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.
Performance
Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
---|---|---|---|---|---|---|---|
A Shares with 2.00% Sales Charge | 2.37% | 2.70% | 8.62% | -1.04% | 0.11% | 1.56% | 1.54% |
A Shares without Sales Charge | 4.44% | 4.76% | 10.77% | -0.39% | 0.52% | 1.77% | 1.72% |
Institutional Shares | 4.62% | 4.95% | 11.04% | -0.13% | 0.77% | 2.02% | 2.29% |
Lipper U.S. Mortgage Median | 8.26% | 13.22% | 20.80% | 17.16% | 5.70% | 5.31% | N/A |
The total expense ratios for Class A, C and I Shares are 0.82%, 1.57% and 0.57%, 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 Quality Income 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. The performance shown reflects the reinvestment of all dividend and capital gains distributions. Performance is annualized for periods greater than one year.
Performance for Class A Shares and Institutional Shares for periods prior to inception on 02.01.2013 is based on performance of Class S Shares of the Fund which were re-designated as Institutional Shares as of 02.01.2013. Class A 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.
Characteristics
Quality Breakdown as of 09.30.2024
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.
Name | Value |
---|---|
0-1 Yr. | 5.81 |
1-2 Yr. | 7.87 |
2-3 Yr. | 5.78 |
3-4 Yr. | 15.97 |
4-5 Yr. | 10.07 |
5-6 Yr. | 17.53 |
6-7 Yr. | 16.66 |
7-8 Yr. | 4.59 |
8-9 Yr. | 5.42 |
9-10 Yr. | 0.49 |
10+ Yr. | 9.81 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Name | Value |
---|---|
Number of Holdings | 214 |
Average Life | 6.86 Years |
Effective Duration | 5.30 Years |
Annual Turnover | 10% |
Composition | Fund | Index |
---|---|---|
Government Related | 0.6% | 0.0% |
Agency | 0.6% | 0.0% |
Securitized | 92.6% | 100.0% |
MBS | 39.1% | 0.0% |
ABS | 10.6% | 0.0% |
CMBS | 18.6% | 0.0% |
CMO | 24.3% | 0.0% |
Treasury | 3.9% | 0.0% |
Treasury | 3.9% | 0.0% |
Cash | 3.0% | 0.0% |
Cash | 3.0% | 0.0% |
# | Company Name | Value |
---|---|---|
1 | U.S. Treasury 2.375% 15-Feb-2042 | 2.35% |
2 | Fhlmc 30yr Pool#zt0541 4.000% 01-jun-2048 | 1.93% |
3 | Fhlmc 30Yr Pool Zt0541 4.000% 01-Jun-2048 | 1.67% |
4 | Fannie Mae Remics | 1.56% |
5 | U.S. Treasury 1.875% 15-nov-2051 | 1.54% |
6 | Fnma 30Yr Pool Fs6616 6.000% 01-Jun-2053 | 1.50% |
7 | Fhlmc 30Yr Pool Sd3223 6.000% 01-Jul-2053 | 1.47% |
8 | Fnma 30Yr Pool Ca6097 3.500% 01-Jun-2050 | 1.47% |
9 | Avis Budget Rental Car Funding (Aesop) Llc 5.49% 20-Jun-2029 | 1.46% |
10 | Fhlmc 30yr PoolRa5921 2.500% 01-sep-2051 | 1.46% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
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.
Distribution
Month | Class A Shares | Class C Shares | Class Inst'l Shares |
---|---|---|---|
July 2024 | $0.0244 | $0.0195 | $0.0263 |
June 2024 | $0.0246 | $0.0195 | $0.0263 |
May 2024 | $0.0245 | $0.0192 | $0.0263 |
April 2024 | $0.0243 | $0.0193 | $0.0260 |
March 2024 | $0.0244 | $0.0192 | $0.0263 |
February 2024 | $0.0242 | $0.0192 | $0.0259 |
January 2024 | $0.0235 | $0.0182 | $0.0254 |
December 2023 | $0.0232 | $0.0181 | $0.0251 |
November 2023 | $0.0230 | $0.0183 | $0.0248 |
Share Class | Without Waivers | With Waivers |
---|---|---|
Class A | 3.13% | 3.17% |
Class C | 2.54% | 2.58% |
Class I | 3.45% | 3.49% |
Quality Income Fund
Materials
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Insights
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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.