Mutual Funds
South Carolina Intermediate Tax-Free Fund
Fund Managers
Robert Millikan, CFA®
Michael McVicker
Overview
A
Shares
BASCX
Inception
Date
10.20.1997
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
The Fund seeks current income exempt from federal and South Carolina income taxes consistent with preservation of capital.
In managing the Fund, the team specializes in actively building and managing a high credit quality fixed income portfolio focused on the intermediate segment of the yield curve offering. The team employs a top-down investment process that focuses on: duration management, yield curve strategy and finding the best relative value with limited amount of risk in order to maximize the risk-adjusted total return.
Buy Strategy: We buy high quality, liquid issues and seek the best relative sector and security values available. We attempt to maximize total return and current income while reducing price volatility.
Sell Strategy: We will consider selling a security we own in order to reposition the Fund along the yield curve and adjust the Fund's average maturity or duration. In addition, we might replace a security with one that offers greater potential for total return or when its credit fundamentals are deteriorating.
Investment Considerations
The Funds are subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline, and an investor may lose money. The Funds are non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Funds invest primarily in state-specific municipal obligations of issuers and therefore will be affected by economic, political or other events affecting municipal issuers.
| Term | Class A Shares | Class C Shares | Class I Shares |
|---|---|---|---|
| Ticker | BASCX | BSCCX | BSCIX |
| Inception Date | 10.20.1997 | 02.01.2012 | 10.20.1997 |
| 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.
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 | -0.03% | -0.67% | 4.92% | -1.02% | 0.26% | 1.22% | 3.12% |
| A Shares without Sales Charge | 1.98% | 1.38% | 7.09% | -0.36% | 0.66% | 1.43% | 3.19% |
| Institutional Shares | 2.05% | 1.66% | 7.38% | -0.09% | 0.91% | 1.68% | 3.42% |
| Lipper Other States Intermediate Municipal Median | 3.18% | 3.15% | 10.18% | 0.39% | 1.24% | 2.20% | N/A |
The total expense ratios for Class A, C and I Shares are 0.89%, 1.64% and 0.64%, respectively.
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 South Carolina Intermediate Tax-Free 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 10.20.1997. The inception date for Class C Shares is 02.01.2012. The inception date for Class Inst'l Shares is 10.20.1997. 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. | 9.84 |
| 1-2 Yr. | 8.90 |
| 2-3 Yr. | 10.98 |
| 3-4 Yr. | 7.62 |
| 4-5 Yr. | 6.14 |
| 5-6 Yr. | 9.48 |
| 6-7 Yr. | 11.03 |
| 7-8 Yr. | 18.51 |
| 8-9 Yr. | 7.49 |
| 9-10 Yr. | 10.01 |
| 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 | 31 |
| Average Life | 5.83 Years |
| Effective Duration | 4.85 Years |
| Annual Turnover | 32% |
| Composition | Fund | Index |
|---|---|---|
| General Obligation | 33.4% | 26.8% |
| Pre-Refunded | 5.4% | 2.7% |
| Revenue | 57.1% | 70.5% |
| Cash | 4.0% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | Oconee Cnty SC 5.0% 01-Apr-2041 | 3.91% |
| 2 | Spartanburg Cnty SC Sch Dist No 005 5.0% 01-Mar-2037 | 3.88% |
| 3 | Lugoff-elgin Wtr Auth SC Wtrwks Sys Rev 5.0% 01-Jul-2030 | 3.85% |
| 4 | Greenwood Cnty SC Hosp Rev 5.0% 01-Oct-2032 | 3.83% |
| 5 | Columbia SC Wtrwks & Swr Sys Rev 5.25% 01-Feb-2052 | 3.82% |
| 6 | Spartanburg Cnty SC Sch Dist No 004 5.0% 01-Mar-2040 | 3.80% |
| 7 | Charleston SC Wtrwks & Swr Rev 5.0% 01-Jan-2038 | 3.77% |
| 8 | Columbia SC Wtrwks & Swr Sys Rev 5.0% 01-Feb-2048 | 3.70% |
| 9 | South Carolina Transn Infrastructure Bk Rev 5.0% 01-Oct-2038 | 3.65% |
| 10 | South Carolina Jobs-economic Dev Auth Economic Dev Rev 5.0% 01-Apr-2044 | 3.62% |
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 | $0.0223 | $0.0155 | $0.0244 |
| June 2024 | $0.0213 | $0.0147 | $0.0233 |
| May 2024 | $0.0222 | $0.0155 | $0.0242 |
| April 2024 | $0.0207 | $0.0142 | $0.0227 |
| March 2024 | $0.0213 | $0.0146 | $0.0234 |
| February 2024 | $0.0199 | $0.0136 | $0.0219 |
| January 2024 | $0.0214 | $0.0147 | $0.0235 |
| December 2023 | $0.0215 | $0.0148 | $0.0236 |
| November 2023 | $0.0198 | $0.0134 | $0.0217 |
| October 2023 | $0.0193 | $0.0128 | $0.0213 |
| Share Class | Value |
|---|---|
| Class A | 2.27% |
| Class C | 1.57% |
| Class I | 2.57% |
South Carolina Intermediate Tax-Free Fund
Materials
Fixed Income Funds
Insights
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?
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Sterling Capital Equity Portfolio Management Updates
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U.S. Equity Market Performance Following the First Fed Funds Rate Cut
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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.
09.04.2024 • Charles Wittmann, CFA®
The Lead - Dividend Opportunities
- As we enter September, it appears the Federal Reserve is prepared to lower the federal funds rate at their September 18, 2024 meeting. - Historically, dividend payers have outperformed non-dividend payers after the first cut. - One may question if historically it has been better to own high yielders versus dividend growers, and if it has been better to own slower or faster dividend growers. We address these topics in this month’s piece.
08.29.2024
Guardian Capital buys Sterling Capital Management from Truist
(pionline.com) Guardian Capital, a wholly owned subsidiary of Guardian Capital Group, will acquire investment manager Sterling Capital Management from Truist Financial.
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