Mutual Funds
West Virginia Intermediate Tax-Free Fund
Fund Managers
Robert Millikan, CFA®
Michael McVicker
Overview
I
Shares
OWVAX
Inception
Date
02.01.1993
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
The Fund seeks current income exempt from federal and West Virginia 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 | BWVAX | BWVCX | OWVAX |
| Inception Date | 07.23.2001 | 02.01.2012 | 02.01.1993 |
| 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 | -0.33% | -0.33% | -2.03% | -0.97% | 0.93% | 1.15% | 3.35% |
| A Shares without Sales Charge | 1.69% | 1.69% | -0.01% | -0.29% | 1.34% | 1.35% | 3.42% |
| Institutional Shares | 1.75% | 1.75% | 0.15% | -0.04% | 1.59% | 1.60% | 3.71% |
| Lipper Other States Intermediate Municipal Median | 1.76% | 1.76% | 0.09% | -0.26% | 1.32% | 1.43% | N/A |
The total expense ratios for Class A, C and I Shares are 0.82%, 1.57% and 0.57%, 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 West Virginia Intermediate Tax-Free Fund includes the performance of the OVB West Virginia Tax-Exempt Income Portfolio for the period prior to its consolidation with the BB&T West Virginia Intermediate Tax-Free Fund, which commenced operations on 7/23/01, and reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The performance inception date for the Fund is 12/17/93. The inception date for Class A Shares is 07.23.2001. The inception date for Class C Shares is 02.01.2012. The inception date for Class Inst'l Shares is 02.01.1993. Performance reflects 12b-1 fees and applicable expenses. Performance for Class C Shares for periods prior to inception is based on the performance of Class A Shares of the Fund. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Characteristics
Quality Breakdown as of 03.31.2023
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 |
|---|---|
| 0-1 Yr. | 15.0 |
| 1-2 Yr. | 10.0 |
| 2-3 Yr. | 12.0 |
| 3-5 Yr. | 9.0 |
| 5-10 Yr. | 42.0 |
| 10+ Yrs. | 10.0 |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
| Name | Value |
|---|---|
| Number of Holdings | 53 |
| Average Life | 7.32 Years |
| Effective Duration | 4.69 Years |
| Annual Turnover | 35% |
| Composition | Fund | Index |
|---|---|---|
| General Obligation | 28.9% | 28.8% |
| Pre-Refunded | 3.5% | 3.9% |
| Revenue | 66.8% | 67.3% |
| [Cash] | 0.8% | 0.0% |
| # | Company Name | Value |
|---|---|---|
| 1 | West Virginia St 5.0% 01-Jun-2045 | 3.59% |
| 2 | West Virginia St 5.0% 01-Dec-2035 | 3.42% |
| 3 | West Virginia St Wtr Dev Auth Wtr Dev Rev 5.0% 01-Nov-2027 | 3.37% |
| 4 | West Virginia St 5.0% 01-Jun-2038 | 3.10% |
| 5 | West Virginia Univ Revs 5.0% 01-Oct-2033 | 3.00% |
| 6 | West Virginia St Hosp Fin Auth Hosp Rev 5.0% 01-Jan-2036 | 2.95% |
| 7 | West Va Pkwys Auth Tpk Toll Rev 5.0% 01-Jun-2039 | 2.92% |
| 8 | West Virginia St 5.0% 01-Dec-2039 | 2.88% |
| 9 | Ohio Cnty W Va Brd Ed 4.0% 01-Jun-2029 | 2.86% |
| 10 | Monongalia Cnty W Va Bldg Commn Rev 5.0% 01-Jul-2026 | 2.67% |
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Growth of $10,000 as of 03.31.2023
The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2023. It includes the reinvestment of dividends and capital gains.
Distribution
| Month | Class A Shares | Class C Shares | Class Inst'l Shares |
|---|---|---|---|
| May 2023 | $0.0182 | $0.0132 | $0.0203 |
| April 2023 | $0.0167 | $0.0120 | $0.0187 |
| March 2023 | $0.0174 | $0.0124 | $0.0196 |
| February 2023 | $0.0147 | $0.0094 | $0.0166 |
| January 2023 | $0.0164 | $0.0105 | $0.0185 |
| December 2022 | $0.0163 | $0.0104 | $0.0183 |
| November 2022 | $0.0152 | $0.0096 | $0.0171 |
| October 2022 | $0.0155 | $0.0097 | $0.0175 |
| September 2022 | $0.0144 | $0.0088 | $0.0163 |
| August 2022 | $0.0146 | $0.0086 | $0.0166 |
| July 2022 | $0.0140 | $0.0079 | $0.0160 |
| June 2022 | $0.0136 | $0.0079 | $0.0156 |
| Share Class | Value |
|---|---|
| Class A | 3.10% |
| Class C | 2.37% |
| Class I | 3.41% |
West Virginia Intermediate Tax-Free Fund
Materials
Fixed Income Funds
Insights
05.22.2023 • Andrew Richman, CTFA
Sterling Capital Viewpoint: The Debt Ceiling
Our view on the current market environment in light of the upcoming debt ceiling deadline.
05.05.2023 • Charles Wittmann, CFA®
The Lead - "Perspective on Quality and Dividend Growth"
- In our study, we took a closer look at the characteristics that we believe were additive to performance for the trailing time periods ended December 31, 2022. - BofA Global Research provided data for the performance of ROE over these timeframes, and it performed well relative to the Russell 1000 Value. - We believe dividend growth was additive to our Equity Income strategy over the time periods studied, which is consistent with the data from Ned Davis Research. - As an investment team, we seek to accentuate the benefits of our investment process to deliver positive outcomes for clients.
05.04.2023 • Andrew Richman, CTFA
Fed Raises 25 Basis Points But Sets the Table for a Possible Pause
In a move widely anticipated by the markets, the Federal Reserve (Fed) raised rates an additional 25 basis points to arrange of 5.00% to 5.25%. This is the highest in over 15 years and a 5.0% move in a little over 13 months.
04.27.2023
Press Release: Equity Personnel Updates
Today Sterling Capital announces the resignation of Joshua L. Haggerty, CFA®, Co-Portfolio Manager of the firm’s Special Opportunities strategy, effective immediately. Effective tomorrow, James L. Curtis, CFA® will be promoted to serve as Co-Portfolio Manager of the Special Opportunities strategy.
04.12.2023 • Charles Wittmann, CFA®
The Lead - "Equity Income Fund Wins Lipper Awards"
- In March, the Sterling Capital Equity Income Fund received two Refinitiv Lipper fund awards for the “Best Fund Over 3 Years” and the "Best Fund Over 5 Years” in the Equity Income Funds category. - First, we see the awards as confirmation that the investment team is managing its investments consistent with its stated mission. - Second, we recognize the winners are the clients who have been invested in Sterling Capital Equity Income over the past three and five years. - We are happy and excited that the true winners are our valued clients.
03.24.2023
Sterling Capital Equity Income Fund receives two 2022 Lipper Fund Awards
Sterling Capital Management is delighted to announce that our flagship Equity Income Fund received two Lipper Awards in the March 23, 2023 award ceremony in New York. Co-portfolio managers Chip Wittmann, CFA® and Jeremy Lopez, CFA®, were in attendance to accept this prestigious honor. The Equity Income Fund R6 Share Class (ticker: STREX) won in the three-year performance category, from a peer group of 390 equity income funds. The Equity Income Fund Institutional Share Class (ticker: BAEIX) won in the five-year category, from a peer group of 374 equity income funds.
Contact
Learn more about Sterling Capital solutions and services.
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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.
