Overview
C
Shares
STRNX
Inception
Date
11.16.2015
Investment
Min.
$1,000
Subsequent
Investment Min.1
N/A
Max. Up Front
Sales Charge
N/A
Max. Deferred
Sales Charge
1%
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 | 2.97% | 2.97% | 15.61% | 4.51% | 8.71% | 7.19% | 10.03% |
| A Shares without Sales Charge | 9.24% | 9.24% | 22.67% | 6.59% | 10.01% | 7.82% | 10.16% |
| Institutional Shares | 9.31% | 9.31% | 22.98% | 6.86% | 10.28% | 8.05% | 10.21% |
| Lipper Mid-Cap Core Median | 11.65% | 14.04% | 14.04% | 8.20% | 11.93% | 7.96% | 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 | Carlisle Cos., Inc. | 3.69% |
| 2 | Icon Plc | 3.41% |
| 3 | Fiserv, Inc. | 3.35% |
| 4 | United Rentals, Inc. | 3.25% |
| 5 | Ameriprise Financial, Inc. | 3.18% |
| 6 | Caci International, Inc. | 3.14% |
| 7 | Casey'S General Stores, Inc. | 3.02% |
| 8 | Performance Food Group Co | 2.91% |
| 9 | Nvent Electric Plc | 2.87% |
| 10 | Phillips 66 | 2.84% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 03.31.2024
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 03.31.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2024. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.09 |
| Beta | 0.92 |
| R-Squared | 95.09 |
| Standard Deviation | 16.61 |
| Sharpe Ratio | 0.40 |
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 | 25.31 |
| Weighted Average P/B | 2.54 |
| Weighted Average Market Cap | $27.21B |
| Annual Turnover | 6% |
Mid Cap Relative Value Fund
Materials
Equity Funds
Insights
04.04.2024 • Charles Wittmann, CFA®
The Lead - "Seeking Advantaged Economies of Scale"
- One important advantage we seek in large capitalization stocks is having dominant market shares that provide economies of scale. - Economies of scale may make a company more profitable and earn higher returns on its capital than its competitors. - We believe it is possible to identify companies that gain scale, market share, and returns at the expense of competitors. - As we have stated for close to two decades as part of our investment philosophy, we believe size usually translates into cost advantages in production, marketing, and research and development expenditures that can be re-invested back into the business, making such advantages sustainable.
03.05.2024 • Charles Wittmann, CFA®
The Lead - "Advantaged Market Share"
- What makes an advantaged company? - In our view, one notable characteristic of an advantaged company is growing its market share. - Simply put, we believe companies with greater market share are more profitable. - We seek to field a portfolio of advantaged companies with strong and potentially growing market shares to position our clients to win.
03.01.2024
4Q23 Equity Income SMA Review and Outlook
The 4Q23 Equity Income SMA Review and Outlook reviews performance, holdings, and dividend growth within the strategy.
03.01.2024 • Shane Burke
The Federal Reserve During an Election Year - March 2024
2024 is expected to be one of the biggest election years in history, with more than 60 countries representing approximately half of the world’s population heading to the polls. The year will include multi-day legislative elections in India (the largest population in the world), Indonesia’s presidential election (the world’s largest single-day vote), and the globally-anticipated U.S. presidential election.
02.06.2024 • Charles Wittmann, CFA®
- By utilizing our investment process and our investment team, we believe we can build portfolios different from the benchmark and provide an opportunity to generate returns above the benchmark over time. - Ironically, many passive indexes make active bets themselves. In 2023, the S&P 500 Dividend Aristocrats suffered its worst performance relative to the S&P 500® Index since 1999. - We’ve believed for over 20 years that portfolio managers with material amounts of their net worth invested alongside clients incentivizes portfolio diversification and active adjustments, rather than a static index where there is no vested interest. Our mission is to generate above-average returns with below-average risk over time.
02.02.2024
Sterling Capital Management LLC to be acquired by Guardian Capital Group Limited
We are delighted to announce that Guardian Capital Group Limited has reached an agreement under which Guardian’s wholly-owned subsidiary Guardian Capital LLC will acquire Sterling Capital from Truist. Post-closing, Sterling Capital will become an independently-operated subsidiary of Guardian.
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