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 | 0.80% | 2.83% | 5.77% | 1.35% | 1.76% | 1.72% | 3.12% |
| A Shares without Sales Charge | 2.87% | 4.94% | 7.98% | 2.05% | 2.18% | 1.93% | 3.19% |
| Institutional Shares | 3.06% | 5.13% | 8.24% | 2.30% | 2.44% | 2.18% | 3.43% |
| Lipper Short Investment Grade Median | 2.97% | 4.94% | 8.06% | 1.77% | 2.06% | 1.89% | N/A |
The total expense ratios for Class A, C, and I Shares are 0.73%, 1.48% and 0.48%, respectively. The gross expense ratio for Class R6 Shares is 0.48%. The net expense ratio for Class R6 Shares is 0.38%.
The Fund Administrator, Sterling Capital Management LLC, has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund .10% of the Class R6 avg. daily net assets for the period 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 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 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. | 15.22 |
| 1-2 Yr. | 44.69 |
| 2-3 Yr. | 38.26 |
| 3-4 Yr. | 0.58 |
| 4-5 Yr. | 0.00 |
| 5-6 Yr. | 1.25 |
| 6-7 Yr. | 0.00 |
| 7-8 Yr. | 0.00 |
| 8-9 Yr. | 0.00 |
| 9-10 Yr. | 0.00 |
| 10+ Yr. | 0.00 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 119 |
| Average Life | 1.95 Years |
| Effective Duration | 1.75 Years |
| Annual Turnover | 104% |
| Composition | Fund | Index |
|---|---|---|
| Corporate | 63.3% | 25.6% |
| Financial Institutions | 35.3% | 12.4% |
| Industrial | 22.4% | 11.9% |
| Utility | 5.7% | 1.3% |
| Government Related | 0.3% | 4.4% |
| Agency | 0.0% | 3.9% |
| Local Authority | 0.3% | 0.6% |
| Securitized | 34.1% | 0.0% |
| ABS | 22.3% | 0.0% |
| ARM | 0.8% | 0.0% |
| CMBS | 7.2% | 0.0% |
| CMO | 3.7% | 0.0% |
| Treasury | 2.2% | 0.0% |
| Treasury | 2.2% | 70.0% |
| Cash | 0.2% | 70.0% |
| Cash | 0.2% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | Hertz Vehicle Financing Iii Series 2021-2 1.68% 25-Dec-2027 | 2.65% |
| 2 | Enterprise Fleet Financing 2023-1 Llc 5.42% 20-Oct-2029 | 2.64% |
| 3 | Santander Drive Auto Receivables Trust 2024-1 5.23% 15-Dec-2028 | 1.89% |
| 4 | Syn Card Issua Tr 2023-1 5.54% 15-Jul-2029 | 1.81% |
| 5 | U.S. Treasury 4.5% 15-Apr-2027 | 1.69% |
| 6 | Onemain Financial Issuance Trust 2022-3 5.94% 15-May-2034 | 1.55% |
| 7 | Wells Fargo Bank, N.A. 5.254% 11-Dec-2026 | 1.48% |
| 8 | Avis Budget Rental Car Funding Series 2020-2 2.02% 20-Feb-2027 | 1.39% |
| 9 | OPG 2021-PORT C 144A | 1.32% |
| 10 | Avis Budget Rental Car Funding (aesop) Llc 5.44% 20-Feb-2028 | 1.32% |
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 | Class R6 Shares |
|---|---|---|---|---|
| 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 |
| February 2024 | $0.0275 | $0.0226 | $0.0291 | $0.0298 |
| January 2024 | $0.0281 | $0.0229 | $0.0298 | $0.0305 |
| December 2023 | $0.0348 | $0.0296 | $0.0365 | $0.0372 |
| November 2023 | $0.0257 | $0.0208 | $0.0274 | $0.0280 |
| Share Class | Without Waivers | With Waivers |
|---|---|---|
| Class A | 3.81% | 3.81% |
| Class C | 3.13% | 3.13% |
| Class I | 4.14% | 4.14% |
| Class R6 | 4.14% | 4.24% |
Short Duration Bond Fund
Materials
Fixed Income Funds
Insights
11.18.2024 • Andrew Richman, CTFA
Fed Begins to Ease... Rates Rise?
Andy Richman's update on the November Federal Open Market Committee meeting.
11.05.2024 • Charles Wittmann, CFA®
- We have shared the qualities we seek in the companies we invest in and how we research their perceived competitive advantage, but what advantage can an investor have? - As investment timeframes have become more short term, we have found the long end of the equity yield curve is less competitive and may “yield” more opportunities. - The concept of the equity yield curve is helpful to visualize how patience can create value.
10.01.2024 • Charles Wittmann, CFA®
- One of the most common mental shortcuts is regression to the mean, or the idea that outcomes far from average will revert to average over time. - Where did the idea come from, is it true in every case, and can it create a greater understanding and yield profitable insights? - Finally, if there are advantaged companies that challenge this assumption as the economy has evolved, what valuations will the market typically award them?
09.30.2024
Sterling Capital Equity Portfolio Management Updates
Sterling Capital announces the creation of the Insight Equity Group, combining the firm's Fundamental Equity and Relative Value teams, along with the April 2025 retirement of Patrick Rau, CFA®/.
09.18.2024 • Brandon Carl, CFA®
U.S. Equity Market Performance Following the First Fed Funds Rate Cut
After two and a half years of battling elevated inflation with aggressive monetary policy tightening measures, the Federal Reserve (Fed) finally reduced the federal funds target rate range (fed funds rate) by 50 basis points during its September 2024 meeting. With recent inflation indicators seemingly within the Fed’s comfort zone, coupled with an increasing emphasis on supporting the labor market, we believe it’s highly likely that additional rate cuts are forthcoming.
09.12.2024 • Will Smith, CFA®
Down but Not Out: Why Mid-Cap Value Appears Increasingly Attractive
For almost a decade, large-cap growth has been a dominant factor driving market returns. However, we see mounting evidence mid-cap value stocks are due for a comeback. We have long argued mid caps are a potential “sweet spot” for investors. We believe they boast better liquidity, stronger balance sheets, and more durable competitive advantages than small-cap peers and are often more nimble, focused, and less well covered by the sell side than large caps.
Contact
Learn more about Sterling Capital solutions and services.
