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Intermediate U.S. Government Fund

Mutual Funds

Intermediate U.S. Government Fund

Overall Morningstar Rating™
Morningstar Category: Intermediate Government

4 Star Overall Rating

Based on risk-adjusted BBGVX returns among 228 funds as of 09.30.2024.

Overview

I
Shares

BBGVX

Inception
Date

10.09.1992

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

The Fund seeks current income consistent with the preservation of capital.

The Fund invests, under normal market conditions, in U.S. government securities, some of which may be subject to repurchase agreements, or in "high grade" (rated at the time of purchase in one of the three highest rating categories by a nationally recognized statistical rating organization or are determined by the portfolio manager to be of comparable quality) mortgage-backed securities, including collateralized mortgage obligations.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline and an investor may lose money. The fund may invest in mortgage-backed securities which tend to be more sensitive to changes in interest rates. The fund invests in U.S. government securities or its agencies (such as Fannie Mae or Freddie Mac securities). Although U.S. government securities issued directly by the U.S. government are guaranteed by the U.S. Treasury, other U.S. government securities issued by an agency or instrumentality of the U.S. government may not be. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

Fund Facts

Term Class A Shares Class C Shares Class I Shares
Ticker BGVAXBIUCXBBGVX
Inception Date 10.09.199202.01.200110.09.1992
Investment Min. $1,000$1,000$1,000,000
Subsequent Investment Min.2 N/AN/AN/A
Max. Up Front Sales Charge 2%N/AN/A
Max. Deferred Sales Charge N/A1%N/A

2If subsequent investments are made as part of an AIP, the minimum is $25.

Intermediate U.S. Government Fund

Management

View professional designations disclosures

Photo of Jeffrey  Ormsby

Jeffrey Ormsby, CFA®

Co-Portfolio Manager

Photo of Michael  Sun

Michael Sun, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 09.30.2024

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 2.00% Sales Charge 2.21% 2.34% 7.52% -1.36% -0.15% 0.74% 3.49%
A Shares without Sales Charge 4.24% 4.45% 9.72% -0.69% 0.25% 0.95% 3.56%
Institutional Shares 4.30% 4.65% 9.86% -0.44% 0.48% 1.18% 3.81%
Lipper Intermediate U.S. Gov't 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 0.75%, 1.50% and 0.50%, respectively.

The Advisor has contractually agreed to limit certain fees paid by the Fund from 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 Intermediate U.S. Government 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 10.09.1992. The inception date for Class C Shares is 02.01.2001. The inception date for Class Inst'l Shares is 10.09.1992. The performance shown reflects the reinvestment of all dividend and capital gains distributions. Performance is annualized for periods greater than one year.

Performance of Institutional Shares prior to inception is based on the performance of Class S Shares of the Fund which were re-designated as Institutional Shares as of 02.01.2013.

Characteristics

Quality Breakdown as of 06.30.2024

Credit quality ratings using Moody's rating symbols reflect the credit quality of the underlying bonds in the fund portfolio and not of the Fund itself. Moody's assigns a range of ratings from AAA being the highest quality to C being the lowest rated class of bonds. Securities not rated by Moody's may be rated by S&P, Fitch or if no agency rating is available, the Fund will assign a rating of not rated. Bond quality ratings are subject to change.

Effective Duration Breakdown as of 09.30.2024

Name Value
0-1 Yr. 5.50
1-2 Yr. 6.39
2-3 Yr. 9.02
3-4 Yr. 21.17
4-5 Yr. 12.09
5-6 Yr. 17.90
6-7 Yr. 21.10
7-8 Yr. 5.60
8-9 Yr. 1.23
9-10 Yr. 0.00
10+ Yr. 0.00

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

Summary Statistics as of 09.30.2024

Name Value
Number of Holdings 97
Average Life 5.48 Years
Effective Duration 4.48 Years
Annual Turnover 8%

Portfolio Composition as of 06.30.2024

Composition Fund Index
Government Related 13.7% 2.4%
    Agency 13.2% 2.4%
    Local Authority 0.5% 0.0%
Securitized 79.0% 0.0%
    MBS 0.5% 0.0%
    ABS 2.0% 0.0%
    CMBS 20.5% 0.0%
    CMO 22.9% 0.0%
    MBS Passthrough 33.0% 0.0%
Treasury 7.1% 97.6%
    Treasury 7.1% 97.6%
Cash 0.2% 0.0%
    Cash 0.2% 0.0%

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.

Distribution

Monthly Dividend Distribution as of 07.31.2024

Month Class A Shares Class C Shares Class Inst'l Shares
July 2024 $0.0212 $0.0157 $0.0230
June 2024 $0.0263 $0.0209 $0.0280
May 2024 $0.0281 $0.0227 $0.0299
April 2024 $0.0256 $0.0203 $0.0274
March 2024 $0.0260 $0.0206 $0.0279
February 2024 $0.0254 $0.0201 $0.0271
January 2024 $0.0251 $0.0197 $0.0270
December 2023 $0.0195 $0.0140 $0.0214
November 2023 $0.0195 $0.0143 $0.0212
October 2023 $0.0194 $0.0141 $0.0211

30-Day SEC Yield as of 07.31.2024

Share Class Without Waivers With Waivers
Class A 2.40% 2.58%
Class C 1.71% 1.89%
Class I 2.69% 2.88%

Fixed Income Funds

Insights

10.01.2024 • Charles Wittmann, CFA®

The Lead - Margin of Upside

- 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.

09.12.2024 • Will Smith, CFA®

Down but Not Out: Why Mid-Cap Value Appears Increasingly Attractive

For almost a decade, large-cap growth has been a dominant factor driving market returns. However, we see mounting evidence mid-cap value stocks are due for a comeback. We have long argued mid caps are a potential “sweet spot” for investors. We believe they boast better liquidity, stronger balance sheets, and more durable competitive advantages than small-cap peers and are often more nimble, focused, and less well covered by the sell side than large caps.

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.

Contact

Learn more about Sterling Capital solutions and services.

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