Overview
I
Shares
SCSPX
Inception
Date
02.01.2013
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
In managing the fund, the portfolio management team employs a multi-faceted approach to generate excess return and uses a combination of top-down and bottom-up analysis, quantitative vs. qualitative analysis and fundamentals vs. valuation. There is a strong emphasis on risk management and an adherence to certain core investment beliefs:
- "If you cannot measure it, you cannot manage it."
- Avoid unintended exposures
- Average duration around 2 to 5 years with focus on high quality and risk management
- Participate in longer term trends - don't buy on short-term trends or try to time what is going on in the market
- Attempts to achieve risk-adjusted performance over time
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. The fund may invest in more aggressive investments such as foreign securities which may expose the fund to currency and exchange rate fluctuations; derivatives (futures and swaps); mortgage backed securities sensitive to interest rates and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
| Term | Class A Shares | Class C Shares | Class I Shares |
|---|---|---|---|
| Ticker | SCSSX | SCSTX | SCSPX |
| Inception Date | 02.01.2013 | 02.01.2013 | 02.01.2013 |
| Investment Min. | $1,000 | $1,000 | $1,000,000 |
| Subsequent Investment Min.2 | N/A | N/A | N/A |
| Max. Up Front Sales Charge | 2% | N/A | N/A |
| Max. Deferred Sales Charge | N/A | 1% | N/A |
2If subsequent investments are made as part of an AIP, the minimum is $25.
Co-Portfolio Manager
Co-Portfolio Manager
Co-Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares with 2.00% Sales Charge | 0.21% | 0.21% | -5.20% | -2.55% | 0.28% | 1.03% | 1.53% |
| A Shares without Sales Charge | 2.25% | 2.25% | -3.31% | -1.88% | 0.68% | 1.24% | 1.71% |
| Institutional Shares | 2.20% | 2.20% | -3.16% | -1.70% | 0.91% | 1.49% | 1.92% |
| Lipper U.S. Mortgage Median | 2.51% | 2.51% | -5.20% | -2.63% | 0.11% | 0.86% | N/A |
The gross expense ratios for Class A, C and I Shares are 0.88%, 1.63% and 0.63%, respectively. The net expense ratios for Class A, C and I Shares are 0.84%, 1.59% and 0.59%, respectively.
The Advisor has contractually agreed to limit certain fees paid by the Fund from 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 Securitized Opportunities 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 02.01.2013. The inception date for Class C Shares is 02.01.2013. The inception date for Class Inst'l Shares is 02.01.2013. Performance for Class A Shares, Class C Shares and Institutional Shares for periods prior to inception on February 1, 2013 is based on performance of Class S Shares of the Fund which were re-designated as Institutional Shares as of February 1, 2013. Class A Shares, 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 performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
Quality Breakdown as of 03.31.2023
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.
| Name | Value |
|---|---|
| 0-1 Yr. | 11.0 |
| 1-2 Yr. | 8.0 |
| 2-3 Yr. | 7.0 |
| 3-5 Yr. | 26.0 |
| 5-10 Yr. | 42.0 |
| 10+ Yrs. | 3.0 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 237 |
| Average Life | 6.73 Years |
| Effective Duration | 4.80 Years |
| Annual Turnover | 16% |
| Composition | Fund | Index |
|---|---|---|
| Corporate | 0.5% | 0.0% |
| Industrial | 0.5% | 0.0% |
| Securitized | 94.2% | 100.0% |
| ABS | 16.8% | 0.0% |
| CMBS | 22.4% | 0.0% |
| CMO | 19.0% | 0.0% |
| MBS Passthrough | 35.9% | 100.0% |
| Treasury | 4.6% | 0.0% |
| Treasury | 4.6% | 0.0% |
| [Cash] | 0.2% | 0.0% |
| [Cash] | 0.2% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | U.S. Treasury 2.375% 15-Feb-2042 | 2.12% |
| 2 | Fnma 30Yr Pool#Fs1976 4.000% 01-Aug-2051 | 1.51% |
| 3 | Avis Budget Rental Car Funding Aesop Llc | 1.46% |
| 4 | Fhlmc 30Yr Pool#Sd1515 4.500% 01-Aug-2052 | 1.38% |
| 5 | Hertz Vehicle Financing Iii Series 2021-2 1.68% 25-Dec-2027 | 1.34% |
| 6 | Fhlmc 30Yr Pool#Qf8052 5.500% 01-Feb-2053 | 1.19% |
| 7 | Freddie Mac Remics | 1.17% |
| 8 | Benchmark 2020-B21 Mortgage Trust 1.978% 17-Dec-2053 | 1.17% |
| 9 | Fhlmc 30Yr Pool#Sd1727 5.000% 01-Nov-2052 | 1.16% |
| 10 | Fnma, Series 2013-30, Class Py | 1.16% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
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.
Distribution
| Month | Class A Shares | Class C Shares | Class Inst'l Shares |
|---|---|---|---|
| May 2023 | $0.0208 | $0.0154 | $0.0228 |
| April 2023 | $0.0202 | $0.0151 | $0.0221 |
| March 2023 | $0.0201 | $0.0145 | $0.0220 |
| February 2023 | $0.0194 | $0.0146 | $0.0211 |
| January 2023 | $0.0187 | $0.0134 | $0.0207 |
| December 2022 | $0.0186 | $0.0135 | $0.0205 |
| November 2022 | $0.0180 | $0.0133 | $0.0199 |
| October 2022 | $0.0175 | $0.0125 | $0.0194 |
| September 2022 | $0.0159 | $0.0110 | $0.0177 |
| August 2022 | $0.0164 | $0.0111 | $0.0184 |
| July 2022 | $0.0160 | $0.0108 | $0.0180 |
| June 2022 | $0.0155 | $0.0105 | $0.0174 |
| Share Class | Without Waivers | With Waivers |
|---|---|---|
| Class A | 2.80% | 2.84% |
| Class C | 2.08% | 2.12% |
| Class I | 3.10% | 3.14% |
Quality Income Fund
Materials
Fixed Income Funds
Insights
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.
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.
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.
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.
© 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.
