Mutual Funds
Ultra Short Bond Fund
Fund Managers
Mark Montgomery, CFA®
Byron Mims, CFA®
Jeffrey Ormsby, CFA®
Overview
A
Shares
BUSRX
Inception
Date
11.30.2012
Investment
Min.
$1,000
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
To pursue its investment objective, the Fund invests, under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in fixed income securities (bonds). The Fund will maintain an average duration of 18 months or less and the average maturity is expected to be between zero and 24 months.
In managing the portfolio, the portfolio manager uses a "top down" investment management approach focusing on allocation among sectors, credit risk, and individual securities selection. The portfolio manager focuses on macro trends in the economy to establish a duration target that reflects the outlook for the future direction of interest rates. For yield curve management, in addition to the trend in interest rates, other factors such as future inflation expectations, supply factors, and future interest rate expectations are considered. Sector weightings are driven by a combination of the portfolio manager's macro view on interest rates and volatility as well as relative spread analysis. Utilizing fundamental analysis the portfolio manager then selects individual securities consistent with the target by looking for the best relative values within particular sectors. The analysis includes an attempt to understand the structure and embedded features of potential securities. Features that are analyzed include puts, calls, sinking fund requirements, prepayment and extension risk, and individual company financial data for potential corporate holdings. Scenario analysis is the primary tool employed for these assessments.
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; mortgage-backed and asset-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. The Fund invests in securities issued or guaranteed by the U.S. government or its agencies. These guarantees do not apply to the Fund. Investments in municipal obligations may be subject to more risk depending on economic, political and other conditions within the state and municipality. The Fund may trade securities actively, which could increase its transaction costs thereby lowering its performance.
| Term | Class A Shares | Class I Shares |
|---|---|---|
| Ticker | BUSRX | BUSIX |
| Inception Date | 11.30.2012 | 11.30.2012 |
| Investment Min. | $1,000 | $1,000,000 |
| Subsequent Investment Min.2 | N/A | N/A |
| Max. Up Front Sales Charge | N/A | N/A |
| Max. Deferred Sales Charge | N/A | N/A |
2If subsequent investments are made as part of an AIP, the minimum is $25.
Co-Portfolio Manager
Co-Portfolio Manager
Co-Portfolio Manager
Performance
| Term | QTR | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
|---|---|---|---|---|---|---|---|
| A Shares without Sales Charge | 1.11% | 1.11% | 5.34% | 4.41% | 3.14% | 2.08% | 1.73% |
| Institutional Shares | 1.18% | 1.18% | 5.60% | 4.64% | 3.38% | 2.34% | 1.98% |
| Lipper Ultra-Short Obligations Median | 1.18% | 1.18% | 5.45% | 4.47% | 3.14% | 2.16% | N/A |
The total expense ratios for Class A and I Shares are 0.67% and 0.42%, respectively.
The Advisor has contractually agreed to limit certain fees paid by the Fund from 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 Ultra Short 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 11.30.2012. The inception date for Class Inst'l Shares is 11.30.2012. 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 03.31.2025
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 |
|---|---|
| 1.5-2.0 Years | 2.93 |
| 2.0+ Years | 3.19 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| 0.0-0.5 Year | 51.35% |
| 0.5-1.0 Year | 29.86% |
| 1.0-1.5 Year | 12.67% |
| Number of Holdings | 121 |
| Average Life | 0.88 Years |
| Effective Duration | 0.53 Years |
| Annual Turnover | 69% |
| Composition | Fund | Index |
|---|---|---|
| Corporate | 42.2% | 0.0% |
| Financial Institutions | 26.1% | 0.0% |
| Industrial | 13.8% | 0.0% |
| Utility | 2.2% | 0.0% |
| Government Related | 0.6% | 0.0% |
| Local Authority | 0.6% | 0.0% |
| Securitized | 52.1% | 0.0% |
| ABS | 33.1% | 0.0% |
| ARM | 0.8% | 0.0% |
| CLO | 2.7% | 0.0% |
| CMBS | 14.5% | 0.0% |
| CMO | 1.0% | 0.0% |
| Treasury | 3.0% | 100.0% |
| Treasury | 3.0% | 100.0% |
| Cash | 2.2% | 0.0% |
| Cash | 2.2% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | Enterprise Ser. 2022-1 3.27% 20-Jan-2028 | 1.98% |
| 2 | U.S. Treasury 0.0% 01-Apr-2025 | 1.82% |
| 3 | Wells Fargo & Co. 3.908% 25-Apr-2026 | 1.48% |
| 4 | CSAIL 2015-C4 CMT 3.808% 18-Nov-2048 | 1.45% |
| 5 | Citigroup CMT 2016-P3 3.063% 16-Apr-2049 | 1.44% |
| 6 | OCP CLO 2014-5 Ltd | 1.40% |
| 7 | OneMain Fin. 2022-3 5.94% 15-May-2034 | 1.35% |
| 8 | Tricon Residential SRF1 5.4% 18-Mar-2030 | 1.35% |
| 9 | Lloyds PLC 4.582% 10-Dec-2025 | 1.34% |
| 10 | Avis 2020-2 2.02% 20-Feb-2027 | 1.34% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 03.31.2025
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2025. It includes the reinvestment of dividends and capital gains.
Distribution
| Month | Class A Shares | Class Inst'l Shares |
|---|---|---|
| April 2025 | $0.0317 | $0.0338 |
| March 2025 | $0.0340 | $0.0362 |
| February 2025 | $0.0321 | $0.0340 |
| January 2025 | $0.0332 | $0.0353 |
| December 2024 | $0.0349 | $0.0370 |
| July 2024 | $0.0369 | $0.0393 |
| June 2024 | $0.0369 | $0.0389 |
| May 2024 | $0.0391 | $0.0412 |
| Share Class | Without Waivers | With Waivers |
|---|---|---|
| Class A | 4.04% | 4.18% |
| Class I | 4.29% | 4.43% |
Ultra Short Bond Fund
Materials
Fixed Income Funds
Insights
05.07.2025 • Charles Wittmann, CFA®
- We believe the inputs that create the ability for a company to pay dividends is of critical importance, especially if the economic environment becomes challenging. - Starting in the later part of 2024, aggregate Bloomberg estimated earnings for the S&P 500® Index began to moderate then decline. - While dividend payout ratios have improved, we would note that the rate of the market’s dividend growth has fallen almost 50%, to mid-single digits, since 2022. - We believe more tempered growth expectations and companies signaling greater caution by moderating their commitment to return cash to shareholders via dividends is our sign to remain vigilant on the fundamental sources that generate dividend growth.
04.03.2025 • Charles Wittmann, CFA®
- Economic sectors associated with value stocks, such as industrials and financials, have seen their quality measurements improve. - With slowing economic growth and persistent inflation leading to “stagflation” concerns, what type of equity investments tend to shine? - We show how quality companies that pay dividends and repurchase their shares have differentiated themselves in similar periods.
03.21.2025 • Andrew Richman, CTFA
Fed Lowers Growth Outlook But Raises Inflation Expectations
Andy Richman's update on the March Federal Open Market Committee meeting.
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.
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