Sterling Capital Equity Income Fund (BAEIX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number                 811-06719            

                                         Sterling Capital Funds (formerly, BB&T Funds)                                        

(Exact name of registrant as specified in charter)

434 Fayetteville Street Mall, 5th Floor

            Raleigh, NC 27601-0575            

(Address of principal executive offices) (Zip code)

E.G. Purcell, III, President

Sterling Capital Funds (formerly, BB&T Funds)

434 Fayetteville Street Mall, 5th Floor

                             Raleigh, NC 27601-0575                            

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 228-1872

Date of fiscal year end: September 30

Date of reporting period: March 31, 2011

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

Sterling Capital Funds

Notice of Privacy Policy & Practices

Sterling Capital Funds recognizes and respects the privacy expectations of our customers.¹ We provide this notice to you so that you will know what kinds of information we collect about our customers and the circumstances in which that information may be disclosed to third parties who are not affiliated with the Sterling Capital Funds.

Collection of Customer Information

We collect nonpublic personal information about our customers from the following sources:

• Account Applications and other forms, which may include a customer’s name, address, social security number, and information about a customer’s investment goals and risk tolerance;

• Account History, including information about the transactions and balances in a customer’s accounts; and

• Correspondence, written, telephonic or electronic between a customer and the Sterling Capital Funds or service providers to the Sterling Capital Funds.

Disclosure of Customer Information

We many disclose all of the consumer information outlined above to third parties who are not affiliated with the Sterling Capital Funds:

• as permitted by law — for example with service providers who maintain or service shareholder accounts for the Sterling Capital Funds or to a shareholder’s broker or agent; and

• to perform marketing services on our behalf or pursuant to a joint marketing agreement with another financial institution.

Security of Customer Information

We require service providers to the Sterling Capital Funds:

• to maintain policies and procedures designed to assure only appropriate access to, and use of information about customers of the Sterling Capital Funds; and

• to maintain physical, electronic and procedural safeguards that comply with applicable legal standards to guard nonpublic personal information of customers of the Sterling Capital Funds.

We will adhere to the policies and practices described in this notice regardless of whether you are a current or former customer of the Sterling Capital Funds.

¹ For purposes of this notice, the terms “customer” or “customers” includes both individual shareholders of the Sterling Capital Funds and individuals who provide nonpublic personal information to the Sterling Capital Funds, but do not invest in Sterling Capital Funds shares.

Sterling Capital Funds

   Table of Contents

Letter from the President and the Investment Advisor	1
Summary of Portfolio Holdings	2
Expense Example	5
Schedules of Portfolio Investments
Sterling Capital Select Equity Fund	9
Sterling Capital Mid Value Fund	10
Sterling Capital Small Value Fund	11
Sterling Capital International Fund	12
Sterling Capital Special Opportunities Fund	16
Sterling Capital Equity Income Fund	17
Sterling Capital Short-Term Bond Fund	18
Sterling Capital Intermediate U.S. Government Fund	21
Sterling Capital Total Return Bond Fund	23
Sterling Capital Kentucky Intermediate Tax-Free Fund	27
Sterling Capital Maryland Intermediate Tax-Free Fund	29
Sterling Capital North Carolina Intermediate Tax-Free Fund	32
Sterling Capital South Carolina Intermediate Tax-Free Fund	36
Sterling Capital Virginia Intermediate Tax-Free Fund	39
Sterling Capital West Virginia Intermediate Tax-Free Fund	42
Sterling Capital National Tax-Free Money Market Fund	45
Sterling Capital Prime Money Market Fund	47
Sterling Capital U.S. Treasury Money Market Fund	49
Sterling Capital Strategic Allocation Conservative Fund	50
Sterling Capital Strategic Allocation Balanced Fund	51
Sterling Capital Strategic Allocation Growth Fund	52
Sterling Capital Strategic Allocation Equity Fund	53
Financial Statements	55
Notes to Financial Statements	113
Other Information	128

Letter from the President and the Investment Advisor

Dear Shareholders:

We are pleased to present this Sterling Capital Funds semiannual report covering the six months between October 1, 2010 and March 31, 2011. The recovering economy led to significant gains in equities for the period, as investors generally gained optimism about recent economic advances and improving corporate-sector fundamentals. Fixed-income securities meanwhile experienced modest returns.

The economy continued to expand during the six months under review, suggesting the recovery from the unprecedented events of 2008 and early 2009 has become self-sustaining. Business confidence appeared to improve significantly during the period and consumer spending reached pre-recession levels, indicating an improvement in consumer confidence. Recent reports suggest that manufacturing activity was robust during the period, while the services sector expanded.

The job market lagged other indicators of recovery throughout the period, but showed slight improvement during the first quarter of 2011. However, the severity of the recession and slow pace of job creation has left the trajectory of the economic recovery shallower than past recoveries and more susceptible to another shock. Home prices remained weak during the period, and foreclosure and delinquency rates reached record levels.

Numerous factors weighed negatively on investor confidence, including an extremely high federal budget deficit, weakness in European markets, emerging markets inflation and a sharp rise in oil and commodity prices. The recent disaster in Japan and the turmoil in the Middle East also undermined the market’s momentum.

The U.S. gross domestic product increased at an annualized rate of 3.10% during the first half of this semiannual period. According to preliminary figures, GDP grew at anannualized 1.80% rate during the second half of the period. The Federal Reserve maintained its aggressive stance toward monetary policy, keeping its target short-term interest rate at a range between zero and 0.25%, a historic low, throughout the period.

This environment boosted the stock market. The S&P 500 climbed throughout the period, with one sharp, short-lived decline in mid-March following the earthquake and tsunami in Japan. All told, the index gained 17.31% during the six months under review. Small-cap stocks outperformed larger shares, with the Russell 2000 index of small-cap stocks gaining 25.48%. Likewise, the U.S. fixed-income market was supported by a more promising economic outlook, improving corporate balance sheets, growing pressure to reduce government debt and spending, and consumer and corporate deleveraging.

We will continue to monitor the evolving economic and market climate, and will manage the Sterling Capital Funds accordingly. Thank you for your confidence in Sterling Capital Management LLC. We look forward to serving your investment needs during the months and years ahead.

Sincerely,

E.G. Purcell, III

President

Sterling Capital Funds

Jeffrey J. Schappe, CFA

Managing Director-Chief Investment Officer

Sterling Capital Management LLC

Past performance does not guarantee future results.

This report is authorized for distribution only when preceded or accompanied by a prospectus. Please read the prospectus carefully before investing or sending money. Sterling Capital Management LLC (“Sterling Capital”) serves as investment advisor to the Sterling Capital Funds and is paid a fee for its services. Shares of the Sterling Capital Funds (each a “Fund” and collectively, the “Funds”) are not deposits or obligations of, or guaranteed or endorsed by, Branch Banking and Trust Company or its affiliates. The Funds are not insured by the FDIC or any other government agency. The Funds currently are distributed by Sterling Capital Distributors, Inc. The distributor is not affiliated with Branch Banking and Trust Company or its affiliates.

The foregoing information and opinions are for general information only. Sterling Capital does not guarantee their accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or as offering individual or personalized investment advice.

1

Sterling Capital Funds

    Summary of Portfolio Holdings (Unaudited)

The Sterling Capital Funds invested, as a percentage of net assets, in the following industry sectors, countries, states, funds or security types, as of March 31, 2011:

Sterling Capital Select Equity Fund (formerly known as BB&T Select Equity Fund)	Percentage of net  assets
Consumer Discretionary		10.0	%
Consumer Staples		8.4	%
Energy		13.8	%
Financials		15.1	%
Health Care		11.8	%
Industrials		10.3	%
Information Technology		22.0	%
Materials		6.2	%
Telecommunication Services		1.3	%
Exchange Traded Fund		0.4	%
Cash Equivalents		1.0	%
		100.3	%
Sterling Capital Mid Value Fund (formerly known as BB&T Mid Cap Value Fund)	Percentage of net assets
Consumer Discretionary		17.9	%
Energy		5.2	%
Financial Services		34.0	%
Health Care		14.7	%
Producer Durables		7.7	%
Technology		14.2	%
Utilities		1.8	%
Exchange Traded Fund		4.0	%
Cash Equivalents		1.2	%
		100.7	%
Sterling Capital Small Value Fund (formerly known as Sterling Capital Small Cap Value Fund)	Percentage of net assets
Consumer Discretionary		11.2	%
Energy		2.2	%
Financial Services		29.9	%
Health Care		6.6	%
Materials & Processing		9.7	%
Producer Durables		19.0	%
Technology		18.0	%
Rights		0.0	%
Cash Equivalents		4.6	%
		101.2	%

Sterling Capital International Fund (formerly known as BB&T International Equity Fund)	Percentage of net assets
Australia		2.3	%
Austria		1.2	%
Brazil		2.6	%
Canada		5.9	%
China		7.3	%
Czech Republic		0.9	%
Denmark		2.0	%
Finland		1.2	%
France		6.4	%
Germany		7.9	%
Greece		0.5	%
Hong Kong		4.1	%
India		4.1	%
Ireland		1.5	%
Israel		0.6	%
Italy		1.8	%
Japan		8.5	%
Korea (South)		1.9	%
Mexico		0.8	%
Netherlands		2.0	%
Norway		0.4	%
Portugal		0.2	%
Russia		9.8	%
South Africa		1.2	%
Sweden		1.5	%
Switzerland		3.8	%
Taiwan		3.2	%
Ukraine		0.2	%
United Kingdom		15.1	%
Exchange Traded Fund		0.3	%
Cash Equivalents		6.6	%
		105.8	%
Sterling Capital Special Opportunities Fund (formerly known as BB&T Special Opportunities Equity Fund)	Percentage of net assets
Consumer Discretionary		7.9	%
Consumer Staples		6.6	%
Energy		15.4	%
Financials		3.6	%
Health Care		22.4	%
Industrials		6.2	%
Information Technology		27.1	%
Utilities		1.2	%
Cash Equivalents		11.0	%
		101.4	%
Sterling Capital Equity Income Fund (formerly known as BB&T Equity Income Fund)	Percentage of net  assets
Consumer Discretionary		11.7	%
Consumer Staples		16.8	%
Energy		17.4	%
Financials		0.6	%
Health Care		9.6	%
Industrials		9.7	%
Information Technology		10.2	%
Telecommunication Services		6.7	%
Exchange Traded Funds		0.0	%
Cash Equivalents		21.2	%
		103.9	%

2

Sterling Capital Funds

   Summary of Portfolio Holdings (Unaudited)

Sterling Capital Short-Term Bond Fund (formerly known as BB&T Short U.S. Government Fund)	Percentage of net assets
Collateralized Mortgage Obligations		12.1	%
Commercial Mortgage-Backed Securities		12.6	%
Corporate Bonds		52.9	%
Mortgage-Backed Securities		1.5	%
Municipal Bonds		6.5	%
Preferred Stock		1.6	%
U.S. Government Agencies		8.7	%
Cash Equivalents		5.5	%
		101.4	%
Sterling Capital Intermediate U.S. Government Fund (formerly known as BB&T Intermediate U.S. Government Fund)	Percentage of net assets
Collateralized Mortgage Obligations		5.6	%
Corporate Bonds		8.7	%
Mortgage-Backed Securities		23.4	%
Municipal Bonds		1.0	%
U.S. Government Agencies		46.6	%
U.S. Treasury Notes		12.0	%
Cash Equivalents		2.3	%
		99.6	%
Sterling Capital Total Return Bond Fund (formerly known as BB&T Total Return Bond Fund)	Percentage of net assets
Asset Backed Securities		2.5	%
Collateralized Mortgage Obligations		10.6	%
Commercial Mortgage-Backed Securities		15.3	%
Corporate Bonds		34.5	%
Foreign Government Bonds		0.5	%
Mortgage-Backed Securities		30.2	%
Municipal Bonds		3.0	%
Preferred Stocks		1.1	%
U.S. Treasury Notes		1.2	%
Cash Equivalents		3.1	%
		102.0	%
Sterling Capital Kentucky Intermediate Tax-Free Fund (formerly known as BB&T Kentucky Intermediate Tax-Free Fund)	Percentage of net assets
Kentucky Municipal Bonds		98.2	%
Cash Equivalents		0.5	%
		98.7	%
Sterling Capital Maryland Intermediate Tax-Free Fund (formerly known as BB&T Maryland Intermediate Tax-Free Fund)	Percentage of net assets
District of Columbia Municipal Bonds		3.2	%
Maryland Municipal Bonds		93.7	%
Cash Equivalents		2.5	%
		99.4	%
Sterling Capital North Carolina Intermediate Tax-Free Fund (formerly known as BB&T North Carolina Intermediate Tax-Free Fund)	Percentage of net assets
North Carolina Municipal Bonds		96.0	%
Cash Equivalents		2.8	%
		98.8	%

Sterling Capital South Carolina Intermediate Tax-Free Fund (formerly known as BB&T South Carolina Intermediate Tax-Free Fund)	Percentage of net assets
South Carolina Municipal Bonds		97.3	%
Cash Equivalents		2.2	%
		99.5	%
Sterling Capital Virginia Intermediate Tax-Free Fund (formerly known as BB&T Virginia IntermediateTax-Free Fund)	Percentage of net assets
District of Columbia Municipal Bonds		1.3	%
Virginia Municipal Bonds		94.2	%
Cash Equivalents		3.8	%
		99.3	%
Sterling Capital West Virginia Intermediate Tax-Free Fund (formerly known as BB&T West Virginia Intermediate Tax-Free Fund)	Percentage of net assets
West Virginia Municipal Bonds		95.7	%
Cash Equivalents		2.7	%
		98.4	%
Sterling Capital National Tax-Free Money Market Fund (formerly known as BB&T National Tax-Free Money Market Fund)	Percentage of net assets
Arizona		9.2	%
Colorado		1.2	%
Connecticut		1.5	%
Georgia		9.8	%
Illinois		6.3	%
Louisiana		5.2	%
New Jersey		2.1	%
NewYork		3.7	%
Ohio		28.5	%
Pennsylvania		8.9	%
South Carolina		3.1	%
Texas		2.5	%
Utah		4.2	%
Vermont		1.1	%
Virginia		3.0	%
Washington		8.4	%
Wisconsin		1.2	%
Cash Equivalents		0.0	%
		99.9	%
Sterling Capital Prime Money Market Fund (formerly known as BB&T Prime Money Market Fund)	Percentage of net assets
Asset Backed Securities		3.2	%
Bankers Acceptance		1.3	%
Certificates of Deposit		12.0	%
Commercial Paper		33.2	%
Corporate Bonds		2.4	%
Repurchase Agreement		13.2	%
U.S. Government Agencies		4.3	%
U.S. Treasury Notes		0.9	%
Variable Rate Notes		30.4	%
		100.9	%
Sterling Capital U.S. Treasury Money Market Fund (formerly known as BB&T U.S. Treasury Money Market Fund)	Percentage of net assets
Repurchase Agreements		53.3	%
U.S. Treasury Bills		34.2	%
U.S. Treasury Notes		12.5	%
		100.0	%

3

Sterling Capital Funds

   Summary of Portfolio Holdings (Unaudited)

Sterling Capital Strategic Allocation Conservative Fund (formerly known as BB&T Capital Manager Conservative Growth Fund)	Percentage of net assets
Sterling Capital Equity Income Fund, Institutional Class		2.9%
Sterling Capital International Fund, Institutional Class		3.9%
Sterling Capital Mid Value Fund, Institutional Class		4.9%
Sterling Capital Select Equity Fund, Institutional Class		8.0%
Sterling Capital Small Value Fund, Institutional Class		1.2%
Sterling Capital Special Opportunities Fund, Institutional Class		1.9%
Sterling Capital Total Return Bond Fund, Institutional Class		53.2%
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		1.7%
Non-Affiliated Investment Companies		7.2%
Exchange Traded Funds		14.9%
		99.8%
Sterling Capital Strategic Allocation Balanced Fund (formerly known as BB&T Capital Manager Moderate Growth Fund)	Percentage of net assets
Sterling Capital Equity Income Fund, Institutional Class		4.7%
Sterling Capital International Fund, Institutional Class		6.3%
Sterling Capital Mid Value Fund, Institutional Class		7.9%
Sterling Capital Select Equity Fund, Institutional Class		12.9%
Sterling Capital Small Value Fund, Institutional Class		2.0%
Sterling Capital Special Opportunities Fund, Institutional Class		3.1%
Sterling Capital Total Return Bond Fund, Institutional Class		26.3%
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		1.7%
Non-Affiliated Investment Companies		9.3%
Exchange Traded Funds		25.9%
		100.1%

Sterling Capital Strategic Allocation Growth Fund (formerly known as BB&T Capital Manager Growth Fund)	Percentage of net assets
Sterling Capital Equity Income Fund, Institutional Class		5.7%
Sterling Capital International Fund, Institutional Class		7.7%
Sterling Capital Mid Value Fund, Institutional Class		9.6%
Sterling Capital Select Equity Fund, Institutional Class		15.7%
Sterling Capital Small Value Fund, Institutional Class		2.5%
Sterling Capital Special Opportunities Fund, Institutional Class		3.8%
Sterling Capital Total Return Bond Fund, Institutional Class		9.8%
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		2.2%
Non-Affiliated Investment Companies		9.5%
Exchange Traded Funds		33.5%
		100.0%
Sterling Capital Strategic Allocation Equity Fund (formerly known as BB&T Capital Manager Equity Fund)	Percentage of net assets
Sterling Capital Equity Income Fund, Institutional Class		6.3%
Sterling Capital International Fund, Institutional Class		8.4%
Sterling Capital Mid Value Fund, Institutional Class		10.6%
Sterling Capital Select Equity Fund, Institutional Class		17.3%
Sterling Capital Small Value Fund, Institutional Class		2.7%
Sterling Capital Special Opportunities Fund, Institutional Class		4.2%
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		2.4%
Non-Affiliated Investment Companies		9.4%
Exchange Traded Funds		38.7%
		100.0%

4

Sterling Capital Funds

    Expense Example (Unaudited)

As a shareholder of the Sterling Capital Funds (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses.

These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2010 through March 31, 2011.

Actual Example

The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this year.

	Beginning Account  Value 10/1/10		Ending Account  Value 3/31/11			Expenses Paid During Period* 10/1/10 - 3/31/11		Annualized Expense Ratio During Period 10/1/10 -  3/31/11
Sterling Capital Select Equity Fund
Class A Shares		$1,000.00		$	1,158.70		$  5.81		1.08	%
Class B Shares		1,000.00			1,155.30		9.83		1.83	%
Class C Shares		1,000.00			1,154.40		9.94		1.85	%
Institutional Shares		1,000.00			1,160.30		4.47		0.83	%
Sterling Capital Mid Value Fund
Class A Shares		1,000.00			1,217.10		6.52		1.18	%
Class B Shares		1,000.00			1,212.70		10.65		1.93	%
Class C Shares		1,000.00			1,212.20		10.64		1.93	%
Institutional Shares		1,000.00			1,218.40		5.14		0.93	%
Class R Shares		1,000.00			1,215.30		8.01		1.45	%
Sterling Capital Small Value Fund
Class A Shares		1,000.00			1,268.10		7.58		1.34	%
Class B Shares		1,000.00			1,263.20		11.79		2.09	%
Class C Shares		1,000.00			1,263.20		11.79		2.09	%
Institutional Shares		1,000.00			1,269.90		6.17		1.09	%
Class R Shares		1,000.00			1,265.70		9.04		1.60	%
Sterling Capital International Fund
Class A Shares		1,000.00			1,073.70		9.36		1.81	%
Class B Shares		1,000.00			1,072.20		13.23		2.56	%
Class C Shares		1,000.00			1,070.10		13.16		2.55	%
Institutional Shares		1,000.00			1,077.10		8.08		1.56	%
Sterling Capital Special Opportunities Fund
Class A Shares		1,000.00			1,152.80		6.87		1.28	%
Class B Shares		1,000.00			1,148.60		10.87		2.03	%
Class C Shares		1,000.00			1,148.50		10.87		2.03	%
Institutional Shares		1,000.00			1,154.10		5.53		1.03	%
Class R Shares		1,000.00			1,151.50		8.21		1.53	%
Sterling Capital Equity Income Fund
Class A Shares		1,000.00			1,115.40		6.17		1.17	%
Class B Shares		1,000.00			1,110.90		10.05		1.91	%
Class C Shares		1,000.00			1,110.70		10.10		1.92	%
Institutional Shares		1,000.00			1,116.50		4.85		0.92	%
Class R Shares		1,000.00			1,114.50		7.49		1.42	%
Sterling Capital Short-Term Bond Fund
Class A Shares		1,000.00			995.70		4.58		0.92	%
Institutional Shares		1,000.00			998.00		3.34		0.67	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares		1,000.00			982.40		4.74		0.96	%
Class B Shares		1,000.00			977.70		8.43		1.71	%
Class C Shares		1,000.00			978.70		8.44		1.71	%
Institutional Shares		1,000.00			982.70		3.51		0.71	%
Sterling Capital Total Return Bond Fund
Class A Shares		1,000.00			998.10		4.73		0.95	%
Class B Shares		1,000.00			994.40		8.45		1.70	%
Class C Shares		1,000.00			993.50		8.50		1.71	%
Institutional Shares		1,000.00			998.50		3.49		0.70	%
Class R Shares		1,000.00			994.70		5.97		1.20	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares		1,000.00			975.60		4.58		0.93	%
Institutional Shares		1,000.00			977.60		3.30		0.67	%

5

Sterling Capital Funds

   Expense Example (Unaudited)

	Beginning Account Value 10/1/10			Ending Account Value 3/31/11			Expenses Paid During Period* 10/1/10 - 3/31/11			Annualized Expense Ratio During Period 10/1/10 -  3/31/11
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares		$	1,000.00		$	978.20		$	4.54		0.92	%
Institutional Shares			1,000.00			980.30			3.36		0.68	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			979.20			4.54		0.92	%
Institutional Shares			1,000.00			980.40			3.36		0.68	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			977.00			4.68		0.95	%
Institutional Shares			1,000.00			978.00			3.45		0.70	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			978.30			4.59		0.93	%
Institutional Shares			1,000.00			978.70			3.35		0.68	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			980.30			4.64		0.94	%
Institutional Shares			1,000.00			981.50			3.41		0.69	%
Sterling Capital National Tax-Free Money Market Fund
Class A Shares			1,000.00			1,000.10			2.14		0.43	%
Institutional Shares			1,000.00			1,000.10			2.09		0.42	%
Sterling Capital Prime Money Market Fund
Class A Shares			1,000.00			1,000.10			1.55		0.31	%
Class B Shares			1,000.00			1,000.10			1.60		0.32	%
Class C Shares			1,000.00			1,000.10			1.55		0.31	%
Institutional Shares			1,000.00			1,000.10			1.55		0.31	%
Sterling Capital U.S. Treasury Money Market Fund
Class A Shares			1,000.00			1,000.10			0.70		0.14	%
Class B Shares			1,000.00			1,000.10			0.70		0.14	%
Class C Shares			1,000.00			1,000.10			0.70		0.14	%
Institutional Shares			1,000.00			1,000.10			0.70		0.14	%
Sterling Capital Strategic Allocation Conservative Fund
Class A Shares			1,000.00			1,064.30			2.78		0.54	%
Class B Shares			1,000.00			1,060.20			6.57		1.28	%
Class C Shares			1,000.00			1,059.70			6.62		1.29	%
Institutional Shares			1,000.00			1,064.90			1.44		0.28	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares			1,000.00			1,108.90			2.52		0.48	%
Class B Shares			1,000.00			1,104.50			6.45		1.23	%
Class C Shares			1,000.00			1,103.70			6.50		1.24	%
Institutional Shares			1,000.00			1,109.60			1.10		0.21	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,133.70			2.61		0.49	%
Class B Shares			1,000.00			1,129.70			6.58		1.24	%
Class C Shares			1,000.00			1,128.80			6.63		1.25	%
Institutional Shares			1,000.00			1,134.90			1.22		0.23	%
Sterling Capital Strategic Allocation Equity Fund
Class A Shares			1,000.00			1,147.90			3.21		0.60	%
Class B Shares			1,000.00			1,144.00			7.16		1.34	%
Class C Shares			1,000.00			1,144.80			7.33		1.37	%
Institutional Shares			1,000.00			1,149.70			1.82		0.34	%

* Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 182 days divided by 365 (to reflect the six month period).

6

Sterling Capital Funds

   Expense Example (Unaudited)

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/10		Ending Account Value 3/31/11		Expenses Paid During Period* 10/1/10 - 3/31/11		Annualized Expense Ratio During Period 10/1/10 -  3/31/11
Sterling Capital Select Equity Fund
Class A Shares		$1,000.00		$1,019.55		$  5.44		1.08	%
Class B Shares		1,000.00		1,015.81		9.20		1.83	%
Class C Shares		1,000.00		1,015.71		9.30		1.85	%
Institutional Shares		1,000.00		1,020.79		4.18		0.83	%
Sterling Capital Mid Value Fund
Class A Shares		1,000.00		1,019.05		5.94		1.18	%
Class B Shares		1,000.00		1,015.31		9.70		1.93	%
Class C Shares		1,000.00		1,015.31		9.70		1.93	%
Institutional Shares		1,000.00		1,020.29		4.68		0.93	%
Class R Shares		1,000.00		1,017.70		7.29		1.45	%
Sterling Capital Small Value Fund
Class A Shares		1,000.00		1,018.25		6.74		1.34	%
Class B Shares		1,000.00		1,014.51		10.50		2.09	%
Class C Shares		1,000.00		1,014.51		10.50		2.09	%
Institutional Shares		1,000.00		1,019.50		5.49		1.09	%
Class R Shares		1,000.00		1,016.95		8.05		1.60	%
Sterling Capital International Fund
Class A Shares		1,000.00		1,015.91		9.10		1.81	%
Class B Shares		1,000.00		1,012.17		12.84		2.56	%
Class C Shares		1,000.00		1,012.22		12.79		2.55	%
Institutional Shares		1,000.00		1,017.15		7.85		1.56	%
Sterling Capital Special Opportunities Fund
Class A Shares		1,000.00		1,018.55		6.44		1.28	%
Class B Shares		1,000.00		1,014.81		10.20		2.03	%
Class C Shares		1,000.00		1,014.81		10.20		2.03	%
Institutional Shares		1,000.00		1,019.80		5.19		1.03	%
Class R Shares		1,000.00		1,017.30		7.70		1.53	%
Sterling Capital Equity Income Fund
Class A Shares		1,000.00		1,019.10		5.89		1.17	%
Class B Shares		1,000.00		1,015.41		9.60		1.91	%
Class C Shares		1,000.00		1,015.36		9.65		1.92	%
Institutional Shares		1,000.00		1,020.34		4.63		0.92	%
Class R Shares		1,000.00		1,017.85		7.14		1.42	%
Sterling Capital Short-Term Bond Fund
Class A Shares		1,000.00		1,020.34		4.63		0.92	%
Institutional Shares		1,000.00		1,021.59		3.38		0.67	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares		1,000.00		1,020.14		4.84		0.96	%
Class B Shares		1,000.00		1,016.40		8.60		1.71	%
Class C Shares		1,000.00		1,016.40		8.60		1.71	%
Institutional Shares		1,000.00		1,021.39		3.58		0.71	%
Sterling Capital Total Return Bond Fund
Class A Shares		1,000.00		1,020.19		4.78		0.95	%
Class B Shares		1,000.00		1,016.45		8.55		1.70	%
Class C Shares		1,000.00		1,016.40		8.60		1.71	%
Institutional Shares		1,000.00		1,021.44		3.53		0.70	%
Class R Shares		1,000.00		1,018.95		6.04		1.20	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.29		4.68		0.93	%
Institutional Shares		1,000.00		1,021.59		3.38		0.67	%

7

Sterling Capital Funds

   Expense Example (Unaudited)

	Beginning Account Value 10/1/10		Ending Account Value 3/31/11			Expenses Paid During Period* 10/1/10 - 3/31/11			Annualized Expense Ratio During Period 10/1/10 -  3/31/11
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares		$1,000.00		$	1,020.34		$	4.63		0.92	%
Institutional Shares		1,000.00			1,021.54			3.43		0.68	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00			1,020.34			4.63		0.92	%
Institutional Shares		1,000.00			1,021.54			3.43		0.68	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00			1,020.19			4.78		0.95	%
Institutional Shares		1,000.00			1,021.44			3.53		0.70	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00			1,020.29			4.68		0.93	%
Institutional Shares		1,000.00			1,021.54			3.43		0.68	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00			1,020.24			4.73		0.94	%
Institutional Shares		1,000.00			1,021.49			3.48		0.69	%
Sterling Capital National Tax-Free Money Market Fund
Class A Shares		1,000.00			1,022.79			2.17		0.43	%
Institutional Shares		1,000.00			1,022.84			2.12		0.42	%
Sterling Capital Prime Money Market Fund
Class A Shares		1,000.00			1,023.39			1.56		0.31	%
Class B Shares		1,000.00			1,023.34			1.61		0.32	%
Class C Shares		1,000.00			1,023.39			1.56		0.31	%
Institutional Shares		1,000.00			1,023.39			1.56		0.31	%
Sterling Capital U.S. Treasury Money Market Fund
Class A Shares		1,000.00			1,024.23			0.71		0.14	%
Class B Shares		1,000.00			1,024.23			0.71		0.14	%
Class C Shares		1,000.00			1,024.23			0.71		0.14	%
Institutional Shares		1,000.00			1,024.23			0.71		0.14	%
Sterling Capital Strategic Allocation Conservative Fund
Class A Shares		1,000.00			1,022.24			2.72		0.54	%
Class B Shares		1,000.00			1,018.55			6.44		1.28	%
Class C Shares		1,000.00			1,018.50			6.49		1.29	%
Institutional Shares		1,000.00			1,023.54			1.41		0.28	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares		1,000.00			1,022.54			2.42		0.48	%
Class B Shares		1,000.00			1,018.80			6.19		1.23	%
Class C Shares		1,000.00			1,018.75			6.24		1.24	%
Institutional Shares		1,000.00			1,023.88			1.06		0.21	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares		1,000.00			1,022.49			2.47		0.49	%
Class B Shares		1,000.00			1,018.75			6.24		1.24	%
Class C Shares		1,000.00			1,018.70			6.29		1.25	%
Institutional Shares		1,000.00			1,023.78			1.16		0.23	%
Sterling Capital Strategic Allocation Equity Fund
Class A Shares		1,000.00			1,021.94			3.02		0.60	%
Class B Shares		1,000.00			1,018.25			6.74		1.34	%
Class C Shares		1,000.00			1,018.10			6.89		1.37	%
Institutional Shares		1,000.00			1,023.24			1.72		0.34	%

* Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 182 days divided by 365 (to reflect the six month period).

8

Sterling Capital Select Equity Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (98.9%)
		Consumer Discretionary (10.0%)
	201,000	Comcast Corp., Class A	$	4,968,720
	71,000	Lowe’s Cos., Inc.		1,876,530
	227,000	Staples, Inc.		4,408,340
	146,400	Target Corp.		7,321,464
	123,900	Walt Disney Co. (The)		5,338,851
				23,913,905
		Consumer Staples (8.4%)
	138,300	Kraft Foods, Inc., Class A		4,337,088
	110,000	PepsiCo, Inc.		7,085,100
	53,000	Procter & Gamble Co. (The)		3,264,800
	105,000	Wal-Mart Stores, Inc.		5,465,250
				20,152,238
		Energy (13.8%)
	197,000	Cenovus Energy, Inc.		7,757,860
	29,000	Chevron Corp.		3,115,470
	29,800	ConocoPhillips		2,379,828
	89,000	Exxon Mobil Corp.		7,487,570
	72,000	Schlumberger, Ltd.		6,714,720
	123,900	Suncor Energy, Inc.		5,555,676
				33,011,124
		Financials (15.1%)
	62,300	American Express Co.		2,815,960
	96,000	Aon Corp.		5,084,160
	189,000	Bank of America Corp.		2,519,370
	24,900	Berkshire Hathaway, Inc., Class B(a)		2,082,387
	150,000	JPMorgan Chase & Co.		6,915,000
	168,000	MetLife, Inc.		7,514,640
	121,400	Morgan Stanley		3,316,648
	41,300	Travelers Cos., Inc. (The)		2,456,524
	105,000	Wells Fargo & Co.		3,328,500
				36,033,189
		Health Care (11.8%)
	87,000	Abbott Laboratories		4,267,350
	56,600	Johnson & Johnson		3,353,550
	155,000	Medtronic, Inc.		6,099,250
	116,000	Merck & Co., Inc.		3,829,160
	45,000	Novartis AG, ADR(b)		2,445,750
	150,000	Pfizer, Inc.		3,046,500
	93,000	Thermo Fisher Scientific, Inc.(a)		5,166,150
				28,207,710
		Industrials (10.3%)
	99,000	ABB, Ltd., ADR(a)		2,394,810
	21,000	FedEx Corp.		1,964,550
	366,000	General Electric Co.		7,338,300
	22,700	Lockheed Martin Corp.		1,825,080
	492,000	Southwest Airlines Co		6,213,960
	110,900	Tyco International, Ltd.		4,964,993
				24,701,693
		Information Technology (22.0%)
	21,800	Apple, Inc.(a)		7,596,210
	397,800	Cisco Systems, Inc.		6,822,270
	113,190	Corning, Inc.		2,335,110
	5,190	Google, Inc., Class A(a)		3,042,430

Shares		Fair Value
COMMON STOCKS — (continued)
	Information Technology — (continued)
111,000	Hewlett-Packard Co.	$	4,547,670
105,000	Intel Corp.		2,117,850
21,000	International Business Machines Corp.		3,424,470
368,000	Microsoft Corp.		9,332,480
79,200	Oracle Corp.		2,642,904
197,000	TE Connectivity, Ltd., ADR		6,859,540
108,000	Texas Instruments, Inc.		3,732,480
			52,453,414
	Materials (6.2%)
566,000	Alcoa, Inc.		9,989,900
161,700	International Paper Co.		4,880,106
			14,870,006
	Telecommunication Services (1.3%)
102,000	AT&T, Inc.		3,121,200
	Total Common Stocks (Cost $196,905,455)		236,464,479
EXCHANGE TRADED FUND (0.4%)
26,100	Utilities Select Sector Standard and Poors Depositary Receipt Fund		832,590
	Total Exchange Traded Fund (Cost $751,594)		832,590
INVESTMENT COMPANY (0.5%)
1,298,048	Federated Treasury Obligations Fund, Institutional Shares		1,298,048
	Total Investment Company (Cost $1,298,048)		1,298,048
Principal Amount
SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (0.5%)
$     396,608	BNY Mellon Institutional Cash Reserve, Series B		100,639
1,086,509	BNY Mellon Overnight Government Fund		1,086,509
	Total Securities Held as Collateral for Securities on Loan (Cost $1,483,117)		1,187,148
Total Investments — 100.3%
(Cost $200,438,214)			239,782,265
Net Other Assets (Liabilities) — (0.3)%			(612,213	)
NET ASSETS — 100.0%		$	239,170,052

(a) Represents non-income producing security.

(b) Represents that all or a portion of the security was on loan as of March 31, 2011.

ADR — American Depository Receipt

See accompanying notes to the financial statements.

9

Sterling Capital Mid Value Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (95.5%)
		Consumer Discretionary (17.9%)
	513,412	Chico’s FAS, Inc.	$	7,649,839
	362,425	eBay, Inc.(a)		11,249,672
	118,057	Gannett Co., Inc.		1,798,008
	176,089	International Speedway Corp., Class A		5,247,452
	695,942	Interpublic Group of Cos., Inc. (The)		8,747,991
	205,970	Omnicom Group, Inc.		10,104,888
	404,061	Select Comfort Corp.(a)		4,872,976
	240,826	Universal Technical Institute, Inc.		4,684,066
	378,083	Viacom, Inc., Class B		17,588,421
				71,943,313
		Energy (5.2%)
	540,918	EXCO Resources, Inc.		11,175,366
	260,526	Forest Oil Corp.(a)		9,855,698
				21,031,064
		Financial Services (34.0%)
	59,028	Alliance Data Systems Corp.(a)(b)		5,069,915
	452,997	Annaly Capital Management, Inc., REIT		7,904,798
	460,892	Aspen Insurance Holdings, Ltd.		12,702,183
	148,628	Assurant, Inc.		5,723,664
	267,003	Assured Guaranty, Ltd.		3,978,345
	544,900	E*Trade Financial Corp.(a)		8,516,787
	321,385	Endurance Specialty Holdings, Ltd.		15,690,016
	22,125	Enstar Group, Ltd.(a)		2,209,845
	350,567	Fair Isaac Corp.		11,081,423
	226,752	Fidelity National Information Services, Inc.		7,412,523
	523,550	Leucadia National Corp.		19,654,067
	400,820	MI Developments, Inc., Class A		11,615,764
	168,886	StanCorp Financial Group, Inc.		7,789,022
	429,084	Willis Group Holdings PLC		17,317,830
				136,666,182
		Health Care (14.7%)
	84,500	Becton Dickinson & Co.		6,727,890
	273,113	Covidien PLC		14,185,489
	102,057	Genzyme Corp.(a)		7,771,641
	369,000	Omnicare, Inc.(b)		11,066,310
	177,442	WellPoint, Inc.		12,383,677
	116,022	Zimmer Holdings, Inc.(a)		7,022,812
				59,157,819
		Producer Durables (7.7%)
	171,195	General Dynamics Corp.		13,106,689
	308,719	Lexmark International, Inc., Class A(a)		11,434,952
	611,367	Xerox Corp.		6,511,059
				31,052,700
		Technology (14.2%)
	715,049	CA, Inc.		17,289,885
	124,848	Computer Sciences Corp.		6,083,843

Shares		Fair Value
COMMON STOCKS — (continued)
	Technology — (continued)
203,675	DST Systems, Inc.	$	10,758,113
689,096	EarthLink, Inc.		5,395,622
22,875	MicroStrategy, Inc., Class A(a)		3,076,230
286,300	SAIC, Inc.(a)		4,844,196
339,003	Synopsys, Inc.(a)		9,373,433
			56,821,322
	Utilities (1.8%)
192,561	FirstEnergy Corp.		7,142,087
	Total Common Stocks (Cost $285,643,552)		383,814,487
EXCHANGE TRADED FUND (4.0%)
332,600	iShares Russell MidCap Value Index Fund		16,018,016
	Total Exchange Traded Fund (Cost $14,586,193)		16,018,016
INVESTMENT COMPANY (0.6%)
2,418,478	Federated Treasury Obligations Fund, Institutional Shares		2,418,478
	Total Investment Company (Cost $2,418,478)		2,418,478
Principal Amount
SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (0.6%)
$    1,242,467	BNY Mellon Institutional Cash Reserve, Series B		315,276
1,943,390	BNY Mellon Overnight Government Fund		1,943,390
	Total Securities Held as Collateral for Securities on Loan (Cost $3,185,857)		2,258,666
Total Investments — 100.7%
(Cost $305,834,080)			404,509,647
Net Other Assets (Liabilities) — (0.7)%			(2,694,637	)
NET ASSETS — 100.0%		$	401,815,010

(a) Represents non-income producing security.

(b) Represents that all or a portion of the security was on loan as of March 31, 2011.

REIT — Real Estate Investment Trust

See accompanying notes to the financial statements.

10

Sterling Capital Small Value Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (96.6%)
		Consumer Discretionary (11.2%)
	120,758	Cambium Learning Group, Inc.(a)	$	410,577
	77,400	Chico’s FAS, Inc.		1,153,260
	75,700	Entercom Communications Corp., Class A(a)		834,214
	158,200	Exide Technologies(a)		1,768,676
	29,696	Kirkland’s, Inc.(a)		458,506
	43,091	Meredith Corp.(b)		1,461,647
	131,719	Regis Corp.		2,336,695
	37,017	Signet Jewelers, Ltd.(a)		1,703,523
				10,127,098
		Energy (2.2%)
	109,385	Resolute Energy Corp.(a)(b)		1,984,244
		Financial Services (29.9%)
	81,400	AMERISAFE, Inc.(a)		1,799,754
	60,852	Aspen Insurance Holdings, Ltd.		1,677,081
	67,342	Assured Guaranty, Ltd.		1,003,396
	46,108	Avatar Holdings, Inc.(a)		912,477
	139,600	Bank Mutual Corp.		590,508
	67,270	Brookline Bancorp, Inc.		708,353
	12,324	EastGroup Properties, Inc., REIT		541,886
	50,481	Endurance Specialty Holdings, Ltd.		2,464,483
	4,601	Enstar Group, Ltd.(a)		459,548
	79,200	Fair Isaac Corp.		2,503,512
	179,100	First American Financial Corp.		2,955,150
	9,213	First Citizens BancShares, Inc., Class A		1,847,944
	44,463	Horace Mann Educators Corp.		746,978
	113,300	Investment Technology Group, Inc.(a)		2,060,927
	47,452	MI Developments, Inc., Class A		1,375,159
	67,235	Parkway Properties, Inc., REIT		1,142,995
	42,423	StanCorp Financial Group, Inc.		1,956,549
	103,870	Washington Federal, Inc.		1,801,106
	63,200	Westfield Financial, Inc.		572,592
				27,120,398
		Health Care (6.6%)
	53,519	Coventry Health Care, Inc.(a)		1,706,721
	48,500	Teleflex, Inc.		2,812,030
	56,700	VCA Antech, Inc.(a)		1,427,706
				5,946,457
		Materials & Processing (9.7%)
	40,039	Cabot Microelectronics Corp.(a)(b)		2,092,038
	131,960	Graham Packaging Co., Inc.(a)		2,300,063
	63,257	Mueller Industries, Inc.		2,316,471
	59,336	Sensient Technologies Corp.		2,126,602
				8,835,174
		Producer Durables (19.0%)
	116,536	Covanta Holding Corp.(b)		1,990,435
	248,700	EnergySolutions, Inc.		1,482,252
	59,400	FTI Consulting, Inc.(a)		2,276,802
	54,200	Granite Construction, Inc.		1,523,020
	78,200	Harsco Corp.		2,759,678
	63,556	PHH Corp.(a)		1,383,614
	86,060	SYKES Enterprises, Inc.(a)		1,701,406
	84,100	TeleTech Holdings, Inc.(a)		1,629,858

Shares		Fair Value
COMMON STOCKS — (continued)
	Producer Durables — (continued)
121,118	UTi Worldwide, Inc.	$	2,451,428
			17,198,493
	Technology (18.0%)
47,214	Black Box Corp.		1,659,572
121,798	Compuware Corp.(a)		1,406,767
64,817	DST Systems, Inc.		3,423,634
313,971	EarthLink, Inc.		2,458,393
178,189	Lionbridge Technologies, Inc.(a)		611,188
15,518	MicroStrategy, Inc., Class A(a)		2,086,861
174,123	National Semiconductor Corp.		2,496,924
166,717	Orbotech, Ltd.(a)		2,140,646
			16,283,985
	Total Common Stocks (Cost $71,442,618)		87,495,849
RIGHTS (0.0%)
79,600	Voyager Learning Co., Contingent Right(c)		0
	Total Rights (Cost $0)		0
INVESTMENT COMPANY (3.6%)
3,306,813	Federated Treasury Obligations Fund, Institutional Shares		3,306,813
	Total Investment Company (Cost $3,306,813)		3,306,813
Principal Amount
SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (0.9%)
$260,458	BNY Mellon Institutional Cash Reserve, Series B		66,091
783,002	BNY Mellon Overnight Government Fund		783,002
	Total Securities Held as Collateral for Securities on Loan (Cost $1,043,460)		849,093
Total Investments — 101.2%
(Cost $75,792,891)			91,651,755
Net Other Assets (Liabilities) — (1.2)%			(1,076,197	)
NET ASSETS — 100.0%		$	90,575,558

(a) Represents non-income producing security.

(b) Represents that all or a portion of the security was on loan as of March 31, 2011.

(c) Security was fair valued under methods approved by the Board of Trustees.

REIT — Real Estate Investment Trust

See accompanying notes to the financial statements.

11

Sterling Capital International Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (98.9%)
		Australia (2.3%)
	99,821	Asciano, Ltd.	$	179,655
	206,206	MAp Group		648,400
	27,795	Newcrest Mining, Ltd.		1,144,816
				1,972,871
		Austria (1.2%)
	20,113	Erste Group Bank AG		1,014,885
		Brazil (2.6%)
	28,503	Diagnosticos da America SA		364,875
	10,065	Embraer SA, ADR		339,190
	67,841	Hypermarcas SA(a)		893,383
	15,801	Petroleo Brasileiro SA, ADR		638,834
				2,236,282
		Canada (5.9%)
	21,717	Barrick Gold Corp.		1,128,746
	7,684	Cenovus Energy, Inc.		303,556
	1,473	First Quantum Minerals, Ltd.		190,556
	7,844	Goldcorp, Inc.		391,108
	29,448	Ivanhoe Mines, Ltd.(a)		807,656
	2,507	Pan American Silver Corp.(b)		93,117
	16,764	Potash Corp. of Saskatchewan, Inc.		988,894
	3,354	Silver Wheaton Corp.		145,715
	23,956	Suncor Energy, Inc.		1,074,375
				5,123,723
		China (7.3%)
	32,000	Anhui Conch Cement Co., Ltd., H Shares		200,140
	7,903	Baidu, Inc., ADR(a)		1,089,113
	358,000	Belle International Holdings, Ltd.		656,302
	137,400	Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd., H Shares(a)		352,219
	49,564	China Merchants Holdings International Co., Ltd.		209,316
	76,000	China National Building Material Co., Ltd., H Shares		278,947
	164,000	China Resources Enterprise, Ltd.		666,242
	174,000	China Yurun Food Group, Ltd.		583,836
	15,470	Ctrip.Com International, Ltd., ADR(a)		641,850
	150,000	Dongfeng Motor Group Co., Ltd., H Shares		255,318
	500,000	Geely Automobile Holdings, Ltd.(b)		185,767
	148,000	Golden Eagle Retail Group, Ltd.		319,268
	229,000	Intime Department Store Group Co., Ltd.		310,886
	42,000	Lianhua Supermarket Holdings, Ltd., H Shares		166,844
	64,000	Tingyi Cayman Islands Holding Corp.		156,492
	105,000	Wumart Stores, Inc.		228,937
				6,301,477
		Czech Republic (0.9%)
	3,096	Komercni Banka AS		781,285
		Denmark (2.0%)
	5,527	Carlsberg AS, Class B(b)		595,120
	8,803	Novo Nordisk AS, Class B(b)		1,105,980
				1,701,100
		Finland (1.2%)
	6,170	Fortum OYJ(a)		209,508
	30,031	Stora Enso OYJ, Class R		357,715

Shares			Fair Value
	COMMON STOCKS — (continued)
		Finland — (continued)
	20,158	UPM-Kymmene OYJ(a)	$	426,231
				993,454
		France (6.4%)
	2,667	Aeroports de Paris		245,678
	10,123	BNP Paribas		740,410
	6,448	CFAO SA		242,022
	12,302	Cie Generale d’Optique Essilor International SA		913,558
	5,670	Danone SA		370,396
	5,501	Eutelsat Communications SA		219,730
	861	IIiad SA		103,229
	139,577	L’Occitane International SA(a)		344,163
	5,226	LVMH Moet Hennessy Louis Vuitton SA		827,278
	2,826	PPR		433,139
	3,117	Schneider Electric SA		532,737
	8,604	SES SA		221,617
	3,055	Technip SA(b)		325,797
				5,519,754
		Germany (7.9%)
	3,363	Allianz SE		471,979
	4,090	Bayerische Motoren Werke AG		340,534
	2,010	Bilfinger Berger SE		174,474
	1,478	Brenntag AG(a)		164,134
	13,508	Daimler AG(a)(b)		954,301
	21,065	Fraport AG Frankfurt Airport Services Worldwide		1,543,708
	9,896	Fresenius SE & Co. KGaA		915,382
	5,645	HeidelbergCement AG		394,283
	456	Henkel AG & Co. KGaA		23,824
	3,079	Henkel AG & Co. KGaA, Preference Shares		190,730
	6,200	MAN SE		773,221
	1,689	Siemens AG		231,489
	3,901	Volkswagen AG, Preference Shares		632,733
				6,810,792
		Greece (0.5%)
	15,529	Coca-Cola Hellenic Bottling Co. SA		417,044
		Hong Kong (4.1%)
	363,000	Hang Lung Properties, Ltd.		1,589,004
	186,000	Li & Fung, Ltd.		952,890
	166,000	Sands China, Ltd.(a)		370,475
	88,000	United Laboratories International Holdings, Ltd. (The)		158,384
	160,000	Wynn Macau, Ltd.(b)		446,356
				3,517,109
		India (4.1%)
	44,117	Adani Enterprises, Ltd.(a)		659,405
	8,306	Axis Bank, Ltd.		261,473
	7,508	HDFC Bank, Ltd.		394,947
	11,300	Housing Development Finance Corp.		177,678
	106,483	ITC, Ltd.		434,815
	17,822	JSW Steel, Ltd.		366,191
	14,868	Larsen & Toubro, Ltd.(a)		550,744
	7,366	Mahindra & Mahindra, Ltd.		115,681
	70,917	Mundra Port & Special Economic Zone, Ltd.(a)		217,307
	6,273	State Bank of India, Ltd.		388,984
				3,567,225

Continued

12

Sterling Capital International Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Shares			Fair Value
	COMMON STOCKS — (continued)
		Ireland (1.5%)
	28,036	CRH PLC	$	643,665
	65,249	Dragon Oil PLC(a)		625,945
				1,269,610
		Israel (0.6%)
	9,868	Teva Pharmaceutical Industries, Ltd., ADR		495,078
		Italy (1.8%)
	13,264	Buzzi Unicem SpA(b)		193,240
	21,106	Enel SpA		133,045
	43,116	Fiat Industrial SpA(a)		618,981
	11,423	Saipem SpA		607,234
				1,552,500
		Japan (8.5%)
	4,000	Aisin Seiki Co., Ltd.		138,879
	22,000	Asahi Glass Co., Ltd.		276,653
	4,486	Canon, Inc.		195,231
	900	Daikin Industries, Ltd.		26,952
	3,831	Denso Corp.		127,117
	3,125	FANUC CORP.		472,995
	13,606	Honda Motor Co., Ltd.		511,165
	82,000	Isuzu Motors, Ltd.		324,333
	28,700	Itochu Corp.		300,525
	38	KDDI Corp.		235,273
	25,600	Komatsu, Ltd.		869,440
	12,700	Mitsubishi Corp.		352,540
	25,000	Mitsubishi Electric Corp.		295,143
	4,800	Mitsui & Co., Ltd.		86,040
	2,300	Nidec Corp.(b)		199,086
	1,400	Nintendo Co., Ltd.		378,192
	28,700	Nissan Motor Co., Ltd.		254,636
	1,400	Nitto Denko Corp.		74,225
	1,350	SMC Corp.		222,187
	10,000	Softbank Corp.(b)		399,134
	19,800	Suzuki Motor Corp.		442,513
	15,654	Toyota Motor Corp.		630,451
	14,760	Unicharm Corp.		536,776
				7,349,486
		Korea (South) (1.9%)
	20,005	Celltrion, Inc.		634,645
	2,674	Hyundai Motor Co.		494,847
	644	Samsung Electronics Co., Ltd.		547,161
				1,676,653
		Mexico (0.8%)
	5,821	Fomento Economico Mexicano SAB de CV, ADR		341,693
	60,622	Genomma Lab Internacional SAB de CV, Class B(a)		137,100
	53,586	Grupo Financiero Banorte SAB de CV, Series O		252,287
				731,080
		Netherlands (2.0%)
	2,040	ASML Holding NV(a)		89,912
	4,133	Heineken NV		225,827
	67,164	ING Groep NV, CVA(a)		850,091
	19,531	Koninklijke KPN NV(b)		332,704
	6,287	Koninklijke Philips Electronics NV(a)(b)		200,963
				1,699,497

Shares			Fair Value
	COMMON STOCKS — (continued)
		Norway (0.4%)
	299,005	Marine Harvest ASA	$	371,441
		Portugal (0.2%)
	8,335	Jeronimo Martins SGPS SA		134,070
		Russia (9.8%)
	34,648	Gazprom OAO, ADR		1,120,516
	1,882,015	IDGC Holding, JSC(a)		319,002
	17,872	Magnit OAO, OJSC, GDR		541,700
	917	Mail.ru Group, Ltd., GDR(a)(c)		27,501
	2,861	NovaTek OAO, GDR(b)		397,679
	2,238	Novorossiysk Commercial Sea Port, PJSC, GDR		22,581
	23,274	O’Key Group SA, GDR(a)		293,020
	6,900	Pharmstandard, GDR(a)		192,855
	118,140	Rosneft Oil Co., GDR		1,079,209
	634,590	Sberbank of Russia		2,384,789
	200,446	VTB Bank, OJSC		1,403,122
	15,585	X5 Retail Group NV, GDR(a)		656,908
				8,438,882
		South Africa (1.2%)
	34,048	Aspen Pharmacare Holdings, Ltd.		397,604
	43,257	Shoprite Holdings, Ltd.		663,530
				1,061,134
		Sweden (1.5%)
	15,041	Atlas Copco AB, Class A		399,861
	7,536	Elekta AB, Class B		301,349
	35,953	Volvo AB, Class B(a)		632,263
				1,333,473
		Switzerland (3.8%)
	4,096	Dufry Group(a)		471,363
	371	Flughafen Zuerich AG		154,499
	12,527	Nobel Biocare Holding AG(a)		259,678
	7,317	Novartis AG		396,879
	1,227	Swatch Group AG (The)		542,498
	4,727	Swiss Reinsurance Co., Ltd.		270,445
	2,611	Syngenta AG		848,540
	19,010	UBS AG(a)		341,083
				3,284,985
		Taiwan (3.2%)
	71,350	HTC Corp.		2,790,284
		Ukraine (0.2%)
	933,947	Raiffeisen Bank Aval(a)		50,788
	1,101,903	Ukrsotsbank JSCB(a)		88,360
				139,148
		United Kingdom (15.1%)
	8,984	AMEC PLC		171,938
	38,773	ARM Holdings PLC		357,650
	50,906	Barclays PLC		226,658
	73,428	BG Group PLC		1,826,983
	40,280	BHP Billiton PLC		1,589,591
	9,442	Burberry Group PLC		177,825
	48,298	Cairn Energy PLC(a)		358,035
	42,746	Compass Group PLC		384,355
	15,684	Diageo PLC		298,151
	25,427	Hikma Pharmaceuticals PLC		301,032
	47,758	HSBC Holdings PLC		491,094

Continued

13

Sterling Capital International Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	United Kingdom — (continued)
1,159,841	Lloyds Banking Group PLC(a)	$	1,080,838
7,884	Premier Oil PLC(a)		252,193
5,324	Reckitt Benckiser Group PLC		273,477
20,227	Rio Tinto PLC		1,420,913
20,736	Rolls-Royce Group PLC(a)		205,910
36,042	Royal Dutch Shell PLC, Class A		1,309,020
8,928	Shire PLC		259,378
12,065	Smith & Nephew PLC		136,064
241,832	Vodafone Group PLC		684,730
21,206	WPP PLC		261,435
41,645	Xstrata PLC		973,382
			13,040,652
	Total Common Stocks (Cost $70,170,199)		85,324,974
EXCHANGE TRADED FUND (0.3%)
	United States (0.3%)
5,013	Market Vectors Gold Miners		301,081
	Total Exchange Traded Fund (Cost $227,205)		301,081
INVESTMENT COMPANY (1.0%)
	United States (1.0%)
881,295	Federated Treasury Obligations Fund, Institutional Shares		881,295
	Total Investment Company (Cost $881,295)		881,295
Principal Amount
SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (5.6%)
$     19,738	BNY Mellon Institutional Cash Reserve, Series B		5,008
4,805,069	BNY Mellon Overnight Government Fund		4,805,069
	Total Securities Held as Collateral for Securities on Loan (Cost $4,824,807)		4,810,077
Total Investments — 105.8% (Cost $76,103,506)			91,317,427
Net Other Assets (Liabilities) — (5.8)%			(5,027,887	)
NET ASSETS — 100.0%		$	86,289,540

(a) Represents non-income producing security.

(b) Represents that all or a portion of the security was on loan as of March 31, 2011.

(c) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors.The Investment Advisor, using board approved procedures, has deemed these securities or a portion of these securities to be liquid.

ADR — American Depository Receipt

CVA — Share Certificate

GDR — Global Depository Receipt

JSC — Joint Stock Company

JSCB — Joint Stock Commercial Bank

OJSC — Open Joint Stock Company

PJSC — Public Joint Stock Company

Sector	Percentage of net assets
Consumer Discretionary		15.3	%
Consumer Staples		10.5	%
Energy		11.7	%
Exchange Traded Fund		0.3	%
Financials		15.4	%
Health Care		8.1	%
Industrials		14.1	%
Information Technology		6.3	%
Materials		14.7	%
Telecommunication Services		2.0	%
Utilities		0.8	%
Cash Equivalents		6.6	%
		105.8	%

Continued

14

Sterling Capital International Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Forward Foreign Currency Exchange Contracts	Counterparty		Delivery Date		Contract Amount in Local Currency				Contract Amount in U.S. Dollars			Fair Value			Unrealized Depreciation
Short
Euro vs. U.S. Dollar		Deutsche Bank		06/15/2011		(655,509	)		$	(913,465	)	$	(927,560	)	$	(14,095	)
Euro vs. U.S. Dollar		Credit Suisse First Boston		06/15/2011		(1,297,917	)			(1,808,342	)		(1,836,580	)		(28,238	)
Total Short Contracts									$	(2,721,807	)	$	(2,764,140	)	$	(42,333	)
Long								��
Japanese Yen vs. U.S. Dollar		J. P. Morgan Securities		06/15/2011		67,108,534			$	820,398		$	807,187		$	(13,211	)
Total Long Contracts									$	820,398		$	807,187		$	(13,211	)

See accompanying notes to the financial statements.

15

Sterling Capital Special Opportunities Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares		Fair Value
COMMON STOCKS (90.4%)
	Consumer Discretionary (7.9%)
1,262,000	Comcast Corp., Class A	$	31,196,640
431,000	Yum! Brands, Inc.		22,144,780
			53,341,420
	Consumer Staples (6.6%)
1,641,408	Dole Food Co., Inc.(a)(b)		22,372,391
309,500	Energizer Holdings, Inc.(b)		22,024,020
			44,396,411
	Energy (15.4%)
235,000	Apache Corp.(c)		30,766,200
108,000	EOG Resources, Inc.(a)		12,799,080
468,000	Halliburton Co.(c)		23,325,120
300,000	Southwestern Energy Co.(a)(b)		12,891,000
1,063,000	Weatherford International, Ltd.(b)(c)		24,023,800
			103,805,200
	Financials (3.6%)
81,000	CME Group, Inc.		24,425,550
	Health Care (22.4%)
270,000	Becton Dickinson & Co.(a)		21,497,400
678,000	Gilead Sciences, Inc.(b)		28,774,320
200,000	McKesson Corp.(c)		15,810,000
785,000	Merck & Co., Inc.		25,912,850
582,500	Teva Pharmaceutical Industries, Ltd., ADR		29,224,025
667,000	UnitedHealth Group, Inc.		30,148,400
			151,366,995
	Industrials (6.2%)
257,037	L-3 Communications Holdings, Inc.(a)		20,128,567
1,722,000	Southwest Airlines Co.(a)		21,748,860
			41,877,427
	Information Technology (27.1%)
2,201,000	Activision Blizzard, Inc.(a)		24,144,970
841,000	Adobe Systems, Inc.(b)		27,887,560
175,000	Akamai Technologies, Inc.(b)		6,650,000
1,342,000	Cisco Systems, Inc.		23,015,300
1,425,000	Dell, Inc.(b)		20,676,750
806,000	eBay, Inc.(b)(c)		25,018,240
450,000	Harris Corp.(a)		22,320,000
377,000	Intuit, Inc.(a)(b)(c)		20,018,700

Shares		Fair Value
COMMON STOCKS — (continued)
	Information Technology — (continued)
241,300	Itron, Inc.(a)(b)	$	13,618,972
			183,350,492
	Utilities (1.2%)
142,200	NextEra Energy, Inc.		7,838,064
	Total Common Stocks (Cost $487,597,133)		610,401,559
INVESTMENT COMPANY (9.6%)
64,831,681	Federated Treasury Obligations Fund, Institutional Shares		64,831,681
	Total Investment Company (Cost $64,831,681)		64,831,681
Principal Amount
SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (1.4%)
$ 775,344	BNY Mellon Institutional Cash Reserve, Series B		196,743
9,395,323	BNY Mellon Overnight Government Fund		9,395,323
	Total Securities Held as Collateral for Securities on Loan (Cost $10,170,667)		9,592,066
Total Investments — 101.4%
(Cost $562,599,481)			684,825,306
Net Other Assets (Liabilities) — (1.4)%			(9,622,997	)
NET ASSETS — 100.0%		$	675,202,309

(a) Represents that all or a portion of the security was on loan as of March 31, 2011.

(b) Represents non-income producing security.

(c) Security held as collateral for written call option.

ADR — American Depository Receipt

See accompanying notes to the financial statements.

16

Sterling Capital Equity Income Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares		Fair Value
COMMON STOCKS (82.7%)
	Consumer Discretionary (11.7%)
319,000	McDonald’s Corp.	$	24,272,710
298,000	Omnicom Group, Inc.(a)		14,619,880
941,000	Pearson PLC, ADR		16,749,800
525,000	Target Corp.		26,255,250
			81,897,640
	Consumer Staples (16.8%)
652,100	Archer-Daniels-Midland Co.(b)		23,482,121
200,000	Diageo PLC, ADR		15,244,000
301,600	Kimberly-Clark Corp.		19,685,432
423,900	Kraft Foods, Inc., Class A		13,293,504
401,000	PepsiCo, Inc.		25,828,410
312,200	Philip Morris International, Inc.		20,489,686
			118,023,153
	Energy (17.4%)
209,000	Chevron Corp.		22,452,870
340,000	ConocoPhillips(a)		27,152,400
395,781	Kinder Morgan Management LLC(a)(c)		25,959,276
711,500	Natural Resource Partners LP(a)		24,952,305
133,700	Royal Dutch Shell PLC, ADR(a)		9,792,188
275,000	Teekay LNG Partners LP		11,275,000
			121,584,039
	Financials (0.6%)
412,818	Hudson City Bancorp, Inc.(a)		3,996,078
	Health Care (9.6%)
534,000	Abbott Laboratories		26,192,700
413,000	Novartis AG, ADR		22,446,550
922,000	Pfizer, Inc.(a)		18,725,820
			67,365,070
	Industrials (9.7%)
195,000	Illinois Tool Works, Inc.		10,475,400
648,000	Koninklijke Philips Electronics NV(c)		20,846,160
256,000	Lockheed Martin Corp.(a)		20,582,400
430,000	Waste Management, Inc.(a)		16,056,200
			67,960,160
	Information Technology (10.2%)
883,000	Intel Corp.		17,810,110
416,000	Paychex, Inc.(a)		13,045,760
1,439,200	Taiwan Semiconductor Manufacturing Co., Ltd., ADR(b)		17,529,456
670,000	Texas Instruments, Inc.(b)		23,155,200
			71,540,526
	Telecommunication Services (6.7%)
718,000	Rogers Communications, Inc., Class B(a)		26,135,200

Shares		Fair Value
COMMON STOCKS — (continued)
	Telecommunication Services — (continued)
535,000	Verizon Communications, Inc.(b)	$	20,618,900
			46,754,100
	Total Common Stocks (Cost $468,050,801)		579,120,766
EXCHANGE TRADED FUNDS (0.0%)
2,100	Nuveen Select Tax Free		27,825
8,000	Nuveen Select Tax Free 3		104,240
1,000	Western Asset Municipal Defined Opportunity Trust, Inc.		20,010
	Total Exchange Traded Funds (Cost $148,688)		152,075
INVESTMENT COMPANY (17.0%)
118,567,326	Federated Treasury Obligations Fund, Institutional Shares		118,567,326
	Total Investment Company (Cost $118,567,326)		118,567,326
Principal Amount
SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (4.2%)
$    502,759	BNY Mellon Institutional Cash Reserve, Series B		127,575
29,448,193	BNY Mellon Overnight Government Fund		29,448,193
	Total Securities Held as Collateral for Securities on Loan (Cost $29,950,952)		29,575,768
Total Investments — 103.9% (Cost $616,717,767)			727,415,935
Net Other Assets (Liabilities) — (3.9)%			(26,978,209	)
NET ASSETS — 100.0%		$	700,437,726

(a) Represents that all or a portion of the security was on loan as of March 31, 2011.

(b) Security held as collateral for written call option.

(c) Represents non-income producing security.

ADR — American Depository Receipt

See accompanying notes to the financial statements.

17

Sterling Capital Short-Term Bond Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS (12.1%)
$   366,004	Banc of America Funding Corp., Series 2005-1, Class 1A1, 5.500%, 2/25/35	$	373,364
793,225	Freddie Mac, Series 3640, Class JA, 1.500%, 3/15/15(c)		796,317
770,144	Freddie Mac, Series 2636, Class B, 5.500%, 7/15/17(c)		813,575
1,086,402	Freddie Mac, Series 3414, Class A, 4.500%, 7/15/22(c)		1,136,792
643,744	Freddie Mac, Series 3591, Class A, 4.000%, 1/15/23(c)		671,855
641,351	Ginnie Mae, Series 2004-5, Class VB, 6.000%, 5/20/23		661,175
1,692,095	Ginnie Mae, Series 2010-34, Class AD, 2.500%, 10/20/32		1,715,316
405,891	Ginnie Mae, Series 2005-58, Class NJ, 4.500%, 8/20/35		414,105
543,608	Structured Asset Securities Corp., Series 2003-10, Class A, 6.000%, 4/25/33		572,524
463,149	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		484,806
	Total Collateralized Mortgage Obligations (Cost $7,647,618)		7,639,829
COMMERCIAL MORTGAGE-BACKED SECURITIES (12.6%)
680,000	Banc of America Commercial Mortgage, Inc., Series 2004-3, Class A5, 5.450%, 6/10/39(a)		732,086
600,000	Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A6, 4.877%, 7/10/42(a)		634,255
500,000	Banc of America Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.190%, 11/10/42(a)		521,714
420,000	Bear Stearns Commercial Mortgage Securities, Series 2003-T12, Class A4, 4.680%, 8/13/39(a)		441,507
340,000	Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4, 4.674%, 6/11/41		357,242
155,000	Bear Stearns Commercial Mortgage Securities, Series 2004-T16, Class A6, 4.750%, 2/13/46(a)		163,002
120,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2002-CP5, Class C, 5.230%, 12/15/35		123,547
650,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-C5, Class A4, 4.829%, 11/15/37		687,164
115,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class A4, 5.014%, 2/15/38(a)		121,672
48,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class AJ, 5.075%, 2/15/38(a)		49,507
600,000	Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A3, 5.467%, 9/15/39		635,235
600,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class AM, Series 2005-LDP2, Class AM, 4.780%, 7/15/42		622,861

Principal Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$   200,000	LB-UBS Commercial Mortgage Trust, Series 2004-C7, Class A6, 4.786%, 10/15/29(a)	$	211,418
600,000	LB-UBS Commercial Mortgage Trust, Series 2005-C2, Class A5, 5.150%, 4/15/30(a)		641,631
384,000	LB-UBS Commercial Mortgage Trust, Series 2004-C2, Class A4, 4.367%, 3/15/36		400,553
316,000	Morgan Stanley Capital I, Series 2005-HQ6, Class A4A, 4.989%, 8/13/42		336,934
650,000	Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class A5, 5.215%, 1/15/41(a)		694,503
600,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class AMFX, 5.179%, 7/15/42(a)		631,208
	Total Commercial Mortgage-Backed Securities (Cost $7,978,848)		8,006,039
CORPORATE BONDS (52.9%)
	Consumer Discretionary (3.2%)
1,000,000	Macy’s Retail Holdings, Inc., 5.750%, 7/15/14		1,070,000
900,000	Royal Caribbean Cruises, Ltd., 6.875%, 12/1/13		960,750
			2,030,750
	Consumer Staples (4.9%)
875,000	Altria Group, Inc., 8.500%, 11/10/13		1,020,434
1,000,000	Anheuser-Busch InBev Worldwide, Inc., 3.000%, 10/15/12		1,028,646
1,000,000	Kraft Foods, Inc., 6.250%, 6/1/12		1,060,746
			3,109,826
	Energy (5.1%)
1,000,000	BP Capital Markets PLC, 5.250%, 11/7/13		1,081,463
1,000,000	Energy Transfer Partners LP, 5.650%, 8/1/12		1,050,950
1,000,000	Spectra Energy Capital LLC, 5.900%, 9/15/13		1,089,688
			3,222,101
	Financials (28.3%)
1,000,000	ABN AMRO Bank NV, 3.000%, 1/31/14(b)		998,225
1,000,000	American Express Bank FSB, BKNT, 5.500%, 4/16/13		1,072,539
1,000,000	Bank of America Corp., 5.125%, 11/15/14		1,064,308
1,000,000	Citigroup, Inc., 5.625%, 8/27/12		1,051,207
1,000,000	Citigroup, Inc., 5.000%, 9/15/14		1,044,203
650,000	Ford Motor Credit Co. LLC, 7.000%, 10/1/13		701,654
1,000,000	General Electric Capital Corp., 4.800%, 5/1/13		1,062,511
1,000,000	General Electric Capital Corp., MTN, Series A, 6.000%, 6/15/12		1,058,935
1,000,000	Goldman Sachs Group, Inc. (The), 5.250%, 10/15/13		1,073,843
1,000,000	HCP, Inc. REIT, 2.700%, 2/1/14		1,002,995
1,000,000	HSBC Finance Corp., 4.750%, 7/15/13		1,066,582
1,000,000	International Lease Finance Corp., MTN, 5.750%, 6/15/11		1,003,750
1,000,000	JPMorgan Chase & Co., 5.125%, 9/15/14		1,073,320
1,000,000	Metropolitan Life Global Funding I, 2.875%, 9/17/12(b)		1,019,738
1,000,000	Morgan Stanley, 5.300%, 3/1/13		1,062,867

Continued

18

Sterling Capital Short-Term Bond Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$1,000,000	Prudential Financial, Inc., MTN, 2.750%, 1/14/13	$	1,019,567
500,000	UBS AG, BKNT, 2.250%, 8/12/13		504,840
1,000,000	Wells Fargo Capital XIII, GMTN, 7.700%, 12/29/49(a)		1,030,000
			17,911,084
	Health Care (1.7%)
500,000	Amgen, Inc., 4.850%, 11/18/14		547,118
540,000	UnitedHealth Group, Inc., 5.500%, 11/15/12		578,106
			1,125,224
	Information Technology (1.7%)
1,000,000	Xerox Corp., 5.650%, 5/15/13		1,077,110
	Materials (4.6%)
2,024,000	Dow Chemical Co. (The), 4.850%, 8/15/12		2,120,280
705,000	Sealed Air Corp., 7.875%, 6/15/17		788,360
			2,908,640
	Telecommunication Services (3.4%)
1,000,000	COX Communications, Inc., 7.125%, 10/1/12		1,085,567
1,000,000	Telecom Italia Capital SA, 5.250%, 11/15/13		1,055,942
			2,141,509
	Total Corporate Bonds (Cost $33,437,876)		33,526,244
MORTGAGE-BACKED SECURITIES (1.5%)
	Fannie Mae(c) (1.1%)
83,295	6.500%, 8/1/13, Pool #251901		87,489
120,189	6.000%, 3/1/16, Pool #253702		130,893
118,101	6.000%, 4/1/16, Pool #535846		128,619
215,964	6.500%, 4/1/16, Pool #253706		236,683
93,409	6.000%, 8/1/16, Pool #545125		101,904
			685,588
	Freddie Mac(c) (0.4%)
36,438	6.500%, 5/1/13, Pool #E00548		38,115
202,902	6.000%, 9/1/16, Pool #E01049		220,272
			258,387
	Total Mortgage-Backed Securities (Cost $872,075)		943,975
MUNICIPAL BONDS (6.5%)
	California (1.7%)
1,000,000	Northern California Transmission Agency, California-Oregon Transmission Project Refunding Revenue, Series B, 5.370%, 5/1/15		1,062,840
	Illinois (1.6%)
1,000,000	Illinois State, Build America Bonds, Transit Improvements, G.O., 4.200%, 7/1/14		1,006,590
	North Carolina (1.6%)
1,000,000	Brunswick County, NC, Enterprise System Water Utility Improvements Revenue, Build America Bonds, Recovery Zone Economic Development Project, 3.300%, 4/1/15		1,027,200

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia (1.6%)
$   310,000	Danville, VA, Refunding G.O., Series B, Taxable (Assured Guaranty, State Aid Withholding), 4.000%, 3/1/13	$	324,489
215,000	Danville, VA, Refunding G.O., Series B, Taxable (Assured Guaranty, State Aid Withholding), 4.200%, 3/1/14		228,070
430,000	Danville, VA, Refunding G.O., Series B, Taxable (Assured Guaranty, State Aid Withholding), 4.550%, 3/1/15		459,765
			1,012,324
	Total Municipal Bonds (Cost $3,984,068)		4,108,954
U.S. GOVERNMENT AGENCIES (8.7%)
	Fannie Mae(c) (4.0%)
2,500,000	1.800%, 2/8/13		2,512,750
	Federal Farm Credit Bank (1.6%)
1,000,000	2.750%, 5/6/14		1,002,399
	Freddie Mac(c) (3.1%)
2,000,000	1.200%, 6/15/12		2,003,092
	Total U.S. Government Agencies (Cost $5,492,796)		5,518,241
Shares
PREFERRED STOCK (1.6%)
	Financials (1.6%)
39,500	Fifth Third Capital Trust VI, 7.250%		1,001,720
	Total Preferred Stock (Cost $996,853)		1,001,720
INVESTMENT COMPANY (5.5%)
3,461,175	Federated Treasury Obligations Fund, Institutional Shares		3,461,175
	Total Investment Company (Cost $3,461,175)		3,461,175
Principal Amount
SHORT TERM INVESTMENTS (0.0%)
$102,608	BNY Mellon Institutional Cash Reserve, Series B		26,037
	Total Short Term Investments (Cost $102,608)		26,037

Continued

19

Sterling Capital Short-Term Bond Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

	Fair Value
Total Investments — 101.4% (Cost $63,973,917)	$	64,232,214
Net Other Assets (Liabilities) — (1.4)%		(911,189	)
NET ASSETS — 100.0%	$	63,321,025

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the final maturity date.

(b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Advisor, using board approved procedures, has deemed these securities or a portion of these securities to be liquid.

(c) On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Macinto conservatorship with FHFA as the conservator. The conservatorship is a statutory process designed to stabilize a troubled institution with the objective of returning the entities to normal business operations.

BKNT —   Bank Note

G.O. —   General Obligation

GMTN —   Global Medium Term Note

MTN —   Medium Term Note

REIT —   Real Estate Investment Trust

See accompanying notes to the financial statements.

20

Sterling Capital Intermediate U.S. Government Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS (5.6%)
$     51,338	Countrywide Alternative Loan Trust, Series 2004-2CB, Class 1A1, 4.250%, 3/25/34	$	51,243
2,914,321	Fannie Mae, Series 2010-129, Class NA, 3.500%, 3/25/25(c)		2,953,370
2,000,000	Freddie Mac, Series K701, Class A2, 3.882%, 11/25/17(c)		2,035,793
4,174,969	Freddie Mac, Series 3644, Class BA, 4.500%, 2/15/29(c)		4,399,445
943,903	Ginnie Mae, Series 1999-17, Class F, 0.554%, 5/16/29(a)		940,206
	Total Collateralized Mortgage Obligations (Cost $10,407,165)		10,380,057
CORPORATE BONDS (8.7%)
	Financials (8.7%)
770,000	Aflac, Inc., 8.500%, 5/15/19		930,831
3,000,000	General Electric Capital Corp., 2.800%, 1/8/13		3,069,588
2,000,000	Goldman Sachs Group, Inc. (The), 5.125%, 1/15/15		2,137,160
2,000,000	MBNA Corp., 5.000%, 6/15/15		2,096,058
2,000,000	Metropolitan Life Global Funding I, 2.000%, 1/10/14(b)		1,988,736
3,000,000	Morgan Stanley, GMTN, 5.750%, 8/31/12		3,182,259
2,000,000	Simon Property Group LP REIT, 10.350%, 4/1/19		2,756,714
	Total Corporate Bonds (Cost $15,860,575)		16,161,346
MORTGAGE-BACKED SECURITIES (23.4%)
	Fannie Mae(c) (12.9%)
2,107,122	5.000%, 1/1/18, Pool #650205		2,256,087
1,952,639	4.500%, 3/1/18, Pool #555292		2,067,607
1,995,457	3.583%, 9/1/20, Pool #FN0000		1,932,766
873,401	5.500%, 1/1/33, Pool #678321		941,041
1,400,308	5.000%, 7/1/33, Pool #724965		1,474,759
705,921	5.000%, 8/1/33, Pool #724365		745,421
180,632	5.000%, 8/1/33, Pool #738751		190,437
478,747	5.000%, 10/1/33, Pool #753298		504,100
2,035,463	6.500%, 11/1/34, Pool #783476		2,283,020
5,603,454	5.500%, 9/1/35, Pool #835787		6,021,653
1,623,797	6.000%, 7/1/37, Pool #938378		1,767,626
3,515,520	5.500%, 8/1/37, Pool #946238		3,751,892
			23,936,409
	Freddie Mac(c) (6.8%)
2,435,298	4.500%, 2/1/18, Pool #E94445		2,576,780
4,902,373	3.500%, 12/1/25, Pool #G14007		4,924,448
3,700,337	5.500%, 2/1/29, Pool #A18613		3,975,481
1,042,864	6.000%, 8/1/37, Pool #P51312		1,128,775
			12,605,484
	Ginnie Mae (3.7%)
810,939	6.500%, 12/20/38, Pool #4311		899,889
1,022,824	6.500%, 1/20/39, Pool #4338		1,135,015
1,319,002	5.000%, 11/20/38, Pool #4283		1,388,868
3,216,078	5.500%, 8/20/39, Pool #4514		3,437,519
			6,861,291
	Total Mortgage-Backed Securities (Cost $41,236,568)		43,403,184

Principal Amount		Fair Value
MUNICIPAL BONDS (1.0%)
	North Carolina (1.0%)
$1,855,000	Brunswick County, NC, Enterprise System Water Utility Improvements Revenue, Build America Bonds, Recovery Zone Economic Development Project, Callable 4/1/20 @ 100, 5.050%, 4/1/22	$	1,795,696
	Total Municipal Bonds (Cost $1,855,000)		1,795,696
U.S. GOVERNMENT AGENCIES (46.6%)
	Fannie Mae(c) (22.7%)
4,000,000	0.284%, 10/18/12(a)		4,002,392
2,000,000	0.400%, 2/1/13, Series 1(a)		2,000,342
3,000,000	4.050%, 2/22/13		3,181,731
10,000,000	5.125%, 1/2/14		10,911,380
6,290,000	2.500%, 7/28/22, STEP		6,273,438
2,400,000	1.000%, 12/15/25, STEP		2,379,845
2,000,000	1.000%, 1/20/26, STEP		1,998,634
2,000,000	1.000%, 1/28/26, STEP		2,000,732
5,000,000	1.000%, 2/17/26, STEP		4,997,470
4,432,000	2.000%, 2/25/26, Series 1, STEP		4,443,975
			42,189,939
	Federal Farm Credit Bank (17.2%)
4,920,000	0.248%, 1/25/13, Series 1(a)		4,917,683
10,000,000	4.670%, 2/27/18		10,955,680
14,800,000	5.050%, 12/21/21		15,986,057
			31,859,420
	Freddie Mac(c) (1.2%)
2,000,000	4.875%, 6/13/18		2,223,796
	Private Export Funding Corp. (5.5%)
4,350,000	4.974%, 8/15/13		4,740,421
5,000,000	4.550%, 5/15/15		5,494,360
			10,234,781
	Total U.S. Government Agencies (Cost $84,059,828)		86,507,936
U.S. TREASURY NOTES (12.0%)
6,000,000	4.625%, 2/15/17		6,687,654
4,000,000	3.500%, 2/15/18		4,164,064
5,000,000	3.625%, 8/15/19		5,168,750
5,000,000	6.250%, 8/15/23		6,209,375
	Total U.S. Treasury Notes (Cost $22,945,242)		22,229,843
Shares
INVESTMENT COMPANY (2.3%)
4,240,214	Federated Treasury Obligations Fund, Institutional Shares		4,240,214
	Total Investment Company (Cost $4,240,214)		4,240,214

Continued

21

Sterling Capital Intermediate U.S. Government Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
SHORT TERM INVESTMENTS (0.0%)
$108,843	BNY Mellon Institutional Cash Reserve, Series B	$	27,619
	Total Short Term Investments (Cost $108,843)		27,619
Total Investments — 99.6% (Cost $180,713,435)			184,745,895
Net Other Assets (Liabilities) — 0.4%			707,318
NET ASSETS — 100.0%		$	185,453,213

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the final maturity date.

(b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Advisor, using board approved procedures, has deemed these securities or a portion of these securities to be liquid.

(c) On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship with FHFA as the conservator.

The conservatorship is a statutory process designed to stabilize a troubled institution with the objective of returning the entities to normal business operations.

GMTN — Global Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying notes to the financial statements.

22

Sterling Capital Total Return Bond Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
ASSET BACKED SECURITIES (2.5%)
$   350,000	Bank of America Credit Card Trust, Series 2006-A6, Class A6, 0.285%, 11/15/13(a)(b)	$	349,913
2,154,000	Chase Issuance Trust, Series 2007-A13, Class A13, 0.295%, 7/15/14(a)(b)		2,150,087
1,642,494	Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB5, Class AF2, STEP, 4.831%, 8/25/35		1,625,611
4,100,000	MBNA Credit Card Master Note Trust, Series 2006-A5, Class A5, 0.315%, 10/15/15(a)		4,087,299
2,158,109	RAAC, Series 2004-SP1, Class AI3, STEP, 5.618%, 3/25/34		2,222,056
	Total Asset Backed Securities (Cost $10,382,205)		10,434,966
COLLATERALIZED MORTGAGE OBLIGATIONS (10.6%)
2,052,510	Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 5.092%, 4/25/35(a)		2,036,605
1,340,463	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		1,356,214
2,165,827	Banc of America Funding Corp., Series 2005-1, Class 1A1, 5.500%, 2/25/35		2,209,382
2,764,460	Banc of America Funding Corp., Series 2006-2, Class 3A1, 6.000%, 3/25/36		2,804,705
1,967,788	Countrywide Home Loan Mortgage Pass Through Trust, Series 2002-38, Class A3, 5.000%, 2/25/18		1,997,455
687,753	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-28, Class A3, 4.500%, 8/25/33		695,024
1,893,505	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-7, Class 4A3, 5.000%, 8/25/20		1,892,469
1,167,637	First Horizon Asset Securities, Inc., Series 2003-5, Class 1A19, 5.500%, 7/25/33		1,214,196
3,620,000	First Horizon Asset Securities, Inc., Series 2006-2, Class 1A3, 6.000%, 8/25/36		3,641,753
1,146,599	Freddie Mac, Series 2906, Class VC, 5.000%, 12/15/15(d)		1,214,048
3,470,023	Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38		3,700,995
1,448,588	MASTR Alternative Loans Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		1,443,153
429,293	MASTR Asset Securitization Trust, Series 2003-4, Class 5A1, 5.500%, 5/25/33		445,804
3,109,228	Merrill Lynch Mortgage Investors Trust, Series 2005-A8, Class A1A, 5.250%, 8/25/36(a)		2,996,472
2,141,117	RAAC, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(a)		2,170,540
1,985,745	Residential Accredit Loans, Inc., Series 2005-QR1, Class A, 6.000%, 10/25/34		2,005,712
1,012,880	Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 4.459%, 12/25/34(a)		970,000
2,710,021	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 4.840%, 6/25/34(a)		2,478,636
2,331,170	Structured Asset Securities Corp., Series 2003-10, Class A, 6.000%, 4/25/33		2,455,175
1,085,728	Structured Asset Securities Corp., Series 2005-6, Class 5A1, 5.000%, 5/25/35		1,066,822

Principal Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$2,302,505	Wells Fargo Mortgage Backed Securities Trust, Series 2004-BB, Class A2, 2.747%, 1/25/35(a)	$	2,104,524
2,517,110	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 6A3, 2.885%, 10/25/35(a)		2,339,709
1,492,267	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		1,562,044
	Total Collateralized Mortgage Obligations (Cost $44,029,994)		44,801,437
COMMERCIAL MORTGAGE-BACKED SECURITIES (15.3%)
936,000	Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A6, 4.877%, 7/10/42(a)		989,438
2,264,000	Banc of America Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.190%, 11/10/42(a)		2,362,322
2,500,000	Banc of America Commercial Mortgage, Inc., Series 2007-1, Class A3, 5.449%, 1/15/49		2,619,019
1,089,647	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/49(a)		1,105,880
3,848,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class AM, 5.222%, 7/15/44(a)		4,069,540
1,393,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.617%, 10/15/48		1,497,341
1,620,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2002-CP5, Class C, 5.230%, 12/15/35		1,667,887
700,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-C5, Class A4, 4.829%, 11/15/37		740,022
2,828,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class AJ, 5.075%, 2/15/38(a)		2,916,766
4,000,000	Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A3, 5.467%, 9/15/39		4,234,900
2,400,000	Credit Suisse Mortgage Capital Certificates, Series 2009-RR1, Class A3A, 5.383%, 2/15/40(c)		2,551,102
2,332,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/39		2,468,336
3,400,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB15, Class A4, 5.814%, 6/12/43(a)		3,689,585
3,976,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4, 5.863%, 4/15/45(a)		4,368,939
3,088,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/49		3,256,723
3,080,000	LB-UBS Commercial Mortgage Trust, Series 2004-C7, Class A6, 4.786%, 10/15/29(a)		3,255,836
2,751,000	LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 2/15/40		2,921,473
2,600,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A3, 5.389%, 7/12/46(a)		2,663,027

Continued

23

Sterling Capital Total Return Bond Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$3,700,000	Morgan Stanley Capital I, Series 2005-HQ6, Class A4A, 4.989%, 8/13/42	$	3,945,112
2,390,000	Morgan Stanley Capital I, Series 2006-HQ8, Class AM, 5.451%, 3/12/44(a)		2,525,867
1,050,000	Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class B, 5.306%, 1/15/41(a)		1,070,415
3,600,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class AMFX, 5.179%, 7/15/42(a)		3,787,249
2,807,000	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.246%, 12/15/43		2,876,738
716,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A4, 5.270%, 12/15/44(a)		770,069
2,115,000	Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class A3, 5.900%, 2/15/51(a)		2,243,541
	Total Commercial Mortgage-Backed Securities (Cost $59,295,420)		64,597,127
CORPORATE BONDS (34.5%)
	Consumer Discretionary (4.9%)
3,960,000	CBS Corp., 8.875%, 5/15/19		4,972,584
3,100,000	Comcast Cable Communications Holdings, Inc., 9.455%, 11/15/22(b)		4,194,945
3,790,000	Macy’s Retail Holdings, Inc., 5.350%, 3/15/12		3,903,700
4,152,000	NBCUniversal Media LLC, 5.950%, 4/1/41(c)		3,978,725
3,670,000	News America, Inc., 6.150%, 2/15/41(c)		3,639,333
			20,689,287
	Consumer Staples (1.4%)
2,125,000	Altria Group, Inc., 9.950%, 11/10/38		2,963,941
2,851,000	Lorillard Tobacco Co., 6.875%, 5/1/20		3,083,482
			6,047,423
	Energy (1.9%)
1,750,000	Energy Transfer Partners LP, 9.000%, 4/15/19		2,210,817
2,688,000	NuStar Logistics LP, 7.650%, 4/15/18(b)		3,138,253
2,827,000	Plains All American Pipeline LP/PAA Finance Corp., 5.000%, 2/1/21		2,835,405
			8,184,475
	Financials (15.5%)
586,000	Aflac, Inc., 8.500%, 5/15/19		708,398
3,425,000	Bear Stearns Cos. LLC (The), 7.250%, 2/1/18(b)		3,990,591
2,179,000	Citigroup, Inc., 5.875%, 2/22/33		2,048,521
3,958,000	Credit Suisse AG, 5.400%, 1/14/20		3,997,485
3,445,000	Ford Motor Credit Co. LLC, 7.000%, 10/1/13(b)		3,718,767
1,950,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/15(b)		2,110,731
5,500,000	General Electric Capital Corp., GMTN, 6.875%, 1/10/39		6,137,962
2,595,000	Goldman Sachs Group, Inc. (The), 7.500%, 2/15/19		3,014,310
3,920,000	Health Care REIT, Inc., 4.950%, 1/15/21		3,772,212
1,817,000	Jefferies Group, Inc., 8.500%, 7/15/19		2,143,513

Principal Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$   959,000	KeyCorp, MTN, 5.100%, 3/24/21	$	953,080
3,376,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(c)		3,369,417
3,330,000	Macquarie Group, Ltd., 6.250%, 1/14/21(c)		3,365,012
3,744,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/18		4,158,431
2,250,000	MetLife, Inc., 6.750%, 6/1/16		2,600,874
1,992,000	Morgan Stanley, 4.750%, 4/1/14		2,075,696
4,680,000	Morgan Stanley, MTN, 6.625%, 4/1/18(b)		5,143,863
1,757,000	Prudential Financial, Inc., 8.875%, 6/15/38(a)		2,073,260
3,875,000	Simon Property Group LP REIT, 10.350%, 4/1/19		5,341,133
2,218,000	Wachovia Corp., 5.625%, 10/15/16		2,396,895
2,200,000	Wells Fargo Capital XIII, GMTN, 7.700%, 12/29/49(a)		2,266,000
			65,386,151
	Health Care (1.9%)
3,715,000	Bio-Rad Laboratories, Inc., 4.875%, 12/15/20		3,654,631
2,050,000	Boston Scientific Corp., 4.500%, 1/15/15(b)		2,114,342
1,988,000	Boston Scientific Corp., 6.000%, 1/15/20		2,083,060
			7,852,033
	Industrials (2.8%)
4,089,000	Corrections Corp. of America, 6.250%, 3/15/13(b)		4,089,000
2,905,000	Roper Industries, Inc., 6.250%, 9/1/19		3,203,942
4,293,000	Verisk Analytics, Inc., 5.800%, 5/1/21		4,312,701
			11,605,643
	Materials (4.0%)
1,636,000	ArcelorMittal, 9.850%, 6/1/19		2,075,678
4,779,000	Sealed Air Corp., 6.875%, 7/15/33(c)		4,754,058
3,806,000	Vale Overseas, Ltd., 6.875%, 11/21/36		4,052,861
5,344,000	Xstrata Finance Canada, Ltd., 5.800%, 11/15/16(c)		5,918,833
			16,801,430
	Telecommunication Services (2.1%)
2,702,000	America Movil SAB de CV, 6.375%, 3/1/35		2,913,134
1,965,000	Crown Castle International Corp., 9.000%, 1/15/15		2,166,413
2,671,000	Telefonica Emisiones SAU, 3.992%, 2/16/16		2,683,925
1,306,000	Telefonica Emisiones SAU, 5.134%, 4/27/20		1,299,415
			9,062,887
	Total Corporate Bonds (Cost $140,646,025)		145,629,329
FOREIGN GOVERNMENT BONDS (0.5%)
	South Africa (0.5%)
2,098,000	South Africa Government International Bond, 6.250%, 3/8/41		2,162,241
	Total Foreign Government Bonds (Cost $2,095,119)		2,162,241
MORTGAGE-BACKED SECURITIES (30.2%)
	Fannie Mae(d) (12.6%)
23,005	6.000%, 10/1/13, Pool #252061		25,053
95,377	5.000%, 8/1/20, Pool #832058		102,000
280,757	5.000%, 8/1/20, Pool #838787		300,254
53,750	5.000%, 5/1/22, Pool #256716		57,198

Continued

24

Sterling Capital Total Return Bond Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount			Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
		Fannie Mae(d) — (continued)
$	540,162	6.000%, 7/1/22, Pool #944967	$	589,621
	1,468,367	5.000%, 5/1/23, Pool #976197		1,561,162
	661,258	5.000%, 9/1/25, Pool #255892		705,114
	1,428,854	5.500%, 2/1/27, Pool #256600		1,534,153
	327,734	6.500%, 1/1/35, Pool #809198		369,514
	1,947,571	5.500%, 3/1/35, Pool #787561		2,092,923
	189,343	6.000%, 4/1/35, Pool #735503		208,362
	171,793	7.000%, 6/1/35, Pool #255820		196,695
	257,629	7.000%, 6/1/35, Pool #830686		294,972
	1,276,620	5.500%, 10/1/35, Pool #817568		1,371,897
	586,796	6.500%, 3/1/36, Pool #866062		659,768
	369,876	6.500%, 7/1/36, Pool #885493		415,873
	3,051,340	6.000%, 7/1/37, Pool #940807		3,324,474
	563,077	6.000%, 9/1/37, Pool #955005		613,480
	3,958,941	5.500%, 6/1/38, Pool #257231		4,238,323
	2,221,246	4.737%, 7/1/38, Pool #981430(a)		2,349,526
	5,505,009	4.500%, 1/1/40, Pool #AC8568		5,610,100
	3,148,390	5.000%, 3/1/40, Pool #AE2266		3,297,649
	6,091,246	4.500%, 6/1/40, Pool #AD6432		6,207,528
	3,987,337	5.000%, 6/1/40, Pool #AB1149		4,178,862
	1,947,699	5.000%, 6/1/40, Pool #AD4927		2,041,253
	1,869,015	5.000%, 6/1/40, Pool #AD8718		1,958,790
	1,441,826	5.000%, 6/1/40, Pool #AD8842		1,510,181
	3,819,731	4.500%, 8/1/40, Pool #AE2305		3,892,650
	3,346,000	4.000%, 4/15/41(e)		3,290,583
				52,997,958
		Freddie Mac(d) (10.2%)
	709,019	5.000%, 5/1/20, Pool #B19275		757,925
	881,337	5.500%, 10/1/21, Pool #G12425		953,446
	599,616	5.000%, 12/1/21, Pool #J04025		639,852
	1,023,774	5.000%, 7/1/25, Pool #C90908		1,089,912
	1,895,824	4.000%, 8/1/25, Pool #E02710		1,951,810
	1,485,025	5.500%, 7/1/35, Pool #A36540		1,591,966
	507,758	6.000%, 7/1/35, Pool #A36304		554,954
	901,126	5.000%, 3/1/36, Pool #G08115		945,080
	363,442	6.500%, 5/1/36, Pool #A48509		408,241
	285,042	5.000%, 7/1/36, Pool #G02291		298,411
	402,531	6.000%, 8/1/37, Pool #A64067		438,060
	4,651,441	6.000%, 8/1/37, Pool #A64401		5,072,166
	1,060,054	5.500%, 1/1/38, Pool #A71523		1,133,244
	967,788	5.500%, 3/1/38, Pool #G04044		1,033,248
	6,461,315	5.500%, 10/1/38, Pool #G04814		6,907,431
	533,015	5.500%, 1/1/40, Pool #G06021		569,817
	6,555,462	5.000%, 6/1/40, Pool #C03479		6,850,639
	2,661,626	3.759%, 7/1/40, Pool #1B4948(a)		2,743,078
	4,798,377	5.000%, 7/1/40, Pool #A93070		5,014,436
	2,581,182	4.000%, 9/1/40, Pool #A93643		2,538,099
	1,307,000	6.000%, 4/15/41(e)		1,419,729
				42,911,544
		Ginnie Mae (7.4%)
	2,041,553	5.500%, 1/15/39, Pool #646685		2,214,022
	9,827,126	4.500%, 3/15/39, Pool #697957		10,156,232
	3,179,533	4.500%, 2/15/40, Pool #737031		3,286,014
	1,514,555	5.000%, 2/15/40, Pool #737037		1,608,978
	4,831,058	4.500%, 9/20/40, Pool #4801		4,984,545
	4,200,000	4.000%, 4/15/41(e)		4,200,000
	2,718,000	5.000%, 4/15/41(e)		2,882,355

Principal Amount			Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
		Ginnie Mae — (continued)
$	1,762,000	5.500%, 4/15/41(e)	$	1,907,915
				31,240,061
		Total Mortgage-Backed Securities (Cost $126,816,574)		127,149,563
MUNICIPAL BONDS (3.0%)
		California (1.4%)
	1,285,000	California State, Build America Bonds, School Improvements G.O., Taxable, 7.625%, 3/1/40		1,411,264
	780,000	Los Angeles Harbor Department, Crossover Refunding Revenue, Series A, Callable 8/1/12 @ 100 (AMBAC), 5.500%, 8/1/14		816,395
	3,700,000	Metropolitan Water District of Southern California, Build America Bonds, Water Utility Improvements Revenue, Callable 7/1/19 @ 100, 6.538%, 7/1/39		3,762,641
				5,990,300
		New York (1.6%)
	1,785,000	New York & New Jersey Port Authority, Port, Airport & Marina Improvements Revenue, Series 122, Callable 5/2/11 @ 100 (G.O. of Authority), 5.500%, 7/15/15		1,788,945
	1,735,000	New York City Municipal Water Finance Authority, Water Utility Improvements Revenue, Series EE, Build America Bonds Taxable, Callable 6/15/20 @ 100, 6.491%, 6/15/42		1,744,438
	2,900,000	New York, NY, Build America Bonds, Public Improvements G.O., Series G1, 4.774%, 3/1/20		2,888,226
				6,421,609
		Total Municipal Bonds (Cost $12,317,123)		12,411,909
U.S. TREASURY NOTES (1.2%)
	527,000	4.250%, 11/15/17		574,512
	4,505,000	4.500%, 8/15/39		4,503,595
		Total U.S. Treasury Notes (Cost $4,982,746)		5,078,107
Shares
PREFERRED STOCK (1.1%)
		Financials (1.1%)
	75,600	Citigroup Capital XIII, 7.875%		2,071,440
	102,026	Fifth Third Capital Trust VI, 7.250%		2,587,379
		Total Preferred Stock (Cost $4,524,092)		4,658,819
INVESTMENT COMPANY (3.1%)
	13,012,061	Federated Treasury Obligations Fund, Institutional Shares		13,012,061
		Total Investment Company (Cost $13,012,061)		13,012,061

Continued

25

Sterling Capital Total Return Bond Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
SHORT TERM INVESTMENTS (0.0%)
$596,576	BNY Mellon Institutional Cash Reserve, Series B	$	151,381
	Total Short Term Investments (Cost $596,576)		151,381
Total Investments — 102.0% (Cost $418,697,935)			430,086,940
Net Other Assets (Liabilities) — (2.0)%			(8,428,776	)
NET ASSETS — 100.0%		$	421,658,164

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the final maturity date.

(b) Represents that all or a portion of the security was pledged as collateral for securities purchased on a when-issued basis.

(c) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Advisor, using board approved procedures, has deemed these securities or a portion of these securities to be liquid.

(d) On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Macinto conservatorship with FHFA as the conservator. The conservatorship is a statutory process designed to stabilize a troubled institution with the objective of returning the entities to normal business operations.

(e) Represents a security purchased on a when-issued basis. At March 31, 2011, total cost of investments purchased on a when-issued basis was $13,725,784.

AMBAC — American Municipal Bond Insurance Corp.

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN — Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying notes to the financial statements.

26

Sterling Capital Kentucky Intermediate Tax-Free Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount			Fair Value
	MUNICIPAL BONDS (98.2%)
		Kentucky (98.2%)
$	75,000	Bullitt County, KY, School District Finance Corp., Bullitt County School Building Revenue, Callable 3/1/18 @ 100, OID, 4.750%, 3/1/22	$	78,422
	185,000	Campbell & Kenton Counties, KY, Sanitation District No. 1, Sewer Improvements Revenue, Callable 8/1/17 @ 100 (NATL-RE), 5.000%, 8/1/25		193,438
	375,000	Casey County, KY, Public Properties Corp., First Mortgage Revenue, Judicial Center Project, Callable 8/1/12 @ 100, OID, 4.500%, 8/1/16		386,516
	500,000	Christian County Public Courthouse Corp., KY, Court Facility Project Refunding Revenue (AMBAC), 4.000%, 8/1/16		537,090
	300,000	Christian County, KY, Jennie Stuart Medical Center Revenue (Assured Guaranty), 5.250%, 2/1/18		319,533
	330,000	Christian County, KY, School District Finance Corp., Energy Conservation Revenue, OID, 3.700%, 8/1/14		354,149
	85,000	Grayson County, KY, Public Properties Corp., Judicial Center Project Public Improvements Revenue (CIFG), 4.375%, 9/1/17		90,476
	300,000	Jefferson County, KY, School District Finance Corp., Jefferson County School Building Refunding Revenue, Series A (AGM), 5.250%, 1/1/15		336,549
	500,000	Jefferson County, KY, School District Finance Corp., Jefferson County School Building Refunding Revenue, Series A (AGM), 5.250%, 1/1/19		568,000
	100,000	Kenton County, KY, Public Properties Corp., First Mortgage Court Facilities Project Refunding Revenue (AMBAC), 4.125%, 3/1/16		108,485
	500,000	Kentucky Asset/Liability Commission, Project Notes-Federal Highway Transit Revenue, First Series (NATL-RE), 4.500%, 9/1/17		551,325
	525,000	Kentucky Asset/Liability Commission, Project Notes-First Series Revenue (NATL-RE), 5.000%, 5/1/13		565,399
	300,000	Kentucky Asset/Liability Commission, University of Kentucky Project Notes Refunding Revenue, Series A, Callable 10/1/17 @ 100 (AMBAC), 5.000%, 10/1/18		331,929
	480,000	Kentucky Asset/Liability Commission, University of Kentucky Project Notes Revenue (NATL-RE FGIC), 5.000%, 10/1/15		537,830
	510,000	Kentucky Asset/Liability Commission, University of Kentucky Project Notes Revenue, Series B, Callable 10/1/17 @ 100, 5.000%, 10/1/21		542,931
	620,000	Kentucky Economic Development Finance Authority, Baptist Healthcare System Revenue, Series A, Callable 8/15/18 @ 100, OID, 4.750%, 8/15/19		655,086
	500,000	Kentucky Economic Development Finance Authority, Catholic Health Revenue, Series B, 5.000%, 5/1/39(a)		550,290

Principal Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Kentucky — (continued)
$	500,000	Kentucky Economic Development Finance Authority, Owensboro Medical Health System Refunding Revenue, Series A, 5.000%, 6/1/16	$	506,045
	555,000	Kentucky Economic Development Finance Authority, Saint Elizabeth Medical Center, Inc. Refunding Revenue, Series A, Callable 5/1/19 @ 100, OID, 5.000%, 5/1/24		550,249
	250,000	Kentucky Housing Corp. Refunding Revenue, Series B, 2.950%, 7/1/15		254,605
	500,000	Kentucky Municipal Power Agency, Prairie State Project Revenue, Series A (AGM), 5.000%, 9/1/20		538,610
	165,000	Kentucky Municipal Power Agency, Prairie State Project Revenue, Series A (NATL-RE), 5.250%, 9/1/17		184,740
	255,000	Kentucky Municipal Power Agency, Prairie State Project Revenue, Series A, Callable 9/1/17 @ 100 (NATL-RE), 5.250%, 9/1/20		272,174
	500,000	Kentucky Rural Water Finance Corp., Refunding & Improvements Revenue, Flexible Term Program, Series B, Callable 2/1/20 @ 100, 4.000%, 2/1/21		514,120
	200,000	Kentucky State Property & Buildings Commission, Project No. 73 Road Funding Revenue, 5.250%, 11/1/11		205,596
	410,000	Kentucky State Property & Buildings Commission, Project No. 76 Refunding Revenue (AMBAC), 5.500%, 8/1/21		460,245
	530,000	Kentucky State Property & Buildings Commission, Project No. 81 Revenue, Callable 11/1/13 @ 100 (AMBAC), 5.000%, 11/1/16		571,192
	385,000	Kentucky State Property & Buildings Commission, Project No. 83 Refunding Revenue (AMBAC), 5.000%, 10/1/19		420,632
	105,000	Kentucky Turnpike Authority Revenue, Series B (AMBAC), 5.000%, 7/1/15		116,773
	250,000	Kentucky Turnpike Authority, Revitalization Projects Refunding Revenue, Series A (AMBAC), 5.500%, 7/1/12		264,195
	500,000	Kentucky Turnpike Authority, Revitalization Projects Refunding Revenue, Series B, Callable 7/1/15 @ 100 (AMBAC), 5.000%, 7/1/25		501,100
	500,000	Kentucky Turnpike Authority, Revitalization Projects Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/25		515,470
	260,000	Knott County, KY, Recreational Facilities Improvements Youth & Recreation Center Project G.O., 5.000%, 9/1/12		269,760
	265,000	Larue County, KY, School District Finance Corp., Larue County School Building Revenue (NATL-RE), 4.250%, 7/1/15		290,077
	415,000	Laurel County, KY, Judicial Center Public Properties Corp. Revenue, Callable 3/1/18 @ 100, OID, 4.500%, 3/1/24		415,718
	400,000	Louisville & Jefferson County, KY, Metropolitan Government First Mortgage Christian Church Homes Revenue, Callable 5/2/11 @ 100, OID, 6.125%, 11/15/18		400,292

Continued

27

Sterling Capital Kentucky Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Kentucky — (continued)
$605,000	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 5/15/15 @ 100 (AGM), 5.000%, 5/15/19	$	649,268
730,000	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 5/15/19 @ 100, 5.000%, 5/15/20		796,664
590,000	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Revenue, Series A, Callable 11/15/11 @ 101 (NATL-RE), 5.500%, 5/15/34		593,387
240,000	Monroe County, KY, School District Finance Corp., Monroe County School Building Revenue, Callable 5/2/11 @ 100, OID, 4.300%, 10/1/18		240,185
765,000	Muhlenberg County, KY, Public Improvements G.O., Callable 4/7/11 @ 100, 4.000%, 8/1/14		765,474
535,000	Owensboro, KY, Water Refunding & Improvements Revenue, Callable 9/15/18 @ 100 (Assured Guaranty), 5.250%, 9/15/21		584,439
585,000	Owensboro-Daviess County, KY, Regional Water Resource Agency Refunding & Improvements Revenue, Series A (XLCA), 4.000%, 1/1/16		622,165
655,000	Pulaski County, KY, Public Properties Corp. First Mortgage Revenue, Administration Office of the Court Judicial Facility, Callable 12/1/18 @ 100, OID, 5.500%, 12/1/24		709,837
250,000	Pulaski County, KY, Public Properties Corp. First Mortgage Revenue, Administration Office of the Court Judicial Facility, Callable 12/1/18 @ 100, OID, 5.625%, 12/1/25		270,762
300,000	Rowan County, KY, School District Finance Corp., Rowan County School Building Revenue, OID, 4.000%, 11/1/17		326,394
490,000	Russell, KY, Bon Secours Health System, Inc. Refunding Revenue, Series A, Callable 11/15/12 @ 100, OID, 5.625%, 11/15/30		471,120
225,000	Somerset, KY, Water System Revenue, Series B, Callable 5/2/11 @ 100 (AGM), OID, 4.375%, 12/1/18		225,227
395,000	Trimble County, KY, School District Finance Corp., Trimble County School Building Revenue, Prerefunded 4/1/12 @ 100, OID, 4.600%, 4/1/16		411,337
500,000	Versailles, KY, Water Utility Improvements Revenue, Callable 12/1/11 @ 101 (NATL-RE), 4.250%, 12/1/13		513,410

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Kentucky — (continued)
$375,000	Warren County, KY, Community Hospital Corp. Project Refunding Revenue, Series A, 5.000%, 8/1/14	$	395,899
380,000	Warren County, KY, Community Hospital Corp. Project Refunding Revenue, Series A, 5.000%, 8/1/17		392,548
500,000	Western Kentucky University, KY, General Receipts Revenue (Assured Guaranty), 3.000%, 9/1/13		521,325
	Total Municipal Bonds (Cost $21,926,826)		22,448,482
Shares
INVESTMENT COMPANY (0.5%)
108,987	Federated Tax-Free Obligations Fund, Institutional Class		108,987
	Total Investment Company (Cost $108,987)		108,987
Total Investments — 98.7% (Cost $22,035,813)			22,557,469
Net Other Assets (Liabilities) — 1.3%			285,789
NET ASSETS — 100.0%		$	22,843,258

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Insurance Corp.

CIFG — CDC IXIS Financial Guarantee

FGIC — Financial Guaranty Insurance Corp.

G.O. — General Obligation

NATL — National

OID — Original Issue Discount

RE — Reinsurance

XLCA — XL Capital Assurance

See accompanying notes to the financial statements.

28

Sterling Capital Maryland Intermediate Tax-Free Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS (96.9%)
	District of Columbia (3.2%)
$755,000	Washington, D.C., Metropolitan Area Transit Authority, Refunding Revenue (NATL-RE), 5.000%, 7/1/12	$	794,993
320,000	Washington, D.C., Metropolitan Area Transit Authority, Refunding Revenue (NATL-RE), 5.000%, 1/1/13		341,683
			1,136,676
	Maryland (93.7%)
580,000	Baltimore County, MD, Water Utility Improvements, Metropolitan District, 71st Issue G.O., 5.000%, 2/1/17		670,909
75,000	Baltimore, MD, Waste Water Project Revenue, Series D, Callable 7/1/17 @ 100 (AMBAC), 5.000%, 7/1/18		84,182
250,000	Baltimore, MD, Waste Water Projects Revenue, Series C, Callable 7/1/16 @ 100 (AMBAC), 5.000%, 7/1/26		254,260
500,000	Cecil County, MD, Construction Public Improvements G.O., 4.000%, 6/1/18		542,490
125,000	Cumberland County, MD, G.O., Public Improvements (Assured Guaranty), 4.125%, 9/1/16		136,287
500,000	Frederick County, MD, Consolidated Public Improvements G.O., Series A, 4.000%, 2/1/18		545,285
500,000	Frederick County, MD, Public Facilities Improvements G.O., 5.000%, 6/1/16		575,285
225,000	Frederick, MD, Public Improvements G.O., Series A, 4.000%, 3/1/19		242,870
500,000	Harford County, MD, G.O., Public Improvements, Callable 7/15/15 @ 100, 5.000%, 7/15/23		528,210
125,000	Howard County, MD, Certificates of Participation, Series A, 8.050%, 2/15/21		170,727
135,000	Howard County, MD, Certificates of Participation, Series B, 8.250%, 2/15/20		183,488
445,000	Howard County, MD, Construction & Public Improvements Refunding G.O., Series A, 4.000%, 4/15/17		490,857
100,000	Maryland Community Development Administration, Residential Housing Refunding Revenue, Series C, 3.850%, 9/1/15		103,364
250,000	Maryland Community Development Administration, Residential Housing Refunding Revenue, Series K, 4.100%, 9/1/16		264,972
805,000	Maryland Community Development Administration, Residential Housing Revenue, Series A, Callable 9/1/18 @ 100, 4.400%, 9/1/24		808,011
440,000	Maryland Community Development Administration, Residential Housing Revenue, Series A, Callable 9/1/18 @ 100, 4.750%, 9/1/29		421,881
315,000	Maryland Community Development Administration, Residential Housing Revenue, Series B, 3.750%, 9/1/14		326,482
680,000	Maryland Community Development Administration, Residential Housing Revenue, Series G, Callable 3/1/17 @ 100, 4.300%, 9/1/17		707,608

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$   250,000	Maryland Economic Development Corp., Electricity Lights & Power Improvements Revenue, Callable 3/1/19 @ 100, 6.200%, 9/1/22	$	282,885
230,000	Maryland Economic Development Corp., Lutheran World Relief Refugee Refunding Revenue, Callable 4/1/17 @ 100, 5.250%, 4/1/19		235,341
540,000	Maryland Economic Development Corp., University of Maryland College Park Projects Refunding Revenue (CIFG), 5.000%, 6/1/13		567,929
735,000	Maryland Economic Development Corp., University of Maryland College Park Projects Refunding Revenue (CIFG), 5.000%, 6/1/16		780,232
555,000	Maryland Environmental Service Revenue, Mid Shore II Regional Landfill, 4.000%, 11/1/17		589,044
145,000	Maryland Health & Higher Educational Facilities Authority, Anne Arundel Health System Revenue, OID, 4.000%, 7/1/18		146,724
250,000	Maryland Health & Higher Educational Facilities Authority, Anne Arundel Health System Revenue, OID, 4.250%, 7/1/19		252,678
570,000	Maryland Health & Higher Educational Facilities Authority, Board of Child Care Revenue, Callable 7/1/12 @ 100, 5.500%, 7/1/13		594,635
250,000	Maryland Health & Higher Educational Facilities Authority, Carroll County General Hospital Revenue, Callable 7/1/12 @ 100, 6.000%, 7/1/20		254,215
200,000	Maryland Health & Higher Educational Facilities Authority, Charlestown Community Refunding Revenue, OID, 2.650%, 1/1/13		197,970
900,000	Maryland Health & Higher Educational Facilities Authority, College of Notre Dame Refunding Revenue, 4.000%, 10/1/19		917,694
200,000	Maryland Health & Higher Educational Facilities Authority, Helix Health Issue Refunding Revenue (AMBAC), OID, 5.125%, 7/1/12		211,692
1,100,000	Maryland Health & Higher Educational Facilities Authority, Helix Health Issue Refunding Revenue (AMBAC), OID, 5.000%, 7/1/27		1,226,170
45,000	Maryland Health & Higher Educational Facilities Authority, Howard County General Hospital Refunding Revenue, Callable 5/2/11 @ 100, OID, 5.500%, 7/1/13		46,499
700,000	Maryland Health & Higher Educational Facilities Authority, Johns Hopkins Health System Revenue, 5.000%, 5/15/46(a)		753,207
685,000	Maryland Health & Higher Educational Facilities Authority, Lifebridge Health Refunding Revenue, 5.000%, 7/1/15		733,882
295,000	Maryland Health & Higher Educational Facilities Authority, Medlantic / Helix Issue Revenue, Series B, Callable 5/2/11 @ 100 (AMBAC), 5.250%, 8/15/13		295,605

Continued

29

Sterling Capital Maryland Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Maryland — (continued)
$	575,000	Maryland Health & Higher Educational Facilities Authority, Medstar Health Refunding Revenue, Callable 8/15/14 @ 100, OID, 5.375%, 8/15/24	$	572,522
	360,000	Maryland Health & Higher Educational Facilities Authority, Memorial Hospital at Easton Revenue, Callable 5/2/11 @ 100 (NATL-RE), OID, 4.700%, 7/1/19		360,169
	300,000	Maryland Health & Higher Educational Facilities Authority, Mercy Ridge Revenue, Series A, Prerefunded 4/1/13 @ 101, 6.000%, 4/1/35		333,714
	320,000	Maryland Health & Higher Educational Facilities Authority, Peninsula Regional Medical Center Revenue, 5.000%, 7/1/15		340,867
	405,000	Maryland Health & Higher Educational Facilities Authority, Peninsula Regional Medical Center Revenue, Callable 7/1/16 @ 100, 5.000%, 7/1/20		410,378
	635,000	Maryland Health & Higher Educational Facilities Authority, Peninsula Regional Medical Center Revenue, Callable 7/1/16 @ 100, 5.000%, 7/1/26		595,287
	400,000	Maryland Health & Higher Educational Facilities Authority, Suburban Hospital Refunding Revenue, Series A, 5.500%, 7/1/13		432,020
	400,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System Refunding Revenue, 5.000%, 7/1/19		414,328
	285,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System Refunding Revenue, Series F, 5.000%, 7/1/15		307,336
	370,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System Refunding Revenue, Series F, Callable 7/1/18 @ 100, 5.250%, 7/1/21		381,207
	320,000	Maryland Health & Higher Educational Facilities Authority, Washington County Hospital Revenue, 5.000%, 1/1/17		324,765
	240,000	Maryland Health & Higher Educational Facilities Authority, Western Maryland Health System Refunding Revenue, Series A (NATL-RE FHA), 4.000%, 1/1/12		244,999
	265,000	Maryland State Department of Transportation County Transportation, Transit Improvements Revenue, Second Issue, 5.000%, 6/1/18		304,705
	400,000	Maryland State Department of Transportation, County Transportation Transit Improvements Revenue, 5.250%, 12/15/17		468,288
	500,000	Maryland State Department of Transportation, County Transportation Transit Improvements Revenue, Second Issue, Callable 9/1/18 @ 100, 5.000%, 9/1/23		542,245
	1,005,000	Maryland State Transportation Authority Grant & Revenue Anticipate, MD Transit Improvements Revenue, 5.000%, 3/1/16		1,152,092

Principal Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Maryland — (continued)
$	1,000,000	Maryland State Transportation Authority, Transportation Facility Projects Revenue, Series A, 4.000%, 7/1/18	$	1,085,460
	610,000	Maryland State Transportation Authority, Transportation Facility Projects Revenue, Series A, 5.000%, 7/1/19		694,058
	500,000	Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series, 5.000%, 3/1/16		575,135
	330,000	Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series, 5.000%, 3/15/16		379,830
	275,000	Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series, Prerefunded 3/15/17 @ 100, 5.000%, 3/15/22		321,808
	590,000	Maryland State, State & Local Facilities Loan Public Improvements G.O., Second Series, Callable 7/15/18 @ 100, 5.000%, 7/15/23		644,050
	250,000	Maryland Water Quality Financing Administration, Revolving Loan Fund Sewer Improvements Revenue, 5.000%, 3/1/18		283,588
	250,000	Montgomery County Housing Opportunities Commission, Housing Refunding Revenue, Series A, Callable 1/1/16 @ 100 (FHA/VA Mortgages), 3.800%, 7/1/16		260,812
	250,000	Montgomery County Housing Opportunities Commission, Local Housing Revenue, Series A, 3.700%, 7/1/14		261,060
	500,000	Montgomery County, MD, Construction & Public Improvements G.O., Series A, Callable 6/1/15 @ 100, 5.000%, 6/1/24		524,605
	480,000	Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, 5.000%, 5/1/15		546,845
	700,000	Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, 5.000%, 7/1/15		800,492
	470,000	Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, 5.000%, 7/1/17		546,022
	270,000	Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, Callable 7/1/15 @ 100, 5.000%, 7/1/18		302,076
	1,000,000	Montgomery County, MD, Public Transportation Equipment Certificate of Participation, 4.000%, 5/1/17		1,056,010
	250,000	Prince Georges County, MD, Construction & Public Improvements G.O., 5.000%, 10/1/14		282,972
	500,000	Talbot County, MD, Public Improvements G.O., 5.000%, 12/15/16		578,965
	500,000	University System of Maryland, Auxiliary Facility & Tuition Revenue, Unrefunded Balance, Series A, Callable 4/1/12 @ 100, 5.250%, 4/1/17		520,470
	275,000	Washington Suburban Sanitation District, MD, Sewer Disposal Refunding G.O., 5.000%, 6/1/12		289,710

Continued

30

Sterling Capital Maryland Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$400,000	Westminster, MD, McDaniel College, Inc. Revenue, Callable 11/1/16 @ 100, 5.000%, 11/1/22	$	402,420
			32,684,880
	Total Municipal Bonds (Cost $32,869,508)		33,821,556
Shares
INVESTMENT COMPANY (2.5%)
866,923	Federated Maryland Municipal Cash Trust		866,923
Total Investment Company (Cost $866,923)			866,923
Total Investments — 99.4% (Cost $33,736,431)			34,688,479
Net Other Assets (Liabilities) — 0.6%			199,012
NET ASSETS — 100.0%		$	34,887,491

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011.The maturity date reflected is the final maturity date.

AMBAC — American Municipal Bond Insurance Corp.

CIFG — CDC IXIS Financial Guarantee

FHA — Federal Housing Authority

G.O. — General Obligation

NATL — National

OID — Original Issue Discount

RE — Reinsurance

VA — Veterans Administration

See accompanying notes to the financial statements.

31

Sterling Capital North Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount			Fair Value
	MUNICIPAL BONDS (96.0%)
		North Carolina (96.0%)
	$1,000,000	Alamance County, NC, School Improvements G.O., Callable 2/1/16 @ 100, 5.000%, 2/1/19	$	1,100,380
	1,760,000	Albemarle, NC, Hospital Authority Refunding Revenue, OID, 4.500%, 10/1/11		1,752,714
	1,045,000	Albemarle, NC, Hospital Authority Refunding Revenue, OID, 4.500%, 10/1/12		1,031,028
	1,065,000	Broad River Water Authority, NC, Water System Refunding Revenue, Callable 6/1/15 @ 100 (XLCA), 5.000%, 6/1/18		1,106,237
	725,000	Broad River Water Authority, NC, Water System Refunding Revenue, Callable 6/1/15 @ 100 (XLCA), 5.000%, 6/1/19		744,241
	1,000,000	Buncombe County, NC, Certificate of Participation, Callable 4/1/16 @ 100 (NATL-RE), 5.000%, 4/1/19		1,076,860
	1,935,000	Buncombe County, NC, Public Improvements Revenue, Series A, 4.000%, 6/1/17		2,022,810
	2,975,000	Cabarrus County, NC, Installment Financing Contract Certificate of Participation, 4.000%, 1/1/15		3,183,280
	1,960,000	Cabarrus County, NC, Installment Financing Contract Certificate of Participation, 5.000%, 1/1/17		2,185,263
	1,285,000	Cabarrus County, NC, Installment Financing Contract Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/20		1,375,130
	1,730,000	Cabarrus County, NC, Installment Financing Contract Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/23		1,792,816
	1,000,000	Cabarrus County, NC, Installment Financing Contract Certificate of Participation, Series C, Callable 6/1/18 @ 100, OID, 5.000%, 6/1/23		1,051,100
	1,135,000	Cape Fear Public Utility Authority, NC, Water & Sewer System Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26		1,185,178
	1,015,000	Catawba County, NC, Public School & Community College Improvements Projects Certificate of Participation, Callable 6/1/14 @ 100 (NATL-RE), 5.250%, 6/1/23		1,040,751
	1,000,000	Charlotte, NC, Airport Refunding Revenue, Series B, 5.000%, 7/1/15		1,105,910
	1,000,000	Charlotte, NC, Airport Revenue, Series A, Callable 7/1/20 @ 100, 5.000%, 7/1/27		1,009,510
	905,000	Charlotte, NC, Storm Water Fee Public Improvements Revenue, Callable 6/1/11 @ 101, 5.500%, 6/1/14		921,679
	1,280,000	Charlotte, NC, Storm Water Fee Public Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/20		1,393,446
	1,000,000	Charlotte, NC, Storm Water Fee Public Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/23		1,064,110
	1,415,000	Charlotte-Mecklenburg Hospital Authority, NC, Carolinas Health Care System Refunding Revenue, Series A, 5.000%, 1/15/17		1,561,141
	2,000,000	Concord, NC, Refunding Revenue, Series B, Callable 12/1/19 @ 100, 5.000%, 12/1/22		2,144,240

Principal Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$1,180,000	Cumberland County, NC, County Improvements Projects Certificate of Participation, Series A, Callable 12/1/19 @ 100, OID, 4.875%, 12/1/25	$	1,206,373
	2,710,000	Cumberland County, NC, Refunding G.O. (NATL-RE), 5.000%, 5/1/13		2,944,334
	2,205,000	Cumberland County, NC, Refunding G.O. (NATL-RE), 5.000%, 5/1/14		2,463,139
	585,000	Dare County, NC, Certificates of Participation (AMBAC), 4.000%, 6/1/15		619,217
	1,045,000	Davidson County, NC, G.O., Callable 6/1/17 @ 100 (AGM), 5.000%, 6/1/25		1,100,500
	990,000	Durham County, NC, Industrial Facilities & Pollution Control Financing Authority, Research Triangle Institute Revenue, 5.000%, 2/1/20		1,086,178
	2,000,000	Durham County, NC, Public Improvements Certificate of Participation, Series A, Callable 6/1/19 @ 100, 5.000%, 6/1/24		2,091,240
	1,000,000	Durham, NC, Water & Sewer Utilities System Revenue, Callable 6/1/11 @ 101, 5.000%, 6/1/12		1,017,570
	365,000	Elizabeth City State University Revenue, Series A (AGM), 4.000%, 4/1/13		375,961
	380,000	Elizabeth City State University Revenue, Series A (AGM), 4.000%, 4/1/14		393,311
	470,000	Elizabeth City State University Revenue, Series A (AGM), 4.000%, 4/1/15		484,993
	565,000	Elizabeth City State University Revenue, Series A (AGM), 4.000%, 4/1/16		577,724
	2,000,000	Fayetteville, NC, Public Works Commission Refunding Revenue, Series A, 5.000%, 3/1/16		2,271,560
	405,000	Haywood County, NC, School Improvements G.O., Callable 5/1/16 @ 100 (XLCA), 5.000%, 5/1/17		449,449
	1,000,000	Henderson County, NC, Certificates of Participation, Series A (AMBAC), 5.000%, 6/1/16		1,114,020
	1,030,000	Henderson County, NC, Limited Obligation Revenue, Series B, 4.000%, 12/1/16		1,104,654
	245,000	High Point, NC, High Point Combined Enterprise Systems Revenue, Callable 11/1/18 @ 100 (AGM), 5.000%, 11/1/26		253,423
	450,000	Iredell County, NC, School Projects Certificate of Participation (AGM), 5.250%, 6/1/17		503,775
	850,000	Johnston County, NC, Public Improvements G.O., Prerefunded 2/1/15 @ 100 (NATL-RE FGIC), 5.250%, 2/1/16		975,171
	1,155,000	Johnston County, NC, Public Improvements G.O., Callable 2/1/18 @ 100, OID, 4.000%, 2/1/21		1,191,348
	1,035,000	Johnston Memorial Hospital Authority Revenue (AGM FHA), 5.000%, 10/1/16		1,139,514
	1,750,000	Lincoln County, NC, Refunding G.O., Series A, 5.000%, 6/1/18		2,007,302
	2,535,000	Lincoln County, NC, Refunding G.O., Series A, 4.000%, 6/1/19		2,713,718
	800,000	Lincolnton, NC, Combined Enterprise System Refunding Revenue, Callable 5/1/15 @ 100 (XLCA), 5.000%, 5/1/17		823,576

Continued

32

Sterling Capital North Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$ 250,000	Lincolnton, NC, Combined Enterprise System Refunding Revenue, Callable 5/1/15 @ 100 (XLCA), OID, 4.125%, 5/1/20	$	232,395
1,000,000	Mooresville, NC, Telecommunications Improvements Certificate of Participation, 5.000%, 9/1/15		1,108,760
1,435,000	Mooresville, NC, Telecommunications Improvements Certificate of Participation, 5.000%, 9/1/16		1,597,959
1,855,000	New Hanover County, NC, New Hanover County Projects Refunding Revenue, 5.000%, 12/1/19		2,072,554
1,015,000	New Hanover County, NC, New Hanover County Projects Refunding Revenue, 5.000%, 12/1/20		1,128,254
1,000,000	New Hanover County, NC, New Hanover Regional Medical Center Project Revenue, Callable 5/2/11 @ 100.5 (NATL-RE), 5.250%, 10/1/12		1,007,750
3,000,000	New Hanover County, NC, New Hanover Regional Medical Center Project Revenue, Callable 5/2/11 @ 100.5 (NATL-RE), OID, 5.000%, 10/1/19		3,007,980
1,000,000	New Hanover County, NC, Regional Medical Center Revenue, Series A, Callable 10/1/19 @ 100 (AGM), 5.000%, 10/1/21		1,048,170
1,050,000	New Hanover County, NC, Regional Medical Center Revenue, Series A, Callable 10/1/19 @ 100 (AGM), 5.000%, 10/1/22		1,089,375
1,905,000	North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, 5.000%, 1/1/14		2,059,781
2,035,000	North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, Callable 1/1/16 @ 100 (AMBAC), 5.250%, 1/1/20		2,165,444
2,000,000	North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series B, OID, 4.000%, 1/1/18		2,062,000
2,360,000	North Carolina Eastern Municipal Power Agency, Power System Revenue, Series A, OID, 6.400%, 1/1/21		2,844,579
2,115,000	North Carolina Infrastructure Finance Corp., Correctional Facilities Projects Revenue, Callable 10/1/13 @ 100, 5.000%, 10/1/19		2,222,548
5,000,000	North Carolina Infrastructure Finance Corp., Correctional Facilities Projects Revenue, Callable 10/1/13 @ 100, 5.000%, 10/1/20		5,255,500
2,015,000	North Carolina Medical Care Commission, Blue Ridge Healthcare Refunding Revenue, Series A, 4.000%, 1/1/16		2,052,459
2,250,000	North Carolina Medical Care Commission, Caromont Health Revenue (Assured Guaranty), OID, 3.500%, 2/15/19		2,178,135
950,000	North Carolina Medical Care Commission, First Mortgage Deerfield Revenue, Series A, Callable 11/1/18 @ 100, OID, 6.000%, 11/1/33		899,460

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$2,000,000	North Carolina Medical Care Commission, First Mortgage Givens Estates Revenue, Series A, Prerefunded 7/1/13 @ 101, OID, 6.500%, 7/1/32	$	2,275,260
1,265,000	North Carolina Medical Care Commission, Firsthealth Carolina Refunding Revenue, Series C, OID, 4.000%, 10/1/18		1,308,516
915,000	North Carolina Medical Care Commission, Health Care Facilities Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.000%, 7/1/19		915,851
1,180,000	North Carolina Medical Care Commission, Health Care Facilities Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.375%, 7/1/20		1,202,727
1,575,000	North Carolina Medical Care Commission, Health Care Housing ARC Projects Revenue, Series A (HUD Section 8), 4.650%, 10/1/14		1,610,705
1,435,000	North Carolina Medical Care Commission, Health Care Housing ARC Projects Revenue, Series A, Callable 10/1/14 @ 101 (HUD Section 8), 5.500%, 10/1/24		1,420,191
1,000,000	North Carolina Medical Care Commission, Mission Health Combine Group Refunding Revenue, Callable 10/1/17 @ 100 (AGM-CR), 5.000%, 10/1/25		1,004,520
3,000,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital Refunding Revenue, 5.000%, 6/1/20		3,252,120
1,580,000	North Carolina Medical Care Commission, Novant Health Obligation Group Refunding Revenue, Group A, 5.000%, 11/1/13		1,721,821
1,910,000	North Carolina Medical Care Commission, Novant Health Obligation Group Refunding Revenue, Group A, Callable 11/1/13 @ 100, 5.000%, 11/1/14		2,058,694
1,000,000	North Carolina Medical Care Commission, Novant Health Refunding Revenue, Callable 11/1/13 @ 100 (AGM-CR), 5.000%, 11/1/15		1,055,100
2,000,000	North Carolina Medical Care Commission, Rex Healthcare Refunding Revenue, Series A, 5.000%, 7/1/17		2,158,260
1,000,000	North Carolina Medical Care Commission, Stanly Memorial Hospital Project Revenue, Callable 5/2/11 @ 100, OID, 6.250%, 10/1/19		1,000,670
3,485,000	North Carolina Medical Care Commission, Universal Health System Refunding Revenue, Series E2, 6.000%, 12/1/36(a)		3,839,703
1,045,000	North Carolina Medical Care Commission, Wakemed Revenue, Series A, Callable 10/1/14 @ 100 (Assured Guaranty), 4.000%, 10/1/17		1,073,246
2,000,000	North Carolina Medical Care Commission, Wakemed Revenue, Series A, Callable 10/1/14 @ 100 (Assured Guaranty), 5.625%, 10/1/29		2,034,560
1,115,000	North Carolina Medical Care Commission, Wilson Medical Center Refunding Revenue, 5.000%, 11/1/17		1,162,020

Continued

33

Sterling Capital North Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$1,000,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Power Refunding Revenue, Series A, 5.250%, 1/1/13	$	1,070,090
1,000,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Power Refunding Revenue, Series A, 5.250%, 1/1/17		1,127,540
925,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Power Refunding Revenue, Series A, Callable 1/1/18 @ 100, 5.250%, 1/1/20		1,006,437
1,470,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Revenue, Series A, Callable 1/1/13 @ 100 (AGM), 5.250%, 1/1/16		1,562,978
2,135,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Revenue, Series A, Callable 1/1/13 @ 100 (NATL-RE), 5.250%, 1/1/19		2,258,232
1,000,000	North Carolina State University at Raleigh Revenue, Series B, 4.000%, 10/1/12		1,051,470
1,350,000	North Carolina State University at Raleigh Revenue, Series B, 4.000%, 10/1/14		1,476,994
500,000	North Carolina State University at Raleigh Revenue, Series B, 4.000%, 10/1/15		549,505
1,000,000	North Carolina State, Clean Water G.O., Series A, Callable 3/1/16 @ 100, 5.000%, 3/1/17		1,132,580
2,000,000	North Carolina State, Public Improvements G.O., Series A, Callable 3/1/17 @ 100, 5.000%, 3/1/20		2,211,560
2,925,000	North Carolina State, Refunding G.O., Series A, 5.000%, 9/1/16		3,390,572
2,380,000	North Carolina State, Refunding G.O., Series B, 5.000%, 4/1/17		2,758,182
1,000,000	North Carolina State, Repair & Renovation Project, Certificates of Participation, Series B, Callable 6/1/14 @ 100, 5.000%, 6/1/21		1,037,950
1,080,000	North Carolina State, Vehicle Grant Revenue, Highway Improvements (NATL-RE), 5.000%, 3/1/16		1,214,276
1,720,000	North Carolina State, Vehicle Grant Revenue, Highway Improvements (NATL-RE), 5.000%, 3/1/17		1,947,315
1,085,000	North Carolina State, Vehicle Grant Revenue, Highway Improvements, Callable 3/1/17 @ 100 (NATL-RE), 5.000%, 3/1/18		1,206,412
115,000	Onslow Water & Sewer Authority, Combined Enterprise Systems Revenue, Series A (NATL-RE), 5.000%, 6/1/18		127,312
1,520,000	Onslow Water & Sewer Authority, Combined Enterprise Systems Revenue, Series B, Callable 6/1/14 @ 100 (XLCA), 5.000%, 6/1/21		1,580,116
1,105,000	Orange County, NC, Public Improvements Project Certificates of Participation, Series A, Callable 4/1/16 @ 100 (AMBAC), 5.000%, 4/1/19		1,184,140
1,105,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL-RE), 5.250%, 6/1/18		. 1,215,478
1,000,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL-RE), 5.250%, 6/1/19		. 1,090,230
2,440,000	Pitt County, NC, Pitt County Memorial Hospital Project Refunding Revenue, Callable 5/2/11 @ 100, OID, 5.500%, 12/1/15		2,594,476

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$2,700,000	Raleigh Durham Airport Authority Refunding Revenue, Series B, 3.000%, 11/1/16	$	2,750,112
2,150,000	Raleigh Durham Airport Authority Refunding Revenue, Series B1, Callable 5/1/20 @ 100, 5.000%, 11/1/28		2,182,852
3,195,000	Raleigh, NC, Combined Enterprise Systems Revenue, Callable 3/1/14 @ 100, 5.000%, 3/1/31		3,245,066
500,000	Randolph County, NC, Certificates of Participation (AMBAC), 4.250%, 2/1/15		535,510
415,000	Randolph County, NC, Refunding Certificate of Participation (AGM), 5.000%, 6/1/15		457,840
1,400,000	Rockingham County, NC, Certificate of Participation (Assured Guaranty), 5.000%, 4/1/17		1,560,272
1,465,000	Stanly County, NC, Refunding G.O., 5.000%, 2/1/21		1,668,269
1,085,000	Surry County, NC, Northern Hospital District Revenue, Callable 4/1/18 @ 100, OID, 5.500%, 10/1/21		1,085,000
160,000	Surry County, NC, Northern Hospital District Revenue, OID, 4.000%, 10/1/11		161,154
4,610,000	Union County, NC, School Improvements G.O., Series D, Callable 3/1/17 @ 100 (NATL-RE), 5.000%, 3/1/19		5,143,100
1,160,000	University of North Carolina System Pool Refunding Revenue, Appalachian State University, Series B1, 4.000%, 10/1/15		1,264,330
3,260,000	University of North Carolina System Pool Refunding Revenue, Appalachian State University, Series B1, Callable 4/1/20 @ 100, 5.250%, 10/1/22		3,594,476
1,485,000	University of North Carolina System Pool Refunding Revenue, Asheville/Wilmington, Series C, Callable 4/1/20 @ 100 (Assured Guaranty), 5.250%, 10/1/24		1,601,662
1,975,000	University of North Carolina System Pool Refunding Revenue, The University of North Carolina at Greensboro, Series B2, 5.000%, 4/1/17		2,230,427
1,565,000	University of North Carolina System Pool Revenue, General Trust Indenture, Series C, 4.250%, 10/1/14		1,670,058
1,005,000	University of North Carolina System Pool Revenue, Series A, Callable 10/1/16 @ 100 (NATL-RE), 5.000%, 10/1/17		1,103,540
890,000	University of North Carolina System Pool Revenue, Series A, Callable 4/1/13 @ 100 (AMBAC), 5.250%, 4/1/21		908,752
500,000	University of North Carolina System Pool Revenue, Series B (AMBAC), 4.000%, 4/1/14		520,090
3,000,000	Wake County, NC, Public Improvements G.O., 5.000%, 3/1/12		3,128,040
1,000,000	Wilkes County, NC, Certificates of Participation (NATL-RE), OID, 4.000%, 6/1/13		1,054,290
1,000,000	Wilson, NC, Public Improvements Project Certificates of Participation, Series A (Assured Guaranty), 5.000%, 5/1/16		1,111,560

Continued

34

Sterling Capital North Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$1,000,000	Winston-Salem, NC, Water & Sewer System Refunding Revenue, Series A, Callable 6/1/17 @ 100, 5.000%, 6/1/19	$	1,113,640
1,000,000	Winston-Salem, NC, Water & Sewer Systems Refunding Revenue, Prerefunded 6/1/15 @ 100, 5.000%, 6/1/20		1,148,170
	Total Municipal Bonds (Cost $189,256,758)		193,914,996
Shares
INVESTMENT COMPANY (2.8%)
5,656,521	Federated North Carolina Municipal Money Market Portfolio, Institutional Class		5,656,521
	Total Investment Company (Cost $5,656,521)		5,656,521
Total Investments — 98.8% (Cost $194,913,279)			199,571,517
Net Other Assets (Liabilities) — 1.2%			2,445,456
NET ASSETS — 100.0%		$	202,016,973

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011.The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Insurance Corp. CR — Custodial Receipts

FGIC — Financial Guaranty Insurance Corp.

FHA — Federal Housing Authority

G.O. — General Obligation

HUD — Housing & Urban Development NATL — National

OID — Original Issue Discount

RE — Reinsurance

XLCA — XL Capital Assurance

See accompanying notes to the financial statements.

35

Sterling Capital South Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS (97.3%)
	South Carolina (97.3%)
$   1,000,000	Beaufort County School District, SC, Refunding G.O., Series A, Callable 3/1/17 @ 100 (AGM, SCSDE), 5.000%, 3/1/27	$	1,033,550
615,000	Beaufort County, SC, New River Redevelopment Project Area Tax Increment Revenue, Callable 12/1/12 @ 100 (NATL-RE), 5.500%, 6/1/16		656,709
505,000	Bennettsville, SC, Combined Utility Systems, Refunding & Improvements Revenue, Callable 2/1/14 @ 100 (AMBAC), OID, 3.625%, 2/1/16		502,965
250,000	Camden, SC, Public Utilities Improvements Refunding Revenue (NATL-RE FGIC), OID, 3.500%, 3/1/12		256,228
290,000	Camden, SC, Public Utilities Improvements Refunding Revenue, Callable 3/1/14 @ 100 (NATL-RE FGIC), 5.000%, 3/1/15		312,182
80,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 4.250%, 7/1/13		84,458
125,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 4.500%, 7/1/15		134,885
735,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/16		820,040
310,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/17		345,185
595,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/20		646,955
465,000	Charleston County, SC, Charleston Public Facilities Corp., Refunding Certificate Participation, Callable 6/1/15 @ 100 (NATL-RE), 5.125%, 6/1/18		502,446
310,000	Charleston County, SC, Hospital Facilities Care Alliance Health Revenue, Series B1 (AGM), 5.000%, 8/15/16		339,059
660,000	Chesterfield County School District, SC, Refunding Certificate Participation, Chesterfield School Facilities Inc., Callable 2/1/13 @ 100 (XLCA), OID, 3.500%, 2/1/14		667,748
880,000	Chesterfield County School District, SC, Refunding G.O. (SCSDE), 4.000%, 3/1/16		958,223
400,000	Chesterfield County School District, SC, Refunding G.O. (SCSDE), 4.000%, 3/1/19		425,352
185,000	Coastal Carolina University, SC, Refunding Revenue (XLCA), 4.000%, 6/1/17		193,079
165,000	College of Charleston, SC, Academic & Administrative Facilities Revenue, Series D (XLCA), 4.250%, 4/1/12		170,303
485,000	College of Charleston, SC, Academic & Administrative Facilities Revenue, Series D (XLCA), 4.500%, 4/1/17		519,745
120,000	Colleton County, SC, School Improvements G.O., Callable 5/2/11 @ 100 (AGM, State Aid Withholding), OID, 4.200%, 3/1/12		120,337
350,000	Dorchester County, SC, Transition Projects G.O., Series A (XLCA), 5.000%, 5/1/14		384,402

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$   345,000	Dorchester County, SC, Transition Projects G.O., Series A (XLCA), 5.000%, 5/1/15	$	382,395
175,000	Dorchester County, SC, Waterworks Revenue (NATL-RE), 5.000%, 10/1/15		193,018
670,000	Easley, SC, Combined Utility System Refunding Revenue, Callable 12/1/19 @ 100 (Assured Guaranty), 5.000%, 12/1/24		716,652
200,000	Educational Facilities Authority, SC, Wofford College Revenue, Series A, 4.000%, 4/1/15		211,666
125,000	Educational Facilities Authority, SC, Wofford College Revenue, Series A, 4.250%, 4/1/17		132,170
440,000	Fort Mill School Facilities Corp., SC, Installment Purchase Revenue, 5.000%, 12/1/12		463,223
335,000	Fort Mill School Facilities Corp., SC, Installment Purchase Revenue, Callable 12/1/16 @ 100, 5.250%, 12/1/18		357,321
260,000	Georgetown County School District, SC, Refunding G.O., Series B, Callable 3/1/12 @ 102 (AGM, SCSDE), 5.000%, 3/1/16		273,822
200,000	Grand Strand Water & Sewer Authority, SC, Water Works & Sewer System Refunding Revenue, Callable 6/1/12 @ 100 (AGM), 5.375%, 6/1/14		210,064
750,000	Greenville County, SC, School District Installment Purchase Refunding Revenue, Callable 12/1/16 @ 100, 5.000%, 12/1/22		772,080
250,000	Greenville, SC, Hospital System Board Facilities Revenue, Callable 5/2/11 @ 101 (AMBAC), 5.500%, 5/1/26		252,892
100,000	Greenville, SC, Sewer System Revenue, Callable 4/1/12 @ 100 (NATL-RE), OID, 4.600%, 4/1/15		102,876
380,000	Greenville, SC, Waterworks Revenue, Prerefunded 2/1/13 @ 100, 5.250%, 2/1/19		411,802
395,000	Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 4.875%, 10/1/22		390,552
530,000	Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 5.000%, 10/1/23		526,597
1,175,000	Greenwood, SC, Combined Public Utility Revenue, Series A, 4.000%, 12/1/18		1,217,841
250,000	Horry County School District, SC, School Improvements G.O., Series A, Prerefunded 3/1/12 @ 100 (SCSDE), 5.375%, 3/1/15		261,408
325,000	Horry County School District, SC, School Improvements G.O., Series B, Callable 3/1/17 @ 100 (NATL-RE, SCSDE), 5.000%, 3/1/21		351,653
500,000	Kershaw County, SC, Public Schools Foundation Installment Power, Refunding Revenue, Kershaw County School District Project (CIFG), 5.000%, 12/1/16		541,565
630,000	Lancaster County, SC, Refunding G.O., Series D (State Aid Withholding), 3.000%, 3/1/17		642,720
645,000	Lancaster Educational Assistance Program, Inc., Lancaster County School District Project Revenue, Callable 12/1/14 @ 100, 5.250%, 12/1/17		688,763

Continued

36

Sterling Capital South Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$   415,000	Laurens County School District No. 55, SC, School Improvements Revenue, Callable 12/1/15 @ 100, 5.250%, 12/1/24	$	418,038
825,000	Lexington County, SC, Health Services District Income Hospital Refunding Revenue, 5.000%, 11/1/15		893,673
450,000	Lexington County, SC, Health Services District Income Hospital Refunding Revenue, 5.000%, 11/1/16		483,008
1,010,000	Lexington County, SC, School District No. 1, Refunding G.O., Callable 3/1/17 @ 100 (SCSDE), 5.125%, 3/1/21		1,104,051
500,000	Lexington County, SC, School District No. 3, Refunding G.O., Callable 3/1/12 @ 102 (AGM), 5.000%, 3/1/16		526,865
1,000,000	Lexington One School Facilities Corp., Lexington County School District No. 1 Revenue, 5.000%, 12/1/16		1,081,520
890,000	Lexington, SC, Waterworks & Sewer System Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/22		955,023
500,000	Medical University Hospital Authority, SC, Refunding Revenue, Series A, 6.000%, 8/15/12		536,955
400,000	Mount Pleasant, SC, Public Improvements G.O., 4.000%, 12/1/12		423,068
115,000	Myrtle Beach, SC, Public Improvements G.O., Series A (Assured Guaranty), 5.000%, 3/1/18		132,021
365,000	Myrtle Beach, SC, Recreational Facilities Improvements, Special Tax Revenue, 4.000%, 3/1/19		379,542
310,000	Newberry Investing in Children’s Education, SC, Newberry County School District Project Revenue, 5.000%, 12/1/12		325,100
790,000	Newberry Investing in Children’s Education, SC, Newberry County School District Project Revenue, 5.250%, 12/1/14		858,319
750,000	Oconee County, SC, Duke Power Co. Project Refunding Revenue, 3.600%, 2/1/17		759,952
725,000	Orangeburg Joint Governmental Action Authority Capital, Orangeburg County Project Revenue (NATL-RE), 5.000%, 4/1/13		754,493
420,000	Piedmont Municipal Power Agency, SC, Power System Refunding Revenue (NATL-RE), OID, 5.375%, 1/1/25		481,681
830,000	Piedmont Municipal Power Agency, SC, Power System Refunding Revenue, Series A3, 5.000%, 1/1/16		902,940
435,000	Piedmont Municipal Power Agency, SC, Power System Refunding Revenue, Series A3 (Assured Guaranty), 5.000%, 1/1/18		469,291
400,000	Renewable Water Resources Sewage System, SC, Refunding Revenue, Series A, Callable 1/1/20 @ 100, 5.000%, 1/1/21		435,424
1,000,000	Richland County School District No. 1, SC, School Improvements G.O., Callable 3/1/13 @ 101 (AGM, SCSDE), OID, 4.750%, 3/1/24		1,029,200

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$   275,000	Richland County School District No. 1, SC, School Improvements G.O., Callable 3/1/13 @ 101 (AGM, SCSDE), OID, 4.750%, 3/1/27	$	275,806
205,000	Scago Educational Facilities Corp. for Colleton School District, SC, School Improvements Revenue (Assured Guaranty), 5.000%, 12/1/15		225,338
435,000	Scago Educational Facilities Corp. for Pickens School District, SC, Pickens County Project Revenue (AGM), 5.000%, 12/1/14		479,896
520,000	Scago Educational Facilities Corp. for Pickens School District, SC, Pickens County Project Revenue, Callable 12/1/16 @ 100 (AGM), 5.000%, 12/1/18		559,364
750,000	Scago Educational Facilities Corp. for Pickens School District, SC, Pickens County Project Revenue, Callable 12/1/16 @ 100 (AGM), 5.000%, 12/1/19		795,968
545,000	Scago Educational Facilities Corp. for Spartanburg School District No. 5, SC, Spartanburg County Project Revenue, Callable 10/1/15 @ 100 (AGM), 5.000%, 4/1/21		563,841
500,000	Scago Public Facilities Corp. for Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/18		536,255
500,000	Scago Public Facilities Corp. for Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/19		526,145
250,000	South Carolina Educational Facilities Authority for Private Nonprofit Institutions of Higher Learning, SC, Furman University Revenue, 5.000%, 10/1/18		279,708
180,000	South Carolina Educational Facilities Authority for Private Nonprofit Institutions, Wofford College Project Revenue, 4.000%, 4/1/15		190,217
190,000	South Carolina Educational Facilities Authority for Private Nonprofit Institutions, Wofford College Project Revenue, 4.000%, 4/1/16		200,070
350,000	South Carolina Jobs-Economic Development Authority, Coastal Housing Foundation Revenue, Series A, OID, 5.500%, 4/1/20		358,985
775,000	South Carolina Jobs-Economic Development Authority, Kershaw County Medical Center Project Revenue, OID, 5.000%, 9/15/18		780,254
250,000	South Carolina Jobs-Economic Development Authority, Refunding & Improvement-AnMed Health Revenue, 5.000%, 2/1/16		271,755
550,000	South Carolina Jobs-Economic Development Authority, Refunding & Improvement-AnMed Health Revenue, Series B (Assured Guaranty), 5.000%, 2/1/19		584,326
110,000	South Carolina Jobs-Economic Development Authority, Refunding & Improvement- Palmetto Health Facilities Revenue, Series C, 6.000%, 8/1/12		114,484

Continued

37

Sterling Capital South Carolina Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$300,000	South Carolina Jobs-Economic Development Authority, Refunding & Improvement- Palmetto Health Facilities Revenue, Series C, Prerefunded 8/1/13 @ 100, 6.875%, 8/1/27	$	340,035
150,000	South Carolina State Public Service Authority, Electricity Lights & Power Refunding & Improvements Revenue, Series A, Prerefunded 1/1/12 @ 101 (AGM), 5.250%, 1/1/17		156,996
540,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/17 @ 100 (AMBAC), 5.000%, 1/1/23		570,299
140,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/17 @ 100 (AMBAC), 5.000%, 1/1/26		144,864
525,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/27		541,632
690,000	South Carolina State Public Service Authority, Refunding Revenue, Series B, Callable 1/1/16 @ 100 (NATL-RE), 5.000%, 1/1/22		729,937
450,000	South Carolina Transportation Infrastructure Bank, Highway Improvements Revenue, Series A, Callable 10/1/12 @ 100 (AMBAC), 5.250%, 10/1/21		464,598
750,000	South Carolina Transportation Infrastructure Bank, Highway Improvements Revenue, Series A, Callable 10/1/12 @ 100 (AMBAC), 5.000%, 10/1/25		750,968
115,000	South Carolina Transportation Infrastructure Bank, Highway Improvements Revenue, Series A, Callable 10/1/13 @ 100 (AMBAC), 5.000%, 10/1/14		123,708
305,000	South Carolina Transportation Infrastructure Bank, Junior Lien Revenue, Series B (AMBAC), 5.250%, 10/1/11		312,268
500,000	South Carolina Transportation Infrastructure Bank, Refunding Revenue, Series B (AMBAC), 5.250%, 10/1/15		560,825
475,000	South Carolina Transportation Infrastructure Bank, Transit Improvements Revenue, Series A (XLCA), 5.000%, 10/1/15		527,749
435,000	South Carolina Transportation Infrastructure Bank, Transit Improvements Revenue, Series A, Callable 10/1/16 @ 100 (XLCA), 5.000%, 10/1/22		445,536
400,000	Spartanburg County School District No. 1, SC, School Improvements G.O., Callable 9/1/16 @ 100 (AGM, SCSDE), 5.000%, 3/1/22		422,124
350,000	Spartanburg County, SC, Regional Health Services District, Refunding Revenue, Series A (Assured Guaranty), 4.000%, 4/15/16		360,594
500,000	Spartanburg County, SC, Regional Health Services District, Refunding Revenue, Series A, Callable 4/15/18 @ 100 (Assured Guaranty), 5.250%, 4/15/21		518,250

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$1,000,000	Sumter County, SC, Public Improvements G.O., 5.000%, 3/1/13	$	1,076,890
830,000	Three Rivers Solid Waste Authority, SC, Solid Waste Disposal Facilities Refunding Revenue, 4.500%, 12/15/16		879,958
500,000	University of South Carolina Refunding Revenue, Series A, Callable 5/1/20 @ 100, 5.000%, 5/1/28		507,270
250,000	University of South Carolina Revenue, Series A, Callable 5/1/13 @ 100 (AMBAC), OID, 4.750%, 5/1/27		249,712
390,000	Woodruff-Roebuck Water District, System Improvements Refunding Revenue, Callable 6/1/20 @ 100 (AGM), OID, 3.375%, 6/1/23		344,674
280,000	York County, SC, G.O., Callable 11/1/16 @ 100, OID, 5.100%, 11/1/21		302,019
370,000	York County, SC, School District No. 1, Refunding G.O., Series A, Callable 3/1/19 @ 100 (SCSDE), 5.000%, 3/1/20		415,610
	Total Municipal Bonds (Cost $48,059,864)		48,614,023
Shares
INVESTMENT COMPANY (2.2%)
1,108,228	Federated Tax-Free Obligations Fund, Institutional Class		1,108,228
	Total Investment Company (Cost $1,108,228)		1,108,228
Total Investments — 99.5% (Cost $49,168,092)			49,722,251
Net Other Assets (Liabilities) — 0.5%			265,580
NET ASSETS — 100.0%		$	49,987,831

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Insurance Corp.

CIFG — CDC IXIS Financial Guarantee

FGIC — Financial Guaranty Insurance Corp.

G.O. — General Obligation

NATL — National

OID — Original Issue Discount

RE — Reinsurance

SCSDE — South Carolina School District Enhancement

XLCA — XL Capital Assurance

See accompanying notes to the financial statements.

38

Sterling Capital Virginia Intermediate Tax-Free Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS (95.5%)
	District of Columbia (1.3%)
$1,000,000	Metropolitan Washington Airports Authority Revenue, Series A, Callable 10/1/20 @ 100, 5.000%, 10/1/23	$	1,052,770
400,000	Metropolitan Washington Airports Authority, Refunding Revenue, Series B, Callable 10/1/19 @ 100, 5.000%, 10/1/21		428,288
			1,481,058
	Virginia (94.2%)
1,000,000	Alexandria, VA, Public Improvements G.O., Series A, 5.000%, 6/15/16		1,156,100
1,000,000	Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21		1,150,820
1,000,000	Arlington County, VA, Industrial Development Authority, VA Hospital Center Arlington Health System Refunding Revenue, 5.000%, 7/1/18		1,074,710
1,100,000	Chesapeake Bay Bridge & Tunnel District, General Resolution Refunding Revenue (BHAC-CR NATL-RE), 5.500%, 7/1/25		1,212,970
2,100,000	Chesapeake Economic Development Authority, Pollution Control Refunding Revenue, 3.600%, 2/1/32(a)		2,156,826
1,805,000	Chesapeake Hospital Authority, VA, Chesapeake General Hospital Refunding Revenue, Series A, Callable 7/1/14 @ 101, 5.250%, 7/1/17		1,903,860
1,100,000	Chesterfield County, VA, Economic Development Authority, Electric & Power Refunding Revenue, Series A, Callable 5/1/19 @ 100, 5.000%, 5/1/23		1,142,933
2,325,000	Chesterfield County, VA, Refunding Public Improvements G.O., 5.000%, 1/1/14		2,581,982
725,000	Danville, VA, Refunding G.O., Series A, Callable 3/1/19 @ 100 (Assured Guaranty, State Aid Withholding), 5.000%, 3/1/21		789,409
600,000	Danville, VA, Refunding G.O., Series A, Callable 3/1/19 @ 100 (Assured Guaranty, State Aid Withholding), 5.000%, 3/1/22		647,190
1,750,000	Dinwiddie County, VA, Industrial Development Authority Refunding Revenue, Series B, Callable 2/15/14 @ 100 (NATL-RE), 5.000%, 2/15/24		1,759,415
1,000,000	Fairfax County, VA, Industrial Development Authority, Inova Health System Project Refunding Revenue (AGM-CR), OID, 5.250%, 8/15/19		1,089,880
1,000,000	Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project Refunding Revenue, Series C, 4.000%, 5/15/14		1,066,360
795,000	Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project Refunding Revenue, Series C, 5.000%, 5/15/18		882,418
915,000	Fairfax County, VA, Redevelopment & Housing Authority Refunding Revenue, 3.500%, 10/1/18		955,095
1,500,000	Fredericksburg Economic Development Authority, MediCorp Health System Obligation Refunding Revenue, 5.000%, 6/15/16		1,609,545

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$1,150,000	Fredericksburg Economic Development Authority, MediCorp Health System Obligation Refunding Revenue, 5.000%, 6/15/17	$	1,224,612
1,275,000	Fredericksburg Economic Development Authority, MediCorp Health System Obligation Refunding Revenue, 5.250%, 6/15/19		1,360,195
1,000,000	Hampton, VA, Public Improvements Refunding G.O., Series A, Callable 1/15/19 @100, 5.000%, 1/15/21		1,116,390
775,000	Harrisonburg, VA, Refunding G.O., Series B (State Aid Withholding), 5.000%, 7/15/18		883,221
1,000,000	Loudoun County, VA, Public Improvements G.O., Series B (State Aid Withholding), 5.000%, 12/1/14		1,137,250
1,000,000	Loudoun County, VA, Public Improvements G.O., Series B (State Aid Withholding), 5.000%, 12/1/15		1,153,550
1,020,000	Loudoun County, VA, Public Improvements G.O., Series B (State Aid Withholding), 5.000%, 12/1/16		1,187,056
580,000	Middlesex County, VA, Industrial Development Authority Refunding Revenue, Callable 8/1/14 @ 101 (NATL-RE), 4.000%, 8/1/20		562,890
1,465,000	Montgomery County, VA, Economic Development Authority, Virginia Tech Foundation Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/27		1,526,149
1,315,000	Montgomery County, VA, Industrial Development Authority Revenue, 5.000%, 2/1/18		1,463,030
1,000,000	Montgomery County, VA, Industrial Development Authority, Public Projects Revenue, Callable 2/1/18 @ 100, 5.000%, 2/1/24		1,038,490
1,155,000	Newport News Economic Development Authority, Public Improvements Revenue, Series A, Callable 1/15/16 @ 100, 5.250%, 1/15/25		1,211,075
1,105,000	Newport News, VA, Refunding G.O., Series B, (State Aid Withholding), 5.000%, 2/1/15		1,246,020
1,000,000	Newport News, VA, Refunding Public Improvements-Water G.O., Series B, 5.250%, 7/1/21		1,162,220
500,000	Norfolk, VA, Bond Anticipation Notes Refunding G.O., Series A, Callable 7/1/12 @ 100, 3.000%, 1/1/14		510,690
1,000,000	Norfolk, VA, Parking Systems Refunding Revenue, Series B (AMBAC), 5.000%, 2/1/13		1,045,150
1,030,000	Norfolk, VA, Water Utility Improvements Refunding Revenue, Callable 5/2/11 @ 100 (AGM), 5.125%, 11/1/11		1,034,120
200,000	Norfolk, VA, Water Utility Improvements Refunding Revenue, Callable 5/2/11 @ 100 (AGM), 5.125%, 11/1/23		200,556
1,000,000	Norfolk, VA, Water Utility Improvements Revenue, Callable 11/1/18 @ 100, 5.000%, 11/1/23		1,079,550

Continued

39

Sterling Capital Virginia Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$   400,000	Northern Virginia Transportation District Commission, VA, Commuter Rail Refunding Revenue, Virginia Railway Express Project, Callable 5/2/11 @ 100 (AGM), 5.375%, 7/1/14	$	401,448
1,000,000	Pittsylvania County, VA, Refunding G.O., Series B, 3.000%, 3/1/16		1,031,880
1,000,000	Pittsylvania County, VA, School Improvements G.O., Series B, 5.000%, 2/1/19		1,116,170
1,320,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.200%, 2/1/20		1,466,692
1,775,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.375%, 2/1/21		1,974,599
1,440,000	Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23		1,590,322
1,055,000	Portsmouth, VA, Refunding G.O., Series D, Callable 7/15/20 @ 100, 5.000%, 7/15/21		1,185,039
925,000	Prince William County, VA, Industrial Development Authority Potomac Hospital Corporation Revenue, Callable 10/1/13 @ 102, 5.500%, 10/1/18		963,064
1,500,000	Prince William County, VA, Lease Refunding Certificate of Participation, 3.500%, 10/1/18		1,518,495
825,000	Prince William County, VA, Service Authority, Water & Sewer Systems Refunding Revenue, Callable 7/1/13 @ 102, 5.000%, 7/1/14		912,202
955,000	Richmond Metropolitan Authority, VA, Expressway Refunding Revenue (NATL-RE FGIC), 5.250%, 7/15/15		1,052,964
1,490,000	Richmond Metropolitan Authority, VA, Expressway Refunding Revenue (NATL-RE FGIC), 5.250%, 7/15/16		1,649,922
880,000	Riverside, VA, Regional Jail Authority Refunding Revenue, Callable 7/1/13 @ 101 (NATL-RE), 5.000%, 7/1/17		926,226
1,100,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/15		1,155,704
885,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/20		879,115
1,050,000	Southampton County, VA, Industrial Development Authority, Public Facilities Lease Revenue, Series A, Callable 4/1/16 @ 100 (CIFG), 5.000%, 4/1/19		1,082,277
1,000,000	Spotsylvania County, VA, Public Improvements G.O., Callable 1/15/16 @ 100 (AGM), 5.000%, 1/15/17		1,125,700
2,925,000	Spotsylvania County, VA, Refunding G.O. (AGM), 5.500%, 7/15/12		3,116,997
1,420,000	Spotsylvania County, VA, Water & Sewer System Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/28		1,471,688
375,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program B Revenue (CIFG), OID, 4.250%, 8/1/15		391,185

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$   170,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program Revenue (XLCA), 4.000%, 8/1/15	$	178,500
330,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program Revenue (XLCA), OID, 4.000%, 8/1/17		341,260
600,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program Revenue (XLCA), OID, 4.000%, 8/1/18		610,248
765,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program, Public Improvements Revenue, Series B (XLCA), 5.000%, 8/1/16		827,348
1,515,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Revenue, Series I, 4.000%, 2/1/16		1,603,279
960,000	Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Revenue, Series I, 4.000%, 2/1/17		1,007,472
1,000,000	Suffolk, VA, Public Improvements Refunding G.O., Callable 12/1/15 @100, 5.000%, 12/1/18		1,100,050
1,300,000	Suffolk, VA, Public Improvements Refunding G.O., Series A (NATL-RE), 5.000%, 2/1/16		1,481,688
2,425,000	Suffolk, VA, Public Improvements Refunding G.O., Series A (NATL-RE), 5.000%, 2/1/17		2,777,740
2,175,000	Tobacco Settlement Financing Corp., VA, Asset-Backed Revenue, Callable 6/1/15 @ 100, OID, 5.500%, 6/1/26		2,406,964
535,000	Tobacco Settlement Financing Corp., VA, Asset-Backed Revenue, Prerefunded 6/1/15 @ 100, OID, 5.625%, 6/1/37		618,920
1,650,000	Virginia Beach, VA, Public Improvements G.O., Prerefunded 6/1/19 @ 100, 5.000%, 6/1/20		1,943,354
2,000,000	Virginia Beach, VA, Public Improvements G.O., Prerefunded 6/1/19 @ 100, 5.000%, 6/1/22		2,355,580
2,000,000	Virginia College Building Authority, 21st Century College Program Refunding Revenue, Series B, 5.250%, 2/1/13		2,165,380
810,000	Virginia College Building Authority, Public Higher Education Financing Program Revenue, 21St Century College & Equipment, Series A, Callable 2/1/18 @ 100, 5.000%, 2/1/21		885,913
1,040,000	Virginia College Building Authority, Public Higher Education Financing Program Revenue, Series A, Callable 9/1/15 @ 100, 5.000%, 9/1/22		1,107,028
1,525,000	Virginia Commonwealth, Public Improvements G.O., Series B, 5.000%, 6/1/17		1,771,181
1,370,000	Virginia Commonwealth, Refunding G.O., Series B, 5.000%, 6/1/14		1,539,469

Continued

40

Sterling Capital Virginia Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$1,075,000	Virginia Housing Development Authority, Commonwealth Mortgage Single Family Housing-State Revenue, Series A1, Callable 7/1/19 @ 100 (G.O. of Authority), 4.600%, 7/1/25	$	1,068,926
1,500,000	Virginia Housing Development Authority, Homeownership Mortgage Single Family Housing-State Revenue, Series A, 3.900%, 3/1/19		1,522,965
2,240,000	Virginia Public Building Authority, Public Facilities Refunding Revenue, Series A, 5.000%, 8/1/11		2,275,302
1,000,000	Virginia Public Building Authority, Virginia Public Facilities Building Revenue, Series A, Callable 8/1/17 @ 100 (NATL-RE), 5.000%, 8/1/18		1,130,420
1,000,000	Virginia Public School Authority, School Financing 1997 Resolution Revenue, Series B, Callable 8/1/17 @100 (NATL-RE), 5.000%, 8/1/26		1,049,700
1,225,000	Virginia Resources Authority, Clean Water State Revolving Fund Revenue, Callable 10/1/17 @ 100, 4.750%, 10/1/24		1,284,057
1,000,000	Virginia Resources Authority, State Revolving Fund Refunding Revenue, 5.500%, 10/1/17		1,189,720
65,000	Virginia Resources Authority, State Revolving Fund Revenue, 5.250%, 10/1/15		75,722
1,835,000	Virginia Small Business Financing Authority, Sentara Healthcare Refunding Revenue, 4.000%, 11/1/16		1,951,963
525,000	Virginia Small Business Financing Authority, Sentara Healthcare Refunding Revenue, Callable 5/1/20 @ 100, OID, 4.000%, 11/1/20		529,368
2,000,000	York County, VA, Economic Development Authority, Electric & Power Refunding Revenue, Series A, 4.050%, 5/1/33(a)		2,090,620
			105,223,553
	Total Municipal Bonds (Cost $102,828,976)		106,704,611

Shares		Fair Value
INVESTMENT COMPANY (3.8%)
4,282,588	Federated Virginia Municipal Money Market Portfolio, Institutional Class	$	4,282,588
	Total Investment Company (Cost $4,282,588)		4,282,588
Total Investments — 99.3% (Cost $107,111,564)			110,987,199
Net Other Assets (Liabilities) — 0.7%			733,879
NET ASSETS — 100.0%		$	111,721,078

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Insurance Corp.

BHAC — Berkshire Hathaway Insurance Corp.

CIFG — CDC IXIS Financial Guarantee

CR — Custodial Receipts

FGIC — Financial Guaranty Insurance Corp.

G.O. — General Obligation

NATL — National

OID — Original Issue Discount

RE — Reinsurance

XLCA — XL Capital Assurance

See accompanying notes to the financial statements.

41

Sterling Capital West Virginia Intermediate Tax-Free Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS (95.7%)
	West Virginia (95.7%)
$1,250,000	Berkeley County Board of Education, WV, School Improvements G.O., Callable 5/1/12 @ 101 (NATL-RE FGIC), 5.000%, 5/1/16	$	1,312,975
975,000	Berkeley County, WV, Public Service Sewer District Revenue, Series A, Callable 3/1/15 @ 100, 5.000%, 3/1/22		982,956
2,500,000	Berkeley, Hardy, & Jefferson Counties, WV, Local Multifamily Housing Revenue, Scattered Site Project, Callable 12/1/20 @ 100 (Freddie Mac), 5.375%, 12/1/44(a)		2,575,950
670,000	Braxton County, WV, Board of Education Public Schools Improvements G.O., Callable 5/1/18 @ 100 (AGM), 5.000%, 5/1/23		707,989
1,110,000	Brooke County, WV, Board of Education School Improvements G.O., Callable 5/2/11 @ 100 (NATL-RE FGIC), 5.000%, 5/1/16		1,113,763
1,450,000	Cabell County, WV, Board of Education School Improvements G.O. (NATL-RE), 5.000%, 5/1/16		1,637,528
490,000	Cabell, Putnam & Wayne Counties, WV, State Housing Revenue (FGIC), 7.375%, 4/1/11		490,000
1,030,000	Charleston, WV, Urban Renewal Authority, Public Improvements Lease Revenue, Callable 4/25/11 @ 102 (AGM), 5.250%, 12/15/18		1,053,546
2,425,000	Clarksburg, WV, Water Refunding Revenue, Callable 9/1/12 @ 101 (NATL-RE FGIC), 5.250%, 9/1/19		2,546,784
900,000	Fairmont State University, WV, University & College Improvements Revenue, Series A, Callable 6/1/13 @ 100 (NATL-RE FGIC), 5.250%, 6/1/22		916,128
680,000	Fairmont, WV, Waterworks Refunding Revenue, Callable 5/2/11 @ 100 (NATL-RE), OID, 5.375%, 7/1/13		682,217
2,050,000	Greenbrier County, WV, Board of Education Public Schools Improvements G.O. (AGM), 5.000%, 5/1/18		2,315,004
1,030,000	Greenbrier County, WV, Commission Tax Increment Revenue, White Sulphur Springs Project 1-A, Callable 6/1/15 @ 100, 6.000%, 6/1/18		1,038,147
1,320,000	Harrison County, WV, County Commission Tax Allocation Refunding Revenue, Charles Pointe Project No. 2, Series A, Callable 6/1/18 @ 100, 6.500%, 6/1/23		1,148,176
245,000	Huntington Municipal Development Authority Revenue, Huntington Public Facilities Refunding Revenue, Series A, 3.000%, 11/1/13		245,245
875,000	Huntington Municipal Development Authority Revenue, Huntington Public Facilities Refunding Revenue, Series A, 4.000%, 11/1/16		866,390
610,000	Logan County, WV, 1st Mortgage-Logan County Health Revenue, 8.000%, 12/1/16		731,683
1,000,000	Mason County, WV, Appalachian Power Co. Project Refunding Revenue, Series K, Callable 5/2/11 @ 100.5 (AMBAC), 6.050%, 12/1/24		1,006,760

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	West Virginia — (continued)
$3,040,000	Monongalia County, WV, Board of Education G.O., Callable 5/1/14 @ 101 (NATL-RE), OID, 5.000%, 5/1/33	$	2,972,299
1,660,000	Monongalia County, WV, Building Commission, Monongalia General Hospital Revenue, Series A, Callable 7/1/15 @ 100, 5.250%, 7/1/20		1,684,468
600,000	Morgantown, WV, Custodial Receipts Revenue, OID, 4.375%, 7/15/24		582,582
1,205,000	Ohio County, WV, County Commission Sewage System, Fort Henry Centre Tax Allocation Revenue, District A, 5.350%, 6/1/17		1,180,779
420,000	Ohio County, WV, Board of Education, Refunding G.O., Callable 6/1/11 @ 100 (NATL-RE-IBC), OID, 5.000%, 6/1/13		421,462
250,000	Ohio County, WV, Board of Education, Refunding G.O., Callable 6/1/11 @ 100 (NATL-RE-IBC), OID, 5.125%, 6/1/18		250,747
1,030,000	Ohio County, WV, County Commission Sewage System, Fort Henry Centre Tax Allocation Revenue, District A, Callable 6/1/17 @ 100, 5.625%, 6/1/22		984,278
1,190,000	Parkersburg, WV, Combined Waterworks & Sewer Systems Refunding Revenue, Series C (NATL-RE FGIC), 5.000%, 9/1/14		1,280,987
1,330,000	Parkersburg, WV, Combined Waterworks & Sewer Systems Refunding Revenue, Series C (NATL-RE FGIC), 5.000%, 9/1/15		1,434,498
2,100,000	Pleasants County, WV, Industrial Development, Monongahela Power Co. Refunding Revenue, Series C, Callable 5/2/11 @ 100 (AMBAC), 6.150%, 5/1/15		2,102,919
2,105,000	Putnam County, WV, Board of Education G.O., 4.000%, 5/1/19		2,253,024
1,000,000	Putnam County, WV, Board of Education G.O., Callable 5/1/20 @ 100, 4.000%, 5/1/22		1,018,610
1,400,000	Shepherd University Board of Governors, WV, Residence Facilities Projects Revenue, Callable 6/1/15 @ 100 (NATL-RE), 5.000%, 6/1/25		1,419,866
1,000,000	Shepherd University Board of Governors, WV, Shepherd University Wellness Center Project Revenue, Callable 12/1/17 @ 100 (NATL-RE), 5.000%, 6/1/22		1,046,570
1,700,000	West Virginia Board of Education, WV, Refunding Revenue, 5.000%, 5/1/19		1,786,037
1,235,000	West Virginia Commissioner of Highways, Surface Transportation Improvements Revenue, Series A (AGM), 5.000%, 9/1/14		1,379,260
2,000,000	West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A (NATL-RE), 5.500%, 6/1/12		2,107,900
1,000,000	West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (NATL-RE), 5.500%, 6/1/13		1,053,500
1,000,000	West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (NATL-RE), 5.500%, 6/1/15		1,053,500

Continued

42

Sterling Capital West Virginia Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	West Virginia — (continued)
$1,200,000	West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (NATL-RE), 5.500%, 6/1/18	$	1,262,856
1,040,000	West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (NATL-RE), 5.500%, 6/1/19		1,093,279
1,520,000	West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (NATL-RE), OID, 5.000%, 6/1/26		1,524,226
1,000,000	West Virginia Economic Development Authority, Department of Environmental Protection Lease Revenue, Callable 11/1/12 @ 102, 5.500%, 11/1/22		1,064,120
1,000,000	West Virginia Economic Development Authority, Solid Waste Disposal Facilities Revenue, Ohio Power Co. Amos Project, Series A, 3.125%, 3/1/43(a)		994,230
240,000	West Virginia Economic Development Authority, State Energy Savings Project Lease Revenue, 4.250%, 6/1/12		248,513
155,000	West Virginia Economic Development Authority, State Energy Savings Project Lease Revenue, Callable 6/1/15 @ 100, 4.750%, 6/1/21		159,131
2,300,000	West Virginia Economic Development Authority, State Office Building & Parking Lot Lease Revenue, Series A, Callable 8/1/19 @ 100, OID, 4.750%, 8/1/29		2,261,153
1,250,000	West Virginia Economic Development Authority, State Office Building Lease Revenue, Series A, Callable 10/1/11 @ 101, 5.000%, 10/1/15		1,281,938
595,000	West Virginia Higher Education Policy Commission, Community & Technical Capital Improvements Revenue, Series A, 4.000%, 7/1/19		604,597
360,000	West Virginia Higher Education Policy Commission, Community & Technical Capital Improvements Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/20		384,412
820,000	West Virginia Higher Education Policy Commission, Higher Education Facilities Refunding Revenue, Series B (NATL-RE FGIC), 5.000%, 4/1/14		884,714
1,050,000	West Virginia Higher Education Policy Commission, Higher Education Facilities Refunding Revenue, Series B, Callable 4/1/14 @ 100 (NATL-RE FGIC), 5.000%, 4/1/16		1,128,414
1,850,000	West Virginia Higher Education Policy Commission, Higher Education Facilities Refunding Revenue, Series B, Callable 4/1/14 @ 100 (NATL-RE FGIC), 5.000%, 4/1/23		1,910,754
2,490,000	West Virginia Higher Education Policy Commission, Higher Education Facilities Refunding Revenue, Series B, Callable 4/1/14 @ 100 (NATL-RE FGIC), 5.000%, 4/1/34		2,340,998
550,000	West Virginia School Building Authority Excess, Lottery Revenue, 5.000%, 7/1/16		616,088

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	West Virginia — (continued)
$1,500,000	West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A (NATL-RE FGIC), 5.000%, 7/1/14	$	1,643,400
1,525,000	West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A (NATL-RE FGIC), 5.000%, 7/1/15		1,685,216
2,100,000	West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A (NATL-RE FGIC), 5.000%, 7/1/16		2,332,680
1,910,000	West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A, Callable 7/1/17 @ 100 (NATL-RE FGIC), 5.000%, 7/1/18		2,081,232
1,535,000	West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A, Callable 7/1/17 @ 100 (NATL-RE FGIC), 5.000%, 7/1/19		1,646,241
100,000	West Virginia School Building Authority, Capital Improvements Revenue (NATL-RE), 5.250%, 1/1/14		109,552
1,150,000	West Virginia School Building Authority, Capital Improvements Revenue (NATL-RE), 5.250%, 7/1/14		1,275,856
1,300,000	West Virginia School Building Authority, Excess Lottery Revenue, 5.000%, 7/1/18		1,447,251
1,705,000	West Virginia School Building Authority, Excess Lottery Revenue, Callable 7/1/18 @ 100, OID, 5.000%, 7/1/27		1,738,094
2,565,000	West Virginia School Building Authority, Excess Lottery Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/30		2,598,935
1,690,000	West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A (AMBAC), 5.375%, 7/1/21		1,774,804
640,000	West Virginia State Hospital Finance Authority, Charleston Area Medical Center, Inc. Revenue, Series A, OID, 6.500%, 9/1/16		758,074
1,085,000	West Virginia State Hospital Finance Authority, Linked Bears & Bulls Refunding Revenue, Callable 5/2/11 @ 100 (NATL-RE), 6.100%, 1/1/18		1,085,391
500,000	West Virginia State Hospital Finance Authority, United Health System Refunding Revenue, Series C, 5.000%, 6/1/18		528,310
845,000	West Virginia State Hospital Finance Authority, Vy Health System Obligation Revenue, Callable 1/1/15 @ 100, OID, 5.000%, 1/1/24		823,943
785,000	West Virginia State Hospital Finance Authority, West Virginia United Health System Refunding Revenue, Series E, Callable 12/1/18 @ 100, OID, 5.375%, 6/1/28		774,983
1,000,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL-RE FGIC G.O. of Authority), 5.250%, 5/15/12		1,049,720
825,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL-RE FGIC G.O. of Authority), 5.250%, 5/15/17		932,811

Continued

43

Sterling Capital West Virginia Intermediate Tax-Free Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Fair Value
MUNICIPAL BONDS — (continued)
	West Virginia — (continued)
$   395,000	West Virginia University, Projects Improvement Revenue, Series C, Callable 10/1/14 @ 100 (NATL-RE FGIC), 5.000%, 10/1/22	$	411,859
285,000	West Virginia University, Projects Refunding Revenue, Series B, Callable 10/1/14 @ 100 (NATL-RE FGIC), 5.000%, 10/1/21		297,791
955,000	West Virginia University, Projects Revenue, Series A (NATL-RE), 5.250%, 4/1/28		983,230
465,000	West Virginia Water Development Authority, Infrastructure Jobs Refunding Revenue, Series A, Callable 10/1/16 @ 100 (AGM), 5.000%, 10/1/26		473,272
540,000	West Virginia Water Development Authority, Infrastructure Jobs Revenue, Series A, Callable 10/1/16 @ 100 (AGM), 4.750%, 10/1/23		550,017
1,110,000	West Virginia Water Development Authority, Loan Program II Refunding Revenue, Series B, Callable 11/1/13 @ 101 (AMBAC), 5.250%, 11/1/23		1,142,334
890,000	West Virginia Water Development Authority, Loan Programs Refunding Revenue, Series A1, Callable 11/1/12 @ 102 (AMBAC), 5.250%, 11/1/23		915,926
2,090,000	West Virginia, State Road Refunding G.O. (NATL-RE FGIC), 5.000%, 6/1/15		2,354,301
	Total Municipal Bonds (Cost $95,043,105)		96,559,173

Shares		Fair Value
INVESTMENT COMPANY (2.7%)
2,726,121	Federated Tax-Free Obligations Fund, Institutional Class	$	2,726,121
	Total Investment Company (Cost $2,726,121)		2,726,121
Total Investments — 98.4% (Cost $97,769,226)			99,285,294
Net Other Assets (Liabilities) — 1.6%			1,608,539
NET ASSETS — 100.0%		$	100,893,833

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011.The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Insurance Corp.

FGIC — Financial Guaranty Insurance Corp.

G.O. — General Obligation

IBC — Insured Bond Certificates

NATL — National

OID — Original Issue Discount

RE — Reinsurance

See accompanying notes to the financial statements.

44

Sterling Capital National Tax-Free Money Market Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Amortized Cost
MUNICIPAL BONDS (99.9%)
	Arizona (9.2%)
$3,425,000	Phoenix Industrial Development Authority, AZ, Southwestern College of Phoenix Revenue (Comerica Bank), 0.300%, 4/7/11(a)	$	3,425,000
5,000,000	Salt River Project Agricultural Improvement & Power District, Electric System Refunding Revenue, Callable 1/1/16 @ 100, 0.250%, 4/7/11(a)(b)		5,000,000
3,875,000	Sun Devil Energy Center LLC, Arizona State University Project Refunding Revenue (Assured Guaranty, Royal Bank of Canada), 0.280%, 4/6/11(a)		3,875,000
			12,300,000
	Colorado (1.2%)
1,600,000	Thornton, CO, Kroger Co. Industrial Development Refunding Revenue (U.S. Bank N.A.), 0.320%, 4/7/11(a)		1,600,000
	Connecticut (1.5%)
2,000,000	Stafford, CT, G.O. Bond Anticipation Notes Cash Flow Management, 1.500%, 8/8/11		2,006,110
	Georgia (9.8%)
2,725,000	Atlanta, GA, Water & Waste Water Revenue, Floating Rate Trust Receipts, Series K2 (AGM), 0.400%, 4/7/11(a)(b)		2,725,000
3,600,000	Columbus Development Authority, GA, Local Multifamily Housing Revenue, Lumpkin Park Apartments Project (Freddie Mac, Regions Bank), 0.320%, 4/7/11(a)		3,600,000
1,050,000	Fayette County, GA, Hospital Authority Anticipation Certificates Revenue, Fayette Community Hospital (FHLB, SunTrust Bank), 0.230%, 4/6/11(a)		1,050,000
1,700,000	Fulton County, GA, Development Authority Refunding Revenue, 0.400%, 4/15/11(a)		1,700,000
1,000,000	Fulton County, GA, Development Authority, Educational Facilities Refunding Revenue, The Donnellan School, Inc. Project (Bank of New York), 0.340%, 4/7/11(a)		1,000,000
3,075,000	Monroe County, GA, Development Authority Revenue, Georgia Power Co. Plant Scherer Project, 0.310%, 4/1/11(a)		3,075,000
			13,150,000
	Illinois (6.3%)
2,525,000	Illinois Finance Authority, IL, National Louis University Refunding Revenue, Series A (JPMorgan Chase Bank), 0.250%, 4/7/11(a)		2,525,000
4,000,000	Illinois Finance Authority, IL, Swedish Conevant Refunding Revenue, Series A (LaSalle Bank N.A.), 0.260%, 4/6/11(a)		4,000,000
2,000,000	Will County, IL, University of St. Francis Project Revenue (Fifth Third Bank), 0.500%, 4/1/11(a)		2,000,000
			8,525,000
	Louisiana (5.2%)
7,000,000	St. James Parish, LA, Nucor Steel LLC Project Revenue, Series B1, 0.260%, 4/6/11(a)		7,000,000

Principal Amount		Amortized Cost
MUNICIPAL BONDS — (continued)
	New Jersey (2.1%)
$  1,750,000	Clinton Township, NJ, G.O. Bond Anticipation Notes Cash Flow Management, 1.500%, 2/2/12	$	1,760,215
1,000,000	Stone Harbor Borough, NJ, G.O. Bond Anticipation Notes Cash Flow Management, 1.250%, 11/10/11		1,003,641
			2,763,856
	New York (3.7%)
4,938,600	Bedford Town, NY, G.O. Bond Anticipation Notes Cash Flow Management, 1.500%, 6/29/11		4,950,700
	Ohio (28.5%)
1,000,000	Bowling Green, OH, G.O. Bond Anticipation Notes, 1.000%, 3/16/12		1,002,840
2,000,000	Brecksville, OH, G.O. Bond Anticipation Notes Cash Flow Management, 1.500%, 6/15/11		2,003,058
1,300,000	Butler County, OH, G.O. Bond Anticipation Notes Cash Flow Management, 0.650%, 8/4/11		1,300,000
2,335,000	Cuyahoga County, OH, Magnificat High School Project Revenue (Fifth Third Bank), 0.590%, 4/7/11(a)		2,335,000
7,975,000	Greene County, OH, Medical Health System, Inc. Refunding Revenue, Series A (JPMorgan Chase Bank), 0.320%, 4/7/11(a)		7,975,000
3,000,000	Lakewood City, OH, G.O. Bond Anticipation Notes Cash Flow Management, 1.000%, 4/13/11		3,000,342
1,700,000	Lancaster Port Authority, OH, National Gas Utility Revenue (Royal Bank of Canada), 0.250%, 4/7/11(a)		1,700,000
2,000,000	Niles, OH, G.O. Bond Anticipation Notes Cash Flow Management, 1.250%, 11/9/11		2,006,642
1,000,000	Painesville City, OH, G.O. Bond Anticipation Notes Cash Flow Management, 2.000%, 8/9/11		1,004,240
1,050,000	Pike County, OH, Health Care Facilities Refunding Revenue, National Church, Series A (Bank of America N.A.), 0.280%, 4/7/11(a)		1,050,000
1,220,000	Rossford City, OH, G.O. Bond Anticipation Notes Cash Flow Management, 1.150%, 4/15/11		1,220,209
5,220,000	Summit County, OH, Western Reserve Academy Project Revenue (Keybank N.A.), 0.540%, 4/7/11(a)		5,220,000
2,990,000	University of Cincinnati, OH, Bond Anticipation Refunding Revenue Notes, 1.500%, 7/21/11		2,998,129
4,000,000	University of Cincinnati, OH, Bond Anticipation Refunding Revenue Notes, Series H, 2.000%, 12/16/11		4,042,348
1,375,000	Williams County, OH, Community Hospitals & Wellness Center Revenue (Fifth Third Bank), 0.500%, 4/1/11(a)		1,375,000
			38,232,808
	Pennsylvania (8.9%)
11,925,000	Pennsylvania Higher Educational Facilities Authority, La Salle University Revenue, Series B (Citizens Bank), 0.280%, 4/6/11(a)		11,925,000

Continued

45

Sterling Capital National Tax-Free Money Market Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Amortized Cost
MUNICIPAL BONDS — (continued)
	South Carolina (3.1%)
$4,125,000	South Carolina Jobs Economic Development Authority, SC, Woodhead LLC Project Revenue, Series A (FHLB), 0.350%, 4/7/11(a)	$	4,125,000
	Texas (2.5%)
3,345,000	Houston Higher Education Finance Corp., TX, University & College Improvements Revenue, Tierwester Oaks, Series A (Bank of New York), 0.950%, 4/1/11(a)		3,345,000
	Utah (4.2%)
2,500,000	Riverton, UT, Hospital (IHC Health) Putters Revenue, Series 1762, 0.250%, 4/7/11(a)(b)		2,500,000
3,125,000	Utah Housing Corp., UT, Timbergate Local Multifamily Housing Revenue, Series A (Freddie Mac), 0.270%, 4/7/11(a)		3,125,000
			5,625,000
	Vermont (1.1%)
1,500,000	Vermont Economic Development Authority, VT, Green Mountain College Revenue, Series A (Keybank N.A.), 0.540%, 4/7/11(a)		1,500,000
	Virginia (3.0%)
1,400,000	Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project Refunding Revenue, Series C2 (Northern Trust Company), 0.220%, 4/6/11(a)		1,400,000
2,700,000	Loudoun County, VA, Industrial Development Authority, Howard Hughes Medical Revenue, Series E, 0.200%, 4/6/11(a)		2,700,000
			4,100,000
	Washington (8.4%)
5,440,000	Washington Economic Development Finance Authority, WA, Northwest Center Project Revenue, Series A (Keybank N.A.), 0.540%, 4/7/11(a)		5,440,000
5,900,000	Washington State Housing Finance Commission, WA, Forest Ridge School Nonprofit Revenue, Series A (Keybank N.A.), 0.540%, 4/7/11(a)		5,900,000
			11,340,000

Principal Amount		Amortized Cost
MUNICIPAL BONDS — (continued)
	Wisconsin (1.2%)
$1,600,000	Wisconsin Health & Educational Facilities Authority, Capitol Lakes, Inc. Revenue, Series B (U.S. Bank N.A.), 0.270%, 4/7/11(a)	$	1,600,000
	Total Municipal Bonds (Cost $134,088,474)		134,088,474
Shares		Fair Value
INVESTMENT COMPANY (0.0%)
11,574	SEI Institutional Tax Free Fund		11,574
	Total Investment Company (Cost $11,574)		11,574
Total Investments — 99.9% (Cost $134,100,048)			134,100,048
Net Other Assets (Liabilities) — 0.1%			189,180
NET ASSETS — 100.0%		$	134,289,228

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the next reset date.

(b) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutionalinvestors.TheInvestmentAdvisor,usingboardapprovedprocedures, has deemed these securities or a portion of these securities to be liquid.

AGM — Assured Guaranty Municipal Corp.

FHLB — Federal Home Loan Bank

G.O. — General Obligation

N.A. — North America

See accompanying notes to the financial statements.

46

Sterling Capital Prime Money Market Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Amortized Cost
ASSET BACKED SECURITIES (3.2%)
$  3,907,398	AmeriCredit Automobile Receivables Trust, Series 2011-1, Class A1, 0.322%, 2/8/12	$	3,907,398
14,000,000	Arkle Master Issuer PLC, Series 2010-1A, Class 1A, 0.454%, 4/18/11(a)(b)		14,000,000
374,192	Hyundai Auto Receivables Trust, Series 2010-B, Class A1, 0.371%, 9/15/11		374,192
	Total Asset Backed Securities (Cost $18,281,590)		18,281,590
BANKERS ACCEPTANCE (1.3%)
	Financial Services (1.3%)
7,500,000	Bank of America Corp., 0.280%, 6/13/11		7,495,742
	Total Bankers Acceptance (Cost $7,495,742)		7,495,742
CERTIFICATES OF DEPOSIT (12.0%)
	Banks (12.0%)
24,000,000	Bank of Montreal, 0.398%, 4/27/11		24,000,000
9,000,000	Bank of Tokyo Mitsubishi UFJ, Ltd., 0.250%, 4/28/11		9,000,000
6,000,000	Bank of Tokyo Mitsubishi UFJ, Ltd., 0.300%, 6/7/11		6,000,000
4,000,000	Bank of Tokyo Mitsubishi UFJ, Ltd., 0.290%, 6/8/11		4,000,000
24,000,000	Mizuho Corp. Bank, Ltd., 0.310%, 4/26/11		24,000,000
2,000,000	Mizuho Corp. Bank, Ltd., 0.290%, 5/17/11		2,000,000
	Total Certificates of Deposit (Cost $69,000,000)		69,000,000
COMMERCIAL PAPER(c) (33.2%)
	Asset Backed Securities (15.7%)
2,000,000	Fairway Finance Co. LLC, 0.294%, 4/18/11(a)(d)		2,000,000
10,300,000	Falcon Asset Securitization Co. LLC, 0.250%, 6/9/11(a)		10,295,065
20,000,000	Falcon Asset Securitization Co. LLC, 0.250%, 6/15/11(a)		19,989,583
10,000,000	Fcar Auto Loan Trust, 0.280%, 5/13/11		9,996,733
10,000,000	Fcar Auto Loan Trust, 0.450%, 7/11/11		9,987,375
10,000,000	Fcar Auto Loan Trust, 0.450%, 8/2/11		9,984,625
28,000,000	Jupiter Securitization Co. LLC, 0.260%, 5/16/11(a)		27,990,900
			90,244,281
	Banking (1.2%)
7,000,000	Australia & New Zealand Banking Group, Ltd., 0.350%, 4/7/11(a)(d)		7,000,000
	Financial Services (16.3%)
19,000,000	Bank of America Corp., 0.300%, 4/20/11		18,996,992
25,000,000	Citigroup Funding, Inc., 0.280%, 4/4/11		24,999,417
5,000,000	Citigroup Funding, Inc., 0.259%, 5/11/11		4,998,556
15,000,000	Novartis Finance Corp., 0.200%, 4/15/11(a)		14,998,833
10,000,000	Toyota Motor Credit Corp., 0.400%, 5/31/11		9,993,333
10,000,000	Toyota Motor Credit Corp., 0.380%, 6/3/11		9,993,350
2,000,000	Toyota Motor Credit Corp., 0.270%, 6/23/11		1,998,755
7,500,000	Toyota Motor Credit Corp., 0.280%, 7/14/11		7,493,933
			93,473,169
	Total Commercial Paper (Cost $190,717,450)		190,717,450

Principal Amount		Amortized Cost
CORPORATE BONDS (2.4%)
	Banking (0.8%)
$  4,623,000	JPMorgan Chase & Co., 5.600%, 6/1/11	$	4,663,569
	Financial Services (0.4%)
2,350,000	General Electric Capital Corp., GMTN, 5.500%, 4/28/11		2,358,076
	Insurance (1.2%)
6,800,000	Metropolitan Life Global Funding I, 5.750%, 7/25/11(a)		6,911,714
	Total Corporate Bonds (Cost $13,933,359)		13,933,359
VARIABLE RATE NOTES(b) (30.4%)
	Banking (22.5%)
1,570,000	Anchor Holdings LLC, Series 2000 (U.S. Bank, N.A.), 0.600%, 4/7/11		1,570,000
20,000,000	Australia & New Zealand Banking Group, Ltd., 0.334%, 4/20/11(a)		20,000,000
3,500,000	Bank of Montreal, Series YCD, 0.338%, 4/26/11		3,500,000
6,015,000	Jaxon Arbor LLC, Series A, 0.280%, 4/7/11		6,015,000
400,000	JPMorgan Chase Bank N.A., 0.288%, 4/28/11		399,766
25,000,000	National Australia Bank of New York, Series YCD, 0.318%, 4/11/11		25,000,000
11,400,000	New Mexico Finance Authority, NM, State Transportation Subordinate Lien Refunding Revenue, Series D, Taxable (Royal Bank of Canada), 0.260%, 4/7/11		11,400,000
2,400,000	New York City, NY, Industrial Development Agency, Civic Facility Revenue, New York Law School Project, Series A (JPMorgan Chase Bank N.A.), 0.210%, 4/7/11		2,400,000
20,000,000	Rochester, MN, Health Care Facilities Refunding Revenue, Mayo Clinic, Series B (Northern Trust Company), 0.220%, 4/6/11		20,000,000
3,055,000	Spira Millennium LLC, Series 2001 (Bank of America N.A.), 0.420%, 4/7/11		3,055,000
4,000,000	Syracuse Industrial Development Agency, NY, Civic Facility Syracuse University Revenue, Series A (JPMorgan Chase Bank N.A.), 0.210%, 4/6/11		4,000,000
32,000,000	Westpac Banking Corp., 0.336%, 4/14/11(a)		32,000,000
			129,339,766
	Financial Services (0.1%)
551,000	General Electric Capital Corp., 0.394%, 4/28/11		551,009
	Insurance (0.1%)
700,000	MetLife Insurance Co. of Connecticut, 0.789%, 6/15/11		699,988
	Municipal Bonds (7.7%)
14,350,000	California Housing Finance Agency, CA, Home Mortgage Revenue, Series F (Freddie Mac), 0.220%, 4/6/11		14,350,000
14,701,000	Loudoun County, VA, Industrial Development Authority Revenue, Howard Hughes Medical, Series A, 0.200%, 4/6/11		14,701,000

Continued

47

Sterling Capital Prime Money Market Fund

   Schedule of Portfolio Investments — (continued)

   March 31, 2011 (Unaudited)

Principal Amount		Amortized Cost
VARIABLE RATE NOTES(b) — (continued)
	Municipal Bonds — (continued)
$15,000,000	Massachusetts Health & Educational Facilities Authority Refunding Revenue, Children’s Hospital, Series N4 (JPMorgan Chase Bank N.A., The Children’s Medical Center), 0.220%, 4/1/11	$	15,000,000
			44,051,000
	Total Variable Rate Notes (Cost $174,641,763)		174,641,763
U.S. GOVERNMENT AGENCIES (4.3%)
	Federal Financing Bank (3.5%)
20,000,000	Straight-A Funding LLC, 0.199%, 4/7/11(a)		19,999,333
	Federal Home Loan Bank (0.8%)
5,000,000	Federal Home Loan Bank, 0.450%, 4/27/12		5,000,000
	Total U.S. Government Agencies (Cost $24,999,333)		24,999,333
U.S. TREASURY NOTES (0.9%)
5,000,000	0.750%, 11/30/11		5,014,802
	Total U.S. Treasury Notes (Cost $5,014,802)		5,014,802
REPURCHASE AGREEMENT (13.2%)
75,900,000	Merrill Lynch & Co., Inc., 0.170%, dated 3/31/11, due 4/1/11, proceeds at maturity, $75,900,358 (Collateralized fully by Government Mortgage-Backed Securities)		75,900,000
	Total Repurchase Agreement (Cost $75,900,000)		75,900,000

	Amortized Cost
Total Investments — 100.9% (Cost $579,984,039)	$	579,984,039
Net Other Assets (Liabilities) — (0.9)%		(4,912,610	)
NET ASSETS — 100.0%	$	575,071,429

(a) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutionalinvestors.TheInvestmentAdvisor,usingboardapprovedprocedures, has deemed these securities or a portion of these securities to be liquid.

(b) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2011. The maturity date reflected is the next reset date.

(c) Discount note or zero coupon bond. Rate disclosed represents the annualized yield from date of purchase.

(d) Interest bearing commercial paper.

GMTN — Global Medium Term Note

N.A. — North America

YCD — Yankee Certificate of Deposit

See accompanying notes to the financial statements.

48

Sterling Capital U.S. Treasury Money Market Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Principal Amount		Amortized Cost
U.S. TREASURY NOTES (12.5%)
$20,000,000	0.875%, 4/30/11	$	20,010,672
20,000,000	1.000%, 8/31/11		20,069,861
	Total U.S. Treasury Notes (Cost $40,080,533)		40,080,533
U.S. TREASURY BILLS(a) (34.2%)
20,000,000	0.134%, 4/14/11		19,999,029
20,000,000	0.107%, 5/19/11		19,997,147
20,000,000	0.132%, 6/16/11		19,994,427
30,000,000	0.122%, 7/7/11		29,990,138
20,000,000	0.095%, 7/28/11		19,993,772
	Total U.S. Treasury Bills (Cost $109,974,513)		109,974,513

Principal Amount		Amortized Cost
REPURCHASE AGREEMENTS (53.3%)
$55,000,000	Bank of America Corp., 0.070%, dated 3/31/11, due 4/1/11, proceeds at maturity, $55,000,107 (Collateralized fully by U.S. Treasury Securities)	$	55,000,000
62,000,000	Goldman Sachs Group, Inc., 0.030%, dated 3/31/11, due 4/1/11, proceeds at maturity, $62,000,052 (Collateralized fully by U.S. Treasury Securities)		62,000,000
54,421,050	JPMorgan Chase & Co., 0.030%, dated 3/31/11, due 4/1/11, proceeds at maturity, $54,421,096 (Collateralized fully by U.S. Treasury Securities)		54,421,050
	Total Repurchase Agreements (Cost $171,421,050)		171,421,050
Total Investments — 100.0% (Cost $321,476,096)			321,476,096
Net Other Assets (Liabilities) — 0.0%			66,337
NET ASSETS — 100.0%		$	321,542,433

(a) Rate disclosed represents the annualized yield from date of purchase.

See accompanying notes to the financial statements.

49

Sterling Capital Strategic Allocation Conservative Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares		Fair Value
AFFILIATED INVESTMENT COMPANIES (77.7%)
30,711	Sterling Capital Equity Income Fund, Institutional Class	$	445,008
107,266	Sterling Capital International Fund, Institutional Class(a)		599,618
50,766	Sterling Capital Mid Value Fund, Institutional Class		749,307
100,955	Sterling Capital Select Equity Fund, Institutional Class		1,230,639
13,649	Sterling Capital Small Value Fund, Institutional Class		193,956
15,755	Sterling Capital Special Opportunities Fund, Institutional Class(a)		293,835
754,476	Sterling Capital Total Return Bond Fund, Institutional Class		8,186,062
268,273	Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		268,273
	Total Affiliated Investment Companies (Cost $10,391,395)		11,966,698
NON-AFFILIATED INVESTMENT COMPANIES (7.2%)
31,588	Credit Suisse Commodity Return Strategy Fund		311,455
15,229	Harding, Loevner International Equity Portfolio		236,655
15,735	Lazard Emerging Markets Equity Portfolio		340,034
6,327	Oppenheimer Developing Markets Fund		226,710
	Total Non-Affiliated Investment Companies (Cost $971,093)		1,114,854
EXCHANGE TRADED FUNDS (14.9%)
5,329	iShares Dow Jones US Real Estate Index Fund		316,543
5,279	iShares MSCI EAFE Small Cap Index Fund		228,792
6,377	iShares MSCI EAFE Value Index Fund		338,045
2,753	iShares MSCI Emerging Markets Index Fund		134,043
2,337	iShares Russell 2000 Index Fund		196,705
8,249	iShares Russell Midcap Growth Index Fund		502,447
4,332	iShares S&P 500 Index Fund		576,199
	Total Exchange Traded Funds (Cost $1,621,336)		2,292,774
Total Investments — 99.8% (Cost $12,983,824)			15,374,326
Net Other Assets (Liabilities) — 0.2%			24,453
NET ASSETS — 100.0%		$	15,398,779

(a) Represents non-income producing security.

See accompanying notes to the financial statements.

50

Sterling Capital Strategic Allocation Balanced Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares		Fair Value
AFFILIATED INVESTMENT COMPANIES (64.9%)
125,723	Sterling Capital Equity Income Fund, Institutional Class	$	1,821,722
439,285	Sterling Capital International Fund, Institutional Class(a)		2,455,603
208,122	Sterling Capital Mid Value Fund, Institutional Class		3,071,884
413,676	Sterling Capital Select Equity Fund, Institutional Class		5,042,716
55,951	Sterling Capital Small Value Fund, Institutional Class		795,069
64,599	Sterling Capital Special Opportunities Fund, Institutional Class(a)		1,204,778
942,581	Sterling Capital Total Return Bond Fund, Institutional Class		10,227,002
666,819	Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		666,819
	Total Affiliated Investment Companies (Cost $21,424,249)		25,285,593
NON-AFFILIATED INVESTMENT COMPANIES (9.3%)
120,924	Credit Suisse Commodity Return Strategy Fund		1,192,313
62,461	Harding, Loevner International Equity Portfolio		970,637
40,310	Lazard Emerging Markets Equity Portfolio		871,097
16,208	Oppenheimer Developing Markets Fund		580,745
	Total Non-Affiliated Investment Companies (Cost $3,124,138)		3,614,792
EXCHANGE TRADED FUNDS (25.9%)
20,221	iShares Dow Jones US Real Estate Index Fund		1,201,127
19,642	iShares MSCI EAFE Small Cap Index Fund		851,284
26,689	iShares MSCI EAFE Value Index Fund		1,414,784
29,961	iShares MSCI Emerging Markets Index Fund		1,458,801
9,573	iShares Russell 2000 Index Fund		805,760
33,798	iShares Russell Midcap Growth Index Fund		2,058,636
17,294	iShares S&P 500 Index Fund		2,300,275
	Total Exchange Traded Funds (Cost $7,783,989)		10,090,667
Total Investments — 100.1% (Cost $32,332,376)			38,991,052
Net Other Assets (Liabilities) — (0.1)%			(27,439	)
NET ASSETS — 100.0%		$	38,963,613

(a) Represents non-income producing security.

See accompanying notes to the financial statements.

51

Sterling Capital Strategic Allocation Growth Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares		Fair Value
AFFILIATED INVESTMENT COMPANIES (57.0%)
114,367	Sterling Capital Equity Income Fund, Institutional Class	$	1,657,176
399,526	Sterling Capital International Fund, Institutional Class(a)		2,233,352
189,325	Sterling Capital Mid Value Fund, Institutional Class		2,794,442
376,328	Sterling Capital Select Equity Fund, Institutional Class		4,587,442
50,860	Sterling Capital Small Value Fund, Institutional Class		722,726
58,790	Sterling Capital Special Opportunities Fund, Institutional Class(a)		1,096,437
262,843	Sterling Capital Total Return Bond Fund, Institutional Class		2,851,843
642,255	Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		642,255
	Total Affiliated Investment Companies (Cost $13,591,891)		16,585,673
NON-AFFILIATED INVESTMENT COMPANIES (9.5%)
111,825	Credit Suisse Commodity Return Strategy Fund		1,102,591
56,729	Harding, Loevner International Equity Portfolio		881,566
22,005	Lazard Emerging Markets Equity Portfolio		475,534
8,841	Oppenheimer Developing Markets Fund		316,765
	Total Non-Affiliated Investment Companies (Cost $2,386,933)		2,776,456
EXCHANGE TRADED FUNDS (33.5%)
18,167	iShares Dow Jones US Real Estate Index Fund		1,079,120
17,876	iShares MSCI EAFE Small Cap Index Fund		774,746
25,336	iShares MSCI EAFE Value Index Fund		1,343,062
37,226	iShares MSCI Emerging Markets Index Fund		1,812,534
9,141	iShares Russell 2000 Index Fund		769,398
30,763	iShares Russell Midcap Growth Index Fund		1,873,774
15,733	iShares S&P 500 Index Fund		2,092,646
	Total Exchange Traded Funds (Cost $7,612,369)		9,745,280
Total Investments — 100.0% (Cost $23,591,193)			29,107,409
Net Other Assets (Liabilities) — 0.0%			(749	)
NET ASSETS — 100.0%		$	29,106,660

(a) Represents non-income producing security.

See accompanying notes to the financial statements.

52

Sterling Capital Strategic Allocation Equity Fund

   Schedule of Portfolio Investments

   March 31, 2011 (Unaudited)

Shares		Fair Value
AFFILIATED INVESTMENT COMPANIES (51.9%)
42,684	Sterling Capital Equity Income Fund, Institutional Class	$	618,498
149,039	Sterling Capital International Fund, Institutional Class(a)		833,128
70,601	Sterling Capital Mid Value Fund, Institutional Class		1,042,078
140,335	Sterling Capital Select Equity Fund, Institutional Class		1,710,686
18,972	Sterling Capital Small Value Fund, Institutional Class		269,597
21,924	Sterling Capital Special Opportunities Fund, Institutional Class(a)		408,887
234,947	Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		234,947
	Total Affiliated Investment Companies (Cost $4,124,089)		5,117,821
NON-AFFILIATED INVESTMENT COMPANIES (9.4%)
45,251	Credit Suisse Commodity Return Strategy Fund		446,170
21,186	Harding, Loevner International Equity Portfolio		329,237
4,387	Lazard Emerging Markets Equity Portfolio		94,806
1,762	Oppenheimer Developing Markets Fund		63,148
	Total Non-Affiliated Investment Companies (Cost $797,789)		933,361
EXCHANGE TRADED FUNDS (38.7%)
7,484	iShares Dow Jones US Real Estate Index Fund		444,550
6,997	iShares MSCI EAFE Small Cap Index Fund		303,250
8,952	iShares MSCI EAFE Value Index Fund		474,545
17,079	iShares MSCI Emerging Markets Index Fund		831,576
3,400	iShares Russell 2000 Index Fund		286,178
11,471	iShares Russell Midcap Growth Index Fund		698,699
5,869	iShares S&P 500 Index Fund		780,636
	Total Exchange Traded Funds (Cost $2,988,369)		3,819,434
Total Investments — 100.0% (Cost $7,910,247)			9,870,616
Net Other Assets (Liabilities) — 0.0%			(2,473	)
NET ASSETS — 100.0%		$	9,868,143

(a) Represents non-income producing security.

See accompanying notes to the financial statements.

53

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Sterling Capital Funds

   Statements of Assets and Liabilities

   March 31, 2011 (Unaudited)

	Sterling Capital Select Equity Fund			Sterling  Capital Mid Value Fund
Assets:
Investments, at cost*	$	200,438,214		$	305,834,080
Unrealized appreciation		39,344,051			98,675,567
Investments, at fair value		239,782,265			404,509,647
Foreign currency, at value**		—			—
Interest and dividends receivable		342,181			628,381
Receivable for investments sold		—			—
Receivable for capital shares issued		779,013			1,509,865
Prepaid expenses		24,588			37,135
Total Assets		240,928,047			406,685,028
Liabilities:
Call options written (premiums received $ — , $ — , $ — , $ — , $892,994, $427,309 and $ — , respectively)		—			—
Distributions payable		—			—
Unrealized depreciation on forward foreign currency exchange contracts		—			—
Payable for investments purchased		—			1,113,668
Payable for capital shares redeemed		98,040			254,099
Payable for collateral received on loaned securities		1,483,117			3,185,857
Payable to securities lending agent		—			—
Accrued expenses and other payables:
Investment advisory fees		120,697			231,107
Administration fees		20,551			33,720
Compliance service fees		221			325
Distribution (12b-1) fees		9,630			8,651
Trustee fees		—			—
Other		25,739			42,591
Total Liabilities		1,757,995			4,870,018
Net Assets	$	239,170,052		$	401,815,010
Net Assets Consist of:
Capital	$	321,585,804		$	361,616,393
Accumulated undistributed (distributions in excess of) net investment income (loss)		26,946			621,076
Accumulated realized gain (loss)		(121,786,749	)		(59,098,026	)
Net unrealized appreciation/depreciation		39,344,051			98,675,567
Net Assets	$	239,170,052		$	401,815,010
Net Assets
Class A Shares	$	32,108,891		$	23,325,664
Class B Shares		2,987,175			3,997,769
Class C Shares		284,460			572,117
Institutional Shares		203,789,526			373,919,327
Class R Shares		—			133
Total	$	239,170,052		$	401,815,010
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares		2,646,562			1,588,918
Class B Shares		250,682			286,237
Class C Shares		24,016			41,037
Institutional Shares		16,713,286			25,326,870
Class R Shares		—			9
Total		19,634,546			27,243,071
Net Asset Value
Class A Shares - redemption price per share	$	12.13		$	14.68
Class B Shares - offering price per share***	$	11.92		$	13.97
Class C Shares - offering price per share***	$	11.84		$	13.94
Institutional Shares	$	12.19		$	14.76
Class R Shares	$	—		$	14.72	****
Maximum Sales Charge - Class A Shares		5.75	%		5.75	%
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearestcent per share - Class A Shares	$	12.87		$	15.58

* The Sterling Capital Select Equity Fund, Sterling Capital Mid Value Fund, Sterling Capital Small Value Fund, Sterling Capital International Fund, Sterling Capital Special Opportunities Fund, and Sterling Capital Equity Income Fund include securities on loan of $1,445,873, $3,135,335, $, $1,023,082, $4,294,051, $9,819,456 and $29,316,100, respectively.

** The Sterling Capital International Fund includes foreign currency at cost of $478,276.

*** Redemption price per share varies by length of time shares are held.

**** The Sterling Capital Mid Value Fund, Sterling Capital Small Value Fund, Sterling Capital Special Opportunities Fund, and Sterling Capital Equity Income Fund net asset value for Class R Shares is calculated using unrounded net assets of $133.08, $134.69, $4,410.80, and $123.41 divided by the unrounded shares of 9.04, 9.52, 236.79, and 8.56, respectively.

See accompanying notes to the financial statements.

55

Sterling Capital Small Value Fund			Sterling Capital International Fund			Sterling Capital Special Opportunities Fund			Sterling  Capital Equity Income Fund			Sterling  Capital Short-Term Bond Fund
$	75,792,891		$	76,103,506		$	562,599,481		$	616,717,767		$	63,973,917
	15,858,864			15,213,921			122,225,825			110,698,168			258,297
	91,651,755			91,317,427			684,825,306			727,415,935			64,232,214
	—			475,683			—			—			—
	76,215			262,569			769,614			1,851,201			576,094
	273,519			869,843			876,663			100,491			—
	630,401			446,093			2,234,817			4,137,737			461,377
	23,466			8,880			46,893			44,597			3,432
	92,655,356			93,380,495			688,753,293			733,549,961			65,273,117
	—			—			1,777,670			253,000			—
	—			—			—			1,944			125,368
	—			55,544			—			—			—
	953,443			1,978,229			68,840			1,521,125			1,672,730
	3,647			36,320			818,587			742,361			20,156
	1,043,460			4,824,807			10,170,667			29,950,952			—
	—			—			—			—			102,608
	59,170			91,921			447,450			406,235			15,357
	7,538			7,274			57,103			59,258			5,230
	68			79			558			413			77
	2,554			1,602			142,973			134,951			1,692
	—			—			—			—			6
	9,918			95,179			67,136			41,996			8,868
	2,079,798			7,090,955			13,550,984			33,112,235			1,952,092
$	90,575,558		$	86,289,540		$	675,202,309		$	700,437,726		$	63,321,025
$	82,470,444		$	129,994,693		$	535,840,731		$	621,451,094		$	71,124,285
	(90,561	)		(63,329	)		(1,029,327	)		1,098,344			(402,365	)
	(7,663,189	)		(58,812,268	)		19,049,756			(32,984,189	)		(7,659,192	)
	15,858,864			15,170,444			121,341,149			110,872,477			258,297
$	90,575,558		$	86,289,540		$	675,202,309		$	700,437,726		$	63,321,025
$	7,910,277		$	4,019,982		$	240,280,640		$	209,906,595		$	8,041,336
	984,123			776,922			24,261,073			14,508,413			—
	90,353			144,962			87,019,191			95,965,669			—
	81,590,670			81,347,674			323,636,994			380,056,925			55,279,689
	135			—			4,411			124			—
$	90,575,558		$	86,289,540		$	675,202,309		$	700,437,726		$	63,321,025
	557,632			745,766			13,160,484			14,507,646			844,282
	69,764			163,626			1,419,676			1,005,974			—
	6,404			30,620			5,089,139			6,671,973			—
	5,743,026			14,556,149			17,352,819			26,220,423			5,803,479
	10			—			237			9			—
	6,376,836			15,496,161			37,022,355			48,406,025			6,647,761
$	14.19		$	5.39		$	18.26		$	14.47		$	9.52
$	14.11		$	4.75		$	17.09		$	14.42		$	—
$	14.11		$	4.73		$	17.10		$	14.38		$	—
$	14.21		$	5.59		$	18.65		$	14.49		$	9.53
$	14.15	****	$	—		$	18.63	****	$	14.42	****	$	—
	5.75	%		5.75	%		5.75	%		5.75	%		2.50	%
$	15.06		$	5.72		$	19.37		$	15.35		$	9.76

56

Sterling Capital Funds

   Statements of Assets and Liabilities

   March31, 2011 (Unaudited)

	Sterling Capital Intermediate U.S. Government Fund			Sterling Capital Total Return Bond Fund
Assets:
Investments, at cost	$	180,713,435		$	418,697,935
Unrealized appreciation		4,032,460			11,389,005
Investments, at fair value		184,745,895			430,086,940
Interest and dividends receivable		1,179,607			3,742,521
Receivable for investments sold		—			14,948,650
Receivable for capital shares issued		402,813			1,646,589
Prepaid expenses		10,173			18,878
Total Assets		186,338,488			450,443,578
Liabilities:
Distributions payable		322,943			805,696
Payable for investments purchased		—			26,542,463
Payable for capital shares redeemed		330,709			566,229
Payable to securities lending agent		108,843			596,576
Accrued expenses and other payables:
Investment advisory fees		75,752			170,963
Administration fees		16,131			36,373
Compliance service fees		234			464
Distribution (12b-1) fees		4,945			13,022
Other		25,718			53,628
Total Liabilities		885,275			28,785,414
Net Assets	$	185,453,213		$	421,658,164
Net Assets Consist of:
Capital	$	194,161,414		$	408,578,236
Accumulated undistributed (distributions in excess of) net investment income		1,216,467			(843,175	)
Accumulated realized gain (loss)		(13,957,128	)		2,534,098
Net unrealized appreciation/depreciation		4,032,460			11,389,005
Net Assets	$	185,453,213		$	421,658,164
Net Assets
Class A Shares	$	12,844,442		$	33,217,554
Class B Shares		1,961,499			4,207,360
Class C Shares		586,678			2,733,300
Institutional Shares		170,060,594			381,494,625
Class R Shares		—			5,325
Total	$	185,453,213		$	421,658,164
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares		1,229,136			3,062,079
Class B Shares		188,349			387,468
Class C Shares		56,217			251,588
Institutional Shares		16,253,450			35,146,370
Class R Shares		—			492
Total		17,727,152			38,847,997
Net Asset Value
Class A Shares - redemption price per share	$	10.45		$	10.85
Class B Shares - offering price per share*	$	10.41		$	10.86
Class C Shares - offering price per share*	$	10.44		$	10.86
Institutional Shares	$	10.46		$	10.85
Class R Shares	$	—		$	10.82
Maximum Sales Charge - Class A Shares		5.75	%		5.75	%
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares	$	11.09		$	11.51

* Redemption price per share varies by length of time shares are held.

See accompanying notes to the financial statements.

57

Sterling  Capital Kentucky Intermediate Tax-Free Fund			Sterling Capital Maryland Intermediate Tax-Free Fund				Sterling Capital North Carolina Intermediate Tax-Free Fund				Sterling Capital South Carolina Intermediate Tax-Free Fund				Sterling Capital Virginia Intermediate Tax-Free Fund				Sterling Capital West Virginia Intermediate Tax-Free Fund
$	22,035,813			$	33,736,431			$	194,913,279			$	49,168,092			$	107,111,564			$	97,769,226
	521,656				952,048				4,658,238				554,159				3,875,635				1,516,068
	22,557,469				34,688,479				199,571,517				49,722,251				110,987,199				99,285,294
	286,121				370,478				2,837,050				627,316				1,235,533				1,519,361
	—				—				—				287,593				426,928				—
	70,903				384,746				580,409				110,435				498,209				607,554
	1,596				2,995				5,710				3,166				5,532				8,458
	22,916,089				35,446,698				202,994,686				50,750,761				113,153,401				101,420,667
	45,053				55,213				379,204				73,986				202,034				232,592
	—				332,498				—				654,070				1,062,940				—
	14,663				150,579				469,758				5,057				95,351				229,272
	—				—				—				—				—				—
	7,796				11,863				77,062				18,948				42,475				38,446
	2,000				3,026				17,494				4,282				9,620				8,723
	25				42				206				46				119				106
	1,804				2,060				10,463				3,226				7,636				6,342
	1,490				3,926				23,526				3,315				12,148				11,353
	72,831				559,207				977,713				762,930				1,432,323				526,834
$	22,843,258			$	34,887,491			$	202,016,973			$	49,987,831			$	111,721,078			$	100,893,833
$	22,334,719			$	33,961,907			$	196,957,428			$	49,398,847			$	107,785,548			$	99,366,604
	3,371				1,727				73,589				5,105				42,503				(28,135	)
	(16,488)				(28,191	)			327,718				29,720				17,392				39,296
	521,656				952,048				4,658,238				554,159				3,875,635				1,516,068
$	22,843,258			$	34,887,491			$	202,016,973			$	49,987,831			$	111,721,078			$	100,893,833
$	8,465,462			$	9,639,838			$	49,219,091			$	15,183,717			$	35,928,249			$	29,879,676
	—				—				—				—				—				—
	—				—				—				—				—				—
	14,377,796				25,247,653				152,797,882				34,804,114				75,792,829				71,014,157
	—				—				—				—				—				—
$	22,843,258			$	34,887,491			$	202,016,973			$	49,987,831			$	111,721,078			$	100,893,833
	816,202				893,348				4,650,976				1,443,400				3,077,089				3,049,650
	—				—				—				—				—				—
	—				—				—				—				—				—
	1,388,033				2,336,317				14,440,400				3,330,589				6,492,960				7,240,646
	—				—				—				—				—				—
	2,204,235				3,229,665				19,091,376				4,773,989				9,570,049				10,290,296
$	10.37			$	10.79			$	10.58			$	10.52			$	11.68			$	9.80
$	—			$	—			$	—			$	—			$	—			$	—
$	—			$	—			$	—			$	—			$	—			$	—
$	10.36			$	10.81			$	10.58			$	10.45			$	11.67			$	9.81
$	—			$	—			$	—			$	—			$	—			$	—
	3.00	%			3.00	%			3.00	%			3.00	%			3.00	%			3.00	%
$	10.69			$	11.12			$	10.91			$	10.85			$	12.04			$	10.10

58

Sterling Capital Funds

   Statements of Assets and Liabilities

   March 31, 2011 (Unaudited)

	Sterling  Capital National Tax-Free Money Market Fund		Sterling  Capital Prime Money Market Fund
Assets:
Investments:
Investments-unaffiliated, at cost	$	134,100,048	$	504,084,039
Investments-affiliated, at cost		—		—
Total investments, at cost		134,100,048		504,084,039
Unrealized appreciation		—		—
Investments, at value		134,100,048		504,084,039
Repurchase agreements, at cost		—		75,900,000
Cash		—		523
Interest and dividends receivable		242,407		285,057
Receivable for capital shares issued		—		4,944
Receivable from Investment Advisor		—		—
Prepaid expenses & other expenses		6,151		23,326
Total Assets		134,348,606		580,297,889
Liabilities:
Distributions payable		1,162		2,758
Payable for investments purchased		—		5,000,000
Payable for capital shares redeemed		—		63,221
Accrued expenses and other payables:
Investment advisory fees		21,630		27,090
Administration fees		12,113		51,985
Audit fees		3,980		6,807
Compliance service fees		203		603
Distribution (12b-1) fees		—		—
Trustee fees		30		—
Printing fees		2,234		5,545
Transfer agent fees		14,030		50,237
Other		3,996		18,214
Total Liabilities		59,378		5,226,460
Net Assets	$	134,289,228	$	575,071,429
Net Assets Consist of:
Capital	$	134,287,939	$	575,089,033
Accumulated undistributed (distributions in excess of) net investment income		1,123		2,203
Accumulated realized gain (loss)		166		(19,807	)
Net unrealized appreciation/depreciation		—		—
Net Assets	$	134,289,228	$	575,071,429
Net Assets
Class A Shares	$	72,482	$	152,679,233
Class B Shares		—		1,130,856
Class C Shares		—		593,540
Institutional Shares		134,216,746		420,667,800
Total	$	134,289,228	$	575,071,429
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares		72,468		152,683,351
Class B Shares		—		1,131,653
Class C Shares		—		593,553
Institutional Shares		134,218,500		420,696,253
Total		134,290,968		575,104,810
Net Asset Value
Class A Shares - redemption price per share	$	1.00	$	1.00
Class B Shares - offering price per share*	$	—	$	1.00
Class C Shares - offering price per share*	$	—	$	1.00
Institutional Shares	$	1.00	$	1.00
Maximum Sales Charge - Class A Shares		N/A		N/A
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares	$	1.00	$	1.00

* Redemption price per share varies by length of time shares are held.

See accompanying notes to the financial statements.

59

Sterling Capital U.S. Treasury Money Market Fund		Sterling Capital Strategic  Allocation Conservative Fund			Sterling Capital Strategic  Allocation Balanced Fund			Sterling Capital Strategic  Allocation Growth Fund			Sterling Capital Strategic Allocation Equity Fund
$	150,055,046	$	2,592,429		$	10,908,127		$	9,999,302		$	3,786,158
	—		10,391,395			21,424,249			13,591,891			4,124,089
	150,055,046		12,983,824			32,332,376			23,591,193			7,910,247
	—		2,390,502			6,658,676			5,516,216			1,960,369
	150,055,046		15,374,326			38,991,052			29,107,409			9,870,616
	171,421,050		—			—			—			—
	—		—			—			—			—
	93,695		29,075			38,281			10,645			2
	1,926		914			20,253			294			171
	37,532		—			—			—			—
	16,800		6,469			7,399			8,137			7,332
	321,626,049		15,410,784			39,056,985			29,126,485			9,878,121
	1,288		1,439			1,682			80			—
	—		—			—			—			—
	13,960		1,981			65,804			113			—
	—		3,217			8,208			6,092			4,728
	27,755		—			—			—			—
	3,077		386			1,221			944			290
	408		15			38			28			9
	—		3,936			14,069			10,961			4,512
	—		—			—			—			—
	5,522		—			—			—			—
	31,606		1,031			2,350			1,607			439
	—		—			—			—			—
	83,616		12,005			93,372			19,825			9,978
$	321,542,433	$	15,398,779		$	38,963,613		$	29,106,660		$	9,868,143
$	321,540,381	$	22,530,278		$	48,077,521		$	40,115,135		$	19,256,098
	2,052		(104,163	)		(132,022	)		(40,026	)		(10,087	)
	—		(9,417,838	)		(15,640,562	)		(16,484,665	)		(11,338,237	)
	—		2,390,502			6,658,676			5,516,216			1,960,369
$	321,542,433	$	15,398,779		$	38,963,613		$	29,106,660		$	9,868,143
$	132,163,484	$	8,604,674		$	28,945,851		$	19,586,285		$	5,926,928
	637,208		2,352,366			9,039,640			7,957,171			3,849,625
	78,695		159,221			296,890			211,111			25,487
	188,663,046		4,282,518			681,232			1,352,093			66,103
$	321,542,433	$	15,398,779		$	38,963,613		$	29,106,660		$	9,868,143
	132,163,324		910,693			3,153,734			2,268,195			708,573
	637,275		248,715			1,006,075			943,726			482,532
	78,694		16,916			32,900			25,089			3,205
	188,662,401		448,866			73,809			156,269			7,815
	321,541,694		1,625,190			4,266,518			3,393,279			1,202,125
$	1.00	$	9.45		$	9.18		$	8.64		$	8.36
$	1.00	$	9.46		$	8.99		$	8.43		$	7.98
$	1.00	$	9.41		$	9.02		$	8.41		$	7.95
$	1.00	$	9.54		$	9.23		$	8.65		$	8.46
	N/A		5.75	%		5.75	%		5.75	%		5.75	%
$	1.00	$	10.03		$	9.74		$	9.17		$	8.87

60

Sterling Capital Funds

   Statements of Operations

   For the Six Months Ended March 31, 2011 (Unaudited)

	Sterling  Capital Select Equity Fund			Sterling Capital Mid Value Fund
Investment Income:
Interest income	$	—		$	—
Dividend income		2,388,707			2,759,572
Foreign tax withholding		(30,727	)		(6,309	)
Income from securities lending		7,456			7,022
Total investment income		2,365,436			2,760,285
Expenses:
Investment advisory fees (See Note 5)		851,811			1,376,115
Administration fees (See Note 5)		118,988			192,224
Distribution fees - Class A Shares		77,228			26,096
Distribution fees - Class B Shares		15,597			19,640
Distribution fees - Class C Shares		825			2,465
Distribution fees - Class R Shares		—			—
Compliance service fees (See Note 5)		1,402			2,239
Trustee fees		7,893			12,550
Audit fees		12,369			18,030
Custodian fees		5,905			10,192
Fund accounting fees (See Note 5)		11,511			18,596
Interest expense (See Note 7)		—			1,067
Legal fees		16,492			27,328
Printing fees		11,749			18,480
Transfer agent fees (See Note 5)		50,133			83,397
Other		31,315			44,716
Total expenses before waivers		1,213,218			1,853,135
Less expenses waived by the Investment Advisor (See Note 5)		(163,729	)		(77,079	)
Less expenses waived by the Distributor (See Note 5)		(38,614	)		—
Net expenses		1,010,875			1,776,056
Net investment income (loss)		1,354,561			984,229
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments		10,241,423			5,017,605
Written options		—			—
Foreign currency transactions		—			—
Change in unrealized appreciation/depreciation on:
Investments		22,345,955			67,279,208
Written options		—			—
Foreign currency transactions		—			—
Total realized and unrealized gain (loss)		32,587,378			72,296,813
Change in net assets from operations	$	33,941,939		$	73,281,042

See accompanying notes to the financial statements.

61

Sterling Capital Small Value Fund		Sterling Capital International Fund			Sterling  Capital Special Opportunities Fund			Sterling  Capital Equity Income Fund			Sterling Capital Short-Term Bond Fund
$	—	$	406		$	—		$	—		$	728,281
	335,253		586,864			2,930,803			8,333,647			68
	(625)		(25,445	)		(7,614	)		(170,227	)		—
	5,486		5,311			36,533			36,019			7
	340,114		567,136			2,959,722			8,199,439			728,356
	344,192		419,999			2,480,099			2,027,243			175,693
	39,527		43,408			320,374			299,053			32,595
	16,656		9,746			559,811			443,761			19,596
	5,003		4,071			118,713			71,850			—
	380		761			408,264			412,454			—
	—		—			10			—			—
	450		515			3,720			3,303			403
	2,493		2,928			20,673			17,682			2,376
	3,448		4,535			31,841			28,767			3,332
	3,027		161,386			17,780			18,400			1,703
	3,824		4,200			31,001			28,961			3,150
	—		—			—			—			—
	5,554		5,834			43,540			38,928			10,525
	4,526		4,627			31,743			28,157			4,192
	22,480		18,364			157,820			117,727			15,203
	27,849		55,190			57,588			49,214			11,626
	479,409		735,564			4,282,977			3,585,500			280,394
	(39,932)		(63,986	)		(3,650	)		(3,617	)		(48,438	)
	(8,328)		(4,873	)		(279,906	)		(221,881	)		(9,798	)
	431,149		666,705			3,999,421			3,360,002			222,158
	(91,035)		(99,569	)		(1,039,699	)		4,839,437			506,198
	5,856,438		2,844,400			21,183,002			5,027,676			477,035
	—		—			2,215,178			288,436			—
	—		(259,072	)		—			—			—
	11,735,432		3,553,141			64,028,814			51,532,426			(1,166,480	)
	—		—			(406,756	)		87,088			—
	—		89,380			—			—			—
	17,591,870		6,227,849			87,020,238			56,935,626			(689,445	)
$	17,500,835	$	6,128,280		$	85,980,539		$	61,775,063		$	(183,247	)

62

Sterling Capital Funds

   Statements of Operations

   For the Six Months Ended March 31, 2011 (Unaudited)

	Sterling  Capital Intermediate U.S. Government Fund			Sterling Capital Total Return Bond Fund
Investment Income:
Interest income	$	3,172,987		$	9,410,635
Dividend income		403			86,224
Income from securities lending		2,648			384
Total investment income		3,176,038			9,497,243
Expenses:
Investment advisory fees (See Note 5)		561,493			1,256,299
Administration fees (See Note 5)		96,731			216,500
Distribution fees - Class A Shares		33,715			79,741
Distribution fees - Class B Shares		11,550			22,506
Distribution fees - Class C Shares		2,929			11,852
Distribution fees - Class R Shares		—			22
Compliance service fees (See Note 5)		1,183			2,612
Trustee fees		6,824			15,026
Audit fees		9,900			22,708
Custodian fees		4,829			10,669
Fund accounting fees (See Note 5)		9,358			20,938
Interest expense (See Note 7)		—			—
Legal fees		13,503			30,423
Printing fees		9,569			20,840
Transfer agent fees (See Note 5)		45,663			92,097
Other		18,935			38,621
Total expenses before waivers		826,182			1,840,854
Less expenses waived by the Investment Advisor (See Note 5)		(113,243	)		(252,550	)
Less expenses waived by the Distributor (See Note 5)		(16,857	)		(39,870	)
Net expenses		696,082			1,548,434
Net investment income		2,479,956			7,948,809
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from: Investments		(340,690	)		3,792,485
Change in unrealized appreciation/depreciation on: Investments		(5,331,976	)		(12,384,392	)
Total realized and unrealized gain (loss)		(5,672,666	)		(8,591,907	)
Change in net assets from operations	$	(3,192,710	)	$	(643,098	)

See accompanying notes to the financial statements.

63

Sterling Capital Kentucky Intermediate Tax-Free Fund				Sterling Capital Maryland Intermediate Tax-Free Fund				Sterling Capital North Carolina Intermediate Tax-Free Fund			Sterling Capital South Carolina Intermediate Tax-Free Fund			Sterling Capital Virginia Intermediate Tax-Free Fund			Sterling Capital West Virginia Intermediate Tax-Free Fund
	$	432,902			$	641,140		$	3,558,780		$	818,047		$	2,001,311		$	2,099,120
		409				1,021			259			1,181			203			1,706
		—				—			—			—			—			—
		433,311				642,161			3,559,039			819,228			2,001,514			2,100,826
		64,469				102,714			542,209			132,265			305,977			225,367
		12,081				19,123			101,787			24,831			57,362			51,793
		20,995				27,088			121,586			37,784			90,365			37,218
		—				—			—			—			—			—
		—				—			—			—			—			—
		—				—			—			—			—			—
		146				235			1,216			293			692			622
		842				1,369			6,986			1,657			4,008			3,591
		1,244				1,936			10,366			2,468			5,923			5,329
		646				1,000			4,917			1,226			2,816			2,543
		1,167				1,852			9,844			2,403			5,545			5,008
		—				7			—			—			—			—
		1,645				2,625			13,714			3,294			7,787			7,008
		1,603				2,285			9,868			2,756			5,801			5,273
		5,170				8,459			43,180			9,796			24,288			21,759
		7,684				12,125			20,095			12,221			14,593			16,186
		117,692				180,818			885,768			230,994			525,157			381,697
		(17,854	)			(28,738	)		(99,597	)		(24,298	)		(56,689	)		(479	)
		(10,497	)			(13,544	)		(60,793	)		(18,892	)		(45,182	)		—
		89,341				138,536			725,378			187,804			423,286			381,218
		343,970				503,625			2,833,661			631,424			1,578,228			1,719,608
		(19,725	)			(29,138	)		323,954			32,728			41,080			(15,345	)
		(888,090	)			(1,325,654	)		(7,079,662	)		(1,755,632	)		(4,064,267	)		(3,706,284	)
		(907,815	)			(1,354,792	)		(6,755,708	)		(1,722,904	)		(4,023,187	)		(3,721,629	)
	$	(563,845	)		$	(851,167	)	$	(3,922,047	)	$	(1,091,480	)	$	(2,444,959	)	$	(2,002,021	)

64

Sterling Capital Funds

   Statements of Operations

   For the Six Months Ended March 31, 2011 (Unaudited)

	Sterling  Capital National Tax-Free Money Market Fund			Sterling Capital Prime Money Market Fund
Investment Income:
Interest income	$	329,699		$	905,747
Dividend income - unaffiliated		126			—
Dividend income - affiliated		—			—
Income from securities lending		—			—
Total investment income		329,825			905,747
Expenses:
Investment advisory fees (See Note 5)		185,392			1,121,540
Administration fees (See Note 5)		76,675			289,713
Distribution fees - Class A Shares		201			411,940
Distribution fees - Class B Shares		—			6,683
Distribution fees - Class C Shares		—			2,414
Compliance service fees (See Note 5)		966			3,451
Trustee fees		5,777			20,388
Audit fees		8,583			34,739
Custodian fees		3,828			13,521
Fund accounting fees (See Note 5)		7,416			28,038
Legal fees		10,698			38,681
Printing fees		9,944			29,616
State registration fees		1,954			9,046
Transfer agent fees (See Note 5)		38,452			144,601
Other		11,110			44,321
Total expenses before waivers		360,996			2,198,692
Less expenses waived/reimbursed by the Investment Advisor (See Note 5)		(47,408	)		(902,366	)
Less expenses waived by the Distributor (See Note 5)		(196	)		(421,037	)
Net expenses		313,392			875,289
Net investment income		16,433			30,458
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment transactions - unaffiliated		166			—
Investment transactions - affiliated		—			—
Distributions from affiliated funds		—			—
Change in unrealized appreciation/depreciation on:
Investments		—			—
Total realized and unrealized gain (loss)		166			—
Change in net assets from operations	$	16,599		$	30,458

See accompanying notes to the financial statements.

65

Sterling Capital U.S. Treasury Money Market Fund			Sterling Capital Strategic  Allocation Conservative Fund			Sterling Capital Strategic  Allocation Balanced Fund			Sterling Capital Strategic  Allocation Growth Fund			Sterling Capital Strategic Allocation Equity Fund
$	243,623		$	—		$	—		$	—		$	—
	—			51,080			203,883			193,212			71,788
	—			182,667			268,119			109,982			16,960
	5,885			—			—			—			—
	249,508			233,747			472,002			303,194			88,748
	668,679			18,328			47,341			35,948			11,905
	172,804			—			—			—			—
	344,700			19,295			67,622			46,843			14,043
	3,361			12,061			48,242			41,172			19,103
	429			694			1,118			924			105
	2,127			90			233			177			58
	12,399			520			1,324			1,009			325
	21,648			849			2,069			1,573			531
	8,772			362			924			703			230
	16,717			733			1,894			1,438			476
	23,639			1,016			2,625			1,994			654
	18,490			1,221			2,442			2,022			1,013
	7,165			3,847			4,525			4,584			5,048
	87,650			3,638			8,936			6,549			2,018
	40,363			2,914			3,923			3,520			2,666
	1,428,943			65,568			193,218			148,456			58,175
	(847,361	)		(12,871	)		(32,343	)		(24,923	)		(8,585	)
	(348,490	)		(9,647	)		(33,811	)		(23,421	)		(7,022	)
	233,092			43,050			127,064			100,112			42,568
	16,416			190,697			344,938			203,082			46,180
	—			84,607			285,871			264,543			50,318
	—			46,571			32,552			25,043			15,384
	—			147,406			190,999			61,639			2,238
	—			442,809			2,994,387			3,022,822			1,180,830
	—			721,393			3,503,809			3,374,047			1,248,770
$	16,416		$	912,090		$	3,848,747		$	3,577,129		$	1,294,950

66

Sterling Capital Funds

   Statements of Changes in Net Assets

	Sterling Capital Select Equity Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
From Investment Activities:
Operations:
Net investment income (loss)	$	1,354,561		$	2,515,781
Net realized gain (loss)		10,241,423			24,408,867
Change in unrealized appreciation/depreciation		22,345,955			(14,644,751	)
Change in net assets from operations		33,941,939			12,279,897
Distributions to Class A Shareholders:
Net investment income		(155,293	)		(304,109	)
Distributions to Class B Shareholders:
Net investment income		(3,760	)		(9,130	)
Distributions to Class C Shareholders:
Net investment income		(482	)		(385	)
Distributions to Institutional Class Shareholders:
Net investment income		(1,217,695	)		(2,340,083	)
Change in net assets from shareholder distributions		(1,377,230	)		(2,653,707	)
Capital Transactions:
Change in net assets from capital transactions		(9,264,715	)		(5,364,722	)
Change in net assets		23,299,994			4,261,468
Net Assets:
Beginning of period		215,870,058			211,608,590
End of period	$	239,170,052		$	215,870,058
Accumulated undistributed net investment income (loss)	$	26,946		$	49,615

See accompanying notes to the financial statements.

67

Sterling Capital Mid Value Fund						Sterling Capital Small Value Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	984,229		$	1,548,036		$	(91,035	)	$	289,641
	5,017,605			10,152,026			5,856,438			2,995,648
	67,279,208			22,306,272			11,735,432			1,117,930
	73,281,042			34,006,334			17,500,835			4,403,219
	(31,901	)		(41,826	)		—			(16,230	)
	—			(578	)		—			—
	—			(86	)		—			(29	)
	(758,008	)		(1,422,492	)		—			(309,695	)
	(789,909	)		(1,464,982	)		—			(325,954	)
	(13,248,347	)		95,353,552			6,623,868			36,583,697
	59,242,786			127,894,904			24,124,703			40,660,962
	342,572,224			214,677,320			66,450,855			25,789,893
$	401,815,010		$	342,572,224		$	90,575,558		$	66,450,855
$	621,076		$	426,756		$	(90,561	)	$	474

68

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital International Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
From Investment Activities:
Operations:
Net investment income (loss)	$	(99,569	)	$	586,579
Net realized gain (loss)		2,585,328			6,020,933
Change in unrealized appreciation/depreciation		3,642,521			(4,746,409	)
Change in net assets from operations		6,128,280			1,861,103
Distributions to Class A Shareholders:
Net investment income		—			(71,166	)
Net realized gains from investment transactions		—			—
Distributions to Class B Shareholders:
Net investment income		—			(13,417	)
Net realized gains from investment transactions		—			—
Distributions to Class C Shareholders:
Net investment income		—			(1,289	)
Net realized gains from investment transactions		—			—
Distributions to Institutional Class Shareholders:
Net investment income		—			(1,704,204	)
Net realized gains from investment transactions		—			—
Distributions to Class R Shareholders:
Net investment income		—			—
Net realized gains from investment transactions		—			—
Change in net assets from shareholder distributions		—			(1,790,076	)
Capital Transactions:
Change in net assets from capital transactions		(692,242	)		(5,244,613	)
Change in net assets		5,436,038			(5,173,586	)
Net Assets:
Beginning of period		80,853,502			86,027,088
End of period	$	86,289,540		$	80,853,502
Accumulated undistributed (distributions in excess of) net investment income (loss)	$	(63,329	)	$	36,240

See accompanying notes to the financial statements.

69

Sterling Capital Special Opportunities Fund						Sterling Capital Equity Income Fund						Sterling Capital Short-Term Bond Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	(1,039,699	)	$	(2,062,780	)	$	4,839,437		$	9,692,908		$	506,198		$	1,376,789
	23,398,180			30,972,685			5,316,112			(4,833,681	)		477,035			81,049
	63,622,058			13,174,524			51,619,514			53,749,905			(1,166,480	)		569,208
	85,980,539			42,084,429			61,775,063			58,609,132			(183,247	)		2,027,046
	—			—			(1,164,482	)		(2,432,974	)		(97,653	)		(159,210	)
	(1,245,000	)		—			—			—			—			—
	—			—			(32,265	)		(165,165	)		—			—
	(143,250	)		—			—			—			—			—
	—			—			(239,418	)		(715,612	)		—			—
	(482,193	)		—			—			—			—			—
	—			—			(2,422,514	)		(4,712,617	)		(749,602	)		(1,812,725	)
	(1,609,782	)		—			—			—			—			—
	—			—			(1	)		(2	)		—			—
	(23	)		—			—			—			—			—
	(3,480,248	)		—			(3,858,680	)		(8,026,370	)		(847,255	)		(1,971,935	)
	39,377,709			24,952,684			179,149,675			83,296,249			(3,484,656	)		3,749,020
	121,878,000			67,037,113			237,066,058			133,879,011			(4,515,158	)		3,804,131
	553,324,309			486,287,196			463,371,668			329,492,657			67,836,183			64,032,052
$	675,202,309		$	553,324,309		$	700,437,726		$	463,371,668		$	63,321,025		$	67,836,183
$	(1,029,327	)	$	10,372		$	1,098,344		$	117,587		$	(402,365	)	$	(61,308	)

70

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital Intermediate U.S. Government Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
From Investment Activities:
Operations:
Net investment income	$	2,479,956		$	6,080,730
Net realized gain (loss)		(340,690	)		358,846
Change in unrealized appreciation/depreciation		(5,331,976	)		4,980,048
Change in net assets from operations		(3,192,710	)		11,419,624
Distributions to Class A Shareholders:
Net investment income		(205,053	)		(374,693	)
Net realized gains from investment transactions		—			—
Distributions to Class B Shareholders:
Net investment income		(26,460	)		(68,197	)
Net realized gains from investment transactions		—			—
Distributions to Class C Shareholders:
Net investment income		(6,691	)		(9,864	)
Net realized gains from investment transactions		—			—
Distributions to Institutional Class Shareholders:
Net investment income		(2,806,525	)		(6,151,978	)
Net realized gains from investment transactions		—			—
Distributions to Class R Shareholders:
Net investment income		—			—
Net realized gains from investment transactions		—			—
Change in net assets from shareholder distributions		(3,044,729	)		(6,604,732	)
Capital Transactions:
Change in net assets from capital transactions		(1,866,157	)		(4,946,835	)
Change in net assets		(8,103,596	)		(131,943	)
Net Assets:
Beginning of period		193,556,809			193,688,752
End of period	$	185,453,213		$	193,556,809
Accumulated undistributed (distributions in excess of) net investment income	$	1,216,467		$	1,781,240

See accompanying notes to the financial statements.

71

Sterling Capital Total Return Bond Fund						Sterling Capital Kentucky Intermediate Tax-Free Fund						Sterling Capital Maryland Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	7,948,809		$	16,142,317		$	343,970		$	643,601		$	503,625		$	927,333
	3,792,485			11,061,276			(19,725	)		240,755			(29,138	)		134,739
	(12,384,392)			11,242,260			(888,090	)		315,084			(1,325,654	)		692,202
	(643,098)			38,445,853			(563,845	)		1,199,440			(851,167	)		1,754,274
	(669,437)			(996,048	)		(116,906	)		(214,321	)		(136,989	)		(247,523	)
	(634,430)			(13,422	)		(38,264	)		(73,964	)		(39,478	)		(1,441	)
	(77,580)			(188,149	)		—			—			—			—
	(87,766)			(3,855	)		—			—			—			—
	(41,150)			(40,862	)		—			—			—			—
	(45,094)			(356	)		—			—			—			—
	(8,449,029)			(17,065,752	)		(226,135	)		(427,340	)		(365,290	)		(676,872	)
	(7,357,525)			(255,197	)		(72,893	)		(134,098	)		(93,116	)		(3,717	)
	(183)			(442	)		—			—			—			—
	(102)			—			—			—			—			—
	(17,362,296)			(18,564,083	)		(454,198	)		(849,723	)		(634,873	)		(929,553	)
	17,386,136			41,144,313			197,479			3,501,264			(1,711,863	)		8,284,070
	(619,258)			61,026,083			(820,564	)		3,850,981			(3,197,903	)		9,108,791
	422,277,422			361,251,339			23,663,822			19,812,841			38,085,394			28,976,603
$	421,658,164		$	422,277,422		$	22,843,258		$	23,663,822		$	34,887,491		$	38,085,394
$	(843,175	)	$	445,395		$	3,371		$	2,442		$	1,727		$	381

72

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital North Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
From Investment Activities:
Operations:
Net investment income	$	2,833,661		$	5,266,844
Net realized gain (loss)		323,954			1,068,103
Change in unrealized appreciation/depreciation		(7,079,662	)		2,695,776
Change in net assets from operations		(3,922,047	)		9,030,723
Distributions to Class A Shareholders:
Net investment income		(652,844	)		(1,054,124	)
Net realized gains from investment transactions		(262,531	)		(198,488	)
Distributions to Institutional Class Shareholders:
Net investment income		(2,176,344	)		(4,204,568	)
Net realized gains from investment transactions		(794,016	)		(797,240	)
Change in net assets from shareholder distributions		(3,885,735	)		(6,254,420	)
Capital Transactions:
Change in net assets from capital transactions		15,417,205			31,752,598
Change in net assets		7,609,423			34,528,901
Net Assets:
Beginning of period		194,407,550			159,878,649
End of period	$	202,016,973		$	194,407,550
Accumulated undistributed (distributions in excess of) net investment income	$	73,589		$	69,116

See accompanying notes to the financial statements.

73

Sterling Capital South Carolina Intermediate Tax-Free Fund						Sterling Capital Virginia Intermediate Tax-Free Fund						Sterling Capital West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
$	631,424		$	1,064,858		$	1,578,228		$	2,993,723		$	1,719,608		$	3,175,509
	32,728			149,905			41,080			377,135			(15,345	)		104,867
	(1,755,632	)		913,311			(4,064,267	)		1,412,409			(3,706,284	)		1,431,326
	(1,091,480	)		2,128,074			(2,444,959	)		4,783,267			(2,002,021	)		4,711,702
	(184,963	)		(346,635	)		(483,787	)		(732,727	)		(482,202	)		(780,468	)
	(41,431	)		—			(121,044	)		(209,494	)		(29,936	)		(32,736	)
	(444,232	)		(711,699	)		(1,093,495	)		(2,259,089	)		(1,227,348	)		(2,375,666	)
	(92,870	)		—			(245,955	)		(663,572	)		(70,247	)		(104,016	)
	(763,496	)		(1,058,334	)		(1,944,281	)		(3,864,882	)		(1,809,733	)		(3,292,886	)
	6,369,281			15,874,992			3,604,781			19,757,902			4,087,186			16,082,320
	4,514,305			16,944,732			(784,459	)		20,676,287			275,432			17,501,136
	45,473,526			28,528,794			112,505,537			91,829,250			100,618,401			83,117,265
$	49,987,831		$	45,473,526		$	111,721,078		$	112,505,537		$	100,893,833		$	100,618,401
$	5,105		$	2,876		$	42,503		$	41,557		$	(28,135	)	$	(38,193	)

74

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital National Tax-Free Money Market Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
From Investment Activities:
Operations:
Net investment income	$	16,433		$	67,893
Net realized gain (loss)		166			235
Change in unrealized appreciation/depreciation		—			—
Change in net assets from operations		16,599			68,128
Distributions to Class A Shareholders:
Net investment income		(2	)		(6	)
Distributions to Class B Shareholders:
Net investment income		—			—
Distributions to Class C Shareholders:
Net investment income		—			—
Distributions to Institutional Class Shareholders:
Net investment income		(16,431	)		(67,887	)
Change in net assets from shareholder distributions		(16,433	)		(67,893	)
Capital Transactions:
Change in net assets from capital transactions		(21,199,769	)		(105,450,174	)
Change in net assets		(21,199,603	)		(105,449,939	)
Net Assets:
Beginning of period		155,488,831			260,938,770
End of period	$	134,289,228		$	155,488,831
Accumulated undistributed (distributions in excess of) net investment income	$	1,123		$	1,123

See accompanying notes to the financial statements.

75

Sterling Capital Prime Money Market Fund							Sterling Capital U.S. Treasury Money Market Fund						Sterling Capital Strategic Allocation Conservative Fund
For the Six Months Ended March 31, 2011 (Unaudited)				For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	30,458			$	329,532		$	16,416		$	277,603		$	190,697		$	424,657
	—				(18,963	)		—			—			278,584			310,195
	—				—			—			—			442,809			632,753
	30,458				310,569			16,416			277,603			912,090			1,367,605
	(8,976	)			(94,245	)		(6,775	)		(99,439	)		(160,571	)		(208,070	)
	(66	)			(806	)		(29	)		(487	)		(39,377	)		(57,985	)
	(26	)			(301	)		(3	)		(78	)		(2,296	)		(2,907	)
	(21,390	)			(234,180	)		(9,609	)		(177,599	)		(92,613	)		(160,463	)
	(30,458	)	��		(329,532	)		(16,416	)		(277,603	)		(294,857	)		(429,425	)
	4,298,773				(582,591,430	)		(23,868,264	)		(256,426,060	)		224,299			(911,665	)
	4,298,773				(582,610,393	)		(23,868,264	)		(256,426,060	)		841,532			26,515
	570,772,656				1,153,383,049			345,410,697			601,836,757			14,557,247			14,530,732
$	575,071,429			$	570,772,656		$	321,542,433		$	345,410,697		$	15,398,779		$	14,557,247
$	2,203			$	2,203		$	2,052		$	2,052		$	(104,163	)	$	(3	)

76

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital Strategic Allocation Balanced Growth Fund
	For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
From Investment Activities:
Operations:
Net investment income	$	344,938		$	763,481
Net realized gain (loss)		509,422			(2,683,861	)
Change in unrealized appreciation/depreciation		2,994,387			5,475,263
Change in net assets from operations		3,848,747			3,554,883
Distributions to Class A Shareholders:
Net investment income		(363,877	)		(573,059	)
Distributions to Class B Shareholders:
Net investment income		(95,026	)		(164,202	)
Distributions to Class C Shareholders:
Net investment income		(2,557	)		(2,023	)
Distributions to Institutional Class Shareholders:
Net investment income		(15,501	)		(30,576	)
Change in net assets from shareholder distributions		(476,961	)		(769,860	)
Capital Transactions:
Change in net assets from capital transactions		(952,834	)		(3,811,025	)
Change in net assets		2,418,952			(1,026,002	)
Net Assets:
Beginning of period		36,544,661			37,570,663
End of period	$	38,963,613		$	36,544,661
Accumulated undistributed (distributions in excess of) net investment income	$	(132,022	)	$	1

See accompanying notes to the financial statements.

77

Sterling Capital Strategic Allocation Growth Fund						Sterling Capital Strategic Allocation Equity Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	203,082		$	439,669		$	46,180		$	94,920
	351,225			(2,656,759	)		67,940			(972,536	)
	3,022,822			4,826,126			1,180,830			1,701,090
	3,577,129			2,609,036			1,294,950			823,474
	(171,017	)		(310,591	)		(36,522	)		(73,354	)
	(52,939	)		(96,586	)		(19,158	)		(18,738	)
	(1,241	)		(1,507	)		(108	)		(103	)
	(17,927	)		(33,543	)		(471	)		(2,733	)
	(243,124	)		(442,227	)		(56,259	)		(94,928	)
	(2,181,628	)		(2,543,776	)		(275,272	)		(1,546,946	)
	1,152,377			(376,967	)		963,419			(818,400	)
	27,954,283			28,331,250			8,904,724			9,723,124
$	29,106,660		$	27,954,283		$	9,868,143		$	8,904,724
$	(40,026	)	$	16		$	(10,087	)	$	(8	)

78

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital Select Equity Fund
	For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	711,979		$	1,873,968
Proceeds from shares issued in reorganization		—			—
Distributions reinvested		152,616			298,975
Value of shares redeemed		(1,963,230	)		(3,884,963	)
Change in net assets from Class A Share transactions		(1,098,635	)		(1,712,020	)
Class B Shares:
Proceeds from shares issued		—			3,397
Proceeds from shares issued in reorganization		—			—
Distributions reinvested		3,741			9,086
Value of shares redeemed		(583,757	)		(1,586,831	)
Change in net assets from Class B Share transactions		(580,016	)		(1,574,348	)
Class C Shares:
Proceeds from shares issued		396,907			37,394
Proceeds from shares issued in reorganization		—			—
Distributions reinvested		467			364
Value of shares redeemed		(229,675	)		(25,101	)
Change in net assets from Class C Share transactions		167,699			12,657
Institutional Shares:
Proceeds from shares issued		7,876,500			25,938,993
Proceeds from shares issued in reorganization		—			—
Distributions reinvested		1,110,271			2,142,283
Value of shares redeemed		(16,740,534	)		(30,172,287	)
Change in net assets from Institutional Share transactions		(7,753,763	)		(2,091,011	)
Class R Shares:
Proceeds from shares issued		—			—
Change in net assets from Class R Share transactions		—			—
Change in net assets from capital transactions	$	(9,264,715	)	$	(5,364,722	)
Share Transactions:
Class A Shares:
Issued		61,462			178,138
Issued in reorganization		—			—
Reinvested		12,876			28,862
Redeemed		(171,188	)		(370,283	)
Change in Class A Shares		(96,850	)		(163,283	)
Class B Shares:
Issued		—			325
Issued in reorganization		—			—
Reinvested		324			910
Redeemed		(51,751	)		(153,876	)
Change in Class B Shares		(51,427	)		(152,641	)
Class C Shares:
Issued		33,299			3,641
Issued in reorganization		—			—
Reinvested		40			36
Redeemed		(19,991	)		(2,424	)
Change in Class C Shares		13,348			1,253
Institutional Shares:
Issued		673,611			2,497,662
Issued in reorganization		—			—
Reinvested		93,171			205,444
Redeemed		(1,444,436	)		(2,864,323	)
Change in Institutional Shares		(677,654	)		(161,217	)
Class R Shares:
Issued		—			—
Change in Class R Shares		—			—
Change in Shares		(812,583	)		(475,888	)

See accompanying notes to the financial statements.

79

Sterling Capital Mid Value Fund						Sterling Capital Small Value Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	2,239,937		$	2,870,738		$	1,504,102		$	691,577
	—			5,898,265			—			4,823,599
	31,578			41,433			—			15,377
	(1,890,969	)		(2,431,070	)		(484,371	)		(438,388	)
	380,546			6,379,366			1,019,731			5,092,165
	3,923			18,231			3,561			20,551
	—			1,265,846			—			1,039,671
	—			578			—			—
	(557,244	)		(1,379,754	)		(184,548	)		(188,467	)
	(553,321	)		(95,099	)		(180,987	)		871,755
	54,106			268,770			20,149			38,609
	—			72,648			—			17,265
	—			77			—			29
	(12,198	)		(120,962	)		(3,651	)		—
	41,908			220,533			16,498			55,903
	33,895,036			90,925,122			17,299,009			25,776,748
	—			69,504,565			—			22,752,363
	602,035			1,113,413			—			282,125
	(47,614,551	)		(72,694,448	)		(11,530,383	)		(18,247,462	)
	(13,117,480	)		88,848,652			5,768,626			30,563,774
	—			100			—			100
	—			100			—			100
$	(13,248,347	)	$	95,353,552		$	6,623,868		$	36,583,697
	163,975			247,446			113,062			62,722
	—			533,366			—			457,112
	2,351			3,559			—			1,375
	(141,103	)		(212,223	)		(37,137	)		(39,502	)
	25,223			572,148			75,925			481,707
	319			1,630			281			1,770
	—			119,580			—			98,525
	—			54			—			—
	(43,598	)		(125,368	)		(14,013	)		(16,799	)
	(43,279	)		(4,104	)		(13,732	)		83,496
	4,137			25,005			1,630			3,449
	—			6,874			—			1,636
	—			7			—			2
	(998	)		(10,998	)		(313	)		—
	3,139			20,888			1,317			5,087
	2,485,890			7,899,523			1,288,122			2,348,845
	—			6,253,352			—			2,156,153
	44,596			94,163			—			25,419
	(3,514,041	)		(6,382,508	)		(913,810	)		(1,672,595	)
	(983,555	)		7,864,530			374,312			2,857,822
	—			9			—			10
	—			9			—			10
	(998,472	)		8,453,471			437,822			3,428,122

80

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital International Fund
	For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	374,453		$	774,803
Distributions reinvested		—			67,212
Value of shares redeemed		(422,163	)		(412,591	)
Change in net assets from Class A Share transactions		(47,710	)		429,424
Class B Shares:
Proceeds from shares issued		2,009			12,418
Distributions reinvested		—			13,416
Value of shares redeemed		(89,869	)		(171,023	)
Change in net assets from Class B Share transactions		(87,860	)		(145,189	)
Class C Shares:
Proceeds from shares issued		24,389			61,384
Distributions reinvested		—			1,243
Value of shares redeemed		(58,801	)		(64,606	)
Change in net assets from Class C Share transactions		(34,412	)		(1,979	)
Institutional Shares:
Proceeds from shares issued		6,356,336			17,518,739
Distributions reinvested		—			1,313,469
Value of shares redeemed		(6,878,596	)		(24,359,077	)
	��
Change in net assets from Institutional Share transactions		(522,260	)		(5,526,869	)
Class R Shares:
Proceeds from shares issued		—			—
Distributions reinvested		—			—
Change in net assets from Class R Share transactions		—			—
Change in net assets from capital transactions	$	(692,242	)	$	(5,244,613	)
Share Transactions:
Class A Shares:
Issued		71,084			157,914
Reinvested		—			13,469
Redeemed		(80,520	)		(86,475	)
Change in Class A Shares		(9,436	)		84,908
Class B Shares:
Issued		436			2,853
Reinvested		—			3,029
Redeemed		(19,358	)		(39,813	)
Change in Class B Shares		(18,922	)		(33,931	)
Class C Shares:
Issued		5,298			14,545
Reinvested		—			281
Redeemed		(12,814	)		(14,565	)
Change in Class C Shares		(7,516	)		261
Institutional Shares:
Issued		1,172,362			3,550,284
Reinvested		—			255,042
Redeemed		(1,265,440	)		(5,026,016	)
Change in Institutional Shares		(93,078	)		(1,220,690	)
Class R Shares:
Issued		—			—
Reinvested		—			—
Change in Class R Shares		—			—
Change in Shares		(128,952	)		(1,169,452	)

See accompanying notes to the financial statements.

81

Sterling Capital Special Opportunities Fund						Sterling Capital Equity Income Fund						Sterling Capital Short-Term Bond Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
$	24,217,205		$	51,993,177		$	66,080,356		$	56,192,472		$	772,524		$	4,110,791
	1,162,487			—			1,037,072			2,155,411			90,198			144,544
	(17,594,624	)		(39,871,310	)		(18,260,921	)		(29,827,673	)		(443,621	)		(1,432,444	)
	7,785,068			12,121,867			48,856,507			28,520,210			419,101			2,822,891
	74,021			343,236			223,335			417,400			—			—
	140,106			—			31,286			159,855			—			—
	(1,608,814	)		(3,658,508	)		(1,191,878	)		(2,011,466	)		—			—
	(1,394,687	)		(3,315,272	)		(937,257	)		(1,434,211	)		—			—
	10,917,791			18,967,620			22,471,424			28,710,451			—			—
	454,558			—			212,777			637,652			—			—
	(8,075,879	)		(8,876,442	)		(4,596,062	)		(5,905,408	)		—			—
	3,296,470			10,091,178			18,088,139			23,442,695			—			—
	55,466,805			72,577,644			131,529,775			91,200,777			13,354,897			44,168,629
	1,199,576			—			1,816,915			3,193,068			175,921			345,286
	(26,979,424	)		(66,522,833	)		(20,204,405	)		(61,626,392	)		(17,434,575	)		(43,587,786	)
	29,686,957			6,054,811			113,142,285			32,767,453			(3,903,757	)		926,129
	3,900			100			—			102			—			—
	1			—			1			—			—			—
	3,901			100			1			102			—			—
$	39,377,709		$	24,952,684		$	179,149,675		$	83,296,249		$	(3,484,656	)	$	3,749,020
	1,384,621			3,355,853			4,759,951			4,535,254			80,687			426,037
	67,982			—			72,874			173,740			9,419			14,986
	(1,011,840	)		(2,593,295	)		(1,306,279	)		(2,433,573	)		(46,352	)		(148,442	)
	440,763			762,558			3,526,546			2,275,421			43,754			292,581
	4,492			22,957			16,155			34,155			—			—
	8,735			—			2,190			12,953			—			—
	(98,627	)		(251,243	)		(85,659	)		(165,060	)		—			—
	(85,400	)		(228,286	)		(67,314	)		(117,952	)		—			—
	662,977			1,291,925			1,629,729			2,348,842			—			—
	28,321			—			14,942			51,694			—			—
	(493,008	)		(610,429	)		(332,582	)		(485,022	)		—			—
	198,290			681,496			1,312,089			1,915,514			—			—
	3,123,908			4,599,664			9,438,373			7,384,647			1,394,976			4,580,436
	68,744			—			127,339			256,959			18,358			35,804
	(1,517,843	)		(4,230,147	)		(1,447,511	)		(5,030,921	)		(1,818,568	)		(4,523,559	)
	1,674,809			369,517			8,118,201			2,610,685			(405,234	)		92,681
	230			7			—			8			—			—
	—			—			1			—			—			—
	230			7			1			8			—			—
	2,228,692			1,585,292			12,889,523			6,683,676			(361,480	)		385,262

82

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital Intermediate U.S. Government Fund
	For the Six Months Ended March 31,  2011 (Unaudited)			For the Year Ended September 30, 2010
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	1,292,449		$	4,505,216
Distributions reinvested		188,391			338,424
Value of shares redeemed		(2,406,310	)		(3,763,183	)
Change in net assets from Class A Share transactions		(925,470	)		1,080,457
Class B Shares:
Proceeds from shares issued		10,821			102,822
Distributions reinvested		25,289			65,859
Value of shares redeemed		(685,521	)		(801,098	)
Change in net assets from Class B Share transactions		(649,411	)		(632,417	)
Class C Shares:
Proceeds from shares issued		191,543			238,283
Distributions reinvested		6,137			7,308
Value of shares redeemed		(127,171	)		(145,608	)
Change in net assets from Class C Share transactions		70,509			99,983
Institutional Shares:
Proceeds from shares issued		30,290,655			75,251,756
Distributions reinvested		843,994			1,890,858
Value of shares redeemed		(31,496,434	)		(82,637,472	)
Change in net assets from Institutional Share transactions		(361,785	)		(5,494,858	)
Class R Shares:
Proceeds from shares issued		—			—
Distributions reinvested		—			—
Value of shares redeemed		—			—
Change in net assets from Class R Share transactions		—			—
Change in net assets from capital transactions	$	(1,866,157	)	$	(4,946,835	)
Share Transactions:
Class A Shares:
Issued		121,284			422,099
Reinvested		17,818			31,771
Redeemed		(227,629	)		(355,043	)
Change in Class A Shares		(88,527	)		98,827
Class B Shares:
Issued		1,038			9,743
Reinvested		2,398			6,208
Redeemed		(64,921	)		(75,634	)
Change in Class B Shares		(61,485	)		(59,683	)
Class C Shares:
Issued		17,867			22,353
Reinvested		582			687
Redeemed		(11,929	)		(13,795	)
Change in Class C Shares		6,520			9,245
Institutional Shares:
Issued		2,868,409			7,082,674
Reinvested		79,708			177,406
Redeemed		(2,974,752	)		(7,740,047	)
Change in Institutional Shares		(26,635	)		(479,967	)
Class R Shares:
Issued		—			—
Reinvested		—			—
Redeemed		—			—
Change in Class R Shares		—			—
Change in Shares		(170,127	)		(431,578	)

See accompanying notes to the financial statements.

83

Sterling Capital Total Return Bond Fund						Sterling Capital Kentucky Intermediate Tax-Free Fund						Sterling Capital Maryland Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
$	7,245,872		$	17,946,667		$	1,092,664		$	1,652,461		$	1,404,962		$	3,865,425
	1,216,263			937,006			105,105			212,686			139,873			188,548
	(5,312,075	)		(4,393,142	)		(757,163	)		(608,591	)		(3,212,581	)		(803,200	)
	3,150,060			14,490,531			440,606			1,256,556			(1,667,746	)		3,250,773
	122,295			368,858			—			—			—			—
	157,576			181,092			—			—			—			—
	(639,579	)		(1,392,427	)		—			—			—			—
	(359,708	)		(842,477	)		—			—			—			—
	1,833,193			1,677,308			—			—			—			—
	79,473			38,749			—			—			—			—
	(1,217,490	)		(48,269	)		—			—			—			—
	695,176			1,667,788			—			—			—			—
	62,383,759			124,403,924			2,701,249			6,222,750			5,844,737			9,290,636
	7,555,729			7,433,934			4,468			4,288			63,702			70,460
	(56,002,035	)		(106,050,848	)		(2,948,844	)		(3,982,330	)		(5,952,556	)		(4,327,799	)
	13,937,453			25,787,010			(243,127	)		2,244,708			(44,117	)		5,033,297
	—			41,019			—			—			—			—
	209			442			—			—			—			—
	(37,054	)		—			—			—			—			—
	(36,845	)		41,461			—			—			—			—
$	17,386,136		$	41,144,313		$	197,479		$	3,501,264		$	(1,711,863	)	$	8,284,070
	656,799			1,633,596			104,957			156,280			126,941			352,058
	111,409			85,073			10,019			20,123			12,828			17,147
	(484,897	)		(402,439	)		(72,702	)		(57,857	)		(296,167	)		(73,305	)
	283,311			1,316,230			42,274			118,546			(156,398	)		295,900
	11,066			33,411			—			—			—			—
	14,417			16,494			—			—			—			—
	(58,169	)		(126,923	)		—			—			—			—
	(32,686	)		(77,018	)		—			—			—			—
	167,302			152,524			—			—			—			—
	7,274			3,495			—			—			—			—
	(111,647	)		(4,401	)		—			—			—			—
	62,929			151,618			—			—			—			—
	5,688,849			11,308,728			256,786			589,502			533,725			848,859
	691,482			676,154			428			406			5,842			6,395
	(5,115,713	)		(9,615,329	)		(282,559	)		(377,904	)		(548,720	)		(393,661	)
	1,264,618			2,369,553			(25,345	)		212,004			(9,153	)		461,593
	—			3,698			—			—			—			—
	19			39			—			—			—			—
	(3,264	)		—			—			—			—			—
	(3,245	)		3,737			—			—			—			—
	1,574,927			3,764,120			16,929			330,550			(165,551	)		757,493

84

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital North Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	8,743,079		$	18,279,880
Distributions reinvested		700,308			937,820
Value of shares redeemed		(4,842,630	)		(3,174,236	)
Change in net assets from Class A Share transactions		4,600,757			16,043,464
Institutional Shares:
Proceeds from shares issued		24,893,168			48,039,734
Distributions reinvested		261,688			297,178
Value of shares redeemed		(14,338,408	)		(32,627,778	)
Change in net assets from Institutional Share transactions		10,816,448			15,709,134
Change in net assets from capital transactions	$	15,417,205		$	31,752,598
Share Transactions:
Class A Shares:
Issued		813,389			1,698,060
Reinvested		65,625			86,951
Redeemed		(456,500	)		(294,390	)
Change in Class A Shares		422,514			1,490,621
Institutional Shares:
Issued		2,334,516			4,463,190
Reinvested		24,519			27,537
Redeemed		(1,347,474	)		(3,031,390	)
Change in Institutional Shares		1,011,561			1,459,337
Change in Shares		1,434,075			2,949,958

See accompanying notes to the financial statements.

85

Sterling Capital South Carolina Intermediate Tax-Free Fund						Sterling Capital Virginia Intermediate Tax-Free Fund						Sterling Capital West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
$	1,307,268		$	4,684,576		$	5,042,490		$	16,772,363		$	2,107,210		$	10,426,589
	197,282			313,137			423,656			710,183			356,226			531,561
	(1,029,534	)		(1,278,839	)		(3,375,408	)		(2,767,743	)		(1,298,548	)		(1,052,717	)
	475,016			3,718,874			2,090,738			14,714,803			1,164,888			9,905,433
	12,736,086			17,684,617			11,771,813			17,058,923			8,543,187			15,576,892
	61,788			83,271			73,890			52,397			41,355			65,070
	(6,903,609	)		(5,611,770	)		(10,331,660	)		(12,068,221	)		(5,662,244	)		(9,465,075	)
	5,894,265			12,156,118			1,514,043			5,043,099			2,922,298			6,176,887
$	6,369,281		$	15,874,992		$	3,604,781		$	19,757,902		$	4,087,186		$	16,082,320
	122,226			436,592			422,850			1,402,257			210,644			1,042,175
	18,592			29,356			35,982			59,606			36,056			53,130
	(96,352	)		(120,430	)		(287,613	)		(232,132	)		(131,776	)		(105,090	)
	44,466			345,518			171,219			1,229,731			114,924			990,215
	1,204,901			1,674,989			1,000,182			1,432,235			862,976			1,558,216
	5,868			7,853			6,284			4,380			4,185			6,512
	(660,036	)		(530,596	)		(874,828	)		(1,008,782	)		(574,386	)		(946,626	)
	550,733			1,152,246			131,638			427,833			292,775			618,102
	595,199			1,497,764			302,857			1,657,564			407,699			1,608,317

86

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital National Tax-Free Money Market Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	85,909		$	193,086
Distributions reinvested		2			5
Value of shares redeemed		(117,418	)		(139,315	)
Change in net assets from Class A Share transactions		(31,507	)		53,776
Class B Shares:
Proceeds from shares issued		—			—
Distributions reinvested		—			—
Value of shares redeemed		—			—
Change in net assets from Class B Share transactions		—			—
Class C Shares:
Proceeds from shares issued		—			—
Distributions reinvested		—			—
Value of shares redeemed		—			—
Change in net assets from Class C Share transactions		—			—
Institutional Shares:
Proceeds from shares issued		92,441,629			254,452,716
Distributions reinvested		293			982
Value of shares redeemed		(113,610,184	)		(359,957,648	)
Change in net assets from Institutional Share transactions		(21,168,262	)		(105,503,950	)
Change in net assets from capital transactions	$	(21,199,769	)	$	(105,450,174	)
Share Transactions:
Class A Shares:
Issued		85,909			193,086
Reinvested		2			5
Redeemed		(117,418	)		(139,315	)
Change in Class A Shares		(31,507	)		53,776
Class B Shares:
Issued		—			—
Reinvested		—			—
Redeemed		—			—
Change in Class B Shares		—			—
Class C Shares:
Issued		—			—
Reinvested		—			—
Redeemed		—			—
Change in Class C Shares		—			—
Institutional Shares:
Issued		92,441,629			254,452,716
Reinvested		293			982
Redeemed		(113,610,184	)		(359,957,648	)
Change in Institutional Shares		(21,168,262	)		(105,503,950	)
Change in Shares		(21,199,769	)		(105,450,174	)

See accompanying notes to the financial statements.

87

Sterling Capital Prime Money Market Fund						Sterling Capital U.S. Treasury Money Market Fund						Sterling Capital Strategic Allocation Conservative Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
$	82,318,270		$	132,211,386		$	63,214,174		$	113,397,348		$	1,561,427		$	1,595,118
	8,856			94,134			6,654			99,288			156,189			202,858
	(102,290,460	)		(230,509,387	)		(67,262,787	)		(145,385,305	)		(659,972	)		(924,550	)
	(19,963,334	)		(98,203,867	)		(4,041,959	)		(31,888,669	)		1,057,644			873,426
	170,201			345,965			369,439			222,141			60,956			48,341
	63			777			28			473			39,267			57,630
	(533,104	)		(753,971	)		(403,738	)		(486,491	)		(252,768	)		(1,059,080	)
	(362,840	)		(407,229	)		(34,271	)		(263,877	)		(152,545	)		(953,109	)
	323,119			345,883			23,997			97,671			26,508			34,938
	25			262			3			78			2,295			2,907
	(209,050	)		(759,306	)		(39,670	)		(57,218	)		(1,890	)		(20,331	)
	114,094			(413,161	)		(15,670	)		40,531			26,913			17,514
	496,171,011			1,137,654,760			374,164,632			601,947,679			209,174			674,652
	5,060			60,616			1,960			32,221			91,603			158,491
	(471,665,218	)		(1,621,282,549	)		(393,942,956	)		(826,293,945	)		(1,008,490	)		(1,682,639	)
	24,510,853			(483,567,173	)		(19,776,364	)		(224,314,045	)		(707,713	)		(849,496	)
$	4,298,773		$	(582,591,430	)	$	(23,868,264	)	$	(256,426,060	)	$	224,299		$	(911,665	)
	82,318,270			132,211,386			63,214,174			113,397,348			166,960			182,820
	8,856			94,134			6,654			99,288			16,776			23,219
	(102,290,460	)		(230,509,387	)		(67,262,787	)		(145,385,305	)		(71,009	)		(105,840	)
	(19,963,334	)		(98,203,867	)		(4,041,959	)		(31,888,669	)		112,727			100,199
	170,201			345,965			369,440			222,141			6,595			5,548
	63			777			28			473			4,220			6,599
	(533,104	)		(753,971	)		(403,738	)		(486,491	)		(27,075	)		(121,839	)
	(362,840	)		(407,229	)		(34,270	)		(263,877	)		(16,260	)		(109,692	)
	323,119			345,883			23,997			97,671			2,859			4,012
	25			262			3			78			248			334
	(209,050	)		(759,306	)		(39,670	)		(57,218	)		(203	)		(2,307	)
	114,094			(413,161	)		(15,670	)		40,531			2,904			2,039
	496,171,011			1,137,654,760			374,164,632			601,947,679			22,232			77,032
	5,060			60,616			1,960			32,221			9,748			17,968
	(471,665,218	)		(1,621,282,549	)		(393,942,956	)		(826,293,945	)		(107,666	)		(190,379	)
	24,510,853			(483,567,173	)		(19,776,364	)		(224,314,045	)		(75,686	)		(95,379	)
	4,298,773			(582,591,430	)		(23,868,263	)		(256,426,060	)		23,685			(102,833	)

88

Sterling Capital Funds

   Statements of Changes in Net Assets, continued

	Sterling Capital Strategic Allocation Balanced Fund
	For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	3,422,352		$	3,214,410
Distributions reinvested		357,650			564,372
Value of shares redeemed		(2,646,185	)		(4,682,727	)
Change in net assets from Class A Share transactions		1,133,817			(903,945	)
Class B Shares:
Proceeds from shares issued		13,565			66,952
Distributions reinvested		94,788			163,364
Value of shares redeemed		(1,705,635	)		(2,979,289	)
Change in net assets from Class B Share transactions		(1,597,282	)		(2,748,973	)
Class C Shares:
Proceeds from shares issued		102,058			110,268
Distributions reinvested		2,557			2,023
Value of shares redeemed		(12,820	)		(23,710	)
Change in net assets from Class C Share transactions		91,795			88,581
Institutional Shares:
Proceeds from shares issued		30,127			57,459
Distributions reinvested		14,943			29,000
Value of shares redeemed		(626,234	)		(333,147	)
Change in net assets from Institutional Share transactions		(581,164	)		(246,688	)
Change in net assets from capital transactions	$	(952,834	)	$	(3,811,025	)
Share Transactions:
Class A Shares:
Issued		382,508			400,068
Reinvested		40,023			70,379
Redeemed		(297,534	)		(577,766	)
Change in Class A Shares		124,997			(107,319	)
Class B Shares:
Issued		1,563			8,675
Reinvested		10,878			20,856
Redeemed		(195,596	)		(378,343	)
Change in Class B Shares		(183,155	)		(348,812	)
Class C Shares:
Issued		11,609			13,719
Reinvested		291			256
Redeemed		(1,479	)		(3,084	)
Change in Class C Shares		10,421			10,891
Institutional Shares:
Issued		3,384			7,053
Reinvested		1,667			3,595
Redeemed		(69,812	)		(40,930	)
Change in Institutional Shares		(64,761	)		(30,282	)
Change in Shares		(112,498	)		(475,522	)

See accompanying notes to the financial statements.

89

Sterling Capital Strategic Allocation Growth Fund						Sterling Capital Strategic Allocation Equity Fund
For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010			For the Six Months Ended March 31, 2011 (Unaudited)			For the Year Ended September 30, 2010
$	1,144,805		$	2,007,029		$	360,821		$	992,664
	170,117			309,062			35,113			70,109
	(1,730,471	)		(2,428,605	)		(349,702	)		(1,112,685	)
	(415,549	)		(112,514	)		46,232			(49,912	)
	12,589			13,572			—			25,269
	52,121			95,344			19,135			18,691
	(1,335,320	)		(2,492,057	)		(337,703	)		(915,440	)
	(1,270,610	)		(2,383,141	)		(318,568	)		(871,480	)
	33,196			57,913			6,083			15,495
	1,241			1,507			108			103
	(1,180	)		(11,486	)		—			(5,356	)
	33,257			47,934			6,191			10,242
	82,993			74,782			170			17,994
	17,769			33,541			471			2,291
	(629,488	)		(204,378	)		(9,768	)		(656,081	)
	(528,726	)		(96,055	)		(9,127	)		(635,796	)
$	(2,181,628	)	$	(2,543,776	)	$	(275,272	)	$	(1,546,946	)
	138,067			273,552			45,544			139,104
	20,460			42,200			4,401			10,023
	(210,944	)		(331,303	)		(43,775	)		(157,301	)
	(52,417	)		(15,551	)		6,170			(8,174	)
	1,541			1,822			—			3,744
	6,443			13,353			2,512			2,778
	(165,479	)		(348,757	)		(44,292	)		(135,520	)
	(157,495	)		(333,582	)		(41,780	)		(128,998	)
	4,143			8,036			807			2,305
	154			211			14			15
	(151	)		(1,610	)		—			(817	)
	4,146			6,637			821			1,503
	10,116			10,056			22			2,448
	2,134			4,570			58			324
	(74,750	)		(27,583	)		(1,251	)		(95,000	)
	(62,500	)		(12,957	)		(1,171	)		(92,228	)
	(268,266	)		(355,453	)		(35,960	)		(227,897	)

90

Sterling Capital Funds

   Financial Highlights, Class A Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

	Investment Activities											Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)			Net  realized/ unrealized gains  (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Select Equity Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.52		0.06	(c)		1.61			1.67			(0.06	)		—			—			(0.06	)
Year Ended September 30, 2010	$	10.08		0.10	(c)		0.45			0.55			(0.11	)		—			—			(0.11	)
Year Ended September 30, 2009	$	11.31		0.11	(c)		(1.22	)		(1.11	)		(0.12	)		—			—			(0.12	)
Year Ended September 30, 2008	$	19.13		0.15	(c)		(5.14	)		(4.99	)		(0.10	)		(2.73	)		—			(2.83	)
Year Ended September 30, 2007	$	20.33		0.24	(c)		2.14			2.38			(0.23	)		(3.35	)		—			(3.58	)
Year Ended September 30, 2006	$	19.47		0.30	(c)		2.30			2.60			(0.30	)		(1.44	)		—			(1.74	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	12.08		0.02	(c)		2.60			2.62			(0.02	)		—			—			(0.02	)
Year Ended September 30, 2010	$	10.81		0.04	(c)		1.27			1.31			(0.04	)		—			—			(0.04	)
Year Ended September 30, 2009	$	10.50		0.02	(c)		0.31			0.33			(0.02	)		—			—			(0.02	)
Year Ended September 30, 2008	$	14.93		0.02	(c)		(3.07	)		(3.05	)		(0.02	)		(1.36	)		—			(1.38	)
Year Ended September 30, 2007	$	13.49		0.04	(c)		2.13			2.17			(0.04	)		(0.69	)		—			(0.73	)
Year Ended September 30, 2006	$	13.35		0.03	(c)		1.60			1.63			(0.04	)		(1.45	)		—			(1.49	)
Sterling Capital Small Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.19		(0.03	)(c)		3.03			3.00			—			—			—			—
February 1, 2010 to September 30, 2010(d)	$	10.55		0.04	(c)		0.63			0.67			(0.03	)		—			—			(0.03	)
Sterling Capital International Fund
Six Months Ended March 31, 2011 (Unaudited)	$	5.02		(0.01	)(c)		0.38			0.37			—			—			—			—
Year Ended September 30, 2010	$	4.97		0.02	(c)		0.13			0.15			(0.10	)		—			—			(0.10	)
Year Ended September 30, 2009	$	5.31		0.06	(c)		(0.28	)		(0.22	)		(0.12	)		—			—			(0.12	)
Year Ended September 30, 2008	$	8.41		0.08	(c)		(2.41	)		(2.33	)		(0.02	)		(0.75	)		—			(0.77	)
Year Ended September 30, 2007	$	11.06		0.12	(c)		1.82			1.94			(0.07	)		(4.52	)		—			(4.59	)
Year Ended September 30, 2006	$	9.58		0.14	(c)		1.49			1.63			(0.15	)		—			—			(0.15	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2011 (Unaudited)	$	15.93		(0.03	)(c)		2.46			2.43			—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010	$	14.66		(0.06	)(c)		1.33			1.27			—			—			—			—
Year Ended September 30, 2009	$	15.34		—	(c)(f)		—	(f)		—	(f)		—	(f)		(0.57	)		(0.11	)		(0.68	)
Year Ended September 30, 2008	$	18.29		(0.08	)(c)		(2.12	)		(2.20	)		—			(0.75	)		—			(0.75	)
Year Ended September 30, 2007	$	16.43		(0.01	)(c)		3.47			3.46			—			(1.60	)		—			(1.60	)
Year Ended September 30, 2006	$	15.57		(0.04	)		1.69			1.65			—			(0.79	)		—			(0.79	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2011 (Unaudited)	$	13.05		0.11	(c)		1.39			1.50			(0.08	)		—			—			(0.08	)
Year Ended September 30, 2010	$	11.43		0.30	(c)		1.56			1.86			(0.24	)		—			—			(0.24	)
Year Ended September 30, 2009	$	12.35		0.30	(c)		(0.99	)		(0.69	)		(0.20	)		(0.03	)		—			(0.23	)
Year Ended September 30, 2008	$	15.03		0.43	(c)		(2.21	)		(1.78	)		(0.32	)		(0.58	)		—			(0.90	)
Year Ended September 30, 2007	$	13.36		0.36	(c)		2.31			2.67			(0.32	)		(0.68	)		—			(1.00	)
Year Ended September 30, 2006	$	12.09		0.28			1.58			1.86			(0.32	)		(0.27	)		—			(0.59	)
Sterling Capital Short-Term Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	9.68		0.07	(c)		(0.11	)		(0.04	)		(0.12	)		—			—			(0.12	)
Year Ended September 30, 2010	$	9.66		0.16	(c)		0.10			0.26			(0.24	)		—			—			(0.24	)
Year Ended September 30, 2009	$	9.54		0.24	(c)		0.19			0.43			(0.31	)		—			—			(0.31	)
Year Ended September 30, 2008	$	9.52		0.33	(c)		0.07			0.40			(0.38	)		—			—			(0.38	)
Year Ended September 30, 2007	$	9.48		0.36	(c)		0.07			0.43			(0.39	)		—			—			(0.39	)
Year Ended September 30, 2006	$	9.50		0.28	(c)		0.01	(g)		0.29			(0.31	)		—			—			(0.31	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Period from commencement of operations.

(e) Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 6.01%.

(f) Amount is less than $0.005.

(g) The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period.

See accompanying notes to the financial statements.

91

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of  net investment income (loss) to average net assets (b)			Ratio of expenses to average net  assets*(b)			Portfolio turnover  rate**(a)
$	12.13		15.87	%	$	32,109		1.08	%		0.97	%		1.47	%		28.08	%
$	10.52		5.47	%	$	28,849		1.09	%		0.98	%		1.48	%		119.85	%
$	10.08		(9.67	)%	$	29,290		1.06	%		1.25	%		1.45	%		92.97	%
$	11.31		(29.46	)%	$	36,066		1.14	%		1.05	%		1.43	%		38.43	%
$	19.13		12.55	%	$	58,771		1.16	%		1.25	%		1.47	%		68.60	%
$	20.33		14.29	%	$	48,656		1.14	%		1.53	%		1.43	%		34.83	%
$	14.68		21.71	%	$	23,326		1.18	%		0.31	%		1.22	%		17.16	%
$	12.08		12.09	%	$	18,890		1.20	%		0.33	%		1.30	%		45.02	%
$	10.81		3.24	%	$	10,717		1.21	%		0.19	%		1.26	%		46.83	%
$	10.50		(22.00	)%	$	28,068		1.14	%		0.17	%		1.18	%		65.74	%
$	14.93		16.48	%	$	16,811		1.16	%		0.27	%		1.20	%		58.59	%
$	13.49		13.18	%	$	13,393		1.13	%		0.23	%		1.18	%		53.92	%
$	14.19		26.81	%	$	7,910		1.34	%		(0.46	)%		1.70	%		33.31	%
$	11.19		6.39	%(e)	$	5,389		1.40	%		0.49	%		1.91	%		95.89	%
$	5.39		7.37	%	$	4,020		1.81	%		(0.47	)%		2.22	%		45.32	%
$	5.02		3.01	%	$	3,788		1.79	%		0.49	%		2.49	%		145.31	%
$	4.97		(3.78	)%	$	3,333		1.74	%		1.34	%		2.13	%		223.19	%
$	5.31		(30.82	)%	$	3,524		1.56	%		1.11	%		1.99	%		112.65	%
$	8.41		20.13	%	$	5,204		1.38	%		1.02	%		1.75	%		129.80	%
$	11.06		17.04	%	$	4,202		1.40	%		1.37	%		1.75	%		36.22	%
$	18.26		15.28	%	$	240,281		1.28	%		(0.33	)%		1.53	%		20.57	%
$	15.93		8.66	%	$	202,670		1.29	%		(0.38	)%		1.55	%		25.65	%
$	14.66		1.74	%	$	175,319		1.28	%		0.02	%		1.54	%		45.22	%
$	15.34		(12.61	)%	$	123,249		1.24	%		(0.48	)%		1.49	%		25.80	%
$	18.29		22.24	%	$	124,136		1.28	%		(0.04	)%		1.53	%		49.43	%
$	16.43		11.16	%	$	81,883		1.28	%		(0.26	)%		1.53	%		58.01	%
$	14.47		11.54	%	$	209,907		1.17	%		1.65	%		1.42	%		6.38	%
$	13.05		16.42	%	$	143,283		1.19	%		2.43	%		1.45	%		21.63	%
$	11.43		(5.33	)%	$	99,480		1.18	%		2.93	%		1.45	%		37.13	%
$	12.35		(12.47	)%	$	98,584		1.14	%		3.09	%		1.39	%		30.01	%
$	15.03		20.83	%	$	97,491		1.19	%		2.53	%		1.44	%		37.85	%
$	13.36		15.79	%	$	60,059		1.20	%		2.28	%		1.45	%		45.38	%
$	9.52		(0.43	)%	$	8,041		0.92	%		1.39	%		1.33	%		81.63	%
$	9.68		2.75	%	$	7,747		0.95	%		1.66	%		1.36	%		55.50	%
$	9.66		4.57	%	$	4,909		0.98	%		2.44	%		1.38	%		89.57	%
$	9.54		4.23	%	$	4,680		0.90	%		3.42	%		1.30	%		48.20	%
$	9.52		4.67	%	$	3,978		0.91	%		3.77	%		1.31	%		44.10	%
$	9.48		3.12	%	$	6,233		0.89	%		2.99	%		1.29	%		98.08	%

92

Sterling Capital Funds

   Financial Highlights, Class A Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income			Net  realized/ unrealized gains  (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.80		0.13	(c)		(0.32	)		(0.19	)		(0.16	)		—			(0.16	)
Year Ended September 30, 2010	$	10.56		0.29	(c)		0.27			0.56			(0.32	)		—			(0.32	)
Year Ended September 30, 2009	$	10.03		0.33	(c)		0.55			0.88			(0.35	)		—			(0.35	)
Year Ended September 30, 2008	$	9.93		0.41	(c)		0.11			0.52			(0.42	)		—			(0.42	)
Year Ended September 30, 2007	$	9.89		0.42	(c)		0.04			0.46			(0.42	)		—			(0.42	)
Year Ended September 30, 2006	$	10.01		0.41	(c)		(0.11	)		0.30			(0.42	)		—			(0.42	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.32		0.20	(c)		(0.23	)		(0.03	)		(0.23	)		(0.21	)		(0.44	)
Year Ended September 30, 2010	$	10.78		0.43	(c)		0.61			1.04			(0.49	)		(0.01	)		(0.50	)
Year Ended September 30, 2009	$	9.88		0.45	(c)		0.90			1.35			(0.45	)		—			(0.45	)
Year Ended September 30, 2008	$	10.12		0.43	(c)		(0.21	)		0.22			(0.46	)		—			(0.46	)
Year Ended September 30, 2007	$	10.12		0.44	(c)		0.01			0.45			(0.45	)		—			(0.45	)
Year Ended September 30, 2006	$	10.31		0.42	(c)		(0.12	)		0.30			(0.44	)		(0.05	)		(0.49	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.83		0.15	(c)		(0.41	)		(0.26	)		(0.15	)		(0.05	)		(0.20	)
Year Ended September 30, 2010	$	10.68		0.29	(c)		0.25			0.54			(0.29	)		(0.10	)		(0.39	)
Year Ended September 30, 2009	$	9.88		0.33	(c)		0.89			1.22			(0.32	)		(0.10	)		(0.42	)
Year Ended September 30, 2008	$	10.06		0.32	(c)		(0.18	)		0.14			(0.32	)		—			(0.32	)
Year Ended September 30, 2007	$	10.12		0.32	(c)		(0.06	)		0.26			(0.32	)		—			(0.32	)
Year Ended September 30, 2006	$	10.06		0.30			0.06			0.36			(0.30	)		—			(0.30	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.21		0.14	(c)		(0.38	)		(0.24	)		(0.14	)		(0.04	)		(0.18	)
Year Ended September 30, 2010	$	10.97		0.28	(c)		0.24			0.52			(0.28	)		—	(d)		(0.28	)
Year Ended September 30, 2009	$	10.04		0.30	(c)		1.01			1.31			(0.30	)		(0.08	)		(0.38	)
Year Ended September 30, 2008	$	10.15		0.31	(c)		(0.11	)		0.20			(0.31	)		—			(0.31	)
Year Ended September 30, 2007	$	10.12		0.31	(c)		0.03			0.34			(0.31	)		—			(0.31	)
Year Ended September 30, 2006	$	10.02		0.29			0.10			0.39			(0.29	)		—			(0.29	)
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.01		0.14	(c)		(0.37	)		(0.23	)		(0.14	)		(0.06	)		(0.20	)
Year Ended September 30, 2010	$	10.87		0.30	(c)		0.20			0.50			(0.30	)		(0.06	)		(0.36	)
Year Ended September 30, 2009	$	10.09		0.33	(c)		0.88			1.21			(0.33	)		(0.10	)		(0.43	)
Year Ended September 30, 2008	$	10.33		0.35	(c)		(0.20	)		0.15			(0.35	)		(0.04	)		(0.39	)
Year Ended September 30, 2007	$	10.38		0.35	(c)		(0.04	)(c)		0.31			(0.35	)		(0.01	)		(0.36	)
Year Ended September 30, 2006	$	10.46		0.36			—	(d)		0.36			(0.35	)		(0.09	)		(0.44	)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.93		0.13	(c)		(0.38	)		(0.25	)		(0.13	)		(0.03	)		(0.16	)
Year Ended September 30, 2010	$	10.68		0.30	(c)		0.25			0.55			(0.30	)		—			(0.30	)
Year Ended September 30, 2009	$	9.95		0.33	(c)		0.90			1.23			(0.33	)		(0.17	)		(0.50	)
Year Ended September 30, 2008	$	10.28		0.34	(c)		(0.24	)		0.10			(0.34	)		(0.09	)		(0.43	)
Year Ended September 30, 2007	$	10.35		0.34	(c)		(0.05	)		0.29			(0.35	)		(0.01	)		(0.36	)
Year Ended September 30, 2006	$	10.54		0.34			(0.01	)		0.33			(0.34	)		(0.18	)		(0.52	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	12.14		0.16	(c)		(0.42	)		(0.26	)		(0.16	)		(0.04	)		(0.20	)
Year Ended September 30, 2010	$	12.07		0.33	(c)		0.18			0.51			(0.33	)		(0.11	)		(0.44	)
Year Ended September 30, 2009	$	11.11		0.36	(c)		1.05			1.41			(0.36	)		(0.09	)		(0.45	)
Year Ended September 30, 2008	$	11.32		0.37	(c)		(0.16	)		0.21			(0.37	)		(0.05	)		(0.42	)
Year Ended September 30, 2007	$	11.39		0.38	(c)		(0.04	)		0.34			(0.39	)		(0.02	)		(0.41	)
Year Ended September 30, 2006	$	11.49		0.40			(0.05	)		0.35			(0.39	)		(0.06	)		(0.45	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.17		0.16	(c)		(0.36	)		(0.20	)		(0.16	)		(0.01	)		(0.17	)
Year Ended September 30, 2010	$	10.04		0.33	(c)		0.15			0.48			(0.33	)		(0.02	)		(0.35	)
Year Ended September 30, 2009	$	9.36		0.33	(c)		0.69			1.02			(0.33	)		(0.01	)		(0.34	)
Year Ended September 30, 2008	$	9.71		0.33	(c)		(0.33	)		—			(0.33	)		(0.02	)		(0.35	)
Year Ended September 30, 2007	$	9.79		0.35	(c)		(0.05	)		0.30			(0.35	)		(0.03	)		(0.38	)
Year Ended September 30, 2006	$	9.85		0.39			(0.02	)		0.37			(0.37	)		(0.06	)		(0.43	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

See accompanying notes to the financial statements.

93

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of  net investment income to average net assets (b)			Ratio of expenses to average net  assets*(b)			Portfolio turnover  rate**(a)
$	10.45		(1.76	)%	$	12,844		0.96	%		2.44	%		1.33	%		44.41	%
$	10.80		5.38	%	$	14,235		0.96	%		2.76	%		1.34	%		83.92	%
$	10.56		8.90	%	$	12,865		0.95	%		3.14	%		1.32	%		47.13	%
$	10.03		5.30	%	$	9,654		0.92	%		4.08	%		1.29	%		116.07	%
$	9.93		4.78	%	$	9,050		0.93	%		4.27	%		1.30	%		85.83	%
$	9.89		3.08	%	$	9,748		0.92	%		4.21	%		1.29	%		127.13	%
$	10.85		(0.19	)%	$	33,218		0.95	%		3.58	%		1.32	%		66.82	%
$	11.32		10.00	%	$	31,465		0.96	%		3.90	%		1.34	%		122.94	%
$	10.78		13.89	%	$	15,760		0.96	%		4.38	%		1.33	%		122.26	%
$	9.88		2.06	%	$	8,700		0.91	%		4.24	%		1.28	%		190.15	%
$	10.12		4.51	%	$	8,403		0.93	%		4.37	%		1.30	%		222.24	%
$	10.12		2.96	%	$	6,407		0.93	%		4.16	%		1.29	%		226.36	%
$	10.37		(2.44	)%	$	8,465		0.93	%		2.79	%		1.33	%		6.93	%
$	10.83		5.25	%	$	8,380		0.94	%		2.76	%		1.40	%		20.68	%
$	10.68		12.71	%	$	6,999		0.92	%		3.18	%		1.37	%		33.56	%
$	9.88		1.34	%	$	5,510		0.89	%		3.13	%		1.34	%		54.22	%
$	10.06		2.66	%	$	4,630		0.90	%		3.19	%		1.35	%		69.73	%
$	10.12		3.67	%	$	2,729		0.91	%		3.02	%		1.37	%		64.55	%
$	10.79		(2.18	)%	$	9,640		0.92	%		2.54	%		1.33	%		12.93	%
$	11.21		4.81	%	$	11,763		0.94	%		2.52	%		1.40	%		12.26	%
$	10.97		13.44	%	$	8,273		0.90	%		2.84	%		1.38	%		37.11	%
$	10.04		1.84	%	$	4,389		0.79	%		3.01	%		1.34	%		108.13	%
$	10.15		3.38	%	$	2,429		0.84	%		3.05	%		1.39	%		136.09	%
$	10.12		3.95	%	$	1,966		0.85	%		2.89	%		1.41	%		219.80	%
$	10.58		(2.08	)%	$	49,219		0.92	%		2.69	%		1.28	%		4.60	%
$	11.01		4.79	%	$	46,560		0.93	%		2.79	%		1.34	%		19.19	%
$	10.87		12.35	%	$	29,765		0.92	%		3.17	%		1.32	%		38.42	%
$	10.09		1.42	%	$	20,971		0.89	%		3.34	%		1.29	%		82.02	%
$	10.33		3.75	%	$	19,668		0.91	%		3.40	%		1.31	%		106.16	%
$	10.38		3.58	%	$	19,163		0.90	%		3.45	%		1.30	%		94.95	%
$	10.52		(2.30	)%	$	15,184		0.95	%		2.46	%		1.31	%		14.28	%
$	10.93		5.25	%	$	15,290		0.98	%		2.81	%		1.39	%		14.60	%
$	10.68		12.78	%	$	11,255		0.98	%		3.18	%		1.38	%		42.06	%
$	9.95		0.94	%	$	7,481		0.96	%		3.28	%		1.36	%		127.76	%
$	10.28		2.91	%	$	3,769		0.93	%		3.34	%		1.35	%		68.69	%
$	10.35		3.27	%	$	4,001		0.93	%		3.30	%		1.35	%		80.24	%
$	11.68		(2.17	)%	$	35,928		0.93	%		2.68	%		1.28	%		9.28	%
$	12.14		4.39	%	$	35,284		0.94	%		2.79	%		1.35	%		9.54	%
$	12.07		13.11	%	$	20,230		0.92	%		3.05	%		1.32	%		35.90	%
$	11.11		1.79	%	$	9,683		0.89	%		3.25	%		1.29	%		53.28	%
$	11.32		3.05	%	$	8,802		0.91	%		3.39	%		1.31	%		85.36	%
$	11.39		3.23	%	$	11,877		0.90	%		3.55	%		1.30	%		76.53	%
$	9.80		(1.97	)%	$	29,880		0.94	%		3.26	%		0.94	%		6.51	%
$	10.17		4.87	%	$	29,858		0.94	%		3.33	%		0.95	%		6.60	%
$	10.04		11.14	%	$	19,518		0.93	%		3.45	%		0.93	%		24.19	%
$	9.36		(0.08	)%	$	16,138		0.91	%		3.41	%		0.91	%		39.13	%
$	9.71		3.12	%	$	16,897		0.91	%		3.61	%		0.91	%		49.60	%
$	9.79		3.85	%	$	15,773		0.90	%		3.80	%		0.90	%		50.14	%

94

Sterling Capital Funds

   Financial Highlights, Class A Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income			Net  realized/ unrealized gains  (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital National Tax-Free Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		0.01	(c)		—	(d)		0.01			(0.01	)		—			(0.01	)
Year Ended September 30, 2008	$	1.00		0.02	(c)		—	(d)		0.02			(0.02	)		—			(0.02	)
Year Ended September 30, 2007	$	1.00		0.03	(c)		—			0.03			(0.03	)		—			(0.03	)
August 1, 2006 to September 30, 2006 (e)	$	1.00		—	(d)		—			—	(d)		—	(d)		—			—	(d)
Sterling Capital Prime Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		0.01	(c)		—	(d)		0.01			(0.01	)		—			(0.01	)
Year Ended September 30, 2008	$	1.00		0.03	(c)		—	(d)		0.03			(0.03	)		—			(0.03	)
Year Ended September 30, 2007	$	1.00		0.04	(c)		—			0.04			(0.04	)		—			(0.04	)
Year Ended September 30, 2006	$	1.00		0.04			—	(d)		0.04			(0.04	)		—			(0.04	)
Sterling Capital U.S. Treasury Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		—	(c)(d)		—			—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2008	$	1.00		0.02	(c)		—	(d)		0.02			(0.02	)		—			(0.02	)
Year Ended September 30, 2007	$	1.00		0.04	(c)		—			0.04			(0.04	)		—			(0.04	)
Year Ended September 30, 2006	$	1.00		0.04			—			0.04			(0.04	)		—			(0.04	)
Sterling Capital Strategic Allocation Conservative Fund(f)
Six Months Ended March 31, 2011 (Unaudited)	$	9.06		0.12	(c)		0.46			0.58			(0.19	)		—			(0.19	)
Year Ended September 30, 2010	$	8.50		0.26	(c)		0.57			0.83			(0.27	)		—			(0.27	)
Year Ended September 30, 2009	$	8.43		0.23	(c)		0.21			0.44			(0.23	)		(0.14	)		(0.37	)
Year Ended September 30, 2008	$	10.53		0.26	(c)		(1.24	)		(0.98	)		(0.39	)		(0.73	)		(1.12	)
Year Ended September 30, 2007	$	9.96		0.34	(c)		0.53			0.87			(0.30	)		—			(0.30	)
Year Ended September 30, 2006	$	9.76		0.31	(c)		0.22			0.53			(0.33	)		—			(0.33	)
Sterling Capital Strategic Allocation Balanced Fund(f)
Six Months Ended March 31, 2011 (Unaudited)	$	8.39		0.09	(c)		0.82			0.91			(0.12	)		—			(0.12	)
Year Ended September 30, 2010	$	7.79		0.18	(c)		0.60			0.78			(0.18	)		—			(0.18	)
Year Ended September 30, 2009	$	7.77		0.16	(c)		0.02			0.18			(0.16	)		—			(0.16	)
Year Ended September 30, 2008	$	10.94		0.17	(c)		(1.86	)		(1.69	)		(0.35	)		(1.13	)		(1.48	)
Year Ended September 30, 2007	$	10.22		0.29	(c)		0.87			1.16			(0.22	)		(0.22	)		(0.44	)
Year Ended September 30, 2006	$	9.79		0.24	(c)		0.45			0.69			(0.26	)		—			(0.26	)
Sterling Capital Strategic Allocation Growth Fund(f)
Six Months Ended March 31, 2011 (Unaudited)	$	7.69		0.07	(c)		0.96			1.03			(0.08	)		—			(0.08	)
Year Ended September 30, 2010	$	7.11		0.13	(c)		0.58			0.71			(0.13	)		—			(0.13	)
Year Ended September 30, 2009	$	7.33		0.12	(c)		(0.22	)		(0.10	)		(0.12	)		—			(0.12	)
Year Ended September 30, 2008	$	11.13		0.11	(c)		(2.21	)		(2.10	)		(0.33	)		(1.37	)		(1.70	)
Year Ended September 30, 2007	$	10.23		0.25	(c)		1.08			1.33			(0.16	)		(0.27	)		(0.43	)
Year Ended September 30, 2006	$	9.68		0.20	(c)		0.56			0.76			(0.21	)		—			(0.21	)
Sterling Capital Strategic Allocation Equity Fund(f)
Six Months Ended March 31, 2011 (Unaudited)	$	7.33		0.05	(c)		1.03			1.08			(0.05	)		—			(0.05	)
Year Ended September 30, 2010	$	6.77		0.10	(c)		0.56			0.66			(0.10	)		—			(0.10	)
Year Ended September 30, 2009	$	7.41		0.07	(c)		(0.65	)		(0.58	)		(0.06	)		—			(0.06	)
Year Ended September 30, 2008	$	12.26		0.04	(c)		(2.76	)		(2.72	)		(0.32	)		(1.81	)		(2.13	)
Year Ended September 30, 2007	$	11.57		0.21	(c)		1.43			1.64			(0.10	)		(0.85	)		(0.95	)
Year Ended September 30, 2006	$	10.95		0.17	(c)		0.83			1.00			(0.19	)		(0.19	)		(0.38	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Period from commencement of operations.

(f) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying notes to the financial statements.

95

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of net investment income to average net assets (b)			Ratio of expenses to average net assets*(b)				Portfolio turnover rate**(a)
$	1.00		0.01	%	$	72		0.43	%		0.01	%		0.99	%			—
$	1.00		0.01	%	$	104		0.42	%		0.01	%		0.99	%			—
$	1.00		0.80	%	$	50		0.69	%		0.67	%		0.99	%			—
$	1.00		2.11	%	$	4		0.66	%		2.48	%		0.96	%			—
$	1.00		3.08	%	$	526		0.66	%		3.06	%		0.97	%			—
$	1.00		0.51	%	$	1		0.62	%		2.96	%		1.26	%			—
																��
$	1.00		0.01	%	$	152,679		0.31	%		0.01	%		1.13	%			—
$	1.00		0.05	%	$	172,643		0.34	%		0.05	%		1.13	%			—
$	1.00		0.53	%	$	270,852		0.96	%		0.78	%		1.16	%			—
$	1.00		2.86	%	$	763,152		0.96	%		2.79	%		1.08	%			—
$	1.00		4.51	%	$	745,381		0.98	%		4.42	%		1.10	%			—
$	1.00		3.86	%	$	636,327		0.98	%		3.83	%		1.09	%			—
$	1.00		0.01	%	$	132,163		0.14	%		0.01	%		1.15	%			—
$	1.00		0.07	%	$	136,205		0.15	%		0.07	%		1.13	%			—
$	1.00		0.03	%	$	168,094		0.33	%		0.03	%		1.13	%			—
$	1.00		1.75	%	$	485,031		0.93	%		1.72	%		1.08	%			—
$	1.00		4.20	%	$	310,413		0.97	%		4.07	%		1.11	%			—
$	1.00		3.64	%	$	167,900		0.96	%		3.63	%		1.09	%			—
$	9.45		6.43	%	$	8,605		0.54	%		2.66	%		0.96	%			6.10	%
$	9.06		9.93	%	$	7,230		0.46	%		3.01	%		0.97	%			33.33	%
$	8.50		5.95	%	$	5,929		0.43	%		2.95	%		0.93	%			21.56	%
$	8.43		(10.33	)%	$	7,573		0.35	%		2.72	%		0.85	%			39.99	%
$	10.53		8.86	%	$	9,781		0.35	%		3.28	%		0.91	%			29.58	%
$	9.96		5.54	%	$	9,365		0.33	%		3.12	%		0.95	%			5.69	%
$	9.18		10.89	%	$	28,946		0.48	%		2.00	%		0.90	%			6.59	%
$	8.39		10.18	%	$	25,419		0.41	%		2.27	%		0.92	%			47.76	%
$	7.79		2.67	%	$	24,426		0.38	%		2.36	%		0.88	%			22.46	%
$	7.77		(17.44	)%	$	27,775		0.35	%		1.82	%		0.85	%			63.63	%
$	10.94		11.48	%	$	38,081		0.36	%		2.68	%		0.92	%			40.05	%
$	10.22		7.10	%	$	33,472		0.35	%		2.44	%		0.97	%			7.33	%
$	8.64		13.37	%	$	19,586		0.49	%		1.61	%		0.91	%			5.37	%
$	7.69		10.13	%	$	17,838		0.42	%		1.81	%		0.93	%			57.35	%
$	7.11		(1.25	)%	$	16,609		0.39	%		1.89	%		0.89	%			24.08	%
$	7.33		(21.65	)%	$	18,321		0.35	%		1.23	%		0.85	%			77.54	%
$	11.13		13.19	%	$	26,189		0.36	%		2.33	%		0.93	%			44.48	%
$	10.23		7.97	%	$	22,801		0.36	%		2.01	%		0.98	%			6.26	%
$	8.36		14.79	%	$	5,927		0.60	%		1.27	%		1.03	%			6.43	%
$	7.33		9.90	%	$	5,148		0.50	%		1.41	%		1.06	%			66.32	%
$	6.77		(7.60	)%	$	4,810		0.46	%		1.23	%		0.97	%			20.24	%
$	7.41		(26.23	)%	$	5,680		0.38	%		0.44	%		0.88	%			67.40	%
$	12.26		14.79	%	$	9,384		0.37	%		1.00	%		0.93	%			48.80	%
$	11.57		9.39	%	$	7,762		0.36	%		1.53	%		0.97	%			1.48	%

96

Sterling Capital Funds

   Financial Highlights, Class B Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)			Net  realized/ unrealized gains  (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Select Equity Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.33		0.01	(c)		1.59			1.60			(0.01	)		—			—			(0.01	)
Year Ended September 30, 2010	$	9.90		0.02	(c)		0.44			0.46			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2009	$	11.11		0.05	(c)		(1.21	)		(1.16	)		(0.05	)		—			—			(0.05	)
Year Ended September 30, 2008	$	18.90		0.04	(c)		(5.05	)		(5.01	)		(0.05	)		(2.73	)		—			(2.78	)
Year Ended September 30, 2007	$	20.15		0.09	(c)		2.12			2.21			(0.11	)		(3.35	)		—			(3.46	)
Year Ended September 30, 2006	$	19.31		0.16	(c)		2.27			2.43			(0.15	)		(1.44	)		—			(1.59	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.52		(0.03	)(c)		2.48			2.45			—			—			—			—
Year Ended September 30, 2010	$	10.35		(0.05	)(c)		1.22			1.17			—	(d)		—			—			—	(d)
Year Ended September 30, 2009	$	10.14		(0.05	)(c)		0.27			0.22			(0.01	)		—			—			(0.01	)
Year Ended September 30, 2008	$	14.55		(0.07	)(c)		(2.98	)		(3.05	)		—			(1.36	)		—			(1.36	)
Year Ended September 30, 2007	$	13.23		(0.07	)(c)		2.08			2.01			—	(d)		(0.69	)		—			(0.69	)
Year Ended September 30, 2006	$	13.16		(0.07	)(c)		1.59			1.52			—	(d)		(1.45	)		—			(1.45	)
Sterling Capital Small Value Fund
Six Months Ended March 31, 2011 (Unaudited)(e)	$	11.17		(0.08	)(c)		3.02			2.94			—			—			—			—
February 1, 2010 to September 30, 2010	$	10.55		(0.02	)(c)		0.64			0.62			—			—			—			—
Sterling Capital International Fund
Six Months Ended March 31, 2011 (Unaudited)	$	4.44		(0.03	)(c)		0.34			0.31			—			—			—			—
Year Ended September 30, 2010	$	4.41		(0.01	)(c)		0.11			0.10			(0.07	)		—			—			(0.07	)
Year Ended September 30, 2009	$	4.75		0.02	(c)		(0.25	)		(0.23	)		(0.11	)		—			—			(0.11	)
Year Ended September 30, 2008	$	7.65		0.02	(c)		(2.16	)		(2.14	)		(0.01	)		(0.75	)		—			(0.76	)
Year Ended September 30, 2007	$	10.46		0.03	(c)		1.72			1.75			(0.04	)		(4.52	)		—			(4.56	)
Year Ended September 30, 2006	$	9.09		0.06	(c)		1.42			1.48			(0.11	)		—			—			(0.11	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2011 (Unaudited)	$	14.97		(0.09	)(c)		2.31			2.22			—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010	$	13.89		(0.16	)(c)		1.24			1.08			—			—			—			—
Year Ended September 30, 2009	$	14.65		(0.05	)(c)		(0.05	)		(0.10	)		—	(d)		(0.57	)		(0.09	)		(0.66	)
Year Ended September 30, 2008	$	17.63		(0.21	)(c)		(2.02	)		(2.23	)		—			(0.75	)		—			(0.75	)
Year Ended September 30, 2007	$	16.00		(0.13	)(c)		3.36			3.23			—			(1.60	)		—			(1.60	)
Year Ended September 30, 2006	$	15.29		(0.16	)		1.66			1.50			—			(0.79	)		—			(0.79	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2011 (Unaudited)	$	13.01		0.06	(c)		1.38			1.44			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2010	$	11.39		0.20	(c)		1.57			1.77			(0.15	)		—			—			(0.15	)
Year Ended September 30, 2009	$	12.31		0.22	(c)		(0.98	)		(0.76	)		(0.13	)		(0.03	)		—			(0.16	)
Year Ended September 30, 2008	$	14.99		0.32	(c)		(2.20	)		(1.88	)		(0.22	)		(0.58	)		—			(0.80	)
Year Ended September 30, 2007	$	13.33		0.25	(c)		2.31			2.56			(0.22	)		(0.68	)		—			(0.90	)
Year Ended September 30, 2006	$	12.08		0.19			1.56			1.75			(0.23	)		(0.27	)		—			(0.50	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.77		0.09	(c)		(0.33	)		(0.24	)		(0.12	)		—			—			(0.12	)
Year Ended September 30, 2010	$	10.52		0.21	(c)		0.28			0.49			(0.24	)		—			—			(0.24	)
Year Ended September 30, 2009	$	10.00		0.25	(c)		0.54			0.79			(0.27	)		—			—			(0.27	)
Year Ended September 30, 2008	$	9.90		0.34	(c)		0.10			0.44			(0.34	)		—			—			(0.34	)
Year Ended September 30, 2007	$	9.86		0.35	(c)		0.04			0.39			(0.35	)		—			—			(0.35	)
Year Ended September 30, 2006	$	9.98		0.34	(c)		(0.12	)		0.22			(0.34	)		—			—			(0.34	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year. (b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method. (d) Amount is less than $0.005.

(d) Amount is less than $0.005.

(e) Period from commencement of operations.

(f) Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 5.50%.

See accompanying notes to the financial statements.

97

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of net investment income (loss) to average net assets (b)			Ratio of expenses to average net assets*(b)			Portfolio turnover rate**(a)
$	11.92		15.53	%	$	2,987		1.83	%		0.22	%		1.97	%		28.08	%
$	10.33		4.64	%	$	3,121		1.83	%		0.17	%		1.98	%		119.85	%
$	9.90		(10.31	)%	$	4,501		1.82	%		0.54	%		1.96	%		92.97	%
$	11.11		(29.98	)%	$	7,866		1.89	%		0.28	%		1.93	%		38.43	%
$	18.90		11.67	%	$	17,796		1.91	%		0.50	%		1.97	%		68.60	%
$	20.15		13.45	%	$	14,808		1.88	%		0.85	%		1.93	%		34.83	%
$	13.97		21.27	%	$	3,998		1.93	%		(0.47	)%		1.97	%		17.16	%
$	11.52		11.32	%	$	3,796		1.94	%		(0.48	)%		2.05	%		45.02	%
$	10.35		2.17	%	$	3,454		1.96	%		(0.60	)%		2.01	%		46.83	%
$	10.14		(22.60	)%	$	4,136		1.89	%		(0.58	)%		1.93	%		65.74	%
$	14.55		15.58	%	$	6,112		1.91	%		(0.48	)%		1.95	%		58.59	%
$	13.23		12.38	%	$	5,391		1.89	%		(0.53	)%		1.93	%		53.92	%
$	14.11		26.32	%	$	984		2.09	%		(1.19	)%		2.19	%		33.31	%
$	11.17		5.88	%(f)	$	932		2.15	%		(0.28	)%		2.41	%		95.89	%
$	4.75		7.22	%	$	777		2.56	%		(1.23	)%		2.71	%		45.32	%
$	4.44		1.93	%	$	810		2.54	%		(0.31	)%		2.96	%		145.31	%
$	4.41		(4.43	)%	$	954		2.49	%		0.58	%		2.64	%		223.19	%
$	4.75		(31.33	)%	$	1,281		2.31	%		0.38	%		2.49	%		112.65	%
$	7.65		19.28	%	$	2,041		2.12	%		0.26	%		2.25	%		129.80	%
$	10.46		16.27	%	$	1,819		2.15	%		0.64	%		2.25	%		36.22	%
$	17.09		14.86	%	$	24,261		2.03	%		(1.09	)%		2.03	%		20.57	%
$	14.97		7.78	%	$	22,538		2.04	%		(1.13	)%		2.05	%		25.65	%
$	13.89		1.04	%	$	24,068		2.03	%		(0.39	)%		2.04	%		45.22	%
$	14.65		(13.28	)%	$	26,347		1.99	%		(1.22	)%		1.99	%		25.80	%
$	17.63		21.33	%	$	29,931		2.03	%		(0.79	)%		2.03	%		49.43	%
$	16.00		10.35	%	$	22,901		2.03	%		(1.01	)%		2.03	%		58.01	%
$	14.42		11.09	%	$	14,508		1.91	%		0.88	%		1.92	%		6.38	%
$	13.01		15.59	%	$	13,959		1.94	%		1.67	%		1.94	%		21.63	%
$	11.39		(6.05	)%	$	13,567		1.93	%		2.18	%		1.95	%		37.13	%
$	12.31		(13.14	)%	$	15,176		1.89	%		2.35	%		1.89	%		30.01	%
$	14.99		19.97	%	$	14,796		1.94	%		1.78	%		1.94	%		37.85	%
$	13.33		14.84	%	$	9,592		1.95	%		1.52	%		1.95	%		45.38	%
$	10.41		(2.23	)%	$	1,961		1.71	%		1.70	%		1.83	%		44.41	%
$	10.77		4.71	%	$	2,690		1.71	%		1.99	%		1.84	%		83.92	%
$	10.52		8.01	%	$	3,256		1.70	%		2.42	%		1.82	%		47.13	%
$	10.00		4.52	%	$	3,070		1.67	%		3.34	%		1.79	%		116.07	%
$	9.90		4.01	%	$	3,006		1.68	%		3.52	%		1.80	%		85.83	%
$	9.86		2.32	%	$	4,020		1.68	%		3.48	%		1.79	%		127.13	%

98

Sterling Capital Funds

   Financial Highlights, Class B Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.33		0.16	(c)		(0.23	)		(0.07	)		(0.19	)		(0.21	)		(0.40	)
Year Ended September 30, 2010	$	10.78		0.35	(c)		0.62			0.97			(0.41	)		(0.01	)		(0.42	)
Year Ended September 30, 2009	$	9.89		0.37	(c)		0.89			1.26			(0.37	)		—			(0.37	)
Year Ended September 30, 2008	$	10.13		0.36	(c)		(0.22	)		0.14			(0.38	)		—			(0.38	)
Year Ended September 30, 2007	$	10.13		0.37	(c)		—			0.37			(0.37	)		—			(0.37	)
Year Ended September 30, 2006	$	10.32		0.34	(c)		(0.12	)		0.22			(0.36	)		(0.05	)		(0.41	)
Sterling Capital Prime Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2008	$	1.00		0.02	(c)		—	(d)		0.02			(0.02	)		—			(0.02	)
Year Ended September 30, 2007	$	1.00		0.04	(c)		—			0.04			(0.04	)		—			(0.04	)
Year Ended September 30, 2006	$	1.00		0.03			—	(d)		0.03			(0.03	)		—			(0.03	)
Sterling Capital U.S. Treasury Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		—	(c)(d)		—			—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2008	$	1.00		0.01	(c)		—	(d)		0.01			(0.01	)		—			(0.01	)
Year Ended September 30, 2007	$	1.00		0.04	(c)		—			0.04			(0.04	)		—			(0.04	)
Year Ended September 30, 2006	$	1.00		0.03			—			0.03			(0.03	)		—			(0.03	)
Sterling Capital Strategic Allocation Conservative Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	9.07		0.09	(c)		0.45			0.54			(0.15	)		—			(0.15	)
Year Ended September 30, 2010	$	8.50		0.20	(c)		0.57			0.77			(0.20	)		—			(0.20	)
Year Ended September 30, 2009	$	8.43		0.17	(c)		0.21			0.38			(0.17	)		(0.14	)		(0.31	)
Year Ended September 30, 2008	$	10.54		0.19	(c)		(1.25	)		(1.06	)		(0.32	)		(0.73	)		(1.05	)
Year Ended September 30, 2007	$	9.96		0.27	(c)		0.54			0.81			(0.23	)		—			(0.23	)
Year Ended September 30, 2006	$	9.76		0.23	(c)		0.23			0.46			(0.26	)		—			(0.26	)
Sterling Capital Strategic Allocation Balanced Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	8.22		0.05	(c)		0.81			0.86			(0.09	)		—			(0.09	)
Year Ended September 30, 2010	$	7.63		0.12	(c)		0.59			0.71			(0.12	)		—			(0.12	)
Year Ended September 30, 2009	$	7.62		0.11	(c)		0.01			0.12			(0.11	)		—			(0.11	)
Year Ended September 30, 2008	$	10.75		0.10	(c)		(1.81	)		(1.71	)		(0.29	)		(1.13	)		(1.42	)
Year Ended September 30, 2007	$	10.05		0.21	(c)		0.85			1.06			(0.14	)		(0.22	)		(0.36	)
Year Ended September 30, 2006	$	9.64		0.17	(c)		0.42			0.59			(0.18	)		—			(0.18	)
Sterling Capital Strategic Allocation Growth Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	7.51		0.03	(c)		0.94			0.97			(0.05	)		—			(0.05	)
Year Ended September 30, 2010	$	6.95		0.08	(c)		0.56			0.64			(0.08	)		—			(0.08	)
Year Ended September 30, 2009	$	7.17		0.07	(c)		(0.22	)		(0.15	)		(0.07	)		—			(0.07	)
Year Ended September 30, 2008	$	10.92		0.04	(c)		(2.15	)		(2.11	)		(0.27	)		(1.37	)		(1.64	)
Year Ended September 30, 2007	$	10.05		0.18	(c)		1.04			1.22			(0.08	)		(0.27	)		(0.35	)
Year Ended September 30, 2006	$	9.51		0.12	(c)		0.56			0.68			(0.14	)		—			(0.14	)
Sterling Capital Strategic Allocation Equity Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	7.01		0.02	(c)		0.99			1.01			(0.04	)		—			(0.04	)
Year Ended September 30, 2010	$	6.45		0.04	(c)		0.55			0.59			(0.03	)		—			(0.03	)
Year Ended September 30, 2009	$	7.09		0.03	(c)		(0.62	)		(0.59	)		(0.05	)		—			(0.05	)
Year Ended September 30, 2008	$	11.86		(0.03	)(c)		(2.65	)		(2.68	)		(0.28	)		(1.81	)		(2.09	)
Year Ended September 30, 2007	$	11.26		0.12	(c)		1.38			1.50			(0.05	)		(0.85	)		(0.90	)
Year Ended September 30, 2006	$	10.67		0.09	(c)		0.80			0.89			(0.11	)		(0.19	)		(0.30	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying notes to the financial statements.

99

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of  net investment income (loss) to average net assets (b)			Ratio of expenses to average net assets*(b)			Portfolio turnover rate**(a)
$	10.86		(0.56	)%	$	4,207		1.70	%		2.84	%		1.83	%		66.82	%
$	11.33		9.18	%	$	4,762		1.71	%		3.21	%		1.83	%		122.94	%
$	10.78		13.03	%	$	5,362		1.71	%		3.62	%		1.83	%		122.26	%
$	9.89		1.31	%	$	4,951		1.66	%		3.49	%		1.78	%		190.15	%
$	10.13		3.73	%	$	4,992		1.68	%		3.62	%		1.80	%		222.24	%
$	10.13		2.27	%	$	4,872		1.68	%		3.39	%		1.79	%		226.36	%
$	1.00		0.01	%	$	1,131		0.32	%		0.01	%		1.64	%		—
$	1.00		0.05	%	$	1,494		0.34	%		0.05	%		1.63	%		—
$	1.00		0.34	%	$	1,901		1.13	%		0.33	%		1.66	%		—
$	1.00		2.35	%	$	1,767		1.46	%		2.26	%		1.58	%		—
$	1.00		4.01	%	$	1,629		1.48	%		3.92	%		1.60	%		—
$	1.00		3.37	%	$	2,256		1.48	%		3.34	%		1.59	%		—
$	1.00		0.01	%	$	637		0.14	%		0.01	%		1.65	%		—
$	1.00		0.07	%	$	671		0.15	%		0.06	%		1.64	%		—
$	1.00		0.03	%	$	935		0.28	%		0.02	%		1.64	%		—
$	1.00		1.28	%	$	597		1.38	%		1.14	%		1.58	%		—
$	1.00		3.72	%	$	301		1.46	%		3.64	%		1.60	%		—
$	1.00		3.12	%	$	381		1.46	%		2.97	%		1.59	%		—
$	9.46		6.02	%	$	2,352		1.28	%		1.91	%		1.46	%		6.10	%
$	9.07		9.15	%	$	2,403		1.21	%		2.25	%		1.47	%		33.33	%
$	8.50		5.15	%	$	3,184		1.18	%		2.20	%		1.43	%		21.56	%
$	8.43		(11.09	)%	$	4,081		1.10	%		1.98	%		1.35	%		39.99	%
$	10.54		8.17	%	$	4,779		1.10	%		2.60	%		1.41	%		29.58	%
$	9.96		4.75	%	$	4,968		1.08	%		2.37	%		1.45	%		5.69	%
$	8.99		10.45	%	$	9,040		1.23	%		1.26	%		1.40	%		6.59	%
$	8.22		9.40	%	$	9,771		1.16	%		1.48	%		1.41	%		47.76	%
$	7.63		1.81	%	$	11,734		1.13	%		1.63	%		1.38	%		22.46	%
$	7.62		(17.99	)%	$	15,305		1.10	%		1.07	%		1.35	%		63.63	%
$	10.75		10.67	%	$	21,791		1.11	%		1.96	%		1.42	%		40.05	%
$	10.05		6.21	%	$	21,610		1.10	%		1.70	%		1.47	%		7.33	%
$	8.43		12.97	%	$	7,957		1.24	%		0.85	%		1.41	%		5.37	%
$	7.51		9.22	%	$	8,275		1.17	%		1.05	%		1.43	%		57.35	%
$	6.95		(1.89	)%	$	9,973		1.15	%		1.17	%		1.40	%		24.08	%
$	7.17		(22.32	)%	$	13,306		1.10	%		0.47	%		1.35	%		77.54	%
$	10.92		12.31	%	$	20,286		1.11	%		1.71	%		1.43	%		44.48	%
$	10.05		7.22	%	$	19,366		1.11	%		1.27	%		1.48	%		6.26	%
$	7.98		14.40	%	$	3,850		1.34	%		0.53	%		1.52	%		6.43	%
$	7.01		9.17	%	$	3,673		1.25	%		0.63	%		1.55	%		66.32	%
$	6.45		(8.38	)%	$	4,215		1.21	%		0.50	%		1.47	%		20.24	%
$	7.09		(26.69	)%	$	5,406		1.13	%		(0.31	)%		1.38	%		67.40	%
$	11.86		13.88	%	$	8,535		1.12	%		1.07	%		1.43	%		48.80	%
$	11.26		8.51	%	$	8,023		1.11	%		0.80	%		1.47	%		1.48	%

100

Sterling Capital Funds

   Financial Highlights, Class C Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)			Net  realized/ unrealized gains  (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Select Equity Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.28		0.01	(c)		1.58			1.59			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2010	$	9.85		0.02	(c)		0.45			0.47			(0.04	)		—			—			(0.04	)
Year Ended September 30, 2009	$	11.08		0.04	(c)		(1.21	)		(1.17	)		(0.06	)		—			—			(0.06	)
Year Ended September 30, 2008	$	18.87		0.04	(c)		(5.05	)		(5.01	)		(0.05	)		(2.73	)		—			(2.78	)
Year Ended September 30, 2007	$	20.11		0.09	(c)		2.13			2.22			(0.11	)		(3.35	)		—			(3.46	)
Year Ended September 30, 2006	$	19.28		0.16	(c)		2.26			2.42			(0.15	)		(1.44	)		—			(1.59	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.50		(0.03	)(c)		2.47			2.44			—			—			—			—
Year Ended September 30, 2010	$	10.34		(0.05	)(c)		1.21			1.16			—	(d)		—			—			—	(d)
Year Ended September 30, 2009	$	10.14		(0.05	)(c)		0.26			0.21			(0.01	)		—			—			(0.01	)
Year Ended September 30, 2008	$	14.55		(0.07	)(c)		(2.98	)		(3.05	)		—			(1.36	)		—			(1.36	)
Year Ended September 30, 2007	$	13.23		(0.07	)(c)		2.08			2.01			—	(d)		(0.69	)		—			(0.69	)
Year Ended September 30, 2006	$	13.16		(0.07	)(c)		1.59			1.52			—	(d)		(1.45	)		—			(1.45	)
Sterling Capital Small Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.17		(0.08	)(c)		3.02			2.94			—			—			—			—
February 1, 2010 to September 30, 2010(e)	$	10.55		(0.01	)(c)		0.64			0.63			(0.01	)		—			—			(0.01	)
Sterling Capital International Fund
Six Months Ended March 31, 2011 (Unaudited)	$	4.42		(0.03	)(c)		0.34			0.31			—			—			—			—
Year Ended September 30, 2010	$	4.38		(0.01	)(c)		0.10			0.09			(0.05	)		—			—			(0.05	)
Year Ended September 30, 2009	$	4.73		0.02	(c)		(0.26	)		(0.24	)		(0.11	)		—			—			(0.11	)
Year Ended September 30, 2008	$	7.62		0.03	(c)		(2.16	)		(2.13	)		(0.01	)		(0.75	)		—			(0.76	)
Year Ended September 30, 2007	$	10.44		0.01	(c)		1.73			1.74			(0.04	)		(4.52	)		—			(4.56	)
Year Ended September 30, 2006	$	9.07		0.05	(c)		1.42			1.47			(0.10	)		—			—			(0.10	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2011 (Unaudited)	$	14.98		(0.09	)(c)		2.31			2.22			—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010	$	13.89		(0.16	)(c)		1.25			1.09			—			—			—			—
Year Ended September 30, 2009	$	14.66		(0.06	)(c)		(0.05	)		(0.11	)		—	(d)		(0.57	)		(0.09	)		(0.66	)
Year Ended September 30, 2008	$	17.64		(0.21	)(c)		(2.02	)		(2.23	)		—			(0.75	)		—			(0.75	)
Year Ended September 30, 2007	$	16.01		(0.13	)(c)		3.36			3.23			—			(1.60	)		—			(1.60	)
Year Ended September 30, 2006	$	15.30		(0.14	)		1.64			1.50			—			(0.79	)		—			(0.79	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2011 (Unaudited)	$	12.98		0.06	(c)		1.38			1.44			(0.04	)		—			—			(0.04	)
Year Ended September 30, 2010	$	11.37		0.21	(c)		1.56			1.77			(0.16	)		—			—			(0.16	)
Year Ended September 30, 2009	$	12.30		0.22	(c)		(0.99	)		(0.77	)		(0.13	)		(0.03	)		—			(0.16	)
Year Ended September 30, 2008	$	14.98		0.33	(c)		(2.21	)		(1.88	)		(0.22	)		(0.58	)		—			(0.80	)
Year Ended September 30, 2007	$	13.32		0.26	(c)		2.30			2.56			(0.22	)		(0.68	)		—			(0.90	)
Year Ended September 30, 2006	$	12.07		0.19			1.56			1.75			(0.23	)		(0.27	)		—			(0.50	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.79		0.09	(c)		(0.32	)		(0.23	)		(0.12	)		—			—			(0.12	)
Year Ended September 30, 2010	$	10.53		0.21	(c)		0.29			0.50			(0.24	)		—			—			(0.24	)
Year Ended September 30, 2009	$	10.01		0.24	(c)		0.55			0.79			(0.27	)		—			—			(0.27	)
Year Ended September 30, 2008	$	9.90		0.34	(c)		0.12			0.46			(0.35	)		—			—			(0.35	)
Year Ended September 30, 2007	$	9.86		0.35	(c)		0.04			0.39			(0.35	)		—			—			(0.35	)
Year Ended September 30, 2006	$	9.98		0.34	(c)		(0.12	)		0.22			(0.34	)		—			—			(0.34	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Period from commencement of operations.

(f) Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 5.55%.

See accompanying notes to the financial statements.

101

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of  net investment income (loss) to average net assets (b)			Ratio of expenses to average net  assets*(b)			Portfolio turnover  rate**(a)
$	11.84		15.44	%	$	284		1.85	%		0.19	%		2.00	%		28.08	%
$	10.28		4.75	%	$	110		1.84	%		0.23	%		1.99	%		119.85	%
$	9.85		(10.43	)%	$	93		1.81	%		0.49	%		1.95	%		92.97	%
$	11.08		(30.00	)%	$	143		1.89	%		0.28	%		1.94	%		38.43	%
$	18.87		11.76	%	$	239		1.91	%		0.50	%		1.97	%		68.60	%
$	20.11		13.42	%	$	161		1.88	%		0.82	%		1.94	%		34.83	%
$	13.94		21.22	%	$	572		1.93	%		(0.43	)%		1.97	%		17.16	%
$	11.50		11.26	%	$	436		1.95	%		(0.42	)%		2.06	%		45.02	%
$	10.34		2.08	%	$	176		1.96	%		(0.59	)%		2.01	%		46.83	%
$	10.14		(22.59	)%	$	328		1.89	%		(0.60	)%		1.93	%		65.74	%
$	14.55		15.60	%	$	1,126		1.91	%		(0.49	)%		1.95	%		58.59	%
$	13.23		12.38	%	$	743		1.89	%		(0.53	)%		1.93	%		53.92	%
$	14.11		26.32	%	$	90		2.09	%		(1.21	)%		2.20	%		33.31	%
$	11.17		5.93	%(f)	$	57		2.16	%		(0.11	)%		2.38	%		95.89	%
$	4.73		7.01	%	$	145		2.55	%		(1.26	)%		2.70	%		45.32	%
$	4.42		2.12	%	$	169		2.54	%		(0.25	)%		2.99	%		145.31	%
$	4.38		(4.66	)%	$	166		2.49	%		0.60	%		2.63	%		223.19	%
$	4.73		(31.30	)%	$	172		2.31	%		0.48	%		2.50	%		112.65	%
$	7.62		19.28	%	$	244		2.13	%		0.12	%		2.26	%		129.80	%
$	10.44		16.26	%	$	188		2.15	%		0.47	%		2.25	%		36.22	%
$	17.10		14.85	%	$	87,019		2.03	%		(1.08	)%		2.03	%		20.57	%
$	14.98		7.85	%	$	73,282		2.04	%		(1.12	)%		2.05	%		25.65	%
$	13.89		0.97	%	$	58,479		2.03	%		(0.51	)%		2.04	%		45.22	%
$	14.66		(13.27	)%	$	50,230		1.99	%		(1.23	)%		1.99	%		25.80	%
$	17.64		21.32	%	$	50,577		2.03	%		(0.79	)%		2.03	%		49.43	%
$	16.01		10.34	%	$	34,418		2.03	%		(1.02	)%		2.03	%		58.01	%
$	14.38		11.07	%	$	95,966		1.92	%		0.91	%		1.92	%		6.38	%
$	12.98		15.62	%	$	69,549		1.94	%		1.69	%		1.95	%		21.63	%
$	11.37		(6.10	)%	$	39,164		1.93	%		2.18	%		1.95	%		37.13	%
$	12.30		(13.07	)%	$	32,637		1.89	%		2.39	%		1.89	%		30.01	%
$	14.98		19.93	%	$	26,044		1.94	%		1.79	%		1.94	%		37.85	%
$	13.32		14.85	%	$	14,261		1.95	%		1.52	%		1.95	%		45.38	%
$	10.44		(2.13	)%	$	587		1.71	%		1.68	%		1.83	%		44.41	%
$	10.79		4.80	%	$	536		1.71	%		2.00	%		1.84	%		83.92	%
$	10.53		8.00	%	$	426		1.70	%		2.31	%		1.82	%		47.13	%
$	10.01		4.62	%	$	176		1.67	%		3.33	%		1.79	%		116.07	%
$	9.90		4.01	%	$	201		1.68	%		3.52	%		1.80	%		85.83	%
$	9.86		2.31	%	$	207		1.68	%		3.47	%		1.79	%		127.13	%

102

Sterling Capital Funds

   Financial Highlights, Class C Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.34		0.16	(c)		(0.24	)		(0.08	)		(0.19	)		(0.21	)		(0.40	)
Year Ended September 30, 2010	$	10.79		0.34	(c)		0.63			0.97			(0.41	)		(0.01	)		(0.42	)
Year Ended September 30, 2009	$	9.89		0.37	(c)		0.90			1.27			(0.37	)		—			(0.37	)
Year Ended September 30, 2008	$	10.14		0.36	(c)		(0.23	)		0.13			(0.38	)		—			(0.38	)
Year Ended September 30, 2007	$	10.13		0.37	(c)		0.01			0.38			(0.37	)		—			(0.37	)
Year Ended September 30, 2006	$	10.32		0.34	(c)		(0.12	)		0.22			(0.36	)		(0.05	)		(0.41	)
Sterling Capital Prime Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2008	$	1.00		0.02	(c)		—	(d)		0.02			(0.02	)		—			(0.02	)
Year Ended September 30, 2007	$	1.00		0.04	(c)		—			0.04			(0.04	)		—			(0.04	)
Year Ended September 30, 2006	$	1.00		0.03			—	(d)		0.03			(0.03	)		—			(0.03	)
Sterling Capital U.S. Treasury Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010	$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009	$	1.00		—	(c)(d)		—			—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2008	$	1.00		0.01	(c)		—	(d)		0.01			(0.01	)		—			(0.01	)
Year Ended September 30, 2007	$	1.00		0.04	(c)		—			0.04			(0.04	)		—			(0.04	)
Year Ended September 30, 2006	$	1.00		0.03			—			0.03			(0.03	)		—			(0.03	)
Sterling Capital Strategic Allocation Conservative Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	9.03		0.09	(c)		0.45			0.54			(0.16	)		—			(0.16	)
Year Ended September 30, 2010	$	8.47		0.20	(c)		0.57			0.77			(0.21	)		—			(0.21	)
Year Ended September 30, 2009	$	8.41		0.17	(c)		0.21			0.38			(0.18	)		(0.14	)		(0.32	)
Year Ended September 30, 2008	$	10.51		0.19	(c)		(1.24	)		(1.05	)		(0.32	)		(0.73	)		(1.05	)
Year Ended September 30, 2007	$	9.93		0.27	(c)		0.53			0.80			(0.22	)		—			(0.22	)
Year Ended September 30, 2006	$	9.73		0.23	(c)		0.23			0.46			(0.26	)		—			(0.26	)
Sterling Capital Strategic Allocation Balanced Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	8.26		0.06	(c)		0.79			0.85			(0.09	)		—			(0.09	)
Year Ended September 30, 2010	$	7.68		0.12	(c)		0.59			0.71			(0.13	)		—			(0.13	)
Year Ended September 30, 2009	$	7.67		0.11	(c)		0.01			0.12			(0.11	)		—			(0.11	)
Year Ended September 30, 2008	$	10.81		0.09	(c)		(1.82	)		(1.73	)		(0.28	)		(1.13	)		(1.41	)
Year Ended September 30, 2007	$	10.10		0.21	(c)		0.86			1.07			(0.14	)		(0.22	)		(0.36	)
Year Ended September 30, 2006	$	9.69		0.17	(c)		0.42			0.59			(0.18	)		—			(0.18	)
Sterling Capital Strategic Allocation Growth Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	7.50		0.04	(c)		0.92			0.96			(0.05	)		—			(0.05	)
Year Ended September 30, 2010	$	6.94		0.08	(c)		0.56			0.64			(0.08	)		—			(0.08	)
Year Ended September 30, 2009	$	7.17		0.07	(c)		(0.22	)		(0.15	)		(0.08	)		—			(0.08	)
Year Ended September 30, 2008	$	10.92		0.04	(c)		(2.15	)		(2.11	)		(0.27	)		(1.37	)		(1.64	)
Year Ended September 30, 2007	$	10.05		0.18	(c)		1.04			1.22			(0.08	)		(0.27	)		(0.35	)
Year Ended September 30, 2006	$	9.52		0.11	(c)		0.57			0.68			(0.15	)		—			(0.15	)
Sterling Capital Strategic Allocation Equity Fund(e)
Six Months Ended March 31, 2011 (Unaudited)	$	6.98		0.02	(c)		0.99			1.01			(0.04	)		—			(0.04	)
Year Ended September 30, 2010	$	6.47		0.04	(c)		0.54			0.58			(0.07	)		—			(0.07	)
Year Ended September 30, 2009	$	7.10		0.02	(c)		(0.60	)		(0.58	)		(0.05	)		—			(0.05	)
Year Ended September 30, 2008	$	11.87		(0.03	)(c)		(2.66	)		(2.69	)		(0.27	)		(1.81	)		(2.08	)
Year Ended September 30, 2007	$	11.22		0.12	(c)		1.41			1.53			(0.03	)		(0.85	)		(0.88	)
Year Ended September 30, 2006	$	10.64		0.10	(c)		0.78			0.88			(0.11	)		(0.19	)		(0.30	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year. (b) Annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying notes to the financial statements.

103

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales  charge) (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of net investment income (loss) to average net assets (b)			Ratio of expenses to average net assets* (b)			Portfolio turnover rate** (a)
$	10.86		(0.65	)%	$	2,733		1.71	%		2.83	%		1.83	%		66.82	%
$	11.34		9.18	%	$	2,140		1.71	%		3.09	%		1.85	%		122.94	%
$	10.79		13.14	%	$	400		1.71	%		3.61	%		1.83	%		122.26	%
$	9.89		1.21	%	$	184		1.66	%		3.49	%		1.78	%		190.15	%
$	10.14		3.83	%	$	115		1.68	%		3.61	%		1.80	%		222.24	%
$	10.13		2.18	%	$	116		1.68	%		3.35	%		1.79	%		226.36	%
$	1.00		0.01	%	$	594		0.31	%		0.01	%		1.64	%		—
$	1.00		0.05	%	$	479		0.35	%		0.04	%		1.64	%		—
$	1.00		0.34	%	$	893		1.10	%		0.24	%		1.66	%		—
$	1.00		2.36	%	$	244		1.46	%		2.46	%		1.59	%		—
$	1.00		3.99	%	$	460		1.48	%		3.91	%		1.59	%		—
$	1.00		3.35	%	$	393		1.48	%		3.35	%		1.59	%		—
$	1.00		0.01	%	$	79		0.14	%		0.01	%		1.65	%		—
$	1.00		0.07	%	$	94		0.16	%		0.10	%		1.63	%		—
$	1.00		0.04	%	$	54		0.28	%		0.03	%		1.64	%		—
$	1.00		1.29	%	$	37		1.38	%		1.30	%		1.58	%		—
$	1.00		3.68	%	$	42		1.47	%		3.63	%		1.61	%		—
$	1.00		3.13	%	$	55		1.45	%		3.30	%		1.59	%		—
$	9.41		5.97	%	$	159		1.29	%		1.89	%		1.46	%		6.10	%
$	9.03		9.17	%	$	127		1.21	%		2.28	%		1.47	%		33.33	%
$	8.47		5.09	%	$	101		1.17	%		2.19	%		1.43	%		21.56	%
$	8.41		(10.99	)%	$	94		1.10	%		1.99	%		1.35	%		39.99	%
$	10.51		8.11	%	$	77		1.10	%		2.58	%		1.41	%		29.58	%
$	9.93		4.75	%	$	127		1.08	%		2.35	%		1.45	%		5.69	%
$	9.02		10.37	%	$	297		1.24	%		1.34	%		1.40	%		6.59	%
$	8.26		9.34	%	$	186		1.16	%		1.49	%		1.42	%		47.76	%
$	7.68		1.85	%	$	89		1.13	%		1.58	%		1.38	%		22.46	%
$	7.67		(18.02	)%	$	79		1.10	%		1.04	%		1.35	%		63.63	%
$	10.81		10.72	%	$	156		1.11	%		1.98	%		1.42	%		40.05	%
$	10.10		6.19	%	$	139		1.10	%		1.71	%		1.47	%		7.33	%
$	8.41		12.88	%	$	211		1.25	%		0.88	%		1.42	%		5.37	%
$	7.50		9.33	%	$	157		1.17	%		1.07	%		1.43	%		57.35	%
$	6.94		(1.90	)%	$	99		1.14	%		1.13	%		1.39	%		24.08	%
$	7.17		(22.31	)%	$	55		1.10	%		0.49	%		1.35	%		77.54	%
$	10.92		12.33	%	$	78		1.11	%		1.74	%		1.43	%		44.48	%
$	10.05		7.19	%	$	61		1.11	%		1.17	%		1.46	%		6.26	%
$	7.95		14.48	%	$	25		1.37	%		0.50	%		1.54	%		6.43	%
$	6.98		9.02	%	$	17		1.22	%		0.58	%		1.54	%		66.32	%
$	6.47		(8.11	)%	$	6		1.13	%		0.35	%		1.36	%		20.24	%
$	7.10		(26.77	)%	$	1		1.13	%		(0.32	)%		1.43	%		67.40	%
$	11.87		14.13	%	$	1		1.00	%		1.02	%		1.25	%		48.80	%
$	11.22		8.44	%	$	10		1.11	%		0.90	%		1.48	%		1.48	%

104

Sterling Capital Funds

   Financial Highlights, Institutional Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Select Equity Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.57		0.07	(c)		1.62			1.69			(0.07	)		—			—			(0.07	)
Year Ended September 30, 2010	$	10.13		0.13	(c)		0.45			0.58			(0.14	)		—			—			(0.14	)
Year Ended September 30, 2009	$	11.36		0.13	(c)		(1.22	)		(1.09	)		(0.14	)		—			—			(0.14	)
Year Ended September 30, 2008	$	19.20		0.18	(c)		(5.16	)		(4.98	)		(0.13	)		(2.73	)		—			(2.86	)
Year Ended September 30, 2007	$	20.38		0.29	(c)		2.16			2.45			(0.28	)		(3.35	)		—			(3.63	)
Year Ended September 30, 2006	$	19.51		0.35	(c)		2.31			2.66			(0.35	)		(1.44	)		—			(1.79	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	12.14		0.04	(c)		2.61			2.65			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2010	$	10.86		0.07	(c)		1.27			1.34			(0.06	)		—			—			(0.06	)
Year Ended September 30, 2009	$	10.56		0.04	(c)		0.29			0.33			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2008	$	15.00		0.05	(c)		(3.10	)		(3.05	)		(0.03	)		(1.36	)		—			(1.39	)
Year Ended September 30, 2007	$	13.54		0.08	(c)		2.13			2.21			(0.06	)		(0.69	)		—			(0.75	)
Year Ended September 30, 2006	$	13.38		0.06	(c)		1.62			1.68			(0.07	)		(1.45	)		—			(1.52	)
Sterling Capital Small Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.19		(0.01	)(c)		3.03			3.02			—			—			—			—
Year Ended September 30, 2010	$	10.27		0.06	(c)		0.92			0.98			(0.06	)		—			—			(0.06	)
Year Ended September 30, 2009	$	9.89		0.02	(c)		0.65			0.67			—			(0.29	)		—			(0.29	)
Year Ended September 30, 2008	$	14.68		—	(c)(e)		(2.24	)		(2.24	)		—			(2.55	)		—			(2.55	)
Period Ended September 30, 2007(f)	$	18.36		(0.01	)(c)		0.68			0.67			—			(4.35	)		—			(4.35	)
Year Ended October 31, 2006	$	18.22		(0.04	)(c)		3.09			3.05			(0.02	)		(2.89	)		—			(2.91	)
Year Ended October 31, 2005	$	18.33		0.01	(c)		1.61			1.62			—			(1.73	)		—			(1.73	)
Sterling Capital International Fund
Six Months Ended March 31, 2011 (Unaudited)	$	5.19		(0.01	)(c)		0.41			0.40			—			—			—			—
Year Ended September 30, 2010	$	5.14		0.04	(c)		0.12			0.16			(0.11	)		—			—			(0.11	)
Year Ended September 30, 2009	$	5.47		0.07	(c)		(0.28	)		(0.21	)		(0.12	)		—			—			(0.12	)
Year Ended September 30, 2008	$	8.64		0.10	(c)		(2.49	)		(2.39	)		(0.03	)		(0.75	)		—			(0.78	)
Year Ended September 30, 2007	$	11.23		0.14	(c)		1.88			2.02			(0.09	)		(4.52	)		—			(4.61	)
Year Ended September 30, 2006	$	9.72		0.18	(c)		1.50			1.68			(0.17	)		—			—			(0.17	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2011 (Unaudited)	$	16.25		(0.01	)(c)		2.51			2.50			—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010	$	14.92		(0.02	)(c)		1.35			1.33			—			—			—			—
Year Ended September 30, 2009	$	15.58		0.04	(c)		(0.01	)		0.03			—	(e)		(0.58	)		(0.11	)		(0.69	)
Year Ended September 30, 2008	$	18.51		(0.04	)(c)		(2.14	)		(2.18	)		—			(0.75	)		—			(0.75	)
Year Ended September 30, 2007	$	16.57		0.03	(c)		3.51			3.54			—			(1.60	)		—			(1.60	)
Year Ended September 30, 2006	$	15.65		—	(e)		1.71			1.71			—			(0.79	)		—			(0.79	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2011 (Unaudited)	$	13.07		0.13	(c)		1.39			1.52			(0.10	)		—			—			(0.10	)
Year Ended September 30, 2010	$	11.44		0.33	(c)		1.57			1.90			(0.27	)		—			—			(0.27	)
Year Ended September 30, 2009	$	12.37		0.32	(c)		(0.99	)		(0.67	)		(0.23	)		(0.03	)		—			(0.26	)
Year Ended September 30, 2008	$	15.05		0.51	(c)		(2.26	)		(1.75	)		(0.35	)		(0.58	)		—			(0.93	)
Year Ended September 30, 2007	$	13.37		0.40	(c)		2.31			2.71			(0.35	)		(0.68	)		—			(1.03	)
Year Ended September 30, 2006	$	12.10		0.32			1.57			1.89			(0.35	)		(0.27	)		—			(0.62	)
Sterling Capital Short-Term Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	9.68		0.08	(c)		(0.10	)		(0.02	)		(0.13	)		—			—			(0.13	)
Year Ended September 30, 2010	$	9.67		0.19	(c)		0.09			0.28			(0.27	)		—			—			(0.27	)
Year Ended September 30, 2009	$	9.54		0.25	(c)		0.22			0.47			(0.34	)		—			—			(0.34	)
Year Ended September 30, 2008	$	9.53		0.35	(c)		0.06			0.41			(0.40	)		—			—			(0.40	)
Year Ended September 30, 2007	$	9.49		0.38	(c)		0.08			0.46			(0.42	)		—			—			(0.42	)
Year Ended September 30, 2006	$	9.51		0.30	(c)		0.01	(h)		0.31			(0.33	)		—			—			(0.33	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year. (b) Annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 9.10%.

(e) Amount is less than $0.005.

(f) The Fund’s fiscal year-end changed from October 31 to September 30, effective September 30, 2007.

(g) The performance information for the Institutional Shares prior to December 18, 2006 is based on the performances of the Institutional Shares of the Fund’s predecessor, Sterling Capital Small Value Fund, a series of The Advisor’s Inner Circle Fund which transferred all of its assets and liabilities to the Fund pursuant to a reorganization.

(h) The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period.

See accompanying notes to the financial statements.

105

		Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (a)			Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)			Ratio of net investment income (loss) to average net assets (b)			Ratio of expenses to average net assets*(b)			Portfolio turnover rate**(a)
$	12.19		16.03	%	$	203,790		0.83	%		1.22	%		0.97	%		28.08	%
$	10.57		5.71	%	$	183,791		0.84	%		1.23	%		0.99	%		119.85	%
$	10.13		(9.40	)%	$	177,725		0.81	%		1.51	%		0.95	%		92.97	%
$	11.36		(29.32	)%	$	257,036		0.89	%		1.28	%		0.94	%		38.43	%
$	19.20		12.89	%	$	602,101		0.91	%		1.50	%		0.96	%		68.60	%
$	20.38		14.59	%	$	660,667		0.89	%		1.80	%		0.93	%		34.83	%
$	14.76		21.84	%	$	373,919		0.93	%		0.56	%		0.97	%		17.16	%
$	12.14		12.39	%	$	319,451		0.94	%		0.58	%		1.05	%		45.02	%
$	10.86		3.21	%	$	200,331		0.96	%		0.44	%		1.02	%		46.83	%
$	10.56		(21.87	)%	$	163,840		0.89	%		0.43	%		0.93	%		65.74	%
$	15.00		16.75	%	$	243,437		0.91	%		0.53	%		0.95	%		58.59	%
$	13.54		13.52	%	$	209,685		0.89	%		0.48	%		0.93	%		53.92	%
$	14.21		26.99	%	$	81,591		1.09	%		(0.20	)%		1.20	%		33.31	%
$	11.19		9.59	%(d)	$	60,073		1.20	%		0.56	%		1.42	%		95.89	%
$	10.27		8.68	%	$	25,790		1.42	%		1.79	%		0.23	%		89.00	%
$	9.89		(17.16	)%	$	22,635		1.26	%		1.40	%		0.01	%		64.00	%
$	14.68		3.67	%	$	45,453		1.18	%		1.41	%		(0.07	)%		82.00	%
$	18.36		19.31	%(g)	$	60,737		1.25	%		1.63	%		(0.26	)%		56.00	%
$	18.22		9.24	%(g)	$	99,201		1.25	%		1.47	%		0.06	%		45.00	%
$	5.59		7.71	%	$	81,348		1.56	%		(0.21	)%		1.72	%		45.32	%
$	5.19		3.09	%	$	76,087		1.54	%		0.73	%		1.96	%		145.31	%
$	5.14		(3.42	)%	$	81,575		1.49	%		1.58	%		1.64	%		223.19	%
$	5.47		(30.65	)%	$	109,438		1.31	%		1.36	%		1.49	%		112.65	%
$	8.64		20.39	%	$	164,147		1.13	%		1.13	%		1.26	%		129.80	%
$	11.23		17.38	%	$	253,690		1.15	%		1.68	%		1.25	%		36.22	%
$	18.65		15.41	%	$	323,637		1.03	%		(0.07	)%		1.03	%		20.57	%
$	16.25		8.91	%	$	254,834		1.04	%		(0.13	)%		1.05	%		25.65	%
$	14.92		1.91	%	$	228,421		1.03	%		0.30	%		1.04	%		45.22	%
$	15.58		(12.35	)%	$	167,544		0.99	%		(0.24	)%		0.99	%		25.80	%
$	18.51		22.55	%	$	127,210		1.03	%		0.18	%		1.03	%		49.43	%
$	16.57		11.50	%	$	67,232		1.03	%		(0.02	)%		1.03	%		58.01	%
$	14.49		11.65	%	$	380,057		0.92	%		1.93	%		0.92	%		6.38	%
$	13.07		16.77	%	$	236,580		0.94	%		2.68	%		0.95	%		21.63	%
$	11.44		(5.18	)%	$	177,281		0.93	%		3.19	%		0.95	%		37.13	%
$	12.37		(12.24	)%	$	140,256		0.89	%		3.72	%		0.89	%		30.01	%
$	15.05		21.16	%	$	46,053		0.94	%		2.81	%		0.94	%		37.85	%
$	13.37		16.04	%	$	35,205		0.95	%		2.55	%		0.95	%		45.38	%
$	9.53		(0.20	)%	$	55,280		0.67	%		1.64	%		0.83	%		81.63	%
$	9.68		2.90	%	$	60,089		0.70	%		1.93	%		0.86	%		55.50	%
$	9.67		4.94	%	$	59,123		0.70	%		2.58	%		0.85	%		89.57	%
$	9.54		4.38	%	$	44,912		0.65	%		3.68	%		0.80	%		48.20	%
$	9.53		4.93	%	$	40,756		0.66	%		4.01	%		0.81	%		44.10	%
$	9.49		3.37	%	$	66,371		0.64	%		3.21	%		0.79	%		98.08	%

106

Sterling Capital Funds

   Financial Highlights, Institutional Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net investment income			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.82		0.14	(c)		(0.33	)		(0.19	)		(0.17	)		—			(0.17	)
Year Ended September 30, 2010	$	10.57		0.32	(c)		0.28			0.60			(0.35	)		—			(0.35	)
Year Ended September 30, 2009	$	10.05		0.35	(c)		0.55			0.90			(0.38	)		—			(0.38	)
Year Ended September 30, 2008	$	9.94		0.44	(c)		0.12			0.56			(0.45	)		—			(0.45	)
Year Ended September 30, 2007	$	9.90		0.45	(c)		0.04			0.49			(0.45	)		—			(0.45	)
Year Ended September 30, 2006	$	10.03		0.44	(c)		(0.13	)		0.31			(0.44	)		—			(0.44	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.33		0.21	(c)		(0.24	)		(0.03	)		(0.24	)		(0.21	)		(0.45	)
Year Ended September 30, 2010	$	10.78		0.46	(c)		0.62			1.08			(0.52	)		(0.01	)		(0.53	)
Year Ended September 30, 2009	$	9.89		0.47	(c)		0.89			1.36			(0.47	)		—			(0.47	)
Year Ended September 30, 2008	$	10.13		0.46	(c)		(0.22	)		0.24			(0.48	)		—			(0.48	)
Year Ended September 30, 2007	$	10.13		0.47	(c)		—			0.47			(0.47	)		—			(0.47	)
Year Ended September 30, 2006	$	10.32		0.45	(c)		(0.13	)		0.32			(0.46	)		(0.05	)		(0.51	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.81		0.16	(c)		(0.40	)		(0.24	)		(0.16	)		(0.05	)		(0.21	)
Year Ended September 30, 2010	$	10.67		0.32	(c)		0.24			0.56			(0.32	)		(0.10	)		(0.42	)
Year Ended September 30, 2009	$	9.87		0.35	(c)		0.90			1.25			(0.35	)		(0.10	)		(0.45	)
Year Ended September 30, 2008	$	10.05		0.34	(c)		(0.18	)		0.16			(0.34	)		—			(0.34	)
Year Ended September 30, 2007	$	10.11		0.35	(c)		(0.06	)		0.29			(0.35	)		—			(0.35	)
Year Ended September 30, 2006	$	10.04		0.33			0.07			0.40			(0.33	)		—			(0.33	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.22		0.15	(c)		(0.37	)		(0.22	)		(0.15	)		(0.04	)		(0.19	)
Year Ended September 30, 2010	$	10.99		0.30	(c)		0.23			0.53			(0.30	)		—	(d)		(0.30	)
Year Ended September 30, 2009	$	10.06		0.33	(c)		1.01			1.34			(0.33	)		(0.08	)		(0.41	)
Year Ended September 30, 2008	$	10.17		0.34	(c)		(0.11	)		0.23			(0.34	)		—			(0.34	)
Year Ended September 30, 2007	$	10.13		0.33	(c)		0.04			0.37			(0.33	)		—			(0.33	)
Year Ended September 30, 2006	$	10.04		0.31			0.09			0.40			(0.31	)		—			(0.31	)
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.01		0.16	(c)		(0.37	)		(0.21	)		(0.16	)		(0.06	)		(0.22	)
Year Ended September 30, 2010	$	10.87		0.33	(c)		0.20			0.53			(0.33	)		(0.06	)		(0.39	)
Year Ended September 30, 2009	$	10.09		0.36	(c)		0.88			1.24			(0.36	)		(0.10	)		(0.46	)
Year Ended September 30, 2008	$	10.33		0.37	(c)		(0.20	)		0.17			(0.37	)		(0.04	)		(0.41	)
Year Ended September 30, 2007	$	10.38		0.38	(c)		(0.04	)		0.34			(0.38	)		(0.01	)		(0.39	)
Year Ended September 30, 2006	$	10.46		0.39			—	(d)		0.39			(0.38	)		(0.09	)		(0.47	)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.86		0.14	(c)		(0.38	)		(0.24	)		(0.14	)		(0.03	)		(0.17	)
Year Ended September 30, 2010	$	10.61		0.32	(c)		0.25			0.57			(0.32	)		—			(0.32	)
Year Ended September 30, 2009	$	9.89		0.35	(c)		0.89			1.24			(0.35	)		(0.17	)		(0.52	)
Year Ended September 30, 2008	$	10.21		0.36	(c)		(0.23	)		0.13			(0.36	)		(0.09	)		(0.45	)
Year Ended September 30, 2007	$	10.29		0.37	(c)		(0.06	)		0.31			(0.38	)		(0.01	)		(0.39	)
Year Ended September 30, 2006	$	10.47		0.37			—	(d)		0.37			(0.37	)		(0.18	)		(0.55	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	12.14		0.17	(c)		(0.43	)		(0.26	)		(0.17	)		(0.04	)		(0.21	)
Year Ended September 30, 2010	$	12.07		0.36	(c)		0.18			0.54			(0.36	)		(0.11	)		(0.47	)
Year Ended September 30, 2009	$	11.10		0.39	(c)		1.06			1.45			(0.39	)		(0.09	)		(0.48	)
Year Ended September 30, 2008	$	11.31		0.40	(c)		(0.16	)		0.24			(0.40	)		(0.05	)		(0.45	)
Year Ended September 30, 2007	$	11.39		0.41	(c)		(0.05	)		0.36			(0.42	)		(0.02	)		(0.44	)
Year Ended September 30, 2006	$	11.49		0.42			(0.04	)		0.38			(0.42	)		(0.06	)		(0.48	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2011 (Unaudited)	$	10.18		0.17	(c)		(0.36	)		(0.19	)		(0.17	)		(0.01	)		(0.18	)
Year Ended September 30, 2010	$	10.05		0.36	(c)		0.15			0.51			(0.36	)		(0.02	)		(0.38	)
Year Ended September 30, 2009	$	9.37		0.36	(c)		0.68			1.04			(0.35	)		(0.01	)		(0.36	)
Year Ended September 30, 2008	$	9.72		0.36	(c)		(0.34	)		0.02			(0.35	)		(0.02	)		(0.37	)
Year Ended September 30, 2007	$	9.80		0.37	(c)		(0.05	)		0.32			(0.37	)		(0.03	)		(0.40	)
Year Ended September 30, 2006	$	9.86		0.40			(0.01	)		0.39			(0.39	)		(0.06	)		(0.45	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

See accompanying notes to the financial statements.

107

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (a)		Net Assets, End of Period (000)		Ratio of net expenses to  average net assets (b)	Ratio of net investment income to average net assets (b)	Ratio of expenses to average net assets*(b)	Portfolio turnover rate**(a)
$	10.46		(1.73)%	$	170,061	0.71%	2.68%	0.83%	44.41%
$	10.82		5.74%	$	176,096	0.71%	3.00%	0.84%	83.92%
$	10.57		9.06%	$	177,141	0.70%	3.35%	0.82%	47.13%
$	10.05		5.67%	$	110,289	0.67%	4.33%	0.79%	116.07%
$	9.94		5.04%	$	132,403	0.68%	4.49%	0.80%	85.83%
$	9.90		3.23%	$	252,402	0.67%	4.45%	0.79%	127.13%
$	10.85		(0.15)%	$	381,495	0.70%	3.83%	0.82%	66.82%
$	11.33		10.27%	$	383,868	0.71%	4.19%	0.84%	122.94%
$	10.78		14.16%	$	339,730	0.71%	4.61%	0.83%	122.26%
$	9.89		2.32%	$	430,079	0.66%	4.48%	0.78%	190.15%
$	10.13		4.77%	$	433,382	0.68%	4.62%	0.80%	222.24%
$	10.13		3.30%	$	367,353	0.67%	4.42%	0.79%	226.36%
$	10.36		(2.24)%	$	14,378	0.67%	3.03%	0.83%	6.93%
$	10.81		5.42%	$	15,284	0.69%	3.01%	0.90%	20.68%
$	10.67		13.00%	$	12,814	0.67%	3.44%	0.87%	33.56%
$	9.87		1.59%	$	10,924	0.64%	3.38%	0.84%	54.22%
$	10.05		2.92%	$	10,625	0.65%	3.45%	0.85%	69.73%
$	10.11		4.04%	$	11,175	0.66%	3.26%	0.87%	64.55%
$	10.81		(1.97)%	$	25,248	0.68%	2.80%	0.83%	12.93%
$	11.22		4.97%	$	26,322	0.68%	2.77%	0.89%	12.26%
$	10.99		13.70%	$	20,704	0.65%	3.10%	0.87%	37.11%
$	10.06		2.10%	$	11,527	0.54%	3.26%	0.84%	108.13%
$	10.17		3.74%	$	8,374	0.59%	3.29%	0.89%	136.09%
$	10.13		4.10%	$	8,003	0.60%	3.13%	0.90%	219.80%
$	10.58		(1.96)%	$	152,798	0.68%	2.94%	0.78%	4.60%
$	11.01		5.05%	$	147,848	0.68%	3.05%	0.84%	19.19%
$	10.87		12.63%	$	130,113	0.67%	3.42%	0.82%	38.42%
$	10.09		1.67%	$	103,560	0.64%	3.59%	0.79%	82.02%
$	10.33		3.33%	$	96,282	0.66%	3.65%	0.81%	106.16%
$	10.38		3.84%	$	87,854	0.65%	3.70%	0.80%	94.95%
$	10.45		(2.20)%	$	34,804	0.70%	2.71%	0.80%	14.28%
$	10.86		5.53%	$	30,183	0.73%	3.05%	0.89%	14.60%
$	10.61		13.01%	$	17,274	0.73%	3.45%	0.88%	42.06%
$	9.89		1.27%	$	13,298	0.71%	3.52%	0.86%	127.76%
$	10.21		3.08%	$	12,789	0.68%	3.60%	0.85%	68.69%
$	10.29		3.66%	$	15,426	0.69%	3.58%	0.86%	80.24%
$	11.67		(2.13)%	$	75,793	0.68%	2.93%	0.78%	9.28%
$	12.14		4.65%	$	77,222	0.69%	3.05%	0.85%	9.54%
$	12.07		13.39%	$	71,599	0.67%	3.36%	0.82%	35.90%
$	11.10		2.13%	$	71,631	0.64%	3.50%	0.79%	53.28%
$	11.31		3.21%	$	68,911	0.66%	3.64%	0.81%	85.36%
$	11.39		3.49%	$	65,652	0.65%	3.80%	0.80%	76.53%
$	9.81		(1.85)%	$	71,014	0.69%	3.51%	0.69%	6.51%
$	10.18		5.13%	$	70,760	0.69%	3.58%	0.70%	6.60%
$	10.05		11.41%	$	63,599	0.68%	3.71%	0.68%	24.19%
$	9.37		0.18%	$	56,829	0.66%	3.66%	0.66%	39.13%
$	9.72		3.37%	$	52,518	0.66%	3.85%	0.66%	49.60%
$	9.80		4.10%	$	50,916	0.65%	4.03%	0.65%	50.14%

108

Sterling Capital Funds

   Financial Highlights, Institutional Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital National Tax-Free Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)		$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010		$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009		$	1.00		0.01	(c)		—	(d)		0.01			(0.01	)		—			(0.01	)
Year Ended September 30, 2008		$	1.00		0.02	(c)		—	(d)		0.02			(0.02	)		—			(0.02	)
Year Ended September 30, 2007		$	1.00		0.03	(c)		—			0.03			(0.03	)		—			(0.03	)
August 1, 2006 to September 30, 2006 (e)		$	1.00		0.01			—			0.01			(0.01	)		—			(0.01	)
Sterling Capital Prime Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)		$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010		$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009		$	1.00		0.01	(c)		—	(d)		0.01			(0.01	)		—			(0.01	)
Year Ended September 30, 2008		$	1.00		0.03	(c)		—	(d)		0.03			(0.03	)		—			(0.03	)
Year Ended September 30, 2007		$	1.00		0.05	(c)		—			0.05			(0.05	)		—			(0.05	)
Year Ended September 30, 2006		$	1.00		0.04			—	(d)		0.04			(0.04	)		—			(0.04	)
Sterling Capital U.S. Treasury Money Market Fund
Six Months Ended March 31, 2011 (Unaudited)		$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2010		$	1.00		—	(c)(d)		—	(d)		—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2009		$	1.00		—	(c)(d)		—			—	(d)		—	(d)		—			—	(d)
Year Ended September 30, 2008		$	1.00		0.02	(c)		—	(d)		0.02			(0.02	)		—			(0.02	)
Year Ended September 30, 2007		$	1.00		0.05	(c)		—			0.05			(0.05	)		—			(0.05	)
Year Ended September 30, 2006		$	1.00		0.04			—			0.04			(0.04	)		—			(0.04	)
Sterling Capital Strategic Allocation Conservative Fund(f)
Six Months Ended March 31, 2011 (Unaudited)		$	9.15		0.14	(c)		0.45			0.59			(0.20	)		—			(0.20	)
Year Ended September 30, 2010		$	8.58		0.29	(c)		0.57			0.86			(0.29	)		—			(0.29	)
Year Ended September 30, 2009		$	8.50		0.30	(c)		0.17			0.47			(0.25	)		(0.14	)		(0.39	)
Year Ended September 30, 2008		$	10.62		0.28	(c)		(1.26	)		(0.98	)		(0.41	)		(0.73	)		(1.14	)
Year Ended September 30, 2007		$	10.04		0.38	(c)		0.53			0.91			(0.33	)		—			(0.33	)
Year Ended September 30, 2006		$	9.83		0.33	(c)		0.24			0.57			(0.36	)		—			(0.36	)
Sterling Capital Strategic Allocation Balanced Fund(f)
Six Months Ended March 31, 2011 (Unaudited)		$	8.44		0.11	(c)		0.81			0.92			(0.13	)		—			(0.13	)
Year Ended September 30, 2010		$	7.83		0.20	(c)		0.61			0.81			(0.20	)		—			(0.20	)
Year Ended September 30, 2009		$	7.81		0.24	(c)		(0.04	)		0.20			(0.18	)		—			(0.18	)
Year Ended September 30, 2008		$	10.99		0.19	(c)		(1.86	)		(1.67	)		(0.38	)		(1.13	)		(1.51	)
Year Ended September 30, 2007		$	10.25		0.32	(c)		0.88			1.20			(0.24	)		(0.22	)		(0.46	)
Year Ended September 30, 2006		$	9.83		0.27	(c)		0.43			0.70			(0.28	)		—			(0.28	)
Sterling Capital Strategic Allocation Growth Fund(f)
Six Months Ended March 31, 2011 (Unaudited)		$	7.70		0.08	(c)		0.96			1.04			(0.09	)		—			(0.09	)
Year Ended September 30, 2010		$	7.12		0.15	(c)		0.58			0.73			(0.15	)		—			(0.15	)
Year Ended September 30, 2009		$	7.34		0.22	(c)		(0.31	)		(0.09	)		(0.13	)		—			(0.13	)
Year Ended September 30, 2008		$	11.14		0.13	(c)		(2.20	)		(2.07	)		(0.36	)		(1.37	)		(1.73	)
Year Ended September 30, 2007		$	10.24		0.27	(c)		1.08			1.35			(0.18	)		(0.27	)		(0.45	)
Year Ended September 30, 2006		$	9.69		0.22	(c)		0.57			0.79			(0.24	)		—			(0.24	)
Sterling Capital Strategic Allocation Equity Fund(f)
Six Months Ended March 31, 2011 (Unaudited)		$	7.41		0.06	(c)		1.05			1.11			(0.06	)		—			(0.06	)
Year Ended September 30, 2010		$	6.85		0.12	(c)		0.57			0.69			(0.13	)		—			(0.13	)
Year Ended September 30, 2009		$	7.48		0.20	(c)		(0.77	)		(0.57	)		(0.06	)		—			(0.06	)
Year Ended September 30, 2008		$	12.35		0.07	(c)		(2.78	)		(2.71	)		(0.35	)		(1.81	)		(2.16	)
Year Ended September 30, 2007		$	11.65		0.25	(c)		1.42			1.67			(0.12	)		(0.85	)		(0.97	)
Year Ended September 30, 2006		$	11.02		0.20	(c)		0.84			1.04			(0.22	)		(0.19	)		(0.41	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Not annualized for periods less than one year.

(b) Annualized for periods less than one year.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Period from commencement of operations.

(f) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying notes to the financial statements.

109

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (a)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (b)	Ratio of net investment income to average net assets (b)	Ratio of expenses to average net assets*(b)	Portfolio turnover rate**(a)
$	1.00		0.01%	$	134,217	0.42%	0.02%	0.49%	—
$	1.00		0.03%	$	155,385	0.40%	0.03%	0.48%	—
$	1.00		1.05%	$	260,889	0.44%	0.97%	0.49%	—
$	1.00		2.37%	$	151,438	0.40%	2.34%	0.45%	—
$	1.00		3.33%	$	109,590	0.41%	3.28%	0.46%	—
$	1.00		0.53%	$	95,757	0.40%	3.14%	0.79%	—
$	1.00		0.01%	$	420,668	0.31%	0.01%	0.63%	—
$	1.00		0.05%	$	396,157	0.35%	0.04%	0.63%	—
$	1.00		0.92%	$	879,738	0.54%	0.87%	0.66%	—
$	1.00		3.38%	$	975,033	0.46%	3.28%	0.58%	—
$	1.00		5.03%	$	788,160	0.48%	4.92%	0.60%	—
$	1.00		4.38%	$	731,616	0.48%	4.34%	0.59%	—
$	1.00		0.01%	$	188,663	0.14%	0.01%	0.65%	—
$	1.00		0.07%	$	208,439	0.15%	0.05%	0.64%	—
$	1.00		0.04%	$	432,753	0.29%	0.04%	0.64%	—
$	1.00		2.24%	$	712,696	0.44%	2.18%	0.58%	—
$	1.00		4.72%	$	557,282	0.46%	4.62%	0.60%	—
$	1.00		4.15%	$	481,484	0.46%	4.04%	0.59%	—
$	9.54		6.49%	$	4,283	0.28%	2.90%	0.46%	6.10%
$	9.15		10.22%	$	4,798	0.21%	3.26%	0.47%	33.33%
$	8.58		6.28%	$	5,316	0.14%	3.84%	0.39%	21.56%
$	8.50		(10.21)%	$	39,937	0.10%	2.97%	0.35%	39.99%
$	10.62		9.16%	$	47,520	0.10%	3.62%	0.41%	29.58%
$	10.04		5.87%	$	47,046	0.08%	3.35%	0.45%	5.69%
$	9.23		10.96%	$	681	0.21%	2.47%	0.40%	6.59%
$	8.44		10.53%	$	1,169	0.16%	2.52%	0.41%	47.76%
$	7.83		2.91%	$	1,322	0.13%	3.61%	0.38%	22.46%
$	7.81		(17.23)%	$	21,298	0.10%	2.07%	0.35%	63.63%
$	10.99		11.80%	$	28,961	0.11%	3.02%	0.42%	40.05%
$	10.25		7.33%	$	25,699	0.10%	2.65%	0.47%	7.33%
$	8.65		13.49%	$	1,352	0.23%	2.00%	0.41%	5.37%
$	7.70		10.39%	$	1,684	0.17%	2.05%	0.43%	57.35%
$	7.12		(0.87)%	$	1,650	0.14%	3.54%	0.38%	24.08%
$	7.34		(21.54)%	$	17,836	0.10%	1.48%	0.35%	77.54%
$	11.14		13.45%	$	24,259	0.11%	2.50%	0.43%	44.48%
$	10.24		8.22%	$	20,243	0.11%	2.24%	0.48%	6.26%
$	8.46		14.97%	$	66	0.34%	1.56%	0.52%	6.43%
$	7.41		10.15%	$	67	0.25%	1.65%	0.52%	66.32%
$	6.85		(7.33)%	$	693	0.17%	3.41%	0.42%	20.24%
$	7.48		(26.02)%	$	14,000	0.13%	0.70%	0.38%	67.40%
$	12.35		14.98%	$	20,832	0.12%	2.12%	0.43%	48.80%
$	11.65		9.66%	$	14,837	0.11%	1.75%	0.47%	1.48%

110

Sterling Capital Funds

   Financial Highlights, Class R Shares

The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).

			Investment Activities			Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)(a)	Net realized/ unrealized gains (loss) on investments	Total from Investment Activities	Net investment income	Net realized gains on investments	Total Distributions
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	12.12	0.03	2.60	2.63	(0.03)	—	(0.03)
February 1, 2010 to September 30, 2010(e)	$	11.11	0.03	1.01	1.04	(0.03)	—	(0.03)
Sterling Capital Small Value Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.18	(0.01)	2.98	2.97	—	—	—
February 1, 2010 to September 30, 2010(e)	$	10.55	0.06	0.62	0.68	(0.05)	—	(0.05)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2011 (Unaudited)	$	16.26	(0.05)	2.52	2.47	—	(0.10)	(0.10)
February 1, 2010 to September 30, 2010(e)	$	15.32	(0.03)	0.97	0.94	—	—	—
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2011 (Unaudited)	$	13.03	0.10	1.39	1.49	(0.10)	—	(0.10)
February 1, 2010 to September 30, 2010(e)	$	11.94	0.23	1.04	1.27	(0.18)	—	(0.18)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2011 (Unaudited)	$	11.32	0.19	(0.26)	(0.07)	(0.22)	(0.21)	(0.43)
February 1, 2010 to September 30, 2010(e)	$	10.87	0.25	0.50	0.75	(0.30)	—	(0.30)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Per share net investment income (loss) has been calculated using the average daily shares method.

(b) Not annualized for periods less than one year.

(c) Annualized for periods less than one year.

(d) Net Assets are below $1,000.

(e) Period from commencement of operations.

(f) Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 6.08%.

See accompanying notes to the financial statements.

111

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge)(b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets(c)			Ratio of net investment income to average net assets(c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
$	14.72		21.53	%	$	—	(d)		1.45	%		0.48	%		1.62	%		17.16	%
$	12.12		9.47	%	$	—	(d)		1.44	%		0.42	%		1.68	%		45.02	%
$	14.15		26.57	%	$	—	(d)		1.60	%		(0.23	)%		1.60	%		33.31	%
$	11.18		6.46	%(f)	$	—	(d)		1.65	%		0.82	%		3.44	%		95.89	%
$	18.63		15.15	%	$	4			1.53	%		(0.58	)%		1.53	%		20.57	%
$	16.26		6.20	%	$	—	(d)		1.54	%		(0.29	)%		1.57	%		25.65	%
$	14.42		11.45	%	$	—	(d)		1.42	%		1.42	%		1.42	%		6.38	%
$	13.03		10.76	%	$	—	(d)		1.45	%		2.86	%		1.49	%		21.63	%
$	10.82		(0.53	)%	$	5			1.20	%		3.43	%		1.32	%		66.82	%
$	11.32		7.03	%	$	42			1.21	%		3.45	%		1.37	%		122.94	%

112

Sterling Capital Funds

   Notes to Financial Statements (Unaudited)

   March 31, 2011

   1. Organization:

Sterling Capital Funds (formerly known as BB&T Funds) (the “Trust”) commenced operations on October 5, 1992 and is registered under the Investment Company Act of 1940, as amended (“the 1940 Act”), as an open-end investment company established as a Massachusetts business trust.

As the date of these financial statements, the Trust offers shares of the Sterling Capital Select Equity Fund, the Sterling Capital Mid Value Fund, the Sterling Capital Small Value Fund, the Sterling Capital International Fund, the Sterling Capital Special Opportunities Fund, the Sterling Capital Equity Income Fund, the Sterling Capital Short-Term Bond Fund, the Sterling Capital Intermediate U.S. Government Fund, the Sterling Capital Total Return Bond Fund, the Sterling Capital Kentucky Intermediate Tax-Free Fund, the Sterling Capital Maryland Intermediate Tax-Free Fund, the Sterling Capital North Carolina Intermediate Tax-Free Fund, the Sterling Capital South Carolina Intermediate Tax-Free Fund, the Sterling Capital Virginia Intermediate Tax-Free Fund, the Sterling Capital West Virginia Intermediate Tax-Free Fund, the Sterling Capital Equity Index Fund, the Sterling Capital National Tax-Free Money Market Fund, the Sterling Capital Prime Money Market Fund, the Sterling Capital U.S. Treasury Money Market Fund, the Sterling Capital Strategic Allocation Conservative Fund, the Sterling Capital Strategic Allocation Balanced Fund, the Sterling Capital Strategic Allocation Growth Fund and the Sterling Capital Strategic Allocation Equity Fund (referred to individually as a “Fund” and collectively as the “Funds”). The Sterling Capital Equity Index Fund is not included in these financial statements. The Sterling Capital Kentucky Intermediate Tax-Free Fund, the Sterling Capital Maryland Intermediate Tax-Free Fund, the Sterling Capital North Carolina Intermediate Tax-Free Fund, the Sterling Capital South Carolina Intermediate Tax-Free Fund, the Sterling Capital Virginia Intermediate Tax-Free Fund and the Sterling Capital West Virginia Intermediate Tax-Free Fund are referred to as the “Tax-Free Funds.” The Sterling Capital National Tax-Free Money Market Fund, the Sterling Capital Prime Money Market Fund and the Sterling Capital U.S. Treasury Money Market Fund are referred to as the “Money Market Funds.” The Sterling Capital Strategic Allocation Conservative Fund, the Sterling Capital Strategic Allocation Balanced Fund, the Sterling Capital Strategic Allocation Growth Fund and the Sterling Capital Strategic Allocation Equity Fund are referred to as the “Funds of Funds.” The Funds, excluding the Money Market Funds and the Funds of Funds, are referred to as the “Variable Net Asset Value Funds.” The Funds of Funds invest in underlying mutual funds and exchange traded funds as opposed to individual securities.

All Funds except the Tax-Free Funds are “diversified” funds, as defined in the 1940 Act. The Tax-Free Funds are non-diversified funds, which means they may invest in the securities of a limited number of issuers.

By owning shares of underlying investment companies (including exchange traded funds), each of the Funds of Funds invests, to varying degrees, in securities of U.S. and non-U.S. companies, including small and medium sized companies, and in fixed-income securities. Funds of Funds with exposure to underlying equity funds may include funds that invest in real estate of other similar securities. In addition, underlying investment companies may invest in derivatives.

The Funds are authorized to issue an unlimited amount of shares. As of March 31, 2011, the Funds discussed herein offered up to five classes of shares: Class A Shares, Class B Shares, Class C Shares, Class R Shares and Institutional Shares. Class B Shares of the Funds are closed to new accounts and additional purchases by existing shareholders. The Sterling Capital Mid Value Fund, the Sterling Capital Small Value Fund, the Sterling Capital Special Opportunities Fund, the Sterling Capital Equity Income Fund and the Sterling Capital Total Return Bond Fund offer Class R Shares. Class B Shares and Class C Shares of the Sterling Capital Short-Term Bond Fund, the Sterling Capital National Tax-Free Money Market Fund and the Tax-Free Funds are not being offered. Class B Shares automatically convert to Class A Shares after eight years. Class A Shares of the Variable Net Asset Value Funds and Funds of Funds, excluding the Sterling Capital Short-Term Bond Fund, have a maximum sales charge of 5.75% as a percentage of original purchase price. The Class A Shares of the Sterling Capital Short-Term Bond Fund and the Tax-Free Funds have a maximum sales charge of 2.50% and 3.00%, respectively, as a percentage of the original purchase price. Purchases of $1 million or more of Class A Shares are not subject to a front-end sales charge but will be subject to a Contingent Deferred Sales Charge (“CDSC”) of 1.00% of the purchase price if redeemed within two years after purchase. This charge is based on the lower of the price paid for the shares or their net asset value at the time of redemption. In addition, a CDSC of up to 1.00% of the purchase price of Class A Shares will be charged to the following shareholders who received a sales charge waiver and then redeem their shares within two years after purchase: (i) employees of the Trust, Sterling Capital Management LLC and its affiliates, and (ii) shareholders who purchased shares with proceeds from redemptions from another mutual fund complex within 60 days of redemption if a sales charge was paid on such shares. This charge is based on the lower of the price paid for the shares or their net asset value at the time of redemption. The Class B Shares of

113

Sterling Capital Funds

   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

the Funds will be subject to a CDSC ranging from a maximum of 5.00% if redeemed less than one year after purchase to 0.00% if redeemed more than six years after purchase. The Class C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase.

Each class of shares has identical rights and privileges except with respect to the fees paid under the distribution plan, voting rights on matters affecting a single class of shares and the exchange privilege of each class of shares.

Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Funds may enter into contracts with their vendors and others that provide for general indemnifications. The Funds’maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.

2. Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with United States generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the reporting period. Actual results could differ from those estimates.

Securities Valuation — Investments of the Money Market Funds are valued in accordance with Rule 2a-7 of the 1940 Act at amortized cost, which approximates fair value. Under the amortized cost method, discount or premium is amortized on a constant basis to the maturity of the security.

Investments in common stocks, commercial paper, corporate bonds, municipal securities, U.S. Government securities, U.S. Government agency securities, futures and options held by the Variable Net Asset Value Funds, the principal market for which is a securities exchange or an over-the-counter market, are valued at their latest available sale price (except for those securities that are traded on NASDAQ, which will be valued at the NASDAQ official closing price) or in the absence of such a price, by reference to the latest available bid price in the principal market in which such securities are normally traded. The Variable NetAssetValue Funds may also use an independent pricing service approved by the Board ofTrustees of theTrust (the “Board”) to value certain securities, including the use of electronic and matrix techniques. Short-term obligations without significant credit risk that mature in 60 days or less are valued at either amortized cost or original cost plus interest, which approximates current value. Investments in open-end investment companies, including underlying funds invested in by the Funds of Funds, are valued at their respective net asset values as reported by such companies. Investments in closed-end investment companies and exchange traded funds are valued at their market values based upon the latest available sale price or, absent such a price, by reference to the latest available bid prices in the principal market in which such securities are normally traded. The differences between cost and fair value of investments are reflected as either unrealized appreciation or depreciation. Securities for which market quotations are not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price) will be fair valued in accordance with procedures established in good faith under the general supervision of the Board.

Fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Sterling Capital International Fund’s net asset value is calculated; such securities may be valued at fair value in accordance with procedures adopted by the Board. Management identifies possible fluctuation in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the Sterling Capital International Fund may use a systematic valuation model provided by an independent third party to fair value their international equity securities.

Fair Value Measurements — The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

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• Level 1 – quoted prices in active markets for identical securities

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the period ended March 31, 2011 there were no changes to the valuation policies and procedures.

The summary of inputs used to determine the fair valuation of each Fund’s investments as of March 31, 2011 is as follows:

Assets:	Level 1– Quoted Prices			Level 2– Other Significant Observable Inputs			Level 3– Significant Unobservable Inputs		Total
Investments in Securities
Sterling Capital Select Equity Fund	$	238,595,117	(a)	$	1,187,148	(b)		$—	$	239,782,265
Sterling Capital Mid Value Fund		402,250,981	(a)		2,258,666	(b)		—		404,509,647
Sterling Capital Small Value Fund		90,802,662	(a)		849,093	(b)		—		91,651,755
Sterling Capital International Fund		86,368,203	(a)		4,949,224	(a)(b)		—		91,317,427
Sterling Capital Special Opportunities Fund		675,233,240	(a)		9,592,066	(b)		—		684,825,306
Sterling Capital Equity Income Fund		697,840,167	(a)		29,575,768	(b)		—		727,415,935
Sterling Capital Short-Term Bond Fund		3,461,175	(c)		60,771,039	(a)		—		64,232,214
Sterling Capital Intermediate U.S. Government Fund		4,240,214	(c)		180,505,681	(a)		—		184,745,895
Sterling Capital Total Return Bond Fund		13,012,061	(c)		417,074,879	(a)		—		430,086,940
Sterling Capital Kentucky Intermediate Tax-Free Fund		108,987	(c)		22,448,482	(a)		—		22,557,469
Sterling Capital Maryland Intermediate Tax-Free Fund		866,923	(c)		33,821,556	(a)		—		34,688,479
Sterling Capital North Carolina Intermediate Tax-Free Fund		5,656,521	(c)		193,914,996	(a)		—		199,571,517
Sterling Capital South Carolina Intermediate Tax-Free Fund		1,108,228	(c)		48,614,023	(a)		—		49,722,251
Sterling Capital Virginia Intermediate Tax-Free Fund		4,282,588	(c)		106,704,611	(a)		—		110,987,199
Sterling Capital West Virginia Intermediate Tax-Free Fund		2,726,121	(c)		96,559,173	(a)		—		99,285,294
Sterling Capital National Tax-Free Money Market Fund		11,574	(c)		134,088,474	(a)		—		134,100,048
Sterling Capital Prime Money Market Fund		—			579,984,039	(a)		—		579,984,039
Sterling Capital U.S. Treasury Money Market Fund		—			321,476,096	(a)		—		321,476,096
Sterling Capital Strategic Allocation Conservative Fund		15,374,326	(a)		—			—		15,374,326
Sterling Capital Strategic Allocation Balanced Fund		38,991,052	(a)		—			—		38,991,052
Sterling Capital Strategic Allocation Growth Fund		29,107,409	(a)		—			—		29,107,409
Sterling Capital Strategic Allocation Equity Fund		9,870,616	(a)		—			—		9,870,616
Liabilities:
Other Financial Instruments- Written Options (Equity Risk)
Sterling Capital Special Opportunities Fund (d)	$	1,777,670		$	—			$—	$	1,777,670
Sterling Capital Equity Income Fund (d)		253,000			—			—		253,000
Forward Foreign Currency Exchange Contracts (Foreign Currency Risk)
Sterling Capital International Fund (d)	$	—		$	55,544			$—	$	55,544
(a)    Industries, countries or security types are disclosed in the Schedules of Portfolio Investments.
(b)    All or part of the balance represents securities held as collateral for securities on loan.
(c)    Represents investment companies.
(d)    Other financial instruments are foreign currency exchange contracts and written options. Foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instruments and written options are shown at value.

There were no significant transfers between Level 1 and Level 2 during the six months ended March 31, 2011.

Foreign Currency Translation — The accounting records of the Sterling Capital International Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the latest foreign exchange bid quotation (from an approved pricing vendor) to determine the fair value of investments, assets and liabilities. Purchases and sales of securities, income and expenses are translated at the prevailing rate of exchange, on the respective dates of such transactions. The Sterling Capital International Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations

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   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

are included with the net realized and unrealized gain or loss from investments and foreign currencies.

Risks Associated with Foreign Securities and Currencies — Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in those countries. Certain foreign investments may also be subject to foreign withholding taxes.

Forward Foreign Currency Exchange Contracts — The Sterling Capital International Fund enters into forward foreign currency exchange contracts (foreign currency exchange risk) in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of Fund securities denominated in a particular currency. A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or seller, is the unrealized gain of the contract. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the contract is closed, the Fund records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed.

During the fiscal year, the Sterling Capital International Fund utilized forward foreign currency exchange contracts to hedge the Fund’s portfolio against currency risks. The Fund also utilized forward foreign currency contracts to reduce or eliminate an underweighted position in a currency relative to its benchmark. Additionally, the Fund hedged some of its currency exposure to the Euro by selling these currencies forward versus the U.S. dollar, using 3-month forward currency contracts. At the same time, the Fund moved closer to the benchmark weight assigned to each country through the use of forward currency transactions (buy the foreign currency, sell the U.S. dollar). For open foreign currency exchange contracts as of March 31, 2011, see the Schedule of Portfolio Investments.

Options Contracts — The Sterling Capital Special Opportunities Fund and the Sterling Capital Equity Income Fund write (sell) “covered” call options and purchase options to close out options previously written by it. These transactions are entered into to hedge against changes in security prices (equity risk) or for the purposes of earning additional income (i.e., speculation).

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Funds bear the risk of loss of the premium and change in value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as other securities owned. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

In writing an option, the Funds contract with a specified counterparty to purchase (put option written) or sell (call option written) a specified quantity (notional amount) of an underlying asset at a specified price during a specified period upon demand of the counterparty. The risk associated with writing an option is that the Funds bear the market risk of an unfavorable change in the price of an underlying asset and are required to buy or sell an underlying asset under the contractual terms of the option at a price different from the current value. The Funds execute transactions in both listed and over-the-counter options. When purchasing over-the-counter options, the Fund bears the risk of economic loss from counterparty default, equal to the market value of the option. Listed options involve minimal counterparty risk since the listed options are guaranteed against default by the exchange on which they trade. Transactions in over-the-counter options expose the Funds to the risk of default by the counterparty to the transaction. In the event of default by the counterparty to the over-the-counter transaction, the Funds’ maximum amount of loss is the premium paid (as the purchaser) or the unrealized loss of the contract (as the writer). The Sterling Capital Special Opportunities and Sterling Capital Equity Income Funds invested in written options to economically hedge the downside exposure by collecting a premium when sold against the equity holding. Details of written option activity for the period ended March 31, 2011 are as follows:

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   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

	Sterling Capital Special Opportunities Fund						Sterling Capital Equity Income Fund
Covered Call Options	Number of Contracts			Premiums Received			Number of Contracts			Premiums Received
Balance at beginning of period		15,263		$	1,642,049			7,958		$	589,691
Options written		32,887			2,845,939			9,698			541,270
Options closed		(9,360	)		(668,606	)		(1,698	)		(108,849	)
Options expired		(22,501	)		(1,992,371	)		(3,600	)		(237,190	)
Options exercised		(7,379	)		(934,017	)		(4,358	)		(357,613	)
Balance at end of period		8,910		$	892,994			8,000		$	427,309

The following is a summary of written call options outstanding as of March 31, 2011:

	Number of Contracts		Value
Sterling Capital Special Opportunities Fund
Apache Corp., $145.00, 7/16/11		350	$	(93,450	)
eBay, Inc., $40.00, 7/16/11		1,000		(15,000	)
Halliburton Co., $45.00, 4/16/11		2,000		(1,000,000	)
Halliburton Co., $50.00, 4/16/11		500		(67,000	)
Halliburton Co., $50.00, 5/21/11		500		(126,000	)
Halliburton Co., $55.00, 5/21/11		500		(39,500	)
Halliburton Co., $48.00, 7/16/11		500		(237,500	)
Halliburton Co., $55.00, 7/16/11		400		(68,000	)
Intuit, Inc., $50.00, 4/16/11		90		(28,800	)
McKesson Corp., $85.00, 5/21/11		1,000		(90,000	)
Weatherford International, Ltd., $28.00, 5/21/11		2,070		(12,420	)
		8,910	$	(1,777,670	)
Sterling Capital Equity Income Fund
Archer-Daniels-Midland Co., $40.00, 6/18/11		1,000	$	(48,000	)
Archer-Daniels-Midland Co., $41.00, 6/18/11		1,000		(30,000	)
Taiwan Semiconductor Manufacturing Co., Ltd., ADR, $15.00, 7/16/11		3,000		(15,000	)
Texas Instruments, Inc., $36.00, 4/16/11		1,000		(18,000	)
Verizon Communications, Inc., $38.00, 4/16/11		2,000		(142,000	)
		8,000	$	(253,000	)

Derivative Instruments Categorized by Risk Exposure — The following is a summary of the location of the derivative instruments held by the Funds on the Statements of Assets and Liabilities and the category of primary risk exposure as of March 31, 2011:

Fair Values of Derivative Instruments
	Statements of Assets and Liabilities Location	Sterling Capital International Fund		Sterling Capital Special Opportunities Fund		Sterling Capital Equity Income Fund
Liabilities
Equity contracts	Call options written		—		$1,777,670		$253,000
Forward foreign currency exchange contracts	Unrealized depreciation on forward foreign currency exchange contracts		$55,544		—		—

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   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

The effect of derivative instruments on the Statements of Operations for the period ended March 31, 2011:

	Sterling  Capital International Fund			Sterling  Capital Special Opportunities Fund		Sterling  Capital Equity Income Fund		Sterling Capital Total Return Bond Fund
Net Realized Gain (Loss) from:
Foreign Currency Contracts:
Forward foreign currency exchange transactions	$	(128,708	)		—		—		—
Equity Contracts:
Written options		—		$	2,215,178	$	288,436		—

	Sterling  Capital International Fund		Sterling  Capital Special Opportunities Fund			Sterling  Capital Equity Income Fund		Sterling Capital Total Return Bond Fund
Net change in Unrealized Appreciation/(Depreciation):
Foreign Currency Contracts:
Forward foreign currency exchange transactions	$	109,724		—			—		—
Equity Contracts:
Written options		—	$	(406,756	)	$	87,088		—

	Sterling  Capital International Fund		Sterling Capital Special Opportunities Fund		Sterling Capital Equity Income Fund
Forward Foreign Currency Exchange Contracts (Foreign Currency Risk):
Average number of contracts - U.S. dollars purchased		2		—		—
Average U.S. dollar amounts purchased	$	2,217,596		—		—
Average number of contracts - U.S. dollars sold		1		—		—
Average U.S. dollar amounts sold	$	812,047		—		—
Options Written (Equity Risk):
Average number of contracts		—		11,460		5,572
Average premium		—	$	1,006,163	$	342,242

Securities Transactions and Related Income — During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions as of the last business day of the reporting period are accounted for on the trade date. Interest income is recognized on the accrual basis and includes, where applicable, the amortization/accretion of premium or discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

When-Issued and Forward Commitments — The Funds, with the exception of the Sterling Capital U.S. Treasury Money Market Fund, may purchase securities on a “when-issued” basis. The Sterling Capital Select Equity Fund, the Sterling Capital Mid Value Fund, the Sterling Capital Small Value Fund, the Sterling Capital International Fund, the Sterling Capital Special Opportunities Fund, the Sterling Capital Equity Income Fund, the Sterling Capital National Tax-Free Money Market Fund, and the Sterling Capital Prime Money Market Fund may also purchase or sell securities on a forward commitment basis. The Funds record when-issued securities on the trade date and pledge assets with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase securities, and any subsequent fluctuation in their value, is taken into account when determining the net asset value of the Funds commencing with the date the Funds agree to purchase the securities. The Funds do not accrue interest or dividends on “when-issued” securities until the underlying securities are received.

Repurchase Agreements and Collateralized Loan Agreements — The Funds may enter into agreements with member banks of the Federal Deposit Insurance Corporation and with registered broker/dealers that the advisor or a sub-advisor deems creditworthy under guidelines approved by the Board, subject to the seller’s agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price generally equals the price paid by the Fund plus interest

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   March 31, 2011

negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying Fund securities. The seller, under these types of agreements, is required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest). Securities subject to repurchase are held by the Funds’ custodian, or another qualified custodian, or in the Federal Reserve/Treasury book-entry system. In the event of counterparty default, the Fund has the right to use the collateral to offset losses incurred. There is potential for loss to the Fund in the event the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Fund seeks to assert its rights.

Mortgage Dollar Rolls — The Variable Net Asset Value Funds and the Tax-Free Money Market Fund may sell mortgage-backed securities for delivery in the current month and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed-upon price. The market value of the securities that the Fund is required to purchase may decline below the agreed upon repurchase price of those securities. Pools of mortgages collateralizing those securities may have different prepayment histories than those sold. During the period between the sale and repurchase, the Fund will not be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in additional instruments for the Fund, and the income from these investments will generate income for the Fund. If such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of the Fund compared with what the performance would have been without the use of dollar rolls. The Funds account for mortgage dollar roll transactions as purchases and sales.

Security Loans — The Funds may loan securities secured by collateral in the form of securities issued or guaranteed by the U.S. Government or its agencies on instrumentalities, irrevocable letters of credit, U.S. dollar cash or other forms of collateral as may be agreed to between the Trust and The Bank of New York Mellon, the lending agent (“BNY Mellon Bank”). A Fund may receive compensation for lending securities in the form of fees payable by the borrower or by retaining a portion of the income and earnings from the investment and reinvestment of cash collateral received and held on behalf of the Fund (after payment of a “broker rebate fee” to the borrower). In extremely low interest rate environments, the broker rebate fee may exceed the interest earned on the cash collateral which would result in a loss to the Fund. A Fund also continues to receive interest or dividends on the securities loaned. Although security loans are secured at all times by collateral, the loans may not be fully supported if, for example, the instruments in which cash collateral is invested decline in value or the borrower fails to provide additional collateral when required in a timely manner or at all. Concurrently with the delivery of the Fund’s securities to a borrower, BNY Mellon Bank is required to obtain from the borrower collateral equal to at least 102% of the market value of the securities loaned plus accrued interest in the case of U.S. securities, and at least 105% of the market value of the securities loaned plus accrued interest in the case of foreign securities. If at the close of trading on any business day the market value of the collateral is less than 100% of the market value of such loaned securities as of such business day, the borrower is required to deliver additional collateral which will cause the total collateral to be equal to not less than 102% of the market value of the securities loaned plus accrued interest in the case of U.S. securities and 105% of the market value of the securities loaned plus accrued interest in the case of foreign securities. A Fund bears all of the gains and losses on such investments. Cash collateral received by a Fund at March 31, 2011 was invested in the BNY Mellon Overnight Government Fund (formerly known as BNY Mellon Institutional Cash Reserve Fund (“ICRF”) Series A) and the BNY Mellon ICRF Series B, an unregistered investment pool managed by BNY Mellon Bank, which was invested in repurchase agreements and Lehman Brothers floating rate medium term notes.

Effective July 1, 2010, the Trust, on behalf of each applicable Fund, entered into an agreement with BNY Mellon Bank and the Bank of New York Mellon Corporation (“BNYMC”) with respect to each Fund’s position in the ICRF, pursuant to which (i) BNYMC will support the value of certain defaulted securities issued by Lehman Brothers and held by ICRF, and (ii) if certain conditions are met, each Fund will have the right to sell the defaulted securities to BNYMC at a price equal to 80% of par value.

There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. Another risk from securities lending is that the borrower may not provide additional collateral when required or return the securities when due or when called for by the Fund. The Funds are indemnified from losses resulting

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   March 31, 2011

from brokers failing to return securities. The securities lending agent may make payments to borrowers and placing brokers, who may not be affiliated, directly or indirectly, with the Trust, the advisor or the distributor. In connection with lending securities, a Fund may pay reasonable administrative and custodial fees. The value of the securities on loan and the liability to return the related collateral for each Fund at March 31, 2011, are shown on the Statements of Assets and Liabilities. As of March 31, 2011, the following Funds had loans outstanding:

	Value of  Loaned Securities		Cost of  Cash Collateral		Value of  Cash Collateral		Average Value on  Loan for the period ended March 31, 2011
Sterling Capital Select Equity Fund	$	1,445,873	$	1,483,117	$	1,187,148	$	2,656,549
Sterling Capital Mid Value Fund		3,135,335		3,185,857		2,258,666		9,433,790
Sterling Capital Small Value Fund		1,023,082		1,043,460		849,093		860,057
Sterling Capital International Fund		4,294,051		4,824,807		4,810,077		2,019,481
Sterling Capital Special Opportunities Fund		9,819,456		10,170,667		9,592,066		9,486,717
Sterling Capital Equity Income Fund		29,316,100		29,950,952		29,575,768		28,309,633

Expenses and Allocation Methodology — Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among all Funds daily in relation to the net assets of each Fund or on another reasonable basis. Each class of shares bears its pro-rata portion of expenses attributable to its series, except that each class separately bears expenses related specifically to that class, such as distribution fees. Expenses that are attributable to both the Trust and the Sterling Capital Variable Insurance Funds (formerly known as BB&T Variable Insurance Funds) are allocated across the Funds and Sterling Capital Variable Insurance Funds, based upon relative net assets or on another reasonable basis. Income and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.

Distributions to Shareholders — Dividends from net investment income are declared daily and paid monthly for the Sterling Capital Short-Term Bond Fund, the Sterling Capital Intermediate U.S. Government Fund, the Sterling Capital Total Return Bond Fund, the Tax-Free Funds and the Money Market Funds. Dividends from net investment income are declared and paid quarterly for the Sterling Capital Select Equity Fund, the Sterling Capital Mid Value Fund, the Sterling Capital Small Value Fund, the Sterling Capital Special Opportunities Fund, the Sterling Capital Equity Income Fund and the Funds of Funds if the annualized yield of the distribution exceeds an amount determined annually by the Board. Dividends from net investment income are declared and paid annually for the Sterling Capital International Fund. Distributable net realized gains, if any, are declared and distributed at least annually. Distributions to shareholders which exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

The character of income and gains distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclass of net operating losses, market discounts, gain/loss, paydowns and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. These reclassifications have no effect on net assets or net asset values per share.

Credit Enhancements — Certain obligations held in the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements; and third party insurance (i.e., AMBAC).

Federal Income Taxes — It is the policy of the Funds to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code of 1986, as amended (the “Code”), and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income tax is required.

In addition to the requirements of the Code, the Sterling Capital International Fund may be subject to short-term capital gains tax in India on gains realized upon disposition of Indian securities held less than one year. The tax is computed on net realized gains; any realized losses in excess of gains may be carried forward for a period of up to eight years to offset future gains.

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Any net taxes payable must be remitted to the Indian government prior to repatriation of sales proceeds. The Sterling Capital International Fund may accrue a deferred tax liability for net unrealized short-term gains in excess of available carryforwards on Indian securities. This accrual may reduce the Sterling Capital International Fund’s net asset value. As of March 31, 2011, the Sterling Capital International Fund has no recorded payable as an estimate for potential future India capital gains taxes.

3. Purchases and Sales of Securities:

Purchases and sales of securities (excluding U.S. Government securities and securities maturing less than one year from acquisition) for the period ended March 31, 2011 were as follows:

	Purchases		Sales
Sterling Capital Select Equity Fund	$	63,544,343	$	67,629,198
Sterling Capital Mid Value Fund		63,198,744		74,747,729
Sterling Capital Small Value Fund		30,114,582		24,792,936
Sterling Capital International Fund		38,386,824		36,960,052
Sterling Capital Special Opportunities Fund		136,602,463		112,289,046
Sterling Capital Equity Income Fund		132,262,884		31,369,431
Sterling Capital Short-Term Bond Fund		46,917,414		18,339,006
Sterling Capital Intermediate U.S. Government Fund		14,596,904		14,961,679
Sterling Capital Total Return Bond Fund		137,475,011		122,509,234
Sterling Capital Kentucky Intermediate Tax-Free Fund		2,330,131		1,558,690
Sterling Capital Maryland Intermediate Tax-Free Fund		4,611,378		5,813,718
Sterling Capital North Carolina Intermediate Tax-Free Fund		22,637,042		8,790,129
Sterling Capital South Carolina Intermediate Tax-Free Fund		14,328,577		6,564,036
Sterling Capital Virginia Intermediate Tax-Free Fund		11,762,505		9,944,844
Sterling Capital West Virginia Intermediate Tax-Free Fund		10,609,781		6,287,206
Sterling Capital Strategic Allocation Conservative Fund		1,283,406		876,088
Sterling Capital Strategic Allocation Balanced Fund		2,450,889		3,579,648
Sterling Capital Strategic Allocation Growth Fund		1,469,607		3,364,515
Sterling Capital Strategic Allocation Equity Fund		598,336		590,391

Purchases and sales of U.S. Government Securities (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2011 were as follows:

	Purchases		Sales
Sterling Capital Short-Term Bond Fund	$	4,421,339	$	31,566,384
Sterling Capital Intermediate U.S. Government Fund		69,223,960		64,199,560
Sterling Capital Total Return Bond Fund		163,718,339		160,200,585

4. Investments in Affiliated Issuers:

A summary of the Funds’ transactions in the shares of affiliated issuers during the period ended March 31, 2011 is set forth below:

	Shares Held at September 30, 2010		Shares Purchased		Shares Sold		Shares Held at March  31, 2011		Value at March 31, 2011		Dividend Income October  1, 2010 -March 31, 2011		Distributions and Net Realized Gain (Loss) October 1, 2010 -March 31, 2011
Sterling Capital Strategic Allocation Conservative Fund
Sterling Capital Equity Income Fund, Institutional Class		32,746		625		2,660		30,711	$	445,008	$	3,052	$	854
Sterling Capital International Fund, Institutional Class		110,490		7,579		10,803		107,266		599,618		—		11,115
Sterling Capital Mid Value Fund, Institutional Class		59,145		—		8,379		50,766		749,307		1,492		42,389
Sterling Capital Select Equity Fund, Institutional Class		111,019		2,293		12,357		100,955		1,230,639		7,247		(21,043	)
Sterling Capital Small Value Fund, Institutional Class		16,546		—		2,897		13,649		193,956		—		6,054
Sterling Capital Special Opportunities Fund, Institutional Class		16,948		540		1,733		15,755		293,835		—		8,718
Sterling Capital Total Return Bond Fund, Institutional Class		675,576		78,900		—		754,476		8,186,062		170,856		145,890

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   March 31, 2011

	Shares Held at September 30, 2010		Shares Purchased		Shares Sold		Shares Held at March  31, 2011		Value at March 31, 2011		Dividend Income October  1, 2010 -March 31, 2011		Distributions and Net Realized Gain (Loss) October 1, 2010 -March 31, 2011
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		418,079		49,583,554		49,733,360		268,273	$	268,273	$	20	$	—
Total Affiliates		1,440,549		49,673,491		49,772,189		1,341,851	$	11,966,698	$	182,667	$	193,977
Sterling Capital Strategic Allocation Balanced Fund
Sterling Capital Equity Income Fund, Institutional Class		134,548		2,420		11,245		125,723	$	1,821,722	$	12,653	$	4,416
Sterling Capital International Fund, Institutional Class		454,296		19,038		34,049		439,285		2,455,603		—		16,183
Sterling Capital Mid Value Fund, Institutional Class		243,138		—		35,016		208,122		3,071,884		6,298		92,575
Sterling Capital Select Equity Fund, Institutional Class		456,585		5,185		48,094		413,676		5,042,716		30,184		(101,569	)
Sterling Capital Small Value Fund, Institutional Class		68,130		—		12,179		55,951		795,069		—		21,632
Sterling Capital Special Opportunities Fund, Institutional Class		69,693		489		5,583		64,599		1,204,778		—		9,590
Sterling Capital Total Return Bond Fund, Institutional Class		838,469		113,403		9,291		942,581		10,227,002		218,947		180,724
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		396,164		90,366,712		90,096,057		666,819		666,819		37		—
Total Affiliates		2,661,023		90,507,247		90,251,514		2,916,756	$	25,285,593	$	268,119	$	223,551
Sterling Capital Strategic Allocation Growth Fund
Sterling Capital Equity Income Fund, Institutional Class		125,242		763		11,638		114,367	$	1,657,176	$	11,721	$	8,251
Sterling Capital International Fund, Institutional Class		422,855		369		23,698		399,526		2,233,352		—		(10,449	)
Sterling Capital Mid Value Fund, Institutional Class		226,397		—		37,072		189,325		2,794,442		5,978		96,687
Sterling Capital Select Equity Fund, Institutional Class		425,003		3,389		52,064		376,328		4,587,442		28,126		(100,899	)
Sterling Capital Small Value Fund, Institutional Class		63,423		—		12,563		50,860		722,726		—		25,344
Sterling Capital Special Opportunities Fund, Institutional Class		64,866		1,266		7,342		58,790		1,096,437		—		12,801
Sterling Capital Total Return Bond Fund, Institutional Class		256,099		8,124		1,380		262,843		2,851,843		64,130		54,947
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		863,643		65,200,400		65,421,788		642,255		642,255		27		—
Total Affiliates		2,447,528		65,214,311		65,567,545		2,094,294	$	16,585,673	$	109,982	$	86,682
Sterling Capital Strategic Allocation Equity Fund
Sterling Capital Equity Income Fund, Institutional Class		43,332		534		1,182		42,684	$	618,498	$	4,328	$	1,394
Sterling Capital International Fund, Institutional Class		146,499		4,067		1,527		149,039		833,128		—		1,206

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   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

	Shares Held at September 30, 2010		Shares Purchased		Shares Sold		Shares Held at March  31, 2011		Value at March 31, 2011		Dividend Income October  1, 2010 -March 31, 2011		Distributions and Net Realized Gain (Loss) October 1, 2010 -March 31, 2011
Sterling Capital Mid Value Fund, Institutional Class		78,437		—		7,836		70,601	$	1,042,078	$	2,188	$	21,046
Sterling Capital Select Equity Fund, Institutional Class		147,155		1,883		8,703		140,335		1,710,686		10,430		(16,761	)
Sterling Capital Small Value Fund, Institutional Class		21,995		—		3,023		18,972		269,597		—		7,040
Sterling Capital Special Opportunities Fund, Institutional Class		22,468		557		1,101		21,924		408,887		—		3,697
Sterling Capital U.S. Treasury Money Market Fund, Institutional Class		497,104		34,059,136		34,321,293		234,947		234,947		14		—
Total Affiliates		956,990		34,066,177		34,344,665		678,502	$	5,117,821	$	16,960	$	17,622

5. Related Party Transactions:

Under the terms of the investment advisory agreement the Sterling Capital Management LLC (“Sterling Capital” or the “Advisor”) is entitled to receive fees based on a percentage of the average daily net assets of the Funds. These fees are accrued daily and payable on a monthly basis and are reflected on the Statements of Operations as “Investment advisory fees.” Sterling Capital waived investment advisory fees and reimbursed certain expenses for the Funds referenced below which are not subject to recoupment, except as noted, and are included on the Statements of Operations as “Less expenses waived/reimbursed by the Investment Advisor.” Information regarding these transactions is as follows for the period ended March 31, 2011:

	Contractual Fee Rate	Fee Rate after Contractual Waivers(1)
Sterling Capital Select Equity Fund	0.74%		0.60	%(2)
Sterling Capital Mid Value Fund	0.74%		0.70	%(2)
Sterling Capital Small Value Fund	0.90%		0.80	%(2)
Sterling Capital International Fund	1.00%		0.85	%(2)
Sterling Capital Special Opportunities Fund	0.80%		0.80	%
Sterling Capital Equity Income Fund	0.70%		0.70	%
Sterling Capital Short-Term Bond Fund	0.34%		0.30	%(3)
Sterling Capital Intermediate U.S. Government Fund	0.60%		0.48	%(2)
Sterling Capital Total Return Bond Fund	0.60%		0.48	%(2)
Sterling Capital Kentucky Intermediate Tax-Free Fund	0.45%		0.40	%(2)
Sterling Capital Maryland Intermediate Tax-Free Fund	0.45%		0.40	%(2)
Sterling Capital North Carolina Intermediate Tax-Free Fund	0.45%		0.45	%
Sterling Capital South Carolina Intermediate Tax-Free Fund	0.45%		0.45	%
Sterling Capital Virginia Intermediate Tax-Free Fund	0.45%		0.45	%
Sterling Capital West Virginia Intermediate Tax-Free Fund	0.45%		0.45	%
Sterling Capital National Tax-Free Money Market Fund	0.25%		0.20	%(4)
Sterling Capital Prime Money Market Fund	0.40%		0.28	%(4)
Sterling Capital U.S. Treasury Money Market Fund	0.40%		0.26	%(4)
Sterling Capital Strategic Allocation Conservative Fund	0.25%		0.25	%
Sterling Capital Strategic Allocation Balanced Fund	0.25%		0.25	%
Sterling Capital Strategic Allocation Growth Fund	0.25%		0.25	%
Sterling Capital Strategic Allocation Equity Fund	0.25%		0.25	%

    ⁽¹⁾ For all or a portion of the period ended March 31, 2011 Sterling Capital voluntarily waived additional advisory fees. Except as reflected below, voluntary investment advisory fee waivers are not subject to recoupment in subsequent fiscal periods, and may be discontinued at any time.

    ⁽²⁾ Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2011 through January 31, 2012.

    ⁽³⁾ Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from March 1, 2011 through January 31, 2012.

    ⁽⁴⁾ Sterling Capital has contractually agreed to limit the advisory fees paid by each Money Market Fund to 0.20% with regard to the Sterling Capital National Tax-Free Money Market Fund, 0.28% with regard to the Sterling Capital Prime Money Market Fund, and 0.26% with regard to the Sterling Capital U.S. Treasury Money Market Fund (each, an “Advisory Fee Limit”) for the period from March 1, 2009 through February 29, 2012. From March

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   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

1, 2010 through February 29, 2012, Sterling Capital may recoup from each Money Market Fund all or a portion of the advisory fees that it voluntarily waives with respect to such Fund beyond the Advisory Fee Limit during the period from March 1, 2009 through February 29, 2012 (the “Recoupment Amount”), subject to certain limitations. Sterling Capital may not recoup any amount from a Fund if the Recoupment Amount plus the Advisory Fee Limit would exceed the Contractual Fee Rate noted in the table above.

As of March 31, 2011, the amount of waived fees that are subject to possible recoupment through February 29, 2012 are as follows:

	Amount
Sterling Capital National Tax-Free Money Market Fund	$	63,343
Sterling Capital Prime Money Market Fund		1,880,532
Sterling Capital U.S. Treasury Money Market Fund		3,498,079

Pursuant to a sub-advisory agreement with Sterling Capital, Artio Global Management LLC (Artio) serves as the sub-advisor to the Sterling Capital International Fund, subject to the general supervision of the Fund’s Board and Sterling Capital. Pursuant to a sub-advisory agreement with Sterling Capital, Federated Investment Management Company (Federated) serves as the sub-advisor to the Sterling Capital Prime Money Market Fund and the Sterling Capital National Tax-Free Money Market Fund, subject to the general supervision of the Funds’ Board and Sterling Capital. Pursuant to a sub-advisory agreement with Sterling Capital, Scott & Stringfellow LLC (Scott & Stringfellow), a wholly owned subsidiary of BB&T Corporation, serves as the sub-advisor to the Sterling Capital Special Opportunities Fund and the Sterling Capital Equity Income Fund, subject to the general supervision of the Funds’ Board and Sterling Capital. For their services, sub-advisors are entitled to a fee, payable by Sterling Capital.

Sterling Capital serves as the administrator to the Funds pursuant to an administration agreement. The Funds pay their portion of a fee to Sterling Capital for providing administration services based on the aggregate assets of the Funds and the Sterling Capital Variable Insurance Funds, excluding the assets of the Funds of Funds, at a rate of 0.11% on the first $3.5 billion of average net assets; 0.075% on the next $1 billion of average net assets; 0.06% on the next $1.5 billion of average net assets; and 0.04% of average net assets over $6 billion. This fee is accrued daily and payable on a monthly basis. Expenses incurred are reflected on the Statements of Operations as “Administration fees.” Pursuant to a sub-administration agreement with Sterling Capital, BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon” or the “Sub-Administrator”), serves as the sub-administrator to the Funds subject to the general supervision of the Board and Sterling Capital. For these services, BNY Mellon is entitled to a fee payable by Sterling Capital.

BNY Mellon serves as the Funds’ fund accountant and transfer agent and receives compensation by the Funds for these services. Expenses incurred are reflected on the Statements of Operations as “Fund accounting fees” and “Transfer agent fees.”

Sterling Capital’s Chief Compliance Officer (“CCO”) serves as the Funds’ CCO. The CCO’s compensation is reviewed and approved by the Funds’ Board and paid by Sterling Capital. However, the Funds reimburse Sterling Capital for their allocable portion of the CCO’s salary. Expenses incurred for the Funds are reflected on the Statements of Operations as “Compliance service fees.”

For the period ended March 31, 2011, the Funds paid $118,275 in brokerage fees to Scott & Stringfellow on the execution of purchases and sales of the Funds’ portfolio investments.

The Funds have adopted a Distribution and Shareholder Services Plan (the “Plan”) in accordance with Rule 12b-1 under the 1940 Act. Sterling Capital Distributors, Inc. (“the Distributor”) (formerly known as BB&T AM Distributors, Inc.) serves as distributor to the Funds pursuant to an underwriting agreement effective as of April 23, 2007. The Plan provides for payments to the Distributor of up to 0.50%, 1.00%, 1.00% and 0.50% of the average daily net assets of the Class A Shares, Class B Shares, Class C Shares, and Class R Shares, respectively, with the exception of the Sterling Capital Mid Value Fund and the Sterling Capital West Virginia Intermediate Tax-Free Fund which make payments of up to 0.25% of the average daily net assets for Class A. The Distributor contractually agreed to limit the distribution and service (12b-1) fees for Class A Shares of the Funds to 0.25% throughout the period covered by this report except for the Sterling Capital Mid Value Fund, Sterling Capital West Virginia Intermediate Tax-Free Fund, Sterling Capital Prime Money Market Fund and Sterling Capital U.S. Treasury Money Market Fund through January 31, 2012, and may voluntarily waive additional fees at any time. The total contractual and voluntary waiver of distribution fees was $1,612,659 for the period ended March 31, 2011. Distribution fee waivers are included in the Statements of Operations as “Less expenses waived by the Distributor” and these waivers are not subject to recoupment in subsequent fiscal periods. The Distributor is entitled to receive commissions on sales of shares of the Variable

124

Sterling Capital Funds

   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

Net Asset Value Funds. For the period ended March 31, 2011, the Distributor received $412,178 from commissions earned on sales of shares of the Variable Net Asset Value Funds. Commissions paid to affiliated broker-dealers during the period ended March 31, 2011 were $248,250. The fees may be used by the Distributor to pay banks, broker dealers and other institutions, including affiliates of the Investment Advisor.

Sterling Capital and/or its affiliates may pay out of their own bona fide profits compensation to broker-dealers and other persons for the sale and distribution of the shares and/or for the servicing of the shares. These are additional payments over and above the sales charge (including Rule 12b-1 fees) and service fees paid by the Funds. The payments, which may be different for different financial institutions, will not change the price an investor will pay for shares or the amount that a Fund will receive for the sale of shares.

Certain Officers and a Trustee of the Funds are affiliated with Sterling Capital or the Sub-Administrator. Such Officers and Trustee receive no compensation from the Funds for serving in their respective roles. Each of the Trustees who are not interested persons (as defined in the 1940 Act) of the Trust who serve on the Board are compensated at the annual rate of $30,000 plus $5,000 for each regularly scheduled quarterly meeting attended, $4,000 for each special meeting attended in person and $3,000 for each special meeting attended by telephone, plus reimbursement for certain out of pocket expenses. Each Trustee serving on a Committee of the Board receives a fee of $4,000 for each Committee meeting attended in person and $3,000 for each Committee meeting attended by telephone, plus reimbursement for certain out of pocket expenses. Additionally, the Chairman of the Board and the Audit Committee Chairman each receive an annual retainer of $10,000, and the Chairman of the Nominations Committee receives additional compensation at the rate of $1,000 for each meeting over which he or she presides as Chairman. The fees are allocated across the Funds and the Sterling Capital Variable Insurance Funds based upon relative net assets.

6. Concentration of Credit Risk:

The Tax-Free Funds invest primarily in debt instruments of municipal issuers in their respective states. The issuers’ abilities to meet their obligations may be affected by economic developments in a specific state or region.

7. Line of Credit:

U.S. Bank, N.A. has made available a credit facility to the Funds, pursuant to a Credit Agreement (the “Agreement”). The primary purpose of the Agreement is to allow the Funds to avoid security liquidations that Sterling Capital believes are unfavorable to shareholders. Outstanding principal amounts under the Agreement bear interest at a rate per annum equal to the Prime Rate minus two percent (2%), but never a net rate of less than two percent (2%) per annum. During the period ended March 31, 2011 the following Funds utilized lines of credit:

	Average Interest Rate	Average Loan Balance	Number of Days Outstanding	Interest Expense Incurred	Maximum Amount Borrowed During the Period
Sterling Capital Mid Value Fund	2.00%	$2,310,250	1	$1,067	$9,242,000
Sterling Capital Maryland Intermediate Tax- Free Fund	2.00%	39,000	3	7	39,000

8. Federal Income Tax Information:

Management evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as “Income tax expense” in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

At September 30, 2010, the following Funds had net capital loss carryforwards available to offset future net capital gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.

125

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   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

	Amount		Expires
Sterling Capital Select Equity Fund	$	120,078,510	2017
Sterling Capital Select Equity Fund		10,325,708	2018
Sterling Capital Mid Value Fund		4,654,561	2016
Sterling Capital Mid Value Fund		33,027,022	2017
Sterling Capital Mid Value Fund		17,450,982	2018
Sterling Capital Small Value Fund		560,977	2015
Sterling Capital Small Value Fund		5,873,289	2016
Sterling Capital Small Value Fund		4,139,048	2017
Sterling Capital Small Value Fund		1,280,281	2018
Sterling Capital International Fund		34,249,253	2017
Sterling Capital International Fund		25,579,528	2018
Sterling Capital Equity Income Fund		1,752,496	2017
Sterling Capital Equity Income Fund		35,182,274	2018
Sterling Capital Short-Term Bond Fund		48,188	2012
Sterling Capital Short-Term Bond Fund		2,094,190	2013
Sterling Capital Short-Term Bond Fund		1,246,269	2014
Sterling Capital Short-Term Bond Fund		3,940,976	2015
Sterling Capital Short-Term Bond Fund		160,380	2016
Sterling Capital Intermediate U.S. Government Fund		2,827,748	2014
Sterling Capital Intermediate U.S. Government Fund		10,119,332	2016
Sterling Capital Strategic Allocation Conservative Fund		122,214	2017
Sterling Capital Strategic Allocation Conservative Fund		8,974,540	2018
Sterling Capital Strategic Allocation Balanced Fund		508,094	2017
Sterling Capital Strategic Allocation Balanced Fund		9,432,218	2018
Sterling Capital Strategic Allocation Growth Fund		1,235,282	2017
Sterling Capital Strategic Allocation Growth Fund		8,914,876	2018
Sterling Capital Strategic Allocation Equity Fund		958,260	2017
Sterling Capital Strategic Allocation Equity Fund		8,277,491	2018

The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2010, were as follows:

	Distributions paid from
	Ordinary Income		Net Long-Term Gains		Total  Taxable Distributions		Tax  Exempt Distributions		Total Distributions Paid*
Sterling Capital Select Equity Fund.	$	2,653,688	$	—	$	2,653,688	$	—	$	2,653,688
Sterling Capital Mid Value Fund		1,464,936		—		1,464,936		—		1,464,936
Sterling Capital Small Value Fund		325,652		—		325,652		—		325,652
Sterling Capital International Fund		1,790,076		—		1,790,076		—		1,790,076
Sterling Capital Special Opportunities Fund		—		—		—		—		—
Sterling Capital Equity Income Fund		8,024,629		—		8,024,629		—		8,024,629
Sterling Capital Short-Term Bond Fund		2,014,753		—		2,014,753		—		2,014,753
Sterling Capital Intermediate U.S. Government Fund		6,548,623		—		6,548,623		—		6,548,623
Sterling Capital Total Return Bond Fund		18,561,594		—		18,561,594		—		18,561,594
Sterling Capital Kentucky Intermediate Tax-Free Fund		129,835		80,683		210,518		634,868		845,386
Sterling Capital Maryland Intermediate Tax-Free Fund		4,261		2,231		6,492		911,102		917,594
Sterling Capital North Carolina Intermediate Tax-Free Fund		238,236		783,605		1,021,841		5,228,160		6,250,001
Sterling Capital South Carolina Intermediate Tax-Free Fund		5,618		—		5,618		1,030,343		1,035,961
Sterling Capital Virginia Intermediate Tax-Free Fund		532,421		358,874		891,295		2,961,164		3,852,459
Sterling Capital West Virginia Intermediate Tax-Free Fund		21,240		132,670		153,910		3,120,288		3,274,198
Sterling Capital National Tax-Free Money Market Fund		68		31		99		138,125		138,224
Sterling Capital Prime Money Market Fund		321,834		—		321,834		—		321,834
Sterling Capital U.S. Treasury Money Market Fund		279,363		—		279,363		—		279,363
Sterling Capital Strategic Allocation Conservative Fund		428,602		—		428,602		—		428,602
Sterling Capital Strategic Allocation Balanced Fund		769,610		—		769,610		—		769,610
Sterling Capital Strategic Allocation Growth Fund		442,022		—		442,022		—		442,022
Sterling Capital Strategic Allocation Equity Fund		94,423		—		94,423		—		94,423
*      Total Distributions paid may differ from the Statements of Changes in NetAssets because distributions are recognized when actually paid for tax purposes.

126

Sterling Capital Funds

   Notes to Financial Statements (Unaudited) — (continued)

   March 31, 2011

Under current tax law, capital losses realized after October 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. The following Funds had deferred post October capital and currency losses, which will be treated as arising on the first business day of the fiscal year ended September 30, 2011:

	Post- October Capital Losses		Post- October Currency Losses
Sterling Capital Equity Income Fund	$	5,011,707	$	20,418
Sterling Capital Short-Term Bond Fund		345,563		—
Sterling Capital Prime Money Market Fund		19,807		—
Sterling Capital Strategic Allocation Conservative Fund		37,533		—
Sterling Capital Strategic Allocation Balanced Fund		4,206,232		—
Sterling Capital Strategic Allocation Growth Fund		4,629,141		—
Sterling Capital Strategic Allocation Equity Fund		1,125,078		—

At March 31, 2011, federal income tax cost, gross unrealized appreciation and gross unrealized depreciation on securities were as follows:

	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation
Sterling Capital Select Equity Fund	$	202,118,235	$	42,169,554	$	(4,505,524	)	$	37,664,030
Sterling Capital Mid Value Fund		310,706,491		104,133,590		(10,330,434	)		93,803,156
Sterling Capital Small Value Fund		77,311,832		16,902,519		(2,562,596	)		14,339,923
Sterling Capital International Fund		77,230,201		16,751,189		(2,663,963	)		14,087,226
Sterling Capital Special Opportunities Fund		562,669,779		132,027,094		(9,871,567	)		122,155,527
Sterling Capital Equity Income Fund		616,817,625		113,866,296		(3,267,986	)		110,598,310
Sterling Capital Short-Term Bond Fund		63,973,917		444,543		(186,246	)		258,297
Sterling Capital Intermediate U.S. Government Fund		180,713,435		5,292,420		(1,259,960	)		4,032,460
Sterling Capital Total Return Bond Fund		419,098,290		13,945,860		(2,957,210	)		10,988,650
Sterling Capital Kentucky Intermediate Tax-Free Fund		22,036,053		612,932		(91,516	)		521,416
Sterling Capital Maryland Intermediate Tax-Free Fund		33,736,431		1,112,725		(160,677	)		952,048
Sterling Capital North Carolina Intermediate Tax-Free Fund		194,919,183		5,619,172		(966,838	)		4,652,334
Sterling Capital South Carolina Intermediate Tax-Free Fund		49,171,100		877,879		(326,728	)		551,151
Sterling Capital Virginia Intermediate Tax-Free Fund		107,137,688		4,380,227		(530,716	)		3,849,511
Sterling Capital West Virginia Intermediate Tax-Free Fund		97,769,975		2,319,301		(803,982	)		1,515,319
Sterling Capital National Tax-Free Money Market Fund		134,100,048		—		—			—
Sterling Capital Prime Money Market Fund		504,084,039		—		—			—
Sterling Capital U.S. Treasury Money Market Fund		150,055,046		—		—			—
Sterling Capital Strategic Allocation Conservative Fund		13,530,989		2,390,502		(547,165	)		1,843,337
Sterling Capital Strategic Allocation Balanced Fund		34,185,375		6,658,676		(1,852,999	)		4,805,677
Sterling Capital Strategic Allocation Growth Fund		25,270,212		5,516,216		(1,679,019	)		3,837,197
Sterling Capital Strategic Allocation Equity Fund		8,913,606		1,960,369		(1,003,359	)		957,010

9. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has noted no events that require recognition or disclosure in the financial statements.

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Sterling Capital Funds

   March 31, 2011

Other Information (Unaudited)

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-228-1872; and (ii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-228-1872 and (ii) on the Commission’s website at http://www.sec.gov.

The Funds file complete Schedules of Portfolio Holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available without charge on the Commission’s website at http://www.sec.gov, or may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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INVESTMENT ADVISOR

Sterling Capital Management LLC

Two Morrocroft Centre

4064 Colony Road, Suite 300

Charlotte, NC 28211

DISTRIBUTOR

Sterling Capital Distributors, Inc.

760 Moore Road

King of Prussia, PA 19406

LEGAL COUNSEL

Ropes & Gray LLP

One Metro Center

700 12th Street, N.W.

Suite 900

Washington, DC 20005

TRANSFER AGENT

BNY Mellon Investment Servicing (US) Inc.

760 Moore Road

King of Prussia, PA 19406

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

1601 Market Street

Philadelphia, PA 19103

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are effective to provide reasonable assurance that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that information required to be disclosed by the registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)     Sterling Capital Funds (formerly, BB&T Funds)                                                                 

By (Signature and Title)             /s/ E.G. Purcell, III                                                                                           

                                                     E.G. Purcell, III, President

                                                     (principal executive officer)

Date     5/26/11                                                                                                                                                       

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)             /s/ E.G. Purcell, III                                                                                           

                                                     E.G. Purcell, III, President

                                                     (principal executive officer)

Date     5/26/11                                                                                                                                                       

By (Signature and Title)             /s/ James T. Gillespie

                                                     James T. Gillespie, Treasurer

                                                     (principal financial officer)

Date     5/26/11