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, 5^th Floor

Raleigh, NC 27601-0575

(Address of principal executive offices) (Zip code)

James T. Gillespie, President

Sterling Capital Funds

434 Fayetteville Street, 5^th 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, 2015

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 Behavioral Large Cap Value Equity Fund	8
Sterling Capital Mid Value Fund	10
Sterling Capital Behavioral Small Cap Value Equity Fund	11
Sterling Capital Special Opportunities Fund	14
Sterling Capital Equity Income Fund	15
Sterling Capital Long/Short Equity Fund	16
Sterling Capital Behavioral International Equity Fund	20
Sterling Capital Ultra Short Bond Fund	22
Sterling Capital Short Duration Bond Fund	25
Sterling Capital Intermediate U.S. Government Fund	29
Sterling Capital Total Return Bond Fund	30
Sterling Capital Corporate Fund	37
Sterling Capital Securitized Opportunities Fund	40
Sterling Capital Kentucky Intermediate Tax-Free Fund	43
Sterling Capital Maryland Intermediate Tax-Free Fund	45
Sterling Capital North Carolina Intermediate Tax-Free Fund	47
Sterling Capital South Carolina Intermediate Tax-Free Fund	51
Sterling Capital Virginia Intermediate Tax-Free Fund	53
Sterling Capital West Virginia Intermediate Tax-Free Fund	56
Sterling Capital Strategic Allocation Conservative Fund	59
Sterling Capital Strategic Allocation Balanced Fund	60
Sterling Capital Strategic Allocation Growth Fund	61
Financial Statements	63
Notes to Financial Statements	125
Other Information	142

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, 2014 and March 31, 2015. Equities posted strong gains during the final quarter of 2014 and then climbed modestly through the first quarter of 2015. Fixed-income securities experienced significant volatility, ending the period with a solid gain.

The U.S. economy grew at a modest pace to start the period, with gross domestic product increasing at an annualized rate of 2.2% during the fourth quarter of 2014. GDP barely budged during the second half of the period under review, however, increasing just 0.2% according to preliminary figures. The change from one quarter to the next was driven in part by an especially harsh winter that dragged on U.S. economic activity in the first quarter of 2015.

Some economic indicators, namely an increase in industrial production, improvements in the labor market, a rise in personal incomes and ongoing improvement in housing markets, pointed to a robust recovery throughout the period. Others, such as softer manufacturing output, declining business spending and falling corporate profits, indicated concerning signs of weakening. The strong U.S. dollar created challenges for U.S. exports, adding to economic headwinds.

Robust job growth offered some of the best news for the period, with the unemployment rate falling from 5.8% to 5.5% over the six-month period. Personal incomes rose as upward pressure on wages returned, which helped increase the amount of money in consumers’ pockets. This trend supported rising consumer confidence and consumer

spending during the period. And though retail sales dropped sharply at the start of the year due to winter weather, they posted a net increase for the period.

The Federal Reserve’s (the “Fed”) plan to begin raising interest rates in the fall of 2015 weighed on investors throughout the period. Fed Chair Janet Yellen has made it clear that rate hikes will be small, gradual and contingent upon continued improvement in the economy. However, many investors remained concerned that the transition to higher rates could drag on economic growth and dampen equity performance.

Emerging market equities fell sharply during the first half of the period. A strengthening U.S. dollar proved difficult for countries with dollar-denominated debt loads, while the slowing Chinese economy and low commodity prices challenged many emerging market economies that depend on commodity exports. Despite these headwinds, emerging market stocks managed to recover somewhat during the first quarter of 2015. The boost to emerging markets came from news that the European Central Bank was beginning a substantial quantitative easing program to bolster eurozone economies.

Stocks in developed economies followed a similar pattern, declining in the fourth quarter of 2014, only to bounce back in the first quarter of 2015 — although developed equities generally outperformed their emerging market counterparts. Rising consumer confidence helped boost economic growth in Europe in early 2015. The Japanese economy returned to growth after contracting sharply in 2014, although the pace of growth was slower than analysts had predicted.

The Standard and Poor’s 500® Index¹ (“S&P 500”) gained 5.93% during the six months under review. Small-cap stocks greatly outperformed larger shares, with the Russell 2000 Index of small-cap stocks gaining 14.46%. U.S. fixed-income investments benefited from the Fed’s assurances that increases in interest rates would take place gradually. Bond-purchasing programs by central banks in Japan and the eurozone pushed government bond yields down significantly in most developing economies. The yield curve also flattened as our slower economy combined with hawkish Fed rhetoric about upcoming rate hikes heightened investor concerns that the U.S. economy wasn’t strong enough to weather higher fed funds rates.

We will continue to monitor the evolving economic and market climate, and will seek to 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, 2015:

Sterling Capital Behavioral Large CapValue Equity Fund (formerly known as Sterling Capital Large Cap Value Diversified Fund)	Percentage of net assets
Consumer Discretionary		6.7	%
Consumer Staples		8.2	%
Energy		10.0	%
Financials		27.9	%
Health Care		15.3	%
Industrials		10.3	%
Information Technology		10.3	%
Materials		2.2	%
Telecommunication Services		1.6	%
Utilities		5.7	%
Exchange Traded Fund		1.0	%
Money Market Fund		0.3	%
		99.5	%
Sterling Capital Mid Value Fund	Percentage of net assets
Consumer Discretionary		18.8	%
Financials		38.3	%
Health Care		11.3	%
Industrials		5.9	%
Information Technology		18.3	%
Materials		2.7	%
Money Market Fund		4.5	%
		99.8	%
Sterling Capital Behavioral Small CapValue Equity Fund (formerly known as Sterling Capital Small Cap Value Diversified Fund)	Percentage of net assets
Consumer Discretionary		12.7	%
Consumer Staples		2.0	%
Energy		2.5	%
Financials		39.7	%
Health Care		5.8	%
Industrials		12.8	%
Information Technology		10.5	%
Materials		4.2	%
Telecommunication Services		0.8	%
Utilities		6.0	%
Exchange Traded Fund		1.8	%
Money Market Fund		0.8	%
		99.6	%
Sterling Capital Special Opportunities Fund	Percentage of net assets
Consumer Discretionary		19.2	%
Consumer Staples		2.8	%
Energy		0.8	%
Financials		11.5	%
Health Care		15.0	%
Industrials		14.7	%
Information Technology		31.0	%
Money Market Fund		4.0	%
		99.0	%

Sterling Capital Equity Income Fund	Percentage of net assets
Consumer Discretionary		14.5	%
Consumer Staples		11.9	%
Energy		12.1	%
Financials		9.6	%
Health Care		18.7	%
Industrials		6.4	%
Information Technology		20.4	%
Materials		1.4	%
Telecommunication Services		4.6	%
Money Market Fund		0.1	%
		99.7	%
Sterling Capital Long/Short Equity Fund	Long-Term Investment Percentage of net assets
Consumer Discretionary		2.7	%
Energy		16.8	%
Financials		24.1	%
Health Care		22.6	%
Industrials		0.1	%
Information Technology		19.2	%
Materials		0.0	%
Telecommunication Services		1.8	%
Money Market Fund		12.3	%
		99.6	%
Sterling Capital Long/Short Equity Fund	Investments Sold Short Percentage     of net assets
Energy		(3.0	)%
Exchange Traded Funds		(1.8	)%
Financials		(10.1	)%
Health Care		(6.6	)%
Information Technology		(6.8	)%
Telecommunication Services		(0.1	)%
		(28.4	)%
Sterling Capital Behavioral International Equity Fund	Percentage of net assets
Australia		6.7	%
Belgium		1.0	%
China		0.9	%
Denmark		2.0	%
Finland		1.1	%
France		7.6	%
Germany		7.7	%
Hong Kong		5.2	%
Ireland		1.5	%
Israel		2.3	%
Italy		1.0	%
Japan		24.8	%
Netherlands		3.6	%
Norway		1.1	%
Singapore		2.0	%
Spain		2.9	%
Sweden		2.4	%
Switzerland		7.1	%
United Kingdom		16.3	%
United States		0.7	%
Money Market Fund		1.6	%
		99.5	%

2

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Ultra Short Bond Fund	Percentage of net assets
Asset Backed Securities		14.6	%
Collateralized Mortgage Obligations		0.8	%
Commercial Mortgage-Backed Securities		20.4	%
Corporate Bonds		60.1	%
Municipal Bonds		2.2	%
Money Market Fund		1.2	%
		99.3	%
Sterling Capital Short Duration Bond Fund	Percentage of net assets
Asset Backed Securities		8.4	%
Collateralized Mortgage Obligations		2.2	%
Commercial Mortgage-Backed Securities		19.1	%
Corporate Bonds		65.0	%
Foreign Government Bond		0.5	%
Mortgage-Backed Securities		0.0	%
Municipal Bonds		2.9	%
Preferred Stocks		0.1	%
U.S. Treasury Note		0.3	%
Money Market Fund		0.9	%
		99.4	%
Sterling Capital Intermediate U.S. Government Fund	Percentage of net assets
Collateralized Mortgage Obligations		6.9	%
Corporate Bonds		4.4	%
Mortgage-Backed Securities		8.2	%
Municipal Bonds		2.4	%
U.S. Government Agencies		49.7	%
U.S. Treasury Bills		2.9	%
U.S. Treasury Notes		21.8	%
Money Market Fund		3.0	%
		99.3	%
Sterling Capital Total Return Bond Fund	Percentage of net assets
Asset Backed Securities		12.6	%
Collateralized Mortgage Obligations		8.9	%
Commercial Mortgage-Backed Securities		17.6	%
Corporate Bonds		33.6	%
Foreign Government Bonds		0.6	%
Mortgage-Backed Securities		10.5	%
Municipal Bonds		8.8	%
Preferred Stocks		0.9	%
U.S. Government Agencies		2.2	%
U.S. Treasury Bonds		1.1	%
U.S. Treasury Notes		1.7	%
Money Market Fund		1.0	%
		99.5	%
Sterling Capital Corporate Fund	Percentage of net assets
Asset Backed Securities		0.5	%
Corporate Bonds		96.5	%
Preferred Stocks		1.1	%
Money Market Fund		0.4	%
		98.5	%
Sterling Capital Securitized Opportunities Fund	Percentage of net assets
Asset Backed Securities		17.5	%
Collateralized Mortgage Obligations		27.3	%
Commercial Mortgage-Backed Securities		17.2	%
Mortgage-Backed Securities		33.8	%
U.S. Treasury Note		1.8	%
Money Market Fund		2.0	%
		99.6	%

Sterling Capital Kentucky Intermediate Tax-Free Fund	Percentage of net assets
Kentucky Municipal Bonds		94.7	%
Money Market Fund		3.8	%
		98.5	%
Sterling Capital Maryland Intermediate Tax-Free Fund	Percentage of net assets
District of Columbia Municipal Bonds		4.9	%
Maryland Municipal Bonds		90.6	%
Money Market Fund		3.6	%
		99.1	%
Sterling Capital North Carolina Intermediate Tax-Free Fund	Percentage of net assets
North Carolina Municipal Bonds		97.0	%
Money Market Fund		1.7	%
		98.7	%
Sterling Capital South Carolina Intermediate Tax-Free Fund	Percentage of net assets
South Carolina Municipal Bonds		94.7	%
Money Market Fund		4.3	%
		99.0	%
Sterling Capital Virginia Intermediate Tax-Free Fund	Percentage of net assets
District of Columbia Municipal Bonds		1.7	%
Virginia Municipal Bonds		94.4	%
Money Market Fund		3.1	%
		99.2	%
Sterling Capital West Virginia Intermediate Tax-Free Fund	Percentage of net assets
West Virginia Municipal Bonds		97.8	%
Money Market Fund		1.5	%
		99.3	%
Sterling Capital Strategic Allocation Conservative Fund	Percentage of net assets
Equity Funds		42.5	%
Fixed Income Fund		55.1	%
Money Market Fund		2.1	%
		99.7	%
Sterling Capital Strategic Allocation Balanced Fund	Percentage of net assets
Equity Funds		64.6	%
Fixed Income Fund		33.3	%
Money Market Fund		2.0	%
		99.9	%
Sterling Capital Strategic Allocation Growth Fund	Percentage of net assets
Equity Funds		81.1	%
Fixed Income Fund		17.3	%
Money Market Fund		1.5	%
		99.9	%

3

Sterling Capital Funds

Expense Example (Unaudited)

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

These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2014 through March 31, 2015.

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 10/1/14			Ending Account Value 3/31/15		Expenses Paid During Period* 10/1/14 -3/31/15			Annualized Expense Ratio During Period 10/1/14 -3/31/15
Sterling Capital Behavioral Large Cap Value Equity Fund
Class A Shares		$	1,000.00		1,055.34		$	5.38		1.05	%
Class B Shares			1,000.00		1,051.07			9.20		1.80	%
Class C Shares			1,000.00		1,051.25			9.21		1.80	%
Institutional Shares			1,000.00		1,056.84			4.10		0.80	%
Sterling Capital Mid Value Fund
Class A Shares			1,000.00		1,109.72			6.21		1.18	%
Class B Shares			1,000.00		1,105.55			10.13		1.93	%
Class C Shares			1,000.00		1,105.71			10.13		1.93	%
Institutional Shares			1,000.00		1,110.93			4.89		0.93	%
Class R Shares			1,000.00		1,108.83			7.41		1.41	%
Sterling Capital Behavioral Small Cap Value Equity Fund
Class A Shares			1,000.00		1,114.30			6.54		1.24	%
Class B Shares			1,000.00		1,109.74			10.47		1.99	%
Class C Shares			1,000.00		1,109.09			10.46		1.99	%
Institutional Shares			1,000.00		1,115.32			5.22		0.99	%
Class R Shares			1,000.00		1,112.84			7.80		1.48	%
Sterling Capital Special Opportunities Fund
Class A Shares			1,000.00		1,056.90			6.21		1.21	%
Class B Shares			1,000.00		1,053.26			10.03		1.96	%
Class C Shares			1,000.00		1,052.70			10.03		1.96	%
Institutional Shares			1,000.00		1,058.14			4.93		0.96	%
Class R Shares			1,000.00		1,055.58			7.48		1.46	%
Sterling Capital Equity Income Fund
Class A Shares			1,000.00		1,026.09			6.11		1.21	%
Class B Shares			1,000.00		1,021.73			9.83		1.95	%
Class C Shares			1,000.00		1,022.23			9.88		1.96	%
Institutional Shares			1,000.00		1,027.32			4.85		0.96	%
Class R Shares			1,000.00		1,024.65			7.37		1.46	%
Sterling Capital Long/Short Equity Fund
Class A Shares			1,000.00		947.15			15.34		3.16	%
Class C Shares			1,000.00		943.18			18.99		3.92	%
Institutional Shares			1,000.00		948.25			14.18		2.92	%
Sterling Capital Behavioral International Equity Fund
Class A Shares			1,000.00		1,016.07			6.38		1.27	%
Class C Shares			1,000.00		1,013.49			10.19		2.03	%
Institutional Shares			1,000.00		1,017.77			5.13		1.02	%
Sterling Capital Ultra Short Bond Fund
Class A Shares			1,000.00		1,001.25			3.69		0.74	%
Institutional Shares			1,000.00		1,002.47			2.50		0.50	%
Sterling Capital Short Duration Bond Fund
Class A Shares			1,000.00		1,006.16			3.85		0.77	%
Class C Shares			1,000.00		1,001.35			7.58		1.52	%
Institutional Shares			1,000.00		1,007.46			2.60		0.52	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares			1,000.00		1,020.49			4.58		0.91	%
Class B Shares			1,000.00		1,015.70			8.34		1.66	%
Class C Shares			1,000.00		1,015.69			8.34		1.66	%
Institutional Shares			1,000.00		1,020.74			3.38		0.67	%

4

Sterling Capital Funds

Expense Example (Unaudited)

	Beginning Account Value 10/1/14			Ending Account Value 3/31/15			Expenses Paid During Period* 10/1/14 - 3/31/15			Annualized Expense Ratio During Period 10/1/14 - 3/31/15
Sterling Capital Total Return Bond Fund
Class A Shares		$	1,000.00		$	1,028.59		$	3.59		0.71	%
Class B Shares			1,000.00			1,024.71			7.37		1.46	%
Class C Shares			1,000.00			1,024.77			7.37		1.46	%
Institutional Shares			1,000.00			1,029.87			2.33		0.46	%
Class R Shares			1,000.00			1,027.37			4.80		0.95	%
Sterling Capital Corporate Fund
Class A Shares			1,000.00			1,024.47			4.29		0.85	%
Class C Shares			1,000.00			1,020.73			8.06		1.60	%
Institutional Shares			1,000.00			1,025.78			3.03		0.60	%
Sterling Capital Securitized Opportunities Fund
Class A Shares			1,000.00			1,029.65			4.20		0.83	%
Class C Shares			1,000.00			1,025.82			7.98		1.58	%
Institutional Shares			1,000.00			1,029.88			2.94		0.58	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,011.89			4.77		0.95	%
Class C Shares			1,000.00			1,008.10			8.51		1.70	%
Institutional Shares			1,000.00			1,014.11			3.52		0.70	%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,014.20			4.57		0.91	%
Class C Shares			1,000.00			1,009.50			8.32		1.66	%
Institutional Shares			1,000.00			1,014.56			3.31		0.66	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,016.20			4.37		0.87	%
Class C Shares			1,000.00			1,011.53			8.12		1.62	%
Institutional Shares			1,000.00			1,017.44			3.12		0.62	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,015.08			4.47		0.89	%
Class C Shares			1,000.00			1,011.32			8.22		1.64	%
Institutional Shares			1,000.00			1,016.39			3.22		0.64	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,014.12			4.42		0.88	%
Class C Shares			1,000.00			1,010.35			8.17		1.63	%
Institutional Shares			1,000.00			1,015.39			3.17		0.63	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,015.06			4.42		0.88	%
Class C Shares			1,000.00			1,011.20			8.17		1.63	%
Institutional Shares			1,000.00			1,016.29			3.17		0.63	%
Sterling Capital Strategic Allocation Conservative Fund
Class A Shares			1,000.00			1,032.03			2.18		0.43	%
Class B Shares			1,000.00			1,027.39			5.96		1.18	%
Class C Shares			1,000.00			1,027.74			5.97		1.18	%
Institutional Shares			1,000.00			1,032.93			0.91		0.18	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares			1,000.00			1,032.92			2.03		0.40	%
Class B Shares			1,000.00			1,028.43			5.82		1.15	%
Class C Shares			1,000.00			1,028.76			5.82		1.15	%
Institutional Shares			1,000.00			1,033.96			0.76		0.15	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,032.75			2.08		0.41	%
Class B Shares			1,000.00			1,029.10			5.87		1.16	%
Class C Shares			1,000.00			1,029.54			5.87		1.16	%
Institutional Shares			1,000.00			1,034.95			0.81		0.16	%

* 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 Behavioral International Equity Fund,which are multiplied by 119 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 10/1/14				Ending Account Value 3/31/15			Expenses Paid During Period* 10/1/14 - 3/31/15			Annualized Expense Ratio During Period 10/1/14 - 3/31/15
Sterling Capital Behavioral Large Cap Value Equity Fund
Class A Shares			$	1,000.00			$	1,019.70		$	5.29		1.05	%
Class B Shares				1,000.00				1,015.96			9.05		1.80	%
Class C Shares				1,000.00				1,015.96			9.05		1.80	%
Institutional Shares				1,000.00				1,020.94			4.03		0.80	%
Sterling Capital Mid Value Fund
Class A Shares				1,000.00				1,019.05			5.94		1.18	%
Class B Shares				1,000.00				1,015.31			9.70		1.93	%
Class C Shares				1,000.00				1,015.31			9.70		1.93	%
Institutional Shares				1,000.00				1,020.29			4.68		0.93	%
Class R Shares				1,000.00				1,017.90			7.09		1.41	%
Sterling Capital Behavioral Small Cap Value Equity Fund
Class A Shares				1,000.00				1,018.75			6.24		1.24	%
Class B Shares	��			1,000.00				1,015.01			10.00		1.99	%
Class C Shares				1,000.00				1,015.01			10.00		1.99	%
Institutional Shares				1,000.00				1,020.00			4.99		0.99	%
Class R Shares				1,000.00				1,017.55			7.44		1.48	%
Sterling Capital Special Opportunities Fund
Class A Shares				1,000.00				1,018.90			6.09		1.21	%
Class B Shares				1,000.00				1,015.16			9.85		1.96	%
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				1,018.90			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 Long/Short Equity Fund
Class A Shares				1,000.00				1,009.17			15.83		3.16	%
Class C Shares				1,000.00				1,005.39			19.60		3.92	%
Institutional Shares				1,000.00				1,010.37			14.64		2.92	%
Sterling Capital Behavioral International Equity Fund
Class A Shares				1,000.00				1,018.60			6.39		1.27	%
Class C Shares				1,000.00				1,014.81			10.20		2.03	%
Institutional Shares				1,000.00				1,019.85			5.14		1.02	%
Sterling Capital Ultra Short Bond Fund
Class A Shares				1,000.00				1,021.24			3.73		0.74	%
Institutional Shares				1,000.00				1,022.44			2.52		0.50	%
Sterling Capital Short Duration Bond Fund
Class A Shares				1,000.00				1,021.09			3.88		0.77	%
Class C Shares				1,000.00	��			1,017.35			7.64		1.52	%
Institutional Shares				1,000.00				1,022.34			2.62		0.52	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares				1,000.00				1,020.39			4.58		0.91	%
Class B Shares				1,000.00				1,016.65			8.35		1.66	%
Class C Shares				1,000.00				1,016.65			8.35		1.66	%
Institutional Shares				1,000.00				1,021.59			3.38		0.67	%

6

Sterling Capital Funds

Expense Example (Unaudited)

	Beginning Account Value 10/1/14			Ending Account Value 3/31/15			Expenses Paid During Period* 10/1/14 - 3/31/15			Annualized Expense Ratio During Period 10/1/14 - 3/31/15
Sterling Capital Total Return Bond Fund
Class A Shares		$	1,000.00		$	1,021.39		$	3.58		0.71	%
Class B Shares			1,000.00			1,017.65			7.34		1.46	%
Class C Shares			1,000.00			1,017.65			7.34		1.46	%
Institutional Shares			1,000.00			1,022.64			2.32		0.46	%
Class R Shares			1,000.00			1,020.19			4.78		0.95	%
Sterling Capital Corporate Fund
Class A Shares			1,000.00			1,020.69			4.28		0.85	%
Class C Shares			1,000.00			1,016.95			8.05		1.60	%
Institutional Shares			1,000.00			1,021.94			3.02		0.60	%
Sterling Capital Securitized Opportunities 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 Kentucky Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.19			4.78		0.95	%
Class C Shares			1,000.00			1,016.45			8.55		1.70	%
Institutional Shares			1,000.00			1,021.44			3.53		0.70	%
Sterling Capital Maryland 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 North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.59			4.38		0.87	%
Class C Shares			1,000.00			1,016.85			8.15		1.62	%
Institutional Shares			1,000.00			1,021.84			3.13		0.62	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.49			4.48		0.89	%
Class C Shares			1,000.00			1,016.75			8.25		1.64	%
Institutional Shares			1,000.00			1,021.74			3.23		0.64	%
Sterling Capital Virginia Intermediate Tax-Free 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 West Virginia Intermediate Tax-Free 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 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			1,022.94			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	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,022.89			2.07		0.41	%
Class B Shares			1,000.00			1,019.15			5.84		1.16	%
Class C Shares			1,000.00			1,019.15			5.84		1.16	%
Institutional Shares			1,000.00			1,024.13			0.81		0.16	%

* 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 Behavioral International Equity Fund, which are multiplied by 119 days divided by 365 (to reflect the period from commencement of operations).

7

Sterling Capital Behavioral Large Cap Value Equity Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 98.2%
	Consumer Discretionary — 6.7%
10,450	Dillard’s, Inc., Class A	$	1,426,529
40,500	Gannett Co., Inc.		1,501,740
161,600	General Motors Co.		6,060,000
13,379	Lear Corp.		1,482,661
70,925	Macy’s, Inc.		4,603,742
38,100	Starz, Class A(a)		1,311,021
21,200	Target Corp.		1,739,884
6,150	Whirlpool Corp.		1,242,669
			19,368,246
	Consumer Staples — 8.2%
61,900	Altria Group, Inc.		3,096,238
104,745	Archer-Daniels-Midland Co.		4,964,913
12,000	Clorox Co. (The)		1,324,680
57,700	CVS Caremark Corp.		5,955,217
10,350	Energizer Holdings, Inc.		1,428,817
60,121	Kroger Co. (The)		4,608,876
49,500	Pilgrim’s Pride Corp.		1,118,205
13,800	Spectrum Brands Holdings, Inc.		1,235,928
			23,732,874
	Energy — 10.0%
42,050	Atwood Oceanics, Inc.		1,182,025
27,700	Cameron International Corp.(a)		1,249,824
17,600	Cheniere Energy, Inc.(a)		1,362,240
32,100	CVR Energy, Inc.		1,366,176
32,650	HollyFrontier Corp.		1,314,815
45,850	Marathon Petroleum Corp.		4,694,581
91,200	National Oilwell Varco, Inc.		4,559,088
41,850	PBF Energy, Inc., Class A		1,419,552
33,950	Schlumberger, Ltd.		2,832,788
17,600	Tesoro Corp.		1,606,704
86,475	Valero Energy Corp.		5,501,540
27,400	World Fuel Services Corp.		1,574,952
			28,664,285
	Financials — 27.9%
48,350	ACE, Ltd.		5,390,542
20,400	Allstate Corp. (The)		1,451,868
38,427	Ameriprise Financial, Inc.		5,027,789
65,150	CBL & Associates Properties, Inc., REIT		1,289,970
54,100	CME Group, Inc.		5,123,811
32,700	Corrections Corp. of America, REIT		1,316,502
18,100	Digital Realty Trust, Inc., REIT		1,193,876
20,500	Endurance Specialty Holdings, Ltd.		1,253,370
19,050	Goldman Sachs Group, Inc. (The)		3,580,829
51,300	HCP, Inc., REIT		2,216,673
62,700	Health Care REIT, Inc.		4,850,472
26,150	Healthcare Trust of America, Inc., Class A, REIT		728,539
41,850	Hospitality Properties Trust, REIT		1,380,631
124,100	Huntington Bancshares, Inc.		1,371,305
88,450	JPMorgan Chase & Co.		5,358,301
26,000	NASDAQ OMX Group, Inc. (The)		1,324,440
60,950	Navient Corp.		1,239,113
33,837	Omega Healthcare Investors, Inc., REIT		1,372,767
21,750	PacWest Bancorp		1,019,857
55,936	Piedmont Office Realty Trust, Inc., Class A, REIT		1,040,969
62,116	PNC Financial Services Group, Inc. (The)		5,791,696
1,443	Prudential Financial, Inc.		115,887

Shares		Fair Value
COMMON STOCKS — (continued)
	Financials — (continued)
57,900	Santander Consumer USA Holdings, Inc.	$	1,339,806
117,900	SunTrust Banks, Inc.		4,844,511
51,000	Travelers Cos., Inc. (The)		5,514,630
34,075	Ventas, Inc., REIT		2,488,157
29,500	Voya Financial, Inc.		1,271,745
212,699	Wells Fargo & Co.		11,570,826
			80,468,882
	Health Care — 15.3%
8,750	Actavis PLC(a)		2,604,175
49,957	Aetna, Inc.		5,321,919
28,700	Amgen, Inc.		4,587,695
37,252	Anthem, Inc.		5,752,081
38,550	Cigna Corp.		4,989,912
42,200	Gilead Sciences, Inc.(a)		4,141,086
961	Halyard Health, Inc.(a)		47,281
64,850	HCA Holdings, Inc.(a)		4,878,665
12,150	Mallinckrodt PLC(a)		1,538,798
251,000	Pfizer, Inc.		8,732,290
9,102	United Therapeutics Corp.(a)		1,569,503
			44,163,405
	Industrials — 10.3%
33,250	ADT Corp. (The)		1,380,540
22,250	Alaska Air Group, Inc.		1,472,505
28,800	Boeing Co. (The)		4,322,304
119,161	Delta Air Lines, Inc.		5,357,479
41,423	General Dynamics Corp.		5,622,344
9,650	Huntington Ingalls Industries, Inc.		1,352,447
23,175	Lockheed Martin Corp.		4,703,598
33,583	Northrop Grumman Corp.		5,405,520
3,700	Southwest Airlines Co.		163,910
			29,780,647
	Information Technology — 10.3%
36,100	Apple, Inc.		4,491,923
33,550	Avago Technologies, Ltd.		4,260,179
55,900	Booz Allen Hamilton Holding Corp.		1,617,746
32,750	Broadcom Corp., Class A		1,417,911
119,700	Cisco Systems, Inc.		3,294,743
67,050	Corning, Inc.		1,520,694
22,700	Electronic Arts, Inc.(a)		1,335,101
11,100	Oracle Corp.		478,965
27,150	Science Applications International Corp.		1,394,153
72,100	Texas Instruments, Inc.		4,123,039
46,850	Western Digital Corp.		4,263,819
66,800	Western Union Co. (The)		1,390,108
			29,588,381
	Materials — 2.2%
87,350	International Paper Co.		4,847,051
20,950	Rock-Tenn Co., Class A		1,351,275
			6,198,326
	Telecommunication Services — 1.6%
130,600	CenturyLink, Inc.		4,512,230
	Utilities — 5.7%
30,750	Ameren Corp.		1,297,650
99,850	PG&E Corp.		5,299,039
141,550	PPL Corp.		4,764,573

Continued

8

Sterling Capital Behavioral Large Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Utilities — (continued)
117,150	Public Service Enterprise Group, Inc.	$	4,910,928
			16,272,190
	Total Common Stocks (Cost $244,677,258)		282,749,466
EXCHANGE TRADED FUND — 1.0%
27,849	iShares Russell 1000 Value ETF		2,870,675
	Total Exchange Traded Fund (Cost $2,773,297)		2,870,675

Shares		Fair Value
MONEY MARKET FUND — 0.3%
978,551	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b)	$	978,551
	Total Money Market Fund (Cost $978,551)		978,551
Total Investments — 99.5% (Cost $248,429,106)			286,598,692
Net Other Assets (Liabilities) — 0.5%			1,413,377
NET ASSETS — 100.0%		$	288,012,069

(a) Represents non-income producing security.

(b) Represents the current yield as of report date.

ETF — Exchange Traded Funds

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

9

Sterling Capital Mid Value Fund

  Schedule of Portfolio Investments

  March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 95.3%
	Consumer Discretionary — 18.8%
1,420,500	Ascena Retail Group, Inc.(a)	$	20,611,455
856,250	Chico’s FAS, Inc.		15,147,063
1,013,400	Interpublic Group of Cos., Inc. (The)		22,416,408
206,250	Kohl’s Corp.		16,139,063
1,558,340	News Corp., Class B(a)		24,730,856
416,285	Omnicom Group, Inc.		32,461,904
265,319	Universal Technical Institute, Inc.		2,547,062
168,882	Viacom, Inc., Class B		11,534,641
			145,588,452
	Financials — 38.3%
773,600	American Capital, Ltd.(a)		11,441,544
1,877,975	Annaly Capital Management, Inc., REIT		19,530,940
317,500	Aspen Insurance Holdings, Ltd.		14,995,525
423,603	Assured Guaranty, Ltd.		11,178,883
1,247,000	E*TRADE Financial Corp.(a)		35,608,085
420,385	Endurance Specialty Holdings, Ltd.		25,702,339
106,230	Enstar Group, Ltd.(a)		15,069,788
1,531,572	Leucadia National Corp.		34,138,740
421,800	Lincoln National Corp.		24,236,628
46,572	Markel Corp.(a)		35,812,005
357,800	Ryman Hospitality Properties, Inc., REIT		21,793,598
178,500	T. Rowe Price Group, Inc.		14,454,930
663,100	Willis Group Holdings PLC		31,948,158
			295,911,163
	Health Care — 11.3%
170,872	Anthem, Inc.		26,384,345
143,604	Becton Dickinson & Co.		20,620,098
192,678	Laboratory Corp. of America Holdings(a)		24,294,769
133,222	Zimmer Holdings, Inc.		15,656,249
			86,955,461
	Industrials — 5.9%
194,050	AGCO Corp.		9,244,542
805,400	Civeo Corp.		2,045,716
515,600	Hertz Global Holdings, Inc.(a)		11,178,208
628,200	Tetra Tech, Inc.		15,089,364
658,700	Uti Worldwide, Inc.(a)		8,102,010
			45,659,840

Shares		Fair Value
COMMON STOCKS — (continued)
	Information Technology — 18.3%
1,107,200	Dice Holdings, Inc.(a)	$	9,876,224
98,282	DST Systems, Inc.		10,880,800
277,100	Fidelity National Information Services, Inc.		18,859,426
167,350	Global Payments, Inc.		15,342,648
666,913	II-VI, Inc.(a)		12,311,214
766,700	Knowles Corp.(a)		14,774,309
87,425	MicroStrategy, Inc., Class A(a)		14,791,436
453,700	NCR Corp.(a)		13,388,687
203,750	NeuStar, Inc., Class A(a)		5,016,325
497,900	Symantec Corp.		11,633,433
702,200	Western Union Co. (The)		14,612,782
			141,487,284
	Materials — 2.7%
573,600	Chemtura Corp.(a)		15,653,544
353,700	Rayonier Advanced Materials, Inc.		5,270,130
			20,923,674
	Total Common Stocks (Cost $570,980,925)		736,525,874
MONEY MARKET FUND — 4.5%
34,610,517	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b)		34,610,517
	Total Money Market Fund (Cost $34,610,517)		34,610,517
Total Investments — 99.8% (Cost $605,591,442)			771,136,391
Net Other Assets (Liabilities) — 0.2%			1,584,583
NET ASSETS — 100.0%		$	772,720,974

(a) Represents non-income producing security.

(b) Represents the current yield as of report date.

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

10

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 97.0%
	Consumer Discretionary — 12.7%
18,802	American Axle & Manufacturing Holdings, Inc.(a)	$	485,656
57,011	American Eagle Outfitters, Inc.		973,748
9,675	Big Lots, Inc.		464,690
34,960	Boyd Gaming Corp.(a)		496,432
17,821	Brown Shoe Co., Inc.		584,529
22,012	Build-A-Bear Workshop, Inc.(a)		432,536
22,207	Cablevision Systems Corp., Class A		406,388
8,139	Capella Education Co.		528,058
16,574	Cato Corp., (The) Class A		656,330
10,925	Children’s Place, Inc. (The)		701,276
22,020	Citi Trends, Inc.(a)		594,540
24,905	Cooper Tire & Rubber Co.		1,066,930
19,792	Culp, Inc.		529,436
4,006	Dillard’s, Inc., Class A		546,859
36,155	Isle of Capri Casinos, Inc.(a)		507,978
1,652	ITT Educational Services, Inc.(a)		11,217
12,972	Journal Communications, Inc., Class A		192,245
5,987	Lear Corp.		663,479
11,564	Marriott Vacations Worldwide Corp.		937,262
27,617	Monarch Casino & Resort, Inc.(a)		528,589
9,851	Murphy USA, Inc.(a)		712,917
48,307	Orbitz Worldwide, Inc.(a)		563,260
19,803	Overstock.com, Inc.(a)		479,629
29,279	PetMed Express, Inc.		483,689
32,173	Regis Corp.(a)		526,350
32,772	Ruth’s Hospitality Group, Inc.		520,419
23,530	Speedway Motorsports, Inc.		535,308
25,932	Stage Stores, Inc.		594,361
8,746	Strayer Education, Inc.(a)		467,124
19,129	Unifi, Inc.(a)		690,366
7,243	Universal Electronics, Inc.(a)		408,795
			17,290,396
	Consumer Staples — 2.0%
51,864	Central Garden & Pet Co., Class A(a)		550,796
16,268	Ingles Markets, Inc., Class A		804,941
24,416	Pilgrim’s Pride Corp.		551,557
5,322	Sanderson Farms, Inc.		423,897
10,584	SpartanNash Co.		334,031
444	USANA Health Sciences, Inc.(a)		49,337
			2,714,559
	Energy — 2.5%
35,180	Alon USA Energy, Inc.		582,933
32,591	Cloud Peak Energy, Inc.(a)		189,680
24,579	Green Plains, Inc.		701,730
7,837	Pacific Ethanol, Inc.(a)		84,561
17,471	PBF Energy, Inc., Class A		592,616
34,010	Pioneer Energy Services Corp.(a)		184,334
10,171	REX American Resources Corp.(a)		618,499
10,190	Western Refining, Inc.		503,284
			3,457,637
	Financials — 39.7%
13,974	1st Source Corp.		448,985
27,431	AG Mortgage Investment Trust, Inc., REIT		516,800
12,771	Allied World Assurance Co. Holdings AG		515,948
30,919	Altisource Residential Corp., REIT		644,970
33,717	American Capital Mortgage Investment Corp., REIT		605,557

Shares		Fair Value
COMMON STOCKS — (continued)
	Financials — (continued)
31,973	American Equity Investment Life Holding Co.	$	931,374
7,420	American Financial Group, Inc.		475,993
13,976	AMERISAFE, Inc.		646,390
11,732	AmTrust Financial Services, Inc.		668,548
109,891	Anworth Mortgage Asset Corp., REIT		559,345
34,583	Apollo Commercial Real Estate Finance, Inc., REIT		594,136
32,245	Apollo Residential Mortgage, Inc., REIT		514,308
45,243	Ares Commercial Real Estate Corp., REIT		499,935
14,785	Argo Group International Holdings, Ltd.		741,468
22,393	Arlington Asset Investment Corp., Class A		538,776
10,689	Aspen Insurance Holdings, Ltd.		504,841
33,868	Associated Estates Realty Corp., REIT		835,862
7,209	Assurant, Inc.		442,705
17,011	Assured Guaranty, Ltd.		448,920
9,078	Axis Capital Holdings, Ltd.		468,243
44,473	Banc of California, Inc.		547,463
18,497	Banco Latinoamericano de Comercio Exterior SA		606,517
50,242	Capstead Mortgage Corp., REIT		591,348
23,921	Chatham Lodging Trust, REIT		703,517
132,271	Chimera Investment Corp., REIT		415,331
57,193	CNO Financial Group, Inc.		984,863
95,669	Cowen Group, Inc., Class A(a)		497,479
28,296	Customers Bancorp, Inc.(a)		689,291
74,072	CYS Investments, Inc., REIT		659,982
34,837	Dime Community Bancshares, Inc.		560,876
61,602	Dynex Capital, Inc., REIT		521,769
23,036	Employers Holdings, Inc.		621,742
8,999	Endurance Specialty Holdings, Ltd.		550,199
25,597	Enterprise Financial Services Corp.		528,834
10,306	FBL Financial Group, Inc., Class A		639,075
18,490	Federated National Holding Co.		565,794
35,006	Fidelity Southern Corp.		590,901
96,277	First BanCorp(a)		596,917
15,888	First Interstate BancSystem, Inc., Class A		442,004
25,603	First Merchants Corp.		602,695
16,034	First NBC Bank Holding Co.(a)		528,801
11,602	Flushing Financial Corp.		232,852
49,961	Gain Capital Holdings, Inc.		488,119
22,932	Gramercy Property Trust, Inc., REIT		643,694
6,632	Hanover Insurance Group, Inc. (The)		481,351
8,329	HCC Insurance Holdings, Inc.		472,004
11,681	HCI Group, Inc.		535,807
21,344	Heritage Insurance Holdings, Inc.(a)		469,781
32,930	Home Loan Servicing Solutions, Ltd.		544,662
29,002	HomeStreet, Inc.(a)		531,317
20,865	Horace Mann Educators Corp.		713,583
25,106	Investment Technology Group, Inc.(a)		760,963
44,553	KCG Holdings, Inc., Class A(a)		546,220
41,351	Maiden Holdings, Ltd.		613,235
55,712	MFA Financial, Inc., REIT		437,896
20,905	Montpelier Re Holdings, Ltd.		803,588
8,807	Navigators Group, Inc. (The)(a)		685,537
15,102	Nelnet, Inc., Class A		714,627
53,379	New Residential Investment Corp., REIT		802,286
75,832	New York Mortgage Trust, Inc., REIT		588,456
28,194	OFG Bancorp		460,126
37,159	Oritani Financial Corp.		540,663
4,256	PartnerRe, Ltd.		486,588
34,062	PennyMac Mortgage Investment Trust, REIT		725,180

Continued

11

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares			Fair Value
COMMON STOCKS — (continued)
		Financials — (continued)
10,585		Piper Jaffray Cos.(a)	$	555,289
7,550		Post Properties, Inc., REIT		429,822
49,251		Radian Group, Inc.		826,924
41,854		Redwood Trust, Inc., REIT		747,931
7,615		Regional Management Corp.(a)		112,397
5,618		Reinsurance Group of America, Inc.		523,541
4,441		RenaissanceRe Holdings, Ltd.		442,901
120,959		Resource Capital Corp., REIT		549,154
9,299		Safety Insurance Group, Inc.		555,615
9,130		Select Income REIT		228,159
24,968		Selective Insurance Group, Inc.		725,320
15,696		Springleaf Holdings, Inc.(a)		812,582
7,977		StanCorp Financial Group, Inc.		547,222
19,720		Starwood Property Trust, Inc., REIT		479,196
37,748		Symetra Financial Corp.		885,568
23,327		Territorial Bancorp, Inc.		554,250
26,762		Trustmark Corp.		649,781
43,332		Two Harbors Investment Corp., REIT		460,186
31,066		United Community Banks, Inc.		586,526
18,898		United Fire Group, Inc.		600,389
29,855		United Insurance Holdings Corp.		671,738
38,701		Universal Insurance Holdings, Inc.		990,359
10,768		Validus Holdings, Ltd.		453,333
29,638		Walker & Dunlop, Inc.(a)		525,482
18,659		Washington Federal, Inc.		406,860
35,944		Western Asset Mortgage Capital Corp., REIT		542,036
15,186		Wintrust Financial Corp.		724,068
4,723		World Acceptance Corp.(a)		344,401
9,354		WR Berkley Corp.		472,471
6,755		WSFS Financial Corp.		510,881
				54,241,419
		Health Care — 5.8%
12,696		Amsurg Corp.(a)		781,058
19,002		Cambrex Corp.(a)		753,049
12,152		Centene Corp.(a)		859,025
9,336		Community Health Systems, Inc.(a)		488,086
9,053		Health Net, Inc.(a)		547,616
9,682		Lannett Co., Inc.(a)		655,568
7,290		LifePoint Hospitals, Inc.(a)		535,451
8,970		Molina Healthcare, Inc.(a)		603,591
17,247		OncoMed Pharmaceuticals, Inc.(a)		444,628
64,414		PDL BioPharma, Inc.		453,152
13,146		Premier, Inc., Class A(a)		494,027
29,437		Quality Systems, Inc.		470,403
21,706		Triple-S Management Corp., Class B(a)		431,515
2,686		United Therapeutics Corp.(a)		463,160
				7,980,329
	��
		Industrials — 12.8%
23,858		AAR Corp.		732,441
35,330		ACCO Brands Corp.(a)		293,592
13,940		Alaska Air Group, Inc.		922,549
7,393		American Woodmark Corp.(a)		404,619
33,007		ARC Document Solutions, Inc.(a)		304,655
21,857		ArcBest Corp.		828,162
15,145		Argan, Inc.		547,795
13,059		Atlas Air Worldwide Holdings, Inc.(a)		561,798
6,330		Barrett Business Services, Inc.		271,177
27,627		Blount International, Inc.(a)		355,836
18,906		CRA International, Inc.(a)		588,355

Shares		Fair Value
COMMON STOCKS — (continued)
	Industrials — (continued)
21,034	Douglas Dynamics, Inc.	$	480,417
10,916	Ducommun, Inc.(a)		282,724
12,233	Greenbrier Cos., Inc. (The)		709,514
37,224	Hawaiian Holdings, Inc.(a)		819,859
22,852	Heidrick & Struggles International, Inc.		561,702
4,220	Huntington Ingalls Industries, Inc.		591,433
8,538	Insperity, Inc.		446,452
87,905	JetBlue Airways Corp.(a)		1,692,171
5,556	Kadant, Inc.		292,301
22,930	Matson, Inc.		966,729
14,575	MYR Group, Inc.(a)		456,781
24,684	Quad/Graphics, Inc.		567,238
6,118	Regal-Beloit Corp.		488,951
23,586	RR Donnelley & Sons Co.		452,615
36,009	SkyWest, Inc.		526,091
13,703	Trinity Industries, Inc.		486,594
11,860	Universal Forest Products, Inc.		657,993
45,611	Wabash National Corp.(a)		643,115
17,774	West Corp.		599,517
			17,533,176
	Information Technology — 10.5%
6,642	Arrow Electronics, Inc.(a)		406,158
27,696	Benchmark Electronics, Inc.(a)		665,535
42,231	Brocade Communications Systems, Inc.		501,071
9,824	Cabot Microelectronics Corp.(a)		490,905
9,086	CACI International, Inc., Class A(a)		817,013
14,637	Cirrus Logic, Inc.(a)		486,827
8,834	EchoStar Corp., Class A(a)		456,894
9,200	Emulex Corp.(a)		73,324
46,563	Fairchild Semiconductor International, Inc.(a)		846,515
62,795	Harmonic, Inc.(a)		465,311
19,823	Insight Enterprises, Inc.(a)		565,352
16,521	Jabil Circuit, Inc.		386,261
34,078	Marvell Technology Group, Ltd.		500,947
86,693	Monster Worldwide, Inc.(a)		549,634
19,092	NeuStar, Inc., Class A(a)		470,045
26,464	Newport Corp.(a)		504,404
10,752	OmniVision Technologies, Inc.(a)		283,530
37,593	ON Semiconductor Corp.(a)		455,251
7,875	OSI Systems, Inc.(a)		584,798
34,404	Pericom Semiconductor Corp.		532,230
55,811	Photronics, Inc.(a)		474,394
47,865	Polycom, Inc.(a)		641,391
39,105	Sanmina Corp.(a)		945,950
10,958	Science Applications International Corp.		562,693
28,377	Sykes Enterprises, Inc.(a)		705,168
60,982	TTM Technologies, Inc.(a)		549,448
29,690	Vishay Intertechnology, Inc.		410,316
			14,331,365
	Materials — 4.2%
19,763	Berry Plastics Group, Inc.(a)		715,223
11,029	Domtar Corp.		509,760
24,559	Graphic Packaging Holding Co.		357,088
8,934	Kaiser Aluminum Corp.		686,935
28,480	Olin Corp.		912,499
13,924	Schweitzer-Mauduit International, Inc.		642,175
39,677	Trecora Resources(a)		484,059
26,339	Trinseo SA(a)		521,512
14,214	U.S. Concrete, Inc.(a)		481,570

Continued

12

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Materials — (continued)
15,593	United States Steel Corp.	$	380,469
			5,691,290
	Telecommunication Services — 0.8%
26,452	IDT Corp., Class B		469,523
66,735	Iridium Communications, Inc.(a)		647,997
			1,117,520
	Utilities — 6.0%
7,930	AGL Resources, Inc.		393,726
15,770	ALLETE, Inc.		832,025
25,167	Avista Corp.		860,208
8,673	El Paso Electric Co.		335,125
23,619	Empire District Electric Co., (The)		586,224
16,059	Great Plains Energy, Inc.		428,454
16,224	IDACORP, Inc.		1,020,003
30,450	New Jersey Resources Corp.		945,777
25,209	Portland General Electric Co.		935,002
16,680	SJW Corp.		515,579
11,524	Westar Energy, Inc.		446,670
16,851	WGL Holdings, Inc.		950,396
			8,249,189
	Total Common Stocks (Cost $113,262,084)		132,606,880

Shares		Fair Value
EXCHANGE TRADED FUND — 1.8%
23,730	iShares Russell 2000 Value ETF	$	2,449,173
	Total Exchange Traded Fund (Cost $2,429,297)		2,449,173
MONEY MARKET FUND — 0.8%
1,055,876	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b)		1,055,876
	Total Money Market Fund (Cost $1,055,876)		1,055,876
Total Investments — 99.6% (Cost $116,747,257)			136,111,929
Net Other Assets (Liabilities) — 0.4%			500,995
NET ASSETS — 100.0%.		$	136,612,924

(a) Represents non-income producing security.

(b) Represents the current yield as of report date.

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, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 95.0%
	Consumer Discretionary — 19.2%
724,000	Comcast Corp., Class A	$	40,884,280
449,000	DIRECTV(a)		38,209,900
1,135,000	Discovery Communications, Inc., Class C(a)		33,454,125
1,852,000	Ford Motor Co.		29,891,280
331,000	Lennar Corp., Class A(b)		17,149,110
677,000	PulteGroup, Inc.		15,049,710
			174,638,405
	Consumer Staples — 2.8%
697,000	Mondelez International, Inc., Class A		25,154,730
	Energy — 0.8%
83,000	EOG Resources, Inc.(b)		7,610,270
	Financials — 11.5%
540,000	American Campus Communities, Inc., REIT		23,149,800
471,000	Capital One Financial Corp.		37,124,220
312,000	CBRE Group, Inc., Class A(a)		12,077,520
530,900	Ryman Hospitality Properties, Inc., REIT		32,337,119
			104,688,659
	Health Care — 15.0%
529,000	HCA Holdings, Inc.(a)		39,796,670
406,000	MEDNAX, Inc.(a)		29,439,060
855,274	Myriad Genetics, Inc.(a)		30,276,700
311,000	UnitedHealth Group, Inc.		36,788,190
			136,300,620
	Industrials — 14.7%
476,000	Expeditors International of Washington, Inc.		22,933,680
317,200	J.B. Hunt Transport Services, Inc.		27,087,294
857,000	Nielsen NV		38,196,490
632,000	Verisk Analytics, Inc., Class A(a)		45,124,800
			133,342,264
	Information Technology — 31.0%
1,750,000	Activision Blizzard, Inc.		39,768,750

Shares		Fair Value
COMMON STOCKS — (continued)
	Information Technology — (continued)
512,000	Akamai Technologies, Inc.(a)(b)	$	36,375,040
572,000	Check Point Software Technologies, Ltd.(a)		46,886,840
1,331,000	Cisco Systems, Inc.		36,635,775
506,000	Citrix Systems, Inc.(a)		32,318,220
426,000	eBay, Inc.(a)		24,571,680
335,000	Intuit, Inc.		32,481,600
1,102,000	NCR Corp.(a)		32,520,020
			281,557,925
	Total Common Stocks (Cost $587,343,249)		863,292,873
MONEY MARKET FUND — 4.0%
36,398,325	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		36,398,325
	Total Money Market Fund (Cost $36,398,325)		36,398,325
Total Investments — 99.0% (Cost $623,741,574)			899,691,198
Net Other Assets (Liabilities) — 1.0%			9,304,726
NET ASSETS — 100.0%		$	908,995,924

(a) Represents non-income producing security.

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

(c) Represents the current yield as of report date.

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

14

Sterling Capital Equity Income Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 99.6%
	Consumer Discretionary — 14.5%
1,034,200	Dunkin’ Brands Group, Inc.	$	49,186,552
570,000	McDonald’s Corp.		55,540,800
655,000	Omnicom Group, Inc.		51,076,900
1,154,000	Pearson PLC, ADR		24,937,940
533,000	Time Warner Cable, Inc.(a)		79,886,040
			260,628,232
	Consumer Staples — 11.9%
668,000	General Mills, Inc.		37,808,800
613,000	PepsiCo, Inc.		58,615,060
595,000	Philip Morris International, Inc.		44,821,350
1,719,000	Unilever PLC, ADR		71,699,490
			212,944,700
	Energy — 12.1%
1,946,003	Kinder Morgan, Inc.		81,848,873
841,000	Occidental Petroleum Corp.		61,393,000
2,047,000	Spectra Energy Corp.		74,039,990
			217,281,863
	Financials — 9.6%
226,200	Host Hotels & Resorts, Inc., REIT		4,564,716
1,874,500	KKR & Co. LP		42,757,345
1,298,000	MetLife, Inc.		65,613,900
1,075,000	Wells Fargo & Co.		58,480,000
			171,415,961
	Health Care — 18.7%
1,339,000	Abbott Laboratories		62,035,870
767,999	AbbVie, Inc.		44,958,661
420,200	Anthem, Inc.(a)		64,883,082
815,000	Baxter International, Inc.		55,827,500
651,000	Novartis AG, ADR		64,195,110
1,251,000	Pfizer, Inc.		43,522,290
			335,422,513
	Industrials — 6.4%
2,473,000	General Electric Co.		61,355,130
2,000	Honeywell International, Inc.		208,620
542,900	United Parcel Service, Inc., Class B		52,628,726
			114,192,476

Shares		Fair Value
COMMON STOCKS — (continued)
	Information Technology — 20.4%
886,000	Accenture PLC, Class A	$	83,009,340
416,000	International Business Machines Corp.		66,768,000
1,954,000	Maxim Integrated Products, Inc.		68,018,740
1,288,000	Microsoft Corp.		52,363,640
1,128,000	QUALCOMM, Inc.		78,215,520
338,000	Seagate Technology PLC		17,586,140
			365,961,380
	Materials — 1.4%
365,504	Scotts Miracle-Gro Co. (The), Class A		24,550,904
	Telecommunication Services — 4.6%
1,684,000	Verizon Communications, Inc.		81,892,920
	Total Common Stocks (Cost $1,395,057,610)		1,784,290,949
MONEY MARKET FUND — 0.1%
2,223,997	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b)		2,223,997
	Total Money Market Fund (Cost $2,223,997)		2,223,997
Total Investments — 99.7% (Cost $1,397,281,607)			1,786,514,946
Net Other Assets (Liabilities) — 0.3%			5,711,022
NET ASSETS — 100.0%		$	1,792,225,968

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

(b) Represents the current yield as of report date.

ADR — American Depositary Receipt

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

15

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 81.9%
	Consumer Discretionary — 2.7%
105,000	Global Eagle Entertainment, Inc.(a)(b)	$	1,397,550
19,342	Service Corp. International(b)		503,859
70,000	Sizmek, Inc.(a)		508,200
15,000	Stonemor Partners LP		432,150
			2,841,759
	Energy — 16.8%
3,950	Anadarko Petroleum Corp.		327,100
14,300	Apache Corp.(b)		862,719
12,000	ARC Resources, Ltd.		205,764
2,500	ARC Resources, Ltd.		42,951
10,000	Baytex Energy Corp.		158,146
6,600	Baytex Energy Corp.		104,280
11,000	Bonterra Energy Corp.(b)(c)		294,218
10,900	Canadian Natural Resources, Ltd.		334,739
2,300	Canadian Oil Sands, Ltd.		17,887
14,900	Cenovus Energy, Inc.(b)		251,512
12,000	Chesapeake Energy Corp.		169,920
2,700	Cimarex Energy Co.(b)		310,743
2,400	Concho Resources, Inc.(a)(b)		278,208
15,950	ConocoPhillips(b)		993,047
11,300	Continental Resources, Inc.(a)(b)		493,471
16,400	Crescent Point Energy Corp.		366,376
8,650	Cross Timbers Royalty Trust		165,822
23,200	Denbury Resources, Inc.(b)		169,128
12,800	Devon Energy Corp.(b)		771,968
53,090	Dorchester Minerals LP(b)		1,207,265
35,101	Enduro Royalty Trust		143,914
3,000	EnLink Midstream, LLC		97,620
13,850	EOG Resources, Inc.(b)		1,269,908
53,000	Freehold Royalties, Ltd.		748,890
6,300	Freehold Royalties, Ltd.		89,236
7,000	Laredo Petroleum, Inc.(a)		91,280
1,850	Magellan Midstream Partners LP		141,914
30,300	Marathon Oil Corp.(b)		791,133
16,430	Noble Energy, Inc.(b)		803,427
54,000	Northern Oil & Gas, Inc.(a)(b)		416,340
4,100	Occidental Petroleum Corp.		299,300
87,480	Pacific Coast Oil Trust(b)		335,048
2,500	PDC Energy, Inc.(a)(b)		135,100
25,063	Permian Basin Royalty Trust(b)		202,760
1,100	Peyto Exploration & Development Corp.		29,494
18,200	Plains GP Holdings LP, Class A(b)		516,334
29,862	Sabine Royalty Trust(b)		1,174,771
5,400	Shell Midstream Partners LP		210,600
18,500	Suncor Energy, Inc.(b)		541,125
9,650	Tesoro Logistics LP		519,170
3,500	Vermilion Energy, Inc.		147,280
5,588	Western Gas Equity Partners LP(b)		335,280
33,712	Whiting Petroleum Corp.(a)(b)		1,041,701
2,000	Whiting USA Trust II		10,880
			17,617,769
	Financials — 20.4%
8,800	Aflac, Inc.(b)		563,288
48,100	Ambac Financial Group, Inc.(a)(b)		1,164,020
36,900	American Capital, Ltd.(a)		545,751
47,770	Banc of California, Inc.		588,049
90,400	Bank of America Corp.		1,391,256
17,900	BankUnited, Inc.		586,046
37,300	BBX Capital Corp., Class A(a)(b)		693,780

Shares		Fair Value
COMMON STOCKS — (continued)
	Financials — (continued)
16,437	Blackstone Group LP (The)	$	639,235
52,460	Boston Private Financial Holdings, Inc.(b)		637,389
18,400	Bridge Bancorp, Inc.(b)		475,272
41,169	Carlyle Group LP (The)(b)		1,115,680
22,100	Citigroup, Inc.(b)		1,138,592
6,339	Citizens Financial Group, Inc.		152,960
21,872	Colony Capital, Inc., REIT		566,922
25,700	Federated Investors, Inc., Class B		870,973
18,927	Fifth Street Asset Management, Inc.		213,307
54,900	KKR & Co. LP(b)		1,252,269
3,900	Medley Management, Inc., Class A		42,861
23,600	Morgan Stanley(b)		842,284
39,818	OM Asset Management PLC		742,207
28,900	Oppenheimer Holdings, Inc., Class A(b)		677,994
21,000	Popular, Inc.(a)(b)		722,190
8,900	Prudential Financial, Inc.		714,759
42,000	Radian Group, Inc.		705,180
14,800	Raymond James Financial, Inc.(b)		840,344
7,748	Sabra Health Care REIT, Inc.		256,846
1,276	ServisFirst Bancshares, Inc.		42,095
27,500	SunTrust Banks, Inc.(b)		1,129,975
6,900	Virtus Investment Partners, Inc.(b)		902,313
27,900	Voya Financial, Inc.(b)		1,202,769
			21,416,606
	Health Care — 22.3%
10,146	ABIOMED, Inc.(a)(b)		726,251
3,000	Actavis PLC(a)		892,860
3,588	Aetna, Inc.(b)		382,230
2,677	Agios Pharmaceuticals, Inc.(a)		252,441
10,785	Akorn, Inc.(a)(b)		512,395
43,945	Amedica Corp.(a)(b)		15,425
6,652	Amsurg Corp.(a)		409,231
13,000	Aquinox Pharmaceuticals, Inc.(a)(b)		111,540
19,452	Ascendis Pharma A/S, ADR(a)		337,492
50,000	Boston Scientific Corp.(a)(b)		887,500
8,000	Brookdale Senior Living, Inc.(a)(b)		302,080
11,000	Cardinal Health, Inc.(b)		992,970
19,768	Cempra, Inc.(a)(b)		678,240
3,602	Centene Corp.(a)		254,625
7,379	Civitas Solutions, Inc.(a)(b)		154,516
2,578	Coherus Biosciences, Inc.(a)(b)		78,835
1,662	Edwards Lifesciences Corp.(a)		236,769
8,000	Endo International PLC(a)		717,600
45,646	Endocyte, Inc.(a)(b)		285,744
6,603	ExamWorks Group, Inc.(a)		274,817
7,213	Fate Therapeutics, Inc.(a)(b)		35,272
4,714	Fluidigm Corp.(a)(b)		198,459
17,002	Globus Medical, Inc., Class A(a)(b)		429,130
8,841	HCA Holdings, Inc.(a)(b)		665,108
17,631	HealthSouth Corp.(b)		782,111
7,035	Hill-Rom Holdings, Inc.(b)		344,715
1,909	Humana, Inc.(b)		339,840
1,625	Illumina, Inc.(a)(b)		301,665
27,310	Immunomedics, Inc.(a)		104,597
23,583	Intersect ENT, Inc.(a)		609,149
5,694	K2M Group Holdings, Inc.(a)		125,553
31,000	Kindred Healthcare, Inc.(b)		737,490
33,395	LDR Holding Corp.(a)(b)		1,223,593
15,000	LHC Group, Inc.(a)(b)		495,450
17,926	Medtronic PLC		1,398,049

Continued

16

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Health Care — (continued)
13,838	NanoString Technologies, Inc.(a)(b)	$	141,009
66,017	Neovasc, Inc.(a)(b)		594,153
21,100	NuVasive, Inc.(a)(b)		970,389
23,144	Otonomy, Inc.(a)(b)		818,372
14,610	PharMerica Corp.(a)		411,856
4,808	Portola Pharmaceuticals, Inc.(a)		182,512
12,000	ProQR Therapeutics NV(a)		262,560
13,838	Relypsa, Inc.(a)(b)		499,137
23,961	Repros Therapeutics, Inc.(a)(b)		205,825
16,276	Sarepta Therapeutics, Inc.(a)(b)		216,145
42,596	Streamline Health Solutions, Inc.(a)(b)		152,068
10,132	Surgical Care Affiliates, Inc.(a)		347,832
14,263	Tekmira Pharmaceuticals Corp.(a)		249,032
5,500	Valeant Pharmaceuticals International, Inc.(a)(b)		1,092,410
16,956	VCA, Inc.(a)(b)		929,528
			23,366,570
	Industrials — 0.1%
6,323	Signature Group Holdings, Inc.(a)		38,823
	Information Technology — 17.8%
18,000	Adobe Systems, Inc.(a)(b)		1,330,920
9,500	Apple, Inc.		1,182,085
12,500	Autodesk, Inc.(a)		733,000
22,500	Callidus Software, Inc.(a)		285,300
35,500	Cisco Systems, Inc.(b)		977,137
5,000	eBay, Inc.(a)		288,400
420,393	ID Systems, Inc.(a)(b)		2,677,903
20,000	Informatica Corp.(a)		877,100
15,000	Interactive Intelligence Group, Inc.(a)		617,700
5,000	International Business Machines Corp.		802,500
56,020	Intralinks Holdings, Inc.(a)		579,247
134,000	Kofax, Ltd.(a)		1,467,300
10,000	LivePerson, Inc.(a)		102,350
27,182	Microsoft Corp.		1,105,084
15,000	Model N, Inc.(a)		179,400
50,000	Numerex Corp., Class A(a)		570,000
20,000	Oracle Corp.(b)		863,000
30,000	PROS Holdings, Inc.(a)		741,300
100,000	Redknee Solutions, Inc.(a)		353,717
40,000	Riverbed Technology, Inc.(a)		836,400
51,800	Seachange International, Inc.(a)		406,630
90,000	ServiceSource International, Inc.(a)(b)		279,000
10,000	Teradata Corp.(a)		441,400
8,000	TubeMogul, Inc.(a)		110,560
20,000	Yahoo!, Inc.(a)		888,700
			18,696,133
	Materials — 0.0%
1,000	Mesabi Trust(b)		13,330
	Telecommunication Services — 1.8%
150,709	Boingo Wireless, Inc.(a)		1,136,346
72,521	inContact, Inc.(a)		790,479
			1,926,825
	Total Common Stocks (Cost $86,510,709)		85,917,815

Shares		Fair Value
PREFERRED STOCKS — 0.8%
	Financials — 0.8%
203,388	Fannie Mae, Series R, 7.625%(b)	$	793,213
3,494	Freddie Mac		14,535
	Total Preferred Stocks (Cost $1,559,185)		807,748
Contracts
PUT OPTIONS PURCHASED — 0.3%
	Health Care — 0.3%
636	Health Care Select Sector SPDR, Expires 06/19/15, Strike Price $72(d)		125,292
230	Immunomedics, Inc., Expires 08/21/15, Strike Price $5		14,950
200	SPDR S&P Biotech ETF, Expires 04/17/15, Strike Price $225		196,000
	Total Put Options Purchased (Cost $235,786)		336,242
Shares
WARRANTS — 2.9%
	Financials — 2.9%
28,394	Ambac Financial Group, Inc., (Issued/exercisable 05/01/13, 1 Share for 1 Warrant, Expires 04/30/23, Strike Price $16.67)(b)		381,615
339,150	Bank of America Corp., (Issued/exercisable 01/09/09, 1 Share for 1 Warrant, Expires 10/28/18, Strike Price $30.79)(b)		176,358
25,900	Capital One Financial Corp., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $42.13)(b)		959,336
40,699	Comerica, Inc., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $29.40)(b)		659,731
215,600	Zions Bancorporation, (Issued/exercisable 05/20/10, 1 Share for 1 Warrant, Expires 05/22/20, Strike Price $36.40)(b)		776,160
51,409	Zions Bancorporation, (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $36.27)(b)		107,959
	Total Warrants (Cost $3,589,179)		3,061,159
Principal         Amount
CORPORATE BONDS — 1.4%
	Information Technology — 1.4%
$2,000,000	ServiceSource International, Inc., 1.500%, 8/1/18		1,471,250
	Total Corporate Bonds (Cost $1,591,528)		1,471,250
Total Long-Term Investments — 87.3% (Cost $93,486,387)			91,594,214

Continued

17

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 12.3%
12,889,113	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(e)	$	12,889,113
	Total Money Market Fund (Cost $12,889,113)		12,889,113
Total Investments Before Investments Sold Short — 99.6% (Cost $106,375,500)			104,483,327
INVESTMENTS SOLD SHORT — (28.4)%
	Energy — (3.0)%
(10,000)	Chevron Corp.		(1,049,800	)
(10,000)	Exxon Mobil Corp.		(850,000	)
(9,500)	Helmerich & Payne, Inc.		(646,665	)
(21,000)	Unit Corp.(a)		(587,580	)
(3,400)	Vanguard Natural Resources, LLC		(47,532	)
			(3,181,577	)
	Exchange Traded Funds — (1.8)%
(12,000)	Energy Select Sector SPDR Fund		(930,960	)
(4,000)	SPDR S&P Biotech ETF		(902,000	)
			(1,832,960	)
	Financials — (10.1)%
(27,000)	American Homes 4 Rent, Class A, REIT		(446,850	)
(24,100)	American Residential Properties, Inc., REIT(a)		(433,559	)
(34,900)	Astoria Financial Corp.		(451,955	)
(36,000)	Capitol Federal Financial, Inc.		(450,000	)
(10,600)	Commerce Bancshares, Inc.		(448,592	)
(27,800)	Dime Community Bancshares, Inc.		(447,580	)
(3,100)	Federal Realty Investment Trust, REIT		(456,351	)
(11,000)	Financial Engines, Inc.		(460,130	)
(50,300)	First Commonwealth Financial Corp.		(452,700	)
(15,200)	FirstMerit Corp.		(289,712	)
(12,600)	Gaming and Leisure Properties, Inc., REIT		(464,562	)
(23,200)	Mack-Cali Realty Corp., REIT		(447,296	)
(38,100)	Northwest Bancshares, Inc.		(451,485	)
(32,100)	Old National Bancorp		(455,499	)
(55,200)	People’s United Financial, Inc.		(839,040	)
(9,700)	ProAssurance Corp.		(445,327	)
(7,200)	Royal Bank of Canada		(434,592	)
(28,100)	Silver Bay Realty Trust Corp., REIT		(454,096	)
(5,800)	Taubman Centers, Inc., REIT		(447,354	)
(13,200)	Unum Group		(445,236	)
(47,700)	Valley National Bancorp		(450,288	)
(10,100)	Westamerica Bancorporation		(436,421	)
(9,500)	Willis Group Holdings PLC		(457,710	)
			(10,566,335	)
	Health Care — (6.6)%
(4,445)	Albany Molecular Research, Inc.(a)		(78,232	)
(5,364)	AstraZeneca PLC, ADR		(367,059	)
(3,869)	athenahealth, Inc.(a)		(461,920	)
(7,455)	Baxter International, Inc.		(510,668	)
(4,598)	Bruker Corp.(a)		(84,925	)
(1,517)	Chemed Corp.		(181,130	)
(2,628)	Computer Programs & Systems, Inc.		(142,595	)
(5,000)	Exact Sciences Corp.(a)		(110,100	)
(2,892)	Foundation Medicine, Inc.(a)		(139,134	)
(604)	Haemonetics Corp.(a)		(27,132	)
(5,156)	Halozyme Therapeutics, Inc.(a)		(73,628	)
(5,227)	HMS Holdings Corp.(a)		(80,757	)
(2,115)	IDEXX Laboratories, Inc.(a)		(326,725	)

Shares		Fair Value
INVESTMENTS SOLD SHORT — (continued)
	Health Care — (continued)
(18,607)	ImmunoGen, Inc.(a)	$	(166,533	)
(13,000)	Intrexon Corp.(a)		(589,810	)
(6,268)	IPC Healthcare, Inc.(a)		(292,339	)
(3,220)	Isis Pharmaceuticals, Inc.(a)		(205,017	)
(6,961)	Johnson & Johnson		(700,277	)
(1,148)	LifePoint Hospitals, Inc.(a)		(84,321	)
(5,418)	Medidata Solutions, Inc.(a)		(265,699	)
(16,903)	Myriad Genetics, Inc.(a)		(598,366	)
(6,784)	Roche Holding AG, ADR		(233,234	)
(1,820)	TESARO, Inc.(a)		(104,468	)
(2,100)	Varian Medical Systems, Inc.(a)		(197,589	)
(1,677)	Vertex Pharmaceuticals, Inc.(a)		(197,836	)
(862)	Waters Corp.(a)		(107,164	)
(3,302)	Zimmer Holdings, Inc.		(388,051	)
(17,152)	ZIOPHARM Oncology, Inc.(a)		(184,727	)
			(6,899,436	)
	Information Technology — (6.8)%
(5,000)	Akamai Technologies, Inc.(a)		(355,225	)
(7,000)	Alibaba Group Holding, Ltd., ADR(a)		(582,680	)
(35,000)	Angie’s List, Inc.(a)		(205,450	)
(10,000)	ARRIS Group, Inc.(a)		(288,950	)
(5,000)	Arrow Electronics, Inc.(a)		(305,750	)
(10,000)	Aspen Technology, Inc.(a)		(384,900	)
(10,000)	Box, Inc., Class A, Class A(a)		(197,500	)
(22,800)	Cadence Design Systems, Inc.(a)		(420,432	)
(3,189)	Cimpress NV(a)		(269,088	)
(7,500)	Juniper Networks, Inc.		(169,350	)
(7,100)	LendingClub Corp.(a)		(139,515	)
(1,500)	NetSuite, Inc.(a)		(139,140	)
(20,000)	Nuance Communications, Inc.(a)		(287,000	)
(20,000)	NVIDIA Corp.		(418,500	)
(18,089)	Polycom, Inc.(a)		(242,391	)
(10,000)	Seagate Technology PLC		(520,300	)
(5,000)	SolarWinds, Inc.(a)		(256,200	)
(5,000)	Splunk, Inc.(a)		(296,000	)
(25,000)	Symantec Corp.		(584,125	)
(41,700)	Violin Memory, Inc.(a)		(157,209	)
(5,000)	Western Digital Corp.		(455,050	)
(24,100)	Western Union Co. (The)		(501,521	)
			(7,176,276	)

Continued

18

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares			Fair Value
INVESTMENTS SOLD SHORT — (continued)
	Telecommunication Services — (0.1)%
(15,000)	ORBCOMM, Inc.(a)		$	(89,550	)
Total Investments Sold Short — (28.4)% (Cost $(29,153,973))		��		(29,746,134	)
Total Investments — 71.2% (Cost $77,221,527)				74,737,193
Net Other Assets (Liabilities) — 28.8%				30,166,781
NET ASSETS — 100.0%			$	104,903,974

(a) Represents non-income producing security.

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

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

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

(e) Represents the current yield as of report date.

ADR — American Depositary Receipt

ETF — Exchange Traded Funds

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

19

Sterling Capital Behavioral International Equity Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 97.2%
	Australia — 6.7%
20,150	Bendigo & Adelaide Bank, Ltd.	$	192,608
5,925	Commonwealth Bank of Australia		421,493
36,400	Dexus Property Group, REIT		210,148
22,425	GPT Group (The), REIT		78,056
17,150	Lend Lease Group		217,356
4,200	Macquarie Group, Ltd.		245,262
29,100	WorleyParsons, Ltd.		211,666
			1,576,589
	Belgium — 1.0%
2,600	Delhaize Group SA		234,051
	China — 0.9%
234,000	Yangzijiang Shipbuilding Holdings, Ltd.		215,696
	Denmark — 2.0%
100	A.P. Moller - Maersk A/S, Class B		209,249
6,000	Vestas Wind Systems A/S		248,595
			457,844
	Finland — 1.1%
13,400	UPM-Kymmene OYJ		261,078
	France — 7.6%
3,000	Cap Gemini SA		246,350
1,275	Christian Dior SE		240,942
2,925	Electricite de France SA		70,261
10,975	GDF Suez		217,194
16,675	Orange SA		268,318
2,950	Sanofi		291,600
3,600	Technip SA		218,202
1,625	Valeo SA		242,958
			1,795,825
	Germany — 7.7%
2,000	Allianz SE		348,057
250	Continental AG		59,219
2	Deutsche Telekom AG		37
4,375	Fresenius SE & Co. KGaA		261,506
2,425	Hannover Rueck SE		250,839
1,000	Henkel AG & Co. KGaA		103,417
2,300	Merck KGaA		258,559
5,225	ProSiebenSat.1 Media AG		256,778
1,150	Siemens AG		124,519
3,375	United Internet AG		153,886
			1,816,817
	Hong Kong — 5.2%
66,625	BOC Hong Kong Holdings, Ltd.		237,620
13,700	Hang Seng Bank, Ltd.		248,283
35,925	Kerry Properties, Ltd.		124,884
115,875	NWS Holdings, Ltd.		193,109
319,150	PCCW, Ltd.		194,718
63,950	Yue Yuen Industrial Holdings, Ltd.		226,017
			1,224,631
	Ireland — 1.5%
12,325	Experian PLC		204,219
1,925	Shire PLC		153,199
			357,418
	Israel — 2.3%
118,275	Bezeq The Israeli Telecommunication Corp., Ltd.		220,541

Shares		Fair Value
COMMON STOCKS — (continued)
	Israel — (continued)
5,125	Teva Pharmaceutical Industries, Ltd.	$	321,464
			542,005
	Italy — 1.0%
78,350	Intesa Sanpaolo SpA		244,143
	Japan — 24.8%
42,000	Aozora Bank, Ltd.		149,181
27,000	Asahi Kasei Corp.		258,665
9,800	Brother Industries, Ltd.		156,313
1,500	Central Japan Railway Co.		271,960
18,000	Daicel Corp.		215,066
48,000	Fuji Electric Co., Ltd.		226,923
1,200	Fuji Heavy Industries, Ltd.		39,932
5,600	Japan Tobacco, Inc.		177,453
58,500	JX Holdings, Inc.		225,445
12,900	KDDI Corp.		292,612
134,000	Kobe Steel, Ltd.		248,034
10,500	Komatsu, Ltd.		206,831
41,600	Mitsubishi Chemical Holdings Corp.		242,313
21,000	Mitsubishi Electric Corp.		250,123
21,800	Nexon Co., Ltd.		232,659
32,000	Nippon Steel & Sumitomo Metal Corp.		80,710
8,200	NOK Corp.		247,501
7,900	Otsuka Holdings Co., Ltd.		247,635
7,800	Panasonic Corp.		102,561
42,400	Resona Holdings, Inc.		210,913
10,300	Seiko Epson Corp.		183,010
39,000	Sumitomo Heavy Industries, Ltd.		255,914
13,500	Sumitomo Rubber Industries, Ltd.		249,660
8,200	Toyota Motor Corp.		573,149
10,100	Yamaha Motor Co., Ltd.		244,384
14,000	Yamazaki Baking Co., Ltd.		252,954
			5,841,901
	Netherlands — 3.6%
3,825	Boskalis Westminster NV		188,367
3,350	Heineken Holding NV		230,893
3,050	Heineken NV		232,943
5,525	Wolters Kluwer NV		180,598
			832,801
	Norway — 1.1%
5,200	Yara International ASA		264,657
	Singapore — 2.0%
69,000	Ascendas REIT		130,222
13,000	Oversea-Chinese Banking Corp., Ltd.		100,127
98,100	Wilmar International, Ltd.		233,035
			463,384
	Spain — 2.9%
32,825	Banco Bilbao Vizcaya Argentaria SA		332,055
45,818	Banco Santander SA		345,698
			677,753
	Sweden ��� 2.4%
11,400	Boliden AB		226,884
11,950	Industrivarden AB, Class C		224,648
5,850	Securitas AB, Class B		84,026
1,225	Swedbank AB, Class A		29,316
			564,874

Continued

20

Sterling Capital Behavioral International Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Switzerland — 7.1%
2,950	Adecco SA	$	245,884
600	Aryzta AG		36,890
1,675	Baloise Holding AG		221,828
1,825	Lonza Group AG		228,172
1,200	Roche Holding AG		331,056
3,050	Swiss Re AG		295,333
925	Zurich Insurance Group AG		313,442
			1,672,605
	United Kingdom — 16.3%
9,625	3i Group PLC		68,875
31,100	Aberdeen Asset Management PLC		212,030
12,575	Amec Foster Wheeler PLC		168,909
5,450	AstraZeneca PLC		374,029
36,350	Direct Line Insurance Group PLC		172,009
54,650	HSBC Holdings PLC		465,327
32,675	ICAP PLC		255,436
6,475	Imperial Tobacco Group PLC		284,595
30,650	Marks & Spencer Group PLC		243,243
20,975	National Grid PLC		269,044
9,175	Persimmon PLC		226,337
34,775	Royal Mail PLC		226,149
9,825	SSE PLC		218,324
17,300	Subsea 7 SA		148,932
41,100	William Hill PLC		226,128
11,900	WPP PLC		270,258
			3,829,625
	Total Common Stocks (Cost $22,646,230)		22,873,697
EXCHANGE TRADED FUND — 0.7%
	United States — 0.7%
2,575	iShares MSCI EAFE ETF		165,238
	Total Exchange Traded Fund (Cost $157,332)		165,238

Shares		Fair Value
MONEY MARKET FUND — 1.6%
	United States — 1.6%
362,787	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(a)	$	362,787
	Total Money Market Fund (Cost $362,787)		362,787
Total Investments — 99.5% (Cost $23,166,349)			23,401,722
Net Other Assets (Liabilities) — 0.5%			122,918
NET ASSETS — 100.0%		$	23,524,640

(a) Represents the current yield as of report date.

ETF — Exchange Traded Fund

REIT — Real Estate Investment Trust

Sector	Percentage of net assets
Consumer Discretionary		15.4	%
Consumer Staples		7.6	%
Energy		4.1	%
Exchange Traded Fund		0.7	%
Financials		27.0	%
Health Care		10.5	%
Industrials		13.4	%
Information Technology		4.1	%
Materials		7.6	%
Money Market Fund		1.6	%
Telecommunication Services		4.2	%
Utilities		3.3	%
		99.5	%

See accompanying notes to the Financial Statements.

21

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal      Amount		Fair Value
ASSET BACKED SECURITIES — 14.6%
$      17,729	AmeriCredit Automobile Receivables Trust, Series 2011-5, Class B, 2.450%, 12/8/16	$	17,735
310,000	AmeriCredit Automobile Receivables Trust, Series 2012-4, Class B, 1.310%, 11/8/17		310,732
500,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2010-5A, Class A, 3.150%, 3/20/17(a)		508,609
250,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2011-3A, Class A, 3.410%, 11/20/17(a)		258,036
300,000	Capital One Multi-Asset Execution Trust, Series 2006-A3, Class A3, 5.050%, 12/17/18		311,549
285,000	CarMax Auto Owner Trust, Series 2013-4, Class A3, 0.800%, 7/16/18		284,861
570,000	CarMax Auto Owner Trust, Series 2014-1, Class A3, 0.790%, 10/15/18		569,130
500,000	Citibank Credit Card Issuance Trust, Series 2013-A3, Class A3, 1.110%, 7/23/18		501,996
24,016	Countrywide Asset-Backed Certificates, Series 2005-6, Class M1, 0.661%, 12/25/35(b)		23,966
527,103	Enterprise Fleet Financing, LLC, Series 2014-1, Class A2, 0.870%, 9/20/19(a)		527,109
500,000	Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a)		499,573
525,000	Fifth Third Auto Trust, Series 2014-2, Class A3, 0.890%, 11/15/18		525,026
106,183	First Franklin Mortgage Loan Trust, Series 2005-FF5, Class M1, 0.846%, 3/25/35(b)		105,982
400,000	Hyundai Auto Receivables Trust, Series 2012-C, Class B, 1.060%, 6/15/18		399,053
76,288	Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.361%, 1/25/36(b)		75,287
94,291	Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.431%, 11/25/35(b)		93,171
114,090	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.671%, 3/25/35(b)		113,243
250,000	Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18		250,807
645,000	Santander Drive Auto Receivables Trust, Series 2013-1, Class B, 1.160%, 1/15/19		646,158
200,000	Santander Drive Auto Receivables Trust 2014-2, Series 2014-2, Class B, 1.620%, 2/15/19		200,440
166,136	Structured Asset Securities Corp. Mortgage Loan Trust, Series 2006-OPT1, Class A4, 0.331%, 4/25/36(b)		165,608
	Total Asset Backed Securities (Cost $6,385,528)		6,388,071
COLLATERALIZED MORTGAGE OBLIGATIONS — 0.8%
114,188	Fannie Mae, Series 2009-114, Class AC, 2.500%, 12/25/23		115,923
117,102	Fannie Mae, Series 2006-90, Class BE, 6.000%, 4/1/35		120,310
121,894	Morgan Stanley Mortgage Loan Trust, Series 2005-5AR, Class 1A3, 0.441%, 9/25/35(b)		121,356
	Total Collateralized Mortgage Obligations (Cost $357,225)		357,589

Principal      Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — 20.4%
$      35,000	Banc of America Commercial Mortgage Trust, Series 2006-2, Class A4, 5.727%, 5/10/45(b)	$	36,020
540,000	Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/1/46		571,201
316,000	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		326,624
84,180	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.431%, 11/10/42(b)		84,097
345,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-2, Class AJ, 4.953%, 7/10/43(b)		345,797
160,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4B, 4.943%, 9/11/42		161,952
500,000	CD Commercial Mortgage Trust, Series 2005-CD1, Class AM, 5.225%, 7/15/44(b)		507,707
250,608	CD Mortgage Trust, Series 2006-CD2, Class A4, 5.298%, 1/15/46(b)		255,421
186,453	COMM Mortgage Trust, Series 2006-C7, Class A4, 5.751%, 6/10/46(b)		193,234
400,000	COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/1/46		426,355
450,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(b)		456,784
257,846	GMAC Commercial Mortgage Securities, Inc., Series 2005-C1, Class AM, 4.754%, 5/10/43		257,704
538,326	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB15, Class A4, 5.814%, 6/12/43(b)		558,796
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AM, 5.269%, 12/15/44(b)		511,157
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		524,365
191,469	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/47		202,193
468,517	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/49		496,734
7,517	LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4, 4.568%, 1/15/31		7,647
185,000	Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class AM, 4.805%, 6/12/43(b)		185,699
500,000	Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.307%, 1/12/44(b)		513,523
445,000	Morgan Stanley Capital I Trust, Series 2005-HQ7, Class AM, 5.204%, 11/14/42(b)		453,301
275,000	Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.462%, 3/12/44(b)		283,518
500,000	Morgan Stanley Capital I Trust, Series 2006-HQ9, Class AM, 5.773%, 7/12/44(b)		525,372
586,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class AMFX, 5.179%, 7/15/42(b)		590,466

Continued

22

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$    462,878	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48	$	486,727
	Total Commercial Mortgage-Backed Securities (Cost $9,254,360)		8,962,394
CORPORATE BONDS — 60.1%
	Consumer Discretionary — 5.3%
200,000	D.R. Horton, Inc., 6.500%, 4/15/16		209,500
300,000	Daimler Finance North America, LLC, 3.000%, 3/28/16(a)		306,353
240,000	DIRECTV Holdings, LLC/DIRECTV Financing Co., Inc., 3.500%, 3/1/16		245,280
250,000	ERAC USA Finance, LLC, 5.600%, 5/1/15(a)		250,841
425,000	Ford Motor Credit Co., LLC, 0.899%, 3/27/17(b)		424,830
250,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		252,790
315,000	Hyundai Capital Services, Inc., 6.000%, 5/5/15(a)		316,202
300,000	Omnicom Group, Inc., 5.900%, 4/15/16		314,025
			2,319,821
	Consumer Staples — 1.7%
225,000	Cargill, Inc., 1.900%, 3/1/17(a)		228,455
250,000	Dr Pepper Snapple Group, Inc., 2.900%, 1/15/16		254,023
250,000	Lorillard Tobacco Co., 3.500%, 8/4/16		256,949
			739,427
	Energy — 3.4%
250,000	BP Capital Markets PLC, 3.200%, 3/11/16		255,769
431,000	Enterprise Products Operating, LLC, 1.250%, 8/13/15		431,629
265,000	Kinder Morgan Energy Partners LP, 4.100%, 11/15/15		269,669
200,000	Kinder Morgan, Inc., 7.000%, 6/15/17		220,608
300,000	Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16		315,657
			1,493,332
	Financials — 36.5%
450,000	ABN AMRO Bank NV, 1.056%, 10/28/16(a)(b)		453,001
336,000	ACE INA Holdings, Inc., 5.600%, 5/15/15		337,758
300,000	Aegon NV, 4.625%, 12/1/15		307,639
275,000	Ally Financial, Inc., 4.625%, 6/26/15		276,375
288,000	American International Group, Inc., 5.050%, 10/1/15		294,122
320,000	Associated Banc-Corp, 5.125%, 3/28/16		331,499
450,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.000%, 2/26/16(a)		450,518
350,000	CNA Financial Corp., 6.500%, 8/15/16		374,945
400,000	Comerica, Inc., 3.000%, 9/16/15		404,152
445,000	Countrywide Financial Corp., 6.250%, 5/15/16		468,144
373,000	DDR Corp., REIT, 9.625%, 3/15/16		402,312
250,000	Eksportfinans ASA, 2.375%, 5/25/16		250,893
263,000	Endurance Specialty Holdings, Ltd., 6.150%, 10/15/15		269,945
375,000	ERP Operating LP, REIT, 5.125%, 3/15/16		389,783
185,000	Fifth Third Bancorp, 0.690%, 12/20/16(b)		183,890

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$    320,000	HCP, Inc., REIT, 3.750%, 2/1/16	$	327,266
350,000	Health Care REIT, Inc., 6.200%, 6/1/16		370,733
190,000	HSBC Finance Corp., 5.500%, 1/19/16		196,736
220,000	Huntington National Bank (The), BKNT, 1.300%, 11/20/16		220,216
410,000	ING Bank NV, 2.000%, 9/25/15(a)		412,622
340,000	Jefferies Group, LLC, 3.875%, 11/9/15		344,568
540,000	JPMorgan Chase & Co., 5.150%, 10/1/15		551,189
211,000	KeyBank NA, BKNT, 4.950%, 9/15/15		215,168
305,000	Kilroy Realty LP, REIT, 5.000%, 11/3/15		311,508
450,000	Kimco Realty Corp., REIT, MTN, 5.783%, 3/15/16		469,826
250,000	Liberty Mutual Group, Inc., 6.700%, 8/15/16(a)		268,504
300,000	Macquarie Group, Ltd., 1.255%, 1/31/17(a)(b)		301,611
400,000	Manulife Financial Corp., 3.400%, 9/17/15		404,927
500,000	Morgan Stanley, GMTN, 4.000%, 7/24/15		505,057
305,000	MUFG Union Bank NA, BKNT, 5.950%, 5/11/16		321,338
419,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		444,018
255,000	National Retail Properties, Inc., REIT, 6.150%, 12/15/15		263,552
425,000	PNC Funding Corp., 2.700%, 9/19/16		435,101
250,000	Raymond James Financial, Inc., 4.250%, 4/15/16		259,586
228,000	Realty Income Corp., REIT, 5.500%, 11/15/15		234,214
300,000	Regions Financial Corp., 5.750%, 6/15/15		302,661
300,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		323,513
350,000	Royal Bank of Scotland Group PLC, 2.550%, 9/18/15		352,553
285,000	Senior Housing Properties Trust, REIT, 4.300%, 1/15/16		289,290
250,000	Societe Generale SA, 3.100%, 9/14/15(a)		252,577
425,000	Sumitomo Mitsui Banking Corp., 0.900%, 1/18/16		425,541
365,000	SunTrust Banks, Inc., 3.600%, 4/15/16		374,126
275,000	Symetra Financial Corp., 6.125%, 4/1/16(a)		285,878
400,000	UBS AG, 7.000%, 10/15/15		412,737
116,000	US Bancorp, 3.442%, 2/1/16		118,327
250,000	Ventas Realty LP/Ventas Capital Corp., REIT, 3.125%, 11/30/15		253,550
425,000	Wells Fargo & Co., 1.250%, 7/20/16		427,342
125,000	WR Berkley Corp., 5.600%, 5/15/15		125,654
			15,996,465
	Health Care — 3.7%
200,000	AbbVie, Inc., 1.200%, 11/6/15		200,292
415,000	Actavis Funding SCS, 1.348%, 3/12/18(b)		417,619
300,000	Boston Scientific Corp., 6.400%, 6/15/16		317,809
325,000	Medco Health Solutions, Inc., 2.750%, 9/15/15		327,771
375,000	Zimmer Holdings, Inc., 1.450%, 4/1/17		375,743
			1,639,234
	Industrials — 2.6%
200,000	CNH Industrial Capital, LLC, 3.875%, 11/1/15		201,500
285,000	International Lease Finance Corp., 4.875%, 4/1/15		285,000
165,000	Norfolk Southern Corp., 5.750%, 1/15/16		171,305
215,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 3.125%, 5/11/15(a)		215,454

Continued

23

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Industrials — (continued)
$    250,000	Ryder System, Inc., MTN, 7.200%, 9/1/15	$	256,281
			1,129,540
	Materials — 1.9%
245,000	Dow Chemical Co. (The), 2.500%, 2/15/16		248,643
200,000	Ecolab, Inc., 3.000%, 12/8/16		206,213
360,000	Glencore Finance Canada, Ltd., 2.050%, 10/23/15(a)		361,512
			816,368
	Telecommunication Services — 1.7%
250,000	British Telecommunications PLC, 2.000%, 6/22/15		250,789
275,000	Telefonica Emisiones SAU, 3.729%, 4/27/15		275,515
241,000	Verizon Communications, Inc., 2.500%, 9/15/16		246,129
			772,433
	Utilities — 3.3%
215,000	Dominion Gas Holdings, LLC, 1.050%, 11/1/16		215,421
404,000	Progress Energy, Inc., 5.625%, 1/15/16		419,105
340,000	PSEG Power, LLC, 5.500%, 12/1/15		350,248
250,000	Sempra Energy, 6.500%, 6/1/16		265,968
215,000	Southern Power Co., Series D, 4.875%, 7/15/15		217,603
			1,468,345
	Total Corporate Bonds (Cost $26,386,387)		26,374,965
MUNICIPAL BONDS — 2.2%
	Arkansas — 0.5%
215,000	Fort Smith, AR, Sales & Use Tax, Public Improvements Revenue, 2.000%, 5/1/15		215,327
	Illinois — 1.2%
500,000	Illinois State, Pension Funding, G.O., Taxable, OID, 4.050%, 6/1/15		502,605
	Indiana — 0.3%
125,000	Indiana Finance Authority, National Collegiate Project, Refunding & Acquisition Revenue, Callable 5/1/15 @ 100, 5.000%, 5/1/25		125,499

Principal     Amount		Fair Value
MUNICIPAL BONDS — (continued)
	New York — 0.2%
$    100,000	Metropolitan Transportation Authority, Transit Improvements Revenue, Series A2, 5.000%, 11/15/15	$	103,036
	Total Municipal Bonds (Cost $946,289)		946,467
Shares
MONEY MARKET FUND — 1.2%
534,813	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		534,813
	Total Money Market Fund (Cost $534,813)		534,813
Total Investments — 99.3% (Cost $43,864,602)			43,564,299
Net Other Assets (Liabilities) — 0.7%			306,877
NET ASSETS — 100.0%		$	43,871,176

(a) Rule 144A, Section 4(2) or other security that 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, 2015. The maturity date reflected is the final maturity date.

(c) Represents the current yield as of report date.

BKNT — Bank Note

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN — Medium Term Note

OID — Original Issue Discount

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

24

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 8.4%
$    900,000	AmeriCredit Automobile Receivables Trust, Series 2012-5, Class B, 1.120%, 11/8/17	$	902,387
470,000	AmeriCredit Automobile Receivables Trust, Series 2012-1, Class C, 2.670%, 1/8/18		474,191
1,250,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-3A, Class A, 2.100%, 3/20/19(a)		1,261,059
930,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2013-1A, Class A, 1.920%, 9/20/19(a)		929,902
900,000	Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a)		899,231
156,180	First Franklin Mortgage Loan Trust, Series 2005-FF5, Class M1, 0.846%, 3/25/35(b)		155,883
500,000	Ford Credit Auto Owner Trust, Series 2012-D, Class B, 1.010%, 5/15/18		498,091
350,000	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A1, 1.120%, 8/25/17(a)		350,013
950,000	Hyundai Auto Receivables Trust, Series 2013-B, Class B, 1.450%, 2/15/19		952,141
111,888	Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.361%, 1/25/36(b)		110,421
128,978	Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE1, Class A3, 0.381%, 2/25/36(b)		128,716
86,481	Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.431%, 11/25/35(b)		85,453
250,263	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.671%, 3/25/35(b)		248,404
700,000	Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18		702,260
	Total Asset Backed Securities (Cost $7,695,435)		7,698,152
COLLATERALIZED MORTGAGE OBLIGATIONS — 2.2%
168,604	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		178,686
172,093	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-J7, Class 1A3, 5.250%, 8/25/33		175,535
226,838	Fannie Mae, Series 2003-66, Class PA, 3.500%, 2/25/33		235,224
81,356	Fannie Mae, Series 2005-67, Class HG, 5.500%, 1/25/35		88,313
181,595	Fannie Mae, Series 2009-100, Class PA, 4.500%, 4/25/39		191,086
169,560	Freddie Mac, Series 2770, Class UE, 4.500%, 3/15/19		178,010
735,000	Ginnie Mae, Series 2013-165, Class PB, 3.000%, 3/20/41		761,382
100,273	PHHMC Trust, Series 2007-6, Class A1, 5.457%, 12/18/37(b)		100,016
87,374	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		90,075
	Total Collateralized Mortgage Obligations (Cost $1,977,691)		1,998,327

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — 19.1%
$    560,843	Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(b)	$	584,853
475,000	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		490,970
730,000	Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51		776,781
223,883	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.431%, 11/10/42(b)		223,662
200,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		201,234
600,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-2, Class AJ, 4.953%, 7/10/43(b)		601,386
673,010	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(a)		665,775
500,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2005-PWR9, Class A4B, 4.943%, 9/11/42		506,101
740,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		800,963
350,000	CD Commercial Mortgage Trust, Series 2005-CD1, Class AM, 5.225%, 7/15/44(b)		355,395
475,000	CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49		500,079
120,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.703%, 12/1/49(b)		129,815
655,000	COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/1/46		698,157
615,000	COMM Mortgage Trust, Series 2007-C9, Class A4, 5.798%, 12/10/49(b)		668,352
396,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(b)		401,970
635,000	Commercial Mortgage Trust, Series 2007-GG9, Class A4, 5.444%, 3/10/39		670,051
275,036	GMAC Commercial Mortgage Securities, Inc., Series 2005-C1, Class AM, 4.754%, 5/10/43		274,885
600,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP2, Class AM, 4.780%, 7/15/42		600,895
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AM, 5.269%, 12/15/44(b)		511,157
420,960	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		436,381
600,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		629,239
215,402	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/47		227,467
173,351	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/49		183,792
59,778	Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class AJ, 5.263%, 9/12/42(b)		59,756
500,000	Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.307%, 1/12/44(b)		513,523

Continued

25

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$    580,000	ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 5.874%, 8/12/49(b)	$	628,957
900,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8, Class A2, 1.689%, 12/15/48		904,816
688,432	Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 5.876%, 8/12/41(b)		720,163
530,000	Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AM, 5.360%, 11/1/41		561,033
699,923	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.270%, 1/11/43(b)		777,786
394,000	Morgan Stanley Capital I Trust, Series 2006-HQ9, Class AM, 5.773%, 7/12/44(b)		413,993
638,000	Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class AMFX, 5.179%, 7/15/42(b)		642,862
331,311	Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(b)		343,747
323,142	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48		339,791
500,000	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class A3, 3.998%, 3/15/44(a)		532,685
	Total Commercial Mortgage-Backed Securities (Cost $18,208,093)		17,578,472
CORPORATE BONDS — 65.0%
	Consumer Discretionary — 5.5%
370,000	Daimler Finance North America, LLC, 2.625%, 9/15/16(a)		378,132
400,000	ERAC USA Finance, LLC, 6.375%, 10/15/17(a)		448,206
500,000	Ford Motor Credit Co., LLC, 6.625%, 8/15/17		555,282
385,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		389,297
200,000	Hyundai Capital America, 1.875%, 8/9/16(a)		201,731
395,000	Hyundai Capital America, 1.450%, 2/6/17(a)		395,437
350,000	Levi Strauss & Co., 7.625%, 5/15/20		364,000
500,000	Lowe’s Cos., Inc., 6.100%, 9/15/17		560,878
270,000	Royal Caribbean Cruises, Ltd., 11.875%, 7/15/15		277,425
550,000	Time Warner Cable, Inc., 5.850%, 5/1/17		598,222
525,000	Volkswagen Group of America Finance, LLC, 1.250%, 5/23/17(a)		525,622
355,000	Whirlpool Corp., 1.350%, 3/1/17		355,809
			5,050,041
	Consumer Staples — 1.8%
500,000	Anheuser-Busch InBev Finance, Inc., 1.250%, 1/17/18		500,628
480,000	CVS Caremark Corp., 1.200%, 12/5/16		483,183
425,000	Lorillard Tobacco Co., 3.500%, 8/4/16		436,813
205,000	Walgreens Boots Alliance, Inc., 1.750%, 11/17/17		206,862
			1,627,486
	Energy — 7.7%
410,000	BP Capital Markets PLC, 2.248%, 11/1/16		417,759

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Energy — (continued)
$    295,000	Chesapeake Energy Corp., 3.503%, 4/15/19(b)	$	283,937
390,000	CNOOC Finance 2013, Ltd., 1.125%, 5/9/16		389,519
500,000	Enbridge Energy Partners LP, Series B, 6.500%, 4/15/18		557,007
560,000	Energy Transfer Partners LP, 6.125%, 2/15/17		604,672
570,000	FMC Technologies, Inc., 2.000%, 10/1/17		569,332
530,000	Kinder Morgan, Inc., 7.000%, 6/15/17		584,611
375,000	Magellan Midstream Partners LP, 5.650%, 10/15/16		400,550
450,000	Phillips 66, 2.950%, 5/1/17		465,425
380,000	Pioneer Natural Resources Co., 6.650%, 3/15/17		413,055
585,000	Plains All American Pipeline LP/PAA Finance Corp., 6.125%, 1/15/17		631,751
500,000	Southern Natural Gas Co., LLC, 5.900%, 4/1/17(a)		537,546
260,000	Spectra Energy Capital, LLC, 6.200%, 4/15/18		288,791
350,000	Total Capital International SA, 0.826%, 8/10/18(b)		351,848
300,000	Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16		315,657
250,000	Williams Partners LP/Williams Partners Finance Corp., 7.250%, 2/1/17		274,648
			7,086,108
	Financials — 34.4%
475,000	ABN AMRO Bank NV, 4.250%, 2/2/17(a)		499,552
400,000	Aflac, Inc., 2.650%, 2/15/17		412,351
400,000	Ally Financial, Inc., 2.750%, 1/30/17		398,524
580,000	American Express Credit Corp., MTN, 1.125%, 6/5/17		579,886
410,000	American International Group, Inc., MTN, 5.450%, 5/18/17		446,223
500,000	American Tower Corp., REIT, 7.000%, 10/15/17		563,123
1,000,000	Bank of America Corp., 5.750%, 12/1/17		1,100,350
450,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.700%, 3/5/18(a)		450,523
540,000	BNP Paribas SA, MTN, 1.250%, 12/12/16		542,083
400,000	Caisse Centrale Desjardins, 1.550%, 9/12/17(a)		400,299
585,000	Capital One Bank USA NA, 1.300%, 6/5/17		581,664
380,000	Charles Schwab Corp., MTN (The), 6.375%, 9/1/17		425,640
350,000	CIT Group, Inc., 4.250%, 8/15/17		354,375
1,000,000	Citigroup, Inc., 1.957%, 5/15/18(b)		1,032,100
395,000	CNA Financial Corp., 6.500%, 8/15/16		423,152
315,000	Comerica Bank, BKNT, 5.750%, 11/21/16		337,678
600,000	Compass Bank, BKNT, 1.850%, 9/29/17		604,324
500,000	Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.375%, 1/19/17		521,101
400,000	Credit Suisse, GMTN, 1.375%, 5/26/17		400,721
470,000	DDR Corp., REIT, 9.625%, 3/15/16		506,934
250,000	Endurance Specialty Holdings, Ltd., 6.150%, 10/15/15		256,602
250,000	Essex Portfolio LP, REIT, 5.500%, 3/15/17		269,248
422,000	Federal Realty Investment Trust, REIT, 6.200%, 1/15/17		462,625
250,000	Fifth Third Bancorp, 0.690%, 12/20/16(b)		248,499
325,000	Fifth Third Bank, BKNT, 1.150%, 11/18/16		325,472
948,000	General Electric Capital Corp., GMTN, 5.625%, 9/15/17		1,048,293

Continued

26

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments ��� (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Financials — (continued)
$    390,000	HCP, Inc., MTN, REIT, 6.300%, 9/15/16	$	418,227
325,000	Health Care REIT, Inc., 4.700%, 9/15/17		349,117
500,000	Healthcare Realty Trust, Inc., REIT, 6.500%, 1/17/17		543,852
454,000	Host Hotels & Resorts LP, REIT, 5.875%, 6/15/19		471,158
575,000	HSBC Bank USA NA, BKNT, 6.000%, 8/9/17		631,039
325,000	Huntington National Bank (The), 1.375%, 4/24/17		324,911
605,000	Jackson National Life Global Funding, 1.250%, 2/21/17(a)		606,529
935,000	JPMorgan Chase Bank NA, BKNT, 6.000%, 10/1/17		1,034,899
320,000	Kilroy Realty LP, REIT, 5.000%, 11/3/15		326,828
450,000	Kimco Realty Corp., REIT, MTN, 4.300%, 2/1/18		483,953
500,000	Lloyds Bank PLC, 1.750%, 3/16/18		502,668
305,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(a)		324,810
340,000	Manufacturers & Traders Trust Co., BKNT, 1.250%, 1/30/17		340,825
880,000	Morgan Stanley, 4.750%, 3/22/17		936,842
280,000	MUFG Union Bank NA, BKNT, 3.000%, 6/6/16		286,711
1,000,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		1,059,709
500,000	National Retail Properties, Inc., REIT, 6.150%, 12/15/15		516,768
250,000	National Rural Utilities Cooperative Finance Corp., 1.100%, 1/27/17		251,078
330,000	Nordea Bank AB, 1.250%, 4/4/17(a)		330,200
375,000	PACCAR Financial Corp., MTN, 1.450%, 3/9/18		376,783
355,000	PNC Funding Corp., 5.625%, 2/1/17		381,627
350,000	Principal Financial Group, Inc., 1.850%, 11/15/17		353,039
500,000	Prudential Financial, Inc., MTN, 3.000%, 5/12/16		511,307
570,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		614,675
500,000	Royal Bank of Scotland Group PLC, 1.875%, 3/31/17		499,282
500,000	Simon Property Group LP, REIT, 1.500%, 2/1/18(a)		500,959
350,000	Sirius International Group, Ltd., 6.375%, 3/20/17(a)		378,216
505,000	Standard Chartered Bank, 6.400%, 9/26/17(a)		556,270
600,000	Sumitomo Mitsui Banking Corp., GMTN, 1.350%, 7/11/17		599,483
440,000	Symetra Financial Corp., 6.125%, 4/1/16(a)		457,405
400,000	Toronto-Dominion Bank (The), MTN, Series 1, 0.805%, 4/30/18(b)		401,700
207,000	Transatlantic Holdings, Inc., 5.750%, 12/14/15		213,327
350,000	UBS AG, MTN, 5.875%, 7/15/16		370,271
500,000	UBS, MTN, 1.375%, 8/14/17		499,719
500,000	US Bank NA, 3.778%, 4/29/20(b)		500,903
250,000	Ventas Realty LP, REIT, 1.550%, 9/26/16		251,660
800,000	Wachovia Corp., 5.625%, 10/15/16		855,342
250,000	WEA Finance, LLC/Westfield UK & Europe Finance PLC, 1.750%, 9/15/17(a)		251,290
			31,504,724

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Health Care — 5.4%
$    550,000	Actavis Funding SCS, 2.350%, 3/12/18	$	557,438
500,000	Amgen, Inc., 1.250%, 5/22/17		499,595
200,000	Bayer U.S. Finance, LLC, 1.500%, 10/6/17(a)		201,285
450,000	Boston Scientific Corp., 2.650%, 10/1/18		454,953
440,000	DENTSPLY International, Inc., 2.750%, 8/15/16		448,465
670,000	Express Scripts Holding Co., 1.250%, 6/2/17		669,372
475,000	Humana, Inc., 7.200%, 6/15/18		551,563
330,000	Medtronic, Inc., 1.500%, 3/15/18(a)		331,434
250,000	Mylan, Inc., 7.875%, 7/15/20(a)		264,128
500,000	Zimmer Holdings, Inc., 2.000%, 4/1/18		503,999
500,000	Zoetis, Inc., 1.150%, 2/1/16		500,137
			4,982,369
	Industrials — 3.7%
270,000	Bombardier, Inc., 4.250%, 1/15/16(a)		276,939
450,000	CNH Industrial Capital, LLC, 3.875%, 11/1/15		453,375
400,000	Dover Corp., 5.450%, 3/15/18		444,498
350,000	Equifax, Inc., 6.300%, 7/1/17		385,956
465,000	International Lease Finance Corp., 4.875%, 4/1/15		465,000
450,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 2.500%, 3/15/16(a)		456,516
350,000	Service Corp. International, 7.000%, 6/15/17		381,500
485,000	Waste Management, Inc., 6.100%, 3/15/18		547,707
			3,411,491
	Information Technology — 0.4%
395,000	Altera Corp., 1.750%, 5/15/17		397,424
	Materials — 2.9%
338,000	ArcelorMittal, 4.500%, 8/5/15		340,535
250,000	Cemex SAB de CV, 9.500%, 6/15/18(a)		277,250
545,000	Glencore Finance Canada, Ltd., 2.700%, 10/25/17(a)		552,976
400,000	International Paper Co., 7.950%, 6/15/18		472,504
484,000	PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20		518,485
450,000	Vale Overseas, Ltd., 6.250%, 1/11/16		465,259
			2,627,009
	Telecommunication Services — 2.2%
330,000	America Movil SAB de CV, 2.375%, 9/8/16		335,409
375,000	America Movil SAB de CV, 1.268%, 9/12/16(b)		376,465
400,000	GTP Acquisition Partners I, LLC, 7.628%, 6/15/16(a)		421,500
285,000	Level 3 Financing, Inc., 9.375%, 4/1/19		298,361
610,000	Verizon Communications, Inc., 1.801%, 9/15/16(b)		619,831
			2,051,566
	Utilities — 1.0%
450,000	Duke Energy Corp., 2.150%, 11/15/16		459,003
400,000	Electricite de France SA, 1.150%, 1/20/17(a)		401,456
			860,459
	Total Corporate Bonds (Cost $59,545,215)		59,598,677

Continued

27

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
FOREIGN GOVERNMENT BOND — 0.5%
	Columbia — 0.5%
$    400,000	Colombia Government International Bond, 7.375%, 1/27/17	$	442,000
	Total Foreign Government Bond (Cost $442,338)		442,000
MORTGAGE-BACKED SECURITIES — 0.0%
	Fannie Mae — 0.0%
22,955	6.500%, 4/1/16, Pool #253706		23,322
	Total Mortgage-Backed Securities (Cost $22,958)		23,322
MUNICIPAL BONDS — 2.9%
	Arizona — 0.6%
500,000	Arizona School Facilities Board, Refunding Certificate of Participation, Taxable, Series A-1, 1.474%, 9/1/17		505,190
	Hawaii — 0.5%
445,000	Hawaii State Highway Revenue, Refunding, Taxable, Series C, 1.600%, 1/1/18		451,252
	Illinois — 0.3%
250,000	Chicago, IL, Midway International Airport Refunding Revenue, Taxable, Series C, 1.320%, 1/1/16		251,683
	Maine — 0.3%
250,000	Maine Municipal Bond Bank, Miscellaneous Purpose Revenue, Taxable, 1.708%, 6/1/16		253,293
	New Jersey — 0.3%
320,000	New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Series 00, 1.059%, 3/1/16		320,554
	South Carolina — 0.5%
500,000	South Carolina State Public Service Authority, Libor Index Refunding Revenue, Taxable, Series D, Callable 12/1/15 @ 100, 1.279%, 6/1/16(b)		500,990
	Washington — 0.4%
390,000	Providence Health & Services Obligated Group Revenue, Taxable, 1.224%, 10/1/17(b)		392,487
	Total Municipal Bonds (Cost $2,655,000)		2,675,449

Principal     Amount		Fair Value
U.S. TREASURY NOTE — 0.3%
$    250,000	1.500%, 8/31/18	$	253,848
	Total U.S. Treasury Note (Cost $252,188)		253,848
Shares
PREFERRED STOCKS — 0.1%
	Financials — 0.1%
4,359	Kite Realty Group Trust, REIT, Series A		112,942
	Total Preferred Stocks (Cost $112,832)		112,942
MONEY MARKET FUND — 0.9%
826,381	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		826,381
	Total Money Market Fund (Cost $826,381)		826,381
Total Investments — 99.4% (Cost $91,738,131)			91,207,570
Net Other Assets (Liabilities) — 0.6%			508,794
NET ASSETS — 100.0%		$	91,716,364

(a) Rule 144A, Section 4(2) or other security that 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, 2015. The maturity date reflected is the final maturity date.

(c) Represents the current yield as of report 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.

28

Sterling Capital Intermediate U.S. Government Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — 6.9%
$    1,086,201	Fannie Mae, Series 2010-129, Class NA, 3.500%, 3/25/25	$	1,134,665
776,108	Freddie Mac, Series 3644, Class BA, 4.500%, 2/15/29		809,232
405,400	Ginnie Mae, Series 1999-17, Class F, 0.475%, 5/16/29(a)		406,620
	Total Collateralized Mortgage Obligations (Cost $2,311,930)		2,350,517
CORPORATE BONDS — 4.4%
	Financials — 4.4%
500,000	Barclays Bank PLC, 3.900%, 4/7/15		500,045
500,000	JPMorgan Chase & Co., GMTN, 1.100%, 10/15/15		501,263
500,000	Morgan Stanley, 2.125%, 4/25/18		505,491
	Total Corporate Bonds (Cost $1,486,803)		1,506,799
MORTGAGE-BACKED SECURITIES — 8.2%
	Fannie Mae — 7.2%
1,850,185	3.584%, 9/1/20, Pool #FN0000		2,003,870
223,896	5.500%, 1/1/33, Pool #678321		252,859
212,831	6.000%, 7/1/37, Pool #938378		232,261
			2,488,990
	Ginnie Mae — 1.0%
319,648	5.000%, 11/20/38, Pool #4283		340,777
	Total Mortgage-Backed Securities (Cost $2,599,348)		2,829,767
MUNICIPAL BONDS — 2.4%
	Illinois — 2.4%
810,000	Village of Rosemont, IL, Corporate Purpose, Refunding G.O., Taxable, Series B (AGM), 2.389%, 12/1/17		830,736
	Total Municipal Bonds (Cost $810,000)		830,736
U.S. GOVERNMENT AGENCIES — 49.7%
	Fannie Mae — 19.7%
1,000,000	1.250%, 10/16/24, STEP		1,004,331
250,000	1.000%, 8/16/27, STEP		250,265
2,000,000	6.250%, 5/15/29		2,867,372
1,700,000	7.125%, 1/15/30		2,640,182
			6,762,150
	Federal Farm Credit Bank — 12.3%
500,000	0.875%, 5/22/17		500,043
3,000,000	4.670%, 2/27/18		3,313,023
400,000	3.150%, 10/15/24		403,124
			4,216,190
	Federal Home Loan Bank — 11.7%
2,250,000	0.375%, 2/19/16		2,251,175
1,000,000	2.000%, 10/9/24, STEP		999,582
500,000	1.000%, 3/28/25, STEP		500,531
250,000	1.500%, 4/10/28, STEP		250,085
			4,001,373

Principal     Amount		Fair Value
U.S. GOVERNMENT AGENCIES — (continued)
	Freddie Mac — 6.0%
$     500,000	4.875%, 6/13/18	$	561,052
500,000	2.375%, 1/13/22		517,049
500,000	3.000%, 8/27/27		493,920
500,000	1.000%, 3/12/30, STEP		497,949
			2,069,970
	Total U.S. Government Agencies (Cost $16,338,113)		17,049,683
U.S. TREASURY BILLS(b) — 2.9%
1,000,000	0.000%, 10/15/15(b)		999,302
	Total U.S. Treasury Bills (Cost $999,436)		999,302
U.S. TREASURY NOTES — 21.8%
350,000	0.250%, 5/15/15		350,055
1,000,000	0.250%, 5/31/15		1,000,078
400,000	4.500%, 11/15/15		410,688
294,375	2.000%, 1/15/16(c)		301,895
1,000,000	3.000%, 8/31/16		1,036,719
1,000,000	3.000%, 2/28/17		1,046,797
1,750,000	1.875%, 9/30/17		1,799,219
1,000,000	1.250%, 4/30/19		1,001,250
500,805	0.625%, 1/15/24(c)		521,619
	Total U.S. Treasury Notes (Cost $7,433,858)		7,468,320
Shares
MONEY MARKET FUND — 3.0%
1,040,476	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(d)		1,040,476
	Total Money Market Fund (Cost $1,040,476)		1,040,476
Total Investments — 99.3% (Cost $33,019,964)			34,075,600
Net Other Assets (Liabilities) — 0.7%			228,519
NET ASSETS — 100.0%		$	34,304,119

(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, 2015. The maturity date reflected is the final maturity date.

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

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

(d) Represents the current yield as of report date.

AGM — Assured Guaranty Municipal Corp.

G.O. — General Obligation

GMTN — Global Medium Term Note

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

29

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

  Principal      Amount        Fair Value    

ASSET BACKED SECURITIES — 12.6%
$    4,646,000	Ally Auto Receivables Trust, Series 2013-2, Class A4, 1.240%, 11/15/18	$	4,651,078
3,000,000	Americredit Automobile Receivables Trust, Series 2014-4, Class B, 1.870%, 12/9/19		3,009,312
4,120,000	AmeriCredit Automobile Receivables Trust, Series 2015-1, Class B, 1.880%, 3/9/20		4,118,925
1,146,398	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.511%, 11/25/35(a)		1,112,045
3,330,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-1A, Class A, 2.460%, 7/20/20(b)		3,371,036
9,154,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(b)		9,254,282
2,320,000	Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 1.571%, 10/25/34(a)		2,324,394
1,018,000	CarMax Auto Owner Trust, Series 2013-2, Class A4, 0.840%, 11/15/18		1,014,601
3,688,000	CarMax Auto Owner Trust, Series 2014-2, Class A3, 0.980%, 1/15/19		3,687,085
5,578,000	Chase Issuance Trust, Series 2014-A2, Class A2, 2.770%, 3/15/23		5,761,583
6,210,000	Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.880%, 1/23/23		6,462,393
341,506	Credit-Based Asset Servicing and Securitization, LLC, Series 2005-CB5, Class AF2, STEP, 4.241%, 8/25/35		343,576
5,210,000	Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.120%, 12/15/21		5,296,788
6,360,000	Encore Credit Receivables Trust, Series 2005-4, Class M2, 0.611%, 1/25/36(a)		5,914,380
6,034,000	Ford Credit Auto Owner Trust 2014-REV2, Series 2014-2, Class A, 2.310%, 4/15/26(b)		6,146,763
4,000,000	Ford Credit Auto Owner Trust 2015-REV1, Series 2015-1, Class A, 2.120%, 7/15/26(b)		4,033,588
2,009,909	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.371%, 1/25/36(a)		1,935,608
1,373,905	New Century Home Equity Loan Trust, Series 2003-4, Class M1, 1.296%, 10/25/33(a)		1,319,440
625,657	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.671%, 3/25/35(a)		621,010
2,680,000	RAMP Trust, Series 2005-RZ4, Class M2, 0.671%, 11/25/35(a)		2,305,159
2,500,000	Santander Drive Auto Receivables Trust, Series 2014-5, Class B, 1.760%, 9/16/19		2,495,853
1,245,000	SBA Tower Trust, Series 2014-1A, Class C, STEP, 2.898%, 10/15/44(b)		1,260,132
4,144,348	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.491%, 10/25/35(a)		4,014,315
3,200,000	Volkswagen Auto Loan Enhanced Trust, Series 2014-1, Class A3, 0.910%, 10/22/18		3,195,866
2,769,442	World Omni Auto Receivables Trust, Series 2013-A, Class A3, 0.640%, 4/16/18		2,769,661
1,325,000	World Omni Auto Receivables Trust, Series 2014-A, Class A3, 0.940%, 4/15/19		1,325,126
	Total Asset Backed Securities (Cost $87,015,580)		87,743,999

  Principal      Amount        Fair Value    

COLLATERALIZED MORTGAGE OBLIGATIONS — 8.9%
$    700,463	Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 2.652%, 4/25/35(a)	$	683,595
836,119	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		868,939
1,480,421	Banc of America Funding Trust, Series 2006-2, Class 3A1, 6.000%, 3/25/36		1,478,389
228,184	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		231,718
197,930	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		207,969
961,042	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		1,018,513
192,362	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-J7, Class 1A3, 5.250%, 8/25/33		196,209
285,591	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		297,364
153,242	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		154,585
701,232	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		742,240
356,961	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		371,724
2,722,051	Fannie Mae, Series 2011-99, Class CV, 4.500%, 3/25/26		3,032,180
1,149,811	Fannie Mae, Series 2013-133, Class AV, 4.000%, 12/25/26		1,283,566
2,224,331	Fannie Mae, Series 2014-39, Class VP, 3.000%, 8/1/27		2,325,813
3,282,777	Fannie Mae, Series 2011-38, Class D, 4.500%, 5/25/41		3,625,584
6,067,573	FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/1/44(a)(b)		6,200,289
1,716,032	Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23		1,863,470
3,175,613	Freddie Mac, Series 4387, Class VM, 4.000%, 11/1/25		3,502,186
2,165,482	Freddie Mac, Series 4287, Class V, 4.500%, 10/1/26		2,420,238
3,202,076	Freddie Mac, Series 4323, Class VA, 4.000%, 3/15/27		3,563,507
358,259	Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27		385,633
3,110,835	Freddie Mac, Series 4331, Class V, 4.000%, 11/1/28		3,413,647
876,712	Freddie Mac, Series 3632, Class PK, 5.000%, 2/15/40		974,938
4,099,687	Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40		4,361,387
2,327,729	Freddie Mac, Series 4328, Class KD, 3.000%, 8/15/43		2,410,282
1,102,623	Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38		1,196,015
984,387	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		1,015,501
916,666	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		950,974

Continued

30

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

  Principal      Amount        Fair Value    

COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$    193,521	MASTR Asset Securitization Trust, Series 2003-4, Class 5A1, 5.500%, 5/25/33	$	199,056
401,596	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		403,784
964,161	PHHMC Trust, Series 2007-6, Class A1, 5.457%, 12/18/37(a)		961,695
128,432	RAAC Trust, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(a)		131,237
1,210,406	RAAC Trust, Series 2004-SP1, Class AI3, STEP, 6.118%, 3/25/34		1,245,452
1,057,336	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		1,107,716
599,563	Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 2.462%, 12/25/34(a)		585,889
1,714,306	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		1,731,154
1,357,763	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 2.404%, 6/25/34(a)		1,354,829
490,490	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35		501,277
271,977	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35		277,958
166,691	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		171,650
1,124,447	Wells Fargo Mortgage Backed Securities Trust, Series 2004-BB, Class A2, 2.618%, 1/25/35(a)		1,115,781
497,061	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		509,790
2,357,203	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 6A3, 2.605%, 10/25/35(a)		2,364,583
281,519	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		290,220
	Total Collateralized Mortgage Obligations (Cost $60,494,842)		61,728,526
COMMERCIAL MORTGAGE-BACKED SECURITIES — 17.6%
3,287,061	Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(a)		3,427,784
1,710,000	Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/1/46		1,808,802
4,000,000	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		4,134,484
78,903	Banc of America Commercial Mortgage Trust, Series 2007-2, Class A2, 5.597%, 4/10/49(a)		78,936
3,518,413	Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51		3,743,883
2,238,835	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.431%, 11/10/42(a)		2,236,623
1,560,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		1,569,624
4,882,785	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		4,830,296

  Principal      Amount        Fair Value    

COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$    2,500,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/1/42(a)	$	2,735,887
2,085,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		2,256,766
2,838,000	CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49		2,987,838
1,575,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.703%, 12/1/49(a)		1,703,822
3,545,000	COMM Mortgage Trust, Series 2013-CR12, Class A4, 4.046%, 10/1/46		3,916,871
4,050,000	COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/1/46		4,316,846
1,208,000	COMM Mortgage Trust, Series 2014-LC17, Class A5, 3.917%, 10/10/47		1,318,763
1,344,000	COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/1/47		1,429,785
2,545,000	COMM Mortgage Trust, Series 2007-C9, Class A4, 5.798%, 12/10/49(a)		2,765,781
1,500,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.028%, 12/10/49(a)		1,629,300
3,845,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a)		3,902,967
1,083,677	Credit Suisse Commercial Mortgage Trust, Series 2007-C4, Class A4, 5.903%, 9/1/39(a)		1,160,534
3,620,000	FHLMC Multifamily Structured Pass Through Certificates, Series K034, Class A2, 3.531%, 7/1/23(a)		3,938,325
5,180,000	FHLMC Multifamily Structured Pass Through Certificates, Series K043, Class A2, 3.062%, 12/25/24		5,434,514
2,524,000	GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47		2,764,136
1,397,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47		1,526,016
4,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/1/43(b)		4,475,568
2,704,232	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		2,803,293
2,350,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		2,464,518
2,250,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b)		2,517,473
1,982,299	LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 2/15/40		2,107,975
1,730,000	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.265%, 9/15/45(a)		1,917,778
59,778	Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class AJ, 5.263%, 9/12/42(a)		59,756
3,374,543	Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4, 5.690%, 2/12/51		3,663,825
1,135,000	ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 5.874%, 8/12/49(a)		1,230,804
660,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47		719,771

Continued

31

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

  Principal      Amount        Fair Value    

COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$    4,218,384	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.270%, 1/11/43(a)	$	4,687,658
2,390,000	Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.462%, 3/12/44(a)		2,464,028
4,000,000	Morgan Stanley Capital I Trust, Series 2011-C1, Class B, 5.252%, 9/1/47(a)(b)		4,578,072
640,000	Morgan Stanley Capital I Trust, Series 2011-C1, Class C, 5.252%, 9/1/47(a)(b)		712,729
4,535,000	Morgan Stanley Capital I Trust, Series 2007-IQ14, Class A5, 5.686%, 4/15/49(a)		4,881,683
1,050,000	Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class B, 5.306%, 1/15/41(a)		1,067,176
716,118	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.246%, 12/15/43		728,821
1,938,053	Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(a)		2,010,798
2,144,961	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48		2,255,476
2,000,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A2, 4.393%, 11/15/43(b)		2,212,788
500,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A4, 4.869%, 2/15/44(a)(b)		569,001
2,000,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b)		2,249,290
1,000,000	WF-RBS Commercial Mortgage Trust, Series 2011-C3, Class A4, 4.375%, 3/15/44(b)		1,112,231
250,000	WF-RBS Commercial Mortgage Trust, Series 2012-C8, Class AS, 3.660%, 8/15/45		265,740
3,716,000	WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57		4,010,055
1,008,000	WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57		1,101,631
	Total Commercial Mortgage-Backed Securities (Cost $123,856,987)		122,486,521
CORPORATE BONDS — 33.6%
	Consumer Discretionary — 3.9%
1,393,000	21st Century Fox America, Inc., 5.400%, 10/1/43		1,696,120
1,450,000	CBS Corp., 4.600%, 1/15/45		1,476,139
1,650,000	Comcast Corp., 4.200%, 8/15/34		1,787,501
1,300,000	ERAC USA Finance, LLC, 5.625%, 3/15/42(b)		1,516,078
1,306,000	Ford Motor Co., 7.450%, 7/16/31		1,803,051
2,915,000	Ford Motor Credit Co., LLC, 0.899%, 3/27/17(a)		2,913,834
1,624,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		1,642,124
905,000	Grupo Televisa SAB, 6.000%, 5/15/18		1,026,351
1,633,000	Lear Corp., 5.375%, 3/15/24		1,690,155
1,400,000	Levi Strauss & Co., 7.625%, 5/15/20		1,456,000
1,015,000	Lowe’s Cos., Inc., 5.800%, 4/15/40		1,316,872
1,300,000	Omnicom Group, Inc., 3.650%, 11/1/24		1,344,793
917,000	Royal Caribbean Cruises, Ltd., 11.875%, 7/15/15		942,218
1,660,000	Time Warner Cable, Inc., 4.000%, 9/1/21		1,776,818

  Principal      Amount        Fair Value    

CORPORATE BONDS — (continued)
	Consumer Discretionary — (continued)
$    1,602,000	Time Warner Cable, Inc., 4.500%, 9/15/42	$	1,643,274
1,250,000	Toll Brothers Finance Corp., 6.750%, 11/1/19		1,412,500
1,250,000	Viacom, Inc., 5.850%, 9/1/43		1,407,161
			26,850,989
	Consumer Staples — 0.7%
1,240,000	Altria Group, Inc., 5.375%, 1/31/44		1,450,200
1,322,000	CVS Health Corp., 6.125%, 9/15/39		1,725,834
895,000	Lorillard Tobacco Co., 6.875%, 5/1/20		1,066,735
583,000	Walgreens Boots Alliance, Inc., 2.700%, 11/18/19		595,592
			4,838,361
	Energy — 5.3%
1,642,000	BP Capital Markets PLC, 1.375%, 11/6/17		1,641,227
1,200,000	Buckeye Partners LP, 4.150%, 7/1/23		1,186,805
1,500,000	Chesapeake Energy Corp., 3.503%, 4/15/19(a)		1,443,750
1,475,000	CNOOC Nexen Finance, 4.250%, 4/30/24		1,568,036
1,425,000	Enable Midstream Partners LP, 5.000%, 5/15/44(b)		1,300,293
1,697,000	Energy Transfer Partners LP, 4.050%, 3/15/25		1,711,357
1,330,000	EnLink Midstream Partners LP, 5.050%, 4/1/45		1,352,927
1,180,000	Enterprise Products Operating, LLC, 5.950%, 2/1/41		1,431,738
1,233,000	Freeport-McMoran Oil & Gas, LLC/FCX Oil & Gas, Inc., 6.500%, 11/15/20		1,308,521
1,250,000	Hess Corp., 5.600%, 2/15/41		1,365,125
1,862,000	Kinder Morgan Energy Partners LP, 5.000%, 3/1/43		1,818,554
1,136,000	Kinder Morgan, Inc., 7.000%, 6/15/17		1,253,052
1,165,000	Magellan Midstream Partners LP, 6.550%, 7/15/19		1,365,257
1,415,000	MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 6.750%, 11/1/20		1,485,750
856,000	NuStar Logistics LP, 8.150%, 4/15/18		958,920
1,575,000	Oceaneering International, Inc., 4.650%, 11/15/24		1,592,380
1,177,000	Phillips 66, 5.875%, 5/1/42		1,402,111
1,304,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21		1,365,940
1,528,000	Shell International Finance BV, 4.550%, 8/12/43		1,732,009
910,000	Spectra Energy Capital, LLC, 8.000%, 10/1/19		1,102,483
2,265,000	Spectra Energy Partners LP, 3.500%, 3/15/25		2,276,282
1,790,000	Statoil ASA, 4.800%, 11/8/43		2,090,611
762,000	TC Pipelines LP, 4.375%, 3/13/25		769,556
1,500,000	Total Capital International SA, 0.826%, 8/10/18(a)		1,507,922
1,100,000	Williams Partners LP/ACMP Finance Corp., 6.125%, 7/15/22		1,165,450
858,000	Williams Partners LP/ACMP Finance Corp., 4.875%, 3/15/24		862,290
			37,058,346
	Financials — 16.7%
1,715,000	Ally Financial, Inc., 2.750%, 1/30/17		1,708,672
1,486,000	Apollo Management Holdings LP, 4.000%, 5/30/24(b)		1,528,517
1,545,000	Ares Finance Co., LLC, 4.000%, 10/8/24(b)		1,519,698
1,624,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		1,714,808

Continued

32

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

  Principal  
   Amount        Fair Value    

CORPORATE BONDS — (continued)
	Financials — (continued)
$    1,279,000	Associates Corp. of North America, 6.950%, 11/1/18	$	1,489,530
2,835,000	Bank of America Corp., MTN, 6.875%, 4/25/18		3,242,837
1,282,000	Bank of America Corp., MTN, 5.875%, 2/7/42		1,630,885
1,874,000	Bank of America Corp., Series K, 8.000%, 7/29/49(a)		2,002,837
3,038,000	Bear Stearns Cos., LLC (The), 5.550%, 1/22/17		3,249,767
1,125,000	Brixmor Operating Partnership LP, 3.850%, 2/1/25		1,125,923
1,950,000	Capital One Financial Corp., 3.200%, 2/5/25		1,933,811
1,515,000	CBRE Services, Inc., 5.250%, 3/15/25		1,628,625
1,950,000	CIT Group, Inc., 4.250%, 8/15/17		1,974,375
2,500,000	Citigroup, Inc., 1.957%, 5/15/18(a)		2,580,250
1,210,000	Citigroup, Inc., 5.875%, 1/30/42		1,543,771
1,670,000	Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.950%, 11/9/22		1,728,787
1,378,000	Corrections Corp. of America, REIT, 4.125%, 4/1/20		1,386,613
1,815,000	Credit Suisse, MTN, 3.625%, 9/9/24		1,875,924
1,474,000	CubeSmart LP, REIT, 4.800%, 7/15/22		1,628,223
565,000	Dai-ichi Life Insurance Co., Ltd. (The), 5.100%, 10/29/49(a)(b)		615,144
1,554,000	Excel Trust LP, REIT, 4.625%, 5/15/24		1,630,674
1,906,000	First Data Corp., 7.375%, 6/15/19(b)		1,991,770
1,388,000	General Electric Capital Corp., GMTN, 6.875%, 1/10/39		1,996,677
2,199,000	General Electric Capital Corp., Series B, 6.250%, 12/29/49(a)		2,473,875
1,552,000	Goldman Sachs Group, Inc. (The), 6.250%, 2/1/41		2,022,995
1,275,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(b)		1,490,631
2,100,000	Health Care REIT, Inc., 4.950%, 1/15/21		2,332,602
1,560,000	Healthcare Realty Trust, Inc., REIT, 3.750%, 4/15/23		1,562,732
1,976,000	Healthcare Trust of America Holdings LP, REIT, 3.700%, 4/15/23		1,979,515
972,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		985,213
1,934,000	HSBC Finance Corp., 6.676%, 1/15/21		2,296,490
1,376,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		1,447,324
1,597,000	JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(a)		1,718,771
2,000,000	KeyBank NA, BKNT, 2.500%, 12/15/19		2,038,514
1,680,000	KKR Group Finance Co. III, LLC, 5.125%, 6/1/44(b)		1,738,200
1,275,000	Liberty Mutual Group, Inc., 7.800%, 3/15/37(b)		1,558,687
1,152,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(b)		1,358,034
870,000	Massachusetts Mutual Life Insurance Co., 8.875%, 6/1/39(b)		1,427,316
1,000,000	MetLife, Inc., 7.717%, 2/15/19		1,211,544
3,735,000	Morgan Stanley, GMTN, 6.625%, 4/1/18		4,248,010
4,241,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		4,494,226
1,670,000	National Rural Utilities Cooperative Finance Corp., 4.750%, 4/30/43(a)		1,675,010
987,000	Nationwide Mutual Insurance Co., 9.375%, 8/15/39(b)		1,592,535
1,655,000	Nippon Life Insurance Co., 5.100%, 10/16/44(a)(b)		1,793,606

  Principal      Amount        Fair Value    

CORPORATE BONDS — (continued)
	Financials — (continued)
$    1,000,000	Ohio National Life Insurance Co., 6.875%, 6/15/42(b)	$	1,315,329
1,650,000	Old Republic International Corp., 4.875%, 10/1/24		1,751,723
1,447,000	Pacific LifeCorp, 5.125%, 1/30/43(b)		1,632,310
500,000	PNC Bank NA, BKNT, 4.875%, 9/21/17		539,744
1,007,000	PNC Bank NA, BKNT, 6.000%, 12/7/17		1,121,769
1,305,000	Prudential Financial, Inc., 8.875%, 6/15/38(a)		1,538,269
1,065,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		1,148,473
1,390,000	Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23		1,520,061
1,670,000	Royal Bank of Canada, GMTN, 2.200%, 7/27/18		1,705,197
1,450,000	Royal Bank of Scotland Group PLC, 4.700%, 7/3/18		1,521,249
1,120,000	Senior Housing Properties Trust, REIT, 6.750%, 4/15/20		1,276,952
1,473,000	Simon Property Group LP, REIT, 10.350%, 4/1/19		1,909,303
1,014,000	Sirius International Group, Ltd., 6.375%, 3/20/17(b)		1,095,745
1,350,000	Standard Chartered Bank, 6.400%, 9/26/17(b)		1,487,059
1,485,000	Symetra Financial Corp., 4.250%, 7/15/24		1,551,026
2,540,000	TIAA Asset Management Finance Co., LLC, 2.950%, 11/1/19(b)		2,603,223
1,062,000	Transatlantic Holdings, Inc., 8.000%, 11/30/39		1,501,139
805,000	Validus Holdings, Ltd., 8.875%, 1/26/40		1,141,697
1,304,000	Ventas Realty LP, REIT, 5.700%, 9/30/43		1,602,310
1,595,000	Wachovia Corp., 5.500%, 8/1/35		1,879,247
1,350,000	WEA Finance, LLC / Westfield UK & Europe Finance PLC, 4.750%, 9/17/44(b)		1,469,298
1,415,000	XLIT, Ltd., 4.450%, 3/31/25		1,424,158
			115,909,229
	Health Care — 1.3%
915,000	Actavis Funding SCS, 3.800%, 3/15/25		944,307
1,250,000	Amgen, Inc., 5.150%, 11/15/41		1,439,700
1,136,000	DaVita HealthCare Partners, Inc., 6.625%, 11/1/20		1,189,960
766,000	Fresenius US Finance II, Inc., 9.000%, 7/15/15(b)		781,320
1,133,000	Humana, Inc., 4.950%, 10/1/44		1,246,695
1,675,000	Medtronic, Inc., 4.375%, 3/15/35(b)		1,821,467
1,666,000	Zimmer Holdings, Inc., 4.250%, 8/15/35		1,718,484
			9,141,933
	Industrials — 1.3%
1,381,000	Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41		1,576,177
1,535,000	CNH Industrial Capital, LLC, 3.875%, 11/1/15		1,546,513
1,650,000	International Lease Finance Corp., 4.875%, 4/1/15		1,650,000
1,701,000	United Rentals North America, Inc., 7.375%, 5/15/20		1,838,143
1,060,000	Verisk Analytics, Inc., 5.800%, 5/1/21		1,220,065
1,335,000	Waste Management, Inc., 4.100%, 3/1/45		1,364,120
			9,195,018
	Information Technology — 0.4%
1,900,000	Alibaba Group Holding, Ltd., 2.500%, 11/28/19(b)		1,900,654

Continued

33

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Information Technology — (continued)
$    1,214,000	Samsung Electronics America, Inc., 1.750%, 4/10/17(b)	$	1,224,145
			3,124,799
	Materials — 2.0%
1,400,000	Cemex SAB de CV, 5.875%, 3/25/19(b)		1,445,500
1,626,000	Glencore Finance Canada, Ltd., 4.250%, 10/25/22(b)		1,671,552
854,000	International Paper Co., 7.300%, 11/15/39		1,139,393
1,248,000	Louisiana-Pacific Corp., 7.500%, 6/1/20		1,332,240
2,150,000	LYB International Finance BV, 4.875%, 3/15/44		2,309,429
1,214,000	Mosaic Co. (The), 5.450%, 11/15/33		1,403,685
1,305,000	PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20		1,397,981
1,200,000	Rockwood Specialties Group, Inc., 4.625%, 10/15/20		1,249,500
1,820,000	West Fraser Timber Co., Ltd., 4.350%, 10/15/24(b)		1,822,907
			13,772,187
	Telecommunication Services — 1.3%
856,000	British Telecommunications PLC, 9.625%, 12/15/30		1,411,776
1,185,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(b)		1,351,824
1,300,000	GTP Acquisition Partners I, LLC, 7.628%, 6/15/16(b)		1,369,875
1,365,000	Level 3 Financing, Inc., 9.375%, 4/1/19		1,428,991
1,244,000	Verizon Communications, Inc., 6.550%, 9/15/43		1,619,886
1,577,000	Verizon Communications, Inc., 5.012%, 8/21/54		1,636,279
			8,818,631
	Utilities — 0.7%
1,675,000	CMS Energy Corp., 4.700%, 3/31/43		1,893,241
1,354,000	Progress Energy, Inc., 3.150%, 4/1/22		1,395,672
1,802,000	PSEG Power, LLC, 2.450%, 11/15/18		1,825,976
			5,114,889
	Total Corporate Bonds (Cost $224,730,498)		233,824,382
FOREIGN GOVERNMENT BONDS — 0.6%
	Mexico — 0.6%
1,094,000	United Mexican States, 5.550%, 1/21/45		1,282,715
2,628,000	United Mexican States, MTN, 4.750%, 3/8/44		2,759,400
			4,042,115
	Total Foreign Government Bonds (Cost $3,404,330)		4,042,115
MORTGAGE-BACKED SECURITIES — 10.5%
	Fannie Mae — 7.1%
38,281	5.000%, 8/1/20, Pool #832058		40,253
149,704	6.000%, 7/1/22, Pool #944967		157,893
155,777	5.000%, 9/1/25, Pool #255892		173,026
1,825,443	4.000%, 2/1/32, Pool #MA0977		1,980,032
3,920,976	4.000%, 6/1/34, Pool #MA1922		4,234,911
3,557,413	3.500%, 11/1/34, Pool #MA2077		3,761,414
121,357	6.500%, 1/1/35, Pool #809198		139,435
3,490,095	4.000%, 3/1/35, Pool #MA2211		3,767,248
59,919	7.000%, 6/1/35, Pool #255820		69,229

Principal     Amount		Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
	Fannie Mae — (continued)
$      38,724	7.000%, 6/1/35, Pool #830686	$	39,575
207,656	6.500%, 3/1/36, Pool #866062		240,314
119,072	6.500%, 7/1/36, Pool #885493		136,706
1,819,152	5.500%, 8/1/37, Pool #995082		2,057,226
1,057,972	4.500%, 10/1/39, Pool #AC2645		1,156,312
852,880	5.000%, 6/1/40, Pool #AD4927		954,537
620,791	5.000%, 6/1/40, Pool #AD8718		691,125
2,238,825	4.500%, 12/1/40, Pool #AH1100		2,452,095
1,829,026	4.500%, 5/1/41, Pool #AI1023		2,004,720
2,804,983	4.000%, 9/1/41, Pool #AI3940		3,006,380
955,295	4.500%, 11/1/41, Pool #AJ4994		1,046,622
1,691,871	4.500%, 12/1/41, Pool #AJ7696		1,853,473
2,871,742	4.000%, 1/1/42, Pool #MA0956		3,077,564
2,784,052	3.500%, 6/1/42, Pool #AB5373		2,929,408
4,685,403	3.500%, 5/1/43, Pool #AB9368		4,926,433
2,419,580	4.500%, 11/1/44, Pool #MA2100		2,645,564
3,137,148	4.500%, 1/1/45, Pool #MA2158		3,439,914
2,175,719	4.000%, 3/1/45, Pool #MA2217		2,329,418
			49,310,827
	Freddie Mac — 3.0%
205,762	5.500%, 10/1/21, Pool #G12425		224,549
139,440	5.000%, 12/1/21, Pool #J04025		147,720
256,499	5.000%, 7/1/25, Pool #C90908		284,134
558,370	2.500%, 1/1/28, Pool #J22069		573,647
433,408	4.000%, 11/1/31, Pool #C91410		467,556
1,759,676	3.500%, 4/1/32, Pool #C91437		1,857,044
2,766,883	3.500%, 7/1/32, Pool #C91467		2,920,215
223,187	5.000%, 3/1/36, Pool #G08115		248,082
21,174	6.500%, 5/1/36, Pool #A48509		24,256
62,225	5.000%, 7/1/36, Pool #G02291		69,109
664,797	6.500%, 9/1/36, Pool #G08152		761,580
319,962	5.000%, 2/1/37, Pool #A57714		354,381
259,209	4.500%, 10/1/39, Pool #A89346		282,818
952,274	5.000%, 6/1/40, Pool #C03479		1,057,092
585,428	3.768%, 7/1/40, Pool #1B4948(a)		622,483
2,205,388	5.000%, 7/1/40, Pool #A93070		2,448,727
2,596,559	4.000%, 12/1/42, Pool #G07266		2,786,320
1,927,108	3.500%, 5/1/43, Pool #Q18305		2,022,308
1,881,900	4.000%, 5/1/44, Pool #V81186		2,019,088
848,374	4.000%, 7/1/44, Pool #G08595		906,280
737,512	4.000%, 9/1/44, Pool #Q28299		791,717
			20,869,106
	Ginnie Mae — 0.4%
552,167	5.000%, 2/15/40, Pool #737037		617,374
2,106,882	4.500%, 9/20/40, Pool #4801		2,302,412
			2,919,786
	Total Mortgage-Backed Securities (Cost $71,362,416)		73,099,719
MUNICIPAL BONDS — 8.8%
	California — 2.3%
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		4,274,425
2,100,000	Sacramento County Sanitation Districts Financing Authority, Refunding Revenue, Taxable, Series B, 2.810%, 12/1/21		2,152,920

Continued

34

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
MUNICIPAL BONDS — (continued)
	California — (continued)
$    5,460,000	Solano County Community College District, Refunding Revenue, Taxable, Series B, G.O., 2.909%, 8/1/20	$	5,726,994
1,285,000	State of California, Build America Bonds, School Improvements G.O., 7.625%, 3/1/40		1,999,434
1,850,000	University of California, Univ. & College Improvements, Taxable Revenue, Series AN, 3.338%, 5/15/22		1,970,639
			16,124,412
	Colorado — 0.3%
1,810,000	Colorado Housing & Finance Authority, Unemployment/Welfare Funding Revenue, Taxable, Series B, 1.600%, 5/15/16		1,832,064
	Connecticut — 0.5%
3,000,000	State of Connecticut Special Tax Revenue, Build America Bonds, Transition Infrastructure, Series B, 4.126%, 11/1/20		3,247,800
	District of Columbia — 0.3%
1,835,000	George Washington University (The), Series 2012, 3.485%, 9/15/22		1,921,502
	Florida — 0.7%
2,135,000	Brevard County School District, Refunding Certificates of Participation, Taxable, Series B, 1.981%, 7/1/18		2,131,029
2,500,000	Greater Orlando Aviation Authority, Airport Facilities Refunding Revenue, Taxable, Series D, 3.733%, 10/1/20		2,710,000
			4,841,029
	Georgia — 0.3%
1,840,000	Rockdale County Water & Sewerage Authority, Refunding Revenue, Taxable (County GTD), 2.860%, 7/1/23		1,894,611
	Illinois — 0.7%
4,500,000	State of Illinois, Building Public Improvements Revenue, Taxable, 3.081%, 6/15/23		4,582,080
	New Jersey — 0.2%
1,305,000	New Jersey Economic Development Authority, School Facilities Construction, Refunding Revenue, Series 00, 1.648%, 3/1/18		1,305,078
	New York — 1.3%
2,000,000	New York State Dormitory Authority, Public Improvements, Taxable Revenue, Series D, 2.550%, 3/15/21		2,047,180
750,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.445%, 6/15/20		747,870
900,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.745%, 6/15/22		900,387
2,900,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.774%, 3/1/20		3,238,836
1,640,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.874%, 3/1/21		1,858,333
			8,792,606

Principal     Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — 0.6%
$     4,500,000	North Carolina Eastern Municipal Power Agency Refunding Revenue, Taxable, Series C, 2.440%, 1/1/17	$	4,555,575
	Ohio — 0.7%
4,165,000	Columbus City School District, Refunding Revenue, Taxable, G.O., 5.000%, 12/1/22		4,882,171
	Pennsylvania — 0.3%
2,260,000	Philadelphia Authority for Industrial Development, Refunding Revenue, Taxable, 3.664%, 4/15/22		2,298,962
	Texas — 0.2%
1,390,000	State of Texas Public Finance Authority, Taxable, Series B, Refunding G.O., 3.093%, 10/1/24		1,453,926
	Washington — 0.2%
1,680,000	Port of Vancouver, WA, Refunding G.O., Limited Tax, Taxable, Series B, 2.714%, 12/1/21		1,723,159
	Wisconsin — 0.2%
1,640,000	Milwaukee County, WI, Pension Promissory Notes, Refunding G.O., Taxable, Callable 12/1/22 @ 100, 3.862%, 12/1/30		1,641,607
	Total Municipal Bonds (Cost $58,427,099)		61,096,582
U.S. GOVERNMENT AGENCIES — 2.2%
	Fannie Mae — 0.3%
1,471,000	6.250%, 5/15/29		2,108,952
	Federal Home Loan Bank — 1.9%
13,385,000	0.500%, 9/28/16		13,385,495
	Total U.S. Government Agencies (Cost $15,350,632)		15,494,447
U.S. TREASURY BONDS — 1.1%
2,826,854	1.750%, 1/15/28(c)		3,308,525
3,342,285	0.625%, 2/15/43(c)		3,274,657
839,000	3.125%, 2/15/43		936,927
	Total U.S. Treasury Bonds (Cost $7,499,893)		7,520,109
U.S. TREASURY NOTES — 1.7%
10,840,000	0.875%, 7/15/17		10,894,200
563,000	2.750%, 2/15/24		603,378
	Total U.S. Treasury Notes (Cost $11,442,465)		11,497,578

Continued

35

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
PREFERRED STOCKS — 0.9%
	Financials — 0.7%
61,601	Citigroup Capital XIII, 7.875%	$	1,633,659
52,677	Lloyds Banking Group PLC, 7.750%		1,339,049
65,135	US Bancorp, Series F, 6.500%		1,935,161
			4,907,869
	Telecommunication Services — 0.2%
47,000	Qwest Corp., 7.000%		1,245,500
	Total Preferred Stocks (Cost $5,900,209)		6,153,369
MONEY MARKET FUND — 1.0%
7,027,423	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(d)		7,027,423
	Total Money Market Fund (Cost $7,027,423)		7,027,423
Total Investments — 99.5% (Cost $676,512,374)			691,714,770
Net Other Assets (Liabilities) — 0.5%			3,387,773
NET ASSETS — 100.0%		$	695,102,543

(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, 2015. The maturity date reflected is the final maturity date.

(b) Rule 144A, Section 4(2) or other security that 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.

(d) Represents the current yield as of report date.

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.

36

Sterling Capital Corporate Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 0.5%
$    300,000	SBA Tower Trust, Series 2014-1A, Class C, STEP, 2.898%, 10/15/44(a)	$	303,646
	Total Asset Backed Securities (Cost $288,308)		303,646
CORPORATE BONDS — 96.5%
	Consumer Discretionary — 7.7%
320,000	21st Century Fox America, Inc., 4.500%, 2/15/21		354,451
325,000	CBS Corp., 2.300%, 8/15/19		325,049
425,000	Daimler Finance North America, LLC, 3.250%, 8/1/24(a)		442,027
390,000	ERAC USA Finance, LLC, 2.800%, 11/1/18(a)		401,289
360,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		364,018
455,000	Grupo Televisa SAB, 6.000%, 5/15/18		516,011
455,000	Interpublic Group of Cos., Inc. (The), 3.750%, 2/15/23		471,317
255,000	Lear Corp., 5.375%, 3/15/24		263,925
325,000	Levi Strauss & Co., 7.625%, 5/15/20		338,000
245,000	Omnicom Group, Inc., 3.650%, 11/1/24		253,442
510,000	Time Warner Cable, Inc., 4.000%, 9/1/21		545,890
230,000	Toll Brothers Finance Corp., 6.750%, 11/1/19		259,900
			4,535,319
	Consumer Staples — 1.2%
380,000	Altria Group, Inc., 4.750%, 5/5/21		424,157
225,000	Lorillard Tobacco Co., 6.875%, 5/1/20		268,174
50,000	Walgreens Boots Alliance, Inc., 2.700%, 11/18/19		51,080
			743,411
	Energy — 13.2%
334,000	BP Capital Markets PLC, 1.375%, 11/6/17		333,843
385,000	Buckeye Partners LP, 2.650%, 11/15/18		384,858
550,000	Chesapeake Energy Corp., 3.503%, 4/15/19(b)		529,375
250,000	CNOOC Nexen Finance, 4.250%, 4/30/24		265,769
450,000	Enable Midstream Partners LP, 3.900%, 5/15/24(a)		433,601
415,000	Energy Transfer Partners LP, 4.050%, 3/15/25		418,511
405,000	EnLink Midstream Partners LP, 4.400%, 4/1/24		425,727
448,000	Freeport-McMoran Oil & Gas, LLC/FCX Oil & Gas, Inc., 6.500%, 11/15/20		475,440
272,000	Kinder Morgan Energy Partners LP, 6.850%, 2/15/20		317,473
154,000	Kinder Morgan, Inc., 7.000%, 6/15/17		169,868
275,000	Magellan Midstream Partners LP, 6.550%, 7/15/19		322,271
247,000	MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 6.750%, 11/1/20		259,350
303,000	NuStar Logistics LP, 4.750%, 2/1/22		290,880
285,000	Oceaneering International, Inc., 4.650%, 11/15/24		288,145
410,000	Petrofac, Ltd., 3.400%, 10/10/18(a)		404,274
350,000	Pioneer Natural Resources Co., 6.650%, 3/15/17		380,445
410,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21		429,475
305,000	Spectra Energy Capital, LLC, 8.000%, 10/1/19		369,514
355,000	Spectra Energy Partners LP, 3.500%, 3/15/25		356,768
163,000	TC Pipelines LP, 4.375%, 3/13/25		164,616
368,000	Western Gas Partners LP, 4.000%, 7/1/22		374,075

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Energy — (continued)
$    300,000	Williams Partners LP/ACMP Finance Corp., 6.125%, 7/15/22	$	317,850
135,000	Williams Partners LP/ACMP Finance Corp., 4.875%, 3/15/24		135,675
			7,847,803
	Financials — 54.2%
270,000	AgriBank FCB, Series AI, 9.125%, 7/15/19		344,574
352,000	Alexandria Real Estate Equities, Inc., REIT, 4.600%, 4/1/22		371,963
255,000	Alleghany Corp., 4.950%, 6/27/22		282,543
335,000	Ally Financial, Inc., 2.750%, 1/30/17		333,764
280,000	Apollo Management Holdings LP, 4.000%, 5/30/24(a)		288,011
380,000	Ares Finance Co., LLC, 4.000%, 10/8/24(a)		373,777
260,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		274,538
400,000	Associated Banc-Corp, 2.750%, 11/15/19		405,094
560,000	Associates Corp. of North America, 6.950%, 11/1/18		652,179
250,000	AXIS Specialty Finance PLC, 2.650%, 4/1/19		253,011
940,000	Bank of America Corp., MTN, 6.875%, 4/25/18		1,075,226
875,000	Bank of America Corp., Series K, 8.000%, 7/29/49(b)		935,156
250,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 2.350%, 9/8/19(a)		252,361
485,000	Bear Stearns Cos., LLC (The), 5.550%, 1/22/17		518,807
335,000	Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(a)		395,913
185,000	Brixmor Operating Partnership LP, 3.850%, 2/1/25		185,152
600,000	Capital One Financial Corp., 3.200%, 2/5/25		595,019
255,000	CBRE Services, Inc., 5.250%, 3/15/25		274,125
335,000	CIT Group, Inc., 4.250%, 8/15/17		339,187
390,000	Citigroup, Inc., 3.500%, 5/15/23		388,920
350,000	Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.950%, 11/9/22		362,321
338,000	Corrections Corp. of America, REIT, 4.125%, 4/1/20		340,113
355,000	Credit Suisse, MTN, 3.625%, 9/9/24		366,916
397,000	CubeSmart LP, REIT, 4.800%, 7/15/22		438,538
355,000	DDR Corp., REIT, 9.625%, 3/15/16		382,897
365,000	Essex Portfolio LP, REIT, 3.250%, 5/1/23		364,500
300,000	Excel Trust LP, REIT, 4.625%, 5/15/24		314,802
485,000	Federal Realty Investment Trust, REIT, 6.200%, 1/15/17		531,690
355,000	First American Financial Corp., 4.300%, 2/1/23		355,467
250,000	First Data Corp., 7.375%, 6/15/19(a)		261,250
410,000	Ford Motor Credit Co., LLC, 2.375%, 1/16/18		417,095
1,100,000	General Electric Capital Corp., Series B, 6.250%, 12/29/49(b)		1,237,500
515,000	Goldman Sachs Group, Inc. (The), 3.625%, 1/22/23		532,702
300,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(a)		350,737
235,000	Health Care REIT, Inc., 4.950%, 1/15/21		261,029
505,000	Healthcare Realty Trust, Inc., REIT, 3.750%, 4/15/23		505,884
405,000	Healthcare Trust of America Holdings LP, REIT, 3.375%, 7/15/21		411,162

Continued

37

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal Amount			Fair Value
	CORPORATE BONDS — (continued)
		Financials — (continued)
	$    408,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23	$	413,546
	692,000	HSBC Finance Corp., 6.676%, 1/15/21		821,701
	408,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		429,148
	975,000	JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(b)		1,049,344
	365,000	KeyCorp, MTN, 5.100%, 3/24/21		414,551
	245,000	Liberty Mutual Group, Inc., 4.250%, 6/15/23(a)		260,958
	410,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(a)		436,630
	450,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(a)		530,482
	335,000	MetLife, Inc., 7.717%, 2/15/19		405,867
	997,000	Morgan Stanley, GMTN, 6.625%, 4/1/18		1,133,940
	869,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		920,887
	255,000	National City Corp., 6.875%, 5/15/19		300,879
	345,000	National Rural Utilities Cooperative Finance Corp., 10.375%, 11/1/18		446,993
	410,000	Nationwide Financial Services, Inc., 5.375%, 3/25/21(a)		461,779
	255,000	Old Republic International Corp., 4.875%, 10/1/24		270,721
	400,000	Pacific LifeCorp, 6.000%, 2/10/20(a)		457,508
	265,000	PNC Bank NA, BKNT, 4.875%, 9/21/17		286,064
	250,000	Protective Life Corp., 7.375%, 10/15/19		301,081
	300,000	Prudential Financial, Inc., 8.875%, 6/15/38(b)		353,625
	400,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		431,351
	390,000	Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23		426,492
	365,000	Royal Bank of Scotland Group PLC, 4.700%, 7/3/18		382,935
	245,000	Senior Housing Properties Trust, REIT, 6.750%, 4/15/20		279,333
	395,000	Simon Property Group LP, REIT, 10.350%, 4/1/19		511,999
	467,000	Sirius International Group, Ltd., 6.375%, 3/20/17(a)		504,648
	485,000	Standard Chartered Bank, 6.400%, 9/26/17(a)		534,240
	250,000	SunTrust Banks, Inc., 3.500%, 1/20/17		260,257
	270,000	Symetra Financial Corp., 4.250%, 7/15/24		282,005
	610,000	TIAA Asset Management Finance Co., LLC, 2.950%, 11/1/19(a)		625,183
	375,000	UBS AG, MTN, 5.875%, 7/15/16		396,719
	575,000	US Bancorp, MTN, 2.950%, 7/15/22		584,927
	500,000	WEA Finance, LLC/Westfield UK & Europe Finance PLC, 2.700%, 9/17/19(a)		506,145
	390,000	WR Berkley Corp., 4.625%, 3/15/22		424,047
	295,000	XLIT, Ltd., 4.450%, 3/31/25		296,909
				32,116,817
		Health Care — 2.6%
	200,000	Actavis Funding SCS, 3.800%, 3/15/25		206,406
	303,000	DaVita HealthCare Partners, Inc., 6.625%, 11/1/20		317,393
	285,000	DENTSPLY International, Inc., 2.750%, 8/15/16		290,483
	310,000	Fresenius US Finance II, Inc., 9.000%, 7/15/15(a)		316,200
	430,000	Zimmer Holdings, Inc., 2.700%, 4/1/20		435,997
				1,566,479

Principal Amount			Fair Value
	CORPORATE BONDS — (continued)
		Industrials — 5.7%
	$    325,000	CNH Industrial Capital, LLC, 3.875%, 11/1/15	$	327,437
	230,000	Dover Corp., 5.450%, 3/15/18		255,586
	255,000	International Lease Finance Corp., 4.875%, 4/1/15		255,000
	400,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(a)		432,742
	336,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		338,247
	345,000	Textron, Inc., 3.650%, 3/1/21		360,727
	445,000	United Rentals North America, Inc., 7.375%, 5/15/20		480,878
	445,000	Verisk Analytics, Inc., 5.800%, 5/1/21		512,197
	350,000	Waste Management, Inc., 4.600%, 3/1/21		391,283
				3,354,097
		Information Technology — 1.0%
	340,000	Alibaba Group Holding, Ltd., 2.500%, 11/28/19(a)		340,117
	250,000	Altera Corp., 1.750%, 5/15/17		251,535
				591,652
		Materials — 4.6%
	394,000	Cemex SAB de CV, 5.875%, 3/25/19(a)		406,805
	585,000	Glencore Finance Canada, Ltd., 4.250%, 10/25/22(a)		601,389
	390,000	Louisiana-Pacific Corp., 7.500%, 6/1/20		416,325
	400,000	LYB International Finance BV, 4.000%, 7/15/23		423,708
	330,000	PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20		353,513
	254,000	Rockwood Specialties Group, Inc., 4.625%, 10/15/20		264,477
	250,000	West Fraser Timber Co., Ltd., 4.350%, 10/15/24(a)		250,399
				2,716,616
		Telecommunication Services — 4.3%
	450,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(a)		513,351
	305,000	GTP Acquisition Partners I, LLC, 7.628%, 6/15/16(a)		321,394
	267,000	Level 3 Financing, Inc., 9.375%, 4/1/19		279,517
	310,000	Telefonica Emisiones SAU, 3.992%, 2/16/16		317,891
	525,000	Verizon Communications, Inc., 1.041%, 6/17/19(b)		529,062
	497,000	Verizon Communications, Inc., 5.150%, 9/15/23		569,802
				2,531,017
		Utilities — 2.0%
	313,000	CMS Energy Corp., 8.750%, 6/15/19		395,762
	350,000	Dominion Resources, Inc., 5.200%, 8/15/19		393,954
	375,000	PSEG Power, LLC, 2.450%, 11/15/18		379,989
				1,169,705
		Total Corporate Bonds (Cost $55,910,483)		57,172,916

Continued

38

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
PREFERRED STOCKS — 1.1%
	Financials — 1.1%
14,500	Citigroup Capital XIII, 7.875%	$	384,540
10,196	Lloyds Banking Group PLC, 7.750%		259,182
			643,722
	Total Preferred Stocks (Cost $662,271)		643,722
MONEY MARKET FUND — 0.4%
216,216	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		216,216
	Total Money Market Fund (Cost $216,216)		216,216
Total Investments — 98.5% (Cost $57,077,278)			58,336,500
Net Other Assets (Liabilities) — 1.5%			882,401
NET ASSETS — 100.0%.		$	59,218,901

(a) Rule 144A, Section 4(2) or other security that 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, 2015. The maturity date reflected is the final maturity date.

(c) Represents the current yield as of report 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.

39

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal      Amount			Fair Value
	ASSET BACKED SECURITIES — 17.5%
	$    350,000	AmeriCredit Automobile Receivables Trust, Series 2013-3, Class C, 2.380%, 6/10/19	$	354,462
	255,000	AmeriCredit Automobile Receivables Trust, Series 2014-1, Class B, 1.680%, 7/8/19		255,781
	380,000	AmeriCredit Automobile Receivables Trust, Series 2015-1, Class B, 1.880%, 3/9/20		379,901
	360,296	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.511%, 11/25/35(a)		349,500
	600,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(b)		606,573
	300,000	Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 1.571%, 10/25/34(a)		300,568
	422,000	Chase Issuance Trust, Series 2014-A2, Class A2, 2.770%, 3/15/23		435,889
	625,000	Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.880%, 1/23/23		650,402
	300,000	Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.150%, 6/15/39		418,722
	640,000	Encore Credit Receivables Trust, Series 2005-4, Class M2, 0.611%, 1/25/36(a)		595,158
	370,000	Ford Credit Auto Owner Trust 2014-REV2, Series 2014-2, Class A, 2.310%, 4/15/26(b)		376,915
	650,000	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A2, 1.830%, 8/25/19(b)		647,717
	518,018	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.371%, 1/25/36(a)		498,868
	399,583	Morgan Stanley Home Equity Loan Trust, Series 2005-3, Class M2, 0.641%, 8/25/35(a)		384,771
	320,000	RAMP Trust, Series 2005-RZ4, Class M2, 0.671%, 11/25/35(a)		275,243
	400,000	Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18		401,292
	453,241	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.491%, 10/25/35(a)		439,020
		Total Asset Backed Securities (Cost $7,254,251)		7,370,782
	COLLATERALIZED MORTGAGE     OBLIGATIONS — 27.3%
	211,773	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		220,085
	152,123	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		154,479
	178,904	Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A4, 5.500%, 2/25/35		182,515
	197,435	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		207,449
	252,906	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		268,030
	86,047	Countrywide Home Loan Mortgage Pass Through Trust, Series 2003-J7, Class 1A3, 5.250%, 8/25/33		87,767
	171,355	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		178,418
	200,116	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		201,870

Principal      Amount			Fair Value
	COLLATERALIZED MORTGAGE     OBLIGATIONS — (continued)
	$    271,271	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34	$	287,135
	216,318	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		225,264
	585,038	Fannie Mae, Series 2011-99, Class CV, 4.500%, 3/25/26		651,692
	375,000	Fannie Mae, Series 2011-15, Class VB, 4.000%, 9/25/29		406,083
	448,134	Fannie Mae, Series 2004-17, Class BZ, 6.000%, 4/1/34		597,049
	154,000	Fannie Mae, Series 2013-30, Class PY, 3.000%, 4/25/43		157,548
	357,996	FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/1/44(a)(b)		365,826
	308,842	Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23		335,377
	100,000	Freddie Mac, Series 3558, Class G, 4.000%, 8/15/24		110,228
	38,406	Freddie Mac, Series 4079, Class WV, 3.500%, 3/15/27		40,463
	308,130	Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27		331,674
	487,327	Freddie Mac, Series 2525, Class AM, 4.500%, 4/15/32		546,603
	162,222	Freddie Mac, Series 2485, Class WG, 6.000%, 8/15/32		185,941
	150,000	Freddie Mac, Series 2702, Class CE, 4.500%, 11/15/33		164,408
	282,845	Freddie Mac, Series 3440, Class EM, 5.000%, 4/15/38		314,708
	596,378	Freddie Mac, Series 3835, Class BA, 4.000%, 8/15/38		639,084
	482,316	Freddie Mac, Series 3753, Class PA, 3.500%, 9/15/39		509,031
	466,345	Freddie Mac, Series 3816, Class HM, 4.500%, 5/1/40		520,642
	371,910	Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40		395,650
	242,650	Freddie Mac, Series 3803, Class PJ, 4.250%, 1/15/41		262,641
	640,000	Freddie Mac, Series 4176, Class CE, 3.000%, 3/15/43		648,875
	226,059	Ginnie Mae, Series 2010-85, Class DQ, 3.000%, 12/20/39		231,641
	349,868	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		360,926
	87,566	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		90,843
	151,241	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		152,065
	173,549	PHHMC Trust, Series 2007-6, Class A1, 5.457%, 12/18/37(a)		173,105
	154,083	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		161,425
	142,083	RBSGC Mortgage Loan Trust, Series 2007-B, Class 3A1, 5.317%, 7/25/35(a)		146,394
	349,858	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		353,297

Continued

40

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$    142,696	Structured Asset Securities Corp. Trust, Series 2005-6, Class 4A1, 5.000%, 5/25/35	$	144,728
58,859	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35		60,153
39,141	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35		40,002
52,639	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		54,205
367,393	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		376,801
	Total Collateralized Mortgage Obligations (Cost $11,176,767)		11,542,120
COMMERCIAL MORTGAGE-BACKED SECURITIES — 17.2%
70,000	Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/1/46		74,045
15,883	Banc of America Commercial Mortgage Trust, Series 2007-2, Class A2, 5.597%, 4/10/49(a)		15,890
200,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		201,234
476,369	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		471,248
140,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T22, Class AJ, 5.575%, 4/1/38(a)		145,445
180,000	COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/1/47		191,489
100,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.028%, 12/10/49(a)		108,620
618,000	Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a)		627,317
175,000	GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(b)		195,226
370,000	GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47		405,202
216,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47		235,948
70,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/1/43(b)		78,322
300,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		314,619
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b)		559,440
375,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class AS, 4.043%, 7/15/47		405,128
165,000	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.265%, 9/15/45(a)		182,909
100,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47		109,056
250,000	Morgan Stanley Capital I Trust, Series 2006-T23, Class AM, 5.876%, 8/1/41(a)		264,046
215,000	Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.462%, 3/12/44(a)		221,659

Principal Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$    400,000	Morgan Stanley Capital I Trust, Series 2011-C2, Class A4, 4.661%, 6/1/44(b)	$	449,374
760,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class B, 5.276%, 11/15/43(a)(b)		856,315
100,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class C, 5.392%, 2/1/44(a)(b)		111,157
400,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b)		449,858
395,000	WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57		426,257
164,000	WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57		179,234
	Total Commercial Mortgage-Backed Securities (Cost $7,251,057)		7,279,038
MORTGAGE-BACKED SECURITIES — 33.8%
	Fannie Mae — 19.6%
228,850	4.000%, 3/1/31, Pool #MA0667		246,471
349,692	4.000%, 5/1/32, Pool #MA1074		377,589
316,491	4.000%, 6/1/34, Pool #MA1922		341,831
252,670	4.000%, 9/1/34, Pool #MA2019		273,018
296,085	5.500%, 6/1/38, Pool #984277		333,292
236,902	5.500%, 8/1/38, Pool #995072		269,965
242,902	4.500%, 9/1/39, Pool #AC1830		265,423
194,500	5.000%, 12/1/39, Pool #AC8518		216,232
156,966	4.500%, 9/1/40, Pool #AE0411		172,730
325,189	4.500%, 10/1/40, Pool #AE4855		356,203
284,869	5.000%, 1/1/41, Pool #AH3373		318,088	��
290,177	3.500%, 2/1/41, Pool #AH5646		307,168
53,303	4.000%, 2/1/41, Pool #AH6188		57,651
613,782	4.000%, 3/1/41, Pool #AH4008		657,806
842,288	4.500%, 3/1/41, Pool #AB2467		937,323
178,586	4.500%, 6/1/41, Pool #AC9298		195,643
274,842	5.000%, 7/1/41, Pool #AI5595		306,706
473,724	4.000%, 9/1/41, Pool #AJ1717		508,044
466,714	3.500%, 6/1/42, Pool #AB5373		491,082
753,225	3.500%, 5/1/43, Pool #AB9368		791,973
390,800	4.500%, 1/1/45, Pool #MA2158		428,516
415,168	4.000%, 3/1/45, Pool #MA2217		444,496
			8,297,250
	Freddie Mac — 12.2%
820,231	3.500%, 5/1/32, Pool #C91458		868,587
706,944	3.500%, 7/1/32, Pool #C91467		746,121
444,451	4.500%, 10/1/39, Pool #G05659		484,868
164,739	5.500%, 10/1/39, Pool #A89387		184,752
225,222	5.000%, 4/1/40, Pool #A91812		251,856
204,709	5.500%, 4/1/40, Pool #C03467		229,793
217,533	5.000%, 8/1/40, Pool #C03491		241,578
325,207	4.000%, 11/1/40, Pool #A94742		351,383
335,230	4.000%, 12/1/40, Pool #A95447		362,305
478,470	4.000%, 1/1/41, Pool #A96312		512,856
300,219	3.500%, 3/1/42, Pool #G08479		315,258
555,839	3.500%, 4/1/42, Pool #C03858		584,634
			5,133,991
	Ginnie Mae — 2.0%
270,516	4.500%, 6/15/39, Pool #720075		302,969
39,728	4.000%, 12/20/40, Pool #755678		43,119
188,592	4.500%, 3/20/41, Pool #4978		205,817

Continued

41

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
	Ginnie Mae — (continued)
$    262,146	4.500%, 5/15/41, Pool #738310	$	293,460
			845,365
	Total Mortgage-Backed Securities (Cost $13,893,649)		14,276,606
U.S. TREASURY NOTE — 1.8%
750,000	1.250%, 1/31/20		746,133
	Total U.S. Treasury Note (Cost $741,712)		746,133
Shares
MONEY MARKET FUND — 2.0%
853,098	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		853,098
	Total Money Market Fund (Cost $853,098)		853,098

	Fair Value
Total Investments — 99.6% (Cost $41,170,534)	$	42,067,777
Net Other Assets (Liabilities) — 0.4%		180,137
NET ASSETS — 100.0%	$	42,247,914

(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, 2015. The maturity date reflected is the final maturity date.

(b) Rule 144A, Section 4(2) or other security that 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 the current yield as of report date.

See accompanying Notes to the Financial Statements.

42

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal     Amount		Fair Value
MUNICIPAL BONDS — 94.7%
	Kentucky — 94.7%
$    400,000	Eastern Kentucky University, Refunding Revenue, Series A, (State Intercept), 5.000%, 4/1/24	$	478,812
500,000	Fayette County, KY, School District Finance Corp., Lease Payable from Local Revenues, Series A, (State Intercept), 5.000%, 10/1/21		592,760
400,000	Jefferson County, KY, School District Finance Corp., Jefferson County School Building, Refunding Revenue, Series A, (AGM), 5.250%, 1/1/19		459,700
500,000	Kentucky Asset/Liability Commission, Project Notes, Federal Highway Trust Transit Improvements Revenue, First Series, (NATL-RE), 4.500%, 9/1/17		544,135
510,000	Kentucky Asset/Liability Commission, Project Notes, Federal Highway Trust Transit Improvements Revenue, First Series, Callable 9/1/23 @ 100, 5.250%, 9/1/25		621,756
510,000	Kentucky Asset/Liability Commission, University of Kentucky Project Notes, Revenue, Series B, Callable 10/1/17 @ 100, 5.000%, 10/1/21		562,744
400,000	Kentucky Economic Development Finance Authority, Baptist Healthcare System, Improvements Refunding Revenue, Series A, Callable 8/15/18 @ 100, OID, 4.750%, 8/15/19		440,476
500,000	Kentucky Economic Development Finance Authority, Owensboro Medical Health System, Hospital Improvements Revenue, Series A, 5.000%, 6/1/16		524,980
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		623,754
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		543,610
410,000	Kentucky State Property & Buildings Commission, Project No. 76, Refunding Revenue, (AMBAC), 5.500%, 8/1/21		499,819
460,000	Kentucky State Property & Buildings Commission, Project No. 83, Refunding Revenue, (AMBAC), 5.000%, 10/1/19		532,188
400,000	Kentucky Turnpike Authority, Revitalization Projects, Refunding Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/25		458,968
400,000	Kentucky Turnpike Authority, Revitalization Projects, Revenue, Series A, 4.000%, 7/1/21		453,956
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		500,788
300,000	Laurel County, KY, School District Finance Corp., Advance Refunding Revenue, Callable 3/1/25 @ 100 (State Intercept), 4.000%, 6/1/25		337,413

Principal     Amount			Fair Value
MUNICIPAL BONDS — (continued)
		Kentucky — (continued)
$    525,000		Lexington-Fayette Urban County, KY, Airport Board, Refunding Revenue, Series A, 5.000%, 7/1/19	$	603,409
500,000		Lexington-Fayette Urban County, KY, Government Sewer System, Refunding Revenue, Series A, 4.000%, 9/1/23		575,985
535,000		Louisville & Jefferson County, KY, Metropolitan Government, Catholic Health Initiatives, Refunding Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 12/1/35		590,089
500,000		Louisville & Jefferson County, KY, Metropolitan Government, Refunding G.O., Series F, Callable 11/1/24 @ 100, 4.000%, 11/1/26		563,855
500,000	��	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 11/15/21 @ 100, 5.000%, 5/15/30		582,805
500,000		Northern Kentucky University, University & College Improvements Revenue, Series A, Callable 9/1/17 @ 100, (AMBAC, State Intercept), OID, 4.250%, 9/1/21		537,660
540,000		Owensboro, KY, Public Improvements G.O., Series A, 4.000%, 5/1/22		613,807
535,000		Owensboro, KY, Water Refunding & Improvements Revenue, Callable 9/15/18 @ 100, (Assured Guaranty), 5.250%, 9/15/21		606,342
400,000		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		455,484
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		308,235
200,000		Russell, KY, Bon Secours Health System, Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/26		229,892
380,000		Warren County, KY, Community Hospital Corp. Project, Refunding Revenue, Series A, 5.000%, 8/1/17		407,877
		Total Municipal Bonds (Cost $13,283,617)		14,251,299

See accompanying Notes to the Financial Statements.

43

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 3.8%
565,229	Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(a)	$	565,229
	Total Money Market Fund (Cost $565,229)		565,229
Total Investments — 98.5% (Cost $13,848,846)			14,816,528
Net Other Assets (Liabilities) — 1.5%			230,749
NET ASSETS — 100.0%		$	15,047,277

(a) Represents the current yield as of report 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.

44

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal       Amount		Fair Value
MUNICIPAL BONDS — 95.5%
	District of Columbia — 4.9%
$     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	$	664,349
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		1,149,790
			1,814,139
	Maryland — 90.6%
810,000	Anne Arundel County, MD, Economic Development, Anne Arundel Community College Project, Refunding Revenue, 4.000%, 9/1/20		899,934
500,000	Baltimore, MD, Consolidated Public Improvements, Refunding G.O., Series B, 5.000%, 10/15/20		592,450
600,000	Baltimore, MD, Refunding Certificate of Participation, Series A, 5.000%, 10/1/17		659,418
1,000,000	Charles County, MD, Consolidated Public School Improvements G.O., 5.000%, 7/15/22		1,227,690
890,000	Charles County, MD, Consolidated Public School Improvements G.O., Callable 7/15/23 @ 100, 5.000%, 7/15/25		1,088,550
1,025,000	Frederick County, MD, Public Facilities Improvements, Refunding G.O., Series B, 4.000%, 8/1/17		1,103,956
125,000	Howard County, MD, Miscellaneous Purpose Certificate of Participation, Series A, 8.050%, 2/15/21		170,666
135,000	Howard County, MD, Public Improvements Certificate of Participation, Series B, 8.250%, 2/15/20		177,324
690,000	Maryland Community Development Administration, Residential Single Family Housing Revenue, Series A, Callable 9/1/18 @ 100, 4.750%, 9/1/29		723,196
250,000	Maryland Economic Development Corp., Electricity Lights & Power Improvements, Refunding Revenue, Callable 3/1/19 @ 100, 6.200%, 9/1/22		295,545
140,000	Maryland Economic Development Corp., Lutheran World Relief Refugee, Refunding Revenue, Callable 4/1/17 @ 100, 5.250%, 4/1/19		149,675
975,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, 5.000%, 6/1/20		1,144,913
420,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, Callable 6/1/21 @ 100, 5.000%, 6/1/26		495,776
735,000	Maryland Economic Development Corp., University of Maryland College Park Projects, Refunding Revenue (AGC), 5.000%, 6/1/16		767,200
555,000	Maryland Environmental Service, Mid Shore II Regional Landfill, Resource Recovery Improvements Revenue, 4.000%, 11/1/17		598,229

Principal       Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$    1,000,000	Maryland Health & Higher Educational Facilities Authority, Calvert Health System, Health, Hospital, Nursing Home Improvements, Refunding Revenue, Callable 07/01/23 @ 100, OID, 5.000%, 7/1/38	$	1,115,740
1,090,000	Maryland Health & Higher Educational Facilities Authority, Carroll Hospital, Refunding Revenue, Series A, 5.000%, 7/1/19		1,231,111
900,000	Maryland Health & Higher Educational Facilities Authority, College of Notre Dame, Refunding Revenue, 4.000%, 10/1/19		974,466
1,000,000	Maryland Health & Higher Educational Facilities Authority, Frederick Memorial Hospital, Refunding Revenue, Series A, 5.000%, 7/1/22		1,162,300
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		577,920
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		1,183,350
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		616,591
1,000,000	Maryland Health & Higher Educational Facilities Authority, MedStar Health Inc., Health, Hospital, Nursing Home Improvements Revenue, Series B, Callable 8/15/23 @ 100, 5.000%, 8/15/38		1,125,770
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		856,826
400,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System, Refunding Revenue, 5.000%, 7/1/19		456,892
1,160,000	Maryland Stadium Authority, Refunding Revenue, 5.000%, 6/15/23		1,420,258
500,000	Maryland State Department of Transportation, Transit Improvements Revenue, Second Issue, Callable 9/1/18 @ 100, 5.000%, 9/1/23		568,045
1,100,000	Maryland State Transportation Authority, Grant & Revenue Anticipation, Highway Improvements Revenue, Callable 3/1/19 @ 100, OID, 5.000%, 3/1/20		1,259,995
635,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, 5.000%, 7/1/19		734,676
1,000,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/22		1,151,440

Continued

45

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal         Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Maryland — (continued)
	$      500,000	Montgomery County, MD, Department Liquor Control Public Improvements Revenue, Series A, Callable 4/1/21 @ 100, OID, 4.500%, 4/1/26	$	554,155
	1,000,000	Montgomery County, MD, Public Transportation Equipment Transit Improvements Certificate of Participation, 4.000%, 5/1/17		1,065,130
	1,025,000	Montgomery County, MD, Revenue Authority, Refunding Revenue, 5.000%, 5/1/22		1,225,922
	750,000	Montgomery County, MD, Water Quality Public Improvements Revenue, Series A, Callable 4/1/20 @ 100, 5.000%, 4/1/30		869,430
	890,000	Montgomery County, MD, West Germantown Development District, Refunding, Special Tax, 4.000%, 7/1/23		993,881
	1,000,000	Prince George’s County, MD, Consolidated Public School Improvements, G.O., Series A, Callable 9/01/24 @ 100, 4.000%, 9/1/25		1,161,240
	530,000	Talbot County, MD, Public School Improvements G.O., 5.000%, 12/15/16		571,070
	1,140,000	Washington County, MD, Refunding G.O., 4.000%, 1/1/21		1,296,419

Principal         Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$      700,000	Washington Suburban Sanitary Commission, Consolidated Public Water Utility Improvements, G.O., 4.000%, 6/1/24	$	820,337
500,000	Washington Suburban Sanitary Commission, Water Supply G.O., Callable 6/1/17 @ 100, 4.000%, 6/1/20		533,000
			33,620,486
	Total Municipal Bonds (Cost $33,861,802)		35,434,625
Shares
MONEY MARKET FUND — 3.6%
1,324,366	Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(a)		1,324,366
	Total Money Market Fund (Cost $1,324,366)		1,324,366
Total Investments — 99.1% (Cost $35,186,168)			36,758,991
Net Other Assets (Liabilities) — 0.9%			325,044
NET ASSETS — 100.0%		$	37,084,035

(a) Represents the current yield as of report date.

AGC — Assured Guaranty Corp.

G.O. — General Obligation

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

46

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2015 (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		$2,778,393
	2,405,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 4.750%, 10/1/27		2,731,262
	1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/24		1,177,910
	1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,158,280
	1,065,000	Broad River Water Authority, NC, Water System Refunding Revenue, Callable 6/1/15 @ 100, (XLCA), 5.000%, 6/1/18		1,071,401
	1,025,000	Buncombe County Metropolitan Sewerage District, Sewer Improvements Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/39		1,193,971
	1,985,000	Buncombe County, NC, Public Improvements Revenue, Series A, 4.000%, 6/1/17		2,127,146
	2,000,000	Buncombe County, NC, Refunding Revenue, Limited Obligations, Series A, 5.000%, 6/1/20		2,350,720
	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		1,126,530
	1,960,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, 5.000%, 1/1/17		2,108,450
	1,685,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/20		1,923,731
	1,730,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/23		1,975,106
	1,240,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, 5.000%, 8/1/21		1,490,542
	1,475,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/26		1,746,282
	1,535,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/28		1,792,205
	1,160,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26		1,299,409
	1,030,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/31		1,148,697
	720,000	Cary, NC, Combined Utility Systems, Refunding Revenue, Callable 12/1/25 @ 100, 4.000%, 12/1/29		800,582
	1,000,000	Cary, NC, Combined Utility Systems, Refunding Revenue, Callable 12/1/25 @ 100, 4.000%, 12/1/30		1,105,100

Principal      Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$    1,000,000	Cary, NC, Combined Utility Systems, Refunding Revenue, Callable 12/1/25 @ 100, 4.000%, 12/1/31		$1,098,340
	1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/19		1,113,920
	1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/20		1,125,730
	1,000,000	Charlotte, NC, Charlotte Douglas International Airport Refunding Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/31		1,168,380
	1,000,000	Charlotte, NC, Port, Airport & Marina Improvements Revenue, Series A, Callable 7/1/20 @ 100, 5.000%, 7/1/27		1,140,490
	1,280,000	Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/20		1,349,773
	1,000,000	Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/23		1,054,750
	1,000,000	Charlotte, NC, Water & Sewer System, Refunding Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/25		1,180,210
	1,000,000	Charlotte-Mecklenburg Hospital Authority, Carolinas Health Care System, Refunding Revenue, Series A, 5.000%, 1/15/17		1,078,570
	2,000,000	Chatham County, NC, Refunding Revenue (County Guaranteed), 5.000%, 12/1/28		2,510,760
	2,000,000	Concord, NC, Utilities Systems, Refunding Revenue, Series B, Callable 12/1/19 @ 100, 5.000%, 12/1/22		2,271,740
	1,000,000	Durham Capital Financing Corp., Limited Obligation Refunding Revenue, 5.000%, 6/1/21		1,198,840
	1,410,000	Durham County, NC, Industrial Facilities & Pollution Control Financing Authority, Research Triangle Institute, University & College Improvements Revenue, 5.000%, 2/1/20		1,619,455
	2,000,000	Durham County, NC, Public Improvements Certificate of Participation, Series A, Callable 6/1/19 @ 100, 5.000%, 6/1/24		2,288,100
	1,000,000	Durham, NC, Refunding G.O., 4.000%, 9/1/25		1,180,670
	1,750,000	Fayetteville, NC, Public Works Commission, Electric Light & Power Improvements Revenue, Callable 3/1/24 @ 100, 4.000%, 3/1/27		1,967,840
	1,085,000	Franklin County, NC, Public Facilities Projects, Certificate of Participation, Callable 9/1/17 @ 100 (NATL-RE), 5.000%, 9/1/22		1,184,983
	1,030,000	Henderson County, NC, University & College Improvements Revenue, Series B, 4.000%, 12/1/16		1,088,360
	1,010,000	Holly Springs, NC, Public Improvements Revenue, Callable 10/1/24 @ 100, 5.000%, 10/1/27		1,224,484
	2,335,000	Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/19		2,672,057
	2,125,000	Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/20		2,491,371
	2,470,000	Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/21		2,951,922

Continued

47

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal      Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$    1,150,000	Iredell County, NC, School Improvements Project, Certificate of Participation, Callable 6/1/16 @ 100 (AMBAC), 5.000%, 6/1/22		$1,212,825
	1,000,000	Iredell County, NC, School Improvements Project, Certificate of Participation, Callable 6/1/16 @ 100 (AMBAC), 5.000%, 6/1/23		1,054,630
	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		1,082,840
	1,570,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/19		1,733,563
	1,705,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/20		1,911,697
	1,750,000	Lincoln County, NC, Refunding G.O., Series A, 5.000%, 6/1/18		1,971,043
	2,535,000	Lincoln County, NC, Refunding G.O., Series A, 4.000%, 6/1/19		2,822,596
	800,000	Lincolnton, NC, Combined Enterprise System, Refunding Revenue, Callable 5/11/15 @ 100 (XLCA), 5.000%, 5/1/17		801,896
	2,000,000	Mecklenburg County, NC, Refunding G.O., 5.000%, 2/1/21		2,398,880
	1,280,000	Monroe, NC, Combined Enterprise System, Refunding Revenue (AGM), 4.000%, 3/1/19		1,407,462
	1,855,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/19		2,162,745
	1,015,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/20		1,205,241
	1,270,000	New Hanover County, NC, New Hanover Regional Medical, Refunding Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,475,308
	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		1,151,870
	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		1,202,439
	1,305,000	North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, 5.000%, 4/1/21		1,525,153
	1,000,000	North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, Callable 4/1/23 @ 100, 5.000%, 4/1/25		1,186,450
	1,000,000	North Carolina Eastern Municipal Power Agency, Electric, Lights & Power Improvements Revenue, Series A, Callable 7/1/22 @ 100, 5.000%, 1/1/25		1,172,030
	1,915,000	North Carolina Eastern Municipal Power Agency, Electric, Lights & Power Improvements Revenue, Series A, OID, 6.400%, 1/1/21		2,229,807
	1,000,000	North Carolina Eastern Municipal Power Agency, Refunding Revenue, Series A, Callable 1/1/16 @ 100 (AMBAC), 5.250%, 1/1/20		1,037,440

Principal      Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$    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		$1,118,615
	1,500,000	North Carolina Medical Care Commission, Firsthealth Carolina, Refunding Revenue, Series C, OID, 4.000%, 10/1/18		1,636,515
	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		5,776,300
	915,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.000%, 7/1/19		1,019,557
	1,180,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.375%, 7/1/20		1,351,536
	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		1,091,010
	3,030,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, 5.000%, 6/1/20		3,529,859
	1,530,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, Callable 6/1/20 @ 100, 5.250%, 6/1/29		1,739,059
	2,600,000	North Carolina Medical Care Commission, Rex Healthcare, Refunding Revenue, Series A, 5.000%, 7/1/17		2,832,596
	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		3,220,825
	1,260,000	North Carolina Medical Care Commission, Wakemed Refunding Revenue, Series A, 5.000%, 10/1/22		1,489,559
	2,000,000	North Carolina Medical Care Commission, Wakemed, Refunding Revenue, Series A, Callable 10/1/22 @ 100, 5.000%, 10/1/27		2,279,840
	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		820,819
	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		2,887,250
	2,000,000	North Carolina State University at Raleigh, Refunding Revenue, Series A, Callable 10/1/23 @ 100, 5.000%, 10/1/28		2,390,040
	4,550,000	North Carolina State, Public Improvements, Revenue, Series C, Callable 5/1/21 @ 100, 4.000%, 5/1/23		5,073,477
	2,380,000	North Carolina State, Refunding G.O., Series B, 5.000%, 4/1/17		2,590,392

Continued

48

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal      Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    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		$1,043,290
1,250,000	Onslow County, NC, Refunding G.O., 5.000%, 12/1/21		1,506,650
1,520,000	Onslow Water & Sewer Authority, Water Utility Improvements Revenue, Series B, Callable 5/11/15 @ 100 (XLCA), 5.000%, 6/1/21		1,526,004
1,365,000	Orange County, NC, Public Facilities Co., Public Improvements, Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,647,145
1,105,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL-RE), 5.250%, 6/1/18		1,231,445
1,000,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL-RE), 5.250%, 6/1/19		1,139,230
1,210,000	Pender County, NC, Limited Obligation Refunding Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,431,999
1,390,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/24		1,639,505
1,395,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,634,312
2,160,000	Raleigh Durham Airport Authority, Refunding Revenue, Series B1, Callable 5/1/20 @ 100, 5.000%, 11/1/28		2,485,642
1,500,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/27		1,803,630
1,615,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/28		1,926,582
1,070,000	Raleigh, NC, Public Improvements, Revenue, Series A, Callable 10/1/24 @ 100, 4.000%, 10/1/31		1,150,550
1,525,000	Rockingham County, NC, Public Improvements Certificate of Participation (Assured Guaranty), 5.000%, 4/1/17		1,658,529
1,510,000	Rockingham County, NC, Refunding Revenue, 5.000%, 4/1/18		1,687,380
1,000,000	Union County, NC, Enterprise Systems, Refunding Revenue, Series A, Callable 12/1/21 @ 100, 4.000%, 12/1/22		1,145,320
2,205,000	Union County, NC, Refunding G.O., Series A, 5.000%, 3/1/22		2,684,147
1,000,000	Union County, NC, Refunding Revenue, 5.000%, 12/1/23		1,233,930
2,285,000	University of North Carolina at Greensboro, Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/23		2,674,684
1,695,000	University of North Carolina at Greensboro, University & College Improvements Revenue, Callable 4/1/24 @ 100, 5.000%, 4/1/28		2,012,846
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		3,824,469

Principal      Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$    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		$    3,637,749
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		1,733,381
1,975,000	University of North Carolina System, The University of North Carolina at Greensboro, Refunding Revenue, Series B2, 5.000%, 4/1/17		2,143,171
1,000,000	University of North Carolina System, University & College Improvements, General Trust Indenture Revenue, Series C, 4.500%, 10/1/17		1,082,060
775,000	University of North Carolina System, University & College Improvements, Unrefunded Revenue, Series A, Callable 10/1/16 @ 100 (NATL-RE), 5.000%, 10/1/17		826,119
2,125,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/24		2,504,589
1,000,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,158,280
1,000,000	Winston-Salem State University Foundation LLC, Refunding Revenue, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,128,140
1,000,000	Winston-Salem, NC, Transit Improvements, Refunding Revenue, Series C, Callable 6/1/24 @ 100, 5.000%, 6/1/30		1,182,960
1,165,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, 5.000%, 6/1/24		1,462,657
1,000,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/17 @ 100, 5.000%, 6/1/19		1,093,300
1,875,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/25		2,336,250
1,000,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/28		1,216,360
	Total Municipal Bonds (Cost $185,300,880)		196,251,931

Continued

49

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 1.7%
3,452,685	Federated North Carolina Municipal Cash Trust, Institutional Shares, 0.010%(a)	$	3,452,685
	Total Money Market Fund (Cost $3,452,685)		3,452,685
Total Investments — 98.7% (Cost $188,753,565)			199,704,616
Net Other Assets (Liabilities) — 1.3%			2,689,681
NET ASSETS — 100.0%		$	202,394,297

(a) Represents the current yield as of report date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Corp.

CR — Custodial Receipts

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.

50

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — 94.7%
	South Carolina — 94.7%
$    1,515,000	Anderson County, SC, School District No 4, Refunding, G.O., Series A, Callable 3/1/25 @ 100, (SCSDE), 5.000%, 3/1/28	$	1,845,830
1,000,000	Anderson Regional Joint Water System, Refunding Revenue, Series A, Callable 7/15/21 @ 100, 5.000%, 7/15/25		1,150,720
1,095,000	Anderson, SC, Water & Sewer, Refunding Revenue (AGM), 5.000%, 7/1/19		1,257,071
1,000,000	Beaufort County, SC, School District, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/22		1,209,550
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		1,084,070
760,000	Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/16		803,343
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		1,222,350
1,000,000	Charleston County, SC, Port, Airport & Marina Improvements Revenue, 5.000%, 12/1/22		1,208,200
2,500,000	Charleston Educational Excellence Finance Corp., Charleston County School Refunding Revenue, 5.000%, 12/1/21		3,005,875
1,355,000	Coastal Carolina University, University & College Improvements Revenue, Callable 6/1/24 @ 100, 5.000%, 6/1/34		1,557,843
1,295,000	College of Charleston, University & College Improvements Refunding Revenue, Series A, Callable 4/1/21 @ 100, 5.000%, 4/1/25		1,496,813
1,000,000	College of Charleston, University & College Improvements Revenue, Series A, Callable 4/1/24 @ 100, 5.000%, 4/1/25		1,203,740
1,095,000	Columbia, SC, Recreational Facilities Improvements Revenue, Callable 2/1/24 @ 100, 4.000%, 2/1/31		1,174,103
1,170,000	Easley Combined Utility System, Refunding Revenue, Callable 12/1/19 @ 100 (Assured Guaranty), 5.000%, 12/1/24		1,358,698
1,135,000	East Richland County Public Service District, Refunding Revenue, 4.000%, 1/1/22		1,292,243
200,000	Educational Facilities Authority, Wofford College, University & College Improvements Revenue, Series A, 4.000%, 4/1/15		200,000
600,000	Educational Facilities Authority, Wofford College, University & College Improvements Revenue, Series B, 2.000%, 4/1/27(a)		600,474
1,000,000	Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/28		1,179,170
1,895,000	Florence County, SC, Public Improvements, G.O., (State Aid Withholding), 4.000%, 6/1/20		2,137,371
1,000,000	Greenville County, SC, School District Building Refunding Revenue, 5.000%, 12/1/22		1,207,550
1,075,000	Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, 5.000%, 12/1/22		1,154,066

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$    570,000	Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, OID, 4.250%, 12/1/21	$	603,562
1,340,000	Greenville Health System, Hospital System Board, Refunding Revenue, 5.000%, 5/1/21		1,559,747
1,000,000	Greenville Health System, Hospital System Board, Refunding Revenue, Callable 5/1/22 @ 100, 5.000%, 5/1/31		1,128,790
1,000,000	Greenwood County, SC, Self Regional Healthcare Refunding Revenue, Series B, Callable 4/1/22 @ 100, 5.000%, 10/1/24		1,153,380
530,000	Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 5.000%, 10/1/23		603,182
1,175,000	Greenwood, SC, Combined Public Utility Revenue, Series A, 4.000%, 12/1/18		1,285,250
500,000	Kershaw County, SC, Kershaw County School District Project, Refunding Revenue (AGC), 5.000%, 12/1/16		535,700
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		1,763,841
1,000,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/23		1,095,700
760,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/21 @ 100, 5.000%, 11/1/22		901,679
1,000,000	Lexington County, SC, School District No. 1, G.O., Series C (SCSDE), 5.000%, 2/1/21		1,188,960
1,000,000	Lexington One School Facilities Corp., Lexington County School District No. 1 Revenue, 5.000%, 12/1/16		1,075,130
940,000	Lexington, SC, Combined Waterworks & Sewer System Refunding Revenue, Callable 4/1/21 @100, 5.000%, 4/1/22		1,097,271
1,000,000	Lugoff-Elgin Water Authority, Refunding Revenue, Series B, Callable 7/1/26 @ 100, 5.000%, 7/1/30		1,196,060
535,000	Oconee County, SC, Duke Power Co. Project Refunding Revenue, 3.600%, 2/1/17		562,301
810,000	Orangeburg County, SC, School District No. 5, Refunding G.O. (SCSDE), 5.000%, 3/1/21		959,963
970,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series A3, 5.000%, 1/1/16		1,003,678
550,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series A3 (Assured Guaranty), 5.000%, 1/1/18		609,043
1,000,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series B, Callable 1/1/22 @ 100, 4.000%, 1/1/23		1,114,970
330,000	Piedmont Municipal Power Agency, Power System, Prerefunded, Refunding Revenue (NATL-RE), OID, 5.375%, 1/1/25		370,805
1,000,000	Renewable Water Resources Sewage System, Refunding Revenue, 4.000%, 1/1/20		1,115,160
1,000,000	Rock Hill, SC, Combined Utility System, Refunding Revenue, Series A, Callable 1/1/22 @100 (AGM), 5.000%, 1/1/23		1,178,150

Continued

51

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$    1,000,000	Rock Hill, SC, Hospital Fee Pledge, Refunding Revenue, Callable 4/1/23 @100, 5.000%, 4/1/33	$	1,117,930
1,090,000	Rock Hill, SC, Ltd. Obligations, Hospitality Fee Pledge, Refunding Revenue, 5.000%, 4/1/21		1,272,542
1,235,000	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		1,324,352
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		884,689
500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/18		562,855
500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/19		570,895
550,000	South Carolina Jobs-Economic Development Authority, AnMed Health Project, Refunding & Improvement Revenue, Series B (Assured Guaranty), 5.000%, 2/1/19		621,137
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		1,164,430
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		1,727,355
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health Facilities, Refunding Revenue, Series A (AGM), 5.000%, 8/1/19		564,535
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health, Refunding & Improvement Facilities Revenue, OID, 5.000%, 8/1/18		552,465
1,150,000	South Carolina Ports Authority, Port, Airport & Marina Improvements Revenue, 5.000%, 7/1/19		1,312,035
1,030,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/27		1,150,963

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$    1,015,000	South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/32	$	1,126,782
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		1,268,573
600,000	Spartanburg Regional Health Services District, Refunding Revenue, Series A, Callable 4/15/18 @ 100 (Assured Guaranty), 5.250%, 4/15/21		666,834
830,000	Three Rivers Solid Waste Authority, Solid Waste Disposal Facilities, Refunding Revenue, 4.500%, 12/15/16		877,941
500,000	University of South Carolina, Refunding Revenue, Series A, Callable 5/1/20 @ 100, 5.000%, 5/1/28		575,380
	Total Municipal Bonds (Cost $63,837,991)		66,793,095
Shares
MONEY MARKET FUND — 4.3%
3,027,898	Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(b)		3,027,898
	Total Money Market Fund (Cost $3,027,898)		3,027,898
Total Investments — 99.0%   (Cost $66,865,889)			69,820,993
Net Other Assets (Liabilities) — 1.0%			694,943
NET ASSETS — 100.0%		$	70,515,936

(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, 2015. The maturity date reflected is the final maturity date.

(b) Represents the current yield as of report date.

AGC — Assured Guaranty Corp.

AGM — Assured Guaranty Municipal 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.

52

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — 96.1%
	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	$	1,363,012
625,000	Metropolitan Washington Airports Authority, Refunding Revenue, Series B, Callable 10/1/19 @ 100, 5.000%, 10/1/21		721,856
			2,084,868
	Virginia — 94.4%
1,000,000	Albemarle County, VA, Economic Development Authority, Albemarle County Project, Public Improvements Revenue, 5.000%, 6/1/21		1,188,500
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		2,070,551
2,760,000	Albemarle County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/20		3,231,988
1,000,000	Alexandria, VA, Public Improvements G.O., Series A, 5.000%, 6/15/16		1,056,870
1,000,000	Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21		1,206,170
1,000,000	Arlington County, VA, Industrial Development Authority, VA Hospital Center Arlington, Refunding Revenue, 5.000%, 7/1/18		1,116,340
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		1,261,392
1,145,000	Culpeper County, VA, Economic Development Authority, VA Capital Projects, Refunding Revenue, Callable 6/1/24 @ 100, 4.000%, 6/1/26		1,283,339
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		1,634,105
1,875,000	Fairfax County, VA, Economic Development Authority, Goodwin House Inc., Refunding Revenue, Callable 10/1/17 @ 100, 5.000%, 10/1/27		1,977,656
2,500,000	Fairfax County, VA, Economic Development Authority, Laurel Hill Public Facilities Project, Refunding Revenue, Series A, 5.000%, 6/1/22		3,014,000
1,000,000	Fairfax County, VA, Industrial Development Authority, Inova Health System Project, Refunding Revenue, (AGM-CR), OID, 5.250%, 8/15/19		1,115,680
595,000	Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project, Refunding Revenue, Series C, 5.000%, 5/15/18		666,775
2,160,000	Fairfax County, VA, Sewer Improvements Revenue, Callable 7/15/21 @ 100, 5.000%, 7/15/22		2,597,724

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$    1,000,000	Fredericksburg Economic Development Authority, Mary Washington Healthcare Obligation Group, Refunding Revenue, Callable 6/15/24 @ 100, 5.000%, 6/15/26	$	1,129,970
1,000,000	Hampton, VA, Public Improvements, Refunding G.O., Series A, Callable 1/15/19 @100, 5.000%, 1/15/21		1,137,400
1,700,000	Leesburg, VA, Refunding G.O., Callable 1/15/24 @ 100, (State Aid Withholding), 4.000%, 1/15/27		1,916,920
1,000,000	Loudoun County, VA, Economic Development Authority, Public Improvements Revenue, Callable 12/1/24 @ 100, 5.000%, 12/1/27		1,208,140
1,665,000	Loudoun County, VA, Industrial Development Authority, Refunding Revenue, 4.000%, 12/15/22		1,926,755
1,020,000	Loudoun County, VA, Public Improvements G.O., Series B, (State Aid Withholding), 5.000%, 12/1/16		1,097,459
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		1,694,741
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		2,902,898
1,315,000	Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, 5.000%, 2/1/18		1,462,648
1,445,000	Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, Callable 2/1/18 @ 100, 5.000%, 2/1/24		1,583,893
2,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series A, 4.000%, 7/15/20		2,264,440
1,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series B, 5.250%, 7/1/21		1,217,270
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		1,129,660
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		1,168,820
1,000,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/24		1,178,760
1,465,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/36		1,671,975
1,000,000	Norfolk, VA, Water Utility Improvements Revenue, Callable 11/1/18 @ 100, 5.000%, 11/1/23		1,128,330

Continued

53

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$    1,000,000	Pittsylvania County, VA, School Improvements G.O., Series B, 5.000%, 2/1/19	$	1,137,750
1,320,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.200%, 2/1/20		1,509,776
1,775,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.375%, 2/1/21		2,046,220
1,160,000	Poquoson, VA, Refunding G.O., (State Aid Withholding), 5.000%, 2/15/21		1,382,268
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		2,032,061
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		1,590,729
1,440,000	Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23		1,668,226
1,055,000	Portsmouth, VA, Refunding G.O., Series D, Callable 7/15/20 @ 100, 5.000%, 7/15/21		1,236,713
1,400,000	Prince William County, VA, County Facilities, Refunding Certificate of Participation, 3.500%, 10/1/18		1,506,778
1,150,000	Prince William County, VA, County Facilities, Refunding Certificate of Participation, 5.000%, 10/1/21		1,374,399
1,595,000	Prince William County, VA, Industrial Development Authority, Novant Health Obligation Group, Refunding Revenue, Callable 11/1/22 @ 100, 4.000%, 11/1/33		1,643,392
1,520,000	Richmond Metropolitan Authority, Expressway, Refunding Revenue, (NATL), 5.250%, 7/15/16		1,607,902
2,000,000	Richmond, VA, Public Improvements, Refunding G.O., Series A, Callable 3/1/24 @ 100 (State Aid Withholding), 5.000%, 3/1/28		2,406,260
2,195,000	Riverside Regional Jail Authority, Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/27		2,654,194
1,000,000	Riverside Regional Jail Authority, Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/30		1,187,940
1,760,000	Riverside, VA, Regional Jail Authority, Refunding Revenue, 5.000%, 7/1/22		2,110,750
1,415,000	Roanoke, VA, Economic Development Authority, Carillion Health System, Remarketing, Refunding Revenue, Series C, (AGM), 5.000%, 7/1/17		1,545,916
1,100,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/15		1,110,494
885,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/20		991,350
1,000,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, Callable 7/1/20 @ 100, OID, 5.000%, 7/1/23		1,112,110

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$    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	$	1,778,288
1,220,000	Spotsylvania County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/22		1,471,735
1,420,000	Spotsylvania County, VA, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/28		1,633,298
2,425,000	Suffolk, VA, Public Improvements, Refunding G.O., Series A, (NATL-RE), 5.000%, 2/1/17		2,622,468
465,000	Suffolk, VA, Unrefunded, Refunding G.O., Callable 12/1/15 @ 100, 5.000%, 12/1/18		479,847
1,100,000	Virginia Biotechnology Research Partnership Authority, Constructions Laboratories Project, Refunding Revenue, 5.000%, 9/1/19		1,273,756
2,500,000	Virginia College Building Authority, 21st Century College & Equipment, University & College Improvements Revenue, Series A (State Intercept), 5.000%, 2/1/22		3,014,050
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		938,694
1,750,000	Virginia College Building Authority, Advance Refunding Revenue, Series B, Callable 9/1/24 @100 (State Aid Withholding), 4.000%, 9/1/25		1,989,435
1,000,000	Virginia College Building Authority, Educational Refunding Revenue, Series A, (State Intercept), 5.000%, 9/1/19		1,160,300
1,805,000	Virginia College Building Authority, Public Higher Education Financing Program, Refunding Revenue, Series B, (State Intercept), 5.000%, 9/1/20		2,132,084
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		2,246,030
1,500,000	Virginia Port Authority, Port, Airport & Marina Improvements Revenue, Callable 7/1/20 @ 100, 5.000%, 7/1/28		1,732,500
2,000,000	Virginia Public Building Authority, Public Improvements Revenue, Series A, Callable 8/1/21 @ 100, 5.000%, 8/1/26		2,357,060
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		1,100,020
1,150,000	Virginia Resources Authority, State Revolving Fund, Refunding Revenue, 5.500%, 10/1/17		1,286,241
1,835,000	Virginia Small Business Financing Authority, Sentara Healthcare Refunding Revenue, 4.000%, 11/1/16		1,934,053
1,255,000	Western Regional Jail Authority, Correctional Facilities Improvement Revenue, Callable 6/1/17 @ 100, (NATL-RE), 4.750%, 6/1/23		1,355,701

Continued

54

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal      Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$     920,000	Winchester, VA, Economic Development Authority, Valley Health System Obligated Group, Hospital Refunding Revenue, Series A, Callable 1/1/24 @ 100, 5.000%, 1/1/26	$	1,080,752
2,000,000	York County, VA, Economic Development Authority, Electric & Power, Refunding Revenue, Series A, 1.875%, 5/1/33(a)		2,036,140
			114,718,849
	Total Municipal Bonds (Cost $110,822,675)		116,803,717

Shares		Fair Value
MONEY MARKET FUND — 3.1%
3,749,392	Federated Virginia Municipal Money Market Portfolio, Institutional Shares, 0.010%(b)	$	3,749,392
Total Money Market Fund (Cost $3,749,392)			3,749,392
Total Investments — 99.2% (Cost $114,572,067)			120,553,109
Net Other Assets (Liabilities) — 0.8%			1,015,401
NET ASSETS — 100.0%.		$	121,568,510

(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, 2015. The maturity date reflected is the final maturity date.

(b) Represents the current yield as of report 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.

55

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — 97.8%
$    1,060,000	Berkeley County, WV, Building Commission, Judicial Center Project, Refunding Revenue, Callable 9/1/21 @ 100, 4.500%, 9/1/23	$	1,188,058
1,085,000	Berkeley County, WV, Building Commission, Lease Refunding Revenue, Callable 12/1/22 @ 100, 4.000%, 12/1/26		1,180,946
1,500,000	Berkeley County, WV, Public Service Sewer District, Miscellaneous Purposes Revenue, Series C, Callable 10/1/23 @ 100, (BAM), 4.500%, 10/1/32		1,661,775
875,000	Berkeley County, WV, Public Service Sewer District, Sewer Improvements Revenue, Series A, Callable 5/8/15 @ 100, 5.000%, 3/1/22		877,940
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		744,993
1,215,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, 4.000%, 6/1/19		1,333,949
1,005,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series A, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,156,936
1,495,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,721,014
1,100,000	Fairmont, WV, Waterworks Refunding Revenue, Series D, Callable 7/1/19 @100, (AGM), 4.000%, 7/1/24		1,167,474
2,250,000	Greenbrier County, WV, Board of Education, Public School Improvements G.O., (AGM), 5.000%, 5/1/18		2,524,050
1,605,000	Jefferson County, WV, Board of Education Public School, Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/19		1,771,856
1,700,000	Marshall University, WV, Refunding Revenue, 5.000%, 5/1/19		1,938,680
1,390,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/26		1,613,637
1,560,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/27		1,810,988
1,000,000	Mason County, WV, Appalachian Power Co., Industrial Improvements Revenue, Series L, 1.625%, 10/1/22(a)		1,003,380
1,545,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., (West Virginia Board Commission), 5.000%, 5/1/20		1,803,231
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		1,195,530
675,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., Callable 5/1/22 @ 100, (West Virginia Board Commission), 5.000%, 5/1/31		774,941

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
$    965,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., Callable 5/1/22 @ 100, (West Virginia Board Commission), 5.000%, 5/1/33	$	1,102,522
775,000	Monongalia County, WV, Building Commission Justice Center, Public Improvements Revenue, Series A, 4.000%, 2/1/21		861,567
405,000	Monongalia County, WV, Building Commission Justice Center, Public Improvements Revenue, Series A, Callable 2/1/21 @ 100, 4.000%, 2/1/22		445,816
815,000	Monongalia County, WV, Building Commission, Health System Obligated Group Refunding Revenue, Callable 7/1/21 @ 100, OID, 6.250%, 7/1/31		972,059
1,205,000	Monongalia County, WV, Building Commission, Health, Hospital, Nursing Home Improvement Revenue, Series A, Callable 7/1/15 @ 100, 5.250%, 7/1/20		1,216,074
570,000	Ohio County, WV, County Commission, Fort Henry Centre Financing District, Public Improvement, Tax Allocation, Series A, 5.350%, 6/1/17		598,757
860,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., 4.000%, 5/1/21		966,649
295,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/22		328,341
1,210,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/23		1,337,510
1,165,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/24		1,275,430
1,000,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 3.000%, 5/1/19		1,069,870
1,655,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 4.000%, 5/1/21		1,877,564
1,285,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, 5.000%, 5/1/22		1,476,786
1,365,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, Callable 5/1/22 @ 100, 5.000%, 5/1/27		1,527,558
2,005,000	Putnam County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 5/1/19		2,228,056
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		1,107,110
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		1,411,046
500,000	West Virginia Economic Development Authority, Appalachian Power Co. Amos Plant Project, Refunding Revenue, 1.900%, 3/1/40(a)		500,000

Continued

56

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
$    1,215,000	West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Series A, 5.000%, 6/1/19	$	1,393,714
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		3,535,920
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		5,489,555
750,000	West Virginia Economic Development Authority, Department of Environmental Protection Lease, Refunding Revenue, Series B, 4.000%, 11/1/21		836,025
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)		1,000,000
1,710,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, 3.000%, 12/15/18		1,812,343
1,890,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, Callable 12/15/18 @ 100, 3.000%, 12/15/19		2,008,579
1,600,000	West Virginia Higher Education Policy Commission, Higher Education Facilities, Refunding Revenue, Series A, 5.000%, 4/1/20		1,860,000
250,000	West Virginia Higher Education Policy Commission, Higher Educational Facilities, Refunding Revenue, Series B, Callable 5/8/15 @ 100, (NATL), 5.000%, 4/1/16		250,980
440,000	West Virginia Hospital Finance Authority, Charleston Area Medical Center, Inc., Health, Hospital, Nursing Home Improvements Revenue, Series A, OID, 6.500%, 9/1/16		462,255
2,000,000	West Virginia Hospital Finance Authority, United Health System Obligation, Health, Hospital, Nursing Home Improvements Refunding Revenue, Series A, Callable 6/1/23 @ 100, OID, 5.375%, 6/1/38		2,285,640
515,000	West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, 5.000%, 1/1/24		620,997
630,000	West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, Callable 1/1/24 @ 100, 5.000%, 1/1/26		742,764
1,555,000	West Virginia Housing Development Fund, Refunding Revenue, Series A, 2.750%, 11/1/20		1,612,691
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		2,035,918
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		1,809,935

Principal   Amount		Fair Value
MUNICIPAL BONDS — (continued)
$    3,700,000	West Virginia School Building Authority, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100, (NATL), 5.000%, 7/1/20	$	4,050,427
500,000	West Virginia School Building Authority, Lottery Capital Improvements Revenue, Callable 7/1/24 @ 100, Series A, 5.000%, 7/1/27		601,045
1,265,000	West Virginia School Building Authority, Lottery Capital Improvements Revenue, Callable 7/1/24 @ 100, Series A, 5.000%, 7/1/28		1,502,845
1,300,000	West Virginia School Building Authority, School Improvements Revenue, 5.000%, 7/1/18		1,459,185
1,050,000	West Virginia School Building Authority, School Improvements Revenue, Callable 7/1/18 @ 100, OID, 5.000%, 7/1/27		1,164,933
1,840,000	West Virginia School Building Authority, School Improvements Revenue, Callable 7/1/18 @100, 5.250%, 7/1/21		2,069,025
1,890,000	West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A, (AMBAC), 5.375%, 7/1/21		2,156,207
1,320,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL, G.O. of Authority), 5.250%, 5/15/17		1,443,974
2,000,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL, G.O. of Authority), 5.250%, 5/15/19		2,310,020
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		1,184,100
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		2,968,971
500,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/19		579,770
1,500,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/20		1,770,945
1,750,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, Callable 10/1/21 @ 100, 5.000%, 10/1/30		1,999,690
1,530,000	West Virginia University, University Projects, University & College Improvements, Refunding Revenue, Series A, Callable 10/1/22 @ 100, 5.000%, 10/1/35		1,751,835
	Total Municipal Bonds (Cost $95,797,587)		100,542,381

Continued

57

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2015 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 1.5%
1,578,673	Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(b)	$	1,578,673
	Total Money Market Fund (Cost $1,578,673)		1,578,673
Total Investments — 99.3% (Cost $97,376,260)			102,121,054
Net Other Assets (Liabilities) — 0.7%			725,255
NET ASSETS — 100.0%		$	102,846,309

(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, 2015. The maturity date reflected is the final maturity date.

(b) Represents the current yield as of report date.

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Corp.

BAM — Build America Mutual

G.O. — General Obligation

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

RE — Reinsurance

See accompanying Notes to the Financial Statements.

58

Sterling Capital Strategic Allocation Conservative Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
EQUITY FUNDS — 42.5%
338,537	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	3,415,837
92,406	Sterling Capital Equity Income Fund, Institutional Shares(a)		1,735,378
113,950	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		1,146,334
71,745	Sterling Capital Special Opportunities Fund, Institutional Shares(a)(b)		1,735,509
	Total Equity Funds (Cost $7,338,975)		8,033,058
FIXED INCOME FUND — 55.1%
964,935	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		10,421,296
	Total Fixed Income Fund (Cost $9,946,616)		10,421,296
MONEY MARKET FUND — 2.1%
406,439	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		406,439
	Total Money Market Fund (Cost $406,439)		406,439
Total Investments — 99.7% (Cost $17,692,030)			18,860,793
Net Other Assets (Liabilities) — 0.3%			49,834
NET ASSETS — 100.0%		$	18,910,627

(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.

(b) Represents non-income producing security.

(c) Represents the current yield as of report date.

See accompanying Notes to the Financial Statements.

59

Sterling Capital Strategic Allocation Balanced Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
EQUITY FUNDS — 64.6%
1,036,584	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	10,459,138
283,042	Sterling Capital Equity Income Fund, Institutional Shares(a)		5,315,522
390,948	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		3,932,935
219,670	Sterling Capital Special Opportunities Fund, Institutional Shares(a)(b)		5,313,812
	Total Equity Funds (Cost $23,111,529)		25,021,407
FIXED INCOME FUND — 33.3%
1,192,513	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		12,879,138
	Total Fixed Income Fund (Cost $12,456,708)		12,879,138
MONEY MARKET FUND — 2.0%
776,689	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		776,689
	Total Money Market Fund (Cost $776,689)		776,689
Total Investments — 99.9% (Cost $36,344,926)			38,677,234
Net Other Assets (Liabilities) — 0.1%			33,803
NET ASSETS — 100.0%		$	38,711,037

(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.

(b) Represents non-income producing security.

(c) Represents the current yield as of report date.

See accompanying Notes to the Financial Statements.

60

Sterling Capital Strategic Allocation Growth Fund

Schedule of Portfolio Investments

March 31, 2015 (Unaudited)

Shares		Fair Value
EQUITY FUNDS — 81.1%
923,664	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	9,319,767
252,210	Sterling Capital Equity Income Fund, Institutional Shares(a)		4,736,509
333,242	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		3,352,412
195,766	Sterling Capital Special Opportunities Fund, Institutional Shares(a)(b)		4,735,575
	Total Equity Funds (Cost $20,286,482)		22,144,263
FIXED INCOME FUND — 17.3%
436,345	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		4,712,530
	Total Fixed Income Fund (Cost $4,674,600)		4,712,530
MONEY MARKET FUND — 1.5%
412,723	Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c)		412,723
	Total Money Market Fund (Cost $412,723)		412,723
Total Investments — 99.9% (Cost $25,373,805)			27,269,516
Net Other Assets (Liabilities) — 0.1%			16,517
NET ASSETS — 100.0%		$	27,286,033

(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.

(b) Represents non-income producing security.

(c) Represents the current yield as of report date.

See accompanying Notes to the Financial Statements.

61

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Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2015 (Unaudited)

	Sterling Capital Behavioral Large Cap Value Equity Fund				Sterling Capital Mid Value Fund
Assets:
Investments at fair value (a)		$	286,598,692			$	771,136,391
Cash			—				—
Cash held at broker for securities sold short			—				—
Interest and dividends receivable			329,185				1,297,704
Receivable for investments sold			27,146,823				—
Receivable for capital shares issued			418,345				1,617,114
Deferred offering costs			—				—
Prepaid and other expenses			37,691				44,487
Total Assets			314,530,736				774,095,696
Liabilities:
Call options written (premiums received $ —, $ —, $ —, $695,460, $646,827, $22,521, $ — and $ —, respectively)			—				—
Cash overdraft			—				—
Securities sold short, at value (proceeds $ —, $ —, $ —, $ —, $ —, $29,153,973, $ — and $ —, respectively)			—				—
Distributions payable			—				—
Payable for investments purchased			26,268,820				—
Payable for capital shares redeemed			42,196				755,367
Payable for dividends on short sales			—				—
Payable to broker for service fee on short sales			—				—
Accrued expenses and other payables:
Investment advisory fees			147,238				459,385
Accounting out-of-pocket fees			1,809				3,515
Administration fees			22,628				60,613
Audit fees			11,810				31,754
Compliance service fees			480				1,324
Distribution (12b-1) fees			9,012				15,079
Trustee fees			77				—
Transfer agent fees			10,032				38,612
Other fees and liabilities			4,565				9,073
Total Liabilities			26,518,667				1,374,722
Net Assets		$	288,012,069			$	772,720,974
Net Assets Consist of:
Capital		$	276,151,641			$	579,426,199
Undistributed (distributions in excess of) net investment income (loss)			353,838				(1,754,315	)
Accumulated realized gain (loss)			(26,662,996	)			29,504,141
Net unrealized appreciation (depreciation)			38,169,586				165,544,949
Net Assets		$	288,012,069			$	772,720,974
Net Assets
Class A Shares		$	35,542,861			$	44,687,994
Class B Shares			797,603				1,136,267
Class C Shares			922,688				5,435,748
Institutional Shares			250,748,917				721,460,758
Class R Shares			—				207
Total		$	288,012,069			$	772,720,974
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			1,967,344				2,224,963
Class B Shares			44,925				60,462
Class C Shares			52,479				290,671
Institutional Shares			13,803,555				35,637,221
Class R Shares			—				11
Total			15,868,303				38,213,328
Net Asset Value
Class A Shares - redemption price per share		$	18.07			$	20.08
Class B Shares - offering price per share*		$	17.75			$	18.79
Class C Shares - offering price per share*		$	17.58			$	18.70
Institutional Shares		$	18.17			$	20.24
Class R Shares		$	—			$	19.68	**
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		$	19.17			$	21.31
(a) Investments at cost		$	248,429,106			$	605,591,442

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

** The Sterling Capital Mid Value Fund and Sterling Capital Behavioral Small Cap Value Equity Fund net asset value for Class R Shares is calculated using unrounded net assets of $206.86 and $190.89 divided by the unrounded shares of 10.51 and 12.415, respectively.

See accompanying Notes to the Financial Statements.

63

Sterling Capital Behavioral Small Cap Value Equity Fund				Sterling Capital Special Opportunities Fund				Sterling Capital Equity Income Fund				Sterling Capital Long/Short Equity Fund				Sterling Capital Behavioral International Equity Fund				Sterling Capital Ultra Short Bond Fund
	$	136,111,929			$	899,691,198			$	1,786,514,946			$	104,483,327			$	23,401,722			$	43,564,299
		—				—				—				7,008				—				—
		—				—				—				33,271,046				—				—
		342,679				1,366,805				4,984,618				71,985				123,993				346,086
		—				11,311,660				12,472,450				1,589,272				2,396,121				—
		238,596				1,938,077				2,340,670				440,087				4				158
		—				—				—				—				9,348				—
		33,848				79,072				64,994				36,093				—				16,849
		136,727,052				914,386,812				1,806,377,678				139,898,818				25,931,188				43,927,392
		—				522,100				630,625				36,888				—				—
		—				—				—				—				472,642				—
		—				—				—				29,746,134				—				—
		—				—				—				—				—				2,557
		—				—				2,531,954				4,710,915				1,908,526				—
		32				3,893,047				9,032,000				320,321				—				33,890
		—				—				—				28,921				—				—
		—				—				—				1,066				—				—
		85,467				608,947				1,099,437				132,067				13,354				7,319
		2,312				5,115				9,869				1,844				5,901				3,749
		10,525				75,101				144,705				8,123				1,885				3,391
		5,738				43,842				82,921				5,311				799				2,403
		252				1,862				3,791				151				35				88
		3,463				176,230				394,180				787				33				1,381
		14				—				—				—				186				—
		6,325				64,644				193,296				2,316				873				614
		—				—				28,932				—				2,314				824
		114,128				5,390,888				14,151,710				34,994,844				2,406,548				56,216
	$	136,612,924			$	908,995,924			$	1,792,225,968			$	104,903,974			$	23,524,640			$	43,871,176
								��
	$	117,503,960			$	556,969,122			$	1,375,989,427			$	108,839,840			$	23,329,382			$	44,346,626
		519,819				(633,924	)			1,192,512				(802,044	)			144,201				(87,384	)
		(775,527	)			76,537,742				25,794,488				(635,101	)			(173,247	)			(87,763	)
		19,364,672				276,122,984				389,249,541				(2,498,721	)			224,304				(300,303	)
	$	136,612,924			$	908,995,924			$	1,792,225,968			$	104,903,974			$	23,524,640			$	43,871,176
	$	14,026,229			$	259,655,831			$	550,610,508			$	2,173,622			$	174,310			$	6,744,420
		285,582				6,322,913				5,711,828				—				—				—
		354,825				136,697,769				306,438,348				359,059				6,354				—
		121,946,097				506,276,660				927,531,695				102,371,293				23,343,976				37,126,756
		191				42,751				1,933,589				—				—				—
	$	136,612,924			$	908,995,924			$	1,792,225,968			$	104,903,974			$	23,524,640			$	43,871,176
		909,598				11,101,605				29,385,216				216,906				17,297				680,273
		19,115				304,329				305,386				—				—				—
		23,776				6,573,724				16,487,703				36,164				631				—
		7,847,080				20,932,228				49,385,397				10,181,262				2,314,794				3,746,949
		12				1,801				103,782				—				—				—
		8,799,581				38,913,687				95,667,484				10,434,332				2,332,722				4,427,222
	$	15.42			$	23.39			$	18.74			$	10.02			$	10.08			$	9.91
	$	14.94			$	20.78			$	18.70			$	—			$	—			$	—
	$	14.92			$	20.79			$	18.59			$	9.93			$	10.07			$	—
	$	15.54			$	24.19			$	18.78			$	10.05			$	10.08			$	9.91
	$	15.38	**		$	23.74			$	18.63			$	—			$	—			$	—
		5.75	%			5.75	%			5.75	%			5.75	%			5.75	%			0.50	%
	$	16.36			$	24.82			$	19.88			$	10.63			$	10.69			$	9.96
	$	116,747,257			$	623,741,574			$	1,397,281,607			$	106,375,500			$	23,166,349			$	43,864,602

64

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2015 (Unaudited)

	Sterling Capital Short Duration Bond Fund				Sterling Capital Intermediate U.S. Government Fund
Assets:
Investments at fair value (a)		$	91,207,570			$	34,075,600
Interest and dividends receivable			659,103				181,609
Receivable for investments sold			—				—
Receivable for capital shares issued			394,324				91,992
Prepaid expenses			28,989				14,846
Total Assets			92,289,986				34,364,047
Liabilities:
Distributions payable			160,025				28,847
Payable for investments purchased			—				—
Payable for capital shares redeemed			368,005				11,411
Accrued expenses and other payables:
Investment advisory fees			21,810				10,174
Administration fees			7,172				2,683
Compliance service fees			163				66
Distribution (12b-1) fees			3,842				3,281
Trustee fees			10				26
Other fees			12,595				3,440
Total Liabilities			573,622				59,928
Net Assets		$	91,716,364			$	34,304,119
Net Assets Consist of:
Capital		$	100,867,750			$	40,403,480
Undistributed (distributions in excess of) net investment income			(788,160	)			75,993
Accumulated realized gain (loss)			(7,832,665	)			(7,230,990	)
Net unrealized appreciation (depreciation)			(530,561	)			1,055,636
Net Assets		$	91,716,364			$	34,304,119
Net Assets
Class A Shares		$	9,431,982			$	11,169,873
Class B Shares			—				223,938
Class C Shares			2,284,678				857,690
Institutional Shares			79,999,704				22,052,618
Class R Shares			—				—
Total		$	91,716,364			$	34,304,119
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			1,049,645				1,084,802
Class B Shares			—				21,825
Class C Shares			254,363				83,422
Institutional Shares			8,903,202				2,139,249
Class R Shares			—				—
Total			10,207,210				3,329,298
Net Asset Value
Class A Shares - redemption price per share		$	8.99			$	10.30
Class B Shares - offering price per share*		$	—			$	10.26
Class C Shares - offering price per share*		$	8.98			$	10.28
Institutional Shares		$	8.99			$	10.31
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		$	9.17			$	10.51
(a) Investments at cost		$	91,738,131			$	33,019,964

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

** The Sterling Capital Total Return Bond Fund and Sterling Capital Kentucky Tax-Free Intermediate Fund net asset value for Class R Shares and net asset value for Class C Shares is calculated using unrounded net assets of $5,811.60 and $19,650.87 divided by the unrounded shares of 540.792 and 1,839.189, respectively.

See accompanying Notes to the Financial Statements.

65

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
	$	691,714,770			$	58,336,500			$	42,067,777			$	14,816,528			$	36,758,991
		4,736,764				750,581				126,868				161,879				393,335
		65,316				—				—				—				—
		782,069				331,927				566,339				191,053				34,815
		40,674				12,532				11,164				9,615				9,976
		697,339,593				59,431,540				42,772,148				15,179,075				37,197,117
		665,713				124				2,878				20,760				38,377
		567,665				—				443,467				—				—
		715,233				184,890				58,241				102,875				54,184
		157,401				17,413				10,723				4,426				11,026
		53,755				4,577				3,194				1,164				2,911
		761				68				67				28				69
		16,933				64				51				999				2,040
		1,283				8				35				—				—
		58,306				5,495				5,578				1,546				4,475
		2,237,050				212,639				524,234				131,798				113,082
	$	695,102,543			$	59,218,901			$	42,247,914			$	15,047,277			$	37,084,035
	$	687,261,395			$	57,918,019			$	43,083,558			$	13,983,129			$	35,302,432
		(1,567,358	)			(29,684	)			(70,643	)			3,087				4,893
		(5,793,890	)			71,344				(1,662,244	)			93,379				203,887
		15,202,396				1,259,222				897,243				967,682				1,572,823
	$	695,102,543			$	59,218,901			$	42,247,914			$	15,047,277			$	37,084,035
	$	49,830,821			$	278,037			$	99,895			$	4,670,039			$	6,675,503
		1,316,245				—				—				—				—
		6,513,376				8,905				38,916				19,651				714,193
		637,436,289				58,931,959				42,109,103				10,357,587				29,694,339
		5,812				—				—				—				—
	$	695,102,543			$	59,218,901			$	42,247,914			$	15,047,277			$	37,084,035
		4,617,711				26,891				9,929				437,215				594,653
		121,851				—				—				—				—
		602,654				862				3,873				1,839				63,604
		59,036,599				5,701,566				4,183,892				971,124				2,641,019
		541				—				—				—				—
		64,379,356				5,729,319				4,197,694				1,410,178				3,299,276
	$	10.79			$	10.34			$	10.06			$	10.68			$	11.23
	$	10.80			$	—			$	—			$	—			$	—
	$	10.81			$	10.33			$	10.05			$	10.68	**		$	11.23
	$	10.80			$	10.34			$	10.06			$	10.67			$	11.24
	$	10.75	**		$	—			$	—			$	—			$	—
		5.75	%			2.00	%			2.00	%			2.00	%			2.00	%
	$	11.45			$	10.55			$	10.27			$	10.90			$	11.46
	$	676,512,374			$	57,077,278			$	41,170,534			$	13,848,846			$	35,186,168

66

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2015 (Unaudited)

	Sterling Capital North Carolina Intermediate Tax-Free Fund				Sterling Capital South Carolina Intermediate Tax-Free Fund
Assets:
Investments at fair value - unaffiliated (a)		$	199,704,616			$	69,820,993
Investments at fair value - affiliated (b)			—				—
Interest and dividends receivable - unaffiliated			2,763,361				860,763
Dividends receivable - affiliated			—				—
Receivable for capital shares issued			619,336				4,790
Prepaid and other expenses			10,629				9,790
Total Assets			203,097,942				70,696,336
Liabilities:
Distributions payable			259,747				79,516
Payable for investments purchased			—				—
Payable for capital shares redeemed			330,368				60,990
Accrued expenses and other payables:
Investment advisory fees			59,897				20,739
Accounting out-of-pocket fees			4,544				2,593
Administration fees			15,811				5,475
Audit fees			8,196				2,767
Compliance service fees			363				122
Distribution (12b-1) fees			12,917				5,042
Trustee fees			38				14
Transfer agent fees			8,363				2,893
Other fees			3,401				249
Total Liabilities			703,645				180,400
Net Assets		$	202,394,297			$	70,515,936
Net Assets Consist of:
Capital		$	190,613,136			$	67,352,301
Undistributed (distributions in excess of) net investment income			82,498				26,767
Accumulated realized gain (loss)			747,612				181,764
Net unrealized appreciation			10,951,051				2,955,104
Net Assets		$	202,394,297			$	70,515,936
Net Assets
Class A Shares		$	46,953,120			$	17,360,327
Class B Shares			—				—
Class C Shares			3,459,240				1,619,881
Institutional Shares			151,981,937				51,535,728
Total		$	202,394,297			$	70,515,936
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			4,260,460				1,552,677
Class B Shares			—				—
Class C Shares			314,113				144,894
Institutional Shares			13,791,355				4,640,563
Total			18,365,928				6,338,134
Net Asset Value
Class A Shares - redemption price per share		$	11.02			$	11.18
Class B Shares - offering price per share*		$	—			$	—
Class C Shares - offering price per share*		$	11.01			$	11.18
Institutional Shares		$	11.02			$	11.11
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		$	11.25			$	11.41
Investments at cost:
(a) Investments at cost - unaffiliated		$	188,753,565			$	66,865,889
(b) Investments at cost - affiliated		$	—			$	—

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

See accompanying Notes to the Financial Statements.

67

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
	$	120,553,109			$	102,121,054			$	406,439			$	776,689			$	412,723
		—				—				18,454,354				37,900,545				26,856,793
		1,272,041				1,425,134				—				—				—
		—				—				29,106				35,469				12,921
		14,995				85,298				31,256				6,295				35,029
		11,968				11,602				11,837				9,626				11,992
		121,852,113				103,643,088				18,932,992				38,728,624				27,329,458
		143,022				124,917				14,959				2,345				426
		—				500,000				—				—				—
		70,510				112,045				1,092				523				32,958
		36,095				30,632				—				—				—
		3,133				2,704				88				1,103				129
		9,499				8,051				—				—				—
		4,931				4,349				789				1,615				1,135
		224				192				35				72				52
		9,574				8,054				4,206				9,722				6,982
		20				44				61				123				84
		5,258				4,393				1,135				2,084				1,659
		1,337				1,398				—				—				—
		283,603				796,779				22,365				17,587				43,425
	$	121,568,510			$	102,846,309			$	18,910,627			$	38,711,037			$	27,286,033
	$	115,229,043			$	97,807,418			$	23,407,900			$	41,767,237			$	33,090,180
		62,654				(8,300	)			(25,766	)			(80,944	)			(71,771	)
		295,771				302,397				(5,640,270	)			(5,307,564	)			(7,628,087	)
		5,981,042				4,744,794				1,168,763				2,332,308				1,895,711
	$	121,568,510			$	102,846,309			$	18,910,627			$	38,711,037			$	27,286,033
	$	39,681,773			$	36,460,281			$	15,478,214			$	36,226,076			$	24,443,554
		—				—				758,842				1,542,116				1,466,404
		1,342,761				333,055				334,304				744,277				533,137
		80,543,976				66,052,973				2,339,267				198,568				842,938
	$	121,568,510			$	102,846,309			$	18,910,627			$	38,711,037			$	27,286,033
		3,295,417				3,581,708				1,431,770				3,321,314				2,294,813
		—				—				70,119				144,237				141,173
		111,532				32,712				31,144				69,490				51,563
		6,690,474				6,481,557				214,065				18,078				78,952
		10,097,423				10,095,977				1,747,098				3,553,119				2,566,501
	$	12.04			$	10.18			$	10.81			$	10.91			$	10.65
	$	—			$	—			$	10.82			$	10.69			$	10.39
	$	12.04			$	10.18			$	10.73			$	10.71			$	10.34
	$	12.04			$	10.19			$	10.93			$	10.98			$	10.68
		2.00	%			2.00	%			5.75	%			5.75	%			5.75	%
	$	12.29			$	10.39			$	11.47			$	11.57			$	11.30
	$	114,572,067			$	97,376,260			$	406,439			$	776,689			$	412,723
	$	—			$	—			$	17,285,591			$	35,568,237			$	24,961,082

68

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2015 (Unaudited)

	Sterling Capital Behavioral Large Cap Value Equity Fund				Sterling Capital Mid Value Fund
Investment Income:
Interest income		$	—			$	—
Dividend income			3,415,492				5,590,901
Foreign tax withholding			—				—
Total investment income			3,415,492				5,590,901
Expenses:
Investment advisory fees (See Note 5)			981,724				2,647,222
Administration fees (See Note 5)			128,201				345,763
Distribution fees - Class A Shares			44,135				53,559
Distribution fees - Class B Shares			4,665				6,253
Distribution fees - Class C Shares			3,319				25,138
Distribution fees - Class R Shares			—				—
Compliance service fees (See Note 5)			1,227				3,419
Trustee fees			14,661				39,891
Accounting and out-of-pocket fees			5,188				7,797
Audit fees			12,074				32,485
Custodian fees			6,838				18,592
Fund accounting fees (See Note 5)			10,519				28,363
Interest expense (See Note 7)			—				—
Legal fees			11,947				32,464
Offering costs			—				—
Printing fees			14,269				38,754
Registration fees			19,813				29,954
Transfer agent fees (See Note 5)			50,809				262,950
Other fees			7,479				19,271
Total expenses excluding dividend expense and service fee on securities sold short			1,316,868				3,591,875
Dividend expense			—				—
Service fee on securities sold short			—				—
Total expenses before waivers			1,316,868				3,591,875
Less expenses waived by the Investment Advisor (See Note 5)			(140,246	)			—
Net expenses			1,176,622				3,591,875
Net investment income (loss)			2,238,870				1,999,026
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments			14,182,679				48,891,338
Written options			—				—
Foreign currency transactions			—				—
Short sales			—				—
Change in unrealized appreciation/depreciation on:
Investments			(1,059,002	)			29,249,460
Written options			—				—
Foreign currency transactions			—				—
Short sales			—				—
Total realized and unrealized gain (loss)			13,123,677				78,140,798
Change in net assets from operations		$	15,362,547			$	80,139,824

* Commencement of operations was November 28, 2014.

See accompanying Notes to the Financial Statements.

69

Sterling Capital Behavioral Small Cap Value Equity Fund			Sterling Capital Special Opportunities Fund				Sterling Capital Equity Income Fund				Sterling Capital Long/Short Equity Fund				Sterling Capital Behavioral International Equity Fund*				Sterling Capital Ultra Short Bond Fund
	$	—		$	—			$	—			$	150,029			$	—			$	337,567
		1,763,224			5,436,640				28,333,179				539,099				312,973				54
		—			(68,362	)			(290,736	)			(12,930	)			(22,009	)			—
		1,763,224			5,368,278				28,042,443				676,198				290,964				337,621
		509,392			3,833,481				6,802,978				755,978				64,346				53,238
		62,043			468,481				888,311				46,129				7,347				24,322
		14,418			411,533				785,900				3,153				75				12,651
		1,618			35,405				33,588				—				—				—
		1,579			630,616				1,561,527				1,848				13				—
		—			95				4,536				—				—				—
		612			4,777				9,254				482				62				250
		7,168			55,192				106,298				5,120				741				3,009
		6,873			9,535				16,570				6,898				7,686				12,801
		5,875			44,645				85,275				3,855				799				2,345
		3,411			25,811				49,453				2,552				4,557				1,459
		5,094			38,430				72,925				22,717				603				1,996
		312			—				215				2,012				—				—
		5,824			45,219				85,299				4,488				625				2,376
		—			—				—				1,780				498				—
		7,012			53,420				101,827				6,490				949				2,807
		20,938			29,079				50,968				7,895				2,180				10,262
		31,279			289,898				979,253				30,476				2,760				15,272
		4,471			26,585				51,383				2,931				817				1,838
		687,919			6,002,202				11,685,560				904,804				94,058				144,626
		—			—				—				328,257				—				—
		—			—				—				245,181				—				—
		687,919			6,002,202				11,685,560				1,478,242				94,058				144,626
		—			—				—				—				(12,065	)			(96	)
		687,919			6,002,202				11,685,560				1,478,242				81,993				144,530
		1,075,305			(633,924	)			16,356,883				(802,044	)			208,971				193,091
		2,973,517			81,792,316				27,548,927				2,812,716				(115,883	)			(13,314	)
		—			900,801				1,141,631				(100,695	)			—				—
		—			—				—				(2,064	)			(57,364	)			—
		—			—				—				(2,558,481	)			—				—
		10,813,358			(24,733,107	)			5,481,404				(4,241,591	)			235,373				(85,112	)
		—			(293,132	)			(510,561	)			(14,367	)			—				—
		—			—				—				7				(11,069	)			—
		—			—				—				(1,084,949	)			—				—
		13,786,875			57,666,878				33,661,401				(5,189,424	)			51,057				(98,426	)
	$	14,862,180		$	57,032,954			$	50,018,284			$	(5,991,468	)		$	260,028			$	94,665

70

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2015 (Unaudited)

	Sterling Capital Short Duration Bond Fund				Sterling Capital Intermediate U.S. Government Fund
Investment Income:
Interest income		$	965,461			$	371,183
Dividend income			1,916				17
Total investment income			967,377				371,200
Expenses:
Investment advisory fees (See Note 5)			137,956				72,153
Administration fees (See Note 5)			42,020				15,331
Distribution fees - Class A Shares			12,742				12,322
Distribution fees - Class B Shares			—				1,237
Distribution fees - Class C Shares			10,321				4,239
Distribution fees - Class R Shares			—				—
Compliance service fees (See Note 5)			419				150
Trustee fees			4,825				1,769
Accounting and out-of-pocket fees			15,601				3,323
Audit fees			3,957				1,465
Custodian fees			2,314				882
Fund accounting fees (See Note 5)			3,449				1,258
Legal fees			3,957				1,379
Printing fees			4,703				1,746
Registration fees			9,012				6,615
Transfer agent fees (See Note 5)			18,044				7,949
Other fees			3,067				1,922
Total expenses before waivers			272,387				133,740
Less expenses waived by the Investment Advisor (See Note 5)			(9,197	)			(4,450	)
Net expenses			263,190				129,290
Net investment income			704,187				241,910
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from investments			(208,049	)			195,229
Change in unrealized appreciation/depreciation on investments			105,766				233,229
Total realized and unrealized gain (loss)			(102,283	)			428,458
Change in net assets from operations		$	601,904			$	670,368

See accompanying Notes to the Financial Statements.

71

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
	$10,377,214			$	1,034,468		$	595,353			$	250,534			$	512,296
	215,536				27,691			—				23				59
	10,592,750				1,062,159			595,353				250,557				512,355
	1,180,044				99,053			66,940				33,449				84,004
	291,467				25,850			17,488				6,792				17,069
	55,107				343			114				5,756				8,512
	7,031				—			—				—				—
	30,032				44			192				98				3,555
	14				—			—				—				—
	2,446				240			167				68				170
	30,384				2,834			1,982				795				1,966
	23,816				8,152			8,842				3,297				4,957
	26,541				2,437			1,648				649				1,625
	14,353				1,388			1,074				439				985
	23,921				2,123			1,435				557				1,400
	25,703				2,325			1,591				632				1,578
	32,097				2,860			1,963				776				1,912
	14,202				7,319			6,948				2,745				3,953
	113,781				13,914			6,519				2,928				7,686
	15,084				2,199			1,750				1,132				1,710
	1,886,023				171,081			118,653				60,113				141,082
	(318,931	)			—			(7,651	)			(2,406	)			(6,029	)
	1,567,092				171,081			111,002				57,707				135,053
	9,025,658				891,078			484,351				192,850				377,302
	259,976				71,970			31,790				128,889				193,623
	8,680,931				427,523			630,862				(127,485	)			(36,760	)
	8,940,907				499,493			662,652				1,404				156,863
	$17,966,565			$	1,390,571		$	1,147,003			$	194,254			$	534,165

72

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2015 (Unaudited)

	Sterling Capital North Carolina Intermediate Tax-Free Fund				Sterling Capital South Carolina Intermediate Tax-Free Fund
Investment Income:
Interest income		$	3,083,372			$	975,404
Dividend income - unaffiliated			392				93
Dividend income - affiliated			—				—
Total investment income			3,083,764				975,497
Expenses:
Investment advisory fees (See Note 5)			455,285				154,186
Administration fees (See Note 5)			92,500				31,330
Distribution fees - Class A Shares			59,800				21,665
Distribution fees - Class B Shares			—				—
Distribution fees - Class C Shares			15,845				8,184
Compliance service fees (See Note 5)			912				307
Trustee fees			10,608				3,572
Accounting and out-of-pocket fees			11,283				6,664
Audit fees			8,788				2,963
Custodian fees			4,947				1,710
Fund accounting fees (See Note 5)			7,589				2,569
Interest expense (See Note 7)			—				—
Legal fees			8,581				2,904
Printing fees			10,368				3,509
Registration fees			3,152				3,680
Transfer agent fees (See Note 5)			39,584				13,454
Other fees			5,824				2,446
Total expenses before waivers			735,066				259,143
Less expenses waived by the Investment Advisor (See Note 5)			(32,663	)			(11,235	)
Net expenses			702,403				247,908
Net investment income			2,381,361				727,589
Realized and Unrealized Gain:
Net realized gain from:
Investment transactions - unaffiliated			731,215				207,067
Investment transactions - affiliated			—				—
Distributions from affiliated funds			—				—
Change in unrealized appreciation/depreciation on investments			253,724				141,771
Total realized and unrealized gain			984,939				348,838
Change in net assets from operations		$	3,366,300			$	1,076,427

See accompanying Notes to the Financial Statements.

73

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
	$1,765,996			$	1,559,134			$	—			$	—			$	—
	69				129				15				31				20
	—				—				212,592				324,745				173,443
	1,766,065				1,559,263				212,607				324,776				173,463
	272,603				235,167				23,397				47,755				33,664
	55,344				47,745				—				—				—
	50,421				44,584				19,111				44,315				29,870
	—				—				3,953				8,830				8,357
	6,890				2,069				1,563				3,787				2,565
	552				476				85				172				121
	6,384				5,546				982				2,005				1,412
	8,052				7,485				1,327				2,390				1,389
	5,274				4,557				812				1,657				1,167
	2,998				2,607				532				1,006				732
	4,543				3,919				702				1,433				1,010
	2				—				—				—				—
	5,158				4,494				801				1,641				1,148
	6,234				5,365				973				1,976				1,398
	4,563				4,955				5,259				5,977				5,667
	23,262				19,396				4,279				7,936				5,459
	3,788				3,381				1,462				1,928				1,656
	456,068				391,746				65,238				132,808				95,615
	(19,692	)			(16,663	)			(23,397	)			(47,755	)			(33,665	)
	436,376				375,083				41,841				85,053				61,950
	1,329,689				1,184,180				170,766				239,723				111,513
	337,291				224,060				—				3,534				544
	—				—				776,946				2,323,824				1,937,760
	—				—				140,613				434,091				382,078
	150,551				264,369				(505,172	)			(1,759,014	)			(1,561,034	)
	487,842				488,429				412,387				1,002,435				759,348
	$1,817,531			$	1,672,609			$	583,153			$	1,242,158			$	870,861

74

Sterling Capital Funds

Statements of Changes in Net Assets

	Sterling Capital Behavioral Large Cap Value Equity Fund
	For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014
From Investment Activities:
Operations:
Net investment income (loss)		$	2,238,870			$	3,328,571
Net realized gain			14,182,679				24,509,455
Change in unrealized appreciation/depreciation			(1,059,002	)			23,928,652
Change in net assets from operations.			15,362,547				51,766,678
Distributions to Class A Shareholders From:
Net investment income			(248,040	)			(327,487	)
Net realized gains			—				—
Distributions to Class B Shareholders From:
Net investment income			(2,796	)			(2,885	)
Net realized gains			—				—
Distributions to Class C Shareholders From:
Net investment income			(3,003	)			(1,518	)
Net realized gains			—				—
Distributions to Institutional Class Shareholders From:
Net investment income			(1,999,300	)			(2,762,362	)
Net realized gains			—				—
Distributions to Class R Shareholders From:
Net investment income			—				—
Net realized gains			—				—
Change in net assets from shareholder distributions			(2,253,139	)			(3,094,252	)
Capital Transactions:
Change in net assets from capital transactions			4,175,039				(3,008,704	)
Change in net assets			17,284,447				45,663,722
Net Assets:
Beginning of period			270,727,622				225,063,900
End of period		$	288,012,069			$	270,727,622
Undistributed (distributions in excess of) net investment income (loss)		$	353,838			$	368,107

See accompanying Notes to the Financial Statements.

75

Sterling Capital Mid Value Fund								Sterling Capital Behavioral Small Cap Value Equity Fund									Sterling Capital Special Opportunities Fund
For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014					For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014					For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014
	$	1,999,026			$	3,593,739				$	1,075,305			$	1,281,663				$	(633,924	)		$	(618,509	)
		48,891,338				43,524,374					2,973,517				5,016,811					82,693,117				55,583,286
		29,249,460				14,394,606					10,813,358				2,429,437					(25,026,239	)			125,772,041
		80,139,824				61,512,719					14,862,180				8,727,911					57,032,954				180,736,818
		(247,243	)			(140,745	)				(63,993	)			(55,055	)				—				(207,260	)
		(2,510,139	)			(2,605,938	)				(294,990	)			(1,093,905	)				(19,330,945	)			(29,265,628	)
		—				—					—				(1,606	)				—				—
		(79,254	)			(123,396	)				(9,790	)			(49,225	)				(411,768	)			(960,978	)
		(4,312	)			(2,748	)				—				(1,190	)				—				—
		(313,445	)			(141,366	)				(9,875	)			(30,133	)				(7,118,548	)			(11,071,485	)
		(5,881,265	)			(2,646,984	)				(1,094,800	)			(753,496	)				—				(969,508	)
		(41,702,232	)			(36,008,422	)				(3,571,652	)			(13,333,662	)				(26,427,999	)			(46,533,186	)
		(1	)			(1	)				(1	)			(1	)				—				—
		(12	)			(11	)				(5	)			(20	)				(2,187	)			(47,139	)
		(50,737,903	)			(41,669,611	)				(5,045,106	)			(15,318,293	)				(53,291,447	)			(89,055,184	)
		(522,595	)			135,969,476					(4,532,280	)			26,465,817					(162,095,898	)			150,124,321
		28,879,326				155,812,584					5,284,794				19,875,435					(158,354,391	)			241,805,955
		743,841,648				588,029,064					131,328,130				111,452,695					1,067,350,315				825,544,360
	$	772,720,974			$	743,841,648				$	136,612,924			$	131,328,130				$	908,995,924			$	1,067,350,315
	$	(1,754,315	)		$	2,379,480				$	519,819			$	603,308				$	(633,924	)		$	—

76

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
From Investment Activities:
Operations:
Net investment income (loss)	$	16,356,883		$	36,515,450
Net realized gain (loss)		28,690,558			42,440,987
Change in unrealized appreciation/depreciation		4,970,843			104,810,881
Change in net assets from operations		50,018,284			183,767,318
Distributions to Class A Shareholders From:
Net investment income		(5,423,097	)		(11,973,021	)
Net realized gains		(17,395,887	)		(24,139,542	)
Distributions to Class B Shareholders From:
Net investment income		(32,662	)		(74,887	)
Net realized gains		(186,425	)		(332,882	)
Distributions to Class C Shareholders From:
Net investment income		(1,699,311	)		(2,855,498	)
Net realized gains		(8,563,173	)		(10,047,039	)
Distributions to Institutional Class Shareholders From:
Net investment income		(9,944,407	)		(18,697,858	)
Net realized gains		(27,425,380	)		(32,827,700	)
Distributions to Class R Shareholders From:
Net investment income		(14,570	)		(38,520	)
Net realized gains		(48,537	)		(102,702	)
Change in net assets from shareholder distributions		(70,733,449	)		(101,089,649	)
Capital Transactions:
Change in net assets from capital transactions		(264,803,988	)		74,603,686
Change in net assets		(285,519,153	)		157,281,355
Net Assets:
Beginning of period		2,077,745,121			1,920,463,766
End of period	$	1,792,225,968		$	2,077,745,121
Undistributed (distributions in excess of) net investment income (loss)	$	1,192,512		$	1,949,676

* Commencement of operations.

See accompanying Notes to the Financial Statements.

77

Sterling Capital Long/Short Equity Fund						Sterling Capital Behavioral International Equity Fund			Sterling Capital Ultra Short Bond Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Period December 13, 2013* to September 30, 2014			For the Period November 28, 2014* to March 31, 2015 (Unaudited)			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	(802,044	)	$	(786,946	)	$	208,971		$	193,091		$	378,982
	151,476			3,093,504			(173,247	)		(13,314	)		(18,936	)
	(5,340,900	)		2,842,179			224,304			(85,112	)		(119,278	)
	(5,991,468	)		5,148,737			260,028			94,665			240,768
	—			—			(232	)		(41,614	)		(88,110	)
	(72,426	)		—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			(2	)		—			—
	(11,557	)		—			—			—			—
	—			—			(64,536	)		(233,654	)		(349,455	)
	(3,014,603	)		—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	(3,098,586	)		—			(64,770	)		(275,268	)		(437,565	)
	6,173,255			102,672,036			23,329,382			(14,329,157	)		4,426,032
	(2,916,799	)		107,820,773			23,524,640			(14,509,760	)		4,229,235
	107,820,773			—			—			58,380,936			54,151,701
$	104,903,974		$	107,820,773		$	23,524,640		$	43,871,176		$	58,380,936
$	(802,044	)	$	—		$	144,201		$	(87,384	)	$	(5,207	)

78

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Short Duration Bond Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
From Investment Activities:
Operations:
Net investment income	$	704,187		$	1,457,301
Net realized gain (loss)		(208,049	)		(26,707	)
Change in unrealized appreciation/depreciation		105,766			(296,822	)
Change in net assets from operations		601,904			1,133,772
Distributions to Class A Shareholders From:
Net investment income		(153,646	)		(348,922	)
Net realized gains		—			—
Distributions to Class B Shareholders From:
Net investment income		—			—
Net realized gains		—			—
Distributions to Class C Shareholders From:
Net investment income		(23,440	)		(21,912	)
Net realized gains		—			—
Distributions to Institutional Class Shareholders From:
Net investment income		(1,301,388	)		(2,397,203	)
Net realized gains		—			—
Distributions to Class R Shareholders From:
Net investment income		—			—
Net realized gains		—			—
Change in net assets from shareholder distributions		(1,478,474	)		(2,768,037	)
Capital Transactions:
Change in net assets from capital transactions		(986,941	)		18,731,775
Change in net assets		(1,863,511	)		17,097,510
Net Assets:
Beginning of period		93,579,875			76,482,365
End of period	$	91,716,364		$	93,579,875
Undistributed (distributions in excess of) net investment income	$	(788,160	)	$	(13,873	)

See accompanying Notes to the Financial Statements.

79

Sterling Capital Intermediate U.S. Government Fund						Sterling Capital Total Return Bond Fund						Sterling Capital Corporate Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	241,910		$	648,247		$	9,025,658		$	14,505,600		$	891,078		$	2,120,200
	195,229			611,948			259,976			2,925,519			71,970			523,009
	233,229			(220,964	)		8,680,931			6,225,213			427,523			1,043,688
	670,368			1,039,231			17,966,565			23,656,332			1,390,571			3,686,897
	(94,695	)		(301,935	)		(713,715	)		(1,406,246	)		(3,979	)		(6,604	)
	—			—			—			(33,246	)		(295	)		(1,774	)
	(1,432	)		(9,364	)		(17,391	)		(46,603	)		—			—
	—			—			—			(1,493	)		—			—
	(4,938	)		(21,704	)		(74,586	)		(141,146	)		(95	)		(173	)
	—			—			—			(4,242	)		(9	)		(152	)
	(244,581	)		(1,045,318	)		(10,237,828	)		(15,766,791	)		(887,003	)		(2,113,419	)
	—			—			—			(333,852	)		(60,169	)		(788,915	)
	—			—			(85	)		(183	)		—			—
	—			—			—			(4	)		—			—
	(345,646	)		(1,378,321	)		(11,043,605	)		(17,733,806	)		(951,550	)		(2,911,037	)
	994,678			(25,146,872	)		209,018,646			(13,487,015	)		8,150,102			(35,930,274	)
	1,319,400			(25,485,962	)		215,941,606			(7,564,489	)		8,589,123			(35,154,414	)
	32,984,719			58,470,681			479,160,937			486,725,426			50,629,778			85,784,192
$	34,304,119		$	32,984,719		$	695,102,543		$	479,160,937		$	59,218,901		$	50,629,778
$	75,993		$	179,729		$	(1,567,358	)	$	450,589		$	(29,684	)	$	(29,685	)

80

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Securitized Opportunities Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
From Investment Activities:
Operations:
Net investment income	$	484,351		$	993,910
Net realized gain		31,790			57,805
Change in unrealized appreciation/depreciation		630,862			420,142
Change in net assets from operations		1,147,003			1,471,857
Distributions to Class A Shareholders From:
Net investment income		(1,210	)		(1,931	)
Net realized gains		—			—
Distributions to Class C Shareholders From:
Net investment income		(364	)		(137	)
Net realized gains		—			—
Distributions to Institutional Class Shareholders From:
Net investment income		(553,067	)		(1,227,217	)
Net realized gains		—			—
Change in net assets from shareholder distributions		(554,641	)		(1,229,285	)
Capital Transactions:
Change in net assets from capital transactions		4,907,016			(22,037,743	)
Change in net assets		5,499,378			(21,795,171	)
Net Assets:
Beginning of period		36,748,536			58,543,707
End of period	$	42,247,914		$	36,748,536
Undistributed (distributions in excess of) net investment income	$	(70,643	)	$	(353	)

See accompanying Notes to the Financial Statements.

81

Sterling Capital Kentucky Intermediate Tax-Free Fund						Sterling Capital Maryland Intermediate Tax-Free Fund						Sterling Capital North Carolina Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	192,850		$	437,419		$	377,302		$	765,915		$	2,381,361		$	5,009,338
	128,889			222,100			193,623			302,682			731,215			1,003,866
	(127,485	)		68,244			(36,760	)		674,535			253,724			3,550,954
	194,254			727,763			534,165			1,743,132			3,366,300			9,564,158
	(55,799	)		(130,277	)		(62,305	)		(126,420	)		(520,835	)		(1,144,192	)
	(75,342	)		—			(33,661	)		—			(76,229	)		—
	(163	)		(1,066	)		(3,838	)		(8,734	)		(22,692	)		(53,304	)
	(319	)		—			(3,481	)		—			(5,096	)		—
	(136,877	)		(303,745	)		(309,938	)		(628,771	)		(1,837,475	)		(3,803,406	)
	(171,504	)		—			(147,308	)		—			(241,858	)		—
	(440,004	)		(435,088	)		(560,531	)		(763,925	)		(2,704,185	)		(5,000,902	)
	126,531			(2,901,179	)		(918,587	)		(6,765,866	)		(824,479	)		(21,237,128	)
	(119,219	)		(2,608,504	)		(944,953	)		(5,786,659	)		(162,364	)		(16,673,872	)
	15,166,496			17,775,000			38,028,988			43,815,647			202,556,661			219,230,533
$	15,047,277		$	15,166,496		$	37,084,035		$	38,028,988		$	202,394,297		$	202,556,661
$	3,087		$	3,076		$	4,893		$	3,672		$	82,498		$	82,139

82

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital South Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
From Investment Activities:
Operations:
Net investment income	$	727,589		$	1,487,051
Net realized gain		207,067			307,218
Change in unrealized appreciation/depreciation		141,771			1,449,008
Change in net assets from operations		1,076,427			3,243,277
Distributions to Class A Shareholders From:
Net investment income		(170,059	)		(379,363	)
Net realized gains		(27,810	)		—
Distributions to Class C Shareholders From:
Net investment income		(9,935	)		(15,349	)
Net realized gains		(2,712	)		—
Distributions to Institutional Class Shareholders From:
Net investment income		(548,252	)		(1,087,595	)
Net realized gains		(81,197	)		—
Change in net assets from shareholder distributions		(839,965	)		(1,482,307	)
Capital Transactions:
Change in net assets from capital transactions		1,910,484			(5,199,017	)
Change in net assets		2,146,946			(3,438,047	)
Net Assets:
Beginning of period		68,368,990			71,807,037
End of period	$	70,515,936		$	68,368,990
Undistributed (distributions in excess of) net investment income	$	26,767		$	27,424

See accompanying Notes to the Financial Statements.

83

Sterling Capital Virginia Intermediate Tax-Free Fund						Sterling Capital West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	1,329,689		$	2,732,006		$	1,184,180		$	2,446,499
	337,291			1,189,906			224,060			343,688
	150,551			1,580,135			264,369			2,327,286
	1,817,531			5,502,047			1,672,609			5,117,473
	(411,220	)		(904,521	)		(373,025	)		(770,455	)
	(222,245	)		—			(90,668	)		—
	(8,857	)		(26,906	)		(2,742	)		(9,726	)
	(7,394	)		—			(1,175	)		—
	(909,876	)		(1,800,259	)		(799,796	)		(1,647,846	)
	(438,730	)		—			(180,075	)		—
	(1,998,322	)		(2,731,686	)		(1,447,481	)		(2,428,027	)
	(765,465	)		(11,262,105	)		(3,298,462	)		(3,734,980	)
	(946,256	)		(8,491,744	)		(3,073,334	)		(1,045,534	)
	122,514,766			131,006,510			105,919,643			106,965,177
$	121,568,510		$	122,514,766		$	102,846,309		$	105,919,643
$	62,654		$	62,918		$	(8,300	)	$	(16,917	)

84

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Strategic Allocation Conservative Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
From Investment Activities:
Operations:
Net investment income	$	170,766		$	391,878
Net realized gain		917,559			597,313
Change in unrealized appreciation/depreciation		(505,172	)		596,232
Change in net assets from operations		583,153			1,585,423
Distributions to Class A Shareholders From:
Net investment income		(168,455	)		(341,093	)
Distributions to Class B Shareholders From:
Net investment income		(6,321	)		(13,314	)
Distributions to Class C Shareholders From:
Net investment income		(2,843	)		(4,723	)
Distributions to Institutional Class Shareholders From:
Net investment income		(28,098	)		(56,009	)
Change in net assets from shareholder distributions		(205,717	)		(415,139	)
Capital Transactions:
Change in net assets from capital transactions		(453,935	)		(978,718	)
Change in net assets		(76,499	)		191,566
Net Assets:
Beginning of period		18,987,126			18,795,560
End of period	$	18,910,627		$	18,987,126
Undistributed (distributions in excess of) net investment income	$	(25,766	)	$	9,185

See accompanying Notes to the Financial Statements.

85

Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	239,723		$	583,182		$	111,513		$	314,044
	2,761,449			1,611,303			2,320,382			1,587,350
	(1,759,014	)		1,619,133			(1,561,034	)		1,321,207
	1,242,158			3,813,618			870,861			3,222,601
	(324,202	)		(597,476	)		(179,688	)		(321,875	)
	(9,300	)		(24,798	)		(6,950	)		(15,019	)
	(4,379	)		(6,728	)		(2,384	)		(3,265	)
	(2,394	)		(5,338	)		(7,571	)		(13,068	)
	(340,275	)		(634,340	)		(196,593	)		(353,227	)
	(569,744	)		407,613			(338,393	)		(2,197,126	)
	332,139			3,586,891			335,875			672,248
	38,378,898			34,792,007			26,950,158			26,277,910
$	38,711,037		$	38,378,898		$	27,286,033		$	26,950,158
$	(80,944	)	$	19,608		$	(71,771	)	$	13,309

86

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Behavioral Large Cap Value Equity Fund
	For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	1,909,888			$	2,729,743
Distributions reinvested			238,245				320,064
Value of shares redeemed			(2,636,169	)			(3,539,247	)
Change in net assets from Class A Share transactions			(488,036	)			(489,440	)
Class B Shares:
Proceeds from shares issued			7,486				1,745
Distributions reinvested			2,777				2,858
Value of shares redeemed			(249,553	)			(514,057	)
Change in net assets from Class B Share transactions			(239,290	)			(509,454	)
Class C Shares:
Proceeds from shares issued			368,884				327,653
Distributions reinvested			2,048				1,269
Value of shares redeemed			(11,688	)			(53,570	)
Change in net assets from Class C Share transactions			359,244				275,352
Institutional Shares:
Proceeds from shares issued			13,397,238				15,076,742
Distributions reinvested			1,991,062				2,753,320
Value of shares redeemed			(10,845,179	)			(20,115,224	)
Change in net assets from Institutional Share transactions			4,543,121				(2,285,162	)
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		$	4,175,039			$	(3,008,704	)
Share Transactions:
Class A Shares:
Issued			106,782				169,206
Reinvested			13,080				19,458
Redeemed			(148,169	)			(219,138	)
Change in Class A Shares			(28,307	)			(30,474	)
Class B Shares:
Issued			430				107
Reinvested			155				182
Redeemed			(14,109	)			(32,514	)
Change in Class B Shares			(13,524	)			(32,225	)
Class C Shares:
Issued			21,240				20,716
Reinvested			115				81
Redeemed			(670	)			(3,397	)
Change in Class C Shares			20,685				17,400
Institutional Shares:
Issued			749,481				926,275
Reinvested			108,715				166,138
Redeemed			(606,047	)			(1,238,787	)
Change in Institutional Shares			252,149				(146,374	)
Class R Shares:
Issued			—				—
Reinvested			—				—
Redeemed			—				—
Change in Class R Shares			—				—
Change in Shares			231,003				(191,673	)

See accompanying Notes to the Financial Statements.

87

Sterling Capital Mid Value Fund						Sterling Capital Behavioral Small Cap Value Equity Fund						Sterling Capital Special Opportunities Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	2,297,384		$	14,894,315		$	3,910,269		$	2,746,623		$	37,100,032		$	83,940,171
	2,534,757			2,397,811			338,061			1,063,260			18,786,909			28,608,304
	(3,272,697	)		(13,183,438	)		(802,459	)		(2,469,520	)		(156,790,865	)		(48,852,920	)
	1,559,444			4,108,688			3,445,871			1,340,363			(100,903,924	)		63,695,555
	1,419			30,181			959			16,589			7,232			130,062
	79,231			123,157			9,791			50,831			405,267			948,880
	(302,621	)		(896,374	)		(73,283	)		(147,024	)		(1,734,491	)		(2,958,194	)
	(221,971	)		(743,036	)		(62,533	)		(79,604	)		(1,321,992	)		(1,879,252	)
	1,055,526			3,682,358			57,495			152,544			14,789,158			16,522,834
	231,333			105,926			8,970			27,810			6,765,229			10,521,960
	(703,836	)		(466,272	)		(45,897	)		(67,104	)		(5,028,121	)		(9,956,584	)
	583,023			3,322,012			20,568			113,250			16,526,266			17,088,210
	67,120,440			263,135,153			6,968,913			33,620,037			201,579,776			97,663,971
	44,182,703			35,681,479			4,636,759			13,982,036			23,151,425			40,817,740
	(113,746,246	)		(169,534,832	)		(19,541,864	)		(22,510,286	)		(301,144,008	)		(66,778,198	)
	(2,443,103	)		129,281,800			(7,936,192	)		25,091,787			(76,412,807	)		71,703,513
	—			—			—			—			43,501			20,000
	12			12			6			21			1,665			46,550
	—			—			—			—			(28,607	)		(550,255	)
	12			12			6			21			16,559			(483,705	)
$	(522,595	)	$	135,969,476		$	(4,532,280	)	$	26,465,817		$	(162,095,898	)	$	150,124,321
	117,390			773,259			266,122			186,399			1,628,306			3,828,555
	134,503			129,239			23,062			75,057			850,857			1,439,506
	(168,839	)		(682,217	)		(54,474	)		(164,624	)		(6,996,440	)		(2,243,628	)
	83,054			220,281			234,710			96,832			(4,517,277	)		3,024,433
	76			1,665			65			1,168			342			6,738
	4,517			7,066			696			3,694			20,613			52,951
	(16,430	)		(49,107	)		(4,992	)		(10,037	)		(84,640	)		(148,348	)
	(11,837	)		(40,376	)		(4,231	)		(5,175	)		(63,685	)		(88,659	)
	58,481			203,805			3,877			10,501			726,441			817,242
	13,237			6,086			638			2,023			343,762			586,508
	(39,135	)		(25,697	)		(3,210	)		(4,558	)		(246,348	)		(499,270	)
	32,583			184,194			1,305			7,966			823,855			904,480
	3,433,820			13,488,582			464,408			2,225,741			8,668,646			4,239,993
	2,320,846			1,906,275			313,111			979,897			1,014,524			1,993,050
	(5,839,539	)		(8,687,532	)		(1,293,411	)		(1,493,001	)		(12,645,138	)		(2,932,065	)
	(84,873	)		6,707,325			(515,892	)		1,712,637			(2,961,968	)		3,300,978
	—			—			—			—			1,878			830
	1			1			—			1			74			2,304
	—			—			—			—			(1,267	)		(22,726	)
	1			1			—			1			685			(19,592	)
	18,928			7,071,425			(284,108	)		1,812,261			(6,718,390	)		7,121,640

88

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	47,884,984			$	186,958,403
Distributions reinvested			21,608,019				33,625,596
Value of shares redeemed			(226,620,266	)			(227,395,105	)
Change in net assets from Class A Share transactions			(157,127,263	)			(6,811,106	)
Class B Shares:
Proceeds from shares issued			13,602				23,664
Distributions reinvested			214,966				399,020
Value of shares redeemed			(1,962,175	)			(3,687,451	)
Change in net assets from Class B Share transactions			(1,733,607	)			(3,264,767	)
Class C Shares:
Proceeds from shares issued			15,128,520				49,537,180
Distributions reinvested			9,632,421				12,055,353
Value of shares redeemed			(30,884,300	)			(39,300,477	)
Change in net assets from Class C Share transactions			(6,123,359	)			22,292,056
Institutional Shares:
Proceeds from shares issued			103,709,930				396,807,370
Distributions reinvested			33,300,793				43,949,941
Value of shares redeemed			(236,969,988	)			(377,238,376	)
Change in net assets from Institutional Share transactions			(99,959,265	)			63,518,935
Class R Shares:
Proceeds from shares issued			326,435				638,289
Distributions reinvested			63,106				136,341
Value of shares redeemed			(250,035	)			(1,906,062	)
Change in net assets from Class R Share transactions			139,506				(1,131,432	)
Change in net assets from capital transactions		$	(264,803,988	)		$	74,603,686
Share Transactions:
Class A Shares:
Issued			2,555,482				10,002,372
Reinvested			1,171,980				1,822,457
Redeemed			(12,062,988	)			(12,150,789	)
Change in Class A Shares			(8,335,526	)			(325,960	)
Class B Shares:
Issued			720				1,273
Reinvested			11,721				21,807
Redeemed			(104,597	)			(196,602	)
Change in Class B Shares			(92,156	)			(173,522	)
Class C Shares:
Issued			814,910				2,666,495
Reinvested			528,187				661,287
Redeemed			(1,662,887	)			(2,111,841	)
Change in Class C Shares			(319,790	)			1,215,941
Institutional Shares:
Issued			5,521,539				20,924,144
Reinvested			1,799,929				2,373,645
Redeemed			(12,616,755	)			(20,134,041	)
Change in Institutional Shares			(5,295,287	)			3,163,748
Class R Shares:
Issued			17,521				34,332
Reinvested			3,443				7,445
Redeemed			(13,328	)			(99,742	)
Change in Class R Shares			7,636				(57,965	)
Change in Shares			(14,035,123	)			3,822,242

* Commencement of operations.

See accompanying Notes to the Financial Statements.

89

Sterling Capital Long/Short Equity Fund						Sterling Capital Behavioral International Equity Fund			Sterling Capital Ultra Short Bond Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Period December 13, 2013* to September 30, 2014			For the Period November 28, 2014* to March 31, 2015 (Unaudited)			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	780,853		$	2,462,721		$	171,643		$	6,228,573		$	13,313,585
	60,356			—			232			33,895			44,792
	(910,302	)		(29,243	)		—			(10,664,119	)		(15,655,271	)
	(69,093	)		2,433,478			171,875			(4,401,651	)		(2,296,894	)
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	120,150			332,128			8,268			—			—
	10,371			—			2			—			—
	(68,709	)		—			(2,009	)		—			—
	61,812			332,128			6,261			—			—
	50,833,129			126,735,146			25,826,117			9,682,105			11,334,014
	1,447,368			—			129			209,351			256,316
	(46,099,961	)		(26,828,716	)		(2,675,000	)		(19,818,962	)		(4,867,404	)
	6,180,536			99,906,430			23,151,246			(9,927,506	)		6,722,926
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
$	6,173,255		$	102,672,036		$	23,329,382		$	(14,329,157	)	$	4,426,032
	78,633			226,214			17,273			626,837			1,335,400
	6,171			—			24			3,415			4,494
	(91,449	)		(2,663	)		—			(1,074,824	)		(1,570,736	)
	(6,645	)		223,551			17,297			(444,572	)		(230,842	)
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	11,722			30,439			831			—			—
	1,068			—			—			—			—
	(7,065	)		—			(200	)		—			—
	5,725			30,439			631			—			—
	5,095,979			12,077,967			2,582,587			976,032			1,138,349
	147,540			—			13			21,101			25,719
	(4,677,568	)		(2,462,656	)		(267,806	)		(1,997,718	)		(488,049	)
	565,951			9,615,311			2,314,794			(1,000,585	)		676,019
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	565,031			9,869,301			2,332,722			(1,445,157	)		445,177

90

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Short Duration Bond Fund
	For the Six Months Ended March 31, 2015 (Unaudited)				For the Year Ended September 30, 2014
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	1,339,913			$	2,796,080
Distributions reinvested			108,066				289,998
Value of shares redeemed			(2,385,545	)			(6,231,598	)
Change in net assets from Class A Share transactions			(937,566	)			(3,145,520	)
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			644,431				1,685,718
Distributions reinvested			19,382				19,814
Value of shares redeemed			(264,391	)			(332,368	)
Change in net assets from Class C Share transactions			399,422				1,373,164
Institutional Shares:
Proceeds from shares issued			24,770,429				40,964,366
Distributions reinvested			321,117				550,059
Value of shares redeemed			(25,540,343	)			(21,010,294	)
Change in net assets from Institutional Share transactions			(448,797	)			20,504,131
Class R Shares:
Distributions reinvested			—				—
Change in net assets from Class R Share transactions			—				—
Change in net assets from capital transactions		$	(986,941	)		$	18,731,775
Share Transactions:
Class A Shares:
Issued			148,557				304,275
Reinvested			11,979				31,571
Redeemed			(264,862	)			(676,991	)
Change in Class A Shares			(104,326	)			(341,145	)
Class B Shares:
Issued			—				—
Reinvested			—				—
Redeemed			—				—
Change in Class B Shares			—				—
Class C Shares:
Issued			71,381				184,006
Reinvested			2,150				2,165
Redeemed			(29,326	)			(36,183	)
Change in Class C Shares			44,205				149,988
Institutional Shares:
Issued			2,746,662				4,455,646
Reinvested			35,618				59,934
Redeemed			(2,831,098	)			(2,287,879	)
Change in Institutional Shares			(48,818	)			2,227,701
Class R Shares:
Reinvested			—				—
Change in Class R Shares			—				—
Change in Shares			(108,939	)			2,036,544

See accompanying Notes to the Financial Statements.

91

Sterling Capital Intermediate U.S. Government Fund				Sterling Capital Total Return Bond Fund						Sterling Capital Corporate Fund
For the Six Months Ended March 31, 2015 (Unaudited)	For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$2,610,896	$	668,955		$	13,504,174		$	3,624,543		$	14,885		$	100,131
85,284		268,715			623,958			1,284,323			4,042			7,900
(391,506)		(2,248,870	)		(3,729,814	)		(9,287,592	)		(11,607	)		(1,500	)
2,304,674		(1,311,200	)		10,398,318			(4,378,726	)		7,320			106,531
4,242		—			61,691			—			—			—
1,408		9,156			16,705			46,598			—			—
(48,202)		(274,607	)		(230,896	)		(561,667	)		—			—
(42,552)		(265,451	)		(152,500	)		(515,069	)		—			—
38,231		47,825			1,180,165			2,108,348			—			6,000
4,760		20,583			57,956			130,446			104			301
(17,026)		(318,297	)		(369,590	)		(2,088,583	)		—			(12,363	)
25,965		(249,889	)		868,531			150,211			104			(6,062	)
4,892,025		6,828,941			240,796,658			107,996,986			16,293,889			16,138,437
86,563		404,001			6,490,660			8,479,710			889,486			2,177,776
(6,271,997)		(30,553,274	)		(49,383,107	)		(125,220,314	)		(9,040,697	)		(54,346,956	)
(1,293,409)		(23,320,332	)		197,904,211			(8,743,618	)		8,142,678			(36,030,743	)
—		—			86			187			—			—
—		—			86			187			—			—
$994,678	$	(25,146,872	)	$	209,018,646		$	(13,487,015	)	$	8,150,102		$	(35,930,274	)
253,572		65,306			1,255,965			339,856			1,444			9,780
8,290		26,203			57,928			120,618			392			772
(38,079)		(219,418	)		(346,812	)		(874,264	)		(1,135	)		(149	)
223,783		(127,909	)		967,081			(413,790	)		701			10,403
417		—			5,719			—			—			—
138		896			1,550			4,374			—			—
(4,700)		(26,875	)		(21,407	)		(52,798	)		—			—
(4,145)		(25,979	)		(14,138	)		(48,424	)		—			—
3,739		4,682			109,378			197,506			—			580
463		2,010			5,372			12,231			10			30
(1,658)		(30,981	)		(34,347	)		(196,250	)		—			(1,229	)
2,544		(24,289	)		80,403			13,487			10			(619	)
475,768		665,253			22,416,082			10,148,845			1,581,749			1,575,945
8,408		39,338			601,980			795,588			86,300			213,127
(609,970)		(2,973,132	)		(4,583,414	)		(11,810,416	)		(878,685	)		(5,310,174	)
(125,794)		(2,268,541	)		18,434,648			(865,983	)		789,364			(3,521,102	)
—		—			8			18			—			—
—		—			8			18			—			—
96,388		(2,446,718	)		19,468,002			(1,314,692	)		790,075			(3,511,318	)

92

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Securitized Opportunities Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	10,509		$	48,223
Distributions reinvested		1,210			1,931
Value of shares redeemed		—			(1,500	)
Change in net assets from Class A Share transactions		11,719			48,654
Class C Shares:
Proceeds from shares issued		—			35,277
Distributions reinvested		364			137
Value of shares redeemed		—			—
Change in net assets from Class C Share transactions		364			35,414
Institutional Shares:
Proceeds from shares issued		6,977,240			5,626,271
Distributions reinvested		535,286			1,162,537
Value of shares redeemed		(2,617,593	)		(28,910,619	)
Change in net assets from Institutional Share transactions		4,894,933			(22,121,811	)
Change in net assets from capital transactions	$	4,907,016		$	(22,037,743	)
Share Transactions:
Class A Shares:
Issued		1,039			4,903
Reinvested		121			195
Redeemed		—			(153	)
Change in Class A Shares		1,160			4,945
Class C Shares:
Issued		—			3,553
Reinvested		36			14
Redeemed		—			—
Change in Class C Shares		36			3,567
Institutional Shares:
Issued		696,404			570,144
Reinvested		53,387			117,683
Redeemed		(261,944	)		(2,931,755	)
Change in Institutional Shares		487,847			(2,243,928	)
Change in Shares		489,043			(2,235,416	)

See accompanying Notes to the Financial Statements.

93

Sterling Capital Kentucky Intermediate Tax-Free Fund						Sterling Capital Maryland Intermediate Tax-Free Fund						Sterling Capital North Carolina Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	103,113		$	218,128		$	357,116		$	251,403		$	1,446,823		$	3,547,260
	114,361			101,299			71,235			92,966			462,987			869,416
	(89,082	)		(1,643,560	)		(510,562	)		(1,797,863	)		(3,542,964	)		(12,529,477	)
	128,392			(1,324,133	)		(82,211	)		(1,453,494	)		(1,633,154	)		(8,112,801	)
	—			15			21,064			4,800			621,429			589,983
	483			1,066			7,027			8,733			22,510			43,522
	—			(50,000	)		(60,539	)		(494,065	)		(58,139	)		(2,619,552	)
	483			(48,919	)		(32,448	)		(480,532	)		585,800			(1,986,047	)
	1,277,501			2,681,290			3,122,319			4,760,513			21,198,832			22,069,111
	49,207			22,985			141,990			131,752			444,715			519,324
	(1,329,052	)		(4,232,402	)		(4,068,237	)		(9,724,105	)		(21,420,672	)		(33,726,715	)
	(2,344	)		(1,528,127	)		(803,928	)		(4,831,840	)		222,875			(11,138,280	)
$	126,531		$	(2,901,179	)	$	(918,587	)	$	(6,765,866	)	$	(824,479	)	$	(21,237,128	)
	9,656			20,476			31,801			22,606			130,943			326,372
	10,668			9,400			6,342			8,369			41,966			79,957
	(8,249	)		(153,027	)		(45,597	)		(162,346	)		(320,938	)		(1,155,567	)
	12,075			(123,151	)		(7,454	)		(131,371	)		(148,029	)		(749,238	)
	—			—			1,860			432			56,413			54,396
	45			99			625			786			2,042			4,011
	—			(4,592	)		(5,370	)		(44,739	)		(5,270	)		(242,364	)
	45			(4,493	)		(2,885	)		(43,521	)		53,185			(183,957	)
	118,967			250,008			276,476			428,018			1,914,816			2,034,614
	4,604			2,137			12,620			11,842			40,301			47,745
	(124,035	)		(393,830	)		(360,871	)		(877,854	)		(1,935,123	)		(3,114,298	)
	(464	)		(141,685	)		(71,775	)		(437,994	)		19,994			(1,031,939	)
	11,656			(269,329	)		(82,114	)		(612,886	)		(74,850	)		(1,965,134	)

94

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital South Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	634,436		$	609,289
Distributions reinvested		162,066			311,318
Value of shares redeemed		(1,247,832	)		(5,230,947	)
Change in net assets from Class A Share transactions		(451,330	)		(4,310,340	)
Class C Shares:
Proceeds from shares issued		440,507			792,914
Distributions reinvested		9,465			11,159
Value of shares redeemed		(301,648	)		(270,955	)
Change in net assets from Class C Share transactions		148,324			533,118
Institutional Shares:
Proceeds from shares issued		6,589,664			13,827,670
Distributions reinvested		142,219			198,920
Value of shares redeemed		(4,518,393	)		(15,448,385	)
Change in net assets from Institutional Share transactions		2,213,490			(1,421,795	)
Change in net assets from capital transactions	$	1,910,484		$	(5,199,017	)
Share Transactions:
Class A Shares:
Issued		56,731			55,520
Reinvested		14,488			28,310
Redeemed		(111,473	)		(478,279	)
Change in Class A Shares		(40,254	)		(394,449	)
Class C Shares:
Issued		39,487			72,232
Reinvested		847			1,012
Redeemed		(26,912	)		(24,584	)
Change in Class C Shares		13,422			48,660
Institutional Shares:
Issued		593,145			1,270,152
Reinvested		12,799			18,200
Redeemed		(407,249	)		(1,423,379	)
Change in Institutional Shares		198,695			(135,027	)
Change in Shares		171,863			(480,816	)

See accompanying Notes to the Financial Statements.

95

Sterling Capital Virginia Intermediate Tax-Free Fund						Sterling Capital West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	477,845		$	1,580,973		$	2,706,048		$	654,815
	500,157			679,452			376,430			608,304
	(2,368,503	)		(8,739,263	)		(1,886,741	)		(4,253,974	)
	(1,390,501	)		(6,478,838	)		1,195,737			(2,990,855	)
	3,441			16,603			—			2,400
	14,211			21,765			3,581			8,933
	(163,064	)		(1,282,447	)		(128,396	)		(337,511	)
	(145,412	)		(1,244,079	)		(124,815	)		(326,178	)
	9,643,694			15,203,340			5,918,512			14,475,708
	277,633			184,027			166,590			119,083
	(9,150,879	)		(18,926,555	)		(10,454,486	)		(15,012,738	)
	770,448			(3,539,188	)		(4,369,384	)		(417,947	)
$	(765,465	)	$	(11,262,105	)	$	(3,298,462	)	$	(3,734,980	)
	39,638			132,598			265,748			65,415
	41,471			56,879			36,952			60,550
	(196,438	)		(731,884	)		(185,038	)		(424,311	)
	(115,329	)		(542,407	)		117,662			(298,346	)
	286			1,391			—			241
	1,178			1,825			352			891
	(13,522	)		(107,543	)		(12,593	)		(33,275	)
	(12,058	)		(104,327	)		(12,241	)		(32,143	)
	796,517			1,274,082			577,539			1,439,942
	23,032			15,387			16,339			11,839
	(756,108	)		(1,592,958	)		(1,022,046	)		(1,494,140	)
	63,441			(303,489	)		(428,168	)		(42,359	)
	(63,946	)		(950,223	)		(322,747	)		(372,848	)

96

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Strategic Allocation Conservative Fund
	For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	500,612		$	2,462,133
Distributions reinvested		154,505			307,288
Value of shares redeemed		(1,073,049	)		(2,496,915	)
Change in net assets from Class A Share transactions		(417,932	)		272,506
Class B Shares:
Proceeds from shares issued		—			26,465
Distributions reinvested		6,099			13,314
Value of shares redeemed		(70,078	)		(311,480	)
Change in net assets from Class B Share transactions		(63,979	)		(271,701	)
Class C Shares:
Proceeds from shares issued		44,174			85,791
Distributions reinvested		2,793			4,723
Value of shares redeemed		(9,489	)		(58,210	)
Change in net assets from Class C Share transactions		37,478			32,304
Institutional Shares:
Proceeds from shares issued		110,810			311,637
Distributions reinvested		27,019			53,892
Value of shares redeemed		(147,331	)		(1,377,356	)
Change in net assets from Institutional Share transactions		(9,502	)		(1,011,827	)
Change in net assets from capital transactions	$	(453,935	)	$	(978,718	)
Share Transactions:
Class A Shares:
Issued		46,841			236,083
Reinvested		14,304			29,146
Redeemed		(100,971	)		(239,202	)
Change in Class A Shares		(39,826	)		26,027
Class B Shares:
Issued		—			2,512
Reinvested		564			1,260
Redeemed		(6,477	)		(29,972	)
Change in Class B Shares		(5,913	)		(26,200	)
Class C Shares:
Issued		4,167			8,261
Reinvested		260			451
Redeemed		(883	)		(5,494	)
Change in Class C Shares		3,544			3,218
Institutional Shares:
Issued		10,213			29,762
Reinvested		2,476			5,061
Redeemed		(13,449	)		(133,574	)
Change in Institutional Shares		(760	)		(98,751	)
Change in Shares		(42,955	)		(95,706	)

See accompanying Notes to the Financial Statements.

97

Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014			For the Six Months Ended March 31, 2015 (Unaudited)			For the Year Ended September 30, 2014
$	1,754,121		$	4,301,837		$	1,137,809		$	2,541,576
	316,798			585,449			177,595			319,012
	(2,122,148	)		(2,947,129	)		(1,181,744	)		(3,439,864	)
	(51,229	)		1,940,157			133,660			(579,276	)
	4,284			—			11,966			18,559
	9,300			24,798			6,950			14,990
	(452,058	)		(1,593,220	)		(456,432	)		(1,433,303	)
	(438,474	)		(1,568,422	)		(437,516	)		(1,399,754	)
	28,428			325,190			62,892			68,590
	4,379			6,728			1,997			2,624
	(62,252	)		(195,220	)		(50,599	)		(66,401	)
	(29,445	)		136,698			14,290			4,813
	32			362			35,115			121,047
	1,233			2,761			7,202			12,357
	(51,861	)		(103,943	)		(91,144	)		(356,313	)
	(50,596	)		(100,820	)		(48,827	)		(222,909	)
$	(569,744	)	$	407,613		$	(338,393	)	$	(2,197,126	)
	164,461			417,123			108,839			254,214
	29,533			56,225			17,051			31,660
	(197,843	)		(284,702	)		(113,271	)		(339,168	)
	(3,849	)		188,646			12,619			(53,294	)
	414			—			1,186			1,851
	890			2,451			688			1,548
	(42,798	)		(157,756	)		(44,456	)		(147,107	)
	(41,494	)		(155,305	)		(42,582	)		(143,708	)
	2,695			31,327			6,159			6,955
	418			660			198			271
	(5,944	)		(19,019	)		(4,942	)		(6,830	)
	(2,831	)		12,968			1,415			396
	3			35			3,357			11,747
	114			264			689			1,221
	(4,803	)		(10,164	)		(8,830	)		(36,681	)
	(4,686	)		(9,865	)		(4,784	)		(23,713	)
	(52,860	)		36,444			(33,332	)		(220,319	)

98

Sterling Capital Funds

Statement of Cash Flows

For the Six Months Ended March 31, 2015 (Unaudited)

	Sterling Capital Long/Short Equity Fund
Cash Used for Operating Activities:
Net decrease in net assets resulting from operations	$	(5,991,468	)
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		(2,607,209	)
Decrease in interest and dividends receivable		1,154
Decrease in deferred offering costs		1,780
Increase in prepaid expenses		(11,781	)
Decrease in payable for dividends on short sales		(62	)
Increase in payable to broker for service fee on short sales		135
Increase in investment advisory fees payable		2,717
Decrease in accounting and administration out-of-pocket fees payable		(1,097	)
Increase in administration fees payable		344
Increase in audit fees payable		685
Decrease in transfer agent fees payable		(2,805	)
Increase in distribution (12b-1) fees payable		52
Decrease in other fees		(8,274	)
Amortization of premium and accretion of discount on investments		(36,528	)
Net realized gain (loss) on investments		(153,540	)
Net unrealized gain (loss) on investments and foreign currency translations		5,340,900
Premiums received from options written		99,592
Premiums paid on closing options written		(177,767	)
Proceeds from investments sold short		80,502,692
Purchases to cover investments sold short		(87,369,206	)
Purchases of long-term investments		(123,507,280	)
Proceeds from sales of long-term investments		126,090,847
Net purchases of short-term securities		3,890,003
Net cash used for operating activities		(3,936,116	)
Cash Provided by (Used for) Financing Activities:
Proceeds from issuance capital shares		52,295,849
Payments on redemption of capital shares		(47,025,285	)
Cash dividends paid to shareholders		(1,580,491	)
Net cash provided for financing activities		3,690,073
Cash:
Net decrease in cash		(246,043	)
Cash at beginning of period		253,051
Cash at end of period	$	7,008
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for dividend expense and service fee on securities sold short	$	573,500
Non-Cash Financing Activities:
Capital shares issued in reinvestment of distributions paid to shareholders	$	1,518,095

See accompanying Notes to the Financial Statements.

99

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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			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	17.24		0.12			0.83			0.95			(0.12	)		—			(0.12	)
Year Ended September 30, 2014		$	14.16		0.18			3.06			3.24			(0.16	)		—			(0.16	)
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	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2015 (Unaudited)		$	19.33		0.03			2.00			2.03			(0.11	)		(1.17	)		(1.28	)
Year Ended September 30, 2014		$	18.78		0.05			1.76			1.81			(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	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	14.34		0.10			1.51			1.61			(0.09	)		(0.44	)		(0.53	)
Year Ended September 30, 2014		$	15.25		0.11			0.93			1.04			(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, 2015 (Unaudited)		$	23.33		(0.02	)		1.28			1.26			—			(1.20	)		(1.20	)
Year Ended September 30, 2014		$	21.38		(0.02	)		4.26			4.24			(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			—			—			—
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2015 (Unaudited)		$	18.94		0.16			0.32			0.48			(0.17	)		(0.51	)		(0.68	)
Year Ended September 30, 2014		$	18.14		0.34			1.40			1.74			(0.31	)		(0.63	)		(0.94	)
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	)
Sterling Capital Long/Short Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.90		(0.09	)		(0.49	)		(0.58	)		—			(0.30	)		(0.30	)
December 13, 2013 to September 30, 2014(e)		$	10.00		(0.13	)		1.03			0.90			—			—			—
Sterling Capital Behavioral International Equity Fund
November 28, 2014 to March 31, 2015 (Unaudited)(e)		$	10.00		0.15			(0.05	)		0.10			(0.02	)		—			(0.02	)
Sterling Capital Ultra Short Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$	9.94		0.03			(0.02	)		0.01			(0.04	)		—			(0.04	)
Year Ended September 30, 2014		$	9.98		0.05			(0.03	)(h)		0.02			(0.06	)		—			(0.06	)
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 2.04% per share.

See accompanying Notes to the Financial Statements.

101

					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)
	$18.07		5.53	%		$	35,543		1.05	%		1.38	%		1.15	%		61.07	%
	$17.24		22.96	%		$	34,395		1.06	%		1.09	%		1.16	%		113.75	%
	$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	%
	$20.08		10.97	%		$	44,688		1.18	%		0.31	%		1.18	%		14.52	%
	$19.33		9.91	%		$	41,403		1.18	%		0.26	%		1.18	%		27.30	%
	$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	%
	$15.42		11.43	%		$	14,026		1.24	%		1.40	%		1.24	%		42.48	%
	$14.34		7.09	%		$	9,681		1.24	%		0.74	%		1.24	%		68.50	%
	$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	%
	$23.39		5.69	%		$	259,656		1.21	%		(0.18	)%		1.21	%		4.64	%
	$23.33		21.71	%		$	364,368		1.21	%		(0.11	)%		1.21	%		32.35	%
	$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	%
	$18.74		2.61	%		$	550,611		1.21	%		1.68	%		1.21	%		14.56	%
	$18.94		9.76	%		$	714,457		1.20	%		1.79	%		1.20	%		16.13	%
	$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	%
	$10.02		(5.29	)%		$	2,174		3.16	%(k)		(1.84	)%		3.16	%		152.22	%
	$10.90		9.00	%		$	2,437		3.44	%(k)		(1.55	)%		3.44	%		193.58	%
	$10.08		1.05	%		$	174		1.27	%		3.01	%		1.44	%		44.21	%
	$  9.91		0.13	%		$	6,744		0.74	%		0.54	%		0.74	%		37.31	%
	$  9.94		0.21	%		$	11,184		0.73	%		0.51	%		0.73	%		79.98	%
	$  9.98		0.15	%		$	13,526		0.73	%		0.41	%		0.73	%		55.18	%

102

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, 2015 (Unaudited)		$	9.07		0.06		—	(d)		0.06			(0.14	)		—			(0.14	)
Year Ended September 30, 2014		$	9.24		0.14		(0.04	)		0.10			(0.27	)		—			(0.27	)
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	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.19		0.07		0.14			0.21			(0.10	)		—			(0.10	)
Year Ended September 30, 2014		$	10.29		0.14		0.09			0.23			(0.33	)		—			(0.33	)
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	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.66		0.14		0.16			0.30			(0.17	)		—			(0.17	)
Year Ended September 30, 2014		$	10.52		0.31		0.21			0.52			(0.37	)		(0.01	)		(0.38	)
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	)
Sterling Capital Corporate Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.25		0.15		0.10			0.25			(0.15	)		(0.01	)		(0.16	)
Year Ended September 30, 2014		$	10.15		0.31		0.20			0.51			(0.31	)		(0.10	)		(0.41	)
February 1, 2013 to September 30, 2013(e)		$	10.53		0.22		(0.38	)		(0.16	)		(0.22	)		—			(0.22	)
Sterling Capital Securitized Opportunities Fund
Six Months Ended March 31, 2015 (Unaudited)		$	9.90		0.11		0.18			0.29			(0.13	)		—			(0.13	)
Year Ended September 30, 2014		$	9.85		0.22		0.11			0.33			(0.28	)		—			(0.28	)
February 1, 2013 to September 30, 2013(e)		$	10.16		0.11		(0.21	)		(0.10	)		(0.21	)		—			(0.21	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.86		0.13		—	(d)		0.13			(0.13	)		(0.18	)		(0.31	)
Year Ended September 30, 2014		$	10.67		0.27		0.18			0.45			(0.26	)		—			(0.26	)
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	(f)		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	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	11.23		0.10		0.06			0.16			(0.10	)		(0.06	)		(0.16	)
Year Ended September 30, 2014		$	10.96		0.19		0.27			0.46			(0.19	)		—			(0.19	)
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	)		—	(d)		(0.28	)

* 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) Amount is less than $0.005.

(e) Period from commencement of operations.

(f) 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.

103

						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)
	$	8.99		0.62	%		$	9,432		0.77	%		1.34	%		0.79	%		27.32	%
	$	9.07		1.13	%		$	10,468		0.76	%		1.48	%		0.80	%		56.10	%
	$	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	%
	$	10.30		2.05	%		$	11,170		0.91	%		1.30	%		0.94	%		28.86	%
	$	10.19		2.23	%		$	8,778		0.93	%		1.41	%		0.93	%		35.74	%
	$	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	%
	$	10.79		2.86	%		$	49,831		0.71	%		2.61	%		0.81	%		12.52	%
	$	10.66		5.03	%		$	38,929		0.81	%		2.90	%		0.83	%		75.21	%
	$	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	%
	$	10.34		2.45	%		$	278		0.85	%		2.90	%		0.85	%		12.41	%
	$	10.25		5.16	%		$	269		0.86	%		3.04	%		0.86	%		105.03	%
	$	10.15		(1.54	)%		$	160		0.85	%		3.21	%		0.85	%		99.48	%
	$	10.06		2.97	%		$	100		0.83	%		2.29	%		0.87	%		7.60	%
	$	9.90		3.38	%		$	87		0.85	%		2.20	%		0.88	%		98.34	%
	$	9.85		(1.00	)%		$	38		0.90	%		1.71	%		0.90	%		193.21	%
	$	10.68		1.19	%		$	4,670		0.95	%		2.42	%		0.98	%		10.15	%
	$	10.86		4.31	%		$	4,615		0.97	%		2.47	%		0.97	%		11.13	%
	$	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	%
	$	11.23		1.42	%		$	6,676		0.91	%		1.84	%		0.94	%		8.85	%
	$	11.23		4.26	%		$	6,763		0.94	%		1.74	%		0.94	%		19.90	%
	$	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	%

104

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 North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.98		0.12		0.06			0.18			(0.12	)		(0.02	)		(0.14	)
Year Ended September 30, 2014		$	10.74		0.24		0.24			0.48			(0.24	)		—			(0.24	)
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	)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	11.14		0.11		0.06			0.17			(0.11	)		(0.02	)		(0.13	)
Year Ended September 30, 2014		$	10.85		0.22		0.29			0.51			(0.22	)		—			(0.22	)
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	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	12.06		0.12		0.05			0.17			(0.12	)		(0.07	)		(0.19	)
Year Ended September 30, 2014		$	11.79		0.24		0.27			0.51			(0.24	)		—			(0.24	)
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	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.16		0.11		0.05			0.16			(0.11	)		(0.03	)		(0.14	)
Year Ended September 30, 2014		$	9.90		0.21		0.26			0.47			(0.21	)		—			(0.21	)
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	)
Sterling Capital Strategic Allocation Conservative Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.59		0.10		0.24			0.34			(0.12	)		—			(0.12	)
Year Ended September 30, 2014		$	9.95		0.22		0.65			0.87			(0.23	)		—			(0.23	)
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	)
Sterling Capital Strategic Allocation Balanced Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.66		0.07		0.28			0.35			(0.10	)		—			(0.10	)
Year Ended September 30, 2014		$	9.77		0.17		0.90			1.07			(0.18	)		—			(0.18	)
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	)
Sterling Capital Strategic Allocation Growth Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.39		0.05		0.29			0.34			(0.08	)		—			(0.08	)
Year Ended September 30, 2014		$	9.35		0.12		1.06			1.18			(0.14	)		—			(0.14	)
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	)

* 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.

105

					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)
	$11.02		1.62	%		$	46,953		0.87	%		2.18	%		0.90	%		12.14	%
	$10.98		4.55	%		$	48,426		0.91	%		2.25	%		0.91	%		11.67	%
	$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	%
	$11.18		1.51	%		$	17,360		0.89	%		1.96	%		0.92	%		7.96	%
	$11.14		4.76	%		$	17,748		0.93	%		2.02	%		0.93	%		15.51	%
	$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	%
	$12.04		1.41	%		$	39,682		0.88	%		2.04	%		0.91	%		9.31	%
	$12.06		4.39	%		$	41,130		0.91	%		2.04	%		0.91	%		20.48	%
	$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	%
	$10.18		1.51	%		$	36,460		0.88	%		2.11	%		0.91	%		4.61	%
	$10.16		4.82	%		$	35,190		0.91	%		2.14	%		0.91	%		21.09	%
	$  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	%
	$10.81		3.20	%		$	15,478		0.43	%		1.84	%		0.68	%		31.92	%
	$10.59		8.81	%		$	15,589		0.45	%		2.11	%		0.70	%		8.67	%
	$  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	%
	$10.91		3.29	%		$	36,226		0.40	%		1.30	%		0.65	%		47.05	%
	$10.66		11.05	%		$	35,437		0.39	%		1.64	%		0.64	%		5.70	%
	$  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	%
	$10.65		3.28	%		$	24,444		0.41	%		0.88	%		0.66	%		55.08	%
	$10.39		12.65	%		$	23,709		0.41	%		1.23	%		0.66	%		8.60	%
	$  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	%

106

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			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	16.94		0.05			0.82			0.87			(0.06	)		—			(0.06	)
Year Ended September 30, 2014		$	13.91		0.05			3.02			3.07			(0.04	)		—			(0.04	)
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	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2015 (Unaudited)		$	18.13		(0.04	)		1.87			1.83			—			(1.17	)		(1.17	)
Year Ended September 30, 2014		$	17.76		(0.10	)		1.67			1.57			—			(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)
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	13.88		0.04			1.46			1.50			—			(0.44	)		(0.44	)
Year Ended September 30, 2014		$	14.89		(0.01	)		0.93			0.92			(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, 2015 (Unaudited)		$	20.93		(0.09	)		1.14			1.05			—			(1.20	)		(1.20	)
Year Ended September 30, 2014		$	19.53		(0.17	)		3.85			3.68			—			(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			—			—			—
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2015 (Unaudited)		$	18.91		0.09			0.30			0.39			(0.09	)		(0.51	)		(0.60	)
Year Ended September 30, 2014		$	18.10		0.19			1.41			1.60			(0.16	)		(0.63	)		(0.79	)
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	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.16		0.03			0.13			0.16			(0.06	)		—			(0.06	)
Year Ended September 30, 2014		$	10.25		0.07			0.09			0.16			(0.25	)		—			(0.25	)
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	)

* 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.

107

				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)
$17.75		5.11	%		$	798		1.80	%		0.59	%		1.90	%		61.07	%
$16.94		22.08	%		$	990		1.81	%		0.33	%		1.91	%		113.75	%
$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	%
$18.79	��	10.56	%		$	1,136		1.93	%		(0.49	)%		1.93	%		14.52	%
$18.13		9.09	%		$	1,311		1.93	%		(0.53	)%		1.93	%		27.30	%
$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	%
$14.94		10.97	%		$	286		1.99	%		0.57	%		1.99	%		42.48	%
$13.88		6.33	%		$	324		1.99	%		(0.04	)%		1.99	%		68.50	%
$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	%
$20.78		5.33	%		$	6,323		1.96	%		(0.91	)%		1.96	%		4.64	%
$20.93		20.78	%		$	7,704		1.96	%		(0.86	)%		1.96	%		32.35	%
$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	%
$18.70		2.17	%		$	5,712		1.95	%		0.92	%		1.95	%		14.56	%
$18.91		8.97	%		$	7,516		1.95	%		1.02	%		1.95	%		16.13	%
$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	%
$10.26		1.57	%		$	224		1.66	%		0.54	%		1.69	%		28.86	%
$10.16		1.56	%		$	264		1.68	%		0.66	%		1.68	%		35.74	%
$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	%

108

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, 2015 (Unaudited)		$	10.67		0.10		0.16			0.26			(0.13	)		—			(0.13	)
Year Ended September 30, 2014		$	10.53		0.23		0.21			0.44			(0.29	)		(0.01	)		(0.30	)
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	)
Sterling Capital Strategic Allocation Conservative Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.62		0.06		0.23			0.29			(0.09	)		—			(0.09	)
Year Ended September 30, 2014		$	9.98		0.14		0.66			0.80			(0.16	)		—			(0.16	)
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	)
Sterling Capital Strategic Allocation Balanced Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.45		0.03		0.27			0.30			(0.06	)		—			(0.06	)
Year Ended September 30, 2014		$	9.57		0.09		0.89			0.98			(0.10	)		—			(0.10	)
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	)
Sterling Capital Strategic Allocation Growth Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.14		0.01		0.28			0.29			(0.04	)		—			(0.04	)
Year Ended September 30, 2014		$	9.12		0.04		1.04			1.08			(0.06	)		—			(0.06	)
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	)

* 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.

109

				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)
$10.80		2.47	%		$	1,316		1.46	%		1.84	%		1.56	%		12.52	%
$10.67		4.25	%		$	1,452		1.56	%		2.16	%		1.58	%		75.21	%
$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	%
$10.82		2.74	%		$	759		1.18	%		1.09	%		1.43	%		31.92	%
$10.62		8.07	%		$	807		1.20	%		1.35	%		1.45	%		8.67	%
$  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	%
$10.69		2.84	%		$	1,542		1.15	%		0.54	%		1.40	%		47.05	%
$10.45		10.26	%		$	1,940		1.14	%		0.85	%		1.39	%		5.70	%
$  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	%
$10.39		2.91	%		$	1,466		1.16	%		0.10	%		1.41	%		55.08	%
$10.14		11.84	%		$	1,863		1.16	%		0.44	%		1.41	%		8.60	%
$  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	%

110

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			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$16.79		0.06			0.80			0.86			(0.07	)		—			(0.07	)
Year Ended September 30, 2014		$13.81		0.05			3.00			3.05			(0.07	)		—			(0.07	)
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	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2015 (Unaudited)		$18.06		(0.04	)		1.86			1.82			(0.01	)		(1.17	)		(1.18	)
Year Ended September 30, 2014		$17.72		(0.07	)		1.63			1.56			(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)
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$13.87		0.05			1.44			1.49			—			(0.44	)		(0.44	)
Year Ended September 30, 2014		$14.88		—	(e)		0.92			0.92			(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, 2015 (Unaudited)		$20.95		(0.09	)		1.13			1.04			—			(1.20	)		(1.20	)
Year Ended September 30, 2014		$19.55		(0.17	)		3.85			3.68			—			(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			—			—			—
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2015 (Unaudited)		$18.80		0.09			0.31			0.40			(0.10	)		(0.51	)		(0.61	)
Year Ended September 30, 2014		$18.01		0.19			1.40			1.59			(0.17	)		(0.63	)		(0.80	)
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	)
Sterling Capital Long/Short Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$10.85		(0.13	)		(0.49	)		(0.62	)		—			(0.30	)		(0.30	)
December 13, 2013 to September 30, 2014(f)		$10.00		(0.21	)		1.06			0.85			—			—			—
Sterling Capital Behavioral International Equity Fund
November 28, 2014 to March 31, 2015 (Unaudited)(f)		$10.00		0.11			(0.02	)		0.09			(0.02	)		—			(0.02	)
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$  9.07		0.03			(0.02	)		0.01			(0.10	)		—			(0.10	)
Year Ended September 30, 2014		$  9.24		0.06			(0.03	)		0.03			(0.20	)		—			(0.20	)
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 2.79% per share.

See accompanying Notes to the Financial Statements.

111

				Ratios/Supplementary Data
Net Asset Value, End of Period	Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
$17.58		5.13	%		$	923		1.80	%		0.73	%		1.90	%		61.07	%
$16.79		22.09	%		$	534		1.81	%		0.34	%		1.92	%		113.75	%
$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	%
$18.70		10.57	%		$	5,436		1.93	%		(0.42	)%		1.93	%		14.52	%
$18.06		9.12	%		$	4,661		1.94	%		(0.40	)%		1.94	%		27.30	%
$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	%
$14.92		10.91	%		$	355		1.99	%		0.64	%		1.99	%		42.48	%
$13.87		6.38	%		$	312		1.99	%		(0.01	)%		1.99	%		68.50	%
$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	%
$20.79		5.27	%		$	136,698		1.96	%		(0.87	)%		1.96	%		4.64	%
$20.95		20.76	%		$	120,469		1.96	%		(0.86	)%		1.96	%		32.35	%
$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	%
$18.59		2.22	%		$	306,438		1.96	%		0.93	%		1.96	%		14.56	%
$18.80		8.98	%		$	315,948		1.95	%		1.04	%		1.95	%		16.13	%
$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	%
$  9.93		(5.68	)%		$	359		3.92	%(j)		(2.60	)%		3.92	%		152.22	%
$10.85		8.50	%		$	330		4.15	%(j)		(2.37	)%		4.15	%		193.58	%
$10.07		0.88	%		$	6		2.03	%		2.23	%		2.18	%		44.21	%
$  8.98		0.14	%		$	2,285		1.52	%		0.58	%		1.54	%		27.32	%
$  9.07		0.37	%		$	1,906		1.53	%		0.69	%		1.56	%		56.10	%
$  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	%

112

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, 2015 (Unaudited)		$	10.18		0.03		0.13			0.16			(0.06	)		—			(0.06	)
Year Ended September 30, 2014		$	10.27		0.07		0.09			0.16			(0.25	)		—			(0.25	)
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	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.68		0.10		0.16			0.26			(0.13	)		—			(0.13	)
Year Ended September 30, 2014		$	10.54		0.23		0.21			0.44			(0.29	)		(0.01	)		(0.30	)
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	)
Sterling Capital Corporate Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.24		0.11		0.10			0.21			(0.11	)		(0.01	)		(0.12	)
Year Ended September 30, 2014		$	10.15		0.24		0.18			0.42			(0.23	)		(0.10	)		(0.33	)
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, 2015 (Unaudited)		$	9.89		0.08		0.17			0.25			(0.09	)		—			(0.09	)
Year Ended September 30, 2014		$	9.84		0.16		0.11			0.27			(0.22	)		—			(0.22	)
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, 2015 (Unaudited)		$	10.86		0.09		—	(e)		0.09			(0.09	)		(0.18	)		(0.27	)
Year Ended September 30, 2014		$	10.67		0.19		0.18			0.37			(0.18	)		—			(0.18	)
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, 2015 (Unaudited)		$	11.24		0.06		0.05			0.11			(0.06	)		(0.06	)		(0.12	)
Year Ended September 30, 2014		$	10.96		0.11		0.28			0.39			(0.11	)		—			(0.11	)
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, 2015 (Unaudited)		$	10.98		0.08		0.05			0.13			(0.08	)		(0.02	)		(0.10	)
Year Ended September 30, 2014		$	10.74		0.16		0.24			0.40			(0.16	)		—			(0.16	)
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	)

* 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) Amount is less than $0.005.

See accompanying Notes to the Financial Statements.

113

						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)
	$	10.28		1.57	%		$	858		1.66	%		0.55	%		1.69	%		28.86	%
	$	10.18		1.56	%		$	823		1.68	%		0.66	%		1.68	%		35.74	%
	$	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	%
	$	10.81		2.48	%		$	6,513		1.46	%		1.85	%		1.56	%		12.52	%
	$	10.68		4.24	%		$	5,578		1.56	%		2.15	%		1.58	%		75.21	%
	$	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	%
	$	10.33		2.07	%		$	9		1.60	%		2.15	%		1.60	%		12.41	%
	$	10.24		4.25	%		$	9		1.59	%		2.31	%		1.59	%		105.03	%
	$	10.15		(2.02	)%		$	15		1.59	%		2.58	%		1.59	%		99.48	%
	$	10.05		2.58	%		$	39		1.58	%		1.53	%		1.62	%		7.60	%
	$	9.89		2.72	%		$	38		1.58	%		1.59	%		1.62	%		98.34	%
	$	9.84		(1.49	)%		$	3		1.64	%		1.17	%		1.64	%		193.21	%
	$	10.68		0.81	%		$	20		1.70	%		1.67	%		1.73	%		10.15	%
	$	10.86		3.53	%		$	19		1.71	%		1.72	%		1.71	%		11.13	%
	$	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	%
	$	11.23		0.95	%		$	714		1.66	%		1.09	%		1.69	%		8.85	%
	$	11.24		3.58	%		$	747		1.69	%		0.99	%		1.69	%		19.90	%
	$	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	%
	$	11.01		1.15	%		$	3,459		1.62	%		1.43	%		1.65	%		12.14	%
	$	10.98		3.77	%		$	2,864		1.66	%		1.52	%		1.66	%		11.67	%
	$	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	%

114

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 South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	11.14		0.07		0.06			0.13			(0.07	)		(0.02	)		(0.09	)
Year Ended September 30, 2014		$	10.85		0.14		0.29			0.43			(0.14	)		—			(0.14	)
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, 2015 (Unaudited)		$	12.06		0.08		0.05			0.13			(0.08	)		(0.07	)		(0.15	)
Year Ended September 30, 2014		$	11.79		0.15		0.27			0.42			(0.15	)		—			(0.15	)
Year Ended September 30, 2013		$	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	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.16		0.07		0.05			0.12			(0.07	)		(0.03	)		(0.10	)
Year Ended September 30, 2014		$	9.91		0.14		0.25			0.39			(0.14	)		—			(0.14	)
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, 2015 (Unaudited)		$	10.53		0.06		0.23			0.29			(0.09	)		—			(0.09	)
Year Ended September 30, 2014		$	9.90		0.14		0.66			0.80			(0.17	)		—			(0.17	)
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	)
Sterling Capital Strategic Allocation Balanced Fund(e)
Six Months Ended March 31, 2015 (Unaudited)		$	10.47		0.03		0.27			0.30			(0.06	)		—			(0.06	)
Year Ended September 30, 2014		$	9.60		0.09		0.89			0.98			(0.11	)		—			(0.11	)
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	)
Sterling Capital Strategic Allocation Growth Fund(e)
Six Months Ended March 31, 2015 (Unaudited)		$	10.09		0.01		0.29			0.30			(0.05	)		—			(0.05	)
Year Ended September 30, 2014		$	9.09		0.05		1.02			1.07			(0.07	)		—			(0.07	)
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	)

* 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.

115

						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)
	$	11.18		1.13	%		$	1,620		1.64	%		1.21	%		1.67	%		7.96	%
	$	11.14		3.97	%		$	1,465		1.67	%		1.26	%		1.67	%		15.51	%
	$	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	%
	$	12.04		1.04	%		$	1,343		1.63	%		1.29	%		1.66	%		9.31	%
	$	12.06		3.61	%		$	1,490		1.66	%		1.30	%		1.66	%		20.48	%
	$	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	%
	$	10.18		1.12	%		$	333		1.63	%		1.34	%		1.66	%		4.61	%
	$	10.16		3.93	%		$	457		1.66	%		1.39	%		1.66	%		21.09	%
	$	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	%
	$	10.73		2.77	%		$	334		1.18	%		1.10	%		1.43	%		31.92	%
	$	10.53		8.07	%		$	291		1.20	%		1.35	%		1.45	%		8.67	%
	$	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	%
	$	10.71		2.88	%		$	744		1.15	%		0.56	%		1.40	%		47.05	%
	$	10.47		10.24	%		$	757		1.14	%		0.88	%		1.40	%		5.70	%
	$	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	%
	$	10.34		2.95	%		$	533		1.16	%		0.13	%		1.41	%		55.08	%
	$	10.09		11.75	%		$	506		1.16	%		0.48	%		1.41	%		8.60	%
	$	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	%

116

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			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	17.33		0.15			0.84			0.99			(0.15	)		—			(0.15	)
Year Ended September 30, 2014		$	14.23		0.22			3.08			3.30			(0.20	)		—			(0.20	)
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	)
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2015 (Unaudited)		$	19.50		0.05			2.02			2.07			(0.16	)		(1.17	)		(1.33	)
Year Ended September 30, 2014		$	18.91		0.10			1.77			1.87			(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	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	14.47		0.12			1.52			1.64			(0.13	)		(0.44	)		(0.57	)
Year Ended September 30, 2014		$	15.34		0.15			0.94			1.09			(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	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2015 (Unaudited)		$	24.06		0.01			1.32			1.33			—			(1.20	)		(1.20	)
Year Ended September 30, 2014		$	21.96		0.03			4.39			4.42			(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			—			—			—
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2015 (Unaudited)		$	18.98		0.18			0.32			0.50			(0.19	)		(0.51	)		(0.70	)
Year Ended September 30, 2014		$	18.18		0.38			1.41			1.79			(0.36	)		(0.63	)		(0.99	)
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	(g)		0.43			(0.23	)		—			(0.23	)
Year Ended September 30, 2010		$	11.44		0.33			1.57			1.90			(0.27	)		—			(0.27	)
Sterling Capital Long/Short Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.93		(0.08	)		(0.50	)		(0.58	)		—			(0.30	)		(0.30	)
December 13, 2013 to September 30, 2014(i)		$	10.00		(0.11	)		1.04			0.93			—			—			—
Sterling Capital Behavioral International Equity Fund
November 28, 2014 to March 31, 2015 (Unaudited)(i)		$	10.00		0.13			(0.02	)		0.11			(0.03	)		—			(0.03	)
Sterling Capital Ultra Short Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$	9.94		0.04			(0.02	)		0.02			(0.05	)		—			(0.05	)
Year Ended September 30, 2014		$	9.98		0.08			(0.03	)		0.05			(0.09	)		—			(0.09	)
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) 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.

(h) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 1.79% per share.

(i) Period from commencement of operations.

(j) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 1.77% per share.

See accompanying Notes to the Financial Statements.

117

						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)
	$	18.17		5.68	%		$	250,749		0.80	%		1.63	%		0.90	%		61.07	%
	$	17.33		23.29	%		$	234,809		0.81	%		1.34	%		0.91	%		113.75	%
	$	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	%
	$	20.24		11.09	%		$	721,461		0.93	%		0.55	%		0.93	%		14.52	%
	$	19.50		10.17	%		$	696,468		0.93	%		0.53	%		0.93	%		27.30	%
	$	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	%
	$	15.54		11.53	%		$	121,946		0.99	%		1.61	%		0.99	%		42.48	%
	$	14.47		7.40	%		$	121,011		0.99	%		0.99	%		0.99	%		68.50	%
	$	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	%
	$	24.19		5.81	%		$	506,277		0.96	%		0.09	%		0.96	%		4.64	%
	$	24.06		22.00	%		$	574,783		0.96	%		0.14	%		0.96	%		32.35	%
	$	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	%
	$	18.78		2.73	%		$	927,532		0.96	%		1.93	%		0.96	%		14.56	%
	$	18.98		10.01	%		$	1,038,013		0.95	%		2.03	%		0.95	%		16.13	%
	$	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	%
	$	10.05		(5.18	)%		$	102,371		2.92	%(h)		(1.58	)%		2.92	%		152.22	%
	$	10.93		9.30	%		$	105,053		3.10	%(j)		(1.23	)%		3.10	%		193.58	%
	$	10.08		1.16	%		$	23,344		1.02	%		2.60	%		1.17	%		44.21	%
	$	9.91		0.25	%		$	37,127		0.50	%		0.77	%		0.50	%		37.31	%
	$	9.94		0.46	%		$	47,197		0.48	%		0.76	%		0.48	%		79.98	%
	$	9.98		0.35	%		$	40,625		0.48	%		0.65	%		0.48	%		55.18	%

118

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, 2015 (Unaudited)		$	9.07		0.07		—	(d)		0.07			(0.15	)		—			(0.15	)
Year Ended September 30, 2014		$	9.24		0.16		(0.03	)		0.13			(0.30	)		—			(0.30	)
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	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.21		0.08		0.13			0.21			(0.11	)		—			(0.11	)
Year Ended September 30, 2014		$	10.30		0.17		0.09			0.26			(0.35	)		—			(0.35	)
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	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.67		0.15		0.17			0.32			(0.19	)		—			(0.19	)
Year Ended September 30, 2014		$	10.53		0.34		0.21			0.55			(0.40	)		(0.01	)		(0.41	)
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	)
Sterling Capital Corporate Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.25		0.16		0.10			0.26			(0.16	)		(0.01	)		(0.17	)
Year Ended September 30, 2014		$	10.15		0.34		0.20			0.54			(0.34	)		(0.10	)		(0.44	)
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(e)		$	10.00		0.08		(0.07	)		0.01			(0.07	)		—			(0.07	)
Sterling Capital Securitized Opportunities Fund
Six Months Ended March 31, 2015 (Unaudited)		$	9.91		0.13		0.16			0.29			(0.14	)		—			(0.14	)
Year Ended September 30, 2014		$	9.85		0.25		0.11			0.36			(0.30	)		—			(0.30	)
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(e)		$	10.00		0.06		0.12			0.18			(0.07	)		—			(0.07	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.84		0.14		0.01			0.15			(0.14	)		(0.18	)		(0.32	)
Year Ended September 30, 2014		$	10.65		0.29		0.19			0.48			(0.29	)		—			(0.29	)
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	(f)		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	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	11.25		0.12		0.05			0.17			(0.12	)		(0.06	)		(0.18	)
Year Ended September 30, 2014		$	10.97		0.22		0.28			0.50			(0.22	)		—			(0.22	)
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	)		—	(d)		(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) Amount is less than $0.005.

(e) Period from commencement of operations.

(f) 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.

119

						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)
	$	8.99		0.75	%		$	80,000		0.52	%		1.58	%		0.54	%		27.32	%
	$	9.07		1.38	%		$	81,206		0.52	%		1.72	%		0.55	%		56.10	%
	$	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	%
	$	10.31		2.07	%		$	22,053		0.67	%		1.55	%		0.69	%		28.86	%
	$	10.21		2.58	%		$	23,119		0.68	%		1.66	%		0.68	%		35.74	%
	$	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	%
	$	10.80		2.99	%		$	637,436		0.46	%		2.86	%		0.56	%		12.52	%
	$	10.67		5.29	%		$	433,198		0.56	%		3.15	%		0.58	%		75.21	%
	$	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	%
	$	10.34		2.58	%		$	58,932		0.60	%		3.15	%		0.60	%		12.41	%
	$	10.25		5.42	%		$	50,353		0.60	%		3.30	%		0.60	%		105.03	%
	$	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	%
	$	10.06		2.99	%		$	42,109		0.58	%		2.53	%		0.62	%		7.60	%
	$	9.91		3.75	%		$	36,624		0.61	%		2.50	%		0.63	%		98.34	%
	$	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	%
	$	10.67		1.41	%		$	10,358		0.70	%		2.67	%		0.73	%		10.15	%
	$	10.84		4.57	%		$	10,532		0.72	%		2.72	%		0.72	%		11.13	%
	$	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	%
	$	11.24		1.46	%		$	29,694		0.66	%		2.09	%		0.69	%		8.85	%
	$	11.25		4.61	%		$	30,519		0.69	%		1.99	%		0.69	%		19.90	%
	$	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	%

120

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 North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.98		0.13		0.06			0.19			(0.13	)		(0.02	)		(0.15	)
Year Ended September 30, 2014		$	10.74		0.27		0.24			0.51			(0.27	)		—			(0.27	)
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	)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	11.07		0.12		0.06			0.18			(0.12	)		(0.02	)		(0.14	)
Year Ended September 30, 2013		$	10.78		0.25		0.29			0.54			(0.25	)		—			(0.25	)
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	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	12.06		0.14		0.05			0.19			(0.14	)		(0.07	)		(0.21	)
Year Ended September 30, 2013		$	11.79		0.27		0.27			0.54			(0.27	)		—			(0.27	)
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	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.17		0.12		0.05			0.17			(0.12	)		(0.03	)		(0.15	)
Year Ended September 30, 2014		$	9.92		0.24		0.25			0.49			(0.24	)		—			(0.24	)
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	)
Sterling Capital Strategic Allocation Conservative Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.71		0.11		0.24			0.35			(0.13	)		—			(0.13	)
Year Ended September 30, 2014		$	10.05		0.24		0.68			0.92			(0.26	)		—			(0.26	)
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	)
Sterling Capital Strategic Allocation Balanced Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.73		0.08		0.28			0.36			(0.11	)		—			(0.11	)
Year Ended September 30, 2014		$	9.83		0.19		0.92			1.11			(0.21	)		—			(0.21	)
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	)
Sterling Capital Strategic Allocation Growth Fund(d)
Six Months Ended March 31, 2015 (Unaudited)		$	10.41		0.06		0.30			0.36			(0.09	)		—			(0.09	)
Year Ended September 30, 2014		$	9.37		0.15		1.05			1.20			(0.16	)		—			(0.16	)
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	)

* 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.

121

						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)
	$	11.02		1.74	%		$	151,982		0.62	%		2.43	%		0.65	%		12.14	%
	$	10.98		4.81	%		$	151,267		0.66	%		2.50	%		0.66	%		11.67	%
	$	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	%
	$	11.11		1.64	%		$	51,536		0.64	%		2.21	%		0.67	%		7.96	%
	$	11.07		5.03	%		$	49,157		0.68	%		2.27	%		0.68	%		15.51	%
	$	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	%
	$	12.04		1.54	%		$	80,544		0.63	%		2.29	%		0.66	%		9.31	%
	$	12.06		4.65	%		$	79,895		0.66	%		2.29	%		0.66	%		20.48	%
	$	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	%
	$	10.19		1.63	%		$	66,053		0.63	%		2.34	%		0.66	%		4.61	%
	$	10.17		4.98	%		$	70,273		0.66	%		2.39	%		0.66	%		21.09	%
	$	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	%
	$	10.93		3.29	%		$	2,339		0.18	%		2.09	%		0.43	%		31.92	%
	$	10.71		9.19	%		$	2,300		0.20	%		2.32	%		0.45	%		8.67	%
	$	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	%
	$	10.98		3.40	%		$	199		0.15	%		1.57	%		0.40	%		47.05	%
	$	10.73		11.36	%		$	244		0.14	%		1.87	%		0.39	%		5.70	%
	$	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	%
	$	10.68		3.50	%		$	843		0.16	%		1.14	%		0.41	%		55.08	%
	$	10.41		12.89	%		$	872		0.16	%		1.46	%		0.41	%		8.60	%
	$	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	%

122

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, 2015 (Unaudited)		$	18.93		0.01			1.96			1.97			(0.05	)		(1.17	)		(1.22	)
Year Ended September 30, 2014		$	18.47		—	(e)		1.74			1.74			(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(f)		$	11.11		0.03			1.01			1.04			(0.03	)		—			(0.03	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2015 (Unaudited)		$	14.28		0.08			1.51			1.59			(0.05	)		(0.44	)		(0.49	)
Year Ended September 30, 2014		$	15.21		0.10			0.93			1.03			(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(f)		$	10.55		0.06			0.62			0.68			(0.05	)		—			(0.05	)
Sterling Capital Special Opportunities Fund
Six Months Ended March 31, 2015 (Unaudited)		$	23.69		(0.04	)		1.29			1.25			—			(1.20	)		(1.20	)
Year Ended September 30, 2014		$	21.72		(0.09	)		4.34			4.25			—			(2.28	)		(2.28	)
Year Ended September 30, 2013		$	18.83		0.01	(h)		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(f)		$	15.32		(0.03	)		0.97			0.94			—			—			—
Sterling Capital Equity Income Fund
Six Months Ended March 31, 2015 (Unaudited)		$	18.84		0.13			0.32			0.45			(0.15	)		(0.51	)		(0.66	)
Year Ended September 30, 2014		$	18.04		0.29			1.40			1.69			(0.26	)		(0.63	)		(0.89	)
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(f)		$	11.94		0.23			1.04			1.27			(0.18	)		—			(0.18	)
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2015 (Unaudited)		$	10.62		0.13			0.16			0.29			(0.16	)		—			(0.16	)
Year Ended September 30, 2014		$	10.48		0.28			0.22			0.50			(0.35	)		(0.01	)		(0.36	)
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(f)		$	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) 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 6.08%.

(h) 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.

123

				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)
$19.68		10.88	%		$	—	(d)		1.41	%		0.10	%		1.41	%		14.52	%
$18.93		9.68	%		$	—	(d)		1.39	%		0.02	%		1.39	%		27.30	%
$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	%
$15.38		11.28	%		$	—	(d)		1.48	%		1.06	%		1.48	%		42.48	%
$14.28		7.01	%		$	—	(d)		1.45	%		0.65	%		1.45	%		68.50	%
$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	%(g)		$	—	(d)		1.65	%		0.82	%		3.44	%		95.89	%
$23.74		5.56	%		$	43			1.46	%		(0.33	)%		1.46	%		4.64	%
$23.69		21.36	%		$	26			1.46	%		(0.41	)%		1.46	%		32.35	%
$21.72		21.28	%		$	450			1.49	%		0.04	%(h)		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	%
$18.63		2.47	%		$	1,934			1.46	%		1.42	%		1.46	%		14.56	%
$18.84		9.52	%		$	1,811			1.45	%		1.56	%		1.45	%		16.13	%
$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	%
$10.75		2.74	%		$	6			0.95	%		2.36	%		1.07	%		12.52	%
$10.62		4.81	%		$	6			1.04	%		2.65	%		1.04	%		75.21	%
$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	%

124

Sterling Capital Funds

Notes to Financial Statements

March 31, 2015 (Unaudited)

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.

The Trust offers shares of Sterling Capital Behavioral Large Cap Value Equity Fund (formerly known as Sterling Capital Large Cap Value Diversified Fund), Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund (formerly known as 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 Behavioral International Equity Fund, 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 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 1940Act.TheTax-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 of Funds currently invest only in other Funds that are part of the Sterling Capital Funds group of investment companies (not including cash sweep vehicles). Financial information for those Sterling Capital Funds is included in this report and also is available at www.sec.gov.

The Funds are authorized to issue an unlimited amount of shares. As of March 31, 2015, 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 Behavioral Small Cap Value Equity 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 Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund. With respect to Tax-Free Funds, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government 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

125

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

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.

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. 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. 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. At March 31, 2015, Sterling Capital Long/Short Equity Fund has a security valued by Pricing Committee recorded at fair value of $294,218 and represents 0.28% of net assets.

Fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Sterling Capital Behavioral International Equity Fund’s net asset value is calculated; such securities may be valued at fair value in accordance with procedures adopted by 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 as follows:

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

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

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

126

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

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, 2015, there were no significant changes to the valuation policies and procedures.

The summary of inputs used to determine the fair value of each Fund’s investments as of March 31, 2015 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 Behavioral Large Cap Value Equity Fund		$	286,598,692(a	)		$	—			$	��		$	286,598,692
Sterling Capital Mid Value Fund			771,136,391(a	)			—				—			771,136,391
Sterling Capital Behavioral Small Cap Value Equity Fund			136,111,929(a	)			—				—			136,111,929
Sterling Capital Special Opportunities Fund			899,169,098(a	)			—				—			899,169,098
Sterling Capital Equity Income Fund			1,786,514,946(a	)			—				—			1,786,514,946
Sterling Capital Long/Short Equity Fund			102,680,971(a	)			1,765,468(a	)			—			104,446,439
Sterling Capital Behavioral International Equity Fund			23,401,722(a	)			—				—			23,401,722
Sterling Capital Ultra Short Bond Fund			534,813(b	)			43,029,486(a	)			—			43,564,299
Sterling Capital Short Duration Bond Fund			939,323(b	)			90,268,247(a	)			—			91,207,570
Sterling Capital Intermediate U.S. Government Fund			1,040,476(b	)			33,035,124(a	)			—			34,075,600
Sterling Capital Total Return Bond Fund			13,180,792(b	)			678,533,978(a	)			—			691,714,770
Sterling Capital Corporate Fund			859,938(b	)			57,476,562(a	)			—			58,336,500
Sterling Capital Securitized Opportunities Fund			853,098(b	)			41,214,679(a	)			—			42,067,777
Sterling Capital Kentucky Intermediate Tax-Free Fund			565,229(b	)			14,251,299(a	)			—			14,816,528
Sterling Capital Maryland Intermediate Tax-Free Fund			1,324,366(b	)			35,434,625(a	)			—			36,758,991
Sterling Capital North Carolina Intermediate Tax-Free Fund			3,452,685(b	)			196,251,931(a	)			—			199,704,616
Sterling Capital South Carolina Intermediate Tax-Free Fund			3,027,898(b	)			66,793,095(a	)			—			69,820,993
Sterling Capital Virginia Intermediate Tax-Free Fund			3,749,392(b	)			116,803,717(a	)			—			120,553,109
Sterling Capital West Virginia Intermediate Tax-Free Fund			1,578,673(b	)			100,542,381(a	)			—			102,121,054
Sterling Capital Strategic Allocation Conservative Fund			18,860,793(a	)			—				—			18,860,793
Sterling Capital Strategic Allocation Balanced Fund			38,677,234(a	)			—				—			38,677,234
Sterling Capital Strategic Allocation Growth Fund			27,269,516(a	)			—				—			27,269,516
Liabilities:
Investments Sold Short
Sterling Capital Long/Short Equity Fund		$	29,746,134(a	)		$	—			$	—		$	29,746,134
Other Financial Instruments-
Written Options (Equity Risk)
Sterling Capital Special Opportunities Fund (c)			522,100				—				—			522,100
Sterling Capital Equity Income Fund (c)			630,625				—				—			630,625
Sterling Capital Long/Short Equity Fund (c)			36,888				—				—			36,888
(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, 2015.

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. The Funds may invest their excess cash in the Federated Treasury Obligations Fund or a similar money market fund or other short-term investment.

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).

127

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

Derivative Instruments Categorized by Risk Exposure — The Funds’ derivative contracts held at March 31, 2015, 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, 2015:

Fair Values of Derivative Instruments	Statements of Assets and Liabilities Location	Sterling Capital Special Opportunities Fund	Sterling Capital Equity Income Fund	Sterling Capital Long/Short Equity Fund
Liabilities
Equity contracts	Call options written	$522,100	$630,625	$36,888

The effect of derivative financial instruments on the Statements of Operations for the period ended March 31, 2015:

Net Realized Gain (Loss)	Sterling Capital Special Opportunities Fund	Sterling Capital Equity Income Fund	Sterling Capital Long/Short Equity Fund
Options (equity contracts)*	$900,801	$1,141,631	$(91,740)

* 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	Sterling Capital Long/Short Equity Fund
Written options (equity contracts)	$(293,132)	$(510,561)	$(14,367)

For the period ended March 31, 2015, 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		4,950		2,975		533
Average premium of written option contracts		$983,378		$907,073		$117,893
Average number of purchased option contracts		—		—		318
Average premium of purchased option contracts		$         —		$         —		$  11,261

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 Behavioral Large Cap Value Equity Fund, Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity 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 and Sterling Capital Behavioral International Equity Fund are declared and paid annually. Distributable net realized gains, if any, are declared and distributed at least annually. Distributions to shareholders that exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.

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

128

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.

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

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 assetsor another appropriate basis.

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 a 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, a 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 a Fund, and the income from these investments will generate income for a 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 a 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 a 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 purchases put options, which gives a Fund the right to sell a specified amount of an underlying security at a specified price within a specified time. 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 a 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.

129

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

In writing an option, a Fund contracts 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, a 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, Sterling Capital Equity Income and Sterling Capital Long/Short Equity 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, 2015 are as follows:

	Sterling Capital Special Opportunities Fund						Sterling Capital Equity Income Fund						Sterling Capital Long/Short Equity Fund
Covered Call Options	Number of Contracts			Premiums Received			Number of Contracts			Premiums Received			Number of Contracts			Premiums Received
Balance at beginning of period		5,700		$	1,205,292			2,813		$	1,282,703			—		$	—
Options written		7,700			1,326,405			4,725			1,016,138			936			99,592
Options closed		(2,000	)		(327,173	)		(1,725	)		(897,916	)		(300	)		(77,071	)
Options expired		(4,900	)		(1,010,548	)		(3,588	)		(654,190	)		—			—
Options exercised		(1,800	)		(498,517	)		(500	)		(99,908	)		—			—
Balance at end of period		4,700		$	695,460			1,725		$	646,827			636		$	22,521

The following is a summary of written call options outstanding as of March 31, 2015:

	Number of Contracts		Value
Sterling Capital Special Opportunities Fund
Akamai Technologies, Inc., $85.00, 8/21/15		1,000	$	(111,000	)
EOG Resources, Inc., $110.00, 4/17/15		700		(2,100	)
Lennar Corp, Class A, $50.00, 5/15/15		500		(150,000	)
Lennar Corp, Class A, $55.00, 5/15/15		1,000		(72,000	)
Lennar Corp, Class A, $55.00, 8/21/15		500		(108,000	)
Lennar Corp, Class A, $60.00, 8/21/15		1,000		(79,000	)
		4,700	$	(522,100	)
Sterling Capital Equity Income Fund
Anthem, Inc., $150.00, 9/18/15		500	$	(600,000	)
Time Warner Cable, Inc., $165.00, 4/17/15		1,225		(30,625	)
		1,725	$	(630,625	)
Sterling Capital Long/Short Equity Fund
Health Care Select Sector SPDR, $72.00, 6/19/15		360	$	(36,888	)
		360	$	(36,888	)

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

130

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

Securities Transactions and Related Income — During the period, security transactions are accounted for no later than one business day after 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 Behavioral Large Cap Value Equity Fund, Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund, Sterling Capital Special Opportunities Fund and Sterling Capital Equity Income Fund may also purchase or sell securities on a forward commitment basis. The Funds record when-issued securities on the trade date and pledge assets with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase securities, and any subsequent fluctuation in their value, is taken into account when determining the net asset value of the Funds commencing with the date the Funds agree to purchase the securities. The Funds do not accrue interest or dividends on “when-issued” securities until the underlying securities are received.

3. Purchases and Sales of Securities:

Purchases and sales of securities (excluding U.S. government securities and securities maturing less than one year from acquisition) for the period ended March 31, 2015 were as follows:

	Purchases		Sales
Sterling Capital Behavioral Large Cap Value Equity Fund	$	179,315,338	$	169,931,522
Sterling Capital Mid Value Fund		106,905,791		164,842,097
Sterling Capital Behavioral Small Cap Value Equity Fund		56,670,961		63,475,147
Sterling Capital Special Opportunities Fund		46,583,138		291,443,887
Sterling Capital Equity Income Fund		272,731,868		478,138,973
Sterling Capital Long/Short Equity Fund		186,311,491		181,185,340
Sterling Capital Behavioral International Equity Fund		31,445,370		8,528,925
Sterling Capital Ultra Short Bond Fund		17,255,669		24,332,015
Sterling Capital Short Duration Bond Fund		16,660,697		15,476,666
Sterling Capital Intermediate U.S. Government Fund		996,250		1,816,660
Sterling Capital Total Return Bond Fund		201,684,654		20,510,580
Sterling Capital Corporate Fund		14,698,580		6,862,066
Sterling Capital Securitized Opportunities Fund		4,709,509		520,028
Sterling Capital Kentucky Intermediate Tax-Free Fund		1,470,580		2,082,508
Sterling Capital Maryland Intermediate Tax-Free Fund		3,198,113		4,259,734
Sterling Capital North Carolina Intermediate Tax-Free Fund		24,139,827		25,592,559
Sterling Capital South Carolina Intermediate Tax-Free Fund		6,579,433		5,308,267

131

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

	Purchases		Sales
Sterling Capital Virginia Intermediate Tax-Free Fund	$	11,087,275	$	12,877,121
Sterling Capital West Virginia Intermediate Tax-Free Fund		4,693,175		5,692,516
Sterling Capital Strategic Allocation Conservative Fund		5,898,613		6,098,000
Sterling Capital Strategic Allocation Balanced Fund		17,753,091		18,165,000
Sterling Capital Strategic Allocation Growth Fund		14,662,078		14,831,000

Purchases and sales of U.S. government securities (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2015 were as follows:

	Purchases		Sales
Sterling Capital Long/Short Equity Fund	$	283,187	$	130,309
Sterling Capital Ultra Short Bond Fund		120,322		77,452
Sterling Capital Short Duration Bond Fund		9,567,577		9,355,920
Sterling Capital Intermediate U.S. Government Fund		7,847,208		10,137,772
Sterling Capital Total Return Bond Fund		98,247,892		56,628,318
Sterling Capital Securitized Opportunities Fund		4,502,472		2,371,862

4. Investments in Affiliated Issuers:

A summary of the Funds’ transactions in the shares of affiliated issuers during the period ended March 31, 2015 is as follows:

	Shares Held at September 30, 2014		Shares Purchased		Shares Sold		Shares Held at March 31, 2015		Value at March 31, 2015		Dividend Income October 1, 2014- March 31, 2015		Distributions and Net Realized Gain (Loss) October 1, 2014- March 31, 2015
Sterling Capital Strategic Allocation Conservative Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		—		379,037		40,500		338,537	$	3,415,837	$	9,548	$	1,999
Sterling Capital Equity Income Fund, Institutional Shares		194,874		13,377		115,845		92,406		1,735,378		18,291		298,790
Sterling Capital Long/Short Equity Fund, Institutional Shares		—		114,547		597		113,950		1,146,334		—		125
Sterling Capital Special Opportunities Fund, Institutional Shares		154,500		13,794		96,549		71,745		1,735,509		—		552,761
Sterling Capital Total Return Bond Fund, Institutional Shares		1,027,740		39,582		102,387		964,935		10,421,296		184,753		63,884
Total Affiliates		1,377,114		560,337		355,878		1,581,573	$	18,454,354	$	212,592	$	917,559
Sterling Capital Strategic Allocation Balanced Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		—		1,161,600		125,016		1,036,584	$	10,459,138	$	29,015	$	(2,155	)
Sterling Capital Equity Income Fund, Institutional Shares		602,678		28,627		348,263		283,042		5,315,522		55,751		884,501
Sterling Capital Long/Short Equity Fund, Institutional Shares		—		390,948		—		390,948		3,932,935		—		—
Sterling Capital Special Opportunities Fund, Institutional Shares		477,790		32,464		290,584		219,670		5,313,812		—		1,679,192
Sterling Capital Total Return Bond Fund, Institutional Shares		1,388,302		96,084		291,873		1,192,513		12,879,138		239,979		196,377
Total Affiliates		2,468,770		1,709,723		1,055,736		3,122,757	$	37,900,545	$	324,745	$	2,757,915

132

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

	Shares Held at September 30, 2014		Shares Purchased		Shares Sold		Shares Held at March 31, 2015		Value at March 31, 2015		Dividend Income October 1, 2014- March 31, 2015		Distributions and Net Realized Gain (Loss) October 1, 2014- March 31, 2015
Sterling Capital Strategic Allocation Growth Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		—		1,025,954		102,290		923,664	$	9,319,767	$	25,844	$	(2,903	)
Sterling Capital Equity Income Fund, Institutional Shares		533,434		9,891		291,115		252,210		4,736,509		49,661		744,559
Sterling Capital Long/Short Equity Fund, Institutional Shares		—		333,242		—		333,242		3,352,412		—		—
Sterling Capital Special Opportunities Fund, Institutional Shares		422,929		16,290		243,453		195,766		4,735,575		—		1,413,596
Sterling Capital Total Return Bond Fund, Institutional Shares		595,007		53,377		212,039		436,345		4,712,530		97,938		164,586
Total Affiliates		1,551,370		1,438,754		848,897		2,141,227	$	26,856,793	$	173,443	$	2,319,838

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’s 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, 2015:

	Prior to February 1, 2015				Effective February 1, 2015
	Contractual Fee Rate		Fee Rate after Contractual Waivers		Contractual Fee Rate		Fee Rate after Contractual Waivers
Sterling Capital Behavioral Large Cap Value Equity 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 Behavioral Small Cap Value Equity Fund		0.75%		0.75%		0.75%		0.75%
Sterling Capital Special Opportunities Fund		0.75%(3)		0.75%(3)		0.75%(3)		0.75%(3)
Sterling Capital Equity Income Fund		0.70%(4)		0.70%(4)		0.70%(4)		0.70%(4)
Sterling Capital Long/Short Equity Fund		1.50%		1.50%		1.50%		1.50%
Sterling Capital Behavioral International Equity Fund		0.80%		0.65%(5)		0.80%		0.65%(2)
Sterling Capital Ultra Short Bond Fund		0.20%		0.20%		0.20%		0.20%
Sterling Capital Short Duration Bond Fund		0.30%		0.28%(1)		0.30%		0.28%(2)
Sterling Capital Intermediate U.S. Government Fund		0.43%		0.43%		0.43%		0.35%(2)
Sterling Capital Total Return Bond Fund		0.37%		0.27%(6)		0.37%		0.27%(2)
Sterling Capital Corporate Fund		0.35%		0.35%		0.35%		0.35%
Sterling Capital Securitized Opportunities Fund		0.35%		0.31%(1)		0.35%		0.31%(2)
Sterling Capital Kentucky Intermediate Tax-Free Fund		0.45%		0.45%		0.45%		0.35%(2)
Sterling Capital Maryland Intermediate Tax-Free Fund		0.45%		0.45%		0.45%		0.35%(2)
Sterling Capital North Carolina Intermediate Tax-Free Fund		0.45%		0.45%		0.45%		0.35%(2)
Sterling Capital South Carolina Intermediate Tax-Free Fund		0.45%		0.45%		0.45%		0.35%(2)
Sterling Capital Virginia Intermediate Tax-Free Fund		0.45%		0.45%		0.45%		0.35%(2)
Sterling Capital West Virginia Intermediate Tax-Free Fund		0.45%		0.45%		0.45%		0.35%(2)
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 February 1, 2014 through January 31, 2015.

⁽²⁾ Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2015 through January 31, 2016.

⁽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.

133

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

⁽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.

⁽⁵⁾  Effective on November 28, 2014, Sterling Capital contractually agreed to limit the advisory fees paid by the Fund to 0.65% from November 28, 2014 through January 31, 2016.

⁽⁶⁾  Prior to September 29, 2014, Sterling Capital contractually agreed to limit the advisory fees paid by the Fund to 0.37%.

Pursuant to sub-advisory agreements with Sterling Capital, during the reporting periods, Highland Capital Healthcare Advisors, L.P., Gator Capital Management, Lucas Capital Management LLC, and Emancipation Capital, LLC served 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.”

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

For the period ended March 31, 2015, the Funds paid $40,885 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, 2015, the Distributor received $354,951 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, 2015 were $212,406. 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 $70,000 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. For the period ended December 31, 2014, the Trustee who was an interested person, as defined in the 1940 Act, of the Trust, but not affiliated with Sterling Capital was compensated at the 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 following which period such Trustee was compensated as set forth above.

134

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

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 receives additional compensation at the annual rate of $20,000, the Audit Committee Chairman receives additional compensation at the annual rate of $15,000, and the Chairman of the Nominations Committee receives additional compensation at the annual rate of $6,000. The fees are allocated across the Trust and the Sterling Capital Variable Insurance Funds based upon relative net assets.

6. Concentration of Credit Risk:

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

7. Line of Credit:

U.S. Bank, N.A. has made available a credit facility to the 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 29, 2016. During the period ended March 31, 2015, each of the following Funds utilized its line of credit:

	Average Interest Rate	Average Loan Balance			Number of Days Outstanding		Interest Expense Incurred			Maximum Amount Borrowed
Sterling Capital Behavioral Small Cap Value Equity Fund	1.25%		$	8,973,000		1		$	312		$	8,973,000
Sterling Capital Equity Income Fund	1.25%			3,085,000		2			215			5,607,000
Sterling Capital Long/Short Equity Fund	1.25%			4,715,750		12			2,012			19,492,000
Sterling Capital Virginia Intermediate Tax- Free Fund	1.25%			48,000		1			2			48,000

8. Federal Tax Information:

It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code of 1986, as amended, 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.

135

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

At September 30, 2014, 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 Losses		Long-term Losses		Amount		Expires
Sterling Capital Behavioral Large Cap Value Equity Fund	$	—	$	—	$	29,095,125		2017
Sterling Capital Behavioral Large Cap Value Equity Fund		—		—		10,325,708		2018
Sterling Capital Mid Value Fund		—		—		9,531,273		2017
Sterling Capital Behavioral Small Cap Value Equity Fund		—		—		900,225		2016
Sterling Capital Behavioral Small Cap Value Equity Fund		—		—		2,655,981		2017
Sterling Capital Ultra Short Bond Fund		43,774		30,675		—		—
Sterling Capital Short Duration Bond Fund		917,864		932,185		—		—
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 Intermediate U.S. Government Fund		—		—		6,852,937		2016
Sterling Capital Intermediate U.S. Government Fund		—		—		37,850		2019
Sterling Capital Total Return Bond Fund		2,987,377		371,984		—		—
Sterling Capital Securitized Opportunities Fund		1,425,099		261,397		—		—
Sterling Capital Strategic Allocation Conservative Fund		—		—		6,458,015		2018
Sterling Capital Strategic Allocation Balanced Fund		—		—		3,907,944		2018
Sterling Capital Strategic Allocation Balanced Fund		—		—		3,964,763		2019
Sterling Capital Strategic Allocation Growth Fund		—		—		5,077,054		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, 2014 were as follows:

	Distributions paid from
	Ordinary Income		Net Long-Term Gains		Total Taxable Distributions		Tax Exempt Distributions		Total Distributions Paid*
Sterling Capital Behavioral Large Cap Value Equity Fund	$	3,094,251	$	—	$	3,094,251	$	—	$	3,094,251
Sterling Capital Mid Value Fund		3,012,500		38,657,111		41,669,611		—		41,669,611
Sterling Capital Behavioral Small Cap Value Equity Fund		5,104,297		10,213,996		15,318,293		—		15,318,293
Sterling Capital Special Opportunities Fund		2,741,737		86,313,447		89,055,184		—		89,055,184
Sterling Capital Equity Income Fund		38,056,276		63,034,772		101,091,048		—		101,091,048
Sterling Capital Ultra Short Bond Fund		438,098		—		438,098		—		438,098
Sterling Capital Short Duration Bond Fund		2,719,637		—		2,719,637		—		2,719,637
Sterling Capital Intermediate U.S. Government Fund		1,440,912		—		1,440,912		—		1,440,912
Sterling Capital Total Return Bond Fund		17,912,129		—		17,912,129		—		17,912,129
Sterling Capital Corporate Fund		2,127,026		814,356		2,941,382		—		2,941,382
Sterling Capital Securitized Opportunities Fund		1,254,105		—		1,254,105		—		1,254,105
Sterling Capital Kentucky Intermediate Tax-Free Fund		1		—		1		439,323		439,324
Sterling Capital Maryland Intermediate Tax-Free Fund		—		—		—		763,506		763,506
Sterling Capital North Carolina Intermediate Tax-Free Fund		199		—		199		5,036,521		5,036,720
Sterling Capital South Carolina Intermediate Tax-Free Fund		16,127		—		16,127		1,469,858		1,485,985
Sterling Capital Virginia Intermediate Tax-Free Fund		35		—		35		2,744,709		2,744,744
Sterling Capital West Virginia Intermediate Tax-Free Fund		3,760		—		3,760		2,425,001		2,428,761
Sterling Capital Strategic Allocation Conservative Fund		416,730		—		416,730		—		416,730
Sterling Capital Strategic Allocation Balanced Fund		632,180		—		632,180		—		632,180
Sterling Capital Strategic Allocation Growth Fund		353,149		—		353,149		—		353,149

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

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 Equity Income Fund	$	2,760,315
Sterling Capital Intermediate U.S. Government Fund		246,427

136

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2015 (Unaudited)

At March 31, 2015, 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 Behavioral Large Cap Value Equity Fund	$	248,429,106	$	43,587,288	$	(5,417,702	)	$	38,169,586
Sterling Capital Mid Value Fund		605,591,442		205,729,640		(40,184,691	)		165,544,949
Sterling Capital Behavioral Small Cap Value Equity Fund		116,747,257		22,007,214		(2,642,542	)		19,364,672
Sterling Capital Special Opportunities Fund		623,741,574		288,007,018		(12,057,394	)		275,949,624
Sterling Capital Equity Income Fund		1,397,281,607		400,701,357		(11,468,018	)		389,233,339
Sterling Capital Long/Short Equity Fund		77,221,527		6,295,263		(8,779,596	)		(2,484,333	)
Sterling Capital Behavioral International Equity Fund		23,166,349		992,156		(756,783	)		235,373
Sterling Capital Ultra Short Bond Fund		43,864,602		21,055		(321,358	)		(300,303	)
Sterling Capital Short Duration Bond Fund		91,738,131		279,359		(809,920	)		(530,561	)
Sterling Capital Intermediate U.S. Government Fund		33,019,964		1,067,002		(11,366	)		1,055,636
Sterling Capital Total Return Bond Fund		676,512,374		18,774,496		(3,572,100	)		15,202,396
Sterling Capital Corporate Fund		57,077,278		1,487,362		(228,140	)		1,259,222
Sterling Capital Securitized Opportunities Fund		41,170,534		1,011,043		(113,800	)		897,243
Sterling Capital Kentucky Intermediate Tax-Free Fund		13,848,846		968,158		(476	)		967,682
Sterling Capital Maryland Intermediate Tax-Free Fund		35,186,168		1,577,807		(4,984	)		1,572,823
Sterling Capital North Carolina Intermediate Tax-Free Fund		188,753,565		11,020,950		(69,899	)		10,951,051
Sterling Capital South Carolina Intermediate Tax-Free Fund		66,865,889		2,963,905		(8,801	)		2,955,104
Sterling Capital Virginia Intermediate Tax-Free Fund		114,572,067		5,995,348		(14,306	)		5,981,042
Sterling Capital West Virginia Intermediate Tax-Free Fund		97,376,260		4,768,708		(23,914	)		4,744,794
Sterling Capital Strategic Allocation Conservative Fund		17,692,030		1,168,764		—			1,168,764
Sterling Capital Strategic Allocation Balanced Fund		36,344,926		2,332,308		—			2,332,308
Sterling Capital Strategic Allocation Growth Fund		25,373,805		1,895,711		—			1,895,711

9. Subsequent Events:

Management has evaluated the need for the disclosure and/or adjustments resulting from subsequent events through the date the financial statements were issued, and has noted the following item:

On May 15, 2015, the Board of Trustees approved a change in the name of the Sterling Capital Strategic Allocation Conservative Fund to the Sterling Capital Diversified Income Fund and also approved a change in the investment objective of the Fund.

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BOARD CONSIDERATION OF ADVISORY AGREEMENTS (UNAUDITED)

Continuation of Current Advisory Agreement and Sub-Advisory Agreements

The Board of Trustees conducted in-person meetings in August and November 2014 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 (the “Funds”), for a new term running through January 31, 2016. The Board of Trustees also considered the continuance of the sub-advisory agreements of Sterling Capital with each of Lucas Capital Management, Gator Capital Management and Highland Capital Healthcare Advisors, L.P. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”), with respect to the Sterling Capital Long/Short Equity Fund (the “Long/Short Fund”), each for a new term running through January 31, 2016. The above referenced agreements are collectively referred to herein as the “Advisory Agreements” and the Adviser and the Sub-Advisers are collectively referred to herein as the “Advisers.”

The Trustees reviewed extensive material in connection with their consideration of the Advisory Agreements, 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 a memorandum detailing the legal standards for review of the Advisory Agreements. 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. Presentations were also provided by each Sub-Adviser. The Board also received and considered profitability information from the Sub-Advisers with respect to the Long/Short Fund. 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 Agreements, each Trustee attributed different weights to various factors involved in an analysis of the Advisory Agreements, and in each case no factor alone was considered determinative. The Trustees determined that the arrangements between the Trust and the Advisers, as provided in the Advisory Agreements, were fair and reasonable and that the continuance of the Advisory 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.

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 Agreements. 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 conduct periodic meetings with representatives of each Fund’s portfolio management team over the course of the year, and periodically receive “deep dive” attribution analyses regarding specific Funds. The Trustees considered the background and experience of each 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 Advisers to provide high quality service to the applicable Funds.

The Trustees received information concerning the investment philosophy and investment processes applied or to be applied by the Advisers in managing each Fund as well as each Adviser’s Form ADV. The Trustees also considered information regarding regulatory compliance and compliance with the investment policies of the Funds. The Trustees evaluated each Adviser’s trading practices, and considered the procedures of the Advisers designed to fulfill the Advisers’ fiduciary duty to the Funds with respect to possible conflicts of interest, including the Advisers’ codes 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 Advisers, the nature and extent of responsibilities was consistent with mutual fund industry norms, and the quality of the services provided or to be provided by the Advisers was or was expected to be satisfactory or better.

Investment Performance

The Trustees considered the performance results of each Fund over various periods in absolute terms and relative to each Fund’s benchmark and peer group. In conducting their review, the Trustees focused particular attention on cases where a Fund’s 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.

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.

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

The Trustees considered peer group 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 2016 (and discussed below under “Economies of Scale”).

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 management of cash flows and the need to comply with extensive and complex restrictions set by applicable regulation or established in Fund 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 Advisers. In determining whether the investment advisory fees were reasonable, the Trustees considered profitability information provided by the Advisers with respect to the services they provide to the Funds. 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 considered that Sterling Capital had reduced the total expense ratios for a number of Funds in part through fee waivers, including new fee waivers agreed to as part of the 2014 contract review process for the Sterling Capital Total Return Bond Fund, Sterling Capital Intermediate U.S. Government 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 and Sterling Capital West Virginia Intermediate Tax-Free Fund. In addition, the Trustees noted that Sterling Capital had agreed to implement a new investment advisory fee breakpoint for each of the Sterling Capital Equity Income Fund and Sterling Capital Special Opportunities Fund as part of the 2013 contract review process. The Trustees found that the asset levels of the other Funds were not currently so large as to warrant formal contractual breakpoints.

Approval of Sub-Advisory Agreement for the Sterling Capital Long/Short Equity Fund

The Board of Trustees, at meetings held on August 20-21, 2014, formally considered the approval of a Sub-Advisory Agreement (the “New Sub-Advisory Agreement”) between Sterling Capital (the “Adviser”) and Emancipation Capital LLC (“Emancipation Capital”) with respect to the Long/Short Fund.

With respect to the Long/Short Fund, the Trustees’ determination to approve the New Sub-Advisory Agreement was based on a comprehensive evaluation of all information provided to them. In the process of considering the New Sub-Advisory Agreement, the Trustees considered information regarding, among other things, the nature, extent and quality of services to be provided by the Adviser and Emancipation Capital. The Trustees noted that the Adviser would dedicate personnel and resources to overseeing Emancipation Capital’s activities with respect to the Long/Short Fund and that the Adviser would provide Emancipation Capital with investment parameters with respect to its management of a portion of the Long/Short Fund’s assets. The Trustees received a detailed presentation from Emancipation Capital that included information regarding, among other things, its portfolio construction process, its 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 Sub-Advisory Agreement, each Trustee attributed different weights to various factors involved in an analysis of the New Sub-Advisory Agreement, and in each case no factor alone was considered determinative. The

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Trustees determined that the terms of the arrangement between the Adviser and Emancipation Capital, as provided in the New Sub-Advisory Agreement, was fair and reasonable and that the approval of the New Sub-Advisory Agreement was in the best interests of the Long/Short 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 and the Sub-Advisers

The Trustees received and considered information regarding the nature, extent, and quality of the services expected to be provided by Emancipation Capital to the Long/Short Fund under the New Sub-Advisory Agreement. The Trustees considered the proposed services to be provided to the Long/Short Fund by Emancipation Capital. The Board also considered the Adviser’s specific responsibilities with respect to oversight of Emancipation Capital 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 Long/Short Fund. The Trustees concluded that the nature and quality of services that Emancipation Capital would provide to the Long/Short Fund appeared consistent with both those already provided to the Fund by other sub-advisors and industry norms.

The Trustees received information concerning the investment philosophy and investment processes to be applied by Emancipation Capital in managing the Long/Short Fund as well as Emancipation Capital’s Form ADV. The Trustees also considered information regarding regulatory compliance and reviewed Emancipation Capital’s compliance policies and procedures. The Trustees considered the procedures of Emancipation Capital designed to fulfill Emancipation Capital’s fiduciary duty to the Long/Short Fund with respect to possible conflicts of interest, including Emancipation Capital’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 Emancipation Capital, the nature and extent of responsibilities was consistent with mutual fund industry norms, and that the quality of the services to be provided by Emancipation Capital was expected to be satisfactory or better.

Investment Performance

The Trustees considered Emancipation Capital’s performance record managing a similar strategy to what it will provide for the Long/Short Fund, although noted that different investment restrictions, cash flows and other factors could lead to divergent future performance.

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

The Trustees considered that Emancipation Capital would receive the same sub-advisory fee as the other sub-advisors to the Long/Short Fund. The Trustees noted that Emancipation Capital’s sub-advisory fees were lower than the fees Emancipation Capital typically receives for managing other similar accounts.

The Trustees noted that there was no information available with respect to Emancipation Capital’s profitability from the Long/Short Fund because it had not yet commenced serving as sub-advisor to the Long/Short Fund.

Based on the foregoing, the Trustees concluded that the fees proposed under the New Sub-Advisory Agreement with the Adviser and Emancipation Capital were fair and reasonable, in light of the services and benefits expected to be provided to the Long/Short 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 Long/Short Fund’s assets. The Trustees found that the asset levels of the Long/Short Fund were not currently so large as to warrant formal contractual breakpoints and the Fund was unlikely to build its assets to such a point during the initial term of the New Sub-Advisory Agreement. The Trustees also noted that Emancipation Capital’s sub-advisory fees would be paid by the Adviser out of the Adviser’s investment advisory fees, not by the Fund.

Approval of Initial Advisory Agreement for the Sterling Capital Behavioral International Equity Fund

The Board of Trustees, at meetings held in August, October and November 2014, formally considered the approval of an investment advisory agreement (the “New Advisory Agreement”) between the Trust and Sterling Capital, with respect to the Sterling Capital Behavioral International Equity Fund (the “International Fund”).

With respect to the International Fund, the Trustees’ determination to approve the New Advisory Agreement was based on a comprehensive evaluation of all information provided to them. In the process of considering the New Advisory Agreement, the Trustees considered information regarding, among other things, the nature, extent and quality of services to be provided by Sterling Capital. The Trustees received a detailed presentation from Sterling Capital that included information regarding, among other things, Sterling Capital’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 Advisory Agreement, each Trustee attributed different weights to various factors involved in an analysis of the New Advisory Agreement, and in each case no factor alone was considered determinative. The Trustees determined that the terms of the New Advisory Agreement were fair and reasonable and that the approval of the New Advisory Agreement was in the best interests of the International Fund and its shareholders.

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

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 International Fund under the New Advisory Agreement. The Trustees considered the expertise of the International Fund’s proposed portfolio management team generally and the proposed services to be provided to the International Fund by Sterling Capital. The Trustees concluded that the nature and quality of services that Sterling Capital would provide to the International Fund appeared consistent with both those already provided to the Sterling Capital 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 in managing the International Fund as well as the Adviser’s Form ADV. The Trustees also considered information regarding regulatory compliance and the Adviser’s compliance policies and procedures. The Trustees considered the procedures of the Adviser designed to fulfill the Adviser’s fiduciary duty to the International Fund 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 by the Adviser was satisfactory or better.

Investment Performance

The Trustees noted that the International Fund had not commenced operations at the time of the November 2014 Board meeting and had no historical investment performance. The Trustees considered information regarding the performance of an account managed by Sterling Capital utilizing a substantially similar strategy. The Trustees also noted the strong performance of the Fund’s management team with implementing other “behavioral science” strategies.

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 to be charged by Sterling Capital to the International 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 considered information from Sterling Capital regarding fees for a separate account managed by Sterling Capital with an investment objective and strategy similar to those of the Fund. The Trustees noted that a representative of Sterling Capital explained that management of the Fund was a much more intensive process than management of the separate account, including management of cash flows and the need to comply with extensive and complex restrictions set by applicable regulation or established in the Fund’s disclosure documents, and therefore the Trustees concluded that the differences between the services that Sterling Capital provides to the Fund and those it provides to the separate account substantially limit the probative value of comparisons to those other clients.

In the context of the profitability of the Adviser, the Trustees noted that the International Fund had not commenced operations at the time of the November 2014 board meeting and therefore the Adviser had not earned any investment advisory fees with respect to the International Fund.

Based on the foregoing, the Trustees concluded that the fees proposed under the New Advisory Agreement with Sterling Capital were fair and reasonable, in light of the services and benefits provided or expected to be provided to the International 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 International Fund’s assets. The Trustees found that the asset levels of the International Fund were not currently so large as to warrant formal contractual breakpoints and the International Fund was unlikely to build its assets to such a point during the initial term of the New Advisory Agreement.

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Sterling Capital Funds

March 31, 2015

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.

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INVESTMENT ADVISOR

Sterling Capital Management LLC

Two Morrocroft Centre

4064 Colony Road, Suite 300

Charlotte, NC 28211

DISTRIBUTOR

Sterling Capital Distributors, 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    5/22/2015

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    5/22/2015

By (Signature and Title)     /s/ Todd M. Miller
	Todd M. Miller, Treasurer
	(principal executive officer)
Date    5/22/2015