Overview
A
Shares
BICAX
Inception
Date
12.02.1999
Investment
Min.
$1,000
Subsequent
Investment Min.1
N/A
Max. Up Front
Sales Charge
5.75%
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 around 5 to 7 years with focus on high quality and risk management
- Participate in longer term trends - don't buy on short-term trends or try to time what is going on in the market
- Attempts to 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 | BICAX | BICCX | BIBTX | STRDX |
| Inception Date | 12.02.1999 | 02.01.2001 | 12.02.1999 | 02.01.2018 |
| 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 | 5.75% | 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 5.75% Sales Charge | -6.31% | -3.60% | -6.71% | -5.40% | -0.26% | 1.17% | 3.73% |
| A Shares without Sales Charge | -0.61% | 2.29% | -0.97% | -3.51% | 0.93% | 1.76% | 3.99% |
| Institutional Shares | -0.55% | 2.42% | -0.62% | -3.24% | 1.19% | 2.02% | 4.24% |
| Lipper Core Bond Median | -0.83% | 2.26% | -0.88% | -3.71% | 0.72% | 1.50% | N/A |
The total expense ratios for Class A, C and I Shares are 0.70%, 1.45% and 0.45%, respectively. The gross expense ratio for Class R6 Shares is 0.45%. The net expense ratio for Class R6 Shares is 0.35%.
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 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 Total Return 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 12.02.1999. The inception date for Class C Shares is 02.01.2001. The inception date for Class Inst'l Shares is 12.02.1999. The inception date for Class R6 Shares is 02.01.2018. The performance of Class C Shares is adjusted to reflect the 1% contingent deferred sales charge. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
Quality Breakdown as of 06.30.2023
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 |
|---|---|
| 5-10 Yr. | 6.0 |
| 0-1 Yr. | 4.0 |
| 1-2 Yr. | 7.0 |
| 2-3 Yr. | 27.0 |
| 3-5 Yr. | 39.0 |
| 5-10 Yr. | 14.0 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 339 |
| Average Life | 9.12 Years |
| Effective Duration | 6.30 Years |
| Annual Turnover | 56% |
| Composition | Fund | Index |
|---|---|---|
| Corporate | 25.4% | 24.8% |
| Financial Institutions | 10.4% | 8.1% |
| Industrial | 12.2% | 14.6% |
| Utility | 2.9% | 2.2% |
| Government Related | 5.6% | 5.1% |
| Agency | 0.8% | 1.9% |
| Local Authority | 4.8% | 0.8% |
| Sovereign | 0.0% | 1.0% |
| Supranational | 0.0% | 1.3% |
| Securitized | 52.5% | 29.1% |
| ABS | 11.2% | 0.5% |
| CMBS | 12.6% | 1.7% |
| CMO | 2.0% | 0.0% |
| MBS Passthrough | 26.7% | 27.0% |
| Treasury | 15.2% | 40.9% |
| Treasury | 15.2% | 40.9% |
| [Cash] | 1.3% | 0.0% |
| [Cash] | 1.3% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | U.S. Treasury 4.125% 15-11-32 | 6.51% |
| 2 | U.S. Treasury 2.5% 15-2-45 | 3.89% |
| 3 | U.S. Treasury 1.375% 15-8-50 | 2.86% |
| 4 | U.S. Treasury 2.625% 15-2-29 | 1.86% |
| 5 | OneMain Fin. Issuance Trust 2021-1 1.55% 16-6-36 | 1.68% |
| 6 | FNMA 30Yr Fs1475 3.500% 1-4-52 | 1.32% |
| 7 | Hertz Vehicle Financing III Series 2021-2 1.68% 25-12-27 | 1.28% |
| 8 | OneMain Direct Auto Rec. Trust 2023-1 5.41% 14-11-29 | 1.19% |
| 9 | FHLMC 30Yr Sd3107 4.000% 1-3-53 | 1.09% |
| 10 | FNMA 30Yr Fs1185 3.500% 1-4-52 | 1.03% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 06.30.2023
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 06.30.2023. It includes the reinvestment of dividends and capital gains.
Distribution
| Month | Class A Shares | Class C Shares | Class Inst'l Shares | Class R6 Shares |
|---|---|---|---|---|
| August 2023 | $0.0267 | $0.0209 | $0.0286 | $0.0294 |
| July 2023 | $0.0259 | $0.0201 | $0.0279 | $0.0286 |
| June 2023 | $0.0246 | $0.0190 | $0.0266 | $0.0274 |
| May 2023 | $0.0247 | $0.0187 | $0.0267 | $0.0274 |
| April 2023 | $0.0235 | $0.0178 | $0.0255 | $0.0263 |
| March 2023 | $0.0238 | $0.0179 | $0.0257 | $0.0265 |
| February 2023 | $0.0218 | $0.0164 | $0.0236 | $0.0243 |
| January 2023 | $0.0220 | $0.0161 | $0.0240 | $0.0248 |
| December 2022 | $0.0219 | $0.0160 | $0.0239 | $0.0247 |
| November 2022 | $0.0215 | $0.0159 | $0.0233 | $0.0241 |
| October 2022 | $0.0212 | $0.0155 | $0.0231 | $0.0239 |
| September 2022 | $0.0198 | $0.0141 | $0.0218 | $0.0225 |
| Share Class | Without Waivers | With Waivers |
|---|---|---|
| Class A | 3.80% | 3.84% |
| Class C | 3.13% | 3.17% |
| Class I | 4.13% | 4.16% |
| Class R6 | 4.13% | 4.19% |
Total Return Bond Fund
Materials
Fixed Income Funds
Insights
09.21.2023 • Andrew Richman, CTFA
Fed Reiterates-Higher for Longer
While the Federal Reserve (Fed) met expectations with a pause/skip this meeting, the real story was the upward movement in both the Fed Funds rate this year and next year. The consensus is now for one more 25 basis point hike in 2023 with the Fed funds rate median at 5.60%.
09.07.2023 • Shane Burke
An Updated Look at the FOMC and Yield Curve
An Updated Look at the FOMC and Yield Curve
09.06.2023 • Charles Wittmann, CFA®
- One of the risks in seeking higher dividend yields in non-financial companies can be the increased balance sheet leverage that correlates with higher dividend yield. - For many companies, the cost of this leverage is rising with interest rates, potentially placing pressure on cash flows to pay future dividends as interest expense may take a greater share of corporate cash flow. - We believe that owning stocks with strong balance sheets has the potential to minimize this risk as we endeavor to generate attractive above-average total returns with below-average risk for clients.
08.02.2023 • Andrew Richman, CTFA
Fitch Lowers Long-Term U.S. Debt Rating from AAA to AA+
Fitch Lowers Long-Term U.S. Debt Rating from AAA to AA+
08.01.2023 • Charles Wittmann, CFA®
The Lead - "Long-Term Dividends"
- What are the investing environment conditions that can cause dividend payers to lag on a short-term basis? - Looking back at Bloomberg data over the past twenty years, when dividend payers outperformed the Russell 1000 Value, non-earners underperformed and vice versa (56% of the time). - Over the twenty year period, dividend payer’s quarterly outperformance outweighed underperformance in contrast to non-earners. - In our quest to generate above-average returns with below-average risk for our clients, our approach is to take advantage of the long-term benefits of dividend payers that grow their dividends and seek to create value now and in the future.
07.25.2023 • Andrew DiZio, CFA®
Real Estate Returns Following Fed Rate Hike Cycles
Over the last 15 months, the Federal Reserve (Fed) has meaningfully raised the benchmark fed funds rate in an effort to tamp down inflation. The Fed paused its hiking campaign during the June meeting, but issued an outlook suggesting additional rate increases are to be expected. Regardless of whether the Fed has finished raising rates, we believe the end of the tightening cycle is near and view now as a prudent time to examine the performance of Real Estate Investment Trust (REIT) stocks following historical periods of fed funds increases.
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