Overview
A
Shares
BAEIX
Inception
Date
06.30.2004
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 fund’s management team utilizes fundamental analysis to construct a portfolio of high-quality, dividend growth equities. They look for the best ideas that include companies with strong balance sheets that are reasonably valued and have shown market/sales gain over time with a credible plan to continue such growth in the future. The fund represents a concentrated portfolio utilizing "best ideas" with the typical number of core holdings between 30 and 35. Dividends matter to the management team and they only purchase companies that have raised their dividends for the last three consecutive years or for six years of the last ten. They target stocks with dividend yields greater than the yield of the S&P 500® Index.
Investment Considerations
The fund invests primarily in dividend-paying securities but also in convertible securities in search of yield. These securities may be undervalued not performing as anticipated and its value could be negatively affected by a rise in interest rates. The fund may engage in writing covered call options. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the stock. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.
| Term | Class A Shares | Class C Shares | Class I Shares | Class R6 Shares |
|---|---|---|---|---|
| Ticker | BAEIX | BCEGX | BEGIX | STREX |
| Inception Date | 06.30.2004 | 06.30.2004 | 06.30.2004 | 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 | -7.56% | -5.79% | 6.08% | 10.24% | 7.74% | 8.88% | 9.50% |
| A Shares without Sales Charge | -1.91% | -0.04% | 12.55% | 12.43% | 9.02% | 9.53% | 9.84% |
| Institutional Shares | -1.84% | 0.15% | 12.83% | 12.71% | 9.29% | 9.80% | 10.11% |
| Lipper Equity Income Median | -3.20% | 1.29% | 13.29% | 9.81% | 6.64% | 8.38% | N/A |
The total expense ratios for Class A, C and I Shares are 1.04%, 1.79% and 0.79%, respectively. The gross expense ratio for Class R6 Shares is 0.79%. The net expense ratio for Class R6 Shares is 0.69%.
The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .10% 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 Equity Income 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 06.30.2004. The inception date for Class C Shares is 06.30.2004. The inception date for Class Inst'l Shares is 06.30.2004. The inception date for Class R6 Shares is 02.01.2018. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | FERGUSON PLC | 4.58% |
| 2 | MICROSOFT CORP. | 4.54% |
| 3 | Anthem, Inc. | 4.27% |
| 4 | AUTOMATIC DATA PROCESSING INC | 4.11% |
| 5 | MARSH & MCLENNAN COS., INC. | 4.09% |
| 6 | AVERY DENNISON CORP. | 4.03% |
| 7 | Accenture Plc. | 4.02% |
| 8 | AMERIPRISE FINANCIAL, INC. | 3.89% |
| 9 | ABBVIE, INC. | 3.81% |
| 10 | HOME DEPOT, INC. | 3.81% |
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.
| Term | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Lipper Ranking / Number of Funds in Category | 119 / 466 | 10 / 442 | 4 / 420 | 45 / 279 |
| Lipper Quartile (Percentile) | 2nd (26%) | 1st (3%) | 1st (1%) | 1st (17%) |
Statistics
| Term | Value |
|---|---|
| Alpha | 1.56 |
| Beta | 0.93 |
| R-Squared | 93.43 |
| Standard Deviation | 14.55 |
| Sharpe Ratio | 0.58 |
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 | 23.79 |
| Weighted Average P/B | 3.91 |
| Weighted Average Market Cap | $215.06B |
| Annual Turnover | 44% |
Equity Income 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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