Overview
R6
Shares
STRMX
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 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.
| Term | Class A Shares | Class C Shares | Class I Shares | Class R6 Shares |
|---|---|---|---|---|
| Ticker | OVEAX | OVECX | OVEIX | STRMX |
| Inception Date | 08.01.1996 | 07.25.2001 | 08.01.1996 | 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
Associate Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 5.75% Sales Charge | -11.48% | -5.52% | 1.61% | -1.67% | 5.88% | 5.45% | 8.56% |
| A Shares without Sales Charge | -6.06% | 0.27% | 7.84% | 0.28% | 7.14% | 6.08% | 8.79% |
| Institutional Shares | -6.03% | 0.39% | 8.15% | 0.53% | 7.40% | 6.35% | 9.05% |
| Lipper Mid-Cap Value Median | -3.55% | 3.44% | 10.49% | 5.22% | 8.45% | 7.13% | 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
| # | Company Name | Value |
|---|---|---|
| 1 | Globe Life, Inc. | 4.55% |
| 2 | Euronet Worldwide, Inc. | 3.73% |
| 3 | Nisource, Inc. | 3.49% |
| 4 | Humana, Inc. | 3.40% |
| 5 | SLM Corp. | 3.30% |
| 6 | Corteva, Inc. | 3.27% |
| 7 | Radian Group, Inc. | 3.23% |
| 8 | Air Lease Corp. | 3.18% |
| 9 | Target Corp. | 2.97% |
| 10 | Take-Two Interactive Software, Inc. | 2.89% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
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
| 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.
| Term | Value |
|---|---|
| Weighted Median P/E | 17.93 |
| Weighted Average P/B | 1.77 |
| Weighted Average Market Cap | $20.82B |
| Annual Turnover | 20% |
Mid Value Fund
Materials
Equity Funds
Insights
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.
08.27.2024 • Andrew DiZio, CFA®
Higher Interest Rates & REITs - Looking Ahead at Lower New Supply
The market has spent much of the last two years fixated on the negative effects of rising rates on Real Estate Investment Trust (REIT) share prices. What has received less attention is the slowdown in new developments of commercial and multifamily real estate due to higher interest rates and the potential for higher rents in coming years should consistent demand growth be unmet by new supply. We believe publicly-traded REITs, which derive much of their earnings growth from existing real estate rather than new development, are overlooked future beneficiaries of this construction slowdown.
08.13.2024
James Kerin, CFA®, Michael McVicker
Energy prepayment (prepay) bonds enable municipal utilities to lock into a discounted price on a long-term supply of energy, most commonly natural gas or electricity. Issued by special purpose authorities, bonds are structured with far-dated final maturities but shorter-dated mandatory tenders that are backed by the obligation of a bank or insurance company, known as the guarantor, to ensure that it occurs in order to return principal to bondholders. As a result, prepay bonds are ultimately a corporate credit exposure in the tax-exempt market. The final maturity matches the term of the energy supply contract and improves the bond’s market discount tax treatment, while the shorter-dated tender serves to optimize borrowing costs within the transaction.
08.01.2024 • Charles Wittmann, CFA®
- Low quality and risk performed well in the first half of 2024. - As a result of more tepid inflation data supporting a potential reduction in the federal funds rate, we believe the market began anticipating that lower rates may aid companies that need stress relief from the higher interest payments placed on their businesses. - Evidence of this stress can be seen in how companies in the S&P 500 Index began reducing the growth rate of dividends they pay their shareholders as cash flows become more difficult to generate. - We believe quality companies that increase rather than decrease their dividends and signal their financial strength through short- and long-term environments may be a formula for client success.
08.01.2024 • Andrew Richman, CTFA
“Better Balance” Increases the Odds for a September Cut
Andy Richman's update on the July Federal Open Market Committee meeting.
Contact
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