Overview
R6
Shares
SCSIX
Inception
Date
02.03.2020
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 uses a value investment approach to invest primarily in common stock of small capitalization companies (those with market capitalizations that are below the market capitalization of the largest company in the Russell 2000® Index). We believe that undervalued companies with good earnings prospects have superior appreciation potential with reasonable levels of risk. Quantitatively, we focus on a stock's fundamental valuation relative to its peers. Qualitatively, we seek to identify business catalysts which will serve to drive future earnings growth, increase investor interest and expand valuation.
In addition to outperforming the broad market over longer periods of time, we believe that the Small Cap segment of the US equity market, given its less efficient nature, offers significant opportunity to add value through active portfolio management. A combination of a larger investment universe, less research coverage, and strong growth potential creates a favorable backdrop for investment in select under-followed and/or under-appreciated small companies.
Investment Considerations
Small company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.
| Term | Class A Shares | Class C Shares | Class I Shares | Class R6 Shares |
|---|---|---|---|---|
| Ticker | STSNX | STSOX | STSCX | SCSIX |
| Inception Date | 11.16.2015 | 11.16.2015 | 04.12.1993 | 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
Associate Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 5.75% Sales Charge | -8.04% | -0.87% | 7.37% | 2.47% | 7.81% | 6.38% | 9.93% |
| A Shares without Sales Charge | -2.42% | 5.18% | 13.92% | 4.51% | 9.09% | 7.01% | 10.14% |
| Institutional Shares | -2.34% | 5.34% | 14.21% | 4.77% | 9.37% | 7.24% | 10.22% |
| Lipper Small-Cap Core 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 1.23%, 1.98% and 0.98%, respectively. The gross expense ratio for Class R6 Shares is 0.98%. The net expense ratio for Class R6 Shares is 0.88%.
The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .10% 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 performance of the Small Cap 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 11.16.2015. The inception date for Class C Shares is 11.16.2015. The inception date for Class Inst'l Shares is 04.12.1993. The inception date for Class R6 Shares is 02.03.2020. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
| # | Company Name | Value |
|---|---|---|
| 1 | Moog, Inc. | 4.00% |
| 2 | United Rentals, Inc. | 3.98% |
| 3 | Casey'S General Stores, Inc. | 3.66% |
| 4 | Caci International, Inc. | 3.55% |
| 5 | Crane Co | 3.54% |
| 6 | Oshkosh Corp. | 3.39% |
| 7 | Selective Insurance Group, Inc. | 3.34% |
| 8 | Wintrust Financial Corp. | 3.31% |
| 9 | Ptc, Inc. | 3.27% |
| 10 | West Pharmaceutical Services, Inc. | 3.22% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 03.31.2024
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 03.31.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2024. It includes the reinvestment of dividends and capital gains.
Statistics
| Term | Value |
|---|---|
| Alpha | 1.41 |
| Beta | 0.89 |
| R-Squared | 93.54 |
| Standard Deviation | 19.07 |
| Sharpe Ratio | 0.33 |
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 | 19.63 |
| Weighted Average P/B | 2.30 |
| Weighted Average Market Cap | $10.16B |
| Annual Turnover | 2% |
Small Cap Value Fund
Materials
Equity Funds
Insights
07.02.2024
Sterling Capital Management LLC joins Guardian Capital Group Limited
Sterling Capital Management LLC announced today the completion of its acquisition by Guardian Capital LLC, a wholly-owned subsidiary of global asset manager Guardian Capital Group Limited.
06.27.2024 • Jeffrey Ormsby, CFA®
Fixed Income and Federal Reserve Rate Cuts: How Should We Expect Fixed Income to Perform?
As one would expect, in most historical periods where interest rates were declining, fixed income total return has been good, with investors capturing the coupon income as well as benefiting from the increase in prices as rates fall. Looking at the history of the Bloomberg Aggregate Bond Index since 1988, in the previous five Federal Reserve (Fed) rate-cutting cycles, the index posted annualized returns averaging north of 8%.
06.13.2024 • Andrew Richman, CTFA
When It Comes to Fed Policy, Follow the Data, Not the Dots
Andy Richman's update on the June Federal Open Market Committee meeting.
06.05.2024 • Charles Wittmann, CFA®
The Lead - "An Indicator of Business Confidence"
- Several notable companies have elected to inaugurate a quarterly dividend this year, while 47 companies in the U.S. stopped paying dividends during the COVID-19 crisis and have yet to reinstitute one. Why? - We would suggest it comes down to the ability to pay an ever-increasing dividend alongside their confidence in their business’s future. - In the current period of fewer dividend initiations, slower dividend growth in the market, and household names cutting their dividends, we believe there are several lessons to learn.
05.31.2024
Today Sterling Capital announces the resignation of Shawn M. Gallagher, CFA®, Co-Portfolio Manager of the firm’s Mid Cap Relative Value and Real Estate strategies, effective immediately. Andrew T. DiZio, CFA®, who served as Co-Portfolio Manager on both strategies, will now serve as sole Portfolio Manager for both strategies, effective immediately.
05.07.2024 • Charles Wittmann, CFA®
The Lead - "Dividends for Offense and Defense"
- What could be a catalyst for dividend yielding equities in 2024? - We discuss three considerations: inexpensive valuations relative to history; valuations for dividend yield versus growth; and how both have a history of performing well after positive economic surprises. - Why do dividend payers perform well as the economy surprises to the upside? We provide several possible reasons.
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