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Mid Value Fund

Mutual Funds

Mid Value Fund


Fund Managers

Photo of Patrick  Rau

Patrick Rau, CFA®

Photo of Will  Smith

Will Smith, CFA®

Overview

I
Shares

OVEIX

Inception
Date

08.01.1996

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 purchases companies that the portfolio manager believe are priced significantly below their intrinsic worth as well as those that demonstrate sustainable competitive advantage and high returns on invested capital. The portfolio management team partners with shareholder-oriented company management that has demonstrated a track record of strong capital allocation.

The management process identifies investment opportunities from the broad equity universe using fundamental analysis, valuation and risk management to select 30 to 50 holdings within the Fund. The strategy is oriented toward long-term investing but the manager will sell a holding that has become less attractive or underperforms expectations or has excessive leverage.

Investment Considerations

The Fund may invest in undervalued securities which may not appreciate in value as anticipated or remain undervalued for longer than anticipated. Investments made in small to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory as well as more sensitivity to adverse conditions. The Fund may invest in foreign securities which may be more volatile and less liquid due to currency fluctuation, political instability, social and economic risks.

Fund Facts

Term Class A Shares Class C Shares Class I Shares Class R6 Shares
Ticker OVEAXOVECXOVEIXSTRMX
Inception Date 08.01.199607.25.200108.01.199602.01.2018
Investment Min. $1,000$1,000$1,000,000N/A
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.

Mid Value Fund

Management

View professional designations disclosures

Photo of Patrick  Rau

Patrick Rau, CFA®

Co-Portfolio Manager

Photo of Will  Smith

Will Smith, CFA®

Co-Portfolio Manager

Photo of Lee  Houser

Lee Houser, CFA®

Associate Portfolio Manager

Performance

Fund Performance as of 09.30.2024

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 5.75% Sales Charge 2.09% 2.35% 13.02% 1.90% 7.40% 6.73% 8.78%
A Shares without Sales Charge 8.33% 8.63% 19.90% 3.93% 8.68% 7.36% 9.01%
Institutional Shares 8.43% 8.85% 20.17% 4.18% 8.96% 7.64% 9.27%
Lipper Mid-Cap Value Median N/A N/A N/A N/A N/A N/A N/A

The total expense ratios for Class A, C and I Shares are 1.19%, 1.94% and 0.94%, respectively. The gross expense ratio for Class R6 Shares is 0.94%. The net expense ratio for Class R6 Shares is 0.85%.

The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .09% 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 Mid Value 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 08.01.1996. The inception date for Class C Shares is 07.25.2001. The inception date for Class Inst'l Shares is 08.01.1996. 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

Sector Allocation as of 06.30.2024

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 06.30.2024

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 06.30.2024. It includes the reinvestment of dividends and capital gains.

Statistics

Risk/Return Statistics vs. Russell Midcap® Value Index 3 as of 06.30.2024

Term Value
Alpha -1.64
Beta 1.06
R-Squared 93.11
Standard Deviation 19.44
Sharpe Ratio 0.24

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 06.30.2024

Term Value
Weighted Median P/E 17.93
Weighted Average P/B 1.77
Weighted Average Market Cap $20.82B
Annual Turnover 20%

Equity Funds

Insights

10.01.2024 • Charles Wittmann, CFA®

The Lead - Margin of Upside

- One of the most common mental shortcuts is regression to the mean, or the idea that outcomes far from average will revert to average over time.
- Where did the idea come from, is it true in every case, and can it create a greater understanding and yield profitable insights?
- Finally, if there are advantaged companies that challenge this assumption as the economy has evolved, what valuations will the market typically award them?

09.30.2024

Sterling Capital Equity Portfolio Management Updates

Sterling Capital announces the creation of the Insight Equity Group, combining the firm's Fundamental Equity and Relative Value teams, along with the April 2025 retirement of Patrick Rau, CFA®/.

09.18.2024 • Brandon Carl, CFA®

U.S. Equity Market Performance Following the First Fed Funds Rate Cut

After two and a half years of battling elevated inflation with aggressive monetary policy tightening measures, the Federal Reserve (Fed) finally reduced the federal funds target rate range (fed funds rate) by 50 basis points during its September 2024 meeting. With recent inflation indicators seemingly within the Fed’s comfort zone, coupled with an increasing emphasis on supporting the labor market, we believe it’s highly likely that additional rate cuts are forthcoming.

09.12.2024 • Will Smith, CFA®

Down but Not Out: Why Mid-Cap Value Appears Increasingly Attractive

For almost a decade, large-cap growth has been a dominant factor driving market returns. However, we see mounting evidence mid-cap value stocks are due for a comeback. We have long argued mid caps are a potential “sweet spot” for investors. We believe they boast better liquidity, stronger balance sheets, and more durable competitive advantages than small-cap peers and are often more nimble, focused, and less well covered by the sell side than large caps.

09.04.2024 • Charles Wittmann, CFA®

The Lead - Dividend Opportunities

- As we enter September, it appears the Federal Reserve is prepared to lower the federal funds rate at their September 18, 2024 meeting.
- Historically, dividend payers have outperformed non-dividend payers after the first cut.
- One may question if historically it has been better to own high yielders versus dividend growers, and if it has been better to own slower or faster dividend growers. We address these topics in this month’s piece.

08.29.2024

Guardian Capital buys Sterling Capital Management from Truist

(pionline.com) Guardian Capital, a wholly owned subsidiary of Guardian Capital Group, will acquire investment manager Sterling Capital Management from Truist Financial.

Contact

Learn more about Sterling Capital solutions and services.

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