Mutual Funds
South Carolina Intermediate Tax-Free Fund
Fund Managers
Robert Millikan, CFA®
Michael McVicker
Overview
C
Shares
BSCCX
Inception
Date
02.01.2012
Investment
Min.
$1,000
Subsequent
Investment Min.1
N/A
Max. Up Front
Sales Charge
N/A
Max. Deferred
Sales Charge
1%
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 | -2.19% | -2.60% | 0.16% | -1.77% | 0.08% | 1.14% | 3.07% |
| A Shares without Sales Charge | -0.15% | -0.59% | 2.16% | -1.11% | 0.49% | 1.34% | 3.15% |
| Institutional Shares | -0.09% | -0.39% | 2.42% | -0.86% | 0.73% | 1.59% | 3.38% |
| Lipper Other States Intermediate Municipal Median | -0.24% | -0.41% | 2.29% | -1.07% | 0.58% | 1.53% | 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 06.30.2024
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. | 17.10 |
| 1-2 Yr. | 4.80 |
| 2-3 Yr. | 11.10 |
| 3-5 Yr. | 16.80 |
| 5-10 Yr. | 50.10 |
| 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 | 32 |
| Average Life | 6.83 Years |
| Effective Duration | 4.78 Years |
| Annual Turnover | 32% |
| Composition | Fund | Index |
|---|---|---|
| General Obligation | 34.0% | 27.7% |
| Pre-Refunded | 3.7% | 2.7% |
| Revenue | 60.4% | 69.6% |
| Cash | 1.9% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | Spartanburg Cnty Sch Dist #5 5.0% 01-Mar-2037 | 3.97% |
| 2 | Lugoff-Elgin Wtr Auth 5.0% 01-Jul-2030 | 3.96% |
| 3 | Columbia Wtrwks & Swr 5.25% 01-Feb-2052 | 3.90% |
| 4 | Oconee Cnty 5.0% 01-Apr-2041 | 3.90% |
| 5 | Spartanburg Cnty Sch Dist #4 5.0% 01-Mar-2040 | 3.88% |
| 6 | Charleston Wtrwks & Swr Rev 5.0% 01-Jan-2038 | 3.87% |
| 7 | Florence Cnty Hosp Rev 5.0% 01-Nov-2033 | 3.85% |
| 8 | Greenwood Cnty Hosp Rev 5.0% 01-Oct-2032 | 3.78% |
| 9 | Columbia Wtrwks & Swr 5.0% 01-Feb-2048 | 3.76% |
| 10 | Brookland Cayce Sch Dist #2 5.0% 01-Mar-2031 | 3.67% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 06.30.2024
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 06.30.2024. 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 |
| September 2023 | $0.0192 | $0.0129 | $0.0212 |
| Share Class | Value |
|---|---|
| Class A | 3.04% |
| Class C | 2.34% |
| Class I | 3.35% |
South Carolina Intermediate Tax-Free Fund
Materials
Fixed Income Funds
Insights
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.
08.27.2024 • Andrew DiZio, CFA®
Higher Interest Rates & REITs - Looking Ahead at Lower New Supply
The market has spent much of the last two years fixated on the negative effects of rising rates on Real Estate Investment Trust (REIT) share prices. What has received less attention is the slowdown in new developments of commercial and multifamily real estate due to higher interest rates and the potential for higher rents in coming years should consistent demand growth be unmet by new supply. We believe publicly-traded REITs, which derive much of their earnings growth from existing real estate rather than new development, are overlooked future beneficiaries of this construction slowdown.
08.13.2024
James Kerin, CFA®, Michael McVicker
Energy prepayment (prepay) bonds enable municipal utilities to lock into a discounted price on a long-term supply of energy, most commonly natural gas or electricity. Issued by special purpose authorities, bonds are structured with far-dated final maturities but shorter-dated mandatory tenders that are backed by the obligation of a bank or insurance company, known as the guarantor, to ensure that it occurs in order to return principal to bondholders. As a result, prepay bonds are ultimately a corporate credit exposure in the tax-exempt market. The final maturity matches the term of the energy supply contract and improves the bond’s market discount tax treatment, while the shorter-dated tender serves to optimize borrowing costs within the transaction.
08.01.2024 • Charles Wittmann, CFA®
- Low quality and risk performed well in the first half of 2024. - As a result of more tepid inflation data supporting a potential reduction in the federal funds rate, we believe the market began anticipating that lower rates may aid companies that need stress relief from the higher interest payments placed on their businesses. - Evidence of this stress can be seen in how companies in the S&P 500 Index began reducing the growth rate of dividends they pay their shareholders as cash flows become more difficult to generate. - We believe quality companies that increase rather than decrease their dividends and signal their financial strength through short- and long-term environments may be a formula for client success.
08.01.2024 • Andrew Richman, CTFA
“Better Balance” Increases the Odds for a September Cut
Andy Richman's update on the July Federal Open Market Committee meeting.
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