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 | -1.38% | -0.03% | 5.35% | 10.98% | 4.82% | 7.89% | 9.85% |
| A Shares without Sales Charge | 4.64% | 6.07% | 11.78% | 13.19% | 6.07% | 8.53% | 9.98% |
| Institutional Shares | 4.71% | 6.20% | 12.07% | 13.47% | 6.34% | 8.73% | 10.02% |
| Lipper Mid-Cap Core Median | 4.66% | 7.28% | 12.82% | 14.07% | 7.14% | 8.82% | 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. | 3.60% |
| 2 | nVent Electric PLC | 3.05% |
| 3 | Ameriprise Financial, Inc. | 3.00% |
| 4 | CDW Corp. | 2.89% |
| 5 | Fiserv, Inc. | 2.85% |
| 6 | Casey's General Stores, Inc. | 2.84% |
| 7 | Mastec, Inc. | 2.77% |
| 8 | Icon PLC | 2.75% |
| 9 | Pultegroup Inc | 2.59% |
| 10 | Carlisle Cos., Inc. | 2.58% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 06.30.2023
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 06.30.2023
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 06.30.2023. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.26 |
| Beta | 0.93 |
| R-Squared | 94.76 |
| Standard Deviation | 16.38 |
| 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 | 21.71 |
| Weighted Average P/B | 2.34 |
| Weighted Average Market Cap | $22.97B |
| Annual Turnover | 4% |
Mid Cap Relative Value Fund
Materials
Equity Funds
Insights
09.21.2023 • Andrew Richman, CTFA
Fed Reiterates-Higher for Longer
While the Federal Reserve (Fed) met expectations with a pause/skip this meeting, the real story was the upward movement in both the Fed Funds rate this year and next year. The consensus is now for one more 25 basis point hike in 2023 with the Fed funds rate median at 5.60%.
09.07.2023 • Shane Burke
An Updated Look at the FOMC and Yield Curve
An Updated Look at the FOMC and Yield Curve
09.06.2023 • Charles Wittmann, CFA®
- One of the risks in seeking higher dividend yields in non-financial companies can be the increased balance sheet leverage that correlates with higher dividend yield. - For many companies, the cost of this leverage is rising with interest rates, potentially placing pressure on cash flows to pay future dividends as interest expense may take a greater share of corporate cash flow. - We believe that owning stocks with strong balance sheets has the potential to minimize this risk as we endeavor to generate attractive above-average total returns with below-average risk for clients.
08.02.2023 • Andrew Richman, CTFA
Fitch Lowers Long-Term U.S. Debt Rating from AAA to AA+
Fitch Lowers Long-Term U.S. Debt Rating from AAA to AA+
08.01.2023 • Charles Wittmann, CFA®
The Lead - "Long-Term Dividends"
- What are the investing environment conditions that can cause dividend payers to lag on a short-term basis? - Looking back at Bloomberg data over the past twenty years, when dividend payers outperformed the Russell 1000 Value, non-earners underperformed and vice versa (56% of the time). - Over the twenty year period, dividend payer’s quarterly outperformance outweighed underperformance in contrast to non-earners. - In our quest to generate above-average returns with below-average risk for our clients, our approach is to take advantage of the long-term benefits of dividend payers that grow their dividends and seek to create value now and in the future.
07.25.2023 • Andrew DiZio, CFA®
Real Estate Returns Following Fed Rate Hike Cycles
Over the last 15 months, the Federal Reserve (Fed) has meaningfully raised the benchmark fed funds rate in an effort to tamp down inflation. The Fed paused its hiking campaign during the June meeting, but issued an outlook suggesting additional rate increases are to be expected. Regardless of whether the Fed has finished raising rates, we believe the end of the tightening cycle is near and view now as a prudent time to examine the performance of Real Estate Investment Trust (REIT) stocks following historical periods of fed funds increases.
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