Overview
I
Shares
STMDX
Inception
Date
05.30.1980
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
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.
| Term | Class A Shares | Class C Shares | Class I Shares | Class R6 Shares |
|---|---|---|---|---|
| Ticker | STMMX | STMOX | STMDX | SCREX |
| Inception Date | 11.16.2015 | 11.16.2015 | 05.30.1980 | 02.03.2020 |
| 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.
Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 5.75% Sales Charge | 8.59% | 7.07% | 25.17% | 0.85% | 4.12% | 7.23% | 6.93% |
| A Shares without Sales Charge | 15.22% | 13.61% | 32.79% | 2.86% | 5.36% | 7.87% | 7.65% |
| Institutional Shares | 15.29% | 13.85% | 33.13% | 3.12% | 5.63% | 8.11% | 9.63% |
| Lipper Real Estate Median | 15.59% | 13.54% | 32.45% | 2.85% | 4.79% | 7.14% | N/A |
The total expense ratios for Class A, C and I Shares are 1.12%, 1.87% and 0.87%, respectively. The gross expense ratio for Class R6 Shares is 0.87%. The net expense ratio for Class R6 Shares is 0.78%.
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 Real Estate 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 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. The performance shown reflects the reinvestment of all dividend and capital gains distributions. Performance is annualized for periods greater than one year.
The performance shown prior to 11.16.2015 is that of the Stratton Real Estate Fund (the "Predecessor Fund") which reorganized into the Sterling Capital 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 05.30.1980.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | American Tower Corp. | 9.39% |
| 2 | Prologis, Inc. | 7.83% |
| 3 | Digital Realty Trust, Inc. | 6.53% |
| 4 | Welltower, Inc. | 5.86% |
| 5 | Equinix, Inc. | 4.60% |
| 6 | Extra Space Storage Inc | 4.14% |
| 7 | Ventas, Inc. | 4.01% |
| 8 | Vici Properties, Inc. | 3.59% |
| 9 | Essex Property Trust, Inc. | 3.52% |
| 10 | Invitation Homes, Inc. | 3.46% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 09.30.2024
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 09.30.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 09.30.2024. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 0.14 |
| Beta | 0.97 |
| R-Squared | 98.65 |
| Standard Deviation | 17.23 |
| Sharpe Ratio | 0.44 |
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 | 43.68 |
| Weighted Average P/B | 5.64 |
| Weighted Average Market Cap | $41.50B |
| Annual Turnover | 8% |
Real Estate Fund
Materials
Equity Funds
Insights
11.22.2024 • Shane Burke
Meet Shane Burke, Sterling Capital Advisory Solutions Portfolio Manager
Sterling Capital is pleased to share a closer look at Shane Burke, our Advisory Solutions Portfolio Manager. In this spotlight, he shares his professional experience and advice, and his hidden talent. It’s great to have you on our team, Shane! Thank you for everything you do, and for sharing this with us.
11.18.2024 • Andrew Richman, CTFA
Fed Begins to Ease... Rates Rise?
Andy Richman's update on the November Federal Open Market Committee meeting.
11.05.2024 • Charles Wittmann, CFA®
- We have shared the qualities we seek in the companies we invest in and how we research their perceived competitive advantage, but what advantage can an investor have? - As investment timeframes have become more short term, we have found the long end of the equity yield curve is less competitive and may “yield” more opportunities. - The concept of the equity yield curve is helpful to visualize how patience can create value.
10.01.2024 • Charles Wittmann, CFA®
- 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.
Contact
Learn more about Sterling Capital solutions and services.
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The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
