Skip Navigation

Ultra Short Bond Fund

Mutual Funds

Ultra Short Bond Fund

Overall Morningstar Rating™
Morningstar Category: Ultrashort Bond

4 Star Overall Rating

Based on risk-adjusted BUSIX returns among 218 funds as of 12.31.2022.

Overview

I
Shares

BUSIX

Inception
Date

11.30.2012

Investment
Min.

$1,000,000

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.

Fund Facts

Term Class A Shares Class I Shares
Ticker BUSRXBUSIX
Inception Date 11.30.201211.30.2012
Investment Min. $1,000,000$1,000,000
Subsequent Investment Min.2 N/AN/A
Max. Up Front Sales Charge N/AN/A
Max. Deferred Sales Charge N/AN/A

2If subsequent investments are made as part of an AIP, the minimum is $25.

Ultra Short Bond Fund

Management

View professional designations disclosures

Photo of Mark  Montgomery

Mark Montgomery, CFA®

Co-Portfolio Manager

Photo of Byron  Mims

Byron Mims, CFA®

Co-Portfolio Manager

Photo of Jeffrey  Ormsby

Jeffrey Ormsby, CFA®

Co-Portfolio Manager

Performance

Fund Performance as of 12.31.2022

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 0.50% Sales Charge 1.07% 0.17% 0.17% 0.72% 1.29% 0.92% 0.91%
A Shares without Sales Charge 1.07% 0.17% 0.17% 0.72% 1.29% 0.92% 0.91%
Institutional Shares 1.03% 0.32% 0.32% 0.93% 1.54% 1.16% 1.16%
Lipper Ultra-Short Obligations Median 0.97% 0.14% 0.14% 0.58% 1.29% 1.01% N/A

The gross expense ratios for Class A and I Shares are 0.81% and 0.53%, respectively. The net expense ratios for Class A and I Shares are 0.56% and 0.28%, respectively.

The Advisor has contractually agreed to limit certain fees paid by the Fund from 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 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.

Characteristics

Quality Breakdown as of 12.31.2022

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.

Effective Duration Breakdown as of 12.31.2022

Name Value
0-1 Yr. 88.0
1-2 Yr. 12.0

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Summary Statistics as of 12.31.2022

Name Value
Number of Holdings 124
Average Life 0.70 Years
Effective Duration 0.45 Years
Annual Turnover 51%

Portfolio Composition as of 12.31.2022

Composition Fund Index
Commercial Paper 1.0% 0.0%
Corporate 50.4% 0.0%
    Financial Institutions 21.2% 0.0%
    Industrial 19.6% 0.0%
    Utility 9.6% 0.0%
Securitized 35.2% 0.0%
    ABS 19.8% 0.0%
    CMBS 14.9% 0.0%
    CMO 0.5% 0.0%
Treasury 9.3% 100.0%
    Treasury 9.3% 100.0%
[Cash] 4.2% 0.0%
    [Cash] 4.2% 0.0%

Top Ten Holdings as of 12.31.2022

# Company Name Value
1 U.S. Treasury 1.75% 15-May-2023 5.93%
2 U.S. Treasury 1.375% 15-Feb-2023 3.42%
3 Avis Budget Rental Car 3.7% 20-SEP-2024 1.78%
4 Chesapeake Funding 0.87% 15-AUG-2032 1.43%
5 Ford Credit Auto Owner Tr 3.47% 15-JAN-2030 1.35%
6 GS Mortgage Securities Tr 3.135% 12-JUN-2046 1.25%
7 GS Mortgage Securities Tr 4.243% 10-AUG-2046 1.24%
8 Ares Capital Corp 3.5% 10-FEB-2023 1.21%
9 CT Light and Power Company 2.5% 15-JAN-2023 1.21%
10 Bank of America Corp FRN 24-OCT-2024 1.19%

Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.

Growth of $10,000 as of 12.31.2022

Date A-Shares FTSE Treasury Bill 6 Months Index
12.31.2022 $10,963 (Up $61) $10,843 (Up $35)
10.31.2022 $10,902 (Up $47) $10,808 (Up $28)
09.30.2022 $10,855 (Up $9) $10,780 (Up $25)
09.30.2022 $10,846 (Down $16) $10,755 (Up $19)
07.31.2022 $10,862 (Up $15) $10,736 (Up $16)
06.30.2022 $10,847 (Up $37) $10,720 (Up $12)
06.30.2022 $10,810 (Down $33) $10,708 (Up $7)
04.30.2022 $10,843 (Down $14) $10,701 (Up $10)
03.31.2022 $10,857 (Up $13) $10,691 (Down $4)
03.31.2022 $10,844 (Down $60) $10,695 (Up $7)
01.31.2022 $10,904 (Down $40) $10,688 (Up $2)
12.31.2021 $10,944 (Up $15) $10,686 (Down $1)
12.31.2021 $10,929 (Down $18) $10,687 (Up $1)
10.31.2021 $10,947 (Down $17) $10,686 (Up $1)
09.30.2021 $10,964 (Up $3) $10,685 (Down $0)
09.30.2021 $10,961 (Down $5) $10,685 (Down $0)
07.31.2021 $10,966 (Down $3) $10,685 (Up $1)
06.30.2021 $10,969 (Up $8) $10,684 (Down $0)
06.30.2021 $10,961 (Down $2) $10,684 (Up $1)
04.30.2021 $10,963 (Up $9) $10,683 (Down $0)
03.31.2021 $10,954 (Up $13) $10,683 (Up $1)
03.31.2021 $10,941 (Down $13) $10,682 (Up $1)
01.31.2021 $10,954 (Down $3) $10,681 (Up $1)
12.31.2020 $10,957 (Up $9) $10,680 (Down $0)
12.31.2020 $10,948 (Up $20) $10,680 (Up $2)
10.31.2020 $10,928 (Up $10) $10,678 (Up $1)
09.30.2020 $10,918 (Up $9) $10,677 (Up $1)
09.30.2020 $10,909 (Down $1) $10,676 (Up $1)
07.31.2020 $10,910 (Up $23) $10,675 (Up $3)
06.30.2020 $10,887 (Up $35) $10,672 (Up $5)
06.30.2020 $10,852 (Up $47) $10,667 (Up $7)
04.30.2020 $10,805 (Up $71) $10,660 (Up $9)
03.31.2020 $10,734 (Up $148) $10,651 (Up $11)
03.31.2020 $10,586 (Down $203) $10,640 (Up $14)
01.31.2020 $10,789 (Up $28) $10,626 (Up $15)
12.31.2019 $10,761 (Up $30) $10,611 (Up $16)
12.31.2019 $10,731 (Up $20) $10,595 (Up $17)
10.31.2019 $10,711 (Up $7) $10,578 (Up $17)
09.30.2019 $10,704 (Up $30) $10,561 (Up $20)
09.30.2019 $10,674 (Up $9) $10,541 (Up $20)
07.31.2019 $10,665 (Up $31) $10,521 (Up $21)
06.30.2019 $10,634 (Up $10) $10,500 (Up $22)
06.30.2019 $10,624 (Up $32) $10,478 (Up $22)
04.30.2019 $10,592 (Up $35) $10,456 (Up $22)
03.31.2019 $10,557 (Up $21) $10,434 (Up $22)
03.31.2019 $10,536 (Up $45) $10,412 (Up $22)
01.31.2019 $10,491 (Up $20) $10,390 (Up $20)
12.31.2018 $10,471 (Up $43) $10,370 (Up $21)
12.31.2018 $10,428 (Up $20) $10,349 (Up $21)
10.31.2018 $10,408 (Up $7) $10,328 (Up $20)
09.30.2018 $10,401 (Up $7) $10,308 (Up $19)
09.30.2018 $10,394 (Up $16) $10,289 (Up $18)
07.31.2018 $10,378 (Up $27) $10,271 (Up $18)
06.30.2018 $10,351 (Up $17) $10,253 (Up $17)
06.30.2018 $10,334 (Up $15) $10,236 (Up $16)
04.30.2018 $10,319 (Up $25) $10,220 (Up $16)
03.31.2018 $10,294 (Up $14) $10,204 (Up $13)
03.31.2018 $10,280 (Up $3) $10,191 (Up $14)
01.31.2018 $10,277 (Down $7) $10,177 (Up $22)
12.31.2017 $10,284 (Up $9) $10,155 (Down $11)
12.31.2017 $10,275 (Up $3) $10,166 (Up $21)
10.31.2017 $10,272 (Up $1) $10,145 (Up $10)
09.30.2017 $10,271 (Up $1) $10,135 (Up $10)
09.30.2017 $10,270 (Up $11) $10,125 (Up $9)
07.31.2017 $10,259 (Up $11) $10,116 (Up $8)
06.30.2017 $10,248 (Up $11) $10,108 (Up $8)
06.30.2017 $10,237 (Up $11) $10,100 (Up $7)
04.30.2017 $10,226 (Up $11) $10,093 (Up $7)
03.31.2017 $10,215 (Up $12) $10,086 (Up $5)
03.31.2017 $10,203 (Up $12) $10,081 (Up $5)
01.31.2017 $10,191 (Up $10) $10,076 (Up $5)
12.31.2016 $10,181 (Up $11) $10,071 (Up $4)
12.31.2016 $10,170 (Up $1) $10,067 (Up $4)
10.31.2016 $10,169 (Down $0) $10,063 (Up $4)
09.30.2016 $10,169 (Up $1) $10,059 (Up $3)
09.30.2016 $10,168 (Up $11) $10,056 (Up $4)
07.31.2016 $10,157 (Up $2) $10,052 (Up $3)
06.30.2016 $10,155 (Up $12) $10,049 (Up $4)
06.30.2016 $10,143 (Up $13) $10,045 (Up $3)
04.30.2016 $10,130 (Up $4) $10,042 (Up $4)
03.31.2016 $10,126 (Up $25) $10,038 (Up $4)
03.31.2016 $10,101 (Up $14) $10,034 (Up $3)
01.31.2016 $10,087 (Up $3) $10,031 (Up $2)
12.31.2015 $10,084 (Up $23) $10,029 (Up $2)
12.31.2015 $10,061 (Down $8) $10,027 (Up $2)
10.31.2015 $10,069 (Down $0) $10,025 (Up $2)
09.30.2015 $10,069 (Up $1) $10,023 (Down $1)
09.30.2015 $10,068 (Up $9) $10,024 (Up $2)
07.31.2015 $10,059 (Down $2) $10,022 (Up $1)
06.30.2015 $10,061 (Down $0) $10,021 (Up $1)
06.30.2015 $10,061 (Down $12) $10,020 (Down $0)
04.30.2015 $10,073 (Up $8) $10,020 (Up $1)
03.31.2015 $10,065 (Up $9) $10,019 (Up $1)
03.31.2015 $10,056 (Down $2) $10,018 (Down $0)
01.31.2015 $10,058 (Down $2) $10,018 (Up $1)
12.31.2014 $10,060 (Up $18) $10,017 (Down $0)
12.31.2014 $10,042 (Down $13) $10,017 (Up $1)
10.31.2014 $10,055 (Up $6) $10,016 (Down $0)
09.30.2014 $10,049 (Up $5) $10,016 (Up $1)
09.30.2014 $10,044 (Down $6) $10,015 (Down $0)
07.31.2014 $10,050 (Up $1) $10,015 (Up $1)
06.30.2014 $10,049 (Up $5) $10,014 (Down $0)
06.30.2014 $10,044 (Down $10) $10,014 (Up $1)
04.30.2014 $10,054 (Up $5) $10,013 (Down $0)
03.31.2014 $10,049 (Up $5) $10,013 (Up $1)
03.31.2014 $10,044 (Down $5) $10,012 (Up $1)
01.31.2014 $10,049 (Up $5) $10,011 (Down $0)
12.31.2013 $10,044 (Up $14) $10,011 (Up $1)
12.31.2013 $10,030 (Down $2) $10,010 (Up $1)
10.31.2013 $10,032 (Up $6) $10,009 (Down $0)
09.30.2013 $10,026 (Up $4) $10,009 (Up $1)
09.30.2013 $10,022 (Up $13) $10,008 (Down $0)
07.31.2013 $10,009 (Down $6) $10,008 (Up $1)
06.30.2013 $10,015 (Up $13) $10,007 (Up $1)
06.30.2013 $10,002 (Down $16) $10,006 (Up $1)
04.30.2013 $10,018 (Down $6) $10,005 (Up $1)
03.31.2013 $10,024 (Up $3) $10,004 (Up $1)
03.31.2013 $10,021 (Up $4) $10,003 (Up $1)
01.31.2013 $10,017 (Up $3) $10,002 (Up $1)
12.31.2012 $10,014 (Up $14) $10,001 (Up $1)
12.31.2012 $10,000 $10,000

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 12.31.2022. It includes the reinvestment of dividends and capital gains.

Distribution

Monthly Dividend Distribution as of 01.31.2023

Month Class A Shares Class Inst'l Shares
January 2023 $0.0247 $0.0267
December 2022 $0.0231 $0.0252
November 2022 $0.0211 $0.0230
October 2022 $0.0180 $0.0200
September 2022 $0.0159 $0.0179
August 2022 $0.0138 $0.0158
July 2022 $0.0122 $0.0142
June 2022 $0.0106 $0.0126
May 2022 $0.0098 $0.0118
April 2022 $0.0083 $0.0103
March 2022 $0.0083 $0.0104
February 2022 $0.0072 $0.0091

30-Day SEC Yield as of 12.31.2022

Share Class Without Waivers With Waivers
Class A 3.38% 3.67%
Class I 3.63% 3.92%

Fixed Income Funds

Insights

02.03.2023

The Lead - Dividends Shined in 2022

- In May 2021, we began discussing the importance of dividend-paying stocks and those that raise their dividends as interest rates and infla...

decorative placeholder

02.03.2023 • Andrew Richman, CTFA

Powell’s Disinflation Comments Surprise

While The Federal Reserve (Fed), as expected, once again reduced their pace of rate hikes from 50 to 25 basis points, the market’s real fo...

01.04.2023

The Lead - "Resilient Dividends"

Since we began publishing The Lead in 2015, our primary purpose has been to communicate our investment philosophy and process as an investme...

decorative placeholder

12.15.2022 • Andrew Richman, CTFA

Fed Raises Rates - More Work to Do

The Federal Reserve (Fed), as expected, raised rates by another 50 basis points (bps) at their final meeting of 2022, December 14.

12.09.2022

3rd Quarter 2022 Market Review: Special Opportunities SMA

Speakers: Co-Portfolio Manager Joshua L. Haggerty, CFA®, and Client Portfolio Manager Whitney L. Stewart, CFA®

11.07.2022

3rd Quarter 2022 Market Review: Equity Income SMA

Speakers: Portfolio Manager Charles (Chip) J. Wittmann, CFA® , and Client Portfolio Manager Whitney L. Stewart, CFA®

Contact

Learn more about Sterling Capital solutions and services.

Morningstar

Morningstar Logo

© 2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Scroll Up