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)
3605 Glenwood Avenue, Suite 100
Raleigh, NC 27612
(Address of principal executive offices) (Zip code)
James T. Gillespie, President
Sterling Capital Funds
3605 Glenwood Avenue, Suite 100
Raleigh, NC 27612
(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: September 30, 2015
EXPLANATORY NOTE: Registrant is filing this amendment to its Form N-CSR for the fiscal year ended September 30, 2015, originally filed with the Securities and Exchange Commission on December 4, 2015 (Accession Number 0001193125-15-395045). The sole purpose of this amendment is to correct the audit committee financial expert named in Item 3.
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.
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Table of Contents
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Letter from the President and the Investment Advisor
Dear Shareholders:
We are pleased to present this Sterling Capital Funds’ annual report covering the 12 months between October 1, 2014 and September 30, 2015. U.S. equities performed well early in the period under review, but a sharp sell-off in August undid most of the earlier gains, leaving stocks to post modest losses for the fiscal year. Slowing economic growth in international markets, especially China, was a major factor dragging on stock returns. The concern over global growth also drove down commodity prices, including the price of oil. Corporate profits were weaker than levels seen in recent years and the U.S. Federal Reserve’s decision to keep interest rates at a near-zero target sustained investor uncertainty and concerns. Fixed income securities posted modest gains during the period.
A Mixed Economic Picture
The U.S. economy continued to grow during the period under review, but at a slower rate than during the previous year and with a great deal of uncertainty. The domestic economy grew at an annualized rate of 2.1% during the fourth quarter of 2014, followed by a 0.6% rate in the first quarter of 2015 as record cold weather hindered consumption and a dock workers’ strike in the Pacific Northwest stalled trade. The economy rebounded in the second quarter of 2015, however, posting a GDP growth rate of 3.9% despite persistent economic headwinds both domestically and abroad.
Several key areas of the U.S. economy continued to show progress toward a recovery. The unemployment rate fell to 5.1% in August and there was a decline in the initial jobless claims. Yet job growth itself slowed somewhat towards the end of the period, dropping below market expectations in August and September even as the unemployment level remained low.
There were also signs of recovery in consumer-related sectors. The housing market continued to recover during the period, albeit at a gradual pace, with an increase in building permits and robust home sales. Consumer confidence hit multi-year highs during the period and consumer spending climbed steadily. Retail sales were more mixed throughout the period, however. They declined sharply during the winter and remained essentially flat during the fall.
Industrial production and manufacturing declined during the period, however, while business confidence also fell. Low energy and commodity prices dragged on oil and gas production as well as mining production, yet the same low oil costs also contributed to a sharp uptick in auto sales.
International trade was a clear area of weakness in the U.S. economy during the 12-month period. The U.S. dollar strengthened rapidly early in the period and remained strong throughout the end of the fiscal year. The stronger dollar encouraged imports and discouraged exports. Weaker overseas economies also dragged on
U.S. exports as they led to weaker global demand for U.S. commodities and other goods.
Inflation remained low during the period, by historical standards, and gas and oil prices fell sharply.
Uncertainty Lingers
The Fed’s decision to postpone a much anticipated increase in short-term interest rates added to the uncertainty investors were already feeling from mixed economic indicators. The Fed was widely expected to raise rates at its September meeting, but concerns about weak growth abroad, particularly in China, as well as the negative impact on exports of a stronger dollar, led to the decision to delay any rate hike.
The ongoing slowdown in China had a profound impact on economies throughout the world, weakening commodity prices and diminishing demand for many exports. The debt crisis in Greece added to the global economic uncertainty, as did further turmoil in Ukraine and halting efforts to negotiate a historic trade agreement among nations of the Pacific Rim. In particular, the Russian economy continued to suffer from the impacts of international sanctions and low oil prices.
Despite the Greek crisis, the economy of the eurozone managed to post stronger growth. Improvements in European labor markets and industrial output helped to buoy investor hopes that the eurozone was finally on firm economic footing.
Stocks End Down, Bonds Slightly Up
The stock market began the 12-month period with a sharp sell-off driven by several factors, including the winding down of the Fed’s long-running bond buying program and ongoing economic weakness in many global economies. The decline was offset in subsequent weeks by a rally fueled in part by a spike in mergers and acquisitions in a few sectors, including the health care sector. Tumbling oil prices and healthy earnings also buoyed stock prices. U.S. stocks made modest gains through the middle of the period before taking another steep dive in August 2015. That sell-off was triggered in part by dramatic market losses in China and signs of weakness in other overseas economies. Ultimately, equities made no significant gains during the period, and some sectors saw significant losses. The energy sector posted the largest losses, while the utilities and materials sectors also fared poorly.
The S&P 500® Index1(S&P 500) fell 0.61% during the 12 months under review. Small-cap stocks outperformed larger companies, with the Russell 2000® Index of small-cap stocks gaining 1.25% while the Russell 1000® Index fell 0.61%. International stocks, as measured by the MSCI EAFE Index, returned -8.66% for the period.
Fixed income markets made modest gains during the period. Slowing growth overseas made the U.S. economy more attractive to investors, helping push up bond prices in the U.S. and strengthening the dollar. Investors favored relatively safe areas of the bond market, resulting in
widening yield spreads for riskier bonds such as high-yield securities. Interest rates decreased in late 2014 and early 2015, boosting the performance of U.S. Treasuries and many other categories of bonds. Rates rose over the next several months in anticipation of a rate hike, only to decline as the Fed chose to postpone any increase. The Barclay’s U.S. Aggregate Bond Index returned 2.94% during the period.
Our perspective
The U.S. economy improved in many areas this year, but GDP growth has remained slow, and we believe there are signs it will continue to remain slow into 2016. U.S. economic growth has followed the same start-and-stop pattern since the current recovery began in 2009. Weakness has remained in the domestic economy, while slowing growth overseas is likely to pose its own set of challenges in our view. Despite these hurdles, however, we are optimistic for modest economic growth in the U.S., driven in part by improvements in employment and the service sector, which is slowing but should remain positive, in our estimation.
Given the current economic environment, we have continued to recommend downside protection and a well-diversified portfolio. Stocks with strong financials and attractive valuations are likely to outperform, in our estimation. Overall, we believe that the stock market can be expected to present better relative value than the fixed income market, which continues to offer low yields. 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, and we encourage you to call us at 1-800-228-1872 with any questions.
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 Behavioral Large Cap Value Equity Fund
Portfolio Managers
Sterling Capital Behavioral Large Cap Value Equity Fund (formerly known as Sterling Capital Large Cap Value Diversified Fund) (the “Fund”) is managed by Robert W. Bridges and Robert O. Weller, Executive Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”).
Robert W. Bridges, CFA
Mr. Bridges, CFA, Executive Director joined Sterling Capital in 1996 and has been a portfolio manager of the Fund since 2013. He has investment experience since 1991. He is a graduate of Wake Forest University where he received his BS in Business.
Robert O. Weller, CFA
Mr. Weller, CFA, Executive Director joined Sterling Capital in 2012 and has been a portfolio manager of the Fund since 2013. He has investment experience since 1996. He is a graduate of Loyola University Maryland where he received his BBA in Finance.
Investment Considerations
The Fund may invest in undervalued securities which may not appreciate in value as anticipated or remain undervalued for longer than anticipated. Investments made in large- to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory as well as more sensitivity to adverse conditions. The Fund may invest in foreign securities which may be more volatile and less liquid due to currency fluctuations, political instability, social and economic risks. There is no guarantee that the strategy used by the portfolio managers will produce the desired results.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmark, the Russell 1000 ® Value Index, during the period.
Q. What factors affected the Fund performance?
A. The Fund changed its name in February 2015. The Fund was formerly the Sterling Capital Large Cap Value Diversified Fund. The new name is a reflection of the Fund’s strategy, which employs an investment process rooted in principles of behavioral finance. This process is specifically designed to capitalize upon known investor biases and heuristics (mental shortcuts) by taking into account the impact on markets of behavioral factors such as greed, fear and ego.
The U.S. stock market climbed sharply during the first two-thirds of the period. Those gains were largely reversed later in the period, during the late summer and early fall, as an economic slowdown in China and other emerging markets dragged on stock returns. Ongoing weakness in commodity markets and uncertainty stemming from the U.S. Federal
Reserve’s decision to postpone raising interest rates also acted as a drag on investor confidence and detracted from absolute results.
The Fund’s Institutional Shares outperformed its benchmark during this period primarily due to its exposure to behaviorally-based momentum factors designed to capture greed and ego. Its exposure to behaviorally-based value factors that seek to capture investors’ fears also contributed modestly to relative performance. These behavioral factors led the Fund to take on a greater-than-benchmark level of exposure to the health care equipment and services sector. In particular, two energy companies and two health care companies performed well during the period and added to relative results.
The Fund took an overweight stake in two insurance companies that dragged on its performance relative to the benchmark. Overweight positions in diversified financials, particularly two investment banks, also hurt relative performance as those companies underperformed. Stock selection in the utilities and food and staples areas detracted modestly from relative performance.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
2 | ||||
* | Reflects 5.75% maximum sales charge.
| |
** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%.
| |
*** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 10/9/92 | -8.40% | 9.31% | 3.04% | ||||
Class B Shares** | 1/1/96 | -7.35% | 9.65% | 3.03% | ||||
Class C Shares*** | 2/1/01 | -3.52% | 9.78% | 2.87% | ||||
Institutional Shares | 10/9/92 | -2.55% | 10.89% | 3.92% | ||||
Russell 1000® Value Index |
N/A |
-4.42% |
12.29% |
5.71% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Russell 1000® Value Index is a widely recognized index of common stocks that measures the performance of the large-cap value sector of the U.S. equity market. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
3 | ||||
Sterling Capital Mid Value Fund
Portfolio Manager
Timothy P. Beyer, CFA
Sterling Capital Mid Value Fund is managed by Timothy P. Beyer, CFA, Managing Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Beyer joined Sterling Capital in 2004 and has been a portfolio manager of the Fund since 2005. He has investment experience since 1989. Mr. Beyer is a graduate of East Carolina University where he received his BSBA in Finance.
Investment Considerations
The Fund may invest in undervalued securities that may not appreciate in value as anticipated or remain undervalued for longer than anticipated. Investments made in small to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory and are more sensitive to adverse conditions. The Fund may invest in foreign securities, which may be more volatile and less liquid due to currency fluctuation, political instability, social and economic risks.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmark, the Russell Midcap® Value Index.
Q. What factors affected the Fund’s performance?
A. The equity markets rallied in the first part of the 12-month period, and then gave back much of those gains in August and September. As a result, the Fund’s absolute performance was nearly flat for the year ending September 30th. The Federal Reserve’s September decision to keep interest rates at near-zero levels contributed to investor concerns late in the period, as did further signs of slowing economic growth in China. Yet strong performance in a number of sectors, including the health care and financial sectors, helped boost the Fund’s absolute performance. A benign hurricane season had a positive impact on the insurance industry, which also added to results.
The Fund’s Institutional Shares outperformed its benchmark for the
period. A large overweight position in financial services, as well as stock selection within that sector, added to relative results. Specifically, the Fund benefited from strong performance from a debit and credit card payment processer as well as big gains from a leading insurer, and was one of the Fund’s largest holdings. The Fund’s underweight allocation to the energy sector also helped its performance relative to its benchmark, given that the energy sector suffered large declines due to the steep drop in the price of oil.
The Fund’s large overweight position in consumer discretionary stocks, particularly retailers and media companies, negatively impacted its relative performance. Apparel retailers have been struggling for several years with declining mall traffic and a shift in consumer spending from clothing to more home- and auto-related purchases. That trend remained in place for the period. In addition, traditional television media companies have witnessed a decline in advertising sales as viewers seek more on-demand offerings and streaming of their favorite shows.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
4 | ||||
* | Reflects 5.75% maximum sales charge.
| |
** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%.
| |
*** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||
Class A Shares* | 8/1/96 | -6.40% | 10.24% | 6.84% | ||||||
Class B Shares** | 7/25/01 | -5.14% | 10.59% | 6.81% | ||||||
Class C Shares*** | 7/25/01 | -1.43% | 10.73% | 6.64% | ||||||
Institutional Shares | 8/1/96 | -0.43% | 11.84% | 7.71% | ||||||
Class R Shares | 2/1/101 | -0.89% | 11.06% | 7.33% | ||||||
Russell Midcap® Value Index |
N/A |
-2.07% |
13.15% |
7.42% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of the Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower. |
The Fund is measured against the Russell Midcap® Value Index, an unmanaged index, which measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
5 | ||||
Sterling Capital Behavioral Small Cap Value Equity Fund
Portfolio Managers
Sterling Capital Behavioral Small Cap Value Equity Fund (formerly known as Sterling Capital Small Cap Value Diversified Fund) (the “Fund”) is managed by Robert W. Bridges and Robert O. Weller, Executive Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”).
Robert W. Bridges, CFA
Mr. Bridges, CFA, Executive Director joined Sterling Capital in 1996 and has been a portfolio manager of the Fund since 2013. He has investment experience since 1991. He is a graduate of Wake Forest University where he received his BS in Business.
Robert O. Weller, CFA
Mr. Weller, CFA, Executive Director joined Sterling Capital in 2012 and has been a portfolio manager of the Fund since 2013. He has investment experience since 1996. He is a graduate of Loyola University Maryland where he received his BBA in Finance.
Investment Considerations
The Fund may invest in undervalued securities, which may not appreciate in value as anticipated or remain undervalued for longer than anticipated. Investments made in small to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory and are more sensitive to adverse conditions. The Fund may invest in foreign securities, which may be more volatile and less liquid due to currency fluctuations and political, social and economic instability. There is no guarantee that the strategy used by the portfolio managers will produce the desired results.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmark, the Russell 2000® Value Index.
Q. What factors affected the Fund’s performance?
A. The Fund changed its name in February 2015. The Fund was formerly the Sterling Capital Small Cap Value Diversified Fund. The new name is a reflection of the Fund’s strategy, which employs an investment process rooted in principles of behavioral finance. This process is specifically designed to capitalize upon known investor biases and heuristics (mental shortcuts) by taking into account the impact on markets of behavioral factors such as greed, fear and ego.
The U.S. stock market climbed sharply during the first two-thirds of the period. Those gains were largely reversed later in the period, however, as an economic slowdown in China and other emerging markets dragged on stock returns during the late summer and early fall. Other factors affecting the Fund’s absolute performance included ongoing weakness in commodity markets and uncertainty stemming
from the U.S. Federal Reserve’s decision to postpone raising interest rates. This uncertainty also acted as a drag on investor confidence and detracted from absolute results. Small-cap stocks in particular suffered from the impacts of this uncertainty, which led investors to seek the relative safety of larger-cap companies.
The Fund’s Institutional Shares outperformed its benchmark during this period primarily due to its exposure to behaviorally-based momentum factors designed to capture greed and ego. Its exposure to behaviorally-based value factors that captured investors’ fears also contributed more modestly to relative performance. Exposure to these behavioral factors involved an overweight position in the financials and transportation sectors. Significant stakes in two insurance companies and two airline companies played a particularly notable role in the Fund’s strong performance relative to its benchmark.
Much of the Fund’s underperformance can be attributed to an overweight allocation to commercial and professional services companies. Overweight positions in the retail sector, particularly in two apparel retailers, also hurt relative performance.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
6 | ||||
* | Reflects 5.75% maximum sales charge.
| |
** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%.
| |
*** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 2/1/101 | -3.64% | 9.21% | 6.36% | ||||
Class B Shares** | 2/1/101 | -3.56% | 9.39% | 6.54% | ||||
Class C Shares*** | 2/1/101 | 1.37% | 9.67% | 6.54% | ||||
Institutional Shares | 1/2/97 | 2.42% | 10.79% | 7.15% | ||||
Class R Shares | 2/1/101 | 1.84% | 10.42% | 6.96% | ||||
Russell 2000® Value Index |
N/A |
-1.60% |
10.17% |
5.35% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class A, B, C and R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares and have been adjusted for maximum CDSC to the applicable class but does not include 12b-1 fees, which if reflected, would have caused performance of Class A, B C and R Shares to be lower. The performance information for Institutional Shares (formerly known as Sterling Shares) prior to 12/18/06 is based on the performance of the Institutional Shares of the Fund’s predecessor, Sterling Capital Small Cap Value Fund, a series of The Advisors’ Inner Circle Fund (the “Predecessor Fund”), which transferred all of its assets and liabilities to the Fund pursuant to a reorganization. The performance of the Fund’s Institutional Shares would have been different because the Fund’s Institutional Shares have different expenses than the Predecessor’s Institutional Shares. |
The Russell 2000® Value Index is a widely recognized index of common stocks that measures the performance of the small-cap value sector of the U.S. equity market. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
7 | ||||
Sterling Capital Special Opportunities Fund
Portfolio Manager
George F. Shipp, CFA
Sterling Capital Special Opportunities Fund (the “Fund”) is managed by George F. Shipp, CFA, Senior Managing Director and portfolio manager for Sterling Capital Management LLC. Mr. Shipp has been the Fund’s manager since 2003 and also manages the Sterling Capital Equity Income Fund. He has investment experience since 1982. Mr. Shipp is a graduate of the University of Virginia and received his MBA at the Darden Graduate School of Business.
Investment Considerations
The Fund is subject to investment style risk, which depends on the market segment in which the Fund is primarily invested. An investment in growth stocks may be particularly sensitive to market conditions while value stocks may be undervalued for longer than anticipated. The Fund may invest in foreign securities subject to risks such as currency volatility and political and social instability or small capitalization companies subject to greater volatility and less liquidity due to limited resources or product lines. The Fund may engage in writing covered call options on securities. By writing covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the premium and the strike price, but continues to bear the risk of a decline in the stock price. While the Fund receives premiums for writing covered call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmarks, the S&P 500® Index and the Russell 3000® Index.
Q. What factors affected the Fund’s performance?
A. Stocks performed well for the first two-thirds of the fiscal year, as the strengthening U.S. economy helped the Russell 3000® post a 9% total return through mid-May. Those gains had disappeared by fiscal year end, however. A combination of a persistently strong U.S. dollar, a slowdown in China and other emerging markets, weakness in commodity markets including energy, and a perception that the Federal Reserve missed an opportunity to step back from its zero interest rate policy all pressured corporate profits. These factors also added to investor uncertainty and thus to volatility. The resulting drop in overall investor confidence ultimately helped lead investors to shift their preference from a “growth at any price” mentality, to one preferring “quality” businesses that we believe should favor our investing style.
The Fund’s Institutional Shares outperformed its benchmarks. Overweight positions in the technology and health care sectors helped the Fund’s relative returns, as did stock selection within those sectors — particularly among companies with strong domestic exposure. The Fund’s technology holdings included the world’s leading internet search
and digital advertising company, a leading developer of online games, a leading internet security company, and the leading provider of “content delivery services,” which help make online experiences faster and safer. Among health care stocks, the Fund’s shares of the nation’s leading hospital chain, a physician services operation, a diagnostic laboratory testing company and the nation’s largest health insurer outperformed shares of multinational companies, which faced greater challenges due to the strong U.S. dollar. Though the Fund’s energy holdings hurt the fund’s absolute returns, a sale of three positions during the fiscal year’s first half mitigated potential losses and improved relative performance. The Fund also benefited from an underweight allocation in the materials and energy sectors, two of the market’s worst-performing sectors during the period.
Two well-established media companies dragged on the Fund’s performance, as ratings for traditional TV declined, losing share to newer online and mobile viewing platforms. The Fund suffered a loss in a leading credit card and banking company, appearing to coincide with the Fed’s reluctance to raise interest rates. The Fund’s selection of the nation’s leading organic foods grocer so far has proven to be a poor investment, offsetting better performance elsewhere in consumer staples. Finally, the Fund did not own any utility companies, a relatively strong-performing sector during the 12-month period.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
8 | ||||
* | Reflects 5.75% maximum sales charge.
| |
** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%.
| |
*** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 6/2/03 | -2.20% | 11.50% | 8.50% | ||||
Class B Shares** | 6/2/03 | -0.89% | 11.85% | 8.49% | ||||
Class C Shares*** | 6/2/03 | 2.99% | 11.98% | 8.33% | ||||
Institutional Shares | 6/2/03 | 4.02% | 13.11% | 9.43% | ||||
Class R Shares | 2/1/101 | 3.51% | 12.55% | 9.17% | ||||
S&P 500® Index | N/A | -0.61% | 13.34% | 6.80% | ||||
Russell 3000® Index |
N/A |
-0.49% |
13.28% |
6.92% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks and represents the reinvestment of dividends and capital gains.
1 | Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower. |
The Fund is measured against the S&P 500® Index and the Russell 3000® Index, unmanaged indices that are generally considered to be representative of the performance of the stock market as a whole. The indices do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
9 | ||||
Sterling Capital Equity Income Fund
Portfolio Manager
George F. Shipp, CFA
Sterling Capital Equity Income Fund (the “Fund”) is managed by George F. Shipp, CFA, Senior Managing Director and portfolio manager for Sterling Capital Management LLC, advisor to the Fund. Mr. Shipp has been the Fund’s manager since 2004 and also manages the Sterling Capital Special Opportunities Fund. He has investment experience since 1982. Mr. Shipp is a graduate of the University of Virginia and received his MBA at the Darden Graduate School of Business.
Investment Considerations
The Fund invests primarily in dividend-paying securities. These securities may be undervalued and their value could be negatively affected by a rise in interest rates. The Fund may engage in writing covered call options on securities. By writing covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the premium and the strike price, but continues to bear the risk of a decline in the stock price. While the Fund receives premiums for writing covered call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its primary benchmark, the Russell 1000® Value Index, although it underperformed the S&P 500® Index.
Q. What factors affected the Fund’s performance?
A. The Fund’s absolute performance initially benefitted from a strengthening U.S. economy, which boosted stock performance in the first two-thirds of the period. However, those market gains had disappeared by fiscal year’s end, due in large part to the pressure on corporate profits arising from the economic slowdown in China and other emerging markets, as well as the continued weakness in commodity sectors such as energy. The U.S. Federal Reserve’s decision to keep interest rates at near-zero levels caused further investor uncertainty. These developments detracted from the Fund’s absolute performance.
The Fund’s Institutional Shares outperformed one of its benchmarks, the Russell 1000® Value Index, during the period. Overweight positions in consumer discretionary and technology stocks helped that relative performance, as did favorable stock selection within those sectors. Healthcare was the best-performing of the ten major sectors, so the Fund’s overweight position was helpful, even though our stock selection was not. In addition, an underweight position in the materials
sector as well as stock selection also boosted the Fund’s relative performance. The Fund’s relative returns benefited from individual holdings including a leading home garden and lawn care supplier, a national coffee and donut chain, a biotech company, a large managed care insurer, and two multi-national pharmaceutical companies. The Fund’s holding of a cable TV and broadband Internet provider, which received a takeover offer during the period, also boosted relative performance.
The Fund’s underweight allocation to the financial sector was the largest detractor from relative performance. The banks and insurers the Fund did own struggled to gain traction as the long-anticipated Fed interest rate hike was delayed. Many of the fund’s holdings are larger, well-established multi-national corporations. As the period developed, however, exposure to slowing emerging markets was viewed negatively by the market. The Fund’s energy holdings, including two pipeline companies, which were deemed less sensitive to commodity prices, were not spared from the sharp sell-off in crude oil and natural gas. Holdings of the world’s leading toy company, despite being held for only part of the period under review, detracted from relative results and partially offset the positive contributions elsewhere in the consumer discretionary sector. Finally, the Fund did not own any utility companies, a relatively strong-performing sector for the period.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
10 | ||||
* | Reflects 5.75% maximum sales charge.
| |
** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%.
| |
*** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 6/30/04 | -9.69% | 7.71% | 6.94% | ||||
Class B Shares** | 6/30/04 | -8.60% | 8.03% | 6.93% | ||||
Class C Shares*** | 6/30/04 | -4.92% | 8.18% | 6.77% | ||||
Institutional Shares | 6/30/04 | -3.90% | 9.27% | 7.85% | ||||
Class R Shares | 2/1/101 | -4.40% | 8.74% | 7.55% | ||||
S&P 500® Index | N/A | -0.61% | 13.34% | 6.80% | ||||
Russell 1000® Value Index |
N/A |
-4.42% |
12.29% |
5.71% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower. |
The Fund is measured against the S&P 500® Index and the Russell 1000® Value Index, unmanaged indices that are generally considered to be representative of the performance of the stock market as a whole. The indices do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
11 | ||||
Sterling Capital Long/Short Equity Fund
Portfolio Managers
Sterling Capital Long/Short Equity Fund (the “Fund”) is managed by L. Joshua Wein, CAIA and Executive Director and James C. Willis, CFA and Executive Director, portfolio managers for Sterling Capital Management LLC (“Sterling Capital”).
L. Joshua Wein, CAIA
Mr. Wein, Executive Director joined Sterling Capital in 2008 and has been a portfolio manager of the Fund since its inception. He has investment experience since 1995. He is a graduate of Emory University where he received his BBA in Finance and an MBA from Vanderbilt University.
James C. Willis, CFA
Mr. Willis, Executive Director joined Sterling Capital in 2003 and has been a portfolio manager of the Fund since its inception. He has investment experience since 1996. He is a graduate of Rice University where he received his BA in Economics and Political Science and an MBA from Georgetown University.
The Sub-Advisers and Sub-Adviser Portfolio Managers of the Fund for the fiscal year ended September 30, 2015 are the following:
● Lucas Capital Management (Red Bank, NJ)
Portfolio Managers: Russell Lucas, Ashton Lee | ● Highland Capital Healthcare Advisors, L.P. (Dallas, Texas)
Portfolio Managers: Michael Gregory | |
● Emancipation Capital, LLC (New York, NY) | ● Gator Capital Management (Tampa, FL) | |
Portfolio Managers: Charles Frumberg | Portfolio Managers: Derek Pilecki |
Investment Considerations
All investments carry a certain amount of risk and the Fund cannot guarantee that it will achieve its investment objective. The portfolio managers’ judgments about the capabilities of each Sub Adviser and the impact of each Sub Adviser’s investment techniques on the Fund’s overall investment exposures may prove incorrect, and the Fund may fail to produce the intended results. Unlike most traditional long only equity funds, the Fund will engage in short selling and derivative trading activities as a way of mitigating risk and/or enhancing return. Short sales by a fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. These strategies may involve significant transaction costs and may amplify risk.
Q. How did the Fund perform during the period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the HFRX Equity Hedge Index.
Q. What factors affected the Fund’s performance?
A. Equity markets performed relatively well early in the 12-month period, but suffered a sharp-sell-off in August. Slowing economic growth in global markets such as China and Europe dragged on stock returns. Meanwhile, commodity prices remained weak and the U.S. Federal Reserve in September decided to keep interest rates at near-zero levels. Both of these factors added to investors’ uncertainty about the health of global markets. Overall, equities’ absolute returns suffered in this environment.
The Fund’s long exposure to the energy sector dragged on absolute returns as energy stocks fell sharply during the 12-month period. Fears of an economic slowdown in China, which could dampen demand for
crude oil, combined with the potential for increased Middle East production contributed to a large decline in oil prices during the period. Meanwhile, long exposure to financial stocks also detracted from the Fund’s absolute returns.
The Fund underperformed its benchmark, which is an index of long/ short equity funds, for the 12-month period. Making comparisons to an index of hedge funds can be challenging, however, so the Fund’s holdings will be discussed relative to its peer group, as represented by the Morningstar Long/Short Equity category. The Fund’s overweight position in the energy sector hurt returns relative to the benchmark.
The Fund benefited from an overweight exposure to the health care sector, with biotechnology and specialty pharmaceuticals holdings leading the way. In addition, the Fund’s short exposure to energy names, particularly oilfield services companies, contributed to returns versus the benchmark, though not enough to offset weakness on the long side of the portfolio.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
12 | ||||
* | Reflects 5.75% maximum sales charge.
| |
** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | Since Inception | |||||
Class A Shares* | 12/13/13 | -20.94% | -7.97% | |||||
Class C Shares** | 12/13/13 | -16.80% | -5.53% | |||||
Institutional Shares | 12/13/13 | -15.92% | -4.59% | |||||
HFRX Equity Hedge Index |
11/30/13 |
-2.95% |
-0.29% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the HFRX Equity Hedge Index, an unmanaged index that 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. The 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.
13 | ||||
Sterling Capital Behavioral International Equity Fund
Portfolio Managers
Sterling Capital Behavioral International Equity Fund (the “Fund”) is managed by Robert W. Bridges and Robert O. Weller, Executive Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”).
Robert W. Bridges, CFA
Mr. Bridges, CFA, Executive Director joined Sterling Capital in 1996 and has been a portfolio manager of the Fund since inception. He has investment experience since 1991. He is a graduate of Wake Forest University where he received his BS in Business.
Robert O. Weller, CFA
Mr. Weller, CFA, Executive Director joined Sterling Capital in 2012 and has been a portfolio manager of the Fund since inception. He has investment experience since 1996. He is a graduate of Loyola University Maryland where he received his BBA in Finance.
Investment Considerations
The overall results of the Fund will be dependent on the process and ability of the Adviser to apply “behavioral finance” principles to recognize a company’s value, earnings revisions and market momentum. The Fund will invest in foreign securities which may be more volatile and less liquid due to currency fluctuation, political instability, and social and economic risks. The Fund may invest in REITs (Real Estate Investment Trusts), the value of which will be affected by conditions of the real estate industry, and exchange-traded funds (ETFs). Investing in ETFs may cause shareholders to bear additional costs, and an ETF may not exactly replicate the performance it seeks to track.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmark, the MSCI EAFE® Net Index.
Q. What factors affected the Fund’s performance?
A. The Fund was launched on November 28, 2014 with a focus on developed markets outside the United States and Canada. The Fund employs an investment process rooted in principles of behavioral finance. This process is specifically designed to capitalize upon known investor biases and heuristics (mental shortcuts) by taking into account the impact on markets of behavioral factors such as greed, fear and ego.
Equities in many developing nations and emerging markets declined during the period due in large part to flagging economic growth, geopolitical instability and weak commodity prices. An economic slowdown in China had a particularly profound impact on economies throughout the world, weakening commodity prices and a diminishing demand for many exports. A steep dive in Chinese markets in August triggered declines in equities throughout the globe.
The Fund’s Institutional Shares outperformed its benchmark during this period primarily due to its exposure to behaviorally-based momentum factors designed to capture greed and ego. Its exposure to behaviorally-based value factors that capture investors’ fears also contributed modestly to relative performance. These behavioral factors led the Fund to hold an overweight allocation to the materials and consumer discretionary sectors. The Fund’s performance relative to its benchmark was boosted by significant stakes in a chemical company and a mining company, which both outperformed despite a challenging environment for the broader sector. Overweight positions in a retailer and a homebuilder also added to relative results.
Stock selection in the biotech and pharmaceuticals sectors dragged on the Fund’s performance relative to its benchmark. An overweight position in two pharmaceutical companies dragged on returns. Lower-than-benchmark exposure to two household and personal products companies also hurt the Fund’s performance relative to its benchmark as this sector outperformed for the period.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
14 | ||||
* | Reflects 5.75% maximum sales charge. | |
** | Reflects the applicable maximum CDSC of 1.00%. |
Average Annual Total Returns
| ||||||||||
As of September 30, 2015 | Inception Date | Since Inception | ||||||||
Class A Shares* |
11/28/14 |
|
-12.88% |
| ||||||
Class C Shares** |
11/28/14 |
|
-8.95% |
| ||||||
Institutional Shares |
11/28/14 |
|
-7.36% |
| ||||||
MSCI EAFE® Net Index |
11/30/14 |
|
-8.56% |
|
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
Fund is measured against the MSCI EAFE® Net Index, an unmanaged Index which is generally representative of large- and mid-cap equity across Developed Markets countries around the world, excluding the U.S. and Canada. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
15 | ||||
Sterling Capital Ultra Short Bond Fund
Portfolio Managers
Sterling Capital Ultra Short Bond Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark Montgomery, CFA
Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a portfolio manager of the Fund since 2012. He is head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990 and is a graduate of West Chester University where he received his BS in Marketing and a Minor in Public Administration and an MBA from Drexel University. He is a CFA Charterholder.
Richard T. LaCoff
Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a portfolio manager of the Fund since 2012. He has investment experience since 1991 and is a graduate of Villanova University where he received his BS in Business Administration and a MS in Finance from Drexel University.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the Fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity.
Q. How did the Fund perform during the period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmark, the Citi 6-Month Treasury Bill Index.
Q. What factors affected the Fund’s performance?
A. Interest rates fluctuated throughout the 12-month period as investors anticipated a Federal Reserve decision to raise the target for the federal funds rate — a key short-term interest rate. These expectations peaked in mid-August, driving rates higher at the very short end of the yield curve. Short-term rates subsequently declined when concerns about overseas markets and the strength of the global economy reduced the chances of a rate increase, but rates remained higher relative to the start of the period. When interest rates rise, bond prices fall, and the overall increase in rates over the 12-month period dragged on the Fund’s absolute returns. The Fund’s allocation to asset-backed securities and commercial mortgage-backed securities contributed positively to the Fund’s absolute return.
The Fund’s Institutional Shares underperformed its benchmark for the period. Security selection within the Fund’s corporate allocation was the primary driver of the Fund’s relative
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
underperformance. In particular, debt securities issued by companies in the energy and metals and mining sectors underperformed as those sectors were hit hard by a decline in commodity prices. A modest overweight exposure to duration (a measure of interest-rate sensitivity) also dragged on results given that rates rose for the period. However, the extra income generated from the longer duration holdings helped offset some of the negative impacts of the increase in rates.
Relative results also benefited from the Fund’s allocation to securitized products. In particular, a significant allocation to asset-backed securities helped boost returns as these securities outperformed both U.S. Treasuries and other risk products. Higher quality asset-backed securities generally offer investors an alternative to Treasuries without sacrificing safety. These holdings underperformed as companies issued more debt in anticipation of a rise in interest rates, thus leading to an oversupply. Exposure to commercial mortgage-backed securities also contributed, as the Fund’s holdings of these securities are focused on more stable securities that exhibited less volatility than the broader asset class. The Fund’s holdings generated more income than did the benchmark, which also helped boost relative returns.
16 | ||||
* | Reflects 0.50% maximum sales charge. |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | Since Inception | |||||
Class A Shares* | 11/30/12 | | -0.26% | | 0.04% | |||
Institutional Shares | 11/30/12 | | 0.40% | | 0.43% | |||
Citi 6-Month Treasury Bill Index | 11/30/12 | | 0.08% | | 0.08% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Citi 6-Month Treasury Bill Index, which measures the performance of Treasury bills with a maturity of six months or less. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
17 | ||||
Sterling Capital Short Duration Bond Fund
Portfolio Managers
Sterling Capital Short Duration Bond Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark Montgomery, CFA
Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997. He has been a portfolio manager of the Fund since 2011. He is head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990 and is a graduate of West Chester University where he received his BS in Marketing and a Minor in Public Administration and an MBA from Drexel University. He is a CFA Charterholder.
Richard T. LaCoff
Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007. He has been a portfolio manager of the Fund since 2011. He has investment experience since 1991 and is a graduate of Villanova University where he received his BS in Business Administration and an MS in Finance from Drexel University.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the Fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index.
Q. What factors affected the Fund’s performance?
A. Short-term interest rates increased during the period in anticipation of the Federal Reserve’s decision to raise its target on the federal funds rate. As bond prices fall when interest rates rise, the increase in short-term rates hurt the Fund’s absolute performance. The negative impact of falling rates on the prices of the securities held by the Fund was partially offset by the income generated by those securities. Exposure to asset-backed securities and commercial mortgage-backed securities also contributed positively to absolute results.
The Fund’s Institutional Shares underperformed its benchmark for the period, primarily as a result of its sector allocation strategy. The Fund
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
held more exposure to risk assets, such as corporate bonds, than did the benchmark. These holdings underperformed as companies issued more debt in anticipation of a rise in interest rates, thus leading to an oversupply.
The Fund’s exposure to securitized products helped offset some of these losses, however. In particular, the Fund’s large allocation to asset-backed securities boosted relative results, as did exposure to commercial mortgage-backed securities. Higher quality asset-backed securities generally offer investors an alternative to Treasuries without sacrificing safety. These securities held on to their value relative to other credit sectors, as investors avoided risk. The Fund’s exposure to relatively longer-dated maturities also contributed, as long-term rates declined in a flattening of the yield curve. Income generated by holdings of preferred securities also boosted relative performance, as did the Fund’s overall income advantage relative to the benchmark.
18 | ||||
*
| Reflects 2.00% maximum sales charge.
| |
** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* |
11/30/92 |
-1.50% |
0.95% |
2.40% | ||||
Class C Shares** |
2/1/121 |
-0.29% |
0.79% |
2.32% | ||||
Institutional Shares |
11/30/92 |
0.82% |
1.62% |
2.85% | ||||
BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index | N/A | 1.16% | 1.10% | 2.85% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance could differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index, which consists of securities with a maturity from one to three years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
19 | ||||
Sterling Capital Intermediate U.S. Government Fund
Portfolio Manager
Brad D. Eppard, CFA
Sterling Capital Intermediate U.S. Government Fund (the “Fund”) is managed by Brad D. Eppard, CFA, Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Eppard joined Sterling Capital in 2003. He has investment experience since 1985. Mr. Eppard is a graduate of Radford University where he received his BS in Business Administration/Accounting. He is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in mortgage-backed securities, which tend to be more sensitive to changes in interest rates. The Fund invests in securities issued or guaranteed by the U.S. government or its agencies (such as Fannie Mae or Freddie Mac). Although U.S. government securities issued directly by the U.S. government are guaranteed by the U.S. Treasury, other U.S. government securities issued by an agency or instrumentality of the U.S. government may not be. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the Barclays Intermediate Government Index.
Q. What factors affected the Fund’s performance?
A. The Fund invests primarily in government securities and maintains an average portfolio duration of between two and half years and seven years. Yields on these securities remained low during the period, generating modest amounts of income. However, interest rates fell during the period, which led to an increase in debt security prices. This price appreciation made a significant contribution to absolute returns.
Several factors contributed to the Fund underperforming its benchmark, including an underweight position in bonds with maturities of five to seven years. Our expectation was that an interest rate hike by the Federal Reserve would lead to higher yields and lower
prices for these securities. However, the Fed in September decided to keep interest rates at historically low levels.
The Fund’s performance relative to its benchmark also was hurt by exposure to agency and securitized products with negative convexity, which means they typically lag in price when interest rates fall.
The Fund’s position in Treasury Inflation-Protected Securities (TIPS) also dragged on relative performance. TIPS lagged traditional Treasuries during the last part of the fiscal year due in large part to a drop in inflation expectations as slower growth in China led to lower commodity prices.
The Fund’s relative performance was boosted by a historically high spread between municipal bond yields and Treasury yields. The Fund’s managers purchased municipal bonds at a low cost relative to Treasuries, benefitting the portfolio as that yield spread contracted during the period to more typical levels.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
20 | ||||
* | Reflects 2.00% maximum sales charge. | |
** |
Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
***Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 |
Inception | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 10/9/92 | -0.24% | 1.12% | 3.28% | ||||
Class B Shares** | 1/1/96 | -2.94% | 0.58% | 2.86% | ||||
Class C Shares*** | 2/1/01 | 1.06% | 0.77% | 2.73% | ||||
Institutional Shares | 10/9/92 | 1.98% | 1.76% | 3.73% | ||||
Barclays Intermediate Government Index | N/A | 2.68% | 2.42% | 4.17% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Barclays Intermediate Government Index, an unmanaged index comprised of all publicly issued non-convertible domestic debt of the U.S. government or any agency there of, or corporate debt guaranteed by the U.S. government all with outstanding principal of $1 million and maturity between one and ten years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
21 | ||||
Sterling Capital Total Return Bond Fund
Portfolio Managers
Sterling Capital Total Return Bond Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark Montgomery, CFA
Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a portfolio manager of the Fund since 2008. He is head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990 and is a graduate of West Chester University, where he received his BS in Marketing and a Minor in Public Administration and an MBA from Drexel University. He is a CFA Charterholder.
Richard T. LaCoff
Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a portfolio manager of the Fund since 2011. He has investment experience since 1991 and is a graduate of Villanova University where he received his BS in Business Administration and an MS in Finance from Drexel University.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in foreign securities, which may expose the fund to currency and exchange rate fluctuations; and mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the Barclays U.S. Aggregate Bond Index.
Q. What factors affected the Fund’s performance?
A. Long-term interest rates declined during the period due to weak global economic growth and a strong U.S. dollar. Short-term rates rose, however, as investors anticipated the Federal Reserve’s decision to raise its target for the federal funds rate. The Fund benefited from the decline in rates on long-term bonds, even as those gains were modestly offset by the negative impacts of the rise in short-term rates. When interest rates decline, bond prices rise. The Fund’s absolute return was driven primarily by income derived from the securities it held, but its allocation to asset-backed securities — securities backed by a loan, lease or other non-mortgage debts — and commercial mortgage-back securities also helped.
The Fund underperformed its benchmark, primarily as a result of an overweight allocation to risk assets in general and corporate bonds in
particular. High-quality, low-risk assets outperformed high-yield bonds during the 12-month period. China’s slowing economy caused concern among investors, with many abandoning risk assets for higher quality bonds, such as U.S. Treasuries. The Fund’s average bond duration was shorter than the benchmark during the period in question, so relative performance also suffered as long-term interest rates declined and short-term rates rose.
The Fund’s allocation to asset-backed securities, commercial mortgage-backed securities and tax-exempt municipal bonds all helped boost relative results, as those securities broadly outperformed U.S. Treasuries for the period. An overweight exposure to financials within the Fund’s corporate bond allocation also helped offset some of the losses caused by an overexposure to corporate bonds. A below-benchmark exposure to the metals and mining sectors within corporate debt also helped offset some of the losses within corporate holdings, as companies with commodity exposure and export-driven revenues were the hardest hit by the investor uncertainty surrounding access to capital and the slowing Chinese economy.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
22 | ||||
* | Reflects 5.75% maximum sales charge. | |
** |
Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
***Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 12/2/99 | -3.83% | 2.01% | 4.27% | ||||
Class B Shares** | 12/2/99 | -2.69% | 2.29% | 4.28% | ||||
Class C Shares*** | 2/1/01 | 1.28% | 2.46% | 4.12% | ||||
Institutional Shares | 12/2/99 | 2.29% | 3.49% | 5.17% | ||||
Class R Shares | 2/1/101 | 1.77% | 2.91% | 4.83% | ||||
Barclays U.S. Aggregate Bond Index | N/A | 2.94% | 3.10% | 4.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower. |
The Fund is measured against the Barclays U.S. Aggregate Bond Index, an unmanaged index, which is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
23 | ||||
Sterling Capital Corporate Fund
Portfolio Managers
Sterling Capital Corporate Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark Montgomery, CFA
Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a portfolio manager of the Fund since 2011. He is head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990 and is a graduate of West Chester University where he received his BS in Marketing and a Minor in Public Administration and an MBA from Drexel University. He is a CFA Charterholder.
Richard T. LaCoff
Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a portfolio manager of the Fund since 2011. He has investment experience since 1991 and is a graduate of Villanova University where he received his BS in Business Administration and an MS in Finance from Drexel University.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the Barclays U.S. Intermediate Corporate Index.
Q. What factors affected the Fund’s performance?
A. The improving U.S. employment picture along with the widely held expectation that the Federal Reserve would raise interest rates in the second half of 2015 contributed to a steep rise in the value of the U.S. dollar early in the 12-month period. The stronger dollar, along with a decline in Chinese markets, put pressure on the price of commodities and the emerging market economies that export them. Investors sought the relative safety of U.S. government bonds as a result of this global uncertainty, driving down interest rates in the process. The Fund’s absolute returns benefited from this decline in longer term rates. Yet those gains were more than offset by losses resulting from a widening of credit spreads — the difference in yield between lower-risk Treasuries and other assets — as the supply of bonds increased in early 2015 and investors grew increasingly risk averse due to growing concerns about Chinese economic growth.
The Fund underperformed its benchmark due in large part to an
overweight allocation to lower-quality securities. In particular, BBB-rated securities in the energy and metals sectors dragged on relative returns as they underperformed Treasuries of the same duration. The Fund’s holdings of below-investment grade bonds also detracted as investors shifted away from risk during the period. The Fund targeted shorter duration bonds — which are less sensitive to interest rate changes — relative to its benchmark, in anticipation of an interest rate hike. When long-term rates fell during the period, however, this positioning dragged on relative performance.
The Fund’s overweight allocation to the financial sector within corporate bonds was the biggest contributor to relative returns. The credit fundamentals in that sector continued to improve throughout the period due to increased regulation and positive economic growth in the U.S. These factors, along with an increase in merger and acquisition activity in the industrial sector and the negative impact of low commodity prices on the energy and materials sectors, helped the financial sector outperform many other sectors. Allocation decisions within the industrial sector also boosted relative results. The Fund’s emphasis on U.S.-focused industries such as healthcare and an underweight allocation to metals and mining added to results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
24 | ||||
* | Reflects 2.00% maximum sales charge.
| |
** | Reflects the applicable maximum contingent deferred sales charge (CDSC) of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||||||
As of September 30, 2015 | Inception Date | 1 Year | Since Inception | |||||||||
Class A Shares* | 2/1/131 | -0.53% | 3.52% | |||||||||
Class C Shares** | 2/1/131 | 0.75% | 3.49% | |||||||||
Institutional Shares | 6/30/112 | 1.76% | 4.18% | |||||||||
Barclays U.S. Intermediate Corporate Index | 6/30/11 | 2.36% | 3.95% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-888-228-1872.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s prior and “New Benchmark” (defined below), and represents the reinvestment of dividends and capital gains.
1 | Class A and C Shares were not in existence prior to 2/1/13. Performance for periods prior to 2/1/13 is based on the performance of Institutional Shares and has been adjusted for maximum CDSC to the class applicable but does not include 12b-1 fees, which if reflected, would have caused performance of Class A and C Shares to be lower. |
2 | The Fund converted Class S Shares into Institutional Shares effective 2/1/13. |
The Fund is measured against the Barclays U.S. Intermediate Corporate Index, an unmanaged index consisting of dollar-denominated debt from U.S. industrial, utility and financial institutions issuers with a duration of 1 to 10 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
25 | ||||
Sterling Capital Securitized Opportunities Fund
Portfolio Managers
Sterling Capital Securitized Opportunities Fund (the “Fund”) is managed by Mark Montgomery, CFA, Richard LaCoff, Senior Managing Directors and Michael Sun, CFA, Executive Director and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark Montgomery, CFA
Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a portfolio manager of the Fund since 2011. He is head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990 and is a graduate of West Chester University where he received his BS in Marketing and a Minor in Public Administration and an MBA from Drexel University. He is a CFA Charterholder.
Richard T. LaCoff
Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a portfolio manager of the Fund since 2011. He has investment experience since 1991 and is a graduate of Villanova University where he received his BS in Business Administration and an MS in Finance from Drexel University.
Michael Z. Sun, CFA
Mr. Sun, Executive Director joined Sterling Capital in 2009 and began co-managing the fund in February 2014. He has investment experience since 1998 and is a graduate of Bowling Green State University where he received his MA in Economics. He received his MS in Urban & Regional Study at Beijing University, and received his BS in Geography at Nanjing University. He is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the Fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares outperformed its benchmark, the Barclays U.S. Mortgage Backed Securities Index.
Q. What factors affected the Fund’s performance?
A. Long-term interest rates declined during the period due to weak global economic growth and a strong U.S. dollar. Short-term rates rose on expectations that the Federal Reserve would raise rates, although the Fed’s decision late in the period to delay its rate increase erased much of those gains. Given that asset- and mortgage-backed securities tend to have longer maturities than most other securitized assets, the decline in long-term rates helped drive absolute returns. In fact, all sectors of the Fund posted positive absolute returns during the period as both price performance (a result of falling interest rates) and the income generated from the securities held by the Fund contributed.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
The Fund’s Institutional Shares outperformed its benchmark in large part due to its focus on higher-yielding, lower-quality, non-agency sectors. In particular, overweight allocations to consumer asset-backed securities, commercial mortgage-backed securities and non-agency residential mortgage-backed securities added to relative results. The Fund’s reduced exposure to agency mortgage-backed securities also added to relative results, as these securities underperformed during the period due to an increase in both supply and interest rate volatility.
The Fund’s allocation strategy, particularly the decision to hold a lower-than-benchmark exposure to agency mortgage-backed securities, led to a reduced exposure to long-term interest rates relative to its benchmark. As a result, the Fund did not fully capture the benefits from the decline in long-term rates. Relative performance suffered as a result.
26 | ||||
* | Reflects 2.00% maximum sales charge.
| |
** | Reflects the applicable maximum contingent deferred sales charge (CDSC) of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Total Returns table since the periods reflected are for a year or longer).
|
Average Annual Total Returns
| ||||||
As of September 30, 2015 | Inception Date | 1 Year | Since Inception | |||
Class A Shares* | 2/1/131 | 1.34% | 2.58% | |||
Class C Shares** | 2/1/131 | 2.62% | 2.60% | |||
Institutional Shares | 6/30/112 | 3.54% | 3.22% | |||
Barclays U.S. Mortgage Backed Securities Index | 6/30/11 | 3.43% | 2.83% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-888-228-1872.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class A and C Shares were not in existence prior to 2/1/13. Performance for periods prior to 2/1/13 is based on the performance of Institutional Shares and has been adjusted for maximum CDSC to the class applicable but does not include 12b-1 fees, which if reflected, would have caused performance of Class A and C Shares to be lower. |
2 | The Fund converted Class S Shares into Institutional Shares effective 2/1/13. |
The Fund is measured against the Barclays U.S. Mortgage Backed Securities Index. The index measures the performance of investment grade fixed-rate mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
27 | ||||
Sterling Capital Kentucky Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
Sterling Capital Kentucky Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined Sterling Capital in 2000. He has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics and is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by Kentucky and its political subdivisions and therefore will be affected by economic, political or other events affecting Kentucky.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. Municipal bond markets posted modest returns during the 12-month period. Concerns about the strength of certain global economies, including China and Europe, as well as falling commodity prices led investors to seek out the relative safety of the fixed-income market.
The municipal markets also benefited from improving state and local balance sheets, as well as attractive valuations relative to many taxable bonds. During the period, short-term rates rose while intermediate-term rates fell amid disappointing economic data and expectations for higher interest rates. Supply in the municipal market varied during the period, as relatively strong issuance during the first half of 2015 slowed toward the end of the 12-month period amid concerns about rising interest rates. Demand for municipal bonds seemed to match supply
trends, as investors later in the period expected interest rates to move higher.
The Fund’s underperformance was largely due to its relatively short duration position. That cautious stance weighed on relative returns as longer-dated municipal bonds generally outperformed bonds with shorter durations during the period. The Fund’s relative performance also suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher rated peers.
Credit rating agency Standard & Poor’s downgraded Kentucky’s debt rating from AA- to A+ during the period to reflect the state’s underfunded pension liabilities. That downgrade contributed to the Fund’s relative underperformance.
The Fund’s relative performance benefited from a lack of exposure to bonds issued by New Jersey or Illinois. Both states faced a range of financial challenges during the period, including pension and budget issues. An overweight position in intermediate-term municipal bonds with maturities between five and 10 years also benefited relative results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
28 | ||||
* | Reflects 2.00% maximum sales charge.
| |
** | Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).
|
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 2/24/03 | -0.22% | 2.25% | 3.63% | ||||
Class C Shares** | 2/1/121 | 1.13% | 2.13% | 3.58% | ||||
Institutional Shares | 2/24/03 | 2.15% | 2.94% | 4.12% | ||||
BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | 2.58% | 3.68% | 4.60% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index that is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
29 | ||||
Sterling Capital Maryland Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
Sterling Capital Maryland Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined Sterling Capital in 2000. He has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics and is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by Maryland and its political subdivisions and therefore will be affected by economic, political or other events affecting Maryland.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. Municipal bond markets posted modest returns during the 12-month period. Concerns about the strength of certain global economies, including China and Europe, as well as falling commodity prices led investors to seek out the relative safety of the fixed-income market.
The municipal markets also benefited from improving state and local balance sheets, as well as attractive valuations relative to many taxable bonds. During the period, short-term rates rose while intermediate-term rates fell amid disappointing economic data and expectations for higher interest rates. Supply in the municipal market varied during the period, as relatively strong issuance during the first half of 2015 slowed toward the end of the 12-month period amid concerns about rising
interest rates. Demand for municipal bonds seemed to match supply trends, as investors later in the period expected interest rates to move higher.
The Fund’s underperformance was largely due to its relatively short duration position. That cautious stance weighed on relative returns as longer-dated municipal bonds generally outperformed bonds with shorter durations during the period. The Fund’s relative performance also suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher rated peers. For instance, AAA-rated municipal bonds returned 2.28% during the period compared to a 3.87% return for BBB-rated issues.
The Fund’s relative performance benefited from a lack of exposure to bonds issued by New Jersey or Illinois. Both states faced a range of financial challenges during the period, including pension and budget issues. An overweight position in intermediate-term municipal bonds with maturities between five and 10 years also benefited relative results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
30 | ||||
* | Reflects 2.00% maximum sales charge.
| |
** | Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).
|
Average Annual Total Returns
| ||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||
Class A Shares* | 2/24/03 | -0.25% | 2.07% | 3.73% | ||||
Class C Shares** | 2/1/121 | 1.04% | 1.94% | 3.66% | ||||
Institutional Shares | 2/24/03 | 2.05% | 2.76% | 4.19% | ||||
BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | 2.58% | 3.68% | 4.60% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
31 | ||||
Sterling Capital North Carolina Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
Sterling Capital North Carolina Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined Sterling Capital in 2000. He has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics and is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by North Carolina and its political subdivisions and therefore will be affected by economic, political or other events affecting North Carolina.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. Municipal bond markets posted modest returns during the 12-month period. Concerns about the strength of certain global economies, including China and Europe, as well as falling commodity prices led investors to seek out the relative safety of the fixed-income market.
The municipal markets also benefited from improving state and local balance sheets, as well as attractive valuations relative to many taxable bonds. During the period, short-term rates rose while intermediate-term rates fell amid disappointing economic data and expectations for higher interest rates. Supply in the municipal market varied during the period, as relatively strong issuance during the first half of 2015 slowed toward the end of the 12-month period amid concerns about rising
interest rates. Demand for municipal bonds seemed to match supply trends, as investors later in the period expected interest rates to move higher.
The Fund’s underperformance was largely due to its relatively short duration position. That cautious stance weighed on relative returns as longer-dated municipal bonds generally outperformed bonds with shorter durations during the period. The Fund’s relative performance also suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher rated peers. For instance, AAA-rated municipal bonds returned 2.28% during the period compared to a 3.87% return for BBB-rated issues.
The Fund’s relative performance benefited from a lack of exposure to bonds issued by New Jersey or Illinois. Both states faced a range of financial challenges during the period, including pension and budget issues. An overweight position in intermediate-term municipal bonds with maturities between five and 10 years also benefited relative results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
32 | ||||
* Reflects 2.00% maximum sales charge. |
** Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||||
Class A Shares* | 10/16/92 | 0.27% | 2.31% | 3.63% | ||||||||||
Class C Shares** | 2/1/121 | 1.43% | 2.13% | 3.54% | ||||||||||
Institutional Shares | 10/16/92 | 2.53% | 2.97% | 4.10% | ||||||||||
BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | 2.58% | 3.68% | 4.60% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees had been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
33 | ||||
Sterling Capital South Carolina Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
Sterling Capital South Carolina Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined Sterling Capital in 2000. He has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics and is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by South Carolina and its political subdivisions and therefore will be affected by economic, political or other events affecting South Carolina.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. Municipal bond markets posted modest returns during the 12-month period. Concerns about the strength of certain global economies, including China and Europe, as well as falling commodity prices led investors to seek out the relative safety of the fixed-income market.
The municipal markets also benefited from improving state and local balance sheets, as well as attractive valuations relative to many taxable bonds. During the period, short-term rates rose while intermediate-term rates fell amid disappointing economic data and expectations for higher interest rates. Supply in the municipal market varied during the period, as relatively strong issuance during the first half of 2015 slowed toward the end of the 12-month period amid concerns about rising
interest rates. Demand for municipal bonds seemed to match supply trends, as investors later in the period expected interest rates to move higher.
The Fund’s underperformance was largely due to its relatively short duration position. That cautious stance weighed on relative returns as longer-dated municipal bonds generally outperformed bonds with shorter durations during the period. The Fund’s relative performance also suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher rated peers. For instance, AAA-rated municipal bonds returned 2.28% during the period compared to a 3.87% return for BBB-rated issues.
The Fund’s relative performance benefited from a lack of exposure to bonds issued by New Jersey or Illinois. Both states faced a range of financial challenges during the period, including pension and budget issues. An overweight position in intermediate-term municipal bonds with maturities between five and 10 years also benefited relative results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
34 | ||||
* | Reflects 2.00% maximum sales charge. |
** | Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||||
Class A Shares* | 10/20/97 | 0.05% | 2.46% | 3.69% | ||||||||||
Class C Shares** | 2/1/121 | 1.35% | 2.30% | 3.62% | ||||||||||
Institutional Shares | 10/20/97 | 2.27% | 3.11% | 4.17% | ||||||||||
BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | 2.58% | 3.68% | 4.60% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
35 | ||||
Sterling Capital Virginia Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
Sterling Capital Virginia Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined Sterling Capital in 2000. He has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics and is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by Virginia and its political subdivisions and therefore will be affected by economic, political or other events affecting Virginia.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. Municipal bond markets posted modest returns during the 12-month period. Concerns about the strength of certain global economies, including China and Europe, as well as falling commodity prices led investors to seek out the relative safety of the fixed-income market.
The municipal markets also benefited from improving state and local balance sheets, as well as attractive valuations relative to many taxable bonds. During the period, short-term rates rose while intermediate-term rates fell amid disappointing economic data and expectations for higher interest rates. Supply in the municipal market varied during the period, as relatively strong issuance during the first half of 2015 slowed toward the end of the 12-month period amid concerns about rising
interest rates. Demand for municipal bonds seemed to match supply trends, as investors later in the period expected interest rates to move higher.
The Fund’s underperformance was largely due to its relatively short duration position. That cautious stance weighed on relative returns as longer-dated municipal bonds generally outperformed bonds with shorter durations during the period. The Fund’s relative performance also suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher rated peers. For instance, AAA-rated municipal bonds returned 2.28% during the period compared to a 3.87% return for BBB-rated issues.
The Fund’s relative performance benefited from a lack of exposure to bonds issued by New Jersey or Illinois. Both states faced a range of financial challenges during the period, including pension and budget issues. An overweight position in intermediate-term municipal bonds with maturities between five and 10 years also benefited relative results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
36 | ||||
* | Reflects 2.00% maximum sales charge. |
** | Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||||||||
As of September 30, 2015 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||||
Class A Shares* | 5/17/99 | -0.09% | 2.00% | 3.51% | ||||||||||
Class C Shares** | 2/1/121 | 1.22% | 1.85% | 3.43% | ||||||||||
Institutional Shares | 5/17/99 | 2.24% | 2.68% | 3.98% | ||||||||||
BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | 2.58% | 3.68% | 4.60% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
37 | ||||
Sterling Capital West Virginia Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
Sterling Capital West Virginia Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined Sterling Capital in 2000. He has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics and is a CFA Charterholder.
Investment Considerations
The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by West Virginia and its political subdivisions and therefore will be affected by economic, political or other events affecting West Virginia.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. Municipal bond markets posted modest returns during the 12-month period. Concerns about the strength of certain global economies, including China and Europe, as well as falling commodity prices led investors to seek out the relative safety of the fixed-income market.
The municipal markets also benefited from improving state and local balance sheets, as well as attractive valuations relative to many taxable bonds. During the period, short-term rates rose while intermediate-term rates fell amid disappointing economic data and expectations for higher interest rates. Supply in the municipal market varied during the period, as relatively strong issuance during the first half of 2015 slowed toward the end of the 12-month period amid concerns about rising
interest rates. Demand for municipal bonds seemed to match supply trends, as investors later in the period expected interest rates to move higher.
The Fund’s underperformance was largely due to its relatively short duration position. That cautious stance weighed on relative returns as longer-dated municipal bonds generally outperformed bonds with shorter durations during the period. The Fund’s relative performance also suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher rated peers. For instance, AAA-rated municipal bonds returned 2.28% during the period compared to a 3.87% return for BBB-rated issues.
The Fund’s relative performance benefited from a lack of exposure to bonds issued by New Jersey or Illinois. Both states faced a range of financial challenges during the period, including pension and budget issues. An overweight position in intermediate-term municipal bonds with maturities between five and 10 years also benefited relative results.
Portfolio composition is as of September 30, 2015 and is subject to change and risk.
38 | ||||
* | Reflects 2.00% maximum sales charge. | |
** |
Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015
| Inception
| 1 Year
| 5 Years
| 10 Years
| ||||
Class A Shares* | 12/17/93 | 0.12% | 2.36% | 3.44% | ||||
Class C Shares** | 2/1/121 | 1.42% | 2.22% | 3.36% | ||||
Institutional Shares | 12/1/93 | 2.44% | 3.04% | 3.90% | ||||
BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | 2.58% | 3.68% | 4.60% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses. |
The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The 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.
A portion of the Fund’s fees had been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
39 | ||||
Sterling Capital Diversified Income Fund
Portfolio Managers
Sterling Capital Diversified Income Fund (formerly known as Sterling Capital Strategic Allocation Conservative Fund) (the “Fund”) is managed by Will G. Gholston and Shane A. Burke, Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”) and members of the Sterling Capital Advisory Solutions Team.
Will G. Gholston, CFA
Mr. Gholston, Director, joined BB&T Asset Management in 2003 and Sterling Capital Management through merger in October 2010 and has been a co-portfolio manager of the Fund since 2006. He has investment experience since 2000. He is a graduate of the University of North Carolina, Chapel Hill where he received his BA in Economics.
Shane A. Burke
Mr. Burke, Director, joined Sterling Capital Management in 2013 and has been a co-portfolio manager of the Fund since 2015. He has investment experience since 2002. He is a graduate of the University of North Carolina at Wilmington where he received his BS in Finance. He received his MBA from San Francisco-Golden Gate University.
Investment Considerations
The Fund is primarily concentrated in underlying funds and is therefore subject to the same risks as the underlying funds it is invested in and may entail higher expenses. The underlying funds may invest in undervalued securities, which may not appreciate in value as anticipated or may remain undervalued for longer than anticipated. The underlying funds may invest in equity securities including more aggressive investments that engage in long/short equity strategies and in options writing strategies and that invest in derivatives, preferred stocks, exchange-traded funds (ETFs), Master Limited Partnerships (MLPs, the value of which will be affected by the natural resources sector of the economy and regulation) and real estate investment trusts (REITs, the value of which will be affected by conditions of the real estate industry). The Fund’s volatility may be amplified by its use of short sales and derivatives. The Fund is subject to the same risks as the debt securities held by the underlying funds such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of debt securities will decline and an investor may lose money. Investing in high yield debt (also known as junk bonds) involves greater risks and less liquidity than investment grade bonds.
Q. How did the Fund perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. The Fund’s Institutional Shares underperformed its current benchmark, 40% MSCI World Index 60% Barclays U.S. Aggregate Bond Index.
Q. What factors affected the Fund performance?
A. From October 1, 2014 to November 30, 2014, the Diversified Income Fund held four underlying Funds: Sterling Capital Special Opportunities Fund, Sterling Capital Equity Income Fund, Sterling Capital Total Return Bond Fund, and Federated Treasury Obligations Fund. The Sterling Capital Behavioral International Fund was added on December 1, 2014 and the Sterling Capital Long/Short Equity Fund was added on February 2, 2015.
As of June 22, 2015, the Sterling Capital Strategic Allocation Conservative Fund changed its name to the Sterling Capital Diversified Income Fund and implemented certain changes to its investment objective and strategy. The Fund seeks income and capital appreciation by investing in a broad range of income-generating asset classes and strategies. On June 22, 2015, the Fund liquidated all of its prior holdings (except the Federated Treasury Obligations Fund). As of September 30, 2015, the Fund’s holdings consisted of a total of 19 mutual funds and exchange-traded funds with approximately 40% allocated to equities, and 60% allocated to fixed income.
The global equity market posted a negative return during the period, which dragged on the Fund’s absolute return. The ongoing debt crisis in Greece as well as concerns about the Chinese economy contributed to negative equity market performance. In the U.S., the Federal Reserve’s decision to keep interest rates at near-zero levels caused
further investor uncertainty, which led to increased levels of market volatility. However, the Fund’s absolute performance benefitted from the decline in rates on long-term bonds, even as those gains were offset modestly by the negative impacts of the rise in short-term rates. When interest rates decline, bond prices rise.
The Fund underperformed relative to its benchmark. Though the Fund’s return was aligned with the benchmark during the first three quarters of the period, its exposure to master limited partnerships and U.S.-based high yield bonds detracted from relative performance in the third quarter.
The Sterling Capital Total Return Bond Fund underperformed during the period in which it was held by the Fund as the overweight to corporate bonds was a detractor. In addition, an underweight position in the financial sector in the Sterling Capital Equity Income Fund hindered relative returns. Banks and insurers struggled to gain traction over the period, particularly after the U.S. Federal Reserve declined to raise interest rates. Individual stock selection in the Sterling Capital Special Opportunities Fund also detracted from relative performance.
The Fund’s relative performance benefited from allocations to covered call-writing strategies and long U.S. Treasury bonds in the third quarter. The call options helped cushion the portfolio against falling equity prices. The Fund’s relative returns also benefited from the Sterling Capital Equity Income Fund’s and Sterling Capital Special Opportunities Fund’s overweight positions in technology stocks, as well as favorable stock selection in those sectors. Both Funds also maintained underweight positions in basic materials, one of the market’s worst performing sectors, thereby boosting relative returns.
Portfolio composition is as of September 30, 2015 and is subject to change and risk. |
40 | ||||
* | Reflects 5.75% maximum sales charge. | |
** |
Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. | |
*** |
Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015
| Inception
| 1 Year
| 5 Years
| 10 Years
| ||||
Class A Shares* | 1/29/98 | -7.10% | 3.67% | 3.68% | ||||
Class B Shares** | 1/29/99 | -6.02% | 3.95% | 3.68% | ||||
Class C Shares*** | 2/1/01 | -2.14% | 4.11% | 3.53% | ||||
Institutional Shares | 10/2/97 | -1.23% | 5.15% | 4.56% | ||||
40% MSCI World Index 60% Barclays U.S. Aggregate Bond Index1 | N/A | -0.18% | 5.37% | 5.01% | ||||
MSCI World Index1 | N/A | -5.09% | 8.29% | 4.73% | ||||
Russell 3000® Index1 | N/A | -0.49% | 13.28% | 6.92% | ||||
Barclays U.S. Aggregate Bond Index1 | N/A | 2.94% | 3.10% | 4.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Effective February 1, 2015, the Fund changed its primary benchmark from the Russell 3000®Index to an internally maintained composite index computed by Sterling Capital consisting of 40% MSCI World Index and 60% Barclays U.S. Aggregate Bond Index. The new benchmark is more representative of the Fund’s investment program. |
The Fund is measured against the 40% MSCI World Index and 60% Barclays U.S. Aggregate Bond Index. The indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. The 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.
A portion of the Fund’s fees had been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower. Currently all management fees are being waived.
41 | ||||
Sterling Capital Strategic Allocation Funds
Portfolio Managers
Team Managed
Sterling Capital Strategic Allocation Funds (the “Funds”) are managed by the Sterling Capital Advisory Solutions Team, which is led by James C. Willis, CFA, Managing Director & Director of Advisory Solutions, Jeffrey J. Schappe, CFA, Managing Director & Chief Market Strategist and Will G. Gholston, CFA, Director. Mr. Willis, Mr. Schappe and Mr. Gholston have managed the Funds since 2010, 2005 and 2006, respectively.
James C. Willis, CFA
Mr. Willis, Managing Director, joined BB&T Asset Management in 2003 and Sterling Capital Management through merger in October 2010 and has been a portfolio manager of the Fund since 2010. He has investment experience since 1996. He is a graduate of Rice University where he received a BA in Economics and Political Science and a MBA from Georgetown University.
Jeffrey J. Schappe, CFA
Mr. Schappe, Managing Director, joined BB&T Asset Management in 2004 and Sterling Capital Management through merger in October 2010 and has been a portfolio manager of the Fund since 2005. He has investment experience since 1991. He is a graduate of University of Wisconsin- Madison where he received a BA in Journalism and a MBA in Finance.
Will G. Gholston, CFA
Mr. Gholston, Director, joined BB&T Asset Management in 2003 and Sterling Capital Management through merger in October 2010 and has been a portfolio manager of the Fund since 2006. He has investment experience since 2000. He is a graduate of the University of North Carolina at Chapel Hill where he received his BA in Economics.
Investment Considerations
The Funds are primarily concentrated in underlying funds and are therefore subject to the same risks as the underlying funds and bear a portion of the expenses of the underlying funds. The underlying funds may be invested in equity securities and are subject to market risk. Investments in bonds are subject to credit risk, call risk and interest rate risk (as interest rates rise the value of bond prices will decline). The underlying funds may invest in foreign securities, which involve certain risks such as currency volatility, political and social instability and reduced market liquidity; small capitalization companies which are subject to greater volatility and less liquidity due to limited resources or product lines and are more sensitive to economic factors; and high-yield debt securities (also know as junk bonds), which involve greater risks than investment grade bonds. The underlying funds may also be money market funds.
Sterling Capital Strategic Allocation Balanced Fund
Sterling Capital Strategic Allocation Growth Fund
(Collectively, “Sterling Capital Strategic Allocation Funds”)
Q. How did the Funds perform during the 12-month period between October 1, 2014 and September 30, 2015?
A. Sterling Capital Strategic Allocation Funds and their benchmark returns can be found on pages 43 and 44.
Q. What factors affected the Funds’ performance?
A. The Sterling Capital Strategic Allocation Funds held six underlying Funds: the Sterling Capital Behavioral International Equity Fund, the Sterling Capital Equity Income Fund, the Sterling Capital Long/Short Equity Fund, the Sterling Capital Special Opportunities Fund, the Sterling Capital Total Return Bond Fund, and Federated Treasury Obligations Fund.
The global equity market posted a negative return during the period, which dragged on each Fund’s absolute return. The ongoing debt crisis in Greece as well as concerns about the Chinese economy contributed to negative equity market performance. In the U.S., the Federal Reserve’s decision to keep interest rates at near-zero levels caused further investor uncertainty which led to increased levels of market volatility. Continued weakness in the commodities market, including the energy sector, further detracted from the Funds’ absolute performance. However, the Funds did benefit from the decline in rates on long-term bonds, even as those gains were modestly offset by the negative impacts from the rise in short-term rates.
Both of the Sterling Capital Strategic Allocation Funds’ Institutional Shares outperformed their benchmarks over the period. The Funds’ relative performance benefitted from stock selection within U.S. equities and non-U.S. developed equities as well. For instance, the Sterling Capital Special Opportunities Fund held shares of the nation’s leading hospital chain, a physician services operation, a diagnostic laboratory testing company and the nation’s largest health insurer. These holdings outperformed shares of multinational companies, which faced greater challenges due to the strong U.S. dollar.
The Sterling Capital Equity Income Fund benefitted from individual holdings including a leading home garden and lawn care supplier, a national coffee and donut chain, a biotech company, a large managed care insurer and two multi-national pharmaceutical companies, all of which had strong performance throughout the period. In addition, the Sterling Capital Total Return Bond Fund received a boost from its allocation to asset-backed securities, commercial mortgage-backed securities and tax-exempt municipal bonds, all of which broadly outperformed U.S. Treasuries for the period. An overweight exposure to financials within the Sterling Capital Total Return Bond Fund’s corporate bond allocation also helped offset some of the losses caused by an overexposure to corporate bonds.
However, both Sterling Capital Strategic Allocation Funds maintained an overweight position to non-U.S. developed stocks over most of the period, which dragged on their relative performance as regions such as United Kingdom and the Eurozone saw equity prices decline sharply.
Portfolio composition is as of September 30, 2015 and is subject to change and risk. |
42 | ||||
Sterling Capital Strategic Allocation Balanced Fund
* | Reflects 5.75% maximum sales charge. | |
** |
Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. | |
*** |
Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Average Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015
| Inception
| 1 Year
| 5 Years
| 10 Years
| ||||
Class A Shares* | 1/29/98 | -7.56% | 4.78% | 3.48% | ||||
Class B Shares** | 1/29/99 | -6.56% | 5.05% | 3.46% | ||||
Class C Shares*** | 2/1/01 | -2.60% | 5.25% | 3.32% | ||||
Institutional Shares | 10/2/97 | -1.57% | 6.32% | 4.37% | ||||
60% MSCI World Index 40% Barclays U.S. Aggregate Bond Index1 | N/A | -1.79% | 6.41% | 5.04% | ||||
MSCI World Index1 | N/A | -5.09% | 8.29% | 4.73% | ||||
Russell 3000® Index1 | N/A | -0.49% | 13.28% | 6.92% | ||||
Barclays U.S. Aggregate Bond Index1 | N/A | 2.94% | 3.10% | 4.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Effective February 1, 2015, the Fund changed its primary benchmark from the Russell 3000®Index to an internally maintained composite index computed by Sterling Capital consisting of 60% MSCI World Index and 40% Barclays U.S. Aggregate Bond Index. |
The Fund is measured against the 60% MSCI World Index 40% Barclays U.S. Aggregate Bond Index. The index is unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. The 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.
A portion of the Fund’s fees had been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower. Currently all management fees are being waived.
43 | ||||
Sterling Capital Strategic Allocation Growth Fund
* | Reflects 5.75% maximum sales charge. | |
** |
Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. | |
*** |
Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Average Total Returns table since the periods reflected are for a year or longer). |
Average Annual Total Returns
| ||||||||
As of September 30, 2015
| Inception
| 1 Year
| 5 Years
| 10 Years
| ||||
Class A Shares* | 1/29/98 | -8.48% | 5.45% | 3.11% | ||||
Class B Shares** | 1/29/99 | -7.47% | 5.78% | 3.10% | ||||
Class C Shares*** | 2/1/01 | -3.62% | 5.92% | 2.95% | ||||
Institutional Shares | 10/2/97 | -2.67% | 6.98% | 3.98% | ||||
75% MSCI World Index 25% Barclays U.S. Aggregate Bond Index1 | N/A | -3.01% | 7.15% | 4.98% | ||||
MSCI World Index1 | N/A | -5.09% | 8.29% | 4.73% | ||||
Russell 3000® Index1 | N/A | -0.49% | 13.28% | 6.92% | ||||
Barclays U.S. Aggregate Bond Index1 | N/A | 2.94% | 3.10% | 4.64% |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Effective February 1, 2015, the Fund changed its primary benchmark from the Russell 3000®Index to an internally maintained composite index computed by Sterling Capital consisting of 75% MSCI World Index and 25% Barclays U.S. Aggregate Bond Index. |
The Fund is measured against the 75% MSCI World Index 25% Barclays U.S. Aggregate Bond Index. The index is unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. The 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.
A portion of the Fund’s fees had been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower. Currently all management fees are being waived.
44 | ||||
|
Summary of Portfolio Holdings (Unaudited)
Sterling Capital Funds invested, as a percentage of net assets, in the following sectors, countries, states, funds or security types, as of September 30, 2015:
Sterling Capital Behavioral Large Cap Value Equity Fund (formerly known as Sterling Capital Large Cap Value Diversified Fund) | Percentage of net assets | ||||
Consumer Discretionary | 7.4 | % | |||
Consumer Staples | 6.0 | % | |||
Energy | 11.8 | % | |||
Financials | 27.2 | % | |||
Health Care | 11.6 | % | |||
Industrials | 11.3 | % | |||
Information Technology | 9.8 | % | |||
Materials | 1.9 | % | |||
Telecommunication Services | 3.5 | % | |||
Utilities | 7.0 | % | |||
Exchange Traded Fund | 0.9 | % | |||
Money Market Fund | 1.4 | % | |||
|
| ||||
99.8 | % | ||||
|
|
Sterling Capital Mid Value Fund | Percentage of net assets | ||||
Consumer Discretionary | 22.9 | % | |||
Energy | 1.2 | % | |||
Financials | 35.9 | % | |||
Health Care | 8.7 | % | |||
Industrials | 10.1 | % | |||
Information Technology | 17.1 | % | |||
Materials | 2.3 | % | |||
Money Market Fund | 1.9 | % | |||
|
| ||||
100.1 | % | ||||
|
|
Sterling Capital Behavioral Small Cap Value Equity Fund (formerly known as Sterling Capital Small Cap Value Diversified Fund) | Percentage of net assets | ||||
Consumer Discretionary | 10.3 | % | |||
Consumer Staples | 2.8 | % | |||
Energy | 3.5 | % | |||
Financials | 43.3 | % | |||
Health Care | 4.0 | % | |||
Industrials | 11.5 | % | |||
Information Technology | 10.9 | % | |||
Materials | 2.9 | % | |||
Telecommunication Services | 0.6 | % | |||
Utilities | 7.3 | % | |||
Exchange Traded Fund | 1.7 | % | |||
Money Market Fund | 0.9 | % | |||
|
| ||||
99.7 | % | ||||
|
|
Sterling Capital Special Opportunities Fund | Percentage of net assets | ||||
Consumer Discretionary | 17.7 | % | |||
Consumer Staples | 7.5 | % | |||
Energy | 0.0 | % | |||
Financials | 11.7 | % | |||
Health Care | 16.5 | % | |||
Industrials | 13.9 | % | |||
Information Technology | 27.7 | % | |||
Telecommunication Services | 2.7 | % | |||
Money Market Fund | 2.8 | % | |||
|
| ||||
100.5 | % | ||||
|
|
Sterling Capital Equity Income Fund | Percentage of net assets | ||||
Consumer Discretionary | 13.8 | % | |||
Consumer Staples | 7.8 | % | |||
Energy | 10.2 | % | |||
Financials | 12.8 | % | |||
Health Care | 18.5 | % | |||
Industrials | 7.9 | % | |||
Information Technology | 20.6 | % | |||
Materials | 2.4 | % | |||
Telecommunication Services | 4.5 | % | |||
Money Market Fund | 1.2 | % | |||
|
| ||||
99.7 | % | ||||
|
| ||||
Sterling Capital Long/Short Equity Fund | Long-Term Investment Percentage of net assets | ||||
Consumer Discretionary | 1.7 | % | |||
Energy | 17.3 | % | |||
Financials | 27.4 | % | |||
Health Care | 17.8 | % | |||
Information Technology | 12.0 | % | |||
Telecommunication Services | 3.8 | % | |||
Money Market Fund | 16.0 | % | |||
|
| ||||
96.0 | % | ||||
|
| ||||
Sterling Capital Long/Short Equity Fund | Investments Sold Short Percentage of net assets | ||||
Consumer Staples | 0.0 | % | |||
Energy | (2.6 | )% | |||
Exchange Traded Funds | (1.2 | )% | |||
Financials | (10.1 | )% | |||
Health Care | (5.8 | )% | |||
Industrials | (0.4 | )% | |||
Information Technology | (6.8 | )% | |||
|
| ||||
(26.9 | )% | ||||
|
| ||||
Sterling Capital Behavioral International Equity Fund | Percentage of net assets | ||||
Australia | 4.4 | % | |||
Belgium | 1.1 | % | |||
China | 0.8 | % | |||
Denmark | 1.9 | % | |||
Finland | 1.9 | % | |||
France | 9.7 | % | |||
Germany | 7.0 | % | |||
Hong Kong | 4.1 | % | |||
Ireland | 1.2 | % | |||
Israel | 2.3 | % | |||
Italy | 2.1 | % | |||
Japan | 24.4 | % | |||
Netherlands | 2.7 | % | |||
Singapore | 2.0 | % | |||
Spain | 1.5 | % | |||
Sweden | 4.8 | % | |||
Switzerland | 9.0 | % | |||
United Kingdom | 15.2 | % | |||
United States | 1.1 | % | |||
Money Market Fund | 2.4 | % | |||
|
| ||||
99.6 | % | ||||
|
|
45
Sterling Capital Funds |
Summary of Portfolio Holdings (Unaudited) |
Sterling Capital Ultra Short Bond Fund | Percentage | ||||
Asset Backed Securities | 19.4 | % | |||
Collateralized Mortgage Obligations | 0.5 | % | |||
Commercial Mortgage-Backed Securities | 17.8 | % | |||
Corporate Bonds | 58.0 | % | |||
Municipal Bonds | 1.7 | % | |||
Preferred Stocks | 0.5 | % | |||
Money Market Fund | 1.7 | % | |||
|
| ||||
99.6 | % | ||||
|
|
Sterling Capital Short Duration Bond Fund | Percentage | ||||
Asset Backed Securities | 12.3 | % | |||
Collateralized Mortgage Obligations | 1.8 | % | |||
Commercial Mortgage-Backed Securities | 14.4 | % | |||
Corporate Bonds | 65.7 | % | |||
Foreign Government Bond | 0.5 | % | |||
Mortgage-Backed Securities | 0.0 | % | |||
Municipal Bonds | 3.4 | % | |||
Preferred Stocks | 0.7 | % | |||
Money Market Fund | 1.2 | % | |||
|
| ||||
100.0 | % | ||||
|
|
Sterling Capital Intermediate U.S. Government Fund | Percentage | ||||
Asset Backed Securities | 1.2 | % | |||
Collateralized Mortgage Obligations | 6.4 | % | |||
Corporate Bonds | 3.3 | % | |||
Mortgage-Backed Securities | 8.8 | % | |||
Municipal Bonds | 4.5 | % | |||
U.S. Government Agencies | 40.7 | % | |||
U.S. Treasury Notes | 31.4 | % | |||
Money Market Fund | 3.3 | % | |||
|
| ||||
99.6 | % | ||||
|
|
Sterling Capital Total Return Bond Fund | Percentage | ||||
Asset Backed Securities | 12.3 | % | |||
Collateralized Mortgage Obligations | 7.4 | % | |||
Commercial Mortgage-Backed Securities | 15.3 | % | |||
Corporate Bonds | 41.5 | % | |||
Foreign Government Bonds | 0.5 | % | |||
Mortgage-Backed Securities | 10.2 | % | |||
Municipal Bonds | 8.9 | % | |||
Preferred Stocks | 0.9 | % | |||
U.S. Treasury Bonds | 0.4 | % | |||
U.S. Treasury Notes | 1.8 | % | |||
Money Market Fund | 0.6 | % | |||
|
| ||||
99.8 | % | ||||
|
|
Sterling Capital Corporate Fund | Percentage | ||||
Corporate Bonds | 96.9 | % | |||
Preferred Stocks | 1.4 | % | |||
Money Market Fund | 1.9 | % | |||
|
| ||||
100.2 | % | ||||
|
|
Sterling Capital Securitized Opportunities Fund | Percentage | ||||
Asset Backed Securities | 28.6 | % | |||
Collateralized Mortgage Obligations | 18.3 | % | |||
Commercial Mortgage-Backed Securities | 18.3 | % | |||
Mortgage-Backed Securities | 32.6 | % | |||
U.S. Treasury Notes | 0.8 | % | |||
Money Market Fund | 1.3 | % | |||
|
| ||||
99.9 | % | ||||
|
|
Sterling Capital Kentucky Intermediate Tax-Free Fund | Percentage | ||||
Kentucky Municipal Bonds | 95.4 | % | |||
Money Market Fund | 4.4 | % | |||
|
| ||||
99.8 | % | ||||
|
|
Sterling Capital Maryland Intermediate Tax-Free Fund | Percentage | ||||
District of Columbia Municipal Bonds | 4.9 | % | |||
Maryland Municipal Bonds | 93.7 | % | |||
Money Market Fund | 1.1 | % | |||
|
| ||||
99.7 | % | ||||
|
|
Sterling Capital North Carolina Intermediate Tax-Free Fund | Percentage | ||||
North Carolina Municipal Bonds | 95.7 | % | |||
Money Market Fund | 3.0 | % | |||
|
| ||||
98.7 | % | ||||
|
|
Sterling Capital South Carolina Intermediate Tax-Free Fund | Percentage | ||||
South Carolina Municipal Bonds | 97.6 | % | |||
Money Market Fund | 2.5 | % | |||
|
| ||||
100.1 | % | ||||
|
|
Sterling Capital Virginia Intermediate Tax-Free Fund | Percentage | ||||
District of Columbia Municipal Bonds | 1.8 | % | |||
Virginia Municipal Bonds | 97.8 | % | |||
Money Market Fund | 0.8 | % | |||
|
| ||||
100.4 | % | ||||
|
|
Sterling Capital West Virginia Intermediate Tax-Free Fund | Percentage | ||||
West Virginia Municipal Bonds | 97.7 | % | |||
Money Market Fund | 1.4 | % | |||
|
| ||||
99.1 | % | ||||
|
|
Sterling Capital Diversified Income Fund (formerly known as Sterling Capital Strategic Allocation Conservative Fund) | Percentage | ||||
Equity Funds | 39.2 | % | |||
Fixed Income Fund | 60.2 | % | |||
Money Market Fund | 1.4 | % | |||
|
| ||||
100.8 | % | ||||
|
|
Sterling Capital Strategic Allocation Balanced Fund | Percentage | ||||
Equity Funds | 63.5 | % | |||
Fixed Income Fund | 34.0 | % | |||
Money Market Fund | 2.5 | % | |||
|
| ||||
100.0 | % | ||||
|
|
Sterling Capital Strategic Allocation Growth Fund | Percentage | ||||
Equity Funds | 80.1 | % | |||
Fixed Income Fund | 17.7 | % | |||
Money Market Fund | 2.2 | % | |||
|
| ||||
100.0 | % | ||||
|
|
46
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 April 1, 2015 through September 30, 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 4/1/15 | Ending Account Value 9/30/15 | Expenses Paid During Period* 4/1/15 - 9/30/15 | Annualized Expense Ratio During Period 4/1/15 - 9/30/15 | |||||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 920.89 | $ | 5.15 | 1.07 | % | ||||||||||||||||||
Class B Shares | 1,000.00 | 917.97 | 8.75 | 1.82 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 917.76 | 8.75 | 1.82 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 922.06 | 3.95 | 0.82 | % | |||||||||||||||||||||
Sterling Capital Mid Value Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 894.92 | 5.70 | 1.20 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 891.44 | 9.34 | 1.97 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 891.44 | 9.29 | 1.96 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 896.24 | 4.52 | 0.95 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 893.80 | 6.98 | 1.47 | % | |||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 917.21 | 6.06 | 1.26 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 913.22 | 9.69 | 2.02 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 913.96 | 9.69 | 2.02 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 918.25 | 4.90 | 1.02 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 915.11 | 7.30 | 1.52 | % | |||||||||||||||||||||
Sterling Capital Special Opportunities Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 981.61 | 6.11 | 1.23 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 977.86 | 9.82 | 1.98 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 978.35 | 9.87 | 1.99 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 983.04 | 4.87 | 0.98 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 980.62 | 7.35 | 1.48 | % | |||||||||||||||||||||
Sterling Capital Equity Income Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 934.04 | 5.91 | 1.22 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 930.47 | 9.53 | 1.97 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 930.18 | 9.53 | 1.97 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 935.48 | 4.71 | 0.97 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 932.98 | 7.17 | 1.48 | % | |||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 885.23 | 15.22 | 3.22 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 882.18 | 18.64 | 3.95 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 886.68 | 13.95 | 2.95 | % | |||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 914.68 | 6.14 | 1.28 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 911.62 | 9.78 | 2.04 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 915.76 | 4.99 | 1.04 | % | |||||||||||||||||||||
Sterling Capital Ultra Short Bond Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,001.21 | 4.21 | 0.84 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,001.56 | 2.86 | 0.57 | % | |||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 999.48 | 4.11 | 0.82 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 995.75 | 7.85 | 1.57 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,000.75 | 2.86 | 0.57 | % | |||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 997.67 | 4.61 | 0.92 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 994.97 | 8.35 | 1.67 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 994.99 | 8.35 | 1.67 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 999.04 | 3.36 | 0.67 | % |
47
Sterling Capital Funds |
Expense Example (Unaudited) |
Beginning Account Value 4/1/15 | Ending Account Value 9/30/15 | Expenses Paid During Period* 4/1/15 - 9/30/15 | Annualized Expense Ratio During Period 4/1/15 - 9/30/15 | |||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 991.97 | $ | 3.70 | 0.74 | % | ||||||||||||||||||
Class B Shares | 1,000.00 | 988.19 | 7.53 | 1.51 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 988.27 | 7.48 | 1.50 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 993.27 | 2.45 | 0.49 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 990.65 | 4.99 | 1.00 | % | |||||||||||||||||||||
Sterling Capital Corporate Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 990.80 | 4.54 | 0.91 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 987.02 | 8.27 | 1.66 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 992.03 | 3.30 | 0.66 | % | |||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,004.14 | 4.27 | 0.85 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,000.32 | 8.02 | 1.60 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,005.37 | 3.02 | 0.60 | % | |||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,005.99 | 4.83 | 0.96 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,003.22 | 8.59 | 1.71 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,007.27 | 3.57 | 0.71 | % | |||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,003.71 | 4.47 | 0.89 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,000.83 | 8.23 | 1.64 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,005.84 | 3.22 | 0.64 | % | |||||||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,006.44 | 4.12 | 0.82 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,002.70 | 7.88 | 1.57 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,007.73 | 2.87 | 0.57 | % | |||||||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,005.90 | 4.22 | 0.84 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,002.13 | 7.98 | 1.59 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,006.24 | 2.97 | 0.59 | % | |||||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,005.60 | 4.17 | 0.83 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,001.85 | 7.93 | 1.58 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,006.87 | 2.92 | 0.58 | % | |||||||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,006.71 | 4.18 | 0.83 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,002.97 | 7.93 | 1.58 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,007.98 | 2.92 | 0.58 | % | |||||||||||||||||||||
Sterling Capital Diversified Income Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 955.41 | 2.25 | 0.46 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 952.22 | 5.92 | 1.21 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 952.21 | 5.97 | 1.22 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 956.21 | 0.98 | 0.20 | % | |||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 949.53 | 2.00 | 0.41 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 946.21 | 5.66 | 1.16 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 946.80 | 5.66 | 1.16 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 952.00 | 0.78 | 0.16 | % | |||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 939.95 | 2.14 | 0.44 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 936.47 | 5.78 | 1.19 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 936.17 | 5.78 | 1.19 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 940.40 | 0.92 | 0.19 | % |
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 183 days divided by 365 (to reflect the six month period). |
48
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 4/1/15 | Ending Account Value 9/30/15 | Expenses Paid During Period* 4/1/15 - 9/30/15 | Annualized Expense Ratio During Period 4/1/15 - 9/30/15 | |||||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,019.70 | $ | 5.42 | 1.07 | % | ||||||||||||||||||
Class B Shares | 1,000.00 | 1,015.94 | 9.20 | 1.82 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,015.94 | 9.20 | 1.82 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,020.96 | 4.15 | 0.82 | % | |||||||||||||||||||||
Sterling Capital Mid Value Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,019.05 | 6.07 | 1.20 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,015.19 | 9.95 | 1.97 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,015.24 | 9.90 | 1.96 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,020.31 | 4.81 | 0.95 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 1,017.70 | 7.44 | 1.47 | % | |||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,018.75 | 6.38 | 1.26 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,014.94 | 10.20 | 2.02 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,014.94 | 10.20 | 2.02 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,019.95 | 5.16 | 1.02 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 1,017.45 | 7.69 | 1.52 | % | |||||||||||||||||||||
Sterling Capital Special Opportunities Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,018.90 | 6.23 | 1.23 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,015.14 | 10.00 | 1.98 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,015.09 | 10.05 | 1.99 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,020.16 | 4.96 | 0.98 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 1,017.65 | 7.49 | 1.48 | % | |||||||||||||||||||||
Sterling Capital Equity Income Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,018.95 | 6.17 | 1.22 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,015.19 | 9.95 | 1.97 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,015.19 | 9.95 | 1.97 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,020.21 | 4.91 | 0.97 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 1,017.65 | 7.49 | 1.48 | % | |||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,008.92 | 16.22 | 3.22 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,005.26 | 19.86 | 3.95 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,010.28 | 14.87 | 2.95 | % | |||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,018.65 | 6.48 | 1.28 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,014.84 | 10.30 | 2.04 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,019.85 | 5.27 | 1.04 | % | |||||||||||||||||||||
Sterling Capital Ultra Short Bond Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.86 | 4.26 | 0.84 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.21 | 2.89 | 0.57 | % | |||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.96 | 4.15 | 0.82 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.20 | 7.94 | 1.57 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.21 | 2.89 | 0.57 | % | |||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.46 | 4.66 | 0.92 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,016.70 | 8.44 | 1.67 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,016.70 | 8.44 | 1.67 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,021.71 | 3.40 | 0.67 | % |
49
Sterling Capital Funds |
Expense Example (Unaudited) |
Beginning Account Value 4/1/15 | Ending Account Value 9/30/15 | Expenses Paid During Period* 4/1/15 - 9/30/15 | Annualized Expense Ratio During Period 4/1/15 - 9/30/15 | |||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,021.36 | $ | 3.75 | 0.74 | % | ||||||||||||||||||
Class B Shares | 1,000.00 | 1,017.50 | 7.64 | 1.51 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.55 | 7.59 | 1.50 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.61 | 2.48 | 0.49 | % | |||||||||||||||||||||
Class R Shares | 1,000.00 | 1,020.05 | 5.06 | 1.00 | % | |||||||||||||||||||||
Sterling Capital Corporate Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.51 | 4.61 | 0.91 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,016.75 | 8.39 | 1.66 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,021.76 | 3.35 | 0.66 | % | |||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.81 | 4.31 | 0.85 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.05 | 8.09 | 1.60 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.06 | 3.04 | 0.60 | % | |||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.26 | 4.86 | 0.96 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,016.50 | 8.64 | 1.71 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,021.51 | 3.60 | 0.71 | % | |||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.61 | 4.51 | 0.89 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,016.85 | 8.29 | 1.64 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,021.86 | 3.24 | 0.64 | % | |||||||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.96 | 4.15 | 0.82 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.20 | 7.94 | 1.57 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.21 | 2.89 | 0.57 | % | |||||||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.86 | 4.26 | 0.84 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.10 | 8.04 | 1.59 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.11 | 2.99 | 0.59 | % | |||||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.91 | 4.20 | 0.83 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.15 | 7.99 | 1.58 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.16 | 2.94 | 0.58 | % | |||||||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,020.91 | 4.20 | 0.83 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,017.15 | 7.99 | 1.58 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,022.16 | 2.94 | 0.58 | % | |||||||||||||||||||||
Sterling Capital Diversified Income Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,022.76 | 2.33 | 0.46 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,019.00 | 6.12 | 1.21 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,018.95 | 6.17 | 1.22 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,024.07 | 1.01 | 0.20 | % | |||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,023.01 | 2.08 | 0.41 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,019.25 | 5.87 | 1.16 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,019.25 | 5.87 | 1.16 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,024.27 | 0.81 | 0.16 | % | |||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | ||||||||||||||||||||||||||
Class A Shares | 1,000.00 | 1,022.86 | 2.23 | 0.44 | % | |||||||||||||||||||||
Class B Shares | 1,000.00 | 1,019.10 | 6.02 | 1.19 | % | |||||||||||||||||||||
Class C Shares | 1,000.00 | 1,019.10 | 6.02 | 1.19 | % | |||||||||||||||||||||
Institutional Shares | 1,000.00 | 1,024.12 | 0.96 | 0.19 | % |
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 183 days divided by 365 (to reflect the six month period). |
50
Sterling Capital Behavioral Large Cap Value Equity Fund |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 97.5% |
| |||||
Consumer Discretionary — 7.4% | ||||||
16,900 | AMC Networks, Inc., Class A(a) | $ 1,236,573 | ||||
59,750 | Carnival Corp. | 2,969,575 | ||||
54,450 | Comcast Corp., Class A | 3,116,718 | ||||
375,000 | Ford Motor Co. | 5,088,750 | ||||
10,829 | Lear Corp. | 1,177,978 | ||||
65,200 | Target Corp. | 5,128,632 | ||||
|
| |||||
18,718,226 | ||||||
|
| |||||
Consumer Staples — 6.0% | ||||||
61,900 | Altria Group, Inc. | 3,367,360 | ||||
7,250 | Clorox Co. (The) | 837,593 | ||||
43,950 | CVS Caremark Corp. | 4,240,296 | ||||
24,000 | Herbalife, Ltd.(a) | 1,308,000 | ||||
13,650 | Ingredion, Inc. | 1,191,781 | ||||
57,442 | Kroger Co. (The) | 2,071,933 | ||||
28,500 | Nu Skin Enterprises, Inc., Class A | 1,176,480 | ||||
49,500 | Pilgrim’s Pride Corp. | 1,028,610 | ||||
|
| |||||
15,222,053 | ||||||
|
| |||||
Energy — 11.8% | ||||||
72,650 | Atwood Oceanics, Inc. | 1,075,947 | ||||
32,100 | CVR Energy, Inc. | 1,317,705 | ||||
241,600 | Denbury Resources, Inc. | 589,504 | ||||
20,150 | Dril-Quip, Inc.(a) | 1,173,133 | ||||
76,750 | Ensco PLC, Class A | 1,080,640 | ||||
9,850 | Exxon Mobil Corp. | 732,347 | ||||
36,000 | FMC Technologies, Inc.(a) | 1,116,000 | ||||
68,800 | Frank’s International NV | 1,054,704 | ||||
19,600 | Halliburton Co. | 692,860 | ||||
28,650 | HollyFrontier Corp. | 1,399,266 | ||||
97,350 | Marathon Petroleum Corp. | 4,510,225 | ||||
92,700 | Noble Corp. PLC | 1,011,357 | ||||
28,950 | Oceaneering International, Inc. | 1,137,156 | ||||
43,900 | PBF Energy, Inc., Class A | 1,239,297 | ||||
64,100 | Phillips 66 | 4,925,444 | ||||
144,850 | Seadrill, Ltd. | 854,615 | ||||
14,100 | Tesoro Corp. | 1,371,084 | ||||
76,675 | Valero Energy Corp. | 4,608,167 | ||||
|
| |||||
29,889,451 | ||||||
|
| |||||
Financials — 27.2% | ||||||
4,850 | Assurant, Inc. | 383,199 | ||||
119,450 | Bank of New York Mellon Corp. (The) | 4,676,467 | ||||
65,150 | CBL & Associates Properties, Inc., REIT | 895,813 | ||||
35,950 | Columbia Property Trust, Inc., REIT | 834,040 | ||||
132,800 | First Niagara Financial Group, Inc. | 1,355,888 | ||||
38,200 | Gaming and Leisure Properties, Inc., REIT | 1,134,540 | ||||
33,350 | Goldman Sachs Group, Inc. (The) | 5,794,896 | ||||
124,100 | Huntington Bancshares, Inc. | 1,315,460 | ||||
163,100 | JPMorgan Chase & Co. | 9,944,207 | ||||
23,550 | Lazard, Ltd., Class A | 1,019,715 | ||||
14,400 | Mid-America Apartment Communities, Inc., REIT | 1,178,928 | ||||
83,050 | Old Republic International Corp. | 1,298,902 | ||||
55,936 | Piedmont Office Realty Trust, Inc., Class A, REIT | 1,000,695 | ||||
22,566 | PNC Financial Services Group, Inc. (The) | 2,012,887 | ||||
47,250 | Progressive Corp. (The) | 1,447,740 | ||||
23,400 | Prologis, Inc., REIT | 910,260 | ||||
60,443 | Prudential Financial, Inc. | 4,606,361 | ||||
57,900 | Santander Consumer USA Holdings, Inc.(a) | 1,182,318 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Financials — (continued) | ||||||
117,900 | SunTrust Banks, Inc. | $ 4,508,496 | ||||
129,400 | Synchrony Financial(a) | 4,050,220 | ||||
47,500 | Travelers Cos., Inc. (The) | 4,727,675 | ||||
205,749 | Wells Fargo & Co. | 10,565,211 | ||||
62,700 | Welltower, Inc., REIT | 4,246,044 | ||||
|
| |||||
69,089,962 | ||||||
|
| |||||
Health Care — 11.6% | ||||||
35,157 | Aetna, Inc. | 3,846,527 | ||||
26,300 | Amgen, Inc. | 3,637,816 | ||||
33,552 | Anthem, Inc. | 4,697,280 | ||||
38,350 | Gilead Sciences, Inc. | 3,765,587 | ||||
56,000 | HCA Holdings, Inc.(a) | 4,332,160 | ||||
291,350 | Pfizer, Inc. | 9,151,303 | ||||
|
| |||||
29,430,673 | ||||||
|
| |||||
Industrials — 11.3% | ||||||
22,950 | AGCO Corp. | 1,070,159 | ||||
17,000 | Alaska Air Group, Inc. | 1,350,650 | ||||
28,800 | Boeing Co. (The) | 3,771,360 | ||||
88,511 | Delta Air Lines, Inc. | 3,971,488 | ||||
35,223 | General Dynamics Corp. | 4,859,013 | ||||
184,550 | General Electric Co. | 4,654,351 | ||||
9,650 | Huntington Ingalls Industries, Inc. | 1,033,997 | ||||
28,183 | Northrop Grumman Corp. | 4,676,969 | ||||
15,950 | Orbital ATK, Inc. | 1,146,327 | ||||
24,200 | Spirit AeroSystems Holdings, Inc., Class A(a) | 1,169,828 | ||||
44,450 | Vectrus, Inc.(a) | 979,678 | ||||
|
| |||||
28,683,820 | ||||||
|
| |||||
Information Technology — 9.8% | ||||||
27,850 | Accenture PLC, Class A | 2,736,541 | ||||
144,800 | Activision Blizzard, Inc. | 4,472,872 | ||||
36,100 | Apple, Inc. | 3,981,830 | ||||
33,450 | Avago Technologies, Ltd. | 4,181,585 | ||||
32,450 | CDW Corp. | 1,325,907 | ||||
19,050 | Computer Sciences Corp. | 1,169,289 | ||||
22,700 | Electronic Arts, Inc.(a) | 1,537,925 | ||||
15,150 | Harris Corp. | 1,108,223 | ||||
45,800 | Juniper Networks, Inc. | 1,177,518 | ||||
24,350 | Keysight Technologies, Inc.(a) | 750,954 | ||||
70,950 | Nuance Communications, Inc.(a) | 1,161,451 | ||||
66,800 | Western Union Co. (The) | 1,226,448 | ||||
|
| |||||
24,830,543 | ||||||
|
| |||||
Materials — 1.9% | ||||||
115,500 | Dow Chemical Co. (The) | 4,897,200 | ||||
|
| |||||
Telecommunication Services — 3.5% |
| |||||
143,700 | AT&T, Inc. | 4,681,746 | ||||
98,550 | Verizon Communications, Inc. | 4,287,911 | ||||
|
| |||||
8,969,657 | ||||||
|
| |||||
Utilities — 7.0% | ||||||
97,950 | AES Corp. | 958,931 | ||||
67,200 | Consolidated Edison, Inc. | 4,492,320 | ||||
151,500 | Exelon Corp. | 4,499,550 | ||||
37,950 | FirstEnergy Corp. | 1,188,214 | ||||
3,150 | NextEra Energy, Inc. | 307,283 | ||||
112,800 | Public Service Enterprise Group, Inc. | 4,755,648 |
Continued
51
Sterling Capital Behavioral Large Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Utilities — (continued) | ||||||
32,600 | Southern Co. (The) | $ | 1,457,220 | |||
|
| |||||
17,659,166 | ||||||
|
| |||||
Total Common Stocks | 247,390,751 | |||||
|
| |||||
EXCHANGE TRADED FUND — 0.9% | ||||||
24,296 | iShares Russell 1000 Value ETF | 2,266,331 | ||||
|
| |||||
Total Exchange Traded Fund | 2,266,331 | |||||
|
|
Shares | Fair Value | |||||
MONEY MARKET FUND — 1.4% | ||||||
3,627,173 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | $ | 3,627,173 | |||
|
| |||||
Total Money Market Fund | 3,627,173 | |||||
|
| |||||
Total Investments — 99.8% | 253,284,255 | |||||
Net Other Assets (Liabilities) — 0.2% | 617,329 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 253,901,584 | ||||
|
|
(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.
52
Sterling Capital Mid Value Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 98.2% |
| |||||
Consumer Discretionary — 22.9% | ||||||
1,522,600 | Ascena Retail Group, Inc.(a) | $ | 21,179,366 | |||
370,950 | CBS Corp., Class B | 14,800,905 | ||||
783,350 | Chico’s FAS, Inc. | 12,322,095 | ||||
838,042 | Gentex Corp. | 12,989,651 | ||||
927,200 | Interpublic Group of Cos., Inc. (The) | 17,737,336 | ||||
188,250 | Kohl’s Corp. | 8,717,857 | ||||
1,642,765 | News Corp., Class B | 21,060,247 | ||||
415,185 | Omnicom Group, Inc. | 27,360,692 | ||||
249,519 | Universal Technical Institute, Inc. | 875,812 | ||||
154,582 | Viacom, Inc., Class B | 6,670,213 | ||||
|
| |||||
143,714,174 | ||||||
|
| |||||
Energy — 1.2% | ||||||
698,645 | Noble Corp. PLC | 7,622,217 | ||||
|
| |||||
Financials — 35.9% | ||||||
707,400 | American Capital, Ltd.(a) | 8,601,984 | ||||
1,716,575 | Annaly Capital Management, Inc., REIT | 16,942,595 | ||||
23,025 | Aspen Insurance Holdings, Ltd. | 1,069,972 | ||||
386,903 | Assured Guaranty, Ltd. | 9,672,575 | ||||
958,100 | E*TRADE Financial Corp.(a) | 25,226,773 | ||||
331,600 | Endurance Specialty Holdings, Ltd. | 20,237,548 | ||||
97,030 | Enstar Group, Ltd.(a) | 14,554,500 | ||||
7,000 | KCG Holdings, Inc., Class A(a) | 76,790 | ||||
1,359,812 | Leucadia National Corp. | 27,549,791 | ||||
385,500 | Lincoln National Corp. | 18,295,830 | ||||
32,259 | Markel Corp.(a) | 25,867,202 | ||||
360,253 | Ryman Hospitality Properties, Inc., REIT | 17,735,255 | ||||
222,200 | T. Rowe Price Group, Inc. | 15,442,900 | ||||
606,300 | Willis Group Holdings PLC | 24,840,111 | ||||
|
| |||||
226,113,826 | ||||||
|
| |||||
Health Care — 8.7% | ||||||
131,404 | Becton Dickinson & Co. | 17,432,055 | ||||
176,378 | Laboratory Corp. of America Holdings(a) | 19,131,722 | ||||
194,322 | Zimmer Biomet Holdings, Inc. | 18,252,665 | ||||
|
| |||||
54,816,442 | ||||||
|
| |||||
Industrials — 10.1% | ||||||
177,650 | AGCO Corp. | 8,283,819 | ||||
1,198,620 | Civeo Corp. | 1,773,958 | ||||
315,201 | EnPro Industries, Inc. | 12,346,423 | ||||
705,400 | Hertz Global Holdings, Inc.(a) | 11,801,342 | ||||
349,400 | Jacobs Engineering Group, Inc.(a) | 13,078,042 | ||||
564,800 | Tetra Tech, Inc. | 13,730,288 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Industrials — (continued) | ||||||
602,200 | Uti Worldwide, Inc.(a) | $ | 2,764,098 | |||
|
| |||||
63,777,970 | ||||||
|
| |||||
Information Technology — 17.1% | ||||||
1,217,800 | DHI Group, Inc.(a) | 8,902,118 | ||||
99,082 | DST Systems, Inc. | 10,417,481 | ||||
253,600 | Fidelity National Information Services, Inc. | 17,011,488 | ||||
609,913 | II-VI, Inc.(a) | 9,807,401 | ||||
877,300 | Knowles Corp.(a) | 16,168,639 | ||||
56,695 | MicroStrategy, Inc., Class A(a) | 11,138,867 | ||||
510,320 | NCR Corp.(a) | 11,609,780 | ||||
61,850 | NeuStar, Inc., Class A(a) | 1,682,939 | ||||
455,300 | Symantec Corp. | 8,864,691 | ||||
642,200 | Western Union Co. (The) | 11,790,792 | ||||
|
| |||||
107,394,196 | ||||||
|
| |||||
Materials — 2.3% | ||||||
432,875 | Chemtura Corp.(a) | 12,388,883 | ||||
323,100 | Rayonier Advanced Materials, Inc. | 1,977,372 | ||||
|
| |||||
14,366,255 | ||||||
|
| |||||
Total Common Stocks | 617,805,080 | |||||
|
| |||||
MONEY MARKET FUND — 1.9% | ||||||
11,953,797 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | 11,953,797 | ||||
|
| |||||
Total Money Market Fund | 11,953,797 | |||||
|
| |||||
Total Investments — 100.1% | 629,758,877 | |||||
Net Other Assets (Liabilities) — (0.1)% | (433,114 | ) | ||||
|
| |||||
NET ASSETS — 100.0% | $ | 629,325,763 | ||||
|
|
(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.
53
Sterling Capital Behavioral Small Cap Value Equity Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 97.1% |
| |||||
Consumer Discretionary — 10.3% | ||||||
9,675 | Big Lots, Inc. | $ | 463,626 | |||
34,960 | Boyd Gaming Corp.(a) | 569,848 | ||||
31,258 | Build-A-Bear Workshop, Inc.(a) | 590,464 | ||||
20,049 | Caleres, Inc. | 612,096 | ||||
6,675 | Children’s Place, Inc. (The) | 384,947 | ||||
22,020 | Citi Trends, Inc. | 514,828 | ||||
24,905 | Cooper Tire & Rubber Co. | 983,997 | ||||
32,329 | Express, Inc.(a) | 577,719 | ||||
10,332 | GameStop Corp., Class A | 425,782 | ||||
39,643 | Gray Television, Inc.(a) | 505,845 | ||||
36,155 | Isle of Capri Casinos, Inc.(a) | 630,543 | ||||
49,837 | K12, Inc.(a) | 619,972 | ||||
5,987 | Lear Corp. | 651,266 | ||||
11,564 | Marriott Vacations Worldwide Corp. | 787,971 | ||||
27,893 | MDC Partners, Inc., Class A | 514,068 | ||||
18,977 | Movado Group, Inc. | 490,176 | ||||
29,279 | PetMed Express, Inc. | 471,392 | ||||
12,230 | Pinnacle Entertainment, Inc.(a) | 413,863 | ||||
75,722 | Ruby Tuesday, Inc.(a) | 470,234 | ||||
14,198 | Scholastic Corp. | 553,154 | ||||
24,327 | SeaWorld Entertainment, Inc. | 433,264 | ||||
23,536 | Smith & Wesson Holding Corp.(a) | 397,052 | ||||
8,888 | Strayer Education, Inc.(a) | 488,573 | ||||
58,820 | ZAGG, Inc.(a) | 399,388 | ||||
|
| |||||
12,950,068 | ||||||
|
| |||||
Consumer Staples — 2.8% | ||||||
51,864 | Central Garden & Pet Co., Class A(a) | 835,529 | ||||
34,090 | Dean Foods Co. | 563,167 | ||||
16,268 | Ingles Markets, Inc., Class A | 778,098 | ||||
5,308 | Ingredion, Inc. | 463,441 | ||||
5,322 | Sanderson Farms, Inc. | 364,930 | ||||
20,689 | SpartanNash Co. | 534,811 | ||||
|
| |||||
3,539,976 | ||||||
|
| |||||
Energy — 3.5% | ||||||
29,236 | Alon USA Energy, Inc. | 528,295 | ||||
80,800 | Basic Energy Services, Inc.(a) | 266,640 | ||||
12,659 | CVR Energy, Inc. | 519,652 | ||||
24,630 | Frank’s International NV | 377,578 | ||||
222,712 | Frontline, Ltd.(a) | 599,095 | ||||
23,262 | Matrix Service Co.(a) | 522,697 | ||||
37,586 | Noble Corp. PLC | 410,063 | ||||
7,837 | Pacific Ethanol, Inc.(a) | 50,862 | ||||
53,285 | Parker Drilling Co.(a) | 140,140 | ||||
10,171 | REX American Resources Corp.(a) | 514,856 | ||||
10,190 | Western Refining, Inc. | 449,583 | ||||
|
| |||||
4,379,461 | ||||||
|
| |||||
Financials — 43.3% | ||||||
27,431 | AG Mortgage Investment Trust, Inc., REIT | 417,500 | ||||
12,771 | Allied World Assurance Co. Holdings AG | 487,469 | ||||
31,973 | American Equity Investment Life Holding Co. | 745,291 | ||||
7,420 | American Financial Group, Inc. | 511,312 | ||||
13,976 | AMERISAFE, Inc. | 695,026 | ||||
11,732 | AmTrust Financial Services, Inc. | 738,881 | ||||
128,536 | Anworth Mortgage Asset Corp., REIT | 634,968 | ||||
34,583 | Apollo Commercial Real Estate Finance, Inc., REIT | 543,299 | ||||
52,971 | Ares Commercial Real Estate Corp., REIT | 635,122 | ||||
14,785 | Argo Group International Holdings, Ltd. | 836,683 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Financials — (continued) | ||||||
69,978 | Ashford Hospitality Trust, Inc., REIT | $ | 426,866 | |||
10,689 | Aspen Insurance Holdings, Ltd. | 496,718 | ||||
7,209 | Assurant, Inc. | 569,583 | ||||
17,011 | Assured Guaranty, Ltd. | 425,275 | ||||
44,473 | Banc of California, Inc. | 545,684 | ||||
41,504 | BBCN Bancorp, Inc. | 623,390 | ||||
21,271 | Berkshire Hills Bancorp, Inc. | 585,803 | ||||
23,375 | BioMed Realty Trust, Inc., REIT | 467,033 | ||||
24,369 | BNC Bancorp | 541,723 | ||||
6,983 | BOK Financial Corp. | 451,870 | ||||
52,471 | Brookline Bancorp, Inc. | 532,056 | ||||
9,933 | Cardinal Financial Corp. | 228,558 | ||||
22,339 | Cash America International, Inc. | 624,822 | ||||
26,539 | Cathay General Bancorp | 795,108 | ||||
24,535 | Central Pacific Financial Corp. | 514,499 | ||||
18,914 | Chemical Financial Corp. | 611,868 | ||||
33,220 | Chimera Investment Corp., REIT | 444,151 | ||||
57,193 | CNO Financial Group, Inc. | 1,075,800 | ||||
14,936 | Community Trust Bancorp, Inc. | 530,377 | ||||
98,424 | CorEnergy Infrastructure Trust, Inc., REIT | 435,034 | ||||
115,886 | Cowen Group, Inc., Class A(a) | 528,440 | ||||
28,296 | Customers Bancorp, Inc.(a) | 727,207 | ||||
34,837 | Dime Community Bancshares, Inc. | 588,745 | ||||
27,342 | Employers Holdings, Inc. | 609,453 | ||||
4,286 | Enstar Group, Ltd.(a) | 642,900 | ||||
25,597 | Enterprise Financial Services Corp. | 644,276 | ||||
10,306 | FBL Financial Group, Inc., Class A | 634,025 | ||||
18,490 | Federated National Holding Co. | 444,130 | ||||
7,255 | Fidelity & Guaranty Life | 178,038 | ||||
35,006 | Fidelity Southern Corp. | 740,027 | ||||
26,380 | First American Financial Corp. | 1,030,667 | ||||
61,961 | First Commonwealth Financial Corp. | 563,225 | ||||
32,662 | First Financial Bancorp | 623,191 | ||||
19,415 | First Interstate BancSystem, Inc., Class A | 540,514 | ||||
3,117 | First Merchants Corp. | 81,728 | ||||
16,034 | First NBC Bank Holding Co.(a) | 561,831 | ||||
47,682 | First Niagara Financial Group, Inc. | 486,833 | ||||
28,030 | Flushing Financial Corp. | 561,161 | ||||
21,343 | Forest City Enterprises, Inc., Class A(a) | 429,635 | ||||
12,256 | Great Southern Bancorp, Inc. | 530,685 | ||||
6,632 | Hanover Insurance Group, Inc. (The) | 515,306 | ||||
15,551 | Heartland Financial USA, Inc. | 564,346 | ||||
29,002 | HomeStreet, Inc.(a) | 669,946 | ||||
20,865 | Horace Mann Educators Corp. | 693,135 | ||||
7,168 | Infinity Property & Casualty Corp. | 577,311 | ||||
18,966 | INTL. FCStone, Inc.(a) | 468,271 | ||||
44,553 | KCG Holdings, Inc., Class A(a) | 488,746 | ||||
48,197 | Maiden Holdings, Ltd. | 668,974 | ||||
85,346 | MBIA, Inc.(a) | 518,904 | ||||
23,544 | Meta Financial Group, Inc. | 983,433 | ||||
8,807 | Navigators Group, Inc. (The)(a) | 686,770 | ||||
15,102 | Nelnet, Inc., Class A | 522,680 | ||||
65,362 | New Residential Investment Corp., REIT | 856,242 | ||||
49,339 | Northwest Bancshares, Inc. | 641,407 | ||||
28,064 | Old Republic International Corp. | 438,921 | ||||
37,159 | Oritani Financial Corp. | 580,424 | ||||
3,175 | PartnerRe, Ltd. | 440,944 | ||||
23,800 | Peoples Bancorp, Inc. | 494,802 | ||||
14,695 | Popular, Inc. | 444,230 | ||||
32,805 | Provident Financial Services, Inc. | 639,698 | ||||
53,865 | Radian Group, Inc. | 856,992 |
Continued
54
Sterling Capital Behavioral Small Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Financials — (continued) | ||||||
29,926 | Regional Management Corp.(a) | $ | 463,853 | |||
5,618 | Reinsurance Group of America, Inc. | 508,935 | ||||
4,441 | RenaissanceRe Holdings, Ltd. | 472,167 | ||||
28,009 | Selective Insurance Group, Inc. | 869,960 | ||||
15,696 | Springleaf Holdings, Inc.(a) | 686,229 | ||||
19,720 | Starwood Property Trust, Inc., REIT | 404,654 | ||||
6,404 | Taubman Centers, Inc., REIT | 442,388 | ||||
23,327 | Territorial Bancorp, Inc. | 607,435 | ||||
21,783 | TriCo Bancshares | 535,208 | ||||
26,762 | Trustmark Corp. | 620,076 | ||||
48,861 | Two Harbors Investment Corp., REIT | 430,954 | ||||
41,225 | United Financial Bancorp, Inc. | 537,986 | ||||
21,581 | United Fire Group, Inc. | 756,414 | ||||
32,549 | Universal Insurance Holdings, Inc. | 961,497 | ||||
10,768 | Validus Holdings, Ltd. | 485,314 | ||||
29,638 | Walker & Dunlop, Inc.(a) | 772,959 | ||||
34,003 | Washington Federal, Inc. | 773,568 | ||||
38,354 | Western Asset Mortgage Capital Corp., REIT | 483,644 | ||||
50,955 | Wilshire Bancorp, Inc. | 535,537 | ||||
15,186 | Wintrust Financial Corp. | 811,388 | ||||
20,265 | WSFS Financial Corp. | 583,835 | ||||
24,441 | Yadkin Financial Corp. | 525,237 | ||||
|
| |||||
54,339,200 | ||||||
|
| |||||
Health Care — 4.0% | ||||||
12,696 | Amsurg Corp.(a) | 986,606 | ||||
5,066 | Cambrex Corp.(a) | 201,019 | ||||
12,152 | Centene Corp.(a) | 659,003 | ||||
9,336 | Community Health Systems, Inc.(a) | 399,301 | ||||
50,115 | Infinity Pharmaceuticals, Inc.(a) | 423,472 | ||||
7,290 | LifePoint Health, Inc.(a) | 516,861 | ||||
8,970 | Molina Healthcare, Inc.(a) | 617,585 | ||||
29,437 | Quality Systems, Inc. | 367,374 | ||||
12,213 | Surgical Care Affiliates, Inc.(a) | 399,243 | ||||
21,706 | Triple-S Management Corp., Class B(a) | 386,584 | ||||
|
| |||||
4,957,048 | ||||||
|
| |||||
Industrials — 11.5% | ||||||
35,330 | ACCO Brands Corp.(a) | 249,783 | ||||
29,817 | Aegion Corp.(a) | 491,384 | ||||
25,493 | Aerojet Rocketdyne Holdings, Inc.(a) | 412,477 | ||||
11,832 | AGCO Corp. | 551,726 | ||||
10,798 | Alaska Air Group, Inc. | 857,901 | ||||
21,857 | ArcBest Corp. | 563,255 | ||||
21,512 | Comfort Systems USA, Inc. | 586,417 | ||||
18,785 | Continental Building Products, Inc.(a) | 385,844 | ||||
18,906 | CRA International, Inc.(a) | 407,991 | ||||
30,137 | DigitalGlobe, Inc.(a) | 573,206 | ||||
24,983 | Douglas Dynamics, Inc. | 496,162 | ||||
27,318 | Global Brass & Copper Holdings, Inc. | 560,292 | ||||
37,224 | Hawaiian Holdings, Inc.(a) | 918,688 | ||||
22,852 | Heidrick & Struggles International, Inc. | 444,471 | ||||
4,220 | Huntington Ingalls Industries, Inc. | 452,173 | ||||
11,189 | Jacobs Engineering Group, Inc.(a) | 418,804 | ||||
34,425 | JetBlue Airways Corp.(a) | 887,132 | ||||
11,622 | Kadant, Inc. | 453,374 | ||||
7,778 | Kaman Corp. | 278,841 | ||||
22,930 | Matson, Inc. | 882,576 | ||||
19,413 | MYR Group, Inc.(a) | 508,621 | ||||
11,778 | Owens Corning | 493,616 | ||||
23,586 | RR Donnelley & Sons Co. | 343,412 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Industrials — (continued) | ||||||
41,533 | SkyWest, Inc. | $ | 692,770 | |||
63,308 | Titan International, Inc. | 418,466 | ||||
8,195 | TrueBlue, Inc.(a) | 184,142 | ||||
12,963 | Virgin America, Inc.(a) | 443,723 | ||||
45,611 | Wabash National Corp.(a) | 483,020 | ||||
|
| |||||
14,440,267 | ||||||
|
| |||||
Information Technology — 10.9% |
| |||||
7,692 | Arrow Electronics, Inc.(a) | 425,214 | ||||
10,303 | Avnet, Inc. | 439,732 | ||||
37,569 | Blucora, Inc.(a) | 517,325 | ||||
42,231 | Brocade Communications Systems, Inc. | 438,358 | ||||
14,637 | Cirrus Logic, Inc.(a) | 461,212 | ||||
18,326 | Convergys Corp. | 423,514 | ||||
15,141 | CSG Systems International, Inc. | 466,343 | ||||
16,045 | DTS, Inc.(a) | 428,401 | ||||
66,903 | EarthLink Holdings Corp. | 520,505 | ||||
8,834 | EchoStar Corp., Class A(a) | 380,127 | ||||
9,224 | First Solar, Inc.(a) | 394,326 | ||||
15,898 | Ingram Micro, Inc., Class A | 433,062 | ||||
23,625 | Insight Enterprises, Inc.(a) | 610,706 | ||||
3,160 | Jabil Circuit, Inc. | 70,689 | ||||
86,693 | Monster Worldwide, Inc.(a) | 556,569 | ||||
20,011 | NETGEAR, Inc.(a) | 583,721 | ||||
22,198 | NeuStar, Inc., Class A(a) | 604,008 | ||||
55,811 | Photronics, Inc.(a) | 505,648 | ||||
23,920 | Progress Software Corp.(a) | 617,854 | ||||
39,105 | Sanmina Corp.(a) | 835,674 | ||||
28,377 | Sykes Enterprises, Inc.(a) | 723,614 | ||||
21,207 | Take-Two Interactive Software, Inc.(a) | 609,277 | ||||
11,944 | Tech Data Corp.(a) | 818,164 | ||||
16,874 | TeleTech Holdings, Inc. | 452,054 | ||||
23,082 | Teradyne, Inc. | 415,707 | ||||
15,563 | Tessera Technologies, Inc. | 504,397 | ||||
22,044 | Web.com Group, Inc.(a) | 464,688 | ||||
|
| |||||
13,700,889 | ||||||
|
| |||||
Materials — 2.9% | ||||||
7,784 | Avery Dennison Corp. | 440,341 | ||||
19,763 | Berry Plastics Group, Inc.(a) | 594,273 | ||||
11,029 | Domtar Corp. | 394,287 | ||||
24,559 | Graphic Packaging Holding Co. | 314,110 | ||||
8,934 | Kaiser Aluminum Corp. | 716,953 | ||||
39,677 | Trecora Resources(a) | 492,788 | ||||
14,214 | U.S. Concrete, Inc.(a) | 679,287 | ||||
|
| |||||
3,632,039 | ||||||
|
| |||||
Telecommunication Services — 0.6% |
| |||||
49,557 | Intelsat SA(a) | 318,652 | ||||
77,545 | Iridium Communications, Inc.(a) | 476,902 | ||||
|
| |||||
795,554 | ||||||
|
| |||||
Utilities — 7.3% | ||||||
25,167 | Avista Corp. | 836,803 | ||||
18,525 | Black Hills Corp. | 765,823 | ||||
27,597 | Empire District Electric Co., (The) | 607,962 | ||||
16,059 | Great Plains Energy, Inc. | 433,914 | ||||
16,224 | IDACORP, Inc. | 1,049,855 | ||||
15,208 | Laclede Group, Inc. (The) | 829,292 | ||||
25,093 | NiSource, Inc. | 465,475 | ||||
16,426 | OGE Energy Corp. | 449,415 |
Continued
55
Sterling Capital Behavioral Small Cap Value Equity Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Utilities — (continued) | ||||||
18,951 | ONE Gas, Inc. | $ | 859,049 | |||
15,472 | Otter Tail Corp. | 403,200 | ||||
8,445 | Pinnacle West Capital Corp. | 541,662 | ||||
25,209 | Portland General Electric Co. | 931,977 | ||||
16,680 | SJW Corp. | 512,910 | ||||
11,524 | Westar Energy, Inc. | 442,983 | ||||
|
| |||||
9,130,320 | ||||||
|
| |||||
Total Common Stocks | 121,864,822 | |||||
|
| |||||
EXCHANGE TRADED FUND — 1.7% | ||||||
24,088 | iShares Russell 2000 Value ETF | 2,170,329 | ||||
|
| |||||
Total Exchange Traded Fund | 2,170,329 | |||||
|
|
Shares | Fair Value | |||||
MONEY MARKET FUND — 0.9% | ||||||
1,186,045 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | $ | 1,186,045 | |||
|
| |||||
Total Money Market Fund | 1,186,045 | |||||
|
| |||||
Total Investments — 99.7% | 125,221,196 | |||||
Net Other Assets (Liabilities) — 0.3% | 330,142 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 125,551,338 | ||||
|
|
(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.
56
Sterling Capital Special Opportunities Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 97.7% |
| |||||
Consumer Discretionary — 17.7% |
| |||||
643,000 | CBS Corp., Class B | $ | 25,655,700 | |||
727,000 | Comcast Corp., Class A | 41,351,760 | ||||
1,259,000 | Discovery Communications, Inc., Class C(a) | 30,581,110 | ||||
2,263,000 | Ford Motor Co. | 30,708,910 | ||||
356,400 | Lennar Corp., Class A(b) | 17,153,532 | ||||
755,000 | PulteGroup, Inc. | 14,246,850 | ||||
|
| |||||
159,697,862 | ||||||
|
| |||||
Consumer Staples — 7.5% | ||||||
528,000 | Mondelez International, Inc., Class A | 22,107,360 | ||||
495,000 | Tyson Foods, Inc., Class A | 21,334,500 | ||||
775,500 | Whole Foods Market, Inc. | 24,544,575 | ||||
|
| |||||
67,986,435 | ||||||
|
| |||||
Energy — 0.0% | ||||||
2,000 | EOG Resources, Inc. | 145,600 | ||||
|
| |||||
Financials — 11.7% | ||||||
647,000 | American Campus Communities, Inc., REIT | 23,447,280 | ||||
483,000 | Capital One Financial Corp. | 35,027,160 | ||||
387,000 | CBRE Group, Inc., Class A(a) | 12,384,000 | ||||
702,920 | Ryman Hospitality Properties, Inc., REIT | 34,604,751 | ||||
|
| |||||
105,463,191 | ||||||
|
| |||||
Health Care — 16.5% | ||||||
521,000 | HCA Holdings, Inc.(a) | 40,304,560 | ||||
380,500 | MEDNAX, Inc.(a) | 29,218,595 | ||||
848,000 | Myriad Genetics, Inc.(a) | 31,783,040 | ||||
285,000 | UnitedHealth Group, Inc. | 33,062,850 | ||||
156,460 | Zimmer Biomet Holdings, Inc. | 14,696,288 | ||||
|
| |||||
149,065,333 | ||||||
|
| |||||
Industrials — 13.9% | ||||||
383,000 | Expeditors International of Washington, Inc. | 18,020,150 | ||||
322,200 | J.B. Hunt Transport Services, Inc.(b) | 23,005,080 | ||||
861,000 | Nielsen Holdings PLC | 38,288,670 | ||||
632,000 | Verisk Analytics, Inc.(a) | 46,711,120 | ||||
|
| |||||
126,025,020 | ||||||
|
|
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Information Technology — 27.7% |
| |||||
1,360,000 | Activision Blizzard, Inc.(b) | $ | 42,010,400 | |||
492,000 | Akamai Technologies, Inc.(a)(b) | 33,977,520 | ||||
303,000 | Autodesk, Inc.(a) | 13,374,420 | ||||
566,000 | Check Point Software Technologies, Ltd.(a) | 44,900,780 | ||||
1,371,000 | Cisco Systems, Inc. | 35,988,750 | ||||
72,000 | Google, Inc., Class C(a) | 43,806,240 | ||||
331,000 | Intuit, Inc. | 29,376,250 | ||||
306,000 | NCR Corp.(a) | 6,961,500 | ||||
|
| |||||
250,395,860 | ||||||
|
| |||||
Telecommunication Services — 2.7% |
| |||||
754,908 | AT&T, Inc. | 24,594,903 | ||||
|
| |||||
Total Common Stocks | 883,374,204 | |||||
|
| |||||
MONEY MARKET FUND — 2.8% | ||||||
25,639,941 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | 25,639,941 | ||||
|
| |||||
Total Money Market Fund | 25,639,941 | |||||
|
| |||||
Total Investments — 100.5% | 909,014,145 | |||||
Net Other Assets (Liabilities) — (0.5)% | (4,667,304 | ) | ||||
|
| |||||
NET ASSETS — 100.0% | $ | 904,346,841 | ||||
|
|
(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.
57
Sterling Capital Equity Income Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 98.5% |
| |||||
Consumer Discretionary — 13.8% |
| |||||
1,027,200 | Dunkin’ Brands Group, Inc.(a) | $ | 50,332,800 | |||
438,310 | McDonald’s Corp. | 43,186,684 | ||||
725,600 | Omnicom Group, Inc. | 47,817,040 | ||||
1,153,000 | Pearson PLC, ADR | 19,785,480 | ||||
314,600 | Time Warner Cable, Inc.(a) | 56,429,802 | ||||
|
| |||||
217,551,806 | ||||||
|
| |||||
Consumer Staples — 7.8% |
| |||||
597,000 | PepsiCo, Inc. | 56,297,100 | ||||
1,607,000 | Unilever PLC, ADR | 65,533,460 | ||||
|
| |||||
121,830,560 | ||||||
|
| |||||
Energy — 10.2% |
| |||||
2,084,003 | Kinder Morgan, Inc. | 57,685,194 | ||||
678,800 | Occidental Petroleum Corp. | 44,902,620 | ||||
2,174,000 | Spectra Energy Corp. | 57,110,980 | ||||
|
| |||||
159,698,794 | ||||||
|
| |||||
Financials — 12.8% |
| |||||
970,000 | Discover Financial Services | 50,430,300 | ||||
1,777,000 | Host Hotels & Resorts, Inc., REIT | 28,094,370 | ||||
1,898,500 | KKR & Co. LP | 31,856,830 | ||||
704,500 | MetLife, Inc. | 33,217,175 | ||||
1,119,000 | Wells Fargo & Co. | 57,460,650 | ||||
|
| |||||
201,059,325 | ||||||
|
| |||||
Health Care — 18.5% |
| |||||
1,366,000 | Abbott Laboratories | 54,940,520 | ||||
831,000 | AbbVie, Inc. | 45,214,710 | ||||
400,000 | Anthem, Inc.(a) | 56,000,000 | ||||
444,000 | Johnson & Johnson | 41,447,400 | ||||
623,000 | Novartis AG, ADR | 57,266,160 | ||||
1,158,000 | Pfizer, Inc. | 36,372,780 | ||||
|
| |||||
291,241,570 | ||||||
|
| |||||
Industrials — 7.9% |
| |||||
1,718,500 | General Electric Co. | 43,340,570 | ||||
283,600 | Honeywell International, Inc. | 26,854,084 | ||||
551,900 | United Parcel Service, Inc., Class B | 54,467,011 | ||||
|
| |||||
124,661,665 | ||||||
|
|
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Information Technology — 20.6% |
| |||||
754,000 | Accenture PLC, Class A | $ | 74,088,040 | |||
400,000 | International Business Machines Corp. | 57,988,000 | ||||
1,769,000 | Maxim Integrated Products, Inc.(a) | 59,084,600 | ||||
1,151,030 | Microsoft Corp. | 50,944,588 | ||||
1,146,000 | QUALCOMM, Inc. | 61,574,580 | ||||
126,000 | Seagate Technology PLC | 5,644,800 | ||||
178,800 | Western Digital Corp. | 14,203,872 | ||||
|
| |||||
323,528,480 | ||||||
|
| |||||
Materials — 2.4% |
| |||||
611,500 | Scotts Miracle-Gro Co. (The), Class A | 37,191,430 | ||||
|
| |||||
Telecommunication Services — 4.5% |
| |||||
1,641,000 | Verizon Communications, Inc. | 71,399,910 | ||||
|
| |||||
Total Common Stocks | 1,548,163,540 | |||||
|
| |||||
MONEY MARKET FUND — 1.2% |
| |||||
19,184,083 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | 19,184,083 | ||||
|
| |||||
Total Money Market Fund | 19,184,083 | |||||
|
| |||||
Total Investments — 99.7% | 1,567,347,623 | |||||
Net Other Assets (Liabilities) — 0.3% | 3,970,512 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 1,571,318,135 | ||||
|
|
(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.
58
Sterling Capital Long/Short Equity Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 75.6% |
| |||||
Consumer Discretionary — 1.7% |
| |||||
125,000 | Global Eagle Entertainment, Inc.(a)(b) | $ | 1,435,000 | |||
65,000 | Sizmek, Inc.(a) | 389,350 | ||||
|
| |||||
1,824,350 | ||||||
|
| |||||
Energy — 17.3% |
| |||||
8,950 | Anadarko Petroleum Corp. | 540,491 | ||||
20,300 | Apache Corp.(b) | 794,948 | ||||
12,000 | ARC Resources, Ltd. | 158,868 | ||||
2,500 | ARC Resources, Ltd. | 33,046 | ||||
10,000 | Baytex Energy Corp. | 31,997 | ||||
6,600 | Baytex Energy Corp. | 21,120 | ||||
56,339 | Black Stone Minerals LP | 777,478 | ||||
21,000 | Bonterra Energy Corp.(b) | 315,680 | ||||
3,000 | Calumet Specialty Products Partners LP | 72,840 | ||||
15,900 | Canadian Natural Resources, Ltd. | 309,255 | ||||
2,300 | Canadian Oil Sands, Ltd. | 10,875 | ||||
24,900 | Cenovus Energy, Inc.(b) | 377,484 | ||||
2,700 | Cimarex Energy Co.(b) | 276,696 | ||||
2,400 | Concho Resources, Inc.(a)(b) | 235,920 | ||||
27,650 | ConocoPhillips(b) | 1,326,094 | ||||
12,300 | Continental Resources, Inc.(a)(b) | 356,331 | ||||
16,400 | Crescent Point Energy Corp. | 187,452 | ||||
19,250 | Cross Timbers Royalty Trust | 297,990 | ||||
29,300 | Devon Energy Corp.(b) | 1,086,737 | ||||
56,090 | Dorchester Minerals LP(b) | 811,061 | ||||
49,801 | Enduro Royalty Trust | 131,973 | ||||
22,550 | EOG Resources, Inc.(b) | 1,641,640 | ||||
131,000 | Freehold Royalties, Ltd. | 1,032,673 | ||||
11,300 | Freehold Royalties, Ltd. | 91,619 | ||||
7,000 | Laredo Petroleum, Inc.(a) | 66,010 | ||||
5,850 | Magellan Midstream Partners LP | 351,643 | ||||
42,200 | Marathon Oil Corp.(b) | 649,880 | ||||
10,000 | Newfield Exploration Co.(a) | 329,000 | ||||
18,430 | Noble Energy, Inc.(b) | 556,217 | ||||
2,575 | North European Oil Royalty Trust | 25,467 | ||||
54,000 | Northern Oil & Gas, Inc.(a)(b) | 238,680 | ||||
58,280 | Pacific Coast Oil Trust(b) | 120,057 | ||||
9,500 | PDC Energy, Inc.(a)(b) | 503,595 | ||||
30,063 | Permian Basin Royalty Trust(b) | 183,685 | ||||
1,100 | Peyto Exploration & Development Corp. | 22,874 | ||||
7,000 | Pioneer Natural Resources Co. | 851,480 | ||||
18,200 | Plains GP Holdings LP, Class A(b) | 318,500 | ||||
3,000 | Royal Dutch Shell PLC, Class B, ADR | 142,440 | ||||
31,762 | Sabine Royalty Trust(b) | 970,647 | ||||
5,400 | Shell Midstream Partners LP | 158,922 | ||||
18,500 | Suncor Energy, Inc.(b) | 494,320 | ||||
3,500 | Vermilion Energy, Inc. | 112,525 | ||||
5,588 | Western Gas Equity Partners LP(b) | 220,335 | ||||
46,712 | Whiting Petroleum Corp.(a)(b) | 713,292 | ||||
|
| |||||
17,949,837 | ||||||
|
| |||||
Financials — 24.6% |
| |||||
13,000 | Aflac, Inc. | 755,690 | ||||
108,600 | Ambac Financial Group, Inc.(a)(b) | 1,571,442 | ||||
35,599 | Ares Management LP | 622,270 | ||||
49,308 | Banc of California, Inc. | 605,009 | ||||
63,800 | BBX Capital Corp., Class A(a)(b) | 1,027,180 | ||||
18,100 | Blackstone Group LP (The) | 573,227 | ||||
62,300 | Boston Private Financial Holdings, Inc.(b) | 728,910 | ||||
26,704 | Bridge Bancorp, Inc.(b) | 713,264 | ||||
900 | Capital One Financial Corp. | 65,268 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Financials — (continued) |
| |||||
56,900 | Carlyle Group LP (The)(b) | $ | 955,920 | |||
26,300 | Citigroup, Inc.(b) | 1,304,743 | ||||
41,800 | Colony Capital, Inc., REIT | 817,608 | ||||
211,200 | CorEnergy Infrastructure Trust, Inc., REIT | 933,504 | ||||
22,200 | Federated Investors, Inc., Class B | 641,580 | ||||
25,900 | Fifth Street Asset Management, Inc.(b) | 193,473 | ||||
17,700 | Invesco, Ltd. | 552,771 | ||||
15,200 | JPMorgan Chase & Co. | 926,744 | ||||
249 | Kansas City Life Insurance Co. | 11,700 | ||||
62,200 | KKR & Co. LP(b) | 1,043,716 | ||||
5,600 | Medley Management, Inc., Class A | 37,072 | ||||
27,400 | Morgan Stanley | 863,100 | ||||
85,800 | NMI Holdings, Inc., Class A(a) | 652,080 | ||||
47,726 | OM Asset Management PLC | 735,935 | ||||
40,200 | Oppenheimer Holdings, Inc., Class A(b) | 804,402 | ||||
32,100 | Peapack Gladstone Financial Corp. | 679,557 | ||||
18,500 | Popular, Inc.(b) | 559,255 | ||||
17,700 | Primerica, Inc. | 797,739 | ||||
11,700 | Prudential Financial, Inc. | 891,657 | ||||
39,400 | Radian Group, Inc. | 626,854 | ||||
16,500 | Raymond James Financial, Inc.(b) | 818,895 | ||||
29,772 | Sabra Health Care REIT, Inc.(b) | 690,115 | ||||
38,500 | SunTrust Banks, Inc.(b) | 1,472,240 | ||||
5,391 | Virtus Investment Partners, Inc.(b) | 541,795 | ||||
34,000 | Voya Financial, Inc.(b) | 1,318,180 | ||||
|
| |||||
25,532,895 | ||||||
|
| |||||
Health Care — 17.8% |
| |||||
10,000 | AAC Holdings, Inc.(a)(b) | 222,500 | ||||
12,000 | Acadia Healthcare Co., Inc.(a)(b) | 795,240 | ||||
2,422 | Accretive Health, Inc.(a) | 6,007 | ||||
1,702 | Adeptus Health, Inc., Class A(a)(b) | 137,454 | ||||
37,445 | Amedica Corp.(a)(b) | 11,683 | ||||
3,379 | Amsurg Corp.(a)(b) | 262,582 | ||||
3,359 | Anacor Pharmaceuticals, Inc.(a) | 395,388 | ||||
23,366 | Arrowhead Research Corp.(a) | 134,588 | ||||
9,000 | Axovant Sciences, Ltd.(a) | 116,280 | ||||
11,772 | Boston Scientific Corp.(a)(b) | 193,178 | ||||
7,588 | Brookdale Senior Living, Inc.(a) | 174,220 | ||||
16,820 | Capital Senior Living Corp.(a)(b) | 337,241 | ||||
3,884 | Celgene Corp.(a) | 420,132 | ||||
17,940 | Cempra, Inc.(a)(b) | 499,450 | ||||
1,346 | Centene Corp.(a) | 72,994 | ||||
5,623 | Coherus Biosciences, Inc.(a) | 112,685 | ||||
7,521 | Eagle Pharmaceuticals, Inc.(a) | 556,780 | ||||
6,548 | Edwards Lifesciences Corp.(a)(b) | 930,929 | ||||
34,546 | Endocyte, Inc.(a)(b) | 158,221 | ||||
11,926 | Endologix, Inc.(a) | 146,213 | ||||
9,664 | Exact Sciences Corp.(a) | 173,855 | ||||
29,823 | Fate Therapeutics, Inc.(a)(b) | 158,957 | ||||
27,673 | Fluidigm Corp.(a)(b) | 224,428 | ||||
14,996 | Globus Medical, Inc., Class A(a)(b) | 309,817 | ||||
9,345 | HCA Holdings, Inc.(a)(b) | 722,929 | ||||
12,000 | HealthSouth Corp.(b) | 460,440 | ||||
5,335 | Hill-Rom Holdings, Inc.(b) | 277,367 | ||||
10,966 | Horizon Pharma PLC(a) | 217,346 | ||||
9,212 | ICON PLC(a)(b) | 653,776 | ||||
1,056 | Illumina, Inc.(a) | 185,666 | ||||
19,500 | Imprivata, Inc.(a) | 346,515 | ||||
11,018 | Intra-Cellular Therapies, Inc.(a) | 441,161 | ||||
21,000 | K2M Group Holdings, Inc.(a)(b) | 390,600 |
Continued
59
Sterling Capital Long/Short Equity Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Health Care — (continued) |
| |||||
35,071 | LDR Holding Corp.(a)(b) | $ | 1,211,002 | |||
4,500 | Medtronic PLC(b) | 301,230 | ||||
9,619 | Nabriva Therapeutics AG, ADR(a) | 91,381 | ||||
60,586 | Neovasc, Inc.(a)(b) | 299,295 | ||||
7,440 | NuVasive, Inc.(a)(b) | 358,757 | ||||
5,422 | Ophthotech Corp.(a) | 219,699 | ||||
14,746 | Otonomy, Inc.(a)(b) | 262,626 | ||||
7,545 | Pacira Pharmaceuticals, Inc.(a) | 310,099 | ||||
3,701 | Pfenex, Inc.(a) | 55,552 | ||||
9,314 | PharMerica Corp.(a)(b) | 265,170 | ||||
7,000 | Portola Pharmaceuticals, Inc.(a)(b) | 298,340 | ||||
10,911 | ProQR Therapeutics NV(a) | 158,973 | ||||
6,000 | Radius Health, Inc.(a)(b) | 415,860 | ||||
6,517 | RadNet, Inc.(a) | 36,169 | ||||
9,477 | Raptor Pharmaceutical Corp.(a) | 57,336 | ||||
10,438 | Relypsa, Inc.(a)(b) | 193,207 | ||||
12,039 | Sarepta Therapeutics, Inc.(a) | 386,572 | ||||
10,947 | Spark Therapeutics, Inc.(a)(b) | 456,818 | ||||
17,616 | Streamline Health Solutions, Inc.(a) | 40,341 | ||||
6,884 | Surgical Care Affiliates, Inc.(a)(b) | 225,038 | ||||
17,000 | Team Health Holdings, Inc.(a)(b) | 918,510 | ||||
26,000 | Tenet Healthcare Corp.(a)(b) | 959,920 | ||||
13,245 | VCA, Inc.(a)(b) | 697,349 | ||||
|
| |||||
18,465,866 | ||||||
|
| |||||
Information Technology — 10.4% |
| |||||
4,000 | Apple, Inc. | 441,200 | ||||
35,500 | Cisco Systems, Inc.(b) | 931,875 | ||||
403,602 | Extreme Networks, Inc.(a) | 1,356,103 | ||||
528,284 | ID Systems, Inc.(a)(b) | 1,695,792 | ||||
22,728 | Interactive Intelligence Group, Inc.(a) | 675,249 | ||||
2,500 | International Business Machines Corp. | 362,425 | ||||
56,020 | Intralinks Holdings, Inc.(a) | 464,406 | ||||
15,800 | Lexmark International, Inc., Class A | 457,884 | ||||
67,064 | LivePerson, Inc.(a) | 507,004 | ||||
32,182 | Microsoft Corp. | 1,424,375 | ||||
26,786 | Model N, Inc.(a) | 268,128 | ||||
174,955 | Numerex Corp., Class A(a)(b) | 1,523,858 | ||||
100,000 | Redknee Solutions, Inc.(a) | 288,498 | ||||
11,800 | Seachange International, Inc.(a) | 74,340 | ||||
131,905 | YuMe, Inc.(a) | 341,634 | ||||
|
| |||||
10,812,771 | ||||||
|
| |||||
Telecommunication Services — 3.8% |
| |||||
135,709 | Boingo Wireless, Inc.(a)(b) | 1,123,671 | ||||
122,521 | inContact, Inc.(a) | 920,133 | ||||
93,031 | magicJack VocalTec, Ltd.(a)(b) | 828,906 | ||||
187,874 | Vonage Holdings Corp.(a)(b) | 1,104,699 | ||||
|
| |||||
3,977,409 | ||||||
|
| |||||
Total Common Stocks | 78,563,128 | |||||
|
|
Shares | Fair Value | |||||
PREFERRED STOCKS — 1.0% |
| |||||
Financials — 1.0% |
| |||||
225,410 | Fannie Mae, Series R, 7.625%(b) | $ | 980,533 | |||
2,239 | Freddie Mac, 6.420% | 16,121 | ||||
|
| |||||
Total Preferred Stocks | 996,654 | |||||
|
| |||||
Contracts | ||||||
CALL OPTIONS PURCHASED — 0.0% |
| |||||
Health Care — 0.0% |
| |||||
123 | Air Methods Corp., Expires 01/15/16, Strike Price $45 | 4,920 | ||||
|
| |||||
Total Call Options Purchased | 4,920 | |||||
|
| |||||
Shares | ||||||
WARRANTS — 1.8% | ||||||
Financials — 1.8% |
| |||||
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) | 94,962 | ||||
28,800 | Capital One Financial Corp., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $42.13)(b) | 897,696 | ||||
4,874 | JPMorgan Chase & Co. (Issued/exercisable 10/28/08, 1 Share for 1 Warrant, Expires 10/28/18, Strike Price $42.28) | 97,041 | ||||
217,400 | Zions Bancorporation, (Issued/exercisable 05/20/10, 1 Share for 1 Warrant, Expires 05/22/20, Strike Price $36.40)(b) | 719,594 | ||||
52,309 | Zions Bancorporation, (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $36.27)(b) | 102,003 | ||||
|
| |||||
Total Warrants | 1,911,296 | |||||
|
| |||||
Principal Amount | ||||||
CORPORATE BONDS — 1.6% |
| |||||
Information Technology — 1.6% |
| |||||
$2,000,000 | ServiceSource International, Inc., 1.500%, 8/1/18 | 1,660,000 | ||||
|
| |||||
Total Corporate Bonds | 1,660,000 | |||||
|
| |||||
Total Long-Term Investments — 80.0% | 83,135,998 | |||||
|
|
Continued
60
Sterling Capital Long/Short Equity Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Shares | Fair Value | |||||
MONEY MARKET FUND — 16.0% |
| |||||
16,625,240 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | $ | 16,625,240 | |||
|
| |||||
Total Money Market Fund | 16,625,240 | |||||
|
| |||||
Total Investments Before Investments Sold Short — 96.0% | 99,761,238 | |||||
|
| |||||
INVESTMENTS SOLD SHORT — (26.9)% |
| |||||
Consumer Staples — 0.0% |
| |||||
(418) | Walgreens Boots Alliance, Inc. | (34,736 | ) | |||
|
| |||||
Energy — (2.6)% | ||||||
(10,000) | BP Prudhoe Bay Royalty Trust, Class B | (410,900 | ) | |||
(10,000) | Callon Petroleum Co.(a) | (72,900 | ) | |||
(10,000) | Exxon Mobil Corp. | (743,500 | ) | |||
(24,500) | Helmerich & Payne, Inc. | (1,157,870 | ) | |||
(3,000) | PrairieSky Royalty, Ltd.(d) | (56,292 | ) | |||
(21,000) | Unit Corp.(a) | (236,460 | ) | |||
(3,400) | Vanguard Natural Resources, LLC | (25,840 | ) | |||
|
| |||||
(2,703,762 | ) | |||||
|
| |||||
Exchange Traded Funds — (1.2)% |
| |||||
(10,600) | Direxion Daily Financial Bear 3X Shares(a) | (136,422 | ) | |||
(12,000) | Energy Select Sector SPDR Fund | (734,400 | ) | |||
(3,091) | Health Care Select Sector SPDR Fund | (204,717 | ) | |||
(500) | iShares Nasdaq Biotechnology ETF | (151,665 | ) | |||
|
| |||||
(1,227,204 | ) | |||||
|
| |||||
Financials — (10.1)% |
| |||||
(31,000) | American Homes 4 Rent, Class A, REIT | (498,480 | ) | |||
(26,700) | American Residential Properties, Inc., REIT | (461,109 | ) | |||
(35,500) | Astoria Financial Corp. | (571,550 | ) | |||
(41,800) | Capitol Federal Financial, Inc. | (506,616 | ) | |||
(15,100) | Dime Community Bancshares, Inc. | (255,190 | ) | |||
(3,900) | Federal Realty Investment Trust, REIT | (532,155 | ) | |||
(8,900) | Financial Engines, Inc. | (262,283 | ) | |||
(52,600) | First Commonwealth Financial Corp. | (478,134 | ) | |||
(15,200) | FirstMerit Corp. | (268,584 | ) | |||
(13,900) | Gaming and Leisure Properties, Inc., REIT | (412,830 | ) | |||
(15,900) | Hancock Holding Co. | (430,095 | ) | |||
(15,939) | Iron Mountain, Inc., REIT | (494,428 | ) | |||
(32,300) | LendingClub Corp.(a) | (427,329 | ) | |||
(26,800) | Mack-Cali Realty Corp., REIT | (505,984 | ) | |||
(25,400) | New York Community Bancorp, Inc. | (458,724 | ) | |||
(39,600) | Northwest Bancshares, Inc. | (514,800 | ) | |||
(34,400) | Old National Bancorp | (479,192 | ) | |||
(30,900) | People’s United Financial, Inc. | (486,057 | ) | |||
(8,224) | Prosperity Bancshares, Inc. | (403,881 | ) | |||
(32,300) | Silver Bay Realty Trust Corp., REIT | (517,123 | ) | |||
(2,600) | Simon Property Group, Inc., REIT | (477,672 | ) | |||
(7,100) | Taubman Centers, Inc., REIT | (490,468 | ) | |||
(50,200) | Valley National Bancorp | (493,968 | ) | |||
|
| |||||
(10,426,652 | ) | |||||
|
| |||||
Health Care — (5.8)% |
| |||||
(2,165) | Acorda Therapeutics, Inc.(a) | (57,394 | ) | |||
(2,645) | Albany Molecular Research, Inc.(a) | (46,076 | ) | |||
(3,868) | Amedisys, Inc.(a) | (146,868 | ) | |||
(4,184) | AmerisourceBergen Corp. | (397,438 | ) | |||
(15,401) | AstraZeneca PLC, ADR | (490,060 | ) |
Shares | Fair Value | |||||
INVESTMENTS SOLD SHORT — (continued) |
| |||||
Health Care — (continued) |
| |||||
(3,802) | Chemed Corp. | $ | (507,453 | ) | ||
(2,300) | Computer Programs & Systems, Inc. | (96,899 | ) | |||
(1,707) | DexCom, Inc.(a) | (146,563 | ) | |||
(1,958) | Diplomat Pharmacy, Inc.(a) | (56,253 | ) | |||
(2,244) | Dyax Corp.(a) | (42,838 | ) | |||
(504) | Haemonetics Corp.(a) | (16,289 | ) | |||
(3,124) | INC Research Holdings, Inc., Class A(a) | (124,960 | ) | |||
(19,979) | Isis Pharmaceuticals, Inc.(a) | (807,551 | ) | |||
(9,374) | Luminex Corp.(a) | (158,514 | ) | |||
(11,000) | Medicines Co. (The)(a) | (417,560 | ) | |||
(9,018) | Medivation, Inc.(a) | (383,265 | ) | |||
(9,344) | Merck & Co., Inc. | (461,500 | ) | |||
(5,641) | Natera, Inc.(a) | (61,205 | ) | |||
(8,000) | Neogen Corp.(a) | (359,920 | ) | |||
(7,260) | PRA Health Sciences, Inc.(a) | (281,906 | ) | |||
(6,000) | Repligen Corp.(a) | (167,100 | ) | |||
(4,000) | Retrophin, Inc.(a) | (81,040 | ) | |||
(6,375) | Seattle Genetics, Inc.(a) | (245,820 | ) | |||
(8,813) | Teva Pharmaceutical Industries, Ltd., ADR | (497,582 | ) | |||
|
| |||||
(6,052,054 | ) | |||||
|
| |||||
Industrials — (0.4)% |
| |||||
(4,669) | Danaher Corp. | (397,846 | ) | |||
|
| |||||
Information Technology — (6.8)% |
| |||||
(10,000) | Akamai Technologies, Inc.(a) | (690,600 | ) | |||
(13,000) | Alibaba Group Holding, Ltd., ADR(a) | (766,610 | ) | |||
(70,692) | Angie’s List, Inc.(a) | (356,288 | ) | |||
(10,000) | ARRIS Group, Inc.(a) | (259,700 | ) | |||
(10,000) | Box, Inc., Class A(a) | (125,800 | ) | |||
(15,000) | Carbonite, Inc.(a) | (166,950 | ) | |||
(5,000) | Check Point Software Technologies, Ltd.(a) | (396,650 | ) | |||
(10,000) | HomeAway, Inc.(a) | (265,400 | ) | |||
(7,500) | Juniper Networks, Inc. | (192,825 | ) | |||
(4,500) | NetSuite, Inc.(a) | (377,550 | ) | |||
(20,000) | NVIDIA Corp. | (493,000 | ) | |||
(10,000) | Oracle Corp. | (361,200 | ) | |||
(25,000) | Polycom, Inc.(a) | (262,000 | ) | |||
(10,000) | Seagate Technology PLC | (448,000 | ) | |||
(15,000) | Splunk, Inc. | (830,250 | ) | |||
(25,000) | Symantec Corp. | (486,750 | ) | |||
(2,500) | Teradata Corp.(a) | (72,400 | ) | |||
(31,700) | Violin Memory, Inc.(a) | (43,746 | ) | |||
(26,200) | Western Union Co. (The) | (481,032 | ) | |||
|
| |||||
(7,076,751 | ) | |||||
|
| |||||
Total Investments Sold Short — (26.9)% | (27,919,005 | ) | ||||
|
| |||||
Total Investments — 69.1% | 71,842,233 | |||||
Net Other Assets (Liabilities) — 30.9% | 32,075,428 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 103,917,661 | ||||
|
|
(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) | Represents the current yield as of report date. |
(d) | Security was fair valued under methods approved by the Board. |
Continued
61
Sterling Capital Long/Short Equity Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
ADR — American Depositary Receipt
ETF — Exchange Traded Funds
REIT — Real Estate Investment Trust
See accompanying Notes to the Financial Statements.
62
Sterling Capital Behavioral International Equity Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — 96.1% |
| |||||
Australia — 4.4% |
| |||||
16,350 | AGL Energy, Ltd. | $ | 184,013 | |||
6,675 | Bank of Queensland, Ltd. | 54,645 | ||||
36,400 | Dexus Property Group, REIT | 183,563 | ||||
3,600 | Macquarie Group, Ltd. | 195,103 | ||||
75,725 | Qantas Airways, Ltd.(a) | 198,807 | ||||
8,325 | WorleyParsons, Ltd. | 34,850 | ||||
|
| |||||
850,981 | ||||||
|
| |||||
Belgium — 1.1% |
| |||||
3,175 | KBC Groep NV | 200,794 | ||||
|
| |||||
China — 0.8% |
| |||||
196,700 | Yangzijiang Shipbuilding Holdings, Ltd. | 157,282 | ||||
|
| |||||
Denmark — 1.9% |
| |||||
4,825 | ISS A/S | 160,271 | ||||
4,075 | Vestas Wind Systems A/S | 211,855 | ||||
|
| |||||
372,126 | ||||||
|
| |||||
Finland — 1.9% |
| |||||
5,625 | Nokian Renkaat OYJ | 182,091 | ||||
11,700 | UPM-Kymmene OYJ | 175,626 | ||||
|
| |||||
357,717 | ||||||
|
| |||||
France — 9.7% |
| |||||
1,075 | Christian Dior SE | 201,407 | ||||
15,875 | Credit Agricole SA | 182,765 | ||||
2,925 | Electricite de France SA | 51,649 | ||||
14,800 | Orange SA | 224,358 | ||||
11,025 | Peugeot SA(a) | 167,058 | ||||
3,700 | Sanofi | 352,242 | ||||
4,850 | Societe Generale | 216,753 | ||||
12 | Technip SA | 568 | ||||
850 | Unibail-Rodamco SE, REIT | 220,308 | ||||
3,925 | Vinci SA | 249,587 | ||||
|
| |||||
1,866,695 | ||||||
|
| |||||
Germany — 7.0% |
| |||||
1,850 | Allianz SE | 290,624 | ||||
1,025 | Continental AG | 218,927 | ||||
2 | Deutsche Telekom AG | 36 | ||||
2,100 | Hannover Rueck SE | 215,106 | ||||
1,325 | Henkel AG & Co. KGaA | 117,115 | ||||
2,000 | Merck KGaA | 177,074 | ||||
4,525 | METRO AG | 125,198 | ||||
4,150 | ProSiebenSat.1 Media AG | 203,706 | ||||
|
| |||||
1,347,786 | ||||||
|
| |||||
Hong Kong — 4.1% |
| |||||
55,275 | BOC Hong Kong Holdings, Ltd. | 163,021 | ||||
17,775 | CK Hutchison Holdings, Ltd. | 231,211 | ||||
11,450 | Hang Seng Bank, Ltd. | 206,540 | ||||
50,000 | Yue Yuen Industrial Holdings, Ltd. | 186,023 | ||||
|
| |||||
786,795 | ||||||
|
| |||||
Ireland — 1.2% |
| |||||
3,300 | Shire PLC | 225,594 | ||||
|
| |||||
Israel — 2.3% |
| |||||
101,375 | Bezeq The Israeli Telecommunication Corp., Ltd. | 194,012 | ||||
4,350 | Teva Pharmaceutical Industries, Ltd. | 245,836 | ||||
|
| |||||
439,848 | ||||||
|
|
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Italy — 2.1% |
| |||||
66,350 | Intesa Sanpaolo SpA | $ | 213,806 | |||
8,625 | Prysmian SpA | 178,274 | ||||
|
| |||||
392,080 | ||||||
|
| |||||
Japan — 24.4% |
| |||||
42,000 | Aozora Bank, Ltd. | 145,669 | ||||
1,300 | Central Japan Railway Co. | 209,596 | ||||
15,400 | Daicel Corp. | 189,047 | ||||
10,900 | Daiichi Sankyo Co., Ltd. | 189,136 | ||||
5,200 | Fuji Heavy Industries, Ltd. | 187,119 | ||||
2,400 | FUJIFILM Holdings Corp. | 89,717 | ||||
8,800 | Idemitsu Kosan Co., Ltd. | 134,802 | ||||
12,300 | Iida Group Holdings Co., Ltd. | 192,427 | ||||
17,600 | ITOCHU Corp. | 186,054 | ||||
7,100 | Japan Tobacco, Inc. | 220,243 | ||||
49,600 | JX Holdings, Inc. | 179,102 | ||||
15,900 | Konica Minolta, Inc. | 167,503 | ||||
11,600 | Medipal Holdings Corp. | 184,057 | ||||
35,600 | Mitsubishi Chemical Holdings Corp. | 185,890 | ||||
47,000 | Mitsubishi Materials Corp. | 142,806 | ||||
4,100 | Mixi, Inc. | 140,315 | ||||
123,900 | Mizuho Financial Group, Inc. | 231,768 | ||||
15,100 | Nexon Co., Ltd. | 201,881 | ||||
5,600 | NHK Spring Co., Ltd. | 54,300 | ||||
6,400 | Nippon Telegraph & Telephone Corp. | 225,431 | ||||
6,800 | Otsuka Holdings Co., Ltd. | 217,135 | ||||
10,400 | Santen Pharmaceutical Co., Ltd. | 139,626 | ||||
31,000 | Sumitomo Chemical Co., Ltd. | 156,759 | ||||
3,000 | Sumitomo Mitsui Financial Group, Inc. | 113,761 | ||||
55,000 | Teijin, Ltd. | 167,062 | ||||
7,100 | Toyota Motor Corp. | 415,690 | ||||
|
| |||||
4,666,896 | ||||||
|
| |||||
Netherlands — 2.7% |
| |||||
3,825 | Boskalis Westminster | 167,431 | ||||
2,900 | Heineken Holding NV | 206,760 | ||||
4,700 | Wolters Kluwer NV | 144,946 | ||||
|
| |||||
519,137 | ||||||
|
| |||||
Singapore — 2.0% |
| |||||
69,000 | Ascendas REIT | 113,674 | ||||
5,300 | Jardine Cycle & Carriage, Ltd. | 100,701 | ||||
96,600 | Wilmar International, Ltd. | 174,790 | ||||
|
| |||||
389,165 | ||||||
|
| |||||
Spain — 1.5% | ||||||
750 | ACS Actividades de Construccion y Servicios SA | 21,579 | ||||
30,575 | Banco Bilbao Vizcaya Argentaria SA | 258,540 | ||||
|
| |||||
280,119 | ||||||
|
| |||||
Sweden — 4.8% |
| |||||
9,875 | Boliden AB | 154,624 | ||||
10,350 | Industrivarden AB, Class C | 181,797 | ||||
18,950 | Nordea Bank AB | 211,416 | ||||
5,850 | Securitas AB, Class B | 71,546 | ||||
5,650 | Skandinaviska Enskilda Banken AB, Class A | 60,428 | ||||
950 | Svenska Cellulosa AB, Class B | 26,583 | ||||
1,225 | Swedbank AB, Class A | 27,097 | ||||
325 | Swedish Match AB | 9,824 |
Continued
63
Sterling Capital Behavioral International Equity Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Shares | Fair Value | |||||
COMMON STOCKS — (continued) |
| |||||
Sweden — (continued) | ||||||
33,725 | TeliaSonera AB | $ | 182,040 | |||
|
| |||||
925,355 | ||||||
|
| |||||
Switzerland — 9.0% | ||||||
2,575 | Adecco SA | 188,582 | ||||
3,500 | Aryzta AG | 148,342 | ||||
7,600 | Coca-Cola HBC AG | 160,881 | ||||
6,475 | Credit Suisse Group AG | 155,639 | ||||
114,525 | Glencore PLC | 158,968 | ||||
1,375 | Lonza Group AG | 180,422 | ||||
1,775 | Pargesa Holding SA | 104,168 | ||||
100 | Roche Holding AG | 26,547 | ||||
2,625 | Swiss Re AG | 225,218 | ||||
12,725 | Transocean, Ltd. | 164,146 | ||||
825 | Zurich Insurance Group AG | 202,543 | ||||
|
| |||||
1,715,456 | ||||||
|
| |||||
United Kingdom — 15.2% | ||||||
23,275 | Aviva PLC | 159,190 | ||||
33,321 | Direct Line Insurance Group PLC | 189,067 | ||||
4,225 | easyJet PLC | 114,050 | ||||
25,200 | ICAP PLC | 174,536 | ||||
5,650 | Imperial Tobacco Group PLC | 292,097 | ||||
25,850 | Marks & Spencer Group PLC | 196,221 | ||||
25,525 | Meggitt PLC | 184,140 | ||||
20,975 | National Grid PLC | 292,121 | ||||
6,600 | Persimmon PLC | 200,879 | ||||
14,775 | Petrofac, Ltd. | 172,076 | ||||
27,200 | Royal Mail PLC | 188,994 | ||||
8,900 | SSE PLC | 201,433 | ||||
3,975 | Unilever PLC | 161,900 | ||||
33,275 | William Hill PLC | 176,977 | ||||
10,275 | WPP PLC | 213,915 | ||||
|
| |||||
2,917,596 | ||||||
|
| |||||
Total Common Stocks | 18,411,422 | |||||
|
| |||||
EXCHANGE TRADED FUND — 1.1% | ||||||
United States — 1.1% | ||||||
3,552 | iShares MSCI EAFE ETF | 203,601 | ||||
|
| |||||
Total Exchange Traded Fund | 203,601 | |||||
|
|
Shares | Fair Value | |||||
MONEY MARKET FUND — 2.4% |
| |||||
United States — 2.4% |
| |||||
452,930 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | $ | 452,930 | |||
|
| |||||
Total Money Market Fund | 452,930 | |||||
|
| |||||
Total Investments — 99.6% | 19,067,953 | |||||
Net Other Assets (Liabilities) — 0.4% | 83,914 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 19,151,867 | ||||
|
|
(a) | Represents non-income producing security. |
(b) | Represents the current yield as of report date. |
ETF — Exchange Traded Fund
REIT — Real Estate Investment Trust
Sector | Percentage of net assets | ||||
Consumer Discretionary | �� | 15.9 | % | ||
Consumer Staples | 8.6 | % | |||
Energy | 3.6 | % | |||
Exchange Traded Fund | 1.1 | % | |||
Financials | 25.6 | % | |||
Health Care | 10.1 | % | |||
Industrials | 14.2 | % | |||
Information Technology | 3.1 | % | |||
Materials | 6.9 | % | |||
Money Market Fund | 2.4 | % | |||
Telecommunication Services | 4.3 | % | |||
Utilities | 3.8 | % | |||
|
| ||||
99.6 | % | ||||
|
|
See accompanying notes to the Financial Statements.
64
Sterling Capital Ultra Short Bond Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
ASSET BACKED SECURITIES — 19.4% |
| |||||
$261,562 | AmeriCredit Automobile Receivables Trust, Series 2012-4, Class B, 1.310%, 11/8/17 | $ | 261,676 | |||
425,000 | AmeriCredit Automobile Receivables Trust, Series 2012-4, Class C, 1.930%, 8/8/18 | 427,376 | ||||
380,000 | AmeriCredit Automobile Receivables Trust, Series 2013-5, Class C, 2.290%, 11/8/19 | 383,867 | ||||
500,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2010-5A, Class A, 3.150%, 3/20/17(a) | 502,919 | ||||
400,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2011-3A, Class A, 3.410%, 11/20/17(a) | 408,988 | ||||
445,000 | Capital Auto Receivables Asset Trust, Series 2014-1, Class A4, 1.690%, 10/22/18 | 447,762 | ||||
450,000 | Capital Auto Receivables Asset Trust, Series 2013-1, Class C, 1.740%, 10/22/18 | 451,778 | ||||
300,000 | Capital One Multi-Asset Execution Trust, Series 2006-A3, Class A3, 5.050%, 12/17/18 | 304,850 | ||||
242,681 | CarMax Auto Owner Trust, Series 2013-4, Class A3, 0.800%, 7/16/18 | 242,655 | ||||
570,000 | CarMax Auto Owner Trust, Series 2014-1, Class A3, 0.790%, 10/15/18 | 569,226 | ||||
280,000 | CarMax Auto Owner Trust, Series 2013-3, Class C, 2.150%, 5/15/19 | 282,478 | ||||
500,000 | Citibank Credit Card Issuance Trust, Series 2013-A3, Class A3, 1.110%, 7/23/18 | 501,507 | ||||
379,142 | Enterprise Fleet Financing, LLC, Series 2014-1, Class A2, 0.870%, 9/20/19(a) | 378,735 | ||||
435,362 | Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a) | 434,607 | ||||
300,000 | Enterprise Fleet Financing, LLC, Series 2015-2, Class A2, 1.590%, 2/22/21(a) | 300,943 | ||||
525,000 | Fifth Third Auto Trust, Series 2014-2, Class A3, 0.890%, 11/15/18 | 525,122 | ||||
992 | First Franklin Mortgage Loan Trust, Series 2005-FF5, Class M1, 0.869%, 3/25/35(b) | 991 | ||||
420,000 | Hyundai Auto Receivables Trust, Series 2012-C, Class B, 1.060%, 6/15/18 | 419,744 | ||||
42,965 | Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.384%, 1/25/36(b) | 42,588 | ||||
77,205 | Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.454%, 11/25/35(b) | 76,400 | ||||
102,075 | Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.944%, 3/25/35(b) | 101,396 | ||||
414,774 | RAMP Trust, Series 2005-RZ4, Class A3, 0.594%, 11/25/35(b) | 410,966 | ||||
250,000 | Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18 | 250,538 | ||||
354,540 | Santander Drive Auto Receivables Trust, Series 2013-1, Class B, 1.160%, 1/15/19 | 354,586 | ||||
325,000 | Santander Drive Auto Receivables Trust, Series 2014-2, Class B, 1.620%, 2/15/19 | 325,657 | ||||
66,169 | Structured Asset Securities Corp. Mortgage Loan Trust, Series 2006-OPT1, Class A4, 0.354%, 4/25/36(b) | 66,045 | ||||
|
| |||||
Total Asset Backed Securities (Cost $8,469,609) | 8,473,400 | |||||
|
|
Principal Amount | Fair Value | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — 0.5% | ||||||
$ 81,231 | Fannie Mae, Series 2009-114, Class AC, 2.500%, 12/25/23 | $ | 82,187 | |||
63,974 | Fannie Mae, Series 2006-90, Class BE, 6.000%, 4/1/35 | 65,153 | ||||
73,048 | Morgan Stanley Mortgage Loan Trust, Series 2005-5AR, Class 1A3, 0.464%, 9/25/35(b) | 72,792 | ||||
|
| |||||
Total Collateralized Mortgage Obligations | 220,132 | |||||
|
| |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — 17.8% | ||||||
28,008 | Banc of America Commercial Mortgage Trust, Series 2006-2, Class A4, 5.948%, 5/10/45(b) | 28,275 | ||||
540,000 | Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/1/46 | 557,270 | ||||
312,495 | Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47 | 318,683 | ||||
23,392 | Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.515%, 11/10/42(b) | 23,371 | ||||
410,000 | Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T22, Class AJ, 5.795%, 4/1/38(b) | 417,288 | ||||
201,798 | CD Mortgage Trust, Series 2006-CD2, Class A4, 5.487%, 1/15/46(b) | 201,955 | ||||
326,687 | COMM Mortgage Trust, Series 2006-C7, Class A4, 5.954%, 6/10/46(b) | 331,505 | ||||
400,000 | COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/1/46 | 416,364 | ||||
162,993 | Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(b) | 162,943 | ||||
538,326 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB15, Class A4, 5.814%, 6/12/43(b) | 545,247 | ||||
493,918 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AM, 5.450%, 12/15/44(b) | 493,665 | ||||
500,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45 | 513,865 | ||||
188,050 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/47 | 194,799 | ||||
465,536 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/49 | 483,187 | ||||
5,610 | LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4, 4.568%, 1/15/31 | 5,663 | ||||
500,000 | Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.494%, 1/12/44(b) | 501,729 | ||||
306,442 | Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 6.017%, 8/12/41(b) | 312,481 | ||||
241,000 | Morgan Stanley Capital I Trust, Series 2005-HQ7, Class AM, 5.397%, 11/14/42(b) | 240,900 | ||||
590,000 | Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.636%, 3/12/44(b) | 593,551 | ||||
500,000 | Morgan Stanley Capital I Trust, Series 2006-HQ9, Class AM, 5.773%, 7/12/44(b) | 512,653 | ||||
458,616 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48 | 469,798 |
Continued
65
Sterling Capital Ultra Short Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||
$447,759 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/1/48 | $ | 460,484 | |||
|
| |||||
Total Commercial Mortgage-Backed Securities (Cost $8,082,091) | 7,785,676 | |||||
|
| |||||
CORPORATE BONDS — 58.0% |
| |||||
Consumer Discretionary —5.4% |
| |||||
200,000 | D.R. Horton, Inc., 6.500%, 4/15/16 | 203,750 | ||||
300,000 | Daimler Finance North America, LLC, 3.000%, 3/28/16(a) | 302,933 | ||||
300,000 | ERAC USA Finance, LLC, 1.400%, 4/15/16(a) | 300,195 | ||||
425,000 | Ford Motor Credit Co., LLC, 0.956%, 3/27/17(b) | 419,016 | ||||
250,000 | General Motors Financial Co., Inc., 2.750%, 5/15/16 | 251,533 | ||||
300,000 | Hyundai Capital America, 1.875%, 8/9/16(a) | 301,450 | ||||
300,000 | Omnicom Group, Inc., 5.900%, 4/15/16 | 307,336 | ||||
250,000 | Viacom, Inc., 6.250%, 4/30/16 | 257,160 | ||||
|
| |||||
2,343,373 | ||||||
|
| |||||
Consumer Staples — 2.2% | ||||||
225,000 | Cargill, Inc., 1.900%, 3/1/17(a) | 226,825 | ||||
250,000 | Dr Pepper Snapple Group, Inc., 2.900%, 1/15/16 | 251,464 | ||||
250,000 | Kraft Heinz Foods Co., 2.000%, 7/2/18(a) | 250,348 | ||||
250,000 | Reynolds American, Inc., 3.500%, 8/4/16(a) | 253,936 | ||||
|
| |||||
982,573 | ||||||
|
| |||||
Energy — 3.4% | ||||||
250,000 | BP Capital Markets PLC, 3.200%, 3/11/16 | 252,933 | ||||
265,000 | Kinder Morgan Energy Partners LP, 4.100%, 11/15/15 | 265,751 | ||||
200,000 | Kinder Morgan, Inc., 7.000%, 6/15/17 | 213,207 | ||||
250,000 | Magellan Midstream Partners LP, 5.650%, 10/15/16 | 260,611 | ||||
175,000 | Petrobras Global Finance BV, 3.875%, 1/27/16 | 171,937 | ||||
300,000 | Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16 | 308,585 | ||||
|
| |||||
1,473,024 | ||||||
|
| |||||
Financials — 38.0% | ||||||
200,000 | Abbey National Treasury Services PLC, GMTN, 1.179%, 8/24/18(b) | 200,285 | ||||
450,000 | ABN AMRO Bank NV, 1.094%, 10/28/16(a)(b) | 451,705 | ||||
175,000 | Ally Financial, Inc., 2.750%, 1/30/17 | 173,668 | ||||
325,000 | American Express Co., 0.919%, 5/22/18(b) | 324,580 | ||||
288,000 | American International Group, Inc., 5.050%, 10/1/15 | 288,000 | ||||
320,000 | Associated Banc-Corp, 5.125%, 3/28/16 | 324,880 | ||||
450,000 | Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.000%, 2/26/16(a) | 450,437 | ||||
300,000 | Capital One Bank USA NA, BKNT, 1.150%, 11/21/16 | 299,263 | ||||
500,000 | Citigroup, Inc., 5.300%, 1/7/16 | 506,003 | ||||
350,000 | CNA Financial Corp., 6.500%, 8/15/16 | 365,763 | ||||
445,000 | Countrywide Financial Corp., 6.250%, 5/15/16 | 457,633 | ||||
300,000 | Credit Suisse, GMTN, 0.822%, 5/26/17(b) | 298,982 | ||||
373,000 | DDR Corp., REIT, 9.625%, 3/15/16 | 386,176 | ||||
250,000 | Eksportfinans ASA, 2.375%, 5/25/16 | 250,350 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Financials — (continued) | ||||||
$263,000 | Endurance Specialty Holdings, Ltd., 6.150%, 10/15/15 | $ | 263,356 | |||
375,000 | ERP Operating LP, REIT, 5.125%, 3/15/16 | 381,955 | ||||
250,000 | Essex Portfolio LP, REIT, 5.500%, 3/15/17 | 262,967 | ||||
185,000 | Fifth Third Bancorp, 0.765%, 12/20/16(b) | 183,855 | ||||
320,000 | HCP, Inc., REIT, 3.750%, 2/1/16 | 322,723 | ||||
250,000 | Highwoods Realty LP, REIT, 5.850%, 3/15/17 | 266,101 | ||||
190,000 | HSBC Finance Corp., 5.500%, 1/19/16 | 192,552 | ||||
220,000 | Huntington National Bank (The), BKNT, 1.300%, 11/20/16 | 220,224 | ||||
200,000 | International Lease Finance Corp., 5.750%, 5/15/16 | 203,000 | ||||
340,000 | Jefferies Group, LLC, 3.875%, 11/9/15 | 340,876 | ||||
540,000 | JPMorgan Chase & Co., 5.150%, 10/1/15 | 540,000 | ||||
305,000 | Kilroy Realty LP, REIT, 5.000%, 11/3/15 | 305,912 | ||||
450,000 | Kimco Realty Corp., REIT, MTN, 5.783%, 3/15/16 | 459,180 | ||||
250,000 | Liberty Mutual Group, Inc., 6.700%, 8/15/16(a) | 261,809 | ||||
223,000 | Macquarie Bank, Ltd., 5.000%, 2/22/17(a) | 233,322 | ||||
300,000 | Macquarie Group, Ltd., 1.297%, 1/31/17(a)(b) | 301,356 | ||||
300,000 | Manufacturers & Traders Trust Co., BKNT, 1.250%, 1/30/17 | 299,957 | ||||
500,000 | Morgan Stanley, 1.064%, 1/5/18(b) | 499,810 | ||||
305,000 | MUFG Union Bank NA, BKNT, 5.950%, 5/11/16 | 314,004 | ||||
419,000 | Murray Street Investment Trust I, STEP, 4.647%, 3/9/17 | 436,974 | ||||
255,000 | National Retail Properties, Inc., REIT, 6.150%, 12/15/15 | 257,562 | ||||
425,000 | PNC Funding Corp., 2.700%, 9/19/16 | 431,057 | ||||
250,000 | Principal Life Global Funding II, 1.125%, 2/24/17(a) | 249,917 | ||||
250,000 | Raymond James Financial, Inc., 4.250%, 4/15/16 | 254,100 | ||||
175,000 | Realogy Group, LLC/Sunshine Group Florida, Ltd. (The), 3.375%, 5/1/16(a) | 174,125 | ||||
228,000 | Realty Income Corp., REIT, 5.500%, 11/15/15 | 229,094 | ||||
300,000 | Reinsurance Group of America, Inc., 5.625%, 3/15/17 | 316,942 | ||||
300,000 | Royal Bank of Scotland Group PLC, 1.875%, 3/31/17 | 299,262 | ||||
285,000 | Senior Housing Properties Trust, REIT, 4.300%, 1/15/16 | 285,588 | ||||
250,000 | Sirius International Group, Ltd., 6.375%, 3/20/17(a) | 261,165 | ||||
425,000 | Sumitomo Mitsui Banking Corp., 0.900%, 1/18/16 | 425,089 | ||||
365,000 | SunTrust Banks, Inc., 3.600%, 4/15/16 | 369,526 | ||||
275,000 | Symetra Financial Corp., 6.125%, 4/1/16(a) | 281,036 | ||||
400,000 | UBS AG, 7.000%, 10/15/15 | 400,689 | ||||
116,000 | US Bancorp, 3.442%, 2/1/16 | 116,982 | ||||
250,000 | Ventas Realty LP, REIT, 1.250%, 4/17/17 | 248,865 | ||||
155,000 | Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17 | 151,900 | ||||
425,000 | Wells Fargo & Co., 1.250%, 7/20/16 | 426,829 | ||||
350,000 | Welltower, REIT, Inc., 6.200%, 6/1/16 | 360,835 | ||||
|
| |||||
16,608,221 | ||||||
|
| |||||
Health Care — 2.3% | ||||||
200,000 | AbbVie, Inc., 1.200%, 11/6/15 | 200,086 | ||||
415,000 | Actavis Funding SCS, 1.416%, 3/12/18(b) | 413,464 |
Continued
66
Sterling Capital Ultra Short Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Health Care — (continued) | ||||||
$375,000 | Zimmer Holdings, Inc., 1.450%, 4/1/17 | $ | 374,247 | |||
|
| |||||
987,797 | ||||||
|
| |||||
Industrials — 1.3% | ||||||
200,000 | CNH Industrial Capital, LLC, 3.875%, 11/1/15 | 199,500 | ||||
165,000 | Norfolk Southern Corp., 5.750%, 1/15/16 | 167,244 | ||||
200,000 | Penske Truck Leasing Co. LP/PTL Finance Corp., 2.500%, 3/15/16(a) | 201,221 | ||||
|
| |||||
567,965 | ||||||
|
| |||||
Materials — 1.3% | ||||||
200,000 | Ecolab, Inc., 3.000%, 12/8/16 | 203,845 | ||||
360,000 | Glencore Finance Canada, Ltd., 2.050%, 10/23/15(a) | 359,640 | ||||
|
| |||||
563,485 | ||||||
|
| |||||
Telecommunication Services — 0.6% |
| |||||
241,000 | Verizon Communications, Inc., 2.500%, 9/15/16 | 244,311 | ||||
|
| |||||
Utilities — 3.5% | ||||||
215,000 | Dominion Gas Holdings, LLC, 1.050%, 11/1/16 | 215,054 | ||||
404,000 | Progress Energy, Inc., 5.625%, 1/15/16 | 409,520 | ||||
340,000 | PSEG Power, LLC, 5.500%, 12/1/15 | 342,510 | ||||
250,000 | Sempra Energy, 6.500%, 6/1/16 | 258,778 | ||||
325,000 | Southern Co. (The), 1.950%, 9/1/16 | 327,483 | ||||
|
| |||||
1,553,345 | ||||||
|
| |||||
Total Corporate Bonds | 25,324,094 | |||||
|
| |||||
MUNICIPAL BONDS — 1.7% |
| |||||
Illinois — 0.6% | ||||||
250,000 | State of Illinois, Public Improvements G.O., Series A (AGM), 5.000%, 6/1/17 | 263,480 | ||||
|
| |||||
New Jersey — 0.5% | ||||||
210,000 | New Jersey Economic Development Authority, Pension Funding Revenue Bonds, Series B (NATL), OID, 0.000%, 2/15/17 | 202,629 | ||||
|
| |||||
New York — 0.2% | ||||||
100,000 | Metropolitan Transportation Authority, Transit Improvements Revenue, Series A2, 5.000%, 11/15/15 | 100,607 | ||||
|
| |||||
Puerto Rico — 0.4% | ||||||
175,000 | Puerto Rico Municipal Finance Agency, Public Improvements, G.O., Series A, Callable 11/9/15 @ 100 (AGM, Government GTD), 5.250%, 8/1/18 | 175,059 | ||||
|
| |||||
Total Municipal Bonds | 741,775 | |||||
|
|
Shares | Fair Value | |||||
PREFERRED STOCKS — 0.5% |
| |||||
Financials — 0.5% | ||||||
3,850 | Hudson Pacific Properties, Inc., REIT, Series B, 8.375% | $ | 97,328 | |||
4,500 | Kite Realty Group Trust, REIT, Series A, 8.250% | 114,120 | ||||
|
| |||||
211,448 | ||||||
|
| |||||
Total Preferred Stocks | 211,448 | |||||
|
| |||||
MONEY MARKET FUND — 1.7% |
| |||||
728,705 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | 728,705 | ||||
|
| |||||
Total Money Market Fund | 728,705 | |||||
|
| |||||
Total Investments — 99.6% | 43,485,230 | |||||
Net Other Assets (Liabilities) — 0.4% | 193,434 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 43,678,664 | ||||
|
|
(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 September 30, 2015. The maturity date reflected is the final maturity date. |
(c) | Represents the current yield as of report date. |
AGM — Assured Guaranty Municipal Corp.
BKNT — Bank Note
G.O. — General Obligation
GMTN — Global Medium Term Note
GTD — Guaranteed
MTN — Medium Term Note
NATL — National Public Finance Guarantee Corp.
OID — Original Issue Discount
REIT — Real Estate Investment Trust
STEP — Step Coupon Bond
See accompanying Notes to the Financial Statements.
67
Sterling Capital Short Duration Bond Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
ASSET BACKED SECURITIES — 12.3% |
| |||||
$ 631,334 | AmeriCredit Automobile Receivables Trust, Series 2012-5, Class B, 1.120%, 11/8/17 | $ | 631,475 | |||
267,872 | AmeriCredit Automobile Receivables Trust, Series 2012-1, Class C, 2.670%, 1/8/18 | 268,857 | ||||
680,000 | AmeriCredit Automobile Receivables Trust, Series 2014-1, Class B, 1.680%, 7/8/19 | 677,733 | ||||
1,250,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2012-3A, Class A, 2.100%, 3/20/19(a) | 1,259,165 | ||||
930,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2013-1A, Class A, 1.920%, 9/20/19(a) | 933,427 | ||||
650,000 | Capital Auto Receivables Asset Trust, Series 2015-3, Class B, 2.550%, 9/21/20 | 656,557 | ||||
783,651 | Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a) | 782,293 | ||||
1,000,000 | Enterprise Fleet Financing, LLC, Series 2015-2, Class A3, 2.090%, 2/22/21(a) | 1,008,767 | ||||
1,459 | First Franklin Mortgage Loan Trust, Series 2005-FF5, Class M1, 0.869%, 3/25/35(b) | 1,458 | ||||
500,000 | Ford Credit Auto Owner Trust, Series 2012-D, Class B, 1.010%, 5/15/18 | 499,957 | ||||
350,000 | Hertz Vehicle Financing, LLC, Series 2013-1A, Class A1, 1.120%, 8/25/17(a) | 350,250 | ||||
950,000 | Hyundai Auto Receivables Trust, Series 2013-B, Class B, 1.450%, 2/15/19 | 952,675 | ||||
63,016 | Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.384%, 1/25/36(b) | 62,463 | ||||
50,008 | Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE1, Class A3, 0.404%, 2/25/36(b) | 49,959 | ||||
70,810 | Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.454%, 11/25/35(b) | 70,072 | ||||
187,597 | Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.944%, 3/25/35(b) | 186,349 | ||||
700,000 | Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18 | 701,506 | ||||
337,000 | Santander Drive Auto Receivables Trust, Series 2013-5, Class C, 2.250%, 6/17/19 | 340,038 | ||||
1,000,000 | Santander Drive Auto Receivables Trust, Series 2015-1, Class B, 1.970%, 11/15/19 | 1,006,996 | ||||
500,000 | Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.260%, 6/15/20 | 502,061 | ||||
|
| |||||
Total Asset Backed Securities | 10,942,058 | |||||
|
| |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — 1.8% | ||||||
151,951 | Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34 | 160,063 | ||||
176,927 | Fannie Mae, Series 2003-66, Class PA, 3.500%, 2/25/33 | 182,617 | ||||
65,338 | Fannie Mae, Series 2005-67, Class HG, 5.500%, 1/25/35 | 69,945 | ||||
116,364 | Fannie Mae, Series 2009-100, Class PA, 4.500%, 4/25/39 | 121,471 | ||||
129,664 | Freddie Mac, Series 2770, Class UE, 4.500%, 3/15/19 | 134,391 | ||||
735,000 | Ginnie Mae, Series 2013-165, Class PB, 3.000%, 3/20/41 | 757,088 | ||||
84,483 | PHHMC Trust, Series 2007-6, Class A1, 5.357%, 12/18/37(b) | 83,913 |
Principal | Fair Value | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) | ||||||
$ 68,385 | Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37 | $ | 70,431 | |||
|
| |||||
Total Collateralized Mortgage Obligations | 1,579,919 | |||||
|
| |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — 14.4% | ||||||
549,429 | Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(b) | 558,433 | ||||
621,545 | Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51 | 653,152 | ||||
62,212 | Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.515%, 11/10/42(b) | 62,157 | ||||
37,775 | Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43 | 37,777 | ||||
673,010 | BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(a) | 667,582 | ||||
740,000 | Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50 | 780,897 | ||||
475,000 | CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49 | 490,450 | ||||
120,000 | Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.899%, 12/1/49(b) | 126,717 | ||||
655,000 | COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/1/46 | 681,796 | ||||
615,000 | COMM Mortgage Trust, Series 2007-C9, Class A4, 5.989%, 12/10/49(b) | 652,014 | ||||
143,434 | Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(b) | 143,390 | ||||
537,055 | Commercial Mortgage Trust, Series 2007-GG9, Class A4, 5.444%, 3/10/39 | 557,485 | ||||
493,918 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2005-LDP5, Class AM, 5.450%, 12/15/44(b) | 493,665 | ||||
316,130 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45 | 322,926 | ||||
600,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45 | 616,638 | ||||
211,556 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/47 | 219,148 | ||||
172,248 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/49 | 178,779 | ||||
500,000 | Merrill Lynch Mortgage Trust, Series 2005-LC1, Class AM, 5.494%, 1/12/44(b) | 501,729 | ||||
580,000 | ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 6.073%, 8/12/49(b) | 615,231 | ||||
900,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8, Class A2, 1.689%, 12/15/48 | 901,794 | ||||
669,795 | Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 6.017%, 8/12/41(b) | 682,994 | ||||
530,000 | Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AM, 5.360%, 11/1/41 | 546,790 |
Continued
68
Sterling Capital Short Duration Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||
$692,914 | Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.461%, 1/11/43(b) | $ | 751,709 | |||
394,000 | Morgan Stanley Capital I Trust, Series 2006-HQ9, Class AM, 5.773%, 7/12/44(b) | 403,970 | ||||
326,181 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(b) | 332,214 | ||||
320,166 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48 | 327,972 | ||||
500,000 | WFRBS Commercial Mortgage Trust, Series 2011-C3, Class A3, 3.998%, 3/15/44(a) | 527,114 | ||||
|
| |||||
Total Commercial Mortgage-Backed Securities (Cost $13,453,085) | 12,834,523 | |||||
|
| |||||
CORPORATE BONDS — 65.7% |
| |||||
Consumer Discretionary —4.9% |
| |||||
500,000 | CBS Corp., 4.625%, 5/15/18 | 531,672 | ||||
535,000 | Daimler Finance North America, LLC, 2.375%, 8/1/18(a) | 535,774 | ||||
400,000 | ERAC USA Finance, LLC, 6.375%, 10/15/17(a) | 436,807 | ||||
500,000 | Ford Motor Credit Co., LLC, 6.625%, 8/15/17 | 539,779 | ||||
400,000 | General Motors Financial Co., Inc., 2.400%, 4/10/18 | 396,926 | ||||
164,000 | Hanesbrands, Inc., 6.375%, 12/15/20 | 169,740 | ||||
395,000 | Hyundai Capital America, 1.450%, 2/6/17(a) | 394,783 | ||||
400,000 | Interpublic Group of Cos., Inc. (The), 2.250%, 11/15/17 | 400,982 | ||||
500,000 | Nordstrom, Inc., 6.250%, 1/15/18 | 552,710 | ||||
355,000 | Whirlpool Corp., 1.350%, 3/1/17 | 355,062 | ||||
|
| |||||
4,314,235 | ||||||
|
| |||||
Consumer Staples — 1.8% | ||||||
750,000 | Kraft Heinz Foods Co., 2.000%, 7/2/18(a) | 751,045 | ||||
175,000 | Reynolds American, Inc., 3.500%, 8/4/16(a) | 177,755 | ||||
250,000 | Reynolds American, Inc., 2.300%, 6/12/18 | 252,689 | ||||
455,000 | Walgreens Boots Alliance, Inc., 1.750%, 11/17/17 | 456,686 | ||||
|
| |||||
1,638,175 | ||||||
|
| |||||
Energy — 9.9% | ||||||
400,000 | Chevron Phillips Chemical Co., LLC / Chevron Phillips Chemical Co. LP, 1.700%, 5/1/18(a) | 399,096 | ||||
455,000 | CNOOC Finance, Ltd., 1.750%, 5/9/18 | 449,935 | ||||
250,000 | Columbia Pipeline Group, Inc., 2.450%, 6/1/18(a) | 250,483 | ||||
310,000 | ConocoPhillips Co., 1.500%, 5/15/18 | 309,714 | ||||
500,000 | Enbridge Energy Partners LP, Series B, 6.500%, 4/15/18 | 543,495 | ||||
560,000 | Energy Transfer Partners LP, 6.125%, 2/15/17 | 588,533 | ||||
500,000 | Enterprise Products Operating, LLC, 1.650%, 5/7/18 | 496,590 | ||||
570,000 | FMC Technologies, Inc., 2.000%, 10/1/17 | 568,354 | ||||
530,000 | Kinder Morgan, Inc., 7.000%, 6/15/17 | 564,999 | ||||
375,000 | Magellan Midstream Partners LP, 5.650%, 10/15/16 | 390,916 | ||||
400,000 | National Oilwell Varco, Inc., 1.350%, 12/1/17 | 396,974 | ||||
360,000 | Petrobras Global Finance BV, 3.875%, 1/27/16 | 353,700 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Energy — (continued) | ||||||
$ 450,000 | Phillips 66, 2.950%, 5/1/17 | $ | 460,369 | |||
380,000 | Pioneer Natural Resources Co., 6.650%, 3/15/17 | 402,436 | ||||
585,000 | Plains All American Pipeline LP/PAA Finance Corp., 6.125%, 1/15/17 | 615,161 | ||||
500,000 | Southern Natural Gas Co., LLC, 5.900%, 4/1/17(a) | 526,601 | ||||
260,000 | Spectra Energy Capital, LLC, 6.200%, 4/15/18 | 281,621 | ||||
233,000 | Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.000%, 1/15/18(a) | 221,933 | ||||
300,000 | Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16 | 308,585 | ||||
425,000 | Western Gas Partners LP, 2.600%, 8/15/18 | 425,947 | ||||
250,000 | Williams Partners LP/Williams Partners Finance Corp., 7.250%, 2/1/17 | 266,009 | ||||
|
| |||||
8,821,451 | ||||||
|
| |||||
Financials — 34.3% | ||||||
425,000 | Abbey National Treasury Services PLC, GMTN, 2.000%, 8/24/18 | 426,703 | ||||
475,000 | ABN AMRO Bank NV, 4.250%, 2/2/17(a) | 491,756 | ||||
400,000 | Aflac, Inc., 2.650%, 2/15/17 | 408,509 | ||||
365,000 | Ally Financial, Inc., 3.600%, 5/21/18 | 360,894 | ||||
1,000,000 | Bank of America Corp., 5.750%, 12/1/17 | 1,080,944 | ||||
450,000 | Bank of Montreal, 1.400%, 4/10/18 | 447,111 | ||||
450,000 | Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.700%, 3/5/18(a) | 447,351 | ||||
550,000 | BNP Paribas SA, MTN, 2.400%, 12/12/18 | 557,386 | ||||
400,000 | Caisse Centrale Desjardins, 1.550%, 9/12/17(a) | 399,876 | ||||
600,000 | Capital One NA, BKNT, 1.650%, 2/5/18 | 594,056 | ||||
380,000 | Charles Schwab Corp., MTN (The), 6.375%, 9/1/17 | 414,495 | ||||
350,000 | CIT Group, Inc., 4.250%, 8/15/17 | 354,375 | ||||
1,000,000 | Citigroup, Inc., 2.550%, 4/8/19 | 1,009,123 | ||||
395,000 | CNA Financial Corp., 6.500%, 8/15/16 | 412,790 | ||||
600,000 | Compass Bank, BKNT, 1.850%, 9/29/17 | 599,877 | ||||
650,000 | Credit Suisse/New York NY, 1.700%, 4/27/18 | 647,442 | ||||
250,000 | Essex Portfolio LP, REIT, 5.500%, 3/15/17 | 262,967 | ||||
325,000 | Fifth Third Bank, MTN, 2.150%, 8/20/18 | 327,485 | ||||
300,000 | First Data Corp., 6.750%, 11/1/20(a) | 313,500 | ||||
948,000 | General Electric Capital Corp., GMTN, 5.625%, 9/15/17 | 1,032,588 | ||||
390,000 | HCP, Inc., MTN, REIT, 6.300%, 9/15/16 | 406,866 | ||||
575,000 | HSBC Bank USA NA, BKNT, 6.000%, 8/9/17 | 618,034 | ||||
575,000 | Huntington National Bank (The), 1.375%, 4/24/17 | 571,931 | ||||
400,000 | ING Bank NV, 2.050%, 8/17/18(a) | 401,883 | ||||
415,000 | International Lease Finance Corp., 8.750%, 3/15/17 | 446,125 | ||||
465,000 | iStar, Inc., REIT, 4.000%, 11/1/17 | 447,563 | ||||
645,000 | Jackson National Life Global Funding, 2.300%, 4/16/19(a) | 649,016 | ||||
935,000 | JPMorgan Chase Bank NA, BKNT, 6.000%, 10/1/17 | 1,010,370 | ||||
320,000 | Kilroy Realty LP, REIT, 5.000%, 11/3/15 | 320,956 | ||||
450,000 | Kimco Realty Corp., REIT, MTN, 4.300%, 2/1/18 | 472,812 | ||||
500,000 | Lloyds Bank PLC, 1.750%, 3/16/18 | 500,165 | ||||
505,000 | Macquarie Bank, Ltd., 5.000%, 2/22/17(a) | 528,376 | ||||
340,000 | Manufacturers & Traders Trust Co., BKNT, 1.250%, 1/30/17 | 339,951 |
Continued
69
Sterling Capital Short Duration Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Financials — (continued) | ||||||
$ 880,000 | Morgan Stanley, 4.750%, 3/22/17 | $ | 921,869 | |||
445,000 | MUFG Union Bank NA, 2.625%, 9/26/18 | 452,424 | ||||
1,000,000 | Murray Street Investment Trust I, STEP, 4.647%, 3/9/17 | 1,042,898 | ||||
455,000 | National Rural Utilities Cooperative Finance Corp., MTN, 0.950%, 4/24/17 | 454,345 | ||||
330,000 | Nordea Bank AB, 1.250%, 4/4/17(a) | 329,872 | ||||
375,000 | PACCAR Financial Corp., MTN, 1.450%, 3/9/18 | 375,473 | ||||
355,000 | PNC Funding Corp., 5.625%, 2/1/17 | 373,866 | ||||
500,000 | Pricoa Global Funding I, 2.200%, 5/16/19(a) | 503,549 | ||||
350,000 | Principal Financial Group, Inc., 1.850%, 11/15/17 | 352,172 | ||||
555,000 | Prologis LP, 4.500%, 8/15/17 | 582,335 | ||||
250,000 | Realogy Group, LLC, 7.625%, 1/15/20(a) | 260,625 | ||||
600,000 | Regions Financial Corp., 2.000%, 5/15/18 | 599,525 | ||||
570,000 | Reinsurance Group of America, Inc., 5.625%, 3/15/17 | 602,189 | ||||
500,000 | Royal Bank of Scotland Group PLC, 1.875%, 3/31/17 | 498,770 | ||||
500,000 | Simon Property Group LP, REIT, 1.500%, 2/1/18(a) | 499,176 | ||||
350,000 | Sirius International Group, Ltd., 6.375%, 3/20/17(a) | 365,630 | ||||
255,000 | Standard Chartered Bank, 6.400%, 9/26/17(a) | 274,405 | ||||
500,000 | State Street Corp., 4.956%, 3/15/18 | 533,289 | ||||
600,000 | Sumitomo Mitsui Banking Corp., GMTN, 1.350%, 7/11/17 | 597,980 | ||||
440,000 | Symetra Financial Corp., 6.125%, 4/1/16(a) | 449,658 | ||||
207,000 | Transatlantic Holdings, Inc., 5.750%, 12/14/15 | 208,901 | ||||
350,000 | UBS AG, MTN, 5.875%, 7/15/16 | 362,309 | ||||
500,000 | UBS, MTN, 1.375%, 8/14/17 | 498,500 | ||||
525,000 | Ventas Realty LP / Ventas Capital Corp., REIT, 4.000%, 4/30/19 | 552,315 | ||||
330,000 | Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17 | 323,400 | ||||
600,000 | WEA Finance, LLC/Westfield UK & Europe Finance PLC, 1.750%, 9/15/17(a) | 596,002 | ||||
525,000 | Welltower Inc., REIT, 4.700%, 9/15/17 | 553,195 | ||||
|
| |||||
30,467,948 | ||||||
|
| |||||
Health Care — 5.2% | ||||||
550,000 | Actavis Funding SCS, 2.350%, 3/12/18 | 552,188 | ||||
200,000 | Bayer U.S. Finance, LLC, 1.500%, 10/6/17(a) | 200,587 | ||||
450,000 | Boston Scientific Corp., 2.650%, 10/1/18 | 455,491 | ||||
300,000 | Celgene Corp., 2.125%, 8/15/18 | 302,376 | ||||
285,000 | CHS/Community Health Systems, Inc., 5.125%, 8/15/18 | 291,413 | ||||
440,000 | DENTSPLY International, Inc., 2.750%, 8/15/16 | 445,618 | ||||
670,000 | Express Scripts Holding Co., 1.250%, 6/2/17 | 667,934 | ||||
475,000 | Humana, Inc., 7.200%, 6/15/18 | 540,579 | ||||
330,000 | Medtronic, Inc., 1.500%, 3/15/18 | 328,677 | ||||
320,000 | Tenet Healthcare Corp., 8.000%, 8/1/20 | 330,400 | ||||
500,000 | Zimmer Holdings, Inc., 2.000%, 4/1/18 | 500,624 | ||||
|
| |||||
4,615,887 | ||||||
|
| |||||
Industrials — 4.5% | ||||||
450,000 | CNH Industrial Capital, LLC, 3.875%, 11/1/15 | 448,875 | ||||
400,000 | Dover Corp., 5.450%, 3/15/18 | 437,907 | ||||
350,000 | Equifax, Inc., 6.300%, 7/1/17 | 377,345 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Industrials — (continued) | ||||||
$ 295,000 | LSB Industries, Inc., 7.750%, 8/1/19 | $ | 279,881 | |||
450,000 | Norfolk Southern Corp., 5.750%, 4/1/18 | 492,120 | ||||
575,000 | Penske Truck Leasing Co. LP / PTL Finance Corp., 3.375%, 3/15/18(a) | 591,181 | ||||
350,000 | Service Corp. International, 7.000%, 6/15/17 | 375,375 | ||||
500,000 | United Technologies Corp., STEP, 1.778%, 5/4/18 | 499,036 | ||||
485,000 | Waste Management, Inc., 6.100%, 3/15/18 | 535,123 | ||||
|
| |||||
4,036,843 | ||||||
|
| |||||
Information Technology — 0.5% |
| |||||
395,000 | Altera Corp., 1.750%, 5/15/17 | 396,903 | ||||
|
| |||||
Materials — 1.9% | ||||||
250,000 | Cemex SAB de CV, 9.500%, 6/15/18(a) | 269,925 | ||||
545,000 | Glencore Finance Canada, Ltd., 2.700%, 10/25/17(a) | 490,227 | ||||
484,000 | PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20 | 509,410 | ||||
450,000 | Vale Overseas, Ltd., 6.250%, 1/11/16 | 453,042 | ||||
|
| |||||
1,722,604 | ||||||
|
| |||||
Telecommunication Services — 2.4% |
| |||||
330,000 | America Movil SAB de CV, 2.375%, 9/8/16 | 333,274 | ||||
500,000 | CC Holdings GS V, LLC/Crown Castle GS III Corp., 2.381%, 12/15/17 | 503,501 | ||||
295,000 | Level 3 Financing, Inc., 8.625%, 7/15/20 | 308,275 | ||||
1,000,000 | Verizon Communications, Inc., 2.550%, 6/17/19 | 1,012,893 | ||||
|
| |||||
2,157,943 | ||||||
|
| |||||
Utilities — 0.3% | ||||||
280,000 | PSEG Power, LLC, 2.450%, 11/15/18 | 279,322 | ||||
|
| |||||
Total Corporate Bonds | 58,451,311 | |||||
|
| |||||
FOREIGN GOVERNMENT BOND — 0.5% |
| |||||
Columbia — 0.5% | ||||||
400,000 | Colombia Government International Bond, 7.375%, 1/27/17 | 429,000 | ||||
|
| |||||
Total Foreign Government Bond | 429,000 | |||||
|
| |||||
MORTGAGE-BACKED SECURITIES — 0.0% |
| |||||
Fannie Mae — 0.0% | ||||||
8,375 | 6.500%, 4/1/16, Pool #253706 | 8,441 | ||||
|
| |||||
Total Mortgage-Backed Securities (Cost $8,375) | 8,441 | |||||
|
| |||||
MUNICIPAL BONDS — 3.4% |
| |||||
Arizona — 0.6% | ||||||
500,000 | Arizona School Facilities Board, Refunding Certificate of Participation, Taxable, Series A-1, 1.474%, 9/1/17 | 505,155 | ||||
|
| |||||
Hawaii — 0.5% | ||||||
445,000 | Hawaii State Highway Revenue, Refunding, Taxable, Series C, 1.600%, 1/1/18 | 453,032 | ||||
|
|
Continued
70
Sterling Capital Short Duration Bond Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Illinois — 0.3% | ||||||
$250,000 | Chicago, IL, Midway International Airport Refunding Revenue, Taxable, Series C, 1.320%, 1/1/16 | $ | 250,555 | |||
|
| |||||
Maine — 0.3% | ||||||
250,000 | Maine Municipal Bond Bank, Miscellaneous Purpose Revenue, Taxable, 1.708%, 6/1/16 | 251,903 | ||||
|
| |||||
New Jersey — 0.3% | ||||||
320,000 | New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Series 00, 1.059%, 3/1/16 | 318,800 | ||||
|
| |||||
Puerto Rico — 0.4% | ||||||
325,000 | Puerto Rico Municipal Finance Agency, Public Improvements, G.O., Series A, Callable 11/9/2015 @ 100 (AGM, Government GTD), 5.250%, 8/1/18 | 325,111 | ||||
|
| |||||
South Carolina — 0.6% | ||||||
500,000 | South Carolina State Public Service Authority, Libor Index Refunding Revenue, Taxable, Series D, Callable 12/1/15 @ 100, 1.293%, 6/1/16(b) | 500,495 | ||||
|
| |||||
Washington — 0.4% | ||||||
390,000 | Providence Health & Services Obligated Group Revenue, Taxable, 1.276%, 10/1/17(b) | 391,395 | ||||
|
| |||||
Total Municipal Bonds | 2,996,446 | |||||
|
|
Shares | Fair Value | |||||
PREFERRED STOCKS — 0.7% |
| |||||
Financials — 0.7% | ||||||
5,755 | Ally Financial, Inc., Series A, 8.500% | $ | 149,227 | |||
8,089 | Hudson Pacific Properties, Inc., REIT, Series B, 8.375% | 204,490 | ||||
10,000 | Kite Realty Group Trust, REIT, Series A, 8.250% | 253,600 | ||||
|
| |||||
607,317 | ||||||
|
| |||||
Total Preferred Stocks | 607,317 | |||||
|
| |||||
MONEY MARKET FUND — 1.2% | ||||||
1,055,828 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | 1,055,828 | ||||
|
| |||||
Total Money Market Fund | 1,055,828 | |||||
|
| |||||
Total Investments — 100.0% | 88,904,843 | |||||
Net Other Assets (Liabilities) — 0.0% | (25,161 | ) | ||||
|
| |||||
NET ASSETS — 100.0% | $ | 88,879,682 | ||||
|
|
(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 September 30, 2015. The maturity date reflected is the final maturity date. |
(c) | Represents the current yield as of report date. |
AGM — Assured Guaranty Municipal Corp.
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.
71
Sterling Capital Intermediate U.S. Government Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Principal Amount | Fair Value | |||||
ASSET BACKED SECURITIES — 1.2% |
| |||||
Asset Backed Securities — 1.2% |
| |||||
$ 250,000 | United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35 | $ | 254,058 | |||
110,000 | United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35 | 110,938 | ||||
|
| |||||
Total Asset Backed Securities | 364,996 | |||||
|
| |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — 6.4% |
| |||||
943,062 | Fannie Mae, Series 2010-129, Class NA, 3.500%, 3/25/25 | 979,812 | ||||
559,279 | Freddie Mac, Series 3644, Class BA, 4.500%, 2/15/29 | 577,772 | ||||
360,212 | Ginnie Mae, Series 1999-17, Class F, 0.509%, 5/16/29(a) | 362,574 | ||||
|
| |||||
Total Collateralized Mortgage Obligations | 1,920,158 | |||||
|
| |||||
CORPORATE BONDS — 3.3% |
| |||||
Financials — 3.3% | ||||||
500,000 | Morgan Stanley, 2.125%, 4/25/18 | 502,945 | ||||
100,000 | National Rural Utilities Cooperative Finance Corp., MTN, 0.950%, 4/24/17 | 99,856 | ||||
200,000 | State Street Corp., 2.550%, 8/18/20 | 202,643 | ||||
200,000 | Wells Fargo & Co., GMTN, 2.600%, 7/22/20 | 202,017 | ||||
|
| |||||
Total Corporate Bonds | 1,007,461 | |||||
|
| |||||
MORTGAGE-BACKED SECURITIES — 8.8% |
| |||||
Fannie Mae — 8.1% | ||||||
1,833,097 | 3.584%, 9/1/20, Pool #FN0000 | 1,954,064 | ||||
220,060 | 5.500%, 1/1/33, Pool #678321 | 247,089 | ||||
210,752 | 6.000%, 7/1/37, Pool #938378 | 227,361 | ||||
|
| |||||
2,428,514 | ||||||
|
| |||||
Ginnie Mae — 0.7% | ||||||
207,108 | 5.000%, 11/20/38, Pool #4283 | 218,756 | ||||
|
| |||||
Total Mortgage-Backed Securities (Cost $2,465,557) | 2,647,270 | |||||
|
| |||||
MUNICIPAL BONDS — 4.5% | ||||||
California — 2.0% | ||||||
500,000 | State of California, Public School Improvements, Refunding Revenue, G.O., Callable 3/1/25 @ 100, 5.000%, 3/1/27 | 605,580 | ||||
|
| |||||
New York — 1.4% | ||||||
225,000 | New York City Transitional Finance Authority, Future Tax Secured Revenue, Public Improvements, Series A-1, Callable 8/1/24 @ 100, 5.000%, 8/1/32 | 261,018 | ||||
150,000 | New York, NY, Public Improvements, Taxable, G.O., Series A-1, 3.823%, 10/1/16 | 154,627 | ||||
|
| |||||
415,645 | ||||||
|
| |||||
Texas — 0.2% | ||||||
60,000 | Bexar County, TX, Build America Bonds, Public Improvements G.O., Taxable, Series C, Callable 6/15/19 @ 100, 6.628%, 6/15/39 | 68,214 | ||||
|
|
Principal Amount | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Washington — 0.9% | ||||||
$ 225,000 | State of Washington, Refunding G.O., Series R-H, Callable 1/1/25 @ 100, 5.000%, 7/1/28 | $ | 269,352 | |||
|
| |||||
Total Municipal Bonds | 1,358,791 | |||||
|
| |||||
U.S. GOVERNMENT AGENCIES — 40.7% |
| |||||
Fannie Mae — 14.3% |
| |||||
1,000,000 | 1.250%, 10/16/24, STEP | 1,000,479 | ||||
1,000,000 | 2.750%, 4/3/28, STEP | 1,000,650 | ||||
200,000 | 2.350%, 4/28/28, STEP | 199,773 | ||||
1,000,000 | 6.250%, 5/15/29 | 1,387,135 | ||||
500,000 | 7.125%, 1/15/30 | 749,253 | ||||
|
| |||||
4,337,290 | ||||||
|
| |||||
Federal Farm Credit Bank — 13.8% |
| |||||
500,000 | 0.875%, 5/22/17 | 500,042 | ||||
3,000,000 | 4.670%, 2/27/18 | 3,262,635 | ||||
400,000 | 3.150%, 10/15/24 | 400,374 | ||||
|
| |||||
4,163,051 | ||||||
|
| |||||
Federal Home Loan Bank — 7.4% |
| |||||
2,250,000 | 0.375%, 2/19/16 | 2,250,511 | ||||
|
| |||||
Freddie Mac — 5.2% |
| |||||
500,000 | 4.875%, 6/13/18 | 552,421 | ||||
500,000 | 2.375%, 1/13/22 | 514,955 | ||||
500,000 | 3.000%, 8/27/27 | 493,945 | ||||
|
| |||||
1,561,321 | ||||||
|
| |||||
Total U.S. Government Agencies | 12,312,173 | |||||
|
| |||||
U.S. TREASURY NOTES — 31.4% | ||||||
500,000 | 2.125%, 12/31/15 | 502,559 | ||||
601,210 | 2.000%, 1/15/16(b) | 599,535 | ||||
1,081,200 | 0.125%, 4/15/16(b) | 1,070,585 | ||||
1,000,000 | 3.000%, 8/31/16 | 1,023,737 | ||||
1,000,000 | 3.000%, 2/28/17 | 1,035,339 | ||||
250,000 | 1.875%, 9/30/17 | 256,048 | ||||
1,018,500 | 0.125%, 4/15/19(b) | 1,015,026 | ||||
500,000 | 1.250%, 4/30/19 | 502,683 | ||||
509,550 | 0.125%, 4/15/20(b) | 506,266 | ||||
500,000 | 1.625%, 8/15/22 | 495,768 | ||||
750,000 | 2.000%, 2/15/23 | 759,902 | ||||
511,405 | 0.625%, 1/15/24(b) | 508,934 | ||||
1,135,000 | 2.750%, 2/15/24 | 1,206,292 | ||||
|
| |||||
Total U.S. Treasury Notes | 9,482,674 | |||||
|
| |||||
Shares | ||||||
MONEY MARKET FUND — 3.3% | ||||||
996,234 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | 996,234 | ||||
|
| |||||
Total Money Market Fund | 996,234 | |||||
|
|
Continued
72
Sterling Capital Intermediate U.S. Government Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Fair Value | ||||||
Total Investments — 99.6% | $ | 30,089,757 | ||||
Net Other Assets (Liabilities) — 0.4% | 128,134 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 30,217,891 | ||||
|
|
(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 September 30, 2015. The maturity date reflected is the final maturity date. |
(b) | Inflation protection security. Principal amount periodically adjusted for inflation. |
(c) | Represents the current yield as of report date. |
G.O. — General Obligation
GMTN — Global Medium Term Note
MTN - Medium Term Note
STEP — Step Coupon Bond
See accompanying Notes to the Financial Statements.
73
Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments |
September 30, 2015 |
Principal Amount | Fair Value | |||||
ASSET BACKED SECURITIES — 12.3% |
| |||||
$3,000,000 | AmeriCredit Automobile Receivables Trust, Series 2014-4, Class B, 1.870%, 12/9/19 | $ | 3,019,665 | |||
4,120,000 | AmeriCredit Automobile Receivables Trust, Series 2015-1, Class B, 1.880%, 3/9/20 | 4,114,936 | ||||
1,047,816 | Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.534%, 11/25/35(a) | 1,016,586 | ||||
3,330,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2014-1A, Class A, 2.460%, 7/20/20(b) | 3,378,811 | ||||
9,154,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(b) | 9,199,331 | ||||
2,320,000 | Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 1.594%, 10/25/34(a) | 2,323,383 | ||||
1,018,000 | CarMax Auto Owner Trust, Series 2013-2, Class A4, 0.840%, 11/15/18 | 1,011,288 | ||||
2,478,000 | Chase Issuance Trust, Series 2014-A2, Class A2, 2.770%, 3/15/23 | 2,570,216 | ||||
2,000,000 | Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.880%, 1/23/23 | 2,089,940 | ||||
3,210,000 | Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.120%, 12/15/21 | 3,270,701 | ||||
6,360,000 | Encore Credit Receivables Trust, Series 2005-4, Class M2, 0.634%, 1/25/36(a) | 5,881,047 | ||||
6,034,000 | Ford Credit Auto Owner Trust, Series 2014-2, Class A, 2.310%, 4/15/26(b) | 6,119,997 | ||||
4,000,000 | Ford Credit Auto Owner Trust, Series 2015-1, Class A, 2.120%, 7/15/26(b) | 4,019,740 | ||||
3,000,000 | JP Morgan Mortgage Acquisition Corp., Series 2005-OPT1, Class M2, 0.664%, 6/25/35(a) | 2,793,909 | ||||
1,759,711 | Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.394%, 1/25/36(a) | 1,696,721 | ||||
1,349,553 | New Century Home Equity Loan Trust, Series 2003-4, Class M1, 1.319%, 10/25/33(a) | 1,296,671 | ||||
3,550,000 | Park Place Securities, Inc., Series 2005-WHQ2, Class M2, 0.884%, 5/25/35(a) | 3,348,956 | ||||
468,993 | Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 0.944%, 3/25/35(a) | 465,872 | ||||
2,680,000 | RAMP Trust, Series 2005-RZ4, Class M2, 0.694%, 11/25/35(a) | 2,318,264 | ||||
4,500,000 | Santander Drive Auto Receivables Trust, Series 2014-5, Class B, 1.760%, 9/16/19 | 4,526,555 | ||||
2,418,000 | Santander Drive Auto Receivables Trust, Series 2015-3, Class B, 2.070%, 4/15/20 | 2,431,744 | ||||
7,910,000 | Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.260%, 6/15/20 | 7,942,613 | ||||
3,702,670 | Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.514%, 10/25/35(a) | 3,591,227 | ||||
3,850,000 | United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35 | 3,882,842 | ||||
|
| |||||
Total Asset Backed Securities | 82,311,015 | |||||
|
| |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — 7.4% |
| |||||
599,179 | Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 2.705%, 4/25/35(a) | 584,825 | ||||
762,071 | Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34 | 791,570 |
Principal Amount | Fair Value | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) |
| |||||
$1,260,217 | Banc of America Funding Trust, Series 2006-2, Class 3A1, 6.000%, 3/25/36 | $ | 1,285,943 | |||
196,924 | Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35 | 199,964 | ||||
173,751 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19 | 181,740 | ||||
866,123 | Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34 | 912,360 | ||||
246,116 | Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34 | 256,192 | ||||
92,882 | Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20 | 93,143 | ||||
636,783 | Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34 | 673,242 | ||||
222,329 | Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35 | 230,027 | ||||
1,110,385 | Fannie Mae, Series 2013-133, Class AV, 4.000%, 12/25/26 | 1,217,392 | ||||
2,149,157 | Fannie Mae, Series 2014-39, Class VP, 3.000%, 8/1/27 | 2,250,959 | ||||
3,070,011 | Fannie Mae, Series 2011-38, Class D, 4.500%, 5/25/41 | 3,415,323 | ||||
5,132,942 | FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/1/44(a)(b) | 5,185,754 | ||||
1,631,929 | Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23 | 1,774,600 | ||||
3,054,838 | Freddie Mac, Series 4387, Class VM, 4.000%, 11/1/25 | 3,330,225 | ||||
2,092,884 | Freddie Mac, Series 4287, Class V, 4.500%, 10/1/26 | 2,333,016 | ||||
364,574 | Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27 | 386,948 | ||||
3,024,336 | Freddie Mac, Series 4331, Class V, 4.000%, 11/1/28 | 3,313,420 | ||||
777,982 | Freddie Mac, Series 3632, Class PK, 5.000%, 2/15/40 | 862,117 | ||||
3,772,373 | Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40 | 4,010,221 | ||||
2,192,452 | Freddie Mac, Series 4328, Class KD, 3.000%, 8/15/43 | 2,286,017 | ||||
990,761 | Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38 | 1,074,753 | ||||
968,627 | MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33 | 997,091 | ||||
858,723 | MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35 | 863,099 | ||||
158,592 | MASTR Asset Securitization Trust, Series 2003-4, Class 5A1, 5.500%, 5/25/33 | 163,163 | ||||
371,766 | MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32 | 373,682 | ||||
812,335 | PHHMC Trust, Series 2007-6, Class A1, 5.357%, 12/18/37(a) | 806,854 | ||||
86,892 | RAAC Trust, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(a) | 88,712 | ||||
1,086,701 | RAAC Trust, Series 2004-SP1, Class AI3, STEP, 6.118%, 3/25/34 | 1,117,691 |
Continued
74
Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) |
| |||||
$ 958,905 | RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34 | $ | 1,004,039 | |||
509,773 | Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 2.533%, 12/25/34(a) | 496,636 | ||||
1,412,239 | Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34 | 1,424,937 | ||||
1,218,261 | Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 2.451%, 6/25/34(a) | 1,217,008 | ||||
403,633 | Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35 | 411,926 | ||||
223,815 | Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35 | 228,413 | ||||
136,921 | Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22 | 139,207 | ||||
1,016,061 | Wells Fargo Mortgage Backed Securities Trust, Series 2004-BB, Class A2, 2.623%, 1/25/35(a) | 1,020,757 | ||||
414,232 | Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35 | 423,245 | ||||
1,980,855 | Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 6A3, 2.734%, 10/25/35(a) | 1,991,611 | ||||
220,338 | Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37 | 226,930 | ||||
|
| |||||
Total Collateralized Mortgage Obligations | 49,644,752 | |||||
|
| |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — 15.3% | ||||||
3,220,165 | Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(a) | 3,272,934 | ||||
1,710,000 | Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/1/46 | 1,764,687 | ||||
3,955,634 | Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47 | 4,033,967 | ||||
2,995,688 | Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51 | 3,148,025 | ||||
622,119 | Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.515%, 11/10/42(a) | 621,567 | ||||
294,643 | Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43 | 294,659 | ||||
4,882,785 | BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b) | 4,843,406 | ||||
2,500,000 | Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/1/42(a) | 2,682,033 | ||||
2,085,000 | Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50 | 2,200,230 | ||||
2,838,000 | CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49 | 2,930,309 | ||||
1,575,000 | Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.899%, 12/1/49(a) | 1,663,165 | ||||
3,545,000 | COMM Mortgage Trust, Series 2013-CR12, Class A4, 4.046%, 10/1/46 | 3,839,444 |
Principal | Fair Value | |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) |
| |||||
$4,050,000 | COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/1/46 | $ | 4,215,685 | |||
1,208,000 | COMM Mortgage Trust, Series 2014-LC17, Class A5, 3.917%, 10/10/47 | 1,289,551 | ||||
1,344,000 | COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/1/47 | 1,398,302 | ||||
1,500,000 | Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.230%, 12/10/49(a) | 1,593,945 | ||||
1,392,682 | Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a) | 1,392,261 | ||||
1,081,034 | Credit Suisse Commercial Mortgage Trust, Series 2007-C4, Class A4, 6.147%, 9/1/39(a) | 1,142,936 | ||||
2,524,000 | GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47 | 2,693,388 | ||||
1,397,000 | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47 | 1,495,874 | ||||
4,000,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/1/43(b) | 4,389,012 | ||||
2,030,809 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45 | 2,074,462 | ||||
2,350,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45 | 2,415,165 | ||||
4,000,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b) | 4,348,572 | ||||
1,951,238 | LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 2/15/40 | 2,027,350 | ||||
1,730,000 | LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.369%, 9/15/45(a) | 1,882,794 | ||||
3,299,495 | Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4, 5.690%, 2/12/51 | 3,513,639 | ||||
660,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47 | 702,464 | ||||
4,176,141 | Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.461%, 1/11/43(a) | 4,530,491 | ||||
2,390,000 | Morgan Stanley Capital I Trust, Series 2006-HQ8, Class AM, 5.636%, 3/12/44(a) | 2,404,383 | ||||
4,000,000 | Morgan Stanley Capital I Trust, Series 2011-C1, Class B, 5.564%, 9/1/47(a)(b) | 4,493,524 | ||||
640,000 | Morgan Stanley Capital I Trust, Series 2011-C1, Class C, 5.564%, 9/1/47(a)(b) | 710,666 | ||||
4,535,000 | Morgan Stanley Capital I Trust, Series 2007-IQ14, Class A5, 5.696%, 4/15/49(a) | 4,785,699 | ||||
1,050,000 | Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class B, 5.306%, 1/15/41(a) | 1,056,549 | ||||
579,361 | Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.246%, 12/15/43 | 583,492 | ||||
1,908,042 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(a) | 1,943,333 | ||||
2,125,209 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48 | 2,177,027 | ||||
2,000,000 | Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A2, 4.393%, 11/15/43(b) | 2,181,264 |
Continued
75
Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) |
| |||||
$ 825,000 | WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A4, 4.869%, 2/15/44(a)(b) | $ | 922,062 | |||
2,000,000 | WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b) | 2,195,626 | ||||
1,000,000 | WF-RBS Commercial Mortgage Trust, Series 2011-C3, Class A4, 4.375%, 3/15/44(b) | 1,095,503 | ||||
250,000 | WF-RBS Commercial Mortgage Trust, Series 2012-C8, Class AS, 3.660%, 8/15/45 | 260,397 | ||||
3,716,000 | WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57 | 3,908,816 | ||||
1,008,000 | WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57 | 1,073,077 | ||||
|
| |||||
Total Commercial Mortgage-Backed Securities (Cost $105,245,307) | 102,191,735 | |||||
|
| |||||
CORPORATE BONDS — 41.5% |
| |||||
Consumer Discretionary — 3.7% |
| |||||
1,393,000 | 21st Century Fox America, Inc., 5.400%, 10/1/43 | 1,475,705 | ||||
1,450,000 | CBS Corp., 4.600%, 1/15/45 | 1,276,357 | ||||
2,365,000 | Comcast Corp., 4.200%, 8/15/34 | 2,332,779 | ||||
2,875,000 | Daimler Finance North America, LLC, 1.600%, 8/3/17(b) | 2,857,195 | ||||
1,300,000 | ERAC USA Finance, LLC, 5.625%, 3/15/42(b) | 1,394,082 | ||||
1,306,000 | Ford Motor Co., 7.450%, 7/16/31 | 1,622,328 | ||||
2,915,000 | Ford Motor Credit Co., LLC, 0.956%, 3/27/17(a) | 2,873,957 | ||||
1,655,000 | General Motors Financial Co., Inc., 3.200%, 7/13/20 | 1,632,709 | ||||
905,000 | Grupo Televisa SAB, 6.000%, 5/15/18 | 985,545 | ||||
1,309,000 | Hanesbrands, Inc., 6.375%, 12/15/20 | 1,354,815 | ||||
1,633,000 | Lear Corp., 5.375%, 3/15/24 | 1,633,000 | ||||
1,015,000 | Lowe’s Cos., Inc., 5.800%, 4/15/40 | 1,205,188 | ||||
1,300,000 | Omnicom Group, Inc., 3.650%, 11/1/24 | 1,276,582 | ||||
1,615,000 | Toll Brothers Finance Corp., 6.750%, 11/1/19 | 1,833,025 | ||||
1,250,000 | Viacom, Inc., 5.850%, 9/1/43 | 1,157,199 | ||||
|
| |||||
24,910,466 | ||||||
|
| |||||
Consumer Staples — 1.0% | ||||||
1,665,000 | Altria Group, Inc., 5.375%, 1/31/44 | 1,810,106 | ||||
1,322,000 | CVS Health Corp., 6.125%, 9/15/39 | 1,601,346 | ||||
2,413,000 | Reynolds American, Inc., 5.850%, 8/15/45 | 2,684,631 | ||||
583,000 | Walgreens Boots Alliance, Inc., 2.700%, 11/18/19 | 590,868 | ||||
|
| |||||
6,686,951 | ||||||
|
| |||||
Energy — 4.7% | ||||||
1,200,000 | Buckeye Partners LP, 4.150%, 7/1/23 | 1,101,815 | ||||
1,475,000 | CNOOC Nexen Finance, 4.250%, 4/30/24 | 1,486,210 | ||||
1,600,000 | Continental Resources, Inc., 7.125%, 4/1/21 | 1,646,000 | ||||
1,425,000 | Enable Midstream Partners LP, 5.000%, 5/15/44(b) | 1,055,895 | ||||
1,697,000 | Energy Transfer Partners LP, 4.050%, 3/15/25 | 1,499,697 | ||||
1,330,000 | EnLink Midstream Partners LP, 5.050%, 4/1/45 | 1,126,846 | ||||
1,180,000 | Enterprise Products Operating, LLC, 5.950%, 2/1/41 | 1,215,619 | ||||
1,250,000 | Hess Corp., 5.600%, 2/15/41 | 1,164,870 | ||||
1,862,000 | Kinder Morgan Energy Partners LP, 5.000%, 3/1/43 | 1,455,198 | ||||
1,136,000 | Kinder Morgan, Inc., 7.000%, 6/15/17 | 1,211,016 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Energy — (continued) |
| |||||
$1,165,000 | Magellan Midstream Partners LP, 6.550%, 7/15/19 | $ | 1,328,298 | |||
680,000 | MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 4.875%, 6/1/25 | 625,464 | ||||
856,000 | NuStar Logistics LP, 8.150%, 4/15/18 | 915,920 | ||||
1,575,000 | Oceaneering International, Inc., 4.650%, 11/15/24 | 1,498,464 | ||||
1,745,000 | Petrobras Global Finance BV, 3.875%, 1/27/16 | 1,714,463 | ||||
1,177,000 | Phillips 66, 5.875%, 5/1/42 | 1,273,962 | ||||
1,629,000 | Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21 | 1,680,965 | ||||
1,528,000 | Shell International Finance BV, 4.550%, 8/12/43 | 1,537,562 | ||||
910,000 | Spectra Energy Capital, LLC, 8.000%, 10/1/19 | 1,063,269 | ||||
1,790,000 | Statoil ASA, 4.800%, 11/8/43 | 1,905,240 | ||||
1,254,000 | Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.000%, 1/15/18(b) | 1,194,435 | ||||
1,342,000 | Williams Partners LP, 6.300%, 4/15/40 | 1,206,708 | ||||
1,600,000 | Williams Partners LP/ACMP Finance Corp., 6.125%, 7/15/22 | 1,627,946 | ||||
858,000 | Williams Partners LP/ACMP Finance Corp., 4.875%, 3/15/24 | 768,125 | ||||
|
| |||||
31,303,987 | ||||||
|
| |||||
Financials — 22.4% | ||||||
1,928,000 | AerCap Ireland Capital, Ltd./AerCap Global Aviation Trust, 4.250%, 7/1/20 | 1,925,590 | ||||
2,175,000 | Alexandria Real Estate Equities, Inc., REIT, 2.750%, 1/15/20 | 2,171,324 | ||||
2,230,000 | Ally Financial, Inc., 3.600%, 5/21/18 | 2,204,913 | ||||
1,800,000 | American International Group, Inc., 4.800%, 7/10/45 | 1,837,552 | ||||
1,486,000 | Apollo Management Holdings LP, 4.000%, 5/30/24(b) | 1,498,144 | ||||
1,545,000 | Ares Finance Co., LLC, 4.000%, 10/8/24(b) | 1,502,084 | ||||
1,624,000 | Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23 | 1,687,396 | ||||
431,000 | Associates Corp. of North America, 6.950%, 11/1/18 | 491,546 | ||||
4,035,000 | Bank of America Corp., MTN, 6.875%, 4/25/18 | 4,509,661 | ||||
1,282,000 | Bank of America Corp., MTN, 5.875%, 2/7/42 | 1,499,080 | ||||
1,874,000 | Bank of America Corp., Series K, 8.000%, 7/29/49(a) | 1,958,330 | ||||
2,111,000 | Brixmor Operating Partnership LP, REIT, 3.850%, 2/1/25 | 2,049,908 | ||||
1,950,000 | Capital One Financial Corp., 3.200%, 2/5/25 | 1,861,640 | ||||
1,515,000 | CBRE Services, Inc., 5.250%, 3/15/25 | 1,535,916 | ||||
1,950,000 | CIT Group, Inc., 4.250%, 8/15/17 | 1,974,375 | ||||
2,500,000 | Citigroup, Inc., 2.021%, 5/15/18(a) | 2,553,027 | ||||
2,031,000 | Citigroup, Inc., 4.400%, 6/10/25 | 2,042,648 | ||||
1,670,000 | Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.950%, 11/9/22 | 1,677,209 | ||||
1,788,000 | Corrections Corp. of America, REIT, 4.125%, 4/1/20 | 1,779,060 | ||||
1,815,000 | Credit Suisse, MTN, 3.625%, 9/9/24 | 1,818,009 | ||||
1,849,000 | CubeSmart LP, REIT, 4.800%, 7/15/22 | 2,010,020 | ||||
1,315,000 | Dai-ichi Life Insurance Co., Ltd. (The), 5.100%, 10/29/49(a)(b) | 1,357,737 | ||||
1,554,000 | Excel Trust LP, REIT, 4.625%, 5/15/24 | 1,537,156 | ||||
1,650,000 | First Data Corp., 6.750%, 11/1/20(b) | 1,724,250 |
Continued
76
Sterling Capital Total Return Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Financials — (continued) | ||||||
$1,388,000 | General Electric Capital Corp., GMTN, 6.875%, 1/10/39 | $1,943,361 | ||||
2,599,000 | General Electric Capital Corp., Series B, 6.250%, 12/29/49(a) | 2,819,915 | ||||
3,166,000 | Goldman Sachs Group, Inc. (The), 1.454%, 4/23/20(a) | 3,174,232 | ||||
1,552,000 | Goldman Sachs Group, Inc. (The), 6.250%, 2/1/41 | 1,871,467 | ||||
1,275,000 | Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(b) | 1,477,367 | ||||
2,136,000 | HCP, Inc., REIT, 4.000%, 6/1/25 | 2,092,727 | ||||
1,560,000 | Healthcare Realty Trust, Inc., REIT, 3.750%, 4/15/23 | 1,527,089 | ||||
1,976,000 | Healthcare Trust of America Holdings LP, REIT, 3.700%, 4/15/23 | 1,936,616 | ||||
1,622,000 | Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23 | 1,587,588 | ||||
1,934,000 | HSBC Finance Corp., 6.676%, 1/15/21 | 2,262,830 | ||||
2,785,000 | Huntington National Bank (The), 2.000%, 6/30/18 | 2,792,121 | ||||
1,560,000 | iStar, Inc., REIT, 4.000%, 11/1/17 | 1,501,500 | ||||
1,711,000 | Jones Lang LaSalle, Inc., 4.400%, 11/15/22 | 1,766,079 | ||||
3,275,000 | JPMorgan Chase & Co., 3.875%, 9/10/24 | 3,243,704 | ||||
1,597,000 | JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(a) | 1,658,884 | ||||
2,000,000 | KeyBank NA, BKNT, 2.500%, 12/15/19 | 2,024,974 | ||||
1,175,000 | Kilroy Realty LP, REIT, 4.375%, 10/1/25 | 1,185,682 | ||||
1,680,000 | KKR Group Finance Co. III, LLC, 5.125%, 6/1/44(b) | 1,637,857 | ||||
1,275,000 | Liberty Mutual Group, Inc., 7.800%, | 1,482,187 | ||||
1,652,000 | Macquarie Bank, Ltd., 6.625%, 4/7/21(b) | 1,851,705 | ||||
870,000 | Massachusetts Mutual Life Insurance Co., 8.875%, 6/1/39(b) | 1,290,307 | ||||
1,000,000 | MetLife, Inc., 7.717%, 2/15/19 | 1,183,458 | ||||
2,860,000 | Morgan Stanley, 4.300%, 1/27/45 | 2,718,081 | ||||
3,735,000 | Morgan Stanley, GMTN, 6.625%, 4/1/18 | 4,159,049 | ||||
4,241,000 | Murray Street Investment Trust I, STEP, 4.647%, 3/9/17 | 4,422,930 | ||||
1,670,000 | National Rural Utilities Cooperative Finance Corp., 4.750%, 4/30/43(a) | 1,655,805 | ||||
2,200,000 | Nationwide Building Society, 3.900%, | 2,249,652 | ||||
987,000 | Nationwide Mutual Insurance Co., 9.375%, 8/15/39(b) | 1,494,948 | ||||
1,655,000 | Nippon Life Insurance Co., 5.100%, | 1,704,650 | ||||
1,000,000 | Ohio National Life Insurance Co., 6.875%, 6/15/42(b) | 1,231,162 | ||||
1,650,000 | Old Republic International Corp., 4.875%, 10/1/24 | 1,729,710 | ||||
1,447,000 | Pacific LifeCorp, 5.125%, 1/30/43(b) | 1,516,369 | ||||
500,000 | PNC Bank NA, BKNT, 4.875%, 9/21/17 | 530,342 | ||||
1,007,000 | PNC Bank NA, BKNT, 6.000%, 12/7/17 | 1,098,261 | ||||
2,008,000 | Prologis LP, 4.250%, 8/15/23 | 2,079,997 | ||||
1,505,000 | Prudential Financial, Inc., 8.875%, 6/15/38(a) | 1,727,364 | ||||
1,565,000 | Realogy Group, LLC, 7.625%, 1/15/20(b) | 1,631,513 | ||||
1,065,000 | Reinsurance Group of America, Inc., 5.625%, 3/15/17 | 1,125,143 | ||||
1,390,000 | Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23 | 1,453,705 |
Principal Amount | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Financials — (continued) | ||||||
$1,670,000 | Royal Bank of Canada, GMTN, 2.200%, 7/27/18 | $ 1,695,012 | ||||
1,450,000 | Royal Bank of Scotland Group PLC, 4.700%, 7/3/18 | 1,501,943 | ||||
1,120,000 | Senior Housing Properties Trust, REIT, 6.750%, 4/15/20 | 1,258,135 | ||||
1,473,000 | Simon Property Group LP, REIT, 10.350%, 4/1/19 | 1,852,177 | ||||
1,710,000 | Sirius International Group, Ltd., 6.375%, | 1,786,365 | ||||
1,350,000 | Standard Chartered Bank, 6.400%, 9/26/17(b) | 1,452,735 | ||||
1,735,000 | Symetra Financial Corp., 4.250%, 7/15/24 | 1,762,028 | ||||
3,140,000 | TIAA Asset Management Finance Co., LLC, 2.950%, 11/1/19(b) | 3,183,643 | ||||
1,062,000 | Transatlantic Holdings, Inc., 8.000%, 11/30/39 | 1,419,295 | ||||
805,000 | Validus Holdings, Ltd., 8.875%, 1/26/40 | 1,042,588 | ||||
1,304,000 | Ventas Realty LP, REIT, 5.700%, 9/30/43 | 1,443,017 | ||||
1,855,000 | Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17 | 1,817,900 | ||||
1,595,000 | Wachovia Corp., 5.500%, 8/1/35 | 1,797,980 | ||||
1,350,000 | WEA Finance, LLC / Westfield UK & Europe Finance PLC, 4.750%, 9/17/44(b) | 1,302,201 | ||||
2,400,000 | Wells Fargo & Co., GMTN, 4.300%, 7/22/27 | 2,445,938 | ||||
2,100,000 | Welltower, Inc., REIT, 4.950%, 1/15/21 | 2,288,076 | ||||
1,415,000 | XLIT, Ltd., 4.450%, 3/31/25 | 1,416,020 | ||||
|
| |||||
149,511,959 | ||||||
|
| |||||
Health Care — 1.8% | ||||||
1,754,000 | Boston Scientific Corp., 3.375%, 5/15/22 | 1,752,332 | ||||
1,360,000 | Celgene Corp., 2.875%, 8/15/20 | 1,372,339 | ||||
1,607,000 | CHS/Community Health Systems, Inc., 5.125%, 8/15/18 | 1,643,157 | ||||
1,133,000 | Humana, Inc., 4.950%, 10/1/44 | 1,150,696 | ||||
1,675,000 | Medtronic, Inc., 4.375%, 3/15/35 | 1,693,246 | ||||
1,730,000 | Quintiles Transnational Corp., 4.875%, | 1,712,700 | ||||
1,526,000 | Tenet Healthcare Corp., 8.000%, 8/1/20 | 1,575,595 | ||||
1,300,000 | UnitedHealth Group, Inc., 2.700%, 7/15/20 | 1,330,199 | ||||
|
| |||||
12,230,264 | ||||||
|
| |||||
Industrials — 2.8% | ||||||
1,381,000 | Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41 | 1,438,285 | ||||
1,535,000 | CNH Industrial Capital, LLC, 3.875%, 11/1/15 | 1,531,163 | ||||
1,690,000 | Fortune Brands Home & Security, Inc., 3.000%, 6/15/20 | 1,702,668 | ||||
1,478,000 | LSB Industries, Inc., 7.750%, 8/1/19 | 1,402,253 | ||||
1,655,000 | Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(b) | 1,758,684 | ||||
2,400,000 | Republic Services, Inc., 3.550%, 6/1/22 | 2,460,516 | ||||
2,100,000 | Ryder System, Inc., MTN, 2.500%, 5/11/20 | 2,085,197 | ||||
1,245,000 | SBA Tower Trust, 2.898%, 10/15/19(b) | 1,248,972 | ||||
1,701,000 | United Rentals North America, Inc., 7.375%, 5/15/20 | 1,786,050 | ||||
1,560,000 | Verisk Analytics, Inc., 5.800%, 5/1/21 | 1,772,488 | ||||
1,335,000 | Waste Management, Inc., 4.100%, 3/1/45 | 1,250,226 | ||||
|
| |||||
18,436,502 | ||||||
|
| |||||
Information Technology — 0.6% | ||||||
1,900,000 | Alibaba Group Holding, Ltd., 2.500%, | 1,864,637 |
Continued
77
Sterling Capital Total Return Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Information Technology — (continued) | ||||||
$1,807,000 | Intel Corp., 3.700%, 7/29/25 | $ | 1,853,910 | |||
|
| |||||
3,718,547 | ||||||
|
| |||||
Materials — 2.0% | ||||||
1,400,000 | Cemex SAB de CV, 5.875%, 3/25/19(b) | 1,365,000 | ||||
2,635,000 | Glencore Funding, LLC, 1.349%, | 2,276,398 | ||||
854,000 | International Paper Co., 7.300%, 11/15/39 | 1,045,176 | ||||
1,248,000 | Louisiana-Pacific Corp., 7.500%, 6/1/20 | 1,294,800 | ||||
2,150,000 | LYB International Finance BV, 4.875%, 3/15/44 | 2,036,957 | ||||
1,214,000 | Mosaic Co. (The), 5.450%, 11/15/33 | 1,279,035 | ||||
1,305,000 | PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20 | 1,373,513 | ||||
1,200,000 | Rockwood Specialties Group, Inc., 4.625%, 10/15/20 | 1,242,102 | ||||
1,820,000 | West Fraser Timber Co., Ltd., 4.350%, | 1,762,253 | ||||
|
| |||||
13,675,234 | ||||||
|
| |||||
Telecommunication Services — 1.8% |
| |||||
856,000 | British Telecommunications PLC, 9.625%, 12/15/30 | 1,276,442 | ||||
2,890,000 | CCO Safari II, LLC, 4.464%, 7/23/22(b) | 2,891,526 | ||||
1,185,000 | Crown Castle Towers, LLC, 6.113%, | 1,335,410 | ||||
1,912,000 | Level 3 Financing, Inc., 8.625%, 7/15/20 | 1,998,040 | ||||
2,366,000 | Verizon Communications, Inc., 6.550%, 9/15/43 | 2,795,297 | ||||
1,577,000 | Verizon Communications, Inc., 5.012%, 8/21/54 | 1,435,297 | ||||
|
| |||||
11,732,012 | ||||||
|
| |||||
Utilities — 0.7% |
| |||||
1,675,000 | CMS Energy Corp., 4.700%, 3/31/43 | 1,693,680 | ||||
1,354,000 | Progress Energy, Inc., 3.150%, 4/1/22 | 1,351,361 | ||||
1,802,000 | PSEG Power, LLC, 2.450%, 11/15/18 | 1,797,639 | ||||
|
| |||||
4,842,680 | ||||||
|
| |||||
Total Corporate Bonds | 277,048,602 | |||||
|
| |||||
FOREIGN GOVERNMENT BONDS — 0.5% |
| |||||
Mexico — 0.5% | ||||||
1,094,000 | United Mexican States, 5.550%, 1/21/45 | 1,119,983 | ||||
2,628,000 | United Mexican States, MTN, 4.750%, 3/8/44 | 2,398,050 | ||||
|
| |||||
3,518,033 | ||||||
|
| |||||
Total Foreign Government Bonds | 3,518,033 | |||||
|
| |||||
MORTGAGE-BACKED SECURITIES — 10.2% |
| |||||
Fannie Mae — 6.8% | ||||||
29,583 | 5.000%, 8/1/20, Pool #832058 | 30,753 | ||||
139,811 | 6.000%, 7/1/22, Pool #944967 | 146,963 | ||||
134,839 | 5.000%, 9/1/25, Pool #255892 | 148,446 | ||||
1,584,481 | 4.000%, 2/1/32, Pool #MA0977 | 1,715,984 | ||||
3,607,700 | 4.000%, 6/1/34, Pool #MA1922 | 3,888,501 | ||||
3,299,966 | 3.500%, 11/1/34, Pool #MA2077 | 3,485,829 | ||||
119,865 | 6.500%, 1/1/35, Pool #809198 | 137,468 | ||||
3,368,652 | 4.000%, 3/1/35, Pool #MA2211 | 3,630,036 | ||||
59,175 | 7.000%, 6/1/35, Pool #255820 | 68,240 | ||||
38,293 | 7.000%, 6/1/35, Pool #830686 | 39,487 | ||||
196,902 | 6.500%, 3/1/36, Pool #866062 | 240,244 | ||||
117,888 | 6.500%, 7/1/36, Pool #885493 | 134,672 |
Principal Amount | Fair Value | |||||
MORTGAGE-BACKED SECURITIES — (continued) |
| |||||
Fannie Mae — (continued) | ||||||
$1,545,593 | 5.500%, 8/1/37, Pool #995082 | $ | 1,737,832 | |||
885,655 | 4.500%, 10/1/39, Pool #AC2645 | 962,745 | ||||
740,408 | 5.000%, 6/1/40, Pool #AD4927 | 818,998 | ||||
540,549 | 5.000%, 6/1/40, Pool #AD8718 | 595,511 | ||||
2,009,791 | 4.500%, 12/1/40, Pool #AH1100 | 2,185,619 | ||||
1,485,086 | 4.500%, 5/1/41, Pool #AI1023 | 1,615,220 | ||||
2,603,026 | 4.000%, 9/1/41, Pool #AI3940 | 2,784,586 | ||||
858,628 | 4.500%, 11/1/41, Pool #AJ4994 | 933,879 | ||||
1,393,879 | 4.500%, 12/1/41, Pool #AJ7696 | 1,514,764 | ||||
2,577,628 | 4.000%, 1/1/42, Pool #MA0956 | 2,758,091 | ||||
2,579,684 | 3.500%, 6/1/42, Pool #AB5373 | 2,696,411 | ||||
4,285,216 | 3.500%, 5/1/43, Pool #AB9368 | 4,480,489 | ||||
2,216,552 | 4.500%, 11/1/44, Pool #MA2100 | 2,409,698 | ||||
3,963,268 | 4.500%, 1/1/45, Pool #MA2158 | 4,309,849 | ||||
2,070,451 | 4.000%, 3/1/45, Pool #MA2217 | 2,211,384 | ||||
|
| |||||
45,681,699 | ||||||
|
| |||||
Freddie Mac — 3.0% |
| |||||
165,821 | 5.500%, 10/1/21, Pool #G12425 | 179,207 | ||||
133,611 | 5.000%, 12/1/21, Pool #J04025 | 140,788 | ||||
221,773 | 5.000%, 7/1/25, Pool #C90908 | 242,781 | ||||
521,995 | 2.500%, 1/1/28, Pool #J22069 | 537,414 | ||||
2,208,591 | 3.500%, 7/1/30, Pool #G18562 | 2,335,246 | ||||
376,948 | 4.000%, 11/1/31, Pool #C91410 | 406,068 | ||||
1,611,452 | 3.500%, 4/1/32, Pool #C91437 | 1,705,641 | ||||
2,505,270 | 3.500%, 7/1/32, Pool #C91467 | 2,651,751 | ||||
178,553 | 5.000%, 3/1/36, Pool #G08115 | 196,823 | ||||
20,745 | 6.500%, 5/1/36, Pool #A48509 | 23,716 | ||||
52,579 | 5.000%, 7/1/36, Pool #G02291 | 57,813 | ||||
564,283 | 6.500%, 9/1/36, Pool #G08152 | 645,095 | ||||
247,273 | 5.000%, 2/1/37, Pool #A57714 | 270,680 | ||||
226,990 | 4.500%, 10/1/39, Pool #A89346 | 246,230 | ||||
802,076 | 5.000%, 6/1/40, Pool #C03479 | 883,355 | ||||
1,904,170 | 5.000%, 7/1/40, Pool #A93070 | 2,097,138 | ||||
2,326,183 | 4.000%, 12/1/42, Pool #G07266 | 2,481,660 | ||||
1,753,665 | 3.500%, 5/1/43, Pool #Q18305 | 1,829,457 | ||||
1,688,093 | 4.000%, 5/1/44, Pool #V81186 | 1,800,993 | ||||
742,887 | 4.000%, 7/1/44, Pool #G08595 | 791,602 | ||||
706,879 | 4.000%, 9/1/44, Pool #Q28299 | 754,394 | ||||
|
| |||||
20,277,852 | ||||||
|
| |||||
Ginnie Mae — 0.4% |
| |||||
454,095 | 5.000%, 2/15/40, Pool #737037 | 503,053 | ||||
1,802,398 | 4.500%, 9/20/40, Pool #4801 | 1,959,587 | ||||
|
| |||||
2,462,640 | ||||||
|
| |||||
Total Mortgage-Backed Securities | 68,422,191 | |||||
|
| |||||
MUNICIPAL BONDS — 8.9% |
| |||||
California — 2.2% | ||||||
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 | 4,179,372 | ||||
2,100,000 | Sacramento County Sanitation Districts Financing Authority, Refunding Revenue, Taxable, Series B, 2.810%, 12/1/21 | 2,139,585 | ||||
1,285,000 | State of California, Build America Bonds, School Improvements G.O., 7.625%, 3/1/40 | 1,846,365 |
Continued
78
Sterling Capital Total Return Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
California — (continued) | ||||||
$3,525,000 | State of California, Public School Improvements Revenue, G.O., Callable 3/1/25 @ 100, 5.000%, 3/1/26 | $ | 4,313,014 | |||
1,850,000 | University of California, Univ. & College Improvements, Taxable Revenue, Series AN, 3.338%, 5/15/22 | 1,933,176 | ||||
|
| |||||
14,411,512 | ||||||
|
| |||||
Connecticut — 0.5% |
| |||||
3,000,000 | State of Connecticut Special Tax Revenue, Build America Bonds, Transition Infrastructure, Series B, 4.126%, 11/1/20 | 3,240,510 | ||||
|
| |||||
District of Columbia — 0.3% |
| |||||
1,835,000 | George Washington University (The), Series 2012, 3.485%, 9/15/22 | 1,889,982 | ||||
|
| |||||
Hawaii — 0.3% |
| |||||
1,500,000 | City & County of Honolulu, HI, Public Improvements, Refunding G.O., Series B, Callable 10/1/25 @ 100, 5.000%, 10/1/30 | 1,793,385 | ||||
|
| |||||
Maryland — 0.9% |
| |||||
1,760,000 | Anne Arundel County, MD, Consolidation General Improvements G.O., Callable 4/1/25 @ 100, 5.000%, 4/1/32 | 2,085,952 | ||||
3,250,000 | Montgomery County, MD, Refunding G.O., Series A, Callable 11/1/24 @ 100, 5.000%, 11/1/28 | 3,955,803 | ||||
|
| |||||
6,041,755 | ||||||
|
| |||||
New Jersey — 0.2% |
| |||||
1,305,000 | New Jersey Economic Development Authority, School Facilities Construction, Refunding Revenue, Series 00, 1.648%, 3/1/18 | 1,272,062 | ||||
|
| |||||
New York — 2.7% |
| |||||
2,570,000 | New York City Transitional Finance Authority, Future Tax Secured Revenue, Public Improvements, Series A-1, Callable 8/1/24 @ 100, 5.000%, 8/1/32 | 2,981,406 | ||||
3,280,000 | New York City Water & Sewer System, Refunding Revenue, Series DD, Callable 6/15/24 @ 100, 5.000%, 6/15/36 | 3,736,182 | ||||
2,000,000 | New York State Dormitory Authority, Public Improvements, Refunding Revenue, Series C, Group B, Callable 3/15/24 @ 100, 5.000%, 3/15/30 | 2,329,320 | ||||
2,000,000 | New York State Dormitory Authority, Public Improvements, Taxable Revenue, Series D, 2.550%, 3/15/21 | 2,027,560 | ||||
750,000 | New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.445%, 6/15/20 | 759,750 | ||||
900,000 | New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.745%, 6/15/22 | 897,759 | ||||
2,900,000 | New York, NY, Build America Bonds, Public Improvements G.O., 4.774%, 3/1/20 | 3,202,383 | ||||
1,640,000 | New York, NY, Build America Bonds, Public Improvements G.O., 4.874%, 3/1/21 | 1,834,110 | ||||
|
| |||||
17,768,470 | ||||||
|
|
Principal Amount | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Pennsylvania — 0.3% | ||||||
$2,260,000 | Philadelphia Authority for Industrial Development, Refunding Revenue, Taxable, 3.664%, 4/15/22 | $ | 2,293,561 | |||
|
| |||||
Virginia — 1.1% |
| |||||
2,425,000 | Commonwealth of Virginia, Refunding G.O., Series B, Callable 6/1/25 @ 100 (State Aid Withholding), 5.000%, 6/1/27 | 3,009,886 | ||||
1,410,000 | Hampton, VA, Advance Refunding G.O., Series B (State Aid Withholding), 5.000%, 9/1/24 | 1,745,721 | ||||
2,445,000 | Virginia Public School Authority, Refunding Revenue, Callable 8/1/25 @ 100 (State Aid Withholding), 5.000%, 8/1/28 | 2,969,061 | ||||
|
| |||||
7,724,668 | ||||||
|
| |||||
Washington — 0.4% |
| |||||
2,320,000 | State of Washington, Refunding G.O., Series R-H, Callable 1/1/25 @ 100, 5.000%, 7/1/28 | 2,777,318 | ||||
|
| |||||
Total Municipal Bonds | 59,213,223 | |||||
|
| |||||
U.S. TREASURY BONDS — 0.4% |
| |||||
2,495,500 | 3.125%, 2/15/43 | 2,613,387 | ||||
|
| |||||
Total U.S. Treasury Bonds | 2,613,387 | |||||
|
| |||||
U.S. TREASURY NOTES — 1.8% |
| |||||
5,717,000 | 2.125%, 5/15/25 | 5,751,393 | ||||
6,335,099 | 0.375%, 7/15/25(c) | 6,171,033 | ||||
|
| |||||
Total U.S. Treasury Notes | 11,922,426 | |||||
|
| |||||
Shares | ||||||
PREFERRED STOCKS — 0.9% |
| |||||
Financials — 0.9% | ||||||
24,978 | Ally Financial, Inc., Series A, 8.500% | 647,680 | ||||
61,601 | Citigroup Capital XIII, 7.875% | 1,582,530 | ||||
65,000 | Kite Realty Group Trust, REIT, Series A, 8.250% | 1,648,400 | ||||
65,135 | US Bancorp, Series F, 6.500% | 1,870,677 | ||||
|
| |||||
5,749,287 | ||||||
|
| |||||
Total Preferred Stocks | 5,749,287 | |||||
|
| |||||
MONEY MARKET FUND — 0.6% |
| |||||
3,741,103 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(d) | 3,741,103 | ||||
|
| |||||
Total Money Market Fund | 3,741,103 | |||||
|
| |||||
Total Investments — 99.8% | 666,375,754 | |||||
Net Other Assets (Liabilities) — 0.2% | 1,631,887 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 668,007,641 | ||||
|
|
(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 September 30, 2015. The maturity date reflected is the final maturity date. |
Continued
79
Sterling Capital Total Return Bond Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
(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
MTN — Medium Term Note
REIT — Real Estate Investment Trust
STEP — Step Coupon Bond
See accompanying Notes to the Financial Statements.
80
Sterling Capital Corporate Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
CORPORATE BONDS — 96.9% |
| |||||
Consumer Discretionary — 7.3% | ||||||
$325,000 | CBS Corp., 2.300%, 8/15/19 | $ | 322,366 | |||
425,000 | Comcast Cable Communications Holdings, Inc., 9.455%, 11/15/22 | 593,028 | ||||
275,000 | Daimler Finance North America, LLC, 3.250%, 8/1/24(a) | 263,981 | ||||
390,000 | ERAC USA Finance, LLC, 2.800%, 11/1/18(a) | 398,879 | ||||
325,000 | General Motors Financial Co., Inc., 3.200%, 7/13/20 | 320,623 | ||||
455,000 | Grupo Televisa SAB, 6.000%, 5/15/18 | 495,495 | ||||
225,000 | Hanesbrands, Inc., 6.375%, 12/15/20 | 232,875 | ||||
500,000 | Hyundai Capital America, 2.000%, 3/19/18(a) | 497,857 | ||||
455,000 | Interpublic Group of Cos., Inc. (The), 3.750%, 2/15/23 | 446,208 | ||||
255,000 | Lear Corp., 5.375%, 3/15/24 | 255,000 | ||||
245,000 | Omnicom Group, Inc., 3.650%, 11/1/24 | 240,587 | ||||
230,000 | Toll Brothers Finance Corp., 6.750%, 11/1/19 | 261,050 | ||||
350,000 | Viacom, Inc., 5.625%, 9/15/19 | 385,049 | ||||
|
| |||||
4,712,998 | ||||||
|
| |||||
Consumer Staples — 2.7% |
| |||||
380,000 | Altria Group, Inc., 4.750%, 5/5/21 | 414,052 | ||||
475,000 | Kraft Heinz Foods Co., 2.800%, | 478,112 | ||||
500,000 | Reynolds American, Inc., 4.450%, 6/12/25 | 523,177 | ||||
325,000 | Walgreens Boots Alliance, Inc., 2.700%, 11/18/19 | 329,386 | ||||
|
| |||||
1,744,727 | ||||||
|
| |||||
Energy — 10.5% |
| |||||
334,000 | BP Capital Markets PLC, 1.375%, 11/6/17 | 333,499 | ||||
385,000 | Buckeye Partners LP, 2.650%, 11/15/18 | 381,122 | ||||
250,000 | Columbia Pipeline Group, Inc., 3.300%, 6/1/20(a) | 250,746 | ||||
300,000 | Continental Resources, Inc., 7.125%, 4/1/21 | 308,625 | ||||
450,000 | Enable Midstream Partners LP, 3.900%, 5/15/24(a) | 396,839 | ||||
415,000 | Energy Transfer Partners LP, 4.050%, 3/15/25 | 366,750 | ||||
405,000 | EnLink Midstream Partners LP, 4.400%, 4/1/24 | 385,584 | ||||
272,000 | Kinder Morgan Energy Partners LP, 6.850%, 2/15/20 | 306,811 | ||||
154,000 | Kinder Morgan, Inc., 7.000%, 6/15/17 | 164,169 | ||||
275,000 | Magellan Midstream Partners LP, 6.550%, 7/15/19 | 313,547 | ||||
133,000 | MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 4.875%, 6/1/25 | 122,333 | ||||
303,000 | NuStar Logistics LP, 4.750%, 2/1/22 | 266,640 | ||||
285,000 | Oceaneering International, Inc., 4.650%, 11/15/24 | 271,151 | ||||
300,000 | Petrobras Global Finance BV, 3.875%, 1/27/16 | 294,750 | ||||
410,000 | Petrofac, Ltd., 3.400%, 10/10/18(a) | 403,979 | ||||
350,000 | Pioneer Natural Resources Co., 6.650%, 3/15/17 | 370,665 | ||||
410,000 | Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21 | 423,079 | ||||
305,000 | Spectra Energy Capital, LLC, 8.000%, 10/1/19 | 356,370 | ||||
240,000 | Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.000%, 1/15/18(a) | 228,600 | ||||
368,000 | Western Gas Partners LP, 4.000%, 7/1/22 | 356,147 | ||||
300,000 | Williams Partners LP/ACMP Finance Corp., 6.125%,7/15/22 | 305,240 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Energy — (continued) | ||||||
$135,000 | Williams Partners LP/ACMP Finance Corp., 4.875%, 3/15/24 | $ | 120,859 | |||
|
| |||||
6,727,505 | ||||||
|
| |||||
Financials — 57.0% |
| |||||
399,000 | AerCap Ireland Capital, Ltd./AerCap Global Aviation Trust, 4.250%, 7/1/20 | 398,501 | ||||
270,000 | AgriBank FCB, Series AI, 9.125%, 7/15/19 | 333,525 | ||||
352,000 | Alexandria Real Estate Equities, Inc., REIT, 4.600%, 4/1/22 | 369,910 | ||||
255,000 | Alleghany Corp., 4.950%, 6/27/22 | 275,678 | ||||
360,000 | Ally Financial, Inc., 3.600%, 5/21/18 | 355,950 | ||||
300,000 | American Tower Corp., REIT, 5.050%, 9/1/20 | 327,884 | ||||
280,000 | Apollo Management Holdings LP, 4.000%, 5/30/24(a) | 282,288 | ||||
380,000 | Ares Finance Co., LLC, 4.000%, 10/8/24(a) | 369,445 | ||||
260,000 | Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23 | 270,150 | ||||
400,000 | Associated Banc-Corp, 2.750%, 11/15/19 | 405,508 | ||||
190,000 | Associates Corp. of North America, 6.950%, 11/1/18 | 216,691 | ||||
250,000 | AXIS Specialty Finance PLC, 2.650%, 4/1/19 | 251,115 | ||||
940,000 | Bank of America Corp., MTN, 6.875%, 4/25/18 | 1,050,578 | ||||
875,000 | Bank of America Corp., Series K, 8.000%, 7/29/49(b) | 914,375 | ||||
450,000 | Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 2.350%, 9/8/19(a) | 450,326 | ||||
485,000 | Bear Stearns Cos., LLC (The), 5.550%, 1/22/17 | 509,345 | ||||
335,000 | Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(a) | 390,036 | ||||
410,000 | Brixmor Operating Partnership LP, REIT, 3.850%, 2/1/25 | 398,135 | ||||
600,000 | Capital One Financial Corp., 3.200%, 2/5/25 | 572,812 | ||||
480,000 | Carlyle Holdings Finance, LLC, 3.875%, 2/1/23(a) | 491,355 | ||||
380,000 | CBRE Services, Inc., 5.250%, 3/15/25 | 385,246 | ||||
335,000 | CIT Group, Inc., 4.250%, 8/15/17 | 339,187 | ||||
390,000 | Citigroup, Inc., 3.500%, 5/15/23 | 379,663 | ||||
400,000 | Citigroup, Inc., 4.400%, 6/10/25 | 402,294 | ||||
625,000 | Comerica Bank, BKNT, 2.500%, 6/2/20 | 630,029 | ||||
350,000 | Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 3.950%, 11/9/22 | 351,511 | ||||
338,000 | Corrections Corp. of America, REIT, 4.125%, 4/1/20 | 336,310 | ||||
355,000 | Credit Suisse, MTN, 3.625%, 9/9/24 | 355,589 | ||||
397,000 | CubeSmart LP, REIT, 4.800%, 7/15/22 | 431,573 | ||||
355,000 | DDR Corp., REIT, 9.625%, 3/15/16 | 367,540 | ||||
365,000 | Essex Portfolio LP, REIT, 3.250%, 5/1/23 | 356,220 | ||||
300,000 | Excel Trust LP, REIT, 4.625%, 5/15/24 | 296,748 | ||||
355,000 | First American Financial Corp., 4.300%, 2/1/23 | 355,956 | ||||
335,000 | First Data Corp., 6.750%, 11/1/20(a) | 350,075 | ||||
410,000 | Ford Motor Credit Co., LLC, 2.375%, 1/16/18 | 410,459 | ||||
1,100,000 | General Electric Capital Corp., Series B, 6.250%, 12/29/49(b) | 1,193,500 | ||||
270,000 | Goldman Sachs Group, Inc. (The), 1.454%, 4/23/20(b) | 270,702 | ||||
515,000 | Goldman Sachs Group, Inc. (The), 3.625%, 1/22/23 | 521,713 | ||||
300,000 | Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(a) | 347,616 |
Continued
81
Sterling Capital Corporate Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Financials — (continued) | ||||||
$505,000 | Healthcare Realty Trust, Inc., REIT, 3.750%, 4/15/23 | $ | 494,346 | |||
405,000 | Healthcare Trust of America Holdings LP, REIT, 3.375%,7/15/21 | 404,336 | ||||
408,000 | Host Hotels & Resorts LP, REIT, Series D, 3.750%,10/15/23 | 399,344 | ||||
692,000 | HSBC Finance Corp., 6.676%, 1/15/21 | 809,658 | ||||
360,000 | iStar, Inc., REIT, 4.000%, 11/1/17 | 346,500 | ||||
408,000 | Jones Lang LaSalle, Inc., 4.400%, 11/15/22 | 421,134 | ||||
975,000 | JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(b) | 1,012,781 | ||||
365,000 | KeyCorp, MTN, 5.100%, 3/24/21 | 403,863 | ||||
293,000 | Kilroy Realty LP, REIT, 4.375%, 10/1/25 | 295,664 | ||||
350,000 | KKR Group Finance Co., LLC, 6.375%, 9/29/20(a) | 410,653 | ||||
245,000 | Liberty Mutual Group, Inc., 4.250%, 6/15/23(a) | 253,386 | ||||
500,000 | Lloyds Bank PLC, 3.500%, 5/14/25 | 494,547 | ||||
410,000 | Macquarie Bank, Ltd., 5.000%, | 428,978 | ||||
450,000 | Macquarie Bank, Ltd., 6.625%, | 504,399 | ||||
335,000 | MetLife, Inc., 7.717%, 2/15/19 | 396,458 | ||||
997,000 | Morgan Stanley, GMTN, 6.625%, 4/1/18 | 1,110,193 | ||||
475,000 | Morgan Stanley, GMTN, 3.700%, 10/23/24 | 477,266 | ||||
869,000 | Murray Street Investment Trust I, STEP, 4.647%,3/9/17 | 906,278 | ||||
255,000 | National City Corp., 6.875%, 5/15/19 | 293,963 | ||||
345,000 | National Rural Utilities Cooperative Finance Corp., 10.375%, 11/1/18 | 431,226 | ||||
400,000 | Nationwide Building Society, 3.900%, 7/21/25(a) | 409,028 | ||||
410,000 | Nationwide Financial Services, Inc., 5.375%, 3/25/21(a) | 457,394 | ||||
255,000 | Old Republic International Corp., 4.875%, 10/1/24 | 267,319 | ||||
400,000 | Pacific LifeCorp, 6.000%, 2/10/20(a) | 451,610 | ||||
265,000 | PNC Bank NA, BKNT, 4.875%, 9/21/17 | 281,081 | ||||
250,000 | Protective Life Corp., 7.375%, 10/15/19 | 294,859 | ||||
300,000 | Prudential Financial, Inc., 8.875%, 6/15/38(b) | 344,325 | ||||
280,000 | Realogy Group, LLC, 7.625%, | 291,900 | ||||
400,000 | Reinsurance Group of America, Inc., 5.625%, 3/15/17 | 422,589 | ||||
390,000 | Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23 | 407,874 | ||||
365,000 | Royal Bank of Scotland Group PLC, 4.700%, 7/3/18 | 378,075 | ||||
245,000 | Senior Housing Properties Trust, REIT, 6.750%, 4/15/20 | 275,217 | ||||
395,000 | Simon Property Group LP, REIT, 10.350%, 4/1/19 | 496,680 | ||||
467,000 | Sirius International Group, Ltd., | 487,855 | ||||
485,000 | Standard Chartered Bank, 6.400%, | 521,909 | ||||
250,000 | SunTrust Banks, Inc., 3.500%, 1/20/17 | 256,137 | ||||
270,000 | Symetra Financial Corp., 4.250%, 7/15/24 | 274,206 | ||||
610,000 | TIAA Asset Management Finance Co., LLC, 2.950%, 11/1/19(a) | 618,478 | ||||
375,000 | UBS AG, MTN, 5.875%, 7/15/16 | 388,188 | ||||
330,000 | Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17 | 323,400 | ||||
500,000 | WEA Finance, LLC/Westfield UK & Europe Finance PLC, 2.700%, 9/17/19(a) | 497,635 | ||||
350,000 | Wells Fargo & Co., GMTN, 4.300%, 7/22/27 | 356,699 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Financials — (continued) | ||||||
$435,000 | Welltower, Inc., REIT, 4.950%, 1/15/21 | $ | 473,959 | |||
390,000 | WR Berkley Corp., 4.625%, 3/15/22 | 414,035 | ||||
295,000 | XLIT, Ltd., 4.450%, 3/31/25 | 295,213 | ||||
|
| |||||
36,696,176 | ||||||
|
| |||||
Health Care — 2.4% | ||||||
350,000 | Celgene Corp., 2.875%, 8/15/20 | 353,176 | ||||
290,000 | CHS/Community Health Systems, Inc., 5.125%, 8/15/18 | 296,525 | ||||
285,000 | DENTSPLY International, Inc., 2.750%, 8/15/16 | 288,639 | ||||
295,000 | Quintiles Transnational Corp., 4.875%, 5/15/23(a) | 292,050 | ||||
319,000 | Tenet Healthcare Corp., 8.000%, 8/1/20 | 329,367 | ||||
|
| |||||
1,559,757 | ||||||
|
| |||||
Industrials — 6.4% | ||||||
325,000 | CNH Industrial Capital, LLC, 3.875%, 11/1/15 | 324,187 | ||||
310,000 | Fortune Brands Home & Security, Inc., 3.000%, 6/15/20 | 312,324 | ||||
290,000 | LSB Industries, Inc., 7.750%, 8/1/19 | 275,137 | ||||
400,000 | Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(a) | 425,060 | ||||
425,000 | Republic Services, Inc., 3.550%, 6/1/22 | 435,716 | ||||
336,000 | Ryder System, Inc., MTN, 2.350%, 2/26/19 | 336,840 | ||||
300,000 | SBA Tower Trust, 2.898%, | 300,957 | ||||
345,000 | Textron, Inc., 3.650%, 3/1/21 | 353,101 | ||||
445,000 | United Rentals North America, Inc., 7.375%, 5/15/20 | 467,250 | ||||
445,000 | Verisk Analytics, Inc., 5.800%, 5/1/21 | 505,613 | ||||
350,000 | Waste Management, Inc., 4.600%, 3/1/21 | 386,040 | ||||
|
| |||||
4,122,225 | ||||||
|
| |||||
Information Technology — 0.5% |
| |||||
340,000 | Alibaba Group Holding, Ltd., 2.500%, 11/28/19(a) | 333,672 | ||||
|
| |||||
Materials — 3.6% | ||||||
394,000 | Cemex SAB de CV, 5.875%, | 384,150 | ||||
300,000 | Glencore Funding, LLC, 1.349%, 4/16/18(a)(b) | 259,172 | ||||
390,000 | Louisiana-Pacific Corp., 7.500%, 6/1/20 | 404,625 | ||||
400,000 | LYB International Finance BV, 4.000%, 7/15/23 | 401,859 | ||||
330,000 | PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20 | 347,325 | ||||
254,000 | Rockwood Specialties Group, Inc., 4.625%, 10/15/20 | 262,912 | ||||
250,000 | West Fraser Timber Co., Ltd., 4.350%, 10/15/24(a) | 242,068 | ||||
|
| |||||
2,302,111 | ||||||
|
| |||||
Telecommunication Services — 4.1% |
| |||||
650,000 | CCO Safari II, LLC, 4.464%, | 650,343 | ||||
450,000 | Crown Castle Towers, LLC, 6.113%, 1/15/20(a) | 507,118 | ||||
395,000 | Level 3 Financing, Inc., 8.625%, 7/15/20 | 412,775 | ||||
525,000 | Verizon Communications, Inc., 1.104%, 6/17/19(b) | 521,490 | ||||
497,000 | Verizon Communications, Inc., 5.150%, 9/15/23 | 549,031 | ||||
|
| |||||
2,640,757 | ||||||
|
| |||||
Utilities — 2.4% | ||||||
313,000 | CMS Energy Corp., 8.750%, 6/15/19 | 384,883 | ||||
350,000 | Dominion Resources, Inc., 5.200%, 8/15/19 | 387,473 |
Continued
82
Sterling Capital Corporate Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
CORPORATE BONDS — (continued) |
| |||||
Utilities — (continued) | ||||||
$375,000 | PSEG Power, LLC, 2.450%, 11/15/18 | $ | 374,093 | |||
400,000 | Southern Co. (The), 2.750%, 6/15/20 | 398,770 | ||||
|
| |||||
1,545,219 | ||||||
|
| |||||
Total Corporate Bonds | 62,385,147 | |||||
|
| |||||
Shares | ||||||
PREFERRED STOCKS — 1.4% |
| |||||
Financials — 1.4% | ||||||
4,629 | Ally Financial, Inc., Series A, 8.500% | 120,030 | ||||
14,500 | Citigroup Capital XIII, 7.875% | 372,505 | ||||
15,000 | Kite Realty Group Trust, REIT, Series A, 8.250% | 380,400 | ||||
|
| |||||
872,935 | ||||||
|
| |||||
Total Preferred Stocks | 872,935 | |||||
|
| |||||
MONEY MARKET FUND — 1.9% |
| |||||
1,210,465 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | 1,210,465 | ||||
|
| |||||
Total Money Market Fund | 1,210,465 | |||||
|
| |||||
Total Investments — 100.2% | 64,468,547 | |||||
Net Other Assets (Liabilities) — (0.2)% | (119,558) | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 64,348,989 | ||||
|
|
(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 September 30, 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.
83
Sterling Capital Securitized Opportunities Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal Amount | Fair Value | |||||
ASSET BACKED SECURITIES — 28.6% |
| |||||
$350,000 | AmeriCredit Automobile Receivables Trust, Series 2013-3, Class C, 2.380%, 6/10/19 | $353,818 | ||||
255,000 | AmeriCredit Automobile Receivables Trust, Series 2014-1, Class B, 1.680%, 7/8/19 | 254,150 | ||||
380,000 | AmeriCredit Automobile Receivables Trust, Series 2015-1, Class B, 1.880%, 3/9/20 | 379,533 | ||||
300,000 | AmeriCredit Automobile Receivables Trust, Series 2014-3, Class C, 2.580%, 9/8/20 | 302,593 | ||||
329,314 | Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.534%, 11/25/35(a) | 319,498 | ||||
600,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(b) | 602,971 | ||||
700,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2015-1A, Class A, 2.500%, 7/20/21(b) | 706,045 | ||||
300,000 | Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, | 300,437 | ||||
350,000 | Capital Auto Receivables Asset Trust, Series 2015-3, Class B, 2.550%, 9/21/20 | 353,531 | ||||
422,000 | Chase Issuance Trust, Series 2014-A2, Class A2, 2.770%, 3/15/23 | 437,704 | ||||
700,000 | Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.880%, 1/23/23 | 731,479 | ||||
300,000 | Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.150%, 6/15/39 | 404,623 | ||||
640,000 | Encore Credit Receivables Trust, Series 2005-4, Class M2, 0.634%, 1/25/36(a) | 591,804 | ||||
15,000 | Ford Credit Auto Owner Trust, Series 2014-B, Class C, 1.950%, 2/15/20 | 15,103 | ||||
750,000 | Ford Credit Auto Owner Trust, Series 2014-2, Class A, 2.310%, 4/15/26(b) | 760,689 | ||||
650,000 | Hertz Vehicle Financing, LLC, Series 2013-1A, Class A2, 1.830%, | 647,971 | ||||
200,000 | Home Equity Asset Trust, Series 2005-8, Class M1, 0.624%, 2/25/36(a) | 185,691 | ||||
500,000 | JP Morgan Mortgage Acquisition Corp., Series 2005-OPT1, Class M2, 0.664%, 6/25/35(a) | 465,651 | ||||
453,534 | Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.394%, | 437,299 | ||||
399,583 | Morgan Stanley Home Equity Loan Trust, Series 2005-3, Class M2, 0.664%, | 385,684 | ||||
500,000 | New Century Home Equity Loan Trust, Series 2005-4, Class M2, 0.704%, | 449,124 | ||||
450,000 | Park Place Securities, Inc., Series 2005-WHQ2, Class M2, 0.884%, 5/25/35(a) | 424,516 | ||||
400,000 | Park Place Securities, Inc. Pass Through Certificates, Series 2005-WCW3, Class M1, 0.674%, 8/25/35(a) | 372,232 | ||||
320,000 | RAMP Trust, Series 2005-RZ4, Class M2, 0.694%, 11/25/35(a) | 276,808 | ||||
400,000 | Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18 | 400,860 | ||||
600,000 | Santander Drive Auto Receivables Trust, Series 2014-4, Class C, 2.600%, 11/16/20 | 607,756 | ||||
404,938 | Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.514%, 10/25/35(a) | 392,750 | ||||
329,819 | United States Small Business Administration, Series 2010-20D, Class 1, 4.360%, 4/1/30 | 358,193 | ||||
500,000 | United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35 | 508,117 |
Principal Amount | Fair Value | |||||
ASSET BACKED SECURITIES — (continued) |
| |||||
$450,000 | United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35 | $ | 453,839 | |||
375,000 | United States Small Business Administration, Series 2015-20I, Class 1, 2.820%, 9/1/35 | 378,582 | ||||
|
| |||||
Total Asset Backed Securities | 13,259,051 | |||||
|
| |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — 18.3% | ||||||
193,018 | Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34 | 200,489 | ||||
131,283 | Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35 | 133,310 | ||||
156,331 | Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A4, 5.500%, 2/25/35 | 158,239 | ||||
173,317 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19 | 181,285 | ||||
227,927 | Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34 | 240,095 | ||||
147,670 | Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34 | 153,715 | ||||
121,293 | Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20 | 121,634 | ||||
246,339 | Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34 | 260,443 | ||||
134,731 | Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35 | 139,396 | ||||
500,000 | Fannie Mae, Series 2011-15, Class VB, 4.000%, 9/25/29 | 540,955 | ||||
18,157 | Fannie Mae, Series 2003-19, Class AR, 5.500%, 3/1/33 | 20,454 | ||||
461,747 | Fannie Mae, Series 2004-17, Class BZ, 6.000%, 4/1/34 | 598,426 | ||||
210,000 | Fannie Mae, Series 2013-30, Class PY, 3.000%, 4/25/43 | 212,742 | ||||
302,851 | FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/1/44(a)(b) | 305,967 | ||||
100,000 | Freddie Mac, Series 3558, Class G, 4.000%, 8/15/24 | 109,545 | ||||
37,099 | Freddie Mac, Series 4079, Class WV, 3.500%, 3/15/27 | 39,197 | ||||
313,562 | Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27 | 332,805 | ||||
487,327 | Freddie Mac, Series 2525, Class AM, 4.500%, 4/15/32 | 543,934 | ||||
141,517 | Freddie Mac, Series 2485, Class WG, 6.000%, 8/15/32 | 161,030 | ||||
150,000 | Freddie Mac, Series 2702, Class CE, 4.500%, 11/15/33 | 164,424 | ||||
240,698 | Freddie Mac, Series 3440, Class EM, 5.000%, 4/15/38 | 265,866 | ||||
418,142 | Freddie Mac, Series 3753, Class PA, 3.500%, 9/15/39 | 442,216 | ||||
466,332 | Freddie Mac, Series 3816, Class HM, 4.500%, 5/1/40 | 517,566 | ||||
342,217 | Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40 | 363,794 |
Continued
84
Sterling Capital Securitized Opportunities Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) | ||||||
$206,296 | Freddie Mac, Series 3803, Class PJ, 4.250%, 1/15/41 | $ | 223,526 | |||
187,619 | Ginnie Mae, Series 2010-85, Class DQ, 3.000%, 12/20/39 | 191,350 | ||||
344,266 | MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33 | 354,383 | ||||
82,031 | MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35 | 82,449 | ||||
140,007 | MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32 | 140,729 | ||||
146,220 | PHHMC Trust, Series 2007-6, Class A1, 5.357%, 12/18/37(a) | 145,234 | ||||
139,739 | RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34 | 146,316 | ||||
118,284 | RBSGC Mortgage Loan Trust, Series 2007-B, Class 3A1, | 122,021 | ||||
288,212 | Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34 | 290,803 | ||||
131,247 | Structured Asset Securities Corp. Trust, Series 2005-6, Class 4A1, 5.000%, 5/25/35 | 133,088 | ||||
48,436 | Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35 | 49,431 | ||||
32,210 | Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35 | 32,872 | ||||
43,238 | Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22 | 43,960 | ||||
306,171 | Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35 | 312,833 | ||||
|
| |||||
Total Collateralized Mortgage Obligations | 8,476,522 | |||||
|
| |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — 18.3% | ||||||
70,000 | Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/1/46 | 72,239 | ||||
37,775 | Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43 | 37,777 | ||||
476,369 | BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b) | 472,527 | ||||
410,000 | Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T22, Class AJ, 5.795%, 4/1/38(a) | 417,288 | ||||
180,000 | COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/1/47 | 187,273 | ||||
100,000 | Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.230%, 12/10/49(a) | 106,263 | ||||
223,843 | Commercial Mortgage Trust, Series 2005-GG5, Class AM, 5.277%, 4/10/37(a) | 223,776 | ||||
500,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K048, Class A2, 3.284%, 6/1/25(a) | 523,079 | ||||
175,000 | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, | 192,845 | ||||
450,000 | GS Mortgage Securities Trust, Series 2010-C2, | 507,631 | ||||
370,000 | GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47 | 394,831 | ||||
216,000 | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47 | 231,288 |
Principal Amount | Fair Value | |||||
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||
$ 70,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/1/43(b) | $ 76,808 | ||||
300,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45 | 308,319 | ||||
500,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b) | 543,571 | ||||
375,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class AS, 4.043%, 7/15/47 | 393,383 | ||||
185,000 | LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.369%, 9/15/45(a) | 201,339 | ||||
100,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47 | 106,434 | ||||
145,000 | Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AM, 5.360%, 11/1/41 | 149,594 | ||||
400,000 | Morgan Stanley Capital I Trust, Series 2011-C2, Class A4, 4.661%, 6/1/44(b) | 444,023 | ||||
760,000 | Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class B, 5.276%, 11/15/43(a)(b) | 836,122 | ||||
100,000 | WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class C, 5.392%, 2/1/44(a)(b) | 108,273 | ||||
400,000 | WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b) | 439,125 | ||||
700,000 | WF-RBS Commercial Mortgage Trust, Series 2011-C4, Class A4, 4.902%, 6/1/44(a)(b) | 787,044 | ||||
529,000 | WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57 | 556,449 | ||||
164,000 | WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57 | 174,588 | ||||
|
| |||||
Total Commercial Mortgage-Backed Securities | 8,491,889 | |||||
|
| |||||
MORTGAGE-BACKED SECURITIES — 32.6% |
| |||||
Fannie Mae — 20.0% | ||||||
202,535 | 4.000%, 3/1/31, Pool #MA0667 | 218,335 | ||||
303,845 | 4.000%, 5/1/32, Pool #MA1074 | 327,443 | ||||
388,273 | 4.000%, 6/1/34, Pool #MA1922 | 418,493 | ||||
239,948 | 4.000%, 9/1/34, Pool #MA2019 | 258,549 | ||||
755,178 | 3.500%, 5/1/35, Pool #MA2260 | 795,396 | ||||
234,631 | 5.000%, 4/1/36, Pool #AB0111 | 259,687 | ||||
263,867 | 5.500%, 6/1/38, Pool #984277 | 295,514 | ||||
201,151 | 5.500%, 8/1/38, Pool #995072 | 227,043 | ||||
216,341 | 4.500%, 9/1/39, Pool #AC1830 | 235,168 | ||||
163,611 | 5.000%, 12/1/39, Pool #AC8518 | 180,346 | ||||
140,982 | 4.500%, 9/1/40, Pool #AE0411 | 154,474 | ||||
254,575 | 4.500%, 10/1/40, Pool #AE4855 | 275,952 | ||||
256,285 | 5.000%, 1/1/41, Pool #AH3373 | 283,759 | ||||
274,663 | 3.500%, 2/1/41, Pool #AH5646 | 288,749 | ||||
47,291 | 4.000%, 2/1/41, Pool #AH6188 | 50,756 | ||||
568,317 | 4.000%, 3/1/41, Pool #AH4008 | 607,559 | ||||
770,674 | 4.500%, 3/1/41, Pool #AB2467 | 851,829 | ||||
150,803 | 4.500%, 6/1/41, Pool #AC9298 | 163,902 | ||||
252,801 | 5.000%, 7/1/41, Pool #AI5595 | 279,867 | ||||
439,714 | 4.000%, 9/1/41, Pool #AJ1717 | 470,199 | ||||
432,454 | 3.500%, 6/1/42, Pool #AB5373 | 452,022 |
Continued
85
Sterling Capital Securitized Opportunities Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
MORTGAGE-BACKED SECURITIES — (continued) |
| |||||
Fannie Mae — (continued) | ||||||
$688,891 | 3.500%, 5/1/43, Pool #AB9368 | $ | 720,283 | |||
209,014 | 4.500%, 10/1/44, Pool #MA2066 | 227,184 | ||||
627,914 | 4.500%, 1/1/45, Pool #MA2158 | 682,824 | ||||
531,280 | 4.000%, 3/1/45, Pool #MA2217 | 567,444 | ||||
|
| |||||
9,292,777 | ||||||
|
| |||||
Freddie Mac — 11.1% | ||||||
745,662 | 3.500%, 5/1/32, Pool #C91458 | 789,291 | ||||
640,101 | 3.500%, 7/1/32, Pool #C91467 | 677,528 | ||||
240,079 | 4.000%, 11/1/32, Pool #G30616 | 258,645 | ||||
138,446 | 5.500%, 10/1/39, Pool #A89387 | 153,480 | ||||
190,275 | 5.000%, 4/1/40, Pool #A91812 | 210,303 | ||||
192,109 | 5.500%, 4/1/40, Pool #C03467 | 212,945 | ||||
188,871 | 5.000%, 8/1/40, Pool #C03491 | 208,219 | ||||
293,248 | 4.000%, 11/1/40, Pool #A94742 | 315,153 | ||||
306,959 | 4.000%, 12/1/40, Pool #A95447 | 329,935 | ||||
434,144 | 4.000%, 1/1/41, Pool #A96312 | 463,713 | ||||
277,361 | 3.500%, 3/1/42, Pool #G08479 | 289,832 | ||||
517,699 | 3.500%, 4/1/42, Pool #C03858 | 540,993 | ||||
661,436 | 3.500%, 8/1/42, Pool #Q10324 | 691,176 | ||||
|
| |||||
5,141,213 | ||||||
|
| |||||
Ginnie Mae — 1.5% | ||||||
231,496 | 4.500%, 6/15/39, Pool #720075 | 254,039 | ||||
34,264 | 4.000%, 12/20/40, Pool #755678 | 36,976 | ||||
161,457 | 4.500%, 3/20/41, Pool #4978 | 175,539 | ||||
228,170 | 4.500%, 5/15/41, Pool #738310 | 250,717 | ||||
|
| |||||
717,271 | ||||||
|
| |||||
Total Mortgage-Backed Securities (Cost $14,863,643) | 15,151,261 | |||||
|
|
Principal Amount | Fair Value | |||||
U.S. TREASURY NOTES — 0.8% |
| |||||
$402,548 | 0.375%, 7/15/25(c) | $ | 392,123 | |||
|
| |||||
Total U.S. Treasury Notes | 392,123 | |||||
|
| |||||
Shares | ||||||
MONEY MARKET FUND — 1.3% |
| |||||
605,716 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(d) | 605,716 | ||||
|
| |||||
Total Money Market Fund | 605,716 | |||||
|
| |||||
Total Investments — 99.9% | 46,376,562 | |||||
Net Other Assets (Liabilities) — 0.1% | 36,036 | |||||
|
| |||||
NET ASSETS — 100.0% | $ | 46,412,598 | ||||
|
|
(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 September 30, 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. |
See accompanying Notes to the Financial Statements.
86
Sterling Capital Kentucky Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — 95.4% |
| |||||
Kentucky — 95.4% | ||||||
$300,000 | Commonwealth of Kentucky, Certificate of Participation, Public Improvements, Callable 6/15/25 @ 100, 5.000%, 6/15/34 | $341,520 | ||||
400,000 | Eastern Kentucky University, Refunding Revenue, Series A, (State Intercept), 5.000%, 4/1/24 | 481,524 | ||||
500,000 | Fayette County, KY, School District Finance Corp., Lease Payable from Local Revenues, Series A, 5.000%, 10/1/21 | 587,930 | ||||
400,000 | Jefferson County, KY, School District Finance Corp., Jefferson County School Building, Refunding Revenue, Series A, (AGM), 5.250%, 1/1/19 | 453,580 | ||||
250,000 | Jefferson County, KY, School District Finance Corp., School Improvements Revenue, Series A, Callable 4/1/25 @ 100, 5.000%, 4/1/27 | 298,550 | ||||
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 | 615,473 | ||||
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 | 434,352 | ||||
500,000 | Kentucky Economic Development Finance Authority, Owensboro Medical Health System, Hospital Improvements Revenue, Series A, 5.000%, 6/1/16 | 514,940 | ||||
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 | 613,936 | ||||
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 | 541,425 | ||||
410,000 | Kentucky State Property & Buildings Commission, Project No. 76, Refunding Revenue, (AMBAC), 5.500%, 8/1/21 | 491,143 | ||||
460,000 | Kentucky State Property & Buildings Commission, Project No. 83, Refunding Revenue, (AMBAC), 5.000%, 10/1/19 | 524,239 | ||||
400,000 | Kentucky Turnpike Authority, Revitalization Projects, Refunding Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/25 | 451,128 | ||||
400,000 | Kentucky Turnpike Authority, Revitalization Projects, Revenue, Series A, 4.000%, 7/1/21 | 450,104 | ||||
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 | 494,656 | ||||
300,000 | Laurel County, KY, School District Finance Corp., Refunding Revenue, Callable 3/1/25 @ 100 (State Intercept), 4.000%, 6/1/25 | 335,643 | ||||
525,000 | Lexington-Fayette Urban County, KY, Airport Board, Refunding Revenue, Series A, 5.000%, 7/1/19 | 597,776 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Kentucky — (continued) | ||||||
$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 | $ 577,714 | ||||
500,000 | Louisville & Jefferson County, KY, Metropolitan Government, Refunding G.O., Series F, Callable 11/1/24 @ 100, 4.000%, 11/1/26 | 559,385 | ||||
500,000 | Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 11/15/21 @ 100, 5.000%, 5/15/30 | 578,415 | ||||
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 | 530,160 | ||||
540,000 | Owensboro, KY, Public Improvements G.O., Series A, 4.000%, 5/1/22 | 609,417 | ||||
535,000 | Owensboro, KY, Water Refunding & Improvements Revenue, Callable 9/15/18 @ 100, (Assured Guaranty), 5.250%, 9/15/21 | 597,723 | ||||
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 | 457,448 | ||||
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 | 309,830 | ||||
200,000 | Russell, KY, Bon Secours Health System, Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/26 | 224,588 | ||||
300,000 | University of Kentucky, Refunding Revenue, Series D (State Intercept), 5.250%, 10/1/20 | 355,695 | ||||
380,000 | Warren County, KY, Community Hospital Corp. Project, Refunding Revenue, Series A, 5.000%, 8/1/17 | 410,408 | ||||
|
| |||||
Total Municipal Bonds | 13,438,702 | |||||
|
| |||||
Shares | ||||||
MONEY MARKET FUND — 4.4% |
| |||||
623,771 | Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(a) | 623,771 | ||||
|
| |||||
Total Money Market Fund | 623,771 | |||||
|
| |||||
Total Investments — 99.8% | 14,062,473 | |||||
Net Other Assets (Liabilities) — 0.2% | 22,439 | |||||
|
| |||||
NET ASSETS — 100.0% | $14,084,912 | |||||
|
|
(a) | Represents the current yield as of report date. |
AGM — Assured Guaranty Municipal Corp.
AMBAC — American Municipal Bond Assurance Corp.
G.O. — General Obligation
OID — Original Issue Discount
See accompanying Notes to the Financial Statements.
87
Sterling Capital Maryland Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — 98.6% |
| |||||
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 | $ 656,673 | ||||
1,000,000 | Washington Metropolitan Area Transit Authority, DC, Transit Improvements Revenue, Refunding Notes, Series A, Callable 7/1/19 @ 100, 5.250%, 7/1/27 | 1,129,980 | ||||
|
| |||||
1,786,653 | ||||||
|
| |||||
Maryland — 93.7% | ||||||
1,000,000 | Anne Arundel County, MD, Consolidated Water & Sewer Utility Improvements G.O., 5.000%, 4/1/22 | 1,203,220 | ||||
810,000 | Anne Arundel County, MD, Economic Development, Anne Arundel Community College Project, Refunding Revenue, 4.000%, 9/1/20 | 896,597 | ||||
1,000,000 | Charles County, MD, Consolidated Public School Improvements G.O., 5.000%, 7/15/22 | 1,214,560 | ||||
890,000 | Charles County, MD, Consolidated Public School Improvements G.O., Callable 7/15/23 @ 100, 5.000%, 7/15/25 | 1,075,485 | ||||
1,000,000 | Howard County, MD, Consolidated Public Improvements, Series A, Refunding G.O., 5.000%, 2/15/20 | 1,163,060 | ||||
300,000 | Howard County, MD, Housing Commission, Columbia Commons Apartments, Local Multifamily Housing Revenue, Series A, 3.000%, 6/1/21 | 313,815 | ||||
275,000 | Howard County, MD, Housing Commission, General Capital Improvement Program, Local Multifamily Housing Revenue, 4.000%, 6/1/22 | 301,744 | ||||
125,000 | Howard County, MD, Miscellaneous Purpose Certificate of Participation, Series A, 8.050%, 2/15/21 | 167,310 | ||||
135,000 | Howard County, MD, Public Improvements Certificate of Participation, Series B, 8.250%, 2/15/20 | 173,711 | ||||
690,000 | Maryland Community Development Administration, Residential Single Family Housing Revenue, Series A, Callable 9/1/18 @ 100, 4.750%, 9/1/29 | 717,414 | ||||
250,000 | Maryland Economic Development Corp., Electricity Lights & Power Improvements, Refunding Revenue, Callable 3/1/19 @ 100, 6.200%, 9/1/22 | 289,547 | ||||
115,000 | Maryland Economic Development Corp., Lutheran World Relief Refugee, Refunding Revenue, Callable 4/1/17 @ 100, (Lutheran Center Corp.), 5.250%, 4/1/19 | 120,980 | ||||
975,000 | Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, 5.000%, 6/1/20 | 1,133,983 | ||||
420,000 | Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, Callable 6/1/21 @ 100, 5.000%, 6/1/26 | 486,620 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Maryland — (continued) | ||||||
$ 735,000 | Maryland Economic Development Corp., University of Maryland College Park Projects, Refunding Revenue (AGC), 5.000%, 6/1/16 | $ 754,147 | ||||
555,000 | Maryland Environmental Service, Mid Shore II Regional Landfill, Resource Recovery Improvements Revenue, 4.000%, 11/1/17 | 591,064 | ||||
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 | 1,092,510 | ||||
1,090,000 | Maryland Health & Higher Educational Facilities Authority, Carroll Hospital, Refunding Revenue, Series A, 5.000%, 7/1/19 | 1,218,522 | ||||
900,000 | Maryland Health & Higher Educational Facilities Authority, College of Notre Dame, Refunding Revenue, 4.000%, 10/1/19 | 965,493 | ||||
1,000,000 | Maryland Health & Higher Educational Facilities Authority, Frederick Memorial Hospital, Refunding Revenue, Series A, 5.000%, 7/1/22 | 1,146,070 | ||||
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 | 569,550 | ||||
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 | 1,168,290 | ||||
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 | 611,069 | ||||
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 | 1,108,960 | ||||
400,000 | Maryland Health & Higher Educational Facilities Authority, Meritus Medical Center Issue, Refunding Revenue, 5.000%, 7/1/22 | 456,040 | ||||
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 | 836,908 | ||||
400,000 | Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System, Refunding Revenue, 5.000%, 7/1/19 | 449,956 | ||||
1,160,000 | Maryland Stadium Authority, Refunding Revenue, 5.000%, 6/15/23 | 1,401,489 | ||||
500,000 | Maryland State Department of Transportation, Transit Improvements Revenue, Second Issue, Callable 9/1/18 @ 100, 5.000%, 9/1/23 | 558,415 |
Continued
88
Sterling Capital Maryland Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Maryland — (continued) | ||||||
$1,100,000 | Maryland State Transportation Authority, Grant & Revenue Anticipation, Highway Improvements Revenue, Callable 3/1/19 @ 100, OID, 5.000%, 3/1/20 | $1,235,960 | ||||
635,000 | Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, 5.000%, 7/1/19 | 725,792 | ||||
1,000,000 | Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/22 | 1,131,340 | ||||
500,000 | Montgomery County, MD, Department Liquor Control Public Improvements Revenue, Series A, Callable 4/1/21 @ 100, OID, 4.500%, 4/1/26 | 548,490 | ||||
1,000,000 | Montgomery County, MD, Public Transportation Equipment Transit Improvements Certificate of Participation, 4.000%, 5/1/17 | 1,051,100 | ||||
1,025,000 | Montgomery County, MD, Revenue Authority, Refunding Revenue, 5.000%, 5/1/22 | 1,215,281 | ||||
750,000 | Montgomery County, MD, Water Quality Public Improvements Revenue, Series A, Callable 4/1/20 @ 100, 5.000%, 4/1/30 | 856,943 | ||||
890,000 | Montgomery County, MD, West Germantown Development District, Refunding, Special Tax, 4.000%, 7/1/23 | 987,526 | ||||
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 | 1,152,910 | ||||
530,000 | Talbot County, MD, Public School Improvements G.O., 5.000%, 12/15/16 | 560,030 | ||||
1,140,000 | Washington County, MD, Refunding G.O., 4.000%, 1/1/21 | 1,288,348 |
Principal | 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 | $ 813,127 | ||||
500,000 | Washington Suburban Sanitary Commission, Water Supply G.O., Callable 6/1/17 @ 100, 4.000%, 6/1/20 | 525,610 | ||||
|
| |||||
34,278,986 | ||||||
|
| |||||
Total Municipal Bonds | 36,065,639 | |||||
|
| |||||
Shares | ||||||
MONEY MARKET FUND — 1.1% |
| |||||
412,638 | Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(a) | 412,638 | ||||
|
| |||||
Total Money Market Fund | 412,638 | |||||
|
| |||||
Total Investments — 99.7% | 36,478,277 | |||||
Net Other Assets (Liabilities) — 0.3% | 96,254 | |||||
|
| |||||
NET ASSETS — 100.0% | $36,574,531 | |||||
|
|
(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.
89
Sterling Capital North Carolina Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — 95.7% |
| |||||
North Carolina — 95.7% | ||||||
$2,335,000 | Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/24 | $2,738,021 | ||||
2,405,000 | Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 4.750%, 10/1/27 | 2,696,342 | ||||
1,000,000 | Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/24 | 1,166,870 | ||||
1,000,000 | Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/26 | 1,146,890 | ||||
1,000,000 | Broad River Water Authority, Water System Refunding Revenue, 5.000%, 6/1/24 | 1,203,460 | ||||
1,025,000 | Buncombe County Metropolitan Sewerage District, Sewer Improvements Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/39 | 1,169,023 | ||||
1,985,000 | Buncombe County, NC, Public Improvements Revenue, Series A, 4.000%, 6/1/17 | 2,097,212 | ||||
2,000,000 | Buncombe County, NC, Refunding Revenue, Limited Obligations, Series A, 5.000%, 6/1/20 | 2,326,120 | ||||
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 | 1,111,310 | ||||
1,960,000 | Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, 5.000%, 1/1/17 | 2,068,212 | ||||
1,685,000 | Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/20 | 1,907,117 | ||||
1,730,000 | Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/23 | 1,958,048 | ||||
1,240,000 | Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, 5.000%, 8/1/21 | 1,476,096 | ||||
1,475,000 | Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/26 | 1,720,145 | ||||
1,535,000 | Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/28 | 1,770,515 | ||||
1,160,000 | Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26 | 1,287,797 | ||||
1,030,000 | Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/31 | 1,137,357 | ||||
1,120,000 | Cary, NC, Combined Utility Systems, Refunding Revenue, Callable 12/1/25 @ 100, 4.000%, 12/1/29 | 1,251,858 | ||||
1,000,000 | Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/19 | 1,108,270 | ||||
1,000,000 | Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/20 | 1,119,920 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
North Carolina — (continued) | ||||||
$1,000,000 | Charlotte, NC, Charlotte Douglas International Airport Refunding Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/31 | $1,156,240 | ||||
1,000,000 | Charlotte, NC, Port, Airport & Marina Improvements Revenue, Series A, Callable 7/1/20 @ 100, 5.000%, 7/1/27 | 1,132,200 | ||||
1,280,000 | Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/20 | 1,320,768 | ||||
1,000,000 | Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/23 | 1,031,990 | ||||
1,000,000 | Charlotte, NC, Water & Sewer System, Refunding Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/25 | 1,158,970 | ||||
2,000,000 | Chatham County, NC, Refunding Revenue (County Guaranteed), 5.000%, 12/1/28 | 2,500,340 | ||||
2,000,000 | Concord, NC, Utilities Systems, Refunding Revenue, Series B, Callable 12/1/19 @ 100, 5.000%, 12/1/22 | 2,234,580 | ||||
1,000,000 | Durham Capital Financing Corp., Limited Obligation Refunding Revenue, 5.000%, 6/1/21 | 1,187,310 | ||||
1,410,000 | Durham County, NC, Industrial Facilities & Pollution Control Financing Authority, Research Triangle Institute, University & College Improvements Revenue, 5.000%, 2/1/20 | 1,605,398 | ||||
2,000,000 | Durham County, NC, Public Improvements Certificate of Participation, Series A, Callable 6/1/19 @ 100, 5.000%, 6/1/24 | 2,249,400 | ||||
1,000,000 | Durham, NC, Refunding G.O., 4.000%, 9/1/25 | 1,172,250 | ||||
1,750,000 | Fayetteville, NC, Public Works Commission, Electric Light & Power Improvements Revenue, Callable 3/1/24 @ 100, 4.000%, 3/1/27 | 1,950,060 | ||||
1,085,000 | Franklin County, NC, Public Facilities Projects, Certificate of Participation, Callable 9/1/17 @ 100 (NATL), 5.000%, 9/1/22 | 1,164,574 | ||||
1,030,000 | Henderson County, NC, University & College Improvements Revenue, Series B, 4.000%, 12/1/16 | 1,073,723 | ||||
1,010,000 | Holly Springs, NC, Public Improvements Revenue, Callable 10/1/24 @ 100, 5.000%, 10/1/27 | 1,210,848 | ||||
2,335,000 | Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/19 | 2,643,640 | ||||
2,125,000 | Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/20 | 2,463,343 | ||||
2,470,000 | Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/21 | 2,923,121 | ||||
4,000,000 | Johnston County, NC, Refunding G.O., 4.000%, 2/1/26 | 4,572,440 | ||||
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 | 1,062,570 | ||||
1,570,000 | Lenoir County, NC, Refunding G.O., 4.000%, 2/1/19 | 1,721,756 | ||||
1,705,000 | Lenoir County, NC, Refunding G.O., 4.000%, 2/1/20 | 1,897,801 |
Continued
90
Sterling Capital North Carolina Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
North Carolina — (continued) | ||||||
$1,750,000 | Lincoln County, NC, Refunding G.O., Series A, 5.000%, 6/1/18 | $1,944,373 | ||||
2,535,000 | Lincoln County, NC, Refunding G.O., Series A, 4.000%, 6/1/19 | 2,799,907 | ||||
2,000,000 | Mecklenburg County, NC, Refunding G.O., 5.000%, 2/1/21 | 2,373,780 | ||||
1,280,000 | Monroe, NC, Combined Enterprise System, Refunding Revenue (AGM), 4.000%, 3/1/19 | 1,399,590 | ||||
1,855,000 | New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/19 | 2,139,687 | ||||
1,015,000 | New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/20 | 1,193,711 | ||||
1,270,000 | New Hanover County, NC, New Hanover Regional Medical, Refunding Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23 | 1,452,232 | ||||
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 | 1,135,900 | ||||
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 | 1,185,713 | ||||
1,305,000 | North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, 5.000%, 4/1/21 | 1,513,252 | ||||
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 | 1,175,690 | ||||
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 | 1,211,820 | ||||
1,915,000 | North Carolina Eastern Municipal Power Agency, Electric, Lights & Power Improvements Revenue, Series A, OID, 6.400%, 1/1/21 | 2,186,068 | ||||
1,000,000 | North Carolina Eastern Municipal Power Agency, Refunding Revenue, Series A, Callable 1/1/16 @ 100 (AMBAC), 5.250%, 1/1/20 | 1,012,800 | ||||
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 | 1,098,173 | ||||
1,500,000 | North Carolina Medical Care Commission, Firsthealth Carolina, Refunding Revenue, Series C, OID, 4.000%, 10/1/18 | 1,626,735 | ||||
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 | 5,690,850 | ||||
915,000 | North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.000%, 7/1/19 | 1,006,765 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
North Carolina — (continued) | ||||||
$1,180,000 | North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.375%, 7/1/20 | $1,331,665 | ||||
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 | 1,073,100 | ||||
3,030,000 | North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, 5.000%, 6/1/20 | 3,471,834 | ||||
1,530,000 | North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, Callable 6/1/20 @ 100, 5.250%, 6/1/29 | 1,719,322 | ||||
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 | 3,178,096 | ||||
1,260,000 | North Carolina Medical Care Commission, Wakemed Refunding Revenue, Series A, 5.000%, 10/1/22 | 1,468,026 | ||||
2,000,000 | North Carolina Medical Care Commission, Wakemed, Refunding Revenue, Series A, Callable 10/1/22 @ 100, 5.000%, 10/1/27 | 2,251,620 | ||||
2,000,000 | North Carolina State University at Raleigh, Refunding Revenue, Series A, Callable 10/1/23 @ 100, 5.000%, 10/1/28 | 2,366,180 | ||||
4,550,000 | North Carolina State, Public Improvements, Revenue, Series C, Callable 5/1/21 @ 100, 4.000%, 5/1/23 | 5,023,701 | ||||
2,380,000 | North Carolina State, Refunding G.O., Series B, 5.000%, 4/1/17 | 2,541,840 | ||||
1,250,000 | Onslow County, NC, Refunding G.O., 5.000%, 12/1/21 | 1,487,963 | ||||
1,520,000 | Onslow Water & Sewer Authority, Water Utility Improvements Revenue, Series B, Callable 11/9/15 @ 100 (XLCA), 5.000%, 6/1/21 | 1,526,034 | ||||
1,365,000 | Orange County, NC, Public Facilities Co., Public Improvements, Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23 | 1,628,117 | ||||
1,105,000 | Pasquotank County, NC, Refunding Certificate of Participation (NATL), 5.250%, 6/1/18 | 1,212,804 | ||||
1,000,000 | Pasquotank County, NC, Refunding Certificate of Participation (NATL), 5.250%, 6/1/19 | 1,124,850 | ||||
1,210,000 | Pender County, NC, Limited Obligation Refunding Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/26 | 1,411,792 | ||||
1,390,000 | Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/24 | 1,623,701 | ||||
1,395,000 | Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/25 | 1,618,339 | ||||
2,160,000 | Raleigh Durham Airport Authority, Refunding Revenue, Series B1, Callable 5/1/20 @ 100, 5.000%, 11/1/28 | 2,444,969 | ||||
1,500,000 | Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/27 | 1,783,815 |
Continued
91
Sterling Capital North Carolina Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
North Carolina — (continued) | ||||||
$1,615,000 | Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/28 | $1,908,833 | ||||
1,070,000 | Raleigh, NC, Public Improvements, Revenue, Series A, Callable 10/1/24 @ 100, 4.000%, 10/1/31 | 1,139,946 | ||||
1,560,000 | Rockingham County, NC, Public Improvements Certificate of Participation (Assured Guaranty), 5.000%, 4/1/17 | 1,664,614 | ||||
1,510,000 | Rockingham County, NC, Refunding Revenue, 5.000%, 4/1/18 | 1,663,869 | ||||
1,985,000 | Sampson County, NC, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26 | 2,389,861 | ||||
1,000,000 | Union County, NC, Enterprise Systems, Refunding Revenue, Series A, Callable 12/1/21 @ 100, 4.000%, 12/1/22 | 1,135,550 | ||||
2,205,000 | Union County, NC, Refunding G.O., Series A, 5.000%, 3/1/22 | 2,656,981 | ||||
1,000,000 | Union County, NC, Refunding Revenue, 5.000%, 12/1/23 | 1,219,910 | ||||
2,285,000 | University of North Carolina at Greensboro, Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/23 | 2,651,240 | ||||
1,695,000 | University of North Carolina at Greensboro, University & College Improvements Revenue, Callable 4/1/24 @ 100, 5.000%, 4/1/28 | 2,004,253 | ||||
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 | 3,821,046 | ||||
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 | 3,661,818 | ||||
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 | 1,734,005 | ||||
1,975,000 | University of North Carolina System, The University of North Carolina at Greensboro, Refunding Revenue, Series B2, 5.000%, 4/1/17 | 2,104,047 | ||||
1,000,000 | University of North Carolina System, University & College Improvements, General Trust Indenture Revenue, Series C, 4.500%, 10/1/17 | 1,067,670 | ||||
250,000 | University of North Carolina System, University & College Improvements, Prerefunded Revenue, Series A, Callable 10/1/16 @ 100, (NATL-RE), 5.000%, 10/1/17 | 261,665 | ||||
525,000 | University of North Carolina System, University & College Improvements, Unrefunded Revenue, Series A, Callable 10/1/16 @ 100, (NATL-RE), 5.000%, 10/1/17 | 548,200 | ||||
2,125,000 | Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/24 | 2,481,044 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
North Carolina — (continued) | ||||||
$1,000,000 | Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/26 | $ 1,150,970 | ||||
1,000,000 | Winston-Salem State University Foundation LLC, Refunding Revenue, Callable 4/1/22 @ 100, 5.000%, 4/1/25 | 1,120,980 | ||||
1,000,000 | Winston-Salem, NC, Transit Improvements, Refunding Revenue, Series C, Callable 6/1/24 @ 100, 5.000%, 6/1/30 | 1,168,270 | ||||
1,165,000 | Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, 5.000%, 6/1/24 | 1,444,681 | ||||
1,000,000 | Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/17 @ 100, 5.000%, 6/1/19 | 1,072,250 | ||||
1,875,000 | Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/25 | 2,311,013 | ||||
1,000,000 | Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/28 | 1,206,140 | ||||
|
| |||||
Total Municipal Bonds | 187,917,575 | |||||
|
| |||||
Shares | ||||||
MONEY MARKET FUND — 3.0% | ||||||
5,963,766 | Federated North Carolina Municipal Cash Trust, Institutional Shares, 0.010%(a) | 5,963,766 | ||||
|
| |||||
Total Money Market Fund | 5,963,766 | |||||
|
| |||||
Total Investments — 98.7% | 193,881,341 | |||||
Net Other Assets (Liabilities) — 1.3% | 2,457,071 | |||||
|
| |||||
NET ASSETS — 100.0% | $196,338,412 | |||||
|
|
(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.
92
Sterling Capital South Carolina Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — 97.6% |
| |||||
South Carolina — 97.6% | ||||||
$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 | $1,826,878 | ||||
1,000,000 | Anderson Regional Joint Water System, Refunding Revenue, Series A, Callable 7/15/21 @ 100, 5.000%, 7/15/25 | 1,139,290 | ||||
1,095,000 | Anderson, SC, Water & Sewer, Refunding Revenue (AGM), 5.000%, 7/1/19 | 1,245,497 | ||||
1,000,000 | Beaufort County, SC, School District, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/22 | 1,199,110 | ||||
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 | 1,064,030 | ||||
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 | 1,202,400 | ||||
1,000,000 | Charleston County, SC, Port, Airport & Marina Improvements Revenue, 5.000%, 12/1/22 | 1,198,370 | ||||
2,500,000 | Charleston Educational Excellence Finance Corp., Charleston County School Refunding Revenue, 5.000%, 12/1/21 | 2,977,000 | ||||
1,910,000 | Clover School District No. 2, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/18 | 2,104,438 | ||||
1,355,000 | Coastal Carolina University, University & College Improvements Revenue, Callable 6/1/24 @ 100, 5.000%, 6/1/34 | 1,539,415 | ||||
1,295,000 | College of Charleston, University & College Improvements Refunding Revenue, Series A, Callable 4/1/21 @ 100, 5.000%, 4/1/25 | 1,477,297 | ||||
1,000,000 | College of Charleston, University & College Improvements Revenue, Series A, Callable 4/1/24 @ 100, 5.000%, 4/1/25 | 1,193,410 | ||||
1,095,000 | Columbia, SC, Recreational Facilities Improvements Revenue, Callable 2/1/24 @ 100, 4.000%, 2/1/31 | 1,154,513 | ||||
1,170,000 | Easley Combined Utility System, Refunding Revenue, Callable 12/1/19 @ 100 (Assured Guaranty), 5.000%, 12/1/24 | 1,336,713 | ||||
1,135,000 | East Richland County Public Service District, Refunding Revenue, 4.000%, 1/1/22 | 1,280,586 | ||||
600,000 | Educational Facilities Authority, Wofford College, University & College Improvements Revenue, Series B, 2.000%, 4/1/27(a) | 601,686 | ||||
1,000,000 | Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/28 | 1,151,990 | ||||
1,100,000 | Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/33 | 1,229,261 | ||||
1,895,000 | Florence County, SC, Public Improvements, G.O., (State Aid Withholding), 4.000%, 6/1/20 | 2,124,068 | ||||
1,000,000 | Greenville County, SC, School District Building Refunding Revenue, 5.000%, 12/1/22 | 1,198,860 | ||||
1,075,000 | Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, 5.000%, 12/1/22 | 1,130,416 | ||||
570,000 | Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, OID, 4.250%, 12/1/21 | 594,134 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
South Carolina — (continued) | ||||||
$1,340,000 | Greenville Health System, Hospital System Board, Refunding Revenue, 5.000%, 5/1/21 | $1,557,147 | ||||
1,000,000 | Greenville Health System, Hospital System Board, Refunding Revenue, Callable 5/1/22 @ 100, 5.000%, 5/1/31 | 1,116,800 | ||||
1,000,000 | Greenwood County, SC, Self Regional Healthcare Refunding Revenue, Series B, Callable 4/1/22 @ 100, 5.000%, 10/1/24 | 1,138,240 | ||||
530,000 | Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 5.000%, 10/1/23 | 594,183 | ||||
1,175,000 | Greenwood, SC, Combined Public Utility Revenue, Series A, 4.000%, 12/1/18 | 1,276,226 | ||||
1,000,000 | Horry County, SC, School District, Refunding, G.O., Series B (SCSDE), 5.000%, 3/1/23 | 1,211,300 | ||||
500,000 | Kershaw County, SC, Kershaw County School District Project, Refunding Revenue (AGC), 5.000%, 12/1/16 | 525,845 | ||||
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 | 1,748,102 | ||||
645,000 | Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/19 | 698,329 | ||||
1,000,000 | Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/23 | 1,077,490 | ||||
785,000 | Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/21 @ 100, 5.000%, 11/1/22 | 920,106 | ||||
1,000,000 | Lexington County, SC, School District No. 1, G.O., Series C (SCSDE), 5.000%, 2/1/21 | 1,178,940 | ||||
1,000,000 | Lexington One School Facilities Corp., Lexington County School District No. 1 Revenue, 5.000%, 12/1/16 | 1,054,010 | ||||
940,000 | Lexington, SC, Combined Waterworks & Sewer System Refunding Revenue, Callable 4/1/21 @100, 5.000%, 4/1/22 | 1,086,941 | ||||
1,000,000 | Lugoff-Elgin Water Authority, Refunding Revenue, Series B, Callable 7/1/26 @ 100, 5.000%, 7/1/30 | 1,181,600 | ||||
1,460,000 | Newberry, SC, Refunding Revenue (AGM), 5.000%, 4/1/24 | 1,722,114 | ||||
720,000 | Oconee County, SC, Duke Power Co. Project Refunding Revenue, 3.600%, 2/1/17 | 747,230 | ||||
810,000 | Orangeburg County, SC, School District No. 5, Refunding G.O. (SCSDE), 5.000%, 3/1/21 | 951,766 | ||||
550,000 | Piedmont Municipal Power Agency, Power System Refunding Revenue, Series A3 (Assured Guaranty), 5.000%, 1/1/18 | 600,171 | ||||
1,000,000 | Piedmont Municipal Power Agency, Power System Refunding Revenue, Series B, Callable 1/1/22 @ 100, 4.000%, 1/1/23 | 1,106,440 | ||||
330,000 | Piedmont Municipal Power Agency, Power System, Prerefunded, Refunding Revenue (NATL), OID, 5.375%, 1/1/25 | 364,927 | ||||
1,000,000 | Renewable Water Resources Sewage System, Refunding Revenue, 4.000%, 1/1/20 | 1,108,280 |
Continued
93
Sterling Capital South Carolina Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
South Carolina — (continued) | ||||||
$1,000,000 | Rock Hill, SC, Combined Utility System, Refunding Revenue, Series A, Callable 1/1/22 @100 (AGM), 5.000%, 1/1/23 | $1,166,300 | ||||
1,000,000 | Rock Hill, SC, Hospital Fee Pledge, Refunding Revenue, Callable 4/1/23 @100, 5.000%, 4/1/33 | 1,110,060 | ||||
1,090,000 | Rock Hill, SC, Ltd. Obligations, Hospitality Fee Pledge, Refunding Revenue, 5.000%, 4/1/21 | 1,264,553 | ||||
1,500,000 | SCAGO Educational Facilities Corp. for Cherokee School District No. 1, Refunding Revenue, 5.000%, 12/1/24 | 1,784,760 | ||||
1,135,000 | SCAGO Educational Facilities Corp. for Colleton School District, Refunding Revenue, 5.000%, 12/1/20 | 1,303,196 | ||||
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 | 868,907 | ||||
790,000 | SCAGO Educational Facilities Corp. for Union School District, Refunding Revenue, 5.000%, 12/1/21 | 914,251 | ||||
500,000 | SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/18 | 558,265 | ||||
500,000 | SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/19 | 566,880 | ||||
550,000 | South Carolina Jobs-Economic Development Authority, AnMed Health Project, Refunding & Improvement Revenue, Series B (Assured Guaranty), 5.000%, 2/1/19 | 611,413 | ||||
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 | 1,145,550 | ||||
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 | 1,702,215 | ||||
580,000 | South Carolina Jobs-Economic Development Authority, Furman University, Refunding Revenue, 5.000%, 10/1/24 | 702,096 | ||||
500,000 | South Carolina Jobs-Economic Development Authority, Palmetto Health Facilities, Refunding Revenue, Series A (AGM), 5.000%, 8/1/19 | 556,870 | ||||
500,000 | South Carolina Jobs-Economic Development Authority, Palmetto Health, Refunding & Improvement Facilities Revenue, OID, 5.000%, 8/1/18 | 545,605 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
South Carolina — (continued) | ||||||
$1,150,000 | South Carolina Ports Authority, Port, Airport & Marina Improvements Revenue, 5.000%, 7/1/19 | $ 1,303,077 | ||||
1,030,000 | South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/27 | 1,132,969 | ||||
1,015,000 | South Carolina State Public Service Authority, Refunding Revenue, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/32 | 1,112,755 | ||||
1,225,000 | South Carolina State Public Service Authority, Refunding Revenue, Series B, Callable 1/1/16 @ 100 (NATL), 5.000%, 1/1/22 | 1,239,945 | ||||
600,000 | Spartanburg Regional Health Services District, Refunding Revenue, Series A, Callable 4/15/18 @ 100 (Assured Guaranty), 5.250%, 4/15/21 | 656,736 | ||||
830,000 | Three Rivers Solid Waste Authority, Solid Waste Disposal Facilities, Refunding Revenue, 4.500%, 12/15/16 | 865,424 | ||||
500,000 | University of South Carolina, Refunding Revenue, Series A, Callable 5/1/20 @ 100, 5.000%, 5/1/28 | 565,965 | ||||
|
| |||||
Total Municipal Bonds | 74,613,341 | |||||
|
| |||||
Shares | ||||||
MONEY MARKET FUND — 2.5% |
| |||||
1,922,364 | Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(b) | 1,922,364 | ||||
|
| |||||
Total Money Market Fund | 1,922,364 | |||||
|
| |||||
Total Investments — 100.1% | 76,535,705 | |||||
Net Other Assets (Liabilities) — (0.1)% | (85,374 | ) | ||||
|
| |||||
NET ASSETS — 100.0% | $76,450,331 | |||||
|
|
(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 September 30, 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
SCAGO — South Carolina Association of Governmental Organizations
SCSDE — South Carolina School District Enhancement
See accompanying Notes to the Financial Statements.
94
Sterling Capital Virginia Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — 99.6% |
| |||||
District of Columbia — 1.8% | ||||||
$1,160,000 | Metropolitan Washington Airports Authority, Port, Airport & Marina Improvement Revenue, Series A, Callable 10/1/20 @ 100, 5.000%, 10/1/23 | $1,340,426 | ||||
625,000 | Metropolitan Washington Airports Authority, Refunding Revenue, Series B, Callable 10/1/19 @ 100, 5.000%, 10/1/21 | 709,300 | ||||
|
| |||||
2,049,726 | ||||||
|
| |||||
Virginia — 97.8% | ||||||
1,000,000 | Albemarle County, VA, Economic Development Authority, Albemarle County Project, Public Improvements Revenue, 5.000%, 6/1/21 | 1,183,130 | ||||
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 | 2,043,043 | ||||
2,760,000 | Albemarle County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/20 | 3,210,046 | ||||
1,000,000 | Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21 | 1,193,750 | ||||
1,000,000 | Arlington County, VA, Industrial Development Authority, VA Hospital Center Arlington, Refunding Revenue, 5.000%, 7/1/18 | 1,100,570 | ||||
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 | 1,239,535 | ||||
1,145,000 | Culpeper County, VA, Economic Development Authority, VA Capital Projects, Refunding Revenue, Callable 6/1/24 @ 100, 4.000%, 6/1/26 | 1,274,729 | ||||
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 | 1,622,699 | ||||
1,875,000 | Fairfax County, VA, Economic Development Authority, Goodwin House Inc., Refunding Revenue, Callable 10/1/17 @ 100, 5.000%, 10/1/27 | 1,961,981 | ||||
2,500,000 | Fairfax County, VA, Economic Development Authority, Laurel Hill Public Facilities Project, Refunding Revenue, Series A, 5.000%, 6/1/22 | 2,983,425 | ||||
1,000,000 | Fairfax County, VA, Industrial Development Authority, Inova Health System Project, Refunding Revenue, (AGM-CR), OID, 5.250%, 8/15/19 | 1,091,780 | ||||
595,000 | Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project, Refunding Revenue, Series C, 5.000%, 5/15/18 | 658,570 | ||||
2,160,000 | Fairfax County, VA, Sewer Improvements Revenue, Callable 7/15/21 @ 100, 5.000%, 7/15/22 | 2,565,907 | ||||
1,000,000 | Fredericksburg Economic Development Authority, Mary Washington Healthcare Obligation Group, Refunding Revenue, Callable 6/15/24 @ 100, 5.000%, 6/15/26 | 1,131,250 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Virginia — (continued) | ||||||
$1,000,000 | Hampton, VA, Public Improvements, Refunding G.O., Series A, Callable 1/15/19 @100, 5.000%, 1/15/21 | $1,123,790 | ||||
1,700,000 | Leesburg, VA, Refunding G.O., Callable 1/15/24 @ 100, (State Aid Withholding), 4.000%, 1/15/27 | 1,900,447 | ||||
1,000,000 | Leesburg, VA, Refunding G.O., Callable 1/15/25 @ 100, (State Aid Withholding), 5.000%, 1/15/27 | 1,222,670 | ||||
1,000,000 | Loudoun County, VA, Economic Development Authority, Public Improvements Revenue, Callable 12/1/24 @ 100, 5.000%, 12/1/27 | 1,190,450 | ||||
1,665,000 | Loudoun County, VA, Industrial Development Authority, Refunding Revenue, 4.000%, 12/15/22 | 1,915,566 | ||||
1,020,000 | Loudoun County, VA, Public Improvements G.O., Series B, (State Aid Withholding), 5.000%, 12/1/16 | 1,075,692 | ||||
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 | 1,666,511 | ||||
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 | 2,864,621 | ||||
1,315,000 | Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, 5.000%, 2/1/18 | 1,441,306 | ||||
1,445,000 | Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, Callable 2/1/18 @ 100, 5.000%, 2/1/24 | 1,562,059 | ||||
2,000,000 | Newport News, VA, General Water Improvements, Refunding G.O., Series A, 4.000%, 7/15/20 | 2,249,240 | ||||
1,000,000 | Newport News, VA, General Water Improvements, Refunding G.O., Series B, 5.250%, 7/1/21 | 1,205,040 | ||||
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 | 1,120,020 | ||||
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 | 1,157,060 | ||||
1,000,000 | Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/24 | 1,169,060 | ||||
1,465,000 | Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/36 | 1,636,874 | ||||
1,000,000 | Norfolk, VA, Water Utility Improvements Revenue, Callable 11/1/18 @ 100, 5.000%, 11/1/23 | 1,126,120 | ||||
1,000,000 | Pittsylvania County, VA, School Improvements G.O., Series B, 5.000%, 2/1/19 | 1,132,180 |
Continued
95
Sterling Capital Virginia Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Virginia — (continued) | ||||||
$1,320,000 | Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.200%, 2/1/20 | $1,504,602 | ||||
1,775,000 | Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.375%, 2/1/21 | 2,033,422 | ||||
1,160,000 | Poquoson, VA, Refunding G.O., (State Aid Withholding), 5.000%, 2/15/21 | 1,369,809 | ||||
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 | 2,001,461 | ||||
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 | 1,569,476 | ||||
1,440,000 | Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23 | 1,638,274 | ||||
1,055,000 | Portsmouth, VA, Refunding G.O., Series D, Callable 7/15/20 @ 100, 5.000%, 7/15/21 | 1,223,895 | ||||
1,150,000 | Prince William County, VA, County Facilities, Refunding Certificate of Participation, 5.000%, 10/1/21 | 1,360,117 | ||||
1,245,000 | Rappahannock Regional Jail Authority, Refunding Revenue, Callable 10/1/2025 @ 100, 5.000%, 10/1/26 | 1,513,422 | ||||
1,520,000 | Richmond Metropolitan Transportation Authority (The), Expressway, Refunding Revenue, (NATL), 5.250%, 7/15/16 | 1,574,735 | ||||
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 | 2,380,820 | ||||
2,195,000 | Riverside Regional Jail Authority, Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/27 | 2,635,712 | ||||
1,000,000 | Riverside Regional Jail Authority, Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/30 | 1,173,530 | ||||
1,760,000 | Riverside, VA, Regional Jail Authority, Refunding Revenue, 5.000%, 7/1/22 | 2,092,570 | ||||
1,415,000 | Roanoke, VA, Economic Development Authority, Carillion Health System, Remarketing, Refunding Revenue, Series C, (AGM), 5.000%, 7/1/17 | 1,517,446 | ||||
885,000 | Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/20 | 978,527 | ||||
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 | 1,097,000 | ||||
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 | 1,760,035 | ||||
1,220,000 | Spotsylvania County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/22 | 1,456,753 | ||||
1,420,000 | Spotsylvania County, VA, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/28 | 1,606,886 | ||||
2,425,000 | Suffolk, VA, Public Improvements, Refunding G.O., Series A, (NATL), 5.000%, 2/1/17 | 2,572,391 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
Virginia — (continued) | ||||||
$ 465,000 | Suffolk, VA, Unrefunded, Refunding G.O., Callable 12/1/15 @ 100, 5.000%, 12/1/18 | $ 468,836 | ||||
1,100,000 | Virginia Biotechnology Research Partnership Authority, Constructions Laboratories Project, Refunding Revenue, 5.000%, 9/1/19 | 1,259,841 | ||||
2,500,000 | Virginia College Building Authority, 21st Century College & Equipment, University & College Improvements Revenue, Series A, 5.000%, 2/1/22 | 2,980,925 | ||||
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 | 927,235 | ||||
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 | 1,974,088 | ||||
1,000,000 | Virginia College Building Authority, Educational Refunding Revenue, Series A, (State Intercept), 5.000%, 9/1/19 | 1,147,380 | ||||
1,805,000 | Virginia College Building Authority, Public Higher Education Financing Program, Refunding Revenue, Series B, (State Intercept), 5.000%, 9/1/20 | 2,113,113 | ||||
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 | 2,221,591 | ||||
1,500,000 | Virginia Port Authority Commonwealth Port Fund, Port, Airport & Marina Improvements Revenue, Callable 7/1/20 @ 100, 5.000%, 7/1/28 | 1,727,295 | ||||
2,000,000 | Virginia Public Building Authority, Public Improvements Revenue, Series A, Callable 8/1/21 @ 100, 5.000%, 8/1/26 | 2,327,020 | ||||
2,000,000 | Virginia Public School Authority, Refunding Revenue, (State Aid Withholding), 5.000%, 8/1/20 | 2,349,580 | ||||
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 | 1,079,060 | ||||
1,150,000 | Virginia Resources Authority, State Revolving Fund, Refunding Revenue, 5.500%, 10/1/17 | 1,262,010 | ||||
1,835,000 | Virginia Small Business Financing Authority, Sentara Healthcare Refunding Revenue, 4.000%, 11/1/16 | 1,904,877 | ||||
1,255,000 | Western Regional Jail Authority, Correctional Facilities Improvement Revenue, Callable 6/1/17 @ 100, (NATL-RE), 4.750%, 6/1/23 | 1,342,135 | ||||
1,525,000 | Western Regional Jail Authority, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26 | 1,855,605 | ||||
700,000 | Winchester, VA, Economic Development Authority, Valley Health System Obligated Group, Hospital Refunding Revenue, 5.000%, 1/1/22 | 815,227 |
Continued
96
Sterling Capital Virginia Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | 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 | $ 1,065,240 | ||||
|
| |||||
113,901,062 | ||||||
|
| |||||
Total Municipal Bonds | 115,950,788 | |||||
|
|
Shares | Fair Value | |||||
MONEY MARKET FUND — 0.8% | ||||||
971,872 | Federated Virginia Municipal Money Market Portfolio, Institutional Shares, 0.010%(a) | $ | 971,872 | |||
|
| |||||
Total Money Market Fund | 971,872 | |||||
|
| |||||
Total Investments — 100.4% | 116,922,660 | |||||
Net Other Assets (Liabilities) — (0.4)% | (500,239 | ) | ||||
|
| |||||
NET ASSETS — 100.0% | $ | 116,422,421 | ||||
|
|
(a) | 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.
97
Sterling Capital West Virginia Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Principal Amount | Fair Value | |||||
|
|
| ||||
MUNICIPAL BONDS — 97.7% |
| |||||
$1,060,000 | Berkeley County, WV, Building Commission, Judicial Center Project, Refunding Revenue, Callable 9/1/21 @ 100, 4.500%, 9/1/23 | $1,180,066 | ||||
1,085,000 | Berkeley County, WV, Building Commission, Lease Refunding Revenue, Callable 12/1/22 @ 100, 4.000%, 12/1/26 | 1,171,572 | ||||
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 | 1,643,370 | ||||
875,000 | Berkeley County, WV, Public Service Sewer District, Sewer Improvements Revenue, Series A, Callable 11/9/15 @ 100, 5.000%, 3/1/22 | 877,975 | ||||
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 | 734,240 | ||||
1,215,000 | Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, 4.000%, 6/1/19 | 1,329,720 | ||||
1,005,000 | Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series A, Callable 6/1/21 @ 100, 5.000%, 6/1/23 | 1,144,906 | ||||
1,495,000 | Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, Callable 6/1/21 @ 100, 5.000%, 6/1/23 | 1,703,119 | ||||
1,100,000 | Fairmont, WV, Waterworks Refunding Revenue, Series D, Callable 7/1/19 @100, (AGM), 4.000%, 7/1/24 | 1,161,358 | ||||
2,150,000 | Greenbrier County, WV, Board of Education, Public School Improvements G.O., (AGM), 5.000%, 5/1/18 | 2,381,254 | ||||
1,605,000 | Jefferson County, WV, Board of Education Public School, Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/19 | 1,758,743 | ||||
1,700,000 | Marshall University, WV, Refunding Revenue, 5.000%, 5/1/19 | 1,922,462 | ||||
1,390,000 | Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/26 | 1,592,231 | ||||
1,560,000 | Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/27 | 1,786,964 | ||||
1,000,000 | Mason County, WV, Appalachian Power Co., Industrial Improvements Revenue, Series L, 1.625%, 10/1/22(a) | 998,100 | ||||
1,545,000 | Monongalia County, WV, Board of Education, Public School Refunding G.O., (West Virginia Board Commission), 5.000%, 5/1/20 | 1,786,530 | ||||
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 | 1,179,540 | ||||
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 | 765,038 |
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 | $1,086,908 | ||||
405,000 | Monongalia County, WV, Building Commission Justice Center, Public Improvements Revenue, Series A, Callable 2/1/21 @ 100, 4.000%, 2/1/22 | 443,370 | ||||
815,000 | Monongalia County, WV, Building Commission, Health System Obligated Group Refunding Revenue, Callable 7/1/21 @ 100, OID, 6.250%, 7/1/31 | 952,075 | ||||
2,000,000 | Monongalia County, WV, Building Commission, Monongalia Health System Group Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/26 | 2,321,320 | ||||
390,000 | Ohio County, WV, County Commission, Fort Henry Centre Financing District, Public Improvement, Tax Allocation, Series A, 5.350%, 6/1/17 | 404,360 | ||||
1,000,000 | Parkersburg, WV, Combined Waterworks & Sewerage System, Refunding Revenue, Series A, Callable 8/1/21 @ 100, (BAM), 4.000%, 8/1/22 | 1,099,940 | ||||
860,000 | Pleasants County, WV, Board of Education, Public School Improvements G.O., 4.000%, 5/1/21 | 962,091 | ||||
295,000 | Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/22 | 325,984 | ||||
1,210,000 | Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/23 | 1,325,240 | ||||
1,165,000 | Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/24 | 1,265,283 | ||||
1,000,000 | Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 3.000%, 5/1/19 | 1,066,520 | ||||
1,655,000 | Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 4.000%, 5/1/21 | 1,867,452 | ||||
1,285,000 | Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, 5.000%, 5/1/22 | 1,456,715 | ||||
1,365,000 | Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, Callable 5/1/22 @ 100, 5.000%, 5/1/27 | 1,510,700 | ||||
2,005,000 | Putnam County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 5/1/19 | 2,211,655 | ||||
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 | 1,097,660 | ||||
1,855,000 | School Building Authority of West Virginia, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100 (NATL), 5.000%, 7/1/18 | 1,995,999 |
Continued
98
Sterling Capital West Virginia Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
$1,650,000 | School Building Authority of West Virginia, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100 (NATL), 5.000%, 7/1/19 | $1,774,641 | ||||
3,700,000 | School Building Authority of West Virginia, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100 (NATL), 5.000%, 7/1/20 | 3,971,987 | ||||
500,000 | School Building Authority of West Virginia, Lottery Capital Improvements Revenue, Callable 7/1/24 @ 100, Series A, 5.000%, 7/1/27 | 592,095 | ||||
1,265,000 | School Building Authority of West Virginia, Lottery Capital Improvements Revenue, Callable 7/1/24 @ 100, Series A, 5.000%, 7/1/28 | 1,488,260 | ||||
1,050,000 | School Building Authority of West Virginia, School Improvements Revenue, Callable 7/1/18 @ 100, OID, 5.000%, 7/1/27 | 1,149,655 | ||||
1,840,000 | School Building Authority of West Virginia, School Improvements Revenue, Callable 7/1/18 @100, 5.250%, 7/1/21 | 2,038,076 | ||||
1,000,000 | School Building Authority of West Virginia, School Improvements Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/30 | 1,137,050 | ||||
1,400,000 | Shepherd University Board of Governors, Residence Facilities Projects, University & College Improvements, Revenue, Callable 10/26/15 @ 100 (NATL), 5.000%, 6/1/25 | 1,405,558 | ||||
500,000 | West Virginia Economic Development Authority, Appalachian Power Co. Amos Plant Project, Refunding Revenue, 1.900%, 3/1/40(a) | 501,220 | ||||
1,215,000 | West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Series A, 5.000%, 6/1/19 | 1,376,328 | ||||
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 | 3,500,640 | ||||
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 | 5,431,742 | ||||
750,000 | West Virginia Economic Development Authority, Department of Environmental Protection Lease, Refunding Revenue, Series B, 4.000%, 11/1/21 | 838,718 | ||||
1,015,000 | West Virginia Economic Development Authority, State Office Building 3, Public Improvements Revenue, Series D, Callable 6/1/25 @ 100, 5.000%, 6/1/26 | 1,202,511 | ||||
1,510,000 | West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, 3.000%, 12/15/18 | 1,599,709 | ||||
1,890,000 | West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, Callable 12/15/18 @ 100, 3.000%, 12/15/19 | 2,001,567 |
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
$1,600,000 | West Virginia Higher Education Policy Commission, Higher Education Facilities, Refunding Revenue, Series A, 5.000%, 4/1/20 | $1,845,216 | ||||
250,000 | West Virginia Higher Education Policy Commission, Higher Educational Facilities, Refunding Revenue, Series B, Callable 11/9/15 @ 100 (NATL), 5.000%, 4/1/16 | 250,985 | ||||
225,000 | West Virginia Hospital Finance Authority, Charleston Area Medical Center, Inc., Health, Hospital, Nursing Home Improvements Revenue, Series A, OID, 6.500%, 9/1/16 | 236,088 | ||||
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 | 2,235,960 | ||||
515,000 | West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, 5.000%, 1/1/24 | 612,144 | ||||
630,000 | West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, Callable 1/1/24 @ 100, 5.000%, 1/1/26 | 731,978 | ||||
1,555,000 | West Virginia Housing Development Fund, Refunding Revenue, Series A, 2.750%, 11/1/20 | 1,613,748 | ||||
1,890,000 | West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A, (AMBAC), 5.375%, 7/1/21 | 2,147,985 | ||||
1,320,000 | West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL), 5.250%, 5/15/17 | 1,416,954 | ||||
2,000,000 | West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL), 5.250%, 5/15/19 | 2,286,160 | ||||
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 | 1,172,520 | ||||
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 | 2,935,641 | ||||
500,000 | West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/19 | 573,610 | ||||
1,500,000 | West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/20 | 1,754,880 | ||||
1,750,000 | West Virginia University, University Projects, University & College Improvements Revenue, Series B, Callable 10/1/21 @ 100, 5.000%, 10/1/30 | 2,012,308 |
Continued
99
Sterling Capital West Virginia Intermediate Tax-Free Fund
|
Schedule of Portfolio Investments — (continued) |
September 30, 2015 |
Principal Amount | Fair Value | |||||
MUNICIPAL BONDS — (continued) |
| |||||
$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 | $ 1,729,206 | ||||
Total Municipal Bonds | 100,075,600 |
Shares | Fair Value | |||||
MONEY MARKET FUND — 1.4% |
| |||||
1,361,750 | Federated Tax-Free Obligations Fund, Institutional Shares, 0.010%(b) | $ 1,361,750 | ||||
Total Money Market Fund | 1,361,750 | |||||
Total Investments — 99.1% | 101,437,350 | |||||
Net Other Assets (Liabilities) — 0.9% | 966,659 | |||||
NET ASSETS — 100.0% | $102,404,009 | |||||
|
|
(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 September 30, 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
See accompanying Notes to the Financial Statements.
100
Sterling Capital Diversified Income Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
EQUITY FUNDS — 39.2% |
| |||||
213,605 | Advisory Research MLP & Energy Income Fund | $ 2,057,018 | ||||
59,083 | First Trust DJ Global Select Dividend Index Fund | 1,275,602 | ||||
59,157 | JPMorgan Global Research Enhanced Index Fund | 1,021,649 | ||||
241,901 | Madison Covered Call & Equity Income Fund | 2,177,110 | ||||
207,215 | PowerShares S&P 500 BuyWrite Portfolio | 4,181,599 | ||||
21,934 | SPDR S&P Global Dividend ETF | 1,287,526 | ||||
25,635 | Vanguard Global ex-U.S. Real Estate ETF | 1,306,616 | ||||
27,895 | Vanguard High Dividend Yield ETF | 1,747,622 | ||||
26,260 | Vanguard REIT ETF | 1,983,680 | ||||
|
| |||||
Total Equity Funds | 17,038,422 | |||||
|
| |||||
FIXED INCOME FUNDS — 60.2% |
| |||||
176,802 |
Guggenheim Floating Rate Strategies Fund | 4,579,174 | ||||
386,188 | Hotchkis and Wiley High Yield Fund | 4,526,119 | ||||
17,677 | iShares 10-20 Year Treasury Bond ETF | 2,426,345 | ||||
16,030 | iShares 20+ Year Treasury Bond ETF | 1,980,346 | ||||
164,483 | Pioneer ILS Interval Fund(a) | 1,745,166 | ||||
120,697 | PowerShares Emerging Markets Sovereign Debt Portfolio | 3,310,719 | ||||
322,354 | Principal Preferred Securities Fund | 3,262,223 | ||||
216,414 | Sterling Capital Corporate Fund, Institutional Shares(b) | 2,185,778 |
Shares | Fair Value | |||||
FIXED INCOME FUNDS — (continued) |
| |||||
219,233 | Sterling Capital Securitized Opportunities Fund, Institutional Shares(b) | $ 2,187,942 | ||||
|
| |||||
Total Fixed Income Funds | 26,203,812 | |||||
|
| |||||
MONEY MARKET FUND — 1.4% |
| |||||
615,281 |
Federated Treasury Obligations Fund, Institutional Shares, 0.010%(c) | 615,281 | ||||
|
| |||||
Total Money Market Fund | 615,281 | |||||
|
| |||||
Total Investments — 100.8% | 43,857,515 | |||||
Net Other Assets (Liabilities) — (0.8)% | (331,810 | ) | ||||
|
| |||||
NET ASSETS — 100.0%. | $43,525,705 | |||||
|
|
(a) | Represents non-income producing security. |
(b) | 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. |
(c) | Represents the current yield as of report date. |
ETF — Exchange Traded Fund REIT — Real Estate Investment Trust |
See accompanying Notes to the Financial Statements.
101
Sterling Capital Strategic Allocation Balanced Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
EQUITY FUNDS — 63.5% |
| |||||
1,040,079 |
Sterling Capital Behavioral International Equity Fund, Institutional Shares(a) | $ 9,610,331 | ||||
277,201 | Sterling Capital Equity Income Fund, Institutional Shares(a) | 4,820,523 | ||||
392,836 | Sterling Capital Long/Short Equity Fund, Institutional Shares(a) | 3,504,098 | ||||
202,824 | Sterling Capital Special Opportunities Fund, Institutional Shares(a) | 4,823,149 | ||||
|
| |||||
Total Equity Funds | 22,758,101 | |||||
|
| |||||
FIXED INCOME FUND — 34.0% |
| |||||
1,154,248 |
Sterling Capital Total Return Bond Fund, Institutional Shares(a) | 12,165,778 | ||||
|
| |||||
Total Fixed Income Fund | 12,165,778 | |||||
|
| |||||
MONEY MARKET FUND — 2.5% |
| |||||
890,264 |
Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | 890,264 | ||||
|
| |||||
Total Money Market Fund | 890,264 | |||||
|
| |||||
Total Investments — 100.0% | 35,814,143 | |||||
Net Other Assets (Liabilities) — (0.0)% | (13,773 | ) | ||||
|
| |||||
NET ASSETS — 100.0% | $35,800,370 | |||||
|
|
(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 the current yield as of report date. |
See accompanying Notes to the Financial Statements.
102
Sterling Capital Strategic Allocation Growth Fund
|
Schedule of Portfolio Investments |
September 30, 2015 |
Shares | Fair Value | |||||
EQUITY FUNDS — 80.1% |
| |||||
948,804 | Sterling Capital Behavioral International Equity Fund, Institutional Shares(a) | $ 8,766,950 | ||||
252,935 | Sterling Capital Equity Income Fund, Institutional Shares(a) | 4,398,539 | ||||
342,793 | Sterling Capital Long/Short Equity Fund, Institutional Shares(a) | 3,057,717 | ||||
185,048 | Sterling Capital Special Opportunities Fund, Institutional Shares(a) | 4,400,438 | ||||
|
| |||||
Total Equity Funds | 20,623,644 | |||||
|
| |||||
FIXED INCOME FUND — 17.7% |
| |||||
432,415 | Sterling Capital Total Return Bond Fund, Institutional Shares(a) | 4,557,655 | ||||
|
| |||||
Total Fixed Income Fund | 4,557,655 | |||||
|
| |||||
MONEY MARKET FUND — 2.2% |
| |||||
548,409 | Federated Treasury Obligations Fund, Institutional Shares, 0.010%(b) | 548,409 | ||||
|
| |||||
Total Money Market Fund | 548,409 | |||||
|
| |||||
Total Investments — 100.0% | 25,729,708 | |||||
Net Other Assets (Liabilities) — 0.0% | 10,946 | |||||
|
| |||||
NET ASSETS — 100.0% | $25,740,654 | |||||
|
|
(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 the current yield as of report date. |
See accompanying Notes to the Financial Statements.
103
|
Statements of Assets and Liabilities |
September 30, 2015 |
Sterling Capital Behavioral Large Cap Value Equity Fund | Sterling Capital Mid Value Fund | |||||||||
Assets: | ||||||||||
Investments at fair value (a) | $253,284,255 | $629,758,877 | ||||||||
Cash | 59 | 142 | ||||||||
Cash held at broker for securities sold short | — | — | ||||||||
Interest and dividends receivable | 213,962 | 1,492,188 | ||||||||
Receivable for investments sold | — | 1,649,517 | ||||||||
Receivable for capital shares issued | 630,393 | 1,238,482 | ||||||||
Deferred offering costs | — | — | ||||||||
Prepaid and other expenses | 23,832 | 29,632 | ||||||||
Total Assets | 254,152,501 | 634,168,838 | ||||||||
Liabilities: | ||||||||||
Call options written | — | — | ||||||||
Securities sold short, at value | — | — | ||||||||
Distributions payable | — | — | ||||||||
Payable for investments purchased | — | — | ||||||||
Payable for capital shares redeemed | 37,451 | 4,224,777 | ||||||||
Payable for dividends on short sales | — | — | ||||||||
Payable to broker for service fee on short sales | — | — | ||||||||
Accrued expenses and other payables: | ||||||||||
Investment advisory fees | 127,866 | 373,600 | ||||||||
Accounting out-of-pocket fees | 1,474 | 2,205 | ||||||||
Administration fees | 20,304 | 50,799 | ||||||||
Audit fees | 16,632 | 44,464 | ||||||||
Compliance service fees | 216 | 567 | ||||||||
Distribution (12b-1) fees | 7,683 | 12,338 | ||||||||
Trustee fees | 34 | 90 | ||||||||
Custodian fees | 2,307 | 6,145 | ||||||||
Transfer agent fees | 18,780 | 80,806 | ||||||||
Other fees and liabilities | 18,170 | 47,284 | ||||||||
Total Liabilities | 250,917 | 4,843,075 | ||||||||
Net Assets | $253,901,584 | $629,325,763 | ||||||||
Net Assets Consist of: | ||||||||||
Capital | $265,676,331 | $513,312,490 | ||||||||
Undistributed (distributions in excess of) net investment income (loss) | 177,072 | 176,187 | ||||||||
Accumulated realized gain (loss) | (20,624,257 | ) | 89,268,596 | |||||||
Net unrealized appreciation (depreciation) | 8,672,438 | 26,568,490 | ||||||||
Net Assets | $253,901,584 | $629,325,763 | ||||||||
Net Assets | ||||||||||
Class A Shares | $ 31,078,992 | $ 34,791,713 | ||||||||
Class B Shares | 536,820 | 688,118 | ||||||||
Class C Shares | 805,179 | 5,309,053 | ||||||||
Institutional Shares | 221,480,593 | 588,536,694 | ||||||||
Class R Shares | — | 185 | ||||||||
Total | $253,901,584 | $629,325,763 | ||||||||
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||||
Class A Shares | 1,880,175 | 1,936,054 | ||||||||
Class B Shares | 33,021 | 41,081 | ||||||||
Class C Shares | 50,043 | 318,489 | ||||||||
Institutional Shares | 13,326,993 | 32,450,224 | ||||||||
Class R Shares | — | 11 | ||||||||
Total | 15,290,232 | 34,745,859 | ||||||||
Net Asset Value | ||||||||||
Class A Shares - redemption price per share | $ 16.53 | $ 17.97 | ||||||||
Class B Shares - offering price per share* | $ 16.26 | $ 16.75 | ||||||||
Class C Shares - offering price per share* | $ 16.09 | $ 16.67 | ||||||||
Institutional Shares | $ 16.62 | $ 18.14 | ||||||||
Class R Shares | $ — | $ 17.59 | ** | |||||||
Maximum Sales Charge - Class A Shares | 5.75 | % | 5.75 | % | ||||||
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares | $ 17.54 | $ 19.07 | ||||||||
(a) Investments at cost | $244,611,817 | $603,190,387 |
* | Redemption price per share varies by length of time shares are held. |
** | The Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund, Sterling Capital Special Opportunities Fund net asset value for Class R Shares and Sterling Capital Behavioral Small Cap Value Equity Fund net asset value for Class C Shares is calculated using unrounded net assets of $184.81, $174.75, $45,571.06 and $330,262.90 divided by the unrounded shares of 10.509, 12.481, 1,957.363 and 24,292.557, respectively. |
See accompanying Notes to the Financial Statements.
104
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 | ||||||||||||||||||||||||
$ | 125,221,196 | $ | 909,014,145 | $ | 1,567,347,623 | $ | 99,761,238 | $ | 19,067,953 | $ | 43,485,230 | ||||||||||||||||||
12 | 231 | 205 | 4,764 | 18,145 | 17 | ||||||||||||||||||||||||
— | — | — | 34,871,962 | — | — | ||||||||||||||||||||||||
234,363 | 841,647 | 2,438,501 | 61,163 | 83,974 | 310,977 | ||||||||||||||||||||||||
— | 227,250 | 17,602,261 | 5,583,676 | — | — | ||||||||||||||||||||||||
204,755 | 2,631,351 | 7,758,157 | 245,910 | 25 | 3,334 | ||||||||||||||||||||||||
— | — | — | — | 2,337 | — | ||||||||||||||||||||||||
21,753 | 31,442 | 39,220 | 13,746 | 2,390 | 14,059 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
125,682,079 | 912,746,066 | 1,595,185,967 | 140,542,459 | 19,174,824 | 43,813,617 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
|
— |
| 273,800 | 902,050 | — | — | — | ||||||||||||||||||||||
|
— |
| — | — | 27,919,005 | — | — | ||||||||||||||||||||||
— | — | 1,148 | — | — | 1,971 | ||||||||||||||||||||||||
— | 6,236,638 | 16,390,073 | 7,729,553 | — | — | ||||||||||||||||||||||||
6,962 | 844,466 | 4,695,241 | 783,808 | — | 106,604 | ||||||||||||||||||||||||
— | — | — | 13,329 | — | — | ||||||||||||||||||||||||
— | — | — | 768 | — | — | ||||||||||||||||||||||||
78,200 | 564,323 | 916,287 | 133,319 | 10,335 | 5,725 | ||||||||||||||||||||||||
2,115 | 2,665 | 4,700 | 2,091 | 4,084 | 4,189 | ||||||||||||||||||||||||
9,952 | 71,937 | 124,877 | 8,477 | 1,518 | 3,428 | ||||||||||||||||||||||||
8,030 | 58,071 | 109,096 | 6,018 | 1,493 | 2,866 | ||||||||||||||||||||||||
103 | 737 | 1,335 | 97 | 16 | 34 | ||||||||||||||||||||||||
3,243 | 178,364 | 337,861 | 616 | 135 | 1,635 | ||||||||||||||||||||||||
16 | 117 | 221 | 13 | 3 | 6 | ||||||||||||||||||||||||
1,096 | 7,827 | 14,244 | 964 | 2,630 | 351 | ||||||||||||||||||||||||
11,991 | 97,166 | 255,431 | 11,409 | 1,274 | 4,919 | ||||||||||||||||||||||||
9,033 | 63,114 | 115,268 | 15,331 | 1,469 | 3,225 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
130,741 | 8,399,225 | 23,867,832 | 36,624,798 | 22,957 | 134,953 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 125,551,338 | $ | 904,346,841 | $ | 1,571,318,135 | $ | 103,917,661 | $ | 19,151,867 | $ | 43,678,664 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 118,898,952 | $ | 568,569,317 | $ | 1,277,275,838 | $ | 121,527,903 | $ | 20,606,912 | $ | 44,351,732 | ||||||||||||||||||
154,817 | — | 2,252,541 | — | 391,171 | (1,971 | ) | |||||||||||||||||||||||
(2,374,857 | ) | 130,720,684 | 91,842,794 | (846,872 | ) | (979,903 | ) | (337,046 | ) | ||||||||||||||||||||
8,872,426 | 205,056,840 | 199,946,962 | (16,763,370 | ) | (866,313 | ) | (334,051 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 125,551,338 | $ | 904,346,841 | $ | 1,571,318,135 | $ | 103,917,661 | $ | 19,151,867 | $ | 43,678,664 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 13,261,454 | $ | 264,293,516 | $ | 478,393,283 | $ | 1,306,999 | $ | 531,407 | $ | 8,295,164 | ||||||||||||||||||
202,763 | 4,428,701 | 3,883,235 | — | — | — | ||||||||||||||||||||||||
330,263 | 143,596,635 | 279,355,354 | 402,207 | 28,180 | — | ||||||||||||||||||||||||
111,756,683 | 491,982,418 | 807,728,803 | 102,208,455 | 18,592,280 | 35,383,500 | ||||||||||||||||||||||||
175 | 45,571 | 1,957,460 | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 125,551,338 | $ | 904,346,841 | $ | 1,571,318,135 | $ | 103,917,661 | $ | 19,151,867 | $ | 43,678,664 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
944,794 | 11,509,166 | 27,578,047 | 147,353 | 57,640 | 840,500 | ||||||||||||||||||||||||
14,894 | 217,928 | 224,033 | — | — | — | ||||||||||||||||||||||||
24,293 | 7,059,814 | 16,230,706 | 45,933 | 3,071 | — | ||||||||||||||||||||||||
7,905,383 | 20,691,614 | 46,460,370 | 11,468,497 | 2,013,144 | 3,587,550 | ||||||||||||||||||||||||
12 | 1,957 | 113,488 | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
8,889,376 | 39,480,479 | 90,606,644 | 11,661,783 | 2,073,855 | 4,428,050 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 14.04 | $ | 22.96 | $ | 17.35 | $ | 8.87 | $ | 9.22 | $ | 9.87 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 13.61 | $ | 20.32 | $ | 17.33 | $ | — | $ | — | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 13.60 | ** | $ | 20.34 | $ | 17.21 | $ | 8.76 | $ | 9.18 | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 14.14 | $ | 23.78 | $ | 17.39 | $ | 8.91 | $ | 9.24 | $ | 9.86 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 14.00 | ** | $ | 23.28 | ** | $ | 17.25 | $ | — | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 0.50 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 14.89 | $ | 24.36 | $ | 18.41 | $ | 9.41 | $ | 9.78 | $ | 9.92 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
$ | 116,348,770 | $ | 704,287,689 | $ | 1,367,648,905 | $ | 119,748,338 | $ | 19,934,314 | $ | 43,819,281 |
105
Sterling Capital Funds
|
Statements of Assets and Liabilities |
September 30, 2015
|
Sterling Capital Short Duration Bond Fund | Sterling Capital Intermediate U.S. Government Fund | |||||||||
Assets: | ||||||||||
Investments at fair value (a) | $ | 88,904,843 | $ | 30,089,757 | ||||||
Cash | 5 | 7 | ||||||||
Interest, dividends and other receivable | 610,421 | 140,318 | ||||||||
Receivable for investments sold | 605,023 | — | ||||||||
Receivable for capital shares issued | 180,731 | 127,178 | ||||||||
Prepaid expenses | 14,307 | 11,506 | ||||||||
|
|
|
| |||||||
Total Assets | 90,315,330 | 30,368,766 | ||||||||
|
|
|
| |||||||
Liabilities: | ||||||||||
Cash overdraft | — | — | ||||||||
Distributions payable | 128,554 | 24,609 | ||||||||
Payable for investments purchased | 828,723 | — | ||||||||
Payable for capital shares redeemed | 423,870 | 106,559 | ||||||||
Accrued expenses and other payables: | ||||||||||
Investment advisory fees | 20,470 | 7,084 | ||||||||
Administration fees | 6,975 | 2,328 | ||||||||
Compliance service fees | 70 | 24 | ||||||||
Distribution (12b-1) fees | 3,657 | 2,402 | ||||||||
Trustee fees | 11 | 4 | ||||||||
Other fees | 23,318 | 7,865 | ||||||||
|
|
|
| |||||||
Total Liabilities | 1,435,648 | 150,875 | ||||||||
|
|
|
| |||||||
Net Assets | $ | 88,879,682 | $ | 30,217,891 | ||||||
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||
Capital | $ | 95,373,002 | $ | 36,751,783 | ||||||
Undistributed (distributions in excess of) net investment income | (9,326 | ) | 189,582 | |||||||
Accumulated realized gain (loss) | (5,612,310 | ) | (7,335,811 | ) | ||||||
Net unrealized appreciation (depreciation) | (871,684 | ) | 612,337 | |||||||
|
|
|
| |||||||
Net Assets | $ | 88,879,682 | $ | 30,217,891 | ||||||
|
|
|
| |||||||
Net Assets | ||||||||||
Class A Shares | $ | 8,075,076 | $ | 7,625,493 | ||||||
Class B Shares | — | 167,242 | ||||||||
Class C Shares | 2,414,932 | 776,749 | ||||||||
Institutional Shares | 78,389,674 | 21,648,407 | ||||||||
Class R Shares | — | — | ||||||||
|
|
|
| |||||||
Total | $ | 88,879,682 | $ | 30,217,891 | ||||||
|
|
|
| |||||||
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||||
Class A Shares | 911,560 | 748,736 | ||||||||
Class B Shares | — | 16,483 | ||||||||
Class C Shares | 272,728 | 76,406 | ||||||||
Institutional Shares | 8,849,096 | 2,123,811 | ||||||||
Class R Shares | — | — | ||||||||
|
|
|
| |||||||
Total | 10,033,384 | 2,965,436 | ||||||||
|
|
|
| |||||||
Net Asset Value | ||||||||||
Class A Shares - redemption price per share | $ | 8.86 | $ | 10.18 | ||||||
|
|
|
| |||||||
Class B Shares - offering price per share* | $ | — | $ | 10.15 | ||||||
|
|
|
| |||||||
Class C Shares - offering price per share* | $ | 8.85 | $ | 10.17 | ||||||
|
|
|
| |||||||
Institutional Shares | $ | 8.86 | $ | 10.19 | ||||||
|
|
|
| |||||||
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 | $ | 9.04 | $ | 10.39 | ||||||
|
|
|
| |||||||
(a) Investments at cost | $ | 89,776,527 | $ | 29,477,420 |
* | Redemption price per share varies by length of time shares are held. |
See accompanying Notes to the Financial Statements.
106
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 | ||||||||||||||||||||
$ | 666,375,754 | $ | 64,468,547 | $ | 46,376,562 | $ | 14,062,473 | $ | 36,478,277 | |||||||||||||||
— | 4 | 5 | 3 | 4 | ||||||||||||||||||||
5,009,353 | 785,983 | 138,175 | 168,936 | 402,715 | ||||||||||||||||||||
7,681,112 | — | — | — | — | ||||||||||||||||||||
1,429,247 | 337,613 | 10,974 | — | 200 | ||||||||||||||||||||
21,855 | 6,596 | 6,224 | 4,840 | 6,795 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
680,517,321 | 65,598,743 | 46,531,940 | 14,236,252 | 36,887,991 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2,152 | — | — | — | — | ||||||||||||||||||||
685,999 | 442 | — | 18,376 | 35,730 | ||||||||||||||||||||
9,553,413 | 698,841 | — | — | — | ||||||||||||||||||||
1,902,621 | 510,928 | 92,709 | 123,455 | 253,183 | ||||||||||||||||||||
149,070 | 18,210 | 11,628 | 3,426 | 10,574 | ||||||||||||||||||||
52,908 | 4,966 | 3,581 | 1,130 | 2,897 | ||||||||||||||||||||
540 | 51 | 36 | 11 | 29 | ||||||||||||||||||||
15,843 | 76 | 56 | 941 | 2,018 | ||||||||||||||||||||
80 | 7 | 5 | 2 | 5 | ||||||||||||||||||||
147,054 | 16,233 | 11,327 | 3,999 | 9,024 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
12,509,680 | �� | 1,249,754 | 119,342 | 151,340 | 313,460 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 668,007,641 | $ | 64,348,989 | $ | 46,412,598 | $ | 14,084,912 | $ | 36,574,531 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 677,161,339 | $ | 64,477,126 | $ | 47,601,562 | $ | 13,095,389 | $ | 34,966,772 | |||||||||||||||
304,909 | (442 | ) | — | 12,184 | 3,676 | |||||||||||||||||||
(9,640,940 | ) | (133,890 | ) | (1,748,157 | ) | 163,686 | 229,043 | |||||||||||||||||
182,333 | 6,195 | 559,193 | 813,653 | 1,375,040 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 668,007,641 | $ | 64,348,989 | $ | 46,412,598 | $ | 14,084,912 | $ | 36,574,531 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 47,781,954 | $ | 347,977 | $ | 124,194 | $ | 4,532,296 | $ | 6,865,179 | |||||||||||||||
930,051 | — | — | — | — | ||||||||||||||||||||
6,362,448 | 8,791 | 38,924 | 19,701 | 741,160 | ||||||||||||||||||||
612,927,377 | 63,992,221 | 46,249,480 | 9,532,915 | 28,968,192 | ||||||||||||||||||||
5,811 | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 668,007,641 | $ | 64,348,989 | $ | 46,412,598 | $ | 14,084,912 | $ | 36,574,531 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
4,536,799 | 34,448 | 12,447 | 426,584 | 614,441 | ||||||||||||||||||||
88,213 | — | — | — | — | ||||||||||||||||||||
603,150 | 871 | 3,906 | 1,854 | 66,318 | ||||||||||||||||||||
58,163,919 | 6,337,318 | 4,632,813 | 898,546 | 2,588,601 | ||||||||||||||||||||
554 | — | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
63,392,635 | 6,372,637 | 4,649,166 | 1,326,984 | 3,269,360 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 10.53 | $ | 10.10 | $ | 9.98 | $ | 10.62 | $ | 11.17 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 10.54 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 10.55 | $ | 10.09 | $ | 9.97 | $ | 10.63 | $ | 11.18 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 10.54 | $ | 10.10 | $ | 9.98 | $ | 10.61 | $ | 11.19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 10.49 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
5.75 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 11.17 | $ | 10.31 | $ | 10.18 | $ | 10.84 | $ | 11.40 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 666,193,421 | $ | 64,462,352 | $ | 45,817,369 | $ | 13,248,820 | $ | 35,103,237 |
107
Sterling Capital Funds |
Statements of Assets and Liabilities |
September 30, 2015 |
Sterling Capital North Carolina Intermediate Tax-Free Fund | Sterling Capital South Carolina Intermediate Tax-Free Fund | |||||||||
Assets: | ||||||||||
Investments at fair value - unaffiliated (a) | $ | 193,881,341 | $ | 76,535,705 | ||||||
Investments at fair value - affiliated (b) | — | — | ||||||||
Cash | 42 | 23 | ||||||||
Interest and dividends receivable - unaffiliated | 2,729,616 | 968,389 | ||||||||
Dividends receivable - affiliated | — | — | ||||||||
Receivable for capital shares issued | 317,336 | 30,064 | ||||||||
Prepaid and other expenses | 7,414 | 5,530 | ||||||||
|
|
|
| |||||||
Total Assets | 196,935,749 | 77,539,711 | ||||||||
|
|
|
| |||||||
Liabilities: | ||||||||||
Distributions payable | 235,961 | 77,576 | ||||||||
Payable for investments purchased | — | 902,117 | ||||||||
Payable for capital shares redeemed | 235,153 | 60,986 | ||||||||
Accrued expenses and other payables: | ||||||||||
Investment advisory fees | 55,900 | 21,836 | ||||||||
Administration fees | 15,217 | 5,944 | ||||||||
Compliance service fees | 153 | 59 | ||||||||
Distribution (12b-1) fees | 12,079 | 4,684 | ||||||||
Trustee fees | 24 | 8 | ||||||||
Printing fees | 7,458 | 2,653 | ||||||||
Transfer agent fees | 12,637 | 4,266 | ||||||||
Other fees | 22,755 | 9,251 | ||||||||
|
|
|
| |||||||
Total Liabilities | 597,337 | 1,089,380 | ||||||||
|
|
|
| |||||||
Net Assets | $ | 196,338,412 | $ | 76,450,331 | ||||||
|
|
|
| |||||||
Net Assets Consist of: | ||||||||||
Capital | $ | 185,513,442 | $ | 73,527,860 | ||||||
Undistributed net investment income | 82,181 | 26,999 | ||||||||
Accumulated realized gain (loss) | 1,080,103 | 249,935 | ||||||||
Net unrealized appreciation | 9,662,686 | 2,645,537 | ||||||||
|
|
|
| |||||||
Net Assets | $ | 196,338,412 | $ | 76,450,331 | ||||||
|
|
|
| |||||||
Net Assets | ||||||||||
Class A Shares | $ | 45,940,320 | $ | 16,801,863 | ||||||
Class B Shares | — | — | ||||||||
Class C Shares | 3,350,450 | 1,516,861 | ||||||||
Institutional Shares | 147,047,642 | 58,131,607 | ||||||||
|
|
|
| |||||||
Total | $ | 196,338,412 | $ | 76,450,331 | ||||||
|
|
|
| |||||||
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||||
Class A Shares | 4,187,228 | 1,508,654 | ||||||||
Class B Shares | — | — | ||||||||
Class C Shares | 305,599 | 136,210 | ||||||||
Institutional Shares. | 13,403,410 | 5,255,121 | ||||||||
|
|
|
| |||||||
Total | 17,896,237 | 6,899,985 | ||||||||
|
|
|
| |||||||
Net Asset Value | ||||||||||
Class A Shares - redemption price per share | $ | 10.97 | $ | 11.14 | ||||||
|
|
|
| |||||||
Class B Shares - offering price per share* | $ | — | $ | — | ||||||
|
|
|
| |||||||
Class C Shares - offering price per share* | $ | 10.96 | $ | 11.14 | ||||||
|
|
|
| |||||||
Institutional Shares. | $ | 10.97 | $ | 11.06 | ||||||
|
|
|
| |||||||
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 | $ | 11.20 | $ | 11.36 | ||||||
|
|
|
| |||||||
Investments at cost: | ||||||||||
(a) Investments at cost - unaffiliated | $ | 184,218,655 | $ | 73,890,168 | ||||||
(b) Investments at cost - affiliated | $ | — | $ | — |
* | Redemption price per share varies by length of time shares are held. |
See accompanying Notes to the Financial Statements.
108
|
|
Sterling Capital Virginia Intermediate Tax-Free Fund | Sterling Capital West Virginia Intermediate Tax-Free Fund | Sterling Capital Diversified Income Fund | Sterling Capital Strategic Allocation Balanced Fund | Sterling Capital Strategic Allocation Growth Fund | |||||||||||||||||||
$ | 116,922,660 | $ | 101,437,350 | $ | 39,483,795 | $ | 890,264 | $ | 548,409 | ||||||||||||||
— | — | 4,373,720 | 34,923,879 | 25,181,299 | |||||||||||||||||||
9 | 11 | — | 7 | 6 | |||||||||||||||||||
1,285,750 | 1,462,970 | 48,256 | — | — | |||||||||||||||||||
— | — | 47,728 | 36,582 | 13,492 | |||||||||||||||||||
60,759 | 1,192 | 7,364 | 1,544 | 2,746 | |||||||||||||||||||
7,792 | 6,713 | 9,761 | 8,520 | 7,245 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
118,276,970 | 102,908,236 | 43,970,624 | 35,860,796 | 25,753,197 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
130,787 | 114,374 | 14,518 | 1,654 | 297 | |||||||||||||||||||
1,511,878 | — | 89,648 | — | — | |||||||||||||||||||
133,997 | 322,474 | 329,536 | 41,864 | 1,787 | |||||||||||||||||||
33,582 | 29,191 | — | — | — | |||||||||||||||||||
9,179 | 7,972 | — | — | — | |||||||||||||||||||
93 | 80 | 32 | 27 | 19 | |||||||||||||||||||
8,553 | 7,500 | 3,995 | 8,532 | 5,987 | |||||||||||||||||||
14 | 12 | 3 | 5 | 3 | |||||||||||||||||||
4,484 | 3,775 | 944 | 1,400 | 991 | |||||||||||||||||||
7,860 | 6,523 | 2,508 | 2,760 | 1,680 | |||||||||||||||||||
14,122 | 12,326 | 3,735 | 4,184 | 1,779 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
1,854,549 | 504,227 | 444,919 | 60,426 | 12,543 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 116,422,421 | $ | 102,404,009 | $ | 43,525,705 | $ | 35,800,370 | $ | 25,740,654 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 110,711,971 | $ | 97,743,507 | $ | 50,739,291 | $ | 40,912,662 | $ | 33,224,793 | ||||||||||||||
62,618 | 67,571 | 127,669 | 20,031 | 10,031 | |||||||||||||||||||
371,306 | 486,590 | (5,071,181 | ) | (5,100,247 | ) | (7,435,349 | ) | ||||||||||||||||
5,276,526 | 4,106,341 | (2,270,074 | ) | (32,076 | ) | (58,821 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 116,422,421 | $ | 102,404,009 | $ | 43,525,705 | $ | 35,800,370 | $ | 25,740,654 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 36,671,657 | $ | 35,278,943 | $ | 14,320,869 | $ | 34,047,496 | $ | 22,848,254 | ||||||||||||||
— | — | 513,378 | 896,012 | 885,217 | |||||||||||||||||||
1,245,138 | 409,288 | 795,401 | 750,766 | 490,771 | |||||||||||||||||||
78,505,626 | 66,715,778 | 27,896,057 | 106,096 | 1,516,412 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 116,422,421 | $ | 102,404,009 | $ | 43,525,705 | $ | 35,800,370 | $ | 25,740,654 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
3,060,522 | 3,478,666 | 1,402,532 | 3,301,285 | 2,287,210 | |||||||||||||||||||
— | — | 50,191 | 88,584 | 91,024 | |||||||||||||||||||
103,934 | 40,349 | 78,514 | 74,131 | 50,698 | |||||||||||||||||||
6,553,531 | 6,571,199 | 2,701,967 | 10,213 | 151,479 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
9,717,987 | 10,090,214 | 4,233,204 | 3,474,213 | 2,580,411 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 11.98 | $ | 10.14 | $ | 10.21 | $ | 10.31 | $ | 9.99 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | — | $ | — | $ | 10.23 | $ | 10.11 | $ | 9.73 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 11.98 | $ | 10.14 | $ | 10.13 | $ | 10.13 | $ | 9.68 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 11.98 | $ | 10.15 | $ | 10.32 | $ | 10.39 | $ | 10.01 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
2.00 | % | 2.00 | % | 5.75 | % | 5.75 | % | 5.75 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ |
12.23 |
| $ | 10.35 | $ | 10.83 | $ | 10.94 | $ | 10.60 | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 111,646,134 | $ | 97,331,009 | $ | 41,747,563 | $ | 890,264 | $ | 548,409 | ||||||||||||||
$ | — | $ | — | $ | 4,380,026 | $ | 34,955,955 | $ | 25,240,120 |
109
Sterling Capital Funds |
Statements of Operations |
For the Year Ended September 30, 2015 |
Sterling Capital Behavioral Large Cap Value Equity Fund |
| Sterling Capital Mid Value Fund | ||||||||||||
Investment Income: | ||||||||||||||
Interest income | $ | 76 | $ | 893 | ||||||||||
Dividend income | 6,479,306 | 11,165,065 | ||||||||||||
Foreign tax withholding | (1,548 | ) | — | |||||||||||
|
|
|
| |||||||||||
Total investment income | 6,477,834 | 11,165,958 | ||||||||||||
|
|
|
| |||||||||||
Expenses: | ||||||||||||||
Investment advisory fees (See Note 5) | 1,961,990 | 5,258,959 | ||||||||||||
Administration fees (See Note 5) | 258,542 | 692,774 | ||||||||||||
Distribution fees - Class A Shares | 87,151 | 105,170 | ||||||||||||
Distribution fees - Class B Shares | 8,052 | 10,936 | ||||||||||||
Distribution fees - Class C Shares | 7,951 | 52,934 | ||||||||||||
Distribution fees - Class R Shares | — | 1 | ||||||||||||
Compliance service fees (See Note 5) | 2,305 | 6,270 | ||||||||||||
Trustee fees | 29,513 | 80,361 | ||||||||||||
Accounting and out-of-pocket fees | 10,248 | 15,417 | ||||||||||||
Audit fees | 25,267 | 67,744 | ||||||||||||
Custodian fees | 14,102 | 37,678 | ||||||||||||
Fund accounting fees (See Note 5) | 21,021 | 56,346 | ||||||||||||
Interest expense (See Note 7) | 1 | — | ||||||||||||
Legal fees | 28,983 | 77,620 | ||||||||||||
Offering costs | — | — | ||||||||||||
Printing fees | 29,606 | 83,223 | ||||||||||||
Registration fees | 48,917 | 63,577 | ||||||||||||
Transfer agent fees (See Note 5) | 108,102 | 587,234 | ||||||||||||
Other fees | 15,482 | 40,171 | ||||||||||||
|
|
|
| |||||||||||
Total expenses excluding dividend expense and service fee on securities sold short | 2,657,233 | 7,236,415 | ||||||||||||
Dividend expense | — | — | ||||||||||||
Service fee on securities sold short | — | — | ||||||||||||
|
|
|
| |||||||||||
Total expenses before waivers | 2,657,233 | 7,236,415 | ||||||||||||
Less expenses waived by the Investment Advisor (See Note 5) | (280,284 | ) | — | |||||||||||
|
|
|
| |||||||||||
Net expenses | 2,376,949 | 7,236,415 | ||||||||||||
|
|
|
| |||||||||||
Net investment income (loss) | 4,100,885 | 3,929,543 | ||||||||||||
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||
Net realized gain (loss) from: | ||||||||||||||
Investments | 20,236,440 | 108,655,777 | ||||||||||||
Written options | — | — | ||||||||||||
Foreign currency transactions | — | — | ||||||||||||
Short sales | — | — | ||||||||||||
Change in unrealized appreciation/depreciation on: | ||||||||||||||
Investments | (30,556,150 | ) | (109,726,999 | ) | ||||||||||
Written options | — | — | ||||||||||||
Foreign currency transactions | — | — | ||||||||||||
Short sales | — | — | ||||||||||||
|
|
|
| |||||||||||
Total realized and unrealized gain (loss) | (10,319,710 | ) | (1,071,222 | ) | ||||||||||
|
|
|
| |||||||||||
Change in net assets from operations | $ | (6,218,825 | ) | $ | 2,858,321 | |||||||||
|
|
|
|
* Commencement of operations was November 28, 2014.
See accompanying Notes to the Financial Statements.
110
|
|
Sterling Capital | 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 | |||||||||||||||||||||||
$ | 43 | $ | 1,493 | $ | 519 | $ | 302,378 | $ | — | $ | 575,039 | |||||||||||||||||
3,300,480 | 9,687,356 | 53,272,488 | 1,081,914 | 791,815 | 2,603 | |||||||||||||||||||||||
(836 | ) | (104,357 | ) | (283,707 | ) | (27,897 | ) | (56,259 | ) | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
3,299,687 | 9,584,492 | 52,989,300 | 1,356,395 | 735,556 | 577,642 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,015,187 | 7,329,619 | 12,903,454 | 1,594,095 | 152,915 | 96,824 | |||||||||||||||||||||||
124,818 | 902,603 | 1,699,658 | 98,158 | 17,659 | 44,661 | |||||||||||||||||||||||
32,850 | 749,315 | 1,456,616 | 5,525 | 514 | 21,481 | |||||||||||||||||||||||
2,846 | 63,771 | 59,251 | — | — | — | |||||||||||||||||||||||
3,319 | 1,348,953 | 3,092,266 | 3,973 | 157 | — | |||||||||||||||||||||||
1 | 223 | 9,745 | — | — | — | |||||||||||||||||||||||
1,104 | 8,085 | 15,214 | 1,004 | 151 | 401 | |||||||||||||||||||||||
14,232 | 104,546 | 201,546 | 11,986 | 1,781 | 5,358 | |||||||||||||||||||||||
13,142 | 17,599 | 30,018 | 14,027 | 15,630 | 24,420 | |||||||||||||||||||||||
12,206 | 88,071 | 166,797 | 8,018 | 2,059 | 4,257 | |||||||||||||||||||||||
6,785 | 48,713 | 91,239 | 5,491 | 12,390 | 2,460 | |||||||||||||||||||||||
10,151 | 73,391 | 138,287 | 50,971 | 1,434 | 3,631 | |||||||||||||||||||||||
312 | — | 589 | 2,044 | — | — | |||||||||||||||||||||||
14,020 | 103,674 | 191,890 | 12,141 | 1,778 | 5,031 | |||||||||||||||||||||||
— | — | — | 1,780 | 7,509 | — | |||||||||||||||||||||||
18,322 | 110,471 | 211,016 | 17,943 | 2,518 | 5,146 | |||||||||||||||||||||||
47,377 | 79,664 | 83,065 | 43,453 | 1,293 | 29,495 | |||||||||||||||||||||||
69,680 | 594,178 | 1,957,886 | 79,872 | 6,658 | 39,668 | |||||||||||||||||||||||
9,129 | 54,279 | 103,134 | 6,903 | 2,091 | 3,714 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,395,481 | 11,677,155 | 22,411,671 | 1,957,384 | 226,537 | 286,547 | |||||||||||||||||||||||
— | — | — | 658,411 | — | — | |||||||||||||||||||||||
— | — | — | 513,649 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,395,481 | 11,677,155 | 22,411,671 | 3,129,444 | 226,537 | 286,547 | |||||||||||||||||||||||
— | — | — | — | (28,672 | ) | (8,813 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,395,481 | 11,677,155 | 22,411,671 | 3,129,444 | 197,865 | 277,734 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,904,206 | (2,092,663 | ) | 30,577,629 | (1,773,049 | ) | 537,691 | 299,908 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,320,822 | 137,348,199 | 94,645,812 | 4,122,878 | (976,617 | ) | (9,340 | ) | |||||||||||||||||||||
— | 1,620,523 | 1,281,359 | (159,832 | ) | — | — | ||||||||||||||||||||||
— | — | — | (2,315 | ) | (92,597 | ) | — | |||||||||||||||||||||
— | — | — | (2,250,147 | ) | — | — | ||||||||||||||||||||||
321,112 | (95,956,275 | ) | (184,053,217 | ) | (22,336,518 | ) | (866,361 | ) | (118,860 | ) | ||||||||||||||||||
— | (136,108 | ) | (278,519 | ) | — | — | — | |||||||||||||||||||||
— | — | — | 27 | 48 | — | |||||||||||||||||||||||
— | — | — | 2,730,942 | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
1,641,934 | 42,876,339 | (88,404,565 | ) | (17,894,965 | ) | (1,935,527 | ) | (128,200 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 3,546,140 | $ | 40,783,676 | $ | (57,826,936 | ) | $ | (19,668,014 | ) | $ | (1,397,836 | ) | $ | 171,708 | ||||||||||||||
|
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|
|
111
Sterling Capital Funds |
Statements of Operations |
For the Year Ended September 30, 2015 |
Sterling Capital Short Duration Bond Fund | Sterling Capital Intermediate U.S. Government Fund | |||||||||
Investment Income: | ||||||||||
Interest income | $ | 1,751,711 | $ | 742,571 | ||||||
Dividend income | 28,058 | 49 | ||||||||
|
|
|
| |||||||
Total investment income | 1,779,769 | 742,620 | ||||||||
|
|
|
| |||||||
Expenses: | ||||||||||
Investment advisory fees (See Note 5) | 273,296 | 144,023 | ||||||||
Administration fees (See Note 5) | 84,043 | 30,879 | ||||||||
Distribution fees - Class A Shares | 23,569 | 25,911 | ||||||||
Distribution fees - Class B Shares | — | 2,221 | ||||||||
Distribution fees - Class C Shares | 22,345 | 8,166 | ||||||||
Distribution fees - Class R Shares | — | — | ||||||||
Compliance service fees (See Note 5) | 753 | 269 | ||||||||
Trustee fees | 9,565 | 3,571 | ||||||||
Accounting and out-of-pocket fees | 31,257 | 7,178 | ||||||||
Audit fees | 8,303 | 3,061 | ||||||||
Custodian fees | 4,580 | 1,753 | ||||||||
Fund accounting fees (See Note 5) | 6,832 | 2,512 | ||||||||
Legal fees | 9,497 | 3,294 | ||||||||
Printing fees | 10,015 | 4,197 | ||||||||
Registration fees | 35,257 | 23,255 | ||||||||
Transfer agent fees (See Note 5) | 36,094 | 16,653 | ||||||||
Other fees | 6,174 | 3,783 | ||||||||
|
|
|
| |||||||
Total expenses before waivers | 561,580 | 280,726 | ||||||||
Less expenses waived by the Investment Advisor (See Note 5) | (18,220 | ) | (21,026 | ) | ||||||
|
|
|
| |||||||
Net expenses | 543,360 | 259,700 | ||||||||
|
|
|
| |||||||
Net investment income | 1,236,409 | 482,920 | ||||||||
|
|
|
| |||||||
Realized and Unrealized Gain (Loss): | ||||||||||
Net realized gain (loss) from: | ||||||||||
Investment transactions - unaffiliated | (326,041 | ) | 300,814 | |||||||
Distributions from unaffiliated funds | — | — | ||||||||
Change in unrealized appreciation/depreciation on investments | (235,357 | ) | (210,070 | ) | ||||||
|
|
|
| |||||||
Total realized and unrealized gain (loss) | (561,398 | ) | 90,744 | |||||||
|
|
|
| |||||||
Change in net assets from operations | $ | 675,011 | $ | 573,664 | ||||||
|
|
|
|
See accompanying Notes to the Financial Statements.
112
|
|
Sterling Capital | Sterling Capital Corporate Fund | Sterling Capital Securitized Opportunities Fund | Sterling Capital Kentucky Intermediate Tax-Free Fund | Sterling Capital Maryland Intermediate Tax-Free Fund | |||||||||||||||||||
$ | 21,967,123 | $ | 2,185,998 | $ | 1,197,519 | $ | 489,879 | $ | 1,011,072 | ||||||||||||||
375,320 | 55,319 | 8 | 49 | 96 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
22,342,443 | 2,241,317 | 1,197,527 | 489,928 | 1,011,168 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
2,460,422 | 209,179 | 145,829 | 66,282 | 167,238 | |||||||||||||||||||
613,942 | 55,172 | 38,484 | 13,591 | 34,305 | |||||||||||||||||||
116,184 | 774 | 273 | 11,389 | 16,931 | |||||||||||||||||||
12,666 | — | — | — | — | |||||||||||||||||||
62,571 | 88 | 386 | 196 | 7,191 | |||||||||||||||||||
29 | — | — | — | — | |||||||||||||||||||
5,491 | 514 | 344 | 120 | 306 | |||||||||||||||||||
65,106 | 5,999 | 4,179 | 1,558 | 3,893 | |||||||||||||||||||
54,453 | 17,989 | 20,062 | 6,681 | 9,582 | |||||||||||||||||||
59,847 | 5,449 | 3,775 | 1,344 | 3,445 | |||||||||||||||||||
33,240 | 3,051 | 2,242 | 831 | 1,931 | |||||||||||||||||||
49,873 | 4,483 | 3,124 | 1,105 | 2,787 | |||||||||||||||||||
67,438 | 5,989 | 4,192 | 1,499 | 3,805 | |||||||||||||||||||
71,454 | 6,370 | 4,544 | 1,979 | 4,346 | |||||||||||||||||||
49,392 | 19,927 | 17,894 | 13,379 | 14,771 | |||||||||||||||||||
282,874 | 38,964 | 14,269 | 5,795 | 15,318 | |||||||||||||||||||
31,840 | 4,365 | 3,557 | 2,273 | 3,452 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
4,036,822 | 378,313 | 263,154 | 128,022 | 289,301 | |||||||||||||||||||
(664,979 | ) | — | (16,666 | ) | (12,756 | ) | (24,525 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
3,371,843 | 378,313 | 246,488 | 115,266 | 264,776 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
18,970,600 | 1,863,004 | 951,039 | 374,662 | 746,392 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
384,257 | (134,816 | ) | 149,237 | 208,219 | 216,487 | ||||||||||||||||||
— | — | — | 33 | 123 | |||||||||||||||||||
(6,339,132 | ) | (825,504 | ) | 292,812 | (281,514 | ) | (234,543 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
(5,954,875 | ) | (960,320 | ) | 442,049 | (73,262 | ) | (17,933 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 13,015,725 | $ | 902,684 | $ | 1,393,088 | $ | 301,400 | $ | 728,459 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
113
Sterling Capital Funds |
Statements of Operations |
For the Year Ended September 30, 2015 |
Sterling Capital North Carolina Intermediate Tax-Free Fund | Sterling Capital South Carolina Intermediate Tax-Free Fund | |||||||||
Investment Income: | ||||||||||
Interest income | $ | 6,057,241 | $ | 1,984,648 | ||||||
Dividend income - unaffiliated | 427 | 270 | ||||||||
Dividend income - affiliated | — | — | ||||||||
|
|
|
| |||||||
Total investment income | 6,057,668 | 1,984,918 | ||||||||
|
|
|
| |||||||
Expenses: | ||||||||||
Investment advisory fees (See Note 5) | 899,471 | 320,483 | ||||||||
Administration fees (See Note 5) | 184,368 | 65,738 | ||||||||
Distribution fees - Class A Shares | 117,195 | 42,973 | ||||||||
Distribution fees - Class B Shares | — | — | ||||||||
Distribution fees - Class C Shares | 32,475 | 16,038 | ||||||||
Compliance service fees (See Note 5) | 1,637 | 587 | ||||||||
Trustee fees | 20,943 | 7,282 | ||||||||
Accounting and out-of-pocket fees | 22,236 | 12,918 | ||||||||
Audit fees | 18,404 | 6,543 | ||||||||
Custodian fees | 9,844 | 3,595 | ||||||||
Fund accounting fees (See Note 5) | 14,991 | 5,342 | ||||||||
Interest expense (See Note 7) | — | — | ||||||||
Legal fees | 20,543 | 7,325 | ||||||||
Printing fees | 21,127 | 7,788 | ||||||||
Registration fees | 12,647 | 13,620 | ||||||||
Transfer agent fees (See Note 5) | 78,869 | 27,915 | ||||||||
Other fees | 11,841 | 5,020 | ||||||||
|
|
|
| |||||||
Total expenses before waivers | 1,466,591 | 543,167 | ||||||||
Less expenses waived by the Investment Advisor (See Note 5) | (131,370 | ) | (48,190 | ) | ||||||
|
|
|
| |||||||
Net expenses | 1,335,221 | 494,977 | ||||||||
|
|
|
| |||||||
Net investment income | 4,722,447 | 1,489,941 | ||||||||
|
|
|
| |||||||
Realized and Unrealized Gain (Loss): | ||||||||||
Net realized gain (loss) from: | ||||||||||
Investment transactions - unaffiliated | 1,060,639 | 275,109 | ||||||||
Investment transactions - affiliated. | — | — | ||||||||
Distributions from unaffiliated funds | 380 | 149 | ||||||||
Distributions from affiliated funds | — | — | ||||||||
Change in unrealized appreciation/depreciation on investments | (1,034,641 | ) | (167,796 | ) | ||||||
|
|
|
| |||||||
Total realized and unrealized gain (loss) | 26,378 | 107,462 | ||||||||
|
|
|
| |||||||
Change in net assets from operations | $ | 4,748,825 | $ | 1,597,403 | ||||||
|
|
|
|
See accompanying Notes to the Financial Statements.
114
|
|
Sterling Capital | Sterling Capital West Virginia Intermediate Tax-Free Fund | Sterling Capital Diversified Income Fund | Sterling Capital Strategic Allocation Balanced Fund | Sterling Capital Strategic Allocation Growth Fund | |||||||||||||||||||
$ | 3,521,341 | $ | 3,067,380 | $ | — | $ | — | $ | — | ||||||||||||||
211 | 207 | 576,668 | 77 | 50 | |||||||||||||||||||
— | — | 328,526 | 600,304 | 301,966 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
3,521,552 | 3,067,587 | 905,194 | 600,381 | 302,016 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
540,722 | 464,529 | 64,869 | 95,945 | 67,921 | |||||||||||||||||||
110,863 | 95,248 | — | — | — | |||||||||||||||||||
97,856 | 88,769 | 38,024 | 89,751 | 60,771 | |||||||||||||||||||
— | — | 7,169 | 15,203 | 14,583 | |||||||||||||||||||
13,336 | 3,906 | 3,712 | 7,608 | 5,168 | |||||||||||||||||||
986 | 844 | 203 | 290 | 205 | |||||||||||||||||||
12,612 | 10,816 | 1,957 | 3,613 | 2,562 | |||||||||||||||||||
15,642 | 14,514 | 2,761 | 2,963 | 2,804 | |||||||||||||||||||
11,052 | 9,406 | 2,337 | 3,463 | 1,140 | |||||||||||||||||||
5,965 | 5,128 | 1,477 | 2,017 | 1,458 | |||||||||||||||||||
9,012 | 7,742 | 1,947 | 2,879 | 2,038 | |||||||||||||||||||
2 | — | — | — | — | |||||||||||||||||||
12,364 | 10,664 | 2,477 | 3,619 | 2,555 | |||||||||||||||||||
13,193 | 10,849 | 7,051 | 4,530 | 3,478 | |||||||||||||||||||
16,024 | 15,170 | 17,845 | 15,712 | 17,849 | |||||||||||||||||||
46,500 | 38,169 | 10,422 | 15,582 | 9,980 | |||||||||||||||||||
7,700 | 6,878 | 2,982 | 3,876 | 3,319 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
913,829 | 782,632 | 165,233 | 267,051 | 195,831 | |||||||||||||||||||
(79,274 | ) | (67,632 | ) | (64,869 | ) | (95,945 | ) | (67,921 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
834,555 | 715,000 | 100,364 | 171,106 | 127,910 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
2,686,997 | 2,352,587 | 804,830 | 429,275 | 174,106 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
412,758 | 478,593 | (608,262 | ) | 3,741 | 576 | ||||||||||||||||||
— | — | 1,980,729 | 2,612,542 | 2,202,298 | |||||||||||||||||||
— | 299 | 32,321 | — | — | |||||||||||||||||||
— | — | 140,613 | 434,091 | 382,078 | |||||||||||||||||||
(553,965 | ) | (374,084 | ) | (3,944,009 | ) | (4,123,398 | ) | (3,515,566 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
(141,207 | ) | 104,808 | (2,398,608 | ) | (1,073,024 | ) | (930,614 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$ | 2,545,790 | $ | 2,457,395 | $ | (1,593,778 | ) | $ | (643,749 | ) | $ | (756,508 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
115
Sterling Capital Funds |
Statements of Changes in Net Assets |
Sterling Capital | ||||||||
Behavioral Large Cap | ||||||||
Value Equity Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 4,100,885 | $ | 3,328,571 | ||||
Net realized gain | 20,236,440 | 24,509,455 | ||||||
Change in unrealized appreciation/depreciation | (30,556,150 | ) | 23,928,652 | |||||
|
|
|
| |||||
Change in net assets from operations | (6,218,825 | ) | 51,766,678 | |||||
|
|
|
| |||||
Distributions to Class A Shareholders From: | ||||||||
Net investment income | (462,866 | ) | (327,487 | ) | ||||
Net realized gains | — | — | ||||||
Distributions to Class B Shareholders From: | ||||||||
Net investment income | (3,997 | ) | (2,885 | ) | ||||
Net realized gains | — | — | ||||||
Distributions to Class C Shareholders From: | ||||||||
Net investment income | (5,366 | ) | (1,518 | ) | ||||
Net realized gains | — | — | ||||||
Distributions to Institutional Class Shareholders From: | ||||||||
Net investment income | (3,834,713 | ) | (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 | (4,306,942 | ) | (3,094,252 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | (6,300,271 | ) | (3,008,704 | ) | ||||
|
|
|
| |||||
Change in net assets | (16,826,038 | ) | 45,663,722 | |||||
Net Assets: | ||||||||
Beginning of year | 270,727,622 | 225,063,900 | ||||||
|
|
|
| |||||
End of year | $ | 253,901,584 | $ | 270,727,622 | ||||
|
|
|
| |||||
Undistributed net investment income (loss) | $ | 177,072 | $ | 368,107 | ||||
|
|
|
|
See accompanying Notes to the Financial Statements.
116
XXUPDATEXXX |
|
|
Sterling Capital | Sterling Capital | Sterling Capital | ||||||||||||||||||||
Mid Value | Behavioral Small Cap | Special Opportunities | ||||||||||||||||||||
Fund | Value Equity Fund | Fund | ||||||||||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||||||||
$ | 3,929,543 | $ | 3,593,739 | $ | 1,904,206 | $ | 1,281,663 | $ | (2,092,663 | ) | $ | (618,509 | ) | |||||||||
108,655,777 | 43,524,374 | 1,320,822 | 5,016,811 | 138,968,722 | 55,583,286 | |||||||||||||||||
(109,726,999 | ) | 14,394,606 | 321,112 | 2,429,437 | (96,092,383 | ) | 125,772,041 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
2,858,321 | 61,512,719 | 3,546,140 | 8,727,911 | 40,783,676 | 180,736,818 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(247,243 | ) | (140,745 | ) | (164,833 | ) | (55,055 | ) | — | (207,260 | ) | ||||||||||||
(2,510,139 | ) | (2,605,938 | ) | (294,991 | ) | (1,093,905 | ) | (19,330,945 | ) | (29,265,628 | ) | |||||||||||
— | — | (490 | ) | (1,606 | ) | — | — | |||||||||||||||
(79,254 | ) | (123,396 | ) | (9,790 | ) | (49,225 | ) | (411,768 | ) | (960,978 | ) | |||||||||||
(4,312 | ) | (2,748 | ) | (887 | ) | (1,190 | ) | — | — | |||||||||||||
(313,445 | ) | (141,366 | ) | (9,874 | ) | (30,133 | ) | (7,118,548 | ) | (11,071,485 | ) | |||||||||||
(5,881,265 | ) | (2,646,984 | ) | (2,133,120 | ) | (753,496 | ) | — | (969,508 | ) | ||||||||||||
(41,702,231 | ) | (36,008,422 | ) | (3,571,652 | ) | (13,333,662 | ) | (26,427,999 | ) | (46,533,186 | ) | |||||||||||
(1 | ) | (1 | ) | (2 | ) | (1 | ) | — | — | |||||||||||||
(12 | ) | (11 | ) | (5 | ) | (20 | ) | (2,187 | ) | (47,139 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(50,737,902 | ) | (41,669,611 | ) | (6,185,644 | ) | (15,318,293 | ) | (53,291,447 | ) | (89,055,184 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(66,636,304 | ) | 135,969,476 | (3,137,288 | ) | 26,465,817 | (150,495,703 | ) | 150,124,321 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(114,515,885 | ) | 155,812,584 | (5,776,792 | ) | 19,875,435 | (163,003,474 | ) | 241,805,955 | ||||||||||||||
743,841,648 | 588,029,064 | 131,328,130 | 111,452,695 | 1,067,350,315 | 825,544,360 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 629,325,763 | $ | 743,841,648 | $ | 125,551,338 | $ | 131,328,130 | $ | 904,346,841 | $ | 1,067,350,315 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 176,187 | $ | 2,379,480 | $ | 154,817 | $ | 603,308 | $ | — | $ | — | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
117
Sterling Capital Funds |
Statements of Changes in Net Assets (continued) |
Sterling Capital | ||||||||
Equity Income Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 30,577,629 | $ | 36,515,450 | ||||
Net realized gain (loss) | 95,927,171 | 42,440,987 | ||||||
Change in unrealized appreciation/depreciation | (184,331,736 | ) | 104,810,881 | |||||
|
|
|
| |||||
Change in net assets from operations | (57,826,936 | ) | 183,767,318 | |||||
|
|
|
| |||||
Distributions to Class A Shareholders From: | ||||||||
Net investment income | (9,860,486 | ) | (11,973,021 | ) | ||||
Net realized gains | (17,395,887 | ) | (24,139,542 | ) | ||||
Distributions to Class B Shareholders From: | ||||||||
Net investment income | (50,462 | ) | (74,887 | ) | ||||
Net realized gains | (186,425 | ) | (332,882 | ) | ||||
Distributions to Class C Shareholders From: | ||||||||
Net investment income | (3,076,571 | ) | (2,855,498 | ) | ||||
Net realized gains | (8,563,173 | ) | (10,047,039 | ) | ||||
Distributions to Institutional Class Shareholders From: | ||||||||
Net investment income | (18,447,955 | ) | (18,697,858 | ) | ||||
Net realized gains | (27,425,380 | ) | (32,827,700 | ) | ||||
Distributions to Class R Shareholders From: | ||||||||
Net investment income | (29,820 | ) | (38,520 | ) | ||||
Net realized gains | (48,537 | ) | (102,702 | ) | ||||
|
|
|
| |||||
Change in net assets from shareholder distributions | (85,084,696 | ) | (101,089,649 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | (363,515,354 | ) | 74,603,686 | |||||
|
|
|
| |||||
Change in net assets | (506,426,986 | ) | 157,281,355 | |||||
Net Assets: | ||||||||
Beginning of period | 2,077,745,121 | 1,920,463,766 | ||||||
|
|
|
| |||||
End of period | $ | 1,571,318,135 | $ | 2,077,745,121 | ||||
|
|
|
| |||||
Undistributed (distributions in excess of) net investment income (loss) | $ | 2,252,541 | $ | 1,949,676 | ||||
|
|
|
|
|
* Commencement of operations.
See accompanying Notes to the Financial Statements.
118
XXUPDATEXXX |
|
|
Sterling Capital | Sterling Capital | Sterling Capital | ||||||||||||||||
Long/Short | Behavioral International | Ultra Short | ||||||||||||||||
Equity Fund | Equity Fund | Bond Fund | ||||||||||||||||
For the Year Ended September 30, 2015 | For the Period December 13, 2013* to September 30, 2014 | For the Period November 28, 2014* to September 30, 2015 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | ||||||||||||||
$ | (1,773,049 | ) | $ | (786,946 | ) | $ | 537,691 | $ | 299,908 | $ | 378,982 | |||||||
1,710,584 | 3,093,504 | (1,069,214 | ) | (9,340 | ) | (18,936 | ) | |||||||||||
(19,605,549 | ) | 2,842,179 | (866,313 | ) | (118,860 | ) | (119,278 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(19,668,014 | ) | 5,148,737 | (1,397,836 | ) | 171,708 | 240,768 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | (232 | ) | (78,927 | ) | (88,110 | ) | |||||||||||
(72,426 | ) | — | — | — | — | |||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | (2 | ) | — | — | |||||||||||||
(11,557 | ) | — | — | — | — | |||||||||||||
— | — | (64,536 | ) | (473,901 | ) | (349,455 | ) | |||||||||||
(3,014,603 | ) | — | — | — | — | |||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(3,098,586 | ) | — | (64,770 | ) | (552,828 | ) | (437,565 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
18,863,488 | 102,672,036 | 20,614,473 | (14,321,152 | ) | 4,426,032 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(3,903,112 | ) | 107,820,773 | 19,151,867 | (14,702,272 | ) | 4,229,235 | ||||||||||||
107,820,773 | — | — | 58,380,936 | 54,151,701 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 103,917,661 | $ | 107,820,773 | $ | 19,151,867 | $ | 43,678,664 | $ | 58,380,936 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | — | $ | 391,171 | $ | (1,971 | ) | $ | (5,207 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
119
Sterling Capital Funds |
Statements of Changes in Net Assets (continued) |
Sterling Capital | ||||||||||
Short Duration | ||||||||||
Bond Fund | ||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||
From Investment Activities: | ||||||||||
Operations: | ||||||||||
Net investment income | $ | 1,236,409 | $ | 1,457,301 | ||||||
Net realized gain (loss) | (326,041 | ) | (26,707 | ) | ||||||
Change in unrealized appreciation/depreciation | (235,357 | ) | (296,822 | ) | ||||||
|
|
|
| |||||||
Change in net assets from operations | 675,011 | 1,133,772 | ||||||||
|
|
|
| |||||||
Distributions to Class A Shareholders From: | ||||||||||
Net investment income | (275,128 | ) | (348,922 | ) | ||||||
Net realized gains | — | — | ||||||||
Return of capital | — | — | ||||||||
Distributions to Class B Shareholders From: | ||||||||||
Net investment income | — | — | ||||||||
Net realized gains | — | — | ||||||||
Distributions to Class C Shareholders From: | ||||||||||
Net investment income | (48,158 | ) | (21,912 | ) | ||||||
Net realized gains | — | — | ||||||||
Return of capital | — | — | ||||||||
Distributions to Institutional Class Shareholders From: | ||||||||||
Net investment income | (2,511,205 | ) | (2,397,203 | ) | ||||||
Net realized gains | — | — | ||||||||
Return of capital | — | — | ||||||||
Distributions to Class R Shareholders From: | ||||||||||
Net investment income | — | — | ||||||||
Net realized gains | — | — | ||||||||
|
|
|
| |||||||
Change in net assets from shareholder distributions | (2,834,491 | ) | (2,768,037 | ) | ||||||
|
|
|
| |||||||
Capital Transactions: | ||||||||||
Change in net assets from capital transactions | (2,540,713 | ) | 18,731,775 | |||||||
|
|
|
| |||||||
Change in net assets | (4,700,193 | ) | 17,097,510 | |||||||
Net Assets: | ||||||||||
Beginning of year | 93,579,875 | 76,482,365 | ||||||||
|
|
|
| |||||||
End of year | $ | 88,879,682 | $ | 93,579,875 | ||||||
|
|
|
| |||||||
Undistributed (distributions in excess of) net investment income | $ | (9,326 | ) | $ | (13,873 | ) | ||||
|
|
|
|
See accompanying Notes to the Financial Statements.
120
|
|
Sterling Capital Intermediate U.S. Government Fund | Sterling Capital Total Return Bond Fund | Sterling Capital Corporate Fund | ||||||||||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||||||||
$ | 482,920 | $ | 648,247 | $ | 18,970,600 | $ | 14,505,600 | $ | 1,863,004 | $ | 2,120,200 | |||||||||||
300,814 | 611,948 | 384,257 | 2,925,519 | (134,816 | ) | 523,009 | ||||||||||||||||
(210,070 | ) | (220,964 | ) | (6,339,132 | ) | 6,225,213 | (825,504 | ) | 1,043,688 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
573,664 | 1,039,231 | 13,015,725 | 23,656,332 | 902,684 | 3,686,897 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(195,671 | ) | (301,935 | ) | (1,509,771 | ) | (1,406,246 | ) | (8,731 | ) | (6,604 | ) | |||||||||||
— | — | — | (33,246 | ) | (295 | ) | (1,774 | ) | ||||||||||||||
— | — | — | — | (147 | ) | — | ||||||||||||||||
(2,554 | ) | (9,364 | ) | (31,362 | ) | (46,603 | ) | — | — | |||||||||||||
— | — | — | (1,493 | ) | — | — | ||||||||||||||||
(9,428 | ) | (21,704 | ) | (155,968 | ) | (141,146 | ) | (184 | ) | (173 | ) | |||||||||||
— | — | — | (4,242 | ) | (9 | ) | (152 | ) | ||||||||||||||
— | — | — | — | (3 | ) | — | ||||||||||||||||
(475,820 | ) | (1,045,318 | ) | (21,390,337 | ) | (15,766,791 | ) | (1,823,294 | ) | (2,113,419 | ) | |||||||||||
— | — | — | (333,852 | ) | (60,169 | ) | (788,915 | ) | ||||||||||||||
— | — | — | — | (30,642 | ) | — | ||||||||||||||||
— | — | (173 | ) | (183 | ) | — | — | |||||||||||||||
— | — | — | (4 | ) | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(683,473 | ) | (1,378,321 | ) | (23,087,611 | ) | (17,733,806 | ) | (1,923,474 | ) | (2,911,037 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(2,657,019 | ) | (25,146,872 | ) | 198,918,590 | (13,487,015 | ) | 14,740,001 | (35,930,274 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(2,766,828 | ) | (25,485,962 | ) | 188,846,704 | (7,564,489 | ) | 13,719,211 | (35,154,414 | ) | |||||||||||||
32,984,719 | 58,470,681 | 479,160,937 | 486,725,426 | 50,629,778 | 85,784,192 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 30,217,891 | $ | 32,984,719 | $ | 668,007,641 | $ | 479,160,937 | $ | 64,348,989 | $ | 50,629,778 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 189,582 | $ | 179,729 | $ | 304,909 | $ | 450,589 | $ | (442 | ) | $ | (29,685 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
121
Sterling Capital Funds |
Statements of Changes in Net Assets (continued) |
Sterling Capital Securitized Opportunities Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 951,039 | $ | 993,910 | ||||
Net realized gain | 149,237 | 57,805 | ||||||
Change in unrealized appreciation/depreciation | 292,812 | 420,142 | ||||||
|
|
|
| |||||
Change in net assets from operations | 1,393,088 | 1,471,857 | ||||||
|
|
|
| |||||
Distributions to Class A Shareholders From: | ||||||||
Net investment income | (2,743 | ) | (1,931 | ) | ||||
Net realized gains | — | — | ||||||
Distributions to Class C Shareholders From: | ||||||||
Net investment income | (687 | ) | (137 | ) | ||||
Net realized gains | — | — | ||||||
Distributions to Institutional Class Shareholders From: | ||||||||
Net investment income | (1,150,964 | ) | (1,227,217 | ) | ||||
Net realized gains | — | — | ||||||
|
|
|
| |||||
Change in net assets from shareholder distributions | (1,154,394 | ) | (1,229,285 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | 9,425,368 | (22,037,743 | ) | |||||
|
|
|
| |||||
Change in net assets | 9,664,062 | (21,795,171 | ) | |||||
Net Assets: | ||||||||
Beginning of year | 36,748,536 | 58,543,707 | ||||||
|
|
|
| |||||
End of year | $ | 46,412,598 | $ | 36,748,536 | ||||
|
|
|
| |||||
Undistributed (distributions in excess of) net investment income | $ | — | $ | (353 | ) | |||
|
|
|
|
See accompanying Notes to the Financial Statements.
122
|
|
Sterling Capital Kentucky Intermediate Tax-Free Fund | Sterling Capital Maryland Intermediate Tax-Free Fund | Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||||||||
$ | 374,662 | $ | 437,419 | $ | 746,392 | $ | 765,915 | $ | 4,722,447 | $ | 5,009,338 | |||||||||||
208,252 | 222,100 | 216,610 | 302,682 | 1,061,019 | 1,003,866 | |||||||||||||||||
(281,514 | ) | 68,244 | (234,543 | ) | 674,535 | (1,034,641 | ) | 3,550,954 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
301,400 | 727,763 | 728,459 | 1,743,132 | 4,748,825 | 9,564,158 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(108,101 | ) | (130,277 | ) | (123,134 | ) | (126,420 | ) | (1,024,534 | ) | (1,144,192 | ) | |||||||||||
(75,342 | ) | — | (33,661 | ) | — | (76,229 | ) | — | ||||||||||||||
(318 | ) | (1,066 | ) | (7,677 | ) | (8,734 | ) | (46,711 | ) | (53,304 | ) | |||||||||||
(319 | ) | — | (3,482 | ) | — | (5,096 | ) | — | ||||||||||||||
(266,191 | ) | (303,745 | ) | (613,407 | ) | (628,771 | ) | (3,648,473 | ) | (3,803,406 | ) | |||||||||||
(171,504 | ) | — | (147,308 | ) | — | (241,858 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(621,775 | ) | (435,088 | ) | (928,669 | ) | (763,925 | ) | (5,042,901 | ) | (5,000,902 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(761,209 | ) | (2,901,179 | ) | (1,254,247 | ) | (6,765,866 | ) | (5,924,173 | ) | (21,237,128 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(1,081,584 | ) | (2,608,504 | ) | (1,454,457 | ) | (5,786,659 | ) | (6,218,249 | ) | (16,673,872 | ) | |||||||||||
15,166,496 | 17,775,000 | 38,028,988 | 43,815,647 | 202,556,661 | 219,230,533 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 14,084,912 | $ | 15,166,496 | $ | 36,574,531 | $ | 38,028,988 | $ | 196,338,412 | $ | 202,556,661 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 12,184 | $ | 3,076 | $ | 3,676 | $ | 3,672 | $ | 82,181 | $ | 82,139 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
123
Sterling Capital Funds |
Statements of Changes in Net Assets (continued) |
Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,489,941 | $ | 1,487,051 | ||||
Net realized gain | 275,258 | 307,218 | ||||||
Change in unrealized appreciation/depreciation | (167,796 | ) | 1,449,008 | |||||
|
|
|
| |||||
Change in net assets from operations | 1,597,403 | 3,243,277 | ||||||
|
|
|
| |||||
Distributions to Class A Shareholders From: | ||||||||
Net investment income | (331,220 | ) | (379,363 | ) | ||||
Net realized gains | (27,810 | ) | — | |||||
Distributions to Class C Shareholders From: | ||||||||
Net investment income | (18,902 | ) | (15,349 | ) | ||||
Net realized gains | (2,712 | ) | — | |||||
Distributions to Institutional Class Shareholders From: | ||||||||
Net investment income | (1,140,264 | ) | (1,087,595 | ) | ||||
Net realized gains | (81,197 | ) | — | |||||
|
|
|
| |||||
Change in net assets from shareholder distributions | (1,602,105 | ) | (1,482,307 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | 8,086,043 | (5,199,017 | ) | |||||
|
|
|
| |||||
Change in net assets | 8,081,341 | (3,438,047 | ) | |||||
Net Assets: | ||||||||
Beginning of year | 68,368,990 | 71,807,037 | ||||||
|
|
|
| |||||
End of year | $ | 76,450,331 | $ | 68,368,990 | ||||
|
|
|
| |||||
Undistributed (distributions in excess of) net investment income | $ | 26,999 | $ | 27,424 | ||||
|
|
|
|
See accompanying Notes to the Financial Statements.
124
|
|
Sterling Capital Virginia Intermediate Tax-Free Fund | Sterling Capital West Virginia Intermediate Tax-Free Fund | |||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||
$ | 2,686,997 | $ | 2,732,006 | $ | 2,352,587 | $ | 2,446,499 | |||||||
412,758 | 1,189,906 | 478,892 | 343,688 | |||||||||||
(553,965 | ) | 1,580,135 | (374,084 | ) | 2,327,286 | |||||||||
|
|
|
|
|
|
|
| |||||||
2,545,790 | 5,502,047 | 2,457,395 | 5,117,473 | |||||||||||
|
|
|
|
|
|
|
| |||||||
(813,175 | ) | (904,521 | ) | (748,083 | ) | (770,455 | ) | |||||||
(222,245 | ) | — | (90,668 | ) | — | |||||||||
(17,657 | ) | (26,906 | ) | (5,266 | ) | (9,726 | ) | |||||||
(7,394 | ) | — | (1,175 | ) | — | |||||||||
(1,856,397 | ) | (1,800,259 | ) | (1,585,389 | ) | (1,647,846 | ) | |||||||
(438,730 | ) | — | (180,075 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||
(3,355,598 | ) | (2,731,686 | ) | (2,610,656 | ) | (2,428,027 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(5,282,537 | ) | (11,262,105 | ) | (3,362,373 | ) | (3,734,980 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(6,092,345 | ) | (8,491,744 | ) | (3,515,634 | ) | (1,045,534 | ) | |||||||
122,514,766 | 131,006,510 | 105,919,643 | 106,965,177 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 116,422,421 | $ | 122,514,766 | $ | 102,404,009 | $ | 105,919,643 | |||||||
|
|
|
|
|
|
|
| |||||||
$ | 62,618 | $ | 62,918 | $ | 67,571 | $ | (16,917 | ) | ||||||
|
|
|
|
|
|
|
|
125
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued) |
Sterling Capital Diversified Income Fund | ||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||
From Investment Activities: | ||||||||||
Operations: | ||||||||||
Net investment income | $ | 804,830 | $ | 391,878 | ||||||
Net realized gain | 1,545,401 | 597,313 | ||||||||
Change in unrealized appreciation/depreciation | (3,944,009 | ) | 596,232 | |||||||
|
|
|
| |||||||
Change in net assets from operations | (1,593,778 | ) | 1,585,423 | |||||||
|
|
|
| |||||||
Distributions to Class A Shareholders From: | ||||||||||
Net investment income | (334,461 | ) | (341,093 | ) | ||||||
Distributions to Class B Shareholders From: | ||||||||||
Net investment income | (10,148 | ) | (13,314 | ) | ||||||
Distributions to Class C Shareholders From: | ||||||||||
Net investment income | (8,832 | ) | (4,723 | ) | ||||||
Distributions to Institutional Class Shareholders From: | ||||||||||
Net investment income | (391,658 | ) | (56,009 | ) | ||||||
|
|
|
| |||||||
Change in net assets from shareholder distributions | (745,099 | ) | (415,139 | ) | ||||||
|
|
|
| |||||||
Capital Transactions: | ||||||||||
Change in net assets from capital transactions | 26,877,456 | (978,718 | ) | |||||||
|
|
|
| |||||||
Change in net assets | 24,538,579 | 191,566 | ||||||||
Net Assets: | ||||||||||
Beginning of year | 18,987,126 | 18,795,560 | ||||||||
|
|
|
| |||||||
End of year | $ | 43,525,705 | $ | 18,987,126 | ||||||
|
|
|
| |||||||
Undistributed net investment income | $ | 127,669 | $ | 9,185 | ||||||
|
|
|
|
See accompanying Notes to the Financial Statements.
126
Sterling Capital Strategic Allocation Balanced Fund | Sterling Capital Strategic Allocation Growth Fund | |||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||
$ | 429,275 | $ | 583,182 | $ | 174,106 | $ | 314,044 | |||||||
3,050,374 | 1,611,303 | 2,584,952 | 1,587,350 | |||||||||||
(4,123,398 | ) | 1,619,133 | (3,515,566 | ) | 1,321,207 | |||||||||
|
|
|
|
|
|
|
| |||||||
(643,749 | ) | 3,813,618 | (756,508 | ) | 3,222,601 | |||||||||
|
|
|
|
|
|
|
| |||||||
(492,183 | ) | (597,476 | ) | (228,424 | ) | (321,875 | ) | |||||||
(9,918 | ) | (24,798 | ) | (6,950 | ) | (15,019 | ) | |||||||
(5,115 | ) | (6,728 | ) | (2,384 | ) | (3,265 | ) | |||||||
(3,244 | ) | (5,338 | ) | (11,458 | ) | (13,068 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(510,460 | ) | (634,340 | ) | (249,216 | ) | (353,227 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(1,424,319 | ) | 407,613 | (203,780 | ) | (2,197,126 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||
(2,578,528 | ) | 3,586,891 | (1,209,504 | ) | 672,248 | |||||||||
38,378,898 | 34,792,007 | 26,950,158 | 26,277,910 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 35,800,370 | $ | 38,378,898 | $ | 25,740,654 | $ | 26,950,158 | |||||||
|
|
|
|
|
|
|
| |||||||
$ | 20,031 | $ | 19,608 | $ | 10,031 | $ | 13,309 | |||||||
|
|
|
|
|
|
|
|
127
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued) |
Sterling Capital Behavioral Large Cap Value Equity Fund | |||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | ||||||||||||
Capital Transactions: | |||||||||||||
Class A Shares: | |||||||||||||
Proceeds from shares issued | $ | 2,614,509 | $ | 2,729,743 | |||||||||
Distributions reinvested | 447,660 | 320,064 | |||||||||||
Value of shares redeemed | (5,136,006 | ) | (3,539,247 | ) | |||||||||
|
|
|
| ||||||||||
Change in net assets from Class A Share transactions | (2,073,837 | ) | (489,440 | ) | |||||||||
Class B Shares: | |||||||||||||
Proceeds from shares issued | 7,486 | 1,745 | |||||||||||
Distributions reinvested | 3,968 | 2,858 | |||||||||||
Value of shares redeemed | (458,373 | ) | (514,057 | ) | |||||||||
|
|
|
| ||||||||||
Change in net assets from Class B Share transactions | (446,919 | ) | (509,454 | ) | |||||||||
Class C Shares: | |||||||||||||
Proceeds from shares issued | 438,703 | 327,653 | |||||||||||
Distributions reinvested | 3,637 | 1,269 | |||||||||||
Value of shares redeemed | (122,888 | ) | (53,570 | ) | |||||||||
|
|
|
| ||||||||||
Change in net assets from Class C Share transactions | 319,452 | 275,352 | |||||||||||
Institutional Shares: | |||||||||||||
Proceeds from shares issued | 20,184,490 | 15,076,742 | |||||||||||
Distributions reinvested | 3,816,267 | 2,753,320 | |||||||||||
Value of shares redeemed | (28,099,724 | ) | (20,115,224 | ) | |||||||||
|
|
|
| ||||||||||
Change in net assets from Institutional Share transactions | (4,098,967 | ) | (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 | $ | (6,300,271 | ) | $ | (3,008,704 | ) | |||||||
|
|
|
| ||||||||||
Share Transactions: | |||||||||||||
Class A Shares: | |||||||||||||
Issued | 146,143 | 169,206 | |||||||||||
Reinvested | 25,402 | 19,458 | |||||||||||
Redeemed | (287,021 | ) | (219,138 | ) | |||||||||
|
|
|
| ||||||||||
Change in Class A Shares | (115,476 | ) | (30,474 | ) | |||||||||
Class B Shares: | |||||||||||||
Issued | 430 | 107 | |||||||||||
Reinvested | 227 | 182 | |||||||||||
Redeemed | (26,085 | ) | (32,514 | ) | |||||||||
|
|
|
| ||||||||||
Change in Class B Shares | (25,428 | ) | (32,225 | ) | |||||||||
Class C Shares: | |||||||||||||
Issued | 25,212 | 20,716 | |||||||||||
Reinvested | 212 | 81 | |||||||||||
Redeemed | (7,175 | ) | (3,397 | ) | |||||||||
|
|
|
| ||||||||||
Change in Class C Shares | 18,249 | 17,400 | |||||||||||
Institutional Shares: | |||||||||||||
Issued | 1,130,083 | 926,275 | |||||||||||
Reinvested | 215,497 | 166,138 | |||||||||||
Redeemed | (1,569,993 | ) | (1,238,787 | ) | |||||||||
|
|
|
| ||||||||||
Change in Institutional Shares | (224,413 | ) | (146,374 | ) | |||||||||
Class R Shares: | |||||||||||||
Issued | — | — | |||||||||||
Reinvested | — | — | |||||||||||
Redeemed | — | — | |||||||||||
|
|
|
| ||||||||||
Change in Class R Shares | — | — | |||||||||||
|
|
|
| ||||||||||
Change in Shares | (347,068 | ) | (191,673 | ) | |||||||||
|
|
|
|
(a) | Fractional share. |
See accompanying Notes to the Financial Statements.
128
Sterling Capital Mid Value Fund | Sterling Capital Behavioral Small Cap Value Equity Fund | Sterling Capital Special Opportunities Fund | ||||||||||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||||||||
$ | 3,995,030 | $ | 14,894,315 | $ | 6,293,476 | $ | 2,746,623 | $ | 62,671,497 | $ | 83,940,171 | |||||||||||
2,534,757 | 2,397,811 | 435,815 | 1,063,260 | 18,786,909 | 28,608,304 | |||||||||||||||||
(10,670,041 | ) | (13,183,438 | ) | (2,699,126 | ) | (2,469,520 | ) | (172,645,137 | ) | (48,852,920 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(4,140,254 | ) | 4,108,688 | 4,030,165 | 1,340,363 | (91,186,731 | ) | 63,695,555 | |||||||||||||||
6,419 | 30,181 | 965 | 16,589 | 14,852 | 130,062 | |||||||||||||||||
79,231 | 123,157 | 10,280 | 50,831 | 405,267 | 948,880 | |||||||||||||||||
(660,809 | ) | (896,374 | ) | (135,254 | ) | (147,024 | ) | (3,556,143 | ) | (2,958,194 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(575,159 | ) | (743,036 | ) | (124,009 | ) | (79,604 | ) | (3,136,024 | ) | (1,879,252 | ) | |||||||||||
1,973,415 | 3,682,358 | 130,839 | 152,544 | 33,010,471 | 16,522,834 | |||||||||||||||||
231,333 | 105,926 | 9,780 | 27,810 | 6,765,229 | 10,521,960 | |||||||||||||||||
(1,108,607 | ) | (466,272 | ) | (112,466 | ) | (67,104 | ) | (12,994,833 | ) | (9,956,584 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,096,141 | 3,322,012 | 28,153 | 113,250 | 26,780,867 | 17,088,210 | |||||||||||||||||
123,909,927 | 263,135,153 | 13,339,610 | 33,620,037 | 258,227,694 | 97,663,971 | |||||||||||||||||
44,182,703 | 35,681,479 | 5,662,040 | 13,982,036 | 23,151,425 | 40,817,740 | |||||||||||||||||
(231,109,674 | ) | (169,534,832 | ) | (26,073,254 | ) | (22,510,286 | ) | (364,352,863 | ) | (66,778,198 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(63,017,044 | ) | 129,281,800 | (7,071,604 | ) | 25,091,787 | (82,973,744 | ) | 71,703,513 | ||||||||||||||
— | — | — | — | 95,793 | 20,000 | |||||||||||||||||
12 | 12 | 7 | 21 | 1,665 | 46,550 | |||||||||||||||||
— | — | — | — | (77,529 | ) | (550,255 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
12 | 12 | 7 | 21 | 19,929 | (483,705 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (66,636,304 | ) | $ | 135,969,476 | $ | (3,137,288 | ) | $ | 26,465,817 | $ | (150,495,703 | ) | $ | 150,124,321 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
203,628 | 773,259 | 421,106 | 186,399 | 2,698,968 | 3,828,555 | |||||||||||||||||
134,503 | 129,239 | 29,897 | 75,057 | 850,856 | 1,439,506 | |||||||||||||||||
(543,986 | ) | (682,217 | ) | (181,097 | ) | (164,624 | ) | (7,659,540 | ) | (2,243,628 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(205,855 | ) | 220,281 | 269,906 | 96,832 | (4,109,716 | ) | 3,024,433 | |||||||||||||||
344 | 1,665 | 66 | 1,168 | 712 | 6,738 | |||||||||||||||||
4,517 | 7,066 | 732 | 3,694 | 20,614 | 52,951 | |||||||||||||||||
(36,079 | ) | (49,107 | ) | (9,250 | ) | (10,037 | ) | (171,412 | ) | (148,348 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(31,218 | ) | (40,376 | ) | (8,452 | ) | (5,175 | ) | (150,086 | ) | (88,659 | ) | |||||||||||
108,419 | 203,805 | 8,850 | 10,501 | 1,588,331 | 817,242 | |||||||||||||||||
13,237 | 6,086 | 699 | 2,023 | 343,762 | 586,508 | |||||||||||||||||
(61,255 | ) | (25,697 | ) | (7,727 | ) | (4,558 | ) | (622,148 | ) | (499,270 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
60,401 | 184,194 | 1,822 | 7,966 | 1,309,945 | 904,480 | |||||||||||||||||
6,305,423 | 13,488,582 | 884,167 | 2,225,741 | 10,967,320 | 4,239,993 | |||||||||||||||||
2,320,846 | 1,906,275 | 384,102 | 979,897 | 1,014,523 | 1,993,050 | |||||||||||||||||
(11,898,139 | ) | (8,687,532 | ) | (1,725,858 | ) | (1,493,001 | ) | (15,184,425 | ) | (2,932,065 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(3,271,870 | ) | 6,707,325 | (457,589 | ) | 1,712,637 | (3,202,582 | ) | 3,300,978 | ||||||||||||||
— | — | — | — | 4,055 | 830 | |||||||||||||||||
1 | 1 | — | (a) | 1 | 74 | 2,304 | ||||||||||||||||
— | — | — | — | (3,288 | ) | (22,726 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1 | 1 | — | 1 | 841 | (19,592 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(3,448,541 | ) | 7,071,425 | (194,313 | ) | 1,812,261 | (6,151,598 | ) | 7,121,640 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
129
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued)
|
Sterling Capital Equity Income Fund | ||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||
Capital Transactions: | ||||||||||
Class A Shares: | ||||||||||
Proceeds from shares issued | $ | 96,426,885 | $ | 186,958,403 | ||||||
Distributions reinvested | 25,697,968 | 33,625,596 | ||||||||
Value of shares redeemed | (313,978,501 | ) | (227,395,105 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Class A Share transactions | (191,853,648 | ) | (6,811,106 | ) | ||||||
Class B Shares: | ||||||||||
Proceeds from shares issued | 13,603 | 23,664 | ||||||||
Distributions reinvested | 232,254 | 399,020 | ||||||||
Value of shares redeemed | (3,495,236 | ) | (3,687,451 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Class B Share transactions | (3,249,379 | ) | (3,264,767 | ) | ||||||
Class C Shares: | ||||||||||
Proceeds from shares issued | 29,610,611 | 49,537,180 | ||||||||
Distributions reinvested | 10,900,826 | 12,055,353 | ||||||||
Value of shares redeemed | (51,663,697 | ) | (39,300,477 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Class C Share transactions | (11,152,260 | ) | 22,292,056 | |||||||
Institutional Shares: | ||||||||||
Proceeds from shares issued | 176,964,153 | 396,807,370 | ||||||||
Distributions reinvested | 40,823,997 | 43,949,941 | ||||||||
Value of shares redeemed | (375,371,954 | ) | (377,238,376 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Institutional Share transactions | (157,583,804 | ) | 63,518,935 | |||||||
Class R Shares: | ||||||||||
Proceeds from shares issued | 558,881 | 638,289 | ||||||||
Distributions reinvested | 78,357 | 136,341 | ||||||||
Value of shares redeemed | (313,501 | ) | (1,906,062 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Class R Share transactions | 323,737 | (1,131,432 | ) | |||||||
|
|
|
| |||||||
Change in net assets from capital transactions | $ | (363,515,354 | ) | $ | 74,603,686 | |||||
|
|
|
| |||||||
Share Transactions: | ||||||||||
Class A Shares: | ||||||||||
Issued | 5,125,334 | 10,002,372 | ||||||||
Reinvested | 1,399,852 | 1,822,457 | ||||||||
Redeemed | (16,667,881 | ) | (12,150,789 | ) | ||||||
|
|
|
| |||||||
Change in Class A Shares | (10,142,695 | ) | (325,960 | ) | ||||||
Class B Shares: | ||||||||||
Issued | 720 | 1,273 | ||||||||
Reinvested | 12,678 | 21,807 | ||||||||
Redeemed | (186,907 | ) | (196,602 | ) | ||||||
|
|
|
| |||||||
Change in Class B Shares | (173,509 | ) | (173,522 | ) | ||||||
Class C Shares: | ||||||||||
Issued | 1,598,787 | 2,666,495 | ||||||||
Reinvested | 599,348 | 661,287 | ||||||||
Redeemed | (2,774,922 | ) | (2,111,841 | ) | ||||||
|
|
|
| |||||||
Change in Class C Shares | (576,787 | ) | 1,215,941 | |||||||
Institutional Shares: | ||||||||||
Issued | 9,468,157 | 20,924,144 | ||||||||
Reinvested | 2,218,624 | 2,373,645 | ||||||||
Redeemed | (19,907,095 | ) | (20,134,041 | ) | ||||||
|
|
|
| |||||||
Change in Institutional Shares | (8,220,314 | ) | 3,163,748 | |||||||
Class R Shares: | ||||||||||
Issued | 29,720 | 34,332 | ||||||||
Reinvested | 4,298 | 7,445 | ||||||||
Redeemed | (16,676 | ) | (99,742 | ) | ||||||
|
|
|
| |||||||
Change in Class R Shares | 17,342 | (57,965 | ) | |||||||
|
|
|
| |||||||
Change in Shares | (19,095,963 | ) | 3,822,242 | |||||||
|
|
|
|
* Commencement of operations.
See accompanying Notes to the Financial Statements.
130
XXUPDATEXXX
|
Sterling Capital Long/Short Equity Fund | Sterling Capital Behavioral International Equity Fund | Sterling Capital Ultra Short Bond Fund | ||||||||||||||||
For the Year Ended September 30, 2015 | For the Period December 13, 2013* to September 30, 2014 | For the Period November 28, 2014* to September 30, 2015 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | ||||||||||||||
$ | 986,187 | $ | 2,462,721 | $ | 586,586 | $ | 10,746,221 | $ | 13,313,585 | |||||||||
60,355 | — | 232 | 68,470 | 44,792 | ||||||||||||||
(1,777,119 | ) | (29,243 | ) | (149 | ) | (13,633,265 | ) | (15,655,271 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(730,577 | ) | 2,433,478 | 586,669 | (2,818,574 | ) | (2,296,894 | ) | |||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | — | — | — | ||||||||||||||
273,042 | 332,128 | 58,909 | — | — | ||||||||||||||
10,371 | — | 2 | — | — | ||||||||||||||
(124,040 | ) | — | (26,318 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
159,373 | 332,128 | 32,593 | — | — | ||||||||||||||
87,912,677 | 126,735,146 | 26,452,117 | 11,100,036 | 11,334,014 | ||||||||||||||
1,447,368 | — | 129 | 437,754 | 256,316 | ||||||||||||||
(69,925,353 | ) | (26,828,716 | ) | (6,457,035 | ) | (23,040,368 | ) | (4,867,404 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
19,434,692 | 99,906,430 | 19,995,211 | (11,502,578 | ) | 6,722,926 | |||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 18,863,488 | $ | 102,672,036 | $ | 20,614,473 | $ | (14,321,152 | ) | $ | 4,426,032 | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
98,964 | 226,214 | 57,632 | 1,083,791 | 1,335,400 | ||||||||||||||
6,171 | — | 24 | 6,912 | 4,494 | ||||||||||||||
(181,333 | ) | (2,663 | ) | (16 | ) | (1,375,048 | ) | (1,570,736 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(76,198 | ) | 223,551 | 57,640 | (284,345 | ) | (230,842 | ) | |||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | — | — | — | ||||||||||||||
27,148 | 30,439 | 5,627 | — | — | ||||||||||||||
1,068 | — | — | — | — | ||||||||||||||
(12,722 | ) | — | (2,556 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
15,494 | 30,439 | 3,071 | — | — | ||||||||||||||
8,840,835 | 12,077,967 | 2,645,568 | 1,119,396 | 1,138,349 | ||||||||||||||
147,540 | — | 13 | 44,220 | 25,719 | ||||||||||||||
(7,135,189 | ) | (2,462,656 | ) | (632,437 | ) | (2,323,600 | ) | (488,049 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,853,186 | 9,615,311 | 2,013,144 | (1,159,984 | ) | 676,019 | |||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,792,482 | 9,869,301 | 2,073,855 | (1,444,329 | ) | 445,177 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
131
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued) |
Sterling Capital Short Duration Bond Fund | ||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||
Capital Transactions: | ||||||||||
Class A Shares: | ||||||||||
Proceeds from shares issued | $ | 1,780,844 | $ | 2,796,080 | ||||||
Distributions reinvested | 195,572 | 289,998 | ||||||||
Value of shares redeemed | (4,147,988 | ) | (6,231,598 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Class A Share transactions | (2,171,572 | ) | (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 | 866,184 | 1,685,718 | ||||||||
Distributions reinvested | 38,764 | 19,814 | ||||||||
Value of shares redeemed | (340,975 | ) | (332,368 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Class C Share transactions | 563,973 | 1,373,164 | ||||||||
Institutional Shares: | ||||||||||
Proceeds from shares issued | 40,419,740 | 40,964,366 | ||||||||
Distributions reinvested | 723,318 | 550,059 | ||||||||
Value of shares redeemed | (42,076,172 | ) | (21,010,294 | ) | ||||||
|
|
|
| |||||||
Change in net assets from Institutional Share transactions | (933,114 | ) | 20,504,131 | |||||||
Class R Shares: | ||||||||||
Proceeds from shares issued | — | — | ||||||||
Distributions reinvested | — | — | ||||||||
|
|
|
| |||||||
Change in net assets from Class R Share transactions | — | — | ||||||||
|
|
|
| |||||||
Change in net assets from capital transactions | $ | (2,540,713 | ) | $ | 18,731,775 | |||||
|
|
|
| |||||||
Share Transactions: | ||||||||||
Class A Shares: | ||||||||||
Issued | 198,119 | 304,275 | ||||||||
Reinvested | 21,793 | 31,571 | ||||||||
Redeemed | (462,323 | ) | (676,991 | ) | ||||||
|
|
|
| |||||||
Change in Class A Shares | (242,411 | ) | (341,145 | ) | ||||||
Class B Shares: | ||||||||||
Issued | — | — | ||||||||
Reinvested | — | — | ||||||||
Redeemed | — | — | ||||||||
|
|
|
| |||||||
Change in Class B Shares | — | — | ||||||||
Class C Shares: | ||||||||||
Issued | 96,176 | 184,006 | ||||||||
Reinvested | 4,326 | 2,165 | ||||||||
Redeemed | (37,932 | ) | (36,183 | ) | ||||||
|
|
|
| |||||||
Change in Class C Shares | 62,570 | 149,988 | ||||||||
Institutional Shares: | ||||||||||
Issued | 4,499,707 | 4,455,646 | ||||||||
Reinvested | 80,754 | 59,934 | ||||||||
Redeemed | (4,683,385 | ) | (2,287,879 | ) | ||||||
|
|
|
| |||||||
Change in Institutional Shares | (102,924 | ) | 2,227,701 | |||||||
Class R Shares: | ||||||||||
Issued | — | — | ||||||||
Reinvested | — | — | ||||||||
|
|
|
| |||||||
Change in Class R Shares | — | — | ||||||||
|
|
|
| |||||||
Change in Shares | (282,765 | ) | 2,036,544 | |||||||
|
|
|
|
See accompanying Notes to the Financial Statements.
132
XXUPDATEXXX |
Sterling Capital Intermediate U.S. Government Fund | Sterling Capital Total Return Bond Fund | Sterling Capital Corporate Fund | ||||||||||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||||||||
$ | 5,617,921 | $ | 668,955 | $ | 17,808,421 | $ | 3,624,543 | $ | 102,581 | $ | 100,131 | |||||||||||
176,965 | 268,715 | 1,313,403 | 1,284,323 | 8,740 | 7,900 | |||||||||||||||||
(6,858,288 | ) | (2,248,870 | ) | (9,566,217 | ) | (9,287,592 | ) | (25,718 | ) | (1,500 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(1,063,402 | ) | (1,311,200 | ) | 9,555,607 | (4,378,726 | ) | 85,603 | 106,531 | ||||||||||||||
4,242 | — | 61,690 | — | — | — | |||||||||||||||||
2,500 | 9,156 | 29,761 | 46,598 | — | — | |||||||||||||||||
(103,686 | ) | (274,607 | ) | (601,269 | ) | (561,667 | ) | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(96,944 | ) | (265,451 | ) | (509,818 | ) | (515,069 | ) | — | — | |||||||||||||
45,149 | 47,825 | 1,912,192 | 2,108,348 | — | 6,000 | |||||||||||||||||
9,045 | 20,583 | 121,462 | 130,446 | 196 | 301 | |||||||||||||||||
(100,278 | ) | (318,297 | ) | (1,155,506 | ) | (2,088,583 | ) | — | (12,363 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(46,084 | ) | (249,889 | ) | 878,148 | 150,211 | 196 | (6,062 | ) | ||||||||||||||
9,866,530 | 6,828,941 | 310,192,582 | 107,996,986 | 32,047,361 | 16,138,437 | |||||||||||||||||
161,461 | 404,001 | 13,629,682 | 8,479,710 | 1,854,765 | 2,177,776 | |||||||||||||||||
(11,478,580 | ) | (30,553,274 | ) | (134,827,838 | ) | (125,220,314 | ) | (19,247,924 | ) | (54,346,956 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(1,450,589 | ) | (23,320,332 | ) | 188,994,426 | (8,743,618 | ) | 14,654,202 | (36,030,743 | ) | |||||||||||||
— | — | 54 | — | — | — | |||||||||||||||||
— | — | 173 | 187 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
— | — | 227 | 187 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (2,657,019 | ) | $ | (25,146,872 | ) | $ | 198,918,590 | $ | (13,487,015 | ) | $ | 14,740,001 | $ | (35,930,274 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
545,502 | 65,306 | 1,661,183 | 339,856 | 9,931 | 9,780 | |||||||||||||||||
17,275 | 26,203 | 123,015 | 120,618 | 854 | 772 | |||||||||||||||||
(675,060 | ) | (219,418 | ) | (898,029 | ) | (874,264 | ) | (2,527 | ) | (149 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(112,283 | ) | (127,909 | ) | 886,169 | (413,790 | ) | 8,258 | 10,403 | ||||||||||||||
417 | — | 5,720 | — | — | — | |||||||||||||||||
245 | 896 | 2,781 | 4,374 | — | — | |||||||||||||||||
(10,149 | ) | (26,875 | ) | (56,277 | ) | (52,798 | ) | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(9,487 | ) | (25,979 | ) | (47,776 | ) | (48,424 | ) | — | — | |||||||||||||
4,418 | 4,682 | 177,979 | 197,506 | — | 580 | |||||||||||||||||
884 | 2,010 | 11,360 | 12,231 | 19 | 30 | |||||||||||||||||
(9,774 | ) | (30,981 | ) | (108,440 | ) | (196,250 | ) | — | (1,229 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(4,472 | ) | (24,289 | ) | 80,899 | 13,487 | 19 | (619 | ) | ||||||||||||||
963,312 | 665,253 | 28,947,287 | 10,148,845 | 3,125,906 | 1,575,945 | |||||||||||||||||
15,746 | 39,338 | 1,275,687 | 795,588 | 181,138 | 213,127 | |||||||||||||||||
(1,120,290 | ) | (2,973,132 | ) | (12,661,006 | ) | (11,810,416 | ) | (1,881,928 | ) | (5,310,174 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(141,232 | ) | (2,268,541 | ) | 17,561,968 | (865,983 | ) | 1,425,116 | (3,521,102 | ) | |||||||||||||
— | — | 5 | — | — | — | |||||||||||||||||
— | — | 16 | 18 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
— | — | 21 | 18 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(267,474 | ) | (2,446,718 | ) | 18,481,281 | (1,314,692 | ) | 1,433,393 | (3,511,318 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
133
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued) |
Sterling Capital Securitized Opportunities Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 44,803 | $ | 48,223 | ||||
Distributions reinvested | 2,729 | 1,931 | ||||||
Value of shares redeemed | (10,517 | ) | (1,500 | ) | ||||
|
|
|
| |||||
Change in net assets from Class A Share transactions | 37,015 | 48,654 | ||||||
Class C Shares: | ||||||||
Proceeds from shares issued | — | 35,277 | ||||||
Distributions reinvested | 687 | 137 | ||||||
Value of shares redeemed | — | — | ||||||
|
|
|
| |||||
Change in net assets from Class C Share transactions | 687 | 35,414 | ||||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 16,013,633 | 5,626,271 | ||||||
Distributions reinvested | 1,131,660 | 1,162,537 | ||||||
Value of shares redeemed | (7,757,627 | ) | (28,910,619 | ) | ||||
|
|
|
| |||||
Change in net assets from Institutional Share transactions | 9,387,666 | (22,121,811 | ) | |||||
|
|
|
| |||||
Change in net assets from capital transactions | $ | 9,425,368 | $ | (22,037,743 | ) | |||
|
|
|
| |||||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 4,462 | 4,903 | ||||||
Reinvested | 273 | 195 | ||||||
Redeemed | (1,057 | ) | (153 | ) | ||||
|
|
|
| |||||
Change in Class A Shares | 3,678 | 4,945 | ||||||
Class C Shares: | ||||||||
Issued | — | 3,553 | ||||||
Reinvested | 69 | 14 | ||||||
Redeemed | — | — | ||||||
|
|
|
| |||||
Change in Class C Shares | 69 | 3,567 | ||||||
Institutional Shares: | ||||||||
Issued | 1,601,075 | 570,144 | ||||||
Reinvested | 113,147 | 117,683 | ||||||
Redeemed | (777,454 | ) | (2,931,755 | ) | ||||
|
|
|
| |||||
Change in Institutional Shares | 936,768 | (2,243,928 | ) | |||||
|
|
|
| |||||
Change in Shares | 940,515 | (2,235,416 | ) | |||||
|
|
|
|
See accompanying Notes to the Financial Statements.
134
XXUPDATEXXX
|
Sterling Capital Kentucky Intermediate Tax-Free Fund | Sterling Capital Maryland Intermediate Tax-Free Fund | Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||||||||
$ | 173,580 | $ | 218,128 | $ | 993,275 | $ | 251,403 | $ | 3,271,634 | $ | 3,547,260 | |||||||||||
157,983 | 101,299 | 110,293 | 92,966 | 856,621 | 869,416 | |||||||||||||||||
(317,405 | ) | (1,643,560 | ) | (967,867 | ) | (1,797,863 | ) | (6,565,206 | ) | (12,529,477 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
14,158 | (1,324,133 | ) | 135,701 | (1,453,494 | ) | (2,436,951 | ) | (8,112,801 | ) | |||||||||||||
— | 15 | 82,459 | 4,800 | 1,136,424 | 589,983 | |||||||||||||||||
637 | 1,066 | 10,790 | 8,733 | 41,063 | 43,522 | |||||||||||||||||
— | (50,000 | ) | (95,561 | ) | (494,065 | ) | (685,456 | ) | (2,619,552 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
637 | (48,919 | ) | (2,312 | ) | (480,532 | ) | 492,031 | (1,986,047 | ) | |||||||||||||
2,443,555 | 2,681,290 | 6,010,967 | 4,760,513 | 35,818,542 | 22,069,111 | |||||||||||||||||
71,870 | 22,985 | 247,424 | 131,752 | 885,369 | 519,324 | |||||||||||||||||
(3,291,429 | ) | (4,232,402 | ) | (7,646,027 | ) | (9,724,105 | ) | (40,683,164 | ) | (33,726,715 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(776,004 | ) | (1,528,127 | ) | (1,387,636 | ) | (4,831,840 | ) | (3,979,253 | ) | (11,138,280 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (761,209 | ) | $ | (2,901,179 | ) | $ | (1,254,247 | ) | $ | (6,765,866 | ) | $ | (5,924,173 | ) | $ | (21,237,128 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
16,327 | 20,476 | 89,218 | 22,606 | 298,779 | 326,372 | |||||||||||||||||
14,790 | 9,400 | 9,851 | 8,369 | 78,025 | 79,957 | |||||||||||||||||
(29,673 | ) | (153,027 | ) | (86,735 | ) | (162,346 | ) | (598,065 | ) | (1,155,567 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,444 | (123,151 | ) | 12,334 | (131,371 | ) | (221,261 | ) | (749,238 | ) | |||||||||||||
— | — | 7,385 | 432 | 103,490 | 54,396 | |||||||||||||||||
60 | 99 | 964 | 786 | 3,743 | 4,011 | |||||||||||||||||
— | (4,592 | ) | (8,520 | ) | (44,739 | ) | (62,562 | ) | (242,364 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
60 | (4,493 | ) | (171 | ) | (43,521 | ) | 44,671 | (183,957 | ) | |||||||||||||
229,733 | 250,008 | 535,757 | 428,018 | 3,254,656 | 2,034,614 | |||||||||||||||||
6,748 | 2,137 | 22,079 | 11,842 | 80,670 | 47,745 | |||||||||||||||||
(309,523 | ) | (393,830 | ) | (682,029 | ) | (877,854 | ) | (3,703,277 | ) | (3,114,298 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(73,042 | ) | (141,685 | ) | (124,193 | ) | (437,994 | ) | (367,951 | ) | (1,031,939 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(71,538 | ) | (269,329 | ) | (112,030 | ) | (612,886 | ) | (544,541 | ) | (1,965,134 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
135
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued) |
Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 1,137,270 | $ | 609,289 | ||||
Distributions reinvested | 297,069 | 311,318 | ||||||
Value of shares redeemed | (407,404 | ) | (5,230,947 | ) | ||||
|
|
|
| |||||
Change in net assets from Class A Share transactions | 1,026,935 | (4,310,340 | ) | |||||
Class C Shares: | ||||||||
Proceeds from shares issued | 443,217 | 792,914 | ||||||
Distributions reinvested | 16,351 | 11,159 | ||||||
Value of shares redeemed | (2,376,040 | ) | (270,955 | ) | ||||
|
|
|
| |||||
Change in net assets from Class C Share transactions | (1,916,472 | ) | 533,118 | |||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 15,028,426 | 13,827,670 | ||||||
Distributions reinvested | 287,136 | 198,920 | ||||||
Value of shares redeemed | (6,339,982 | ) | (15,448,385 | ) | ||||
|
|
|
| |||||
Change in net assets from Institutional Share transactions | 8,975,580 | (1,421,795 | ) | |||||
|
|
|
| |||||
Change in net assets from capital transactions | $ | 8,086,043 | $ | (5,199,017 | ) | |||
|
|
|
| |||||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 102,254 | 55,520 | ||||||
Reinvested | 26,667 | 28,310 | ||||||
Redeemed | (213,198 | ) | (478,279 | ) | ||||
|
|
|
| |||||
Change in Class A Shares | (84,277 | ) | (394,449 | ) | ||||
Class C Shares: | ||||||||
Issued | 39,731 | 72,232 | ||||||
Reinvested | 1,468 | 1,012 | ||||||
Redeemed | (36,461 | ) | (24,584 | ) | ||||
|
|
|
| |||||
Change in Class C Shares | 4,738 | 48,660 | ||||||
Institutional Shares: | ||||||||
Issued | 1,360,106 | 1,270,152 | ||||||
Reinvested | 25,956 | 18,200 | ||||||
Redeemed | (572,809 | ) | (1,423,379 | ) | ||||
|
|
|
| |||||
Change in Institutional Shares | 813,253 | (135,027 | ) | |||||
|
|
|
| |||||
Change in Shares | 733,714 | (480,816 | ) | |||||
|
|
|
|
See accompanying Notes to the Financial Statements.
136
XXUPDATEXXX
|
Sterling Capital Virginia Intermediate Tax-Free Fund | Sterling Capital West Virginia Intermediate Tax-Free Fund | |||||||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||
$ | 647,538 | $ | 1,580,973 | $ | 3,689,399 | $ | 654,815 | |||||||
805,613 | 679,452 | 677,107 | 608,304 | |||||||||||
(5,638,506 | ) | (8,739,263 | ) | (4,210,504 | ) | (4,253,974 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(4,185,355 | ) | (6,478,838 | ) | 156,002 | (2,990,855 | ) | ||||||||
92,545 | 16,603 | 76,104 | 2,400 | |||||||||||
22,214 | 21,765 | 5,600 | 8,933 | |||||||||||
(351,479 | ) | (1,282,447 | ) | (129,627 | ) | (337,511 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(236,720 | ) | (1,244,079 | ) | (47,923 | ) | (326,178 | ) | |||||||
17,263,590 | 15,203,340 | 13,932,544 | 14,475,708 | |||||||||||
500,475 | 184,027 | 308,998 | 119,083 | |||||||||||
(18,624,527 | ) | (18,926,555 | ) | (17,711,994 | ) | (15,012,738 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(860,462 | ) | (3,539,188 | ) | (3,470,452 | ) | (417,947 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
$ | (5,282,537 | ) | $ | (11,262,105 | ) | $ | (3,362,373 | ) | $ | (3,734,980 | ) | |||
|
|
|
|
|
|
|
| |||||||
53,868 | 132,598 | 363,040 | 65,415 | |||||||||||
67,076 | 56,879 | 66,738 | 60,550 | |||||||||||
(471,168 | ) | (731,884 | ) | (415,158 | ) | (424,311 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(350,224 | ) | (542,407 | ) | 14,620 | (298,346 | ) | ||||||||
7,781 | 1,391 | 7,559 | 241 | |||||||||||
1,850 | 1,825 | 552 | 891 | |||||||||||
(29,287 | ) | (107,543 | ) | (12,715 | ) | (33,275 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(19,656 | ) | (104,327 | ) | (4,604 | ) | (32,143 | ) | |||||||
1,436,452 | 1,274,082 | 1,371,642 | 1,439,942 | |||||||||||
41,712 | 15,387 | 30,430 | 11,839 | |||||||||||
(1,551,666 | ) | (1,592,958 | ) | (1,740,598 | ) | (1,494,140 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(73,502 | ) | (303,489 | ) | (338,526 | ) | (42,359 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(443,382 | ) | (950,223 | ) | (328,510 | ) | (372,848 | ) | |||||||
|
|
|
|
|
|
|
|
137
Sterling Capital Funds
|
Statements of Changes in Net Assets (continued) |
|
Sterling Capital Diversified Income Fund | ||||||||
For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 1,887,859 | $ | 2,462,133 | ||||
Distributions reinvested | 308,203 | 307,288 | ||||||
Value of shares redeemed | (2,937,504 | ) | (2,496,915 | ) | ||||
|
|
|
| |||||
Change in net assets from Class A Share transactions | (741,442 | ) | 272,506 | |||||
Class B Shares: | ||||||||
Proceeds from shares issued | — | 26,465 | ||||||
Distributions reinvested | 9,755 | 13,314 | ||||||
Value of shares redeemed | (287,067 | ) | (311,480 | ) | ||||
|
|
|
| |||||
Change in net assets from Class B Share transactions | (277,312 | ) | (271,701 | ) | ||||
Class C Shares: | ||||||||
Proceeds from shares issued | 555,913 | 85,791 | ||||||
Distributions reinvested | 6,249 | 4,723 | ||||||
Value of shares redeemed | (27,698 | ) | (58,210 | ) | ||||
|
|
|
| |||||
Change in net assets from Class C Share transactions | 534,464 | 32,304 | ||||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 30,753,764 | 311,637 | ||||||
Distributions reinvested | 386,573 | 53,892 | ||||||
Value of shares redeemed | (3,778,591 | ) | (1,377,356 | ) | ||||
|
|
|
| |||||
Change in net assets from Institutional Share transactions | 27,361,746 | (1,011,827 | ) | |||||
|
|
|
| |||||
Change in net assets from capital transactions | $ | 26,877,456 | $ | (978,718 | ) | |||
|
|
|
| |||||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 176,782 | 236,083 | ||||||
Reinvested | 29,144 | 29,146 | ||||||
Redeemed | (274,990 | ) | (239,202 | ) | ||||
|
|
|
| |||||
Change in Class A Shares | (69,064 | ) | 26,027 | |||||
Class B Shares: | ||||||||
Issued | — | 2,512 | ||||||
Reinvested | 917 | 1,260 | ||||||
Redeemed | (26,758 | ) | (29,972 | ) | ||||
|
|
|
| |||||
Change in Class B Shares | (25,841 | ) | (26,200 | ) | ||||
Class C Shares: | ||||||||
Issued | 52,905 | 8,261 | ||||||
Reinvested | 599 | 451 | ||||||
Redeemed | (2,590 | ) | (5,494 | ) | ||||
|
|
|
| |||||
Change in Class C Shares | 50,914 | 3,218 | ||||||
Institutional Shares: | ||||||||
Issued | 2,805,133 | 29,762 | ||||||
Reinvested | 36,774 | 5,061 | ||||||
Redeemed | (354,765 | ) | (133,574 | ) | ||||
|
|
|
| |||||
Change in Institutional Shares | 2,487,142 | (98,751 | ) | |||||
|
|
|
| |||||
Change in Shares | 2,443,151 | (95,706 | ) | |||||
|
|
|
|
See accompanying Notes to the Financial Statements.
138
|
|
Sterling Capital Strategic Allocation Balanced Fund | Sterling Capital Strategic Allocation Growth Fund | |||||||||||||
For the Year Ended | For the Year Ended September 30, 2014 | For the Year Ended September 30, 2015 | For the Year Ended September 30, 2014 | |||||||||||
$ | 4,039,105 | $ | 4,301,837 | $ | 2,672,841 | $ | 2,541,576 | |||||||
481,066 | 585,449 | 225,466 | 319,012 | |||||||||||
(4,799,807 | ) | (2,947,129 | ) | (2,848,121 | ) | (3,439,864 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(279,636 | ) | 1,940,157 | 50,186 | (579,276 | ) | |||||||||
8,241 | — | 11,967 | 18,559 | |||||||||||
9,918 | 24,798 | 6,950 | 14,990 | |||||||||||
(1,048,427 | ) | (1,593,220 | ) | (976,831 | ) | (1,433,303 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(1,030,268 | ) | (1,568,422 | ) | (957,914 | ) | (1,399,754 | ) | |||||||
174,979 | 325,190 | 96,199 | 68,590 | |||||||||||
5,115 | 6,728 | 1,997 | 2,624 | |||||||||||
(159,492 | ) | (195,220 | ) | (93,956 | ) | (66,401 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
20,602 | 136,698 | 4,240 | 4,813 | |||||||||||
44 | 362 | 860,482 | 121,047 | |||||||||||
1,785 | 2,761 | 11,035 | 12,357 | |||||||||||
(136,846 | ) | (103,943 | ) | (171,809 | ) | (356,313 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(135,017 | ) | (100,820 | ) | 699,708 | (222,909 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||
$ | (1,424,319 | ) | $ | 407,613 | $ | (203,780 | ) | $ | (2,197,126 | ) | ||||
|
|
|
|
|
|
|
| |||||||
373,614 | 417,123 | 251,786 | 254,214 | |||||||||||
44,976 | 56,225 | 21,649 | 31,660 | |||||||||||
(442,468 | ) | (284,702 | ) | (268,419 | ) | (339,168 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(23,878 | ) | 188,646 | 5,016 | (53,294 | ) | |||||||||
799 | — | 1,186 | 1,851 | |||||||||||
947 | 2,451 | 687 | 1,548 | |||||||||||
(98,893 | ) | (157,756 | ) | (94,604 | ) | (147,107 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(97,147 | ) | (155,305 | ) | (92,731 | ) | (143,708 | ) | |||||||
16,293 | 31,327 | 9,377 | 6,955 | |||||||||||
488 | 660 | 198 | 271 | |||||||||||
(14,971 | ) | (19,019 | ) | (9,025 | ) | (6,830 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
1,810 | 12,968 | 550 | 396 | |||||||||||
4 | 35 | 83,195 | 11,747 | |||||||||||
166 | 264 | 1,062 | 1,221 | |||||||||||
(12,721 | ) | (10,164 | ) | (16,514 | ) | (36,681 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(12,551 | ) | (9,865 | ) | 67,743 | (23,713 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||
(131,766 | ) | 36,444 | (19,422 | ) | (220,319 | ) | ||||||||
|
|
|
|
|
|
|
|
139
Sterling Capital Funds
|
Statement of Cash Flows |
For the Year Ended September 30, 2015 |
Sterling Capital Long/Short Equity Fund | ||||
Cash Used for Operating Activities: | ||||
Net decrease in net assets from operations | $ | (19,668,014 | ) | |
|
| |||
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used for operating activities: | ||||
Increase in cash held at broker for securities short sales | (4,208,125 | ) | ||
Decrease in interest and dividends receivable | 11,976 | |||
Decrease in deferred offering costs | 1,780 | |||
Decrease in prepaid expenses | 10,566 | |||
Decrease in payable for dividends on short sales | (15,654 | ) | ||
Decrease in payable to broker for service fee on short sales | (163 | ) | ||
Increase in investment advisory fees payable | 3,969 | |||
Decrease in accounting and administration out-of-pocket fees payable | (850 | ) | ||
Increase in administration fees payable | 698 | |||
Increase in audit fees payable | 1,392 | |||
Increase in transfer agent fees payable | 6,288 | |||
Decrease in distribution (12b-1) fees payable | (119 | ) | ||
Increase in Trustee fees payable | 13 | |||
Increase in other fees | 7,967 | |||
Amortization of premium and accretion of discount on investments | (90,953 | ) | ||
Net realized gain (loss) on investments | (1,712,899 | ) | ||
Net unrealized gain (loss) on investments and foreign currency translations | 19,605,549 | |||
Premiums received from options written | 372,069 | |||
Premiums paid on closing options written | (531,902 | ) | ||
Proceeds from investments sold short | 138,149,711 | |||
Purchases to cover investments sold short | (142,719,129 | ) | ||
Purchases of long-term investments | (218,883,104 | ) | ||
Proceeds from sales of long-term investments | 212,218,801 | |||
Net purchases of short-term securities | 153,876 | |||
|
| |||
Net cash used for operating activities | (17,286,257 | ) | ||
|
| |||
Cash Provided by (Used for) Financing Activities: | ||||
Proceeds from issuance of capital shares | 89,927,800 | |||
Payments on redemption of capital shares | (71,309,338 | ) | ||
Cash dividends paid to shareholders | (1,580,492 | ) | ||
|
| |||
Net cash provided for financing activities | 17,037,970 | |||
|
| |||
Cash: | ||||
Net decrease in cash | (248,287 | ) | ||
Cash at beginning of year | 253,051 | |||
|
| |||
Cash at end of year | $ | 4,764 | ||
|
| |||
Supplemental Disclosure of Cash Flow Information: | ||||
Cash paid during the period for dividend expense and service fee on securities sold short | $ | 1,187,714 | ||
|
| |||
Non-Cash Financing Activities: | ||||
Capital shares issued in reinvestment of distributions paid to shareholders | $ | 1,518,094 | ||
|
|
See accompanying Notes to the Financial Statements.
140
(This page has been left blank intentionally.)
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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 17.24 | 0.22 | (0.69 | ) | (0.47 | ) | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||
Sterling Capital Mid Value Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 19.33 | 0.06 | (0.14 | ) | (0.08 | ) | (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 | ) | |||||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 14.34 | 0.18 | 0.16 | 0.34 | (0.20 | ) | (0.44 | ) | (0.64 | ) | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 23.33 | (0.06 | ) | 0.89 | 0.83 | — | (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 | (e) | 3.78 | 3.83 | (0.01 | ) | (0.95 | ) | (0.96 | ) | |||||||||||||||||||||||
Year Ended September 30, 2012 | $ | 15.25 | — | (f) | 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 | ) | ||||||||||||||||||||||
Sterling Capital Equity Income Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 18.94 | 0.31 | (1.06 | ) | (0.75 | ) | (0.33 | ) | (0.51 | ) | (0.84 | ) | ||||||||||||||||||||||
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 | (h) | 0.39 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.90 | (0.19 | ) | (1.54 | ) | (1.73 | ) | — | (0.30 | ) | (0.30 | ) | ||||||||||||||||||||||
December 13, 2013 to September 30, 2014(j) | $ | 10.00 | (0.13 | ) | 1.03 | 0.90 | — | — | — | ||||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | |||||||||||||||||||||||||||||||||||
November 28, 2014 to September 30, 2015(j) | $ | 10.00 | 0.18 | (0.94 | ) | (0.76 | ) | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||||||
Sterling Capital Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.94 | 0.04 | (0.02 | ) | 0.02 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||||
Year Ended September 30, 2014 | $ | 9.98 | 0.05 | (0.03 | )(f) | 0.02 | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||||||||||
November 30, 2012 to September 30, 2013(j) | $ | 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) | 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. |
(f) | Amount is less than $0.005. |
(g) | Ratio is below 0.005%. |
(h) | The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period. |
(i) | Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.08% per share. |
(j) | Period from commencement of operations. |
(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.
142
|
|
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 | Ratio of expenses to average net assets*(c) | Portfolio turnover rate**(b) | |||||||||||||||||||||||||||
$ | 16.53 | (2.81 | )% | $ | 31,079 | 1.06 | % | 1.25 | % | 1.16 | % | 135.05 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 17.97 | (0.69 | )% | $ | 34,792 | 1.19 | % | 0.29 | % | 1.19 | % | 30.61 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 14.04 | 2.20 | % | $ | 13,261 | 1.25 | % | 1.18 | % | 1.25 | % | 101.99 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 22.96 | 3.75 | % | $ | 264,294 | 1.22 | % | (0.25 | )% | 1.22 | % | 26.98 | % | ||||||||||||||||||||
$ | 23.33 | 21.71 | % | $ | 364,368 | 1.21 | % | (0.11 | )% | 1.21 | % | 32.35 | % | ||||||||||||||||||||
$ | 21.38 | 21.59 | % | $ | 269,300 | 1.24 | % | 0.27 | %(e) | 1.24 | % | 53.76 | % | ||||||||||||||||||||
$ | 18.51 | 23.67 | % | $ | 174,085 | 1.29 | % | (0.00 | )%(g) | 1.38 | % | 19.38 | % | ||||||||||||||||||||
$ | 15.25 | (3.72 | )% | $ | 197,138 | 1.28 | % | (0.35 | )% | 1.53 | % | 31.51 | % | ||||||||||||||||||||
$ | 17.35 | (4.16 | )% | $ | 478,393 | 1.21 | % | 1.66 | % | 1.21 | % | 27.53 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 8.87 | (16.16 | )% | $ | 1,307 | 3.19 | %(i) | (1.93 | )% | 3.19 | % | 265.99 | % | ||||||||||||||||||||
$ | 10.90 | 9.00 | % | $ | 2,437 | 3.44 | %(k) | (1.55 | )% | 3.44 | % | 193.58 | % | ||||||||||||||||||||
$ | 9.22 | (7.57 | %) | $ | 531 | 1.28 | % | 2.16 | % | 1.44 | % | 133.50 | % | ||||||||||||||||||||
$ | 9.87 | 0.25 | % | $ | 8,295 | 0.78 | % | 0.43 | % | 0.80 | % | 66.19 | % | ||||||||||||||||||||
$ | 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 | % |
143
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 | Return of capital | Total Distributions | |||||||||||||||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.07 | 0.10 | (0.05 | ) | 0.05 | (0.26 | ) | — | — | (0.26 | ) | ||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.19 | 0.13 | 0.05 | 0.18 | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.66 | 0.28 | (0.06 | ) | 0.22 | (0.35 | ) | — | — | (0.35 | ) | ||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||||
Sterling Capital Corporate Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.25 | 0.29 | (0.14 | ) | 0.15 | (0.29 | ) | (0.01 | ) | — | (d) | (0.30 | ) | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.90 | 0.20 | 0.13 | 0.33 | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.86 | 0.25 | (0.06 | ) | 0.19 | (0.25 | ) | (0.18 | ) | — | (0.43 | ) | |||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 11.23 | 0.20 | — | (d) | 0.20 | (0.20 | ) | (0.06 | ) | — | (0.26 | ) | |||||||||||||||||||||||||||
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 | ) |
* | 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.
144
|
|
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) | ||||||||||||||||||||||||||||
$ | 8.86 | 0.56 | % | $ | 8,075 | 0.79 | % | 1.17 | % | 0.81 | % | 55.74 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.18 | 1.81 | % | $ | 7,625 | 0.91 | % | 1.29 | % | 0.98 | % | 62.02 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.53 | 2.04 | % | $ | 47,782 | 0.73 | % | 2.63 | % | 0.83 | % | 41.37 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.10 | 1.51 | % | $ | 348 | 0.88 | % | 2.87 | % | 0.88 | % | 33.94 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 9.98 | 3.39 | % | $ | 124 | 0.84 | % | 2.01 | % | 0.88 | % | 19.85 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.62 | 1.80 | % | $ | 4,532 | 0.95 | % | 2.37 | % | 1.04 | % | 17.34 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 11.17 | 1.79 | % | $ | 6,865 | 0.90 | % | 1.82 | % | 0.96 | % | 18.38 | % | |||||||||||||||||||||
$ | 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 | % |
145
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 Year | 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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.98 | 0.24 | 0.01 | 0.25 | (0.24 | ) | (0.02 | ) | (0.26 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 11.14 | 0.21 | 0.02 | 0.23 | (0.21 | ) | (0.02 | ) | (0.23 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 12.06 | 0.25 | (0.01 | ) | 0.24 | (0.25 | ) | (0.07 | ) | (0.32 | ) | |||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.16 | 0.21 | 0.01 | 0.22 | (0.21 | ) | (0.03 | ) | (0.24 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital Diversified Income Fund(b) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.59 | 0.26 | (0.40 | ) | (0.14 | ) | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund(b) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.66 | 0.13 | (0.33 | ) | (0.20 | ) | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund(b) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.39 | 0.07 | (0.37 | ) | (0.30 | ) | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||||||
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 | ) |
* | 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) | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
See accompanying Notes to the Financial Statements.
146
|
|
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Ratios/Supplementary Data | ||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | Total Return (excludes sales charge) | Net Assets, End of Year (000) | Ratio of net expenses to average net assets | Ratio of net investment income to average net assets | Ratio of expenses to average net assets* | Portfolio turnover rate** | ||||||||||||||||||||||||||||
$ | 10.97 | 2.28 | % | $ | 45,940 | 0.84 | % | 2.19 | % | 0.91 | % | 16.80 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 11.14 | 2.11 | % | $ | 16,802 | 0.86 | % | 1.93 | % | 0.93 | % | 12.53 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 11.98 | 1.98 | % | $ | 36,672 | 0.85 | % | 2.08 | % | 0.92 | % | 16.01 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.14 | 2.19 | % | $ | 35,279 | 0.85 | % | 2.12 | % | 0.92 | % | 10.34 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.21 | (1.40 | )% | $ | 14,321 | 0.45 | % | 2.45 | % | 0.70 | % | 126.46 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.31 | (1.92 | )% | $ | 34,047 | 0.40 | % | 1.16 | % | 0.65 | % | 49.24 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 9.99 | (2.93 | )% | $ | 22,848 | 0.42 | % | 0.69 | % | 0.67 | % | 58.40 | % | |||||||||||||||||||||
$ | 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 | % |
147
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 Year | 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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 16.94 | 0.08 | (0.67 | ) | (0.59 | ) | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||
Sterling Capital Mid Value Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 18.13 | (0.09 | ) | (0.12 | ) | (0.21 | ) | — | (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 | — | (c) | 4.24 | 4.24 | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||||||||
Year Ended September 30, 2012 | $ | 10.80 | — | (c) | 2.77 | 2.77 | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||||||||
Year Ended September 30, 2011 | $ | 11.52 | (0.06 | ) | (0.66 | ) | (0.72 | ) | — | — | — | ||||||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 13.88 | 0.06 | 0.14 | 0.20 | (0.03 | ) | (0.44 | ) | (0.47 | ) | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 20.93 | (0.21 | ) | 0.80 | 0.59 | — | (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 | )(d) | 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 | ) | ||||||||||||||||||||||
Sterling Capital Equity Income Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 18.91 | 0.17 | (1.07 | ) | (0.90 | ) | (0.17 | ) | (0.51 | ) | (0.68 | ) | ||||||||||||||||||||||
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 | (e) | 0.28 | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.16 | 0.06 | 0.05 | 0.11 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||||||||
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 | ) |
* | 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) | 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%. |
(c) | Amount is less than $0.005. |
(d) | 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. |
(e) | The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period. |
See accompanying Notes to the Financial Statements.
148
|
|
|
Ratios/Supplementary Data | |||||||||||||||||||||||||||||||||
Net Asset | Total Return (excludes sales charge) | Net Assets, End of Year (000) | Ratio of net expenses to average net assets |
Ratio of net | Ratio of expenses to average net assets* | Portfolio turnover rate** | |||||||||||||||||||||||||||
$ | 16.26 | (3.52 | )% | $ | 537 | 1.81 | % | 0.48 | % | 1.91 | % | 135.05 | % | ||||||||||||||||||||
$ | 16.94 | 22.08 | % | $ | 990 | 1.81 | % | 0.33 | % | 1.91 | % | 113.75 | % | ||||||||||||||||||||
$ | 13.91 | 10.83 | %(b) | $ | 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 | % | ||||||||||||||||||||
$ | 16.75 | (1.45 | )% | $ | 688 | 1.94 | % | (0.50 | )% | 1.94 | % | 30.61 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 13.61 | 1.34 | % | $ | 203 | 2.00 | % | 0.42 | % | 2.00 | % | 101.99 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 20.32 | 2.99 | % | $ | 4,429 | 1.97 | % | (1.00 | )% | 1.97 | % | 26.98 | % | ||||||||||||||||||||
$ | 20.93 | 20.78 | % | $ | 7,704 | 1.96 | % | (0.86 | )% | 1.96 | % | 32.35 | % | ||||||||||||||||||||
$ | 19.53 | 20.64 | % | $ | 8,921 | 1.99 | % | (0.45 | )%(d) | 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 | % | ||||||||||||||||||||
$ | 17.33 | (4.93 | )% | $ | 3,883 | 1.96 | % | 0.90 | % | 1.96 | % | 27.53 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 10.15 | 1.06 | % | $ | 167 | 1.67 | % | 0.55 | % | 1.72 | % | 62.02 | % | ||||||||||||||||||||
$ | 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 | % |
149
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 Year | 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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.67 | 0.20 | (0.06 | ) | 0.14 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital Diversified Income Fund(b) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.62 | 0.17 | (0.40 | ) | (0.23 | ) | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund(b) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.45 | 0.04 | (0.32 | ) | (0.28 | ) | (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 | ) | |||||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund(b) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.14 | (0.01 | ) | (0.36 | ) | (0.37 | ) | (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 | ) |
* | 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) | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
See accompanying Notes to the Financial Statements.
150
|
|
Ratios/Supplementary Data | ||||||||||||||||||||||||||||||||||
Net Asset Value, End of Year | Total Return (excludes sales charge) | Net Assets, End of Year (000) | Ratio of net expenses to average net assets | Ratio of net investment income to average net assets | Ratio of expenses to average net assets* | Portfolio turnover rate** | ||||||||||||||||||||||||||||
$ | 10.54 | 1.26 | % | $ | 930 | 1.48 | % | 1.86 | % | 1.58 | % | 41.37 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.23 | (2.17 | )% | $ | 513 | 1.20 | % | 1.58 | % | 1.45 | % | 126.46 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.11 | (2.69 | )% | $ | 896 | 1.15 | % | 0.41 | % | 1.40 | % | 49.24 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 9.73 | (3.63 | )% | $ | 885 | 1.17 | % | (0.07 | )% | 1.42 | % | 58.40 | % | |||||||||||||||||||||
$ | 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 | % |
151
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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 16.79 | 0.09 | (0.67 | ) | (0.58 | ) | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||
Sterling Capital Mid Value Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 18.06 | (0.08 | ) | (0.13 | ) | (0.21 | ) | (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 | ) | — | — | — | ||||||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 13.87 | 0.06 | 0.15 | 0.21 | (0.04 | ) | (0.44 | ) | (0.48 | ) | ||||||||||||||||||||||||
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 | ) | — | — | — | ||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 20.95 | (0.20 | ) | 0.79 | 0.59 | — | (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 | )(f) | 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 | ) | ||||||||||||||||||||||
Sterling Capital Equity Income Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 18.80 | 0.17 | (1.06 | ) | (0.89 | ) | (0.19 | ) | (0.51 | ) | (0.70 | ) | ||||||||||||||||||||||
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 | (g) | 0.28 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.85 | (0.26 | ) | (1.53 | ) | (1.79 | ) | — | (0.30 | ) | (0.30 | ) | ||||||||||||||||||||||
December 13, 2013 to September 30, 2014(i) | $ | 10.00 | (0.21 | ) | 1.06 | 0.85 | — | — | — | ||||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | |||||||||||||||||||||||||||||||||||
November 28, 2014 to September 30, 2015(i) | $ | 10.00 | 0.19 | (0.99 | ) | (0.80 | ) | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.07 | 0.04 | (0.07 | ) | (0.03 | ) | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||||||
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(i) | $ | 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) | 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. |
(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 2.84% 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 2.79% per share. |
See accompanying Notes to the Financial Statements.
152
|
|
|
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 | Ratio of expenses to average net assets*(c) | Portfolio turnover rate**(b) | |||||||||||||||||||||||||||
$ | 16.09 | (3.52 | )% | $ | 805 | 1.81 | % | 0.52 | % | 1.91 | % | 135.05 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 16.67 | (1.43 | )% | $ | 5,309 | 1.94 | % | (0.41 | )% | 1.94 | % | 30.61 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 13.60 | 1.37 | % | $ | 330 | 2.00 | % | 0.45 | % | 2.00 | % | 101.99 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 20.34 | 2.99 | % | $ | 143,597 | 1.98 | % | (0.98 | )% | 1.98 | % | 26.98 | % | ||||||||||||||||||||
$ | 20.95 | 20.76 | % | $ | 120,469 | 1.96 | % | (0.86 | )% | 1.96 | % | 32.35 | % | ||||||||||||||||||||
$ | 19.55 | 20.69 | % | $ | 94,718 | 1.99 | % | (0.46 | )%(f) | 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 | % | ||||||||||||||||||||
$ | 17.21 | (4.92 | )% | $ | 279,355 | 1.97 | % | 0.91 | % | 1.97 | % | 27.53 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 8.76 | (16.80 | )% | $ | 402 | 3.93 | %(h) | (2.67 | )% | 3.93 | % | 265.99 | % | ||||||||||||||||||||
$ | 10.85 | 8.50 | % | $ | 330 | 4.15 | %(j) | (2.37 | )% | 4.15 | % | 193.58 | % | ||||||||||||||||||||
$ | 9.18 | (8.03 | %) | $ | 28 | 2.03 | % | 2.26 | % | 2.19 | % | 133.50 | % | ||||||||||||||||||||
$ | 8.85 | (0.29 | %) | $ | 2,415 | 1.55 | % | 0.39 | % | 1.57 | % | 55.74 | % | ||||||||||||||||||||
$ | 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 | % |
153
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 | Return of capital | Total Distributions | |||||||||||||||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.18 | 0.06 | 0.05 | 0.11 | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.68 | 0.20 | (0.06 | ) | 0.14 | (0.27 | ) | — | — | (0.27 | ) | ||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||||
Sterling Capital Corporate Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.24 | 0.22 | (0.14 | ) | 0.08 | (0.22 | ) | (0.01 | ) | — | (d) | (0.23 | ) | ||||||||||||||||||||||||||
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(e) | $ | 10.53 | 0.18 | (0.39 | ) | (0.21 | ) | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.89 | 0.13 | 0.13 | 0.26 | (0.18 | ) | — | — | (0.18 | ) | |||||||||||||||||||||||||||||
Year Ended September 30, 2014 | $ | 9.84 | 0.16 | 0.11 | 0.27 | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||||||||||||
February 1, 2013 to September 30, 2013(e) | $ | 10.16 | 0.08 | (0.23 | ) | (0.15 | ) | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.86 | 0.17 | (0.05 | ) | 0.12 | (0.17 | ) | (0.18 | ) | — | (0.35 | ) | |||||||||||||||||||||||||||
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(e) | $ | 11.08 | 0.11 | 0.09 | 0.20 | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 11.24 | 0.12 | — | (d) | 0.12 | (0.12 | ) | (0.06 | ) | — | (0.18 | ) | |||||||||||||||||||||||||||
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(e) | $ | 11.47 | 0.09 | 0.09 | 0.18 | (0.09 | ) | — | — | (0.09 | ) | |||||||||||||||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.98 | 0.16 | — | (d) | 0.16 | (0.16 | ) | (0.02 | ) | — | (0.18 | ) | |||||||||||||||||||||||||||
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(e) | $ | 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) | Amount is less than $0.005. |
(e) | Period from commencement of operations. |
See accompanying Notes to the Financial Statements.
154
|
|
|
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) | ||||||||||||||||||||||||||||
$ | 10.17 | 1.06 | % | $ | 777 | 1.67 | % | 0.56 | % | 1.73 | % | 62.02 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.55 | 1.28 | % | $ | 6,362 | 1.48 | % | 1.87 | % | 1.58 | % | 41.37 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.09 | 0.75 | % | $ | 9 | 1.63 | % | 2.12 | % | 1.63 | % | 33.94 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 9.97 | 2.62 | % | $ | 39 | 1.59 | % | 1.30 | % | 1.63 | % | 19.85 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.63 | 1.13 | % | $ | 20 | 1.71 | % | 1.62 | % | 1.79 | % | 17.34 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 11.18 | 1.04 | % | $ | 741 | 1.65 | % | 1.07 | % | 1.71 | % | 18.38 | % | |||||||||||||||||||||
$ | 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 | % | |||||||||||||||||||||
$ | 10.96 | 1.43 | % | $ | 3,350 | 1.59 | % | 1.44 | % | 1.66 | % | 16.80 | % | |||||||||||||||||||||
$ | 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 | % |
155
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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $11.14 | 0.13 | 0.02 | 0.15 | (0.13 | ) | (0.02 | ) | (0.15 | ) | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $12.06 | 0.16 | (0.01 | ) | 0.15 | (0.16 | ) | (0.07 | ) | (0.23 | ) | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $10.16 | 0.14 | 0.01 | 0.15 | (0.14 | ) | (0.03 | ) | (0.17 | ) | |||||||||||||||||||||||||
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 Diversified Income Fund(e) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $10.53 | 0.22 | (0.44 | ) | (0.22 | ) | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund(e) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $10.47 | 0.04 | (0.31 | ) | (0.27 | ) | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund(e) | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $10.09 | (0.01 | ) | (0.35 | ) | (0.36 | ) | (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 | ) |
* | 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.
156
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) | ||||||||||||||||||||||||||||
$11.14 | 1.35 | % | $1,517 | 1.61 | % | 1.18 | % | 1.68 | % | 12.53 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$11.98 | 1.22 | % | $1,245 | 1.60 | % | 1.32 | % | 1.67 | % | 16.01 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$10.14 | 1.42 | % | $ 409 | 1.61 | % | 1.36 | % | 1.67 | % | 10.34 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$10.13 | (2.14 | )% | $ 795 | 1.20 | % | 2.04 | % | 1.45 | % | 126.46 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$10.13 | (2.60 | )% | $ 751 | 1.15 | % | 0.42 | % | 1.40 | % | 49.24 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$ 9.68 | (3.62 | )% | $ 491 | 1.17 | % | (0.06 | )% | 1.42 | % | 58.40 | % | |||||||||||||||||||||||
$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 | % |
157
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 | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $17.33 | 0.27 | (0.70 | ) | (0.43 | ) | (0.28 | ) | — | (0.28 | ) | ||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||
Sterling Capital Mid Value Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $19.50 | 0.11 | (0.14 | ) | (0.03 | ) | (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 | ) | ||||||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $14.47 | 0.22 | 0.15 | 0.37 | (0.26 | ) | (0.44 | ) | (0.70 | ) | |||||||||||||||||||||||||
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 | ) | — | — | — | |||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $24.06 | — | (e) | 0.92 | 0.92 | — | (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 | ) | |||||||||||||||||||||||
Sterling Capital Equity Income Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $18.98 | 0.36 | (1.07 | ) | (0.71 | ) | (0.37 | ) | (0.51 | ) | (0.88 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $10.93 | (0.17 | ) | (1.55 | ) | (1.72 | ) | — | (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 September 30, 2015(i) | $10.00 | 0.24 | (0.97 | ) | (0.73 | ) | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||||||||
Sterling Capital Ultra Short Bond Fund | |||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ 9.94 | 0.07 | (0.03 | ) | 0.04 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||||||||
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) | Amount is less than $0.005. |
(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 1.83% 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.
158
Ratios/Supplementary Data | |||||||||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return (b) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (c) | Ratio of net investment income (loss) to average net assets (c) | Ratio of expenses to average net assets*(c) | Portfolio turnover rate**(b) | |||||||||||||||||||||||||||
$ | 16.62 | (2.55 | )% | $ | 221,481 | 0.81 | % | 1.50 | % | 0.91 | % | 135.05 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 18.14 | (0.43 | )% | $ | 588,537 | 0.94 | % | 0.55 | % | 0.94 | % | 30.61 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 14.14 | 2.42 | % | $ | 111,757 | 1.00 | % | 1.44 | % | 1.00 | % | 101.99 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 23.78 | 4.02 | % | $ | 491,982 | 0.97 | % | 0.01 | % | 0.97 | % | 26.98 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 17.39 | (3.90 | )% | $ | 807,729 | 0.97 | % | 1.91 | % | 0.97 | % | 27.53 | % | ||||||||||||||||||||
$ | 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 | % | ||||||||||||||||||||
$ | 8.91 | (15.92 | )% | $ | 102,208 | 2.94 | %(h) | (1.66 | )% | 2.94 | % | 265.99 | % | ||||||||||||||||||||
$ | 10.93 | 9.30 | % | $ | 105,053 | 3.10 | %(j) | (1.23 | )% | 3.10 | % | 193.58 | % | ||||||||||||||||||||
$ | 9.24 | (7.36 | )% | $ | 18,592 | 1.03 | % | 2.82 | % | 1.18 | % | 133.50 | % | ||||||||||||||||||||
$ | 9.86 | 0.40 | % | $ | 35,384 | 0.53 | % | 0.66 | % | 0.55 | % | 66.19 | % | ||||||||||||||||||||
$ | 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 | % |
159
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 | Return of capital | Total Distributions | |||||||||||||||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.07 | 0.13 | (0.06 | ) | 0.07 | (0.28 | ) | — | — | (0.28 | ) | ||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.21 | 0.16 | 0.04 | 0.20 | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.67 | 0.31 | (0.07 | ) | 0.24 | (0.37 | ) | — | — | (0.37 | ) | ||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||||
Sterling Capital Corporate Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.25 | 0.32 | (0.14 | ) | 0.18 | (0.31 | ) | (0.01 | ) | (0.01 | ) | (0.33 | ) | ||||||||||||||||||||||||||
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(d) | $ | 10.00 | 0.08 | (0.07 | ) | 0.01 | (0.07 | ) | — | — | (0.07 | ) | ||||||||||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 9.91 | 0.23 | 0.12 | 0.35 | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||||||||||||
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(d) | $ | 10.00 | 0.06 | 0.12 | 0.18 | (0.07 | ) | — | — | (0.07 | ) | |||||||||||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 10.84 | 0.28 | (0.05 | ) | 0.23 | (0.28 | ) | (0.18 | ) | — | (0.46 | ) | |||||||||||||||||||||||||||
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 | (e) | 0.35 | (0.32 | ) | (0.05 | ) | — | (0.37 | ) | |||||||||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2015 | $ | 11.25 | 0.23 | — | (f) | 0.23 | (0.23 | ) | (0.06 | ) | — | (0.29 | ) | |||||||||||||||||||||||||||
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 | ) |
* | During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). If such reductions had not occurred, the ratios would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Not annualized for periods less than one year. |
(c) | Annualized for periods less than one year. |
(d) | Period from commencement of operations. |
(e) | The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period. |
(f) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements.
160
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) | ||||||||||||||||||||||||||||
$ 8.86 | 0.82 | % | $ 78,390 | 0.55 | % | 1.41 | % | 0.57 | % | 55.74 | % | |||||||||||||||||||||||
$ 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 | % | |||||||||||||||||||||||
$10.19 | 1.98 | % | $ 21,648 | 0.67 | % | 1.56 | % | 0.73 | % | 62.02 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$10.54 | 2.29 | % | $612,927 | 0.48 | % | 2.88 | % | 0.58 | % | 41.37 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$10.10 | 1.76 | % | $ 63,992 | 0.63 | % | 3.12 | % | 0.63 | % | 33.94 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$ 9.98 | 3.54 | % | $ 46,249 | 0.59 | % | 2.28 | % | 0.63 | % | 19.85 | % | |||||||||||||||||||||||
$ 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 | % | |||||||||||||||||||||||
$10.61 | 2.15 | % | $ 9,533 | 0.70 | % | 2.62 | % | 0.79 | % | 17.34 | % | |||||||||||||||||||||||
$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 | % | |||||||||||||||||||||||
$11.19 | 2.05 | % | $ 28,968 | 0.65 | % | 2.07 | % | 0.71 | % | 18.38 | % | |||||||||||||||||||||||
$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 | % |
161
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 Year | 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 | ||||||||||||||
Year Ended September 30, 2015 | $10.98 | 0.27 | 0.01 | 0.28 | (0.27) | (0.02) | (0.29) | |||||||
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) | |||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||
Year Ended September 30, 2015 | $11.07 | 0.24 | 0.01 | 0.25 | (0.24) | (0.02) | (0.26) | |||||||
Year Ended September 30, 2014 | $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) | |||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||
Year Ended September 30, 2015 | $12.06 | 0.28 | (0.01) | 0.27 | (0.28) | (0.07) | (0.35) | |||||||
Year Ended September 30, 2014 | $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) | |||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||
Year Ended September 30, 2015 | $10.17 | 0.24 | 0.01 | 0.25 | (0.24) | (0.03) | (0.27) | |||||||
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) | |||||||
Sterling Capital Diversified Income Fund(b) | ||||||||||||||
Year Ended September 30, 2015 | $10.71 | 0.46 | (0.58) | (0.12) | (0.27) | — | (0.27) | |||||||
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) | |||||||
Sterling Capital Strategic Allocation Balanced Fund(b) | ||||||||||||||
Year Ended September 30, 2015 | $10.73 | 0.16 | (0.32) | (0.16) | (0.18) | — | (0.18) | |||||||
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) | |||||||
Sterling Capital Strategic Allocation Growth Fund(b) | ||||||||||||||
Year Ended September 30, 2015 | $10.41 | 0.11 | (0.38) | (0.27) | (0.13) | — | (0.13) | |||||||
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) |
* | 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) | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
See accompanying Notes to the Financial Statements.
162
|
Ratios/Supplementary Data | ||||||||||||||
Net Asset | Total | Net Assets, End of Year (000) | Ratio of net expenses to average net assets |
Ratio of net | Ratio of expenses to average net assets* | Portfolio turnover rate** | ||||||||
$10.97 | 2.53% | $147,048 | 0.59% | 2.44% | 0.66% | 16.80% | ||||||||
$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% | ||||||||
$11.06 | 2.27% | $ 58,132 | 0.61% | 2.17% | 0.68% | 12.53% | ||||||||
$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% | ||||||||
$11.98 | 2.24% | $ 78,506 | 0.60% | 2.33% | 0.67% | 16.01% | ||||||||
$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% | ||||||||
$10.15 | 2.44% | $ 66,716 | 0.60% | 2.37% | 0.67% | 10.34% | ||||||||
$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% | ||||||||
$10.32 | (1.23)% | $ 27,896 | 0.20% | 4.29% | 0.45% | 126.46% | ||||||||
$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% | ||||||||
$10.39 | (1.57)% | $ 106 | 0.15% | 1.43% | 0.40% | 49.24% | ||||||||
$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% | ||||||||
$10.01 | (2.67)% | $ 1,516 | 0.17% | 1.00% | 0.42% | 58.40% | ||||||||
$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% |
163
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 | 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 | ||||||||||||||
Year Ended September 30, 2015 | $18.93 | 0.02 | (0.14) | (0.12) | (0.05) | (1.17) | (1.22) | |||||||
Year Ended September 30, 2014 | $18.47 | —(c) | 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) | |||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||
Year Ended September 30, 2015 | $14.28 | 0.13 | 0.15 | 0.28 | (0.12) | (0.44) | (0.56) | |||||||
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) | — | — | — | |||||||
Sterling Capital Special Opportunities Fund | ||||||||||||||
Year Ended September 30, 2015 | $23.69 | (0.11) | 0.90 | 0.79 | — | (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(d) | 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) | |||||||
Sterling Capital Equity Income Fund | ||||||||||||||
Year Ended September 30, 2015 | $18.84 | 0.26 | (1.06) | (0.80) | (0.28) | (0.51) | (0.79) | |||||||
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) | |||||||
Sterling Capital Total Return Bond Fund | ||||||||||||||
Year Ended September 30, 2015 | $10.62 | 0.25 | (0.06) | 0.19 | (0.32) | — | (0.32) | |||||||
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) |
* | 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) | Net Assets are below $1,000. |
(c) | Amount is less than $0.005. |
(d) | 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.
164
|
Ratios/Supplementary Data | ||||||||||||||||
Net Asset Value, End of Year | Total Return (excludes sales charge) | Net Assets, End of Year (000) | Ratio of net expenses to average net assets | Ratio of net investment income loss to average net assets | Ratio of expenses to average net assets* | Portfolio turnover rate** | ||||||||||
$17.59 | (0.89)% | $ —(b) | 1.44% | 0.08% | 1.44% | 30.61% | ||||||||||
$18.93 | 9.68% | $ —(b) | 1.39% | 0.02% | 1.39% | 27.30% | ||||||||||
$18.47 | 30.65% | $ —(b) | 1.42% | (1.04)% | 1.42% | 34.03% | ||||||||||
$14.20 | 26.17% | $ —(b) | 1.44% | 0.59% | 1.44% | 21.62% | ||||||||||
$11.36 | (5.71)% | $ —(b) | 1.44% | 0.36% | 1.56% | 38.30% | ||||||||||
$14.00 | 1.84% | $ —(b) | 1.50% | 0.89% | 1.50% | 101.99% | ||||||||||
$14.28 | 7.01% | $ —(b) | 1.45% | 0.65% | 1.45% | 68.50% | ||||||||||
$15.21 | 28.48% | $ —(b) | 1.55% | 0.24% | 1.55% | 176.62% | ||||||||||
$12.03 | 21.49% | $ —(b) | 1.57% | 0.44% | 1.59% | 32.86% | ||||||||||
$10.79 | (3.49)% | $ —(b) | 1.57% | (0.12)% | 1.58% | 63.02% | ||||||||||
$23.28 | 3.51% | $ 46 | 1.47% | (0.44)% | 1.47% | 26.98% | ||||||||||
$23.69 | 21.36% | $ 26 | 1.46% | (0.41)% | 1.46% | 32.35% | ||||||||||
$21.72 | 21.28% | $ 450 | 1.49% | 0.04%(d) | 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% | ||||||||||
$17.25 | (4.40)% | $1,957 | 1.47% | 1.40% | 1.47% | 27.53% | ||||||||||
$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% | ||||||||||
$10.49 | 1.77% | $ 6 | 0.98% | 2.39% | 1.09% | 41.37% | ||||||||||
$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% |
165
|
Notes to Financial Statements |
September 30, 2015
|
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 Diversified Income Fund (formerly known as 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 Diversified Income Fund, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund are referred to as the “Funds of Funds.” The Funds, excluding the Funds of Funds, are referred to as the “Variable Net Asset Value Funds. “The Funds of Funds invest in underlying mutual funds as opposed to individual securities.
All Funds, other than the Tax-Free Funds, are “diversified” funds, as defined in the 1940 Act. The Tax-Free Funds are non-diversified funds, which means they may invest in the securities of a limited number of issuers.
By owning shares of underlying investment companies, each of the Funds of Funds invests, to varying degrees, in securities of U.S. and non-U.S. companies, including small and medium sized companies, and in debt securities. Funds of Funds with exposure to underlying equity funds may include funds that invest in real estate related securities. In addition, underlying investment companies may invest in derivatives and may engage in long/short equity strategies and in option writing strategies. The Funds of Funds except for Sterling Capital Diversified Income Fund 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. Financial information for the other underlying Funds is available at www.sec.gov.
The Funds are authorized to issue an unlimited amount of shares. As of September 30, 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 the Tax-Free Funds, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling
166
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund, sales of Class A shares over $500,000 are not subject to a sales load but will be subject to a CDSC of 0.50% of the purchase price if redeemed within 18 months of purchase. This charge is based on the lower of the price paid for the shares or their net asset value at the time of redemption. The Class B Shares of the Funds will be subject to a CDSC ranging from a maximum of 5.00% if redeemed less than one year after purchase to 0.00% if redeemed more than six years after purchase. Class C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase.
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 September 30, 2015, the Sterling Capital Special Opportunities Fund and Sterling Capital Equity Income Fund have written options valued by the Sterling Capital Funds’ Pricing Committee (the “Pricing Committee”) recorded at fair value of $10,000 and $8,000, and represent 0.00111% and 0.00051% of net assets, respectively. At September 30, 2015, Sterling Capital Long/Short Equity Fund has a security valued by the Pricing Committee recorded at a fair value of $56,292 and represents 0.05417% 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:
● Level 1 –quoted prices in active markets for identical securities
167
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
● Level 2 – based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
● Level 3 – based on significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the year or period ended September 30, 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 September 30, 2015 is as follows:
Level 1– Quoted Prices | Level 2– Other Significant | Level 3– Significant | Total | |||||||||||||||||
Assets: | ||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 253,284,255(a) | $ | — | $ | — | $ | 253,284,255 | ||||||||||||
Sterling Capital Mid Value Fund | 629,758,877(a) | — | — | 629,758,877 | ||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | 125,221,196(a) | — | — | 125,221,196 | ||||||||||||||||
Sterling Capital Special Opportunities Fund | 909,014,145(a) | — | — | 909,014,145 | ||||||||||||||||
Sterling Capital Equity Income Fund | 1,567,347,623(a) | — | — | 1,567,347,623 | ||||||||||||||||
Sterling Capital Long/Short Equity Fund | 98,101,238(a) | 1,660,000(a) | — | 99,761,238 | ||||||||||||||||
Sterling Capital Behavioral International Equity Fund | 656,531(b) | 18,411,422(a) | — | 19,067,953 | ||||||||||||||||
Sterling Capital Ultra Short Bond Fund | 940,153(b) | 42,545,077(a) | — | 43,485,230 | ||||||||||||||||
Sterling Capital Short Duration Bond Fund | 1,663,145(b) | 87,241,698(a) | — | 88,904,843 | ||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | 996,234(b) | 29,093,523(a) | — | 30,089,757 | ||||||||||||||||
Sterling Capital Total Return Bond Fund | 9,490,390(b) | 656,885,364(a) | — | 666,375,754 | ||||||||||||||||
Sterling Capital Corporate Fund | 2,083,399(b) | 62,385,148(a) | — | 64,468,547 | ||||||||||||||||
Sterling Capital Securitized Opportunities Fund | 605,716(b) | 45,770,846(a) | — | 46,376,562 | ||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | 623,771(b) | 13,438,702(a) | — | 14,062,473 | ||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | 412,638(b) | 36,065,639(a) | — | 36,478,277 | ||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | 5,963,766(b) | 187,917,575(a) | — | 193,881,341 | ||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | 1,922,364(b) | 74,613,341(a) | — | 76,535,705 | ||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | 971,872(b) | 115,950,788(a) | — | 116,922,660 | ||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | 1,361,750(b) | 100,075,600(a) | — | 101,437,350 | ||||||||||||||||
Sterling Capital Diversified Income Fund | 43,857,515(a) | — | 43,857,515 | |||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | 35,814,143(a) | — | — | 35,814,143 | ||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | 25,729,708(a) | — | — | 25,729,708 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Investments Sold Short | ||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | $ | 27,862,713(a) | $ | 56,292 | $ | — | $ | 27,919,005 | ||||||||||||
Other Financial Instruments- Written Options (Equity Risk) | ||||||||||||||||||||
Sterling Capital Special Opportunities Fund (c) | 263,800 | 10,000 | — | 273,800 | ||||||||||||||||
Sterling Capital Equity Income Fund (c) | 894,050 | 8,000 | — | 902,050 | ||||||||||||||||
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(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 fiscal year ended September 30, 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.
168
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
Credit Enhancements — Certain obligations held in the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements; and third party insurance (i.e., AMBAC).
Derivative Instruments Categorized by Risk Exposure — The Funds’ derivative contracts held at September 30, 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 September 30, 2015:
Fair Values of Derivative Instruments | Statements of Assets | Sterling Capital | Sterling Capital Income Fund | ||||||||||||
Liabilities | |||||||||||||||
Equity contracts | Call options written | $ | 273,800 | $ | 902,050 |
The effect of derivative financial instruments on the Statements of Operations for the fiscal year ended September 30, 2015:
Net Realized Gain (Loss) | Sterling Capital Special Opportunities Fund | Sterling Capital Equity Income Fund | Sterling Capital Long/Short Equity Fund | ||||||||||||
Options (equity contracts)* | $1,620,523 | $1,281,359 | $ | (662,927) | |||||||||||
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* | Purchased options gain/loss are included in realized gain (loss) on investments. |
Net Change in Unrealized Appreciation (Depreciation) | Sterling Capital Special Opportunities Fund | Sterling Capital Equity Income Fund | ||||||||
Written options (equity contracts) | $ | (136,108 | ) | $ | (278,519 | ) |
For the fiscal year ended September 30, 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 | 5,208 | 3,900 | 159 | ||||||||||||
Average premium of written option contracts | $842,527 | $1,032,407 | $ 5,630 | ||||||||||||
Average number of purchased option contracts | — | — | 448 | ||||||||||||
Average premium of purchased option contracts | $ — | $ — | $131,712 |
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.
169
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
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. Income and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.
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 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.
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. The Funds did not hold any mortgage dollar rolls during the year.
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). Sterling Capital Diversified Income Fund may invest in underlying funds that engage in options writing strategies (including cash-secured put writing and covered call writing).
170
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
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.
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 Fund, Sterling Capital Equity Income Fund and Sterling Capital Long/Short Equity Fund 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 year ended September 30, 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 year | 5,700 | $ | 1,205,292 | 2,813 | $ | 1,282,703 | — | $ | — | |||||||||||||||||||||
Options written | 14,330 | 2,050,273 | 12,275 | 2,520,865 | 1,492 | 372,069 | ||||||||||||||||||||||||
Options closed | (4,100 | ) | (722,177 | ) | (5,675 | ) | (1,824,927 | ) | (1,492 | ) | (372,069 | ) | ||||||||||||||||||
Options expired | (8,730 | ) | (1,430,687 | ) | (4,588 | ) | (728,439 | ) | — | — | ||||||||||||||||||||
Options exercised | (1,800 | ) | (498,517 | ) | (500 | ) | (99,908 | ) | — | — | ||||||||||||||||||||
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| |||||||||||||||||||
Balance at end of year | 5,400 | $ | 604,184 | 4,325 | $ | 1,150,294 | — | $ | — | |||||||||||||||||||||
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The following is a summary of written call options outstanding as of September 30, 2015:
Number of Contracts | Value | |||||||||
Sterling Capital Special Opportunities Fund | ||||||||||
Activision Blizzard, Inc., $33.00, 11/20/15 | 800 | $ | (67,200 | ) | ||||||
Activision Blizzard, Inc., $34.00, 1/15/16 | 1,800 | (190,800 | ) | |||||||
Akamai Technologies, Inc., $90.00, 11/20/15 | 800 | (800 | ) | |||||||
J.B. Hunt Transport Services, Inc., $100, 11/20/15(a) | 1,000 | (10,000 | ) | |||||||
Lennar Corp., Class A, $60.00, 11/20/15 | 1,000 | (5,000 | ) | |||||||
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| |||||||
5,400 | $ | (273,800 | ) | |||||||
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| |||||||
Sterling Capital Equity Income Fund | ||||||||||
Anthem, Inc., $155.00, 12/18/15 | 500 | $ | (127,500 | ) | ||||||
Dunkin’ Brands Group, Inc., $57.50, 12/18/15 | 100 | (2,500 | ) | |||||||
Dunkin’ Brands Group, Inc., $57.50, 01/15/16 | 900 | (31,500 | ) | |||||||
Maxim Integrated Products, Inc., $40.00, 11/20/15(a) | 1,600 | (8,000 | ) | |||||||
Time Warner Cable, Inc., $190.00, 1/15/16 | 1,225 | (732,550 | ) | |||||||
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4,325 | $ | (902,050 | ) | |||||||
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(a) | Security was fair valued under methods approved by the Board. |
171
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
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.
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. Sterling Capital Diversified Income Fund may invest in underlying funds that engage in long/short equity strategies.
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 fiscal year ended September 30, 2015 were as follows:
Purchases | Sales | |||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 371,349,654 | $ | 374,347,424 | ||||
Sterling Capital Mid Value Fund | 220,376,612 | 324,988,653 | ||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | 134,945,342 | 140,040,105 | ||||||
Sterling Capital Special Opportunities Fund | 255,370,673 | 464,146,388 | ||||||
Sterling Capital Equity Income Fund | 492,575,800 | 809,353,192 | ||||||
Sterling Capital Long/Short Equity Fund | 217,857,977 | 210,272,135 | ||||||
Sterling Capital Behavioral International Equity Fund | 47,409,214 | 26,970,838 | ||||||
Sterling Capital Ultra Short Bond Fund | 28,580,071 | 30,468,980 | ||||||
Sterling Capital Short Duration Bond Fund | 46,324,178 | 40,660,208 | ||||||
Sterling Capital Intermediate U.S. Government Fund | 3,074,067 | 4,850,701 |
172
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
Purchases | Sales | |||||||
Sterling Capital Total Return Bond Fund | $ | 372,720,943 | $ | 152,565,993 | ||||
Sterling Capital Corporate Fund | 34,458,153 | 19,790,240 | ||||||
Sterling Capital Securitized Opportunities Fund | 11,176,552 | 2,496,635 | ||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | 2,460,469 | 3,751,742 | ||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | 6,609,922 | 6,609,415 | ||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | 32,816,206 | 40,519,004 | ||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | 18,423,195 | 8,607,675 | ||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | 18,856,803 | 20,147,290 | ||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | 10,410,912 | 10,925,297 | ||||||
Sterling Capital Diversified Income Fund | 60,831,018 | 33,399,207 | ||||||
Sterling Capital Strategic Allocation Balanced Fund | 18,483,091 | 19,796,000 | ||||||
Sterling Capital Strategic Allocation Growth Fund | 15,527,078 | 15,681,500 |
Purchases and sales of U.S. government securities (excluding securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2015 were as follows:
Purchases | Sales | |||||||
Sterling Capital Long/Short Equity Fund | $ | 370,519 | $ | 146,026 | ||||
Sterling Capital Ultra Short Bond Fund | 120,322 | — | ||||||
Sterling Capital Short Duration Bond Fund | 9,567,577 | 9,388,371 | ||||||
Sterling Capital Intermediate U.S. Government Fund | 14,914,197 | 17,745,663 | ||||||
Sterling Capital Total Return Bond Fund | 133,246,618 | 114,176,701 | ||||||
Sterling Capital Securitized Opportunities Fund | 11,433,193 | 5,683,342 |
4. | Investments in Affiliated Issuers: |
A summary of the Funds’ transactions in the shares of affiliated issuers during the fiscal year ended September 30, 2015 is as follows:
Shares Held at September 30, 2014 | Shares Purchased | Shares Sold | Shares Held at September 30, 2015 | Value at September 30, 2015 | Dividend Income October 1, 2014- September 30, 2015 | Distributions and Net Realized Gain (Loss) October 1, 2014- September 30, 2015 | |||||||||||||||||||||||||||||
Sterling Capital Diversified Income Fund | |||||||||||||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund, Institutional Shares | — | 379,037 | 379,037 | — | $ | — | $ | 9,548 | $ | 126,036 | |||||||||||||||||||||||||
Sterling Capital Corporate Fund, Institutional Shares | — | 225,716 | 9,302 | 216,414 | 2,185,778 | 19,408 | (744 | ) | |||||||||||||||||||||||||||
Sterling Capital Equity Income Fund, Institutional Shares | 194,874 | 13,377 | 208,251 | — | — | 18,291 | 649,029 | ||||||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund, Institutional Shares | — | 114,547 | 114,547 | — | — | — | 55,671 | ||||||||||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund, Institutional Shares | — | 230,576 | 11,343 | 219,233 | 2,187,942 | 15,883 | 113 | ||||||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund, Institutional Shares | 154,500 | 13,794 | 168,294 | — | — | — | 983,695 | ||||||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund, Institutional Shares | 1,027,740 | 43,465 | 1,071,205 | — | — | 265,396 | 307,542 | ||||||||||||||||||||||||||||
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Total Affiliates | 1,377,114 | 1,020,512 | 1,961,979 | 435,647 | $ | 4,373,720 | $ | 328,526 | $ | 2,121,342 | |||||||||||||||||||||||||
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173
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
Shares Held at September 30, 2014 | Shares Purchased | Shares Sold | Shares Held at September 30, 2015 | Value at September 30, 2015 | Dividend Income October 1, 2014- September 30, 2015 | Distributions and Net Realized Gain (Loss) October 1, 2014- September 30, 2015 | |||||||||||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | |||||||||||||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund, Institutional Shares | — | 1,181,186 | 141,107 | 1,040,079 | $ | 9,610,331 | $ | 29,015 | $ | 5,932 | |||||||||||||||||||||||||
Sterling Capital Equity Income Fund, Institutional Shares | 602,678 | 31,448 | 356,925 | 277,201 | 4,820,523 | 106,454 | 970,703 | ||||||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund, Institutional Shares | — | 406,868 | 14,032 | 392,836 | 3,504,098 | — | 6,062 | ||||||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund, Institutional Shares | 477,790 | 34,828 | 309,794 | 202,824 | 4,823,149 | — | 1,833,685 | ||||||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund, Institutional Shares | 1,388,302 | 121,076 | 355,130 | 1,154,248 | 12,165,778 | 464,835 | 230,251 | ||||||||||||||||||||||||||||
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Total Affiliates | 2,468,770 | 1,775,406 | 1,176,988 | 3,067,188 | $ | 34,923,879 | $ | 600,304 | $ | 3,046,633 | |||||||||||||||||||||||||
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Sterling Capital Strategic Allocation Growth Fund | |||||||||||||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund, Institutional Shares | — | 1,061,097 | 112,293 | 948,804 | $ | 8,766,950 | $ | 25,844 | $ | 1,067 | |||||||||||||||||||||||||
Sterling Capital Equity Income Fund, Institutional Shares | 533,434 | 18,280 | 298,779 | 252,935 | 4,398,539 | 95,619 | 818,223 | ||||||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund, Institutional Shares | — | 350,853 | 8,060 | 342,793 | 3,057,717 | — | 3,776 | ||||||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund, Institutional Shares | 422,929 | 18,532 | 256,413 | 185,048 | 4,400,438 | — | 1,585,393 | ||||||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund, Institutional Shares | 595,007 | 67,090 | 229,682 | 432,415 | 4,557,655 | 180,503 | 175,917 | ||||||||||||||||||||||||||||
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Total Affiliates | 1,551,370 | 1,515,852 | 905,227 | 2,161,995 | $ | 25,181,299 | $ | 301,966 | $ | 2,584,376 | |||||||||||||||||||||||||
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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 fiscal year ended September 30, 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 | %(6) | 0.20 | % | 0.20 | %(6) | ||||||||||||
Sterling Capital Short Duration Bond Fund | 0.30 | % | 0.28 | %(1) | 0.30 | % | 0.28 | %(2) |
174
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 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 Intermediate U.S. Government Fund | 0.43 | % | 0.43 | %(6) | 0.43 | % | 0.35 | %(2),(6) | ||||||||||||
Sterling Capital Total Return Bond Fund | 0.37 | % | 0.27 | %(7) | 0.37 | % | 0.27 | %(7) | ||||||||||||
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 | %(6) | 0.45 | % | 0.35 | %(2),(6) | ||||||||||||
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 Diversified Income 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. |
(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) | For all or a portion of the fiscal year ended September 30, 2015, Sterling Capital voluntarily waived and/or reimbursed certain expenses of the Funds. Voluntary waivers and reimbursements of expenses may be discontinued at any time. |
(7) | Sterling Capital contractually agreed to limit advisory fees paid by the Fund to 0.27% from September 29, 2014 through January 31, 2016. |
Pursuant to sub-advisory agreements with Sterling Capital, during the reporting period, Highland Capital Healthcare Advisors, L.P., Gator Capital Management, Lucas Capital Management LLC, Emancipation Capital, LLC and Sanborn Kilcollin Partners, 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. On or about October 8, 2014 the sub-advisory agreement with Sanborn Kilcollin Partners, LLC was terminated. 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, 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 year ended September 30, 2015, the Funds paid $92,660 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
175
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
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 year ended September 30, 2015, the Distributor received $737,549 from commissions earned on sales of shares of the Variable Net Asset Value Funds. Commissions paid to affiliated broker-dealers during the year ended September 30, 2015 were $492,384. The fees may be used by the Distributor to pay banks, broker dealers and other institutions, including affiliates of the Advisor.
Sterling Capital, the Distributor and/or their affiliates may pay out of their own bona fide profits (and not as an additional charge to a fund) compensation to selected affiliated and unaffiliated brokers, dealers and other financial intermediaries in connection with the sale and distribution of the shares and/or the retention and/or servicing of Fund investors and Fund shares. These are additional payments over and above the sales charge (including Rule 12b-1 fees) and service fees paid by the Funds. The amount of these payments is determined at the discretion of the Advisor, the Distributor and/or their affiliates from time to time, may be substantial, and may be different for different financial advisors. Receipt of, or the prospect of receiving, this additional compensation may influence your financial intermediary’s recommendation of a Fund or a of a particular share class of a Fund.
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 $70,000 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. Each Trustee serving on a Committee of the Board receives a fee of $4,000 for each Committee meeting attended in person and $1,500 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 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 year ended September 30, 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 Large Cap Value Equity Fund | 1.25 | % | $ | 35,000 | 1 | $ | 1 | $ | 35,000 | ||||||||||||||||
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 | % | 1,609,885 | 14 | 589 | 5,607,000 | |||||||||||||||||||
Sterling Capital Long/Short Equity Fund | 1.25 | % | 4,421,231 | 13 | 2,044 | 19,492,000 | |||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | 1.25 | % | 1,132,000 | 1 | 2 | 1,132,000 |
176
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
8. | Federal Tax Information: |
It is the policy of each Fund to continue to qualify as a regulated investment company as defined in the Internal Revenue Code of 1986, as amended (the “Code”), by complying with the applicable provisions of the Code and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income tax 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-2010 capital losses”) are carried forward indefinitely. Furthermore, post-2010 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.
At September 30, 2015, 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 | $ | — | $ | — | $ | 8,858,685 | 2017 | |||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | — | — | 10,325,708 | 2018 | ||||||||||||||||
Sterling Capital Mid Value Fund | — | — | 6,354,182 | 2017 | ||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | — | — | 2,370,804 | 2017 | ||||||||||||||||
Sterling Capital Behavioral International Equity Fund | 946,403 | — | — | — | ||||||||||||||||
Sterling Capital Ultra Short Fund | 66,873 | 270,173 | — | — | ||||||||||||||||
Sterling Capital Short Duration Bond Fund | 1,172,079 | 2,371,503 | — | — | ||||||||||||||||
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 Intermediate U.S. Government Fund | 250,655 | 101,957 | — | — | ||||||||||||||||
Sterling Capital Total Return Bond Fund | 4,229,612 | 1,875,370 | — | — | ||||||||||||||||
Sterling Capital Corporate Fund | 108,928 | 19,682 | — | — | ||||||||||||||||
Sterling Capital Securitized Opportunities Fund | 1,384,668 | 355,951 | — | — | ||||||||||||||||
Sterling Capital Diversified Income Fund | — | — | 5,021,747 | 2018 | ||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | — | — | 1,083,564 | 2018 | ||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | — | — | 3,964,763 | 2019 | ||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | — | — | 2,740,917 | 2018 | ||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | — | — | 4,640,596 | 2019 | ||||||||||||||||
|
* | Post-Enactment Losses: Must be utilized prior to losses subject to expiration. |
Capital loss carryforwards utilized in the current year were $20,236,440, $3,177,091, $1,185,402, $40,431, $1,436,268, $2,824,380 and $2,336,137 for Sterling Capital Behavioral Large Cap Value Equity Fund, Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund, Sterling Capital Securitized Opportunities Fund, Sterling Capital Diversified Income Fund, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund, respectively. Sterling Capital Short Duration Bond Fund had capital loss carryforwards of $3,940,976 expire in the current year. For Sterling Capital Behavioral Small Cap Value Equity Fund and Sterling Capital MidValue Fund capital losses acquired in the reorganization are subject to limitations under Internal Revenue Code Section 382-384.
177
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
The character of income and gains distributed is determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclass of net operating losses, disposition of market discount and market premium bonds, paydown gains and losses, mortgage dollar roll gains and losses, short dividend expense, the character of distributions and investments in RICs, partnerships, royalty trusts and PFICs), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. These reclassifications have no impact on net assets or net asset values per share.
As of September 30, 2015, these reclassifications were as follows:
Decrease | Increase/ | Increase/ | |||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | — | $ | 15,022 | $ | (15,022 | ) | ||||||||
Sterling Capital Mid Value Fund | — | (15 | ) | 15 | |||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | — | (53,365 | ) | 53,365 | |||||||||||
Sterling Capital Special Opportunities Fund | — | 2,092,663 | (2,092,663 | ) | |||||||||||
Sterling Capital Equity Income Fund | (2,223 | ) | 1,190,530 | (1,188,307 | ) | ||||||||||
Sterling Capital Long/Short Equity Fund | (2,170 | ) | 1,773,049 | (1,770,879 | ) | ||||||||||
Sterling Capital Behavioral International Equity Fund | (7,561 | ) | (81,750 | ) | 89,311 | ||||||||||
Sterling Capital Ultra Short Bond Fund | (2,899 | ) | 256,156 | (253,257 | ) | ||||||||||
Sterling Capital Short Duration Bond Fund | (3,940,976 | ) | 1,602,629 | 2,338,347 | |||||||||||
Sterling Capital Intermediate U.S. Government Fund | — | 210,406 | (210,406 | ) | |||||||||||
Sterling Capital Total Return Bond Fund | — | 3,971,331 | (3,971,331 | ) | |||||||||||
Sterling Capital Corporate Fund | — | (1,552 | ) | 1,552 | |||||||||||
Sterling Capital Securitized Opportunities Fund | (348 | ) | 203,708 | (203,360 | ) | ||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | — | 9,056 | (9,056 | ) | |||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | — | (2,170 | ) | 2,170 | |||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | — | (2,687 | ) | 2,687 | |||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | — | 20 | (20 | ) | |||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | — | (68 | ) | 68 | |||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | — | 70,639 | (70,639 | ) | |||||||||||
Sterling Capital Diversified Income Fund | — | 58,753 | (58,753 | ) | |||||||||||
Sterling Capital Strategic Allocation Balanced Fund | — | 81,608 | (81,608 | ) | |||||||||||
Sterling Capital Strategic Allocation Growth Fund | — | 71,832 | (71,832 | ) |
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2015 was as follows:
Distributions paid from | ||||||||||||||||||||||||||||||
Ordinary | Net | Total Taxable | Return | Tax Exempt | Total | |||||||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 4,306,942 | $ | — | $ | 4,306,942 | $ | — | $ | — | $ | 4,306,942 | ||||||||||||||||||
Sterling Capital Mid Value Fund | 13,589,934 | 37,147,968 | 50,737,902 | — | — | 50,737,902 | ||||||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | 4,117,892 | 2,067,752 | 6,185,644 | — | — | 6,185,644 | ||||||||||||||||||||||||
Sterling Capital Special Opportunities Fund | 15,443,582 | 37,847,865 | 53,291,447 | — | — | 53,291,447 | ||||||||||||||||||||||||
Sterling Capital Equity Income Fund | 31,465,335 | 53,619,402 | 85,084,737 | — | — | 85,084,737 | ||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | 3,051,801 | 46,785 | 3,098,586 | — | — | 3,098,586 | ||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | 64,770 | — | 64,770 | — | — | 64,770 | ||||||||||||||||||||||||
Sterling Capital Ultra Short Bond Fund | 558,799 | — | 558,799 | — | — | 558,799 | ||||||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | 2,880,133 | — | 2,880,133 | — | — | 2,880,133 | ||||||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | 689,893 | — | 689,893 | — | — | 689,893 | ||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | 22,999,367 | — | 22,999,367 | — | — | 22,999,367 | ||||||||||||||||||||||||
Sterling Capital Corporate Fund | 1,861,461 | 60,465 | 1,921,926 | 30,792 | — | 1,952,718 | ||||||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | 1,157,473 | — | 1,157,473 | — | — | 1,157,473 | ||||||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | 7,426 | 247,165 | 254,591 | — | 372,666 | 627,257 | ||||||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | 16 | 184,451 | 184,467 | — | 752,870 | 937,337 | ||||||||||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | 190 | 323,183 | 323,373 | — | 4,766,517 | 5,089,890 | ||||||||||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | 20 | 111,719 | 111,739 | — | 1,490,837 | 1,602,576 |
178
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
Distributions paid from | ||||||||||||||||||||||||||||||
Ordinary | Net | Total Taxable | Return | Tax Exempt | Total | |||||||||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | $ | 41,448 | $ | 626,853 | $ | 668,301 | $ | — | $ | 2,703,034 | $ | 3,371,335 | ||||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | 70,946 | 271,918 | 342,864 | — | 2,292,554 | 2,635,418 | ||||||||||||||||||||||||
Sterling Capital Diversified Income Fund | 736,807 | — | 736,807 | — | — | 736,807 | ||||||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | 512,549 | — | 512,549 | — | — | 512,549 | ||||||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | 249,557 | — | 249,557 | — | — | 249,557 |
* | Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes. |
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2014 was as follows:
Distributions paid from | |||||||||||||||||||||||||
Ordinary | Net | Total Taxable | Tax Exempt | Total | |||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 3,094,252 | $ | — | $ | 3,094,252 | $ | — | $ | 3,094,252 | |||||||||||||||
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 Diversified Income 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. |
As of September 30, 2015, the components of accumulated earnings (deficit) on a tax basis were as follows:
Undistributed Ordinary Income/Tax Exempt Income | Undistributed Long Term Capital Gains | Accumulated | Distributions Payable | Accumulated Capital and Other Losses | Unrealized Appreciation (Depreciation)* | Total | ||||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 177,074 | $ | — | $ | 177,074 | $ | — | $ | (19,184,393 | ) | $ | 7,232,572 | $ | (11,774,747 | ) | ||||||||||||
Sterling Capital Mid Value Fund | 176,188 | 100,847,551 | 101,023,739 | — | (6,354,182 | ) | 21,343,716 | 116,013,273 | ||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | 154,817 | 59,855 | 214,672 | — | (2,370,804 | ) | 8,808,518 | 6,652,386 | ||||||||||||||||||||
Sterling Capital Special Opportunities Fund | 3,765,025 | 127,406,139 | 131,171,164 | — | — | 204,606,360 | 335,777,524 |
179
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
Undistributed Ordinary Income/Tax Exempt Income | Undistributed Long Term Capital Gains | Accumulated Earnings | Distributions Payable | Accumulated Capital and Other Losses | Unrealized Appreciation (Depreciation)* | Total | |||||||||||||||||||||||||||||
Sterling Capital Equity Income Fund | $2,253,689 | $92,609,301 | $94,862,990 | $ | (1,148 | ) | $ | — | $199,180,455 | $294,042,297 | |||||||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | 1,790,564 | 4,618 | 1,795,182 | — | — | (19,405,424 | ) | (17,610,242 | ) | ||||||||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | 391,604 | — | 391,604 | — | (946,403 | ) | (900,246 | ) | (1,455,045 | ) | |||||||||||||||||||||||||
Sterling Capital Ultra Short Bond Fund | — | — | — | (1,971 | ) | (337,046 | ) | (334,051 | ) | (673,068 | ) | ||||||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | 119,228 | — | 119,228 | (128,554 | ) | (4,089,609 | ) | (2,394,385 | ) | (6,493,320 | ) | ||||||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | 215,036 | — | 215,036 | (24,609 | ) | (7,243,399 | ) | 519,080 | (6,533,892 | ) | |||||||||||||||||||||||||
Sterling Capital Total Return Bond Fund | 990,906 | — | 990,906 | (685,999 | ) | (6,104,982 | ) | (3,353,623 | ) | (9,153,698 | ) | ||||||||||||||||||||||||
Sterling Capital Corporate Fund | — | — | — | (442 | ) | (128,610 | ) | 915 | (128,137 | ) | |||||||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | — | — | — | — | (1,740,619 | ) | 551,655 | (1,188,964 | ) | ||||||||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | 31,427 | 162,513 | 193,940 | (18,376 | ) | — | 813,959 | 989,523 | |||||||||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | 39,407 | 217,721 | 257,128 | (35,730 | ) | — | 1,386,361 | 1,607,759 | |||||||||||||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | 348,329 | 1,028,298 | 1,376,627 | (235,960 | ) | — | 9,684,303 | 10,824,970 | |||||||||||||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | 104,574 | 249,935 | 354,509 | (77,575 | ) | — | 2,645,537 | 2,922,471 | |||||||||||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | 193,405 | 397,011 | 590,416 | (130,787 | ) | (25,705 | ) | 5,276,526 | 5,710,450 | ||||||||||||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | 182,059 | 480,405 | 662,464 | (114,374 | ) | — | 4,112,412 | 4,660,502 | |||||||||||||||||||||||||||
Sterling Capital Diversified Income Fund | 142,187 | — | 142,187 | (14,518 | ) | (5,021,747 | ) | (2,319,508 | ) | (7,213,586 | ) | ||||||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | 21,685 | — | 21,685 | (1,654 | ) | (5,048,327 | ) | (83,996 | ) | (5,112,292 | ) | ||||||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | 10,328 | — | 10,328 | (297 | ) | (7,381,513 | ) | (112,657 | ) | (7,484,139 | ) |
* | The primary differences between book basis and tax basis unrealized appreciation (depreciation) were due to the deferral of losses on wash sales and straddles, recognition of gain on constructive sales, basis adjustments on partnership interests, hybrid securities, royalty trusts, PFICs and the deferral of market discount and premium until point of sale. |
Under current tax law, net capital losses or, if there are no such losses, net long-term capital losses or net short-term capital losses realized after October 31, net ordinary losses from the sale, exchange or other taxable disposition of property realized after October 31 and other net 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 Fund had deferred qualified late-year losses, which will be treated as arising on the first business day of the fiscal year ending September 30, 2015:
Qualified Late-Year Capital Losses | |||||
Sterling Capital Virginia Intermediate Tax-Free Fund | $ | 25,705 |
180
Sterling Capital Funds
|
Notes to Financial Statements — (continued) |
September 30, 2015
|
As of September 30, 2015, federal income tax cost, gross unrealized appreciation and gross unrealized depreciation on securities were as follows:
Tax Cost | Gross Tax | Gross Tax | Net Tax | |||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 246,051,683 | $ | 21,769,163 | $ | (14,536,591 | ) | $ | 7,232,572 | |||||||||||
Sterling Capital Mid Value Fund | 608,415,161 | 100,534,864 | (79,191,148 | ) | 21,343,716 | |||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | 116,412,678 | 13,349,284 | (4,540,766 | ) | 8,808,518 | |||||||||||||||
Sterling Capital Special Opportunities Fund | 704,738,169 | 235,639,626 | (31,363,650 | ) | 204,275,976 | |||||||||||||||
Sterling Capital Equity Income Fund | 1,368,415,412 | 272,141,299 | (73,209,088 | ) | 198,932,211 | |||||||||||||||
Sterling Capital Long/Short Equity Fund | 91,247,657 | 5,068,569 | (24,473,993 | ) | (19,405,424 | ) | ||||||||||||||
Sterling Capital Behavioral International Equity Fund | 19,968,247 | 655,662 | (1,555,956 | ) | (900,294 | ) | ||||||||||||||
Sterling Capital Ultra Short Bond Fund | 43,819,281 | 17,627 | (351,678 | ) | (334,051 | ) | ||||||||||||||
Sterling Capital Short Duration Bond Fund | 91,299,228 | 155,581 | (2,549,966 | ) | (2,394,385 | ) | ||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | 29,570,677 | 742,453 | (223,373 | ) | 519,080 | |||||||||||||||
Sterling Capital Total Return Bond Fund | 669,729,377 | 10,238,463 | (13,592,086 | ) | (3,353,623 | ) | ||||||||||||||
Sterling Capital Corporate Fund | 64,467,632 | 820,675 | (819,760 | ) | 915 | |||||||||||||||
Sterling Capital Securitized Opportunities Fund | 45,824,907 | 732,046 | (180,391 | ) | 551,655 | |||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | 13,248,514 | 815,715 | (1,756 | ) | 813,959 | |||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | 35,091,916 | 1,391,658 | (5,297 | ) | 1,386,361 | |||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | 184,197,038 | 9,789,245 | (104,942 | ) | 9,684,303 | |||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | 73,890,168 | 2,672,488 | (26,951 | ) | 2,645,537 | |||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | 111,646,134 | 5,321,859 | (45,333 | ) | 5,276,526 | |||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | 97,324,938 | 4,146,924 | (34,512 | ) | 4,112,412 | |||||||||||||||
Sterling Capital Diversified Income Fund | 46,177,023 | 237,197 | (2,556,705 | ) | (2,319,508 | ) | ||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | 35,898,139 | 1,116,989 | (1,200,985 | ) | (83,996 | ) | ||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | 25,842,365 | 1,050,631 | (1,163,288 | ) | (112,657 | ) |
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 items:
On November 19, 2015, the Board of Trustees approved an investment sub-advisory agreement between Caerus Investors, LLC (“Caerus”) and the Advisor, pursuant to which Caerus will act as a sub-adviser to the Sterling Capital Long/Short Equity Fund. The Advisor will pay an investment sub-advisory fee to Caerus under the investment sub-advisory agreement. It is expected that Caerus will begin acting as sub-adviser to the Fund on or about February 1, 2016. Additional information regarding Caerus and the investment sub-advisory agreement will be provided to shareholders of the Fund.
At the close of business on Friday, November 13, 2015, the Stratton Small Cap Value Fund, Stratton Mid Cap Value Fund and Stratton Real Estate Fund reorganized with and into the Sterling Capital Stratton Small Cap Value Fund, Sterling Capital Stratton Mid Cap Value Fund and Sterling Capital Stratton Real Estate Fund, respectively.
181
Report of Independent Registered Public Accounting Firm
The Board of Trustees and Shareholders of Sterling Capital Funds:
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of the Sterling Capital Funds (the Funds) comprised of the Sterling Capital Behavioral Large Cap Value Equity Fund (formerly, the Sterling Capital Large Cap Value Diversified Fund), Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund (formerly, the 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 Diversified Income Fund (formerly, the Sterling Capital Strategic Allocation Conservative Fund), Sterling Capital Strategic Allocation Balanced Fund, and Sterling Capital Strategic Allocation Growth Fund, as of September 30, 2015, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, the statement of cash flows for the Sterling Capital Long/Short Equity Fund for the period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2015, by correspondence with the custodian, prime broker, transfer agent of the underlying fund, and brokers, or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds comprising Sterling Capital Funds as of September 30, 2015, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, cash flows for the Sterling Capital Long/Short Equity Fund for the period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
November 20, 2015
182
Sterling Capital Funds
|
September 30, 2015 |
Notice to Shareholders (Unaudited)
All amounts and percentages below are based on financial information available as of the date of this annual report and, accordingly are subject to change. For each item it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the fiscal year ended September 30, 2015, each Fund is reporting the following items with regard to distributions paid during the year.
Long-Term Capital Gain | Qualified Dividend Income % | (for corporate shareholders) Dividends Received Deduction % | Exempt- Interest Dividend | U.S. Government Income | Foreign Taxes Paid | Foreign Source Income | ||||||||||||||||||||||
Sterling Capital Behavioral Large Cap Value Equity Fund | $ | — | 100.00% | 100.00% | $ | — | — | $ | — | — | ||||||||||||||||||
Sterling Capital Mid Value Fund | 37,147,968 | 76.40% | 69.66% | — | — | — | — | |||||||||||||||||||||
Sterling Capital Behavioral Small Cap Value Equity Fund | 2,067,752 | 65.10% | 64.53% | — | — | — | — | |||||||||||||||||||||
Sterling Capital Special Opportunities Fund | 37,847,865 | 53.92% | 45.87% | — | — | — | — | |||||||||||||||||||||
Sterling Capital Equity Income Fund | 53,619,402 | 100.00% | 100.00% | — | — | — | — | |||||||||||||||||||||
Sterling Capital Long/Short Equity Fund | 46,785 | 21.32% | 19.95% | — | — | — | — | |||||||||||||||||||||
Sterling Capital Behavioral International Equity Fund | — | 100.00% | — | — | — | 35,807 | 100.00 | % | ||||||||||||||||||||
Sterling Capital Short Duration Bond Fund | — | 0.23% | 0.35% | — | 0.25% | — | — | |||||||||||||||||||||
Sterling Capital Intermediate U.S. Government Fund | — | — | — | — | 17.66% | — | — | |||||||||||||||||||||
Sterling Capital Total Return Bond Fund | — | 0.61% | 0.67% | — | 0.82% | — | — | |||||||||||||||||||||
Sterling Capital Corporate Fund | 60,465 | 0.26% | 0.45% | — | — | — | — | |||||||||||||||||||||
Sterling Capital Securitized Opportunities Fund | — | — | — | — | 0.07% | — | — | |||||||||||||||||||||
Sterling Capital Kentucky Intermediate Tax-Free Fund | 247,165 | — | — | 372,666 | — | — | — | |||||||||||||||||||||
Sterling Capital Maryland Intermediate Tax-Free Fund | 184,451 | — | — | 752,870 | — | — | — | |||||||||||||||||||||
Sterling Capital North Carolina Intermediate Tax-Free Fund | 323,183 | — | — | 4,766,517 | — | — | — | |||||||||||||||||||||
Sterling Capital South Carolina Intermediate Tax-Free Fund | 111,719 | — | — | 1,490,837 | — | — | — | |||||||||||||||||||||
Sterling Capital Virginia Intermediate Tax-Free Fund | 626,853 | — | — | 2,703,034 | — | — | — | |||||||||||||||||||||
Sterling Capital West Virginia Intermediate Tax-Free Fund | 271,918 | — | — | 2,292,554 | — | — | — | |||||||||||||||||||||
Sterling Capital Diversified Income Fund | — | 19.78% | 4.12% | — | 0.20% | — | — | |||||||||||||||||||||
Sterling Capital Strategic Allocation Balanced Fund | — | 36.21% | 29.40% | — | 0.46% | — | — | |||||||||||||||||||||
Sterling Capital Strategic Allocation Growth Fund | — | 65.72% | 53.64% | — | 0.30% | — | — |
183
Sterling Capital Funds
|
September 30, 2015 |
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-228-1872; and (ii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-228-1872 and (ii) on the Commission’s website at http://www.sec.gov.
The Funds file complete Schedules of Portfolio Holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available without charge on the Commission’s website at http://www.sec.gov, or may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
184
Sterling Capital Funds
|
Information about Trustees and Officers (Unaudited)
Overall responsibility for the management of the Funds rests with its Board of Trustees (“Trustees”), who are elected by the Shareholders of the Funds. The Trustees elect the officers of the Funds to supervise actively its day-to-day operations. The names of the Trustees, birthdates, term of office and length of time served, principal occupations during the past five years, number of portfolios overseen and directorships held outside of the Funds are listed in the two tables immediately following. The business address of the persons listed below is 434 Fayetteville Street, 5th Floor, Raleigh, North Carolina 27601.
INDEPENDENT TRUSTEES
Name and Birthdate | Position(s) Held | Term of Office/ Time Served | Principal Occupation | Number of in Fund | Other | |||||
Drew T. Kagan Birthdate: 02/48 | Trustee, Chairman of the Board of Trustees | Indefinite, 08/00 — Present | Retired; from September 2010 to March 2013, Chairman, Montecito Advisors, Inc.; from December 2003 to September 2010, CEO, Montecito Advisors, Inc.; from March 1996 to December 2003, President, Investment Affiliate, Inc. | 22 | None | |||||
Laura C. Bingham Birthdate: 11/56 | Trustee | Indefinite, 02/01 — Present | From March 2013 to present, Partner, Newport Board Group; from July 2010 to February 2013, governance and leadership consultant; from July 1998 to June 2010, President of Peace College | 22 | None | |||||
Douglas R. Van Scoy Birthdate: 11/43 | Trustee | Indefinite, 05/04 — Present | Retired; from November 1974 to July 2001, employee of Smith Barney (investment banking), most recently as Director of Private Client Group and Senior Executive Vice President | 22 | None | |||||
James L. Roberts Birthdate: 11/42 | Trustee | Indefinite, 11/04 — Present | Retired; from November 2006 to present, Director, Grand Mountain Bancshares, Inc.; from January 1999 to December 2003, President, CEO and Director, Covest Bancshares, Inc. | 22 | None | |||||
Alan G. Priest Birthdate: 05/52 | Trustee | Indefinite, 7/12 — Present | Retired; from April 1993 to April 2012, Partner, Ropes & Gray LLP | 22 | None |
185
Sterling Capital Funds
|
The following table shows information for the trustee who is an “interested person” of the Funds as defined in the 1940 Act:
INTERESTED TRUSTEES
Name and Birthdate | Position(s) Held | Term of Office/ Time Served | Principal Occupation | Number of in Fund | Other by Trustee | |||||
Alexander W. McAlister** Birthdate: 03/60 | Trustee | Indefinite, 11/10 — Present | President, Sterling Capital Management LLC | 22 | Director, Sterling Capital Management LLC |
* The Sterling Capital Funds Complex consists of two open-end investment management companies: Sterling Capital Funds and Sterling Capital Variable Insurance Funds. The Sterling Capital Variable Insurance Funds were liquidated on April 24, 2015.
** Mr. McAlister is treated by the Funds as an “interested person” (as defined in Section 2(a)(19) of the 1940 Act) of the Funds because he is an officer of the Advisor.
The following table shows information for officers of Funds:
Name and Birthdate | Position(s) Held | Term of Office/ Time Served | Principal Occupation During the Past 5 Years | |||
James T. Gillespie Birthdate: 11/66 | President | Indefinite, 12/12 — Present | From March 2012 to present, Executive Director, Sterling Capital Management LLC; From June 2010 to March 2012, Director, Sterling Capital Management LLC and its predecessors; from August 2008 to June 2010, Vice President Relationship Management, JPMorgan Chase & Co.; from February 2005 to August 2008, Senior Vice President and Manager of Mutual Fund Administration, Sterling Capital Management LLC and its predecessors | |||
Todd M. Miller Birthdate: 09/71 | Treasurer and Secretary | Indefinite, Vice President, 08/05 — Present; Treasurer, 01/15 — Present; Secretary, 08/10 — Present | From June 2009 to present, Director, Sterling Capital Management LLC and its predecessors; from June 2005 to May 2009, Mutual Fund Administrator; from May 2001 to May 2005, Manager, BISYS Fund Services | |||
Krystle Edwards Birthdate: 02/86 | Vice President | Indefinite, 11/14 — Present | From May 2013 to present, Associate, Sterling Capital Management LLC; from March 2012-December 2012, Financial Advisor, First Command Financial Planning; from September 2009-May 2012, student at Campbell University School of Law | |||
Brian M. Moran Birthdate: 05/60 | Chief Compliance and Anti-Money Laundering Officer | Indefinite, 01/15 — Present | From July 2014 to present, Chief Compliance Officer and Executive Director, Sterling Capital Management LLC; from December 2006 to June 2014, Chief Compliance Officer and Director, TIAA-CREF and Teachers Personal Investors Services, Inc. |
186
Sterling Capital Funds
|
Name and Birthdate | Position(s) Held | Term of Office/ Time Served | Principal Occupation During the Past 5 Years | |||
Andrew J. McNally Birthdate: 12/70 | Assistant Treasurer | Indefinite, Assistant Treasurer, 06/10 — Present; Treasurer, 04/07 — 06/10 | From January 2007 to present, Vice President and Senior Director, and from July 2000 to December 2006, Vice President and Director, Fund Accounting and Administration Department, BNY Mellon Investment Servicing (US) Inc. | |||
Julie M. Powers Birthdate: 10/69 | Assistant Secretary | Indefinite, 11/11 — Present | From November 2011 to present, Vice President; from March 2009 to October 2011, Senior Manager and Vice President; from August 2005 to February 2009, Manager and Assistant Vice President, Regulatory Administration Department, BNY Mellon Investment Servicing (US) Inc. |
The Funds’ Statement of Additional Information includes additional information about the Funds’ Trustees and Officers. To receive your free copy of the Statement of Additional Information, call toll free: 1-800-228-1872.
187
INVESTMENT ADVISOR
Sterling Capital Management LLC
4350 Congress Street, Suite 1000
Charlotte, NC 28209
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.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the “Code of Ethics”). |
(c) | There have been no amendments, during the period covered by this report, to a provision of the Code of Ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in Item 2(b) of Form N-CSR. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in Item 2(b) of Form N-CSR. |
Item 3. Audit Committee Financial Expert.
As of the end of the period covered by the report, the registrant’s board of trustees has determined that Drew Kagan is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $430,000 for 2015 and $410,405 for 2014. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $2,500 for 2015 and $0 for 2014. These audit-related services include issuance of consents to use the name of the auditor in new Fund filings. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $87,705 for 2015 and $76,000 for 2014. Fees for both 2015 and 2014 relate to the preparation of federal income and excise tax returns and review of capital gains distribution calculations. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2015 and $0 for 2014. |
(e)(1) | Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust’s Audit Committee must pre-approve all audit and non-audit services provided by the independent accountants relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law. |
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) | 100% |
(c) | 100% |
(d) | N/A |
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent. |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2015 and $2,854,000 for 2014. |
(h) | The audit committee of the registrant’s board of trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
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) | The registrant’s Code of Ethics is attached hereto. |
(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. |
(12.other) Not applicable.
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 4/19/2016
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 4/19/2016
By (Signature and Title) /s/ Todd M. Miller ��
Todd M. Miller, Treasurer
(principal financial officer)
Date 4/19/2016