Overview
R6
Shares
SHTRX
Inception
Date
02.01.2021
Investment
Min.
N/A
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.
| Term | Class A Shares | Class C Shares | Class I Shares | Class R6 Shares |
|---|---|---|---|---|
| Ticker | BSGAX | BBSCX | BBSGX | SHTRX |
| Inception Date | 11.30.1992 | 02.01.2012 | 11.30.1992 | 02.01.2021 |
| Investment Min. | $1,000 | $1,000 | $1,000,000 | N/A |
| Subsequent Investment Min.2 | N/A | N/A | N/A | N/A |
| Max. Up Front Sales Charge | 2% | N/A | N/A | N/A |
| Max. Deferred Sales Charge | N/A | 1% | N/A | N/A |
2If subsequent investments are made as part of an AIP, the minimum is $25.
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 | -1.65% | 3.17% | 3.17% | 1.61% | 1.71% | 1.76% | 3.11% |
| A Shares without Sales Charge | 0.33% | 5.29% | 5.29% | 2.32% | 2.13% | 1.96% | 3.17% |
| Institutional Shares | 0.40% | 5.55% | 5.55% | 2.61% | 2.38% | 2.21% | 3.42% |
| Lipper Short Investment Grade Median | 5.07% | 14.67% | 17.52% | 6.32% | 6.42% | 4.00% | N/A |
The total expense ratios for Class A, C, and I Shares are 0.84%, 1.59% and 0.59%, respectively. The gross expense ratio for Class R6 Shares is 0.59%. The net expense ratio for Class R6 Shares is 0.48%.
The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund 0.11% of the Class R6 avg. daily net assets for the period 02.01.2025-01.31.2026. 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 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. The performance shown reflects the reinvestment of all dividend and capital gains distributions. Performance is annualized for periods greater than one year.
Characteristics
Quality Breakdown as of 12.31.2024
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. | 16.22 |
| 1-2 Yr. | 52.08 |
| 2-3 Yr. | 28.55 |
| 3-4 Yr. | 1.04 |
| 4-5 Yr. | 0.00 |
| 5-6 Yr. | 0.00 |
| 6-7 Yr. | 0.00 |
| 7-8 Yr. | 1.26 |
| 8-9 Yr. | 0.00 |
| 9-10 Yr. | 0.00 |
| 10+ Yr. | 0.85 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 121 |
| Average Life | 1.95 Years |
| Effective Duration | 1.75 Years |
| Annual Turnover | 104% |
| Composition | Fund | Index |
|---|---|---|
| Corporate | 58.6% | 25.2% |
| Financial Institutions | 33.6% | 12.6% |
| Industrial | 18.9% | 11.4% |
| Utility | 6.2% | 1.3% |
| Government Related | 0.3% | 4.2% |
| Agency | 0.0% | 3.6% |
| Local Authority | 0.3% | 0.6% |
| Securitized | 38.8% | 0.0% |
| ABS | 24.4% | 0.0% |
| ARM | 0.8% | 0.0% |
| CMBS | 10.2% | 0.0% |
| CMO | 3.4% | 0.0% |
| Treasury | 1.0% | 70.6% |
| Treasury | 1.0% | 70.6% |
| Cash | 1.3% | 0.0% |
| Cash | 1.3% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | Hertz Vehicle Financing Iii Series 2021-2 1.68% 25-dec-2027 | 2.76% |
| 2 | Enterprise Fleet Financing 2023-1 Llc 5.42% 20-oct-2029 | 2.74% |
| 3 | Santander Drive Auto Receivables Trust 2024-1 5.23% 15-dec-2028 | 1.96% |
| 4 | SyNCard Issua Tr 2023-1 5.54% 15-jul-2029 | 1.88% |
| 5 | Onemain Financial Issuance Trust 2022-3 5.94% 15-may-2034 | 1.62% |
| 6 | Wells Fargo Bank, N.a. 5.254% 11-dec-2026 | 1.51% |
| 7 | Avis Budget Rental Car Funding Series 2020-2 2.02% 20-feb-2027 | 1.46% |
| 8 | OPG 2021-PORT C 144A | 1.39% |
| 9 | Avis Budget Rental Car Funding (aesop) Llc 5.44% 20-feb-2028 | 1.37% |
| 10 | Morgan Stanley 5.652% 13-apr-2028 | 1.24% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 12.31.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2024. It includes the reinvestment of dividends and capital gains.
Distribution
| Month | Class A Shares | Class C Shares | Class Inst'l Shares | Class R6 Shares |
|---|---|---|---|---|
| February 2025 | $0.0292 | $0.0243 | $0.0308 | $N/A |
| January 2025 | $0.0316 | $0.0263 | $0.0333 | $N/A |
| December 2024 | $0.0340 | $0.0287 | $0.0358 | $N/A |
| July 2024 | $0.0318 | $0.0265 | $0.0336 | $0.0343 |
| June 2024 | $0.0296 | $0.0244 | $0.0312 | $0.0319 |
| May 2024 | $0.0318 | $0.0265 | $0.0335 | $0.0342 |
| April 2024 | $0.0286 | $0.0235 | $0.0302 | $0.0309 |
| March 2024 | $0.0295 | $0.0242 | $0.0310 | $0.0319 |
| Share Class | Without Waivers | With Waivers |
|---|---|---|
| Class A | 4.02% | 4.02% |
| Class C | 3.36% | 3.36% |
| Class I | 4.36% | 4.36% |
| Class R6 | 4.36% | 4.48% |
Short Duration Bond Fund
Materials
Fixed Income Funds
Insights
03.07.2025 • Charles Wittmann, CFA®
- For the past two years, investors have experienced a powerful price momentum-driven market. - Price momentum supported by earnings revisions typically have a tight relationship coming out of a recession, but 2024 was different. - We explore the recent inverse relationship between momentum and dividend payers over this month and the past year.
02.28.2025
Sterling Capital Equity Announcement
Today Sterling Capital Management LLC announced the firm has made the difficult decision to close the Mid Cap Fundamental Value investment strategy.
02.04.2025 • Charles Wittmann, CFA®
- This month, our discussions with clients involved their search for fast dividend growers in the value space. - We analyze the fastest dividend growers in the large cap value universe and ask if they are really growing their dividends or just reinstating them. - We note how we look for both dividend growth and differentiated securities that combine attractive elements of growth, yield, and risk-adjusted returns.
01.27.2025 • Andrew Richman, CTFA
Meet Andrew Richman, Sterling Capital Managing Director and Senior Fixed Income Client Strategist
Sterling Capital is pleased to share this closer look at Andy Richman, Managing Director. In this spotlight, he shares his favorite Sterling tradition, the qualities he thinks are the most important in the investment industry, and the book that really had an impact on him. It’s great to have you on our team, Andy! Thank you for everything you do, and for sharing this with us.
01.15.2025 • Charles Wittmann, CFA®
- 4Q24 generated interesting dynamics in terms of what stocks worked and what didn’t based on quality. - We discuss how low-quality stocks with B or worse ratings outperformed higher-quality stocks of B+ or better by +4.12% in the quarter and +10.50% in 2024. - In addition, unprofitable stocks were top performers during the quarter in the Russell 1000® Value Index. - Finally, we share how managers who were willing to own stocks with risk related to interest rates, the macroeconomy, or higher balance sheet leverage performed in the value space relative to their peers.
12.20.2024 • Andrew Richman, CTFA
Andy Richman's update on the December Federal Open Market Committee meeting.
Contact
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