, the Sterling Shares of the Fund were renamed Institutional Shares.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | Jackson Financial | 1.11% |
| 2 | Boise Cascade Co. | 1.06% |
| 3 | Mr. Cooper Group, Inc. | 0.97% |
| 4 | M/I Homes, Inc. | 0.95% |
| 5 | KB Home | 0.82% |
| 6 | Essential Properties Realty Trust, Inc. | 0.80% |
| 7 | UFP Industries, Inc. | 0.80% |
| 8 | Old National Bancorp | 0.76% |
| 9 | Matson, Inc. | 0.75% |
| 10 | SkyWest, Inc | 0.74% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 09.30.2024
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 09.30.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 09.30.2024. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.39 |
| Beta | 0.97 |
| R-Squared | 96.02 |
| Standard Deviation | 20.55 |
| Sharpe Ratio | 0.32 |
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 | 13.50 |
| Weighted Average P/B | 2.12 |
| Weighted Average Market Cap | $4.47B |
| Annual Turnover | 155% |
Behavioral Small Cap Value Equity Fund
Materials
Equity Funds
Insights
11.18.2024 • Andrew Richman, CTFA
Fed Begins to Ease... Rates Rise?
Andy Richman's update on the November Federal Open Market Committee meeting.
11.05.2024 • Charles Wittmann, CFA®
- We have shared the qualities we seek in the companies we invest in and how we research their perceived competitive advantage, but what advantage can an investor have? - As investment timeframes have become more short term, we have found the long end of the equity yield curve is less competitive and may “yield” more opportunities. - The concept of the equity yield curve is helpful to visualize how patience can create value.
10.01.2024 • Charles Wittmann, CFA®
- One of the most common mental shortcuts is regression to the mean, or the idea that outcomes far from average will revert to average over time. - Where did the idea come from, is it true in every case, and can it create a greater understanding and yield profitable insights? - Finally, if there are advantaged companies that challenge this assumption as the economy has evolved, what valuations will the market typically award them?
09.30.2024
Sterling Capital Equity Portfolio Management Updates
Sterling Capital announces the creation of the Insight Equity Group, combining the firm's Fundamental Equity and Relative Value teams, along with the April 2025 retirement of Patrick Rau, CFA®/.
09.18.2024 • Brandon Carl, CFA®
U.S. Equity Market Performance Following the First Fed Funds Rate Cut
After two and a half years of battling elevated inflation with aggressive monetary policy tightening measures, the Federal Reserve (Fed) finally reduced the federal funds target rate range (fed funds rate) by 50 basis points during its September 2024 meeting. With recent inflation indicators seemingly within the Fed’s comfort zone, coupled with an increasing emphasis on supporting the labor market, we believe it’s highly likely that additional rate cuts are forthcoming.
09.12.2024 • Will Smith, CFA®
Down but Not Out: Why Mid-Cap Value Appears Increasingly Attractive
For almost a decade, large-cap growth has been a dominant factor driving market returns. However, we see mounting evidence mid-cap value stocks are due for a comeback. We have long argued mid caps are a potential “sweet spot” for investors. We believe they boast better liquidity, stronger balance sheets, and more durable competitive advantages than small-cap peers and are often more nimble, focused, and less well covered by the sell side than large caps.
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