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Equity Income Fund

Mutual Funds

Equity Income Fund

Overall Morningstar Rating™
Morningstar Category: Large Value

5 Star Overall Rating

Based on risk-adjusted BEGIX returns among 1155 funds as of 12.31.2022.

Overview

I
Shares

BEGIX

Inception
Date

06.30.2004

Investment
Min.

$1,000,000

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 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.

Fund Facts

Term Class A Shares Class C Shares Class I Shares Class R6 Shares
Ticker BAEIXBCEGXBEGIXSTREX
Inception Date 06.30.200406.30.200406.30.200402.01.2018
Investment Min. $1,000,000$1,000,000$1,000,000$1,000,000
Subsequent Investment Min.2 N/AN/AN/AN/A
Max. Up Front Sales Charge 5.75%N/AN/AN/A
Max. Deferred Sales Charge N/A1%N/AN/A

2If subsequent investments are made as part of an AIP, the minimum is $25.

Equity Income Fund

Management

View professional designations disclosures

Photo of Charles  Wittmann

Charles Wittmann, CFA®

Co-Portfolio Manager

Photo of Jeremy  Lopez

Jeremy Lopez, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 12.31.2022

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 5.75% Sales Charge 6.12% -8.93% -8.93% 8.01% 9.31% 10.46% 9.91%
A Shares without Sales Charge 12.60% -3.38% -3.38% 10.16% 10.62% 11.12% 10.26%
Institutional Shares 12.67% -3.16% -3.16% 10.43% 10.90% 11.40% 10.53%
Lipper Equity Income Median 12.10% -7.74% -7.74% 7.08% 7.35% 10.03% 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

Top Ten Holdings as of 12.31.2022

# Company Name Value
1 Anthem, Inc. 4.28%
2 Starbucks Corp 4.26%
3 Abbot Labs 4.00%
4 Home Depot 3.95%
5 Merck 3.94%
6 Analog Devices 3.83%
7 Abbvie 3.81%
8 ACE 3.80%
9 Goldman Sachs 3.80%
10 Booz Allen Hamilton 3.54%

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Sector Allocation as of 12.31.2022

Name Value
Health Care 24.67%
Financials 21.99%
Info Technology 19.94%
Consumer Dis 11.26%
Industrials 11.09%
Materials 5.28%
Consumer Staples 3.04%
Real Estate 1.50%
Cash 1.22%

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 12.31.2022

Date A-Shares Russell 1000® Value Index
12.31.2022 $28,709 (Down $1,149) $26,632 (Down $1,119)
10.31.2022 $29,858 (Up $1,786) $27,751 (Up $1,632)
09.30.2022 $28,072 (Up $2,574) $26,119 (Up $2,429)
09.30.2022 $25,498 (Down $2,082) $23,690 (Down $2,277)
07.31.2022 $27,580 (Down $880) $25,967 (Down $797)
06.30.2022 $28,460 (Up $1,497) $26,764 (Up $1,664)
06.30.2022 $26,963 (Down $1,554) $25,100 (Down $2,403)
04.30.2022 $28,517 (Down $825) $27,503 (Down $1,088)
03.31.2022 $29,342 (Up $1,305) $28,591 (Up $1,613)
03.31.2022 $28,037 (Down $512) $26,978 (Down $828)
01.31.2022 $28,549 (Down $1,165) $27,806 (Down $997)
12.31.2021 $29,714 (Up $717) $28,803 (Up $671)
12.31.2021 $28,997 (Up $1,149) $28,132 (Up $1,038)
10.31.2021 $27,848 (Down $968) $27,094 (Down $990)
09.30.2021 $28,816 (Up $1,733) $28,084 (Up $1,358)
09.30.2021 $27,083 (Down $966) $26,726 (Down $964)
07.31.2021 $28,049 (Up $610) $27,690 (Up $538)
06.30.2021 $27,439 (Up $437) $27,152 (Up $215)
06.30.2021 $27,002 (Down $176) $26,937 (Down $312)
04.30.2021 $27,178 (Up $750) $27,249 (Up $622)
03.31.2021 $26,428 (Up $1,247) $26,627 (Up $1,024)
03.31.2021 $25,181 (Up $1,509) $25,603 (Up $1,423)
01.31.2021 $23,672 (Up $404) $24,180 (Up $1,167)
12.31.2020 $23,268 (Up $505) $23,013 (Up $211)
12.31.2020 $22,763 (Up $362) $22,802 (Up $639)
10.31.2020 $22,401 (Up $2,207) $22,163 (Up $2,367)
09.30.2020 $20,194 (Up $484) $19,796 (Up $261)
09.30.2020 $19,710 (Down $1,030) $19,535 (Down $759)
07.31.2020 $20,740 (Up $914) $20,294 (Up $806)
06.30.2020 $19,826 (Up $753) $19,488 (Up $741)
06.30.2020 $19,073 (Up $186) $18,747 (Down $125)
04.30.2020 $18,887 (Up $909) $18,872 (Up $625)
03.31.2020 $17,978 (Up $1,939) $18,247 (Up $1,844)
03.31.2020 $16,039 (Down $2,858) $16,403 (Down $3,381)
01.31.2020 $18,897 (Down $2,578) $19,784 (Down $2,603)
12.31.2019 $21,475 (Up $743) $22,387 (Up $481)
12.31.2019 $20,732 (Down $233) $21,906 (Up $118)
10.31.2019 $20,965 (Up $551) $21,788 (Up $654)
09.30.2019 $20,414 (Up $199) $21,134 (Up $291)
09.30.2019 $20,215 (Up $239) $20,843 (Up $718)
07.31.2019 $19,976 (Down $208) $20,125 (Down $610)
06.30.2019 $20,184 (Up $492) $20,735 (Up $171)
06.30.2019 $19,692 (Up $1,156) $20,564 (Up $1,377)
04.30.2019 $18,536 (Down $1,159) $19,187 (Down $1,318)
03.31.2019 $19,695 (Up $782) $20,505 (Up $702)
03.31.2019 $18,913 (Up $260) $19,803 (Up $125)
01.31.2019 $18,653 (Up $552) $19,678 (Up $609)
12.31.2018 $18,101 (Up $926) $19,069 (Up $1,377)
12.31.2018 $17,175 (Down $1,625) $17,692 (Down $1,879)
10.31.2018 $18,800 (Up $165) $19,571 (Down $470)
09.30.2018 $18,635 (Up $960) $20,041 (Up $1,038)
09.30.2018 $17,675 (Down $882) $19,003 (Down $999)
07.31.2018 $18,557 (Up $586) $20,002 (Up $292)
06.30.2018 $17,971 (Up $585) $19,710 (Up $750)
06.30.2018 $17,386 (Up $83) $18,960 (Up $47)
04.30.2018 $17,303 (Up $523) $18,913 (Up $112)
03.31.2018 $16,780 (Down $0) $18,801 (Up $61)
03.31.2018 $16,780 (Down $538) $18,740 (Down $335)
01.31.2018 $17,318 (Down $991) $19,075 (Down $957)
12.31.2017 $18,309 (Up $974) $20,032 (Up $746)
12.31.2017 $17,335 (Up $240) $19,286 (Up $277)
10.31.2017 $17,095 (Up $814) $19,009 (Up $565)
09.30.2017 $16,281 (Up $116) $18,444 (Up $133)
09.30.2017 $16,165 (Up $593) $18,311 (Up $527)
07.31.2017 $15,572 (Up $54) $17,784 (Down $210)
06.30.2017 $15,518 (Up $124) $17,994 (Up $236)
06.30.2017 $15,394 (Up $317) $17,758 (Up $286)
04.30.2017 $15,077 (Up $139) $17,472 (Down $50)
03.31.2017 $14,938 (Up $15) $17,522 (Up $33)
03.31.2017 $14,923 (Up $11) $17,489 (Down $213)
01.31.2017 $14,912 (Up $543) $17,702 (Up $735)
12.31.2016 $14,369 (Up $8) $16,967 (Down $121)
12.31.2016 $14,361 (Up $198) $17,088 (Up $534)
10.31.2016 $14,163 (Up $251) $16,554 (Up $648)
09.30.2016 $13,912 (Up $426) $15,906 (Up $247)
09.30.2016 $13,486 (Down $358) $15,659 (Down $280)
07.31.2016 $13,844 (Up $129) $15,939 (Up $122)
06.30.2016 $13,715 (Up $546) $15,817 (Up $446)
06.30.2016 $13,169 (Up $11) $15,371 (Up $132)
04.30.2016 $13,158 (Up $211) $15,239 (Up $233)
03.31.2016 $12,947 (Up $15) $15,006 (Up $309)
03.31.2016 $12,932 (Up $780) $14,697 (Up $988)
01.31.2016 $12,152 (Down $300) $13,709 (Down $751)
12.31.2015 $12,452 (Up $413) $14,460 (Up $747)
12.31.2015 $12,039 (Down $672) $13,713 (Down $1,065)
10.31.2015 $12,711 (Down $245) $14,778 (Up $57)
09.30.2015 $12,956 (Up $805) $14,721 (Up $1,032)
09.30.2015 $12,151 (Down $453) $13,689 (Down $426)
07.31.2015 $12,604 (Down $808) $14,115 (Down $894)
06.30.2015 $13,412 (Up $188) $15,009 (Up $66)
06.30.2015 $13,224 (Down $347) $14,943 (Down $305)
04.30.2015 $13,571 (Up $180) $15,248 (Up $182)
03.31.2015 $13,391 (Up $382) $15,066 (Up $139)
03.31.2015 $13,009 (Down $170) $14,927 (Down $206)
01.31.2015 $13,179 (Up $318) $15,133 (Up $98)
12.31.2014 $12,861 (Up $374) $15,035 (Up $601)
12.31.2014 $12,487 (Down $472) $14,434 (Down $510)
10.31.2014 $12,959 (Up $134) $14,944 (Up $300)
09.30.2014 $12,825 (Up $147) $14,644 (Up $322)
09.30.2014 $12,678 (Down $295) $14,322 (Down $302)
07.31.2014 $12,973 (Down $26) $14,624 (Up $274)
06.30.2014 $12,999 (Up $407) $14,350 (Up $245)
06.30.2014 $12,592 (Down $217) $14,105 (Up $120)
04.30.2014 $12,809 (Up $299) $13,985 (Up $202)
03.31.2014 $12,510 (Up $166) $13,783 (Up $130)
03.31.2014 $12,344 (Up $251) $13,653 (Up $318)
01.31.2014 $12,093 (Down $284) $13,335 (Up $82)
12.31.2013 $12,377 (Up $641) $13,253 (Up $471)
12.31.2013 $11,736 (Down $470) $12,782 (Down $143)
10.31.2013 $12,206 (Up $261) $12,925 (Up $350)
09.30.2013 $11,945 (Up $395) $12,575 (Up $528)
09.30.2013 $11,550 (Up $209) $12,047 (Up $294)
07.31.2013 $11,341 (Down $330) $11,753 (Down $463)
06.30.2013 $11,671 (Up $241) $12,216 (Up $626)
06.30.2013 $11,430 (Down $20) $11,590 (Down $103)
04.30.2013 $11,450 (Up $38) $11,693 (Up $292)
03.31.2013 $11,412 (Up $322) $11,401 (Up $170)
03.31.2013 $11,090 (Up $422) $11,231 (Up $428)
01.31.2013 $10,668 (Up $75) $10,803 (Up $153)
12.31.2012 $10,593 (Up $593) $10,650 (Up $650)
12.31.2012 $10,000 $10,000

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2022. It includes the reinvestment of dividends and capital gains.

Lipper Equity Income Category Based on Total Return as of 12.31.2022

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%)

Morningstar Large Value Category Based on Risk-Adjusted Returns as of 12.31.2022

Term Overall Rating 1 Year 3 Years 5 Years 10 Years
Institutional Shares Morningstar Rating™ 5 Star Rating N/A 5 Star Rating 5 Star Rating 4 Star Rating
Morningstar Ranking / Number of Funds in Category 1,155 326 / 1,229 59 / 1,155 18 / 1,099 116 / 819
Morningstar Quartile (Percentile) N/A 2nd (28%) 1st (6%) 1st (2%) 1st (17%)

Statistics

Risk/Return Statistics vs. Russell 1000® Value Index3 as of 12.31.2022

Term Value
Alpha 1.49
Beta 0.93
R-Squared 92.74
Standard Deviation 14.38
Sharpe Ratio 0.72

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.

Summary Statistics as of 12.31.2022

Term Value
Weighted Median P/E 24.24
Weighted Average P/B 3.34
Weighted Average Market Cap $188.13B
Annual Turnover 35%

Equity Funds

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12.09.2022

3rd Quarter 2022 Market Review: Special Opportunities SMA

Speakers: Co-Portfolio Manager Joshua L. Haggerty, CFA®, and Client Portfolio Manager Whitney L. Stewart, CFA®

11.07.2022

3rd Quarter 2022 Market Review: Equity Income SMA

Speakers: Portfolio Manager Charles (Chip) J. Wittmann, CFA® , and Client Portfolio Manager Whitney L. Stewart, CFA®

Contact

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