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Real Estate Fund

Mutual Funds

Real Estate Fund


Fund Managers

Photo of Andrew  DiZio

Andrew DiZio, CFA®

Photo of Shawn  Gallagher

Shawn Gallagher, CFA®

Overview

A
Shares

STMMX

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

Under normal circumstances, the fund seeks to achieve its objective by investing at least 80% of its assets in securities of real estate and real estate related companies, or in companies which own significant real estate assets at the time of purchase ("real estate companies") including Real Estate Investment Trusts ("REITs").

REITs were created to enable investors to participate in the benefits of owning income-producing real estate. REITs own many different types of properties, including apartment complexes, office buildings, hotels, health care facilities, shopping centers and shopping malls.

Investment Considerations

Real Estate Funds may be subject to a higher degree of market risk because of concentration in a specific industry or geographic sector. Risks include declines in value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers.

Fund Facts

Term Class A Shares Class C Shares Class I Shares Class R6 Shares
Ticker STMMXSTMOXSTMDXSCREX
Inception Date 11.16.201511.16.201505.30.198002.03.2020
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.

Real Estate Fund

Management

View professional designations disclosures

Photo of Andrew  DiZio

Andrew DiZio, CFA®

Co-Portfolio Manager

Photo of Shawn  Gallagher

Shawn Gallagher, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 12.31.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 5.75% Sales Charge 10.17% 6.26% 6.26% 2.64% 6.29% 7.35% 9.37%
A Shares without Sales Charge 16.88% 12.75% 12.75% 4.69% 7.56% 7.99% 9.52%
Institutional Shares 16.94% 13.00% 13.00% 4.94% 7.83% 8.21% 9.57%
Lipper Real Estate Median 16.30% 11.91% 11.91% 5.36% 7.25% 7.21% N/A

The total expense ratios for Class A, C and I Shares are 1.08%, 1.83% and 0.83%, respectively. The gross expense ratio for Class R6 Shares is 0.83%. The net expense ratio for Class R6 Shares is 0.74%.

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 average daily net assets for the period February 1, 2021 through January 31, 2022. 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 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 05.30.1980. The inception date for Class R6 Shares is 02.03.2020. 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 inception date for Institutional Shares was 5/30/1980.

The performance shown prior to November 16, 2015 is that of the Stratton Real Estate Fund (the "Predecessor Fund") which reorganized into the Sterling Capital Stratton Real Estate 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 5/30/1980.

Effective November 16, 2015, Sterling Capital Management changed the name of the Stratton Real Estate Fund to the Sterling Capital Stratton Real Estate Fund. The name was changed as a result of the Stratton Fund being reorganized into the Sterling Capital Funds.

Characteristics

Top Ten Holdings as of 12.31.2023

# Company Name Value
1 American Tower Corp. 9.59%
2 Prologis, Inc. 9.10%
3 Equinix, Inc. 7.18%
4 Welltower, Inc. 4.74%
5 Digital Realty Trust, Inc. 4.31%
6 Extra Space Storage Inc 4.05%
7 Vici Properties, Inc. 3.88%
8 SBA Communication 3.84%
9 Invitation Homes, Inc. 3.68%
10 Essex Property Trust, Inc. 3.25%

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Sector Allocation as of 12.31.2023

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 12.31.2023

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2023. It includes the reinvestment of dividends and capital gains.

Statistics

Risk/Return Statistics vs. FTSE NAREIT All Equity REIT Index 3 as of 12.31.2023

Term Value
Alpha 0.29
Beta 0.97
R-Squared 98.58
Standard Deviation 16.90
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.

Summary Statistics as of 12.31.2023

Term Value
Weighted Median P/E 47.04
Weighted Average P/B 2.39
Weighted Average Market Cap $39.94B
Annual Turnover 7%

Equity Funds

Insights

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The Lead - "Actively Aware"

- 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.

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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.

01.22.2024 • Whitney Stewart, CFA®

Are the S&P 493 and Small Caps Well-Positioned for Attractive Performance?

During the calendar year of 2023, the “Magnificent Seven” (M7) of Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla rallied 111% on average, outperforming the S&P 500® Equal Weight Index (+14% total return for 2024) by 97%, leading to an all-time high concentration for the seven largest stocks in the S&P 500® Index. Based on the factors below, some investors believe the rest of the S&P 493 and small-cap stocks are positioned for attractive returns in 2024 and beyond.

01.04.2024 • Charles Wittmann, CFA®

The Lead - "Seeking Dividend Advantage"

- We believe we can position clients in an advantageous spot by owning stocks whose companies have a track record of paying cash dividends on a regular basis and growing that corporate dividend throughout the year. - Perhaps this higher certainty of receiving dividends that contribute to an investor’s total return is why dividend growth stocks have performed well in the later stages of a Federal Reserve interest rate tightening cycle. - Looking back over time, the return of the S&P 500® Index without dividends is roughly 60% of the return with dividends.

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12.14.2023 • Andrew Richman, CTFA

Fed Preps for Pivot

A bond market that had just come off its strongest month in nearly 40 years in November continued to rally as the Federal Reserve’s (Fed’s) final meeting of 2023 supported the notion that the next move by the Fed will likely be rate cuts.

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12.01.2023

Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF

Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF

Contact

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