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Short Duration Bond Fund

Mutual Funds

Short Duration Bond Fund

Overall Morningstar Rating™
Morningstar Category: Short-Term Bond

4 Star Overall Rating

Based on risk-adjusted BBSGX returns among 540 funds as of 01.31.2023.

Overview

I
Shares

BBSGX

Inception
Date

11.30.1992

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

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. $1,000,000$1,000,000$1,000,000$1,000,000
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 12.31.2022

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 2.00% Sales Charge -0.74% -5.39% -5.39% -0.62% 0.71% 0.86% 2.96%
A Shares without Sales Charge 1.23% -3.41% -3.41% 0.06% 1.13% 1.06% 3.03%
Institutional Shares 1.17% -3.18% -3.18% 0.27% 1.36% 1.30% 3.27%
Lipper Short Investment Grade Median 1.13% -4.50% -4.50% -0.28% 0.95% 0.97% 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 12.31.2022

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 12.31.2022

Name Value
0-1 Yr. 21.0
1-2 Yr. 57.0
2-3 Yr. 21.0
3-5 Yr. 0.0
5-10 Yr. 0.0

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

Summary Statistics as of 12.31.2022

Name Value
Number of Holdings 149
Average Life 1.74 Years
Effective Duration 1.54 Years
Annual Turnover 118%

Portfolio Composition as of 12.31.2022

Composition Fund Index
Corporate 40.7% 24.4%
    Financial Institutions 21.3% 11.3%
    Industrial 16.0% 12.0%
    Utility 3.4% 1.1%
Government Related 5.9% 8.8%
    Agency 2.0% 5.2%
    Local Authority 3.9% 0.6%
Securitized 29.7% 0.0%
    ABS 18.1% 0.0%
    CMBS 9.2% 0.0%
    CMO 2.4% 0.0%
Treasury 21.5% 66.8%
    Treasury 21.5% 66.8%
[Cash] 2.2% 0.0%
    [Cash] 2.2% 0.0%

Top Ten Holdings as of 12.31.2022

# Company Name Value
1 U.S. Treasury 1.125% 15-Jan-2025 14.68%
2 U.S. Treasury 3.0% 15-Jul-2025 4.11%
3 U.S. Treasury 3.0% 30-Jun-2024 2.87%
4 FHLB System 4.875% 14-Jun-2024 2.00%
5 Americredit Auto Tr 0.68% 19-Oct-2026 1.61%
6 Verizon Master Tr 0.5% 20-May-2027 1.10%
7 Hetrz Vehicle Leasing 1.21% 25-DEC-2025 1.08%
8 Enterprise Fleet Financing 0.7% 20-DEC-2026 1.02%
9 Ford Credit Auto Owner Tr 1.06% 15-APR-2033 0.99%
10 World Omni Auto Receivables Tr 5.61% 15-FEB-2028 0.93%

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

Growth of $10,000 as of 12.31.2022

Date A-Shares ICE BofA ML U.S. Corp/Govt 1-3Y Index
12.31.2022 $11,112 (Up $50) $10,931 (Up $25)
10.31.2022 $11,062 (Up $85) $10,906 (Up $72)
09.30.2022 $10,977 (Up $5) $10,834 (Up $15)
09.30.2022 $10,972 (Down $135) $10,819 (Down $151)
07.31.2022 $11,107 (Down $47) $10,970 (Down $76)
06.30.2022 $11,154 (Up $73) $11,046 (Up $47)
06.30.2022 $11,081 (Down $89) $10,999 (Down $71)
04.30.2022 $11,170 (Down $68) $11,070 (Up $2)
03.31.2022 $11,238 (Up $88) $11,068 (Up $59)
03.31.2022 $11,150 (Down $203) $11,009 (Down $219)
01.31.2022 $11,353 (Down $152) $11,228 (Down $133)
12.31.2021 $11,505 (Up $89) $11,361 (Up $77)
12.31.2021 $11,416 (Down $83) $11,284 (Down $100)
10.31.2021 $11,499 (Down $59) $11,384 (Down $38)
09.30.2021 $11,558 (Up $36) $11,422 (Up $35)
09.30.2021 $11,522 (Down $44) $11,387 (Down $45)
07.31.2021 $11,566 (Down $8) $11,432 (Up $1)
06.30.2021 $11,574 (Up $19) $11,431 (Up $19)
06.30.2021 $11,555 (Down $8) $11,412 (Down $15)
04.30.2021 $11,563 (Up $20) $11,427 (Up $12)
03.31.2021 $11,543 (Up $20) $11,415 (Up $10)
03.31.2021 $11,523 (Down $7) $11,405 (Down $0)
01.31.2021 $11,530 (Down $9) $11,405 (Down $6)
12.31.2020 $11,539 (Up $6) $11,411 (Up $3)
12.31.2020 $11,533 (Up $31) $11,408 (Up $10)
10.31.2020 $11,502 (Up $45) $11,398 (Up $14)
09.30.2020 $11,457 (Up $6) $11,384 (Up $2)
09.30.2020 $11,451 (Down $6) $11,382 (Up $2)
07.31.2020 $11,457 (Up $34) $11,380 (Up $6)
06.30.2020 $11,423 (Up $60) $11,374 (Up $23)
06.30.2020 $11,363 (Up $99) $11,351 (Up $26)
04.30.2020 $11,264 (Up $125) $11,325 (Up $39)
03.31.2020 $11,139 (Up $201) $11,286 (Up $71)
03.31.2020 $10,938 (Down $287) $11,215 (Up $28)
01.31.2020 $11,225 (Up $72) $11,187 (Up $88)
12.31.2019 $11,153 (Up $61) $11,099 (Up $60)
12.31.2019 $11,092 (Up $22) $11,039 (Up $27)
10.31.2019 $11,070 (Up $9) $11,012 (Up $1)
09.30.2019 $11,061 (Up $36) $11,011 (Up $39)
09.30.2019 $11,025 (Down $3) $10,972 (Down $6)
07.31.2019 $11,028 (Up $87) $10,978 (Up $82)
06.30.2019 $10,941 (Up $1) $10,896 (Up $5)
06.30.2019 $10,940 (Up $61) $10,891 (Up $57)
04.30.2019 $10,879 (Up $62) $10,834 (Up $72)
03.31.2019 $10,817 (Up $37) $10,762 (Up $25)
03.31.2019 $10,780 (Up $62) $10,737 (Up $71)
01.31.2019 $10,718 (Up $36) $10,666 (Up $18)
12.31.2018 $10,682 (Up $62) $10,648 (Up $41)
12.31.2018 $10,620 (Up $37) $10,607 (Up $80)
10.31.2018 $10,583 (Up $11) $10,527 (Up $42)
09.30.2018 $10,572 (Down $0) $10,485 (Down $12)
09.30.2018 $10,572 (Up $10) $10,497 (Up $6)
07.31.2018 $10,562 (Up $35) $10,491 (Up $36)
06.30.2018 $10,527 (Up $23) $10,455 (Up $7)
06.30.2018 $10,504 (Down $3) $10,448 (Up $2)
04.30.2018 $10,507 (Up $35) $10,446 (Up $38)
03.31.2018 $10,472 (Up $10) $10,408 (Down $10)
03.31.2018 $10,462 (Down $3) $10,418 (Up $16)
01.31.2018 $10,465 (Down $42) $10,402 (Down $35)
12.31.2017 $10,507 (Up $15) $10,437 (Up $26)
12.31.2017 $10,492 (Down $5) $10,411 (Down $22)
10.31.2017 $10,497 (Down $27) $10,433 (Down $21)
09.30.2017 $10,524 (Up $10) $10,454 (Down $2)
09.30.2017 $10,514 (Down $2) $10,456 (Down $12)
07.31.2017 $10,516 (Up $21) $10,468 (Up $20)
06.30.2017 $10,495 (Up $33) $10,448 (Up $28)
06.30.2017 $10,462 (Down $2) $10,420 (Down $4)
04.30.2017 $10,464 (Up $32) $10,424 (Up $17)
03.31.2017 $10,432 (Up $21) $10,407 (Up $18)
03.31.2017 $10,411 (Up $9) $10,389 (Up $5)
01.31.2017 $10,402 (Up $19) $10,384 (Up $18)
12.31.2016 $10,383 (Up $32) $10,366 (Up $18)
12.31.2016 $10,351 (Up $10) $10,348 (Up $6)
10.31.2016 $10,341 (Down $67) $10,342 (Down $46)
09.30.2016 $10,408 (Up $16) $10,388 (Up $4)
09.30.2016 $10,392 (Up $5) $10,384 (Up $7)
07.31.2016 $10,387 (Down $3) $10,377 (Down $11)
06.30.2016 $10,390 (Up $8) $10,388 (Up $2)
06.30.2016 $10,382 (Up $68) $10,386 (Up $62)
04.30.2016 $10,314 (Down $2) $10,324 (Down $7)
03.31.2016 $10,316 (Up $44) $10,331 (Up $14)
03.31.2016 $10,272 (Up $58) $10,317 (Up $36)
01.31.2016 $10,214 (Up $10) $10,281 (Up $11)
12.31.2015 $10,204 (Up $23) $10,270 (Up $53)
12.31.2015 $10,181 (Down $24) $10,217 (Down $14)
10.31.2015 $10,205 (Down $12) $10,231 (Down $20)
09.30.2015 $10,217 (Up $12) $10,251 (Down $2)
09.30.2015 $10,205 (Up $11) $10,253 (Up $30)
07.31.2015 $10,194 (Down $11) $10,223 (Down $7)
06.30.2015 $10,205 (Up $1) $10,230 (Up $6)
06.30.2015 $10,204 (Down $22) $10,224 (Down $2)
04.30.2015 $10,226 (Up $13) $10,226 (Up $9)
03.31.2015 $10,213 (Up $2) $10,217 (Up $8)
03.31.2015 $10,211 (Up $26) $10,209 (Up $22)
01.31.2015 $10,185 (Up $1) $10,187 (Down $13)
12.31.2014 $10,184 (Up $37) $10,200 (Up $51)
12.31.2014 $10,147 (Down $30) $10,149 (Down $28)
10.31.2014 $10,177 (Up $4) $10,177 (Up $15)
09.30.2014 $10,173 (Up $26) $10,162 (Up $27)
09.30.2014 $10,147 (Down $20) $10,135 (Down $7)
07.31.2014 $10,167 (Down $5) $10,142 (Up $9)
06.30.2014 $10,172 (Up $19) $10,133 (Up $9)
06.30.2014 $10,153 (Down $16) $10,124 (Down $11)
04.30.2014 $10,169 (Up $26) $10,135 (Up $23)
03.31.2014 $10,143 (Up $14) $10,112 (Up $17)
03.31.2014 $10,129 (Down $6) $10,095 (Down $9)
01.31.2014 $10,135 (Up $23) $10,104 (Up $14)
12.31.2013 $10,112 (Up $36) $10,090 (Up $20)
12.31.2013 $10,076 (Down $18) $10,070 (Down $12)
10.31.2013 $10,094 (Up $24) $10,082 (Up $13)
09.30.2013 $10,070 (Up $36) $10,069 (Up $18)
09.30.2013 $10,034 (Up $35) $10,051 (Up $27)
07.31.2013 $9,999 (Down $7) $10,024 (Down $6)
06.30.2013 $10,006 (Up $48) $10,030 (Up $22)
06.30.2013 $9,958 (Down $67) $10,008 (Down $16)
04.30.2013 $10,025 (Down $38) $10,024 (Down $14)
03.31.2013 $10,063 (Up $27) $10,038 (Up $16)
03.31.2013 $10,036 (Up $6) $10,022 (Up $5)
01.31.2013 $10,030 (Up $14) $10,017 (Up $11)
12.31.2012 $10,016 (Up $16) $10,006 (Up $6)
12.31.2012 $10,000 $10,000

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2022. It includes the reinvestment of dividends and capital gains.

Distribution

Monthly Dividend Distribution as of 01.31.2023

Month Class A Shares Class C Shares Class Inst'l Shares Class R6 Shares
January 2023 $0.0161 $0.0108 $0.0178 $0.0184
December 2022 $0.0166 $0.0115 $0.0184 $0.0190
November 2022 $0.0163 $0.0113 $0.0179 $0.0185
October 2022 $0.0162 $0.0110 $0.0179 $0.0185
September 2022 $0.0146 $0.0096 $0.0163 $0.0169
August 2022 $0.0149 $0.0097 $0.0167 $0.0173
July 2022 $0.0143 $0.0091 $0.0160 $0.0167
June 2022 $0.0140 $0.0089 $0.0157 $0.0163
May 2022 $0.0149 $0.0095 $0.0166 $0.0173
April 2022 $0.0145 $0.0094 $0.0162 $0.0169
March 2022 $0.0144 $0.0091 $0.0161 $0.0168
February 2022 $0.0126 $0.0077 $0.0142 $0.0148

30-Day SEC Yield as of 12.31.2022

Share Class Without Waivers With Waivers
Class A 3.88% 3.88%
Class C 3.20% 3.20%
Class I 4.20% 4.20%
Class R6 4.21% 4.30%

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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.

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