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Short Duration Bond Fund

Mutual Funds

Short Duration Bond Fund


Fund Managers

Photo of Mark  Montgomery

Mark Montgomery, CFA®

Photo of Peter  Brown

Peter Brown, CFA®

Overview

A
Shares

BSGAX

Inception
Date

11.30.1992

Investment
Min.

$1,000

Subsequent
Investment Min.1

N/A

Max. Up Front
Sales Charge

2%

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 between 1-3 years with focus on high quality and risk management
  • Have flexibility in creating higher yielding total return portfolio while reducing interest rate sensitivity, protecting principal and allowing for return potential
  • 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.

Fund Facts

Term Class A Shares Class C Shares Class I Shares Class R6 Shares
Ticker BSGAXBBSCXBBSGXSHTRX
Inception Date 11.30.199202.01.201211.30.199202.01.2021
Investment Min. $1,000$1,000$1,000,000N/A
Subsequent Investment Min.2 N/AN/AN/AN/A
Max. Up Front Sales Charge 2%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.

Short Duration Bond Fund

Management

View professional designations disclosures

Photo of Mark  Montgomery

Mark Montgomery, CFA®

Co-Portfolio Manager

Photo of Peter  Brown

Peter Brown, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 09.30.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 2.00% Sales Charge -1.21% 0.26% 1.60% -0.90% 1.07% 1.05% 2.97%
A Shares without Sales Charge 0.85% 2.35% 3.62% -0.22% 1.47% 1.26% 3.03%
Institutional Shares 1.04% 2.67% 3.87% 0.03% 1.73% 1.51% 3.28%
Lipper Short Investment Grade Median 0.85% 2.50% 3.80% -0.26% 1.34% 1.26% N/A

The total expense ratios for Class A, C, and I Shares are 0.67%, 1.42% and 0.42%, respectively. The gross expense ratio for Class R6 Shares is 0.42%. The net expense ratio for Class R6 Shares is 0.33%.

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 performance of the Short Duration Bond 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 11.30.1992. The inception date for Class C Shares is 02.01.2012. The inception date for Class Inst'l Shares is 11.30.1992. The inception date for Class R6 Shares is 02.01.2021. Performance for Class C Shares for periods prior to inception is based on the performance of Class A Shares of the Fund. The performance shown reflects the reinvestment of all dividend and capital gains distributions.

Characteristics

Quality Breakdown as of 09.30.2023

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.

Effective Duration as of 09.30.2023

Name Value
0-1 Yr. 29.0
1-2 Yr. 25.0
2-3 Yr. 42.0
3-5 Yr. 2.0

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

Summary Statistics as of 09.30.2023

Name Value
Number of Holdings 145
Average Life 1.91 Years
Effective Duration 1.71 Years
Annual Turnover 104%

Portfolio Composition as of 09.30.2023

Composition Fund Index
Corporate 58.7% 24.6%
    Financial Institutions 26.9% 12.4%
    Industrial 26.7% 11.0%
    Utility 5.2% 1.2%
Government Related 4.1% 8.9%
    Agency 0.8% 5.0%
    Local Authority 3.3% 0.6%
Securitized 29.6% 0.0%
    ABS 21.1% 0.0%
    CMBS 6.5% 0.0%
    CMO 2.0% 0.0%
Treasury 4.5% 64.5%
    Treasury 4.5% 64.5%
Cash 3.1% 0.0%
    Cash 3.1% 0.0%

Top Ten Holdings as of 09.30.2023

# Company Name Value
1 U.S. Treasury 3.0% 15-Jul-2025 1.90%
2 U.S. Treasury 3.625% 15-May-2026 1.65%
3 Enterprise 2021-1 LLC 0.7% 20-DEC-2026 1.38%
4 World Omni Select 2023-A 5.65% 17-JUL-2028 1.34%
5 Ford Credit 2020-REV2 1.06% 15-APR-2033 1.31%
6 Enterprise 2023-1 LLC 5.42% 20-OCT-2029 1.12%
7 CarMax 2022-4 5.34% 16-AUG-2027 1.11%
8 Hertz III SERIES 2021-2 1.68% 25-DEC-2027 1.09%
9 Reliance Global Funding II 5.243% 02-FEB-2026 1.07%
10 COMM 2014-LC15 Mortgage 4.006% 12-APR-2047 1.05%

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

Growth of $10,000 as of 09.30.2023

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 09.30.2023. It includes the reinvestment of dividends and capital gains.

Distribution

Monthly Dividend Distribution as of 11.30.2023

Month Class A Shares Class C Shares Class Inst'l Shares Class R6 Shares
November 2023 $0.0257 $0.0208 $0.0274 $0.0280
October 2023 $0.0242 $0.0190 $0.0259 $0.0265
September 2023 $0.0236 $0.0186 $0.0253 $0.0259
August 2023 $0.0231 $0.0179 $0.0249 $0.0255
July 2023 $0.0225 $0.0173 $0.0242 $0.0249
June 2023 $0.0210 $0.0160 $0.0227 $0.0233
May 2023 $0.0203 $0.0151 $0.0220 $0.0227
April 2023 $0.0187 $0.0137 $0.0204 $0.0210
March 2023 $0.0186 $0.0134 $0.0203 $0.0209
February 2023 $0.0161 $0.0114 $0.0176 $0.0182
January 2023 $0.0161 $0.0108 $0.0178 $0.0184
December 2022 $0.0166 $0.0115 $0.0184 $0.0190

30-Day SEC Yield as of 10.31.2023

Share Class Without Waivers With Waivers
Class A 4.71% 4.82%
Class C 4.06% 4.17%
Class I 5.08% 5.19%
Class R6 5.06% 5.07%

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