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West Virginia Intermediate Tax-Free Fund

Mutual Funds

West Virginia Intermediate Tax-Free Fund

Overall Morningstar Rating™
Morningstar Category: Muni Single State Interm

4 Star Overall Rating

Based on risk-adjusted OWVAX returns among 121 funds as of 06.30.2024.

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.

Fund Facts

Term Class A Shares Class C Shares Class I Shares
Ticker BWVAXBWVCXOWVAX
Inception Date 07.23.200102.01.201202.01.1993
Investment Min. $1,000$1,000$1,000,000
Subsequent Investment Min.2 N/AN/AN/A
Max. Up Front Sales Charge 2%N/AN/A
Max. Deferred Sales Charge N/A1%N/A

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

West Virginia Intermediate Tax-Free Fund

Management

View professional designations disclosures

Photo of Robert  Millikan

Robert Millikan, CFA®

Co-Portfolio Manager

Photo of Michael  McVicker

Michael McVicker

Co-Portfolio Manager

Performance

Fund Performance as of 06.30.2024

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception
A Shares with 2.00% Sales Charge -2.07% -2.56% 0.26% -1.62% 0.18% 1.25% 3.27%
A Shares without Sales Charge -0.11% -0.53% 2.28% -0.95% 0.60% 1.46% 3.34%
Institutional Shares -0.05% -0.40% 2.54% -0.70% 0.85% 1.71% 3.63%
Lipper Other States Intermediate Municipal Median N/A N/A N/A N/A N/A N/A 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 03.31.2024

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.

Effective Duration Breakdown as of 03.31.2024

Name Value
0-1 Yr. 20.70
1-2 Yr. 4.40
2-3 Yr. 6.40
3-5 Yr. 19.10
5-10 Yr. 49.40
10+ Yr. 0.00

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

Summary Statistics as of 03.31.2024

Name Value
Number of Holdings 47
Average Life 7.24 Years
Effective Duration 4.71 Years
Annual Turnover 32%

Portfolio Composition as of 03.31.2024

Composition Fund Index
General Obligation 33.1% 27.0%
Pre-Refunded 3.1% 2.5%
Revenue 60.9% 70.5%
Cash 2.9% 0.0%

Top Ten Holdings as of 03.31.2024

# Company Name Value
1 West Va Pkwys Auth Tpk Toll Rev 5.0% 01-Jun-2047 4.60%
2 West Virginia St 5.0% 01-Jun-2045 3.92%
3 West Virginia St 5.0% 01-Jun-2038 3.36%
4 West Virginia Univ Revs 5.0% 01-Oct-2044 3.16%
5 West Va Pkwys Auth Tpk Toll Rev 5.0% 01-Jun-2039 3.15%
6 Wood Cnty W Va Brd Ed 4.5% 01-Jun-2035 3.15%
7 West Virginia St Hosp Fin Auth Hosp Rev 5.0% 01-Jan-2036 3.14%
8 West Virginia Univ Revs 5.0% 01-Oct-2044 3.12%
9 Ohio Cnty W Va Brd Ed 4.0% 01-Jun-2029 3.01%
10 Marshall Univ W Va Univ Revs 5.0% 01-May-2030 2.98%

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

Growth of $10,000 as of 03.31.2024

The Growth of $10,000 is hypothetical based upon the performance of net A Shares at NAV for the period ended 03.31.2024. It includes the reinvestment of dividends and capital gains.

Distribution

Monthly Dividend Distribution as of 06.30.2024

Month Class A Shares Class C Shares Class Inst'l Shares
June 2024 $0.0186 $0.0146 $0.0206
May 2024 $0.0204 $0.0162 $0.0225
April 2024 $0.0200 $0.0157 $0.0219
March 2024 $0.0207 $0.0161 $0.0227
February 2024 $0.0193 $0.0151 $0.0212
January 2024 $0.0203 $0.0159 $0.0224
December 2023 $0.0201 $0.0155 $0.0221
November 2023 $0.0192 $0.0149 $0.0212
October 2023 $0.0191 $0.0146 $0.0211
September 2023 $0.0178 $0.0136 $0.0197
August 2023 $0.0184 $0.0136 $0.0204
July 2023 $0.0179 $0.0127 $0.0200

30-Day SEC Yield as of 05.31.2024

Share Class Value
Class A 3.28%
Class C 2.62%
Class I 3.62%

Fixed Income Funds

Insights

07.03.2024 • Charles Wittmann, CFA®

The Lead - "Going for Gold"

- Economic indicators such as gross domestic product and the Institute for Supply Management Manufacturing Index recently showed slowing growth, while the Consumer Price Index remains stubbornly above the Federal Reserve’s target rate. Concerns over slowing economic growth amidst higher inflation, also known as stagflation, have emerged. - In such a scenario, we would note that quality and cash deployment (dividends and share buybacks) shine in a slow growth, higher inflation environment. - The problem recently is that the slowing economy has led to a slowdown in cash returned to shareholders in the form of dividends and share buybacks by the market. - We believe in the importance of preparation for potential uphill climbs as well as the value in finding investments that raise their cash returns to shareholders.

07.02.2024

Sterling Capital Management LLC joins Guardian Capital Group Limited

Sterling Capital Management LLC announced today the completion of its acquisition by Guardian Capital LLC, a wholly-owned subsidiary of global asset manager Guardian Capital Group Limited.

07.02.2024

Sterling Capital joins Guardian Capital Group Limited

“We are thrilled to announce the completion of Sterling’s acquisition by Guardian Capital Group, a global asset manager. We are also thankful to join an organization that shares our culture and values in protecting our clients’ assets - and we are truly excited for our bright future together!” – Scott Haenni, Sr. Managing Director & CEO at Sterling Capital Management

preview of document

06.27.2024 • Jeffrey Ormsby, CFA®

Fixed Income and Federal Reserve Rate Cuts: How Should We Expect Fixed Income to Perform?

As one would expect, in most historical periods where interest rates were declining, fixed income total return has been good, with investors capturing the coupon income as well as benefiting from the increase in prices as rates fall. Looking at the history of the Bloomberg Aggregate Bond Index since 1988, in the previous five Federal Reserve (Fed) rate-cutting cycles, the index posted annualized returns averaging north of 8%.

preview of document

06.13.2024 • Andrew Richman, CTFA

When It Comes to Fed Policy, Follow the Data, Not the Dots

Andy Richman's update on the June Federal Open Market Committee meeting.

06.05.2024 • Charles Wittmann, CFA®

The Lead - "An Indicator of Business Confidence"

- Several notable companies have elected to inaugurate a quarterly dividend this year, while 47 companies in the U.S. stopped paying dividends during the COVID-19 crisis and have yet to reinstitute one. Why? - We would suggest it comes down to the ability to pay an ever-increasing dividend alongside their confidence in their business’s future. - In the current period of fewer dividend initiations, slower dividend growth in the market, and household names cutting their dividends, we believe there are several lessons to learn.

Contact

Learn more about Sterling Capital solutions and services.

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