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

(Exact name of registrant as specified in charter)

	434 Fayetteville Street, 5th Floor Raleigh, NC 27601-0575 (Address of principal executive offices) (Zip code)
	James T. Gillespie, President Sterling Capital Funds 434 Fayetteville Street, 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, 2014

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.

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 may 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	4
Schedules of Portfolio Investments
Sterling Capital Large Cap Value Diversified Fund	8
Sterling Capital Mid Value Fund	10
Sterling Capital Small Cap Value Diversified Fund	11
Sterling Capital Special Opportunities Fund	14
Sterling Capital Equity Income Fund	15
Sterling Capital Long/Short Equity Fund	16
Sterling Capital Ultra Short Bond Fund	19
Sterling Capital Short Duration Bond Fund	23
Sterling Capital Intermediate U.S. Government Fund	27
Sterling Capital Total Return Bond Fund	28
Sterling Capital Corporate Fund	34
Sterling Capital Securitized Opportunities Fund	36
Sterling Capital Kentucky Intermediate Tax-Free Fund	38
Sterling Capital Maryland Intermediate Tax-Free Fund	40
Sterling Capital North Carolina Intermediate Tax-Free Fund	42
Sterling Capital South Carolina Intermediate Tax-Free Fund	46
Sterling Capital Virginia Intermediate Tax-Free Fund	49
Sterling Capital West Virginia Intermediate Tax-Free Fund	52
Sterling Capital Strategic Allocation Conservative Fund	55
Sterling Capital Strategic Allocation Balanced Fund	56
Sterling Capital Strategic Allocation Growth Fund	57
Financial Statements	58
Notes to Financial Statements	116
Other Information	131

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, 2013, and March 31, 2014. Equities began the period with strong gains before transitioning to a more modest increase in the spring. Fixed-income securities meanwhile experienced modest returns as they rebounded from a sharp downturn in 2013.

The economy expanded during the first half of the period under review but saw little growth during the second half, according to preliminary GDP estimates. Many specific components of the U.S. economy, including the labor market and industrial production, showed considerable signs of weakness. A harsh winter across much of the country created a drag on economic growth, while the prospect of economic weakening in China and Japan weighed on investor sentiment.

The U.S. economy continued to show signs of vulnerability as economic indicators presented investors with mixed signals early in the period, although most signs pointed to an improving picture later in the period. For example, both industrial production and retails sales declined significantly early in the period, only recovering once consumer confidence increased in the spring. Manufacturing activity was up overall throughout the period, but it too exhibited a sharp uptick in the spring. Corporate profits rose during the period, though earnings softened significantly in the first quarter of 2014.

The labor market remained weak during the period under review, even as the unemployment rate declined slightly. The actual breakdown of employment numbers was a cause of some concern, however, as a large number of workers remained underemployed and were relying on part-time and lower-paying jobs. Long-term unemployment also remained high, although it did decline during the period. Payroll gains dropped sharply during the harsh winter and recovered during the spring.

The U.S. gross domestic product increased at an annualized rate of 2.6% during the first half of this semiannual period. However, GDP grew at much less robust annualized rate of 0.1% during the second half of the period, according to preliminary figures. One significant economic headwind came in the form of the Federal Reserve’s plan to taper its aggressive quantitative easing policies, even as the initial moves were instituted gradually. The central bank reduced its monthly bond purchases by $5 billion at each of its last three meetings and Fed Chair Janet Yellen indicated the reductions would continue unless there was a significant change in the economic outlook.

The S&P 500^® Index¹ gained 11.35% during the six months under review. Small-cap stocks underperformed larger shares, with the Russell 2000 Index of small-cap stocks gaining 9.24%. Foreign stocks made modest gains, through Japanese equities, dampened by a consumption-tax increase and relatively tight monetary policy, were a notable exception. Emerging market equities underperformed developed market

equities during the period, as investors grew concerned about an economic slowdown in China as well as the developing crisis in the Ukraine.

U.S. fixed-income investments made a robust recovery from the sharp sell-off that lasted through much of 2013. The yield curve for U.S. Treasuries flattened significantly, which caused investors to seek higher yields elsewhere. As a result, investment-grade corporate bonds posted strong performance for the period. Emerging market bonds, which performed poorly in the first half of the period, rebounded sharply in January amid increased levels of volatility.

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. We look forward to serving your investment needs during the months and years ahead.

Sincerely,

James T. Gillespie

President

Sterling Capital Funds

Jeffrey J. Schappe, CFA

Managing Director-Chief Market Strategist

Sterling Capital Management LLC

¹ “S&P 500^®” is a registered service mark of Standard & Poor’s Corporation, which does not sponsor and is in no way affiliated with the Sterling Capital Funds. The S&P 500^® Index is generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. A Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.

Past performance does not guarantee future results. Mutual fund investing involves risk including the possible loss
of principal.

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 (each a “Fund” and collectively, the “Funds”) and is paid a fee for its services. Shares of 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, LLC. 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)

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, 2014:

Sterling Capital Large CapValue Diversified Fund (formerly known as Sterling Capital Select Equity Fund)	Percentage of net assets
Consumer Discretionary		6.1	%
Consumer Staples		4.7	%
Energy		13.3	%
Financials		26.1	%
Health Care		13.2	%
Industrials		12.1	%
Information Technology		11.1	%
Materials		3.8	%
Telecommunication Services		1.4	%
Utilities		5.0	%
Money Market Fund		3.0	%
		99.8	%
Sterling Capital Mid Value Fund	Percentage of net assets
Consumer Discretionary		20.3	%
Energy		0.1	%
Financials		34.6	%
Health Care		13.8	%
Industrials		5.1	%
Information Technology		24.8	%
Money Market Fund		1.2	%
		99.9	%
Sterling Capital Small CapValue Diversified Fund (formerly known as Sterling Capital Small Value Fund)	Percentage of net assets
Consumer Discretionary		9.8	%
Consumer Staples		2.1	%
Energy		5.8	%
Financials		38.6	%
Health Care		4.7	%
Industrials		13.0	%
Information Technology		11.1	%
Materials		4.7	%
Telecommunication Services		1.3	%
Utilities		5.2	%
Exchange Traded Fund		0.5	%
Money Market Fund		2.6	%
		99.4	%
Sterling Capital Special Opportunities Fund	Percentage of net assets
Consumer Discretionary		12.1	%
Consumer Staples		3.2	%
Energy		10.5	%
Financials		9.0	%
Health Care		15.7	%
Industrials		9.7	%
Information Technology		34.3	%
Money Market Fund		5.9	%
		100.4	%

Sterling Capital Equity Income Fund	Percentage of net assets
Consumer Discretionary		14.4	%
Consumer Staples		15.5	%
Energy		20.4	%
Financials		6.1	%
Health Care		16.5	%
Industrials		2.0	%
Information Technology		15.8	%
Telecommunication Services		3.2	%
MoneyMarket Fund		6.0	%
		99.9	%
Sterling Capital Long/Short Equity Fund	Long-Term Investment Percentage of net assets
Consumer Discretionary		2.2	%
Consumer Staples		7.1	%
Energy		22.4	%
Financials		20.3	%
Health Care		26.6	%
Industrials		0.9	%
Information Technology		3.8	%
Materials		0.0	%
MoneyMarket Fund		14.7	%
		98.0	%
Sterling Capital Long/Short Equity Fund	Investments Sold Short Percentage     of net assets
Consumer Discretionary		(3.7	)%
Consumer Staples		(0.1	)%
Energy		(2.3	)%
Exchange Traded Funds		(3.5	)%
Financials		(11.6	)%
Health Care		(7.6	)%
Industrials		(0.3	)%
Information Technology		(3.4	)%
		(32.5	)%
Sterling Capital Ultra Short Bond Fund	Percentage of net assets
Asset Backed Securities		12.2	%
Collateralized Mortgage Obligations		0.1	%
Commercial Mortgage-Backed Securities		11.6	%
Corporate Bonds		54.6	%
Foreign Government Bond		0.5	%
Municipal Bonds		21.6	%
MoneyMarket Fund		0.4	%
		101.0	%
Sterling Capital Short Duration Bond Fund (formerly known as Sterling Capital Short-Term Bond Fund)	Percentage of net assets
Asset Backed Securities		10.5	%
Collateralized Mortgage Obligations		2.0	%
Commercial Mortgage-Backed Securities		19.5	%
Corporate Bonds		60.2	%
Foreign Government Bond		0.5	%
Mortgage-Backed Securities		0.1	%
Municipal Bonds		3.7	%
Preferred Stocks		0.5	%
U.S. Treasury Notes		1.1	%
Money Market Fund		1.5	%
		99.6	%

2

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Intermediate U.S. Government Fund	Percentage of net assets
Collateralized Mortgage Obligations		8.0	%
Corporate Bonds		7.8	%
Foreign Government Bond		0.7	%
Mortgage-Backed Securities		17.9	%
Municipal Bonds		2.1	%
U.S. Government Agencies		37.6	%
U.S. Treasury Notes		23.2	%
Money Market Fund		2.2	%
		99.5	%
Sterling Capital Total Return Bond Fund	Percentage of net assets
Asset Backed Securities		4.2	%
Collateralized Mortgage Obligations		9.1	%
Commercial Mortgage-Backed Securities		18.0	%
Corporate Bonds		41.7	%
Foreign Government Bonds		1.5	%
Mortgage-Backed Securities		11.0	%
Municipal Bonds		9.1	%
Preferred Stocks		1.7	%
U.S. Treasury Notes		1.2	%
Money Market Fund		2.1	%
		99.6	%
Sterling Capital Corporate Fund	Percentage of net assets
Corporate Bonds		94.5	%
Preferred Stocks		3.4	%
U.S. Treasury Notes		1.1	%
Money Market Fund		0.0	%
		99.0	%
Sterling Capital Securitized Opportunities Fund	Percentage of net assets
Asset Backed Securities		9.2	%
Collateralized Mortgage Obligations		25.7	%
Commercial Mortgage-Backed Securities		19.6	%
Mortgage-Backed Securities		37.7	%
U.S. Government Agencies		1.7	%
U.S. Treasury Bonds		3.3	%
Money Market Fund		2.7	%
		99.9	%
Sterling Capital Kentucky Intermediate Tax-Free Fund	Percentage of net assets
Kentucky Municipal Bonds		96.9	%
Money Market Fund		2.2	%
		99.1	%
Sterling Capital Maryland Intermediate Tax-Free Fund	Percentage of net assets
District of Columbia Municipal Bonds		4.7	%
Maryland Municipal Bonds		92.9	%
Money Market Fund		1.8	%
		99.4	%

Sterling Capital North Carolina Intermediate Tax-Free Fund	Percentage of net assets
North Carolina Municipal Bonds		97.0	%
Money Market Fund		1.8	%
		98.8	%
Sterling Capital South Carolina Intermediate Tax-Free Fund	Percentage of net assets
South Carolina Municipal Bonds		91.8	%
Money Market Fund		6.9	%
		98.7	%
Sterling Capital Virginia Intermediate Tax-Free Fund	Percentage of net assets
District of Columbia Municipal Bonds		1.7	%
Virginia Municipal Bonds		95.5	%
Money Market Fund		1.9	%
		99.1	%
Sterling Capital West Virginia Intermediate Tax-Free Fund	Percentage of net assets
West Virginia Municipal Bonds		96.5	%
Money Market Fund		2.7	%
		99.2	%
Sterling Capital Strategic Allocation Conservative Fund	Percentage of net assets
Equity Funds		40.2	%
Fixed Income Fund		57.5	%
Money Market Fund		2.1	%
		99.8	%
Sterling Capital Strategic Allocation Balanced Fund	Percentage of net assets
Equity Funds		60.2	%
Fixed Income Fund		37.5	%
Money Market Fund		2.2	%
		99.9	%
Sterling Capital Strategic Allocation Growth Fund	Percentage of net assets
Equity Funds		75.2	%
Fixed Income Fund		22.7	%
Money Market Fund		2.0	%
		99.9	%

3

Sterling Capital Funds

Expense Example (Unaudited)

As a shareholder of the Sterling Capital Funds (each “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, 2013 through March 31, 2014.

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 period.

	Beginning Account Value 10/1/13			Ending Account Value 3/31/14			Expenses Paid During Period* 10/1/13 - 3/31/14			Annualized Expense Ratio During Period 10/1/13 - 3/31/14
Sterling Capital Large Cap Value Diversified Fund
Class A Shares		$	1,000.00		$	1,168.30		$	5.73		1.06	%
Class B Shares			1,000.00			1,164.00			9.71		1.80	%
Class C Shares			1,000.00			1,164.50			9.77		1.81	%
Institutional Shares			1,000.00			1,170.24			4.38		0.81	%
Sterling Capital Mid Value Fund
Class A Shares			1,000.00			1,099.61			6.07		1.16	%
Class B Shares			1,000.00			1,095.08			9.92		1.90	%
Class C Shares			1,000.00			1,095.38			10.03		1.92	%
Institutional Shares			1,000.00			1,100.52			4.77		0.91	%
Class R Shares			1,000.00			1,097.94			7.27		1.39	%
Sterling Capital Small Cap Value Diversified Fund
Class A Shares			1,000.00			1,120.92			6.50		1.23	%
Class B Shares			1,000.00			1,116.89			10.45		1.98	%
Class C Shares			1,000.00			1,117.45			10.51		1.99	%
Institutional Shares			1,000.00			1,122.98			5.19		0.98	%
Class R Shares			1,000.00			1,121.09			7.99		1.51	%
Sterling Capital Special Opportunities Fund
Class A Shares			1,000.00			1,134.13			6.44		1.21	%
Class B Shares			1,000.00			1,129.90			10.35		1.95	%
Class C Shares			1,000.00			1,129.21			10.40		1.96	%
Institutional Shares			1,000.00			1,134.80			5.11		0.96	%
Class R Shares			1,000.00			1,132.18			7.76		1.46	%
Sterling Capital Equity Income Fund
Class A Shares			1,000.00			1,068.72			6.19		1.20	%
Class B Shares			1,000.00			1,064.86			9.99		1.94	%
Class C Shares			1,000.00			1,064.97			10.04		1.95	%
Institutional Shares			1,000.00			1,070.35			4.90		0.95	%
Class R Shares			1,000.00			1,067.83			7.48		1.45	%
Sterling Capital Long/Short Equity Fund
Class A Shares			1,000.00			1,137.36			18.12		3.40	%
Class C Shares			1,000.00			1,133.92			21.81		4.10	%
Institutional Shares			1,000.00			1,139.08			16.59		3.11	%
Sterling Capital Ultra Short Bond Fund
Class A Shares			1,000.00			1,002.15			3.54		0.71	%
Institutional Shares			1,000.00			1,003.41			2.30		0.46	%
Sterling Capital Short Duration Bond Fund
Class A Shares			1,000.00			1,009.42			3.71		0.74	%
Class C Shares			1,000.00			1,005.69			7.45		1.49	%
Institutional Shares			1,000.00			1,010.69			2.46		0.49	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares			1,000.00			1,010.04			4.71		0.94	%
Class B Shares			1,000.00			1,007.23			8.46		1.69	%
Class C Shares			1,000.00			1,007.23			8.41		1.68	%
Institutional Shares			1,000.00			1,011.27			3.41		0.68	%
Sterling Capital Total Return Bond Fund
Class A Shares			1,000.00			1,029.82			4.10		0.81	%
Class B Shares			1,000.00			1,026.07			7.88		1.56	%
Class C Shares			1,000.00			1,026.03			7.88		1.56	%
Institutional Shares			1,000.00			1,031.16			2.84		0.56	%
Class R Shares			1,000.00			1,028.82			5.36		1.06	%

4

Sterling Capital Funds

Expense Example (Unaudited)

	Beginning Account Value 10/1/13			Ending Account Value 3/31/14			Expenses Paid During Period* 10/1/13 - 3/31/14				Annualized Expense Ratio During Period 10/1/13 - 3/31/14
Sterling Capital Corporate Fund
Class A Shares		$	1,000.00		$	1,032.79		$	4.21			0.83	%
Class C Shares			1,000.00			1,027.76			7.99			1.58	%
Institutional Shares			1,000.00			1,034.07			2.94			0.58	%
Sterling Capital Securitized Opportunities Fund
Class A Shares			1,000.00			1,013.30			4.42			0.88	%
Class C Shares			1,000.00			1,010.27			8.17			1.63	%
Institutional Shares			1,000.00			1,014.58			3.16			0.63	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,016.14			4.88			0.97	%
Class C Shares			1,000.00			1,012.38			8.63			1.72	%
Institutional Shares			1,000.00			1,017.41			3.62			0.72	%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,016.70			4.73			0.94	%
Class C Shares			1,000.00			1,013.85			8.54			1.70	%
Institutional Shares			1,000.00			1,018.86			3.47			0.69	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,018.88			4.58			0.91	%
Class C Shares			1,000.00			1,014.17			8.34			1.66	%
Institutional Shares			1,000.00			1,020.12			3.32			0.66	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,017.65			4.68			0.93	%
Class C Shares			1,000.00			1,013.78			8.38			1.67	%
Institutional Shares			1,000.00			1,018.93			3.42			0.68	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,018.09			4.58			0.91	%
Class C Shares			1,000.00			1,014.33			8.39			1.67	%
Institutional Shares			1,000.00			1,019.38			3.32			0.66	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,019.95			4.63			0.92	%
Class C Shares			1,000.00			1,015.13			8.39			1.67	%
Institutional Shares			1,000.00			1,020.18			3.37			0.67	%
Sterling Capital Strategic Allocation Conservative Fund
Class A Shares			1,000.00			1,056.42			2.20			0.43	%
Class B Shares			1,000.00			1,052.39			6.04			1.18	%
Class C Shares			1,000.00			1,053.24			6.04			1.18	%
Institutional Shares			1,000.00			1,058.11			0.92			0.18	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares			1,000.00			1,070.85			2.01			0.39	%
Class B Shares			1,000.00			1,066.82			5.87			1.14	%
Class C Shares			1,000.00			1,067.04			5.87	��		1.14	%
Institutional Shares			1,000.00			1,072.73			0.72			0.14	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,081.12			2.08			0.40	%
Class B Shares			1,000.00			1,077.66			5.96			1.15	%
Class C Shares			1,000.00			1,077.37			5.96			1.15	%
Institutional Shares			1,000.00			1,083.32			0.78			0.15	%

* 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) for all Classes except for Class A Shares, Class C Shares and Institutional Shares of Sterling Capital Long/Short Equity Fund, which are multiplied by 106 days divided by 365 (to reflect the period from commencement of operations).

5

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 10/1/13			Ending Account Value 3/31/14			Expenses Paid During Period* 10/1/13 - 3/31/14			Annualized Expense Ratio During Period 10/1/13 - 3/31/14
Sterling Capital Large Cap Value Diversified Fund
Class A Shares		$	1,000.00		$	1,019.65		$	5.34		1.06	%
Class B Shares			1,000.00			1,015.96			9.05		1.80	%
Class C Shares			1,000.00			1,015.91			9.10		1.81	%
Institutional Shares			1,000.00			1,020.89			4.08		0.81	%
Sterling Capital Mid Value Fund
Class A Shares			1,000.00			1,019.15			5.84		1.16	%
Class B Shares			1,000.00			1,015.46			9.55		1.90	%
Class C Shares			1,000.00			1,015.36			9.65		1.92	%
Institutional Shares			1,000.00			1,020.39			4.58		0.91	%
Class R Shares			1,000.00			1,018.00			6.99		1.39	%
Sterling Capital Small Cap Value Diversified Fund
Class A Shares			1,000.00			1,018.80			6.19		1.23	%
Class B Shares			1,000.00			1,015.06			9.95		1.98	%
Class C Shares			1,000.00			1,015.01			10.00		1.99	%
Institutional Shares			1,000.00			1,020.04			4.94		0.98	%
Class R Shares			1,000.00			1,017.40			7.59		1.51	%
Sterling Capital Special Opportunities Fund
Class A Shares			1,000.00			1,018.90			6.09		1.21	%
Class B Shares			1,000.00			1,015.21			9.80		1.95	%
Class C Shares			1,000.00			1,015.16			9.85		1.96	%
Institutional Shares			1,000.00			1,020.14			4.84		0.96	%
Class R Shares			1,000.00			1,017.65			7.34		1.46	%
Sterling Capital Equity Income Fund
Class A Shares			1,000.00			1,018.95			6.04		1.20	%
Class B Shares			1,000.00			1,015.26			9.75		1.94	%
Class C Shares			1,000.00			1,015.21			9.80		1.95	%
Institutional Shares			1,000.00			1,020.19			4.78		0.95	%
Class R Shares			1,000.00			1,017.70			7.29		1.45	%
Sterling Capital Long/Short Equity Fund
Class A Shares			1,000.00			1,007.98			17.02		3.40	%
Class C Shares			1,000.00			1,004.49			20.49		4.10	%
Institutional Shares			1,000.00			1,009.42			15.58		3.11	%
Sterling Capital Ultra Short Bond Fund
Class A Shares			1,000.00			1,021.39			3.58		0.71	%
Institutional Shares			1,000.00			1,022.64			2.32		0.46	%
Sterling Capital Short Duration Bond Fund
Class A Shares			1,000.00			1,021.24			3.73		0.74	%
Class C Shares			1,000.00			1,017.50			7.49		1.49	%
Institutional Shares			1,000.00			1,022.49			2.47		0.49	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares			1,000.00			1,020.24			4.73		0.94	%
Class B Shares			1,000.00			1,016.50			8.50		1.69	%
Class C Shares			1,000.00			1,016.55			8.45		1.68	%
Institutional Shares			1,000.00			1,021.54			3.43		0.68	%
Sterling Capital Total Return Bond Fund
Class A Shares			1,000.00			1,020.89			4.08		0.81	%
Class B Shares			1,000.00			1,017.15			7.85		1.56	%
Class C Shares			1,000.00			1,017.15			7.85		1.56	%
Institutional Shares			1,000.00			1,022.14			2.82		0.56	%
Class R Shares			1,000.00			1,019.65			5.34		1.06	%

6

Sterling Capital Funds

Expense Example (Unaudited)

	Beginning Account Value 10/1/13			Ending Account Value 3/31/14			Expenses Paid During Period* 10/1/13 - 3/31/14			Annualized Expense Ratio During Period 10/1/13 - 3/31/14
Sterling Capital Corporate Fund
Class A Shares		$	1,000.00		$	1,020.79		$	4.18		0.83	%
Class C Shares			1,000.00			1,017.05			7.95		1.58	%
Institutional Shares			1,000.00			1,022.04			2.92		0.58	%
Sterling Capital Securitized Opportunities Fund
Class A Shares			1,000.00			1,020.54			4.43		0.88	%
Class C Shares			1,000.00			1,016.80			8.20		1.63	%
Institutional Shares			1,000.00			1,021.79			3.18		0.63	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.09			4.89		0.97	%
Class C Shares			1,000.00			1,016.36			8.65		1.72	%
Institutional Shares			1,000.00			1,021.34			3.63		0.72	%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.24			4.73		0.94	%
Class C Shares			1,000.00			1,016.45			8.55		1.70	%
Institutional Shares			1,000.00			1,021.49			3.48		0.69	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.39			4.58		0.91	%
Class C Shares			1,000.00			1,016.65			8.35		1.66	%
Institutional Shares			1,000.00			1,021.64			3.33		0.66	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.29			4.68		0.93	%
Class C Shares			1,000.00			1,016.60			8.40		1.67	%
Institutional Shares			1,000.00			1,021.54			3.43		0.68	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.39			4.58		0.91	%
Class C Shares			1,000.00			1,016.60			8.40		1.67	%
Institutional Shares			1,000.00			1,021.64			3.33		0.66	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.34			4.63		0.92	%
Class C Shares			1,000.00			1,016.60			8.40		1.67	%
Institutional Shares			1,000.00			1,021.59			3.38		0.67	%
Sterling Capital Strategic Allocation Conservative Fund
Class A Shares			1,000.00			1,022.79			2.17		0.43	%
Class B Shares			1,000.00			1,019.05			5.94		1.18	%
Class C Shares			1,000.00			1,019.05			5.94		1.18	%
Institutional Shares			1,000.00			1,024.03			0.91		0.18	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares			1,000.00			1,022.99			1.97		0.39	%
Class B Shares			1,000.00			1,019.25			5.74		1.14	%
Class C Shares			1,000.00			1,019.25			5.74		1.14	%
Institutional Shares			1,000.00			1,024.23			0.71		0.14	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,022.94			2.02		0.40	%
Class B Shares			1,000.00			1,019.20			5.79		1.15	%
Class C Shares			1,000.00			1,019.20			5.79		1.15	%
Institutional Shares			1,000.00			1,024.18			0.76		0.15	%

* 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) for all Classes except for Class A Shares, Class C Shares and Institutional Shares of Sterling Capital Long/Short Equity Fund, which are multiplied by 106 days divided by 365 (to reflect the period from commencement of operations).

7

Sterling Capital Large Cap Value Diversified Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares		Fair Value
COMMON STOCKS (96.8%)
	Consumer Discretionary (6.1%)
35,200	Apollo Education Group, Inc.(a)	$	1,205,248
3,900	Delphi Automotive PLC		264,654
51,800	DIRECTV(a)		3,958,556
16,156	Hanesbrands, Inc.		1,235,611
10,879	Lear Corp.		910,790
68,875	Macy’s, Inc.		4,083,599
9,700	Starz, Class A(a)		313,116
44,962	Viacom, Inc., Class B		3,821,320
			15,792,894
	Consumer Staples (4.7%)
110,495	Archer-Daniels-Midland Co.		4,794,378
17,951	Herbalife, Ltd.		1,028,054
15,339	Kimberly-Clark Corp.		1,691,125
87,521	Kroger Co. (The)		3,820,292
11,329	Nu Skin Enterprises, Inc., Class A		938,608
			12,272,457
	Energy (13.3%)
45,325	Baker Hughes, Inc.		2,947,031
66,734	Halliburton Co.		3,929,965
15,244	Helmerich & Payne, Inc.		1,639,645
51,300	Marathon Petroleum Corp.		4,465,152
60,700	National Oilwell Varco, Inc.		4,726,709
49,087	Occidental Petroleum Corp.		4,677,500
24,400	Patterson-UTI Energy, Inc.		772,992
68,075	Phillips 66		5,245,860
56,300	Ultra Petroleum Corp.(a)		1,513,907
90,325	Valero Energy Corp.		4,796,258
			34,715,019
	Financials (26.1%)
38,427	Ameriprise Financial, Inc.		4,229,660
60,600	Ares Capital Corp.		1,067,772
16,500	Artisan Partners Asset Management, Inc., Class A		1,060,125
18,118	Assurant, Inc.		1,176,945
19,600	Bank of Hawaii Corp.		1,187,956
14,200	BlackRock, Inc.		4,465,616
8,300	Corrections Corp. of America, REIT		259,956
82,000	Discover Financial Services		4,771,580
70,165	Duke Realty Corp., REIT		1,184,385
31,500	East West Bancorp, Inc.		1,149,750
194,900	Fifth Third Bancorp		4,472,955
91,550	Fulton Financial Corp.		1,151,699
32,465	Hartford Financial Services Group, Inc.		1,145,041
101,300	Healthcare Trust of America, Inc.		1,153,807
35,565	Hospitality Properties Trust, REIT		1,021,427
118,450	Huntington Bancshares, Inc.		1,180,947
89,100	KeyCorp.		1,268,784
17,050	Legg Mason, Inc.		836,132
13,100	Liberty Property Trust, REIT		484,176
19,299	Lincoln National Corp.		977,880
94,704	MetLife, Inc.		5,000,371
71,800	New York Community Bancorp, Inc.		1,153,826
33,837	Omega Healthcare Investors, Inc., REIT		1,134,216
55,936	Piedmont Office Realty Trust, Inc., Class A, REIT		959,302
60,516	PNC Financial Services Group, Inc. (The)		5,264,892
23,484	Principal Financial Group, Inc.		1,080,029
51,543	Prudential Financial, Inc.		4,363,115

Shares		Fair Value
COMMON STOCKS — (continued)
	Financials — (continued)
50,800	U.S. Bancorp.	$	2,177,288
34,975	Ventas, Inc., REIT		2,118,436
211,949	Wells Fargo & Co.		10,542,343
			68,040,411
	Health Care (13.2%)
60,207	Aetna, Inc.		4,513,719
31,625	Amgen, Inc.		3,900,628
61,652	Cardinal Health, Inc.		4,314,407
6,668	Charles River Laboratories International, Inc.(a)		402,347
9,158	Jazz Pharmaceuticals PLC(a)		1,270,031
22,633	McKesson Corp.		3,996,309
70,542	Mylan, Inc.(a)		3,444,566
259,300	Pfizer, Inc.		8,328,716
13,552	United Therapeutics Corp.(a)		1,274,295
28,502	WellPoint, Inc.		2,837,374
			34,282,392
	Industrials (12.1%)
2,700	Alaska Air Group, Inc.		251,937
10,181	Alliant Techsystems, Inc.		1,447,229
6,700	Boeing Co. (The)		840,783
7,348	Copa Holdings SA, Class A		1,066,856
129,111	Delta Air Lines, Inc.		4,473,696
65,327	Exelis, Inc.		1,241,866
42,823	General Dynamics Corp.		4,664,281
23,225	Lockheed Martin Corp.		3,791,249
39,233	Northrop Grumman Corp.		4,840,568
21,393	Oshkosh Corp.		1,259,406
45,600	Pitney Bowes, Inc.		1,185,144
49,665	Raytheon Co.		4,906,405
57,612	RR Donnelley & Sons Co.		1,031,255
16,181	Spirit Aerosystems Holdings, Inc., Class A(a)		456,142
			31,456,817
	Information Technology (11.1%)
69,543	Activision Blizzard, Inc.		1,421,459
6,400	Apple, Inc.		3,435,136
20,701	Arrow Electronics, Inc.(a)		1,228,811
29,552	Booz Allen Hamilton Holding Corp.		650,144
129,862	Brocade Communications Systems, Inc.(a)		1,377,836
19,162	Computer Sciences Corp.		1,165,433
192,345	Hewlett-Packard Co.		6,224,284
16,808	Ingram Micro, Inc., Class A(a)		496,844
79,354	Marvell Technology Group, Ltd.		1,249,825
197,554	Micron Technology, Inc.(a)		4,674,128
99,550	Oracle Corp.		4,072,591
15,615	SanDisk Corp.		1,267,782
18,749	Western Digital Corp.		1,721,533
			28,985,806
	Materials (3.8%)
9,200	Domtar Corp.		1,032,424
102,400	Dow Chemical Co. (The)		4,975,616
45,413	LyondellBasell Industries NV, Class A		4,039,032
			10,047,072
	Telecommunication Services (1.4%)
74,350	Verizon Communications, Inc.		3,536,829

Continued

8

Sterling Capital Large Cap Value Diversified Fund

  Schedule of Portfolio Investments — (continued)

  March 31, 2014 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Utilities (5.0%)
71,025	Duke Energy Corp.	$	5,058,401
139,044	PPL Corp.		4,607,918
59,550	Public Service Enterprise Group, Inc.		2,271,237
29,477	Vectren Corp.		1,161,099
			13,098,655
	Total Common Stocks (Cost $215,200,872)		252,228,352
MONEY MARKET FUND (3.0%)
7,627,004	Federated Treasury Obligations Fund, Institutional Shares		7,627,004
	Total Money Market Fund (Cost $7,627,004)		7,627,004
Total Investments — 99.8% (Cost $222,827,876)			259,855,356
Net Other Assets (Liabilities) — 0.2%			639,604
NET ASSETS — 100.0%		$	260,494,960

(a) Represents non-income producing security.

REIT - Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

9

Sterling Capital Mid Value Fund

  Schedule of Portfolio Investments

  March 31, 2014 (Unaudited)

Shares		Fair Value
COMMON STOCKS (98.7%)
	Consumer Discretionary (20.3%)
1,220,000	Ascena Retail Group, Inc.(a)	$	21,081,600
248,250	Chico’s FAS, Inc.		3,979,447
1,429,900	Interpublic Group of Cos., Inc. (The)		24,508,486
453,250	Kohl’s Corp.		25,744,600
818,500	News Corp., Class B(a)		13,668,950
443,320	Omnicom Group, Inc.		32,185,032
287,319	Universal Technical Institute, Inc.		3,720,781
291,900	Viacom, Inc., Class B		24,808,581
			149,697,477
	Energy (0.1%)
354,945	Forest Oil Corp.(a)		677,945
	Financials (34.6%)
1,740,475	Annaly Capital Management, Inc., REIT		19,093,011
618,692	Aspen Insurance Holdings, Ltd.		24,562,072
457,303	Assured Guaranty, Ltd.		11,578,912
1,347,500	E*TRADE Financial Corp.(a)		31,019,450
454,085	Endurance Specialty Holdings, Ltd.		24,443,396
114,930	Enstar Group, Ltd.(a)		15,666,108
1,109,500	Leucadia National Corp.		31,066,000
321,500	Lincoln National Corp.		16,290,405
56,882	Markel Corp.(a)		33,907,360
386,900	Ryman Hospitality Properties, Inc., REIT		16,450,988
717,000	Willis Group Holdings PLC		31,641,210
			255,718,912
	Health Care (13.8%)
154,704	Becton Dickinson & Co.		18,112,744
227,413	Covidien PLC.		16,751,242
156,928	Laboratory Corp. of America Holdings(a)		15,411,899
214,000	Omnicare, Inc.		12,769,380
257,542	WellPoint, Inc.		25,638,306
144,022	Zimmer Holdings, Inc.		13,621,601
			102,305,172
	Industrials (5.1%)
105,900	AGCO Corp.		5,841,444
497,000	Hertz Global Holdings, Inc.(a)		13,240,080
722,213	II-VI, Inc.(a)		11,143,747

Shares		Fair Value
COMMON STOCKS — (continued)
	Industrials — (continued)
712,400	UTi Worldwide, Inc.	$	7,544,316
			37,769,587
	Information Technology (24.8%)
1,420,600	Dice Holdings, Inc.(a)		10,597,676
108,050	DST Systems, Inc.		10,242,060
703,680	EarthLink Holdings Corp.		2,540,285
368,000	Fidelity National Information Services, Inc.		19,669,600
389,000	Global Payments, Inc.		27,661,790
495,600	Knowles Corp.(a)		15,646,092
367,325	MICROS Systems, Inc.(a)		19,442,512
138,255	MicroStrategy, Inc., Class A(a)		15,953,244
403,700	NCR Corp.(a)		14,755,235
538,500	Symantec Corp.		10,753,845
759,100	Western Union Co. (The)		12,418,876
2,126,767	Xerox Corp.		24,032,467
			183,713,682
	Total Common Stocks (Cost $569,595,912)		729,882,775
MONEY MARKET FUND (1.2%)
9,019,317	Federated Treasury Obligations Fund, Institutional Shares		9,019,317
	Total Money Market Fund (Cost $9,019,317)		9,019,317
Total Investments — 99.9% (Cost $578,615,229)			738,902,092
Net Other Assets (Liabilities) — 0.1%			1,080,416
NET ASSETS — 100.0%		$	739,982,508

(a) Represents non-income producing security.

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

10

Sterling Capital Small Cap Value Diversified Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares		Fair Value
COMMON STOCKS (96.3%)
	Consumer Discretionary (9.8%)
30,494	Boyd Gaming Corp.(a)	$	402,521
30,777	Bridgepoint Education, Inc.(a)		458,270
12,486	Brown Shoe Co., Inc.		331,378
8,423	Capella Education Co.		531,912
8,494	Columbia Sportswear Co.		702,029
112,514	Cumulus Media, Inc., Class A(a)		777,472
5,420	Deckers Outdoor, Corp.(a)		432,137
44,203	Gray Television, Inc.(a)		458,385
32,204	hhgregg, Inc.(a)		309,480
1,707	ITT Educational Services, Inc.(a)		48,957
50,197	Journal Communications, Inc., Class A(a)		444,745
6,194	Lear Corp.		518,562
41,624	Live Nation Entertainment, Inc.(a)		905,322
67,418	McClatchy Co., (The) Class A(a)		432,824
20,214	MDC Partners, Inc., Class A		461,283
12,985	Modine Manufacturing Co.(a)		190,230
7,454	Monarch Casino & Resort, Inc.(a)		138,123
10,195	Murphy USA, Inc.(a)		413,815
49,988	Orbitz Worldwide, Inc.(a)		391,906
6,417	Outerwall, Inc.(a)		465,233
31,153	Penn National Gaming, Inc.(a)		383,805
4,240	Red Robin Gourmet Burgers, Inc.(a)		303,923
33,905	Ruth’s Hospitality Group, Inc.		409,911
11,642	Scholastic Corp.		401,416
8,487	Shiloh Industries, Inc.(a)		150,559
4,355	Sizmek, Inc.(a)		46,294
49,411	Skullcandy, Inc.(a)		453,593
36,096	Smith & Wesson Holding Corp.(a)		527,724
38,271	Stoneridge, Inc.(a)		429,783
9,049	Strayer Education, Inc.(a)		420,145
7,273	Tenneco Inc.(a)		422,343
11,447	Tower International, Inc.(a)		311,587
15,896	Unifi, Inc.(a)		366,721
			13,442,388
	Consumer Staples (2.1%)
12,405	Andersons, Inc. (The)		734,872
1,017	Ingles Markets, Inc., Class A		24,225
13,320	Omega Protein Corp.(a)		160,772
25,264	Pilgrim’s Pride Corp.(a)		528,523
15,479	Safeway, Inc.		571,794
5,506	Sanderson Farms, Inc.		432,166
59,539	SUPERVALU, Inc.(a)		407,247
455	USANA Health Sciences, Inc.(a)		34,280
			2,893,879
	Energy (5.8%)
30,358	Alon USA Energy, Inc.		453,549
33,720	Cloud Peak Energy, Inc.(a)		712,841
6,853	Dawson Geophysical Co.		191,953
20,814	Exterran Holdings, Inc.		913,318
28,008	Green Plains Renewable Energy, Inc.		839,120
23,615	Nabors Industries, Ltd.		582,110
48,105	Newpark Resources, Inc.(a)		550,802
101,342	Parker Drilling Co.(a)		718,515
18,079	PBF Energy, Inc., Class A		466,438
20,965	Penn Virginia Corp.(a)		366,678
28,613	Renewable Energy Group, Inc.(a)		342,784
10,525	REX American Resources Corp.(a)		600,451
21,347	Stone Energy Corp.(a)		895,934

Shares		Fair Value
COMMON STOCKS — (continued)
	Energy — (continued)
58,663	Warren Resources, Inc.(a)	$	281,582
			7,916,075
	Financials (38.6%)
14,459	1st Source Corp.		463,989
4,406	Allied World Assurance Co. Holdings AG		454,655
24,914	Ambac Financial Group, Inc.(a)		773,081
29,100	American Capital, Ltd.(a)		459,489
33,083	American Equity Investment Life Holding Co.		781,420
7,678	American Financial Group, Inc.		443,097
2,092	American National Insurance Co.		236,501
12,142	Amtrust Financial Services, Inc.		456,661
99,073	Anworth Mortgage Asset Corp., REIT		491,402
23,380	Apollo Commercial Real Estate Finance, Inc., REIT		388,809
80,983	Apollo Investment Corp.		672,969
13,829	Argo Group International Holdings, Ltd.		634,751
15,988	Arlington Asset Investment Corp., Class A		423,362
11,059	Aspen Insurance Holdings, Ltd.		439,042
7,460	Assurant, Inc.		484,602
17,601	Assured Guaranty, Ltd.		445,657
9,394	Axis Capital Holdings, Ltd.		430,715
20,543	Banco Latinoamericano de Comercio Exterior SA		542,541
14,542	Banner Corp.		599,276
57,339	BlackRock Kelso Capital Corp.		525,799
16,512	Calamos Asset Management, Inc., Class A		213,500
51,990	Capstead Mortgage Corp., REIT		658,193
74,889	Cedar Realty Trust, Inc., REIT		457,572
23,955	Central Pacific Financial Corp.		483,891
136,874	Chimera Investment Corp., REIT		418,834
59,187	CNO Financial Group, Inc.		1,071,285
28,455	Colony Financial, Inc., REIT		624,587
36,378	Cousins Properties, Inc., REIT		417,256
11,132	Customers Bancorp, Inc.(a)		232,325
45,014	Dynex Capital, Inc., REIT		402,875
19,382	Employers Holdings, Inc.		392,098
7,730	Endurance Specialty Holdings, Ltd.		416,106
10,881	Enterprise Financial Services Corp.		218,382
10,664	FBL Financial Group, Inc., Class A		461,964
10,472	FBR & Co.(a)		270,492
11,853	Fidelity Southern Corp.		165,586
9,291	Fidus Investment Corp.		179,409
2,032	First Citizens BancShares, Inc., Class A		489,204
16,439	First Interstate Bancsystem, Inc.		463,909
26,494	First Merchants Corp.		573,330
10,712	First NBC Bank Holding Co.(a)		373,420
12,589	Flagstar Bancorp, Inc.(a)		279,728
12,005	Flushing Financial Corp.		252,945
31,287	Gain Capital Holdings, Inc.		338,212
36,136	Genworth Financial, Inc., Class A(a)		640,691
10,504	Getty Realty Corp., REIT		198,421
19,167	Gladstone Capital Corp.		193,203
15,660	Golub Capital BDC, Inc.		279,374
73,024	Gramercy Property Trust, Inc., REIT		376,804
16,596	Greenlight Capital Re, Ltd., Class A(a)		544,349
28,951	Hanmi Financial Corp.		674,558
6,862	Hanover Insurance Group, Inc. (The)		421,601
12,089	HCI Group, Inc.		440,040
36,363	Hercules Technology Growth Capital, Inc.		511,627
21,591	Horace Mann Educators Corp.		626,139

Continued

11

Sterling Capital Small Cap Value Diversified Fund

    Schedule of Portfolio Investments – (continued)

    March 31, 2014 (Unaudited)

Shares			Fair Value
	COMMON STOCKS — (continued)
		Financials — (continued)
	24,127	Interactive Brokers Group, Inc., Class A	$	522,832
	20,744	International Bancshares Corp.		520,260
	44,088	Invesco Mortgage Capital, Inc., REIT		726,129
	39,821	KCAP Financial, Inc.		344,850
	28,031	KCG Holdings, Inc., Class A(a)		334,410
	11,709	Kemper Corp.		458,642
	42,784	Maiden Holdings, Ltd.		533,944
	34,974	MBIA, Inc.(a)		489,286
	24,403	Medallion Financial Corp.		322,364
	43,102	MFA Financial, Inc., REIT		334,041
	21,630	Montpelier Re Holdings, Ltd.		643,709
	7,196	Navigators Group, Inc. (The)(a)		441,762
	13,289	Nelnet, Inc., Class A		543,520
	110,479	New Residential Investment Corp., REIT		714,799
	62,495	New York Mortgage Trust, Inc., REIT		486,211
	29,170	OFG Bancorp.		501,432
	23,710	Old Republic International Corp.		388,844
	4,406	PartnerRe, Ltd.		456,021
	48,241	PennantPark Investment Corp.		533,063
	27,095	PennyMac Mortgage Investment Trust, REIT		647,571
	26,127	PHH Corp.(a)		675,122
	7,330	Phoenix Cos., Inc. (The)(a)		379,327
	11,816	Platinum Underwriters Holdings, Ltd.		710,142
	13,728	Popular, Inc.(a)		425,431
	27,155	PrivateBancorp, Inc.		828,499
	72,526	Prospect Capital Corp.		783,281
	10,154	Protective Life Corp.		533,999
	32,387	Redwood Trust, Inc., REIT		656,808
	7,879	Regional Management Corp.(a)		194,296
	5,813	Reinsurance Group of America, Inc.		462,889
	4,596	RenaissanceRe Holdings, Ltd.		448,570
	4,641	Safety Insurance Group, Inc.		249,918
	10,488	Sandy Spring Bancorp, Inc.		261,990
	7,926	Southside Bancshares, Inc.		248,718
	8,256	StanCorp Financial Group, Inc.		551,501
	16,421	Stewart Information Services Corp.		576,870
	39,065	Symetra Financial Corp.		774,268
	140,825	Synovus Financial Corp.		477,397
	22,129	TCP Capital Corp.		366,235
	50,482	TICC Capital Corp.		493,714
	4,494	Trico Bancshares		116,529
	68,285	Two Harbors Investment Corp., REIT		699,921
	7,428	Union First Market Bankshares Corp.		188,820
	32,144	United Community Banks, Inc.(a)		623,915
	17,000	United Fire Group, Inc.		515,950
	43,660	Universal Insurance Holdings, Inc.		554,482
	9,010	Validus Holdings, Ltd.		339,767
	19,307	Washington Federal, Inc.		449,853
	28,283	Webster Financial Corp.		878,470
	32,211	Western Alliance Bancorp(a)		792,391
	621	White Mountains Insurance Group, Ltd.		372,538
	66,121	Wilshire Bancorp, Inc.		733,943
	15,711	Wintrust Financial Corp.		764,497
	4,885	World Acceptance Corp.(a)		366,766
	6,990	WSFS Financial Corp.		499,296
				52,849,531
		Health Care (4.7%)
	11,442	Addus HomeCare Corp.(a)		263,738
	29,944	Albany Molecular Research, Inc.(a)		556,659
	5,907	Alliance HealthCare Services, Inc.(a)		198,062

Shares			Fair Value
	COMMON STOCKS — (continued)
		Health Care — (continued)
	26,422	Amedisys, Inc.(a)	$	393,424
	11,922	Anika Therapeutics, Inc.(a)		489,994
	3,899	Centene Corp.(a)		242,713
	14,573	Kindred Healthcare, Inc.		341,300
	14,657	Lannett Co., Inc.(a)		523,548
	7,544	LifePoint Hospitals, Inc.(a)		411,525
	9,281	Molina Healthcare, Inc.(a)		348,594
	20,762	NuVasive, Inc.(a)		797,468
	19,725	Owens & Minor, Inc.		690,967
	37,273	PDL BioPharma, Inc.		309,739
	10,657	Providence Service Corp. (The)(a)		301,380
	3,577	Questcor Pharmaceuticals, Inc.		232,255
	4,659	Triple-S Management Corp., Class B(a)		75,196
	2,780	United Therapeutics Corp.(a)		261,403
				6,437,965
		Industrials (13.0%)
	24,688	AAR Corp.		640,654
	4,540	Aircastle, Ltd.		87,985
	7,212	Alaska Air Group, Inc.		672,952
	2,442	Albany International Corp., Class A		86,789
	4,174	Alliant Techsystems, Inc.		593,334
	34,153	ARC Document Solutions, Inc.(a)		254,098
	24,531	Arkansas Best Corp.		906,420
	6,551	Barrett Business Services, Inc.		390,243
	4,026	Columbus McKinnon Corp.(a)		107,857
	11,295	Ducommun, Inc.(a)		283,053
	25,742	Ennis, Inc.		426,545
	58,153	GrafTech International, Ltd.(a)		635,031
	18,319	Greenbrier Cos., Inc. (The)(a)		835,346
	58,708	Hawaiian Holdings, Inc.(a)		819,564
	5,934	Hyster-Yale Materials Handling, Inc.		578,565
	10,885	ICF International, Inc.(a)		433,332
	90,966	JetBlue Airways Corp.(a)		790,495
	5,748	Kadant, Inc.		209,630
	16,041	Kelly Services, Inc., Class A		380,653
	30,457	Kimball International, Inc., Class B		551,576
	14,876	Matson, Inc.		367,288
	15,080	MYR Group, Inc.(a)		381,826
	23,161	Navigant Consulting, Inc.(a)		432,184
	17,165	NN, Inc.		338,150
	7,618	Oshkosh Corp.		448,472
	37,997	Pacer International, Inc.(a)		340,453
	7,395	Park-Ohio Holdings Corp.(a)		415,229
	16,283	Pitney Bowes, Inc.		423,195
	20,133	Quad/Graphics, Inc.		472,119
	29,057	Quality Distribution, Inc.(a)		377,450
	31,889	RPX Corp.(a)		519,153
	24,405	RR Donnelley & Sons Co.		436,849
	19,929	Rush Enterprises, Inc., Class A(a)		647,294
	37,256	SkyWest, Inc.		475,387
	19,838	Swift Transportation Co.(a)		490,991
	7,089	Trinity Industries, Inc.		510,904
	47,192	Wabash National Corp.(a)		649,362
	3,202	WABCO Holdings, Inc.(a)		338,003
	6,371	Xerium Technologies, Inc.(a)		102,255
				17,850,686
		Information Technology (11.1%)
	2,581	Anixter International, Inc.		262,023
	17,778	ARRIS Group, Inc.(a)		500,984

Continued

12

Sterling Capital Small Cap Value Diversified Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares			Fair Value
	COMMON STOCKS — (continued)
		Information Technology — (continued)
	6,873	Arrow Electronics, Inc.(a)	$	407,981
	21,068	AVG Technologies NV(a)		441,585
	37,165	Avid Technology, Inc.(a)		226,707
	6,927	AVX Corp.		91,298
	28,659	Benchmark Electronics, Inc.(a)		649,126
	43,704	Brocade Communications Systems, Inc.(a)		463,699
	28,733	CTS Corp.		599,945
	26,484	Ebix, Inc.		452,082
	1,001	ePlus, Inc.(a)		55,816
	22,807	Fabrinet(a)		473,701
	13,965	First Solar, Inc.(a)		974,617
	12,359	Hackett Group, Inc. (The)		73,907
	64,987	Harmonic, Inc.(a)		464,007
	14,405	Ingram Micro, Inc., Class A(a)		425,812
	20,511	Insight Enterprises, Inc.(a)		515,031
	28,147	International Rectifier Corp.(a)		771,228
	17,096	Jabil Circuit, Inc.		307,728
	69,107	Lattice Semiconductor Corp.(a)		541,799
	12,629	Lexmark International, Inc., Class A		584,596
	35,262	Marvell Technology Group, Ltd.		555,377
	10,609	Newport Corp.(a)		219,394
	57,757	Photronics, Inc.(a)		492,667
	16,083	Plexus Corp.(a)		644,446
	22,888	Polycom, Inc.(a)		314,023
	40,465	Sanmina Corp.(a)		706,114
	14,927	ScanSource, Inc.(a)		608,574
	11,338	Science Applications International Corp.		423,928
	7,016	Tech Data Corp.(a)		427,695
	40,814	TiVo, Inc.(a)		539,969
	7,429	TTM Technologies, Inc.(a)		62,775
	35,068	Ultra Clean Holdings, Inc.(a)		461,144
	30,722	Vishay Intertechnology, Inc.		457,143
				15,196,921
		Materials (4.7%)
	23,989	A.M. Castle & Co.(a)		352,398
	20,448	Berry Plastics Group, Inc.(a)		473,371
	39,180	Commercial Metals Co.		739,718
	3,195	Domtar Corp.		358,543
	5,267	Huntsman Corp.		128,620
	9,956	Materion Corp.		337,807
	17,365	Myers Industries, Inc.		345,911
	8,906	Neenah Paper, Inc.		460,618
	12,173	Olympic Steel, Inc.		349,365
	3,767	OM Group, Inc.		125,140
	7,760	Packaging Corp. of America		546,071
	20,280	PH Glatfelter Co.		552,022
	1,525	Reliance Steel & Aluminum Co.		107,757
	10,223	Schweitzer-Mauduit International, Inc.		435,398
	11,123	U.S. Concrete, Inc.(a)		261,391
	4,969	United States Steel Corp.		137,194
	19,156	Worthington Industries, Inc.		732,717
				6,444,041

Shares			Fair Value
	COMMON STOCKS — (continued)
		Telecommunication Services (1.3%)
	5,162	Atlantic Tele-Network, Inc.	$	340,279
	20,125	Inteliquent, Inc.		292,416
	58,984	Iridium Communications, Inc.(a)		442,970
	14,106	Telephone & Data Systems, Inc.		369,718
	15,323	USA Mobility, Inc.		278,419
				1,723,802
		Utilities (5.2%)
	26,043	Avista Corp.		798,218
	8,325	Chesapeake Utilities Corp.		525,807
	12,006	Consolidated Water Co., Ltd.		158,239
	19,213	El Paso Electric Co.		686,480
	24,440	Empire District Electric Co.		594,381
	16,616	Great Plains Energy, Inc.		449,297
	16,786	IDACORP, Inc.		931,119
	16,358	NorthWestern Corp.		775,860
	32,222	PNM Resources, Inc.		870,961
	15,900	Southwest Gas Corp.		849,855
	2,461	UGI Corp.		112,246
	11,925	Westar Energy, Inc.		419,283
				7,171,746
		Total Common Stocks (Cost $113,907,613)		131,927,034
	EXCHANGE TRADED FUND (0.5%)
	6,926	iShares Russell 2000 Value ETF		698,418
		Total Exchange Traded Fund (Cost $656,292)		698,418
	MONEY MARKET FUND (2.6%)
	3,478,891	Federated Treasury Obligations Fund, Institutional Shares		3,478,891
		Total Money Market Fund (Cost $3,478,891)		3,478,891
	Total Investments — 99.4% (Cost $118,042,796)			136,104,343
	Net Other Assets (Liabilities) — 0.6%			882,113
	NET ASSETS — 100.0%		$	136,986,456

(a) Represents non-income producing security.

ETF — Exchange Traded Fund

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

13

Sterling Capital Special Opportunities Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (94.5%)
		Consumer Discretionary (12.1%)
	830,000	Comcast Corp., Class A	$	41,516,600
	544,000	DIRECTV(a)		41,572,480
	1,975,000	Ford Motor Co.		30,810,000
				113,899,080
		Consumer Staples (3.2%)
	867,500	Mondelez International, Inc., Class A		29,972,125
		Energy (10.5%)
	310,000	Apache Corp.		25,714,500
	180,000	EOG Resources, Inc.(b)		35,310,600
	648,000	Halliburton Co.(b)		38,160,720
				99,185,820
		Financials (9.0%)
	552,790	American Campus Communities, Inc., REIT		20,646,707
	429,000	Capital One Financial Corp.		33,101,640
	79,000	CBRE Group, Inc., Class A(a)		2,166,970
	685,000	Ryman Hospitality Properties, Inc., REIT		29,126,200
				85,041,517
		Health Care (15.7%)
	567,000	Agilent Technologies, Inc.		31,706,640
	626,500	HCA Holdings, Inc.(a)		32,891,250
	1,078,000	Myriad Genetics, Inc.(a)(b)		36,856,820
	550,000	UnitedHealth Group, Inc.(b)		45,094,500
	64,321	Zoetis, Inc.		1,861,449
				148,410,659
		Industrials (9.7%)
	527,000	Expeditors International of Washington, Inc.		20,885,010
	699,000	Nielsen Holdings NV		31,196,370
	289,205	Robert Half International, Inc.(b)		12,132,150
	447,000	Verisk Analytics, Inc., Class A(a)		26,802,120
				91,015,650

Shares			Fair Value
	COMMON STOCKS — (continued)
		Information Technology (34.3%)
	577,000	Akamai Technologies, Inc.(a)(b)	$	33,587,170
	66,500	Apple, Inc.(b)		35,693,210
	871,050	Broadcom Corp., Class A		27,420,654
	676,000	Check Point Software Technologies, Ltd.(a)		45,717,880
	1,598,000	Cisco Systems, Inc.		35,811,180
	569,000	Citrix Systems, Inc.(a)		32,677,670
	727,000	eBay, Inc.(a)		40,159,480
	462,000	Intuit, Inc.		35,911,260
	982,000	NCR Corp.(a)		35,892,100	��
				322,870,604
		Total Common Stocks (Cost $622,066,356)		890,395,455
	MONEY MARKET FUND (5.9%)
	55,911,825	Federated Treasury Obligations Fund, Institutional Shares		55,911,825
		Total Money Market Fund (Cost $55,911,825)		55,911,825
	Total Investments — 100.4% (Cost $677,978,181)			946,307,280
	Net Other Assets (Liabilities) — (0.4)%			(4,002,331	)
	NET ASSETS — 100.0%		$	942,304,949

(a) Represents non-income producing security.

(b) All or a portion of security was held as collateral for written call options.

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

14

Sterling Capital Equity Income Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (93.9%)
		Consumer Discretionary (14.4%)
	1,880,000	Mattel, Inc.	$	75,406,800
	659,000	McDonald’s Corp.		64,601,770
	656,000	Omnicom Group, Inc.		47,625,600
	1,153,000	Pearson PLC, ADR		20,534,930
	28,787	Target Corp.		1,741,901
	576,500	Time Warner Cable, Inc.(a)		79,084,270
				288,995,271
		Consumer Staples (15.5%)
	1,745,000	Coca-Cola Co. (The)		67,461,700
	1,218,000	General Mills, Inc.		63,116,760
	635,000	PepsiCo, Inc.		53,022,500
	670,000	Philip Morris International, Inc.		54,852,900
	1,734,000	Unilever PLC, ADR		74,180,520
				312,634,380
		Energy (20.4%)
	371,000	Chevron Corp.		44,115,610
	1,484,000	Ensco PLC, Class A		78,325,520
	35,076	Kinder Morgan Management LLC(b)		2,513,875
	2,372,000	Kinder Morgan, Inc.		77,066,280
	978,596	Natural Resource Partners LP		15,579,248
	794,000	Occidental Petroleum Corp.		75,660,260
	188,000	Royal Dutch Shell PLC, Class A, ADR		13,735,280
	187,000	Royal Dutch Shell PLC, Class B, ADR		14,606,570
	2,092,200	Spectra Energy Corp.		77,285,868
	275,000	Teekay LNG Partners LP		11,365,750
				410,254,261
		Financials (6.1%)
	1,299,000	MetLife, Inc.		68,587,200
	636,500	Travelers Cos., Inc. (The)		54,166,150
				122,753,350
		Health Care (16.5%)
	1,160,000	Abbott Laboratories		44,671,600
	785,999	AbbVie, Inc.		40,400,349
	1,109,200	Baxter International, Inc.		81,614,936
	759,000	Novartis AG, ADR		64,530,180

Shares			Fair Value
	COMMON STOCKS — (continued)
		Health Care — (continued)
	1,267,000	Pfizer, Inc.	$	40,696,040
	598,000	WellPoint, Inc.		59,530,900
				331,444,005
		Industrials (2.0%)
	412,000	United Parcel Service, Inc., Class B		40,120,560
		Information Technology (15.8%)
	834,995	Accenture PLC, Class A		66,565,802
	1,971,000	Intel Corp.		50,871,510
	1,913,000	Maxim Integrated Products, Inc.		63,358,560
	1,338,000	Microsoft Corp.		54,844,620
	1,055,702	QUALCOMM, Inc.		83,252,660
				318,893,152
		Telecommunication Services (3.2%)
	1,369,000	Verizon Communications, Inc.		65,123,330
		Total Common Stocks (Cost $1,518,493,513)		1,890,218,309
	MONEY MARKET FUND (6.0%)
	120,046,567	Federated Treasury Obligations Fund, Institutional Shares		120,046,567
		Total Money Market Fund (Cost $120,046,567)		120,046,567
	Total Investments — 99.9%     (Cost $1,638,540,080)			2,010,264,876
	Net Other Assets (Liabilities) — 0.1%			2,204,326
	NET ASSETS — 100.0%		$	2,012,469,202

(a) All or a portion of security was held as collateral for written call options.

(b) Represents non-income producing security.

ADR — American Depositary Receipt

See accompanying Notes to the Financial Statements.

15

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares			Fair Value
	COMMON STOCKS (77.2%)
		Consumer Discretionary (2.2%)
	18,279	Mattel, Inc.(a)	$	733,171
	25,817	Service Corp. International		513,242
	9,519	Target Corp.(a)		575,995
				1,822,408
		Consumer Staples (7.1%)
	22,699	Altria Group, Inc.(a)		849,623
	12,315	Clorox Co. (The)(a)		1,083,843
	14,051	Mondelez International, Inc., Class A(a)		485,462
	21,051	PepsiCo, Inc.(a)		1,757,759
	7,727	Philip Morris International, Inc.(a)		632,610
	13,206	Wal-Mart Stores, Inc.(a)		1,009,334
				5,818,631
		Energy (22.4%)
	27,096	Apache Corp.(a)		2,247,613
	3,700	Approach Resources, Inc.(a)(b)		77,367
	2,500	ARC Resources, Ltd.		68,860
	10,000	Baytex Energy Corp.(b)		399,819
	600	Bonanza Creek Energy, Inc.(a)(b)		26,640
	1,000	Bonterra Energy Corp.(a)		48,307
	5,000	Canadian Oil Sands, Ltd.(a)		104,750
	2,300	Canadian Oil Sands, Ltd.		48,247
	9,900	Cenovus Energy, Inc.(a)		286,704
	1,000	Cimarex Energy Co.(a)		119,110
	1,000	Concho Resources, Inc.(a)(b)		122,500
	8,000	ConocoPhillips(a)		562,800
	1,300	Continental Resources, Inc.(a)(b)		161,551
	4,800	Crescent Point Energy Corp.(a)		175,248
	4,000	Crescent Point Energy Corp.		145,997
	23,100	Denbury Resources, Inc.(a)		378,840
	27,664	Devon Energy Corp.(a)		1,851,551
	24,700	Dorchester Minerals LP(a)		647,140
	3,800	Enbridge Energy Partners LP		104,158
	7,500	Energy XXI, Ltd.		176,775
	2,500	EOG Resources, Inc.(a)		490,425
	8,703	Exxon Mobil Corp.(a)		850,109
	8,000	Freehold Royalties, Ltd.(a)		168,320
	6,300	Freehold Royalties, Ltd.		132,668
	19,100	Kinder Morgan, Inc.(a)		620,559
	2,700	Kodiak Oil & Gas Corp.(a)(b)		32,778
	19,800	Marathon Oil Corp.(a)		703,296
	6,500	MPLX LP		318,435
	2,000	Murphy Oil Corp.		125,720
	6,430	Noble Energy, Inc.(a)		456,787
	28,800	Northern Oil & Gas, Inc.(a)(b)		421,056
	4,500	Oasis Petroleum, Inc.(a)(b)		187,785
	6,500	Occidental Petroleum Corp.(a)		619,385
	37,200	Pacific Coast Oil Trust(a)		498,108
	500	PDC Energy, Inc.(a)(b)		31,130
	25,800	Permian Basin Royalty Trust(a)		340,560
	1,100	Peyto Exploration & Development Corp.		37,532
	2,800	Pioneer Natural Resources Co.(a)		523,992
	3,000	Plains All American Pipeline LP		165,360
	30,400	Plains GP Holdings LP, Class A(a)		850,592
	21,700	Resolute Energy Corp.(a)(b)		156,240
	1,500	Rosetta Resources, Inc.(b)		69,870
	16,380	Sabine Royalty Trust(a)		810,810
	2,500	SM Energy Co.		178,225
	1,400	Statoil ASA, ADR(a)		39,508
	14,000	Suncor Energy, Inc.(a)		489,440

Shares			Fair Value
	COMMON STOCKS — (continued)
		Energy — (continued)
	4,000	Tesoro Logistics LP.	$	240,840
	1,200	Vermilion Energy, Inc.(a)		74,940
	6,788	Western Gas Equity Partners LP(a)		333,359
	8,700	Whiting Petroleum Corp.(a)(b)		603,693
				18,325,499
		Financials (14.2%)
	8,000	Aflac, Inc.(a)		504,320
	21,600	Ambac Financial Group, Inc.(a)(b)		670,248
	7,390	Aon PLC(a)		622,829
	37,400	Boston Private Financial Holdings, Inc.(a)		506,022
	15,260	Bridge Bancorp, Inc.(a)		407,595
	19,300	Carlyle Group LP (The)(a)		678,202
	9,800	Citigroup, Inc.(a)		466,480
	9,500	Franklin Resources, Inc.(a)		514,710
	46,200	Genworth Financial, Inc., Class A(a)(b)		819,126
	22,749	ING US, Inc.(a)		825,106
	31,100	KKR & Co. LP(a)		710,324
	45,600	MBIA, Inc.(b)		637,944
	9,400	MetLife, Inc.(a)		496,320
	19,200	Morgan Stanley(a)		598,464
	13,300	Oppenheimer Holdings, Inc., Class A(a)		373,065
	16,200	Popular, Inc.(a)(b)		502,038
	33,500	Radian Group, Inc.(a)		503,505
	9,300	Raymond James Financial, Inc.(a)		520,149
	12,500	SunTrust Banks, Inc.(a)		497,375
	4,500	Virtus Investment Partners, Inc.(a)(b)		779,265
				11,633,087
		Health Care (26.6%)
	3,900	Acadia Healthcare Co., Inc.(a)(b)		175,968
	6,752	ACADIA Pharmaceuticals, Inc.(a)(b)		164,276
	1,456	Actavis PLC(a)(b)		299,718
	12,982	Albany Molecular Research, Inc.(b)		241,335
	5,034	Alimera Sciences, Inc.(a)(b)		39,718
	13,000	Alkermes PLC(a)(b)		573,170
	36,748	Amedica Corp.(a)(b)		276,345
	23,557	Aquinox Pharmaceuticals, Inc.(a)(b)		299,881
	20,642	Aratana Therapeutics, Inc.(a)(b)		383,116
	50,556	BioScrip, Inc.(a)(b)		352,881
	9,244	Bristol-Myers Squibb Co.(a)		480,226
	11,700	Brookdale Senior Living, Inc.(a)(b)		392,067
	8,868	Cardinal Health, Inc.(a)		620,583
	11,880	Cardiovascular Systems, Inc.(a)(b)		377,665
	13,565	Castlight Health, Inc., Class B(b)		287,849
	8,682	Catamaran Corp.(a)(b)		388,606
	6,547	Chimerix, Inc.(a)(b)		149,534
	5,068	Covance, Inc.(a)(b)		526,565
	9,906	Dipexium Pharmaceuticals, Inc.(b)		99,456
	31,957	Endocyte, Inc.(a)(b)		760,896
	8,056	ExamWorks Group, Inc.(a)(b)		282,041
	4,293	Express Scripts Holding Co.(a)(b)		322,361
	44,166	Galena Biopharma, Inc.(b)		110,415
	10,929	Galmed Pharmaceutical, Ltd.(b)		125,356
	15,384	GenMark Diagnostics, Inc.(a)(b)		152,917
	5,909	Gilead Sciences, Inc.(b)		418,712
	10,914	GlaxoSmithKline PLC, ADR(a)		583,135
	7,329	Globus Medical, Inc., Class A(a)(b)		194,878
	5,000	HCA Holdings, Inc.(a)(b)		262,500
	3,699	HeartWare International, Inc.(a)(b)		346,892
	12,017	ICON PLC(a)(b)		571,408

Continued

16

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares			Fair Value
	COMMON STOCKS — (continued)
		Health Care — (continued)
	3,353	Ignyta, Inc.(b)	$	27,830
	6,256	Inogen, Inc.(a)(b)		103,287
	379	Intercept Pharmaceuticals, Inc.(a)(b)		124,990
	11,195	Johnson & Johnson(a)		1,099,685
	2,613	McKesson Corp.(a)		461,377
	23,748	Medtronic, Inc.(a)		1,461,452
	26,143	Merck & Co., Inc.(a)		1,484,138
	30,019	Nanosphere, Inc.(a)(b)		64,541
	31,414	NanoString Technologies, Inc.(a)(b)		648,699
	12,205	NuVasive, Inc.(a)(b)		468,794
	8,106	PAREXEL International Corp.(a)(b)		438,454
	44,054	Pfizer, Inc.(a)		1,415,015
	25,406	RadNet, Inc.(a)(b)		72,153
	13,017	Relypsa, Inc.(a)(b)		388,037
	32,228	Repligen Corp.(a)(b)		414,452
	17,728	Sarepta Therapeutics, Inc.(a)(b)		426,004
	3,050	St. Jude Medical, Inc.(a)		199,440
	30,276	Streamline Health Solutions, Inc.(a)(b)		152,288
	3,607	Team Health Holdings, Inc.(a)(b)		161,413
	5,089	Teleflex, Inc.(a)		545,744
	14,728	Thoratec Corp.(a)(b)		527,410
	8,774	UnitedHealth Group, Inc.(a)		719,380
	10,589	Vanda Pharmaceuticals, Inc.(a)(b)		172,071
				21,837,124
		Industrials (0.9%)
	9,786	Masco Corp.(a)		217,347
	5,265	Norfolk Southern Corp.(a)		511,600
				728,947
		Information Technology (3.8%)
	12,996	Care.com, Inc.(a)(b)		215,084
	38,052	Intel Corp.(a)		982,122
	41,706	Microsoft Corp.(a)		1,709,529
	3,909	WebMD Health Corp.(a)(b)		161,833
				3,068,568
		Materials (0.0%)
	1,400	Mesabi Trust(a)		29,484
		Total Common Stocks (Cost $61,095,092)		63,263,748
	PREFERRED STOCKS (1.1%)
		Financials (1.1%)
	52,300	Fannie Mae, Series R, 7.625%(a)(b)		489,005
	39,570	Fannie Mae, Series S, 8.250%(a)(b)		414,694
		Total Preferred Stocks (Cost $769,786)		903,699
	WARRANTS (5.0%)
		Financials (5.0%)
	23,700	Ambac Financial Group, Inc., (Issued/exercisable 05/01/13, 1 Share for 1 Warrant, Expires 04/30/23, Strike Price $16.67)(a)(b)		483,480
	224,100	Bank of America Corp., (Issued/exercisable 01/09/09, 1 Share for 1 Warrant, Expires 10/28/18, Strike Price $30.79)(a)(b)		203,931

Shares			Fair Value
	WARRANTS — (continued)
		Financials — (continued)
	62,400	Bank of America Corp., (Issued/exercisable 01/15/09, 1 Share for 1 Warrant, Expires 01/16/19, Strike Price $13.30)(a)(b)	$	512,928
	18,000	Capital One Financial Corp., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $42.13)(a)(b)		636,300
	139,700	Citigroup, Inc., (Issued/exercisable 12/31/08, 1 Share for 1 Warrant, Expires 01/04/19, Strike Price $106.10)(a)(b)		89,687
	29,200	Comerica, Inc., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $29.40)(a)(b)		654,664
	26,400	Hartford Financial Services Group, Inc., (Issued/exercisable 06/26/09, 1 Share for 1 Warrant, Expires 06/26/19, Strike Price $9.48)(a)(b)		703,824
	107,800	Zions Bancorporation, (Issued/exercisable 05/20/10, 1 Share for 1 Warrant, Expires 05/22/20, Strike Price $36.63)(a)(b)		700,700
	27,900	Zions Bancorporation, (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $36.27)(a)(b)		114,390
		Total Warrants (Cost $3,538,672)		4,099,904
	Total Long-Term Investments — 83.3%     (Cost $65,403,550)			68,267,351
	MONEY MARKET FUND (14.7%)
	12,049,019	Federated Treasury Obligations Fund, Institutional Shares		12,049,019
		Total Money Market Fund (Cost $12,049,019)		12,049,019
	Total Investments Before Investments Sold Short — 98.0%     (Cost $77,452,569)			80,316,370
	INVESTMENTS SOLD SHORT ((32.5)%)
		Consumer Discretionary ((3.7)%)
	(756)	Chipotle Mexican Grill, Inc., Class A(b)		(429,446	)
	(4,812)	Dorman Products, Inc.(b)		(284,197	)
	(6,867)	iRobot Corp.(b)		(281,890	)
	(4,083)	Lululemon Athletica, Inc.(b)		(214,725	)
	(1,739)	Lumber Liquidators Holdings, Inc.(b)		(163,118	)
	(4,701)	Michael Kors Holdings, Ltd.(b)		(438,462	)
	(4,186)	Morningstar, Inc.		(330,778	)
	(989)	Netflix, Inc.(b)		(348,158	)
	(1,736)	Panera Bread Co., Class A(b)		(306,352	)
	(1,169)	Tesla Motors, Inc.(b)		(243,678	)
				(3,040,804	)
		Consumer Staples ((0.1)%)
	(279)	Boston Beer Co, Inc. (The) Class A(b)		(68,280	)
		Energy ((2.3)%)
	(2,700)	Diamond Offshore Drilling, Inc.		(131,652	)
	(1,800)	Diamondback Energy, Inc.(b)		(121,158	)
	(11,200)	Encana Corp.		(239,456	)
	(2,000)	EQT Corp.		(193,940	)

Continued

17

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares		Fair Value
INVESTMENTS SOLD SHORT — (continued)
	Energy — (continued)
(5,900)	Goodrich Petroleum Corp.(b)	$	(93,338	)
(3,000)	Gulfport Energy Corp.(b)		(213,540	)
(4,000)	Memorial Production Partners LP		(90,120	)
(3,800)	Newfield Exploration Co.(b)		(119,168	)
(6,000)	Noble Corp. PLC		(196,440	)
(8,500)	Penn Virginia Corp.(b)		(148,665	)
(2,400)	Vanguard Natural Resources, LLC		(71,448	)
(14,200)	WPX Energy, Inc.(b)		(256,026	)
			(1,874,951	)
	Exchange Traded Funds ((3.5)%)
(10,600)	Direxion Daily Financial Bull 3X Shares(b)		(1,002,548	)
(3,800)	SPDR S&P 500 ETF Trust		(710,752	)
(12,100)	SPDR S&P Regional Banking ETF		(500,698	)
(18,000)	United States Oil Fund LP(b)		(658,620	)
			(2,872,618	)
	Financials ((11.6)%)
(7,700)	Aspen Insurance Holdings, Ltd.		(305,690	)
(21,300)	Astoria Financial Corp.		(294,366	)
(2,300)	AvalonBay Communities, Inc., REIT		(302,036	)
(8,500)	Bank of New York Mellon Corp. (The)		(299,965	)
(23,800)	Capitol Federal Financial, Inc.		(298,690	)
(7,600)	Cohen & Steers, Inc.		(302,860	)
(6,500)	Commerce Bancshares, Inc.		(301,730	)
(3,800)	Cullen/Frost Bankers, Inc.		(294,614	)
(17,500)	Dime Community Bancshares, Inc.		(297,150	)
(5,700)	Financial Engines, Inc.		(289,446	)
(33,300)	First Commonwealth Financial Corp.		(301,032	)
(32,600)	First Niagara Financial Group, Inc.		(308,070	)
(14,200)	FirstMerit Corp.		(295,786	)
(8,100)	Hancock Holding Co.		(296,865	)
(7,500)	Independent Bank Corp.		(295,275	)
(14,400)	Mack-Cali Realty Corp., REIT		(299,376	)
(4,600)	Northern Trust Corp.		(301,576	)
(20,600)	Northwest Bancshares, Inc.		(300,760	)
(20,400)	Old National Bancorp		(304,164	)
(20,400)	People’s United Financial, Inc.		(303,348	)
(6,900)	ProAssurance Corp.		(307,257	)
(1,900)	Simon Property Group, Inc., REIT		(311,600	)
(4,300)	Taubman Centers, Inc., REIT		(304,397	)
(11,900)	Trustmark Corp.		(301,665	)
(4,600)	UMB Financial Corp.		(297,620	)
(15,900)	Umpqua Holdings Corp.		(296,376	)
(9,700)	United Bankshares, Inc.		(297,014	)
(10,100)	United Community Banks, Inc.(b)		(196,041	)
(8,500)	Unum Group		(300,135	)
(29,100)	Valley National Bancorp		(302,931	)
(5,600)	Westamerica Bancorporation		(302,848	)
(7,000)	Willis Group Holdings PLC		(308,910	)
			(9,519,593	)
	Health Care ((7.6)%)
(9,751)	Abaxis, Inc.(b)		(379,119	)
(2,437)	Align Technology, Inc.(b)		(126,212	)
(3,853)	BioMarin Pharmaceutical, Inc.(b)		(262,813	)
(11,931)	Bruker Corp.(b)		(271,907	)
(4,458)	Chemed Corp.		(398,768	)
(763)	Clovis Oncology, Inc.(b)		(52,853	)
(7,639)	Community Health Systems, Inc.(b)		(299,220	)
(3,523)	Eli Lilly & Co.		(207,364	)

Shares			Fair Value
	INVESTMENTS SOLD SHORT — (continued)
		Health Care — (continued)
	(2,624)	Endo International PLC(b)	$	(180,138	)
	(7,517)	Fresenius Medical Care AG & Co. KGaA, ADR		(261,967	)
	(16,850)	Gentiva Health Services, Inc.(b)		(153,672	)
	(2,784)	Humana, Inc.		(313,812	)
	(8,274)	ImmunoGen, Inc.(b)		(123,531	)
	(5,066)	Incyte Corp., Ltd.(b)		(271,132	)
	(9,371)	Intrexon Corp.(b)		(246,364	)
	(6,813)	Ironwood Pharmaceuticals, Inc.(b)		(83,936	)
	(2,153)	LHC Group, Inc.(b)		(47,495	)
	(3,428)	LifePoint Hospitals, Inc.(b)		(186,997	)
	(5,110)	Medicines Co. (The)(b)		(145,226	)
	(11,059)	Myriad Genetics, Inc.(b)		(378,107	)
	(3,245)	NPS Pharmaceuticals, Inc.(b)		(97,123	)
	(4,176)	Organovo Holdings, Inc.(b)		(31,905	)
	(7,366)	Patterson Cos., Inc.		(307,604	)
	(4,604)	Quest Diagnostics, Inc.		(266,664	)
	(8,229)	ResMed, Inc.		(367,754	)
	(6,503)	Seattle Genetics, Inc.(b)		(296,277	)
	(1,747)	Synageva BioPharma Corp.(b)		(144,949	)
	(3,263)	Tekmira Pharmaceuticals Corp.(b)		(70,122	)
	(3,892)	Tenet Healthcare Corp.(b)		(166,617	)
	(3,096)	TESARO, Inc.(b)		(91,270	)
				(6,230,918	)
		Industrials ((0.3)%)
	(4,226)	Cubic Corp.		(215,822	)
		Information Technology ((3.4)%)
	(3,674)	ACI Worldwide, Inc.(b)		(217,464	)
	(10,579)	Advent Software, Inc.(b)		(310,599	)
	(5,927)	Facebook, Inc., Class A(b)		(357,042	)
	(2,114)	First Solar, Inc.(b)		(147,536	)
	(1,193)	LinkedIn Corp., Class A(b)		(220,633	)
	(4,670)	Pandora Media, Inc.(b)		(141,594	)
	(6,430)	Salesforce.com, Inc.(b)		(367,089	)
	(1,132)	Stratasys, Ltd.(b)		(120,094	)
	(1,764)	Ultimate Software Group, Inc. (The)(b)		(241,668	)
	(2,843)	WebMD Health Corp.(b)		(117,700	)
	(11,431)	Yahoo!, Inc.(b)		(410,373	)
	(1,942)	Yelp, Inc.(b)		(149,398	)
				(2,801,190	)
	Total Investments Sold Short — (32.5)%     (Cost $(26,165,420))			(26,624,176	)
	Total Investments — 65.5%     (Cost $51,287,149)			53,692,194
	Net Other Assets (Liabilities) — 34.5%			28,268,440
	NET ASSETS — 100.0%		$	81,960,634

(a) Represents that all or a portion of the security was pledged as collateral in connection with short sales.

(b) Represents non-income producing security.

ADR — American Depositary Receipt

ETF — Exchange Traded Funds

REIT — Real Estate Investment Trust

S&P — Standard & Poor’s

See accompanying Notes to the Financial Statements.

18

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal      Amount			Fair Value
	ASSET BACKED SECURITIES (12.2%)
	$    96,783	Ally Auto Receivables Trust, Series 2012-1, Class A3, 0.930%, 2/16/16	$	96,989
	360,432	Ally Auto Receivables Trust, Series 2011-2, Class A4, 1.980%, 4/15/16		363,024
	300,000	Ally Auto Receivables Trust, Series 2012-4, Class A3, 0.590%, 1/17/17		300,376
	386,816	AmeriCredit Automobile Receivables Trust, Series 2013-3, Class A2, 0.680%, 10/11/16		387,247
	405,000	AmeriCredit Automobile Receivables Trust, Series 2011-5, Class B, 2.450%, 12/8/16		409,609
	350,000	AmeriCredit Automobile Receivables Trust, Series 2012-5, Class B, 1.120%, 11/8/17		351,309
	560,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2011-2A, Class A, 2.370%, 11/20/14(a)		564,273
	1,000,000	Citibank Omni Master Trust, Series 2009-A17, Class A17, 4.900%, 11/15/18(a)		1,027,534
	83,144	Countrywide Asset-Backed Certificates, Series 2005-6, Class M1, 0.644%, 12/25/35(b)		82,698
	300,000	Enterprise Fleet Financing, LLC, Series 2014-1, Class A2, 0.870%, 9/20/19(a)		299,747
	279,367	First Franklin Mortgage Loan Trust, Series 2005-FF5, Class M1, 0.829%, 3/25/35(b)		277,910
	264,000	Honda Auto Receivables Owner Trust, Series 2013-3, Class A2, 0.540%, 1/15/16		264,284
	665,000	M&T Bank Auto Receivables Trust, Series 2013-1A, Class A2, 0.660%, 2/16/16(a)		665,753
	135,217	Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.344%, 1/25/36(b)		132,278
	139,725	Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.414%, 11/25/35(b)		137,219
	187,289	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.654%, 3/25/35(b)		185,514
	65,294	Santander Drive Auto Receivables Trust, Series 2012-1, Class A3, 1.490%, 10/15/15		65,321
	290,128	Santander Drive Auto Receivables Trust, Series 2013-3, Class A2, 0.550%, 9/15/16		290,259
	474,193	Santander Drive Auto Receivables Trust, Series 2012-5, Class A3, 0.830%, 12/15/16		474,822
	500,000	Santander Drive Auto Receivables Trust, Series 2012-6, Class B, 1.330%, 5/15/17		502,759
	112,862	Volkswagen Auto Loan Enhanced Trust, Series 2012-2, Class A2, 0.330%, 7/20/15		112,865
		Total Asset Backed Securities (Cost $7,016,012)		6,991,790
	COLLATERALIZED MORTGAGE     OBLIGATIONS (0.1%)
	28,643	Freddie Mac, Series 3128, Class BE, 5.000%, 5/15/33		28,796
		Total Collateralized Mortgage Obligations (Cost $29,276)		28,796
	COMMERCIAL MORTGAGE-BACKED     SECURITIES (11.6%)
	85,000	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		91,728

Principal      Amount			Fair Value
	COMMERCIAL MORTGAGE-BACKED     SECURITIES — (CONTINUED)
	$    41,831	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2004-3, Class A5, 5.380%, 6/10/39(b)	$	41,822
	94,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.290%, 11/10/42(b)		97,322
	345,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-2, Class AJ, 4.953%, 7/10/43(b)		357,954
	85,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4B, 4.943%, 9/11/42		89,244
	233,383	Bear Stearns Commercial Mortgage Securities Trust, Series 2004-T16, Class A6, 4.750%, 2/13/46(b)		237,063
	500,000	CD Commercial Mortgage Trust, Series 2005-CD1, Class AM, 5.216%, 7/15/44(b)		529,652
	450,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(b)		476,173
	299,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class AJ, 5.075%, 2/15/38(b)		307,743
	300,000	Extended Stay America Trust, Series 2013-ESFL, Class A2FL, 0.855%, 12/5/31(a)(b)		300,193
	240,000	GE Capital Commercial Mortgage, Series 2005-C2, Class AJ, 5.061%, 5/10/43(b)		249,936
	300,000	GMAC Commercial Mortgage Securities, Inc., Series 2005-C1, Class AM, 4.754%, 5/10/43		310,960
	200,000	GS Mortgage Securities Corp. II, Series 2013-KYO, Class A, 1.004%, 11/8/29(a)(b)		200,574
	500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-FL3, Class A2, 0.855%, 4/15/28(a)(b)		498,655
	500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-JWRZ, Class A, 0.935%, 4/15/30(a)(b)		496,559
	500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AM, 5.282%, 12/15/44(b)		534,876
	185,000	Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class AM, 4.805%, 6/12/43(b)		193,196
	500,000	Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.309%, 1/12/44(b)		534,534
	445,000	Morgan Stanley Capital I Trust, Series 2005-HQ7, Class AM, 5.208%, 11/14/42(b)		469,805
	586,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class AMFX, 5.179%, 7/15/42(b)		615,902
		Total Commercial Mortgage-Backed Securities (Cost $6,724,045)		6,633,891
	CORPORATE BONDS (54.6%)
		Consumer Discretionary (5.3%)
	485,000	Daimler Finance North America, LLC, 1.875%, 9/15/14(a)		487,927
	370,000	DIRECTV Holdings, LLC/DIRECTV Financing Co., Inc., 4.750%, 10/1/14		377,235
	250,000	ERAC USA Finance, LLC, 5.600%, 5/1/15(a)		262,683

Continued

19

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal      Amount			Fair Value
	CORPORATE BONDS — (continued)
		Consumer Discretionary — (continued)
	$    400,000	Interpublic Group of Cos., Inc. (The), 6.250%, 11/15/14	$	412,500
	410,000	NBCUniversal Media, LLC, 2.100%, 4/1/14		410,000
	350,000	Nissan Motor Acceptance Corp., 4.500%, 1/30/15(a)		361,288
	260,000	Viacom, Inc., 1.250%, 2/27/15		261,561
	250,000	Volkswagen International Finance NV, 1.625%, 3/22/15(a)		252,841
	235,000	WPP Finance, 5.875%, 6/15/14		237,450
				3,063,485
		Consumer Staples (1.0%)
	250,000	ConAgra Foods, Inc., 5.875%, 4/15/14		250,457
	310,000	SABMiller Holdings, Inc., 1.850%, 1/15/15(a)		312,949
				563,406
		Energy (6.8%)
	215,000	Anadarko Petroleum Corp., 5.750%, 6/15/14		217,190
	300,000	Buckeye Partners LP, 5.300%, 10/15/14		307,202
	310,000	Cameron International Corp., 1.600%, 4/30/15		313,049
	360,000	Canadian Natural Resources, Ltd., 1.450%, 11/14/14		362,127
	295,000	EnCana Holdings Finance Corp., 5.800%, 5/1/14		296,215
	480,000	Energy Transfer Partners LP, 8.500%, 4/15/14(c)		481,253
	450,000	Enterprise Products Operating, LLC, Series G, 5.600%, 10/15/14		462,060
	400,000	Kinder Morgan Energy Partners LP, 5.125%, 11/15/14		410,920
	360,000	Petrobras International Finance Co., 2.875%, 2/6/15		364,680
	315,000	TransCanada PipeLines, Ltd., 0.875%, 3/2/15		316,249
	350,000	Williams Partners LP, 3.800%, 2/15/15		359,452
				3,890,397
		Financials (27.3%)
	450,000	ABN AMRO Bank NV, 1.035%, 10/28/16(a)(b)		452,601
	350,000	ACE INA Holdings, Inc., 5.875%, 6/15/14		353,738
	230,000	Allstate Corp. (The), 5.000%, 8/15/14		233,716
	275,000	Ally Financial, Inc., 4.625%, 6/26/15		284,969
	500,000	American Express Credit Corp., MTN, 2.750%, 9/15/15		515,201
	488,000	American International Group, Inc., 5.050%, 10/1/15		518,598
	355,000	Axis Capital Holdings, Ltd., 5.750%, 12/1/14		367,239
	675,000	Bank of America Corp., MTN, 7.375%, 5/15/14(c)		680,432
	300,000	BNP Paribas SA, 3.250%, 3/11/15(c)		307,709
	549,000	Capital One Financial Corp., 2.150%, 3/23/15		557,258
	705,000	Citigroup, Inc., 5.000%, 9/15/14(c)		718,652
	361,000	CNA Financial Corp., 5.850%, 12/15/14(c)		374,137
	225,000	Duke Realty LP, REIT, 7.375%, 2/15/15		237,769
	263,000	Endurance Specialty Holdings, Ltd., 6.150%, 10/15/15		280,912
	250,000	ERP Operating LP, REIT, 5.250%, 9/15/14		255,135
	250,000	Fifth Third Bank, BKNT, 4.750%, 2/1/15		258,382
	250,000	Fixed Income Trust for Prudential Financial, Inc., Series 2012-1, 0.000%, 6/1/14(c)		249,493
	375,000	Ford Motor Credit Co., LLC, 7.000%, 4/15/15		398,918

Principal      Amount			Fair Value
	CORPORATE BONDS — (continued)
		Financials — (continued)
	$    350,000	General Electric Capital Corp., 5.900%, 5/13/14(c)	$	352,187
	575,000	Goldman Sachs Group, Inc. (The), 3.300%, 5/3/15		590,535
	142,000	HSBC Finance Corp., 5.000%, 6/30/15		149,080
	410,000	ING Bank NV, 2.000%, 9/25/15(a)		416,605
	365,000	Jefferies Group, LLC, 5.875%, 6/8/14		368,635
	695,000	JPMorgan Chase & Co., 5.125%, 9/15/14		709,608
	250,000	KeyBank NA, BKNT, 5.800%, 7/1/14		253,311
	211,000	KeyBank NA, BKNT, 4.950%, 9/15/15		222,715
	400,000	Kimco Realty Corp., MTN, REIT, 4.820%, 6/1/14		402,419
	250,000	Lloyds Bank PLC, MTN, 4.375%, 1/12/15(a)		257,363
	337,000	Macquarie Group, Ltd., 7.300%, 8/1/14(a)		344,337
	400,000	Manulife Financial Corp., 3.400%, 9/17/15		414,604
	150,000	Mid-America Apartments LP, REIT, 6.250%, 6/15/14(a)(c)		151,650
	75,000	Morgan Stanley, 2.875%, 7/28/14		75,538
	500,000	Morgan Stanley, GMTN, 4.000%, 7/24/15		520,310
	355,000	PNC Funding Corp., 3.000%, 5/19/14(c)		356,260
	228,000	Realty Income Corp., REIT, 5.500%, 11/15/15		244,257
	350,000	Royal Bank of Scotland Group PLC, 2.550%, 9/18/15		357,423
	500,000	Societe Generale SA, 3.100%, 9/14/15(a)		515,999
	350,000	Standard Chartered PLC, 5.500%, 11/18/14(a)		360,885
	400,000	UBS AG, 7.000%, 10/15/15		434,939
	210,000	Union Bank NA, 1.185%, 6/6/14(b)		210,341
	576,000	Wachovia Corp., 5.250%, 8/1/14		585,142
	284,000	XLIT, Ltd., 5.250%, 9/15/14		289,858
				15,628,860
		Health Care (1.6%)
	190,000	DaVita HealthCare Partners, Inc., 6.375%, 11/1/18		199,737
	255,000	Express Scripts Holding Co., 2.750%, 11/21/14		258,709
	150,000	UnitedHealth Group, Inc., 5.000%, 8/15/14		152,508
	315,000	Zimmer Holdings, Inc., 1.400%, 11/30/14(c)		316,486
				927,440
		Industrials (4.3%)
	300,000	CNH Capital, LLC, 3.875%, 11/1/15		308,250
	416,000	Equifax, Inc., 4.450%, 12/1/14		426,256
	400,000	GATX Corp., 4.750%, 5/15/15		417,297
	390,000	Penske Truck Leasing Co., LP/PTL Finance Corp., 2.500%, 7/11/14(a)(c)		391,871
	200,000	Textron, Inc., 6.200%, 3/15/15		209,944
	365,000	Tyco Electronics Group SA, 1.600%, 2/3/15		368,499
	330,000	Waste Management, Inc., 6.375%, 3/11/15		347,236
				2,469,353
		Materials (4.1%)
	410,000	Anglo American Capital PLC, 9.375%, 4/8/14(a)		410,512
	250,000	ArcelorMittal USA, LLC, 6.500%, 4/15/14		250,393
	355,000	Ecolab, Inc., 2.375%, 12/8/14		359,442
	390,000	Freeport-McMoRan Copper & Gold, Inc., 1.400%, 2/13/15		392,238
	575,000	Rio Tinto Finance USA, Ltd., 8.950%, 5/1/14		578,851
	360,000	Xstrata Finance Canada, Ltd., 2.050%, 10/23/15(a)		364,138
				2,355,574

Continued

20

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Telecommunication Services (3.4%)
$    250,000	British Telecommunications PLC, 2.000%, 6/22/15	$	253,838
150,000	Crown Castle Towers, LLC, 4.523%, 1/15/15(a)		153,434
340,000	Qwest Corp., 7.500%, 10/1/14(c)		351,039
380,000	SBA Tower Trust, 4.254%, 4/15/15(a)		392,771
275,000	Telefonica Emisiones SAU, 3.729%, 4/27/15		283,034
500,000	Verizon Communications, Inc., 1.250%, 11/3/14		502,336
			1,936,452
	Utilities (0.8%)
404,000	Progress Energy, Inc., 5.625%, 1/15/16		436,712
	Total Corporate Bonds (Cost $31,237,550)		31,271,679
FOREIGN GOVERNMENT BOND (0.5%)
	Columbia (0.5%)
270,000	Republic of Colombia, 8.250%, 12/22/14		284,040
	Total Foreign Government Bond (Cost $284,214)		284,040
MUNICIPAL BONDS (21.6%)
	Alabama (0.6%)
365,000	Alabama Municipal Electric Authority, Power Supply Refunding Revenue, Series A (BAM), 3.000%, 9/1/14		369,019
	Alaska (0.9%)
500,000	Alaska Student Loan Corp., Alternative Minimum Tax, Refunding Revenue, Senior Series A-3, 5.000%, 6/1/14		503,875
	Arizona (0.4%)
250,000	Yavapai County Industrial Development Authority, Waste Management Inc. Project, Resource Recovery Improvements Revenue, Series A, 0.625%, 3/1/28(b)		250,077
	Arkansas (0.4%)
215,000	Fort Smith, AR, Sales & Use Tax, Public Improvements Revenue, 2.000%, 5/1/15		218,825
	California (1.5%)
310,000	Beverly Hills Public Financing Authority, Various Projects Revenue, Series B, Taxable, 2.454%, 6/1/14		311,051
375,000	California State, Various Purpose, Public Improvements Refunding G.O., 4.850%, 10/1/14		382,601
135,000	Los Rios Community College District, CA, Election 2002, University & College Improvements, G.O., Series C, Callable 8/1/14 @ 102 (AGM), 4.250%, 8/1/15		139,504
			833,156
	Colorado (0.2%)
135,000	City & County of Denver, CO, Airport System, Alternative Minimum Tax, Refunding Revenue, Series A, 4.000%, 11/15/14		138,251

Principal      Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Connecticut (1.2%)
$    100,000	Connecticut State Health & Educational Facility Authority, Quinnipiac University Health & Education Refunding Revenue, Series K1 (NATL-RE), 5.000%, 7/1/14	$	101,153
560,000	New Haven, CT, Refunding Revenue, G.O, 3.000%, 11/1/14		568,305
			669,458
	Delaware (0.9%)
500,000	Delaware State Health Facilities Authority, Nanticoke Memorial Hospital Refunding Revenue, 4.000%, 7/1/14		502,065
	Florida (0.9%)
170,000	Collier County, FL, Gas Tax, Refunding Revenue, 4.000%, 6/1/14		171,085
125,000	Greater Orlando Aviation Authority, FL, Refunding Revenue, Series B, Taxable, 4.780%, 10/1/14		127,776
225,000	Palm Beach County School District, FL, School Improvements Revenue, Certificates of Participation, Series A (NATL), 5.500%, 8/1/14		228,935
			527,796
	Illinois (1.8%)
500,000	Chicago, IL, Midway International Airport Refunding Revenue, Series C (NATL-RE), 5.500%, 1/1/15		518,225
500,000	Illinois State, Pension Funding, G.O., Taxable, OID, 4.050%, 6/1/15		517,380
			1,035,605
	Indiana (0.2%)
125,000	Indiana Finance Authority, National Collegiate Project, Refunding & Acquisition Revenue, Callable 5/1/15 @ 100, 5.000%, 5/1/25		131,316
	Kentucky (0.4%)
230,000	Fayette County School District Finance Corp., School Improvements Refunding Revenue, Series A, 2.000%, 10/1/14		232,167
	Massachusetts (0.4%)
100,000	Massachusetts Health & Educational Facilities Authority, Northeastern University, Series Y1 (G.O. of Institution), 5.000%, 10/1/14		102,410
150,000	Massachusetts Municipal Wholesale Electric Co., Nuclear Project 4, Refunding Revenue, Series A, 5.000%, 7/1/14		151,821
			254,231
	Minnesota (0.2%)
100,000	Minneapolis-St. Paul Metropolitan Airports Commission, Subordinate Refunding Revenue, Series C, 4.000%, 1/1/15		102,792
	New Hampshire (0.3%)
145,000	New Hampshire Municipal Bond Bank, Refunding Revenue, Series A, Prerefunded 8/15/14 @ 100 (NATL-RE G.O. of Bond Bank), 5.000%, 8/15/19		147,622

Continued

21

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal         Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		New Jersey (1.3%)
	$    300,000	Essex County Utilities Authority, NJ, Taxable, Refunding Revenue, Series B, (AGM), 5.450%, 10/1/14	$	306,780
	115,000	New Jersey Economic Development Authority, School Facilities Construction, Refunding Revenue, Series K, (NATL), 5.250%, 12/15/14		119,151
	320,000	New Jersey Health Care Facilities Financing Authority, Robert Wood Johnson University Hospital, Refunding Revenue, 4.000%, 7/1/14		322,800
				748,731
		New York (1.9%)
	200,000	Long Island Power Authority, Refunding Revenue, Series 2010A, 3.000%, 5/1/14		200,470
	200,000	Long Island Power Authority, Refunding Revenue, Series B, 5.250%, 6/1/14		201,698
	100,000	Long Island Power Authority, Refunding Revenue, Series B, 5.250%, 12/1/14		103,171
	100,000	Metropolitan Transportation Authority, Transit Improvements Revenue, Series A2, 5.000%, 11/15/15		107,677
	370,000	New York State Dormitory Authority, Mount Sinai Hospital, Health, Hospital, Nursing Home Improvements Revenue, Series A, 4.000%, 7/1/14		373,474
	110,000	New York State Dormitory Authority, School District Bond Financing Program Revenue, Series D (Assured Guaranty G.O. of Authority), 5.375%, 10/1/14		112,852
				1,099,342
		North Carolina (1.3%)
	250,000	Raleigh Durham Airport Authority, Alternative Minimum Tax, Refunding Revenue, Series B (AMBAC), 5.000%, 5/1/14		251,015
	500,000	Randolph County, NC, Refunding Revenue, Certificates of Participation (AGM), 5.000%, 6/1/14		503,825
				754,840
		Oklahoma (0.9%)
	500,000	Cleveland County Educational Facilities Authority, Moore Public Schools Project Revenue, 5.000%, 6/1/14		503,835
		Pennsylvania (1.8%)
	1,000,000	Pennsylvania Economic Development Financing Authority, Republic Services Inc. Refunding Revenue, Series A, 0.550%, 4/1/19(b)		1,000,000
		South Carolina (1.7%)
	500,000	Myrtle Beach, SC, Hospitality Fee Refunding Revenue, Series A, Taxable, 1.050%, 6/1/15		502,650
	465,000	South Carolina State Public Service Authority, Libor Index, Refunding Revenue, Series D, Taxable, Callable 12/1/14 @ 100, 1.030%, 6/1/15(b)		466,944
				969,594

Principal     Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Texas (0.5%)
	$    140,000	Houston, TX, Airport System Refunding Revenue, Subordinate Lien, Series B (NATL), OID, 4.000%, 7/1/14	$	141,324
	150,000	Houston, TX, Hotel Occupancy Tax, Refunding Revenue, Series A, 5.000%, 9/1/14		153,003
				294,327
		Virginia (1.9%)
	500,000	Amelia County Industrial Development Authority, Waste Management Project, Refunding Revenue, 0.625%, 4/1/27(b)(d)		500,000
	100,000	Fairfax County Economic Development Authority, Silver Line Phase I Project, Transit Improvements Revenue, 3.000%, 4/1/14		100,000
	200,000	Roanoke Economic Development Authority, Carilion Clinic Obligations Group, Hospital Improvements, Refunding Revenue, 4.000%, 7/1/14		201,938
	280,000	Virginia College Building Authority, 21st Century College & Equipment Improvements Revenue, 4.000%, 2/1/15		289,013
				1,090,951
		Total Municipal Bonds (Cost $12,365,538)		12,377,875
Shares
	MONEY MARKET FUND (0.4%)
	230,479	Federated Treasury Obligations Fund, Institutional Shares		230,479
		Total Money Market Fund (Cost $230,479)		230,479
	Total Investments — 101.0%     (Cost $57,887,114)			57,818,550
	Net Other Assets (Liabilities) — (1.0)%			(578,813	)
	NET ASSETS — 100.0%		$	57,239,737

(a) Rule 144A, Section 4(2) or other security which is restricted as to resale to qualified institutional investors. The Advisor, using Board approved procedures, 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, 2014. The maturity date reflected is the final maturity date.

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

(d) Represents security purchased on a when-issued basis. At March 31, 2014, total cost of investments purchased on a when-issued basis was $500,000.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Insurance Corp.

BAM — Build America Mutual

BKNT — Bank Note

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN — Medium Term Note

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

22

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal       Amount			Fair Value
	ASSET BACKED SECURITIES (10.5%)
	$    595,000	AmeriCredit Automobile Receivables Trust, Series 2011-5, Class B, 2.450%, 12/8/16	$	601,771
	900,000	AmeriCredit Automobile Receivables Trust, Series 2012-5, Class B, 1.120%, 11/8/17		903,365
	470,000	AmeriCredit Automobile Receivables Trust, Series 2012-1, Class C, 2.670%, 1/8/18		480,810
	68,439	Argent Securities, Inc. Pass Through Certificates, Series 2005-W4, Class A2C, 0.454%, 2/25/36(a)		68,271
	310,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2011-2A, Class A, 2.370%, 11/20/14(b)		312,366
	50,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2010-4A, Class A, 2.090%, 4/20/15(b)		50,039
	1,020,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-1A, Class A, 2.054%, 8/20/16(b)		1,035,799
	1,400,000	Citibank Omni Master Trust, Series 2009-A17, Class A17, 4.900%, 11/15/18(b)		1,438,548
	900,000	Enterprise Fleet Financing, LLC, Series 2014-1, Class A2, 0.870%, 9/20/19(b)		899,240
	410,907	First Franklin Mortgage Loan Trust, Series 2005-FF5, Class M1, 0.829%, 3/25/35(a)		408,765
	350,000	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A1, 1.120%, 8/25/17(b)		349,840
	400,000	Hyundai Auto Receivables Trust, Series 2013-C, Class A3, 1.010%, 2/15/18		402,707
	198,318	Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.344%, 1/25/36(a)		194,008
	281,661	Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE1, Class A3, 0.364%, 2/25/36(a)		280,382
	128,152	Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.414%, 11/25/35(a)		125,853
	410,827	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.654%, 3/25/35(a)		406,934
	1,020,000	Santander Drive Auto Receivables Trust, Series 2012-3, Class C, 3.010%, 4/16/18		1,049,263
		Total Asset Backed Securities (Cost $9,010,744)		9,007,961
	COLLATERALIZED MORTGAGE OBLIGATIONS (2.0%)
	193,996	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		203,543
	203,833	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-J7, Class 1A3, 5.250%, 8/25/33		207,863
	330,490	Fannie Mae, Series 2003-66, Class PA, 3.500%, 2/25/33		343,688
	255,959	Freddie Mac, Series 2770, Class UE, 4.500%, 3/15/19		270,900
	115,211	Freddie Mac, Series 3414, Class A, 4.500%, 7/15/22		116,472
	47,743	Freddie Mac, Series 3591, Class A, 4.000%, 1/15/23		48,256
	178,519	PHHMC Trust, Series 2007-6, Class A1, 5.633%, 12/18/37(a)		181,259
	243,906	Structured Asset Securities Corp. Mortgage Pass Through Certificates, Series 2003-10, Class A, 6.000%, 4/25/33		253,263

Principal       Amount			Fair Value
	COLLATERALIZED MORTGAGE     OBLIGATIONS — (continued)
	$    128,700	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37	$	133,001
		Total Collateralized Mortgage Obligations (Cost $1,741,691)		1,758,245
	COMMERCIAL MORTGAGE-BACKED     SECURITIES (19.5%)
	594,417	Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(a)		642,850
	475,000	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		512,599
	167,322	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2004-3, Class A5, 5.380%, 6/10/39(a)		167,288
	250,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.290%, 11/10/42(a)		258,835
	200,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		206,175
	600,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-2, Class AJ, 4.953%, 7/10/43(a)		622,529
	729,000	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		716,805
	500,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4B, 4.943%, 9/11/42		524,963
	111,306	Bear Stearns Commercial Mortgage Securities Trust, Series 2004-T16, Class A6, 4.750%, 2/13/46(a)		113,061
	740,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		830,464
	350,000	CD Commercial Mortgage Trust, Series 2005-CD1, Class AM, 5.216%, 7/15/44(a)		370,756
	475,000	CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49		519,845
	460,918	Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3, 5.783%, 3/15/49(a)		498,803
	396,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a)		419,032
	615,000	Commercial Mortgage Trust, Series 2007-C9, Class A4, 5.799%, 12/10/49(a)		690,782
	603,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class AJ, 5.075%, 2/15/38(a)		620,633
	500,000	Extended Stay America Trust, Series 2013-ESFL, Class A2FL, 0.855%, 12/5/31(a)(b)		500,322
	360,000	GE Capital Commercial Mortgage, Series 2005-C2, Class AJ, 5.061%, 5/10/43(a)		374,904
	320,000	GMAC Commercial Mortgage Securities, Inc., Series 2005-C1, Class AM, 4.754%, 5/10/43		331,691
	455,656	GMAC Commercial Mortgage Securities, Inc., Series 2006-C1, Class A4, 5.238%, 11/10/45(a)		477,103
	420,000	GS Mortgage Securities Corp. II, Series 2013-KYO, Class A, 1.004%, 11/8/29(a)(b)		421,205

Continued

23

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal      Amount			Fair Value
	COMMERCIAL MORTGAGE-BACKED     SECURITIES — (continued)
	$    700,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-FL3, Class A2, 0.855%, 4/15/28(a)(b)	$	698,117
	300,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-JWRZ, Class A, 0.935%, 4/15/30(a)(b)		297,935
	600,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP2, Class AM, 4.780%, 7/15/42		623,426
	500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AM, 5.282%, 12/15/44(a)		534,876
	422,300	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		456,055
	470,603	LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4, 5.661%, 3/15/39(a)		504,026
	500,000	Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class AJ, 5.263%, 9/12/42(a)		516,397
	500,000	Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.309%, 1/12/44(a)		534,534
	765,000	Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 5.811%, 8/12/41(a)		833,448
	780,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.281%, 1/11/43(a)		897,901
	638,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class AMFX, 5.179%, 7/15/42(a)		670,556
	358,166	Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(a)		385,199
		Total Commercial Mortgage-Backed Securities (Cost $17,103,417)		16,773,115
	CORPORATE BONDS (60.2%)
		Consumer Discretionary (4.6%)
	370,000	Daimler Finance North America, LLC, 2.625%, 9/15/16(b)		383,510
	250,000	DIRECTV Holdings, LLC/DIRECTV Financing Co. Inc., 3.550%, 3/15/15		256,855
	500,000	Ford Motor Credit Co., LLC, 6.625%, 8/15/17		577,585
	385,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		390,043
	200,000	Hyundai Capital America, 1.875%, 8/9/16(b)		202,260
	395,000	Hyundai Capital America, 1.450%, 2/6/17(b)		392,934
	400,000	Interpublic Group of Cos., Inc. (The), 6.250%, 11/15/14		412,500
	420,000	NBCUniversal Media, LLC, 3.650%, 4/30/15		433,658
	525,000	Volkswagen International Finance NV, 1.150%, 11/20/15(b)		528,231
	355,000	Whirlpool Corp., 1.350%, 3/1/17		354,203
				3,931,779
		Consumer Staples (1.0%)
	480,000	CVS Caremark Corp., 1.200%, 12/5/16(c)		482,776
	370,000	Lorillard Tobacco Co., 3.500%, 8/4/16		389,893
				872,669

Principal      Amount			Fair Value
	CORPORATE BONDS — (continued)
		Energy (8.1%)
	$    410,000	BP Capital Markets PLC, 2.248%, 11/1/16	$	423,093
	315,000	Chesapeake Energy Corp., 3.250%, 3/15/16		318,150
	390,000	CNOOC Finance 2013, Ltd., 1.125%, 5/9/16		389,877
	350,000	Continental Resources, Inc., 8.250%, 10/1/19		377,125
	250,000	Denbury Resources, Inc., 8.250%, 2/15/20		271,875
	410,000	El Paso Natural Gas Co., LLC, 5.950%, 4/15/17		459,634
	460,000	Energy Transfer Partners LP, 6.125%, 2/15/17		515,073
	375,000	Magellan Midstream Partners LP, 5.650%, 10/15/16		415,222
	429,000	Petrobras International Finance Co., 2.875%, 2/6/15		434,577
	450,000	Phillips 66, 2.950%, 5/1/17		469,429
	380,000	Pioneer Natural Resources Co., 6.650%, 3/15/17		432,492
	425,000	Plains Exploration & Production Co., 7.625%, 4/1/20		467,500
	325,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.875%, 12/1/18		345,719
	375,000	Schlumberger Norge AS, 1.950%, 9/14/16(b)		383,957
	500,000	Southern Natural Gas Co., LLC, 5.900%, 4/1/17(b)		561,230
	350,000	Total Capital International SA, 0.807%, 8/10/18(a)		352,416
	300,000	Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16		330,730
				6,948,099
		Financials (35.0%)
	475,000	ABN AMRO Bank NV, 4.250%, 2/2/17(b)		510,192
	275,000	Aegon NV, 4.625%, 12/1/15		291,754
	400,000	Aflac, Inc., 2.650%, 2/15/17		416,536
	400,000	Ally Financial, Inc., 2.750%, 1/30/17		404,000
	400,000	American Express Credit Corp., MTN, 1.750%, 6/12/15(c)		405,548
	435,000	American International Group, Inc., 3.800%, 3/22/17		465,407
	325,000	Axis Capital Holdings, Ltd., 5.750%, 12/1/14		336,205
	1,000,000	Bank of America Corp., 5.750%, 12/1/17(c)		1,132,142
	480,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 0.845%, 9/9/16(a)(b)		482,215
	540,000	BNP Paribas SA, MTN, 1.250%, 12/12/16		539,997
	250,000	BRE Properties, Inc., REIT, 5.500%, 3/15/17		276,923
	350,000	Capital One Financial Corp., 1.000%, 11/6/15		350,496
	238,000	CBRE Services, Inc., 6.625%, 10/15/20		254,065
	350,000	CIT Group, Inc., 4.250%, 8/15/17		366,625
	1,000,000	Citigroup, Inc., 1.936%, 5/15/18(a)		1,037,056
	395,000	CNA Financial Corp., 6.500%, 8/15/16		443,400
	315,000	Comerica Bank, BKNT, 5.750%, 11/21/16		352,037
	500,000	Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.375%, 1/19/17		530,092
	325,000	DDR Corp., REIT, 9.625%, 3/15/16		376,445
	555,000	Duke Realty LP, REIT, 7.375%, 2/15/15		586,496
	250,000	Endurance Specialty Holdings, Ltd., 6.150%, 10/15/15		267,026
	422,000	Federal Realty Investment Trust, REIT, 6.200%, 1/15/17		476,614
	250,000	Fifth Third Bancorp, 0.655%, 12/20/16(a)		247,767
	325,000	Fifth Third Bank, BKNT, 1.150%, 11/18/16		326,006
	948,000	General Electric Capital Corp., MTN, 5.625%, 9/15/17		1,075,608

Continued

24

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal      Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$    390,000	HCP, Inc., MTN, REIT, 6.300%, 9/15/16	$	438,482
325,000	Health Care REIT, Inc., 4.700%, 9/15/17		355,145
500,000	Healthcare Realty Trust, Inc., REIT, 6.500%, 1/17/17		564,225
454,000	Host Hotels & Resorts LP, REIT, 5.875%, 6/15/19		491,831
325,000	ING Bank NV, 2.000%, 9/25/15(b)		330,236
405,000	Jackson National Life Global Funding, 1.250%, 2/21/17(b)		400,062
360,000	Jefferies Group, LLC, 5.500%, 3/15/16		386,158
935,000	JPMorgan Chase Bank NA, BKNT, 6.000%, 10/1/17		1,065,075
500,000	KeyBank NA, MTN, 5.450%, 3/3/16		541,935
320,000	Kilroy Realty LP, REIT, 5.000%, 11/3/15		340,211
400,000	Kimco Realty Corp., REIT, MTN, 5.584%, 11/23/15		429,465
250,000	Lloyds Bank PLC, 4.875%, 1/21/16		268,073
385,000	Loews Corp., 5.250%, 3/15/16		416,751
305,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(b)		332,784
250,000	Manufacturers & Traders Trust Co., BKNT, 0.534%, 3/7/16(a)		249,538
340,000	Manufacturers & Traders Trust Co., BKNT, 1.250%, 1/30/17		340,467
390,000	Manulife Financial Corp., 3.400%, 9/17/15		404,239
880,000	Morgan Stanley, 4.750%, 3/22/17		960,369
1,000,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		1,080,133
250,000	National Rural Utilities Cooperative Finance Corp., 1.100%, 1/27/17		249,110
330,000	Nordea Bank AB, 1.250%, 4/4/17(b)(d)		329,083
290,000	PNC Bank NA, BKNT, 1.125%, 1/27/17		289,008
350,000	Principal Financial Group, Inc., 1.850%, 11/15/17		350,988
500,000	Prudential Financial, Inc., MTN, 3.000%, 5/12/16		521,021
570,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		624,110
328,000	Royal Bank of Scotland Group PLC, 5.000%, 10/1/14		332,502
325,000	Simon Property Group LP, REIT, 5.750%, 12/1/15		348,195
350,000	Sirius International Group, Ltd., 6.375%, 3/20/17(b)		390,860
400,000	Standard Chartered Bank, 6.400%, 9/26/17(b)		453,048
435,000	SunTrust Banks, Inc., 3.600%, 4/15/16		457,436
250,000	Tanger Properties LP, REIT, 6.150%, 11/15/15		270,888
400,000	Toronto-Dominion Bank (The), MTN, Series 1, 0.786%, 4/30/18(a)		402,264
375,000	Transatlantic Holdings, Inc., 5.750%, 12/14/15		404,366
400,000	Travelers Cos, Inc. (The), 6.250%, 6/20/16		445,672
350,000	UBS AG, MTN, 5.875%, 7/15/16		386,235
280,000	Union Bank NA, BKNT, 3.000%, 6/6/16		292,696
500,000	US Bank NA, 3.778%, 4/29/20(a)		514,515
800,000	Wachovia Corp., 5.625%, 10/15/16		887,641
395,000	WCI Finance LLC/WEA Finance LLC, 5.700%, 10/1/16(b)		438,243
355,000	WR Berkley Corp., 5.600%, 5/15/15		371,944
			30,105,656

Principal      Amount		Fair Value
CORPORATE BONDS — (continued)
	Health Care (2.5%)
$    400,000	DaVita HealthCare Partners, Inc., 6.375%, 11/1/18(c)	$	420,500
440,000	DENTSPLY International, Inc., 2.750%, 8/15/16		455,340
260,000	HCA, Inc., 8.500%, 4/15/19		271,960
250,000	Mylan, Inc., 7.875%, 7/15/20(b)		280,243
250,000	Ventas Realty LP, 1.550%, 9/26/16		252,193
500,000	Zoetis, Inc., 1.150%, 2/1/16		501,987
			2,182,223
	Industrials (3.0%)
270,000	Bombardier, Inc., 4.250%, 1/15/16(b)		280,800
300,000	CNH Capital, LLC, 3.875%, 11/1/15		308,250
350,000	Equifax, Inc., 4.450%, 12/1/14		358,629
350,000	Equifax, Inc., 6.300%, 7/1/17		397,879
450,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 2.500%, 3/15/16(b)		461,240
350,000	Textron, Inc., 6.200%, 3/15/15		367,403
343,000	United Rentals North America, Inc., 9.250%, 12/15/19		379,187
			2,553,388
	Information Technology (0.4%)
395,000	Altera Corp., 1.750%, 5/15/17		397,647
	Materials (1.3%)
250,000	ArcelorMittal USA, LLC, 6.500%, 4/15/14		250,393
450,000	Vale Overseas, Ltd., 6.250%, 1/11/16		488,390
380,000	Xstrata Finance Canada, Ltd., 2.050%, 10/23/15(b)		384,368
			1,123,151
	Telecommunication Services (2.3%)
330,000	America Movil SAB de CV, 2.375%, 9/8/16		339,570
375,000	America Movil SAB de CV, 1.234%, 9/12/16(a)		379,181
300,000	Crown Castle Towers, LLC, 4.523%, 1/15/15(b)		306,869
300,000	SBA Telecommunications, Inc., 8.250%, 8/15/19		318,375
610,000	Verizon Communications, Inc., 1.763%, 9/15/16(a)		627,497
			1,971,492
	Utilities (2.0%)
300,000	CMS Energy Corp., 4.250%, 9/30/15		314,171
450,000	Duke Energy Corp., 2.150%, 11/15/16		462,151
400,000	Electricite de France, 1.150%, 1/20/17(b)		399,353
270,000	PSEG Power, LLC, 5.500%, 12/1/15		290,055
250,000	Southern Power Co., Series D, 4.875%, 7/15/15		262,813
			1,728,543
	Total Corporate Bonds (Cost $51,701,112)		51,814,647
FOREIGN GOVERNMENT BOND (0.5%)
	Columbia (0.5%)
400,000	Republic of Colombia, 8.250%, 12/22/14		420,800
	Total Foreign Government Bond (Cost $421,058)		420,800

Continued

25

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal      Amount		Fair Value
MORTGAGE-BACKED SECURITIES (0.1%)
	Fannie Mae (0.1%)
$    53,330	6.500%, 4/1/16, Pool #253706	$	55,089
	Total Mortgage-Backed Securities (Cost $53,449)		55,089
MUNICIPAL BONDS (3.7%)
	Illinois (1.5%)
250,000	Chicago, IL, Midway International Airport Refunding Revenue, Taxable, Series C, 1.320%, 1/1/16		252,777
1,000,000	State of Illinois, Build America Bonds, Transit Improvements G.O., 4.200%, 7/1/14		1,009,070
			1,261,847
	Maine (0.3%)
250,000	Maine Municipal Bond Bank, Miscellaneous Purpose Revenue, Taxable, 1.708%, 6/1/16		254,540
	New Jersey (0.4%)
320,000	New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Series 00, 1.059%, 3/1/16		322,102
	South Carolina (0.6%)
500,000	South Carolina State Public Service Authority, Libor Index Refunding Revenue, Taxable, Series D, Callable 12/1/15 @ 100, 1.255%, 6/1/16(a)		502,485
	Virginia (0.5%)
230,000	City of Danville, VA, Refunding G.O., Series B, Taxable (Assured Guaranty, State Aid Withholding), 4.550%, 3/1/15		238,041
200,000	City of Danville, VA, Refunding G.O., Series B, Taxable (Assured Guaranty, State Aid Withholding), 4.550%, 3/1/15		207,814
			445,855
	Washington (0.4%)
390,000	Providence Health & Services Obligated Group Revenue, Taxable, 1.197%, 10/1/17(a)		387,806
	Total Municipal Bonds (Cost $3,140,000)		3,174,635
U.S. TREASURY NOTES (1.1%)
1,000,000	0.625%, 5/31/17		988,438
	Total U.S. Treasury Notes (Cost $987,557)		988,438

Shares		Fair Value
PREFERRED STOCKS (0.5%)
	Financials (0.2%)
6,925	Aegon NV, 7.250%	$	178,942
	Utilities (0.3%)
10,800	Dominion Resources, Inc., Series A, 8.375%		275,400
	Total Preferred Stocks (Cost $464,759)		454,342
MONEY MARKET FUND (1.5%)
1,316,423	Federated Treasury Obligations Fund, Institutional Shares		1,316,423
	Total Money Market Fund (Cost $1,316,423)		1,316,423
Total Investments — 99.6% (Cost $85,940,210)			85,763,695
Net Other Assets (Liabilities) — 0.4%			314,945
NET ASSETS — 100.0%		$	86,078,640

(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, 2014. 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 qualified institutional investors. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid.

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

(d) Represents security purchased on a when-issued basis. At March 31, 2014, total cost of investments purchased on a when-issued basis was $329,083.

BKNT — Bank Note

G.O. — General Obligation

MTN — Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

26

Sterling Capital Intermediate U.S. Government Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal         Amount		Fair Value
COLLATERALIZED MORTGAGEOBLIGATIONS (8.0%)
$    1,362,877	Fannie Mae, Series 2010-129, Class NA, 3.500%, 3/25/25	$	1,431,933
1,128,021	Freddie Mac, Series 3644, Class BA, 4.500%, 2/15/29		1,190,738
504,909	Ginnie Mae, Series 1999-17, Class F, 0.455%, 5/16/29(a)		506,546
	Total Collateralized Mortgage Obligations (Cost $3,065,420)		3,129,217
CORPORATE BONDS (7.8%)
	Financials (7.8%)
500,000	Barclays Bank PLC, 3.900%, 4/7/15		517,058
500,000	General Electric Capital Corp., MTN, 3.500%, 6/29/15		518,310
500,000	JPMorgan Chase & Co., GMTN, 1.100%, 10/15/15		502,052
1,000,000	MBNA Corp., 5.000%, 6/15/15		1,045,734
500,000	Morgan Stanley, 2.125%, 4/25/18		498,905
	Total Corporate Bonds (Cost $3,011,036)		3,082,059
FOREIGN GOVERNMENT BOND (0.7%)
	Poland (0.7%)
250,000	Republic of Poland, 6.375%, 7/15/19		293,313
	Total Foreign Government Bond (Cost $290,308)		293,313
MORTGAGE-BACKED SECURITIES (17.9%)
	Fannie Mae (9.2%)
1,883,820	3.584%, 9/1/20, Pool #FN0000		1,990,350
259,304	5.500%, 1/1/33, Pool #678321		285,899
1,011,312	5.000%, 7/1/33, Pool #724965		1,106,113
216,968	6.000%, 7/1/37, Pool #938378		236,961
			3,619,323
	Freddie Mac (7.7%)
2,884,202	3.500%, 12/1/25, Pool #G14007		3,028,475
	Ginnie Mae (1.0%)
353,371	5.000%, 11/20/38, Pool #4283		373,060
	Total Mortgage-Backed Securities (Cost $6,596,677)		7,020,858
MUNICIPAL BONDS (2.1%)
	Illinois (2.1%)
810,000	Village of Rosemont, IL, Corporate Purpose, Refunding G.O., Taxable, Series B (AGM), 2.389%, 12/1/17		812,924
	Total Municipal Bonds (Cost $810,000)		812,924
U.S. GOVERNMENT AGENCIES (37.6%)
	Fannie Mae (14.0%)
300,000	1.250%, 12/27/19, STEP		297,854

Principal         Amount		Fair Value
U.S. GOVERNMENT AGENCIES — (continued)
	Fannie Mae — (continued)
$    2,000,000	6.250%, 5/15/29	$	2,629,898
1,820,000	7.125%, 1/15/30		2,586,948
			5,514,700
	Federal Farm Credit Bank (8.6%)
3,000,000	4.670%, 2/27/18		3,363,885
	Federal Home Loan Bank (7.5%)
2,000,000	1.250%, 1/17/23, Series 0000, STEP		1,977,484
1,000,000	1.000%, 11/8/27, Series 0001, STEP		993,091
			2,970,575
	Freddie Mac (7.5%)
500,000	4.875%, 6/13/18		568,906
1,500,000	3.750%, 3/27/19		1,636,129
750,000	2.375%, 1/13/22		734,615
			2,939,650
	Total U.S. Government Agencies (Cost $14,636,704)		14,788,810
U.S. TREASURY NOTES (23.2%)
2,000,000	0.250%, 4/30/14		2,000,234
5,000,000	0.625%, 7/15/14		5,008,010
1,000,000	3.000%, 8/31/16		1,057,031
1,000,000	3.000%, 2/28/17		1,061,172
	Total U.S. Treasury Notes (Cost $9,135,286)		9,126,447
Shares
MONEY MARKET FUND (2.2%)
857,921	Federated Treasury Obligations Fund, Institutional Shares		857,921
	Total Money Market Fund (Cost $857,921)		857,921
Total Investments — 99.5% (Cost $38,403,352)			39,111,549
Net Other Assets (Liabilities) — 0.5%			195,424
NET ASSETS — 100.0%		$	39,306,973

(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, 2014. The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN — Medium Term Note

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

27

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal   Amount		Fair Value
ASSET BACKED SECURITIES (4.2%)
$    1,358,646	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.494%, 11/25/35(a)	$	1,280,654
8,272,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-3A, Class A, 2.100%, 3/20/19(b)		8,315,188
646,956	Credit-Based Asset Servicing and Securitization, LLC, Series 2005-CB5, Class AF2, STEP, 4.831%, 8/25/35		656,219
2,590,304	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.354%, 1/25/36(a)		2,411,632
1,027,068	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.654%, 3/25/35(a)		1,017,334
5,422,483	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.474%, 10/25/35(a)		5,248,117
	Total Asset Backed Securities (Cost $18,852,645)		18,929,144
COLLATERALIZED MORTGAGE OBLIGATIONS (9.1%)
851,119	Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 4.905%, 4/25/35(a)		846,129
1,033,453	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		1,095,458
1,686,523	Banc of America Funding Trust, Series 2006-2, Class 3A1, 6.000%, 3/25/36		1,712,600
318,330	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		332,045
164,802	Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A2, 5.000%, 2/25/35		165,321
265,253	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		281,294
1,105,779	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		1,160,196
546,271	Countrywide Home Loan Mortgage Pass Through Trust, Series 2002-38, Class A3, 5.000%, 2/25/18		546,910
61,865	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-28, Class A3, 4.500%, 8/25/33		62,237
227,841	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-J7, Class 1A3, 5.250%, 8/25/33		232,345
357,767	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		369,929
62,286	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-J4, Class A3, 5.500%, 11/25/35		62,367
217,800	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		219,041
796,588	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		844,666
441,387	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		461,065
3,729,629	Fannie Mae, Series 2011-38, Class D, 4.500%, 5/25/41		4,055,297

Principal         Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$    1,879,285	Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23	$	2,023,620
1,054,975	Freddie Mac, Series 3632, Class PK, 5.000%, 2/15/40		1,170,096
4,786,561	Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40		5,017,809
1,435,759	Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38		1,556,159
1,101,824	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		1,114,382
1,044,029	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		1,086,181
200,615	MASTR Asset Securitization Trust, Series 2003-4, Class 5A1, 5.500%, 5/25/33		206,355
31,370	MASTR Asset Securitization Trust, Series 2005-2, Class 1A1, 5.250%, 11/25/35		31,396
526,241	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		529,794
1,716,529	PHHMC Trust, Series 2007-6, Class A1, 5.633%, 12/18/37(a)		1,742,875
230,910	RAAC Trust, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(a)		236,309
1,638,122	RAAC Trust, Series 2004-SP1, Class AI3, STEP, 5.618%, 3/25/34		1,678,552
1,257,118	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		1,314,001
675,438	Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 2.494%, 12/25/34(a)		675,231
2,127,749	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		2,151,846
1,756,251	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 2.434%, 6/25/34(a)		1,779,723
1,045,952	Structured Asset Securities Corp. Mortgage Pass Through Certificates, Series 2003-10, Class A, 6.000%, 4/25/33		1,086,075
731,860	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35		748,696
405,816	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35		413,814
244,962	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		252,827
1,374,344	Wells Fargo Mortgage Backed Securities Trust, Series 2004-BB, Class A2, 2.615%, 1/25/35(a)		1,391,652
727,288	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		747,870
1,450,949	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 6A3, 2.629%, 10/25/35(a)		1,463,277
414,673	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		428,530
	Total Collateralized Mortgage Obligations (Cost $40,574,184)		41,293,970

Continued

28

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

    Principal         Amount         Fair Value    

COMMERCIAL MORTGAGE-BACKED SECURITIES (18.0%)
$    3,483,834	Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(a)	$	3,767,697
4,000,000	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		4,316,624
95,988	Banc of America Commercial Mortgage Trust, Series 2007-2, Class A2, 5.611%, 4/10/49(a)		97,123
3,138,000	Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51		3,415,161
2,500,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.290%, 11/10/42(a)		2,588,348
1,560,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		1,608,167
5,289,000	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		5,200,520
2,000,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		2,244,498
4,800,000	CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49		5,253,173
3,018,000	COMM Mortgage Trust, Series 2013-CR11, Class A4, 4.258%, 10/10/46		3,182,780
1,500,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.003%, 12/10/49(a)		1,672,266
3,845,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a)		4,068,633
2,828,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class AJ, 5.075%, 2/15/38(a)		2,910,696
3,000,000	GS Mortgage Securities Trust, Series 2014-GC18, Class A4, 4.074%, 1/10/47		3,100,542
4,066,344	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		4,391,367
2,250,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b)		2,435,085
2,500,000	LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 2/15/40		2,743,820
500,000	Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class AJ, 5.263%, 9/12/42(a)		516,397
1,818,180	Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4, 5.690%, 2/12/51		2,031,364
4,500,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.281%, 1/11/43(a)		5,180,198
2,390,000	Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.467%, 3/12/44(a)		2,563,297
4,482,000	Morgan Stanley Capital I Trust, Series 2007-IQ14, Class A5, 5.696%, 4/15/49(a)		4,982,160
1,050,000	Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class B, 5.306%, 1/15/41(a)		1,072,714
767,284	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.246%, 12/15/43		768,466
2,095,143	Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(a)		2,253,278

    Principal         Amount         Fair Value    

COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$    4,164,624	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48	$	4,522,224
2,000,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b)		2,186,976
2,600,000	WF-RBS Commercial Mortgage Trust, Series 2014-LC14, Class A5, 4.045%, 3/15/47(a)		2,674,274
	Total Commercial Mortgage-Backed Securities (Cost $82,289,489)		81,747,848
CORPORATE BONDS (41.7%)
	Consumer Discretionary (3.7%)
753,000	21st Century Fox America, Inc., 5.400%, 10/1/43		810,659
1,100,000	ERAC USA Finance, LLC, 5.625%, 3/15/42(b)		1,201,822
1,187,000	Ford Motor Co., 7.450%, 7/16/31		1,523,065
1,624,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		1,645,274
905,000	Grupo Televisa SAB, 6.000%, 5/15/18		1,014,905
1,130,000	Interpublic Group of Cos., Inc. (The), 3.750%, 2/15/23		1,098,805
1,443,000	Lear Corp., 5.375%, 3/15/24		1,468,253
601,000	NBCUniversal Media, LLC, 5.950%, 4/1/41		709,452
791,000	Royal Caribbean Cruises, Ltd., 11.875%, 7/15/15		895,808
1,575,000	Service Corp. International, 7.000%, 5/15/19		1,667,531
1,325,000	Time Warner Cable, Inc., 4.000%, 9/1/21		1,374,517
1,250,000	Toll Brothers Finance Corp., 6.750%, 11/1/19		1,418,750
1,050,000	Viacom, Inc., 5.850%, 9/1/43		1,153,777
862,000	Wyndham Worldwide Corp., 5.625%, 3/1/21		941,772
			16,924,390
	Consumer Staples (1.1%)
1,240,000	Altria Group, Inc., 5.375%, 1/31/44		1,296,289
1,052,000	CVS Caremark Corp., 6.125%, 9/15/39		1,268,517
1,433,000	Embotelladora Andina SA, 5.000%, 10/1/23(b)		1,490,741
720,000	Lorillard Tobacco Co., 6.875%, 5/1/20		842,034
			4,897,581
	Energy (6.1%)
1,100,000	Access Midstream Partners LP/ACMP Finance Corp., 6.125%, 7/15/22		1,183,875
523,000	Access Midstream Partners LP/ACMP Finance Corp., 4.875%, 3/15/24		521,693
1,272,000	BP Capital Markets PLC, 1.375%, 11/6/17		1,266,948
1,028,000	Buckeye Partners LP, 4.150%, 7/1/23		1,025,257
1,396,000	Chesapeake Energy Corp., 3.250%, 3/15/16		1,409,960
1,904,000	CNOOC Finance, Ltd., 1.750%, 5/9/18		1,857,280
1,203,000	Denbury Resources, Inc., 8.250%, 2/15/20		1,308,263
1,198,000	Energy Transfer Partners LP, 9.000%, 4/15/19		1,503,321
1,180,000	Enterprise Products Operating, LLC, 5.950%, 2/1/41		1,350,996
1,562,000	Kinder Morgan Energy Partners LP, 5.000%, 3/1/43		1,487,224
856,000	NuStar Logistics LP, 8.150%, 4/15/18		975,840
932,000	Petrobras Global Finance BV, 2.000%, 5/20/16		923,845
1,086,000	Petrobras International Finance Co., 3.500%, 2/6/17		1,097,731
1,600,000	Petrofac, Ltd., 3.400%, 10/10/18(b)		1,630,146
1,226,000	Petrohawk Energy Corp., 6.250%, 6/1/19		1,333,275

Continued

29

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

  Principal      Amount        Fair Value    

CORPORATE BONDS — (continued)
	Energy — (continued)
$    992,000	Phillips 66, 5.875%, 5/1/42	$	1,147,676
975,000	Plains Exploration & Production Co., 6.500%, 11/15/20		1,073,719
954,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21		1,023,165
1,127,000	Schlumberger Investment SA, 3.300%, 9/14/21(b)		1,149,826
1,183,000	Shell International Finance BV, 4.550%, 8/12/43		1,222,745
1,490,000	Statoil ASA, 4.800%, 11/8/43		1,591,625
1,150,000	Western Gas Partners LP, 4.000%, 7/1/22		1,139,941
706,000	Williams Partners LP, 4.300%, 3/4/24		709,130
			27,933,481
	Financials (22.1%)
800,000	Affiliated Managers Group, Inc., 4.250%, 2/15/24		804,811
892,000	Alexandria Real Estate Equities, Inc., REIT, 4.600%, 4/1/22		921,710
1,250,000	Ally Financial, Inc., 2.750%, 1/30/17		1,262,500
3,075,000	American International Group, Inc., 3.800%, 3/22/17		3,289,943
1,624,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		1,639,686
1,279,000	Associates Corp. of North America, 6.950%, 11/1/18		1,522,400
2,835,000	Bank of America Corp., MTN, 6.875%, 4/25/18		3,343,344
1,147,000	Bank of America Corp., MTN, 5.875%, 2/7/42		1,326,253
1,074,000	Bank of America Corp., Series K, 8.000%, 7/29/49(a)		1,216,305
1,299,000	Bank of New York Mellon Corp. (The), STEP, 1.969%, 6/20/17		1,325,067
2,573,000	Bear Stearns Cos., LLC (The), 5.550%, 1/22/17		2,852,767
1,132,000	Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(b)		1,324,689
1,055,000	Carlyle Holdings Finance, LLC, 3.875%, 2/1/23(b)		1,051,099
1,772,000	CBRE Services, Inc., 6.625%, 10/15/20		1,891,610
1,500,000	CIT Group, Inc., 4.250%, 8/15/17		1,571,250
960,000	Citigroup, Inc., 5.875%, 1/30/42		1,101,907
1,365,000	CNA Financial Corp., 7.350%, 11/15/19		1,672,013
1,378,000	Corrections Corp. of America, REIT, 4.125%, 4/1/20		1,360,775
1,474,000	CubeSmart LP, REIT, 4.800%, 7/15/22		1,561,131
1,308,000	Duke Realty LP, REIT, 7.375%, 2/15/15		1,382,229
664,000	First American Financial Corp., 4.300%, 2/1/23		650,852
1,038,000	General Electric Capital Corp., GMTN, 6.875%, 1/10/39		1,366,985
2,699,000	General Electric Capital Corp., Series B, 6.250%, 12/29/49(a)		2,887,930
1,327,000	Goldman Sachs Group, Inc. (The), 6.250%, 2/1/41		1,575,740
1,025,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(b)		1,159,698
2,100,000	Health Care REIT, Inc., 4.950%, 1/15/21		2,281,763
1,300,000	Healthcare Realty Trust, Inc., REIT, 3.750%, 4/15/23		1,237,144
1,676,000	Healthcare Trust of America Holdings LP, REIT, 3.700%, 4/15/23		1,595,993
972,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		941,305

  Principal      Amount        Fair Value    

CORPORATE BONDS — (continued)
	Financials — (continued)
$    2,513,000	HSBC Finance Corp., 6.676%, 1/15/21	$    2,932,523
1,061,000	Invesco Finance PLC, 3.125%, 11/30/22	1,027,270
1,036,000	Jefferies Group, LLC, 8.500%, 7/15/19	1,273,193
1,376,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22	1,344,640
570,000	JPMorgan Chase & Co., 5.600%, 7/15/41	645,889
1,347,000	JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(a)	1,522,110
742,000	Kimco Realty Corp., REIT, MTN, 5.783%, 3/15/16	809,009
975,000	Liberty Mutual Group, Inc., 7.800%, 3/15/37(b)	1,082,250
980,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(b)	1,069,274
952,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(b)	1,077,100
946,000	Massachusetts Mutual Life Insurance Co., 8.875%, 6/1/39(b)	1,438,666
2,526,000	Morgan Stanley, 5.375%, 10/15/15	2,692,931
3,486,000	Morgan Stanley, GMTN, 6.625%, 4/1/18	4,063,843
4,627,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17	4,997,775
1,120,000	National Rural Utilities Cooperative Finance Corp., 4.750%, 4/30/43(a)	1,058,400
762,000	Nationwide Mutual Insurance Co., 9.375%, 8/15/39(b)	1,120,626
1,187,000	Pacific LifeCorp, 5.125%, 1/30/43(b)	1,172,633
500,000	PNC Bank NA, BKNT, 4.875%, 9/21/17	552,707
1,007,000	PNC Bank NA, BKNT, 6.000%, 12/7/17	1,155,711
1,450,000	ProAssurance Corp., 5.300%, 11/15/23	1,536,843
1,305,000	Prudential Financial, Inc., 8.875%, 6/15/38(a)	1,598,625
1,148,571	Prudential Holdings, LLC, 8.695%, 12/18/23(b)	1,446,873
1,065,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17	1,166,100
1,100,000	Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23	1,140,693
1,340,000	Royal Bank of Canada, GMTN, 2.200%, 7/27/18	1,348,715
1,096,000	Royal Bank of Scotland Group PLC, 5.000%, 10/1/14	1,111,045
1,937,000	Royal Bank of Scotland Group PLC, 6.125%, 12/15/22	2,028,576
1,473,000	Simon Property Group LP, REIT, 10.350%, 4/1/19	1,993,573
1,014,000	Sirius International Group, Ltd., 6.375%, 3/20/17(b)	1,132,376
1,350,000	Standard Chartered Bank, 6.400%, 9/26/17(b)	1,529,037
1,245,000	SunTrust Banks, Inc., 3.500%, 1/20/17	1,314,386
927,000	Transatlantic Holdings, Inc., 8.000%, 11/30/39	1,222,294
805,000	Validus Holdings, Ltd., 8.875%, 1/26/40	1,119,481
2,109,000	Wachovia Bank NA, MTN, 5.600%, 3/15/16	2,292,437
1,225,000	Wachovia Corp., 5.500%, 8/1/35	1,334,111
		100,470,614
	Health Care (1.4%)
1,136,000	DaVita HealthCare Partners, Inc., 6.625%, 11/1/20	1,216,940
1,190,000	DENTSPLY International, Inc., 2.750%, 8/15/16	1,231,487
766,000	Fresenius US Finance II, Inc., 9.000%, 7/15/15(b)	838,770
716,000	HCA, Inc., 8.500%, 4/15/19	748,936
814,000	Mylan, Inc., 7.875%, 7/15/20(b)	912,473
1,114,000	Ventas Realty LP, 5.700%, 9/30/43	1,257,542
		6,206,148

Continued

30

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

  Principal       Amount         Fair Value    

CORPORATE BONDS — (continued)
	Industrials (2.1%)
$    1,101,000	Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41	$	1,134,919
1,205,000	CNH Capital, LLC, 3.875%, 11/1/15		1,238,138
389,000	Ingersoll-Rand Global Holding Co., Ltd., 2.875%, 1/15/19(b)		387,843
942,500	Nielsen Finance, LLC/Nielsen Finance Co., 4.500%, 10/1/20		949,569
1,335,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 3.125%, 5/11/15(b)		1,367,893
1,298,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		1,283,064
830,000	Textron, Inc., 3.650%, 3/1/21		833,250
1,013,000	United Rentals North America, Inc., 7.375%, 5/15/20		1,118,099
1,060,000	Verisk Analytics, Inc., 5.800%, 5/1/21		1,176,263
			9,489,038
	Information Technology (0.5%)
950,000	Altera Corp., 1.750%, 5/15/17		956,365
1,214,000	Samsung Electronics America, Inc., 1.750%, 4/10/17(b)		1,216,294
			2,172,659
	Materials (2.1%)
1,019,000	FMG Resources (August 2006) Pty, Ltd., 6.875%, 4/1/22(b)		1,097,973
1,248,000	Louisiana-Pacific Corp., 7.500%, 6/1/20		1,382,160
1,140,000	LYB International Finance BV, 4.875%, 3/15/44		1,137,942
1,214,000	Mosaic Co. (The), 5.450%, 11/15/33		1,312,515
1,203,000	Rock-Tenn Co., 4.900%, 3/1/22		1,286,338
1,200,000	Rockwood Specialties Group, Inc., 4.625%, 10/15/20		1,239,000
2,060,000	Xstrata Finance Canada, Ltd., 4.250%, 10/25/22(b)		2,008,772
			9,464,700
	Telecommunication Services (1.3%)
681,000	British Telecommunications PLC, 9.625%, 12/15/30		1,052,704
1,185,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(b)		1,358,376
890,000	Telefonica Emisiones SAU, 5.134%, 4/27/20		962,201
2,226,000	Verizon Communications, Inc., 6.550%, 9/15/43		2,708,897
			6,082,178
	Utilities (1.3%)
895,000	CMS Energy Corp., 8.750%, 6/15/19		1,148,894
1,004,000	Progress Energy, Inc., 3.150%, 4/1/22		986,254
1,477,000	PSEG Power, LLC, 2.450%, 11/15/18		1,477,523
1,847,000	Puget Energy, Inc., 5.625%, 7/15/22		2,105,006
			5,717,677
	Total Corporate Bonds (Cost $184,856,317)		189,358,466
FOREIGN GOVERNMENT BONDS (1.5%)
	Columbia (0.4%)
1,950,000	Republic of Colombia, 5.625%, 2/26/44		2,045,550
	Mexico (0.8%)
1,094,000	United Mexican States, 5.550%, 1/21/45		1,162,375
2,628,000	United Mexican States, MTN, 4.750%, 3/8/44		2,496,600
			3,658,975

  Principal       Amount         Fair Value    

FOREIGN GOVERNMENT BONDS — (continued)
	Poland (0.3%)
$    1,302,000	Republic of Poland, 3.000%, 3/17/23	$	1,217,370
	Total Foreign Government Bonds (Cost $6,533,478)		6,921,895
MORTGAGE-BACKED SECURITIES (11.0%)
	Fannie Mae (5.9%)
50,035	5.000%, 8/1/20, Pool #832058		53,233
168,657	6.000%, 7/1/22, Pool #944967		184,431
197,974	5.000%, 9/1/25, Pool #255892		215,617
1,749,852	4.000%, 2/1/32, Pool #MA0977		1,850,615
172,268	6.500%, 1/1/35, Pool #809198		193,477
70,085	6.000%, 4/1/35, Pool #735503		78,811
61,329	7.000%, 6/1/35, Pool #255820		69,177
92,182	7.000%, 6/1/35, Pool #830686		100,116
276,015	6.500%, 3/1/36, Pool #866062		309,987
204,049	6.500%, 7/1/36, Pool #885493		228,899
2,374,292	5.500%, 8/1/37, Pool #995082		2,640,696
1,277,836	4.500%, 10/1/39, Pool #AC2645		1,364,294
1,037,032	5.000%, 6/1/40, Pool #AD4927		1,132,752
700,392	5.000%, 6/1/40, Pool #AD8718		764,784
2,756,796	4.500%, 12/1/40, Pool #AH1100		2,941,757
2,248,350	4.500%, 5/1/41, Pool #AI1023		2,399,893
3,251,760	4.000%, 9/1/41, Pool #AI3940		3,380,806
3,290,162	4.000%, 1/1/42, Pool #MA0956		3,420,512
5,327,631	3.500%, 5/1/43, Pool #AB9368		5,363,672
			26,693,529
	Freddie Mac (4.3%)
282,149	5.500%, 10/1/21, Pool #G12425		307,143
270,023	5.000%, 12/1/21, Pool #J04025		286,415
325,361	5.000%, 7/1/25, Pool #C90908		353,003
5,232,565	2.500%, 1/1/28, Pool #J22069		5,235,400
523,570	4.000%, 11/1/31, Pool #C91410		552,072
1,973,786	3.500%, 4/1/32, Pool #C91437		2,032,166
3,114,263	3.500%, 7/1/32, Pool #C91467		3,206,329
35,584	6.000%, 7/1/35, Pool #A36304		39,500
288,457	5.000%, 3/1/36, Pool #G08115		313,987
119,009	6.500%, 5/1/36, Pool #A48509		133,496
85,362	5.000%, 7/1/36, Pool #G02291		92,766
880,751	6.500%, 9/1/36, Pool #G08152		986,057
542,940	5.000%, 2/1/37, Pool #A57714		589,028
313,691	4.500%, 10/1/39, Pool #A89346		334,485
1,154,496	5.000%, 6/1/40, Pool #C03479		1,255,052
857,984	3.782%, 7/1/40, Pool #1B4948(a)		897,317
2,665,396	5.000%, 7/1/40, Pool #A93070		2,897,776
			19,511,992
	Ginnie Mae (0.8%)
680,307	5.000%, 2/15/40, Pool #737037		746,487
2,596,735	4.500%, 9/20/40, Pool #4801		2,812,341
			3,558,828
	Total Mortgage-Backed Securities (Cost $49,244,359)		49,764,349

Continued

31

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal       Amount		Fair Value
MUNICIPAL BONDS (9.1%)
	California (1.3%)
$    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	$	4,101,635
1,285,000	State of California, Build America Bonds, School Improvements G.O., 7.625%, 3/1/40		1,793,333
			5,894,968
	Colorado (0.4%)
1,810,000	Colorado Housing & Finance Authority, Unemployment/ Welfare Funding Revenue, Taxable, Series B, 1.600%, 5/15/16		1,842,942
	Connecticut (0.7%)
3,000,000	State of Connecticut Special Tax Revenue, Build America Bonds, Transition Infrastructure, Series B, 4.126%, 11/1/20		3,221,400
	District of Columbia (0.4%)
1,835,000	George Washington University (The), Series 2012, 3.485%, 9/15/22		1,790,365
	Florida (1.0%)
2,135,000	Brevard County School District, Refunding Certificates of Participation, Taxable, Series B, 1.981%, 7/1/18		2,090,549
2,500,000	Greater Orlando Aviation Authority, Airport Facilities Refunding Revenue, Taxable, Series D, 3.733%, 10/1/20		2,541,600
			4,632,149
	Georgia (0.4%)
1,840,000	Rockdale County Water & Sewerage Authority, Refunding Revenue, Taxable (County GTD), 2.860%, 7/1/23		1,755,838
	Illinois (1.0%)
4,500,000	State of Illinois, Building Public Improvements Revenue, Taxable, 3.081%, 6/15/23		4,321,665
	New Jersey (0.3%)
1,305,000	New Jersey Economic Development Authority, School Facilities Construction, Refunding Revenue, Series 00, 1.648%, 3/1/18		1,291,885
	New York (1.5%)
750,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.445%, 6/15/20		722,070
900,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.745%, 6/15/22		843,885
2,900,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.774%, 3/1/20		3,209,517
1,640,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.874%, 3/1/21		1,820,203
			6,595,675
	North Carolina (1.0%)
4,500,000	North Carolina Eastern Municipal Power Agency Refunding Revenue, Taxable, Series C, 2.440%, 1/1/17		4,556,295

Principal       Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Pennsylvania (0.5%)
$    2,260,000	Philadelphia Authority for Industrial Development, Refunding Revenue, Taxable, 3.664%, 4/15/22	$	2,182,437
	Washington (0.3%)
1,680,000	Port of Vancouver, WA, Refunding G.O., Limited Tax, Taxable, Series B, 2.714%, 12/1/21		1,591,111
	Wisconsin (0.3%)
1,640,000	Milwaukee County, WI, Pension Promissory Notes, Refunding G.O., Taxable, Callable 12/1/22 @ 100, 3.862%, 12/1/30		1,568,266
	Total Municipal Bonds (Cost $40,752,572)		41,244,996
U.S. TREASURY NOTES (1.2%)
5,513,145	0.625%, 1/15/24(c)		5,532,099
	Total U.S. Treasury Notes (Cost $5,550,143)		5,532,099
Shares
PREFERRED STOCKS (1.7%)
	Financials (1.3%)
48,595	Aegon NV, 7.250%		1,255,695
38,154	Barclays Bank PLC, Series 4, 7.750%		989,715
61,601	Citigroup Capital XIII, 7.875%		1,708,812
24,704	Merrill Lynch Preferred Capital Trust V, Series F, 7.280%		629,211
50,135	US Bancorp, Series F, 6.500%		1,423,834
			6,007,267
	Telecommunication Services (0.1%)
28,000	Qwest Corp., 7.000%		705,880
	Utilities (0.3%)
45,650	Dominion Resources, Inc., Series A, 8.375%		1,164,075
	Total Preferred Stocks (Cost $7,628,668)		7,877,222

Continued

32

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND (2.1%)
9,341,457	Federated Treasury Obligations Fund, Institutional Shares	$	9,341,457
	Total Money Market Fund (Cost $9,341,457)		9,341,457
Total Investments — 99.6% (Cost $445,623,312)			452,011,446
Net Other Assets (Liabilities) — 0.4%			1,933,255
NET ASSETS — 100.0%		$	453,944,701

(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, 2014. 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 qualified institutional investors. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid.

(c) Inflation protection security. Principal amount periodically adjusted for inflation.

BKNT — Bank Note

G.O. — General Obligation

GMTN — Global Medium Term Note

GTD — Guaranteed

MTN — Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

33

Sterling Capital Corporate Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS (94.5%)
	Consumer Discretionary (8.2%)
$320,000	21st Century Fox America, Inc., 4.500%, 2/15/21	$	347,211
545,000	ERAC USA Finance, LLC, 2.800%, 11/1/18(a)		554,831
360,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		364,716
455,000	Grupo Televisa SAB, 6.000%, 5/15/18		510,256
455,000	Interpublic Group of Cos., Inc. (The), 3.750%, 2/15/23		442,439
355,000	Lear Corp., 5.375%, 3/15/24		361,213
275,000	Royal Caribbean Cruises, Ltd., 11.875%, 7/15/15		311,437
500,000	Service Corp. International, 7.000%, 5/15/19		529,375
340,000	Time Warner Cable, Inc., 4.000%, 9/1/21		352,706
365,000	Toll Brothers Finance Corp., 6.750%, 11/1/19		414,275
403,000	Wyndham Worldwide Corp., 2.950%, 3/1/17		410,921
			4,599,380
	Consumer Staples (2.1%)
380,000	Altria Group, Inc., 4.750%, 5/5/21		414,705
270,000	Embotelladora Andina SA, 5.000%, 10/1/23(a)		280,879
405,000	Lorillard Tobacco Co., 6.875%, 5/1/20		473,644
			1,169,228
	Energy (14.5%)
300,000	Access Midstream Partners LP/ACMP Finance Corp., 6.125%, 7/15/22		322,875
135,000	Access Midstream Partners LP/ACMP Finance Corp., 4.875%, 3/15/24		134,663
334,000	BP Capital Markets PLC, 1.375%, 11/6/17		332,673
388,000	Buckeye Partners LP, 4.875%, 2/1/21		408,696
410,000	Chesapeake Energy Corp., 3.250%, 3/15/16		414,100
285,000	CNOOC Finance, Ltd., 1.750%, 5/9/18		278,007
362,000	Denbury Resources, Inc., 8.250%, 2/15/20		393,675
421,000	Energy Transfer Partners LP, 9.000%, 4/15/19		528,296
291,000	Enterprise Products Operating, LLC, 5.200%, 9/1/20		324,815
272,000	Kinder Morgan Energy Partners LP, 6.850%, 2/15/20		319,437
310,000	Noble Energy, Inc., 4.150%, 12/15/21		326,602
303,000	NuStar Logistics LP, 4.750%, 2/1/22		288,986
332,000	Petrobras International Finance Co., 3.500%, 2/6/17		335,586
410,000	Petrofac, Ltd., 3.400%, 10/10/18(a)		417,725
385,000	Petrohawk Energy Corp., 7.250%, 8/15/18		408,485
315,000	Phillips 66, 2.950%, 5/1/17		328,600
350,000	Pioneer Natural Resources Co., 6.650%, 3/15/17		398,348
383,000	Plains Exploration & Production Co., 6.500%, 11/15/20		421,779
410,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21		439,725
341,000	Schlumberger Investment SA, 3.300%, 9/14/21(a)		347,907
305,000	Spectra Energy Capital, LLC, 8.000%, 10/1/19		373,722
368,000	Western Gas Partners LP, 4.000%, 7/1/22		364,781
250,000	Williams Partners LP, 4.300%, 3/4/24		251,109
			8,160,592
	Financials (51.5%)
352,000	Alexandria Real Estate Equities, Inc., REIT, 4.600%, 4/1/22		363,724
255,000	Alleghany Corp., 4.950%, 6/27/22		275,095

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$335,000	Ally Financial, Inc., 2.750%, 1/30/17	$	338,350
645,000	American International Group, Inc., 3.800%, 3/22/17		690,086
260,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		262,511
560,000	Associates Corp. of North America, 6.950%, 11/1/18		666,571
250,000	AXIS Specialty Finance PLC, 2.650%, 4/1/19		249,629
940,000	Bank of America Corp., MTN, 6.875%, 4/25/18		1,108,551
525,000	Bank of America Corp., Series K, 8.000%, 7/29/49(b)		594,563
485,000	Bear Stearns Cos., LLC (The), 5.550%, 1/22/17		537,735
500,000	Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(a)		585,110
450,000	Carlyle Holdings Finance, LLC, 3.875%, 2/1/23(a)		448,336
390,000	CBL & Associates LP, REIT, 5.250%, 12/1/23		401,310
335,000	CBRE Services, Inc., 6.625%, 10/15/20		357,613
335,000	CIT Group, Inc., 4.250%, 8/15/17		350,913
430,000	Citigroup, Inc., 3.500%, 5/15/23		405,683
325,000	CNA Financial Corp., 7.350%, 11/15/19		398,098
275,000	Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.950%, 11/9/22		273,121
338,000	Corrections Corp. of America, REIT, 4.125%, 4/1/20		333,775
397,000	CubeSmart LP, REIT, 4.800%, 7/15/22		420,467
355,000	DDR Corp., REIT, 9.625%, 3/15/16		411,193
635,000	Endurance Specialty Holdings, Ltd., 6.150%, 10/15/15		678,247
515,000	Essex Portfolio LP, REIT, 3.250%, 5/1/23		482,667
485,000	Federal Realty Investment Trust, REIT, 6.200%, 1/15/17		547,767
355,000	First American Financial Corp., 4.300%, 2/1/23		347,971
410,000	Ford Motor Credit Co., LLC, 2.375%, 1/16/18		413,457
1,100,000	General Electric Capital Corp., Series B, 6.250%, 12/29/49(b)		1,177,000
425,000	Goldman Sachs Group, Inc. (The), 3.625%, 1/22/23		418,075
300,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(a)		339,424
595,000	Health Care REIT, Inc., 4.950%, 1/15/21		646,500
505,000	Healthcare Realty Trust, Inc., REIT, 3.750%, 4/15/23		480,583
408,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		395,116
592,000	HSBC Finance Corp., 6.676%, 1/15/21		690,829
500,000	ING Bank NV, 4.000%, 3/15/16(a)		528,473
470,000	Jefferies Group, LLC, 8.500%, 7/15/19		577,607
308,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		300,980
290,000	JPMorgan Chase & Co., 3.200%, 1/25/23		281,204
500,000	JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(b)		565,000
475,000	Liberty Mutual Group, Inc., 4.250%, 6/15/23(a)		482,052
410,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(a)		447,349
450,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(a)		509,134
345,000	Morgan Stanley, 5.375%, 10/15/15		367,799
872,000	Morgan Stanley, GMTN, 6.625%, 4/1/18		1,016,544
869,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		938,636
345,000	National Rural Utilities Cooperative Finance Corp., 10.375%, 11/1/18		465,172

Continued

34

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$    400,000	Pacific LifeCorp, 6.000%, 2/10/20(a)	$	456,315
540,000	PNC Bank NA, BKNT, 4.875%, 9/21/17		596,924
390,000	ProAssurance Corp., 5.300%, 11/15/23		413,358
363,714	Prudential Holdings, LLC, 8.695%, 12/18/23(a)		458,176
400,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		437,972
390,000	Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23		404,428
395,000	Royal Bank of Scotland Group PLC, 6.125%, 12/15/22		413,674
395,000	Simon Property Group LP, REIT, 10.350%, 4/1/19		534,597
467,000	Sirius International Group, Ltd., 6.375%, 3/20/17(a)		521,518
370,000	Standard Chartered Bank, 6.400%, 9/26/17(a)		419,069
400,000	SunTrust Banks, Inc., 3.500%, 1/20/17		422,293
375,000	UBS AG, MTN, 5.875%, 7/15/16		413,823
495,000	WEA Finance, LLC, 4.625%, 5/10/21(a)		541,644
370,000	WR Berkley Corp., 4.625%, 3/15/22		388,581
			28,992,392
	Health Care (2.7%)
303,000	DaVita HealthCare Partners, Inc., 6.625%, 11/1/20		324,589
485,000	DENTSPLY International, Inc., 2.750%, 8/15/16		501,909
310,000	Fresenius US Finance II, Inc., 9.000%, 7/15/15(a)		339,450
310,000	HCA, Inc., 8.500%, 4/15/19		324,260
			1,490,208
	Industrials (4.6%)
325,000	CNH Capital, LLC, 3.875%, 11/1/15		333,937
270,000	Nielsen Finance, LLC/Nielsen Finance Co., 4.500%, 10/1/20		272,025
325,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 3.125%, 5/11/15(a)		333,008
336,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		332,134
345,000	Textron, Inc., 3.650%, 3/1/21		346,351
445,000	United Rentals North America, Inc., 7.375%, 5/15/20		491,169
445,000	Verisk Analytics, Inc., 5.800%, 5/1/21		493,808
			2,602,432
	Information Technology (0.8%)
450,000	Altera Corp., 1.750%, 5/15/17		453,015
	Materials (4.9%)
355,000	FMG Resources (August 2006) Pty, Ltd., 6.875%, 4/1/22(a)		382,513
390,000	Louisiana-Pacific Corp., 7.500%, 6/1/20		431,925
339,000	Rock-Tenn Co., 4.900%, 3/1/22		362,484
429,000	Rockwood Specialties Group, Inc., 4.625%, 10/15/20		442,943
500,000	Vale Overseas, Ltd., 6.250%, 1/23/17		558,712
585,000	Xstrata Finance Canada, Ltd., 4.250%, 10/25/22(a)		570,452
			2,749,029
	Telecommunication Services (3.7%)
450,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(a)		515,839

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Telecommunication Services — (continued)
$    310,000	Telefonica Emisiones SAU, 3.992%, 2/16/16	$	325,065
1,140,000	Verizon Communications, Inc., 5.150%, 9/15/23		1,247,524
			2,088,428
	Utilities (1.5%)
313,000	CMS Energy Corp., 8.750%, 6/15/19		401,792
407,000	Puget Energy, Inc., 5.625%, 7/15/22		463,853
			865,645
	Total Corporate Bonds (Cost $52,073,908)		53,170,349
U.S. TREASURY NOTES (1.1%)
650,000	1.250%, 11/30/18		638,625
	Total U.S. Treasury Notes (Cost $643,306)		638,625
Shares
PREFERRED STOCKS (3.4%)
	Financials (2.5%)
13,071	Aegon NV, 7.250%		337,755
15,385	Barclays Bank PLC, Series 4, 7.750%		399,087
15,500	Citigroup Capital XIII, 7.875%		429,970
8,688	Merrill Lynch Preferred Capital Trust V, Series F, 7.280%		221,283
			1,388,095
	Utilities (0.9%)
20,050	Dominion Resources, Inc., Series A, 8.375%		511,275
	Total Preferred Stocks (Cost $1,903,458)		1,899,370
MONEY MARKET FUND (0.0%)
27,775	Federated Treasury Obligations Fund, Institutional Shares		27,775
	Total Money Market Fund (Cost $27,775)		27,775
Total Investments — 99.0%     (Cost $54,648,447)			55,736,119
Net Other Assets (Liabilities) — 1.0%			541,128
NET ASSETS — 100.0%		$	56,277,247

(a) Rule 144A, Section 4(2) or other security which is restricted as to resale to qualified institutional investors. The Advisor, using Board approved procedures, 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, 2014. The maturity date reflected is the final maturity date.

BKNT — Bank Note

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.

35

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES (9.2%)
$    427,003	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.494%, 11/25/35(a)	$	402,491
600,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-3A, Class A, 2.100%, 3/20/19(b)		603,133
650,000	Chase Issuance Trust, Series 2012-A7, Class A7, 2.160%, 9/16/24		602,902
650,000	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A2, 1.830%, 8/25/19(b)		641,293
667,604	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.354%, 1/25/36(a)		621,555
593,022	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.474%, 10/25/35(a)		573,953
	Total Asset Backed Securities (Cost $3,440,879)		3,445,327
COLLATERALIZED MORTGAGE OBLIGATIONS (25.7%)
261,753	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		277,458
212,220	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		221,363
59,928	Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A2, 5.000%, 2/25/35		60,117
224,943	Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A4, 5.500%, 2/25/35		237,588
264,590	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		280,591
290,995	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		305,315
101,917	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-J7, Class 1A3, 5.250%, 8/25/33		103,932
214,660	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		221,957
51,335	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-J4, Class A3, 5.500%, 11/25/35		51,401
284,421	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		286,042
308,159	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		326,758
267,481	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		279,406
717,862	Fannie Mae, Series 2013-90, Class VA, 4.000%, 9/25/24		772,432
112,000	Fannie Mae, Series 2013-30, Class PY, 3.000%, 4/25/43		104,150
292,968	Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23		315,469
203,932	Freddie Mac, Series 2485, Class WG, 6.000%, 8/15/32		226,252
355,000	Freddie Mac, Series 3440, Class EM, 5.000%, 4/15/38		382,341
572,990	Freddie Mac, Series 3753, Class PA, 3.500%, 9/15/39		587,987

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE     OBLIGATIONS — (continued)
$    434,221	Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40	$	455,199
314,266	Freddie Mac, Series 3803, Class PJ, 4.250%, 1/15/41		329,892
429,580	Ginnie Mae, Series 2002-45, Class OC, 6.000%, 6/16/32		481,829
290,242	Ginnie Mae, Series 2010-85, Class DQ, 3.000%, 12/20/39		297,555
391,607	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		396,070
99,733	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		103,759
30,922	MASTR Asset Securitization Trust, Series 2005-2, Class 1A1, 5.250%, 11/25/35		30,948
198,182	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		199,520
308,975	PHHMC Trust, Series 2007-6, Class A1, 5.633%, 12/18/37(a)		313,717
183,197	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		191,487
235,515	RBSGC Mortgage Loan Trust, Series 2007-B, Class 3A1, 5.144%, 7/25/35(a)		240,527
434,234	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		439,152
130,083	Structured Asset Securities Corp. Mortgage Pass Through Certificates, Series 2003-10, Class A, 6.000%, 4/25/33		135,073
195,694	Structured Asset Securities Corp. Trust, Series 2005-6, Class 4A1, 5.000%, 5/25/35		197,628
87,823	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35		89,554
58,402	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35		59,746
77,356	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		79,840
537,560	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		552,774
	Total Collateralized Mortgage Obligations (Cost $9,527,490)		9,634,829
COMMERCIAL MORTGAGE-BACKED     SECURITIES (19.6%)
19,322	Banc of America Commercial Mortgage Trust, Series 2007-2, Class A2, 5.611%, 4/10/49(a)		19,551
418,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.290%, 11/10/42(a)		432,772
200,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		206,175
516,000	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		507,368
250,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		280,562
330,000	COMM Mortgage Trust, Series 2013-CR11, Class A4, 4.258%, 10/10/46		348,018
100,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.003%, 12/10/49(a)		111,484

Continued

36

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED     SECURITIES — (continued)
$    618,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a)	$	653,944
422,000	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class AJ, 5.075%, 2/15/38(a)		434,340
535,000	Freddie Mac, Multifamily Structured Pass Through Certificates, Series K-009, Class A2, 3.808%, 8/25/20		572,476
486,000	Freddie Mac, Multifamily Structured Pass Through Certificates, Series K-031, Class A2, 3.300%, 4/25/23		491,666
175,000	GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(b)		190,676
275,000	GS Mortgage Securities Trust, Series 2014-GC18, Class A4, 4.074%, 1/10/47		284,216
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b)		541,130
300,000	LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 2/15/40		329,258
160,000	Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.467%, 3/12/44(a)		171,601
471,111	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48		511,564
760,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class B, 5.276%, 11/15/43(a)(b)		835,989
400,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b)		437,395
	Total Commercial Mortgage-Backed Securities (Cost $7,439,639)		7,360,185
MORTGAGE-BACKED SECURITIES (37.7%)
	Fannie Mae (18.0%)
273,032	4.000%, 3/1/31, Pool #MA0667		288,240
801,993	4.000%, 5/1/32, Pool #MA1074		844,052
386,872	5.500%, 6/1/38, Pool #984277		426,453
327,155	5.500%, 8/1/38, Pool #995072		361,904
287,852	4.500%, 9/1/39, Pool #AC1830		307,252
251,292	5.000%, 12/1/39, Pool #AC8518		275,337
184,499	4.500%, 9/1/40, Pool #AE0411		197,771
423,004	4.500%, 10/1/40, Pool #AE4855		451,169
349,601	5.000%, 1/1/41, Pool #AH3373		382,773
58,186	4.000%, 2/1/41, Pool #AH6188		60,599
692,027	4.000%, 3/1/41, Pool #AH4008		719,269
544,294	4.500%, 3/1/41, Pool #AB2467		584,571
229,313	4.500%, 6/1/41, Pool #AC9298		244,672
327,503	5.000%, 7/1/41, Pool #AI5595		359,003
1,222,124	3.500%, 5/1/43, Pool #AB9368		1,230,391
			6,733,456
	Freddie Mac (17.0%)
435,170	2.500%, 1/1/28, Pool #J22069		435,406
921,705	3.500%, 5/1/32, Pool #C91458		948,004
835,429	4.000%, 5/1/32, Pool #C91449		880,800
795,700	3.500%, 7/1/32, Pool #C91467		819,223
538,910	4.500%, 10/1/39, Pool #G05659		574,804

Principal     Amount		Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
	Freddie Mac — (continued)
$    204,680	5.500%, 10/1/39, Pool #A89387	$	225,189
270,781	5.000%, 4/1/40, Pool #A91812		296,029
221,523	5.500%, 4/1/40, Pool #C03467		243,169
274,592	5.000%, 8/1/40, Pool #C03491		298,625
375,874	4.000%, 11/1/40, Pool #A94742		390,809
372,457	4.000%, 12/1/40, Pool #A95447		387,263
535,955	4.000%, 1/1/41, Pool #A96312		556,267
330,642	3.500%, 3/1/42, Pool #G08479		332,555
			6,388,143
	Ginnie Mae (2.7%)
322,284	4.500%, 6/15/39, Pool #720075		348,846
45,696	4.000%, 12/20/40, Pool #755678		48,131
234,545	4.500%, 3/20/41, Pool #4978		253,551
317,417	4.500%, 5/15/41, Pool #738310		343,627
			994,155
	Total Mortgage-Backed Securities (Cost $14,095,098)		14,115,754
U.S. GOVERNMENT AGENCIES (1.7%)
	Freddie Mac (1.7%)
480,000	6.250%, 7/15/32		640,692
	Total U.S. Government Agencies (Cost $624,806)		640,692
U.S. TREASURY BONDS (3.3%)
770,000	4.500%, 2/15/36		903,788
370,000	2.875%, 5/15/43		322,940
	Total U.S. Treasury Bonds (Cost $1,205,493)		1,226,728
Shares
MONEY MARKET FUND (2.7%)
1,011,024	Federated Treasury Obligations Fund, Institutional Shares		1,011,024
	Total Money Market Fund (Cost $1,011,024)		1,011,024
Total Investments — 99.9%     (Cost $37,344,429)			37,434,539
Net Other Assets (Liabilities) — 0.1%			28,106
NET ASSETS — 100.0%		$	37,462,645

(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, 2014. 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 qualified institutional investors. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid.

See accompanying Notes to the Financial Statements.

37

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal
    Amount         Fair Value ��  

MUNICIPAL BONDS (96.9%)
	Kentucky (96.9%)
$    500,000	Christian County, KY, Public Courthouse Corp., Court Facility Project, Refunding Revenue, (AMBAC), 4.000%, 8/1/16	$	538,880
400,000	Eastern Kentucky University, Refunding Revenue, Series A, (State Intercept), 5.000%, 4/1/24		460,280
500,000	Fayette County, KY, School District Finance Corp., Lease Payable from Local Revenues, Series A, (State Intercept), 5.000%, 10/1/21		576,600
700,000	Jefferson County, KY, School District Finance Corp., Jefferson County School Building, Refunding Revenue, Series A, (AGM), 5.250%, 1/1/19		819,546
500,000	Kentucky Asset/Liability Commission, Project Notes, Federal Highway Trust Transit Improvements Revenue, First Series, (NATL-RE), 4.500%, 9/1/17		559,520
500,000	Kentucky Asset/Liability Commission, Project Notes, Federal Highway Trust Transit Improvements Revenue, First Series, Callable 9/1/23 @ 100, 5.250%, 9/1/25		584,080
510,000	Kentucky Asset/Liability Commission, University of Kentucky Project Notes, Revenue, Series B, Callable 10/1/17 @ 100, 5.000%, 10/1/21		575,759
300,000	Kentucky Asset/Liability Commission, University of Kentucky Project Notes, University & College Revenue, Series A, Callable 10/1/17 @ 100, (AMBAC), 5.000%, 10/1/18		337,800
690,000	Kentucky Economic Development Finance Authority, Baptist Healthcare System, Improvements Refunding Revenue, Series A, Callable 8/15/18 @ 100, OID, 4.750%, 8/15/19		760,753
500,000	Kentucky Economic Development Finance Authority, Owensboro Medical Health System, Hospital Improvements Revenue, Series A, 5.000%, 6/1/16		535,495
555,000	Kentucky Economic Development Finance Authority, Saint Elizabeth Medical Center, Inc. Refunding & Improvement Revenue, Series A, Callable 5/1/19 @ 100, OID, 5.000%, 5/1/24		614,518
500,000	Kentucky Rural Water Finance Corp., Flexible Term Program, Refunding & Improvements Revenue, Series B, Callable 2/1/20 @ 100, 4.000%, 2/1/21		538,830
500,000	Kentucky State Property & Buildings Commission, Project No. 101, Refunding Revenue, 5.000%, 10/1/19		583,985
410,000	Kentucky State Property & Buildings Commission, Project No. 76, Refunding Revenue, (AMBAC), 5.500%, 8/1/21		488,933
460,000	Kentucky State Property & Buildings Commission, Project No. 83, Refunding Revenue, (AMBAC), 5.000%, 10/1/19		535,431
670,000	Kentucky Turnpike Authority, Revitalization Projects, Refunding Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/25		766,983

Principal
    Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	Kentucky — (continued)
$    400,000	Kentucky Turnpike Authority, Revitalization Projects, Revenue, Series A, 4.000%, 7/1/21	$	445,316
460,000	Laurel County, KY, Judicial Center Public Properties Corp., Justice Center Projects, Public Improvements Revenue, Callable 3/1/18 @ 100, OID, 4.500%, 3/1/24		497,251
525,000	Lexington-Fayette Urban County, KY, Airport Board, Refunding Revenue, Series A, 5.000%, 7/1/19		611,651
500,000	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 11/15/21 @ 100, 5.000%, 5/15/30		550,130
790,000	Northern Kentucky University, University & College Improvements Revenue, Series A, Callable 9/1/17 @ 100, (AMBAC, State Intercept), OID, 4.250%, 9/1/21		848,310
540,000	Owensboro, KY, Public Improvements G.O., Series A, 4.000%, 5/1/22		597,440
535,000	Owensboro, KY, Water Refunding & Improvements Revenue, Callable 9/15/18 @ 100, (Assured Guaranty), 5.250%, 9/15/21		611,708
585,000	Owensboro-Daviess County, KY, Regional Water Resource Agency, Refunding & Improvements Revenue, Series A, (XLCA), 4.000%, 1/1/16		618,093
660,000	Pulaski County, KY, Public Properties Corp., Administration Office of the Court Judicial Facility, Public Improvement Revenue, Callable 12/1/18 @ 100, OID, 5.500%, 12/1/24		753,555
270,000	Pulaski County, KY, Public Properties Corp., Administration Office of the Court Judicial Facility, Public Improvement Revenue, Callable 12/1/18 @ 100, OID, 5.625%, 12/1/25		308,985
200,000	Russell, KY, Bon Secours Health System, Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/26		215,834
380,000	Warren County, KY, Community Hospital Corp. Project, Refunding Revenue, Series A, 5.000%, 8/1/17		416,442
	Total Municipal Bonds (Cost $14,780,858)		15,752,108

Continued

38

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND (2.2%)
348,181	Federated Tax-Free Obligations Fund, Institutional Shares	$	348,181
	Total Money Market Fund (Cost $348,181)		348,181
Total Investments — 99.1% (Cost $15,129,039)			16,100,289
Net Other Assets (Liabilities) — 0.9%			150,230
NET ASSETS — 100.0%		$	16,250,519

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Corp.

G.O. — General Obligation

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

XLCA — XL Capital Assurance

See accompanying Notes to the Financial Statements.

39

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

    Principal         Amount         Fair Value    

MUNICIPAL BONDS (97.6%)
	District of Columbia (4.7%)
$    575,000	Washington Metropolitan Area Transit Authority, DC, Transit Improvements Revenue, Refunding Notes, Series A, Callable 7/1/19 @ 100, 5.250%, 7/1/20	$	667,374
1,000,000	Washington Metropolitan Area Transit Authority, DC, Transit Improvements Revenue, Refunding Notes, Series A, Callable 7/1/19 @ 100, 5.250%, 7/1/27		1,129,000
			1,796,374
	Maryland (92.9%)
810,000	Anne Arundel County, MD, Economic Development, Anne Arundel Community College Project, Refunding Revenue, 4.000%, 9/1/20		880,413
500,000	Baltimore, MD, Consolidated Public Improvements, Refunding G.O., Series B, 5.000%, 10/15/20		591,740
600,000	Baltimore, MD, Refunding Certificate of Participation, Series A, 5.000%, 10/1/17		679,014
250,000	Baltimore, MD, Waste Water Projects Revenue, Series C, Callable 7/1/16 @ 100 (AMBAC), 5.000%, 7/1/26		272,245
1,000,000	Charles County, MD, Consolidated Public School Improvements G.O., 5.000%, 7/15/22		1,192,590
890,000	Charles County, MD, Consolidated Public School Improvements G.O., Callable 7/15/23 @ 100, 5.000%, 7/15/25		1,052,105
1,025,000	Frederick County, MD, Public Facilities Improvements, Refunding G.O., Series B, 4.000%, 8/1/17		1,130,637
125,000	Howard County, MD, Miscellaneous Purpose Certificate of Participation, Series A, 8.050%, 2/15/21		171,533
135,000	Howard County, MD, Public Improvements Certificate of Participation, Series B, 8.250%, 2/15/20		181,272
690,000	Maryland Community Development Administration, Residential Single Family Housing Revenue, Series A, Callable 9/1/18 @ 100, 4.750%, 9/1/29		716,972
315,000	Maryland Community Development Administration, Residential Single Family Housing Revenue, Series B, 3.750%, 9/1/14		318,922
250,000	Maryland Economic Development Corp., Electricity Lights & Power Improvements, Refunding Revenue, Callable 3/1/19 @ 100, 6.200%, 9/1/22		292,695
165,000	Maryland Economic Development Corp., Lutheran World Relief Refugee, Refunding Revenue, Callable 4/1/17 @ 100, 5.250%, 4/1/19		179,886
900,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, 5.000%, 6/1/20		1,059,750
420,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, Callable 6/1/21 @ 100, 5.000%, 6/1/26		473,579

    Principal         Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$    735,000	Maryland Economic Development Corp., University of Maryland College Park Projects, Refunding Revenue (AGC), 5.000%, 6/1/16	$	790,522
555,000	Maryland Environmental Service, Mid Shore II Regional Landfill, Resource Recovery Improvements Revenue, 4.000%, 11/1/17		611,382
1,090,000	Maryland Health & Higher Educational Facilities Authority, Carroll Hospital, Refunding Revenue, Series A, 5.000%, 7/1/19		1,239,929
900,000	Maryland Health & Higher Educational Facilities Authority, College of Notre Dame, Refunding Revenue, 4.000%, 10/1/19		980,550
1,000,000	Maryland Health & Higher Educational Facilities Authority, Frederick Memorial Hospital, Refunding Revenue, Series A, 5.000%, 7/1/22		1,119,570
500,000	Maryland Health & Higher Educational Facilities Authority, Greater Baltimore Medical Center, Refunding Revenue, Series A, Callable 7/1/22 @ 100, 5.000%, 7/1/26		553,130
1,260,000	Maryland Health & Higher Educational Facilities Authority, Helix Health Issue, Refunding Revenue (AMBAC), OID, 5.000%, 7/1/27		1,467,673
1,000,000	Maryland Health & Higher Educational Facilities Authority, Johns Hopkins Health System, Health, Hospital, Nursing Home Improvements Revenue, Callable 7/1/22 @ 100, 5.000%, 7/1/25		1,139,680
530,000	Maryland Health & Higher Educational Facilities Authority, Maryland Institute College of Art, Refunding Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/23		584,447
80,000	Maryland Health & Higher Educational Facilities Authority, Medstar Health, Refunding Revenue, 5.000%, 8/15/19		91,848
320,000	Maryland Health & Higher Educational Facilities Authority, Peninsula Regional Medical Center, Health, Hospital, Nursing Home Improvements Revenue, 5.000%, 7/1/15		337,629
810,000	Maryland Health & Higher Educational Facilities Authority, Peninsula Regional Medical Center, Health, Hospital, Nursing Home Improvements Revenue, Callable 7/1/16 @ 100, 5.000%, 7/1/26		867,324
400,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System, Refunding Revenue, 5.000%, 7/1/19		461,020
1,160,000	Maryland Stadium Authority, Refunding Revenue, 5.000%, 6/15/23		1,373,602
500,000	Maryland State Department of Transportation, Transit Improvements Revenue, Second Issue, Callable 9/1/18 @ 100, 5.000%, 9/1/23		569,125
1,070,000	Maryland State Transportation Authority, Grant & Revenue Anticipation, Highway Improvements Revenue, Callable 3/1/19 @ 100, OID, 5.000%, 3/1/20		1,229,623

Continued

40

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

    Principal    
    Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$    1,005,000	Maryland State Transportation Authority, Grant & Revenue Anticipation, Transit Improvements Revenue, 5.000%, 3/1/16	$	1,091,973
635,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, 5.000%, 7/1/19		747,141
1,000,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/22		1,148,220
1,000,000	Maryland, State & Local Facilities, Loan Public Improvements G.O., First Series, 4.000%, 8/15/21		1,129,820
590,000	Maryland, State & Local Facilities, Loan Public Improvements G.O., Second Series, Callable 7/15/18 @ 100, 5.000%, 7/15/23		675,562
250,000	Montgomery County Housing Opportunities Commission, Local Single Family Housing Revenue, Series A, 3.700%, 7/1/14		252,035
775,000	Montgomery County, MD, Consolidated Public Improvements, Refunding G.O., Series A, 5.000%, 7/1/15		822,019
500,000	Montgomery County, MD, Department Liquor Control Public Improvements Revenue, Series A, Callable 4/1/21 @ 100, OID, 4.500%, 4/1/26		542,605
1,000,000	Montgomery County, MD, Public Transportation Equipment Transit Improvements Certificate of Participation, 4.000%, 5/1/17		1,089,910
750,000	Montgomery County, MD, Water Quality Public Improvements Revenue, Series A, Callable 4/1/20 @ 100, 5.000%, 4/1/30		840,847
1,015,000	Prince George’s County, MD, Consolidated Public Improvements G.O., Series A, 4.000%, 9/15/15		1,071,444

    Principal    
    Amount         Fair Value    

	MUNICIPAL BONDS — (continued)
		Maryland — (continued)
	$    1,000,000	Prince George’s County, MD, Equipment Acquisition Program, Public Improvements Certificate of Participation, 4.000%, 10/15/15	$	1,058,100
	530,000	Talbot County, MD, Public School Improvements G.O., 5.000%, 12/15/16		593,823
	1,140,000	Washington County, MD, Refunding G.O., 4.000%, 1/1/21		1,278,670
	500,000	Washington Suburban Sanitary Commission, Water Supply G.O., Callable 6/1/17 @ 100, 4.000%, 6/1/20		534,780
				35,487,356
		Total Municipal Bonds     (Cost $36,110,768)		37,283,730
Shares
	MONEY MARKET FUND (1.8%)
	665,731	Federated Tax-Free Obligations Fund, Institutional Shares		665,731
		Total Money Market Fund (Cost $665,731)		665,731
	Total Investments — 99.4% (Cost $36,776,499)			37,949,461
	Net Other Assets (Liabilities) — 0.6%			244,028
	NET ASSETS — 100.0%		$	38,193,489

AGC — Assured Guaranty Corp.

AMBAC — American Municipal Bond Assurance Corp.

G.O. — General Obligation

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

41

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

    Principal         Amount         Fair Value    

MUNICIPAL BONDS (97.0%)
	North Carolina (97.0%)
$    2,335,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/24	$	2,671,403
2,405,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 4.750%, 10/1/27		2,655,192
1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/24		1,127,530
1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,113,420
1,065,000	Broad River Water Authority, NC, Water System Refunding Revenue, Callable 6/1/15 @ 100, (XLCA), 5.000%, 6/1/18		1,105,672
1,985,000	Buncombe County, NC, Public Improvements Revenue, Series A, 4.000%, 6/1/17		2,181,574
2,000,000	Buncombe County, NC, Refunding Revenue, Limited Obligations, Series A, 5.000%, 6/1/20		2,356,260
1,000,000	Cabarrus County, NC, Installment Financing Contract, Correctional Facility Improvements Certificate of Participation, Series C, Callable 6/1/18 @ 100, OID, 5.000%, 6/1/23		1,123,220
1,960,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, 5.000%, 1/1/17		2,178,893
1,685,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/20		1,935,172
1,730,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/23		1,952,288
1,240,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, 5.000%, 8/1/21		1,462,667
1,475,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/26		1,669,656
1,535,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/28		1,720,029
1,160,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26		1,302,576
1,030,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/31		1,129,251
1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/19		1,118,020
1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/20		1,110,850
1,000,000	Charlotte, NC, Airport Refunding Revenue, Series B, 5.000%, 7/1/15		1,057,420
1,000,000	Charlotte, NC, Port, Airport & Marina Improvements Revenue, Series A, Callable 7/1/20 @ 100, 5.000%, 7/1/27		1,092,900

    Principal         Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    1,280,000	Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/20	$	1,395,712
1,000,000	Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/23		1,091,080
1,000,000	Charlotte, NC, Water & Sewer System, Refunding Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/25		1,154,120
1,000,000	Charlotte-Mecklenburg Hospital Authority, Carolinas Health Care System, Refunding Revenue, Series A, 5.000%, 1/15/17		1,116,250
2,000,000	Chatham County, NC, Refunding Revenue (County Guaranteed), 5.000%, 12/1/28		2,382,620
2,000,000	Concord, NC, Utilities Systems, Refunding Revenue, Series B, Callable 12/1/19 @ 100, 5.000%, 12/1/22		2,233,800
1,000,000	Durham Capital Financing Corp., Limited Obligation Refunding Revenue, 5.000%, 6/1/21		1,184,890
1,410,000	Durham County, NC, Industrial Facilities & Pollution Control Financing Authority, Research Triangle Institute, University & College Improvements Revenue, 5.000%, 2/1/20		1,637,306
2,000,000	Durham County, NC, Public Improvements Certificate of Participation, Series A, Callable 6/1/19 @ 100, 5.000%, 6/1/24		2,258,300
380,000	Elizabeth City State University, University & College Improvements Revenue, Series A (AGM), 4.000%, 4/1/14		380,000
2,170,000	Fayetteville, NC, Public Works Commission, Refunding Revenue, Series A, 5.000%, 3/1/16		2,356,902
1,085,000	Franklin County, NC, Public Facilities Projects, Certificate of Participation, Callable 9/1/17 @ 100 (NATL-RE), 5.000%, 9/1/22		1,198,947
160,000	Henderson County, NC, Henderson County Project, Public Improvements, Certificate of Participation, Series A, (AMBAC), 4.500%, 5/1/14		160,552
1,000,000	Henderson County, NC, School Improvements Certificate of Participation, Series A (AMBAC), 5.000%, 6/1/16		1,091,230
1,030,000	Henderson County, NC, University & College Improvements Revenue, Series B, 4.000%, 12/1/16		1,118,395
1,150,000	Iredell County, NC, School Improvements Project, Certificate of Participation, Callable 6/1/16 @ 100 (AMBAC), 5.000%, 6/1/22		1,238,309
1,000,000	Iredell County, NC, School Improvements Project, Certificate of Participation, Callable 6/1/16 @ 100 (AMBAC), 5.000%, 6/1/23		1,074,340
1,000,000	Lee County, NC, Public Facilities Projects, School Improvements Certificate of Participation, Callable 4/1/17 @ 100 (AGM), 5.000%, 4/1/19		1,096,900
1,570,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/19		1,755,511
1,705,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/20		1,908,492

Continued

42

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

    Principal         Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    1,750,000	Lincoln County, NC, Refunding G.O., Series A, 5.000%, 6/1/18	$	2,024,733
2,535,000	Lincoln County, NC, Refunding G.O., Series A, 4.000%, 6/1/19		2,851,343
800,000	Lincolnton, NC, Combined Enterprise System, Refunding Revenue, Callable 5/1/15 @ 100 (XLCA), 5.000%, 5/1/17		822,248
2,000,000	Mecklenburg County, NC, Refunding G.O., 5.000%, 2/1/21		2,387,320
1,280,000	Monroe, NC, Combined Enterprise System, Refunding Revenue (AGM), 4.000%, 3/1/19		1,416,845
1,000,000	Mooresville, NC, Telecommunications Improvements Certificate of Participation, 5.000%, 9/1/15		1,063,140
1,460,000	Mooresville, NC, Telecommunications Improvements Certificate of Participation, 5.000%, 9/1/16		1,605,825
1,855,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/19		2,191,256
1,015,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/20		1,202,897
1,270,000	New Hanover County, NC, New Hanover Regional Medical, Refunding Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,402,639
1,000,000	New Hanover County, NC, Regional Medical Center, Health Hospital, Nursing Home Improvements Revenue, Series A, Callable 10/1/19 @ 100 (AGM), 5.000%, 10/1/21		1,112,910
1,050,000	New Hanover County, NC, Regional Medical Center, Health Hospital, Nursing Home Improvements Revenue, Series A, Callable 10/1/19 @ 100 (AGM), 5.000%, 10/1/22		1,159,673
1,305,000	North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, 5.000%, 4/1/21		1,474,454
2,160,000	North Carolina Eastern Municipal Power Agency, Electric, Lights & Power Improvements Revenue, Series A, OID, 6.400%, 1/1/21		2,570,508
1,000,000	North Carolina Eastern Municipal Power Agency, Refunding Revenue, Series A, Callable 1/1/16 @ 100 (AMBAC), 5.250%, 1/1/20		1,078,080
2,015,000	North Carolina Medical Care Commission, Blue Ridge Healthcare, Refunding Revenue, Series A, 4.000%, 1/1/16		2,109,161
1,005,000	North Carolina Medical Care Commission, First Mortgage Deerfield, Health, Hospital, Nursing Home Improvements Revenue, Series A, Callable 11/1/18 @ 100, OID, 6.000%, 11/1/33		1,046,496
1,515,000	North Carolina Medical Care Commission, Firsthealth Carolina, Refunding Revenue, Series C, Callable 10/1/14 @ 100, OID, 4.000%, 10/1/18		1,563,601

    Principal         Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    5,000,000	North Carolina Medical Care Commission, Health Care Facilities, Duke University Health System, Health, Hospital, Nursing Home Improvements Revenue, Callable 6/1/22 @ 100, Series A, 5.000%, 6/1/32	$	5,427,050
915,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.000%, 7/1/19		1,026,383
1,180,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.375%, 7/1/20		1,340,032
615,000	North Carolina Medical Care Commission, Health Care Housing ARC Projects, Revenue, Series A (HUD Section 8), 4.650%, 10/1/14		620,732
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		1,049,850
3,030,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, 5.000%, 6/1/20		3,503,104
1,530,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, Callable 6/1/20 @ 100, 5.250%, 6/1/29		1,642,164
2,600,000	North Carolina Medical Care Commission, Rex Healthcare, Refunding Revenue, Series A, 5.000%, 7/1/17		2,908,646
1,000,000	North Carolina Medical Care Commission, Stanly Memorial Hospital Project, Health, Hospital, Nursing Home Improvements Revenue, Callable 4/28/14 @ 100, OID, 6.250%, 10/1/19		1,002,320
2,780,000	North Carolina Medical Care Commission, Vidant Health Care Facilities, Refunding Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/24		3,068,675
1,260,000	North Carolina Medical Care Commission, Wakemed Refunding Revenue, Series A, 5.000%, 10/1/22		1,438,693
2,000,000	North Carolina Medical Care Commission, Wakemed, Refunding Revenue, Series A, Callable 10/1/22 @ 100, 5.000%, 10/1/27		2,179,380
745,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Power, Refunding Revenue, Series A, Callable 1/1/18 @ 100, 5.250%, 1/1/20		833,178
2,500,000	North Carolina Municipal Power Agency No. 1, Catawba Electric Power, Refunding Revenue, Series B, Callable 1/1/20 @ 100, 5.000%, 1/1/21		2,861,525
2,000,000	North Carolina State University at Raleigh, Refunding Revenue, Series A, Callable 10/1/23 @ 100, 5.000%, 10/1/28		2,325,380
1,000,000	North Carolina State, Annual Appropriation, Public Improvements Revenue, Series A, Callable 5/1/19 @ 100, 5.000%, 5/1/24		1,142,910

Continued

43

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

    Principal    
    Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    1,080,000	North Carolina State, Highway Improvements Vehicle, Revenue (NATL-RE), 5.000%, 3/1/16	$	1,173,895
2,150,000	North Carolina State, Highway Improvements Vehicle, Revenue (NATL-RE), 5.000%, 3/1/17		2,407,849
1,085,000	North Carolina State, Highway Improvements Vehicle, Revenue, Callable 3/1/17 @ 100 (NATL-RE), 5.000%, 3/1/18		1,199,988
4,000,000	North Carolina State, Highway Improvements Vehicle, Revenue, Callable 9/1/17 @ 100, 4.000%, 3/1/23(a)		4,329,160
4,550,000	North Carolina State, Public Improvements, Revenue, Series C, Callable 5/1/21 @ 100, 4.000%, 5/1/23		4,932,155
2,925,000	North Carolina State, Refunding G.O., Series A, 5.000%, 9/1/16		3,244,235
2,380,000	North Carolina State, Refunding G.O., Series B, 5.000%, 4/1/17		2,682,165
2,000,000	North Carolina State, University & College Improvements G.O., Series A, Callable 3/1/17 @ 100, 5.000%, 3/1/20		2,232,940
1,000,000	North Carolina State, Water Utility Improvements, Clean Water G.O., Series A, Callable 3/1/16 @ 100, 5.000%, 3/1/17		1,082,130
1,000,000	Onslow County, NC, Refunding G.O., 5.000%, 12/1/21		1,185,460
1,520,000	Onslow Water & Sewer Authority, Water Utility Improvements Revenue, Series B, Callable 6/1/14 @ 100 (XLCA), 5.000%, 6/1/21		1,531,491
1,365,000	Orange County, NC, Public Facilities Co., Public Improvements, Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,555,991
1,105,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL-RE), 5.250%, 6/1/18		1,254,164
1,000,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL-RE), 5.250%, 6/1/19		1,147,800
1,210,000	Pender County, NC, Limited Obligation Refunding Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,375,879
1,390,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/24		1,568,768
1,395,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,564,478
2,160,000	Raleigh Durham Airport Authority, Refunding Revenue, Series B1, Callable 5/1/20 @ 100, 5.000%, 11/1/28		2,417,191
1,500,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/27		1,746,345
1,615,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/28		1,865,793
1,525,000	Rockingham County, NC, Public Improvements Certificate of Participation (Assured Guaranty), 5.000%, 4/1/17		1,705,087
1,510,000	Rockingham County, NC, Refunding Revenue, 5.000%, 4/1/18		1,718,863

    Principal    
    Amount         Fair Value    

MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    1,085,000	Surry County, NC, Northern Hospital District Revenue, Callable 4/1/18 @ 100, OID, 5.500%, 10/1/21	$	1,146,151
1,000,000	Union County, NC, Enterprise Systems, Refunding Revenue, Series A, Callable 12/1/21 @ 100, 4.000%, 12/1/22		1,111,030
2,205,000	Union County, NC, Refunding G.O., Series A, 5.000%, 3/1/22		2,637,863
1,000,000	Union County, NC, Refunding Revenue, 5.000%, 12/1/23		1,190,740
2,285,000	University of North Carolina at Greensboro, Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/23		2,621,352
1,160,000	University of North Carolina System, Appalachian State University, Refunding Revenue, Series B1, 4.000%, 10/1/15		1,225,621
3,260,000	University of North Carolina System, Appalachian State University, Refunding Revenue, Series B1, Callable 4/1/20 @ 100, 5.250%, 10/1/22		3,780,752
3,130,000	University of North Carolina System, Asheville/Wilmington, Refunding Revenue, Series C, Callable 4/1/20 @ 100 (Assured Guaranty), 5.000%, 10/1/20		3,636,778
1,485,000	University of North Carolina System, Asheville/Wilmington, Refunding Revenue, Series C, Callable 4/1/20 @ 100 (Assured Guaranty), 5.250%, 10/1/24		1,675,689
1,975,000	University of North Carolina System, The University of North Carolina at Greensboro, Refunding Revenue, Series B2, 5.000%, 4/1/17		2,216,345
1,005,000	University of North Carolina System, University & College Improvements Revenue, Series A, Callable 10/1/16 @ 100 (NATL-RE), 5.000%, 10/1/17		1,103,480
1,565,000	University of North Carolina System, University & College Improvements, General Trust Indenture Revenue, Series C, 4.250%, 10/1/14		1,594,516
1,000,000	University of North Carolina System, University & College Improvements, General Trust Indenture Revenue, Series C, 4.500%, 10/1/17		1,105,510
2,125,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/24		2,430,447
1,000,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,122,510
1,000,000	Wilson, NC, Public Facilities Project, Public Improvements Certificate of Participation, Series A (Assured Guaranty), 5.000%, 5/1/16		1,087,830
1,000,000	Winston-Salem State University Foundation LLC, Refunding Revenue, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,086,990

Continued

44

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (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	$	1,124,650
	Total Municipal Bonds (Cost $188,936,370)		197,170,881
Shares
MONEY MARKET FUND (1.8%)
3,541,764	Federated North Carolina Municipal Cash Trust, Institutional Shares		3,541,764
	Total Money Market Fund (Cost $3,541,764)		3,541,764
Total Investments — 98.8% (Cost $192,478,134)			200,712,645
Net Other Assets (Liabilities) — 1.2%			2,517,089
NET ASSETS — 100.0%		$	203,229,734

(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, 2014. The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Corp.

CR — Custodial Receipts

G.O. — General Obligation

HUD — Housing & Urban Development

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

XLCA — XL Capital Assurance

See accompanying Notes to the Financial Statements.

45

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal         Amount		Fair Value
MUNICIPAL BONDS (91.8%)
	South Carolina (91.8%)
$1,000,000	Anderson Regional Joint Water System, Refunding Revenue, Series A, Callable 7/15/21 @ 100, 5.000%, 7/15/25	$	1,123,190
1,095,000	Anderson, SC, Water & Sewer, Refunding Revenue (AGM), 5.000%, 7/1/19		1,272,740
1,000,000	Beaufort County, SC, School District, Refunding G.O., Series A, Callable 3/1/17 @ 100 (AGM, SCSDE), 5.000%, 3/1/27		1,084,690
215,000	Camden, SC, Combined Public Utility System, Unrefunded, Combined Refunding & Improvement Revenue, Callable 4/28/14 @ 100 (NATL), 5.000%, 3/1/15		215,815
760,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/16		834,541
595,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/20		692,681
1,000,000	Charleston County, SC, Capital Improvements Transportation Sales Tax, Public Improvements G.O., Callable 11/1/21 @ 100 (State Aid Withholding), 5.000%, 11/1/22		1,187,370
1,000,000	Charleston County, SC, Port, Airport & Marina Improvements Revenue, 5.000%, 12/1/22		1,176,130
2,500,000	Charleston Educational Excellence Finance Corp., Charleston County School Refunding Revenue, 5.000%, 12/1/21		2,915,300
1,295,000	College of Charleston, University & College Improvements Refunding Revenue, Series A, Callable 4/1/21 @ 100, 5.000%, 4/1/25		1,430,561
1,170,000	Easley, SC, Combined Utility System Refunding Revenue, Callable 12/1/19 @ 100 (Assured Guaranty), 5.000%, 12/1/24		1,292,768
1,135,000	East Richland County Public Service District, Refunding Revenue, 4.000%, 1/1/22		1,255,083
200,000	Educational Facilities Authority, Wofford College, University & College Improvements Revenue, Series A, 4.000%, 4/1/15		207,066
1,000,000	Greenville County, SC, School District Building Refunding Revenue, 5.000%, 12/1/22		1,171,840
1,075,000	Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, 5.000%, 12/1/22		1,177,705
570,000	Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, OID, 4.250%, 12/1/21		611,314
1,340,000	Greenville, SC, Hospital System Board, Facilities Refunding Revenue, 5.000%, 5/1/21		1,534,380
1,085,000	Greenville, SC, Hospital System Board, Facilities Refunding Revenue, Series A, Callable 5/1/18 @100, 5.250%, 5/1/22		1,197,156
1,000,000	Greenwood County, SC, Self Regional Healthcare Refunding Revenue, Series B, Callable 4/1/22 @ 100, 5.000%, 10/1/24		1,093,290
530,000	Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 5.000%, 10/1/23		566,999
1,175,000	Greenwood, SC, Combined Public Utility Revenue, Series A, 4.000%, 12/1/18		1,301,653

Principal         Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$500,000	Kershaw County, SC, Kershaw County School District Project, Refunding Revenue (AGC), 5.000%, 12/1/16	$	553,140
1,460,000	Lancaster Educational Assistance Program, Inc., SC, Lancaster County School District Refunding Revenue, Series B, Callable 12/1/23 @ 100, 5.000%, 12/1/24		1,653,362
825,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, 5.000%, 11/1/15		884,870
110,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, 5.000%, 11/1/16		122,087
1,000,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/23		1,100,600
760,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/21 @ 100, 5.000%, 11/1/22		854,339
1,000,000	Lexington County, SC, School District No. 1, G.O., Series C (SCSDE), 5.000%, 2/1/21		1,185,230
1,000,000	Lexington One School Facilities Corp., Lexington County School District No. 1 Revenue, 5.000%, 12/1/16		1,110,340
940,000	Lexington, SC, Combined Waterworks & Sewer System Refunding Revenue, Callable 4/1/21 @100, 5.000%, 4/1/22		1,075,802
790,000	Newberry Investing in Children’s Education, Newberry County School District Project, School Improvements Revenue, 5.250%, 12/1/14		813,021
100,000	North Myrtle Beach, SC, Recreational Facility Improvements G.O. (State Aid Withholding), 4.000%, 3/1/19		111,877
535,000	Oconee County, SC, Duke Power Co. Project Refunding Revenue, 3.600%, 2/1/17		573,830
810,000	Orangeburg County, SC, School District No. 5, Refunding G.O. (SCSDE), 5.000%, 3/1/21		951,701
1,100,000	Orangeburg County, SC, School District No. 5, Refunding G.O., Callable 3/1/17 @100 (NATL-RE, SCSDE), 4.000%, 3/1/19		1,176,032
900,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series A3, 5.000%, 1/1/16		967,347
550,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series A3 (Assured Guaranty), 5.000%, 1/1/18		623,805
1,000,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series B, Callable 1/1/22 @ 100, 4.000%, 1/1/23		1,060,130
420,000	Piedmont Municipal Power Agency, Power System, Prerefunded, Refunding Revenue (NATL-RE), OID, 5.375%, 1/1/25		478,498
1,000,000	Renewable Water Resources Sewage System, Refunding Revenue, 4.000%, 1/1/20		1,112,700
50,000	Renewable Water Resources Sewage System, Refunding Revenue, Series A, Callable 1/1/20 @ 100, 5.000%, 1/1/21		57,375
1,000,000	Rock Hill, SC, Combined Utility System, Refunding & Improvements Revenue, Series B (AGM), 5.000%, 1/1/20		1,153,930

Continued

46

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal       Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$    1,000,000	Rock Hill, SC, Combined Utility System, Refunding Revenue, Series A, Callable 1/1/22 @100 (AGM), 5.000%, 1/1/23	$	1,147,020
1,090,000	Rock Hill, SC. Ltd. Obligations, Hospitality Fee Pledge, Refunding Revenue, 5.000%, 4/1/21		1,239,842
1,135,000	SCAGO Educational Facilities Corp. for Pickens School District, Pickens County Project, School Improvements Revenue, Callable 12/1/16 @ 100 (AGM), 5.000%, 12/1/18		1,256,059
825,000	SCAGO Educational Facilities Corp. for Pickens School District, Pickens County Project, School Improvements Revenue, Callable 12/1/16 @ 100 (AGM), 5.000%, 12/1/19		910,462
500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/18		566,770
500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/19		571,650
550,000	South Carolina Jobs-Economic Development Authority, AnMed Health Project, Refunding & Improvement Revenue, Series B (Assured Guaranty), 5.000%, 2/1/19		627,363
1,000,000	South Carolina Jobs-Economic Development Authority, Bons Secours Health System, Inc., Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/24		1,093,280
1,500,000	South Carolina Jobs-Economic Development Authority, Conway Hospital Income Project, Health, Hospital, Nursing Home Improvements Revenue, Callable 7/1/22 @ 100, 5.000%,7/1/23		1,659,960
850,000	South Carolina Jobs-Economic Development Authority, Kershaw County Medical Center Project, Health, Hospital, Nursing Home Improvements Revenue, OID, 5.000%, 9/15/18		916,461
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health Facilities, Refunding Revenue, Series A, 2.500%, 8/1/14		502,565
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health Facilities, Refunding Revenue, Series A (AGM), 5.000%, 8/1/19		568,230
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health, Refunding & Improvement Facilities Revenue, OID, 5.000%, 8/1/18		547,525
1,050,000	South Carolina State Ports Authority, Port, Airport & Marina Improvements Revenue, 5.000%, 7/1/19		1,211,879
540,000	South Carolina State Public Service Authority, Electricity Lights & Power Improvements Revenue, Series A, Callable 1/1/17 @ 100 (AMBAC), 5.000%, 1/1/23		597,348

Principal       Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$1,030,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/27	$	1,130,950
1,015,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/32		1,093,328
1,225,000	South Carolina State Public Service Authority, Refunding Revenue, Series B, Callable 1/1/16 @ 100 (NATL-RE), 5.000%, 1/1/22		1,311,546
500,000	South Carolina Transportation Infrastructure Bank, Refunding Revenue, Series B (AMBAC), 5.250%, 10/1/15		537,250
285,000	South Carolina Transportation Infrastructure Bank, Transit Improvements Revenue, Series A (XLCA), 5.000%, 10/1/15		305,167
400,000	Spartanburg County, SC, School District No. 1, School Improvements G.O., Callable 9/1/16 @ 100 (AGM, SCSDE), 5.000%, 3/1/22		439,600
1,000,000	Spartanburg Regional Health Services District, Refunding Revenue, Series A, 5.000%, 4/15/20		1,138,790
600,000	Spartanburg Regional Health Services District, Refunding Revenue, Series A, Callable 4/15/18 @ 100 (Assured Guaranty), 5.250%, 4/15/21		662,244
830,000	Three Rivers Solid Waste Authority, Solid Waste Disposal Facilities, Refunding Revenue, 4.500%, 12/15/16		898,749
500,000	University of South Carolina, Refunding Revenue, Series A, Callable 5/1/20 @ 100, 5.000%, 5/1/28		546,970
310,000	York County, SC, Public Improvements G.O., Callable 11/1/16 @ 100, OID, 5.100%, 11/1/21		342,011
170,000	York County, SC, School District No. 1, Refunding G.O., Series A, Callable 3/1/19 @ 100 (SCSDE), 5.000%, 3/1/20		194,931
	Total Municipal Bonds (Cost $61,193,307)		62,980,238

Continued

47

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND (6.9%)
4,689,170	Federated Tax-Free Obligations Fund, Institutional Shares	$	4,689,170
	Total Money Market Fund (Cost $4,689,170)		4,689,170
Total Investments — 98.7% (Cost $65,882,477)			67,669,408
Net Other Assets (Liabilities) — 1.3%			924,455
NET ASSETS — 100.0%		$	68,593,863

AGC — Assured Guaranty Corp.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Corp.

G.O. — General Obligation

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

SCAGO — South Carolina Association of Governmental Organizations

SCSDE — South Carolina School District Enhancement

XLCA — XL Capital Assurance

See accompanying Notes to the Financial Statements.

48

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS (97.2%)
	District of Columbia (1.7%)
$1,160,000	Metropolitan Washington Airports Authority, Port, Airport & Marina Improvement Revenue, Series A, Callable 10/1/20 @ 100, 5.000%, 10/1/23	$	1,341,447
600,000	Metropolitan Washington Airports Authority, Refunding Revenue, Series B, Callable 10/1/19 @ 100, 5.000%, 10/1/21		689,724
			2,031,171
	Virginia (95.5%)
1,000,000	Albemarle County, VA, Economic Development Authority, Albemarle County Project, Public Improvements Revenue, 5.000%, 6/1/21		1,174,750
1,730,000	Albemarle County, VA, Economic Development Authority, Albemarle County Project, Public Improvements Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/23		2,017,076
2,760,000	Albemarle County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/20		3,239,384
1,000,000	Alexandria, VA, Public Improvements G.O., Series A, 5.000%, 6/15/16		1,101,030
1,000,000	Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21		1,197,740
1,000,000	Arlington County, VA, Industrial Development Authority, VA Hospital Center Arlington, Refunding Revenue, 5.000%, 7/1/18		1,136,930
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		1,211,177
475,000	Danville, VA, Refunding G.O., Series A, Callable 3/1/19 @ 100 (Assured Guaranty, State Aid Withholding), 5.000%, 3/1/21		537,501
550,000	Danville, VA, Refunding G.O., Series A, Callable 3/1/19 @ 100, (Assured Guaranty, State Aid Withholding), 5.000%, 3/1/22		616,501
1,410,000	Fairfax County, VA, Economic Development Authority, Community Services Facilities Project, Health, Hospital, Nursing, Home Improvements, Revenue, Series A, 4.500%, 3/1/21		1,595,345
2,500,000	Fairfax County, VA, Economic Development Authority, Laurel Hill Public Facilities Project, Refunding Revenue, Series A, 5.000%, 6/1/22		2,954,850
1,000,000	Fairfax County, VA, Industrial Development Authority, Inova Health System Project, Refunding Revenue, (AGM-CR), OID, 5.250%, 8/15/19		1,141,040
595,000	Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project, Refunding Revenue, Series C, 5.000%, 5/15/18		684,780
715,000	Fairfax County, VA, Redevelopment & Housing Authority, Redevelopment & Housing Refunding Revenue, 3.500%, 10/1/18		782,382
2,160,000	Fairfax County, VA, Sewer Improvements Revenue, Callable 7/15/21 @ 100, 5.000%, 7/15/22		2,559,470

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$  965,000	Falls Church, VA, Public Improvements, G.O. (State Aid Withholding), 5.000%, 7/1/20	$	1,149,595
1,350,000	Hampton, VA, Public Improvements, G.O. (State Aid Withholding), 5.000%, 4/1/21		1,607,310
1,000,000	Hampton, VA, Public Improvements, Refunding G.O., Series A, Callable 1/15/19 @100, 5.000%, 1/15/21		1,139,360
1,525,000	Harrisonburg, VA, Public Improvements, Refunding G.O., Series B, (State Aid Withholding), 5.000%, 7/15/18		1,768,604
1,665,000	Loudoun County, VA, Industrial Development Authority, Refunding Revenue, 4.000%, 12/15/22		1,867,214
1,020,000	Loudoun County, VA, Public Improvements G.O., Series B, (State Aid Withholding), 5.000%, 12/1/16		1,141,900
1,000,000	Loudoun County, VA, School Improvements G.O., Series B, (State Aid Withholding), 5.000%, 12/1/15		1,079,700
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		1,620,378
2,460,000	Montgomery County, VA, Economic Development Authority, Virginia Tech Foundation, Refunding Revenue, Series A, Callable 6/1/21 @ 100, 5.000%, 6/1/24		2,808,139
1,315,000	Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, 5.000%, 2/1/18		1,501,796
1,445,000	Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, Callable 2/1/18 @ 100, 5.000%, 2/1/24		1,584,428
2,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series A, 4.000%, 7/15/20		2,253,500
1,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series B, 5.250%, 7/1/21		1,205,970
1,000,000	Norfolk, VA, Economic Development Authority, Bon Secours Health System, Inc., Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/29		1,064,540
1,000,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare Facilities, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/25		1,138,430
1,000,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/24		1,147,340
1,000,000	Norfolk, VA, Water Utility Improvements Revenue, Callable 11/1/18 @ 100, 5.000%, 11/1/23		1,135,520
400,000	Northern Transportation District Commission, Virginia Railway Express Project, Refunding Revenue, Callable 5/1/14 @ 100, (AGM), 5.375%, 7/1/14		401,720

Continued

49

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$    500,000	Pittsylvania County, VA, Refunding G.O., Series B, 3.000%, 3/1/16	$	523,030
1,000,000	Pittsylvania County, VA, School Improvements G.O., Series B, 5.000%, 2/1/19		1,157,150
1,320,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.200%, 2/1/20		1,511,492
1,775,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.375%, 2/1/21		2,016,791
1,175,000	Poquoson, VA, Refunding G.O., (State Aid Withholding), 5.000%, 2/15/19		1,366,466
1,160,000	Poquoson, VA, Refunding G.O., (State Aid Withholding), 5.000%, 2/15/21		1,363,174
1,700,000	Portsmouth, VA, Public Improvements, Refunding G.O., Series A, Callable 2/1/23 @ 100, (State Aid Withholding), 5.000%, 2/1/27		1,964,418
1,330,000	Portsmouth, VA, Public Utilities, Refunding G.O., Series A, (State Aid Withholding), 4.000%, 7/15/19		1,494,055
1,325,000	Portsmouth, VA, Public Utilities, Refunding G.O., Series A, Callable 7/15/22 @ 100, (State Aid Withholding), 5.000%, 7/15/24		1,547,878
1,440,000	Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23		1,668,240
1,055,000	Portsmouth, VA, Refunding G.O., Series D, Callable 7/15/20 @ 100, 5.000%, 7/15/21		1,229,434
1,400,000	Prince William County, VA, County Facilities, Refunding Certificate of Participation, 3.500%, 10/1/18		1,522,654
1,150,000	Prince William County, VA, County Facilities, Refunding Certificate of Participation, 5.000%, 10/1/21		1,346,581
1,035,000	Richmond Metropolitan Authority, Expressway, Refunding Revenue, (NATL), 5.250%, 7/15/15		1,096,034
1,520,000	Richmond Metropolitan Authority, Expressway, Refunding Revenue, (NATL), 5.250%, 7/15/16		1,664,765
1,400,000	Riverside, VA, Regional Jail Authority, Refunding Revenue, 5.000%, 7/1/20		1,613,150
1,760,000	Riverside, VA, Regional Jail Authority, Refunding Revenue, 5.000%, 7/1/22		2,021,096
1,415,000	Roanoke, VA, Economic Development Authority, Carillion Health System, Remarketing, Refunding Revenue, Series C, (AGM), 5.000%, 7/1/17		1,589,229
1,100,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/15		1,146,915
885,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/20		977,190
900,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, Callable 7/1/20 @ 100, OID, 5.000%, 7/1/23		962,118
1,530,000	Smyth County, VA, Public Improvement, Refunding G.O., Series A, Callable 11/1/21 @ 100 (State Aid Withholding), 5.000%, 11/1/25		1,731,134

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$    1,000,000	Spotsylvania County, VA, Public Improvements, G.O., Callable 1/15/16 @ 100 (AGM), 5.000%, 1/15/17	$	1,075,800
1,420,000	Spotsylvania County, VA, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/28		1,569,980
1,515,000	Stafford County & Staunton Industrial Development Authority, Virginia Municipal League Association, Public Improvements Revenue, Series I, 4.000%, 2/1/16		1,602,612
800,000	Stafford County & Staunton Industrial Development Authority, Virginia Municipal League Association, Public Improvements Revenue, Series I, 4.000%, 2/1/17		863,712
1,300,000	Suffolk, VA, Public Improvements, Refunding G.O., Series A, (NATL-RE), 5.000%, 2/1/16		1,409,356
2,425,000	Suffolk, VA, Public Improvements, Refunding G.O., Series A, (NATL-RE), 5.000%, 2/1/17		2,715,273
465,000	Suffolk, VA, Unrefunded, Refunding G.O., Callable 12/1/15 @ 100, 5.000%, 12/1/18		500,400
1,100,000	Virginia Biotechnology Research Partnership Authority, Constructions Laboratories Project, Refunding Revenue, 5.000%, 9/1/19		1,293,457
2,500,000	Virginia College Building Authority, 21st Century College & Equipment, University & College Improvements Revenue, Series A (State Intercept), 5.000%, 2/1/22		2,970,525
845,000	Virginia College Building Authority, 21st Century College & Equipment, University & College Improvements Revenue, Series A, Callable 2/1/18 @ 100, (State Intercept), 5.000%, 2/1/21		949,645
1,000,000	Virginia College Building Authority, Educational Refunding Revenue, Series A, (State Intercept), 5.000%, 9/1/19		1,178,720
1,805,000	Virginia College Building Authority, Public Higher Education Financing Program, Refunding Revenue, Series B, (State Intercept), 5.000%, 9/1/20		2,137,842
1,620,000	Virginia Commonwealth Transportation Board, Federal Transportation Grant, Transit Improvements, Anticipation Revenue, Series A, 5.000%, 9/15/18		1,885,226
1,850,000	Virginia Commonwealth Transportation Board, Federal Transportation Grant, Transit Improvements, Revenue, Series B, Callable 9/15/22 @ 100, 5.000%, 3/15/23		2,192,139
1,400,000	Virginia Housing Development Authority, State Single Family Housing Revenue, Series A, 3.900%, 3/1/19		1,537,690
1,500,000	Virginia Port Authority, Port, Airport & Marina Improvements Revenue, Callable 7/1/20 @ 100, 5.000%, 7/1/28		1,677,240
1,025,000	Virginia Public Building Authority, Public Facilities Building Revenue, Series A, Callable 8/1/17 @ 100, (NATL-RE), 5.000%, 8/1/18		1,152,520
2,000,000	Virginia Public Building Authority, Public Improvements Revenue, Series A, Callable 8/1/21 @ 100, 5.000%, 8/1/26		2,266,760

Continued

50

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$1,000,000	Virginia Public School Authority, School Financing 1997 Resolution, School Improvement Revenue, Series B, Callable 8/1/17 @100, (NATL-RE), 5.000%, 8/1/26	$	1,116,330
1,150,000	Virginia Resources Authority, State Revolving Fund, Refunding Revenue, 5.500%, 10/1/17		1,335,737
1,835,000	Virginia Small Business Financing Authority, Sentara Healthcare Refunding Revenue, 4.000%, 11/1/16		1,990,736
175,000	Virginia Small Business Financing Authority, Sentara Healthcare, Refunding Revenue, Callable 5/1/20 @ 100, OID, 4.000%, 11/1/20		188,799
1,255,000	Western Regional Jail Authority, Correctional Facilities Improvement Revenue, Callable 6/1/17 @ 100, (NATL-RE), 4.750%, 6/1/23		1,376,660
2,000,000	York County, VA, Economic Development Authority, Electric & Power, Refunding Revenue, Series A, 4.050%, 5/1/33(a)		2,005,260
845,000	York County, VA, Economic Development Authority, VA Capital Projects, Refunding Revenue, 4.000%, 7/15/22		934,595
			117,005,408
	Total Municipal Bonds (Cost $114,324,114)		119,036,579

Shares		Fair Value
MONEY MARKET FUND (1.9%)
2,280,977	Federated Virginia Municipal Money Market Portfolio, Institutional Shares	$	2,280,977
	Total Money Market Fund (Cost $2,280,977)		2,280,977
Total Investments — 99.1% (Cost $116,605,091)			121,317,556
Net Other Assets (Liabilities) — 0.9%			1,160,639
NET ASSETS — 100.0%		$	122,478,195

(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, 2014. The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

CR — Custodial Receipts

G.O. — General Obligation

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

See accompanying Notes to the Financial Statements.

51

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS (96.5%)
$    975,000	Berkeley County, WV, Public Service Sewer District, Sewer Improvements Revenue, Series A, Callable 3/1/15 @ 100, 5.000%, 3/1/22	$	1,004,377
670,000	Braxton County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/18 @ 100, (AGM, West Virginia Board Commission), 5.000%, 5/1/23		748,799
1,450,000	Cabell County, WV, Board of Education, School Improvements G.O., (NATL-RE), 5.000%, 5/1/16		1,583,690
1,215,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, 4.000%, 6/1/19		1,339,124
1,005,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series A, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,132,464
1,495,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,684,611
1,260,000	Fairmont, WV, Waterworks Refunding Revenue, Series D, (AGM), 3.000%, 7/1/18		1,321,576
1,100,000	Fairmont, WV, Waterworks Refunding Revenue, Series D, Callable 7/1/19 @100, (AGM), 4.000%, 7/1/24		1,137,873
2,250,000	Greenbrier County, WV, Board of Education, Public School Improvements G.O., (AGM), 5.000%, 5/1/18		2,591,347
535,000	Jefferson County, WV, Board of Education Public School, Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/18		590,619
1,605,000	Jefferson County, WV, Board of Education Public School, Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/19		1,779,656
715,000	Jefferson County, WV, Board of Education Public School, Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/20		791,784
340,000	Logan County, WV, 1st Mortgage, Logan County, Health, Hospital, Nursing Home Improvements, Revenue, 8.000%, 12/1/16		380,174
1,700,000	Marshall University, WV, Refunding Revenue, 5.000%, 5/1/19		1,963,432
1,390,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/26		1,540,940
1,560,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/27		1,717,997
700,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/19		775,810
1,545,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., (West Virginia Board Commission), 5.000%, 5/1/20		1,795,800
1,000,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., Callable 5/1/22 @ 100, (West Virginia Board Commission), 5.000%, 5/1/23		1,153,480

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
$    530,000	Monongalia County, WV, Building Commission Justice Center, Public Improvements Revenue, Series A, 4.000%, 2/1/19	$	582,518
775,000	Monongalia County, WV, Building Commission Justice Center, Public Improvements Revenue, Series A, 4.000%, 2/1/21		844,262
405,000	Monongalia County, WV, Building Commission Justice Center, Public Improvements Revenue, Series A, Callable 2/1/21 @ 100, 4.000%, 2/1/22		435,428
815,000	Monongalia County, WV, Building Commission, Health System Obligated Group Refunding Revenue, Callable 7/1/21 @ 100, OID, 6.250%, 7/1/31		886,044
1,345,000	Monongalia County, WV, Building Commission, Health, Hospital, Nursing Home Improvement Revenue, Series A, Callable 7/1/15 @ 100, 5.250%, 7/1/20		1,379,284
745,000	Ohio County, WV, County Commission, Fort Henry Centre Financing District, Public Improvement, Tax Allocation, Series A, 5.350%, 6/1/17		780,283
1,190,000	Parkersburg, WV, Combined Waterworks & Sewer Systems, Refunding Revenue, Series C, (NATL), 5.000%, 9/1/14		1,210,218
1,330,000	Parkersburg, WV, Combined Waterworks & Sewer Systems, Refunding Revenue, Series C, (NATL), 5.000%, 9/1/15		1,401,594
420,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., 3.000%, 5/1/17		444,524
860,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., 4.000%, 5/1/21		947,995
295,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/22		320,839
1,210,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/23		1,299,504
1,165,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/24		1,238,325
1,000,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 3.000%, 5/1/19		1,059,890
1,645,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 4.000%, 5/1/21		1,833,731
1,285,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, 5.000%, 5/1/22		1,388,044
1,365,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, Callable 5/1/22 @ 100, 5.000%, 5/1/27		1,403,015
2,005,000	Putnam County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 5/1/19		2,252,257
1,000,000	Putnam County, WV, Board of Education, Public School Improvements, G.O., Callable 5/1/20 @ 100, (West Virginia Board Commission), 4.000%, 5/1/22		1,090,280

Continued

52

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
$  1,400,000	Shepherd University Board of Governors, Residence Facilities Projects, University & College Improvements, Revenue, Callable 6/1/15 @ 100, (NATL-RE), 5.000%, 6/1/25	$	1,469,916
1,215,000	West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Series A, 5.000%, 6/1/19		1,397,335
3,000,000	West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/25		3,319,950
4,685,000	West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/26		5,184,655
750,000	West Virginia Economic Development Authority, Department of Environmental Protection Lease, Refunding Revenue, Series B, 4.000%, 11/1/21		813,743
1,000,000	West Virginia Economic Development Authority, Ohio Power Co. Amos Project, Resource Recovery Improvements Revenue, Series A, 3.125%, 3/1/43(a)		1,020,290
1,710,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, 3.000%, 12/15/18		1,821,595
2,390,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, Callable 12/15/18 @ 100, 3.000%, 12/15/19		2,495,399
670,000	West Virginia Higher Education Policy Commission, Community & Technology Capital Improvements Revenue, Series A, 5.000%, 7/1/17		752,269
1,600,000	West Virginia Higher Education Policy Commission, Higher Education Facilities, Refunding Revenue, Series A, 5.000%, 4/1/20		1,853,712
250,000	West Virginia Higher Education Policy Commission, Higher Educational Facilities, Refunding Revenue, Series B, Callable 5/1/14 @100, (NATL), 5.000%, 4/1/16		250,910
640,000	West Virginia Hospital Finance Authority, Charleston Area Medical Center, Inc., Health, Hospital, Nursing Home Improvements Revenue, Series A, Callable 9/1/16 @ 100, OID, 6.500%, 9/1/16		695,379
845,000	West Virginia Hospital Finance Authority, Health System Obligation, Health, Hospital, Nursing Home Improvements, Revenue, Callable 1/1/15 @ 100, OID, 5.000%, 1/1/24		871,279
1,555,000	West Virginia Housing Development Fund, Refunding Revenue, Series A, 2.750%, 11/1/20		1,604,340
2,350,000	West Virginia School Building Authority, Capital Improvements, Refunding Revenue, Series A, (NATL), 5.000%, 7/1/16		2,583,496
1,855,000	West Virginia School Building Authority, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100, (NATL), 5.000%, 7/1/18		2,070,180

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
$  1,650,000	West Virginia School Building Authority, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100, (NATL), 5.000%, 7/1/19	$	1,850,755
2,500,000	West Virginia School Building Authority, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100, (NATL), 5.000%, 7/1/20		2,796,900
100,000	West Virginia School Building Authority, School Improvements Revenue, 5.000%, 7/1/16		109,818
1,300,000	West Virginia School Building Authority, School Improvements Revenue, 5.000%, 7/1/18		1,494,155
1,050,000	West Virginia School Building Authority, School Improvements Revenue, Callable 7/1/18 @ 100, OID, 5.000%, 7/1/27		1,162,329
1,840,000	West Virginia School Building Authority, School Improvements Revenue, Callable 7/1/18 @100, 5.250%, 7/1/21		2,081,592
1,890,000	West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A, (AMBAC), 5.375%, 7/1/21		2,049,006
1,320,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL, G.O. of Authority), 5.250%, 5/15/17		1,493,026
2,000,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL, G.O. of Authority), 5.250%, 5/15/19		2,346,420
1,000,000	West Virginia State Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, Callable 11/1/23 @ 100, 5.000%, 11/1/26		1,141,750
2,525,000	West Virginia State Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, Callable 11/1/23 @ 100, 5.000%, 11/1/27		2,867,718
1,480,000	West Virginia University, University Projects, University & College Improvements Refunding Revenue, Series A, Callable 10/1/22 @ 100, 5.000%, 10/1/35		1,597,941
1,865,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/18		2,156,779
500,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/19		583,125
1,500,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/20		1,749,855
2,090,000	West Virginia, State Road, Refunding G.O., (NATL), 5.000%, 6/1/15		2,207,437
	Total Municipal Bonds (Cost $98,798,395)		101,724,642

Continued

53

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2014 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND (2.7%)
2,867,404	Federated Tax-Free Obligations Fund, Institutional Shares	$	2,867,404
	Total Money Market Fund (Cost $2,867,404)		2,867,404
Total Investments — 99.2% (Cost $101,665,799)			104,592,046
Net Other Assets (Liabilities) — 0.8%			873,982
NET ASSETS — 100.0%		$	105,466,028

(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, 2014. The maturity date reflected is the final maturity date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Corp.

G.O. — General Obligation

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

See accompanying Notes to the Financial Statements.

54

Sterling Capital Strategic Allocation Conservative Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares		Fair Value
EQUITY FUNDS (40.2%)
205,658	Sterling Capital Equity Income Fund, Institutional Shares(a)	$	3,831,400
169,516	Sterling Capital Special Opportunities Fund, Institutional Shares(a)		3,793,772
	Total Equity Funds (Cost $6,634,303)		7,625,172
FIXED INCOME FUND (57.5%)
1,024,077	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		10,896,174
	Total Fixed Income Funds (Cost $10,534,039)		10,896,174
MONEY MARKET FUND (2.1%)
401,708	Federated Treasury Obligations Fund, Institutional Shares		401,708
	Total Money Market Fund (Cost $401,708)		401,708
Total Investments — 99.8% (Cost $17,570,050)			18,923,054
Net Other Assets (Liabilities) — 0.2%			40,962
NET ASSETS — 100.0%		$	18,964,016

(a) Investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940.

See accompanying Notes to the Financial Statements.

55

Sterling Capital Strategic Allocation Balanced Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares		Fair Value
EQUITY FUNDS (60.2%)
598,572	Sterling Capital Equity Income Fund, Institutional Shares(a)	$	11,151,402
493,445	Sterling Capital Special Opportunities Fund, Institutional Shares(a)		11,043,298
	Total Equity Funds (Cost $19,484,691)		22,194,700
FIXED INCOME FUND (37.5%)
1,301,913	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		13,852,359
	Total Fixed Income Funds (Cost $13,469,586)		13,852,359
MONEY MARKET FUND (2.2%)
797,379	Federated Treasury Obligations Fund, Institutional Shares		797,379
	Total Money Market Fund (Cost $797,379)		797,379
Total Investments — 99.9% (Cost $33,751,656)			36,844,438
Net Other Assets (Liabilities) — 0.1%			40,953
NET ASSETS — 100.0%		$	36,885,391

(a) Investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940.

See accompanying Notes to the Financial Statements.

56

Sterling Capital Strategic Allocation Growth Fund

Schedule of Portfolio Investments

March 31, 2014 (Unaudited)

Shares		Fair Value
EQUITY FUNDS (75.2%)
559,458	Sterling Capital Equity Income Fund, Institutional Shares(a)	$	10,422,697
461,157	Sterling Capital Special Opportunities Fund, Institutional Shares(a)		10,320,701
	Total Equity Funds (Cost $18,188,961)		20,743,398
FIXED INCOME FUND (22.7%)
589,227	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		6,269,376
	Total Fixed Income Funds (Cost $6,183,705)		6,269,376
MONEY MARKET FUND (2.0%)
566,826	Federated Treasury Obligations Fund, Institutional Shares		566,826
	Total Money Market Fund (Cost $566,826)		566,826
Total Investments — 99.9% (Cost $24,939,492)			27,579,600
Net Other Assets (Liabilities) — 0.1%			16,860
NET ASSETS — 100.0%		$	27,596,460

(a) Investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940.

See accompanying Notes to the Financial Statements.

57

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2014 (Unaudited)

	Sterling Capital Large Cap Value Diversified Fund			Sterling Capital Mid Value Fund
Assets:
Investments at fair value (a)	$	259,855,356		$	738,902,092
Cash		—			—
Cash held at broker for securities sold short		—			—
Interest and dividends receivable		371,175			1,374,827
Receivable for investments sold		—			685,846
Receivable for capital shares issued		432,430			2,852,079
Deferred offering costs		—			—
Prepaid expenses		26,195			47,896
Total Assets		260,685,156			743,862,740
Liabilities:
Call options written (premiums received $ — , $ — , $ — , $1,784,008, $970,481, $ — and $ — , respectively)		—			—
Securities sold short, at value (proceeds $ — , $ — , $ — , $ — , $ — , $26,165,420 and $ — , respectively)		—			—
Distributions payable		120			—
Payable for investments purchased		—			2,660,513
Payable for capital shares redeemed		2,697			664,617
Payable for dividends on short sales		—			—
Payable to broker for service fee on short sales		—			—
Accrued expenses and other payables:
Investment advisory fees		131,042			438,762
Administration fees		20,323			58,308
Audit fees		13,815			34,012
Distribution (12b-1) fees		8,303			14,094
Trustee fees		216			—
Other fees		13,680			9,926
Total Liabilities		190,196			3,880,232
Net Assets	$	260,494,960		$	739,982,508
Net Assets Consist of:
Capital	$	274,208,726		$	575,296,166
Undistributed (distributions in excess of) net investment income (loss)		117,756			555,603
Accumulated realized gain (loss)		(50,859,002	)		3,843,876
Net unrealized appreciation (depreciation)		37,027,480			160,286,863
Net Assets	$	260,494,960		$	739,982,508
Net Assets
Class A Shares	$	33,554,132		$	45,777,485
Class B Shares		1,160,012			1,676,481
Class C Shares		401,019			3,668,172
Institutional Shares		225,379,797			688,860,183
Class R Shares		—			187
Total	$	260,494,960		$	739,982,508
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares		2,040,084			2,367,552
Class B Shares		71,772			92,103
Class C Shares		25,020			202,307
Institutional Shares		13,630,094			35,365,241
Class R Shares		—			10
Total		15,766,970			38,027,213
Net Asset Value
Class A Shares - redemption price per share	$	16.45		$	19.34
Class B Shares - offering price per share*	$	16.16		$	18.20
Class C Shares - offering price per share*	$	16.03		$	18.13
Institutional Shares	$	16.54		$	19.48
Class R Shares	$	—		$	18.95	**
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	$	17.45		$	20.52
(a) Investments at cost	$	222,827,876		$	578,615,229

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

** The Sterling Capital Mid Value Fund and Sterling Capital Small Cap Value Diversified Fund net asset value for Class R Shares is calculated using unrounded net assets of $186.71 and $179.62 divided by the unrounded shares of 9.852 and 12.015, respectively.

See accompanying Notes to the Financial Statements.

58

Sterling Capital Small Cap Value Diversified Fund			Sterling Capital Special Opportunities Fund			Sterling Capital Equity Income Fund			Sterling Capital Long/Short Equity Fund			Sterling Capital Ultra Short Bond Fund
$	136,104,343		$	946,307,280		$	2,010,264,876		$	80,316,370		$	57,818,550
	—			—			—			251,994			—
	—			—			—			26,392,271			—
	240,383			685,433			4,921,904			56,528			578,249
	14,655,868			1,335,004			3,133,754			2,080,061			—
	841,848			2,580,290			6,132,967			5,635,944			40,089
	—			—			—			6,183			—
	27,807			44,526			80,162			4,931			11,201
	151,870,249			950,952,533			2,024,533,663			114,744,282			58,448,089
	—			2,422,350			745,000			—			—
	—			—			—			26,624,176			—
	—			—			6,432			—			11,745
	14,740,729			4,513,238			4,410,749			5,891,315			1,000,000
	27,789			748,184			4,799,102			127,970			168,660
	—			—			—			25,786			—
	—			—			—			2,624			—
	86,461			595,072			1,186,764			92,683			9,758
	10,725			73,830			157,805			5,749			4,541
	6,769			48,518			110,192			1,595			3,312
	2,914			165,849			420,697			69			3,863
	—			828			1,811			198			249
	8,406			79,715			225,909			11,483			6,224
	14,883,793			8,647,584			12,064,461			32,783,648			1,208,352
$	136,986,456		$	942,304,949		$	2,012,469,202		$	81,960,634		$	57,239,737
$	121,807,250		$	664,619,950		$	1,611,922,436		$	77,435,083		$	57,380,606
	(147,987	)		(293,531	)		1,430,683			(212,272	)		(31,585	)
	(2,734,354	)		10,287,773			27,165,806			2,332,775			(40,720	)
	18,061,547			267,690,757			371,950,277			2,405,048			(68,564	)
$	136,986,456		$	942,304,949		$	2,012,469,202		$	81,960,634		$	57,239,737
$	11,134,597		$	322,729,064		$	729,611,437		$	361,874		$	17,918,674
	390,282			8,428,232			9,072,727			—			—
	349,866			107,053,758			310,686,551			4,882			—
	125,111,531			503,585,330			959,983,722			81,593,878			39,321,063
	180			508,565			3,114,765			—			—
$	136,986,456		$	942,304,949		$	2,012,469,202		$	81,960,634		$	57,239,737
	741,882			14,848,051			39,260,593			33,500			1,797,100
	26,773			430,497			489,306			—			—
	24,026			5,463,509			16,845,837			453			—
	8,273,542			22,496,898			51,539,621			7,548,122			3,943,630
	12			23,012			168,541			—			—
	9,066,235			43,261,967			108,303,898			7,582,075			5,740,730
$	15.01		$	21.74		$	18.58		$	10.80		$	9.97
$	14.58		$	19.58		$	18.54		$	—		$	—
$	14.56		$	19.59		$	18.44		$	10.78		$	—
$	15.12		$	22.38		$	18.63		$	10.81		$	9.97
$	14.95	**	$	22.10		$	18.48		$	—		$	—
	5.75	%		5.75	%		5.75	%		5.75	%		0.50	%
$	15.93		$	23.07		$	19.71		$	11.46		$	10.02
$	118,042,796		$	677,978,181		$	1,638,540,080		$	77,452,569		$	57,887,114

59

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2014 (Unaudited)

	Sterling Capital Short Duration Bond Fund			Sterling Capital Intermediate U.S. Government Fund
Assets:
Investments at fair value (a)	$	85,763,695		$	39,111,549
Cash		—			—
Interest and dividends receivable		644,896			199,162
Receivable for investments sold		—			—
Receivable for capital shares issued		206,951			91,318
Prepaid expenses		13,571			6,919
Total Assets		86,629,113			39,408,948
Liabilities:
Distributions payable		167,209			54,086
Payable for investments purchased		329,083			—
Payable for capital shares redeemed		14,752			16,898
Accrued expenses and other payables:
Investment advisory fees		20,385			14,557
Administration fees		6,777			3,152
Distribution (12b-1) fees		2,701			3,065
Trustee fees		24			89
Other fees		9,542			10,128
Total Liabilities		550,473			101,975
Net Assets	$	86,078,640		$	39,306,973
Net Assets Consist of:
Capital	$	94,422,124		$	45,618,912
Undistributed (distributions in excess of) net investment income		(632,318	)		245,202
Accumulated realized gain (loss)		(7,534,651	)		(7,265,338	)
Net unrealized appreciation (depreciation)		(176,515	)		708,197
Net Assets	$	86,078,640		$	39,306,973
Net Assets
Class A Shares	$	10,497,762		$	9,280,285
Class B Shares		—			347,667
Class C Shares		574,183			891,709
Institutional Shares		75,006,695			28,787,312
Class R Shares		—			—
Total	$	86,078,640		$	39,306,973
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares		1,142,466			907,011
Class B Shares		—			34,095
Class C Shares		62,491			87,280
Institutional Shares		8,163,023			2,810,250
Class R Shares		—			—
Total		9,367,980			3,838,636
Net Asset Value
Class A Shares - redemption price per share	$	9.19		$	10.23
Class B Shares - offering price per share*	$	—		$	10.20
Class C Shares - offering price per share*	$	9.19		$	10.22
Institutional Shares	$	9.19		$	10.24
Class R Shares	$	—		$	—
Maximum Sales Charge - Class A Shares		2.00	%		2.00	%
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares	$	9.38		$	10.44
(a) Investments at cost	$	85,940,210		$	38,403,352

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

** The Sterling Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund net asset value for Class C Shares is calculated using unrounded net assets of $2,711.81 and $2,678.96 divided by the unrounded shares of 265.551 and 272.644, respectively.

*** The Sterling Capital Total Return Bond Fund net asset value for Class R Shares is calculated using unrounded net assets of $5,553.32 divided by the unrounded shares of 524.50.

See accompanying Notes to the Financial Statements.

60

Sterling Capital Total Return Bond Fund			Sterling Capital Corporate Fund			Sterling Capital Securitized Opportunities Fund			Sterling Capital Kentucky Intermediate Tax-Free Fund			Sterling Capital Maryland Intermediate Tax-Free Fund
$	452,011,446		$	55,736,119		$	37,434,539		$	16,100,289		$	37,949,461
	—			—			3			—			—
	3,764,929			743,388			127,898			193,178			405,836
	2,793			—			—			—			—
	1,059,767			276,190			—			—			2,170
	14,984			9,254			8,853			2,214			3,539
	456,853,919			56,764,951			37,571,293			16,295,681			38,361,006
	654,527			35,475			3,661			25,748			44,938
	—			—			—			—			—
	1,975,884			416,114			80,244			6,628			94,726
	142,483			17,384			9,728			6,337			14,825
	35,847			4,625			2,923			1,311			3,067
	14,011			46			16			1,164			2,233
	951			—			62			33			37
	85,515			14,060			12,014			3,941			7,691
	2,909,218			487,704			108,648			45,162			167,517
$	453,944,701		$	56,277,247		$	37,462,645		$	16,250,519		$	38,193,489
$	454,214,175		$	55,607,436		$	39,151,232		$	15,160,721		$	37,003,846
	(791,044	)		(60,651	)		(153,326	)		3,324			4,617
	(5,866,564	)		(357,210	)		(1,625,371	)		115,224			12,064
	6,388,134			1,087,672			90,110			971,250			1,172,962
$	453,944,701		$	56,277,247		$	37,462,645		$	16,250,519		$	38,193,489
$	39,543,901		$	240,466		$	84,767		$	5,147,418		$	7,074,395
	1,635,472			—			—			—			—
	4,883,273			2,712			2,679			67,931			771,603
	407,876,502			56,034,069			37,375,199			11,035,170			30,347,491
	5,553			—			—			—			—
$	453,944,701		$	56,277,247		$	37,462,645		$	16,250,519		$	38,193,489
	3,718,822			23,519			8,618			480,616			640,021
	153,651			—			—			—			—
	458,544			266			273			6,341			69,790
	38,337,122			5,482,090			3,797,807			1,031,829			2,741,361
	525			—			—			—			—
	42,668,664			5,505,875			3,806,698			1,518,786			3,451,172
$	10.63		$	10.22		$	9.84		$	10.71		$	11.05
$	10.64		$	—		$	—		$	—		$	—
$	10.65		$	10.21	**	$	9.83	**	$	10.71		$	11.06
$	10.64		$	10.22		$	9.84		$	10.69		$	11.07
$	10.59	***	$	—		$	—		$	—		$	—
	5.75	%		2.00	%		2.00	%		2.00	%		2.00	%
$	11.28		$	10.43		$	10.04		$	10.93		$	11.28
$	445,623,312		$	54,648,447		$	37,344,429		$	15,129,039		$	36,776,499

61

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2014 (Unaudited)

	Sterling Capital North Carolina Intermediate Tax-Free Fund			Sterling Capital South Carolina Intermediate Tax-Free Fund
Assets:
Investments at fair value - unaffiliated (a)	$	200,712,645		$	67,669,408
Investments at fair value - affiliated (b)		—			—
Interest and dividends receivable - unaffiliated		2,780,808			851,566
Dividends receivable - affiliated		—			—
Receivable for capital shares issued		746,153			296,717
Prepaid and other expenses		5,528			3,747
Total Assets		204,245,134			68,821,438
Liabilities:
Distributions payable		302,892			78,662
Payable for capital shares redeemed		566,956			98,723
Accrued expenses and other payables:
Investment advisory fees		78,157			25,901
Administration fees		16,167			5,359
Audit fees		12,707			4,183
Distribution (12b-1) fees		13,603			5,220
Trustee fees		156			112
Transfer agent fees		10,273			3,672
Other fees		14,489			5,743
Total Liabilities		1,015,400			227,575
Net Assets	$	203,229,734		$	68,593,863
Net Assets Consist of:
Capital	$	195,142,860		$	66,958,490
Undistributed (distributions in excess of) net investment income		83,048			9,206
Accumulated realized gain (loss)		(230,685	)		(160,764	)
Net unrealized appreciation (depreciation)		8,234,511			1,786,931
Net Assets	$	203,229,734		$	68,593,863
Net Assets
Class A Shares	$	49,293,024		$	18,863,153
Class B Shares		—			—
Class C Shares		3,410,369			1,466,147
Institutional Shares		150,526,341			48,264,563
Total	$	203,229,734		$	68,593,863
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares		4,554,840			1,725,533
Class B Shares		—			—
Class C Shares		315,366			134,140
Institutional Shares		13,909,862			4,444,952
Total		18,780,068			6,304,625
Net Asset Value
Class A Shares - redemption price per share	$	10.82		$	10.93
Class B Shares - offering price per share*	$	—		$	—
Class C Shares - offering price per share*	$	10.81		$	10.93
Institutional Shares	$	10.82		$	10.86
Maximum Sales Charge - Class A Shares		2.00	%		2.00	%
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares	$	11.04		$	11.15
Investments at cost:
(a) Investments at cost - unaffiliated	$	192,478,134		$	65,882,477
(b) Investments at cost - affiliated	$	—		$	—

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

See accompanying Notes to the Financial Statements.

62

Sterling Capital Virginia Intermediate Tax-Free Fund			Sterling Capital West Virginia Intermediate Tax-Free Fund			Sterling Capital Strategic Allocation Conservative Fund			Sterling Capital Strategic Allocation Balanced Fund			Sterling Capital Strategic Allocation Growth Fund
$	121,317,556		$	104,592,046		$	401,708		$	797,379		$	566,826
	—			—			18,521,346			36,047,059			27,012,774
	1,327,365			1,452,832			4			5			4
	—			—			38,395			49,274			22,168
	187,851			432,126			18,900			19,510			987
	5,854			4,024			6,133			5,631			5,055
	122,838,626			106,481,028			18,986,486			36,918,858			27,607,814
	155,536			139,921			16,374			2,661			904
	114,411			799,382			—			16,962			—
	47,209			40,483			—			—			—
	9,766			8,374			—			—			—
	7,581			6,379			1,095			2,078			1,549
	11,123			8,296			4,272			9,758			7,488
	135			100			—			161			121
	5,953			4,670			729			1,663			1,292
	8,717			7,395			—			184			—
	360,431			1,015,000			22,470			33,467			11,354
$	122,478,195		$	105,466,028		$	18,964,016		$	36,885,391		$	27,596,460
$	117,790,092		$	102,470,076		$	24,167,675		$	41,944,718		$	35,065,127
	62,563			(12,638	)		38,093			(51,996	)		(43,989	)
	(86,925	)		82,343			(6,594,756	)		(8,100,113	)		(10,064,786	)
	4,712,465			2,926,247			1,353,004			3,092,782			2,640,108
$	122,478,195		$	105,466,028		$	18,964,016		$	36,885,391		$	27,596,460
$	44,519,665		$	36,257,660		$	15,459,826		$	33,519,887		$	23,917,796
	—			—			899,814			2,510,745			2,380,814
	1,878,859			708,522			307,101			600,614			480,414
	76,079,671			68,499,846			2,297,275			254,145			817,436
$	122,478,195		$	105,466,028		$	18,964,016		$	36,885,391		$	27,596,460
	3,746,765			3,630,470			1,485,229			3,238,697			2,385,937
	—			—			86,276			247,557			243,443
	158,161			70,938			29,685			59,065			49,318
	6,404,674			6,851,143			218,406			24,388			81,361
	10,309,600			10,552,551			1,819,596			3,569,707			2,760,059
$	11.88		$	9.99		$	10.41		$	10.35		$	10.02
$	—		$	—		$	10.43		$	10.14		$	9.78
$	11.88		$	9.99		$	10.35		$	10.17		$	9.74
$	11.88		$	10.00		$	10.52		$	10.42		$	10.05
	2.00	%		2.00	%		5.75	%		5.75	%		5.75	%
$	12.12		$	10.19		$	11.05		$	10.98		$	10.63
$	116,605,091		$	101,665,799		$	401,708		$	797,379		$	566,826
$	—		$	—		$	17,168,342		$	32,954,277		$	24,372,666

63

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2014 (Unaudited)

	Sterling Capital Large Cap Value Diversified Fund			Sterling Capital Mid Value Fund
Investment Income:
Interest income	$	—		$	—
Dividend income		2,648,356			4,954,481
Foreign tax withholding		—			(35	)
Total investment income		2,648,356			4,954,446
Expenses:
Investment advisory fees (See Note 5)		851,982			2,366,701
Administration fees (See Note 5)		114,036			316,709
Distribution fees - Class A Shares		38,810			54,269
Distribution fees - Class B Shares		6,231			9,463
Distribution fees - Class C Shares		1,378			12,425
Distribution fees - Class R Shares		—			—
Trustee fees		11,223			29,595
Accounting out-of-pocket fees		4,301			6,470
Audit fees		10,378			27,451
Custodian fees		5,875			15,489
Fund accounting fees (See Note 5)		9,128			25,357
Legal fees		10,776			27,837
Offering costs		—			—
Printing fees		12,712			31,086
Transfer agent fees (See Note 5)		45,797			174,085
Other fees		25,618			44,992
Total expenses excluding dividend expense and service fee on securities sold short		1,148,245			3,141,929
Dividend expense		—			—
Service fee on securities sold short		—			—
Total expenses before waivers		1,148,245			3,141,929
Less expenses waived by the Investment Advisor (See Note 5)		(121,712	)		—
Net expenses		1,026,533			3,141,929
Net investment income (loss)		1,621,823			1,812,517
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments		14,511,278			22,107,710
Written options		—			—
Foreign currency transactions		—			—
Short sales		—			—
Change in unrealized appreciation/depreciation on:
Investments		21,727,544			38,385,980
Written options		—			—
Foreign currency transactions		—			—
Short sales		—			—
Total realized and unrealized gain		36,238,822			60,493,690
Change in net assets from operations	$	37,860,645		$	62,306,207

* Commencement of operations was December 13, 2013.

See accompanying Notes to the Financial Statements.

64

Sterling Capital Small Cap Value Diversified Fund			Sterling Capital Special Opportunities Fund			Sterling Capital Equity Income Fund			Sterling Capital Long/Short Equity Fund*			Sterling Capital Ultra Short Bond Fund
$	—		$	—		$	—		$	58,603		$	316,103
	1,171,714			4,907,810			30,740,940			268,917			19,737
	(1,409	)		(94,964	)		(574,643	)		(5,248	)		—
	1,170,305			4,812,846			30,166,297			322,272			335,840
	479,657			3,287,139			7,029,873			257,347			56,241
	59,919			410,646			941,120			16,004			26,351
	12,175			366,704			898,389			133			20,500
	2,057			43,170			49,047			—			—
	1,381			504,234			1,496,616			11			—
	—			1,194			7,504			—			—
	5,799			40,561			94,224			1,311			2,474
	6,243			8,836			17,145			6,714			13,737
	5,348			37,435			86,950			1,595			2,400
	3,102			21,065			48,942			1,120			1,427
	4,796			32,871			75,323			8,256			2,109
	5,531			38,793			88,874			1,378			2,455
	—			—			—			938			2,001
	6,094			42,782			99,488			1,763			2,699
	29,407			218,065			910,721			6,153			9,602
	23,636			52,800			108,655			3,257			7,158
	645,145			5,106,295			11,952,871			305,980			149,154
	—			—			—			94,961			—
	—			—			—			133,603			—
	645,145			5,106,295			11,952,871			534,544			149,154
	—			—			—			—			—
	645,145			5,106,295			11,952,871			534,544			149,154
	525,160			(293,449	)		18,213,426			(212,272	)		186,686
	2,150,397			17,580,391			21,138,579			2,233,116			(26,108	)
	—			536,005			(133,875	)		—			—
	—			—			—			920			—
	—			—			—			98,739			—
	11,939,670			92,504,832			92,256,979			2,863,801			27,349
	—			(191,257	)		225,481			—			—
	—			—			—			3			—
	—			—			—			(458,756	)		—
	14,090,067			110,429,971			113,487,164			4,737,823			1,241
$	14,615,227		$	110,136,522		$	131,700,590		$	4,525,551		$	187,927

65

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2014 (Unaudited)

	Sterling Capital Short Duration Bond Fund			Sterling Capital Intermediate U.S. Government Fund
Investment Income:
Interest income	$	911,794		$	537,838
Dividend income		17,524			32
Total investment income		929,318			537,870
Expenses:
Investment advisory fees (See Note 5)		124,681			99,406
Administration fees (See Note 5)		38,939			21,680
Distribution fees - Class A Shares		16,075			12,357
Distribution fees - Class B Shares		—			2,361
Distribution fees - Class C Shares		2,895			4,579
Distribution fees - Class R Shares		—			—
Trustee fees		3,783			2,423
Accounting out-of-pocket fees		13,050			4,209
Audit fees		3,495			2,154
Custodian fees		2,067			1,328
Fund accounting fees (See Note 5)		3,117			1,734
Legal fees		3,591			2,569
Printing fees		4,360			2,505
Transfer agent fees (See Note 5)		16,159			11,833
Other fees		7,859			8,448
Total expenses before waivers		240,071			177,586
Less expenses waived by the Investment Advisor (See Note 5)		(16,564	)		—
Net expenses		223,507			177,586
Net investment income		705,811			360,284
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from investments		(3,596	)		518,325
Change in unrealized appreciation/depreciation on investments		162,990			(335,174	)
Total realized and unrealized gain		159,394			183,151
Change in net assets from operations	$	865,205		$	543,435

See accompanying Notes to the Financial Statements.

66

Sterling Capital Total Return Bond Fund			Sterling Capital Corporate Fund		Sterling Capital Securitized Opportunities Fund			Sterling Capital Kentucky Intermediate Tax-Free Fund			Sterling Capital Maryland Intermediate Tax-Free Fund
$	8,552,029		$	1,369,353	$	630,119		$	296,858		$	543,675
	302,540			89,039		110			28			93
	8,854,569			1,458,392		630,229			296,886			543,768
	859,675			130,474		73,456			38,731			93,027
	217,788			34,955		19,686			8,067			19,378
	50,958			226		64			6,918			9,431
	9,048			—		—			—			—
	25,706			44		13			337			5,009
	13			—		—			—			—
	22,822			3,433		2,237			834			1,984
	27,389			10,403		12,567			4,926			6,418
	20,819			3,243		1,957			765			1,802
	11,882			1,959		1,208			505			1,121
	17,426			2,796		1,574			645			1,550
	22,642			3,680		2,444			840			1,992
	23,911			3,764		2,478			878			2,082
	93,899			14,556		9,180			3,481			9,243
	28,865			8,042		7,231			2,206			4,886
	1,432,843			217,575		134,095			69,133			157,923
	(47,764	)		—		(2,410	)		—			—
	1,385,079			217,575		131,685			69,133			157,923
	7,469,490			1,240,817		498,544			227,753			385,845
	572,630			75,610		(102,357	)		127,382			121,998
	6,091,882			1,299,661		243,871			(55,673	)		237,914
	6,664,512			1,375,271		141,514			71,709			359,912
$	14,134,002		$	2,616,088	$	640,058		$	299,462		$	745,757
									��

67

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2014 (Unaudited)

	Sterling Capital North Carolina Intermediate Tax-Free Fund		Sterling Capital South Carolina Intermediate Tax-Free Fund
Investment Income:
Interest income	$	3,351,332	$	1,011,201
Dividend income - unaffiliated		364		134
Dividend income - affiliated		—		—
Total investment income		3,351,696		1,011,335
Expenses:
Investment advisory fees (See Note 5)		474,366		153,092
Administration fees (See Note 5)		98,801		31,886
Distribution fees - Class A Shares		65,821		24,473
Distribution fees - Class B Shares		—		—
Distribution fees - Class C Shares		20,552		5,219
Trustee fees		10,019		3,273
Accounting out-of-pocket fees		14,414		9,020
Audit fees		9,132		2,992
Custodian fees		5,358		1,781
Fund accounting fees (See Note 5)		7,906		2,552
Legal fees		10,058		3,249
Printing fees		10,522		3,455
Registration fees		1,624		2,175
Transfer agent fees (See Note 5)		44,584		14,814
Other fees		7,887		3,029
Total expenses before waivers		781,044		261,010
Less expenses waived by the Investment Advisor (See Note 5)		—		—
Net expenses		781,044		261,010
Net investment income		2,570,652		750,325
Realized and Unrealized Gain (Loss):
Net realized gain from:
Investment transactions - unaffiliated		439,691		44,439
Investment transactions - affiliated		—		—
Distributions from affiliated funds		—		—
Change in unrealized appreciation/depreciation on investments		1,088,138		422,606
Total realized and unrealized gain		1,527,829		467,045
Change in net assets from operations	$	4,098,481	$	1,217,370

See accompanying Notes to the Financial Statements.

68

Sterling Capital Virginia Intermediate Tax-Free Fund		Sterling Capital West Virginia Intermediate Tax-Free Fund		Sterling Capital Strategic Allocation Conservative Fund			Sterling Capital Strategic Allocation Balanced Fund			Sterling Capital Strategic Allocation Growth Fund
$	1,889,729	$	1,633,697	$	—		$	—		$	—
	130		225		20			34			25
	—		—		251,327			394,750			241,640
	1,889,859		1,633,922		251,347			394,784			241,665
	284,534		237,979		23,181			44,914			33,574
	59,264		49,562		—			—			—
	56,598		45,609		18,642			40,136			28,522
	—		—		4,844			14,695			13,725
	11,833		3,770		1,286			3,022			2,339
	6,035		5,004		893			1,678			1,259
	10,310		8,634		1,329			1,476			1,392
	5,503		4,577		802			1,551			1,162
	3,257		2,684		565			938			720
	4,742		3,967		695			1,347			1,007
	6,023		4,960		877			1,624			1,221
	6,341		5,232		924			1,766			1,328
	3,057		5,701		3,916			5,075			4,955
	25,587		20,541		4,758			7,425			5,626
	4,996		4,261		1,601			2,130			1,843
	488,080		402,481		64,313			127,777			98,673
	—		—		(23,181	)		(44,914	)		(33,574	)
	488,080		402,481		41,132			82,863			65,099
	1,401,779		1,231,441		210,215			311,921			176,566
	476,097		89,374		—			681			105
	—		—		48,229			97,460			93,783
	—		—		489,396			1,429,117			1,332,884
	462,109		773,108		275,301			620,593			504,570
	938,206		862,482		812,926			2,147,851			1,931,342
$	2,339,985	$	2,093,923	$	1,023,141		$	2,459,772		$	2,107,908

69

Sterling Capital Funds

Statements of Changes in Net Assets

	Sterling Capital Large Cap Value Diversified Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
From Investment Activities:
Operations:
Net investment income (loss)	$	1,621,823		$	2,649,103
Net realized gain		14,511,278			53,148,502
Change in unrealized appreciation/depreciation		21,727,544			(30,764,619	)
Change in net assets from operations		37,860,645			25,032,986
Distributions to Class A Shareholders From:
Net investment income		(180,756	)		(273,192	)
Net realized gains		—			—
Distributions to Class B Shareholders From:
Net investment income		(2,380	)		(3,413	)
Net realized gains		—			—
Distributions to Class C Shareholders From:
Net investment income		(1,067	)		(468	)
Net realized gains		—			—
Distributions to Institutional Class Shareholders From:
Net investment income		(1,468,802	)		(2,350,357	)
Net realized gains		—			—
Distributions to Class R Shareholders From:
Net investment income		—			—
Net realized gains		—			—
Change in net assets from shareholder distributions		(1,653,005	)		(2,627,430	)
Capital Transactions:
Change in net assets from capital transactions		(776,580	)		(17,015,985	)
Change in net assets		35,431,060			5,389,571
Net Assets:
Beginning of period		225,063,900			219,674,329
End of period	$	260,494,960		$	225,063,900
Undistributed (distributions in excess of) net investment income (loss)	$	117,756		$	148,938

See accompanying Notes to the Financial Statements.

70

Sterling Capital Mid Value Fund						Sterling Capital Small Cap Value Diversified Fund						Sterling Capital Special Opportunities Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	1,812,517		$	4,330,655		$	525,160		$	536,139		$	(293,449	)	$	2,315,936
	22,107,710			44,691,877			2,150,397			17,566,790			18,116,396			83,744,906
	38,385,980			71,663,696			11,939,670			4,942,679			92,313,575			55,754,523
	62,306,207			120,686,228			14,615,227			23,045,608			110,136,522			141,815,365
	(140,745	)		(161,440	)		(55,055	)		(14,357	)		(207,260	)		(54,587	)
	(2,605,938	)		—			(1,093,905	)		(79,193	)		(29,265,628	)		(8,583,850	)
	—			(3,710	)		(1,606	)		—			—			—
	(123,396	)		—			(49,225	)		(5,235	)		(960,978	)		(643,747	)
	(2,748	)		(1,160	)		(1,190	)		—			—			—
	(141,366	)		—			(30,133	)		(1,544	)		(11,071,485	)		(4,427,390	)
	(2,646,984	)		(2,997,558	)		(753,496	)		(375,644	)		(969,508	)		(1,115,681	)
	(36,008,422	)		—			(13,333,662	)		(872,669	)		(46,533,186	)		(18,269,580	)
	(1	)		(1	)		(1	)		(1	)		—			—
	(11	)		—			(20	)		(1	)		(47,139	)		(17,945	)
	(41,669,611	)		(3,163,869	)		(15,318,293	)		(1,348,644	)		(89,055,184	)		(33,112,780	)
	131,316,848			105,419,733			26,236,827			10,785,032			95,679,251			60,853,963
	151,953,444			222,942,092			25,533,761			32,481,996			116,760,589			169,556,548
	588,029,064			365,086,972			111,452,695			78,970,699			825,544,360			655,987,812
$	739,982,508		$	588,029,064		$	136,986,456		$	111,452,695		$	942,304,949		$	825,544,360
$	555,603		$	1,533,564		$	(147,987	)	$	138,201		$	(293,531	)	$	1,176,686

71

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
From Investment Activities:
Operations:
Net investment income (loss)	$	18,213,426		$	25,475,523
Net realized gain (loss)		21,004,704			66,675,410
Change in unrealized appreciation/depreciation		92,482,460			115,343,228
Change in net assets from operations		131,700,590			207,494,161
Distributions to Class A Shareholders From:
Net investment income		(6,453,184	)		(7,241,498	)
Net realized gains		(24,139,541	)		(3,938,641	)
Distributions to Class B Shareholders From:
Net investment income		(47,159	)		(78,258	)
Net realized gains		(332,882	)		(121,503	)
Distributions to Class C Shareholders From:
Net investment income		(1,664,187	)		(1,774,142	)
Net realized gains		(10,047,039	)		(2,047,025	)
Distributions to Institutional Class Shareholders From:
Net investment income		(9,770,751	)		(13,466,586	)
Net realized gains		(32,827,700	)		(6,452,928	)
Distributions to Class R Shareholders From:
Net investment income		(23,454	)		(25,171	)
Net realized gains		(102,702	)		(12,837	)
Change in net assets from shareholder distributions		(85,408,599	)		(35,158,589	)
Capital Transactions:
Change in net assets from capital transactions		45,713,445			532,656,895
Change in net assets		92,005,436			704,992,467
Net Assets:
Beginning of period		1,920,463,766			1,215,471,299
End of period	$	2,012,469,202		$	1,920,463,766
Undistributed (distributions in excess of) net investment income (loss)	$	1,430,683		$	1,175,992

* Commencement of operations.

See accompanying Notes to the Financial Statements.

72

Sterling Capital Long/Short Equity Fund			Sterling Capital Ultra Short Bond Fund						Sterling Capital Short Duration Bond Fund						Sterling Capital Intermediate U.S. Government Fund
For the Period December 13, 2013* to March 31, 2014 (Unaudited)			For the Six Months Ended March 31, 2014 (Unaudited)			For the Period November 30, 2012* to September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	(212,272	)	$	186,686		$	210,293		$	705,811		$	1,364,128		$	360,284		$	1,298,799
	2,332,775			(26,108	)		(3,406	)		(3,596	)		344,743			518,325			1,460,094
	2,405,048			27,349			(95,913	)		162,990			(1,151,061	)		(335,174	)		(4,584,101	)
	4,525,551			187,927			110,974			865,205			557,810			543,435			(1,825,208	)
	—			(51,853	)		(31,876	)		(190,653	)		(388,539	)		(157,147	)		(338,378	)
	—			—			—			—			—			—			—
	—			—			—			—			—			(5,712	)		(15,323	)
	—			—			—			—			—			—			—
	—			—			—			(6,474	)		(8,152	)		(11,086	)		(22,496	)
	—			—			—			—			—			—			—
	—			(176,892	)		(187,443	)		(1,124,742	)		(1,874,061	)		(596,436	)		(1,929,090	)
	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
	—			(228,745	)		(219,319	)		(1,321,869	)		(2,270,752	)		(770,381	)		(2,305,287	)
	77,435,083			3,128,854			54,260,046			10,052,939			21,779,293			(18,936,762	)		(29,640,056	)
	81,960,634			3,088,036			54,151,701			9,596,275			20,066,351			(19,163,708	)		(33,770,551	)
	—			54,151,701			—			76,482,365			56,416,014			58,470,681			92,241,232
$	81,960,634		$	57,239,737		$	54,151,701		$	86,078,640		$	76,482,365		$	39,306,973		$	58,470,681
$	(212,272	)	$	(31,585	)	$	10,474		$	(632,318	)	$	(16,260	)	$	245,202		$	655,299

73

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital Total Return Bond Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
From Investment Activities:
Operations:
Net investment income	$	7,469,490		$	15,851,129
Net realized gain (loss)		572,630			(100,158	)
Change in unrealized appreciation/depreciation		6,091,882			(23,167,353	)
Change in net assets from operations		14,134,002			(7,416,382	)
Distributions to Class A Shareholders From:
Net investment income		(748,219	)		(1,737,457	)
Net realized gains		(33,246	)		(385,353	)
Distributions to Class B Shareholders From:
Net investment income		(26,395	)		(71,392	)
Net realized gains		(1,493	)		(22,718	)
Distributions to Class C Shareholders From:
Net investment income		(75,194	)		(177,585	)
Net realized gains		(4,242	)		(55,269	)
Distributions to Institutional Class Shareholders From:
Net investment income		(8,176,399	)		(18,470,970	)
Net realized gains		(333,852	)		(3,851,849	)
Distributions to Class R Shareholders From:
Net investment income		(94	)		(177	)
Net realized gains		(4	)		(42	)
Change in net assets from shareholder distributions		(9,399,138	)		(24,772,812	)
Capital Transactions:
Change in net assets from capital transactions		(37,515,589	)		(54,498,804	)
Change in net assets		(32,780,725	)		(86,687,998	)
Net Assets:
Beginning of period		486,725,426			573,413,424
End of period	$	453,944,701		$	486,725,426
Undistributed (distributions in excess of) net investment income	$	(791,044	)	$	765,767

See accompanying Notes to the Financial Statements.

74

Sterling Capital Corporate Fund						Sterling Capital Securitized Opportunities Fund						Sterling Capital Kentucky Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	1,240,817		$	3,460,305		$	498,544		$	1,700,540		$	227,753		$	584,961
	75,610			441,685			(102,357	)		(563,438	)		127,382			(9,823	)
	1,299,661			(4,499,342	)		243,871			(1,687,559	)		(55,673	)		(1,034,032	)
	2,616,088			(597,352	)		640,058			(550,457	)		299,462			(458,894	)
	(2,780	)		(2,181	)		(725	)		(503	)		(68,411	)		(230,512	)
	(1,774	)		—			—			—			—			(59,631	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	(106	)		(90	)		(30	)		(45	)		(579	)		(3,718	)
	(152	)		—			—			—			—			(1,452	)
	(1,238,551	)		(3,458,034	)		(657,312	)		(2,476,396	)		(157,897	)		(349,035	)
	(788,915	)		(1,020,381	)		—			—			—			(78,818	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	(2,032,278	)		(4,480,686	)		(658,067	)		(2,476,944	)		(226,887	)		(723,166	)
	(30,090,755	)		(2,084,076	)		(21,063,053	)		(26,951,669	)		(1,597,056	)		(6,766,426	)
	(29,506,945	)		(7,162,114	)		(21,081,062	)		(29,979,070	)		(1,524,481	)		(7,948,486	)
	85,784,192			92,946,306			58,543,707			88,522,777			17,775,000			25,723,486
$	56,277,247		$	85,784,192		$	37,462,645		$	58,543,707		$	16,250,519		$	17,775,000
$	(60,651	)	$	(60,031	)	$	(153,326	)	$	6,197		$	3,324		$	2,458

75

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital Maryland Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
From Investment Activities:
Operations:
Net investment income	$	385,845		$	878,708
Net realized gain (loss)		121,998			(118,683	)
Change in unrealized appreciation/depreciation		237,914			(1,946,782	)
Change in net assets from operations		745,757			(1,186,757	)
Distributions to Class A Shareholders From:
Net investment income		(63,433	)		(156,484	)
Net realized gains		—			(119,442	)
Distributions to Class C Shareholders From:
Net investment income		(4,699	)		(14,785	)
Net realized gains		—			(22,173	)
Distributions to Institutional Class Shareholders From:
Net investment income		(316,744	)		(705,517	)
Net realized gains		—			(453,539	)
Change in net assets from shareholder distributions		(384,876	)		(1,471,940	)
Capital Transactions:
Change in net assets from capital transactions		(5,983,039	)		1,301,297
Change in net assets		(5,622,158	)		(1,357,400	)
Net Assets:
Beginning of period		43,815,647			45,173,047
End of period	$	38,193,489		$	43,815,647
Undistributed net investment income	$	4,617		$	3,648

See accompanying Notes to the Financial Statements.

76

Sterling Capital North Carolina Intermediate Tax-Free Fund						Sterling Capital South Carolina Intermediate Tax-Free Fund						Sterling Capital Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	2,570,652		$	6,002,032		$	750,325		$	1,663,539		$	1,401,779		$	3,084,944
	439,691			(692,531	)		44,439			(218,607	)		476,097			(420,926	)
	1,088,138			(11,475,550	)		422,606			(3,084,794	)		462,109			(6,393,589	)
	4,098,481			(6,166,049	)		1,217,370			(1,639,862	)		2,339,985			(3,729,571	)
	(597,268	)		(1,416,684	)		(199,490	)		(461,688	)		(470,051	)		(1,004,673	)
	—			(459,916	)		—			(180,619	)		—			(438,802	)
	(31,453	)		(76,417	)		(6,563	)		(9,696	)		(15,841	)		(38,241	)
	—			(38,065	)		—			(3,997	)		—			(27,453	)
	(1,938,676	)		(4,501,480	)		(542,147	)		(1,187,346	)		(915,887	)		(2,033,426	)
	—			(1,369,438	)		—			(404,480	)		—			(789,514	)
	(2,567,397	)		(7,862,000	)		(748,200	)		(2,247,826	)		(1,401,779	)		(4,332,109	)
	(17,531,883	)		(25,591,152	)		(3,682,344	)		264,958			(9,466,521	)		(6,420,982	)
	(16,000,799	)		(39,619,201	)		(3,213,174	)		(3,622,730	)		(8,528,315	)		(14,482,662	)
	219,230,533			258,849,734			71,807,037			75,429,767			131,006,510			145,489,172
$	203,229,734		$	219,230,533		$	68,593,863		$	71,807,037		$	122,478,195		$	131,006,510
$	83,048		$	79,793		$	9,206		$	7,081		$	62,563		$	62,563

77

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital West Virginia Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
From Investment Activities:
Operations:
Net investment income	$	1,231,441		$	2,748,241
Net realized gain (loss)		89,374			(73,273	)
Change in unrealized appreciation/depreciation		773,108			(5,529,269	)
Change in net assets from operations		2,093,923			(2,854,301	)
Distributions to Class A Shareholders From:
Net investment income		(393,193	)		(865,043	)
Net realized gains		—			(471,436	)
Distributions to Class B Shareholders From:
Net investment income		—			—
Distributions to Class C Shareholders From:
Net investment income		(5,295	)		(11,386	)
Net realized gains		—			(9,918	)
Distributions to Institutional Class Shareholders From:
Net investment income		(823,800	)		(1,855,804	)
Net realized gains		—			(976,219	)
Change in net assets from shareholder distributions		(1,222,288	)		(4,189,806	)
Capital Transactions:
Change in net assets from capital transactions		(2,370,784	)		(11,863,793	)
Change in net assets		(1,499,149	)		(18,907,900	)
Net Assets:
Beginning of period		106,965,177			125,873,077
End of period	$	105,466,028		$	106,965,177
Undistributed (distributions in excess of) net investment income	$	(12,638	)	$	(21,791	)

See accompanying Notes to the Financial Statements.

78

Sterling Capital Strategic Allocation Conservative Fund						Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	210,215		$	412,032		$	311,921		$	545,671		$	176,566		$	284,997
	537,625			2,163,482			1,527,258			5,397,980			1,426,772			4,659,265
	275,301			(1,608,299	)		620,593			(3,072,799	)		504,570			(2,182,982	)
	1,023,141			967,215			2,459,772			2,870,852			2,107,908			2,761,280
	(148,808	)		(340,142	)		(355,416	)		(522,016	)		(205,181	)		(265,940	)
	—			—			—			—			—			—
	(6,242	)		(17,973	)		(18,769	)		(42,929	)		(13,038	)		(22,463	)
	(2,270	)		(3,820	)		(4,308	)		(5,023	)		(2,625	)		(2,250	)
	—			—			—			—			—			—
	(24,487	)		(83,023	)		(3,245	)		(5,684	)		(7,942	)		(12,353	)
	—			—			—			—			—			—
	(181,807	)		(444,958	)		(381,738	)		(575,652	)		(228,786	)		(303,006	)
	(672,878	)		(380,849	)		15,350			(1,954,538	)		(560,572	)		(584,575	)
	168,456			141,408			2,093,384			340,662			1,318,550			1,873,699
	18,795,560			18,654,152			34,792,007			34,451,345			26,277,910			24,404,211
$	18,964,016		$	18,795,560		$	36,885,391		$	34,792,007		$	27,596,460		$	26,277,910
$	38,093		$	9,685		$	(51,996	)	$	17,821		$	(43,989	)	$	8,231

79

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital Large Cap Value Diversified Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	1,493,717		$	1,335,415
Distributions reinvested		176,596			267,423
Value of shares redeemed		(1,420,183	)		(4,376,463	)
Change in net assets from Class A Share transactions		250,130			(2,773,625	)
Class B Shares:
Proceeds from shares issued		—			13,477
Distributions reinvested		2,357			3,388
Value of shares redeemed		(291,499	)		(532,727	)
Change in net assets from Class B Share transactions		(289,142	)		(515,862	)
Class C Shares:
Proceeds from shares issued		203,470			18,235
Distributions reinvested		950			449
Value of shares redeemed		(43,450	)		(5,120	)
Change in net assets from Class C Share transactions		160,970			13,564
Institutional Shares:
Proceeds from shares issued		8,202,231			20,881,987
Distributions reinvested		1,464,008			2,270,583
Value of shares redeemed		(10,564,777	)		(36,892,632	)
Change in net assets from Institutional Share transactions		(898,538	)		(13,740,062	)
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	$	(776,580	)	$	(17,015,985	)
Share Transactions:
Class A Shares:
Issued		94,983			100,801
Reinvested		11,123			20,402
Redeemed		(92,147	)		(330,937	)
Change in Class A Shares		13,959			(209,734	)
Class B Shares:
Issued		—			1,056
Reinvested		152			279
Redeemed		(19,054	)		(40,913	)
Change in Class B Shares		(18,902	)		(39,578	)
Class C Shares:
Issued		13,355			1,404
Reinvested		62			37
Redeemed		(2,791	)		(419	)
Change in Class C Shares		10,626			1,022
Institutional Shares:
Issued		521,797			1,587,354
Reinvested		91,680			171,562
Redeemed		(681,163	)		(2,771,181	)
Change in Institutional Shares		(67,686	)		(1,012,265	)
Class R Shares:
Issued		—			—
Reinvested		—			—
Redeemed		—			—
Change in Class R Shares		—			—
Change in Shares		(62,003	)		(1,260,555	)

(a) Fractional share.

See accompanying Notes to the Financial Statements.

80

Sterling Capital Mid Value Fund						Sterling Capital Small Cap Value Diversified Fund						Sterling Capital Special Opportunities Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	12,246,600		$	12,852,239		$	1,883,425		$	1,398,154		$	42,960,185		$	100,921,179
	2,397,811			150,879			1,063,260			87,563			28,608,304			8,067,659
	(6,101,429	)		(5,977,270	)		(593,505	)		(1,191,239	)		(25,428,233	)		(47,899,191	)
	8,542,982			7,025,848			2,353,180			294,478			46,140,256			61,089,647
	23,922			75,278			10,318			40,146			101,649			137,802
	123,157			3,706			50,831			5,235			948,880			630,334
	(526,120	)		(616,627	)		(91,104	)		(154,601	)		(1,638,753	)		(5,678,864	)
	(379,041	)		(537,643	)		(29,955	)		(109,220	)		(588,224	)		(4,910,728	)
	2,473,546			736,464			115,714			92,214			5,527,766			9,232,219
	105,926			1,068			27,810			1,544			10,521,960			4,202,670
	(279,006	)		(162,004	)		(6,710	)		(24,476	)		(4,939,604	)		(13,102,889	)
	2,300,466			575,528			136,814			69,282			11,110,122			332,000
	157,340,705			184,105,102			24,874,416			30,713,585			30,943,236			83,434,468
	35,681,479			2,534,584			13,982,036			1,225,136			40,817,740			15,960,250
	(72,169,755	)		(88,281,889	)		(15,079,686	)		(21,408,231	)		(32,790,429	)		(95,084,481	)
	120,852,429			98,357,797			23,776,766			10,530,490			38,970,547			4,310,237
	—			32,499			—			—			—			15,102
	12			1			22			2			46,550			17,705
	—			(34,297	)		—			—			—			—
	12			(1,797	)		22			2			46,550			32,807
$	131,316,848		$	105,419,733		$	26,236,827		$	10,785,032		$	95,679,251		$	60,853,963
	637,122			737,714			128,116			100,754			2,037,560			5,199,387
	129,239			9,725			75,057			7,069			1,439,506			446,028
	(320,437	)		(364,244	)		(39,347	)		(89,179	)		(1,223,464	)		(2,455,453	)
	445,924			383,195			163,826			18,644			2,253,602			3,189,962
	1,323			4,564			731			3,126			5,388			7,776
	7,066			279			3,695			442			52,951			37,926
	(28,961	)		(39,448	)		(6,174	)		(11,649	)		(84,515	)		(317,696	)
	(20,572	)		(34,605	)		(1,748	)		(8,081	)		(26,176	)		(271,994	)
	137,836			43,775			7,956			6,924			286,968			511,173
	6,086			80			2,022			131			586,508			252,716
	(15,509	)		(9,793	)		(457	)		(1,685	)		(255,356	)		(739,623	)
	128,413			34,062			9,521			5,370			618,120			24,266
	8,176,992			10,518,638			1,643,045			2,180,707			1,405,894			4,179,558
	1,906,275			161,415			979,897			95,678			1,993,050			859,634
	(3,732,795	)		(5,372,186	)		(999,735	)		(1,562,333	)		(1,495,264	)		(4,802,874	)
	6,350,472			5,307,867			1,623,207			714,052			1,903,680			236,318
	—			2,003			—			—			—			784
	1			—	(a)		1			1			2,304			962
	—			(2,003	)		—			—			—			—
	1			—	(a)		1			1			2,304			1,746
	6,904,238			5,690,519			1,794,807			729,986			4,751,530			3,180,298

81

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	101,813,077		$	377,326,270
Distributions reinvested		28,535,280			9,912,707
Value of shares redeemed		(107,942,910	)		(119,758,060	)
Change in net assets from Class A Share transactions		22,405,447			267,480,917
Class B Shares:
Proceeds from shares issued		14,842			711,264
Distributions reinvested		372,145			193,008
Value of shares redeemed		(1,901,354	)		(4,710,846	)
Change in net assets from Class B Share transactions		(1,514,367	)		(3,806,574	)
Class C Shares:
Proceeds from shares issued		29,960,748			77,272,776
Distributions reinvested		10,975,610			3,556,067
Value of shares redeemed		(17,935,744	)		(22,327,127	)
Change in net assets from Class C Share transactions		23,000,614			58,501,716
Institutional Shares:
Proceeds from shares issued		160,685,508			386,071,912
Distributions reinvested		36,512,559			16,136,422
Value of shares redeemed		(195,641,949	)		(192,840,624	)
Change in net assets from Institutional Share transactions		1,556,118			209,367,710
Class R Shares:
Proceeds from shares issued		438,510			1,926,718
Distributions reinvested		121,302			33,347
Value of shares redeemed		(294,179	)		(846,939	)
Change in net assets from Class R Share transactions		265,633			1,113,126
Change in net assets from capital transactions	$	45,713,445		$	532,656,895
Share Transactions:
Class A Shares:
Issued		5,527,150			21,232,193
Reinvested		1,558,364			590,857
Redeemed		(5,871,623	)		(6,963,375	)
Change in Class A Shares		1,213,891			14,859,675
Class B Shares:
Issued		798			40,291
Reinvested		20,416			11,904
Redeemed		(102,972	)		(272,665	)
Change in Class B Shares		(81,758	)		(220,470	)
Class C Shares:
Issued		1,635,201			4,475,234
Reinvested		605,040			218,353
Redeemed		(985,956	)		(1,306,060	)
Change in Class C Shares		1,254,285			3,387,527
Institutional Shares:
Issued		8,702,341			22,029,491
Reinvested		1,988,269			958,239
Redeemed		(10,667,925	)		(11,034,081	)
Change in Institutional Shares		22,685			11,953,649
Class R Shares:
Issued		23,774			112,882
Reinvested		6,663			1,973
Redeemed		(16,007	)		(51,937	)
Change in Class R Shares		14,430			62,918
Change in Shares		2,423,533			30,043,299

* Commencement of operations.

See accompanying Notes to the Financial Statements.

82

Sterling Capital Long/Short Equity Fund			Sterling Capital Ultra Short Bond Fund					Sterling Capital Short Duration Bond Fund						Sterling Capital Intermediate U.S. Government Fund
For the Period December 13, 2013* to March 31, 2014 (Unaudited)			For the Six Months Ended March 31, 2014 (Unaudited)		For the Period November 30, 2012* to September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	347,147			$7,787,285	$	17,157,749		$	1,358,660		$	8,623,311		$	483,890		$	1,258,807
	—			24,084		10,004			161,217			335,450			139,416			301,287
	—			(3,406,101)		(3,614,242	)		(4,772,145	)		(3,795,613	)		(1,463,282	)		(3,517,784	)
	347,147			4,405,268		13,553,511			(3,252,268	)		5,163,148			(839,976	)		(1,957,690	)
	—			—		—			—			—			—			6
	—			—		—			—			—			5,562			15,057
	—			—		—			—			—			(188,147	)		(340,319	)
	—			—		—			—			—			(182,585	)		(325,256	)
	4,595			—		—			161,921			429,711			35,074			356,639
	—			—		—			5,532			7,516			10,374			21,658
	—			—		—			(146,031	)		(89,532	)		(229,861	)		(333,993	)
	4,595			—		—			21,422			347,695			(184,413	)		44,304
	80,195,739			1,934,277		45,611,386			25,297,172			40,074,634			3,539,105			11,347,763
	—			129,221		133,161			264,684			483,148			227,856			564,444
	(3,112,398	)		(3,339,912)		(5,038,012	)		(12,278,071	)		(24,289,332	)		(21,496,749	)		(39,313,621	)
	77,083,341			(1,276,414)		40,706,535			13,283,785			16,268,450			(17,729,788	)		(27,401,414	)
	—			—		—			—			—			—			—
	—			—		—			—			—			—			—
	—			—		—			—			—			—			—
	—			—		—			—			—			—			—
$	77,435,083			$3,128,854	$	54,260,046		$	10,052,939		$	21,779,293		$	(18,936,762	)	$	(29,640,056	)
	33,500			780,479		1,716,922			147,287			917,830			47,225			117,598
	—			2,414		1,002			17,476			35,898			13,589			28,465
	—			(341,480)		(362,237	)		(517,413	)		(405,262	)		(142,731	)		(335,030	)
	33,500			441,413		1,355,687			(352,650	)		548,466			(81,917	)		(188,967	)
	—			—		—			—			—			—			—
	—			—		—			—			—			543			1,423
	—			—		—			—			—			(18,397	)		(32,295	)
	—			—		—			—			—			(17,854	)		(30,872	)
	453			—		—			17,535			46,151			3,435			33,757
	—			—		—			600			806			1,012			2,052
	—			—		—			(15,814	)		(9,633	)		(22,334	)		(31,786	)
	453			—		—			2,321			37,324			(17,887	)		4,023
	7,844,563			193,890		4,562,273			2,741,567			4,285,682			344,405			1,071,266
	—			12,953		13,332			28,700			51,693			22,180			53,159
	(296,441	)		(334,728)		(504,090	)		(1,331,563	)		(2,600,459	)		(2,089,919	)		(3,717,053	)
	7,548,122			(127,885)		4,071,515			1,438,704			1,736,916			(1,723,334	)		(2,592,628	)
	—			—		—			—			—			—			—
	—			—		—			—			—			—			—
	—			—		—			—			—			—			—
	—			—		—			—			—			—			—
	7,582,075			313,528		5,427,202			1,088,375			2,322,706			(1,840,992	)		(2,808,444	)

83

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital Total Return Bond Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	1,621,444		$	11,899,923
Distributions reinvested		697,575			1,889,297
Value of shares redeemed		(5,968,481	)		(18,143,998	)
Change in net assets from Class A Share transactions		(3,649,462	)		(4,354,778	)
Class B Shares:
Proceeds from shares issued		—			72,201
Distributions reinvested		27,177			90,709
Value of shares redeemed		(352,887	)		(1,205,548	)
Change in net assets from Class B Share transactions		(325,710	)		(1,042,638	)
Class C Shares:
Proceeds from shares issued		571,215			2,574,280
Distributions reinvested		71,735			212,669
Value of shares redeemed		(1,173,848	)		(2,888,097	)
Change in net assets from Class C Share transactions		(530,898	)		(101,148	)
Institutional Shares:
Proceeds from shares issued		56,155,427			161,681,607
Distributions reinvested		4,436,568			11,055,357
Value of shares redeemed		(93,601,612	)		(221,737,422	)
Change in net assets from Institutional Share transactions		(33,009,617	)		(49,000,458	)
Class R Shares:
Distributions reinvested		98			218
Change in net assets from Class R Share transactions		98			218
Change in net assets from capital transactions	$	(37,515,589	)	$	(54,498,804	)
Share Transactions:
Class A Shares:
Issued		153,068			1,081,184
Reinvested		65,907			173,669
Redeemed		(564,573	)		(1,680,724	)
Change in Class A Shares		(345,598	)		(425,871	)
Class B Shares:
Issued		—			6,547
Reinvested		2,566			8,310
Redeemed		(33,328	)		(111,116	)
Change in Class B Shares		(30,762	)		(96,259	)
Class C Shares:
Issued		54,021			232,590
Reinvested		6,765			19,486
Redeemed		(111,006	)		(266,740	)
Change in Class C Shares		(50,220	)		(14,664	)
Institutional Shares:
Issued		5,310,124			14,787,872
Reinvested		418,822			1,015,390
Redeemed		(8,859,758	)		(20,444,175	)
Change in Institutional Shares		(3,130,812	)		(4,640,913	)
Class R Shares:
Reinvested		10			20
Change in Class R Shares		10			20
Change in Shares		(3,557,382	)		(5,177,687	)

See accompanying Notes to the Financial Statements.

84

Sterling Capital Corporate Fund						Sterling Capital Securitized Opportunities Fund						Sterling Capital Kentucky Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	76,185		$	163,693		$	47,929		$	37,973		$	206,473		$	906,765
	4,315			2,070			725			503			52,467			173,299
	(1,500	)		—			(1,500	)		—			(981,878	)		(5,646,964	)
	79,000			165,763			47,154			38,476			(722,938	)		(4,566,900	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			15,004			—			2,693			—			72,500
	233			90			30			45			579			4,894
	(12,363	)		—			—			—			—			(203,422	)
	(12,130	)		15,094			30			2,738			579			(126,028	)
	9,830,157			56,785,516			3,382,809			30,013,814			1,671,815			6,200,180
	1,492,085			3,600,680			611,725			2,100,226			13,140			19,962
	(41,479,867	)		(62,651,129	)		(25,104,771	)		(59,106,923	)		(2,559,652	)		(8,293,640	)
	(30,157,625	)		(2,264,933	)		(21,110,237	)		(26,992,883	)		(874,697	)		(2,073,498	)
	—			—			—			—			—			—
	—			—			—			—			—			—
$	(30,090,755	)	$	(2,084,076	)	$	(21,063,053	)	$	(26,951,669	)	$	(1,597,056	)	$	(6,766,426	)
	7,457			15,585			4,873			3,773			19,401			81,357
	424			202			74			51			4,897			15,697
	(149	)		—			(153	)		—			(91,973	)		(531,130	)
	7,732			15,787			4,794			3,824			(67,675	)		(434,076	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			1,462			—			265			—			6,415
	23			9			3			5			54			444
	(1,228	)		—			—			—			—			(19,273	)
	(1,205	)		1,471			3			270			54			(12,414	)
	964,445			5,385,772			343,531			2,963,654			156,355			561,421
	146,693			342,342			62,213			208,191			1,228			1,831
	(4,062,352	)		(5,983,894	)		(2,547,910	)		(5,833,335	)		(239,027	)		(754,843	)
	(2,951,214	)		(255,780	)		(2,142,166	)		(2,661,490	)		(81,444	)		(191,591	)
	—			—			—			—			—			—
	—			—			—			—			—			—
	(2,944,687	)		(238,522	)		(2,137,369	)		(2,657,396	)		(149,065	)		(638,081	)

85

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital Maryland Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	43,971		$	1,678,060
Distributions reinvested		48,037			225,617
Value of shares redeemed		(1,121,204	)		(3,219,359	)
Change in net assets from Class A Share transactions		(1,029,196	)		(1,315,682	)
Class C Shares:
Proceeds from shares issued		2,400			781,298
Distributions reinvested		4,698			36,634
Value of shares redeemed		(450,618	)		(846,290	)
Change in net assets from Class C Share transactions		(443,520	)		(28,358	)
Institutional Shares:
Proceeds from shares issued		2,014,806			12,166,091
Distributions reinvested		69,091			299,492
Value of shares redeemed		(6,594,220	)		(9,820,246	)
Change in net assets from Institutional Share transactions		(4,510,323	)		2,645,337
Change in net assets from capital transactions	$	(5,983,039	)	$	1,301,297
Share Transactions:
Class A Shares:
Issued		4,002			146,643
Reinvested		4,357			19,859
Redeemed		(101,816	)		(287,414	)
Change in Class A Shares		(93,457	)		(120,912	)
Class C Shares:
Issued		218			68,124
Reinvested		426			3,214
Redeemed		(40,864	)		(75,578	)
Change in Class C Shares		(40,220	)		(4,240	)
Institutional Shares:
Issued		182,674			1,071,556
Reinvested		6,257			26,388
Redeemed		(598,358	)		(881,634	)
Change in Institutional Shares		(409,427	)		216,310
Change in Shares		(543,104	)		91,158

See accompanying Notes to the Financial Statements.

86

Sterling Capital North Carolina Intermediate Tax-Free Fund						Sterling Capital South Carolina Intermediate Tax-Free Fund						Sterling Capital Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	935,568		$	10,309,290		$	317,354		$	6,295,380		$	1,352,403		$	6,432,147
	459,519			1,482,006			163,586			519,304			354,590			1,144,777
	(7,900,278	)		(18,337,658	)		(3,327,110	)		(6,435,463	)		(4,143,134	)		(8,941,691	)
	(6,505,191	)		(6,546,362	)		(2,846,170	)		379,221			(2,436,141	)		(1,364,767	)
	432,512			3,093,311			622,399			848,391			13,622			567,708
	26,743			104,401			4,362			8,010			12,712			58,253
	(1,852,644	)		(1,364,016	)		(65,251	)		(416,194	)		(853,914	)		(642,006	)
	(1,393,389	)		1,833,696			561,510			440,207			(827,580	)		(16,045	)
	11,700,358			41,215,063			8,811,392			17,877,941			6,857,661			17,955,969
	261,678			846,129			97,545			298,570			83,755			238,927
	(21,595,339	)		(62,939,678	)		(10,306,621	)		(18,730,981	)		(13,144,216	)		(23,235,066	)
	(9,633,303	)		(20,878,486	)		(1,397,684	)		(554,470	)		(6,202,800	)		(5,040,170	)
$	(17,531,883	)	$	(25,591,152	)	$	(3,682,344	)	$	264,958		$	(9,466,521	)	$	(6,420,982	)
	86,826			916,510			29,188			557,683			113,555			522,869
	42,556			133,189			14,999			46,405			29,895			93,738
	(732,269	)		(1,663,713	)		(306,034	)		(588,647	)		(349,838	)		(747,222	)
	(602,887	)		(614,014	)		(261,847	)		15,441			(206,388	)		(130,615	)
	39,983			273,959			56,903			75,827			1,142			45,927
	2,479			9,374			400			717			1,072			4,759
	(171,981	)		(124,926	)		(5,975	)		(38,339	)		(71,970	)		(54,527	)
	(129,519	)		158,407			51,328			38,205			(69,756	)		(3,841	)
	1,086,638			3,696,962			813,522			1,603,792			579,080			1,471,143
	24,235			76,094			9,004			26,891			7,059			19,610
	(2,004,311	)		(5,706,939	)		(954,469	)		(1,709,077	)		(1,111,987	)		(1,934,587	)
	(893,438	)		(1,933,883	)		(131,943	)		(78,394	)		(525,848	)		(443,834	)
	(1,625,844	)		(2,389,490	)		(342,462	)		(24,748	)		(801,992	)		(578,290	)

87

Sterling Capital Funds

    Statements of Changes in Net Assets (continued)

	Sterling Capital West Virginia Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	452,578		$	8,104,470
Distributions reinvested		309,593			1,054,987
Value of shares redeemed		(2,069,111	)		(9,469,654	)
Change in net assets from Class A Share transactions		(1,306,940	)		(310,197	)
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		2,400			264,885
Distributions reinvested		5,013			19,120
Value of shares redeemed		(69,150	)		(196,535	)
Change in net assets from Class C Share transactions		(61,737	)		87,470
Institutional Shares:
Proceeds from shares issued		5,915,985			18,311,821
Distributions reinvested		60,662			349,716
Value of shares redeemed		(6,978,754	)		(30,302,603	)
Change in net assets from Institutional Share transactions		(1,002,107	)		(11,641,066	)
Change in net assets from capital transactions	$	(2,370,784	)	$	(11,863,793	)
Share Transactions:
Class A Shares:
Issued		45,347			781,439
Reinvested		31,063			102,472
Redeemed		(208,332	)		(930,596	)
Change in Class A Shares		(131,922	)		(46,685	)
Class B Shares:
Issued		—			—
Reinvested		—			—
Redeemed		—			—
Change in Class B Shares		—			—
Class C Shares:
Issued		241			25,479
Reinvested		503			1,853
Redeemed		(6,902	)		(19,648	)
Change in Class C Shares		(6,158	)		7,684
Institutional Shares:
Issued		594,043			1,787,975
Reinvested		6,079			33,737
Redeemed		(701,063	)		(2,963,399	)
Change in Institutional Shares		(100,941	)		(1,141,687	)
Change in Shares		(239,021	)		(1,180,688	)

See accompanying Notes to the Financial Statements.

88

Sterling Capital Strategic Allocation Conservative Fund						Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013			For the Six Months Ended March 31, 2014 (Unaudited)			For the Year Ended September 30, 2013
$	1,370,823		$	2,634,390		$	2,339,912		$	4,117,952		$	1,312,283		$	3,816,397
	131,972			303,414			350,533			516,486			203,629			263,733
	(1,093,642	)		(2,652,484	)		(1,660,412	)		(4,320,772	)		(1,023,827	)		(3,037,747	)
	409,153			285,320			1,030,033			313,666			492,085			1,042,383
	9,604			74,558			—			47,998			3,560			71,105
	6,242			17,969			18,769			42,900			13,014			22,421
	(179,405	)		(503,529	)		(945,775	)		(2,307,127	)		(815,886	)		(1,825,711	)
	(163,559	)		(411,002	)		(927,006	)		(2,216,229	)		(799,312	)		(1,732,185	)
	60,117			73,528			82,108			205,169			26,517			168,676
	2,270			3,820			4,308			5,023			2,106			2,190
	(7,547	)		(49,294	)		(90,679	)		(89,669	)		(32,247	)		(47,205	)
	54,840			28,054			(4,263	)		120,523			(3,624	)		123,661
	201,248			448,719			331			96,478			30,230			711,976
	23,687			79,789			1,728			4,361			7,510			11,873
	(1,198,247	)		(811,729	)		(85,473	)		(273,337	)		(287,461	)		(742,283	)
	(973,312	)		(283,221	)		(83,414	)		(172,498	)		(249,721	)		(18,434	)
$	(672,878	)	$	(380,849	)	$	15,350		$	(1,954,538	)	$	(560,572	)	$	(584,575	)
	133,886			267,041			231,940			433,560			134,900			428,099
	12,693			30,916			34,304			54,705			20,620			29,751
	(106,919	)		(268,156	)		(164,064	)		(459,926	)		(105,071	)		(346,061	)
	39,660			29,801			102,180			28,339			50,449			111,789
	937			7,618			—			5,126			373			8,131
	599			1,829			1,877			4,688			1,355			2,669
	(17,492	)		(51,182	)		(95,356	)		(248,539	)		(85,748	)		(209,726	)
	(15,956	)		(41,735	)		(93,479	)		(238,725	)		(84,020	)		(198,926	)
	5,827			7,472			8,352			21,678			2,802			19,003
	219			391			429			543			220			258
	(743	)		(4,945	)		(9,069	)		(9,612	)		(3,456	)		(5,252	)
	5,303			2,918			(288	)		12,609			(434	)		14,009
	19,446			45,233			33			10,015			3,099			77,883
	2,256			8,042			168			460			758			1,335
	(116,872	)		(81,670	)		(8,442	)		(29,412	)		(29,945	)		(82,142	)
	(95,170	)		(28,395	)		(8,241	)		(18,937	)		(26,088	)		(2,924	)
	(66,163	)		(37,411	)		172			(216,714	)		(60,093	)		(76,052	)

89

Sterling Capital Funds

    Statement of Cash Flows

    For the Period December 13, 2013 to March 31, 2014 (Unaudited)

	Sterling Capital Long/Short Equity Fund
Cash Used for Operating Activities:
Net increase in net assets resulting from operations	$	4,525,551
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Increase in cash held at broker for securities short sales		(26,392,271	)
Increase in interest and dividends receivable		(56,528	)
Increase in deferred offering costs		(6,183	)
Increase in prepaid expenses		(4,931	)
Increase in payable for dividends on short sales		25,786
Increase in payable to broker for service fee on short sales		2,624
Increase in investment advisory fees payable		92,683
Increase in administration fees payable		5,749
Increase in audit fees payable		1,595
Increase in distribution (12b-1) fees payable		69
Increase in Trustee fees payable		198
Increase in other fees		11,483
Net realized gain on investments		(2,331,855	)
Net unrealized gain (loss) on investments and foreign currency translations		(2,405,048	)
Proceeds from investments sold short		39,149,828
Purchases to cover investments sold short		(12,885,668	)
Purchases of long-term investments		(82,289,730	)
Proceeds from sales of long-term investments		22,930,552
Net purchases of short-term securities		(12,049,019	)
Net cash used for operating activities		(71,675,115	)
Cash Used for Financing Activities:
Proceeds from issuance capital shares		74,911,537
Payments on redemption of capital shares		(2,984,428	)
Net cash provided for financing activities		71,927,109
Cash:
Net increase in cash		251,994
Cash at beginning of period		—
Cash at end of period	$	251,994

See accompanying Notes to the Financial Statements.

90

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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)(a)			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 Large Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$	14.16		0.09			2.29			2.38			(0.09	)		—			—			(0.09	)
Year Ended September 30, 2013		$	12.80		0.13			1.36			1.49			(0.13	)		—			—			(0.13	)
Year Ended September 30, 2012		$	9.90		0.11			2.90			3.01			(0.11	)		—			—			(0.11	)
Year Ended September 30, 2011		$	10.52		0.11			(0.62	)		(0.51	)		(0.11	)		—			—			(0.11	)
Year Ended September 30, 2010		$	10.08		0.10			0.45			0.55			(0.11	)		—			—			(0.11	)
Year Ended September 30, 2009		$	11.31		0.11			(1.22	)		(1.11	)		(0.12	)		—			—			(0.12	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2014 (Unaudited)		$	18.78		0.03			1.79			1.82			(0.06	)		(1.20	)		—			(1.26	)
Year Ended September 30, 2013		$	14.28		0.13			4.47			4.60			(0.10	)		—			—			(0.10	)
Year Ended September 30, 2012		$	11.37		0.10			2.91			3.01			(0.10	)		—			—			(0.10	)
Year Ended September 30, 2011		$	12.08		0.04			(0.70	)		(0.66	)		(0.05	)		—			—			(0.05	)
Year Ended September 30, 2010		$	10.81		0.04			1.27			1.31			(0.04	)		—			—			(0.04	)
Year Ended September 30, 2009		$	10.50		0.02			0.31			0.33			(0.02	)		—			—			(0.02	)
Sterling Capital Small Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$	15.25		0.05			1.66			1.71			(0.08	)		(1.87	)		—			(1.95	)
Year Ended September 30, 2013		$	12.01		0.05			3.37			3.42			(0.03	)		(0.15	)		—			(0.18	)
Year Ended September 30, 2012		$	10.79		0.03			2.17			2.20			—			(0.98	)		—			(0.98	)
Year Ended September 30, 2011		$	11.19		(0.05	)		(0.35	)		(0.40	)		—			—			—			—
February 1, 2010 to September 30, 2010(e)		$	10.55		0.04			0.63			0.67			(0.03	)		—			—			(0.03	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$	21.38		(0.01	)		2.66			2.65			(0.01	)		(2.28	)		—			(2.29	)
Year Ended September 30, 2013		$	18.51		0.05	(g)		3.78			3.83			(0.01	)		(0.95	)		—			(0.96	)
Year Ended September 30, 2012		$	15.25		—	(h)		3.57			3.57			—			(0.31	)		—			(0.31	)
Year Ended September 30, 2011		$	15.93		(0.06	)		(0.52	)		(0.58	)		—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010		$	14.66		(0.06	)		1.33			1.27			—			—			—			—
Year Ended September 30, 2009		$	15.34		—	(h)		—	(h)		—	(h)		—	(h)		(0.57	)		(0.11	)		(0.68	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2014 (Unaudited)		$	18.14		0.17			1.06			1.23			(0.16	)		(0.63	)		—			(0.79	)
Year Ended September 30, 2013		$	16.03		0.29			2.23			2.52			(0.25	)		(0.16	)		—			(0.41	)
Year Ended September 30, 2012		$	13.25		0.25			2.72			2.97			(0.19	)		—			—			(0.19	)
Year Ended September 30, 2011		$	13.05		0.25			0.14	(j)		0.39			(0.19	)		—			—			(0.19	)
Year Ended September 30, 2010		$	11.43		0.30			1.56			1.86			(0.24	)		—			—			(0.24	)
Year Ended September 30, 2009		$	12.35		0.30			(0.99	)		(0.69	)		(0.20	)		(0.03	)		—			(0.23	)
Sterling Capital Long/Short Equity Fund
December 13, 2013 to March 31, 2014 (Unaudited)(e)		$	10.00		(0.04	)		0.84			0.80			—			—			—			—
Sterling Capital Ultra Short Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.98		0.02			—	(h)		0.02			(0.03	)		—			—			(0.03	)
November 30, 2012 to September 30, 2013(e)		$	10.00		0.03			(0.02	)		0.01			(0.03	)		—			—			(0.03	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) 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 11.56%.

(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 6.01%.

(g) Net investment income per share reflects a special dividend which amounted to $0.01 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.19% per share.

(h) Amount is less than $0.005.

(i) Ratio is below 0.005%.

(j) 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.

(k) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.03% per share.

See accompanying Notes to the Financial Statements.

92

						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 (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	16.45		16.83	%		$	33,554		1.06	%		1.12	%		1.16	%		54.42	%
	$	14.16		11.72	%(d)		$	28,682		1.09	%		0.97	%		1.19	%		164.27	%
	$	12.80		30.52	%		$	28,618		1.08	%		0.98	%		1.28	%		68.75	%
	$	9.90		(5.01	)%		$	24,603		1.08	%		0.93	%		1.47	%		66.29	%
	$	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	%
	$	19.34		9.96	%		$	45,777		1.16	%		0.30	%		1.16	%		11.19	%
	$	18.78		32.36	%		$	36,094		1.17	%		0.79	%		1.17	%		34.03	%
	$	14.28		26.57	%		$	21,976		1.19	%		0.78	%		1.20	%		21.62	%
	$	11.37		(5.51	)%		$	18,017		1.18	%		0.32	%		1.22	%		38.30	%
	$	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	%
	$	15.01		12.09	%		$	11,135		1.23	%		0.60	%		1.23	%		39.71	%
	$	15.25		28.74	%		$	8,813		1.29	%		0.36	%		1.29	%		176.62	%
	$	12.01		21.31	%		$	6,720		1.33	%		0.22	%		1.44	%		32.86	%
	$	10.79		(3.57	)%		$	6,152		1.33	%		(0.39	)%		1.69	%		63.02	%
	$	11.19		6.39	%(f)		$	5,389		1.40	%		0.49	%		1.91	%		95.89	%
	$	21.74		13.41	%		$	322,729		1.21	%		(0.11	)%		1.21	%		18.29	%
	$	21.38		21.59	%		$	269,300		1.24	%		0.27	%(g)		1.24	%		53.76	%
	$	18.51		23.67	%		$	174,085		1.29	%		(0.00	)%(i)		1.38	%		19.38	%
	$	15.25		(3.72	)%		$	197,138		1.28	%		(0.35	)%		1.53	%		31.51	%
	$	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	%
	$	18.58		6.87	%		$	729,611		1.20	%		1.80	%		1.20	%		11.24	%
	$	18.14		16.02	%		$	690,106		1.20	%		1.69	%		1.20	%		30.56	%
	$	16.03		22.47	%		$	371,659		1.19	%		1.61	%		1.26	%		21.30	%
	$	13.25		2.93	%		$	214,622		1.18	%		1.80	%		1.43	%		16.64	%
	$	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	%
	$	10.80		8.00	%		$	362		3.40	%(k)		(1.35	)%		3.40	%		85.34	%
	$	9.97		0.22	%		$	17,919		0.71	%		0.48	%		0.71	%		36.15	%
	$	9.98		0.15	%		$	13,526		0.73	%		0.41	%		0.73	%		55.18	%

93

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(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.24		0.07		0.02			0.09			(0.14	)		—			(0.14	)
Year Ended September 30, 2013		$	9.47		0.17		(0.10	)		0.07			(0.30	)		—			(0.30	)
Year Ended September 30, 2012		$	9.36		0.19		0.24			0.43			(0.32	)		—			(0.32	)
Year Ended September 30, 2011		$	9.68		0.17		(0.19	)		(0.02	)		(0.30	)		—			(0.30	)
Year Ended September 30, 2010		$	9.66		0.16		0.10			0.26			(0.24	)		—			(0.24	)
Year Ended September 30, 2009		$	9.54		0.24		0.19			0.43			(0.31	)		—			(0.31	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.29		0.07		0.03			0.10			(0.16	)		—			(0.16	)
Year Ended September 30, 2013		$	10.86		0.16		(0.43	)		(0.27	)		(0.30	)		—			(0.30	)
Year Ended September 30, 2012		$	10.79		0.20		0.16			0.36			(0.29	)		—			(0.29	)
Year Ended September 30, 2011		$	10.80		0.24		0.06			0.30			(0.31	)		—			(0.31	)
Year Ended September 30, 2010		$	10.56		0.29		0.27			0.56			(0.32	)		—			(0.32	)
Year Ended September 30, 2009		$	10.03		0.33		0.55			0.88			(0.35	)		—			(0.35	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.52		0.16		0.15			0.31			(0.19	)		(0.01	)		(0.20	)
Year Ended September 30, 2013		$	11.15		0.29		(0.46	)		(0.17	)		(0.38	)		(0.08	)		(0.46	)
Year Ended September 30, 2012		$	11.05		0.29		0.46			0.75			(0.38	)		(0.27	)		(0.65	)
Year Ended September 30, 2011		$	11.32		0.38		0.01			0.39			(0.45	)		(0.21	)		(0.66	)
Year Ended September 30, 2010		$	10.78		0.43		0.61			1.04			(0.49	)		(0.01	)		(0.50	)
Year Ended September 30, 2009		$	9.88		0.45		0.90			1.35			(0.45	)		—			(0.45	)
Sterling Capital Corporate Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.15		0.16		0.17			0.33			(0.16	)		(0.10	)		(0.26	)
February 1, 2013 to September 30, 2013(d)		$	10.53		0.22		(0.38	)		(0.16	)		(0.22	)		—			(0.22	)
Sterling Capital Securitized Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.85		0.09		0.04			0.13			(0.14	)		—			(0.14	)
February 1, 2013 to September 30, 2013(d)		$	10.16		0.11		(0.21	)		(0.10	)		(0.21	)		—			(0.21	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.67		0.13		0.04			0.17			(0.13	)		—			(0.13	)
Year Ended September 30, 2013		$	11.17		0.24		(0.44	)		(0.20	)		(0.24	)		(0.06	)		(0.30	)
Year Ended September 30, 2012		$	10.80		0.27		0.40			0.67			(0.27	)		(0.03	)		(0.30	)
Year Ended September 30, 2011		$	10.83		0.29		0.02	(e)		0.31			(0.29	)		(0.05	)		(0.34	)
Year Ended September 30, 2010		$	10.68		0.29		0.25			0.54			(0.29	)		(0.10	)		(0.39	)
Year Ended September 30, 2009		$	9.88		0.33		0.89			1.22			(0.32	)		(0.10	)		(0.42	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.96		0.09		0.09			0.18			(0.09	)		—			(0.09	)
Year Ended September 30, 2013		$	11.56		0.19		(0.45	)		(0.26	)		(0.19	)		(0.15	)		(0.34	)
Year Ended September 30, 2012		$	11.23		0.24		0.41			0.65			(0.24	)		(0.08	)		(0.32	)
Year Ended September 30, 2011		$	11.21		0.28		0.06			0.34			(0.28	)		(0.04	)		(0.32	)
Year Ended September 30, 2010		$	10.97		0.28		0.24			0.52			(0.28	)		—	(f)		(0.28	)
Year Ended September 30, 2009		$	10.04		0.30		1.01			1.31			(0.30	)		(0.08	)		(0.38	)
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.74		0.12		0.08			0.20			(0.12	)		—			(0.12	)
Year Ended September 30, 2013		$	11.36		0.25		(0.54	)		(0.29	)		(0.25	)		(0.08	)		(0.33	)
Year Ended September 30, 2012		$	11.02		0.27		0.41			0.68			(0.27	)		(0.07	)		(0.34	)
Year Ended September 30, 2011		$	11.01		0.29		0.07			0.36			(0.29	)		(0.06	)		(0.35	)
Year Ended September 30, 2010		$	10.87		0.30		0.20			0.50			(0.30	)		(0.06	)		(0.36	)
Year Ended September 30, 2009		$	10.09		0.33		0.88			1.21			(0.33	)		(0.10	)		(0.43	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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 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) Period from commencement of operations.

(e) 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.

(f) Amount is less than $0.005.

See accompanying Notes to the Financial Statements.

94

					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)
	$  9.19		0.94	%		$10,498			0.74	%		1.50	%		0.78	%		29.29	%
	$  9.24		0.72	%		$13,812			0.77	%		1.83	%		0.81	%		56.09	%
	$  9.47		4.68	%		$  8,965			0.81	%		2.04	%		0.91	%		85.13	%
	$  9.36		(0.20	)%		$  7,684			0.85	%		1.81	%		1.20	%		120.09	%
	$  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	%
	$10.23		1.00	%		$  9,280			0.94	%		1.38	%		0.94	%		13.53	%
	$10.29		(2.54	)%		$10,172			0.93	%		1.50	%		0.93	%		66.16	%
	$10.86		3.41	%		$12,788			0.97	%		1.81	%		1.10	%		71.68	%
	$10.79		2.86	%		$13,344			0.96	%		2.30	%		1.33	%		83.62	%
	$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	%
	$10.63		2.99	%		$39,544			0.81	%		3.00	%		0.83	%		31.31	%
	$10.52		(1.51	)%		$42,774			0.82	%		2.68	%		0.84	%		149.09	%
	$11.15		7.13	%		$50,063			0.88	%		2.65	%		0.99	%		110.82	%
	$11.05		3.68	%		$37,274			0.95	%		3.47	%		1.32	%		131.87	%
	$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	%
	$10.22		3.28	%		$     240			0.83	%		3.08	%		0.83	%		75.78	%
	$10.15		(1.54	)%		$     160			0.85	%		3.21	%		0.85	%		99.48	%
	$  9.84		1.33	%		$       85			0.88	%		1.87	%		0.90	%		64.82	%
	$  9.85		(1.00	)%		$       38			0.90	%		1.71	%		0.90	%		193.21	%
	$10.71		1.61	%		$  5,147			0.97	%		2.48	%		0.97	%		7.17	%
	$10.67		(1.83	)%		$  5,849			0.96	%		2.21	%		0.96	%		22.05	%
	$11.17		6.21	%		$10,969			0.95	%		2.43	%		1.04	%		16.52	%
	$10.80		3.00	%		$  8,729			0.93	%		2.76	%		1.28	%		15.73	%
	$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	%
	$11.05		1.67	%		$  7,074			0.94	%		1.69	%		0.94	%		10.97	%
	$10.96		(2.31	)%		$  8,036			0.95	%		1.70	%		0.95	%		70.60	%
	$11.56		5.80	%		$  9,877			0.95	%		2.08	%		1.05	%		34.94	%
	$11.23		3.09	%		$  9,232			0.92	%		2.52	%		1.28	%		21.89	%
	$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	%
	$10.82		1.89	%		$49,293			0.91	%		2.27	%		0.91	%		6.70	%
	$10.74		(2.63	)%		$55,416			0.92	%		2.23	%		0.92	%		22.38	%
	$11.36		6.25	%		$65,544			0.92	%		2.39	%		1.00	%		19.76	%
	$11.02		3.35	%		$51,294			0.92	%		2.67	%		1.22	%		15.15	%
	$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	%

95

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(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)	$10.85		0.11		0.08			0.19			(0.11	)		—			(0.11	)
Year Ended September 30, 2013	$11.36		0.21		(0.43	)		(0.22	)		(0.21	)		(0.08	)		(0.29	)
Year Ended September 30, 2012	$10.97		0.24		0.46			0.70			(0.24	)		(0.07	)		(0.31	)
Year Ended September 30, 2011	$10.93		0.26		0.07			0.33			(0.26	)		(0.03	)		(0.29	)
Year Ended September 30, 2010	$10.68		0.30		0.25			0.55			(0.30	)		—			(0.30	)
Year Ended September 30, 2009	$  9.95		0.33		0.90			1.23			(0.33	)		(0.17	)		(0.50	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)	$11.79		0.12		0.09			0.21			(0.12	)		—			(0.12	)
Year Ended September 30, 2013	$12.45		0.24		(0.56	)		(0.32	)		(0.24	)		(0.10	)		(0.34	)
Year Ended September 30, 2012	$12.12		0.28		0.40			0.68			(0.28	)		(0.07	)		(0.35	)
Year Ended September 30, 2011	$12.14		0.31		0.02			0.33			(0.31	)		(0.04	)		(0.35	)
Year Ended September 30, 2010	$12.07		0.33		0.18			0.51			(0.33	)		(0.11	)		(0.44	)
Year Ended September 30, 2009	$11.11		0.36		1.05			1.41			(0.36	)		(0.09	)		(0.45	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)	$  9.90		0.11		0.09			0.20			(0.11	)		—			(0.11	)
Year Ended September 30, 2013	$10.51		0.22		(0.49	)		(0.27	)		(0.22	)		(0.12	)		(0.34	)
Year Ended September 30, 2012	$10.16		0.27		0.39			0.66			(0.27	)		(0.04	)		(0.31	)
Year Ended September 30, 2011	$10.17		0.32		—			0.32			(0.32	)		(0.01	)		(0.33	)
Year Ended September 30, 2010	$10.04		0.33		0.15			0.48			(0.33	)		(0.02	)		(0.35	)
Year Ended September 30, 2009	$  9.36		0.33		0.69			1.02			(0.33	)		(0.01	)		(0.34	)
Sterling Capital Strategic Allocation Conservative Fund(d)
Six Months Ended March 31, 2014 (Unaudited)	$  9.95		0.12		0.44			0.56			(0.10	)		—			(0.10	)
Year Ended September 30, 2013	$  9.68		0.22		0.28			0.50			(0.23	)		—			(0.23	)
Year Ended September 30, 2012	$  8.74		0.20		0.94			1.14			(0.20	)		—			(0.20	)
Year Ended September 30, 2011	$  9.06		0.22		(0.26	)		(0.04	)		(0.28	)		—			(0.28	)
Year Ended September 30, 2010	$  8.50		0.26		0.57			0.83			(0.27	)		—			(0.27	)
Year Ended September 30, 2009	$  8.43		0.23		0.21			0.44			(0.23	)		(0.14	)		(0.37	)
Sterling Capital Strategic Allocation Balanced Fund(d)
Six Months Ended March 31, 2014 (Unaudited)	$  9.77		0.09		0.60			0.69			(0.11	)		—			(0.11	)
Year Ended September 30, 2013	$  9.13		0.16		0.65			0.81			(0.17	)		—			(0.17	)
Year Ended September 30, 2012	$  7.95		0.14		1.18			1.32			(0.14	)		—			(0.14	)
Year Ended September 30, 2011	$  8.39		0.15		(0.41	)		(0.26	)		(0.18	)		—			(0.18	)
Year Ended September 30, 2010	$  7.79		0.18		0.60			0.78			(0.18	)		—			(0.18	)
Year Ended September 30, 2009	$  7.77		0.16		0.02			0.18			(0.16	)		—			(0.16	)
Sterling Capital Strategic Allocation Growth Fund(d)
Six Months Ended March 31, 2014 (Unaudited)	$  9.35		0.07		0.69			0.76			(0.09	)		—			(0.09	)
Year Ended September 30, 2013	$  8.47		0.11		0.89			1.00			(0.12	)		—			(0.12	)
Year Ended September 30, 2012	$  7.20		0.10		1.27			1.37			(0.10	)		—			(0.10	)
Year Ended September 30, 2011	$  7.69		0.10		(0.48	)		(0.38	)		(0.11	)		—			(0.11	)
Year Ended September 30, 2010	$  7.11		0.13		0.58			0.71			(0.13	)		—			(0.13	)
Year Ended September 30, 2009	$  7.33		0.12		(0.22	)		(0.10	)		(0.12	)		—			(0.12	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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 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) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying Notes to the Financial Statements.

96

					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)
	$10.93		1.77	%		$18,863		0.93	%		2.04	%		0.93	%		3.50	%
	$10.85		(1.93	)%		$21,569		0.94	%		1.92	%		0.94	%		35.38	%
	$11.36		6.48	%		$22,398		0.95	%		2.16	%		1.02	%		26.49	%
	$10.97		3.11	%		$16,338		0.96	%		2.43	%		1.26	%		25.83	%
	$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	%
	$11.88		1.81	%		$44,520		0.91	%		2.08	%		0.91	%		7.77	%
	$11.79		(2.60	)%		$46,616		0.93	%		1.98	%		0.93	%		40.00	%
	$12.45		5.68	%		$50,835		0.93	%		2.25	%		1.01	%		21.63	%
	$12.12		2.85	%		$39,231		0.93	%		2.64	%		1.23	%		15.33	%
	$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	%
	$  9.99		2.00	%		$36,258		0.92	%		2.17	%		0.92	%		9.78	%
	$  9.90		(2.65	)%		$37,266		0.93	%		2.13	%		0.93	%		22.18	%
	$10.51		6.59	%		$40,019		0.93	%		2.60	%		0.93	%		26.70	%
	$10.16		3.22	%		$32,791		0.94	%		3.19	%		0.94	%		23.34	%
	$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	%
	$10.41		5.64	%		$15,460		0.43	%		2.30	%		0.68	%		6.66	%
	$  9.95		5.25	%		$14,381		0.54	%		2.18	%		0.69	%		60.51	%
	$  9.68		13.10	%		$13,704		0.69	%		2.09	%		0.77	%		7.99	%
	$  8.74		(0.55	)%		$10,689		0.64	%		2.34	%		0.97	%		8.36	%
	$  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	%
	$10.35		7.09	%		$33,520		0.39	%		1.82	%		0.64	%		3.73	%
	$  9.77		8.95	%		$30,638		0.51	%		1.70	%		0.66	%		81.00	%
	$  9.13		16.76	%		$28,375		0.66	%		1.65	%		0.75	%		17.65	%
	$  7.95		(3.29	)%		$25,227		0.58	%		1.68	%		0.91	%		9.96	%
	$  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	%
	$10.02		8.11	%		$23,918		0.40	%		1.41	%		0.65	%		5.14	%
	$  9.35		11.89	%		$21,833		0.52	%		1.24	%		0.68	%		96.94	%
	$  8.47		19.14	%		$18,827		0.68	%		1.30	%		0.76	%		20.21	%
	$  7.20		(5.10	)%		$16,246		0.59	%		1.26	%		0.93	%		9.06	%
	$  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	%

97

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)(a)			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 Large Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$	13.91		0.03			2.25			2.28			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2013		$	12.58		0.03			1.33			1.36			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2012		$	9.73		0.03			2.84			2.87			(0.02	)		—			—			(0.02	)
Year Ended September 30, 2011		$	10.33		0.02			(0.60	)		(0.58	)		(0.02	)		—			—			(0.02	)
Year Ended September 30, 2010		$	9.90		0.02			0.44			0.46			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2009		$	11.11		0.05			(1.21	)		(1.16	)		(0.05	)		—			—			(0.05	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2014 (Unaudited)		$	17.76		(0.05	)		1.69			1.64			—			(1.20	)		—			(1.20	)
Year Ended September 30, 2013		$	13.55		—	(e)		4.24			4.24			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2012		$	10.80		—	(e)		2.77			2.77			(0.02	)		—			—			(0.02	)
Year Ended September 30, 2011		$	11.52		(0.06	)		(0.66	)		(0.72	)		—			—			—			—
Year Ended September 30, 2010		$	10.35		(0.05	)		1.22			1.17			—	(e)		—			—			—	(e)
Year Ended September 30, 2009		$	10.14		(0.05	)		0.27			0.22			(0.01	)		—			—			(0.01	)
Sterling Capital Small Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$	14.89		(0.01	)		1.63			1.62			(0.06	)		(1.87	)		—			(1.93	)
Year Ended September 30, 2013		$	11.80		(0.05	)		3.29			3.24			—			(0.15	)		—			(0.15	)
Year Ended September 30, 2012		$	10.69		(0.06	)		2.15			2.09			—			(0.98	)		—			(0.98	)
Year Ended September 30, 2011		$	11.17		(0.15	)		(0.33	)		(0.48	)		—			—			—			—
February 1, 2010 to September 30, 2010(f)		$	10.55		(0.02	)		0.64			0.62			—			—			—			—
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$	19.53		(0.08	)		2.41			2.33			—			(2.28	)		—			(2.28	)
Year Ended September 30, 2013		$	17.11		(0.08	)(h)		3.45			3.37			—			(0.95	)		—			(0.95	)
Year Ended September 30, 2012		$	14.22		(0.12	)		3.32			3.20			—			(0.31	)		—			(0.31	)
Year Ended September 30, 2011		$	14.97		(0.18	)		(0.47	)		(0.65	)		—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010		$	13.89		(0.16	)		1.24			1.08			—			—			—			—
Year Ended September 30, 2009		$	14.65		(0.05	)		(0.05	)		(0.10	)		—	(e)		(0.57	)		(0.09	)		(0.66	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2014 (Unaudited)		$	18.10		0.09			1.07			1.16			(0.09	)		(0.63	)		—			(0.72	)
Year Ended September 30, 2013		$	15.99		0.16			2.22			2.38			(0.11	)		(0.16	)		—			(0.27	)
Year Ended September 30, 2012		$	13.21		0.13			2.72			2.85			(0.07	)		—			—			(0.07	)
Year Ended September 30, 2011		$	13.01		0.14			0.14	(i)		0.28			(0.08	)		—			—			(0.08	)
Year Ended September 30, 2010		$	11.39		0.20			1.57			1.77			(0.15	)		—			—			(0.15	)
Year Ended September 30, 2009		$	12.31		0.22			(0.98	)		(0.76	)		(0.13	)		(0.03	)		—			(0.16	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.25		0.03			0.04			0.07			(0.12	)		—			—			(0.12	)
Year Ended September 30, 2013		$	10.82		0.08			(0.43	)		(0.35	)		(0.22	)		—			—			(0.22	)
Year Ended September 30, 2012		$	10.75		0.12			0.16			0.28			(0.21	)		—			—			(0.21	)
Year Ended September 30, 2011		$	10.77		0.17			0.04			0.21			(0.23	)		—			—			(0.23	)
Year Ended September 30, 2010		$	10.52		0.21			0.28			0.49			(0.24	)		—			—			(0.24	)
Year Ended September 30, 2009		$	10.00		0.25			0.54			0.79			(0.27	)		—			—			(0.27	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) 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 10.59%.

(e) Amount is less than $0.005.

(f) Period from commencement of operations.

(g) 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%.

(h) Net investment loss per share reflects a special dividend which amounted to $0.02 per share. Excluding the special dividend, the ratio of net investment loss to average net assets would have been (0.55)% per share.

(i) 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.

98

						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 (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	16.16		16.40	%		$	1,160	1.80%		0.36	%		1.90	%		54.42	%
	$	13.91		10.83	%(d)		$	1,261	1.84%		0.23	%		1.94	%		164.27	%
	$	12.58		29.55	%		$	1,638	1.83%		0.24	%		1.95	%		68.75	%
	$	9.73		(5.67	)%		$	1,922	1.83%		0.18	%		1.97	%		66.29	%
	$	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	%
	$	18.20		9.51	%		$	1,676	1.90%		(0.51	)%		1.90	%		11.19	%
	$	17.76		31.34	%		$	2,002	1.92%		(0.01	)%		1.92	%		34.03	%
	$	13.55		25.72	%		$	1,996	1.93%		(0.01	)%		1.95	%		21.62	%
	$	10.80		(6.25	)%		$	2,604	1.93%		(0.45	)%		1.97	%		38.30	%
	$	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	%
	$	14.58		11.69	%		$	390	1.98%		(0.17	)%		1.98	%		39.71	%
	$	14.89		27.74	%		$	425	2.04%		(0.41	)%		2.04	%		176.62	%
	$	11.80		20.43	%		$	432	2.08%		(0.53	)%		2.11	%		32.86	%
	$	10.69		(4.30	)%		$	571	2.08%		(1.15	)%		2.19	%		63.02	%
	$	11.17		5.88	%(g)		$	932	2.15%		(0.28	)%		2.41	%		95.89	%
	$	19.58		12.99	%		$	8,428	1.95%		(0.86	)%		1.95	%		18.29	%
	$	19.53		20.64	%		$	8,921	1.99%		(0.45	)%(h)		1.99	%		53.76	%
	$	17.11		22.76	%		$	12,466	2.04%		(0.77	)%		2.04	%		19.38	%
	$	14.22		(4.43	)%		$	16,582	2.03%		(1.10	)%		2.03	%		31.51	%
	$	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	%
	$	18.54		6.49	%		$	9,073	1.94%		1.02	%		1.94	%		11.24	%
	$	18.10		15.13	%		$	10,335	1.95%		0.94	%		1.95	%		30.56	%
	$	15.99		21.60	%		$	12,653	1.93%		0.85	%		1.93	%		21.30	%
	$	13.21		2.13	%		$	12,314	1.93%		1.02	%		1.93	%		16.64	%
	$	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	%
	$	10.20		0.72	%		$	348	1.69%		0.64	%		1.69	%		13.53	%
	$	10.25		(3.30	)%		$	533	1.69%		0.77	%		1.69	%		66.16	%
	$	10.82		2.64	%		$	896	1.72%		1.10	%		1.76	%		71.68	%
	$	10.75		1.99	%		$	1,617	1.71%		1.58	%		1.83	%		83.62	%
	$	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	%

99

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(a)		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, 2014 (Unaudited)		$	10.53		0.12		0.15			0.27			(0.15	)		(0.01	)		(0.16	)
Year Ended September 30, 2013		$	11.16		0.21		(0.46	)		(0.25	)		(0.30	)		(0.08	)		(0.38	)
Year Ended September 30, 2012		$	11.06		0.22		0.45			0.67			(0.30	)		(0.27	)		(0.57	)
Year Ended September 30, 2011		$	11.33		0.30		0.01			0.31			(0.37	)		(0.21	)		(0.58	)
Year Ended September 30, 2010		$	10.78		0.35		0.62			0.97			(0.41	)		(0.01	)		(0.42	)
Year Ended September 30, 2009		$	9.89		0.37		0.89			1.26			(0.37	)		—			(0.37	)
Sterling Capital Strategic Allocation Conservative Fund(d)
Six Months Ended March 31, 2014 (Unaudited)		$	9.98		0.08		0.44			0.52			(0.07	)		—			(0.07	)
Year Ended September 30, 2013		$	9.70		0.14		0.29			0.43			(0.15	)		—			(0.15	)
Year Ended September 30, 2012		$	8.76		0.12		0.94			1.06			(0.12	)		—			(0.12	)
Year Ended September 30, 2011		$	9.07		0.15		(0.25	)		(0.10	)		(0.21	)		—			(0.21	)
Year Ended September 30, 2010		$	8.50		0.20		0.57			0.77			(0.20	)		—			(0.20	)
Year Ended September 30, 2009		$	8.43		0.17		0.21			0.38			(0.17	)		(0.14	)		(0.31	)
Sterling Capital Strategic Allocation Balanced Fund(d)
Six Months Ended March 31, 2014 (Unaudited)		$	9.57		0.05		0.59			0.64			(0.07	)		—			(0.07	)
Year Ended September 30, 2013		$	8.94		0.09		0.63			0.72			(0.09	)		—			(0.09	)
Year Ended September 30, 2012		$	7.79		0.07		1.16			1.23			(0.08	)		—			(0.08	)
Year Ended September 30, 2011		$	8.22		0.08		(0.40	)		(0.32	)		(0.11	)		—			(0.11	)
Year Ended September 30, 2010		$	7.63		0.12		0.59			0.71			(0.12	)		—			(0.12	)
Year Ended September 30, 2009		$	7.62		0.11		0.01			0.12			(0.11	)		—			(0.11	)
Sterling Capital Strategic Allocation Growth Fund(d)
Six Months Ended March 31, 2014 (Unaudited)		$	9.12		0.03		0.68			0.71			(0.05	)		—			(0.05	)
Year Ended September 30, 2013		$	8.26		0.05		0.86			0.91			(0.05	)		—			(0.05	)
Year Ended September 30, 2012		$	7.03		0.04		1.24			1.28			(0.05	)		—			(0.05	)
Year Ended September 30, 2011		$	7.51		0.04		(0.46	)		(0.42	)		(0.06	)		—			(0.06	)
Year Ended September 30, 2010		$	6.95		0.08		0.56			0.64			(0.08	)		—			(0.08	)
Year Ended September 30, 2009		$	7.17		0.07		(0.22	)		(0.15	)		(0.07	)		—			(0.07	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying Notes to the Financial Statements.

100

					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)
	$10.64		2.61	%		$	1,635		1.56	%		2.25	%		1.58	%		31.31	%
	$10.53		(2.25	)%		$	1,943		1.57	%		1.93	%		1.59	%		149.09	%
	$11.16		6.33	%		$	3,132		1.63	%		1.97	%		1.67	%		110.82	%
	$11.06		2.91	%		$	3,776		1.70	%		2.74	%		1.82	%		131.87	%
	$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	%
	$10.43		5.24	%		$	900		1.18	%		1.51	%		1.43	%		6.66	%
	$  9.98		4.49	%		$	1,020		1.30	%		1.41	%		1.44	%		60.51	%
	$  9.70		12.16	%		$	1,397		1.44	%		1.34	%		1.44	%		7.99	%
	$  8.76		(1.24	)%		$	1,813		1.37	%		1.61	%		1.47	%		8.36	%
	$  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	%
	$10.14		6.68	%		$	2,511		1.14	%		0.98	%		1.39	%		3.73	%
	$  9.57		8.14	%		$	3,264		1.28	%		0.94	%		1.41	%		81.00	%
	$  8.94		15.80	%		$	5,184		1.41	%		0.87	%		1.41	%		17.65	%
	$  7.79		(4.01	)%		$	6,560		1.31	%		0.96	%		1.41	%		9.96	%
	$  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	%
	$  9.78		7.77	%		$	2,381		1.15	%		0.57	%		1.40	%		5.14	%
	$  9.12		11.04	%		$	2,986		1.28	%		0.53	%		1.41	%		96.94	%
	$  8.26		18.19	%		$	4,346		1.43	%		0.52	%		1.43	%		20.21	%
	$  7.03		(5.68	)%		$	5,521		1.33	%		0.52	%		1.43	%		9.06	%
	$  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	%

101

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)(a)			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 Large Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$13.81		0.03			2.24			2.27			(0.05	)		—			—			(0.05	)
Year Ended September 30, 2013		$12.49		0.03			1.32			1.35			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2012		$  9.67		0.03			2.82			2.85			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2011		$10.28		0.01			(0.59	)		(0.58	)		(0.03	)		—			—			(0.03	)
Year Ended September 30, 2010		$  9.85		0.02			0.45			0.47			(0.04	)		—			—			(0.04	)
Year Ended September 30, 2009		$11.08		0.04			(1.21	)		(1.17	)		(0.06	)		—			—			(0.06	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2014 (Unaudited)		$17.72		(0.03	)	��	1.66			1.63			(0.02	)		(1.20	)		—			(1.22	)
Year Ended September 30, 2013		$13.51		0.01			4.23			4.24			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2012		$10.78		—	(e)		2.76			2.76			(0.03	)		—			—			(0.03	)
Year Ended September 30, 2011		$11.50		(0.05	)		(0.67	)		(0.72	)		—			—			—			—
Year Ended September 30, 2010		$10.34		(0.05	)		1.21			1.16			—	(e)		—			—			—	(e)
Year Ended September 30, 2009		$10.14		(0.05	)		0.26			0.21			(0.01	)		—			—			(0.01	)
Sterling Capital Small Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$14.88		(0.01	)		1.62			1.61			(0.06	)		(1.87	)		—			(1.93	)
Year Ended September 30, 2013		$11.79		(0.05	)		3.29			3.24			—			(0.15	)		—			(0.15	)
Year Ended September 30, 2012		$10.69		(0.06	)		2.14			2.08			—			(0.98	)		—			(0.98	)
Year Ended September 30, 2011		$11.17		(0.15	)		(0.33	)		(0.48	)		—			—			—			—
February 1, 2010 to September 30, 2010(f)		$10.55		(0.01	)		0.64			0.63			(0.01	)		—			—			(0.01	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$19.55		(0.08	)		2.40			2.32			—			(2.28	)		—			(2.28	)
Year Ended September 30, 2013		$17.12		(0.08	)(h)		3.46			3.38			—			(0.95	)		—			(0.95	)
Year Ended September 30, 2012		$14.23		(0.12	)		3.32			3.20			—			(0.31	)		—			(0.31	)
Year Ended September 30, 2011		$14.98		(0.18	)		(0.47	)		(0.65	)		—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010		$13.89		(0.16	)		1.25			1.09			—			—			—			—
Year Ended September 30, 2009		$14.66		(0.06	)		(0.05	)		(0.11	)		—	(e)		(0.57	)		(0.09	)		(0.66	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2014 (Unaudited)		$18.01		0.10			1.06			1.16			(0.10	)		(0.63	)		—			(0.73	)
Year Ended September 30, 2013		$15.92		0.16			2.22			2.38			(0.13	)		(0.16	)		—			(0.29	)
Year Ended September 30, 2012		$13.17		0.13			2.70			2.83			(0.08	)		—			—			(0.08	)
Year Ended September 30, 2011		$12.98		0.15			0.13	(i)		0.28			(0.09	)		—			—			(0.09	)
Year Ended September 30, 2010		$11.37		0.21			1.56			1.77			(0.16	)		—			—			(0.16	)
Year Ended September 30, 2009		$12.30		0.22			(0.99	)		(0.77	)		(0.13	)		(0.03	)		—			(0.16	)
Sterling Capital Long/Short Equity Fund
December 13, 2013 to March 31, 2014 (Unaudited)(f)		$10.00		(0.07	)		0.85			0.78			—			—			—			—
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$  9.24		0.03			0.02			0.05			(0.10	)		—			—			(0.10	)
Year Ended September 30, 2013		$  9.47		0.09			(0.09	)		—			(0.23	)		—			—			(0.23	)
February 1, 2012 to September 30, 2012(f)		$  9.45		0.08			0.10			0.18			(0.16	)		—			—			(0.16	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) 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 10.72%.

(e) Amount is less than $0.005.

(f) Period from commencement of operations.

(g) 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%.

(h) Net investment loss per share reflects a special dividend which amounted to $0.02 per share. Excluding the special dividend, the ratio of net investment loss to average net assets would have been (0.55)% per share.

(i) 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.

(j) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.78% per share.

See accompanying Notes to the Financial Statements.

102

					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 (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$16.03		16.45	%		$	401		1.81	%		0.39	%		1.91	%		54.42	%
	$13.81		10.88	%(d)		$	199		1.84	%		0.21	%		1.94	%		164.27	%
	$12.49		29.51	%		$	167		1.83	%		0.22	%		1.95	%		68.75	%
	$  9.67		(5.72	)%		$	176		1.84	%		0.13	%		1.99	%		66.29	%
	$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	%
	$18.13		9.54	%		$	3,668		1.92	%		(0.32	)%		1.92	%		11.19	%
	$17.72		31.37	%		$	1,309		1.92	%		0.04	%		1.92	%		34.03	%
	$13.51		25.67	%		$	538		1.94	%		0.03	%		1.95	%		21.62	%
	$10.78		(6.26	)%		$	398		1.93	%		(0.42	)%		1.97	%		38.30	%
	$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	%
	$14.56		11.75	%		$	350		1.99	%		(0.14	)%		1.99	%		39.71	%
	$14.88		27.77	%		$	216		2.03	%		(0.38	)%		2.03	%		176.62	%
	$11.79		20.33	%		$	108		2.08	%		(0.52	)%		2.11	%		32.86	%
	$10.69		(4.30	)%		$	81		2.09	%		(1.13	)%		2.19	%		63.02	%
	$11.17		5.93	%(g)		$	57		2.16	%		(0.11	)%		2.38	%		95.89	%
	$19.59		12.92	%		$	107,054		1.96	%		(0.86	)%		1.96	%		18.29	%
	$19.55		20.69	%		$	94,718		1.99	%		(0.46	)%(h)		1.99	%		53.76	%
	$17.12		22.75	%		$	82,536		2.04	%		(0.75	)%		2.04	%		19.38	%
	$14.23		(4.43	)%		$	71,564		2.03	%		(1.10	)%		2.03	%		31.51	%
	$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	%
	$18.44		6.50	%		$	310,687		1.95	%		1.06	%		1.95	%		11.24	%
	$18.01		15.17	%		$	280,841		1.95	%		0.93	%		1.95	%		30.56	%
	$15.92		21.54	%		$	194,345		1.94	%		0.86	%		1.94	%		21.30	%
	$13.17		2.13	%		$	104,208		1.93	%		1.05	%		1.93	%		16.64	%
	$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	%
	$10.78		7.80	%		$	5		4.10	%(j)		(2.19	)%		4.10	%		85.34	%
	$  9.19		0.57	%		$	574		1.49	%		0.76	%		1.53	%		29.29	%
	$  9.24		(0.03	)%		$	556		1.52	%		1.02	%		1.56	%		56.09	%
	$  9.47		1.90	%		$	216		1.57	%		1.22	%		1.57	%		85.13	%

103

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(a)		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, 2014 (Unaudited)		$	10.27		0.03		0.04			0.07			(0.12	)		—			(0.12	)
Year Ended September 30, 2013		$	10.84		0.08		(0.43	)		(0.35	)		(0.22	)		—			(0.22	)
Year Ended September 30, 2012		$	10.77		0.11		0.17			0.28			(0.21	)		—			(0.21	)
Year Ended September 30, 2011		$	10.79		0.16		0.05			0.21			(0.23	)		—			(0.23	)
Year Ended September 30, 2010		$	10.53		0.21		0.29			0.50			(0.24	)		—			(0.24	)
Year Ended September 30, 2009		$	10.01		0.24		0.55			0.79			(0.27	)		—			(0.27	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.54		0.12		0.15			0.27			(0.15	)		(0.01	)		(0.16	)
Year Ended September 30, 2013		$	11.17		0.21		(0.46	)		(0.25	)		(0.30	)		(0.08	)		(0.38	)
Year Ended September 30, 2012		$	11.07		0.21		0.46			0.67			(0.30	)		(0.27	)		(0.57	)
Year Ended September 30, 2011		$	11.34		0.30		0.01			0.31			(0.37	)		(0.21	)		(0.58	)
Year Ended September 30, 2010		$	10.79		0.34		0.63			0.97			(0.41	)		(0.01	)		(0.42	)
Year Ended September 30, 2009		$	9.89		0.37		0.90			1.27			(0.37	)		—			(0.37	)
Sterling Capital Corporate Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.15		0.12		0.16			0.28			(0.12	)		(0.10	)		(0.22	)
February 1, 2013 to September 30, 2013(d)		$	10.53		0.18		(0.39	)		(0.21	)		(0.17	)		—			(0.17	)
Sterling Capital Securitized Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.84		0.07		0.03			0.10			(0.11	)		—			(0.11	)
February 1, 2013 to September 30, 2013(d)		$	10.16		0.08		(0.23	)		(0.15	)		(0.17	)		—			(0.17	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.67		0.09		0.04			0.13			(0.09	)		—			(0.09	)
Year Ended September 30, 2013		$	11.16		0.16		(0.43	)		(0.27	)		(0.16	)		(0.06	)		(0.22	)
February 1, 2012 to September 30, 2012(d)		$	11.08		0.11		0.09			0.20			(0.12	)		—			(0.12	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.96		0.05		0.10			0.15			(0.05	)		—			(0.05	)
Year Ended September 30, 2013		$	11.56		0.11		(0.45	)		(0.34	)		(0.11	)		(0.15	)		(0.26	)
February 1, 2012 to September 30, 2012(d)		$	11.47		0.09		0.09			0.18			(0.09	)		—			(0.09	)
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.74		0.08		0.07			0.15			(0.08	)		—			(0.08	)
Year Ended September 30, 2013		$	11.35		0.16		(0.53	)		(0.37	)		(0.16	)		(0.08	)		(0.24	)
February 1, 2012 to September 30, 2012(d)		$	11.25		0.11		0.11			0.22			(0.12	)		—			(0.12	)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.85		0.07		0.08			0.15			(0.07	)		—			(0.07	)
Year Ended September 30, 2013		$	11.36		0.13		(0.43	)		(0.30	)		(0.13	)		(0.08	)		(0.21	)
February 1, 2012 to September 30, 2012(d)		$	11.25		0.10		0.11			0.21			(0.10	)		—			(0.10	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	11.79		0.08		0.09			0.17			(0.08	)		—			(0.08	)
Year Ended September 30, 2013(d)		$	12.44		0.15		(0.55	)		(0.40	)		(0.15	)		(0.10	)		(0.25	)
February 1, 2012 to September 30, 2012(d)		$	12.37		0.11		0.07			0.18			(0.11	)		—			(0.11	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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 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) Period from commencement of operations.

See accompanying Notes to the Financial Statements.

104

					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)
	$10.22		0.72	%		$	892		1.68	%		0.63	%		1.68	%		13.53	%
	$10.27		(3.29	)%		$	1,080		1.68	%		0.74	%		1.68	%		66.16	%
	$10.84		2.64	%		$	1,097		1.72	%		1.06	%		1.75	%		71.68	%
	$10.77		1.99	%		$	658		1.71	%		1.54	%		1.83	%		83.62	%
	$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	%
	$10.65		2.60	%		$	4,883		1.56	%		2.26	%		1.58	%		31.31	%
	$10.54		(2.24	)%		$	5,362		1.57	%		1.92	%		1.59	%		149.09	%
	$11.17		6.32	%		$	5,845		1.63	%		1.90	%		1.66	%		110.82	%
	$11.07		2.91	%		$	4,224		1.70	%		2.68	%		1.82	%		131.87	%
	$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	%
	$10.21		2.78	%		$	3		1.58	%		2.35	%		1.58	%		75.78	%
	$10.15		(2.02	)%		$	15		1.59	%		2.58	%		1.59	%		99.48	%
	$  9.83		1.03	%		$	3		1.63	%		1.33	%		1.64	%		64.82	%
	$  9.84		(1.49	)%		$	3		1.64	%		1.17	%		1.64	%		193.21	%
	$10.71		1.24	%		$	68		1.72	%		1.73	%		1.72	%		7.17	%
	$10.67		(2.47	)%		$	67		1.71	%		1.48	%		1.71	%		22.05	%
	$11.16		1.82	%		$	209		1.71	%		1.45	%		1.71	%		16.52	%
	$11.06		1.39	%		$	772		1.70	%		0.94	%		1.70	%		10.97	%
	$10.96		(3.04	)%		$	1,206		1.70	%		0.95	%		1.70	%		70.60	%
	$11.56		1.57	%		$	1,321		1.71	%		1.12	%		1.71	%		34.94	%
	$10.81		1.42	%		$	3,410		1.66	%		1.54	%		1.66	%		6.70	%
	$10.74		(3.27	)%		$	4,776		1.67	%		1.48	%		1.67	%		22.38	%
	$11.35		1.93	%		$	3,251		1.67	%		1.49	%		1.67	%		19.76	%
	$10.93		1.38	%		$	1,466		1.67	%		1.26	%		1.67	%		3.50	%
	$10.85		(2.67	)%		$	899		1.69	%		1.14	%		1.69	%		35.38	%
	$11.36		1.86	%		$	507		1.69	%		1.29	%		1.69	%		26.49	%
	$11.88		1.43	%		$	1,879		1.67	%		1.34	%		1.67	%		7.77	%
	$11.79		(3.25	)%		$	2,687		1.68	%		1.22	%		1.68	%		40.00	%
	$12.44		1.48	%		$	2,884		1.68	%		1.36	%		1.68	%		21.63	%

105

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(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.91		0.07		0.08			0.15			(0.07	)		—			(0.07	)
Year Ended September 30, 2013		$	10.51		0.14		(0.48	)		(0.34	)		(0.14	)		(0.12	)		(0.26	)
February 1, 2012 to September 30, 2012(d)		$	10.38		0.11		0.14			0.25			(0.12	)		—			(0.12	)
Sterling Capital Strategic Allocation Conservative Fund(e)
Six Months Ended March 31, 2014 (Unaudited)		$	9.90		0.08		0.45			0.53			(0.08	)		—			(0.08	)
Year Ended September 30, 2013		$	9.64		0.14		0.28			0.42			(0.16	)		—			(0.16	)
Year Ended September 30, 2012		$	8.71		0.12		0.94			1.06			(0.13	)		—			(0.13	)
Year Ended September 30, 2011		$	9.03		0.15		(0.26	)		(0.11	)		(0.21	)		—			(0.21	)
Year Ended September 30, 2010		$	8.47		0.20		0.57			0.77			(0.21	)		—			(0.21	)
Year Ended September 30, 2009		$	8.41		0.17		0.21			0.38			(0.18	)		(0.14	)		(0.32	)
Sterling Capital Strategic Allocation Balanced Fund(e)
Six Months Ended March 31, 2014 (Unaudited)		$	9.60		0.05		0.59			0.64			(0.07	)		—			(0.07	)
Year Ended September 30, 2013		$	8.98		0.09		0.63			0.72			(0.10	)		—			(0.10	)
Year Ended September 30, 2012		$	7.82		0.08		1.16			1.24			(0.08	)		—			(0.08	)
Year Ended September 30, 2011		$	8.26		0.08		(0.40	)		(0.32	)		(0.12	)		—			(0.12	)
Year Ended September 30, 2010		$	7.68		0.12		0.59			0.71			(0.13	)		—			(0.13	)
Year Ended September 30, 2009		$	7.67		0.11		0.01			0.12			(0.11	)		—			(0.11	)
Sterling Capital Strategic Allocation Growth Fund(e)
Six Months Ended March 31, 2014 (Unaudited)		$	9.09		0.03		0.67			0.70			(0.05	)		—			(0.05	)
Year Ended September 30, 2013		$	8.24		0.04		0.87			0.91			(0.06	)		—			(0.06	)
Year Ended September 30, 2012		$	7.01		0.04		1.24			1.28			(0.05	)		—			(0.05	)
Year Ended September 30, 2011		$	7.50		0.04		(0.46	)		(0.42	)		(0.07	)		—			(0.07	)
Year Ended September 30, 2010		$	6.94		0.08		0.56			0.64			(0.08	)		—			(0.08	)
Year Ended September 30, 2009		$	7.17		0.07		(0.22	)		(0.15	)		(0.08	)		—			(0.08	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) Period from commencement of operations.

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

See accompanying Notes to the Financial Statements.

106

					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)
	$  9.99		1.51	%		$	709		1.67	%		1.42	%		1.67	%		9.78	%
	$  9.91		(3.28	)%		$	764		1.68	%		1.38	%		1.68	%		22.18	%
	$10.51		2.41	%		$	729		1.64	%		1.63	%		1.64	%		26.70	%
	$10.35		5.32	%		$	307		1.18	%		1.58	%		1.43	%		6.66	%
	$  9.90		4.40	%		$	241		1.28	%		1.42	%		1.44	%		60.51	%
	$  9.64		12.23	%		$	207		1.44	%		1.33	%		1.44	%		7.99	%
	$  8.71		(1.30	)%		$	152		1.39	%		1.57	%		1.47	%		8.36	%
	$  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	%
	$10.17		6.70	%		$	601		1.14	%		1.04	%		1.39	%		3.73	%
	$  9.60		8.10	%		$	570		1.25	%		0.94	%		1.41	%		81.00	%
	$  8.98		15.88	%		$	420		1.41	%		0.91	%		1.41	%		17.65	%
	$  7.82		(3.97	)%		$	367		1.35	%		0.93	%		1.42	%		9.96	%
	$  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	%
	$  9.74		7.74	%		$	480		1.15	%		0.66	%		1.40	%		5.14	%
	$  9.09		11.07	%		$	452		1.27	%		0.50	%		1.43	%		96.94	%
	$  8.24		18.29	%		$	294		1.43	%		0.55	%		1.43	%		20.21	%
	$  7.01		(5.78	)%		$	226		1.36	%		0.50	%		1.43	%		9.06	%
	$  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	%

107

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)(a)			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 Large Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$	14.23		0.11			2.31			2.42			(0.11	)		—			—			(0.11	)
Year Ended September 30, 2013		$	12.87		0.16			1.36			1.52			(0.16	)					—			(0.16	)
Year Ended September 30, 2012		$	9.95		0.14			2.92			3.06			(0.14	)		—			—			(0.14	)
Year Ended September 30, 2011		$	10.57		0.14			(0.62	)		(0.48	)		(0.14	)		—			—			(0.14	)
Year Ended September 30, 2010		$	10.13		0.13			0.45			0.58			(0.14	)		—			—			(0.14	)
Year Ended September 30, 2009		$	11.36		0.13			(1.22	)		(1.09	)		(0.14	)		—			—			(0.14	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2014 (Unaudited)		$	18.91		0.05			1.80			1.85			(0.08	)		(1.20	)		—			(1.28	)
Year Ended September 30, 2013		$	14.37		0.17			4.50			4.67			(0.13	)					—			(0.13	)
Year Ended September 30, 2012		$	11.43		0.14			2.94			3.08			(0.14	)		—			—			(0.14	)
Year Ended September 30, 2011		$	12.14		0.08			(0.71	)		(0.63	)		(0.08	)		—			—			(0.08	)
Year Ended September 30, 2010		$	10.86		0.07			1.27			1.34			(0.06	)		—			—			(0.06	)
Year Ended September 30, 2009		$	10.56		0.04			0.29			0.33			(0.03	)		—			—			(0.03	)
Sterling Capital Small Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$	15.34		0.06			1.68			1.74			(0.09	)		(1.87	)		—			(1.96	)
Year Ended September 30, 2013		$	12.08		0.08			3.39			3.47			(0.06	)		(0.15	)		—			(0.21	)
Year Ended September 30, 2012		$	10.82		0.06			2.18			2.24			—			(0.98	)		—			(0.98	)
Year Ended September 30, 2011		$	11.19		(0.02	)		(0.35	)		(0.37	)		—			—			—			—
Year Ended September 30, 2010		$	10.27		0.06			0.92			0.98			(0.06	)		—			—			(0.06	)
Year Ended September 30, 2009		$	9.89		0.02			0.65			0.67			—			(0.29	)		—			(0.29	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$	21.96		0.02			2.72			2.74			(0.04	)		(2.28	)		—			(2.32	)
Year Ended September 30, 2013		$	18.99		0.11	(f)		3.87			3.98			(0.06	)		(0.95	)		—			(1.01	)
Year Ended September 30, 2012		$	15.60		0.04			3.66			3.70			—			(0.31	)		—			(0.31	)
Year Ended September 30, 2011		$	16.25		(0.02	)		(0.53	)		(0.55	)		—			(0.10	)		—			(0.10	)
Year Ended September 30, 2010		$	14.92		(0.02	)		1.35			1.33			—			—			—			—
Year Ended September 30, 2009		$	15.58		0.04			(0.01	)		0.03			—	(g)		(0.58	)		(0.11	)		(0.69	)
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2014 (Unaudited)		$	18.18		0.19			1.08			1.27			(0.19	)		(0.63	)		—			(0.82	)
Year Ended September 30, 2013		$	16.06		0.33			2.25			2.58			(0.30	)		(0.16	)		—			(0.46	)
Year Ended September 30, 2012		$	13.27		0.28			2.74			3.02			(0.23	)		—			—			(0.23	)
Year Ended September 30, 2011		$	13.07		0.29			0.14	(h)		0.43			(0.23	)		—			—			(0.23	)
Year Ended September 30, 2010		$	11.44		0.33			1.57			1.90			(0.27	)		—			—			(0.27	)
Year Ended September 30, 2009		$	12.37		0.32			(0.99	)		(0.67	)		(0.23	)		(0.03	)		—			(0.26	)
Sterling Capital Long/Short Equity Fund
December 13, 2013 to March 31, 2014 (Unaudited)(i)		$	10.00		(0.04	)		0.85			0.81			—			—			—			—
Sterling Capital Ultra Short Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.98		0.04			(0.01	)		0.03			(0.04	)		—			—			(0.04	)
November 30, 2012 to September 30, 2013(i)		$	10.00		0.05			(0.01	)		0.04			(0.06	)		—			—			(0.06	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) 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 11.78%.

(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 9.10%.

(f) Net investment income per share reflects a special dividend which amounted to $0.02 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.45% per share.

(g) Amount is less than $0.005.

(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.

(i) Period from commencement of operations.

(j) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 1.78% per share.

See accompanying Notes to the Financial Statements.

108

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income (loss) to average net assets (c)				Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$16.54		17.02	%		$	225,380		0.81	%			1.37	%		0.91	%		54.42	%
	$14.23		11.94	%(d)		$	194,921		0.84	%			1.23	%		0.94	%		164.27	%
	$12.87		30.89	%		$	189,252		0.83	%			1.22	%		0.95	%		68.75	%
	$  9.95		(4.74	)%		$	156,832		0.83	%			1.18	%		0.98	%		66.29	%
	$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	%
	$19.48		10.05	%		$	688,860		0.91	%			0.56	%		0.91	%		11.19	%
	$18.91		32.65	%		$	548,624		0.92	%			1.03	%		0.92	%		34.03	%
	$14.37		27.00	%		$	340,577		0.93	%			1.02	%		0.95	%		21.62	%
	$11.43		(5.29	)%		$	299,032		0.93	%			0.58	%		0.97	%		38.30	%
	$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	%
	$15.12		12.30	%		$	125,112		0.98	%			0.85	%		0.98	%		39.71	%
	$15.34		29.03	%		$	101,999		1.04	%			0.61	%		1.04	%		176.62	%
	$12.08		21.65	%		$	71,711		1.08	%		��	0.47	%		1.11	%		32.86	%
	$10.82		(3.31	)%		$	64,962		1.08	%			(0.14	)%		1.19	%		63.02	%
	$11.19		9.59	%(e)		$	60,073		1.20	%			0.56	%		1.42	%		95.89	%
	$10.27		8.68	%		$	25,790		1.42	%			0.23	%		1.79	%		89.00	%
	$22.38		13.48	%		$	503,585		0.96	%			0.14	%		0.96	%		18.29	%
	$21.96		21.90	%		$	452,155		0.99	%			0.53	%(f)		0.99	%		53.76	%
	$18.99		23.97	%		$	386,543		1.04	%			0.25	%		1.04	%		19.38	%
	$15.60		(3.46	)%		$	330,913		1.04	%			(0.09	)%		1.04	%		31.51	%
	$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	%
	$18.63		7.04	%		$	959,984		0.95	%			2.06	%		0.95	%		11.24	%
	$18.18		16.33	%		$	936,400		0.95	%			1.92	%		0.95	%		30.56	%
	$16.06		22.80	%		$	635,360		0.94	%			1.86	%		0.94	%		21.30	%
	$13.27		3.17	%		$	392,660		0.93	%			2.06	%		0.93	%		16.64	%
	$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	%
	$10.81		8.10	%		$	81,594		3.11	%(j)			(1.24	)%		3.11	%		85.34	%
	$  9.97		0.34	%		$	39,321		0.46	%			0.74	%		0.46	%		36.15	%
	$  9.98		0.35	%		$	40,625		0.48	%			0.65	%		0.48	%		55.18	%

109

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(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.24		0.08		0.02			0.10			(0.15	)		—			(0.15	)
Year Ended September 30, 2013		$	9.47		0.19		(0.10	)		0.09			(0.32	)		—			(0.32	)
Year Ended September 30, 2012		$	9.36		0.22		0.24			0.46			(0.35	)		—			(0.35	)
Year Ended September 30, 2011		$	9.68		0.20		(0.19	)		0.01			(0.33	)		—			(0.33	)
Year Ended September 30, 2010		$	9.67		0.19		0.09			0.28			(0.27	)		—			(0.27	)
Year Ended September 30, 2009		$	9.54		0.25		0.22			0.47			(0.34	)		—			(0.34	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.30		0.08		0.04			0.12			(0.18	)		—			(0.18	)
Year Ended September 30, 2013		$	10.87		0.19		(0.44	)		(0.25	)		(0.32	)		—			(0.32	)
Year Ended September 30, 2012		$	10.80		0.23		0.16			0.39			(0.32	)		—			(0.32	)
Year Ended September 30, 2011		$	10.82		0.27		0.05			0.32			(0.34	)		—			(0.34	)
Year Ended September 30, 2010		$	10.57		0.32		0.28			0.60			(0.35	)		—			(0.35	)
Year Ended September 30, 2009		$	10.05		0.35		0.55			0.90			(0.38	)		—			(0.38	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.53		0.17		0.16			0.33			(0.21	)		(0.01	)		(0.22	)
Year Ended September 30, 2013		$	11.16		0.32		(0.46	)		(0.14	)		(0.41	)		(0.08	)		(0.49	)
Year Ended September 30, 2012		$	11.06		0.32		0.46			0.78			(0.41	)		(0.27	)		(0.68	)
Year Ended September 30, 2011		$	11.33		0.41		0.01			0.42			(0.48	)		(0.21	)		(0.69	)
Year Ended September 30, 2010		$	10.78		0.46		0.62			1.08			(0.52	)		(0.01	)		(0.53	)
Year Ended September 30, 2009		$	9.89		0.47		0.89			1.36			(0.47	)		—			(0.47	)
Sterling Capital Corporate Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.15		0.17		0.17			0.34			(0.17	)		(0.10	)		(0.27	)
Year Ended September 30, 2013		$	10.70		0.37		(0.44	)		(0.07	)		(0.37	)		(0.11	)		(0.48	)
Year Ended September 30, 2012		$	9.94		0.36		0.77			1.13			(0.36	)		(0.01	)		(0.37	)
June 30, 2011 to September 30, 2011(d)		$	10.00		0.08		(0.07	)		0.01			(0.07	)		—			(0.07	)
Sterling Capital Securitized Opportunities Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.85		0.12		0.02			0.14			(0.15	)		—			(0.15	)
Year Ended September 30, 2013		$	10.29		0.24		(0.34	)		(0.10	)		(0.34	)		—			(0.34	)
Year Ended September 30, 2012		$	10.11		0.26		0.30			0.56			(0.37	)		(0.01	)		(0.38	)
June 30, 2011 to September 30, 2011(d)		$	10.00		0.06		0.12			0.18			(0.07	)		—			(0.07	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.65		0.15		0.03			0.18			(0.14	)		—			(0.14	)
Year Ended September 30, 2013		$	11.15		0.27		(0.44	)		(0.17	)		(0.27	)		(0.06	)		(0.33	)
Year Ended September 30, 2012		$	10.79		0.29		0.39			0.68			(0.29	)		(0.03	)		(0.32	)
Year Ended September 30, 2011		$	10.81		0.32		0.03	(e)		0.35			(0.32	)		(0.05	)		(0.37	)
Year Ended September 30, 2010		$	10.67		0.32		0.24			0.56			(0.32	)		(0.10	)		(0.42	)
Year Ended September 30, 2009		$	9.87		0.35		0.90			1.25			(0.35	)		(0.10	)		(0.45	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.97		0.11		0.10			0.21			(0.11	)		—			(0.11	)
Year Ended September 30, 2013		$	11.58		0.22		(0.46	)		(0.24	)		(0.22	)		(0.15	)		(0.37	)
Year Ended September 30, 2012		$	11.25		0.26		0.41			0.67			(0.26	)		(0.08	)		(0.34	)
Year Ended September 30, 2011		$	11.22		0.31		0.06			0.37			(0.30	)		(0.04	)		(0.34	)
Year Ended September 30, 2010		$	10.99		0.30		0.23			0.53			(0.30	)		—	(f)		(0.30	)
Year Ended September 30, 2009		$	10.06		0.33		1.01			1.34			(0.33	)		(0.08	)		(0.41	)
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.74		0.14		0.08			0.22			(0.14	)		—			(0.14	)
Year Ended September 30, 2013		$	11.36		0.28		(0.54	)		(0.26	)		(0.28	)		(0.08	)		(0.36	)
Year Ended September 30, 2012		$	11.02		0.30		0.40			0.70			(0.29	)		(0.07	)		(0.36	)
Year Ended September 30, 2011		$	11.01		0.31		0.07			0.38			(0.31	)		(0.06	)		(0.37	)
Year Ended September 30, 2010		$	10.87		0.33		0.20			0.53			(0.33	)		(0.06	)		(0.39	)
Year Ended September 30, 2009		$	10.09		0.36		0.88			1.24			(0.36	)		(0.10	)		(0.46	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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) Period from commencement of operations.

(e) 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.

(f) Amount is less than $0.005.

See accompanying Notes to the Financial Statements.

110

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (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)
	$  9.19		1.07	%		$	75,007		0.49	%		1.74	%		0.53	%		29.29	%
	$  9.24		0.98	%		$	62,115		0.52	%		2.08	%		0.56	%		56.09	%
	$  9.47		4.94	%		$	47,235		0.56	%		2.30	%		0.58	%		85.13	%
	$  9.36		0.05	%		$	55,680		0.60	%		2.07	%		0.70	%		120.09	%
	$  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	%
	$10.24		1.13	%		$	28,787		0.68	%		1.65	%		0.68	%		13.53	%
	$10.30		(2.30	)%		$	46,686		0.68	%		1.76	%		0.68	%		66.16	%
	$10.87		3.67	%		$	77,460		0.72	%		2.12	%		0.77	%		71.68	%
	$10.80		3.02	%		$	155,814		0.71	%		2.55	%		0.83	%		83.62	%
	$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	%
	$10.64		3.12	%		$	407,877		0.56	%		3.25	%		0.58	%		31.31	%
	$10.53		(1.26	)%		$	436,641		0.57	%		2.93	%		0.59	%		149.09	%
	$11.16		7.39	%		$	514,368		0.62	%		2.90	%		0.66	%		110.82	%
	$11.06		3.94	%		$	383,070		0.70	%		3.73	%		0.82	%		131.87	%
	$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	%
	$10.22		3.41	%		$	56,034		0.58	%		3.33	%		0.58	%		75.78	%
	$10.15		(0.65	)%		$	85,609		0.51	%		3.54	%		0.59	%		99.48	%
	$10.70		11.54	%		$	92,946		0.34	%		3.52	%		0.59	%		73.74	%
	$  9.94		0.12	%		$	46,328		0.30	%		3.27	%		0.58	%		6.86	%
	$  9.84		1.46	%		$	37,375		0.63	%		2.38	%		0.64	%		64.82	%
	$  9.85		(0.97	)%		$	58,503		0.51	%		2.33	%		0.62	%		193.21	%
	$10.29		5.61	%		$	88,523		0.34	%		2.54	%		0.59	%		113.69	%
	$10.11		1.84	%		$	33,905		0.34	%		2.50	%		0.64	%		26.17	%
	$10.69		1.74	%		$	11,035		0.72	%		2.73	%		0.72	%		7.17	%
	$10.65		(1.59	)%		$	11,859		0.71	%		2.47	%		0.71	%		22.05	%
	$11.15		6.39	%		$	14,546		0.70	%		2.68	%		0.72	%		16.52	%
	$10.79		3.34	%		$	13,757		0.68	%		3.01	%		0.79	%		15.73	%
	$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	%
	$11.07		1.89	%		$	30,347		0.69	%		1.94	%		0.69	%		10.97	%
	$10.97		(2.14	)%		$	34,574		0.70	%		1.94	%		0.70	%		70.60	%
	$11.58		6.05	%		$	33,974		0.70	%		2.31	%		0.72	%		34.94	%
	$11.25		3.44	%		$	25,174		0.67	%		2.77	%		0.78	%		21.89	%
	$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	%
	$10.82		2.01	%		$	150,526		0.66	%		2.52	%		0.66	%		6.70	%
	$10.74		(2.38	)%		$	159,039		0.67	%		2.49	%		0.67	%		22.38	%
	$11.36		6.51	%		$	190,055		0.67	%		2.64	%		0.67	%		19.76	%
	$11.02		3.60	%		$	161,486		0.67	%		2.92	%		0.72	%		15.15	%
	$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	%

111

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(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	10.78		0.12		0.08			0.20			(0.12	)		—			(0.12	)
Year Ended September 30, 2013		$	11.28		0.24		(0.42	)		(0.18	)		(0.24	)		(0.08	)		(0.32	)
Year Ended September 30, 2012		$	10.90		0.27		0.45			0.72			(0.27	)		(0.07	)		(0.34	)
Year Ended September 30, 2011		$	10.86		0.29		0.06			0.35			(0.28	)		(0.03	)		(0.31	)
Year Ended September 30, 2010		$	10.61		0.32		0.25			0.57			(0.32	)		—			(0.32	)
Year Ended September 30, 2009		$	9.89		0.35		0.89			1.24			(0.35	)		(0.17	)		(0.52	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	11.79		0.14		0.09			0.23			(0.14	)		—			(0.14	)
Year Ended September 30, 2013		$	12.44		0.27		(0.55	)		(0.28	)		(0.27	)		(0.10	)		(0.37	)
Year Ended September 30, 2012		$	12.12		0.31		0.39			0.70			(0.31	)		(0.07	)		(0.38	)
Year Ended September 30, 2011		$	12.14		0.34		0.02			0.36			(0.34	)		(0.04	)		(0.38	)
Year Ended September 30, 2010		$	12.07		0.36		0.18			0.54			(0.36	)		(0.11	)		(0.47	)
Year Ended September 30, 2009		$	11.10		0.39		1.06			1.45			(0.39	)		(0.09	)		(0.48	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2014 (Unaudited)		$	9.92		0.12		0.08			0.20			(0.12	)		—			(0.12	)
Year Ended September 30, 2013		$	10.52		0.24		(0.48	)		(0.24	)		(0.24	)		(0.12	)		(0.36	)
Year Ended September 30, 2012		$	10.17		0.29		0.39			0.68			(0.29	)		(0.04	)		(0.33	)
Year Ended September 30, 2011		$	10.18		0.34		—			0.34			(0.34	)		(0.01	)		(0.35	)
Year Ended September 30, 2010		$	10.05		0.36		0.15			0.51			(0.36	)		(0.02	)		(0.38	)
Year Ended September 30, 2009		$	9.37		0.36		0.68			1.04			(0.35	)		(0.01	)		(0.36	)
Sterling Capital Strategic Allocation Conservative Fund(d)
Six Months Ended March 31, 2014 (Unaudited)		$	10.05		0.13		0.45			0.58			(0.11	)		—			(0.11	)
Year Ended September 30, 2013		$	9.79		0.24		0.28			0.52			(0.26	)		—			(0.26	)
Year Ended September 30, 2012		$	8.83		0.22		0.96			1.18			(0.22	)		—			(0.22	)
Year Ended September 30, 2011		$	9.15		0.25		(0.27	)		(0.02	)		(0.30	)		—			(0.30	)
Year Ended September 30, 2010		$	8.58		0.29		0.57			0.86			(0.29	)		—			(0.29	)
Year Ended September 30, 2009		$	8.50		0.30		0.17			0.47			(0.25	)		(0.14	)		(0.39	)
Sterling Capital Strategic Allocation Balanced Fund(d)
Six Months Ended March 31, 2014 (Unaudited)		$	9.83		0.10		0.61			0.71			(0.12	)		—			(0.12	)
Year Ended September 30, 2013		$	9.18		0.18		0.66			0.84			(0.19	)					(0.19	)
Year Ended September 30, 2012		$	8.00		0.17		1.18			1.35			(0.17	)		—			(0.17	)
Year Ended September 30, 2011		$	8.44		0.19		(0.43	)		(0.24	)		(0.20	)		—			(0.20	)
Year Ended September 30, 2010		$	7.83		0.20		0.61			0.81			(0.20	)		—			(0.20	)
Year Ended September 30, 2009		$	7.81		0.24		(0.04	)		0.20			(0.18	)		—			(0.18	)
Sterling Capital Strategic Allocation Growth Fund(d)
Six Months Ended March 31, 2014 (Unaudited)		$	9.37		0.08		0.70			0.78			(0.10	)		—			(0.10	)
Year Ended September 30, 2013		$	8.48		0.13		0.90			1.03			(0.14	)		—			(0.14	)
Year Ended September 30, 2012		$	7.21		0.12		1.27			1.39			(0.12	)		—			(0.12	)
Year Ended September 30, 2011		$	7.70		0.13		(0.49	)		(0.36	)		(0.13	)		—			(0.13	)
Year Ended September 30, 2010		$	7.12		0.15		0.58			0.73			(0.15	)		—			(0.15	)
Year Ended September 30, 2009		$	7.34		0.22		(0.31	)		(0.09	)		(0.13	)		—			(0.13	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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 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) The expense ratios exclude the impact of fees/expenses paid by each underlying fund.

See accompanying Notes to the Financial Statements.

112

					Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (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)
	$10.86		1.89	%		$	48,265		0.68	%		2.29	%		0.68	%		3.50	%
	$10.78		(1.62	)%		$	49,340		0.69	%		2.17	%		0.69	%		35.38	%
	$11.28		6.68	%		$	52,526		0.70	%		2.41	%		0.70	%		26.49	%
	$10.90		3.37	%		$	39,863		0.71	%		2.68	%		0.76	%		25.83	%
	$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	%
	$11.88		1.94	%		$	76,080		0.66	%		2.32	%		0.66	%		7.77	%
	$11.79		(2.28	)%		$	81,703		0.68	%		2.23	%		0.68	%		40.00	%
	$12.44		5.87	%		$	91,770		0.68	%		2.50	%		0.68	%		21.63	%
	$12.12		3.11	%		$	78,535		0.68	%		2.90	%		0.73	%		15.33	%
	$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	%
	$10.00		2.02	%		$	68,500		0.67	%		2.42	%		0.67	%		9.78	%
	$  9.92		(2.30	)%		$	68,936		0.68	%		2.38	%		0.68	%		22.18	%
	$10.52		6.85	%		$	85,125		0.68	%		2.85	%		0.68	%		26.70	%
	$10.17		3.48	%		$	72,451		0.69	%		3.44	%		0.69	%		23.34	%
	$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	%
	$10.52		5.81	%		$	2,297		0.18	%		2.46	%		0.42	%		6.66	%
	$10.05		5.35	%		$	3,153		0.29	%		2.42	%		0.44	%		60.51	%
	$  9.79		13.47	%		$	3,346		0.44	%		2.33	%		0.44	%		7.99	%
	$  8.83		(0.31	)%		$	3,954		0.37	%		2.61	%		0.47	%		8.36	%
	$  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	%
	$10.42		7.27	%		$	254		0.14	%		2.01	%		0.39	%		3.73	%
	$  9.83		9.28	%		$	321		0.26	%		1.85	%		0.39	%		81.00	%
	$  9.18		16.94	%		$	474		0.42	%		1.98	%		0.42	%		17.65	%
	$  8.00		(3.02	)%		$	475		0.29	%		2.13	%		0.41	%		9.96	%
	$  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	%
	$10.05		8.33	%		$	817		0.15	%		1.59	%		0.40	%		5.14	%
	$  9.37		12.27	%		$	1,007		0.28	%		1.46	%		0.42	%		96.94	%
	$  8.48		19.40	%		$	936		0.43	%		1.54	%		0.43	%		20.21	%
	$  7.21		(4.86	)%		$	1,127		0.32	%		1.62	%		0.43	%		9.06	%
	$  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	%

113

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, 2014 (Unaudited)		$18.47		0.01			1.75			1.76			(0.08	)		(1.20	)		(1.28	)
Year Ended September 30, 2013		$14.20		(0.18	)		4.51			4.33			(0.06	)		—			(0.06	)
Year Ended September 30, 2012		$11.36		0.08			2.90			2.98			(0.14	)		—			(0.14	)
Year Ended September 30, 2011		$12.12		0.05			(0.73	)		(0.68	)		(0.08	)		—			(0.08	)
February 1, 2010 to September 30, 2010(e)		$11.11		0.03			1.01			1.04			(0.03	)		—			(0.03	)
Sterling Capital Small Cap Value Diversified Fund
Six Months Ended March 31, 2014 (Unaudited)		$15.21		0.04			1.66			1.70			(0.09	)		(1.87	)		(1.96	)
Year Ended September 30, 2013		$12.03		0.03			3.36			3.39			(0.06	)		(0.15	)		(0.21	)
Year Ended September 30, 2012		$10.79		0.05			2.17			2.22			—			(0.98	)		(0.98	)
Year Ended September 30, 2011		$11.18		(0.02	)		(0.37	)		(0.39	)		—			—			—
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, 2014 (Unaudited)		$21.72		(0.04	)		2.70			2.66			—			(2.28	)		(2.28	)
Year Ended September 30, 2013		$18.83		0.01	(g)		3.83			3.84			—			(0.95	)		(0.95	)
Year Ended September 30, 2012		$15.54		(0.04	)		3.64			3.60			—			(0.31	)		(0.31	)
Year Ended September 30, 2011		$16.26		(0.11	)		(0.51	)		(0.62	)		—			(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, 2014 (Unaudited)		$18.04		0.14			1.07			1.21			(0.14	)		(0.63	)		(0.77	)
Year Ended September 30, 2013		$15.95		0.24			2.22			2.46			(0.21	)		(0.16	)		(0.37	)
Year Ended September 30, 2012		$13.19		0.20			2.72			2.92			(0.16	)		—			(0.16	)
Year Ended September 30, 2011		$13.03		0.24			0.13			0.37			(0.21	)		—			(0.21	)
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, 2014 (Unaudited)		$10.48		0.14			0.16			0.30			(0.18	)		(0.01	)		(0.19	)
Year Ended September 30, 2013		$11.11		0.25			(0.45	)		(0.20	)		(0.35	)		(0.08	)		(0.43	)
Year Ended September 30, 2012		$11.02		0.26			0.46			0.72			(0.36	)		(0.27	)		(0.63	)
Year Ended September 30, 2011		$11.32		0.37			(0.03	)		0.34			(0.43	)		(0.21	)		(0.64	)
February 1, 2010 to September 30, 2010(e)		$10.87		0.25			0.50			0.75			(0.30	)		—			(0.30	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). 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%.

(g) Net investment income per share reflects a special dividend which amounted to $0.02 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been (0.05)% per share.

See accompanying Notes to the Financial Statements.

114

					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 loss to average net assets(c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$18.95		9.79	%		$	—	(d)		1.39	%		0.07	%		1.39	%		11.19	%
	$18.47		30.65	%		$	—	(d)		1.42	%		(1.04	)%		1.42	%		34.03	%
	$14.20		26.17	%		$	—	(d)		1.44	%		0.59	%		1.44	%		21.62	%
	$11.36		(5.71	)%		$	—	(d)		1.44	%		0.36	%		1.56	%		38.30	%
	$12.12		9.47	%		$	—	(d)		1.44	%		0.42	%		1.68	%		45.02	%
	$14.95		12.11	%		$	—	(d)		1.51	%		0.54	%		1.51	%		39.71	%
	$15.21		28.48	%		$	—	(d)		1.55	%		0.24	%		1.55	%		176.62	%
	$12.03		21.49	%		$	—	(d)		1.57	%		0.44	%		1.59	%		32.86	%
	$10.79		(3.49	)%		$	—	(d)		1.57	%		(0.12	)%		1.58	%		63.02	%
	$11.18		6.46	%(f)		$	—	(d)		1.65	%		0.82	%		3.44	%		95.89	%
	$22.10		13.22	%		$	509			1.46	%		(0.36	)%		1.46	%		18.29	%
	$21.72		21.28	%		$	450			1.49	%		0.04	%(g)		1.49	%		53.76	%
	$18.83		23.41	%		$	357			1.54	%		(0.25	)%		1.54	%		19.38	%
	$15.54		(3.95	)%		$	289			1.54	%		(0.62	)%		1.54	%		31.51	%
	$16.26		6.20	%		$	—	(d)		1.54	%		(0.29	)%		1.57	%		25.65	%
	$18.48		6.78	%		$	3,115			1.45	%		1.57	%		1.45	%		11.24	%
	$18.04		15.69	%		$	2,781			1.45	%		1.40	%		1.45	%		30.56	%
	$15.95		22.19	%		$	1,454			1.44	%		1.35	%		1.44	%		21.30	%
	$13.19		2.74	%		$	604			1.43	%		1.72	%		1.43	%		16.64	%
	$13.03		10.76	%		$	—	(d)		1.45	%		2.86	%		1.49	%		21.63	%
	$10.59		2.88	%		$	6			1.06	%		2.71	%		1.07	%		31.31	%
	$10.48		(1.83	)%		$	5			1.07	%		2.34	%		1.08	%		149.09	%
	$11.11		6.79	%		$	6			1.12	%		2.41	%		1.16	%		110.82	%
	$11.02		3.24	%		$	6			1.20	%		3.32	%		1.33	%		131.87	%
	$11.32		7.03	%		$	42			1.21	%		3.45	%		1.37	%		122.94	%

115

Sterling Capital Funds

Notes to Financial Statements (Unaudited)

March 31, 2014

  1. Organization:

Sterling Capital 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 of the date of these financial statements, the Trust offers shares of Sterling Capital Large Cap Value Diversified Fund (formerly known as Sterling Capital Select Equity Fund), Sterling Capital Mid Value Fund, Sterling Capital Small Cap Value Diversified Fund (formerly known as Sterling Capital Small Value Fund), Sterling Capital Special Opportunities Fund, Sterling Capital Equity Income Fund, Sterling Capital Long/Short Equity Fund, Sterling Capital Ultra Short Bond Fund, Sterling Capital Short Duration Bond Fund (formerly known as Sterling Capital Short-Term Bond Fund), Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Total Return Bond Fund, Sterling Capital Corporate Fund, Sterling Capital Securitized Opportunities Fund, 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, Sterling Capital Strategic Allocation Conservative Fund, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund (referred to individually as a “Fund” and collectively as the “Funds”). 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 and Sterling Capital West Virginia Intermediate Tax-Free Fund are referred to as the “Tax-Free Funds.” Sterling Capital Strategic Allocation Conservative Fund, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund are referred to as the “Funds of Funds.” The Funds, excluding the Funds of Funds, are referred to as the “Variable Net Asset Value Funds.” The Funds of Funds invest in underlying mutual funds as opposed to individual securities.

All Funds, other than 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, 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, 2014, 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. Sterling Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund converted Class S Shares into Institutional Shares effective February 1, 2013. Sterling Capital Mid Value Fund, Sterling Capital Small Cap Value Diversified Fund, Sterling Capital Special Opportunities Fund, Sterling Capital Equity Income Fund and Sterling Capital Total Return Bond Fund offer Class R Shares. 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 Sterling Capital Ultra Short Bond Fund, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Corporate Fund, Sterling Capital Securitized Opportunities Fund, and the Tax-Free Funds, have a maximum sales charge of 5.75% as a percentage of original purchase price. Class A Shares of Sterling Capital Ultra Short Bond Fund have a maximum sales charge of 0.50%, and Class A Shares of Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Corporate Fund, Sterling Capital Securitized Opportunities Fund, and the Tax-Free Funds have a maximum sales charge of 2.00%, 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 for all Funds except the Tax-Free Funds, Sterling Capital Intermediate U.S. Government Fund and Sterling Capital Short Duration Bond Fund. With respect to Tax-Free Funds, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Short Duration Bond Fund, Sterling Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund, sales of Class A shares over $500,000 are not subject to a sales load but will be subject to a CDSC of 0.50% of the purchase price if redeemed within 18 months of 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. The Class B Shares of 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. 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.

116

Sterling Capital Funds

Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

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 preparation of their financial statements. The policies are in conformity with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of these 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 in securities 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 Net Asset Value Funds may also use an independent pricing service approved by the Board of Trustees (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 fair 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 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:

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

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

• Level 3 – based on 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, 2014, there were no significant changes to the valuation policies and procedures.

117

Sterling Capital Funds

Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

The summary of inputs used to determine the fair value of each Fund’s investments as of March 31, 2014 is as follows:

	Level 1– Quoted Prices		Level 2– Other Significant Observable Inputs		Level 3– Significant Unobservable Inputs		Total
Assets:
Investments in Securities
Sterling Capital Large Cap Value Diversified Fund	$	259,855,356(a)	$	—		$—	$	259,855,356
Sterling Capital Mid Value Fund		738,902,092(a)		—		—		738,902,092
Sterling Capital Small Cap Value Diversified Fund		136,104,343(a)		—		—		136,104,343
Sterling Capital Special Opportunities Fund		946,307,280(a)		—		—		946,307,280
Sterling Capital Equity Income Fund		2,010,264,876(a)		—		—		2,010,264,876
Sterling Capital Long/Short Equity Fund		80,316,370(a)		—		—		80,316,370
Sterling Capital Ultra Short Bond Fund		230,479(b)		57,588,071(a)		—		57,818,550
Sterling Capital Short Duration Bond Fund		1,770,765(b)		83,992,930(a)		—		85,763,695
Sterling Capital Intermediate U.S. Government Fund		857,921(b)		38,253,628(a)		—		39,111,549
Sterling Capital Total Return Bond Fund		17,218,679(b)		434,792,767(a)		—		452,011,446
Sterling Capital Corporate Fund		1,927,145(b)		53,808,974(a)		—		55,736,119
Sterling Capital Securitized Opportunities Fund		1,011,024(b)		36,423,515(a)		—		37,434,539
Sterling Capital Kentucky Intermediate Tax-Free Fund		348,181(b)		15,752,108(a)		—		16,100,289
Sterling Capital Maryland Intermediate Tax-Free Fund		665,731(b)		37,283,730(a)		—		37,949,461
Sterling Capital North Carolina Intermediate Tax-Free Fund		3,541,764(b)		197,170,881(a)		—		200,712,645
Sterling Capital South Carolina Intermediate Tax-Free Fund		4,689,170(b)		62,980,238(a)		—		67,669,408
Sterling Capital Virginia Intermediate Tax-Free Fund		2,280,977(b)		119,036,579(a)		—		121,317,556
Sterling Capital West Virginia Intermediate Tax-Free Fund		2,867,404(b)		101,724,642(a)		—		104,592,046
Sterling Capital Strategic Allocation Conservative Fund		18,923,054(a)		—		—		18,923,054
Sterling Capital Strategic Allocation Balanced Fund		36,844,438(a)		—		—		36,844,438
Sterling Capital Strategic Allocation Growth Fund		27,579,600(a)		—		—		27,579,600
Liabilities:
Investments Sold Short
Sterling Capital Long/Short Equity Fund	$	26,624,176(a)	$	—		$—	$	26,624,176
Other Financial Instruments-
Written Options (Equity Risk)
Sterling Capital Special Opportunities Fund (c)		2,422,350		—		—		2,422,350
Sterling Capital Equity Income Fund (c)		745,000		—		—		745,000

(a)   Industries, countries or security types are disclosed in the Schedules of Portfolio Investments.

(b)   Represents money market funds and/or certain preferred stocks.

(c)   Other financial instruments are written options shown at value.

The Funds’ policy is to recognize transfers in and transfers out as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the period ended March 31, 2014.

Cash and Cash Equivalents — The Funds consider liquid assets deposited with a bank, and certain short term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Fund expenses or investments. At March 31, 2013, the Funds invested their cash in the Federated Treasury Obligations Fund.

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).

Derivative Instruments Categorized by Risk Exposure — The Fund’s derivative contracts held at March 31, 2014, are not accounted for as hedging instruments under U.S. GAAP. 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, 2014:

118

Sterling Capital Funds

Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

Fair Values of Derivative Instruments	Statements of Assets and Liabilities Location	Sterling Capital Special Opportunities Fund	Sterling Capital Equity Income Fund
Liabilities
Equity contracts	Call options written	$2,422,350	$745,000

The effect of derivative financial instruments on the Statements of Operations for the period ended March 31, 2014:

Net Realized Gain (Loss)	Sterling Capital Special Opportunities Fund			Sterling Capital Equity Income Fund				Sterling Capital Long/Short Equity Fund
Options (equity contracts)*		$	536,005		$	(133,875	)		$	22,756

*   Purchased options gain/loss are included in realized gain (loss) on investments.

Net Change in Unrealized Appreciation (Depreciation)	Sterling Capital Special Opportunities Fund				Sterling Capital Equity Income Fund
Written options (equity contracts)		$	(191,257	)		$	225,481

For the period ended March 31, 2014, the average quarterly balance of derivative financial instruments were as follows:

	Sterling Capital Special Opportunities Fund			Sterling Capital Equity Income Fund			Sterling Capital Long/Short Equity Fund
Options (Equity Risk)
Average number of written option contracts			6,460			1,000			—
Average premium of written option contracts		$	1,500,312		$	485,240		$	—
Average number of purchased option contracts			—			—			760
Average premium of purchased option contracts		$	—		$	—		$	100,012

Distributions to Shareholders — Dividends from net investment income are declared daily and paid monthly for Sterling Capital Ultra Short Bond Fund, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Total Return Bond Fund, Sterling Capital Corporate Bond Fund, Sterling Capital Securitized Opportunities Fund and the Tax-Free Funds. Dividends from net investment income are declared and paid quarterly for Sterling Capital Large Cap Value Diversified Fund, Sterling Capital Mid Value Fund, Sterling Capital Small Cap Value Diversified Fund, Sterling Capital Special Opportunities Fund, 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 for Sterling Capital Long/Short Equity Fund are declared and paid annually. 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.

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 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.

119

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March 31, 2014

Mortgage Dollar Rolls — The Variable Net Asset Value Funds 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.

Offering Costs — Offering costs are amortized on a straight-line basis over one year from each Fund’s respective commencement of operations. In the event that any of the initial shares are redeemed during the period of amortization of the Fund’s offering costs, the redemption proceeds will be reduced by any such unamortized offering costs in the same proportion as the number of shares being redeemed bears to the number of those shares outstanding at the time of redemption.

Options Contracts — Sterling Capital Special Opportunities Fund and Sterling Capital Equity Income Fund write (sell) “covered” call options on securities and purchase options on securities to close out options previously written by them. Sterling Capital Long/Short Equity Fund purchase call and put options 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 depreciation of the contract (as the writer).

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, 2014 are as follows:

	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		4,210		$	719,815			—		$	—
Options written		14,650			2,959,588			4,500			1,712,978
Options closed		(7,000	)		(1,658,113	)		(2,000	)		(645,499	)
Options expired		(1,000	)		(75,585	)		(500	)		(96,998	)
Options exercised		(1,000	)		(161,697	)		—			—
Balance at end of period		9,860		$	1,784,008			2,000		$	970,481

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March 31, 2014

The following is a summary of written call options outstanding as of March 31, 2014:

	Number of Contracts		Value
Sterling Capital Special Opportunities Fund
Apple, Inc., $550.00, 4/19/14		60	$	(18,600	)
Akamai Technologies, Inc., $62.50, 5/17/14		500		(108,000	)
Akamai Technologies, Inc., $65.00, 5/17/14		500		(76,000	)
EOG Resources, Inc., $195.00, 7/19/14		1,150		(1,270,750	)
Halliburton Co., $65.00, 7/19/14		1,000		(89,000	)
Myriad Genetics, Inc., $35.00, 5/17/14		2,000		(400,000	)
Myriad Genetics, Inc., $39.00, 5/17/14		500		(35,000	)
Robert Half International, Inc., $45.00, 6/21/14		2,000		(150,000	)
UnitedHealth Group, Inc., $82.50, 6/21/14		1,000		(275,000	)
		8,710	$	(2,422,350	)
Sterling Capital Equity Income Fund
Time Warner Cable, Inc., $140.00, 7/19/14		750	$	(315,000	)
Time Warner Cable, Inc., $145.00, 7/19/14		500		(115,000	)
Time Warner Cable, Inc., $145.00, 10/18/14		750		(315,000	)
		2,000	$	(745,000	)

Recent Accounting Standards — In June 2013, the Financial Accounting Standards Board issued Accounting Standard Update No. 2013-08 (“ASU No. 2013-08”) that creates a two-tiered approach to assess whether an entity is an investment company. ASU No. 2013-08 will also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. ASU No. 2013-08 is effective for financial statements with fiscal years beginning after December 15, 2013 and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statement disclosures.

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.

Short Sales — Sterling Capital Long/Short Equity Fund enters into short sale transactions in which it sells a security it may not hold in anticipation of a decline in the market price of that security. When the Fund makes a short sale, it will borrow the security sold short and deliver the security to the counterparty to which it sold the security short. An amount equal to the proceeds received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund is required to repay the counterparty any dividends received on the security sold short, which is shown as dividend expense in the Statements of Operations. The Fund may pay a fee on the assets borrowed from the counterparty, which is shown as service fees on securities sold short in the Statements of Operations. The Fund maintains a segregated account of deposits of cash with the broker-dealer as collateral for the short sales. The Fund may receive interest on the cash collateral deposited with the broker-dealer. These positions are speculative and may be more risky than “long” positions because the cost of the replacement security or derivative is unknown. Short selling strategies typically reduce returns relative to “long only” strategies during rising equity markets, and involve risk of significant losses; potential loss on uncovered short positions is unlimited. Short selling strategies also involve significant transaction costs.

When-Issued and Forward Commitments — The Funds may purchase securities on a “when-issued” basis. Sterling Capital Large Cap Value Diversified Fund, Sterling Capital Mid Value Fund, Sterling Capital Small Cap Value Diversified Fund, Sterling Capital Special Opportunities Fund, and Sterling Capital Equity Income Fund may also purchase or sell securities

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March 31, 2014

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.

  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 year ended March 31, 2014 were as follows:

	Purchases		Sales
Sterling Capital Large Cap Value Diversified Fund	$	130,006,445	$	135,402,719
Sterling Capital Mid Value Fund		187,729,559		72,590,788
Sterling Capital Small Cap Value Diversified Fund		58,639,693		49,811,338
Sterling Capital Special Opportunities Fund		165,156,309		150,819,715
Sterling Capital Equity Income Fund		329,527,394		206,722,131
Sterling Capital Long/Short Equity Fund		100,866,691		63,937,661
Sterling Capital Ultra Short Bond Fund		26,190,838		20,264,908
Sterling Capital Short Duration Bond Fund		28,598,346		17,717,124
Sterling Capital Intermediate U.S. Government Fund		292,875		7,133,556
Sterling Capital Total Return Bond Fund		125,320,903		153,755,321
Sterling Capital Corporate Fund		30,955,320		62,016,883
Sterling Capital Securitized Opportunities Fund		23,165,648		43,175,850
Sterling Capital Kentucky Intermediate Tax-Free Fund		1,185,751		2,521,406
Sterling Capital Maryland Intermediate Tax-Free Fund		4,316,373		8,756,481
Sterling Capital North Carolina Intermediate Tax-Free Fund		13,615,988		29,158,759
Sterling Capital South Carolina Intermediate Tax-Free Fund		2,290,095		9,410,340
Sterling Capital Virginia Intermediate Tax-Free Fund		9,626,229		19,990,368
Sterling Capital West Virginia Intermediate Tax-Free Fund		9,929,433		10,427,458
Sterling Capital Strategic Allocation Conservative Fund		1,215,396		1,476,000
Sterling Capital Strategic Allocation Balanced Fund		2,499,117		1,318,000
Sterling Capital Strategic Allocation Growth Fund		1,941,886		1,360,000

Purchases and sales of U.S. Government Securities (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2014 were as follows:

	Purchases		Sales
Sterling Capital Short Duration Bond Fund	$	7,217,875	$	6,225,225
Sterling Capital Intermediate U.S. Government Fund		5,879,063		17,373,925
Sterling Capital Total Return Bond Fund		20,690,262		42,458,435
Sterling Capital Corporate Fund		23,984,720		23,343,457
Sterling Capital Securitized Opportunities Fund		4,807,171		7,242,619

  4. Investments in Affiliated Issuers:

A summary of the Funds’ transactions in the shares of affiliated issuers during the period ended March 31, 2014 is as follows:

	Shares Held at September 30, 2013		Shares Purchased		Shares Sold		Shares Held at March 31, 2014		Value at March 31, 2014			Dividend Income October 1, 2013- March 31, 2014			Distributions and Net Realized Gain (Loss) October 1, 2013- March 31, 2014
Sterling Capital Strategic Allocation Conservative Fund
Sterling Capital Equity Income Fund, Institutional Shares		207,334		15,764		17,440		205,658		$	3,831,400		$	37,299		$	143,467
Sterling Capital Special Opportunities Fund, Institutional Shares		174,641		18,025		23,150		169,516			3,793,772			7,676			411,318
Sterling Capital Total Return Bond Fund, Institutional Shares		1,030,767		52,706		59,396		1,024,077		$	10,896,174		$	206,352		$	(17,160	)
Total Affiliates		1,412,742		86,495		99,986		1,399,251		$	18,521,346		$	251,327		$	537,625

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Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

	Shares Held at September 30, 2013		Shares Purchased		Shares Sold		Shares Held at March 31, 2014		Value at March 31, 2014			Dividend Income October 1, 2013- March 31, 2014			Distributions and Net Realized Gain (Loss) October 1, 2013- March 31, 2014
Sterling Capital Strategic Allocation Balanced Fund
Sterling Capital Equity Income Fund, Institutional Shares		573,512		41,822		16,762		598,572		$	11,151,402		$	109,876		$	369,771
Sterling Capital Special Opportunities Fund, Institutional Shares		483,055		52,651		42,261		493,445			11,043,298			22,657			1,148,238
Sterling Capital Total Return Bond Fund, Institutional Shares		1,245,350		62,223		5,660		1,301,913			13,852,359			262,217			8,568
Total Affiliates		2,301,917		156,696		64,683		2,393,930		$	36,047,059		$	394,750		$	1,526,577
Sterling Capital Strategic Allocation Growth Fund
Sterling Capital Equity Income Fund, Institutional Shares		541,014		35,069		16,625		559,458		$	10,422,697		$	102,375		$	349,387
Sterling Capital Special Opportunities Fund, Institutional Shares		455,702		48,854		43,399		461,157			10,320,701			21,030			1,076,217
Sterling Capital Total Return Bond Fund, Institutional Shares		568,819		28,560		8,152		589,227			6,269,376			118,235			1,063
Total Affiliates		1,565,535		112,483		68,176		1,609,842		$	27,012,774		$	241,640		$	1,426,667

  5. Related Party Transactions:

Under the terms of the investment advisory agreement, 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 are included on the Statements of Operations as “Less expenses waived by the Investment Advisor.” Information regarding these transactions is as follows for the period ended March 31, 2014:

	Prior to February 1, 2014						Effective February 1, 2014
				Fee Rate after						Fee Rate after
	Contractual			Contractual			Contractual			Contractual
	Fee Rate			Waivers			Fee Rate			Waivers
Sterling Capital Large Cap Value Diversified Fund		0.70	%		0.60	%(1)		0.70	%		0.60	%(2)
Sterling Capital Mid Value Fund		0.70	%		0.70	%		0.70	%		0.70	%
Sterling Capital Small Cap Value Diversified Fund		0.75	%		0.75	%		0.75	%		0.75	%
Sterling Capital Special Opportunities Fund		0.75	%		0.75	%		0.75	%(3)		0.75	%(3)
Sterling Capital Equity Income Fund		0.70	%		0.70	%		0.70	%(4)		0.70	%(4)
Sterling Capital Long/Short Equity Fund		1.50	%		1.50	%		1.50	%		1.50	%
Sterling Capital Ultra Short Bond Fund		0.20	%		0.20	%		0.20	%		0.20	%
Sterling Capital Short Duration Bond Fund		0.30	%		0.25	%(1)		0.30	%		0.28	%(2)
Sterling Capital Intermediate U.S. Government Fund		0.43	%		0.43	%		0.43	%		0.43	%
Sterling Capital Total Return Bond Fund		0.37	%		0.34	%(1)		0.37	%		0.37	%
Sterling Capital Corporate Fund		0.35	%		0.35	%		0.35	%		0.35	%
Sterling Capital Securitized Opportunities Fund		0.35	%		0.35	%		0.35	%		0.31	%(2)
Sterling Capital Kentucky Intermediate Tax-Free Fund		0.45	%		0.45	%		0.45	%		0.45	%
Sterling Capital Maryland Intermediate Tax-Free Fund		0.45	%		0.45	%		0.45	%		0.45	%
Sterling Capital North Carolina Intermediate Tax-Free Fund		0.45	%		0.45	%		0.45	%		0.45	%
Sterling Capital South Carolina Intermediate Tax-Free Fund		0.45	%		0.45	%		0.45	%		0.45	%
Sterling Capital Virginia Intermediate Tax-Free Fund		0.45	%		0.45	%		0.45	%		0.45	%
Sterling Capital West Virginia Intermediate Tax-Free Fund		0.45	%		0.45	%		0.45	%		0.45	%

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Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

	Prior to February 1, 2014						Effective February 1, 2014
	Contractual Fee Rate			Fee Rate after Contractual Waivers			Contractual Fee Rate			Fee Rate after Contractual Waivers
Sterling Capital Strategic Allocation Conservative Fund		0.25	%		0.00	%(1)		0.25	%		0.00	%(2)
Sterling Capital Strategic Allocation Balanced Fund		0.25	%		0.00	%(1)		0.25	%		0.00	%(2)
Sterling Capital Strategic Allocation Growth Fund		0.25	%		0.00	%(1)		0.25	%		0.00	%(2)

(1)     Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from March 1, 2013 through January 31, 2014.

(2)     Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2014 through January 31, 2015.

(3)     The Fund pays 0.75% on the first $1 billion of average net assets, 0.70% on the next $1 billion of average net assets, 0.65% on the next $2 billion of     average net assets, and 0.60% of average net assets over $4 billion.

(4)     The Fund pays 0.70% on the first $2 billion of average net assets, 0.65% on the next $2 billion of average net assets, and 0.60% of average net assets     over $4 billion.

Pursuant to sub-advisory agreements with Sterling Capital, Highland Capital Healthcare Advisors, L.P., Gator Capital Management, Lucas Capital Management LLC, Sanborn Kilcollin Partners, LLC serves as the sub-advisors to the Sterling Capital Long/Short Equity Fund, subject to the general supervision of the Funds’ Board of Trustees 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 (except the Funds of 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 at a rate of 0.1075% 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. 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.”

For the period ended March 31, 2014, the Funds paid $68,049 in brokerage fees to BB&T Securities LLC 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, LLC (“the Distributor”) serves as distributor to the Funds pursuant to an underwriting agreement. The Plan provides for payments to the Distributor of up to 0.25%, 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. The Distributor is entitled to receive commissions on sales of shares of the Variable Net Asset Value Funds. For the period ended March 31, 2014, the Distributor received $455,777 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, 2014 were $157,637. The fees may be used by the Distributor to pay banks, broker dealers and other institutions, including affiliates of the 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 $44,000 plus $5,000 for each regularly scheduled quarterly meeting attended, $4,000 for each special meeting attended in person and $1,500 for each special meeting attended by telephone, plus reimbursement for certain out of pocket expenses. The Trustee who is an interested person, as defined in the 1940 Act, of the Trust, but not affiliated with Sterling Capital is compensated at the

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Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

annual rate of $44,000 plus $4,000 for each regularly scheduled quarterly meeting attended, $3,200 for each special meeting attended in person and $1,200 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. Committee meeting fees are only paid when such Committee meetings are not held in conjunction with a regular board meeting. Additionally, the Chairman of the Board and the Audit Committee Chairman each receive an annual retainer of $15,000, 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 Trust and the Sterling Capital Variable Insurance Funds based upon relative net assets.

At a meeting held on February 19-20, 2014, the Board approved several changes in Trustee compensation. These changes became effective on April 1, 2014. Pursuant to these changes, (i) each Trustee who is not an interested person of the Trust will be compensated at an annual rate of $70,000, (ii) the Chairman of the Board will receive an annual retainer of $20,000, and (iii) the Chairman of the Nominating Committee will receive an annual retainer of $6,000 in lieu of a fee for each meeting over which he or she presides as Chairman. Other than as noted above, Trustee compensation remains the same.

  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 Trust, pursuant to an umbrella credit agreement (“the Agreement”). The primary purpose of the Agreement is to allow the Trust to avoid security liquidations that Sterling Capital believes are unfavorable to shareholders. Under the Agreement, an aggregate commitment amount of $50,000,000 has been made available for use by all funds of the Trust. Outstanding principal amounts under the Agreement bear interest at a rate per annum equal to the Prime Rate minus two percent (2%), but never at a rate of less than one percent (1%) per annum. The Agreement expires on March 31, 2015. During the period ended March 31, 2014, the lines of credit were not utilized by the Funds.

  8. Federal Tax Information:

It is the policy of each Fund to continue to qualify as a regulated investment company (“RIC”) by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code of 1986, as amended, 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 was required in the Funds’ financial statements.

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. 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 was required in the Funds’ financial statements. The Funds’ federal income and 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.

Under the Regulated Investment Company Modernization Act of 2010, capital losses originating in taxable years beginning after December 22, 2010 (“post-enactment capital losses”) are carried forward indefinitely. Furthermore, post-enactment capital losses will retain their character as either short-term or long-term capital losses rather than being considered all short-term capital losses as under previous law.

125

Sterling Capital Funds

Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

At September 30, 2013, 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:

	Amount With No Expiration*
	Short-term			Long-term
	Losses			Losses			Amount			Expires
Sterling Capital Large Cap Value Diversified Fund		$	—		$	—		$	53,582,400		2017
Sterling Capital Large Cap Value Diversified Fund			—			—			10,325,708		2018
Sterling Capital Mid Value Fund			—			—			12,708,364		2017
Sterling Capital Small Cap Value Diversified Fund			—			—			2,085,627		2016
Sterling Capital Small Cap Value Diversified Fund			—			—			2,655,981		2017
Sterling Capital Ultra Short Bond Fund			14,612			—			—		—
Sterling Capital Short Duration Bond Fund			—			—			1,246,269		2014
Sterling Capital Short Duration Bond Fund			—			—			3,940,976		2015
Sterling Capital Short Duration Bond Fund			—			—			160,380		2016
Sterling Capital Short Duration Bond Fund			—			—			385,647		2019
Sterling Capital Short Duration Bond Fund			731,499			348,335			—		—
Sterling Capital Intermediate U.S. Government Fund			—			—			7,417,640		2016
Sterling Capital Intermediate U.S. Government Fund			—			—			37,850		2019
Sterling Capital Securitized Opportunities Fund			1,495,375			5,299			—		—
Sterling Capital Strategic Allocation Conservative Fund			—			—			7,049,711		2018
Sterling Capital Strategic Allocation Balanced Fund			—			—			5,467,557		2018
Sterling Capital Strategic Allocation Balanced Fund			—			—			3,964,763		2019
Sterling Capital Strategic Allocation Growth Fund			—			—			6,627,772		2018
Sterling Capital Strategic Allocation Growth Fund			—			—			4,640,596		2019

*   Post-Enactment Losses: Must be utilized prior to losses subject to expiration.

The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2013 were as follows:

	Distributions paid from
	Ordinary Income			Net Long-Term Gains			Total Taxable Distributions			Tax Exempt Distributions			Total Distributions Paid*
Sterling Capital Large Cap Value Diversified Fund		$	2,627,430		$	—		$	2,627,430		$	—		$	2,627,430
Sterling Capital Mid Value Fund			3,163,869			—			3,163,869			—			3,163,869
Sterling Capital Small Cap Value Diversified Fund			390,002			958,642			1,348,644			—			1,348,644
Sterling Capital Special Opportunities Fund			3,138,407			29,974,373			33,112,780			—			33,112,780
Sterling Capital Equity Income Fund			22,799,561			12,358,244			35,157,805			—			35,157,805
Sterling Capital Ultra Short Bond Fund			210,844			—			210,844			—			210,844
Sterling Capital Short Duration Bond Fund			2,242,340			—			2,242,340			—			2,242,340
Sterling Capital Intermediate U.S. Government Fund			2,332,671			—			2,332,671			—			2,332,671
Sterling Capital Total Return Bond Fund			21,987,404			2,841,224			24,828,628			—			24,828,628
Sterling Capital Corporate Fund			4,269,831			195,109			4,464,940			—			4,464,940
Sterling Capital Securitized Opportunities Fund			2,486,095			—			2,486,095			—			2,486,095
Sterling Capital Kentucky Intermediate Tax-Free Fund			678			139,225			139,903			592,984			732,887
Sterling Capital Maryland Intermediate Tax-Free Fund			62,436			532,735			595,171			888,679			1,483,850
Sterling Capital North Carolina Intermediate Tax-Free Fund			186,244			1,685,743			1,871,987			6,046,630			7,918,617
Sterling Capital South Carolina Intermediate Tax-Free Fund			118,000			473,705			591,705			1,660,745			2,252,450
Sterling Capital Virginia Intermediate Tax-Free Fund			15,821			1,255,769			1,271,590			3,084,117			4,355,707
Sterling Capital West Virginia Intermediate Tax-Free Fund			89,006			1,368,572			1,457,578			2,786,247			4,243,825
Sterling Capital Strategic Allocation Conservative Fund			442,806			—			442,806			—			442,806
Sterling Capital Strategic Allocation Balanced Fund			574,997			—			574,997			—			574,997
Sterling Capital Strategic Allocation Growth Fund			302,995			—			302,995			—			302,995

* Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.

126

Sterling Capital Funds

Notes to Financial Statements (Unaudited) — (continued)

March 31, 2014

Under current tax law, capital losses realized after October 31 and ordinary losses realized after December 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 qualified late-year losses, which will be treated as arising on the first business day of the fiscal year ending September 30, 2014:

	Qualified Late-Year Capital Losses
Sterling Capital Corporate Fund	$	431,130
Sterling Capital Total Return Bond Fund		3,360,087
Sterling Capital Kentucky Intermediate Tax-Free Fund		19,857
Sterling Capital Maryland Intermediate Tax-Free Fund		88,739
Sterling Capital North Carolina Intermediate Tax-Free Fund		689,792
Sterling Capital South Carolina Intermediate Tax-Free Fund		221,089
Sterling Capital Virginia Intermediate Tax-Free Fund		536,898
Sterling Capital West Virginia Intermediate Tax-Free Fund		71,814

At March 31, 2014, federal income tax cost, gross unrealized appreciation and gross unrealized depreciation on securities were as follows:

	Tax Cost			Gross Tax Unrealized Appreciation			Gross Tax Unrealized Depreciation				Net Tax Unrealized Appreciation (Depreciation)
Sterling Capital Large Cap Value Diversified Fund		$	224,272,347		$	37,906,083		$	(2,323,074	)		$	35,583,009
Sterling Capital Mid Value Fund			581,872,646			172,498,920			(15,469,474	)			157,029,446
Sterling Capital Small Cap Value Diversified Fund			118,284,232			19,739,212			(1,919,101	)			17,820,111
Sterling Capital Special Opportunities Fund			678,734,745			269,454,763			(1,882,228	)			267,572,535
Sterling Capital Equity Income Fund			1,638,569,389			401,713,471			(30,017,984	)			371,695,487
Sterling Capital Ultra Short Bond Fund			57,887,114			66,687			(135,251	)			(68,564	)
Sterling Capital Short Duration Bond Fund			85,940,210			363,704			(540,219	)			(176,515	)
Sterling Capital Intermediate U.S. Government Fund			38,403,352			954,937			(246,740	)			708,197
Sterling Capital Total Return Bond Fund			445,653,466			10,516,955			(4,158,975	)			6,357,980
Sterling Capital Corporate Fund			54,650,286			1,263,537			(177,704	)			1,085,833
Sterling Capital Securitized Opportunities Fund			37,394,020			406,382			(365,863	)			40,519
Sterling Capital Kentucky Intermediate Tax-Free Fund			15,129,279			973,162			(2,152	)			971,010
Sterling Capital Maryland Intermediate Tax-Free Fund			36,776,499			1,255,159			(82,197	)			1,172,962
Sterling Capital North Carolina Intermediate Tax-Free Fund			192,483,981			8,579,022			(350,358	)			8,228,664
Sterling Capital South Carolina Intermediate Tax-Free Fund			65,883,186			1,979,680			(193,458	)			1,786,222
Sterling Capital Virginia Intermediate Tax-Free Fund			116,631,215			4,932,422			(246,081	)			4,686,341
Sterling Capital West Virginia Intermediate Tax-Free Fund			101,665,799			3,231,175			(304,928	)			2,926,247
Sterling Capital Strategic Allocation Conservative Fund			17,663,088			1,353,004			(93,038	)			1,259,966
Sterling Capital Strategic Allocation Balanced Fund			33,946,707			3,092,782			(195,051	)			2,897,731
Sterling Capital Strategic Allocation Growth Fund			25,165,673			2,640,108			(226,181	)			2,413,927

  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.

127

BOARD CONSIDERATION OF ADVISORY AGREEMENTS (UNAUDITED)

2013 Approvals

The Board of Trustees conducted in-person meetings in August and November 2013 to consider the continuance of the investment advisory agreement between Sterling Capital Funds (the “Trust”) and Sterling Capital Management LLC (“Sterling Capital” or the “Adviser”), the investment adviser to each series of the Trust, other than the Sterling Capital Long/Short Equity Fund (the “Funds”), for a new term running through January 31, 2015. The above referenced agreement is referred to herein as the “Advisory Agreement.”

The Trustees reviewed extensive material in connection with their consideration of the Advisory Agreement, including data from an independent provider of mutual fund data (as assembled by the Trust’s administrator), which, where applicable, included comparisons with industry averages for comparable funds for advisory fees, 12b-1 fees, and total fund expenses. The Trustees considered the contractual investment advisory fee levels for each Fund, as well as the fee waivers that Sterling Capital had agreed to implement for certain Funds. The Board was assisted in its review by independent legal counsel, who provided memoranda detailing the legal standards for review of the Advisory Agreement. The Board received detailed presentations from Sterling Capital, including analysis of each Fund’s investment process and performance. The Board also received and considered information from Sterling Capital relating to its profitability in respect of each Fund, and from all Funds in the aggregate. As part of their deliberations, the Independent Trustees conducted several private meetings with their independent legal counsel, outside the presence of Sterling Capital and other Fund management.

In their deliberations regarding the Advisory Agreement, each Trustee attributed different weights to various factors involved in an analysis of the Advisory Agreement, and in each case no factor alone was considered determinative. The Trustees determined that the arrangement between the Trust and the Adviser, as provided in the Advisory Agreement, was fair and reasonable and that the continuance of the Advisory Agreement was in the best interests of each applicable Fund and its shareholders.

The Trustees considered the following factors, among others, in reaching their conclusions.

Nature, Extent and Quality of Services Provided by the Adviser

The Trustees received and considered information regarding the nature, extent, and quality of the services provided to each Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as materials furnished specifically in connection with the annual review process. The Trustees considered the background and experience of the Adviser’s senior management and the expertise of investment personnel of the Adviser responsible for the day-to-day management of each Fund. The Trustees considered the overall reputation, and the capabilities and commitment of the Adviser to provide high quality service to each Fund.

The Trustees received information concerning the investment philosophy and investment processes applied or to be applied by the Adviser in managing each Fund as well as the Adviser’s Form ADV. The Trustees also considered information regarding regulatory compliance and compliance with the investment policies of the Funds. The Trustees evaluated the Adviser’s trading practices, and considered the procedures of the Adviser designed to fulfill the Adviser’s fiduciary duty to the Funds with respect to possible conflicts of interest, including the Adviser’s code of ethics (regulating the personal trading of its officers and employees).

Based on their review, the Trustees concluded that, with respect to the nature, extent and quality of services to be provided by the Adviser, the nature and extent of responsibilities was consistent with mutual fund industry norms, and that the quality of the services provided or to be provided by the Adviser was or was expected to be satisfactory or better.

Investment Performance

The Trustees considered the short-term and long-term performance results of each Fund in absolute terms and relative to each Fund’s benchmark and peer group. In conducting their review, the Trustees particularly focused on Funds where longer-term performance compared unfavorably with peers. The Trustees noted that Sterling Capital had been proactive in identifying and replacing underperforming portfolio managers and taking other steps to address underperformance concerns with certain Funds. In particular, the Trustees noted that Sterling Capital had installed a new portfolio management team to manage the Sterling Capital Large Cap Value Diversified Fund (formerly the “Sterling Capital Select Equity Fund”) and the Sterling Capital Small Cap Value Diversified Fund (formerly, the “Sterling Capital Small Value Fund”) in recent months.

After reviewing the performance of each Fund and taking into consideration the management style, investment strategies, and prevailing market conditions during the prior year and for longer periods, the Trustees concluded that the performance of each Fund was acceptable or better or that, in cases where performance issues were encountered, Sterling Capital had taken appropriate steps to address the situation.

Cost of Services, Including the Profits Realized by the Advisers and Affiliates

The Trustees considered peer group comparable information with respect to the advisory fees charged by Sterling Capital to each of the Funds, taking into consideration both contractual and actual (i.e., after fee waivers) fee levels. The Trustees concluded that the investment advisory fees paid by the Funds fell within an acceptable range as compared to peer groups, and were fair and reasonable, particularly in light of the fee waivers agreed to by Sterling Capital through January 2015. For example, the Trustees noted that Sterling Capital had agreed to waive its entire investment advisory fee from each of the Strategic Allocation Conservative, Strategic Allocation Balanced and Strategic Allocation Growth Funds in connection with a restructuring of these Funds in 2013.

128

As part of their review, the Trustees considered benefits to Sterling Capital aside from investment advisory fees. The Trustees reviewed administration fees received by Sterling Capital and considered the fallout benefits to Sterling Capital such as the research services available to Sterling Capital by reason of brokerage commissions generated by the Funds’ turnover. The Trustees also considered benefits to Sterling Capital’s affiliates, including brokerage commissions received by a Sterling Capital affiliate for executing certain trades on behalf of the Funds. With respect to these trades, the Trustees considered Sterling Capital’s assurances that such trades were effected in accordance with board approved procedures.

The Trustees also considered information from Sterling Capital regarding fees for separate accounts managed by Sterling Capital with investment objectives and strategies similar to those of comparable Funds. The Trustees noted that a representative of Sterling Capital explained that management of the Funds was a much more intensive process than management of separate accounts, including daily fluctuations in the size of the Funds and the need to comply with extensive and complex restrictions set by applicable regulation or established in controlling disclosure documents, and therefore the Trustees concluded that the differences between the services that Sterling Capital provides to the Funds and those it provides to separate accounts substantially limit the probative value of comparisons to those other clients.

The Trustees also considered the reasonableness of current and proposed advisory fees in the context of the profitability of the Adviser. In determining whether all investment advisory fees were reasonable, the Trustees reviewed profitability information provided by the Advisers with respect to investment advisory services. With respect to such information, the Trustees recognized that such profitability data was generally unaudited and represented an Adviser’s own determination of its and its affiliates’ revenues from the contractual services provided or expected to be provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and were calculated using an allocation methodology developed by the Adviser. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts, because comparative information is not generally publicly available and could be affected by numerous factors. Based on their review, the Trustees concluded that the profitability of the Advisers as a result of their relationships with the Funds was acceptable.

Based on the foregoing, the Trustees concluded that the fees proposed under the Advisory Agreements were fair and reasonable, in light of the services and benefits provided or expected to be provided to each Fund.

Economies of Scale

The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Funds’ assets. The Trustees found that Sterling Capital had generally reduced the total expense ratios for the Funds in part through fee waivers. The Trustees noted that Sterling Capital had agreed to implement new investment advisory fee breakpoints for the Sterling Capital Equity Income Fund and the Sterling Capital Special Opportunities Fund. The Trustees found that the asset levels of the other Funds were not currently so large as to warrant formal contractual breakpoints, and found that the fee waivers were a reasonable way to provide the benefits of economies of scale to shareholders of the Funds at this time.

Approval of Initial Advisory Agreements for the Sterling Capital Long/Short Equity Fund

The Board of Trustees, at meetings held on August 21-22, 2013, November 20-21, 2013 and December 9, 2013, formally considered the approval of (i) an investment advisory agreement (the “New Advisory Agreement”) between the Trust and Sterling Capital, with respect to the Sterling Capital Long/Short Equity Fund (the “New Fund”), and (ii) sub-advisory agreements (the “Sub-Advisory Agreements”, and together with the New Advisory Agreement, the “New Agreements”) between Sterling Capital and each of Lucas Capital Management, Sanborn Kilcollin Partners, Gator Capital Management and Highland Capital Healthcare Advisors, L.P. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”), with respect to the Fund.

With respect to the New Fund, the Trustees’ determination to approve the New Agreements was based on a comprehensive evaluation of all information provided to them. In the process of considering the New Agreements, the Trustees considered information regarding, among other things, the nature, extent and quality of services to be provided by Sterling Capital and each Sub-Adviser. The Trustees noted that Sterling Capital would dedicate personnel and resources to overseeing the Sub-Advisers’ activities with respect to the New Fund and that Sterling Capital would provide each Sub-Adviser with investment parameters with respect to the Sub-Adviser’s management of a portion of the New Fund’s assets. With respect to the Sub-Advisory Agreements, the Trustees received detailed presentations from each of the Sub-Advisers that included information regarding, among other things, each Sub-Adviser’s risk management approach, its experience with respect to comparable investment strategies, and the qualifications and experience of the proposed portfolio management team.

In their deliberations regarding the New Agreements, each Trustee attributed different weights to various factors involved in an analysis of the New Agreements, and in each case no factor alone was considered determinative. The Trustees determined that the arrangement between the New Fund and the Adviser, or between the Adviser and the Sub-Advisers, as applicable, as provided in the New Agreements, was fair and reasonable and that the approval of the New Agreements was in the best interests of each applicable Fund and its shareholders.

The Trustees considered the following factors, among others, in reaching their conclusions.

129

Nature, Extent and Quality of Services Provided by the Adviser and the Sub-Advisers

The Trustees received and considered information regarding the nature, extent, and quality of the services expected to be provided to the New Fund under the New Agreements. The Trustees considered the expertise of the New Fund’s proposed portfolio management team generally and the proposed services to be provided to the New Fund by Sterling Capital and the Sub-Advisers. The Board also considered Sterling Capital’s specific responsibilities with respect to oversight of the Sub-Advisers as well as the qualifications, experience and responsibilities of the other key personnel that would be involved in the day-to-day activities of the New Fund. The Trustees concluded that the nature and quality of services that Sterling Capital and the Sub-Advisers would provide to the New Fund appeared consistent with both those already provided to the Funds by Sterling Capital as well as with industry norms.

The Trustees received information concerning the investment philosophy and investment processes to be applied by the Adviser and the Sub-Advisers in managing the New Fund as well as the Adviser’s and each Sub-Adviser’s Form ADV. The Trustees also considered information regarding regulatory compliance and reviewed each Sub-Adviser’s compliance policies and procedures. The Trustees considered the procedures of the Adviser and the Sub-Advisers designed to fulfill the Adviser’s and each Sub-Adviser’s fiduciary duty to the New Fund with respect to possible conflicts of interest, including the Adviser’s and each Sub-Adviser’s code of ethics (regulating the personal trading of its officers and employees).

Based on their review, the Trustees concluded that, with respect to the nature, extent and quality of services to be provided by the Adviser and the Sub-Advisers, the nature and extent of responsibilities was consistent with mutual fund industry norms, and that the quality of the services provided or to be provided by the Adviser and the Sub-Advisers was or was expected to be satisfactory or better.

Investment Performance

The Trustees noted that the New Fund had not commenced operations at the time of the December 2013 Board meeting and had no historical investment performance. The Trustees considered that Sterling Capital does not currently offer stand-alone investment products comparable to the New Fund, and determined that comparable performance information with respect to other Sterling Capital clients would not provide suitable comparison information for evaluation of the New Advisory Agreement. The Trustees concluded, however, that Sterling Capital and the Sub-Advisers possessed the personnel and resources capable of producing attractive and competitive returns for the New Fund.

Cost of Services, Including the Profits Realized by the Advisers and Affiliates

The Trustees considered peer group comparable information with respect to the advisory fees charged or to be charged by Sterling Capital to the New Fund. The Trustees concluded that the proposed contractual fees were fair and reasonable.

As part of their review, the Trustees considered benefits to Sterling Capital aside from investment advisory fees. The Trustees reviewed administration fees received by Sterling Capital and considered the fallout benefits to Sterling Capital such as the research services available to Sterling Capital by reason of brokerage commissions generated by the Funds’ turnover. The Trustees also considered benefits to Sterling Capital’s affiliates, including brokerage commissions received by a Sterling Capital affiliate for executing certain trades on behalf of the Funds. With respect to these trades, the Trustees considered Sterling Capital’s assurances that such trades were effected in accordance with board approved procedures.

The Trustees also noted that, with respect to the New Fund, Sterling Capital did not currently offer stand-alone investment products comparable to the Fund and therefore concluded that comparable fee information with respect to other Sterling Capital clients would not provide suitable comparison information for evaluation of the New Advisory Agreement.

In the context of the profitability of the Adviser, the Trustees noted that the New Fund had not commenced operations at the time of the December 2013 board meeting and therefore the Adviser had not earned any investment advisory fees with respect to the New Fund.

Based on the foregoing, the Trustees concluded that the fees proposed under the New Agreements with Sterling Capital and the Sub-Advisers were fair and reasonable, in light of the services and benefits provided or expected to be provided to the New Fund.

Economies of Scale

The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the New Fund’s assets. The Trustees found that the asset levels of the New Fund were not currently so large as to warrant formal contractual breakpoints and the New Fund was unlikely to build its assets to such a point during the initial term of the New Advisory Agreement.

130

Sterling Capital Funds

March 31, 2014

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 30^th 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.

131

INVESTMENT ADVISOR

Sterling Capital Management LLC

Two Morrocroft Centre

4064 Colony Road, Suite 300

Charlotte, NC 28211

DISTRIBUTOR

Sterling Capital Distributors, LLC

400 Berwyn Park

899 Cassatt Road

Berwyn, PA 19312

LEGAL COUNSEL

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199

TRANSFER AGENT

BNY Mellon Investment Servicing (US) Inc.

301 Bellevue Parkway

Wilmington, DE 19809

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
By (Signature and Title)     /s/ James T. Gillespie
	James T. Gillespie, President
	(principal executive officer)
Date    05/28/14

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/ James T. Gillespie
	James T. Gillespie, President
	(principal executive officer)
Date    05/28/14

By (Signature and Title)     /s/ Kenneth R. Cotner
	Kenneth R. Cotner, Treasurer
	(principal executive officer)
Date    05/28/14