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Real Estate Fund

Mutual Funds

Real Estate Fund

Overall Morningstar Rating™
Morningstar Category: Real Estate

4 Star Overall Rating

Based on risk-adjusted STMDX returns among 230 funds as of 05.31.2023.

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.

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 03.31.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 5.75% Sales Charge -2.59% -2.59% -23.62% 7.54% 5.13% 5.72% 9.32%
A Shares without Sales Charge 3.36% 3.36% -18.97% 9.68% 6.38% 6.35% 9.47%
Institutional Shares 3.42% 3.42% -18.77% 9.96% 6.65% 6.55% 9.52%
Lipper Real Estate Median 2.56% 2.56% -20.05% 10.18% 5.70% 5.61% 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 03.31.2023

# Company Name Value
1 Prologis, Inc. 9.04%
2 American Tower Corp. 7.37%
3 Equinix, Inc. 7.10%
4 Crown Castle International Corp. 5.24%
5 Sba Communications Corp. 4.14%
6 Welltower, Inc. 3.97%
7 Invitation Homes, Inc. 3.64%
8 UDR, Inc. 3.63%
9 Kite Realty Group Trust 3.60%
10 Mid-America Apartment 3.50%

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

Sector Allocation as of 03.31.2023

Sector Allocation as of 03.31.2023

Name Value
Residential 17.13%
Infrastructure Reits 16.64%
Retail 14.93%
Industrial 14.28%
Data Centers 10.40%
Self Storage 6.72%
Health Care 6.54%
Office 3.87%
Lodging/resorts 3.22%
Specialty 2.99%
Cash 1.68%
Diversified 1.60%

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 03.31.2023

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2023. It includes the reinvestment of dividends and capital gains.

Statistics

Risk/Return Statistics vs. FTSE NAREIT All Equity REIT Index 3 as of 03.31.2023

Term Value
Alpha 0.20
Beta 0.98
R-Squared 98.52
Standard Deviation 16.54
Sharpe Ratio 0.35

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 03.31.2023

Term Value
Weighted Median P/E 35.85
Weighted Average P/B 2.40
Weighted Average Market Cap $35.92B
Annual Turnover 10%

Equity Funds

Insights

preview of document

05.22.2023 • Andrew Richman, CTFA

Sterling Capital Viewpoint: The Debt Ceiling

Our view on the current market environment in light of the upcoming debt ceiling deadline.

05.05.2023 • Charles Wittmann, CFA®

The Lead - "Perspective on Quality and Dividend Growth"

- In our study, we took a closer look at the characteristics that we believe were additive to performance for the trailing time periods ended December 31, 2022. - BofA Global Research provided data for the performance of ROE over these timeframes, and it performed well relative to the Russell 1000 Value. - We believe dividend growth was additive to our Equity Income strategy over the time periods studied, which is consistent with the data from Ned Davis Research. - As an investment team, we seek to accentuate the benefits of our investment process to deliver positive outcomes for clients.

preview of document

05.04.2023 • Andrew Richman, CTFA

Fed Raises 25 Basis Points But Sets the Table for a Possible Pause

In a move widely anticipated by the markets, the Federal Reserve (Fed) raised rates an additional 25 basis points to arrange of 5.00% to 5.25%. This is the highest in over 15 years and a 5.0% move in a little over 13 months.

preview of document

04.27.2023

Press Release: Equity Personnel Updates

Today Sterling Capital announces the resignation of Joshua L. Haggerty, CFA®, Co-Portfolio Manager of the firm’s Special Opportunities strategy, effective immediately. Effective tomorrow, James L. Curtis, CFA® will be promoted to serve as Co-Portfolio Manager of the Special Opportunities strategy.

04.12.2023 • Charles Wittmann, CFA®

The Lead - "Equity Income Fund Wins Lipper Awards"

- In March, the Sterling Capital Equity Income Fund received two Refinitiv Lipper fund awards for the “Best Fund Over 3 Years” and the "Best Fund Over 5 Years” in the Equity Income Funds category. - First, we see the awards as confirmation that the investment team is managing its investments consistent with its stated mission. - Second, we recognize the winners are the clients who have been invested in Sterling Capital Equity Income over the past three and five years. - We are happy and excited that the true winners are our valued clients.

preview of document

03.24.2023

Sterling Capital Equity Income Fund receives two 2022 Lipper Fund Awards

Sterling Capital Management is delighted to announce that our flagship Equity Income Fund received two Lipper Awards in the March 23, 2023 award ceremony in New York. Co-portfolio managers Chip Wittmann, CFA® and Jeremy Lopez, CFA®, were in attendance to accept this prestigious honor. The Equity Income Fund R6 Share Class (ticker: STREX) won in the three-year performance category, from a peer group of 390 equity income funds. The Equity Income Fund Institutional Share Class (ticker: BAEIX) won in the five-year category, from a peer group of 374 equity income funds.

Contact

Learn more about Sterling Capital solutions and services.

Morningstar

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© 2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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.

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