Overview
A
Shares
STRLX
Inception
Date
11.16.2015
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 uses a value investment approach to invest primarily in common stocks of mid-size companies. We believe that undervalued companies with good earnings prospects have superior appreciation potential with reasonable levels of risk. Quantitatively, we focus on a stock's fundamental valuation relative to its peers. Qualitatively, we seek to identify business catalysts which will serve to drive future earnings growth, increase investor interest and expand valuation.
Within the US equity universe, it is our view that the Mid Cap segment offers an attractive mix of growth and stability. Compared to smaller peers, Mid Cap stocks are more likely to have proven business models and greater financial flexibility, yet in many cases, still have the potential for rapid growth. As a result, over longer periods of time, Mid Cap stocks have exhibited superior risk-adjusted returns versus both Small Caps and Large Caps.
Investment Considerations
Mid-size company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.
| Term | Class A Shares | Class C Shares | Class I Shares |
|---|---|---|---|
| Ticker | STRLX | STRNX | STRGX |
| Inception Date | 11.16.2015 | 11.16.2015 | 09.30.1972 |
| Investment Min. | $1,000 | $1,000 | $1,000,000 |
| Subsequent Investment Min.2 | N/A | N/A | N/A |
| Max. Up Front Sales Charge | 5.75% | N/A | N/A |
| Max. Deferred Sales Charge | N/A | 1% | 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 | -4.47% | -4.47% | -10.73% | 15.13% | 4.27% | 7.63% | 9.80% |
| A Shares without Sales Charge | 1.37% | 1.37% | -5.28% | 17.43% | 5.51% | 8.27% | 9.93% |
| Institutional Shares | 1.42% | 1.42% | -5.04% | 17.72% | 5.77% | 8.47% | 9.97% |
| Lipper Mid-Cap Core Median | 1.98% | 1.98% | -6.74% | 19.86% | 6.68% | 8.59% | N/A |
The total expense ratios for Class A, C, and I are 1.10%, 1.85% and 0.85%, respectively.
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 inception date for Class A Shares is 11.16.2015. The inception date for Class C Shares is 11.16.2015. The inception date for Class Inst'l Shares is 09.30.1972. Because Class A Shares and Class C Shares do not have a full calendar year of performance, the historical performance shown is that of Institutional Shares. Class A Shares and Class C Shares and Institutional Shares of the Fund would have substantially similar performance because the Shares are invested in the same portfolio of securities and the performance would differ only to the extent that the Classes have different expenses.
The performance shown prior to November 16, 2015 is that of the Stratton Mid Cap Value Fund (the "Predecessor Fund") which reorganized into the Sterling Capital Stratton Mid Cap Value Fund Institutional Shares (the Fund). Because the Fund had no investment operations prior to the closing of the reorganization, and based on the similarity of the Fund to the Predecessor Fund, the Predecessor Fund is treated as the survivor of the reorganization for accounting and performance reporting purposes. The inception date of the Predecessor Fund is 9/30/1972.
Effective November 16, 2015, Sterling Capital Management changed the name of the Stratton Mid Cap Value Fund to the Sterling Capital Stratton Mid Cap Value Fund. The name was changed as a result of the Stratton Fund being reorganized into the Sterling Capital Funds.
Effective May 1, 2013, Stratton Management changed the name of the Stratton Multi-Cap Fund to the Stratton Mid Cap Fund. The name has been changed to more appropriately reflect the characteristics and securities of the Fund. The investment objective remains the same.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | Caci International, Inc. | 3.21% |
| 2 | Cdw Corp. | 3.15% |
| 3 | Ameriprise Financial, Inc. | 2.84% |
| 4 | Performance Food Group Co | 2.65% |
| 5 | Fiserv, Inc. | 2.62% |
| 6 | Nvent Electric Plc | 2.61% |
| 7 | United Rentals, Inc. | 2.61% |
| 8 | Casey'S General Stores, Inc. | 2.59% |
| 9 | Avery Dennison Corp. | 2.52% |
| 10 | Icon Plc | 2.41% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 03.31.2023
| Name | Value |
|---|---|
| Financials | 16.95% |
| Industrials | 14.80% |
| Info Technology | 11.02% |
| Health Care | 10.90% |
| Real Estate | 8.50% |
| Materials | 8.16% |
| Consumer Staples | 7.55% |
| Energy | 5.40% |
| Consumer Dis | 5.00% |
| Comm Services | 4.07% |
| Utilities | 4.00% |
| Cash | 3.65% |
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 03.31.2023
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2023. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.23 |
| Beta | 0.93 |
| R-Squared | 94.55 |
| Standard Deviation | 16.13 |
| Sharpe Ratio | 0.47 |
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 | 22.71 |
| Weighted Average P/B | 2.24 |
| Weighted Average Market Cap | $23.12B |
| Annual Turnover | 4% |
Mid Cap Relative Value Fund
Materials
Equity Funds
Insights
05.22.2023 • Andrew Richman, CTFA
Sterling Capital Viewpoint: The Debt Ceiling
Our view on the current market environment in light of the upcoming debt ceiling deadline.
05.05.2023 • Charles Wittmann, CFA®
The Lead - "Perspective on Quality and Dividend Growth"
- In our study, we took a closer look at the characteristics that we believe were additive to performance for the trailing time periods ended December 31, 2022. - BofA Global Research provided data for the performance of ROE over these timeframes, and it performed well relative to the Russell 1000 Value. - We believe dividend growth was additive to our Equity Income strategy over the time periods studied, which is consistent with the data from Ned Davis Research. - As an investment team, we seek to accentuate the benefits of our investment process to deliver positive outcomes for clients.
05.04.2023 • Andrew Richman, CTFA
Fed Raises 25 Basis Points But Sets the Table for a Possible Pause
In a move widely anticipated by the markets, the Federal Reserve (Fed) raised rates an additional 25 basis points to arrange of 5.00% to 5.25%. This is the highest in over 15 years and a 5.0% move in a little over 13 months.
04.27.2023
Press Release: Equity Personnel Updates
Today Sterling Capital announces the resignation of Joshua L. Haggerty, CFA®, Co-Portfolio Manager of the firm’s Special Opportunities strategy, effective immediately. Effective tomorrow, James L. Curtis, CFA® will be promoted to serve as Co-Portfolio Manager of the Special Opportunities strategy.
04.12.2023 • Charles Wittmann, CFA®
The Lead - "Equity Income Fund Wins Lipper Awards"
- In March, the Sterling Capital Equity Income Fund received two Refinitiv Lipper fund awards for the “Best Fund Over 3 Years” and the "Best Fund Over 5 Years” in the Equity Income Funds category. - First, we see the awards as confirmation that the investment team is managing its investments consistent with its stated mission. - Second, we recognize the winners are the clients who have been invested in Sterling Capital Equity Income over the past three and five years. - We are happy and excited that the true winners are our valued clients.
03.24.2023
Sterling Capital Equity Income Fund receives two 2022 Lipper Fund Awards
Sterling Capital Management is delighted to announce that our flagship Equity Income Fund received two Lipper Awards in the March 23, 2023 award ceremony in New York. Co-portfolio managers Chip Wittmann, CFA® and Jeremy Lopez, CFA®, were in attendance to accept this prestigious honor. The Equity Income Fund R6 Share Class (ticker: STREX) won in the three-year performance category, from a peer group of 390 equity income funds. The Equity Income Fund Institutional Share Class (ticker: BAEIX) won in the five-year category, from a peer group of 374 equity income funds.
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