Overview
R6
Shares
STREX
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 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 | -0.20% | 4.06% | 16.71% | 7.34% | 10.63% | 10.20% | 10.17% |
| A Shares without Sales Charge | 5.91% | 10.41% | 23.83% | 9.48% | 11.95% | 10.86% | 10.49% |
| Institutional Shares | 5.98% | 10.65% | 24.16% | 9.75% | 12.23% | 11.14% | 10.77% |
| Lipper Equity Income Median | 8.22% | 15.96% | 26.91% | 9.32% | 10.60% | 9.27% | 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 .11% 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 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. Performance is annualized for periods greater than one year.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | UnitedHealth Group, Inc. | 5.38% |
| 2 | Hershey Company | 4.93% |
| 3 | Elevance Health, Inc. | 4.87% |
| 4 | Automatic Data Processing, Inc. | 4.73% |
| 5 | Ameriprise Financial, Inc. | 4.55% |
| 6 | Analog Devices, Inc. | 4.53% |
| 7 | Microsoft Corp. | 4.53% |
| 8 | Nasdaq, Inc. | 4.41% |
| 9 | PepsiCo, Inc. | 4.25% |
| 10 | Home Depot, Inc. | 4.22% |
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.
| Term | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Lipper Ranking / Number of Funds in Category | 417/540 | 206/509 | 135/486 | 46/376 |
| Lipper Quartile (Percentile) | 4th (78%) | 2nd (41%) | 2nd (28%) | 1st (13%) |
Statistics
| Term | Value |
|---|---|
| Alpha | 2.10 |
| Beta | 0.93 |
| R-Squared | 93.71 |
| Standard Deviation | 14.82 |
| Sharpe Ratio | 0.62 |
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 | 27.27 |
| Weighted Average P/B | 13.22 |
| Weighted Average Market Cap | $283.29B |
| Annual Turnover | 44% |
Equity Income Fund
Materials
Equity Funds
Insights
12.20.2024 • Andrew Richman, CTFA
Andy Richman's update on the December Federal Open Market Committee meeting.
12.17.2024 • Peter Brown, CFA®
Video - Sterling Capital's Fixed Income Philosophy
Sterling Capital specializes in fixed income investing, and today we’re looking at the team’s philosophy with Pete Brown, Managing Director and Head of Investment-Grade Credit. Watch and gain valuable insights as Pete reveals their fixed income philosophy, emphasis on risk-management and team-managed approach.
12.12.2024 • Orton Chen, CFA®
Meet Orton Chen, Chief Investment Officer for Sterling Capital's Private Client Group
Sterling Capital is pleased to share a closer look at Orton Chen, Chief Investment Officer for our Private Client Group. In this spotlight, he shares his professional experience and advice, and the one rule he would make if he could. It’s great to have you on our team, Ort! Thank you for everything you do, and for sharing this with us.
12.10.2024 • Charles Wittmann, CFA®
- Over the past 12 months, our benchmark, the Russell 1000® Value Index, is up +29.5% as of November 30, 2024. If this year-over-year gain holds, it may be the best year for the Russell 1000 Value in over a decade. - What is interesting to us is that the return thus far in 2024 has been concentrated in the largest holdings in the index. - Where do we stand in terms of overall valuation for the index where these top companies reside? - We provide an update and observations.
11.22.2024 • Shane Burke
Meet Shane Burke, Sterling Capital Advisory Solutions Portfolio Manager
Sterling Capital is pleased to share a closer look at Shane Burke, our Advisory Solutions Portfolio Manager. In this spotlight, he shares his professional experience and advice, and his hidden talent. It’s great to have you on our team, Shane! Thank you for everything you do, and for sharing this with us.
11.18.2024 • Andrew Richman, CTFA
Fed Begins to Ease... Rates Rise?
Andy Richman's update on the November Federal Open Market Committee meeting.
Contact
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