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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number        811-06719        

Sterling Capital Funds

(Exact name of registrant as specified in charter)

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: March 31, 2016

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.

Table of Contents

Letter from the President and the Investment Advisor	1
Summary of Portfolio Holdings	2
Expense Example	5
Schedules of Portfolio Investments
Sterling Capital Behavioral Large Cap Value Equity Fund	9
Sterling Capital Mid Value Fund	11
Sterling Capital Behavioral Small Cap Value Equity Fund	12
Sterling Capital Special Opportunities Fund	15
Sterling Capital Equity Income Fund	16
Sterling Capital Long/Short Equity Fund	17
Sterling Capital Behavioral International Equity Fund	21
Sterling Capital Ultra Short Bond Fund	23
Sterling Capital Short Duration Bond Fund	27
Sterling Capital Intermediate U.S. Government Fund	31
Sterling Capital Total Return Bond Fund	33
Sterling Capital Corporate Fund	40
Sterling Capital Securitized Opportunities Fund	43
Sterling Capital Kentucky Intermediate Tax-Free Fund	46
Sterling Capital Maryland Intermediate Tax-Free Fund	47
Sterling Capital North Carolina Intermediate Tax-Free Fund	49
Sterling Capital South Carolina Intermediate Tax-Free Fund	53
Sterling Capital Virginia Intermediate Tax-Free Fund	56
Sterling Capital West Virginia Intermediate Tax-Free Fund	59
Sterling Capital Diversified Income Fund	62
Sterling Capital Strategic Allocation Balanced Fund	63
Sterling Capital Strategic Allocation Growth Fund	64
Financial Statements	65
Notes to Financial Statements	127
Other Information	143

Letter from the President and the Investment Advisor

Dear Shareholders:

We are pleased to present this Sterling Capital Funds semiannual report covering the six months between October 1, 2015, and March 31, 2016.

It was a volatile period for stocks. U.S. equities made significant gains early in the period, only to reverse course with a sharp sell-off in January. Equities rebounded in February and March, however, managing to finish with modest gains for the six-month period. Concerns about slowing global economic growth, particularly in China, and falling oil and commodity prices drove much of the market volatility.

The U.S. economy remained a relative bright spot amid broader instability in the global economy, even as U.S. GDP slowed during the period under review. U.S. GDP increased at an annualized rate of 1.4% in the final quarter of 2015, but managed just a 0.5% increase through the first quarter of 2016, according to preliminary figures. The weak GDP growth can be partially attributed to meager demand from U.S. consumers. Despite receiving a boost from low oil prices and rising wages, consumer spending growth was relatively low for most of the period.

Economic data offered a mixed picture of the U.S. economy. For much of the six months through March 31, 2016, the manufacturing, housing and retail sectors reported relatively weak results. However, some indicators struck a more positive tone toward the end of the period: for instance, the ISM Manufacturing New Orders Index, a key leading indicator, reached its highest level since November 2014. The labor market also added to positive results, as initial jobless claims fell throughout the period and the unemployment rate started

and ended the period at 5% (the unemployment rate did decrease slightly during the intervening months). Personal income improved as well, due to upward pressure on wages.

In December the U.S. Federal Reserve increased the federal funds rate by 25 basis points — the first increase in nearly 10 years. The minor — and much-anticipated — interest rate increase had only a modest impact on stocks and did not prevent fixed-income investments from posting gains for the period. However, the prospect of additional rate hikes by the Fed contributed to some of the equity market volatility early in 2016. A statement in early February by Fed Chair Janet Yellen helped ease investor concerns though; any rate hikes in the coming year would be small, gradual and contingent upon continued improvement in the economy.

A strong dollar continued to create challenges for U.S. exporters, but conditions shifted somewhat during the final month of the period as the dollar showed its largest monthly decline in more than five years.

U.S. stocks outperformed international markets during the period. After many months of declines, emerging markets equities rose sharply during the final months of the period, posting modest gains for the period under review. China and Brazil faced stiff economic headwinds throughout the period. The Chinese economy stabilized somewhat due in part to central bank stimulus measures, but Brazil’s economy suffered from a sharp decline in commodity prices as well as ongoing political turmoil.

The S&P 500^® Index¹ gained 7.28% during

the six months under review. Small-cap stocks underperformed larger shares, with the Russell 2000 Index of small-cap stocks gaining just 2.02%. Interest rates remained historically low during the period, despite the Fed’s decision to raise its short-term interest rate in December. U.S. fixed-income investments generally performed well in this environment, posting small gains for the period. Investment grade credit spreads grew wider during much of the period, but narrowed significantly towards the period’s end.

We will continue to monitor the evolving economic and market climate, and will manage the Sterling Capital Funds accordingly.

Thank you for your confidence in Sterling Capital Management. We look forward to serving your investment needs during the months and years ahead, 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 Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Funds invested, as a percentage of net assets, in the following industries, countries, states, funds or security types, as of March 31, 2016:

Sterling Capital Behavioral Large Cap Value Equity Fund	Percentage of net assets
Automobiles & Components		2.3	%
Banks		9.4	%
Capital Goods		7.3	%
Consumer Durables & Apparel		0.4	%
Consumer Services		1.7	%
Diversified Financials		6.4	%
Energy		11.6	%
Food & Staples Retailing		1.0	%
Food, Beverage & Tobacco		2.7	%
Health Care Equipment & Services		3.2	%
Household & Personal Products		1.6	%
Insurance		6.4	%
Materials		2.6	%
Media		1.5	%
Pharmaceuticals, Biotechnology & Life Sciences		6.7	%
Real Estate		5.9	%
Retailing		2.1	%
Semiconductors & Semiconductor Equipment		3.0	%
Software & Services		4.1	%
Technology Hardware & Equipment		4.4	%
Telecommunication Services		3.8	%
Transportation		2.1	%
Utilities		8.2	%
Exchange Traded Fund		0.4	%
Money Market Fund		1.1	%
		99.9	%
Sterling Capital Mid Value Fund	Percentage of net assets
Automobiles & Components		3.1	%
Banks		1.6	%
Capital Goods		8.4	%
Commercial & Professional Services		2.7	%
Consumer Durables & Apparel		2.5	%
Diversified Financials		12.2	%
Energy		1.1	%
Health Care Equipment & Services		6.3	%
Insurance		11.3	%
Materials		3.7	%
Media		10.9	%
Real Estate		10.6	%
Retailing		3.1	%
Semiconductors & Semiconductor Equipment		1.9	%
Software & Services		7.2	%
Technology Hardware & Equipment		7.2	%
Transportation		1.5	%
Money Market Fund		3.3	%
		98.6	%

Sterling Capital Behavioral Small Cap Value Equity Fund	Percentage of net assets
Automobiles & Components		1.9	%
Banks		21.1	%
Capital Goods		6.0	%
Commercial & Professional Services		2.4	%
Consumer Durables & Apparel		1.6	%
Consumer Services		2.0	%
Diversified Financials		1.7	%
Energy		3.8	%
Food & Staples Retailing		0.8	%
Food, Beverage & Tobacco		2.7	%
Health Care Equipment & Services		3.9	%
Household & Personal Products		0.6	%
Insurance		11.3	%
Materials		2.6	%
Real Estate		9.2	%
Retailing		3.8	%
Semiconductors & Semiconductor Equipment		1.7	%
Software & Services		1.5	%
Technology Hardware & Equipment		6.9	%
Telecommunication Services		0.4	%
Transportation		3.5	%
Utilities		8.4	%
Exchange Traded Fund		1.0	%
Money Market Fund		0.8	%
		99.6	%
Sterling Capital Special Opportunities Fund	Percentage of net assets
Automobiles & Components		3.2	%
Banks		3.4	%
Commercial & Professional Services		8.4	%
Consumer Durables & Apparel		5.2	%
Food, Beverage & Tobacco		2.0	%
Health Care Equipment & Services		16.6	%
Media		13.7	%
Pharmaceuticals, Biotechnology & Life Sciences		7.7	%
Real Estate		5.1	%
Software & Services		21.5	%
Technology Hardware & Equipment		3.9	%
Transportation		1.9	%
Money Market Fund		6.2	%
		98.8	%
Sterling Capital Equity Income Fund	Percentage of net assets
Automobiles & Components		2.2	%
Banks		3.5	%
Capital Goods		2.1	%
Consumer Durables & Apparel		1.8	%
Consumer Services		5.5	%
Diversified Financials		5.9	%
Energy		4.1	%
Food, Beverage & Tobacco		8.2	%
Health Care Equipment & Services		3.9	%
Insurance		1.7	%
Materials		2.8	%
Media		7.0	%
Pharmaceuticals, Biotechnology & Life Sciences		17.7	%
Real Estate		2.2	%
Software & Services		8.0	%
Technology Hardware & Equipment		8.5	%
Telecommunication Services		5.3	%
Transportation		3.7	%
Money Market Fund		5.6	%
		99.7	%

2

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Long/Short Equity Fund	Long-Term Investment Percentage of net assets
Automobiles & Components		0.2	%
Banks		5.6	%
Consumer Durables & Apparel		1.1	%
Consumer Services		5.1	%
Diversified Financials		9.6	%
Energy		15.6	%
Exchange Traded Funds		0.3	%
Food & Staples Retailing		0.5	%
Food, Beverage & Tobacco		2.6	%
Health Care Equipment & Services		11.1	%
Insurance		2.8	%
Materials		1.0	%
Media		1.7	%
Pharmaceuticals, Biotechnology & Life Sciences		6.7	%
Real Estate		1.7	%
Retailing		2.1	%
Software & Services		8.5	%
Technology Hardware & Equipment		7.8	%
Telecommunication Services		5.0	%
Money Market Fund		5.1	%
		94.1	%
Sterling Capital Long/Short Equity Fund	Investments Sold Short Percentage of net assets
Automobiles & Components		(0.9	)%
Banks		(1.1	)%
Consumer Durables & Apparel		(2.9	)%
Consumer Services		(2.4	)%
Diversified Financials		(1.0	)%
Energy		(4.2	)%
Exchange Traded Funds		(5.9	)%
Food & Staples Retailing		(0.5	)%
Food, Beverage & Tobacco		(2.0	)%
Health Care Equipment & Services		(2.9	)%
Household & Personal Products		(0.3	)%
Pharmaceuticals, Biotechnology & Life Sciences		(6.6	)%
Real Estate		(2.6	)%
Retailing		(2.2	)%
Semiconductors & Semiconductor Equipment		(2.0	)%
Software & Services		(4.2	)%
Technology Hardware & Equipment		(1.6	)%
Transportation		(0.8	)%
		(44.1	)%

Sterling Capital Behavioral International Equity Fund	Percentage of net assets
Australia		7.1	%
China		0.5	%
Denmark		1.1	%
Finland		1.0	%
France		11.0	%
Germany		6.9	%
Hong Kong		4.8	%
Ireland		1.0	%
Israel		2.6	%
Italy		4.3	%
Japan		24.3	%
Netherlands		2.0	%
Singapore		1.1	%
Spain		1.2	%
Sweden		4.3	%
Switzerland		7.0	%
United Kingdom		15.7	%
United States		2.4	%
Money Market Fund		1.0	%
		99.3	%

Sterling Capital Ultra Short Bond Fund	Percentage of net assets
Asset Backed Securities		19.7	%
Collateralized Mortgage Obligations		0.2	%
Commercial Mortgage-Backed Securities		24.0	%
Corporate Bonds		51.9	%
Municipal Bonds		2.2	%
Money Market Fund		2.4	%
		100.4	%
Sterling Capital Short Duration Bond Fund	Percentage of net assets
Asset Backed Securities		15.3	%
Collateralized Mortgage Obligations		1.6	%
Commercial Mortgage-Backed Securities		17.5	%
Corporate Bonds		57.0	%
Foreign Government Bond		0.5	%
Municipal Bonds		1.7	%
Preferred Stocks		0.3	%
U.S. Treasury Note		5.1	%
Money Market Fund		2.4	%
		101.4	%
Sterling Capital Intermediate U.S. Government Fund	Percentage of net assets
Asset Backed Securities		1.2	%
Collateralized Mortgage Obligations		5.4	%
Commercial Mortgage-Backed Securities		0.5	%
Corporate Bonds		4.7	%
Mortgage-Backed Securities		7.9	%
Municipal Bonds		0.7	%
U.S. Government Agencies		27.3	%
U.S. Treasury Bills		1.7	%
U.S. Treasury Notes		48.8	%
Money Market Fund		1.4	%
		99.6	%
Sterling Capital Total Return Bond Fund	Percentage of net assets
Asset Backed Securities		13.6	%
Collateralized Mortgage Obligations		7.2	%
Commercial Mortgage-Backed Securities		16.9	%
Corporate Bonds		43.6	%
Foreign Government Bonds		0.6	%
Mortgage-Backed Securities		9.1	%
Municipal Bonds		4.1	%
Preferred Stocks		0.6	%
U.S. Treasury Bonds		1.3	%
U.S. Treasury Notes		2.0	%
Money Market Fund		0.8	%
		99.8	%
Sterling Capital Corporate Fund	Percentage of net assets
Corporate Bonds		97.1	%
Preferred Stocks		0.9	%
Money Market Fund		3.0	%
		101.0	%
Sterling Capital Securitized Opportunities Fund	Percentage of net assets
Asset Backed Securities		25.5	%
Collateralized Mortgage Obligations		17.4	%
Commercial Mortgage-Backed Securities		22.9	%
Mortgage-Backed Securities		32.4	%
U.S. Treasury Notes		0.9	%
Money Market Fund		2.6	%
		101.7	%

3

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Kentucky Intermediate Tax-Free Fund	Percentage of net assets
Kentucky Municipal Bonds		96.4	%
Money Market Fund		2.4	%
		98.8	%
Sterling Capital Maryland Intermediate Tax-Free Fund	Percentage of net assets
Maryland Municipal Bonds		98.5	%
Money Market Fund		0.5	%
		99.0	%
Sterling Capital North Carolina Intermediate Tax-Free Fund	Percentage of net assets
North Carolina Municipal Bonds		96.1	%
Money Market Fund		3.0	%
		99.1	%
Sterling Capital South Carolina Intermediate Tax-Free Fund	Percentage of net assets
South Carolina Municipal Bonds.		94.1	%
Money Market Fund		4.9	%
		99.0	%
Sterling Capital Virginia Intermediate Tax-Free Fund	Percentage of net assets
District of Columbia Municipal Bonds		1.7	%
Virginia Municipal Bonds		95.1	%
Money Market Fund		2.2	%
		99.0	%

Sterling Capital West Virginia Intermediate Tax-Free Fund	Percentage of net assets
West Virginia Municipal Bonds		97.3	%
Money Market Fund		1.6	%
		98.9	%
Sterling Capital Diversified Income Fund (formerly known as Sterling Capital Strategic Allocation Conservative Fund)	Percentage of net assets
Equity Funds		34.4	%
Fixed Income Fund		64.0	%
Money Market Fund		1.8	%
		100.2	%
Sterling Capital Strategic Allocation Balanced Fund	Percentage of net assets
Equity Funds		66.4	%
Fixed Income Fund		32.4	%
Money Market Fund		1.1	%
		99.9	%
Sterling Capital Strategic Allocation Growth Fund	Percentage of net assets
Equity Funds		81.5	%
Fixed Income Fund		17.1	%
Money Market Fund		1.4	%
		100.0	%

4

Sterling Capital Funds

Expense Example (Unaudited)

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

These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2015 through March 31, 2016.

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.

				Annualized
	Beginning	Ending	Expenses Paid	Expense Ratio
	Account Value	Account Value	During Period*	During Period
	10/1/15	3/31/16	10/1/15 - 3/31/16	10/1/15 - 3/31/16
Sterling Capital Behavioral Large Cap Value Equity Fund
Class A Shares	$1,000.00	$1,043.83	$  5.31	1.04%
Class B Shares	1,000.00	1,039.70	9.13	1.79%
Class C Shares	1,000.00	1,040.02	9.13	1.79%
Institutional Shares	1,000.00	1,044.79	4.04	0.79%
Sterling Capital Mid Value Fund
Class A Shares	1,000.00	1,068.41	6.21	1.20%
Class B Shares	1,000.00	1,064.73	10.07	1.95%
Class C Shares	1,000.00	1,064.33	10.06	1.95%
Institutional Shares	1,000.00	1,069.57	4.92	0.95%
Class R Shares	1,000.00	1,067.77	7.44	1.44%
Sterling Capital Behavioral Small Cap Value Equity Fund
Class A Shares	1,000.00	1,027.09	6.03	1.19%
Class B Shares	1,000.00	1,023.46	9.81	1.94%
Class C Shares	1,000.00	1,022.49	9.81	1.94%
Institutional Shares	1,000.00	1,028.26	4.77	0.94%
Class R Shares	1,000.00	1,025.82	7.24	1.43%
Sterling Capital Special Opportunities Fund
Class A Shares	1,000.00	1,084.20	6.25	1.20%
Class B Shares	1,000.00	1,080.50	10.14	1.95%
Class C Shares	1,000.00	1,079.93	10.14	1.95%
Institutional Shares	1,000.00	1,085.18	4.95	0.95%
Class R Shares	1,000.00	1,082.90	7.55	1.45%
Sterling Capital Equity Income Fund
Class A Shares	1,000.00	1,064.27	6.30	1.22%
Class B Shares	1,000.00	1,060.16	10.15	1.97%
Class C Shares	1,000.00	1,060.63	10.15	1.97%
Institutional Shares	1,000.00	1,065.38	5.01	0.97%
Class R Shares	1,000.00	1,062.88	7.58	1.47%
Sterling Capital Long/Short Equity Fund
Class A Shares	1,000.00	896.19	15.69	3.31%
Class C Shares	1,000.00	892.54	19.30	4.08%
Institutional Shares	1,000.00	896.78	14.46	3.05%
Sterling Capital Behavioral International Equity Fund
Class A Shares	1,000.00	1,021.43	6.77	1.34%
Class C Shares	1,000.00	1,016.29	10.48	2.08%
Institutional Shares	1,000.00	1,022.05	5.46	1.08%
Sterling Capital Ultra Short Bond Fund
Class A Shares	1,000.00	1,003.23	3.66	0.73%
Institutional Shares	1,000.00	1,004.45	2.41	0.48%
Sterling Capital Short Duration Bond Fund
Class A Shares	1,000.00	1,006.51	3.91	0.78%
Class C Shares	1,000.00	1,003.85	7.66	1.53%
Institutional Shares	1,000.00	1,007.72	2.66	0.53%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares	1,000.00	1,013.66	4.38	0.87%
Class B Shares	1,000.00	1,008.89	8.14	1.62%
Class C Shares	1,000.00	1,008.88	8.14	1.62%
Institutional Shares	1,000.00	1,014.91	3.12	0.62%

5

Sterling Capital Funds

Expense Example (Unaudited)

				Annualized
	Beginning	Ending	Expenses Paid	Expense Ratio
	Account Value	Account Value	During Period*	During Period
	10/1/15	3/31/16	10/1/15 - 3/31/16	10/1/15 - 3/31/16
Sterling Capital Total Return Bond Fund
Class A Shares	$1,000.00	$1,022.95	$3.69	0.73%
Class B Shares	1,000.00	1,019.10	7.47	1.48%
Class C Shares	1,000.00	1,018.15	7.47	1.48%
Institutional Shares	1,000.00	1,023.23	2.48	0.49%
Class R Shares	1,000.00	1,020.74	4.95	0.98%
Sterling Capital Corporate Fund
Class A Shares	1,000.00	1,017.11	4.49	0.89%
Class C Shares	1,000.00	1,012.53	8.25	1.64%
Institutional Shares	1,000.00	1,018.38	3.18	0.63%
Sterling Capital Securitized Opportunities Fund
Class A Shares	1,000.00	1,012.69	4.23	0.84%
Class C Shares	1,000.00	1,008.93	8.04	1.60%
Institutional Shares	1,000.00	1,014.96	3.07	0.61%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares	1,000.00	1,019.95	4.70	0.93%
Class C Shares	1,000.00	1,016.15	8.47	1.68%
Institutional Shares	1,000.00	1,021.23	3.44	0.68%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares	1,000.00	1,023.62	4.35	0.86%
Class C Shares	1,000.00	1,018.89	8.13	1.61%
Institutional Shares	1,000.00	1,024.87	3.09	0.61%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares	1,000.00	1,023.75	4.10	0.81%
Class C Shares	1,000.00	1,020.80	7.83	1.55%
Institutional Shares	1,000.00	1,024.99	2.83	0.56%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares	1,000.00	1,024.33	4.15	0.82%
Class C Shares	1,000.00	1,019.55	7.93	1.57%
Institutional Shares	1,000.00	1,025.71	2.89	0.57%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares	1,000.00	1,023.23	4.10	0.81%
Class C Shares	1,000.00	1,019.38	7.88	1.56%
Institutional Shares	1,000.00	1,024.48	2.83	0.56%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares	1,000.00	1,023.80	4.15	0.82%
Class C Shares	1,000.00	1,019.99	7.93	1.57%
Institutional Shares	1,000.00	1,025.09	2.89	0.57%
Sterling Capital Diversified Income Fund
Class A Shares	1,000.00	1,027.83	2.69	0.53%
Class B Shares	1,000.00	1,023.55	6.48	1.28%
Class C Shares	1,000.00	1,024.45	6.48	1.28%
Institutional Shares	1,000.00	1,029.77	1.42	0.28%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares	1,000.00	1,022.47	2.07	0.41%
Class B Shares	1,000.00	1,018.29	5.85	1.16%
Class C Shares	1,000.00	1,018.25	5.90	1.17%
Institutional Shares	1,000.00	1,022.60	0.86	0.17%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares	1,000.00	1,022.32	2.28	0.45%
Class B Shares	1,000.00	1,017.45	6.05	1.20%
Class C Shares	1,000.00	1,018.60	6.06	1.20%
Institutional Shares	1,000.00	1,023.51	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 366 (to reflect the six month period).

6

Sterling Capital Funds

Expense Example (Unaudited)

Hypothetical Example for Comparison Purposes

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

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

								Annualized
	Beginning			Ending		Expenses Paid		Expense Ratio
	Account Value			Account Value		During Period*		During Period
	10/1/15			3/31/16		10/1/15 - 3/31/16		10/1/15 - 3/31/16
Sterling Capital Behavioral Large Cap Value Equity Fund
Class A Shares			$1,000.00		$1,019.80		$  5.25		1.04	%
Class B Shares			1,000.00		1,016.05		9.02		1.79	%
Class C Shares			1,000.00		1,016.05		9.02		1.79	%
Institutional Shares			1,000.00		1,021.05		3.99		0.79	%
Sterling Capital Mid Value Fund
Class A Shares			1,000.00		1,019.00		6.06		1.20	%
Class B Shares			1,000.00		1,015.25		9.82		1.95	%
Class C Shares			1,000.00		1,015.25		9.82		1.95	%
Institutional Shares			1,000.00		1,020.25		4.80		0.95	%
Class R Shares			1,000.00		1,017.80		7.26		1.44	%
Sterling Capital Behavioral Small Cap Value Equity Fund
Class A Shares			1,000.00		1,019.05		6.01		1.19	%
Class B Shares			1,000.00		1,015.30		9.77		1.94	%
Class C Shares			1,000.00		1,015.30		9.77		1.94	%
Institutional Shares		��	1,000.00		1,020.30		4.75		0.94	%
Class R Shares			1,000.00		1,017.85		7.21		1.43	%
Sterling Capital Special Opportunities Fund
Class A Shares			1,000.00		1,019.00		6.06		1.20	%
Class B Shares			1,000.00		1,015.25		9.82		1.95	%
Class C Shares			1,000.00		1,015.25		9.82		1.95	%
Institutional Shares			1,000.00		1,020.25		4.80		0.95	%
Class R Shares			1,000.00		1,017.75		7.31		1.45	%
Sterling Capital Equity Income Fund
Class A Shares			1,000.00		1,018.90		6.16		1.22	%
Class B Shares			1,000.00		1,015.15		9.92		1.97	%
Class C Shares			1,000.00		1,015.15		9.92		1.97	%
Institutional Shares			1,000.00		1,020.15		4.90		0.97	%
Class R Shares			1,000.00		1,017.65		7.41		1.47	%
Sterling Capital Long/Short Equity Fund
Class A Shares			1,000.00		1,008.45		16.62		3.31	%
Class C Shares			1,000.00		1,004.60		20.45		4.08	%
Institutional Shares			1,000.00		1,009.75		15.32		3.05	%
Sterling Capital Behavioral International Equity Fund
Class A Shares			1,000.00		1,018.30		6.76		1.34	%
Class C Shares			1,000.00		1,014.60		10.48		2.08	%
Institutional Shares			1,000.00		1,019.60		5.45		1.08	%
Sterling Capital Ultra Short Bond Fund
Class A Shares			1,000.00		1,021.35		3.69		0.73	%
Institutional Shares			1,000.00		1,022.60		2.43		0.48	%
Sterling Capital Short Duration Bond Fund
Class A Shares			1,000.00		1,021.10		3.94		0.78	%
Class C Shares			1,000.00		1,017.35		7.72		1.53	%
Institutional Shares			1,000.00		1,022.35		2.68		0.53	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares			1,000.00		1,020.65		4.39		0.87	%
Class B Shares			1,000.00		1,016.90		8.17		1.62	%
Class C Shares			1,000.00		1,016.90		8.17		1.62	%
Institutional Shares			1,000.00		1,021.90		3.13		0.62	%

7

Sterling Capital Funds

Expense Example (Unaudited)

							Annualized
	Beginning		Ending		Expenses Paid		Expense Ratio
	Account Value		Account Value		During Period*		During Period
	10/1/15		3/31/16		10/1/15 - 3/31/16		10/1/15 - 3/31/16
Sterling Capital Total Return Bond Fund
Class A Shares		$1,000.00		$1,021.35		$3.69		0.73	%
Class B Shares		1,000.00		1,017.60		7.47		1.48	%
Class C Shares		1,000.00		1,017.60		7.47		1.48	%
Institutional Shares		1,000.00		1,022.55		2.48		0.49	%
Class R Shares		1,000.00		1,020.10		4.95		0.98	%
Sterling Capital Corporate Fund
Class A Shares		1,000.00		1,020.55		4.50		0.89	%
Class C Shares		1,000.00		1,016.80		8.27		1.64	%
Institutional Shares		1,000.00		1,021.85		3.18		0.63	%
Sterling Capital Securitized Opportunities Fund
Class A Shares		1,000.00		1,020.80		4.24		0.84	%
Class C Shares		1,000.00		1,017.00		8.07		1.60	%
Institutional Shares		1,000.00		1,021.95		3.08		0.61	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.35		4.70		0.93	%
Class C Shares		1,000.00		1,016.60		8.47		1.68	%
Institutional Shares		1,000.00		1,021.60		3.44		0.68	%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.70		4.34		0.86	%
Class C Shares		1,000.00		1,016.95		8.12		1.61	%
Institutional Shares		1,000.00		1,021.95		3.08		0.61	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.95		4.09		0.81	%
Class C Shares		1,000.00		1,017.25		7.82		1.55	%
Institutional Shares		1,000.00		1,022.20		2.83		0.56	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.90		4.14		0.82	%
Class C Shares		1,000.00		1,017.15		7.92		1.57	%
Institutional Shares		1,000.00		1,022.15		2.88		0.57	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.95		4.09		0.81	%
Class C Shares		1,000.00		1,017.20		7.87		1.56	%
Institutional Shares		1,000.00		1,022.20		2.83		0.56	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.90		4.14		0.82	%
Class C Shares		1,000.00		1,017.15		7.92		1.57	%
Institutional Shares		1,000.00		1,022.15		2.88		0.57	%
Sterling Capital Diversified Income Fund
Class A Shares		1,000.00		1,022.35		2.68		0.53	%
Class B Shares		1,000.00		1,018.60		6.46		1.28	%
Class C Shares		1,000.00		1,018.60		6.46		1.28	%
Institutional Shares		1,000.00		1,023.60		1.42		0.28	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares		1,000.00		1,022.95		2.07		0.41	%
Class B Shares		1,000.00		1,019.20		5.86		1.16	%
Class C Shares		1,000.00		1,019.15		5.91		1.17	%
Institutional Shares		1,000.00		1,024.15		0.86		0.17	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares		1,000.00		1,022.75		2.28		0.45	%
Class B Shares		1,000.00		1,019.00		6.06		1.20	%
Class C Shares		1,000.00		1,019.00		6.06		1.20	%
Institutional Shares		1,000.00		1,024.05		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 366 (to reflect the six month period).

8

Sterling Capital Behavioral Large Cap Value Equity Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 98.4%
	Automobiles & Components — 2.3%
168,450	General Motors Co.	$	5,294,383
10,829	Lear Corp.		1,203,860
			6,498,243
	Banks — 9.4%
18,050	Bank of Hawaii Corp.		1,232,454
163,100	JPMorgan Chase & Co.		9,658,782
82,650	New York Community Bancorp, Inc.		1,314,135
12,250	PacWest Bancorp		455,087
79,250	People’s United Financial, Inc.		1,262,453
50,700	PNC Financial Services Group, Inc. (The)		4,287,699
162,499	Wells Fargo & Co.		7,858,452
			26,069,062
	Capital Goods — 7.3%
43,100	AECOM Technology Corp.(a)		1,327,049
37,400	BWX Technologies, Inc.		1,255,144
31,750	Honeywell International, Inc.		3,557,587
9,650	Huntington Ingalls Industries, Inc.		1,321,471
9,600	L-3 Communications Holdings, Inc.		1,137,600
46,900	Masco Corp.		1,475,005
15,950	Orbital ATK, Inc.		1,386,693
27,350	Owens Corning		1,293,108
42,200	Raytheon Co.		5,174,986
24,200	Spirit AeroSystems Holdings, Inc., Class A(a)		1,097,712
59,950	Vectrus, Inc.(a)		1,363,863
			20,390,218
	Consumer Durables & Apparel — 0.4%
21,000	Michael Kors Holdings, Ltd.(a)		1,196,160
	Consumer Services — 1.7%
87,700	Carnival Corp.		4,627,929
	Diversified Financials — 6.4%
77,400	Capital One Financial Corp.		5,364,594
6,150	Credit Acceptance Corp.(a)		1,116,533
92,900	Discover Financial Services		4,730,468
1,500	Intercontinental Exchange, Inc.		352,710
22,300	NASDAQ OMX Group, Inc. (The)		1,480,274
164,750	Synchrony Financial(a)		4,721,735
			17,766,314
	Energy — 11.6%
160,900	Atwood Oceanics, Inc.		1,475,453
32,100	CVR Energy, Inc.		837,810
45,850	FMC Technologies, Inc.(a)		1,254,456
34,250	HollyFrontier Corp.		1,209,710
124,650	Marathon Petroleum Corp.		4,634,487
149,500	Noble Corp. PLC		1,547,325
53,050	ONEOK, Inc.		1,584,073
43,900	PBF Energy, Inc., Class A		1,457,480
65,800	Phillips 66		5,697,622
95,550	Rowan Cos. PLC, Class A		1,538,355
25,950	Schlumberger, Ltd.		1,913,813
313,250	Seadrill, Ltd.(a)		1,033,725
16,350	Tesoro Corp.		1,406,263
79,825	Valero Energy Corp.		5,119,976
29,750	World Fuel Services Corp.		1,445,255
			32,155,803
	Food & Staples Retailing — 1.0%
69,850	Kroger Co. (The)		2,671,763

Shares		Fair Value
COMMON STOCKS — (continued)
	Food, Beverage & Tobacco — 2.7%
13,050	Ingredion, Inc.	$	1,393,609
50,900	Pilgrim’s Pride Corp.(a)		1,292,860
73,500	Tyson Foods, Inc., Class A		4,899,510
			7,585,979
	Health Care Equipment & Services — 3.2%
55,150	Express Scripts Holding Co.(a)		3,788,253
65,750	HCA Holdings, Inc.(a)		5,131,787
			8,920,040
	Household & Personal Products — 1.6%
10,700	Clorox Co. (The)		1,348,842
16,700	Coty, Inc., Class A		464,761
30,350	Energizer Holdings, Inc.		1,229,479
24,000	Herbalife, Ltd.(a)		1,477,440
			4,520,522
	Insurance — 6.4%
79,500	Aflac, Inc.		5,019,630
47,250	Chubb, Ltd.		5,629,838
83,050	Old Republic International Corp.		1,518,154
47,500	Travelers Cos., Inc. (The)		5,543,725
			17,711,347
	Materials — 2.6%
26,150	Cabot Corp.		1,263,829
115,500	Dow Chemical Co. (The)		5,874,330
			7,138,159
	Media — 1.5%
50,950	Omnicom Group, Inc.		4,240,569
	Pharmaceuticals, Biotechnology & Life Sciences — 6.7%
28,350	Amgen, Inc.		4,250,515
45,300	Gilead Sciences, Inc.		4,161,258
69,750	Johnson & Johnson		7,546,950
53,950	Mylan NV(a)		2,500,583
			18,459,306
	Real Estate — 5.9%
16,850	Digital Realty Trust, Inc., REIT		1,491,057
14,400	Mid-America Apartment Communities, Inc., REIT		1,471,824
55,936	Piedmont Office Realty Trust, Inc., Class A, REIT		1,136,060
116,950	Prologis, Inc., REIT		5,166,851
27,650	Retail Properties of America, Inc., Class A, REIT		438,253
37,500	Ventas, Inc., REIT		2,361,000
62,700	Welltower, Inc., REIT		4,347,618
			16,412,663
	Retailing — 2.1%
72,000	Target Corp.		5,924,160
	Semiconductors & Semiconductor Equipment — 3.0%
253,000	Intel Corp.		8,184,550
	Software & Services — 4.1%
144,400	Activision Blizzard, Inc.		4,886,496
17,550	Citrix Systems, Inc.(a)		1,379,079
152,950	eBay, Inc.(a)		3,649,387

Continued

9

Sterling Capital Behavioral Large Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Software & Services — (continued)
70,950	Nuance Communications, Inc.(a)	$	1,326,055
			11,241,017
	Technology Hardware & Equipment — 4.4%
164,700	Applied Materials, Inc.		3,488,346
44,050	ARRIS International PLC(a)		1,009,626
20,550	Arrow Electronics, Inc.(a)		1,323,625
140,000	Cisco Systems, Inc.		3,985,800
15,150	Harris Corp.		1,179,579
17,100	Motorola Solutions, Inc.		1,294,470
			12,281,446
	Telecommunication Services — 3.8%
147,150	AT&T, Inc.		5,763,865
88,250	Verizon Communications, Inc.		4,772,560
			10,536,425
	Transportation — 2.1%
17,000	Alaska Air Group, Inc.		1,394,340
88,511	Delta Air Lines, Inc.		4,308,715
			5,703,055
	Utilities — 8.2%
70,500	American Electric Power Co., Inc.		4,681,200
66,650	Consolidated Edison, Inc.		5,106,723
53,200	PPL Corp.		2,025,324
111,950	Public Service Enterprise Group, Inc.		5,277,323
108,050	Southern Co. (The)		5,589,427
			22,679,997
	Total Common Stocks (Cost $253,458,826)		272,914,727
EXCHANGE TRADED FUND — 0.4%
11,390	iShares Russell 1000 Value ETF		1,125,446
	Total Exchange Traded Fund (Cost $1,157,121)		1,125,446

Shares		Fair Value
MONEY MARKET FUND — 1.1%
3,005,782	Federated Treasury Obligations Fund, 0.170%(b)	$	3,005,782
	Total Money Market Fund (Cost $3,005,782)		3,005,782
Total Investments — 99.9% (Cost $257,621,729)			277,045,955
Net Other Assets (Liabilities) — 0.1%			356,536
NET ASSETS — 100.0%		$	277,402,491

(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.

10

Sterling Capital Mid Value Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 95.3%
	Automobiles & Components — 3.1%
1,237,043	Gentex Corp.	$	19,409,205
	Banks — 1.6%
640,200	American Capital, Ltd.(a)		9,756,648
	Capital Goods — 8.4%
161,450	AGCO Corp.		8,024,065
467,500	Allison Transmission Holdings, Inc.		12,613,150
307,450	EnPro Industries, Inc.		17,733,716
317,400	Jacobs Engineering Group, Inc.(a)		13,822,770
			52,193,701
	Commercial & Professional Services — 2.7%
1,108,920	Civeo Corp.(a)		1,363,972
512,400	Tetra Tech, Inc.		15,279,768
			16,643,740
	Consumer Durables & Apparel — 2.5%
1,384,000	Ascena Retail Group, Inc.(a)		15,307,040
	Diversified Financials — 12.2%
85,148	Affiliated Managers Group, Inc.(a)		13,828,035
866,000	E*TRADE Financial Corp.(a)		21,208,340
1,618,700	Leucadia National Corp.		26,174,378
200,800	T. Rowe Price Group, Inc.		14,750,768
			75,961,521
	Energy — 1.1%
635,145	Noble Corp. PLC		6,573,751
	Health Care Equipment & Services — 6.3%
159,478	Laboratory Corp. of America Holdings		18,679,658
190,822	Zimmer Biomet Holdings, Inc.		20,347,350
			39,027,008
	Insurance — 11.3%
352,303	Assured Guaranty, Ltd.		8,913,266
88,230	Enstar Group, Ltd.(a)		14,344,433
25,189	Markel Corp.(a)		22,457,757
207,963	Willis Towers Watson PLC		24,676,890
			70,392,346
	Materials — 3.7%
697,690	Axalta Coating Systems, Ltd.(a)		20,372,548
292,800	Rayonier Advanced Materials, Inc.		2,781,600
			23,154,148
	Media — 10.9%
323,600	CBS Corp., Class B		17,827,124
1,486,510	News Corp., Class B		19,696,258
289,700	Omnicom Group, Inc.		24,111,731
139,782	Viacom, Inc., Class B		5,770,201
			67,405,314
	Real Estate — 10.6%
1,555,775	Annaly Capital Management, Inc., REIT		15,962,251

Shares		Fair Value
COMMON STOCKS — (continued)
	Real Estate — (continued)
673,245	CBRE Group, Inc., Class A(a)	$	19,402,921
350,600	Lincoln National Corp.		13,743,520
326,353	Ryman Hospitality Properties, Inc., REIT		16,800,652
			65,909,344
	Retailing — 3.1%
711,250	Chico’s FAS, Inc.		9,438,287
204,190	Kohl’s Corp.		9,517,296
			18,955,583
	Semiconductors & Semiconductor Equipment — 1.9%
555,063	II-VI, Inc.(a)		12,050,418
	Software & Services — 7.2%
1,106,300	DHI Group, Inc.(a)		8,927,841
89,582	DST Systems, Inc.		10,102,162
229,700	Fidelity National Information Services, Inc.		14,542,307
583,600	Western Union Co. (The)		11,257,644
			44,829,954
	Technology Hardware & Equipment — 7.2%
793,700	Knowles Corp.(a)		10,460,966
51,445	MicroStrategy, Inc., Class A(a)		9,245,695
832,190	NCR Corp.(a)		24,907,447
			44,614,108
	Transportation — 1.5%
862,600	Hertz Global Holdings, Inc.(a)		9,083,178
	Total Common Stocks (Cost $549,380,448)		591,267,007
MONEY MARKET FUND — 3.3%
20,463,569	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(b)		20,463,569
	Total Money Market Fund (Cost $20,463,569)		20,463,569
Total Investments — 98.6% (Cost $569,844,017)			611,730,576
Net Other Assets (Liabilities) — 1.4%			8,823,861
NET ASSETS — 100.0%		$	620,554,437

(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.

11

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 97.8%
	Automobiles & Components — 1.9%
25,341	American Axle & Manufacturing Holdings, Inc.(a)	$	389,998
27,702	Cooper Tire & Rubber Co.		1,025,528
9,584	Cooper-Standard Holding, Inc.(a)		688,515
6,678	Lear Corp.		742,393
			2,846,434
	Banks — 21.1%
19,467	1st Source Corp.		619,829
49,420	Banc of California, Inc.		864,850
24,781	Banco Latinoamericano de Comercio Exterior SA., Class E		600,196
49,283	BBCN Bancorp, Inc.		748,609
24,735	Berkshire Hills Bancorp, Inc.		665,124
27,742	BofI Holding, Inc.(a)		592,014
56,847	Brookline Bancorp, Inc.		625,885
14,240	Camden National Corp.		598,080
43,394	CenterState Banks, Inc.		646,137
29,267	Central Pacific Financial Corp.		637,143
21,064	Chemical Financial Corp.		751,774
17,910	Community Trust Bancorp, Inc.		632,581
31,552	Customers Bancorp, Inc.(a)		745,574
38,626	Dime Community Bancshares, Inc.		680,590
28,172	Enterprise Financial Services Corp.		761,771
18,519	Federal Agricultural Mortgage Corp., Class C		698,722
38,469	Fidelity Southern Corp.		617,043
21,016	Financial Institutions, Inc.		610,935
75,914	First Commonwealth Financial Corp.		672,598
35,385	First Financial Bancorp		643,299
22,430	First Interstate BancSystem, Inc., Class A		630,956
29,669	First Merchants Corp.		699,298
17,372	First NBC Bank Holding Co.(a)		357,689
29,282	Flagstar Bancorp, Inc.(a)		628,392
30,766	Flushing Financial Corp.		665,161
71,755	Fulton Financial Corp.		960,082
13,723	Great Southern Bancorp, Inc.		509,535
26,612	Great Western Bancorp, Inc.		725,709
29,902	Hanmi Financial Corp.		658,442
17,369	Heartland Financial USA, Inc.		534,792
32,364	HomeStreet, Inc.(a)		673,495
17,121	IBERIABANK Corp.		877,794
25,508	Meta Financial Group, Inc.		1,163,165
88,891	MGIC Investment Corp.(a)		681,794
38,879	Oritani Financial Corp		659,777
34,615	PennyMac Financial Services, Inc., Class A(a)		407,072
19,213	Popular, Inc.		549,684
38,539	Provident Financial Services, Inc.		778,102
58,357	Radian Group, Inc.		723,627
25,785	Territorial Bancorp, Inc.		671,957
32,435	Towne Bank		622,428
24,660	TriCo Bancshares		624,391
35,232	Trustmark Corp.		811,393
38,433	United Community Banks, Inc.		709,858
50,164	United Financial Bancorp, Inc.		631,565
35,593	Walker & Dunlop, Inc.(a)		863,842
40,706	Washington Federal, Inc.		921,991
			32,154,745
	Capital Goods — 6.0%
32,775	Aegion Corp.(a)		691,225
13,129	AGCO Corp.		652,511

Shares		Fair Value
COMMON STOCKS — (continued)
	Capital Goods — (continued)
29,962	Briggs & Stratton Corp.	$	716,691
16,383	BWX Technologies, Inc.		549,813
32,649	DigitalGlobe, Inc.(a)		564,828
30,037	Global Brass & Copper Holdings, Inc.		749,423
4,692	Huntington Ingalls Industries, Inc.		642,522
19,122	Insteel Industries, Inc.		584,560
17,731	KLX, Inc.(a)		569,874
38,879	MasTec, Inc.(a)		786,911
13,015	Owens Corning		615,349
11,187	Spirit AeroSystems Holdings, Inc., Class A(a)		507,442
10,211	Universal Forest Products, Inc.		876,308
50,080	Wabash National Corp.(a)		661,056
			9,168,513
	Commercial & Professional Services — 2.4%
38,276	ACCO Brands Corp.(a)		343,718
11,088	Barrett Business Services, Inc.		318,780
27,932	Brady Corp., Class A		749,695
24,758	Heidrick & Struggles International, Inc.		586,765
29,770	Mistras Group, Inc.(a)		737,403
29,100	Tetra Tech, Inc.		867,762
			3,604,123
	Consumer Durables & Apparel — 1.6%
69,275	JAKKS Pacific, Inc.(a)		515,406
20,858	Movado Group, Inc.		574,221
30,002	Smith & Wesson Holding Corp.(a)		798,653
65,773	ZAGG, Inc.(a)		592,615
			2,480,895
	Consumer Services — 2.0%
14,590	Bob Evans Farms, Inc./DE		681,207
38,656	Boyd Gaming Corp.(a)		798,633
9,901	Capella Education Co.		521,189
54,873	K12, Inc.(a)		542,694
9,630	Strayer Education, Inc.(a)		469,463
			3,013,186
	Diversified Financials — 1.7%
125,547	Cowen Group, Inc., Class A(a)		478,334
49,291	KCG Holdings, Inc., Class A(a)		589,027
19,882	Nelnet, Inc., Class A		782,754
13,636	Piper Jaffray Cos.(a)		675,800
			2,525,915
	Energy — 3.8%
39,297	Alon USA Energy, Inc.		405,545
64,667	Atwood Oceanics, Inc.(a)		592,996
13,715	CVR Energy, Inc.		357,961
99,607	DHT Holdings, Inc.		573,736
20,252	Diamond Offshore Drilling, Inc.(a)		440,076
48,256	Frontline Ltd/Bermuda		403,903
40,720	Noble Corp. PLC		421,452
24,159	Par Pacific Holdings, Inc.(a)		453,223
57,723	Parker Drilling Co.(a)		122,373
16,707	PBF Energy, Inc., Class A		554,672
31,220	Rowan Companies PLC, Class A(a)		502,642
38,103	RPC, Inc.(a)		540,301
140,117	Seadrill, Ltd.(a)		462,386
			5,831,266

Continued

12

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Food & Staples Retailing — 0.8%
12,312	Ingles Markets, Inc., Class A	$	461,700
24,824	SpartanNash Co.		752,415
			1,214,115
	Food, Beverage & Tobacco — 2.7%
9,393	Cal-Maine Foods, Inc.		487,591
75,123	Darling Ingredients, Inc.(a)		989,370
38,045	Dean Foods Co.		658,939
5,750	Ingredion, Inc.		614,043
20,967	Pilgrim’s Pride Corp.(a)		532,562
9,918	Sanderson Farms, Inc.		894,405
			4,176,910
	Health Care Equipment & Services — 3.9%
14,206	Amsurg Corp.(a)		1,059,768
13,166	Centene Corp.(a)		810,631
7,898	LifePoint Health, Inc.(a)		546,937
12,783	Magellan Health Services, Inc.(a)		868,349
10,057	Molina Healthcare, Inc.(a)		648,576
7,034	Owens & Minor, Inc.		284,314
13,232	Surgical Care Affiliates, Inc.(a)		612,377
24,263	Triple-S Management Corp., Class B(a)		603,178
6,034	WellCare Health Plans, Inc.(a)		559,653
			5,993,783
	Household & Personal Products — 0.6%
56,188	Central Garden & Pet Co., Class A(a)		915,303
	Insurance — 11.3%
50,042	American Equity Investment Life Holding Co.		840,706
8,219	American Financial Group, Inc.		578,371
15,565	AMERISAFE, Inc.		817,785
16,492	Argo Group International Holdings, Ltd.		946,476
11,928	Aspen Insurance Holdings, Ltd.		568,966
20,086	Assured Guaranty, Ltd.		508,176
63,399	CNO Financial Group, Inc.		1,136,110
30,496	Employers Holdings, Inc.		858,157
8,345	Endurance Specialty Holdings, Ltd.		545,262
4,873	Enstar Group, Ltd.(a)		792,252
11,165	FBL Financial Group, Inc., Class A		686,871
20,820	Federated National Holding Co.		409,321
15,852	First American Financial Corp.		604,120
7,411	Hanover Insurance Group, Inc. (The)		668,620
52,216	Maiden Holdings, Ltd.		675,675
80,579	MBIA, Inc.(a)		713,124
9,541	Navigators Group, Inc. (The)(a)		800,204
31,379	Old Republic International Corp.		573,608
20,820	Primerica, Inc.		927,115
4,969	RenaissanceRe Holdings, Ltd.		595,435
31,206	Selective Insurance Group, Inc.		1,142,452
45,615	State National Cos., Inc.		574,749
36,352	Universal Insurance Holdings, Inc.		647,066
11,992	Validus Holdings, Ltd.		565,902
			17,176,523
	Materials — 2.6%
159,126	AK Steel Holding Corp.(a)		657,190
12,963	Cabot Corp.		626,502
4,673	Stepan Co.		258,370
13,705	Trinseo SA(a)		504,481
15,400	U.S. Concrete, Inc.(a)		917,532

Shares		Fair Value
COMMON STOCKS — (continued)
	Materials — (continued)
26,696	Worthington Industries, Inc.	$	951,445
			3,915,520
	Real Estate — 9.2%
46,356	AG Mortgage Investment Trust, Inc., REIT		605,873
143,871	Anworth Mortgage Asset Corp., REIT		670,439
42,514	Apollo Commercial Real Estate Finance, Inc., REIT		692,978
59,428	Ares Commercial Real Estate Corp., REIT		650,737
42,112	Arlington Asset Investment Corp., Class A		527,663
105,397	Ashford Hospitality Trust, Inc., REIT		672,433
70,424	Capstead Mortgage Corp., REIT		696,493
37,829	Chimera Investment Corp., REIT		514,096
89,988	Dynex Capital, Inc., REIT		598,420
23,949	Forest City Realty Trust, Inc., Class A, REIT		505,084
32,581	Getty Realty Corp., REIT		646,081
16,515	HCI Group, Inc.		549,949
64,357	Invesco Mortgage Capital, Inc., REIT		783,868
78,440	MFA Financial, Inc., REIT		537,314
86,820	New Residential Investment Corp., REIT		1,009,717
62,980	Orchid Island Capital, Inc., REIT		653,103
26,233	Piedmont Office Realty Trust, Inc., Class A, REIT		532,792
33,597	Regional Management Corp.(a)		574,845
6,251	Reinsurance Group of America, Inc.		601,659
25,009	Starwood Property Trust, Inc., REIT		473,420
66,343	Two Harbors Investment Corp., REIT		526,763
23,763	United Fire Group, Inc.		1,041,295
			14,065,022
	Retailing — 3.8%
32,052	Abercrombie & Fitch Co., Class A		1,010,920
38,007	American Eagle Outfitters, Inc.		633,577
11,736	Big Lots, Inc.		531,523
25,251	Caleres, Inc.		714,351
12,273	Children’s Place, Inc. (The)		1,024,427
35,592	Express, Inc.(a)		762,025
35,834	Guess?, Inc.		672,604
39,509	J.C. Penney Co., Inc.(a)		436,970
			5,786,397
	Semiconductors & Semiconductor Equipment — 1.7%
37,817	II-VI, Inc.(a)		821,007
25,979	NeuStar, Inc., Class A(a)		639,083
25,262	Teradyne, Inc.		545,407
16,861	Tessera Technologies, Inc.		522,691
			2,528,188
	Software & Services — 1.5%
73,989	EarthLink Holdings Corp.		419,518
3,673	Progress Software Corp.(a)		88,593
31,520	Sykes Enterprises, Inc.(a)		951,274
23,524	Take-Two Interactive Software, Inc.(a)		886,149
			2,345,534
	Technology Hardware & Equipment — 6.9%
19,466	Advanced Energy Industries, Inc.(a)		677,222
8,498	Arrow Electronics, Inc.(a)		547,356
50,572	Brocade Communications Systems, Inc.		535,052
12,683	Cray, Inc.(a)		531,545
16,404	CSG Systems International, Inc.		740,805

Continued

13

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Technology Hardware & Equipment — (continued)
25,595	Insight Enterprises, Inc.(a)	$	733,041
22,006	NETGEAR, Inc.(a)		888,382
60,465	Photronics, Inc.(a)		629,441
17,632	Plexus Corp.(a)		696,817
43,420	QLogic Corp.(a)		583,565
43,207	Sanmina Corp.(a)		1,010,180
11,136	SYNNEX Corp.		1,031,082
13,868	Tech Data Corp.(a)		1,064,646
66,404	Vishay Intertechnology, Inc.		810,793
			10,479,927
	Telecommunication Services — 0.4%
86,650	Iridium Communications, Inc.(a)		681,935
	Transportation — 3.5%
46,961	Air Transport Services Group, Inc.(a)		722,260
12,050	Alaska Air Group, Inc.		988,341
17,121	Atlas Air Worldwide Holdings, Inc.(a)		723,705
23,127	Hawaiian Holdings, Inc.(a)		1,091,363
38,533	JetBlue Airways Corp.(a)		813,817
45,989	SkyWest, Inc.		919,320
			5,258,806
	Utilities — 8.4%
19,214	ALLETE, Inc.		1,077,329
24,127	Avista Corp.		983,899
20,492	Black Hills Corp.		1,232,184
35,842	Calpine Corp.(a)		543,723
20,909	El Paso Electric Co.		959,305
18,019	IDACORP, Inc.		1,344,037
27,186	NiSource, Inc.		640,502
20,530	ONE Gas, Inc.		1,254,383
9,410	Pinnacle West Capital Corp.		706,409
20,636	PNM Resources, Inc.		695,846
30,191	Portland General Electric Co.		1,192,243
17,338	SJW Corp.		630,236
31,249	South Jersey Industries, Inc.		889,034
12,786	Westar Energy, Inc.		634,313
			12,783,443
	Total Common Stocks (Cost $136,544,607)		148,946,483
EXCHANGE TRADED FUND — 1.0%
16,246	iShares Russell 2000 Value ETF		1,514,290
	Total Exchange Traded Fund (Cost $1,365,511)		1,514,290

Shares		Fair Value
MONEY MARKET FUND — 0.8%
1,187,018	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(b)	$	1,187,018
	Total Money Market Fund (Cost $1,187,018)		1,187,018
Total Investments — 99.6% (Cost $139,097,136)			151,647,791
Net Other Assets (Liabilities) — 0.4%			608,811
NET ASSETS — 100.0%		$	152,256,602

(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.

14

Sterling Capital Special Opportunities Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 92.6%
	Automobiles & Components — 3.2%
2,453,000	Ford Motor Co.	$	33,115,500
	Banks — 3.4%
517,000	Capital One Financial Corp.		35,833,270
	Commercial & Professional Services — 8.4%
822,000	Nielsen Holdings PLC		43,286,520
542,800	Verisk Analytics, Inc.(a)		43,380,576
			86,667,096
	Consumer Durables & Apparel — 5.2%
473,000	Jarden Corp.(a)		27,883,350
540,750	Lennar Corp., Class A		26,150,670
			54,034,020
	Food, Beverage & Tobacco — 2.0%
511,000	Mondelez International, Inc., Class A		20,501,320
	Health Care Equipment & Services — 16.6%
613,000	HCA Holdings, Inc.(a)		47,844,650
1,216,000	IMS Health Holdings, Inc.(a)		32,284,800
517,000	MEDNAX, Inc.(a)		33,408,540
297,000	UnitedHealth Group, Inc.		38,283,300
187,000	Zimmer Biomet Holdings, Inc.		19,939,810
			171,761,100
	Media — 13.7%
738,000	CBS Corp., Class B		40,656,420
740,000	Comcast Corp., Class A		45,199,200
1,301,000	Discovery Communications, Inc., Class C(a)		35,127,000
935,000	Live Nation Entertainment, Inc.(a)		20,859,850
			141,842,470
	Pharmaceuticals, Biotechnology & Life Sciences — 7.7%
233,000	Gilead Sciences, Inc.		21,403,380
748,500	Myriad Genetics, Inc.(a)		28,016,355
242,500	Perrigo Co. PLC		31,023,025
			80,442,760
	Real Estate — 5.1%
544,000	CBRE Group, Inc., Class A(a)		15,678,080
731,920	Ryman Hospitality Properties, Inc., REIT		37,679,242
			53,357,322

Shares		Fair Value
COMMON STOCKS — (continued)
	Software & Services — 21.5%
1,262,000	Activision Blizzard, Inc.(b)	$	42,706,080
711,000	Akamai Technologies, Inc.(a)		39,510,270
62,400	Alphabet, Inc., Class C(a)		46,484,880
198,000	Autodesk, Inc.(a)(b)		11,545,380
551,000	Check Point Software Technologies, Ltd.(a)		48,195,970
329,000	Intuit, Inc.		34,219,290
			222,661,870
	Technology Hardware & Equipment — 3.9%
1,432,000	Cisco Systems, Inc.		40,769,040
	Transportation — 1.9%
239,000	J.B. Hunt Transport Services, Inc.		20,133,360
	Total Common Stocks (Cost $706,268,225)		961,119,128
MONEY MARKET FUND — 6.2%
64,120,578	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)		64,120,578
	Total Money Market Fund (Cost $64,120,578)		64,120,578
Total Investments — 98.8% (Cost $770,388,803)			1,025,239,706
Net Other Assets (Liabilities) — 1.2%			11,968,500
NET ASSETS — 100.0%		$	1,037,208,206

(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.

15

Sterling Capital Equity Income Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 94.1%
	Automobiles & Components — 2.2%
1,141,113	General Motors Co.	$	35,865,182
	Banks — 3.5%
1,185,000	Wells Fargo & Co.		57,306,600
	Capital Goods — 2.1%
309,600	Honeywell International, Inc.		34,690,680
	Consumer Durables & Apparel — 1.8%
1,587,000	PulteGroup, Inc.		29,692,770
	Consumer Services — 5.5%
1,296,700	Dunkin’ Brands Group, Inc.		61,165,339
232,000	McDonald’s Corp.(a)		29,157,760
			90,323,099
	Diversified Financials — 5.9%
1,105,000	Discover Financial Services		56,266,600
1,294,000	Invesco, Ltd.		39,816,380
			96,082,980
	Energy — 4.1%
2,160,000	Spectra Energy Corp.		66,096,000
	Food, Beverage & Tobacco — 8.2%
45,000	Mead Johnson Nutrition Co.(a)		3,823,650
588,500	PepsiCo, Inc.		60,309,480
1,541,000	Unilever PLC, ADR		69,622,380
			133,755,510
	Health Care Equipment & Services — 3.9%
451,000	Anthem, Inc.		62,684,490
	Insurance — 1.7%
617,200	MetLife, Inc.		27,119,768
	Materials — 2.8%
623,500	Scotts Miracle-Gro Co. (The), Class A		45,372,095
	Media — 7.0%
721,600	Omnicom Group, Inc.		60,058,768
100,000	Time Warner Cable, Inc.(a)		20,462,000
450,000	Time Warner, Inc.		32,647,500
			113,168,268
	Pharmaceuticals, Biotechnology & Life Sciences — 17.7%
1,418,000	Abbott Laboratories		59,314,940
952,000	AbbVie, Inc.		54,378,240
456,000	Johnson & Johnson		49,339,200
836,000	Merck & Co., Inc.		44,232,760

Shares		Fair Value
COMMON STOCKS — (continued)
	Pharmaceuticals, Biotechnology & Life Sciences — (continued)
645,000	Novartis AG, ADR	$	46,723,800
1,165,000	Pfizer, Inc.		34,530,600
			288,519,540
	Real Estate — 2.2%
2,113,000	Host Hotels & Resorts, Inc., REIT		35,287,100
	Software & Services — 8.0%
633,200	Accenture PLC, Class A		73,071,280
1,043,000	Microsoft Corp.		57,604,890
			130,676,170
	Technology Hardware & Equipment — 8.5%
1,557,900	Maxim Integrated Products, Inc.		57,299,562
1,195,000	QUALCOMM, Inc.		61,112,300
434,000	Western Digital Corp.		20,502,160
			138,914,022
	Telecommunication Services — 5.3%
1,593,000	Verizon Communications, Inc.		86,149,440
	Transportation — 3.7%
564,900	United Parcel Service, Inc., Class B		59,580,003
	Total Common Stocks (Cost $1,223,573,316)		1,531,283,717
MONEY MARKET FUND — 5.6%
91,863,962	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(b)		91,863,962
	Total Money Market Fund (Cost $91,863,962)		91,863,962
Total Investments — 99.7% (Cost $1,315,437,278)			1,623,147,679
Net Other Assets (Liabilities) — 0.3%			4,141,250
NET ASSETS — 100.0%		$	1,627,288,929

(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.

16

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 84.9%
	Automobiles & Components — 0.2%
2,263	Gentherm, Inc.(a)	$	94,118
	Banks — 2.8%
28,261	BBX Capital Corp., Class A(a)(b)		451,046
10,600	Citigroup, Inc.(b)		442,550
34,600	NMI Holdings, Inc., Class A(a)		174,730
5,000	SunTrust Banks, Inc.(b)		180,400
			1,248,726
	Consumer Durables & Apparel — 1.0%
17,965	Kate Spade & Co.(a)		458,467
	Consumer Services — 5.1%
25,961	Belmond, Ltd., Class A(a)		246,370
5,908	Jack in the Box, Inc.		377,344
22,309	MGM Resorts International(a)		478,305
8,457	Norwegian Cruise Line Holdings, Ltd.(a)		467,588
25,381	Penn National Gaming, Inc.(a)(b)		423,609
1,600	Service Corp. International		39,488
19,510	Wendy’s Co. (The)		212,464
			2,245,168
	Diversified Financials — 8.7%
3,000	Ameriprise Financial, Inc.		282,030
22,300	Ares Management LP		343,420
6,500	Blackstone Group LP (The)		182,325
25,900	Carlyle Group LP (The)(b)		437,192
73,900	Cowen Group, Inc., Class A(a)		281,559
4,400	Federated Investors, Inc., Class B		126,940
5,300	Fifth Street Asset Management, Inc.(b)		16,218
7,000	Invesco, Ltd.		215,390
30,400	KKR & Co. LP(b)		446,576
10,300	Morgan Stanley		257,603
27,000	OM Asset Management PLC		360,450
18,400	Oppenheimer Holdings, Inc., Class A(b)		290,352
1,676	Virtus Investment Partners, Inc.(b)		130,912
15,500	Voya Financial, Inc.(b)		461,435
			3,832,402
	Energy — 15.6%
6,200	Apache Corp.(b)		302,622
4,000	ARC Resources, Ltd.		57,975
26,771	Black Stone Minerals LP(b)		375,062
2,700	Cimarex Energy Co.(b)		262,629
1,800	Concho Resources, Inc.(a)(b)		181,872
6,900	ConocoPhillips(b)		277,863
18,611	Cross Timbers Royalty Trust		282,143
9,500	Devon Energy Corp.(b)		260,680
42,812	Dorchester Minerals LP(b)		487,629
30,301	Enduro Royalty Trust		82,722
7,550	EOG Resources, Inc.(b)		547,979
68,700	Freehold Royalties, Ltd.		551,592
11,300	Freehold Royalties, Ltd.		91,705
5,500	Hess Corp.		289,575
1,000	Magellan Midstream Partners LP		68,800
12,600	Marathon Oil Corp.(b)		140,364
2,600	Mesa Royalty Trust		21,580
6,300	MPLX LP		187,047
10,000	Newfield Exploration Co.(a)		332,500
2,575	North European Oil Royalty Trust		20,059
6,300	Occidental Petroleum Corp.(b)		431,109
3,000	Pacific Coast Oil Trust		4,620

Shares		Fair Value
COMMON STOCKS — (continued)
	Energy — (continued)
1,400	PDC Energy, Inc.(a)(b)	$	83,230
32,400	Permian Basin Royalty Trust		199,584
2,800	Pioneer Natural Resources Co.		394,072
4,900	Plains GP Holdings LP, Class A(b)		42,581
2,000	Royal Dutch Shell PLC, Class B, ADR		98,380
21,743	Sabine Royalty Trust(b)		643,593
5,300	Shell Midstream Partners LP		194,033
			6,913,600
	Food & Staples Retailing — 0.5%
2,270	CVS Caremark Corp.(b)		235,467
	Food, Beverage & Tobacco — 2.6%
8,274	Molson Coors Brewing Co., Class B(b)		795,793
4,252	TreeHouse Foods, Inc.(a)(b)		368,861
			1,164,654
	Health Care Equipment & Services — 11.2%
1,503	ABIOMED, Inc.(a)(b)		142,500
1,887	Adeptus Health, Inc., Class A(a)		104,804
2,496	Amedica Corp.(a)(b)		3,869
5,474	Amedisys, Inc.(a)(b)		264,613
1,968	AMN Healthcare Services, Inc.(a)		66,145
1,819	Amsurg Corp.(a)(b)		135,697
425	athenahealth, Inc.(a)		58,982
2,129	Baxter International, Inc.		87,459
2,457	Boston Scientific Corp.(a)		46,216
8,199	Brookdale Senior Living, Inc.(a)		130,200
2,080	Centene Corp.(a)		128,066
602	Cooper Cos., Inc. (The)		92,690
1,198	Edwards Lifesciences Corp.(a)(b)		105,676
9,083	Envision Healthcare Holdings, Inc.(a)(b)		185,293
2,128	HCA Holdings, Inc.(a)(b)		166,090
1,080	Henry Schein, Inc.(a)(b)		186,440
547	Humana, Inc.		100,074
253	Intuitive Surgical, Inc.(a)(b)		152,066
7,955	K2M Group Holdings, Inc.(a)(b)		117,973
1,352	Laboratory Corp. of America Holdings(a)(b)		158,360
16,098	LDR Holding Corp.(a)(b)		410,338
992	McKesson Corp.		155,992
5,699	Medtronic PLC(b)		427,425
59,179	Neovasc, Inc.(a)(b)		252,694
3,141	Nevro Corp.(a)(b)		176,713
4,439	NuVasive, Inc.(a)(b)		215,957
3,955	STERIS PLC(b)		281,003
17,616	Streamline Health Solutions, Inc.(a)		24,839
3,244	Surgical Care Affiliates, Inc.(a)(b)		150,132
3,074	Tenet Healthcare Corp.(a)		88,931
1,592	UnitedHealth Group, Inc.(b)		205,209
4,299	Zeltiq Aesthetics, Inc.(a)(b)		116,761
			4,939,207
	Insurance — 2.8%
52,100	Ambac Financial Group, Inc.(a)(b)		823,180
3,500	Primerica, Inc.		155,855
3,600	Prudential Financial, Inc.		259,992
			1,239,027
	Materials — 1.0%
39,935	Dominion Diamond Corp.		442,879
	Media — 1.7%
62,028	Global Eagle Entertainment, Inc.(a)(b)		528,479

Continued

17

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Media — (continued)
12,949	World Wrestling Entertainment, Inc., Class A	$	228,679
			757,158
	Pharmaceuticals, Biotechnology & Life Sciences — 6.7%
2,164	Akorn, Inc.(a)		50,919
2,666	Alder Biopharmaceuticals, Inc.(a)		65,290
1,770	Alexion Pharmaceuticals, Inc.(a)(b)		246,420
537	Allergan PLC(a)(b)		143,932
9,980	Amicus Therapeutics, Inc.(a)(b)		84,331
9,361	AstraZeneca PLC, ADR(b)		263,606
1,696	BioMarin Pharmaceutical, Inc.(a)		139,886
1,840	Bristol-Myers Squibb Co.(b)		117,539
2,493	Catalent, Inc.(a)		66,488
107	Celator Pharmaceuticals, Inc.(a)		1,180
6,814	Collegium Pharmaceutical, Inc.(a)(b)		123,674
1,604	Eagle Pharmaceuticals, Inc.(a)		64,962
30,658	Endocyte, Inc.(a)(b)		95,040
12,331	EPIRUS Biopharmaceuticals, Inc.(a)		33,170
549	Mettler-Toledo International, Inc.(a)(b)		189,273
10,000	Minerva Neurosciences, Inc.(a)		61,400
2,866	Neurocrine Biosciences, Inc.(a)		113,350
1,845	Ophthotech Corp.(a)(b)		77,988
3,622	Otonomy, Inc.(a)(b)		54,040
2,389	Pacira Pharmaceuticals, Inc.(a)(b)		126,569
10,634	Pfizer, Inc.(b)		315,192
4,400	Portola Pharmaceuticals, Inc.(a)(b)		89,760
10,611	ProQR Therapeutics NV(a)(b)		51,782
1,284	Radius Health, Inc.(a)		40,369
6,631	Raptor Pharmaceutical Corp.(a)		30,503
773	Shire PLC, ADR		132,879
1,265	Thermo Fisher Scientific, Inc.(b)		179,111
			2,958,653
	Real Estate — 1.7%
24,000	Colony Capital, Inc., REIT		402,480
23,685	FelCor Lodging Trust, Inc., REIT		192,322
5,276	Gaming and Leisure Properties, Inc., REIT		163,134
			757,936
	Retailing — 2.1%
9,620	Aaron’s, Inc.		241,462
753	Amazon.com, Inc.(a)(b)(c)		447,011
4,903	Macy’s, Inc.		216,173
1,524	Tailored Brands, Inc.		27,280
			931,926
	Software & Services — 8.4%
50	Absolute Software Corp.		242
9,382	Electronic Arts, Inc.(a)(b)(c)		620,244
5,103	Facebook, Inc., Class A(a)(b)		582,252
45,000	SciQuest, Inc.(a)		624,600
50,000	TiVo, Inc.(a)		475,500
15,000	Upland Software, Inc.(a)		103,050
354,295	YuMe, Inc.(a)(b)		1,325,063
			3,730,951
	Technology Hardware & Equipment — 7.8%
191,963	Extreme Networks, Inc.(a)(b)		597,005
284,784	ID Systems, Inc.(a)(b)		1,235,963
23,100	Lexmark International, Inc., Class A(b)		772,233

Shares		Fair Value
COMMON STOCKS — (continued)
	Technology Hardware & Equipment — (continued)
140,273	Numerex Corp., Class A(a)(b)	$	855,665
			3,460,866
	Telecommunication Services — 5.0%
84,605	Boingo Wireless, Inc.(a)(b)		653,151
82,746	inContact, Inc.(a)(b)		735,612
21,297	magicJack VocalTec, Ltd.(a)(b)		139,708
149,077	Vonage Holdings Corp.(a)(b)		681,282
			2,209,753
	Total Common Stocks (Cost $40,061,164)		37,620,958
PREFERRED STOCKS — 1.0%
	Banks — 1.0%
170,057	Fannie Mae, Series R, 7.625%(b)		431,945
	Total Preferred Stocks (Cost $1,105,236)		431,945
Contracts
CALL OPTIONS PURCHASED — 0.1%
	Materials — 0.0%
50	Builders FirstSource Inc., Expires 05/20/16, Strike Price $10		8,750
83	Dominion Diamond Corp., Expires 05/20/16, Strike Price $12.5		2,075
			10,825
	Pharmaceuticals, Biotechnology & Life Sciences — 0.0%
24	Portola Pharmaceuticals Inc., Expires 04/15/16, Strike Price $30		240
21	Portola Pharmaceuticals Inc., Expires 04/15/16, Strike Price $35		105
			345
	Real Estate — 0.0%
25	FelCor Lodging Trust Inc., Expires 06/17/16, Strike Price $7.5		1,875
	Retailing — 0.0%
3	Amazon.com Inc., Expires 05/20/16, Strike Price $600		8,811
	Software & Services — 0.1%
6	Electronic Arts Inc., Expires 06/17/16, Strike Price $62.5		3,810
21	Electronic Arts Inc., Expires 06/17/16, Strike Price $65		8,925
			12,735
	Total Call Options Purchased (Cost $57,090)		34,591

Continued

18

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Contracts		Fair Value
PUT OPTIONS PURCHASED — 0.3%
	Consumer Durables & Apparel — 0.0%
4	VF Corp., Expires 05/20/16, Strike Price $60	$	360
26	VF Corp., Expires 05/20/16, Strike Price $62.5		4,030
			4,390
	Exchange Traded Funds — 0.3%
259	Direxion Daily Financial Bull 3X Shares, Expires 01/20/17, Strike Price $28.75		137,270
22	SPDR S&P500 ETF Trust, Expires 04/29/16, Strike Price $201.5		3,454
			140,724
	Total Put Options Purchased (Cost $154,358)		145,114
Shares
WARRANTS — 2.7%
	Banks — 1.8%
15,700	JPMorgan Chase & Co. (Issued/exercisable 10/28/08, 1 Share for 1 Warrant, Expires 10/28/18, Strike Price $42.20)		277,890
204,200	Zions Bancorporation, (Issued/exercisable 05/20/10, 1 Share for 1 Warrant, Expires 05/22/20, Strike Price $36.05)(b)		483,954
50,268	Zions Bancorporation, (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $36.27)(b)		45,241
			807,085
	Diversified Financials — 0.9%
295,457	Bank of America Corp., (Issued/exercisable 01/09/09, 1 Share for 1 Warrant, Expires 10/28/18, Strike Price $30.79)(b)		59,091
12,400	Capital One Financial Corp., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $42.07)(b)		354,640
			413,731
	Total Warrants (Cost $2,228,488)		1,220,816
Total Long-Term Investments — 89.0% (Cost $43,606,336)			39,453,424
MONEY MARKET FUND — 5.1%
2,241,393	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(d)		2,241,393
	Total Money Market Fund (Cost $2,241,393)		2,241,393
Total Investments Before Investments Sold Short — 94.1% (Cost $45,847,729)			41,694,817

Shares		Fair Value
INVESTMENTS SOLD SHORT — (44.1)%
	Automobiles & Components — (0.9)%
(24,483)	Gentex Corp.	$	(384,138	)
	Banks — (1.1)%
(12,639)	Old National Bancorp		(154,068	)
(21,200)	People’s United Financial, Inc.		(337,716	)
			(491,784	)
	Consumer Durables & Apparel — (2.9)%
(7,567)	Best Buy Co., Inc.		(245,472	)
(2,159)	NIKE, Inc., Class B		(132,714	)
(454)	Ralph Lauren Corp.		(43,702	)
(4,821)	Under Armour, Inc., Class A(a)		(408,965	)
(6,879)	VF Corp.(c)		(445,484	)
			(1,276,337	)
	Consumer Services — (2.4)%
(5,088)	Carnival Corp.		(268,494	)
(1,104)	Cracker Barrel Old Country Store, Inc.		(168,548	)
(1,742)	Darden Restaurants, Inc.		(115,495	)
(1,483)	Dunkin’ Brands Group, Inc.		(69,953	)
(3,985)	Las Vegas Sands Corp.		(205,945	)
(3,730)	Starbucks Corp.		(222,681	)
			(1,051,116	)
	Diversified Financials — (1.0)%
(300)	FactSet Research Systems, Inc.		(45,459	)
(5,600)	Financial Engines, Inc.		(176,008	)
(1,200)	Franklin Resources, Inc.		(46,860	)
(23,000)	LendingClub Corp.(a)		(190,900	)
			(459,227	)
	Energy — (4.2)%
(10,000)	Callon Petroleum Co.(a)		(88,500	)
(8,000)	Exxon Mobil Corp.		(668,720	)
(14,500)	Helmerich & Payne, Inc.		(851,440	)
(13,000)	SandRidge Mississippian Trust I		(33,670	)
(45,000)	SandRidge Permian Trust		(116,100	)
(9,000)	Unit Corp.(a)		(79,290	)
			(1,837,720	)
	Exchange Traded Funds — (5.9)%
(4,957)	Consumer Staples Select Sector Standard and Poors Fund		(262,969	)
(4,800)	Direxion Daily Financial Bear 3X Shares(a)		(203,904	)
(25,223)	Direxion Daily Financial Bull 3X Shares(a)		(624,774	)
(2,611)	Direxion Daily Small Cap Bull 3X Shares(a)		(151,438	)
(8,500)	Energy Select Sector SPDR Fund		(526,320	)
(1,483)	iShares Russell 2000 ETF		(164,048	)
(13,238)	SPDR S&P Metals & Mining ETF		(271,247	)
(2,066)	SPDR S&P500 ETF Trust		(424,687	)
			(2,629,387	)
	Food & Staples Retailing — (0.5)%
(2,030)	Kroger Co. (The)		(77,648	)
(3,143)	Sysco Corp.		(146,872	)
			(224,520	)
	Food, Beverage & Tobacco — (2.0)%
(1,361)	Campbell Soup Co.		(86,818	)
(5,062)	Dean Foods Co.		(87,674	)
(8,343)	SABMiller PLC, ADR		(509,757	)

Continued

19

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
INVESTMENTS SOLD SHORT — (continued)
	Food, Beverage & Tobacco — (continued)
(2,369)	Sanderson Farms, Inc.	$	(213,636	)
			(897,885	)
	Health Care Equipment & Services — (2.9)%
(3,199)	Computer Programs & Systems, Inc.		(166,732	)
(2,519)	Express Scripts Holding Co.(a)		(173,030	)
(4,153)	MEDNAX, Inc.(a)		(268,367	)
(3,439)	Neogen Corp.(a)		(173,154	)
(15,384)	Select Medical Holdings Corp.		(181,685	)
(1,386)	Stryker Corp.		(148,704	)
(841)	Team Health Holdings, Inc.(a)		(35,162	)
(2,088)	Veeva Systems, Inc., Class A(a)		(52,284	)
(958)	Zimmer Biomet Holdings, Inc.		(102,152	)
			(1,301,270	)
	Household & Personal Products — (0.3)%
(1,135)	Kimberly-Clark Corp.		(152,669	)
	Pharmaceuticals, Biotechnology & Life Sciences — (6.6)%
(2,538)	AbbVie, Inc.		(144,971	)
(546)	ACADIA Pharmaceuticals, Inc.(a)		(15,266	)
(2,768)	Agios Pharmaceuticals, Inc.(a)		(112,381	)
(5,445)	AMAG Pharmaceuticals, Inc.(a)		(127,413	)
(2,469)	Axovant Sciences, Ltd.(a)		(28,344	)
(4,221)	Cambrex Corp.(a)		(185,724	)
(2,128)	Celgene Corp.(a)		(212,992	)
(2,685)	Cepheid(a)		(89,572	)
(2,554)	Concordia Healthcare Corp.		(65,382	)
(771)	Editas Medicine, Inc.(a)		(26,630	)
(5,687)	Halozyme Therapeutics, Inc.(a)		(53,856	)
(7,330)	ImmunoGen, Inc.(a)		(62,452	)
(2,988)	Intrexon Corp.(a)		(101,263	)
(867)	Jazz Pharmaceuticals PLC(a)		(113,187	)
(828)	Juno Therapeutics, Inc.(a)		(31,539	)
(405)	Kite Pharma, Inc.(a)		(18,594	)
(10,278)	Luminex Corp.(a)		(199,393	)
(3,264)	Mallinckrodt PLC(a)		(200,018	)
(12,000)	Meda AB		(223,349	)
(6,623)	NantKwest, Inc.(a)		(54,441	)
(7,820)	Nektar Therapeutics(a)		(107,525	)
(1,291)	Perrigo Co. PLC		(165,158	)
(381)	Regeneron Pharmaceuticals, Inc.(a)		(137,328	)
(4,538)	Sagent Pharmaceuticals, Inc.(a)		(55,226	)
(2,578)	Spark Therapeutics, Inc.(a)		(76,077	)
(1,212)	Vertex Pharmaceuticals, Inc.(a)		(96,342	)
(618)	WaVe Life Sciences, Ltd.(a)		(8,578	)
(4,773)	Zoetis, Inc.		(211,587	)
			(2,924,588	)
	Real Estate — (2.6)%
(26,250)	American Homes 4 Rent, Class A, REIT	��	(417,367	)
(6,400)	Iron Mountain, Inc., REIT		(217,024	)
(6,242)	LaSalle Hotel Properties, REIT		(157,985	)
(2,373)	Omega Healthcare Investors, Inc., REIT		(83,767	)
(4,265)	Pebblebrook Hotel Trust, REIT		(123,984	)

Shares		Fair Value
INVESTMENTS SOLD SHORT — (continued)
	Real Estate — (continued)
(10,500)	Silver Bay Realty Trust Corp., REIT	$	(155,925	)
			(1,156,052	)
	Retailing — (2.2)%
(2,942)	Foot Locker, Inc.		(189,759	)
(2,281)	Netflix, Inc.(a)		(233,187	)
(808)	Pool Corp.		(70,894	)
(6,532)	Ross Stores, Inc.		(378,203	)
(1,159)	TJX Cos., Inc. (The)		(90,808	)
			(962,851	)
	Semiconductors & Semiconductor Equipment — (2.0)%
(5,000)	Cavium, Inc.(a)		(305,800	)
(10,000)	Texas Instruments, Inc.		(574,200	)
			(880,000	)
	Software & Services — (4.2)%
(5,000)	Akamai Technologies, Inc.(a)		(277,850	)
(7,500)	Aspen Technology, Inc.(a)		(270,975	)
(1,873)	Cimpress NV(a)		(169,862	)
(5,836)	GrubHub, Inc.(a)		(146,659	)
(5,000)	HubSpot, Inc.(a)		(218,100	)
(1,000)	NetSuite, Inc.(a)		(68,490	)
(10,000)	Nuance Communications, Inc.(a)		(186,900	)
(10,200)	Western Union Co. (The)		(196,758	)
(15,088)	Wix.com, Ltd.(a)		(305,834	)
			(1,841,428	)
	Technology Hardware & Equipment — (1.6)%
(5,000)	Arrow Electronics, Inc.(a)		(322,050	)
(1,400)	F5 Networks, Inc.(a)		(148,190	)
(18,472)	QLogic Corp.(a)		(248,264	)
			(718,504	)
	Transportation — (0.8)%
(8,558)	American Airlines Group, Inc.		(350,964	)
Total Investments Sold Short — (44.1)% (Cost $(19,926,098))			(19,540,440	)
Total Investments — 50.0% (Cost $25,921,631)			22,154,377
Net Other Assets (Liabilities) — 50.0%			22,169,092
NET ASSETS — 100.0%		$	44,323,469

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

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

ADR — American Depositary Receipt

ETF — Exchange Traded Funds

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

20

Sterling Capital Behavioral International Equity Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — 95.9%
	Australia — 7.1%
16,225	Bank of Queensland, Ltd.	$	150,739
18,500	BHP Billiton PLC		207,994
8,300	Challenger Ltd/Australia		53,380
32,650	Dexus Property Group, REIT		198,721
3,225	Macquarie Group, Ltd.		163,382
59,506	Qantas Airways, Ltd.		185,649
11,650	Westpac Banking Corp.		271,034
13,600	WorleyParsons, Ltd.		56,087
			1,286,986
	China — 0.5%
120,300	Yangzijiang Shipbuilding Holdings, Ltd.		87,468
	Denmark — 1.1%
2,800	Vestas Wind Systems A/S		197,541
	Finland — 1.0%
75	Nokian Renkaat OYJ		2,647
9,900	UPM-Kymmene OYJ		179,342
			181,989
	France — 11.0%
2,100	Atos SE		171,047
4,375	BNP Paribas SA		220,191
3,500	Casino Guichard Perrachon SA		200,646
12,600	Credit Agricole SA		136,465
3,050	Danone		216,947
100	Orange SA		1,752
9,550	Peugeot SA(a)		163,657
1,925	Renault SA		191,271
1,625	Sanofi		131,027
3,100	SCOR SE		110,058
3,037	Technip SA		168,332
175	Valeo SA		27,241
3,350	Vinci SA		249,570
			1,988,204
	Germany — 6.9%
1,600	Allianz SE		260,261
600	Continental AG		136,548
11,125	Deutsche Lufthansa AG(a)		179,823
1,152	Deutsche Telekom AG		20,679
20,125	E.ON SE		193,233
2,200	Fraport AG Frankfurt Airport Services Worldwide		133,455
1	Hannover Rueck SE		116
1,150	Henkel AG & Co. KGaA		113,023
975	Muenchener Rueckversicherungs AG		198,315
4	ProSiebenSat.1 Media AG		206
			1,235,659
	Hong Kong — 4.8%
12,150	CK Hutchison Holdings, Ltd.		157,722
129,750	HKT Trust & HKT, Ltd.		178,634
114,625	Sino Land Co., Ltd.		181,453
285,300	WH Group, Ltd.(a)(b)		206,692
41,275	Yue Yuen Industrial Holdings, Ltd.		141,798
			866,299
	Ireland — 1.0%
3,325	Shire PLC		189,063

Shares		Fair Value
COMMON STOCKS — (continued)
	Israel — 2.6%
36,275	Bezeq The Israeli Telecommunication Corp., Ltd.	$	81,845
1,175	Taro Pharmaceutical Industries, Ltd.(a)		168,319
3,900	Teva Pharmaceutical Industries, Ltd.		210,457
			460,621
	Italy — 4.3%
16,125	Intesa Sanpaolo SpA		44,661
60,750	Intesa Sanpaolo SpA, Savings Shares		158,026
7,825	Prysmian SpA		177,280
32,275	Snam Rete Gas SpA		202,176
34,600	Terna Rete Elettrica Nazionale SPA		197,448
			779,591
	Japan — 24.3%
5,300	Alps Electric Co., Ltd.		92,395
48,000	Aozora Bank, Ltd.		167,613
300	Central Japan Railway Co.		53,059
9,400	Daiichi Sankyo Co., Ltd.		209,014
4,900	Fuji Heavy Industries, Ltd.		173,064
5,100	Hitachi Construction Machinery Co., Ltd.		81,024
2,400	Hitachi Metals, Ltd.		24,758
3,100	Hoya Corp.		117,918
9,700	Iida Group Holdings Co., Ltd.		189,182
17,000	ITOCHU Corp.		209,356
9,200	KDDI Corp.		245,726
15,900	Konica Minolta, Inc.		135,061
13,800	Kuraray Co., Ltd.		168,722
300	Lawson, Inc.		25,110
7,500	LIXIL Group Corp.		152,939
31,600	Mitsubishi Chemical Holdings Corp.		164,956
31,000	Mitsubishi Gas Chemical Co., Inc.		166,920
47,000	Mitsubishi Materials Corp.		132,800
8,700	Mitsubishi Tanabe Pharma Corp.		151,281
39,000	Mitsui Chemicals, Inc.		129,948
4,100	Mixi, Inc.		152,277
117,800	Mizuho Financial Group, Inc.		175,949
10,900	Nexon Co., Ltd.		185,855
5,500	Nippon Telegraph & Telephone Corp.		236,919
16,000	Sumitomo Corp.		159,012
11,000	Sumitomo Rubber Industries, Ltd.		169,968
50,000	Teijin, Ltd.		174,153
11,000	TonenGeneral Sekiyu KK		99,498
4,300	Toyota Motor Corp.		227,408
			4,371,885
	Netherlands — 2.0%
3,850	AerCap Holdings NV(a)		149,226
2,375	Heineken Holding NV		185,339
550	Randstad Holding NV		30,485
			365,050
	Singapore — 1.1%
78,300	Wilmar International, Ltd.		195,191
	Spain — 1.2%
2,532	Banco Bilbao Vizcaya Argentaria SA		16,834
764	Caixabank SA(a)		2,259
8,300	Endesa SA		159,330
425	Red Electrica Corp. SA		36,899
			215,322

Continued

21

Sterling Capital Behavioral International Equity Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
COMMON STOCKS — (continued)
	Sweden — 4.3%
5,350	Nordea Bank AB	$	51,403
7,725	Skanska AB, Class B		176,324	��
6,175	Svenska Cellulosa AB, Class B		192,972
8,600	Swedbank AB, Class A		185,279
4,700	Swedish Match AB		159,557
			765,535
	Switzerland — 7.0%
4,275	Aryzta AG		177,082
1,050	Lonza Group AG		177,666
2,675	Pargesa Holding SA		170,395
1,400	Roche Holding AG		344,631
2,275	Swiss Re AG		210,335
750	Zurich Insurance Group AG		174,172
			1,254,281
	United Kingdom — 15.7%
1,350	Admiral Group PLC		38,449
3,700	Berkeley Group Holdings PLC		171,008
12,650	British Sky Broadcasting Group PLC		186,045
1,975	Carnival PLC		106,429
30,546	Direct Line Insurance Group PLC		162,412
46,800	HSBC Holdings PLC		291,651
4,650	Imperial Brands PLC		257,992
35,875	Intu Properties PLC, REIT		161,274
25,850	Marks & Spencer Group PLC		150,810
6,950	National Grid PLC		98,541
5,825	Persimmon PLC		174,434
13,775	Petrofac, Ltd.		182,213
7,550	RELX PLC		140,317
18,750	Royal Mail PLC		129,451
22,100	Subsea 7 SA(a)		167,325
8,400	William Hill PLC		39,451
59,600	Wm Morrison Supermarkets PLC		170,088
8,550	WPP PLC		199,794
			2,827,684
	Total Common Stocks (Cost $17,331,552)		17,268,369
EXCHANGE TRADED FUND — 2.4%
	United States — 2.4%
7,500	iShares MSCI EAFE ETF		428,475
	Total Exchange Traded Fund (Cost $431,250)		428,475

Shares		Fair Value
MONEY MARKET FUND — 1.0%
	United States — 1.0%
172,371	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)	$	172,371
	Total Money Market Fund (Cost $172,371)		172,371
Total Investments — 99.3% (Cost $17,935,173)			17,869,215
Net Other Assets (Liabilities) — 0.7%			132,140
NET ASSETS — 100.0%		$	18,001,355

(a) Represents non-income producing security.

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

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

ETF — Exchange Traded Fund

MSCI — Morgan Stanley Capital International

REIT — Real Estate Investment Trust

	Percentage
Industry	of net assets
Automobiles & Components		6.1	%
Banks		13.9	%
Capital Goods		10.0	%
Commercial & Professional Services		0.2	%
Consumer Durables & Apparel		3.8	%
Consumer Services		0.8	%
Diversified Financials		1.2	%
Energy		3.7	%
Exchange Traded Fund		2.4	%
Food & Staples Retailing		3.3	%
Food, Beverage & Tobacco		7.8	%
Household & Personal Products		0.6	%
Insurance		2.9	%
Materials		7.5	%
Media		2.9	%
Money Market Fund		1.0	%
Pharmaceuticals, Biotechnology & Life Sciences		8.8	%
Real Estate		4.0	%
Retailing		0.8	%
Software & Services		2.8	%
Technology Hardware & Equipment		1.9	%
Telecommunication Services		4.2	%
Transportation		3.8	%
Utilities		4.9	%
		99.3	%

See accompanying Notes to the Financial Statements.

22

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 19.7%
$418,877	AmeriCredit Automobile Receivables Trust, Series 2012-4, Class C, 1.930%, 8/8/18	$	419,471
380,000	AmeriCredit Automobile Receivables Trust, Series 2013-5, Class C, 2.290%, 11/8/19		382,001
400,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2011-3A, Class A, 3.410%, 11/20/17(a)		403,014
365,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-2A, Class A, 2.802%, 5/20/18(a)		367,949
600,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2013-1A, Class A, 1.920%, 9/20/19(a)		594,612
140,000	Capital Auto Receivables Asset Trust, Series 2013-3, Class B, 2.320%, 7/20/18		140,654
445,000	Capital Auto Receivables Asset Trust, Series 2014-1, Class A4, 1.690%, 10/22/18		446,099
450,000	Capital Auto Receivables Asset Trust, Series 2013-1, Class C, 1.740%, 10/22/18		450,129
147,728	CarMax Auto Owner Trust, Series 2013-4, Class A3, 0.800%, 7/16/18		147,592
396,767	CarMax Auto Owner Trust, Series 2014-1, Class A3, 0.790%, 10/15/18		396,164
280,000	CarMax Auto Owner Trust, Series 2013-3, Class C, 2.150%, 5/15/19		281,821
500,000	Citibank Credit Card Issuance Trust, Series 2013-A3, Class A3, 1.110%, 7/23/18		500,533
235,975	Enterprise Fleet Financing, LLC, Series 2014-1, Class A2, 0.870%, 9/20/19(a)		235,263
316,239	Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a)		314,927
300,000	Enterprise Fleet Financing, LLC, Series 2015-2, Class A2, 1.590%, 2/22/21(a)		299,438
475,816	Fifth Third Auto Trust, Series 2014-2, Class A3, 0.890%, 11/15/18		475,458
355,153	First Franklin Mortgage Loan Trust 2006-FF1, Series 2006-FF1, Class 2A3, 0.673%, 1/25/36(b)		349,559
500,000	Hertz Vehicle Financing, LLC, Series 2011-1A, Class A2, 3.290%, 3/25/18(a)		505,937
420,000	Hyundai Auto Receivables Trust, Series 2012-C, Class B, 1.060%, 6/15/18		418,975
10,506	Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.623%, 1/25/36(b)		10,480
68,353	Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.693%, 11/25/35(b)		67,845
66,233	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 1.183%, 3/25/35(b)		65,986
501,381	RAMP Trust, Series 2005-RZ4, Class A3, 0.833%, 11/25/35(b)		497,173
459,452	RASC Series 2006-EMX1 Trust, Series 2006-EMX1, Class A3, 0.753%, 1/25/36(b)		453,986
418,818	Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18		418,948
325,000	Santander Drive Auto Receivables Trust, Series 2014-2, Class B, 1.620%, 2/15/19		325,108
350,000	Santander Drive Auto Receivables Trust, Series 2014-5, Class C, 2.460%, 6/15/20		352,138
	Total Asset Backed Securities (Cost $9,333,406)		9,321,260

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — 0.2%
$  53,725	Fannie Mae, Series 2009-114, Class AC, 2.500%, 12/25/23	$	54,068
22,109	Fannie Mae, Series 2006-90, Class BE, 6.000%, 4/25/35		22,223
30,542	Morgan Stanley Mortgage Loan Trust, Series 2005-5AR, Class 1A3, 0.703%, 9/25/35(b)		30,439
	Total Collateralized Mortgage Obligations (Cost $107,378)		106,730
COMMERCIAL MORTGAGE-BACKED SECURITIES — 24.0%
540,000	Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/10/46		541,845
233,407	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		234,876
22,893	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.339%, 11/10/42(b)		22,867
201,672	Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T22, Class AJ, 5.728%, 4/12/38(b)		201,588
250,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/11/42(b)		262,824
220,000	Bear Stearns Commercial Mortgage Securities Trust 2006-PWR14, Series 2006-PW14, Class AM, 5.243%, 12/11/38		222,614
420,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.705%, 12/10/49(b)		432,966
96,848	COMM Mortgage Trust, Series 2006-C7, Class A4, 5.844%, 6/10/46(b)		96,744
400,000	COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/10/46		405,910
410,821	COMM Mortgage Trust, Series 2007-C9, Class A4, 5.813%, 12/10/49(b)		426,641
557,610	Commercial Mortgage Trust, Series 2007-GG9, Class A4, 5.444%, 3/10/39		569,051
435,530	Credit Suisse Commercial Mortgage Trust Series 2007-C3, Series 2007-C3, Class A4, 5.699%, 6/15/39(b)		445,359
141,776	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/39		142,628
441,822	JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-CB20, Class A4, 5.794%, 2/12/51(b)		459,021
302,821	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB15, Class A4, 5.814%, 6/12/43(b)		302,614
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		502,769
356,713	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/47		362,967
450,579	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/49		459,810
4,135	LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4, 4.568%, 1/15/31		4,147
349,052	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A3, 5.866%, 9/15/45(b)		367,075

Continued

23

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$415,000	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.153%, 9/15/45(b)	$	428,009
450,000	Merrill Lynch Mortgage Trust, Series 2008-C1, Class AM, 6.267%, 2/12/51(b)		478,638
448,625	ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 5.864%, 8/12/49(b)		464,907
180,453	ML-CFC Commercial Mortgage Trust, Series 2007-7, Class A4, 5.737%, 6/12/50(b)		186,349
115,978	Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 5.891%, 8/12/41(b)		116,199
112,105	Morgan Stanley Capital I Trust, Series 2006-HQ10, Class A4, 5.328%, 11/12/41		112,615
420,000	Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AM, 5.360%, 11/12/41		424,653
450,000	Morgan Stanley Capital I Trust, Series 2007-T27, Class AM, 5.645%, 6/11/42(b)		466,428
360,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class AM, 6.268%, 1/11/43(b)		382,232
500,000	Morgan Stanley Capital I Trust, Series 2006-HQ9, Class AM, 5.773%, 7/12/44(b)		503,213
413,629	Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A4, 5.918%, 6/11/49(b)		428,951
444,689	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48		448,380
446,126	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/48		449,988
	Total Commercial Mortgage-Backed Securities (Cost $11,691,071)		11,354,878
CORPORATE BONDS — 51.9%
	Automobiles & Components — 2.0%
425,000	Ford Motor Credit Co., LLC, 1.260%, 3/27/17(b)		422,985
250,000	General Motors Financial Co., Inc., 2.750%, 5/15/16		250,451
250,000	Nissan Motor Acceptance Corp., 1.800%, 3/15/18(a)		250,296
			923,732
	Banks — 14.0%
200,000	Abbey National Treasury Services PLC, GMTN, 1.475%, 8/24/18(b)		198,496
450,000	ABN AMRO Bank NV, 1.421%, 10/28/16(a)(b)		450,772
225,000	Bank of Nova Scotia (The), 1.375%, 12/18/17		224,845
250,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.700%, 3/5/18(a)		248,650
250,000	BNP Paribas SA, MTN, 1.375%, 3/17/17		250,287
370,000	Citigroup, Inc., 1.700%, 7/25/16		370,614
250,000	Compass Bank, BKNT, 1.850%, 9/29/17		250,333
300,000	Credit Suisse, GMTN, 1.125%, 5/26/17(b)		299,166
185,000	Fifth Third Bancorp, 1.043%, 12/20/16(b)		184,359
220,000	Huntington National Bank (The), BKNT, 1.300%, 11/20/16		220,009
425,000	JPMorgan Chase & Co., MTN, 1.350%, 2/15/17		425,935
250,000	KeyBank NA, BKNT, 1.650%, 2/1/18		250,154
223,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(a)		230,052

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Banks — (continued)
$300,000	Manufacturers & Traders Trust Co., BKNT, 1.250%, 1/30/17	$	300,082
305,000	MUFG Union Bank NA, BKNT, 5.950%, 5/11/16		306,599
425,000	PNC Funding Corp., 2.700%, 9/19/16		427,936
250,000	Raymond James Financial, Inc., 4.250%, 4/15/16		250,235
275,000	Royal Bank of Canada, GMTN, 1.450%, 9/9/16		275,754
300,000	Royal Bank of Scotland Group PLC, 1.875%, 3/31/17		299,406
250,000	SunTrust Bank, BKNT, 1.350%, 2/15/17		250,170
250,000	Svenska Handelsbanken AB, 3.125%, 7/12/16		251,560
250,000	UBS, GMTN, 1.375%, 8/14/17		249,414
400,000	US Bancorp, MTN, 1.650%, 5/15/17		402,100
			6,616,928
	Capital Goods — 1.0%
225,000	Penske Truck Leasing Co. LP / PTL Finance Corp., 3.375%, 3/15/18(a)		229,651
250,000	Textron, Inc., 4.625%, 9/21/16		253,740
			483,391
	Commercial & Professional Services — 0.6%
275,000	Republic Services, Inc., 3.800%, 5/15/18		286,749
	Consumer Durables & Apparel — 0.4%
200,000	D.R. Horton, Inc., 6.500%, 4/15/16		200,000
	Consumer Services — 1.3%
300,000	ERAC USA Finance, LLC, 1.400%, 4/15/16(a)		300,050
300,000	Hyundai Capital America, 1.875%, 8/9/16(a)		300,550
			600,600
	Containers & Packaging — 0.4%
200,000	Ecolab, Inc., 3.000%, 12/8/16		202,431
	Diversified Financials — 7.4%
250,000	AIG Global Funding, 1.650%, 12/15/17(a)		249,645
175,000	Ally Financial, Inc., 2.750%, 1/30/17		174,125
325,000	American Express Co., 1.208%, 5/22/18(b)		322,850
300,000	Capital One Bank USA NA, BKNT, 1.150%, 11/21/16		300,026
445,000	Countrywide Financial Corp., 6.250%, 5/15/16		447,526
250,000	Eksportfinans ASA, 2.375%, 5/25/16		250,193
250,000	HSBC Bank USA NA, BKNT, 6.000%, 8/9/17		263,103
300,000	Macquarie Group, Ltd., 1.616%, 1/31/17(a)(b)		299,949
500,000	Morgan Stanley, 1.369%, 1/5/18(b)		498,279
419,000	Murray Street Investment Trust I, STEP, 4.647%, 3/9/17		430,774
250,000	Principal Life Global Funding II, 1.125%, 2/24/17(a)		250,082
			3,486,552
	Energy — 1.7%
250,000	Magellan Midstream Partners LP, 5.650%, 10/15/16		255,501
245,000	Total Capital International SA, 1.550%, 6/28/17		245,965
300,000	Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16		300,051
			801,517
	Food, Beverage & Tobacco — 3.0%
225,000	Cargill, Inc., 1.900%, 3/1/17(a)		226,844
250,000	Kraft Foods Group, Inc., 2.250%, 6/5/17		252,405

Continued

24

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Food, Beverage & Tobacco — (continued)
$250,000	Kraft Heinz Foods Co., 2.000%, 7/2/18(a)	$	252,313
200,000	PepsiCo, Inc., 2.500%, 5/10/16		200,422
250,000	Reynolds American, Inc., 3.500%, 8/4/16		251,561
250,000	SABMiller Holdings, Inc., 2.450%, 1/15/17(a)		252,293
			1,435,838
	Health Care Equipment & Services — 0.9%
296,000	Becton Dickinson and Co., 1.750%, 11/8/16		296,985
130,000	DENTSPLY International, Inc., 2.750%, 8/15/16		130,715
			427,700
	Health Care Providers & Services — 1.7%
415,000	Actavis Funding SCS, 1.712%, 3/12/18(b)		417,283
375,000	Zimmer Holdings, Inc., 1.450%, 4/1/17		374,875
			792,158
	Insurance — 5.7%
200,000	International Lease Finance Corp., 5.750%, 5/15/16		200,500
250,000	Jackson National Life Global Funding, 1.250%, 2/21/17(a)		250,294
250,000	Liberty Mutual Group, Inc., 6.700%, 8/15/16(a)		254,847
400,000	Metropolitan Life Global Funding I, 1.300%, 4/10/17(a)		400,614
300,000	Pricoa Global Funding I, 1.150%, 11/25/16(a)		300,090
300,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		311,176
250,000	Sirius International Group, Ltd., 6.375%, 3/20/17(a)		256,438
275,000	Symetra Financial Corp., 6.125%, 4/1/16(a)		275,000
425,000	Wells Fargo & Co., MTN, 1.250%, 7/20/16		425,754
			2,674,713
	Materials — 1.1%
250,000	Glencore Funding, LLC, 1.700%, 5/27/16(a)		249,119
250,000	Rio Tinto Finance USA PLC, 1.375%, 6/17/16		249,875
			498,994
	Media — 1.2%
300,000	Omnicom Group, Inc., 5.900%, 4/15/16		300,404
250,000	Viacom, Inc., 6.250%, 4/30/16		250,952
			551,356
	Pharmaceuticals, Biotechnology & Life Sciences — 0.5%
240,000	Amgen, Inc., 1.250%, 5/22/17		240,472
	Real Estate — 4.5%
250,000	Essex Portfolio LP, REIT, 5.500%, 3/15/17		259,022
250,000	Highwoods Realty LP, REIT, 5.850%, 3/15/17		258,900
128,000	National Retail Properties, Inc., REIT, 6.875%, 10/15/17		137,342
175,000	Realogy Group, LLC/Sunshine Group Florida, Ltd. (The), 3.375%, 5/1/16(a)		174,781
300,000	Simon Property Group LP, REIT, 2.800%, 1/30/17		303,019
250,000	Ventas Realty LP, REIT, 1.250%, 4/17/17		248,960
155,000	Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17		153,450
250,000	WEA Finance, LLC/Westfield UK & Europe Finance PLC, 1.750%, 9/15/17(a)		249,049

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Real Estate — (continued)
$350,000	Welltower, Inc., REIT, 6.200%, 6/1/16	$	352,747
			2,137,270
	Technology Hardware & Equipment — 0.3%
150,000	Apple, Inc., 1.300%, 2/23/18		151,163
	Telecommunication Services — 1.0%
225,000	AT&T, Inc., 1.400%, 12/1/17		225,109
241,000	Verizon Communications, Inc., 2.500%, 9/15/16		242,856
			467,965
	Transportation — 1.0%
250,000	Kansas City Southern, 1.321%, 10/28/16(a)(b)		247,956
224,000	Ryder System, Inc., MTN, 2.500%, 3/1/17		226,193
			474,149
	Utilities — 2.2%
215,000	Dominion Gas Holdings, LLC, 1.050%, 11/1/16		215,054
250,000	PSEG Power, LLC, 2.750%, 9/15/16		251,998
250,000	Sempra Energy, 6.500%, 6/1/16		251,953
325,000	Southern Co. (The), 1.950%, 9/1/16		326,535
			1,045,540
	Total Corporate Bonds (Cost $24,502,551)		24,499,218
MUNICIPAL BONDS — 2.2%
	California — 0.4%
200,000	Municipal Improvement Corp. of Los Angeles, Taxable Series A Advance Refunding Revenue, 1.924%, 11/1/17		202,260
	Illinois — 0.5%
250,000	State of Illinois, Public Improvements G.O., Series A (AGM), 5.000%, 6/1/17		261,007
	New Jersey — 0.9%
210,000	New Jersey Economic Development Authority, Pension Funding Revenue, Series B (NATL), OID, 0.000%, 2/15/17		207,281
200,000	New Jersey Economic Development Authority, Taxable, School Facilities Construction, Series Q, Refunding Revenue, 1.096%, 6/15/16		200,014
			407,295
	Puerto Rico — 0.4%
175,000	Puerto Rico Municipal Finance Agency, Public Improvements, G.O., Series A, Callable 1/11/16 @ 100 (AGM, Government GTD), 5.250%, 8/1/18		175,607
	Total Municipal Bonds (Cost $1,039,598)		1,046,169

Continued

25

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 2.4%
1,117,653	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)	$	1,117,653
	Total Money Market Fund (Cost $1,117,653)		1,117,653
Total Investments — 100.4% (Cost $47,791,657)			47,445,908
Net Other Assets (Liabilities) — (0.4)%			(176,616	)
NET ASSETS — 100.0%		$	47,269,292

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

(b) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. 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.

26

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 15.3%
$  400,000	AmeriCredit Automobile Receivables, Series 2015-4, Class B, 2.110%, 1/8/21	$	401,959
12,403	AmeriCredit Automobile Receivables Trust, Series 2012-1, Class C, 2.670%, 1/8/18		12,406
680,000	AmeriCredit Automobile Receivables Trust, Series 2014-1, Class B, 1.680%, 7/8/19		679,565
1,250,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-3A, Class A, 2.100%, 3/20/19(a)		1,247,466
930,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2013-1A, Class A, 1.920%, 9/20/19(a)		921,648
1,000,000	Capital Auto Receivables Asset Trust, Series 2013-4, Class B, 2.060%, 10/22/18		1,002,727
650,000	Capital Auto Receivables Asset Trust, Series 2015-3, Class B, 2.430%, 9/21/20		648,103
569,231	Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a)		566,869
1,200,000	Enterprise Fleet Financing, LLC, Series 2015-2, Class A3, 2.090%, 2/22/21(a)		1,196,154
631,384	First Franklin Mortgage Loan Trust, Series 2006-FF1, Class 2A3, 0.673%, 1/25/36(b)		621,439
500,000	Ford Credit Auto Owner Trust, Series 2012-D, Class B, 1.010%, 5/15/18		498,141
291,667	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A1, 1.120%, 8/25/17(a)		291,590
500,000	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A2, 1.830%, 8/25/19(a)		494,754
950,000	Hyundai Auto Receivables Trust, Series 2013-B, Class B, 1.450%, 2/15/19		950,497
15,408	Mastr Asset Backed Securities Trust, Series 2006-NC1, Class A3, 0.623%, 1/25/36(b)		15,371
55,303	Option One Mortgage Loan Trust, Asset-Backed Certificates, Series 2005-4, Class A3, 0.693%, 11/25/35(b)		54,892
102,360	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 1.183%, 3/25/35(b)		101,978
804,041	RASC Series 2006-EMX1 Trust, Series 2006-EMX1, Class A3, 0.753%, 1/25/36(b)		794,476
533,042	Santander Drive Auto Receivables Trust, Series 2014-1, Class B, 1.590%, 10/15/18		533,207
337,000	Santander Drive Auto Receivables Trust, Series 2013-5, Class C, 2.250%, 6/17/19		337,872
1,000,000	Santander Drive Auto Receivables Trust, Series 2015-1, Class B, 1.970%, 11/15/19		998,661
500,000	Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.260%, 6/15/20		503,249
	Total Asset Backed Securities (Cost $12,905,062)		12,873,024
COLLATERALIZED MORTGAGE OBLIGATIONS — 1.6%
137,100	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		137,399
141,782	Fannie Mae, Series 2003-66, Class PA, 3.500%, 2/25/33		145,663
55,892	Fannie Mae, Series 2005-67, Class HG, 5.500%, 1/25/35		59,273
87,569	Fannie Mae, Series 2009-100, Class PA, 4.500%, 4/25/39		90,719
100,269	Freddie Mac, Series 2770, Class UE, 4.500%, 3/15/19		103,760

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$645,417	Ginnie Mae, Series 2013-165, Class PB, 3.000%, 3/20/41	$	659,177
62,881	PHHMC Trust, Series 2007-6, Class A1, 5.397%, 12/18/37(b)		62,236
60,710	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		62,652
	Total Collateralized Mortgage Obligations (Cost $1,324,490)		1,320,879
COMMERCIAL MORTGAGE-BACKED SECURITIES — 17.5%
288,930	Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(b)		288,952
616,559	Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51		637,446
60,885	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.339%, 11/10/42(b)		60,817
30,394	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		30,260
673,010	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(a)		668,841
219,679	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T26, Class A4, 5.471%, 1/12/45(b)		224,875
740,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		767,216
365,471	CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49		372,599
120,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.705%, 12/10/49(b)		123,704
655,000	COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/10/46		664,678
744,042	COMM Mortgage Trust, Series 2007-C9, Class A4, 5.813%, 12/10/49(b)		772,694
787,560	Commercial Mortgage Trust, Series 2007-GG9, Class A4, 5.444%, 3/10/39		803,720
798,472	Credit Suisse Commercial Mortgage Trust, Series 2007-C3, Class A4, 5.699%, 6/1/39(b)		816,492
575,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C19, Class A2, 3.046%, 4/1/47		595,769
306,305	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		307,286
600,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		603,323
396,843	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/47		403,801
850,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A2, 2.872%, 7/1/47		877,079
166,714	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/49		170,130
578,228	ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 5.864%, 8/12/49(b)		599,213

Continued

27

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$  315,793	ML-CFC Commercial Mortgage Trust, Series 2007-7, Class A4, 5.737%, 6/12/50(b)	$	326,111
800,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A2, 3.119%, 8/1/47		832,855
175,015	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8, Class A2, 1.689%, 12/15/48		175,188
253,494	Morgan Stanley Capital I Trust, Series 2006-T23, Class A4, 5.891%, 8/12/41(b)		253,977
530,000	Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AM, 5.360%, 11/12/41		535,872
640,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class AM, 6.268%, 1/1/43(b)		679,523
654,857	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.268%, 1/11/43(b)		694,425
394,000	Morgan Stanley Capital I Trust, Series 2006-HQ9, Class AM, 5.773%, 7/12/44(b)		396,532
196,218	Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(b)		195,915
310,444	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48		313,020
500,000	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class A3, 3.998%, 3/15/44(a)		523,004
	Total Commercial Mortgage-Backed Securities (Cost $15,317,244)		14,715,317
CORPORATE BONDS — 57.0%
	Automobiles & Components — 2.2%
535,000	Daimler Finance North America, LLC, 2.375%, 8/1/18(a)		543,621
400,000	General Motors Financial Co., Inc., 2.400%, 4/10/18		399,910
400,000	Hyundai Capital America, 2.500%, 3/18/19(a)		403,112
500,000	Nissan Motor Acceptance Corp., 2.550%, 3/8/21(a)		506,532
			1,853,175
	Banks — 14.2%
425,000	Abbey National Treasury Services PLC, GMTN, 2.000%, 8/24/18		427,405
450,000	Athene Global Funding, 2.875%, 10/23/18(a)		442,951
1,000,000	Bank of America Corp., 5.750%, 12/1/17		1,062,621
450,000	Bank of Montreal, 1.400%, 4/10/18		449,477
450,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.700%, 3/5/18(a)		447,570
550,000	BNP Paribas SA, MTN, 2.400%, 12/12/18		559,013
600,000	Capital One NA, BKNT, 1.650%, 2/5/18		595,678
350,000	CIT Group, Inc., 4.250%, 8/15/17		356,164
1,000,000	Citigroup, Inc., 2.550%, 4/8/19		1,014,944
600,000	Compass Bank, BKNT, 1.850%, 9/29/17		600,800
325,000	Fifth Third Bank, MTN, 2.150%, 8/20/18		327,650
575,000	Huntington National Bank (The), 1.375%, 4/24/17		574,075
400,000	ING Bank NV, 2.050%, 8/17/18(a)		401,916
935,000	JPMorgan Chase Bank NA, BKNT, 6.000%, 10/1/17		992,652

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Banks — (continued)
$505,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(a)	$	520,970
340,000	Manufacturers & Traders Trust Co., BKNT, 1.250%, 1/30/17		340,092
330,000	NordeaBank AB, 4.875%, 1/27/20(a)		362,296
355,000	PNC Funding Corp., 5.625%, 2/1/17		367,176
485,000	Royal Bank of Canada, 2.500%, 1/19/21		495,294
500,000	Royal Bank of Scotland Group PLC, 1.875%, 3/31/17		499,010
600,000	Sumitomo Mitsui Banking Corp., GMTN, 1.350%, 7/11/17		597,656
500,000	UBS, MTN, 1.375%, 8/14/17		498,828
			11,934,238
	Capital Goods — 1.7%
295,000	LSB Industries, Inc., 7.750%, 8/1/19		270,663
575,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 3.375%, 3/15/18(a)		586,887
485,000	Waste Management, Inc., 6.100%, 3/15/18		529,781
			1,387,331
	Commercial & Professional Services — 1.4%
350,000	Equifax, Inc., 6.300%, 7/1/17		369,728
400,000	Republic Services, Inc., 3.800%, 5/15/18		417,090
350,000	Service Corp. International, 7.000%, 6/15/17		373,625
			1,160,443
	Consumer Durables & Apparel — 0.6%
164,000	Hanesbrands, Inc., 6.375%, 12/15/20		169,740
355,000	Whirlpool Corp., 1.350%, 3/1/17		354,891
			524,631
	Consumer Services — 1.2%
500,000	Carnival Corp., 3.950%, 10/15/20		531,362
400,000	ERAC USA Finance, LLC, 6.375%, 10/15/17(a)		427,320
			958,682
	Diversified Financials — 8.1%
365,000	Ally Financial, Inc., 3.600%, 5/21/18		361,806
250,000	Bank of New York Mellon Corp. (The), 2.500%, 4/15/21		254,937
240,000	Berkshire Hathaway, Inc., 2.200%, 3/15/21		245,094
400,000	Caisse Centrale Desjardins, 1.550%, 9/12/17(a)		398,539
380,000	Charles Schwab Corp., MTN (The), 6.375%, 9/1/17		406,182
650,000	Credit Suisse, 1.700%, 4/27/18		647,179
300,000	First Data Corp., 6.750%, 11/1/20(a)		315,450
500,000	GE Capital International Funding Co., 2.342%, 11/15/20(a)		512,674
550,000	Goldman Sachs Group, Inc. (The), 6.000%, 6/15/20		627,050
575,000	HSBC Bank USA NA, BKNT, 6.000%, 8/9/17		605,137
900,000	Morgan Stanley, 2.650%, 1/27/20		913,307
484,000	PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20		498,520
500,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		499,498
500,000	State Street Corp., 4.956%, 3/15/18		525,523
			6,810,896
	Energy — 5.5%
400,000	Chevron Phillips Chemical Co., LLC/Chevron Phillips Chemical Co. LP, 1.700%, 5/1/18(a)		397,150

Continued

28

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Energy — (continued)
$250,000	Columbia Pipeline Group, Inc., 2.450%, 6/1/18(a)	$	247,489
500,000	Enbridge Energy Partners LP, Series B, 6.500%, 4/15/18		514,362
385,000	Energy Transfer Partners LP, 6.125%, 2/15/17		394,340
500,000	Enterprise Products Operating, LLC, 1.650%, 5/7/18		498,183
375,000	Magellan Midstream Partners LP, 5.650%, 10/15/16		383,251
400,000	National Oilwell Varco, Inc., 1.350%, 12/1/17		391,283
380,000	Pioneer Natural Resources Co., 6.650%, 3/15/17		392,939
450,000	Schlumberger Holdings Corp., 2.350%, 12/21/18(a)		452,952
260,000	Spectra Energy Capital, LLC, 6.200%, 4/15/18		272,940
250,000	Transcontinental Gas Pipe Line Co., LLC, 6.400%, 4/15/16		250,042
425,000	Western Gas Partners LP, 2.600%, 8/15/18		403,881
			4,598,812
	Food & Staples Retailing — 0.2%
175,000	Reynolds American, Inc., 2.300%, 6/12/18		178,494
	Food, Beverage & Tobacco — 1.5%
415,000	Anheuser-Busch InBev Finance, Inc., 2.650%, 2/1/21		426,449
450,000	Kraft Heinz Foods Co., 2.000%, 7/2/18(a)		454,164
392,000	Reynolds American, Inc., 3.250%, 6/12/20		409,936
			1,290,549
	Health Care Equipment & Services — 2.2%
450,000	Boston Scientific Corp., 2.650%, 10/1/18		457,974
475,000	Humana, Inc., 7.200%, 6/15/18		528,110
375,000	Stryker Corp., 2.625%, 3/15/21		382,398
500,000	Zimmer Holdings, Inc., 2.000%, 4/1/18		501,188
			1,869,670
	Insurance — 7.3%
400,000	Citizens Bank NA, BKNT, 2.300%, 12/3/18		402,260
415,000	International Lease Finance Corp., 8.750%, 3/15/17		437,161
645,000	Jackson National Life Global Funding, 2.300%, 4/16/19(a)		651,058
500,000	Lloyds Bank PLC, 1.750%, 3/16/18		499,412
445,000	MUFG Union Bank NA, 2.625%, 9/26/18		452,937
375,000	PACCAR Financial Corp., MTN, 1.450%, 3/9/18		375,865
500,000	Pricoa Global Funding I, 2.200%, 5/16/19(a)		502,113
350,000	Principal Financial Group, Inc., 1.850%, 11/15/17		350,701
600,000	Regions Financial Corp., 2.000%, 5/15/18		596,190
570,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		591,234
450,000	Reliance Standard Life Global Funding II, 2.150%, 10/15/18(a)		450,729
350,000	Sirius International Group, Ltd., 6.375%, 3/20/17(a)		359,013
440,000	Symetra Financial Corp., 6.125%, 4/1/16(a)		440,000
			6,108,673

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Materials — 0.4%
$   295,000	Glencore Finance Canada, Ltd., 2.700%, 10/25/17(a)	$	289,100
	Media — 0.5%
400,000	Interpublic Group of Cos., Inc. (The), 2.250%, 11/15/17		400,040
	Pharmaceuticals, Biotechnology & Life Sciences — 0.7%
550,000	Actavis Funding SCS, 2.350%, 3/12/18		556,497
	Real Estate — 4.9%
250,000	Essex Portfolio LP, REIT, 5.500%, 3/15/17		259,022
390,000	HCP, Inc., MTN, REIT, 6.300%, 9/15/16		397,934
465,000	iStar, Inc., REIT, 4.000%, 11/1/17		453,375
450,000	Kimco Realty Corp., REIT, MTN, 4.300%, 2/1/18		467,078
500,000	Simon Property Group LP, REIT, 1.500%, 2/1/18(a)		500,929
525,000	Ventas Realty LP/Ventas Capital Corp., REIT, 4.000%, 4/30/19		550,845
330,000	Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17		326,700
600,000	WEA Finance, LLC/Westfield UK & Europe Finance PLC, 1.750%, 9/15/17(a)		597,718
525,000	Welltower Inc., REIT, 4.700%, 9/15/17		545,622
			4,099,223
	Retailing — 0.6%
500,000	Ford Motor Credit Co., LLC, 6.625%, 8/15/17		530,348
	Software & Services — 0.5%
400,000	Visa, Inc., 2.200%, 12/14/20		409,937
	Telecommunication Services — 2.3%
400,000	AT&T, Inc., 2.450%, 6/30/20		405,328
500,000	CC Holdings GS V, LLC/Crown Castle GS III Corp., 2.381%, 12/15/17		504,262
1,000,000	Verizon Communications, Inc., 2.550%, 6/17/19		1,028,694
			1,938,284
	Utilities — 1.0%
600,000	American Electric Power Co., Inc., 1.650%, 12/15/17		596,391
250,000	PSEG Power, LLC, 2.750%, 9/15/16		251,998
			848,389
	Total Corporate Bonds (Cost $47,837,286)		47,747,412

Continued

29

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
FOREIGN GOVERNMENT BOND — 0.5%
	Columbia — 0.5%
$400,000	Colombia Government International Bond, 7.375%, 1/27/17	$	417,600
	Total Foreign Government Bond (Cost $419,210)		417,600
MUNICIPAL BONDS — 1.7%
	Hawaii — 0.5%
445,000	Hawaii State Highway Revenue, Refunding, Taxable, Series C, 1.600%, 1/1/18		452,654
	Maine — 0.3%
250,000	Maine Municipal Bond Bank, Miscellaneous Purpose Revenue, Taxable, 1.708%, 6/1/16		250,555
	Puerto Rico — 0.4%
325,000	Puerto Rico Municipal Finance Agency, Public Improvements, G.O., Series A, Callable 2/8/16 @ 100 (AGM, Government GTD), 5.250%, 8/1/18		326,128
	Washington — 0.5%
390,000	Providence Health & Services Obligated Group Revenue, Taxable, 1.575%, 10/1/17(b)		391,499
	Total Municipal Bonds (Cost $1,410,063)		1,420,836

Principal     Amount		Fair Value
U.S. TREASURY NOTE — 5.1%
$4,146,100	1.750%, 10/31/20	$	4,247,970
	Total U.S. Treasury Note (Cost $4,193,251)		4,247,970
Shares
PREFERRED STOCKS — 0.3%
	Diversified Financials — 0.2%
5,755	Ally Financial, Inc., Series A, 8.500%(b)		146,522
	Real Estate — 0.1%
3,875	Public Storage, REIT, Series Q, 6.500%		97,069
	Total Preferred Stocks (Cost $251,790)		243,591
MONEY MARKET FUND — 2.4%
2,055,590	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)		2,055,590
	Total Money Market Fund (Cost $2,055,590)		2,055,590
Total Investments — 101.4% (Cost $85,713,986)			85,042,219
Net Other Assets (Liabilities) — (1.4)%			(1,214,315	)
NET ASSETS — 100.0%		$	83,827,904

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

(b) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. 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

See accompanying Notes to the Financial Statements.

30

Sterling Capital Intermediate U.S. Government Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 1.2%
	Asset Backed Securities — 1.2%
$   244,488	United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35	$	251,241
107,839	United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35		110,774
	Total Asset Backed Securities (Cost $352,327)		362,015
COLLATERALIZED MORTGAGE OBLIGATIONS — 5.4%
829,787	Fannie Mae, Series 2010-129, Class NA, 3.500%, 3/25/25		861,433
419,928	Freddie Mac, Series 3644, Class BA, 4.500%, 2/15/29		430,592
318,459	Ginnie Mae, Series 1999-17, Class F, 0.741%, 5/16/29(a)		318,998
	Total Collateralized Mortgage Obligations (Cost $1,592,068)		1,611,023
COMMERCIAL MORTGAGE-BACKED SECURITIES — 0.5%
140,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K049, Class A2, 3.010%, 7/25/25		147,360
	Total Commercial Mortgage- Backed Securities (Cost $143,866)		147,360
CORPORATE BONDS — 4.7%
	Automobiles & Components — 0.6%
180,000	American Honda Finance Corp., 1.700%, 2/22/19		181,495
	Banks — 2.1%
200,000	Lloyds Bank PLC, 2.050%, 1/22/19		200,041
200,000	State Street Corp., 2.550%, 8/18/20		205,981
200,000	Wells Fargo & Co., GMTN, 2.600%, 7/22/20		204,656
	Diversified Financials — 2.0%
500,000	Morgan Stanley, 2.125%, 4/25/18		503,467
100,000	National Rural Utilities Cooperative Finance Corp., MTN, 0.950%, 4/24/17		99,985
	Total Corporate Bonds (Cost $1,369,738)		1,395,625
MORTGAGE-BACKED SECURITIES — 7.9%
	Fannie Mae — 7.4%
1,815,116	3.583%, 9/1/20, Pool #FN0000		1,953,984
136,776	5.500%, 1/1/33, Pool #678321		153,282
98,566	6.000%, 7/1/37, Pool #938378		106,095
			2,213,361
	Ginnie Mae — 0.5%
141,367	5.000%, 11/20/38, Pool #4283		145,854
	Total Mortgage-Backed Securities (Cost $2,185,352)		2,359,215
MUNICIPAL BONDS — 0.7%
	New York — 0.5%
150,000	New York, NY, Public Improvements, Taxable, G.O., Series A-1,3.823%, 10/1/16		152,395

Principal     Amount		Fair Value
MUNICIPAL BONDS — (continued)
	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	$	68,593
	Total Municipal Bonds (Cost $220,737)		220,988
U.S. GOVERNMENT AGENCIES — 27.3%
	Fannie Mae — 12.1%
1,000,000	2.750%, 4/3/28, STEP		1,000,012
200,000	2.375%, 4/25/28, STEP		199,984
200,000	2.350%, 4/28/28, STEP		200,027
1,000,000	6.250%, 5/15/29		1,426,219
500,000	7.125%, 1/15/30		765,435
			3,591,677
	Federal Farm Credit Bank — 11.6%
3,000,000	4.670%, 2/27/18		3,219,231
250,000	3.480%, 9/11/30		251,957
			3,471,188
	Freddie Mac — 3.6%
500,000	4.875%, 6/13/18		543,973
500,000	2.375%, 1/13/22		524,188
			1,068,161
	Total U.S. Government Agencies (Cost $7,692,251)		8,131,026
U.S. TREASURY BILLS(b) — 1.7%
500,000	0.000%, 5/19/16		499,913
	Total U.S. Treasury Bills (Cost $499,816)		499,913
U.S. TREASURY NOTES — 48.8%
1,073,330	0.125%, 4/15/16(c)		1,073,561
750,000	0.250%, 4/15/16		750,009
250,000	0.375%, 4/30/16		250,025
2,000,000	0.500%, 7/31/16		2,000,742
500,000	3.000%, 9/30/16		506,347
1,000,000	3.000%, 2/28/17		1,021,367
250,000	1.875%, 9/30/17		254,317
1,011,080	0.125%, 4/15/19(c)		1,032,895
500,000	1.250%, 4/30/19		505,371
1,000,000	2.125%, 8/31/20		1,041,016
1,000,000	3.125%, 5/15/21		1,091,992
500,000	1.625%, 8/15/22		503,848
750,000	2.000%, 2/15/23		772,734
1,135,000	2.750%, 2/15/24		1,229,037
500,130	0.250%, 1/15/25(c)		504,343
500,000	2.125%, 5/15/25		515,449
1,000,000	2.000%, 8/15/25		1,019,219
500,000	1.625%, 2/15/26		492,735
	Total U.S. Treasury Notes (Cost $14,413,664)		14,565,007

Continued

31

Sterling Capital Intermediate U.S. Government Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 1.4%
408,598	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(d)	$	408,598
	Total Money Market Fund (Cost $408,598)		408,598
Total Investments — 99.6% (Cost $28,878,417)			29,700,770
Net Other Assets (Liabilities) — 0.4%			107,678
NET ASSETS — 100.0%		$	29,808,448

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. The maturity date reflected is the final maturity date.

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

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

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

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN - Medium Term Note

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

32

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 13.6%
$3,000,000	AmeriCredit Automobile Receivables Trust, Series 2014-4, Class B, 1.870%, 12/9/19	$	3,004,831
4,120,000	AmeriCredit Automobile Receivables Trust, Series 2015-1, Class B, 1.880%, 3/9/20		4,117,868
932,347	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.773%, 11/25/35(a)		901,099
3,330,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-1A, Class A, 2.460%, 7/20/20(b)		3,330,060
9,404,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(b)		9,378,739
2,320,000	Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 1.833%, 10/25/34(a)		2,315,860
4,715,000	Capital One Multi-Asset Execution Trust, Series 2007-A5, Class A5, 0.476%, 7/15/20(a)		4,696,261
1,018,000	CarMax Auto Owner Trust, Series 2013-2, Class A4, 0.840%, 11/15/18		1,014,252
2,478,000	Chase Issuance Trust, Series 2014-A2, Class A2, 2.770%, 3/15/23		2,586,707
3,210,000	Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.120%, 12/15/21		3,277,353
6,360,000	Encore Credit Receivables Trust, Series 2005-4, Class M2, 0.873%, 1/25/36(a)		5,848,651
6,034,000	Ford Credit Auto Owner Trust, Series 2014-2, Class A, 2.310%, 4/15/26(b)		6,088,537
4,000,000	Ford Credit Auto Owner Trust, Series 2015-1, Class A, 2.120%, 7/15/26(b)		4,003,786
1,600,000	GSAMP Trust 2006-SEA1, Series 2006-SEA1, Class M1, 0.933%, 5/25/36(a)(b)		1,488,604
7,535,000	Hertz Vehicle Financing, LLC 2016-2, Series 2016-2A, Class A, 2.950%, 3/25/22(b)		7,543,924
3,000,000	JP Morgan Mortgage Acquisition Corp., Series 2005-OPT1, Class M2, 0.903%, 6/25/35(a)		2,784,992
1,457,310	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.633%, 1/25/36(a)		1,402,266
1,258,806	New Century Home Equity Loan Trust, Series 2003-4, Class M1, 1.558%, 10/25/33(a)		1,202,247
3,550,000	Park Place Securities, Inc., Series 2005-WHQ2, Class M2, 1.123%, 5/25/35(a)		3,334,085
255,901	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WHQ1, Class M2, 1.183%, 3/25/35(a)		254,946
2,680,000	RAMP Trust, Series 2005-RZ4, Class M2, 0.933%, 11/25/35(a)		2,291,831
4,500,000	Santander Drive Auto Receivables Trust, Series 2014-5, Class B, 1.760%, 9/16/19		4,507,212
2,418,000	Santander Drive Auto Receivables Trust, Series 2015-3, Class B, 2.070%, 4/15/20		2,415,822
7,910,000	Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.260%, 6/15/20		7,961,398
3,267,818	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.753%, 10/25/35(a)		3,115,476
3,774,378	United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35		3,877,104
	Total Asset Backed Securities (Cost $92,594,945)		92,743,911

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — 7.2%
$   563,075	Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 2.973%, 4/25/35(a)	$	543,961
676,268	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		708,975
2,848,862	Banc of America Funding Trust, Series 2005-B, Class 3A1, 0.662%, 4/20/35(a)		2,668,879
999,206	Banc of America Funding Trust, Series 2006-2, Class 3A1, 6.000%, 3/25/36		997,336
172,880	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		174,219
144,582	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		149,188
781,470	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		783,175
210,469	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		217,439
67,715	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		67,584
596,611	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		625,245
8,060	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		8,245
1,070,164	Fannie Mae, Series 2013-133, Class AV, 4.000%, 12/25/26		1,182,492
2,072,849	Fannie Mae, Series 2014-39, Class VP, 3.000%, 8/1/27		2,189,738
2,864,061	Fannie Mae, Series 2011-38, Class D, 4.500%, 5/25/41		3,213,783
4,574,213	FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/1/44(a)(b)		4,645,580
1,546,128	Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23		1,685,007
2,931,627	Freddie Mac, Series 4387, Class VM, 4.000%, 11/1/25		3,226,418
2,018,638	Freddie Mac, Series 4287, Class V, 4.500%, 10/1/26		2,259,216
371,001	Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27		404,493
2,936,092	Freddie Mac, Series 4331, Class V, 4.000%, 11/1/28		3,248,588
1,690,295	Freddie Mac, Series 3632, Class PK, 5.000%, 2/15/40		1,872,299
3,477,547	Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40		3,703,346
2,059,895	Freddie Mac, Series 4328, Class KD, 3.000%, 8/15/43		2,167,536
863,794	Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38		937,160
786,949	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		799,066
776,845	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		750,966
155,615	MASTR Asset Securitization Trust, Series 2003-4, Class 5A1, 5.500%, 5/25/33		158,652
241,506	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		241,391

Continued

33

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$   604,623	PHHMC Trust, Series 2007-6, Class A1, 5.397%, 12/18/37(a)	$	598,428
65,240	RAAC Trust, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(a)		66,194
966,021	RAAC Trust, Series 2004-SP1, Class AI3, STEP, 6.118%, 3/25/34		982,965
876,761	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		906,432
459,405	Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 2.715%, 12/25/34(a)		441,470
1,214,997	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		1,220,843
992,284	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 2.547%, 6/25/34(a)		982,498
338,602	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35		340,995
187,755	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35		188,107
107,696	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		108,912
902,415	Wells Fargo Mortgage Backed Securities Trust, Series 2004-BB, Class A2, 2.847%, 1/25/35(a)		898,222
353,768	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		356,890
1,750,665	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 6A3, 2.761%, 10/25/35(a)		1,748,000
195,609	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		201,864
	Total Collateralized Mortgage Obligations (Cost $47,750,497)		48,671,797
COMMERCIAL MORTGAGE-BACKED SECURITIES — 16.9%
1,693,400	Banc of America Commercial Mortgage Trust, Series 2006-3, Class A4, 5.889%, 7/10/44(a)		1,693,527
1,710,000	Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/10/46		1,715,841
2,954,515	Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4, 5.414%, 9/10/47		2,973,113
2,971,658	Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51		3,072,328
608,847	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-1, Class AJ, 5.339%, 11/10/42(a)		608,169
237,072	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		236,027
4,882,785	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		4,852,536
2,500,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/11/42(a)		2,628,244
2,085,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		2,161,682

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$2,183,594	CD Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/49	$	2,226,181
1,575,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.705%, 12/10/49(a)		1,623,621
966,000	COMM Mortgage Trust, Series 2012-CR4, Class A3, 2.853%, 10/15/45		996,984
3,545,000	COMM Mortgage Trust, Series 2013-CR12, Class A4, 4.046%, 10/1/46		3,900,710
4,050,000	COMM Mortgage Trust, Series 2006-C8, Class AM, 5.347%, 12/10/46		4,109,839
892,000	COMM Mortgage Trust, Series 2014-CR16, Class A4, 4.051%, 4/10/47		977,058
1,208,000	COMM Mortgage Trust, Series 2014-LC17, Class A5, 3.917%, 10/10/47		1,316,772
1,344,000	COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/1/47		1,430,975
2,236,690	COMM Mortgage Trust, Series 2007-C9, Class A4, 5.813%, 12/10/49(a)		2,322,824
1,500,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.095%, 12/10/49(a)		1,558,871
1,059,660	Credit Suisse Commercial Mortgage Trust, Series 2007-C4, Class A4, 5.941%, 9/1/39(a)		1,097,923
2,390,336	Credit Suisse Commercial Mortgage Trust Series 2007-C3, Series 2007-C3, Class A4, 5.699%, 6/15/39(a)		2,444,279
834,000	Credit Suisse Commercial Mortgage Trust Series 2008-C1, Series 2008-C1, Class A3, 6.067%, 2/15/41(a)		870,188
2,524,000	GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47		2,731,637
607,093	JP Morgan Chase Commercial Mortgage Securities Trust 2006-LDP9, Series 2006-LDP9, Class A3, 5.336%, 5/15/47		616,305
1,397,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47		1,521,301
4,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/1/43(b)		4,306,290
1,967,695	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		1,973,992
2,350,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		2,363,014
4,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b)		4,288,305
1,926,817	LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 2/15/40		1,960,138
1,730,000	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.153%, 9/15/45(a)		1,784,229
3,247,911	Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4, 5.690%, 2/12/51		3,400,626
1,680,000	Merrill Lynch Mortgage Trust, Series 2008-C1, Class AM, 6.267%, 2/12/51(a)		1,786,914
1,495,418	ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 5.864%, 8/12/49(a)		1,549,690
2,972,066	ML-CFC Commercial Mortgage Trust, Series 2007-7, Class A4, 5.737%, 6/12/50(a)		3,069,172

Continued

34

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$   660,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47	$	716,118
1,950,000	Morgan Stanley Capital I Trust, Series 2007-T27, Class AM, 5.645%, 6/11/42(a)		2,021,190
3,946,771	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.268%, 1/11/43(a)		4,185,244
2,355,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class AM, 6.268%, 1/11/43(a)		2,500,433
4,000,000	Morgan Stanley Capital I Trust, Series 2011-C1, Class B, 5.440%, 9/1/47(a)(b)		4,395,661
640,000	Morgan Stanley Capital I Trust, Series 2011-C1, Class C, 5.440%, 9/1/47(a)(b)		690,747
4,535,000	Morgan Stanley Capital I Trust, Series 2007-IQ14, Class A5, 5.696%, 4/15/49(a)		4,648,661
1,050,000	Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class B, 5.306%, 1/15/41(a)		1,048,153
467,478	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.246%, 12/15/43		474,313
1,147,807	Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3, 5.765%, 7/15/45(a)		1,146,033
2,060,674	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/48		2,077,775
2,000,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A2, 4.393%, 11/15/43(b)		2,175,534
2,306,000	Wells Fargo Commercial Mortgage Trust, Series 2015-P2, Class A4, 3.809%, 12/15/48		2,481,215
825,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class A4, 4.869%, 2/15/44(a)(b)		921,226
2,000,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b)		2,151,802
1,000,000	WF-RBS Commercial Mortgage Trust, Series 2011-C3, Class A4, 4.375%, 3/15/44(b)		1,096,496
1,250,000	WF-RBS Commercial Mortgage Trust, Series 2012-C8, Class AS, 3.660%, 8/15/45		1,314,759
3,716,000	WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57		3,987,743
1,008,000	WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57		1,094,297
	Total Commercial Mortgage-Backed Securities (Cost $118,897,413)		115,296,705
CORPORATE BONDS — 43.6%
	Automobiles & Components — 1.7%
1,875,000	Daimler Finance North America, LLC, 1.600%, 8/3/17(b)		1,876,373
1,306,000	Ford Motor Co., 7.450%, 7/16/31		1,701,510
2,915,000	Ford Motor Credit Co., LLC, 1.260%, 3/27/17(a)		2,901,180
3,100,000	General Motors Financial Co., Inc., 3.200%, 7/13/20		3,093,068
1,633,000	Lear Corp., 5.375%, 3/15/24		1,698,320
			11,270,451
	Banks — 8.1%
1,800,000	Athene Global Funding, 2.875%, 10/23/18(b)		1,771,805

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Banks — (continued)
$4,035,000	Bank of America Corp., MTN, 6.875%, 4/25/18	$	4,430,515
1,282,000	Bank of America Corp., MTN, 5.875%, 2/7/42		1,553,653
1,874,000	Bank of America Corp., Series K, 8.000%, 7/29/49(a)		1,834,177
1,993,000	Bank of Nova Scotia (The), 2.450%, 3/22/21		2,007,417
1,950,000	CIT Group, Inc., 4.250%, 8/15/17		1,984,339
2,500,000	Citigroup, Inc., 2.318%, 5/15/18(a)		2,535,660
2,031,000	Citigroup, Inc., 4.400%, 6/10/25		2,071,035
1,670,000	Cooperatieve Centrale Raiffeisen- Boerenleenbank BA, 3.950%, 11/9/22		1,710,695
1,815,000	Credit Suisse, MTN, 3.625%, 9/9/24		1,840,274
1,412,000	GE Capital International Funding Co., 4.418%, 11/15/35(b)		1,533,987
2,785,000	Huntington National Bank (The), 2.000%, 6/30/18		2,788,607
5,111,000	JPMorgan Chase & Co., 3.875%, 9/10/24		5,241,591
1,597,000	JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(a)		1,597,000
2,000,000	KeyBank NA, BKNT, 2.500%, 12/15/19		2,025,546
1,528,000	KeyCorp, MTN, 2.900%, 9/15/20		1,553,042
2,320,000	Lloyds Banking Group PLC, 4.650%, 3/24/26		2,299,278
1,652,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(b)		1,879,741
838,000	Mitsubishi UFJ Financial Group, Inc., 2.950%, 3/1/21		853,789
2,860,000	Morgan Stanley, 4.300%, 1/27/45		2,877,849
3,735,000	Morgan Stanley, GMTN, 6.625%, 4/1/18		4,080,618
500,000	PNC Bank NA, BKNT, 4.875%, 9/21/17		523,088
1,007,000	PNC Bank NA, BKNT, 6.000%, 12/7/17		1,069,357
1,505,000	Prudential Financial, Inc., 8.875%, 6/15/38(a)		1,651,737
1,670,000	Royal Bank of Canada, GMTN, 2.200%, 7/27/18		1,695,401
1,595,000	Wachovia Corp., 5.500%, 8/1/35		1,778,181
			55,188,382
	Capital Goods — 1.1%
3,077,000	General Electric Co., Series D, 5.000%, 12/29/49(a)		3,169,310
1,478,000	LSB Industries, Inc., 7.750%, 8/1/19		1,356,065
1,369,000	Masco Corp., 4.375%, 4/1/26		1,393,793
1,245,000	SBA Tower Trust, 2.898%, 10/15/19(b)		1,250,891
			7,170,059
	Commercial & Professional Services — 1.0%
1,400,000	Republic Services, Inc., 3.550%, 6/1/22		1,477,920
457,000	Republic Services, Inc., 6.200%, 3/1/40		558,895
1,701,000	United Rentals North America, Inc., 7.375%, 5/15/20		1,779,671
1,560,000	Verisk Analytics, Inc., 5.800%, 5/1/21		1,747,634
1,335,000	Waste Management, Inc., 4.100%, 3/1/45		1,340,128
			6,904,248
	Consumer Durables & Apparel — 0.2%
1,309,000	Hanesbrands, Inc., 6.375%, 12/15/20		1,354,815
	Consumer Services — 0.2%
1,212,000	Carnival Corp., 3.950%, 10/15/20		1,288,021
	Diversified Financials — 5.0%
1,928,000	AerCap Ireland Capital, Ltd./AerCap Global Aviation Trust, 4.250%, 7/1/20		1,944,870
2,230,000	Ally Financial, Inc., 3.600%, 5/21/18		2,210,487
1,486,000	Apollo Management Holdings LP, 4.000%, 5/30/24(b)		1,510,928

Continued

35

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Diversified Financials — (continued)
$1,545,000	Ares Finance Co., LLC, 4.000%, 10/8/24(b)	$	1,487,030
1,500,000	Berkshire Hathaway, Inc., 2.750%, 3/15/23		1,529,769
2,111,000	Brixmor Operating Partnership LP, REIT, 3.850%, 2/1/25		1,934,290
1,950,000	Capital One Financial Corp., 3.200%, 2/5/25		1,930,453
1,650,000	First Data Corp., 6.750%, 11/1/20(b)		1,734,975
974,000	General Electric Capital Corp., GMTN, 6.875%, 1/10/39		1,410,349
2,166,000	Goldman Sachs Group, Inc. (The), 1.779%, 4/23/20(a)		2,152,571
4,493,000	Goldman Sachs Group, Inc. (The), 4.250%, 10/21/25		4,568,424
1,552,000	Goldman Sachs Group, Inc. (The), 6.250%, 2/1/41		1,929,659
1,500,000	Morgan Stanley, 5.000%, 11/24/25		1,623,327
1,670,000	National Rural Utilities Cooperative Finance Corp., 4.750%, 4/30/43(a)		1,608,461
2,200,000	Nationwide Building Society, 3.900%, 7/21/25(b)		2,321,942
1,305,000	PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20		1,344,150
2,400,000	Wells Fargo & Co., GMTN, 4.300%, 7/22/27		2,546,506
			33,788,191
	Energy — 2.4%
1,200,000	Buckeye Partners LP, 4.150%, 7/1/23		1,081,828
1,475,000	CNOOC Nexen Finance, 4.250%, 4/30/24		1,525,184
1,697,000	Energy Transfer Partners LP, 4.050%, 3/15/25		1,493,501
1,330,000	EnLink Midstream Partners LP, 5.050%, 4/1/45		894,779
1,180,000	Enterprise Products Operating, LLC, 5.950%, 2/1/41		1,210,933
1,123,000	Halliburton Co., 3.375%, 11/15/22		1,142,842
1,165,000	Magellan Midstream Partners LP, 6.550%, 7/15/19		1,300,079
1,395,000	Magellan Midstream Partners LP, 5.000%, 3/1/26		1,508,595
856,000	NuStar Logistics LP, 8.150%, 4/15/18		856,000
1,177,000	Phillips 66, 5.875%, 5/1/42		1,278,928
1,629,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21		1,604,565
1,528,000	Shell International Finance BV, 4.550%, 8/12/43		1,586,327
910,000	Spectra Energy Capital, LLC, 8.000%, 10/1/19		1,000,482
			16,484,043
	Food & Staples Retailing — 0.7%
1,872,000	CVS Health Corp., 6.125%, 9/15/39		2,367,281
2,013,000	Reynolds American, Inc., 5.850%, 8/15/45		2,458,197
			4,825,478
	Food, Beverage & Tobacco — 0.9%
2,529,000	Altria Group, Inc., 5.375%, 1/31/44		3,089,960
2,500,000	Anheuser-Busch InBev Finance, Inc., 4.900%, 2/1/46		2,793,905
			5,883,865
	Health Care Equipment & Services — 1.3%
1,754,000	Boston Scientific Corp., 3.375%, 5/15/22		1,790,506
1,133,000	Humana, Inc., 4.950%, 10/1/44		1,159,597
2,458,000	Medtronic, Inc., 4.375%, 3/15/35		2,661,097
2,100,000	Stryker Corp., 3.500%, 3/15/26		2,176,303

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Health Care Equipment & Services — (continued)
$1,300,000	UnitedHealth Group, Inc., 2.700%, 7/15/20	$	1,350,432
			9,137,935
	Insurance — 6.5%
1,570,000	ACE INA Holdings, Inc., 4.350%, 11/3/45		1,711,003
1,857,000	Allied World Assurance Co. Holdings, Ltd., 4.350%, 10/29/25		1,860,736
1,624,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		1,641,622
2,892,000	CBRE Services, Inc., 5.250%, 3/15/25		2,981,808
1,315,000	Dai-ichi Life Insurance Co., Ltd. (The), 5.100%, 10/29/49(a)(b)		1,420,200
1,570,000	Horace Mann Educators Corp., 4.500%, 12/1/25		1,615,684
1,680,000	KKR Group Finance Co. III, LLC, 5.125%, 6/1/44(b)		1,645,849
1,275,000	Liberty Mutual Group, Inc., 7.800%, 3/15/37(b)		1,389,750
1,081,000	Loews Corp., 3.750%, 4/1/26		1,102,268
1,405,000	Manulife Financial Corp., 5.375%, 3/4/46		1,461,540
870,000	Massachusetts Mutual Life Insurance Co., 8.875%, 6/1/39(b)		1,261,218
1,750,000	Meiji Yasuda Life Insurance Co., 5.200%, 10/20/45(a)(b)		1,886,850
1,000,000	MetLife, Inc., 7.717%, 2/15/19		1,160,619
1,068,000	MetLife, Inc., 4.600%, 5/13/46		1,094,868
987,000	Nationwide Mutual Insurance Co., 9.375%, 8/15/39(b)		1,455,110
1,655,000	Nippon Life Insurance Co., 5.100%, 10/16/44(a)(b)		1,766,713
1,000,000	Ohio National Life Insurance Co., 6.875%, 6/15/42(b)		1,137,137
1,650,000	Old Republic International Corp., 4.875%, 10/1/24		1,716,338
1,447,000	Pacific LifeCorp, 5.125%, 1/30/43(b)		1,526,814
1,065,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		1,104,673
1,450,000	Royal Bank of Scotland Group PLC, 4.700%, 7/3/18		1,492,310
1,710,000	Sirius International Group, Ltd., 6.375%, 3/20/17(b)		1,754,036
1,735,000	Symetra Financial Corp., 4.250%, 7/15/24		1,766,204
3,140,000	TIAA Asset Management Finance Co., LLC, 2.950%, 11/1/19(b)		3,186,679
1,062,000	Transatlantic Holdings, Inc., 8.000%, 11/30/39		1,417,890
805,000	Validus Holdings, Ltd., 8.875%, 1/26/40		1,067,491
1,304,000	Ventas Realty LP, REIT, 5.700%, 9/30/43		1,437,931
1,415,000	XLIT, Ltd., 4.450%, 3/31/25		1,401,139
			44,464,480
	Materials — 1.1%
2,635,000	Glencore Funding, LLC, 1.680%, 4/16/18(a)(b)		2,371,500
854,000	International Paper Co., 7.300%, 11/15/39		1,016,546
1,248,000	Louisiana-Pacific Corp., 7.500%, 6/1/20		1,296,360
1,214,000	Mosaic Co. (The), 5.450%, 11/15/33		1,248,156
1,820,000	West Fraser Timber Co., Ltd., 4.350%, 10/15/24(b)		1,748,885
			7,681,447
	Media — 1.3%
1,393,000	21st Century Fox America, Inc., 5.400%, 10/1/43		1,535,266
2,365,000	Comcast Corp., 4.200%, 8/15/34		2,499,935

Continued

36

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Media — (continued)
$1,300,000	ERAC USA Finance, LLC, 5.625%, 3/15/42(b)	$	1,463,158
1,830,000	Interpublic Group of Cos., Inc. (The), 4.200%, 4/15/24		1,886,150
1,525,000	Omnicom Group, Inc., 3.650%, 11/1/24		1,571,398
			8,955,907
	Pharmaceuticals, Biotechnology & Life Sciences — 1.1%
2,925,000	Actavis Funding SCS, 3.800%, 3/15/25		3,044,173
1,600,000	Celgene Corp., 3.875%, 8/15/25		1,681,498
1,195,000	Johnson & Johnson, 3.700%, 3/1/46		1,254,660
1,730,000	Quintiles Transnational Corp., 4.875%, 5/15/23(b)		1,774,807
			7,755,138
	Real Estate — 5.3%
2,175,000	Alexandria Real Estate Equities, Inc., REIT, 2.750%, 1/15/20		2,171,013
1,137,000	American Tower Corp., REIT, 5.050%, 9/1/20		1,234,842
1,600,000	Crown Castle International Corp., REIT, 4.450%, 2/15/26		1,663,597
1,849,000	CubeSmart LP, REIT, 4.800%, 7/15/22		2,022,880
1,275,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(b)		1,466,881
2,136,000	HCP, Inc., REIT, 4.000%, 6/1/25		2,052,679
1,976,000	Healthcare Trust of America Holdings LP, REIT, 3.700%, 4/15/23		1,944,850
1,622,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		1,582,491
1,934,000	HSBC Finance Corp., 6.676%, 1/15/21		2,218,325
1,560,000	iStar, Inc., REIT, 4.000%, 11/1/17		1,521,000
1,711,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		1,757,866
1,175,000	Kilroy Realty LP, REIT, 4.375%, 10/1/25		1,232,517
1,100,000	Kimco Realty Corp., REIT, 3.400%, 11/1/22		1,115,045
1,642,000	National Retail Properties, Inc., REIT, 4.000%, 11/15/25		1,686,408
2,712,000	Prologis LP, 3.750%, 11/1/25		2,829,815
2,290,000	Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23		2,352,295
1,473,000	Simon Property Group LP, REIT, 10.350%, 4/1/19		1,816,730
1,855,000	Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17		1,836,450
1,350,000	WEA Finance, LLC / Westfield UK & Europe Finance PLC, 4.750%, 9/17/44(b)		1,369,914
2,100,000	Welltower, Inc., REIT, 4.950%, 1/15/21		2,282,461
			36,158,059
	Retailing — 0.7%
1,291,000	Home Depot, Inc. (The), 5.875%, 12/16/36		1,679,880
1,015,000	Lowe’s Cos., Inc., 5.800%, 4/15/40		1,295,185
2,027,000	O’Reilly Automotive, Inc., 3.550%, 3/15/26		2,085,434
			5,060,499
	Software & Services — 0.5%
1,652,000	Electronic Arts, Inc., 4.800%, 3/1/26		1,698,477
1,673,000	Microsoft Corp., 4.750%, 11/3/55		1,859,161
			3,557,638
	Technology Hardware & Equipment — 0.4%
2,252,000	Apple, Inc., 3.250%, 2/23/26		2,351,237

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Telecommunication Services — 2.2%
$2,375,000	AT&T, Inc., 3.000%, 6/30/22	$	2,409,533
856,000	British Telecommunications PLC, 9.625%, 12/15/30		1,337,992
2,490,000	CCO Safari II, LLC, 4.464%, 7/23/22(b)		2,602,717
1,185,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(b)		1,307,453
3,391,000	Verizon Communications, Inc., 6.550%, 9/15/43		4,466,717
2,807,000	Verizon Communications, Inc., 5.012%, 8/21/54		2,816,064
			14,940,476
	Transportation — 0.8%
1,381,000	Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41		1,530,743
1,655,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(b)		1,767,169
2,100,000	Ryder System, Inc., MTN, 2.500%, 5/11/20		2,073,225
			5,371,137
	Utilities — 1.1%
1,675,000	CMS Energy Corp., 4.700%, 3/31/43		1,735,771
1,564,000	Georgia Power Co., 4.300%, 3/15/42		1,592,932
1,650,000	Indiana Michigan Power Co., Series K, 4.550%, 3/15/46		1,697,799
1,050,000	Pacific Gas & Electric Co., 2.950%, 3/1/26		1,060,675
1,354,000	Progress Energy, Inc., 3.150%, 4/1/22		1,372,203
			7,459,380
	Total Corporate Bonds (Cost $291,710,746)		297,050,886
FOREIGN GOVERNMENT BONDS — 0.6%
	Mexico — 0.6%
1,094,000	United Mexican States, 5.550%, 1/21/45		1,211,605
2,628,000	United Mexican States, MTN, 4.750%, 3/8/44		2,621,430
			3,833,035
	Total Foreign Government Bonds (Cost $3,408,914)		3,833,035
MORTGAGE-BACKED SECURITIES — 9.1%
	Fannie Mae — 6.1%
20,731	5.000%, 8/1/20, Pool #832058		21,406
129,414	6.000%, 7/1/22, Pool #944967		135,315
116,293	5.000%, 9/1/25, Pool #255892		128,536
1,444,470	4.000%, 2/1/32, Pool #MA0977		1,556,658
3,303,311	4.000%, 6/1/34, Pool #MA1922		3,561,510
3,087,963	3.500%, 11/1/34, Pool #MA2077		3,262,273
110,339	6.500%, 1/1/35, Pool #809198		126,646
3,139,952	4.000%, 3/1/35, Pool #MA2211		3,384,896
58,396	7.000%, 6/1/35, Pool #255820		67,362
178,095	6.500%, 3/1/36, Pool #866062		213,320
116,658	6.500%, 7/1/36, Pool #885493		133,422
1,353,381	5.500%, 8/1/37, Pool #995082		1,532,276
791,045	4.500%, 10/1/39, Pool #AC2645		862,875
664,783	5.000%, 6/1/40, Pool #AD4927		739,065
468,898	5.000%, 6/1/40, Pool #AD8718		519,827
1,736,379	4.500%, 12/1/40, Pool #AH1100		1,891,665
1,281,994	4.500%, 5/1/41, Pool #AI1023		1,394,391
771,499	4.500%, 11/1/41, Pool #AJ4994		842,203
1,237,692	4.500%, 12/1/41, Pool #AJ7696		1,348,028
2,473,690	3.500%, 6/1/42, Pool #AB5373		2,600,157

Continued

37

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
	Fannie Mae — (continued)
$3,890,119	3.500%, 5/1/43, Pool #AB9368	$	4,091,977
2,060,862	4.500%, 11/1/44, Pool #MA2100		2,241,875
3,685,624	4.500%, 1/1/45, Pool #MA2158		4,025,144
6,355,238	4.000%, 3/1/45, Pool #MA2217		6,791,889
			41,472,716
	Freddie Mac — 2.7%
136,478	5.500%, 10/1/21, Pool #G12425		147,133
127,496	5.000%, 12/1/21, Pool #J04025		132,927
183,506	5.000%, 7/1/25, Pool #C90908		201,427
491,461	2.500%, 1/1/28, Pool #J22069		506,414
2,040,221	3.500%, 7/1/30, Pool #G18562		2,157,412
346,040	4.000%, 11/1/31, Pool #C91410		373,248
1,487,361	3.500%, 4/1/32, Pool #C91437		1,571,834
2,311,946	3.500%, 7/1/32, Pool #C91467		2,443,264
165,126	5.000%, 3/1/36, Pool #G08115		182,932
20,301	6.500%, 5/1/36, Pool #A48509		23,111
47,829	5.000%, 7/1/36, Pool #G02291		52,985
504,306	6.500%, 9/1/36, Pool #G08152		591,154
210,719	5.000%, 2/1/37, Pool #A57714		232,072
207,473	4.500%, 10/1/39, Pool #A89346		225,877
713,888	5.000%, 6/1/40, Pool #C03479		788,251
1,649,923	5.000%, 7/1/40, Pool #A93070		1,818,968
2,129,309	4.000%, 12/1/42, Pool #G07266		2,276,838
1,642,351	3.500%, 5/1/43, Pool #Q18305		1,721,122
1,543,411	4.000%, 5/1/44, Pool #V81186		1,649,261
680,968	4.000%, 7/1/44, Pool #G08595		727,129
656,648	4.000%, 9/1/44, Pool #Q28299		701,950
			18,525,309
	Ginnie Mae — 0.3%
380,556	5.000%, 2/15/40, Pool #737037		421,312
1,578,636	4.500%, 9/20/40, Pool #4801		1,718,210
			2,139,522
	Total Mortgage-Backed Securities (Cost $60,800,055)		62,137,547
MUNICIPAL BONDS — 4.1%
	California — 1.5%
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		4,133,936
2,100,000	Sacramento County Sanitation Districts Financing Authority, Refunding Revenue, Taxable, Series B, 2.810%, 12/1/21		2,210,145
1,285,000	State of California, Build America Bonds, School Improvements G.O., 7.625%, 3/1/40		1,964,971
1,850,000	University of California, Univ. & College Improvements, Taxable Revenue, Series AN, 3.338%, 5/15/22		1,978,834
			10,287,886
	Connecticut — 0.5%
3,000,000	State of Connecticut Special Tax Revenue, Build America Bonds, Transition Infrastructure, Series B, 4.126%, 11/1/20		3,264,180
	District of Columbia — 0.3%
1,835,000	George Washington University (The), Series 2012, 3.485%, 9/15/22		1,922,056

Principal     Amount		Fair Value
MUNICIPAL BONDS — (continued)
	New Jersey — 0.2%
$  1,305,000	New Jersey Economic Development Authority, School Facilities Construction, Refunding Revenue, Series 00, 1.648%, 3/1/18	$	1,305,548
	New York — 1.3%
2,000,000	New York State Dormitory Authority, Public Improvements, Taxable Revenue, Series D, 2.550%, 3/15/21		2,093,460
750,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.445%, 6/15/20		768,840
900,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.745%, 6/15/22		918,630
2,900,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.774%, 3/1/20		3,237,357
1,640,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.874%, 3/1/21		1,862,204
			8,880,491
	Pennsylvania — 0.3%
2,260,000	Philadelphia Authority for Industrial Development, Refunding Revenue, Taxable, 3.664%, 4/15/22		2,345,857
	Total Municipal Bonds (Cost $25,988,694)		28,006,018
U.S. TREASURY BONDS — 1.3%
3,040,000	3.125%, 2/15/43		3,368,463
5,634,104	0.750%, 2/15/45(c)		5,450,922
	Total U.S. Treasury Bonds (Cost $8,231,537)		8,819,385
U.S. TREASURY NOTES — 2.0%
798,000	2.125%, 5/15/25		822,657
12,587,904	0.375%, 7/15/25(c)		12,862,773
	Total U.S. Treasury Notes (Cost $13,335,029)		13,685,430
Shares
PREFERRED STOCKS — 0.6%
	Banks — 0.5%
61,601	Citigroup Capital XIII, 6.988%		1,619,490
65,135	US Bancorp, Series F, 6.500%		1,916,272
			3,535,762
	Diversified Financials — 0.1%
24,978	Ally Financial, Inc., Series A, 8.500%		635,940
	Total Preferred Stocks (Cost $3,976,031)		4,171,702

Continued

38

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 0.8%
5,043,143	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(d)	$	5,043,143
	Total Money Market Fund (Cost $5,043,143)		5,043,143
Total Investments — 99.8% (Cost $671,737,004)			679,459,559
Net Other Assets (Liabilities) — 0.2%			1,487,589
NET ASSETS — 100.0%		$	680,947,148

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. The maturity date reflected is the final maturity date.

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

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

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

BKNT — Bank Note

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN — Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

39

Sterling Capital Corporate Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — 97.1%
	Automobiles & Components — 2.8%
$   300,000	Daimler Finance North America, LLC, 2.625%, 9/15/16(a)	$	301,872
275,000	Daimler Finance North America, LLC, 3.250%, 8/1/24(a)		278,961
490,000	General Motors Financial Co., Inc., 3.200%, 7/13/20		488,904
500,000	Hyundai Capital America, 2.000%, 3/19/18(a)		503,533
255,000	Lear Corp., 5.375%, 3/15/24		265,200
			1,838,470
	Banks — 16.3%
270,000	AgriBank FCB, Series AI, 9.125%, 7/15/19		327,077
400,000	Associated Banc-Corp, 2.750%, 11/15/19		400,954
350,000	Athene Global Funding, 2.875%, 10/23/18(a)		344,518
940,000	Bank of America Corp., MTN, 6.875%, 4/25/18		1,032,140
875,000	Bank of America Corp., Series K, 8.000%, 7/29/49(b)		856,406
450,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 2.350%, 9/8/19(a)		453,707
335,000	CIT Group, Inc., 4.250%, 8/15/17		340,899
335,000	Citigroup, Inc., 2.650%, 10/26/20		338,159
390,000	Citigroup, Inc., 3.500%, 5/15/23		389,914
400,000	Citigroup, Inc., 4.400%, 6/10/25		407,885
355,000	Credit Suisse, MTN, 3.625%, 9/9/24		359,943
975,000	JPMorgan Chase & Co., Series 1, 7.900%, 4/29/49(b)		975,000
365,000	KeyCorp, MTN, 5.100%, 3/24/21		403,917
500,000	Lloyds Bank PLC, 3.500%, 5/14/25		517,175
410,000	Macquarie Bank, Ltd., 5.000%, 2/22/17(a)		422,965
450,000	Macquarie Bank, Ltd., 6.625%, 4/7/21(a)		512,036
997,000	Morgan Stanley, GMTN, 6.625%, 4/1/18		1,089,257
255,000	National City Corp., 6.875%, 5/15/19		287,047
265,000	PNC Bank NA, BKNT, 4.875%, 9/21/17		277,237
300,000	Prudential Financial, Inc., 8.875%, 6/15/38(b)		329,250
500,000	US Bancorp, MTN, 2.950%, 7/15/22		513,231
			10,578,717
	Capital Goods — 4.0%
1,302,000	General Electric Co., Series D, 5.000%, 12/29/49(b)		1,341,060
290,000	LSB Industries, Inc., 7.750%, 8/1/19		266,075
310,000	Masco Corp., 4.375%, 4/1/26		315,614
300,000	SBA Tower Trust, 2.898%, 10/15/19(a)		301,420
345,000	Textron, Inc., 3.650%, 3/1/21		355,479
			2,579,648
	Commercial & Professional Services — 2.5%
425,000	Republic Services, Inc., 3.550%, 6/1/22		448,654
280,000	United Rentals North America, Inc., 7.375%, 5/15/20		292,950
445,000	Verisk Analytics, Inc., 5.800%, 5/1/21		498,524
350,000	Waste Management, Inc., 4.600%, 3/1/21		375,506
			1,615,634
	Consumer Durables & Apparel — 1.0%
225,000	Hanesbrands, Inc., 6.375%, 12/15/20		232,875
400,000	Mohawk Industries, Inc., 3.850%, 2/1/23		413,067
			645,942
	Consumer Services — 0.7%
425,000	Carnival Corp., 3.950%, 10/15/20		451,658

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Diversified Financials — 14.4%
$399,000	AerCap Ireland Capital, Ltd./AerCap Global Aviation Trust, 4.250%, 7/1/20	$	402,491
360,000	Ally Financial, Inc., 3.600%, 5/21/18		356,850
280,000	Apollo Management Holdings LP, 4.000%, 5/30/24(a)		284,697
380,000	Ares Finance Co., LLC, 4.000%, 10/8/24(a)		365,742
485,000	Bear Stearns Cos., LLC (The), 5.550%, 1/22/17		500,427
335,000	Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(a)		382,577
410,000	Brixmor Operating Partnership LP, REIT, 3.850%, 2/1/25		375,679
600,000	Capital One Financial Corp., 3.200%, 2/5/25		593,986
480,000	Carlyle Holdings Finance, LLC, 3.875%, 2/1/23(a)		495,608
355,000	First American Financial Corp., 4.300%, 2/1/23		357,407
335,000	First Data Corp., 6.750%, 11/1/20(a)		352,253
810,000	Ford Motor Credit Co., LLC, 2.375%, 1/16/18		811,446
270,000	Goldman Sachs Group, Inc. (The), 1.779%, 4/23/20(b)		268,326
515,000	Goldman Sachs Group, Inc. (The), 3.625%, 1/22/23		531,184
920,000	Goldman Sachs Group, Inc. (The), 4.250%, 10/21/25		935,444
350,000	KKR Group Finance Co., LLC, 6.375%, 9/29/20(a)		411,719
400,000	Nationwide Building Society, 3.900%, 7/21/25(a)		422,171
410,000	Nationwide Financial Services, Inc., 5.375%, 3/25/21(a)		449,508
330,000	PetroLogistics LP/PetroLogistics Finance Corp., 6.250%, 4/1/20		339,900
336,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		335,662
350,000	Wells Fargo & Co., GMTN, 4.300%, 7/22/27		371,365
			9,344,442
	Energy — 6.8%
334,000	BP Capital Markets PLC, 1.375%, 11/6/17		332,921
385,000	Buckeye Partners LP, 2.650%, 11/15/18		382,256
250,000	Columbia Pipeline Group, Inc., 3.300%, 6/1/20(a)		248,455
415,000	Energy Transfer Partners LP, 4.050%, 3/15/25		365,234
405,000	EnLink Midstream Partners LP, 4.400%, 4/1/24		325,264
135,000	Halliburton Co., 2.700%, 11/15/20		137,055
293,000	Magellan Midstream Partners L.P., 5.000%, 3/1/26		316,859
275,000	Magellan Midstream Partners LP, 6.550%, 7/15/19		306,886
303,000	NuStar Logistics LP, 4.750%, 2/1/22		254,520
350,000	Pioneer Natural Resources Co., 6.650%, 3/15/17		361,917
410,000	Regency Energy Partners LP/Regency Energy Finance Corp., 6.500%, 7/15/21		403,850
300,000	Schlumberger Holdings Corp., 3.000%, 12/21/20(a)		304,151
305,000	Spectra Energy Capital, LLC, 8.000%, 10/1/19		335,326
368,000	Western Gas Partners LP, 4.000%, 7/1/22		329,402
			4,404,096
	Food & Staples Retailing — 0.8%
500,000	Reynolds American, Inc., 4.450%, 6/12/25		550,121

Continued

40

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Food, Beverage & Tobacco — 2.0%
$380,000	Altria Group, Inc., 4.750%, 5/5/21	$	430,982
500,000	Anheuser-Busch InBev Finance, Inc., 2.650%, 2/1/21		513,793
315,000	Kraft Heinz Foods Co., 2.800%, 7/2/20(a)		323,549
			1,268,324
	Health Care Equipment & Services — 2.5%
500,000	Boston Scientific Corp., 5.125%, 1/12/17		514,043
285,000	DENTSPLY International, Inc., 2.750%, 8/15/16		286,568
460,000	Stryker Corp., 3.500%, 3/15/26		476,714
350,000	Zimmer Holdings, Inc., 2.700%, 4/1/20		354,907
			1,632,232
	Insurance — 13.7%
295,000	ACE INA Holdings, Inc., 2.875%, 11/3/22		304,413
255,000	Alleghany Corp., 4.950%, 6/27/22		279,835
338,000	Allied World Assurance Co. Holdings, Ltd., 4.350%, 10/29/25		338,680
260,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		262,821
250,000	AXIS Specialty Finance PLC, 2.650%, 4/1/19		249,976
232,000	Berkshire Hathaway, Inc., 2.750%, 3/15/23		236,604
380,000	CBRE Services, Inc., 5.250%, 3/15/25		391,801
303,000	Horace Mann Educators Corp., 4.500%, 12/1/25		311,817
400,000	ING US, Inc., 2.900%, 2/15/18		406,162
245,000	Liberty Mutual Group, Inc., 4.250%, 6/15/23(a)		252,509
330,000	Manulife Financial Corp., 4.150%, 3/4/26		337,139
335,000	MetLife, Inc., 7.717%, 2/15/19		388,807
475,000	Morgan Stanley, GMTN, 3.700%, 10/23/24		490,590
345,000	National Rural Utilities Cooperative Finance Corp., 10.375%, 11/1/18		420,730
255,000	Old Republic International Corp., 4.875%, 10/1/24		265,252
400,000	Pacific LifeCorp, 6.000%, 2/10/20(a)		446,808
250,000	Protective Life Corp., 7.375%, 10/15/19		290,699
400,000	Reinsurance Group of America, Inc., 5.625%, 3/15/17		414,901
325,000	Reliance Standard Life Global Funding II, 2.150%, 10/15/18(a)		325,527
365,000	Royal Bank of Scotland Group PLC, 4.700%, 7/3/18		375,650
467,000	Sirius International Group, Ltd., 6.375%, 3/20/17(a)		479,026
270,000	Symetra Financial Corp., 4.250%, 7/15/24		274,856
610,000	TIAA Asset Management Finance Co., LLC, 2.950%, 11/1/19(a)		619,068
390,000	WR Berkley Corp., 4.625%, 3/15/22		420,711
295,000	XLIT, Ltd., 4.450%, 3/31/25		292,110
			8,876,492
	Materials — 1.4%
300,000	Glencore Funding, LLC, 1.680%, 4/16/18(a)(b)		270,000
390,000	Louisiana-Pacific Corp., 7.500%, 6/1/20		405,113
250,000	West Fraser Timber Co., Ltd., 4.350%, 10/15/24(a)		240,232
			915,345
	Media — 3.0%
425,000	Comcast Cable Communications Holdings, Inc., 9.455%, 11/15/22		600,882

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Media — (continued)
$390,000	ERAC USA Finance, LLC, 2.800%, 11/1/18(a)	$	395,991
455,000	Interpublic Group of Cos., Inc. (The), 3.750%, 2/15/23		449,208
265,000	Omnicom Group, Inc., 3.650%, 11/1/24		273,063
230,000	Toll Brothers Finance Corp., 6.750%, 11/1/19		256,450
			1,975,594
	Pharmaceuticals, Biotechnology & Life Sciences — 1.8%
350,000	Actavis Funding SCS, 3.800%, 3/15/25		364,260
475,000	Celgene Corp., 2.875%, 8/15/20		489,230
295,000	Quintiles Transnational Corp., 4.875%, 5/15/23(a)		302,641
			1,156,131
	Real Estate — 12.8%
352,000	Alexandria Real Estate Equities, Inc., REIT, 4.600%, 4/1/22		379,373
300,000	American Tower Corp., REIT, 5.050%, 9/1/20		325,816
300,000	Boston Properties L.P., REIT, 5.625%, 11/15/20		337,052
397,000	CubeSmart LP, REIT, 4.800%, 7/15/22		434,334
365,000	Essex Portfolio LP, REIT, 3.250%, 5/1/23		363,484
300,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(a)		345,149
405,000	Healthcare Trust of America Holdings LP, REIT, 3.375%, 7/15/21		409,276
408,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		398,062
692,000	HSBC Finance Corp., 6.676%, 1/15/21		793,734
360,000	iStar, Inc., REIT, 4.000%, 11/1/17		351,000
408,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		419,176
293,000	Kilroy Realty LP, REIT, 4.375%, 10/1/25		307,343
208,000	Kimco Realty Corp. REIT, 3.400%, 11/1/22		210,845
346,000	National Retail Properties, Inc. REIT, 4.000%, 11/15/25		355,358
473,000	Prologis LP, 3.750%, 11/1/25		493,548
390,000	Retail Opportunity Investments Partnership LP, REIT, 5.000%, 12/15/23		400,609
161,000	Senior Housing Properties Trust, REIT, 6.750%, 4/15/20		177,255
395,000	Simon Property Group LP, REIT, 10.350%, 4/1/19		487,175
330,000	Vereit Operating Partnership LP, REIT, 2.000%, 2/6/17		326,700
500,000	WEA Finance, LLC/Westfield UK & Europe Finance PLC, 2.700%, 9/17/19(a)		503,399
435,000	Welltower, Inc., REIT, 4.950%, 1/15/21		472,795
			8,291,483
	Retailing — 1.2%
450,000	Home Depot, Inc. (The), 3.000%, 4/1/26		472,398
320,000	O’Reilly Automotive, Inc., 3.550%, 3/15/26		329,225
			801,623
	Software & Services — 1.0%
340,000	Alibaba Group Holding, Ltd., 2.500%, 11/28/19		343,043
305,000	Electronic Arts, Inc., 4.800%, 3/1/26		313,581
			656,624
	Technology Hardware & Equipment — 0.5%
300,000	Apple, Inc., 1.700%, 2/22/19		304,482

Continued

41

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
CORPORATE BONDS — (continued)
	Telecommunication Services — 4.4%
$400,000	AT&T, Inc., 3.000%, 6/30/22	$	405,816
650,000	CCO Safari II, LLC, 4.464%, 7/23/22(a)		679,424
450,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(a)		496,501
275,000	Verizon Communications, Inc., 1.412%, 6/17/19(b)		274,346
847,000	Verizon Communications, Inc., 5.150%, 9/15/23		977,618
			2,833,705
	Transportation — 0.7%
400,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(a)		427,110
	Utilities — 2.8%
313,000	CMS Energy Corp., 8.750%, 6/15/19		378,989
350,000	Dominion Resources, Inc., 5.200%, 8/15/19		383,106
190,000	Pacific Gas & Electric Co., 2.950%, 3/1/26		191,932
400,000	Southern Co. (The), 2.750%, 6/15/20		405,554
450,000	Southwestern Electric Power Co., Series E, 5.550%, 1/15/17		464,517
			1,824,098
	Total Corporate Bonds (Cost $62,306,010)		62,971,971

Shares		Fair Value
PREFERRED STOCKS — 0.9%
	Banks — 0.6%
14,500	Citigroup Capital XIII, 6.988%	$	381,205
	Diversified Financials — 0.2%
4,629	Ally Financial, Inc., Series A, 8.500%		117,854
	Real Estate — 0.1%
4,135	Public Storage , REIT, Series Q, 6.500%		103,582
	Total Preferred Stocks (Cost $619,460)		602,641
MONEY MARKET FUND — 3.0%
1,958,920	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)		1,958,920
	Total Money Market Fund (Cost $1,958,920)		1,958,920
Total Investments — 101.0% (Cost $64,884,390)			65,533,532
Net Other Assets (Liabilities) — (1.0)%			(654,443	)
NET ASSETS — 100.0%		$	64,879,089

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

(b) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. 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

See accompanying Notes to the Financial Statements.

42

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — 25.5%
$300,000	AmeriCredit Automobile Receivables Trust, Series 2014-3, Class C, 2.580%, 9/8/20	$	300,573
293,023	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 0.773%, 11/25/35(a)		283,203
600,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(b)		598,388
700,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2015-1A, Class A, 2.500%, 7/20/21(b)		696,606
300,000	Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 1.833%, 10/25/34(a)		299,465
350,000	Capital Auto Receivables Asset Trust, Series 2015-3, Class B, 2.430%, 9/21/20		348,978
500,000	Capital Auto Receivables Asset Trust, Series 2015-4, Class B, 2.390%, 11/20/20		497,458
450,000	Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.150%, 6/15/39		617,227
640,000	Encore Credit Receivables Trust, Series 2005-4, Class M2, 0.873%, 1/25/36(a)		588,544
15,000	Ford Credit Auto Owner Trust, Series 2014-B, Class C, 1.950%, 2/15/20		15,121
500,000	GSAMP Trust, Series 2006-SEA1, Class M1, 0.933%, 5/25/36(a)(b)		465,189
500,000	Hertz Vehicle Financing II L.P., Series 2015-1A, Class A, 2.730%, 3/25/21(b)		500,543
650,000	Hertz Vehicle Financing, LLC, Series 2013-1A, Class A2, 1.830%, 8/25/19(b)		643,180
200,000	Home Equity Asset Trust, Series 2005-8, Class M1, 0.863%, 2/25/36(a)		184,802
500,000	JP Morgan Mortgage Acquisition Corp., Series 2005-OPT1, Class M2, 0.903%, 6/25/35(a)		464,165
375,595	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 0.633%, 1/25/36(a)		361,409
399,583	Morgan Stanley Home Equity Loan Trust, Series 2005-3, Class M2, 0.903%, 8/25/35(a)		385,455
500,000	New Century Home Equity Loan Trust, Series 2005-4, Class M2, 0.943%, 9/25/35(a)		457,629
450,000	Park Place Securities, Inc., Series 2005-WHQ2, Class M2, 1.123%, 5/25/35(a)		422,631
400,000	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WCW3, Class M1, 0.913%, 8/25/35(a)		370,701
320,000	RAMP Trust, Series 2005-RZ4, Class M2, 0.933%, 11/25/35(a)		273,652
500,000	Santander Drive Auto Receivables Trust, Series 2015-5, Class B, 1.960%, 5/15/20		499,457
357,380	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 0.753%, 10/25/35(a)		340,720
283,096	United States Small Business Administration, Series 2010-20D, Class 1, 4.360%, 4/1/30		309,684
462,001	United States Small Business Administration, Series 2014-20D, Class 1, 3.110%, 4/1/34		483,546
488,976	United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35		502,482

Principal     Amount		Fair Value
ASSET BACKED SECURITIES — (continued)
$661,742	United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35	$	679,752
540,526	United States Small Business Administration, Series 2015-20I, Class 1, 2.820%, 9/1/35		555,322
	Total Asset Backed Securities (Cost $12,042,305)		12,145,882
COLLATERALIZED MORTGAGE OBLIGATIONS — 17.4%
171,285	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		179,569
489,648	Banc of America Funding Trust, Series 2005-B, Class 3A1, 0.662%, 4/20/35(a)		458,714
115,253	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		116,146
137,080	Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A4, 5.500%, 2/25/35		137,732
144,221	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		148,815
205,650	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		206,099
126,282	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		130,463
88,428	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		88,256
230,798	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		241,876
4,884	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		4,996
16,402	Fannie Mae, Series 2003-19, Class AR, 5.500%, 3/25/33		18,489
475,774	Fannie Mae, Series 2004-17, Class BZ, 6.000%, 4/25/34		629,530
180,000	Fannie Mae, Series 2011-131, Class PB, 4.500%, 12/25/41		206,821
443,000	Fannie Mae, Series 2013-2, Class LB, 3.000%, 2/25/43		442,080
444,000	Fannie Mae, Series 2013-30, Class PY, 3.000%, 4/25/43		459,508
269,885	FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/25/44(a)(b)		274,096
100,000	Freddie Mac, Series 3558, Class G, 4.000%, 8/15/24		110,084
35,770	Freddie Mac, Series 4079, Class WV, 3.500%, 3/15/27		38,078
319,089	Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27		347,895
487,327	Freddie Mac, Series 2525, Class AM, 4.500%, 4/15/32		544,347
128,060	Freddie Mac, Series 2485, Class WG, 6.000%, 8/15/32		146,844
148,012	Freddie Mac, Series 2702, Class CE, 4.500%, 11/15/33		161,551
211,132	Freddie Mac, Series 3440, Class EM, 5.000%, 4/15/38		234,301
466,319	Freddie Mac, Series 3816, Class HM, 4.500%, 5/15/40		522,630

Continued

43

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
$181,119	Freddie Mac, Series 3803, Class PJ, 4.250%, 1/15/41	$	194,849
160,373	Ginnie Mae, Series 2010-85, Class DQ, 3.000%, 12/20/39		163,879
279,695	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		284,001
74,209	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		71,737
90,951	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		90,908
108,832	PHHMC Trust, Series 2007-6, Class A1, 5.397%, 12/18/37(a)		107,717
127,768	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		132,092
111,678	RBSGC Mortgage Loan Trust, Series 2007-B, Class 3A1, 5.319%, 7/25/35(a)		113,790
247,959	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		249,152
534,359	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 2.547%, 6/25/34(a)		529,088
113,164	Structured Asset Securities Corp. Trust, Series 2005-6, Class 4A1, 5.000%, 5/25/35		114,057
40,632	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A1, 5.000%, 5/25/35		40,708
27,020	Structured Asset Securities Corp. Trust, Series 2005-6, Class 5A2, 5.000%, 5/25/35		27,211
34,009	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		34,393
261,481	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		263,788
	Total Collateralized Mortgage Obligations (Cost $8,040,202)		8,266,290
COMMERCIAL MORTGAGE-BACKED SECURITIES — 22.9%
70,000	Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM, 5.675%, 7/10/46		70,239
156,251	Banc of America Commercial Mortgage Trust, Series 2007-5, Class A4, 5.492%, 2/10/51		161,545
30,394	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-3, Class AM, 4.727%, 7/10/43		30,260
476,369	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		473,418
201,672	Bear Stearns Commercial Mortgage Securities Trust, Series 2006-T22, Class AJ, 5.728%, 4/12/38(a)		201,588
300,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW14, Class AM, 5.243%, 12/11/38		303,565
250,000	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/11/42(a)		262,824
300,000	Citigroup Commercial Mortgage Trust, Series 2013-GC17, Class AS, 4.544%, 11/10/46		330,601
500,000	COMM Mortgage Trust, Series 2014-CR16, Class A4, 4.051%, 4/1/47		547,678
180,000	COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/10/47		191,650

Principal     Amount		Fair Value
COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
$212,714	COMM Mortgage Trust, Series 2007-C9, Class A4, 5.813%, 12/10/49(a)	$	220,905
100,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.095%, 12/10/49(a)		103,925
500,000	CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4, 3.718%, 8/15/48		533,365
311,000	Fannie Mae, Series 2015-M10, Class A2, 3.092%, 4/25/27(a)		328,779
175,000	GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(b)		191,858
450,000	GS Mortgage Securities Trust, Series 2010-C2, Class A2, 5.162%, 12/10/43(a)(b)		504,571
300,000	GS Mortgage Securities Trust, Series 2012-GCJ7, Class AS, 4.085%, 5/10/45		321,722
370,000	GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47		400,438
216,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47		235,219
70,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/15/43(b)		75,360
369,825	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class A4, 5.552%, 5/12/45		371,009
300,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class AM, 5.593%, 5/12/45		301,661
500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(a)(b)		536,038
375,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class AS, 4.043%, 7/15/47		399,218
185,000	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.153%, 9/15/45(a)		190,799
87,000	Merrill Lynch Mortgage Trust, Series 2008-C1, Class AM, 6.267%, 2/12/51(a)		92,537
398,778	ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A3, 5.864%, 8/12/49(a)		413,251
100,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47		108,503
400,000	Morgan Stanley Capital I Trust, Series 2011-C2, Class A4, 4.661%, 6/1/44(b)		444,023
103,000	Morgan Stanley Capital I Trust, Series 2007-IQ14, Class A5, 5.696%, 4/15/49(a)		105,581
760,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class B, 5.276%, 11/15/43(a)(b)		836,687
300,000	Wells Fargo Commercial Mortgage Trust, Series 2015-P2, Class A4, 3.809%, 12/15/48		322,795
400,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(a)(b)		430,360
100,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class C, 5.392%, 2/15/44(a)(b)		105,496
529,000	WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57		567,685
164,000	WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57		178,040
	Total Commercial Mortgage-Backed Securities (Cost $10,906,586)		10,893,193

Continued

44

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
MORTGAGE-BACKED SECURITIES — 32.4%
	Fannie Mae — 20.7%
$355,513	4.000%, 6/1/34, Pool #MA1922	$	383,302
226,311	4.000%, 9/1/34, Pool #MA2019		244,055
293,600	4.000%, 3/1/35, Pool #MA2211		316,503
719,209	3.500%, 5/1/35, Pool #MA2260		758,565
203,440	5.000%, 4/1/36, Pool #AB0111		226,071
242,066	5.500%, 6/1/38, Pool #984277		272,655
164,387	5.500%, 8/1/38, Pool #995072		185,976
189,830	4.500%, 9/1/39, Pool #AC1830		207,031
144,553	5.000%, 12/1/39, Pool #AC8518		160,139
129,222	4.500%, 9/1/40, Pool #AE0411		141,271
202,663	4.500%, 10/1/40, Pool #AE4855		220,945
225,679	5.000%, 1/1/41, Pool #AH3373		251,257
255,918	3.500%, 2/1/41, Pool #AH5646		271,068
529,815	4.000%, 3/1/41, Pool #AH4008		567,703
725,332	4.500%, 3/1/41, Pool #AB2467		801,104
140,630	4.500%, 6/1/41, Pool #AC9298		153,448
237,119	5.000%, 7/1/41, Pool #AI5595		263,995
404,061	4.000%, 9/1/41, Pool #AJ1717		432,949
414,686	3.500%, 6/1/42, Pool #AB5373		435,886
364,917	4.000%, 4/1/44, Pool #AW2882		389,868
413,712	5.000%, 5/1/44, Pool #AL5853		458,019
197,323	4.500%, 10/1/44, Pool #MA2066		214,610
488,380	4.500%, 11/1/44, Pool #MA2100		531,276
668,153	4.000%, 12/1/44, Pool #MA2127		713,837
609,499	4.500%, 1/1/45, Pool #MA2158		665,647
559,318	3.500%, 3/1/45, Pool #AS4552		588,761
			9,855,941
	Freddie Mac — 11.6%
542,265	3.500%, 1/1/31, Pool #G18583		573,925
708,345	3.500%, 5/1/32, Pool #C91458		750,755
590,707	3.500%, 7/1/32, Pool #C91467		624,259
219,643	4.000%, 11/1/32, Pool #G30616		236,956
118,296	5.500%, 10/1/39, Pool #A89387		131,491
184,765	5.000%, 4/1/40, Pool #A91812		204,802
180,824	5.500%, 4/1/40, Pool #C03467		201,789
170,603	5.000%, 8/1/40, Pool #C03491		188,374
269,495	4.000%, 11/1/40, Pool #A94742		290,712
288,916	4.000%, 12/1/40, Pool #A95447		311,672
540,753	4.000%, 1/1/41, Pool #A96312		578,654
261,830	3.500%, 3/1/42, Pool #G08479		274,425
487,099	3.500%, 4/1/42, Pool #C03858		511,965

Principal     Amount		Fair Value
MORTGAGE-BACKED SECURITIES — (continued)
	Freddie Mac — (continued)
$630,929	3.500%, 8/1/42, Pool #Q10324	$	661,194
			5,540,973
	Ginnie Mae — 0.1%
32,564	4.000%, 12/20/40, Pool #755678		35,267
	Total Mortgage-Backed Securities (Cost $15,162,593)		15,432,181
U.S. TREASURY NOTES — 0.9%
399,616	0.375%, 7/15/25(c)		408,342
	Total U.S. Treasury Notes (Cost $390,473)		408,342
Shares
MONEY MARKET FUND — 2.6%
1,260,537	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(d)		1,260,537
	Total Money Market Fund (Cost $1,260,537)		1,260,537
Total Investments — 101.7% (Cost $47,802,696)			48,406,425
Net Other Assets (Liabilities) — (1.7)%			(795,213	)
NET ASSETS — 100.0%		$	47,611,212

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. 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.

45

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal     Amount		Fair Value
MUNICIPAL BONDS — 96.4%
	Kentucky — 96.4%
$300,000	City Of Bowling Green KY G.O., Advance Refunding, Series C, Callable 6/1/26 @ 102, 4.000%, 6/1/27	$	351,366
300,000	Commonwealth of Kentucky, Certificate of Participation, Public Improvements, Callable 6/15/25 @ 100, 5.000%, 6/15/34		350,040
400,000	Eastern Kentucky University, Refunding Revenue, Series A, (State Intercept), 5.000%, 4/1/24		492,044
500,000	Fayette County, KY, School District Finance Corp., Lease Payable from Local Revenues, Series A, 5.000%, 10/1/21		590,750
300,000	Jefferson County School District Finance Corp. School Imps. Revenue Bonds St Intercept, Series C, Callable 12/1/25 @ 100, 4.000%, 12/1/28		342,990
250,000	Jefferson County, KY, School District Finance Corp., School Improvements Revenue, Series A, Callable 4/1/25 @ 100, 5.000%, 4/1/27		307,507
510,000	Kentucky Asset/Liability Commission, Project Notes, Federal Highway Trust Transit Improvements Revenue, First Series, Callable 9/1/23 @ 100, 5.250%, 9/1/25		621,874
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		428,652
500,000	Kentucky Economic Development Finance Authority, Owensboro Medical Health System, Hospital Improvements Revenue, Series A, 5.000%, 6/1/16		503,570
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		612,787
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		546,775
410,000	Kentucky State Property & Buildings Commission, Project No. 76, Refunding Revenue, (AMBAC), 5.500%, 8/1/21		493,181
460,000	Kentucky State Property & Buildings Commission, Project No. 83, Refunding Revenue, (AMBAC), 5.000%, 10/1/19		519,142
400,000	Kentucky Turnpike Authority, Revitalization Projects, Refunding Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/25		451,992
400,000	Kentucky Turnpike Authority, Revitalization Projects, Revenue, Series A, 4.000%, 7/1/21		447,936
300,000	Laurel County, KY, School District Finance Corp., Refunding Revenue, Callable 3/1/25 @ 100 (State Intercept), 4.000%, 6/1/25		347,673
300,000	Lexington-Fayette Urban County Government G.O., Public Imps. Series B, Callable 1/1/25 @100, 5.000%, 1/1/27		369,741

Principal     Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Kentucky — (continued)
$525,000	Lexington-Fayette Urban County, KY, Airport Board, Refunding Revenue, Series A, 5.000%, 7/1/19	$	590,719
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		591,319
250,000	Louisville & Jefferson County, KY, Metropolitan Government, Refunding G.O., Series F, Callable 11/1/24 @ 100, 4.000%, 11/1/26		287,617
500,000	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 11/15/21@100, 5.000%, 5/15/30		583,360
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		523,740
250,000	Owensboro, KY, Public Improvements G.O., Series A, 4.000%, 5/1/22		285,638
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		448,688
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		303,753
200,000	Russell, KY, Bon Secours Health System, Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/26		234,052
300,000	University of Kentucky, Refunding Revenue, Series D (State Intercept), 5.250%, 10/1/20		354,006
	Total Municipal Bonds (Cost $11,226,455)		11,980,912
Shares
MONEY MARKET FUND — 2.4%
294,138	Federated Tax Free Obligations Fund, Institutional Shares, 0.14%(a)		294,138
	Total Money Market Fund (Cost $294,138)		294,138
Total Investments — 98.8% (Cost $11,520,593)			12,275,050
Net Other Assets (Liabilities) — 1.2%			147,097
NET ASSETS — 100.0%		$	12,422,147

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

AMBAC — American Municipal Bond Assurance Corp.

G.O. — General Obligation

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

46

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — 98.5%
	Maryland — 98.5%
$1,000,000	Anne Arundel County, MD, Consolidated Water & Sewer Utility Improvements G.O., 5.000%, 4/1/22	$	1,219,370
810,000	Anne Arundel County, MD, Economic Development, Anne Arundel Community College Project, Refunding Revenue, 4.000%, 9/1/20		898,403
1,000,000	Charles County, MD, Consolidated Public School Improvements G.O., 5.000%, 7/15/22		1,225,910
890,000	Charles County, MD, Consolidated Public School Improvements G.O., Callable 7/15/23 @ 100, 5.000%, 7/15/25		1,093,116
1,000,000	Harford County, MD, Consolidated Public Improvements G.O., 5.000%, 9/15/23		1,252,830
1,000,000	Howard County, MD, Consolidated Public Improvements, Series A, Refunding G.O., 5.000%, 2/15/20		1,153,610
300,000	Howard County, MD, Housing Commission, Columbia Commons Apartments, Local Multifamily Housing Revenue, Series A, 3.000%, 6/1/21		318,747
275,000	Howard County, MD, Housing Commission, General Capital Improvement Program, Local Multifamily Housing Revenue, 4.000%, 6/1/22		307,167
125,000	Howard County, MD, Miscellaneous Purpose Certificate of Participation, Series A, 8.050%, 2/15/21		165,350
135,000	Howard County, MD, Public Improvements Certificate of Participation, Series B, 8.250%, 2/15/20		170,273
690,000	Maryland Community Development Administration, Residential Single Family Housing Revenue, Series A, Callable 9/1/18 @ 100, 4.750%, 9/1/29		720,284
250,000	Maryland Economic Development Corp., Electricity Lights & Power Improvements, Refunding Revenue, Callable 3/1/19 @ 100, 6.200%, 9/1/22		286,370
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		119,429
1,975,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, 5.000%, 6/1/20		2,283,297
420,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, Callable 6/1/21 @ 100, 5.000%, 6/1/26		492,622
555,000	Maryland Environmental Service, Mid Shore II Regional Landfill, Resource Recovery Improvements Revenue, 4.000%, 11/1/17		583,333
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		1,119,030

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$1,090,000	Maryland Health & Higher Educational Facilities Authority, Carroll Hospital, Refunding Revenue, Series A, 5.000%, 7/1/19	$	1,210,914
900,000	Maryland Health & Higher Educational Facilities Authority, College of Notre Dame, Refunding Revenue, 4.000%, 10/1/19		970,686
1,000,000	Maryland Health & Higher Educational Facilities Authority, Frederick Memorial Hospital, Refunding Revenue, Series A, 5.000%, 7/1/22		1,168,370
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		579,740
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		1,191,930
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		619,798
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		1,128,540
400,000	Maryland Health & Higher Educational Facilities Authority, Meritus Medical Center Issue, Refunding Revenue, 5.000%, 7/1/22		472,484
400,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System, Refunding Revenue, 5.000%, 7/1/19		446,804
1,160,000	Maryland Stadium Authority, Refunding Revenue, 5.000%, 6/15/23		1,420,316
500,000	Maryland State Department of Transportation, Transit Improvements Revenue, Second Issue, Callable 9/1/18 @ 100, 5.000%, 9/1/23		549,820
1,100,000	Maryland State Transportation Authority, Grant & Revenue Anticipation, Highway Improvements Revenue, Callable 3/1/19 @ 100, OID, 5.000%, 3/1/20		1,227,853
635,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, 5.000%, 7/1/19		717,105
1,000,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/22		1,126,390
500,000	Montgomery County, MD, Department Liquor Control Public Improvements Revenue, Series A, Callable 4/1/21 @ 100, OID, 4.500%, 4/1/26		564,280
1,025,000	Montgomery County, MD, Revenue Authority, Refunding Revenue, 5.000%, 5/1/22		1,228,237
750,000	Montgomery County, MD, Water Quality Public Improvements Revenue, Series A, Callable 4/1/20 @ 100, 5.000%, 4/1/30		857,587

Continued

47

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Maryland — (continued)
$  890,000	Montgomery County, MD, West Germantown Development District, Refunding, Special Tax, 4.000%, 7/1/23	$	1,011,823
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		1,182,220
1,000,000	State of Maryland, Refunding G.O., Series B, 4.000%, 8/1/23		1,177,550
1,140,000	Washington County, MD, Refunding G.O., 4.000%, 1/1/21		1,290,879
700,000	Washington Suburban Sanitary Commission, Consolidated Public Water Utility Improvements, G.O., 4.000%, 6/1/24		832,846
			34,385,313
	Total Municipal Bonds (Cost $32,623,449)		34,385,313

Shares
MONEY MARKET FUND — 0.5%
191,198	Federated Tax Free Obligations Fund, Institutional Shares, 0.14%(a)	$	191,198
	Total Money Market Fund (Cost $191,198)		191,198
Total Investments — 99.0% (Cost $32,814,647)			34,576,511
Net Other Assets (Liabilities) — 1.0%			336,188
NET ASSETS — 100.0%		$	34,912,699

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

G.O. — General Obligation

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

48

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — 96.1%
	North Carolina — 96.1%
$2,335,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/24	$	2,762,865
2,405,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 4.750%, 10/1/27		2,731,743
1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/24		1,183,670
1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,166,170
1,000,000	Broad River Water Authority, Water System Refunding Revenue, 5.000%, 6/1/24		1,230,060
1,025,000	Buncombe County Metropolitan Sewerage District, Sewer Improvements Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/39		1,194,145
1,985,000	Buncombe County, NC, Public Improvements Revenue, Series A, 4.000%, 6/1/17		2,061,125
2,000,000	Buncombe County, NC, Refunding Revenue, Limited Obligations, Series A, 5.000%, 6/1/20		2,310,440
1,000,000	Cabarrus County, NC Installment Fing Contract Public Imps. Revenue Bonds, Callable 4/1/26 @100, 5.000%, 4/1/28		1,246,810
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		1,090,400
1,960,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, 5.000%, 1/1/17		2,023,524
1,685,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/20		1,874,647
1,730,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/23		1,924,711
1,240,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, 5.000%, 8/1/21		1,478,105
1,475,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/26		1,756,695
1,535,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/28		1,817,210
1,160,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26		1,269,933
1,030,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/31		1,125,605
1,120,000	Cary, NC, Combined Utility Systems, Refunding Revenue, Callable 12/1/25 @ 100, 4.000%, 12/1/29		1,298,181

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/19	$	1,100,930
1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/20		1,120,780
1,000,000	Charlotte, NC, Charlotte Douglas International Airport Refunding Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/31		1,188,570
1,000,000	Charlotte, NC, Port, Airport & Marina Improvements Revenue, Series A, Callable 7/1/20 @ 100, 5.000%, 7/1/27		1,137,820
1,280,000	Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/20		1,290,099
1,000,000	Charlotte, NC, Storm Water Fee Public, Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/23		1,007,900
1,000,000	Charlotte, NC, Water & Sewer System, Refunding Revenue, Series B, Callable 7/1/20 @100, 5.000%, 7/1/25		1,160,580
2,000,000	Chatham County, NC, Refunding Revenue (County Guaranteed), 5.000%, 12/1/28		2,548,640
1,195,000	City Of Monroe Nc Ref Advance Refunding Revenue Bonds, Callable 3/1/26 @ 100, 5.000%, 3/1/29		1,472,360
2,000,000	Concord, NC, Utilities Systems, Refunding Revenue, Series B, Callable 12/1/19 @ 100, 5.000%, 12/1/22		2,240,980
1,000,000	Durham Capital Financing Corp., Limited Obligation Refunding Revenue, 5.000%, 6/1/21		1,183,280
1,410,000	Durham County, NC, Industrial Facilities & Pollution Control Financing Authority, Research Triangle Institute, University & College Improvements Revenue, 5.000%, 2/1/20		1,604,721
2,000,000	Durham County, NC, Public Improvements Certificate of Participation, Series A, Callable 6/1/19 @ 100, 5.000%, 6/1/24		2,255,640
1,000,000	Durham, NC, Refunding G.O., 4.000%, 9/1/25		1,205,130
1,750,000	Fayetteville, NC, Public Works Commission, Electric Light & Power Improvements Revenue, Callable 3/1/24 @ 100, 4.000%, 3/1/27		2,002,787
1,085,000	Franklin County, NC, Public Facilities Projects, Certificate of Participation, Callable 9/1/17 @ 100 (NATL), 5.000%, 9/1/22		1,145,207
1,030,000	Henderson County, NC, University & College Improvements Revenue, Series B, 4.000%, 12/1/16		1,053,680
1,010,000	Holly Springs, NC, Public Improvements Revenue, Callable 10/1/24 @ 100, 5.000%, 10/1/27		1,241,563
2,335,000	Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/19		2,607,168
2,125,000	Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/20		2,444,855
2,470,000	Iredell County, NC, Refunding G.O., Series B, 5.000%, 2/1/21		2,920,651
4,000,000	Johnston County, NC, Refunding G.O., 4.000%, 2/1/26		4,719,920

Continued

49

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$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	$	1,043,750
1,570,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/19		1,702,681
1,705,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/20		1,887,469
1,750,000	Lincoln County, NC, Refunding G.O., Series A, 5.000%, 6/1/18		1,908,147
2,535,000	Lincoln County, NC, Refunding G.O., Series A, 4.000%, 6/1/19		2,775,470
2,000,000	Mecklenburg County, NC, Refunding G.O., 5.000%, 2/1/21		2,369,220
1,280,000	Monroe, NC, Combined Enterprise System, Refunding Revenue (AGM), 4.000%, 3/1/19		1,386,522
1,855,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/19		2,119,894
1,015,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/20		1,191,285
1,270,000	New Hanover County, NC, New Hanover Regional Medical, Refunding Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,479,194
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		1,134,460
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		1,187,424
1,000,000	North Carolina Agricultural & Technical State University, Series A, Refunding Revenue, 5.000%, 10/1/32		1,194,370
1,215,000	North Carolina Agricultural & Technical State University, Series A, Refunding Revenue, 5.000%, 10/1/34		1,441,075
1,305,000	North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, 5.000%, 4/1/21		1,519,803
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		1,197,780
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		1,224,780
1,640,000	North Carolina Eastern Municipal Power Agency, Electric, Lights & Power Improvements Revenue, Series A, OID, 6.400%, 1/1/21		1,874,126
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		1,098,254

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$1,500,000	North Carolina Medical Care Commission, Firsthealth Carolina, Refunding Revenue, Series C, OID, 4.000%, 10/1/18	$	1,611,600
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		5,847,050
915,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.000%, 7/1/19		1,002,447
1,180,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.375%, 7/1/20		1,333,730
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		1,056,400
3,030,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, 5.000%, 6/1/20		3,469,502
1,530,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, Callable 6/1/20 @ 100, 5.250%, 6/1/29		1,733,918
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		3,245,122
2,000,000	North Carolina State University at Raleigh, Refunding Revenue, Series A, Callable 10/1/23 @ 100, 5.000%, 10/1/28		2,451,060
4,550,000	North Carolina State, Public Improvements, Revenue, Series C, Callable 5/1/21 @ 100, 4.000%, 5/1/23		5,138,907
2,380,000	North Carolina State, Refunding G.O., Series B, 5.000%, 4/1/17		2,485,244
1,250,000	Onslow County, NC, Refunding G.O., 5.000%, 12/1/21		1,496,175
1,520,000	Onslow Water & Sewer Authority, Water Utility Improvements Revenue, Series B, Callable 11/9/15 @ 100 (XLCA), 5.000%, 6/1/21		1,525,259
1,365,000	Orange County, NC, Public Facilities Co., Public Improvements, Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,637,058
1,105,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL), 5.250%, 6/1/18		1,195,864
1,000,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL), 5.250%, 6/1/19		1,114,490
1,210,000	Pender County, NC, Limited Obligation Refunding Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,458,607
1,390,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/24		1,653,655
1,395,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,649,350

Continued

50

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$2,160,000	Raleigh Durham Airport Authority, Refunding Revenue, Series B1, Callable 5/1/20 @ 100, 5.000%, 11/1/28	$	2,476,202
1,500,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/27		1,836,345
1,615,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/28		1,972,190
1,070,000	Raleigh, NC, Public Improvements, Revenue, Series A, Callable 10/1/24 @ 100, 4.000%, 10/1/31		1,188,759
1,560,000	Rockingham County, NC, Public Improvements Certificate of Participation (Assured Guaranty), 5.000%, 4/1/17		1,628,250
1,510,000	Rockingham County, NC, Refunding Revenue, 5.000%, 4/1/18		1,634,016
1,985,000	Sampson County, NC, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26		2,464,100
1,000,000	Union County, NC, Enterprise Systems, Refunding Revenue, Series A, Callable 12/1/21 @ 100, 4.000%, 12/1/22		1,143,880
2,205,000	Union County, NC, Refunding G.O., Series A, 5.000%, 3/1/22		2,679,428
1,000,000	Union County, NC, Refunding Revenue, 5.000%, 12/1/23		1,245,180
2,285,000	University of North Carolina at Greensboro, Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/23		2,702,744
1,695,000	University of North Carolina at Greensboro, University & College Improvements Revenue, Callable 4/1/24 @ 100, 5.000%, 4/1/28		2,049,001
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		3,809,636
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		3,645,135
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		1,730,441
1,975,000	University of North Carolina System, The University of North Carolina at Greensboro, Refunding Revenue, Series B2, 5.000%, 4/1/17		2,057,871
1,000,000	University of North Carolina System, University & College Improvements, General Trust Indenture Revenue, Series C, 4.500%, 10/1/17		1,050,750
250,000	University of North Carolina System, University & College Improvements, Prerefunded Revenue, Series A, Callable 10/1/16 @ 100, 5.000%, 10/1/17		255,605
120,000	University Of North Carolina System, University & College Improvements, Refunding Revenue, Series A, 5.000%, 10/1/17		122,677

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	North Carolina — (continued)
$   405,000	University Of North Carolina System, University & College Improvements, Unrefunded Revenue, Series A, 5.000%, 10/1/17	$	414,173
3,000,000	Wake County Industrial Facilities & Pollution Control Financing Authority, Duke Energy Progress, Refunding Revenue, Callable 6/1/23 @ 100, 4.000%, 6/1/41		3,158,400
2,125,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/24		2,536,358
1,000,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,179,360
1,000,000	Winston-Salem State University Foundation LLC, Refunding Revenue, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,149,770
1,000,000	Winston-Salem, NC, Transit Improvements, Refunding Revenue, Series C, Callable 6/1/24 @ 100, 5.000%, 6/1/30		1,199,950
1,165,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, 5.000%, 6/1/24		1,471,162
1,000,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/17 @ 100, 5.000%, 6/1/19		1,050,650
1,875,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/25		2,346,956
1,000,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/28		1,236,440
	Total Municipal Bonds (Cost $180,629,312)		192,475,871

Continued

51

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares
MONEY MARKET FUND — 3.0%
6,016,965	Federated North Carolina Municipal Cash Trust, Institutional Shares, 0.010%(a)	$	6,016,965
	Total Money Market Fund (Cost $6,016,965)		6,016,965
Total Investments — 99.1% (Cost $186,646,277)			198,492,836
Net Other Assets (Liabilities) — 0.9%			1,864,018
NET ASSETS — 100.0%		$	200,356,854

(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

XLCA — XL Capital Assurance

See accompanying Notes to the Financial Statements.

52

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — 94.1%
	South Carolina — 94.1%
$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	$	1,870,086
1,190,000	Anderson County, SC, School District No 5, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/23		1,464,604
1,215,000	Anderson County, SC, School District No 5, School Improvements, G.O., (SCSDE), 5.000%, 3/1/25		1,532,844
1,000,000	Anderson Regional Joint Water System, Refunding Revenue, Series A, Callable 7/15/21 @ 100, 5.000%, 7/15/25		1,160,270
1,095,000	Anderson, SC, Water & Sewer, Refunding Revenue (AGM), 5.000%, 7/1/19		1,231,327
1,000,000	Beaufort County, SC, School District, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/22		1,207,950
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		1,040,290
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		1,206,100
1,000,000	Charleston County, SC, Port, Airport & Marina Improvements Revenue, 5.000%, 12/1/22		1,222,420
2,500,000	Charleston Educational Excellence Finance Corp., Charleston County School Refunding Revenue, 5.000%, 12/1/21		2,995,750
1,000,000	City of Myrtle Beach, SC, Water & Sewer Revenue, Advance Refunding, Revenue Bonds, Callable 3/1/26 @ 100, 5.000%, 3/1/28		1,239,850
1,910,000	Clover School District No. 2, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/18		2,063,411
1,355,000	Coastal Carolina University, University & College Improvements Revenue, Callable 6/1/24 @ 100, 5.000%, 6/1/34		1,580,906
1,295,000	College of Charleston, University & College Improvements Refunding Revenue, Series A, Callable 4/1/21 @ 100, 5.000%, 4/1/25		1,495,829
1,000,000	College of Charleston, University & College Improvements Revenue, Series A, Callable 4/1/24 @ 100, 5.000%, 4/1/25		1,221,200
1,095,000	Columbia, SC, Recreational Facilities Improvements Revenue, Callable 2/1/24 @ 100, 4.000%, 2/1/31		1,201,357
1,170,000	Easley Combined Utility System, Refunding Revenue, Callable 12/1/19 @ 100, (Assured Guaranty), 5.000%, 12/1/24		1,336,690
1,135,000	East Richland County Public Service District, Refunding Revenue, 4.000%, 1/1/22		1,291,414
600,000	Educational Facilities Authority, Wofford College, University & College Improvements Revenue, Series B, 2.000%, 4/1/27(a)		601,392
1,000,000	Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/28		1,199,710
1,100,000	Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/33		1,289,893

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$1,895,000	Florence County, SC, Public Improvements, G.O., (State Aid Withholding), 4.000%, 6/1/20	$	2,117,227
1,000,000	Greenville County, SC, School District Building Refunding Revenue, 5.000%, 12/1/22		1,215,040
1,075,000	Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, 5.000%, 12/1/22		1,107,336
570,000	Greenville County, SC, School District Building Refunding Revenue, Callable 12/1/16 @ 100, OID, 4.250%, 12/1/21		584,193
1,340,000	Greenville Health System, Hospital System Board, Refunding Revenue, 5.000%, 5/1/21		1,567,291
1,000,000	Greenville Health System, Hospital System Board, Refunding Revenue, Callable 5/1/22 @ 100, 5.000%, 5/1/31		1,149,990
1,000,000	Greenwood County, SC, Self Regional Healthcare Refunding Revenue, Series B, Callable 4/1/22 @ 100, 5.000%, 10/1/24		1,158,400
530,000	Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 5.000%, 10/1/23		594,803
1,175,000	Greenwood, SC, Combined Public Utility Revenue, Series A, 4.000%, 12/1/18		1,263,101
1,000,000	Horry County, SC, School District, Refunding, G.O., Series B (SCSDE), 5.000%, 3/1/23		1,228,540
1,000,000	Kershaw County, SC, Kershaw County School District Project, Refunding Revenue, 5.000%, 12/1/23		1,205,050
500,000	Kershaw County, SC, Kershaw County School District Project, Refunding Revenue (AGC), 5.000%, 12/1/16		514,740
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		1,774,367
645,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/19		686,299
1,000,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/23		1,060,440
785,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/21 @ 100, 5.000%, 11/1/22		931,528
1,000,000	Lexington County, SC, School District No. 1, G.O., Series C (SCSDE), 5.000%, 2/1/21		1,180,380
1,000,000	Lexington One School Facilities Corp., Lexington County School District No. 1 Revenue, 5.000%, 12/1/16		1,029,550
940,000	Lexington, SC, Combined Waterworks & Sewer System Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/22		1,094,113
1,000,000	Lugoff-Elgin Water Authority, Refunding Revenue, Series B, Callable 7/1/26 @ 100, 5.000%, 7/1/30		1,227,320
1,460,000	Newberry, SC, Refunding Revenue (AGM), 5.000%, 4/1/24		1,773,301
835,000	Oconee County, SC, Duke Power Co. Project Refunding Revenue, 3.600%, 2/1/17		854,155

Continued

53

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		��  Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$1,140,000	Oconee County, SC, School District, School Improvements, G.O., (SCSDE), Series A, 5.000%, 3/1/24	$	1,421,854
810,000	Orangeburg County, SC, School District No. 5, Refunding G.O. (SCSDE), 5.000%, 3/1/21		948,793
600,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series A3 (Assured Guaranty), 5.000%, 1/1/18		642,612
1,000,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series B, Callable 1/1/22 @ 100, 4.000%, 1/1/23		1,126,050
230,000	Piedmont Municipal Power Agency, Power System, Prerefunded, Refunding Revenue (NATL), OID, 5.375%, 1/1/25		257,648
1,000,000	Renewable Water Resources Sewage System, Refunding Revenue, 4.000%, 1/1/20		1,101,200
1,000,000	Rock Hill, SC, Combined Utility System, Refunding Revenue, Series A, Callable 1/1/22 @ 100 (AGM), 5.000%, 1/1/23		1,187,250
1,000,000	Rock Hill, SC, Hospital Fee Pledge, Refunding Revenue, Callable 4/1/23 @100, 5.000%, 4/1/33		1,132,180
1,090,000	Rock Hill, SC, Ltd. Obligations, Hospitality Fee Pledge, Refunding Revenue, 5.000%, 4/1/21		1,265,708
1,500,000	SCAGO Educational Facilities Corp. for Cherokee School District No. 1, Refunding Revenue, 5.000%, 12/1/24		1,828,155
1,135,000	SCAGO Educational Facilities Corp. for Colleton School District, Refunding Revenue, 5.000%, 12/1/20		1,306,771
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		848,950
790,000	SCAGO Educational Facilities Corp. for Union School District, Refunding Revenue, 5.000%, 12/1/21		927,365
500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/18		551,140
500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/19		566,435
550,000	South Carolina Jobs-Economic Development Authority, AnMed Health Project, Refunding & Improvement Revenue, Series B (Assured Guaranty), 5.000%, 2/1/19		605,853
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		1,188,460
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		1,740,645

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	South Carolina — (continued)
$   580,000	South Carolina Jobs-Economic Development Authority, Furman University, Refunding Revenue, 5.000%, 10/1/24	$	718,330
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health Facilities, Refunding Revenue, Series A (AGM), 5.000%, 8/1/19		554,010
500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health, Refunding & Improvement Facilities Revenue, OID, 5.000%, 8/1/18		538,790
1,150,000	South Carolina Ports Authority, Port, Airport & Marina Improvements Revenue, 5.000%, 7/1/19		1,288,863
335,000	South Carolina State Public Service Authority, Prerefunded, Current Refunding, Revenue Bonds, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/27		372,316
345,000	South Carolina State Public Service Authority, Prerefunded, Current Refunding, Revenue Bonds, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/32		383,430
695,000	South Carolina State Public Service Authority, Unrefunded, Current Refunding, Revenue Bonds, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/27		766,620
670,000	South Carolina State Public Service Authority, Unrefunded, Current Refunding, Revenue Bonds, Series A, Callable 1/1/19 @ 100, 5.000%, 1/1/32		731,030
600,000	Spartanburg Regional Health Services District, Refunding Revenue, Series A, Callable 4/15/18 @ 100, (Assured Guaranty), 5.250%, 4/15/21		650,388
500,000	University of South Carolina, Refunding Revenue, Series A, Callable 5/1/20 @ 100, 5.000%, 5/1/28		568,780
	Total Municipal Bonds (Cost $76,194,143)		79,990,083
Shares
MONEY MARKET FUND — 4.9%
4,140,435	Federated Tax Free Obligations Fund, Institutional Shares, 0.14%(b)		4,140,435
	Total Money Market Fund (Cost $4,140,435)		4,140,435
Total Investments — 99.0% (Cost $80,334,578)			84,130,518
Net Other Assets (Liabilities) — 1.0%			843,433
NET ASSETS — 100.0%		$	84,973,951

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. The maturity date reflected is the final maturity date.

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

Continued

54

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

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.

55

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — 96.8%
	District of Columbia — 1.7%
$1,160,000	Metropolitan Washington Airports Authority, Port, Airport & Marina Improvement Revenue, Series A, Callable 10/1/20 @ 100, 5.000%, 10/1/23	$	1,347,004
625,000	Metropolitan Washington Airports Authority, Refunding Revenue, Series B, Callable 10/1/19 @ 100, 5.000%, 10/1/21		708,237
			2,055,241
	Virginia — 95.1%
1,000,000	Albemarle County, VA, Economic Development Authority, Albemarle County Project, Public Improvements Revenue, 5.000%, 6/1/21		1,183,280
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		2,063,336
2,760,000	Albemarle County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/20		3,188,407
1,000,000	Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21		1,194,830
1,000,000	Arlington County, VA, Industrial Development Authority, VA Hospital Center Arlington, Refunding Revenue, 5.000%, 7/1/18		1,084,550
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		1,233,034
1,145,000	Culpeper County, VA, Economic Development Authority, VA Capital Projects, Refunding Revenue, Callable 6/1/24 @ 100, 4.000%, 6/1/26		1,311,025
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		1,625,462
1,875,000	Fairfax County, VA, Economic Development Authority, Goodwin House Inc., Refunding Revenue, Callable 10/1/17 @ 100, 5.000%, 10/1/27		1,952,963
2,500,000	Fairfax County, VA, Economic Development Authority, Laurel Hill Public Facilities Project, Refunding Revenue, Series A, 5.000%, 6/1/22		3,006,450
1,000,000	Fairfax County, VA, Industrial Development Authority, Inova Health System Project, Refunding Revenue, (AGM-CR), OID, 5.250%, 8/15/19		1,077,910
495,000	Fairfax County, VA, Industrial Development Authority, Inova Health Systems Project, Refunding Revenue, Series C, 5.000%, 5/15/18		538,936
1,455,000	Fairfax County, VA, Public Improvements, Advance Refunding G.O., Series A, Callable 4/1/26 @ 100 (State Aid Withholding), 4.000%, 10/1/26		1,741,227
2,160,000	Fairfax County, VA, Sewer Improvements Revenue, Callable 7/15/21 @ 100, 5.000%, 7/15/22		2,582,517

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$1,000,000	Fredericksburg Economic Development Authority, Mary Washington Healthcare Obligation Group, Refunding Revenue, Callable 6/15/24 @ 100, 5.000%, 6/15/26	$	1,179,820
1,000,000	Hampton, VA, Public Improvements, Refunding G.O., Series A, Callable 1/15/19 @ 100, 5.000%, 1/15/21		1,114,330
1,700,000	Leesburg, VA, Refunding G.O., Callable 1/15/24 @ 100, (State Aid Withholding), 4.000%, 1/15/27		1,950,461
1,000,000	Leesburg, VA, Refunding G.O., Callable 1/15/25 @ 100, (State Aid Withholding), 5.000%, 1/15/27		1,251,500
1,000,000	Loudoun County, VA, Economic Development Authority, Public Improvements Revenue, Callable 12/1/24 @ 100, 5.000%, 12/1/27		1,226,290
1,665,000	Loudoun County, VA, Industrial Development Authority, Refunding Revenue, 4.000%, 12/15/22		1,945,020
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		1,673,557
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		2,892,050
1,315,000	Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, 5.000%, 2/1/18		1,414,545
1,445,000	Montgomery County, VA, Industrial Development Authority, Public Projects, Public Improvements, Revenue, Callable 2/1/18 @ 100, 5.000%, 2/1/24		1,556,092
1,250,000	New River Valley Regional Jail Authority Correctional Facilities Improvement Advance Refunding Revenue, Callable 10/1/26 @ 100, 5.000%, 10/1/27		1,564,900
2,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series A, 4.000%, 7/15/20		2,245,680
1,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series B, 5.250%, 7/1/21		1,206,580
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		1,161,400
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		1,186,540
1,000,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/24		1,196,310
1,465,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/36		1,696,617

Continued

56

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$1,000,000	Norfolk, VA, Water Utility Improvements Revenue, Callable 11/1/18 @ 100, 5.000%, 11/1/23	$	1,106,260
1,000,000	Pittsylvania County, VA, School Improvements G.O., Series B, 5.000%, 2/1/19		1,115,370
1,775,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.375%, 2/1/21		1,999,183
1,160,000	Poquoson, VA, Refunding G.O., (State Aid Withholding), 5.000%, 2/15/21		1,366,944
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		2,057,680
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		1,613,996
1,440,000	Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23		1,632,341
1,055,000	Portsmouth, VA, Refunding G.O., Series D, Callable 7/15/20 @ 100, 5.000%, 7/15/21		1,233,137
1,150,000	Prince William County, VA, County Facilities, Refunding Certificate of Participation, 5.000%, 10/1/21		1,372,111
1,245,000	Rappahannock Regional Jail Authority, Refunding Revenue, Callable 10/1/2025 @ 100, 5.000%, 10/1/26		1,566,695
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 .		2,431,820
2,195,000	Riverside Regional Jail Authority, Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/27		2,715,105
1,000,000	Riverside Regional Jail Authority, Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/30		1,213,110
1,760,000	Riverside, VA, Regional Jail Authority, Refunding Revenue, 5.000%, 7/1/22		2,116,312
1,415,000	Roanoke, VA, Economic Development Authority, Carillion Health System, Remarketing, Refunding Revenue, Series C, (AGM), 5.000%, 7/1/17		1,487,108
885,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/20		981,952
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		1,111,490
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		1,796,495
1,220,000	Spotsylvania County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/22		1,470,332
1,420,000	Spotsylvania County, VA, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/28		1,614,242
2,425,000	Suffolk, VA, Public Improvements, Refunding G.O., Series A, (NATL), 5.000%, 2/1/17		2,514,507

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$1,100,000	Virginia Biotechnology Research Partnership Authority, Constructions Laboratories Project, Refunding Revenue, 5.000%, 9/1/19	$	1,246,355
2,500,000	Virginia College Building Authority, 21st Century College & Equipment, University & College Improvements Revenue, Series A, 5.000%, 2/1/22		3,009,100
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		2,021,320
1,000,000	Virginia College Building Authority, Educational Refunding Revenue, Series A, (State Intercept), 5.000%, 9/1/19		1,135,940
1,805,000	Virginia College Building Authority, Public Higher Education Financing Program, Refunding Revenue, Series B, (State Intercept), 5.000%, 9/1/20		2,107,644
1,065,000	Virginia Commonwealth Transportation Board Refunding Revenue, Series B, 5.000%, 5/15/25		1,357,481
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		2,249,249
1,500,000	Virginia Port Authority Commonwealth Port Fund, Port, Airport & Marina Improvements Revenue, Callable 7/1/20 @ 100, 5.000%, 7/1/28		1,732,770
2,000,000	Virginia Public Building Authority, Public Improvements Revenue, Series A, Callable 8/1/21 @ 100, 5.000%, 8/1/26		2,361,780
2,000,000	Virginia Public School Authority, Refunding Revenue, (State Aid Withholding), 5.000%, 8/1/20		2,333,760
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		1,057,020
1,150,000	Virginia Resources Authority, State Revolving Fund, Refunding Revenue, 5.500%, 10/1/17		1,233,122
1,835,000	Virginia Small Business Financing Authority, Sentara Healthcare Refunding Revenue, 4.000%, 11/1/16		1,871,517
1,255,000	Western Regional Jail Authority, Correctional Facilities Improvement Revenue, Callable 6/1/17 @ 100, (NATL-RE), 4.750%, 6/1/23		1,313,922
1,525,000	Western Regional Jail Authority, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26		1,903,475
700,000	Winchester, VA, Economic Development Authority, Valley Health System Obligated Group, Hospital Refunding Revenue, 5.000%, 1/1/22		828,121

Continued

57

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
	Virginia — (continued)
$920,000	Winchester, VA, Economic Development Authority, Valley Health System Obligated Group, Hospital Refunding Revenue, Series A, Callable 1/1/24 @ 100, 5.000%, 1/1/26	$	1,091,074
			113,615,459
	Total Municipal Bonds (Cost $109,218,167)		115,670,700
Shares
MONEY MARKET FUND — 2.2%
2,656,129	Federated Virginia Municipal Money Market Portfolio, Institutional Shares, 0.010%(a)		2,656,128
	Total Money Market Fund (Cost $2,656,129)		2,656,128
Total Investments — 99.0% (Cost $111,874,296)			118,326,828
Net Other Assets (Liabilities) — 1.0%			1,231,429
NET ASSETS — 100.0%		$	119,558,257

(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.

58

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — 97.3%
$1,060,000	Berkeley County, WV, Building Commission, Judicial Center Project, Refunding Revenue, Callable 9/1/21 @ 100, 4.500%, 9/1/23	$	1,201,786
1,085,000	Berkeley County, WV, Building Commission, Lease Refunding Revenue, Callable 12/1/22 @ 100, 4.000%, 12/1/26		1,199,608
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		1,689,795
765,000	Berkeley County, WV, Public Service Sewer District, Sewer Improvements Revenue, Series A, 5.000%, 3/1/22		767,547
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		724,444
1,090,000	City Of Charles Town, WV, Waterworks & Sewerage System, Water Utility Improvements Revenue, 4.500%, 3/1/36		1,212,505
1,000,000	County Of Ohio, WV, Special District Excise Tax, Refunding Revenue, Series B, 4.375%, 3/1/35		1,015,010
1,215,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, 4.000%, 6/1/19		1,319,855
1,005,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series A, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,177,599
1,495,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,751,751
1,100,000	Fairmont, WV, Waterworks Refunding Revenue, Series D, Callable 7/1/19 @100, (AGM), 4.000%, 7/1/24		1,169,762
2,150,000	Greenbrier County, WV, Board of Education, Public School Improvements G.O., (AGM), 5.000%, 5/1/18		2,335,567
1,505,000	Jefferson County, WV, Board of Education Public School, Refunding G.O., (West Virginia Board Commission), 4.000%, 5/1/19		1,633,768
1,700,000	Marshall University, WV, Refunding Revenue, 5.000%, 5/1/19		1,901,178
1,390,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/26		1,614,666
1,560,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/27		1,812,143
1,000,000	Mason County, WV, Appalachian Power Co., Industrial Improvements Revenue, Series L, 1.625%, 10/1/22(a)		1,005,880
1,545,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., (West Virginia Board Commission), 5.000%, 5/1/20		1,774,046
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		1,192,730

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
$   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	$	797,641
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		1,132,447
915,000	Monongalia County, WV, Building Commission, Health System Obligated Group Refunding Revenue, Callable 7/1/21 @ 100, OID, 6.250%, 7/1/31		1,080,816
2,000,000	Monongalia County, WV, Building Commission, Monongalia Health System Group Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/26		2,399,640
390,000	Ohio County, WV, County Commission, Fort Henry Centre Financing District, Public Improvement, Tax Allocation, Series A, 5.350%, 6/1/17		401,376
1,000,000	Parkersburg, WV, Combined Waterworks & Sewerage System, Refunding Revenue, Series A, Callable 8/1/21 @ 100, (BAM), 4.000%, 8/1/22		1,113,680
1,210,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/23		1,341,467
1,165,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/24		1,283,003
1,000,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 3.000%, 5/1/19		1,061,100
1,655,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 4.000%, 5/1/21		1,873,543
1,285,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, 5.000%, 5/1/22		1,484,329
1,410,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, Callable 5/1/22 @ 100, 5.000%, 5/1/27		1,570,980
2,005,000	Putnam County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 5/1/19		2,190,803
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		1,103,820
1,105,000	School Building Authority of West Virginia, Capital Improvements, Refunding Revenue, Series A, Callable 7/1/17 @ 100 (NATL), 5.000%, 7/1/18		1,165,885
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		1,740,486
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		3,898,579

Continued

59

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
$   500,000	School Building Authority of West Virginia, Lottery Capital Improvements Revenue, Callable 7/1/24 @ 100, Series A, 5.000%, 7/1/27	$	604,665
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		1,521,340
1,675,000	School Building Authority Of West Virginia, School Improvements Revenue, Series A, 5.000%, 7/1/28		2,062,394
1,000,000	School Building Authority of West Virginia, School Improvements Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/30		1,140,690
1,400,000	Shepherd University Board of Governors, Residence Facilities Projects, University & College Improvements, Revenue, (NATL), 5.000%, 6/1/25		1,405,460
500,000	West Virginia Economic Development Authority, Appalachian Power Co. Amos Plant Project, Refunding Revenue, 1.900%, 3/1/40(a)		502,870
1,215,000	West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Series A, 5.000%, 6/1/19		1,363,534
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		3,566,100
3,685,000	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		4,361,455
250,000	West Virginia Economic Development Authority, Department of Environmental Protection Lease, Refunding Revenue, Series B, 4.000%, 11/1/21		284,857
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		1,249,983
1,210,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, 3.000%, 12/15/18		1,273,997
1,890,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, Callable 12/15/18 @ 100, 3.000%, 12/15/19		1,985,256
1,600,000	West Virginia Higher Education Policy Commission, Higher Education Facilities, Refunding Revenue, Series A, 5.000%, 4/1/20		1,833,552
250,000	West Virginia Higher Education Policy Commission, Higher Educational Facilities, Refunding Revenue, Series B, (NATL), 5.000%, 4/1/16		250,000
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		229,950

Principal  Amount		Fair Value
MUNICIPAL BONDS — (continued)
$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	$	2,312,560
515,000	West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, 5.000%, 1/1/24		627,460
630,000	West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, Callable 1/1/24 @ 100, 5.000%, 1/1/26		749,599
1,555,000	West Virginia Housing Development Fund, Refunding Revenue, Series A, 2.750%, 11/1/20		1,626,250
1,890,000	West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A, (AMBAC), 5.375%, 7/1/21		2,144,262
1,320,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL), 5.250%, 5/15/17		1,386,264
2,000,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL), 5.250%, 5/15/19		2,256,040
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		1,195,580
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		2,996,241
1,500,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/20		1,748,610
1,750,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, Callable 10/1/21 @ 100, 5.000%, 10/1/30		2,024,610
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		1,805,155
	Total Municipal Bonds (Cost $91,673,626)		96,647,969

Continued

60

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

March 31, 2016 (Unaudited)

Shares		Fair Value
MONEY MARKET FUND — 1.6%
1,557,140	Federated Tax Free Obligations Fund, Institutional Shares, 0.140%(b)	$	1,557,140
	Total Money Market Fund (Cost $1,557,140)		1,557,140
Total Investments — 98.9% (Cost $93,230,766)			98,205,109
Net Other Assets (Liabilities) — 1.1%			1,125,920
NET ASSETS — 100.0%		$	99,331,029

(a) The interest rate for this variable rate note, which will change periodically,

is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2016. 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.

61

Sterling Capital Diversified Income Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
EQUITY FUNDS — 34.4%
224,160	Advisory Research MLP & Energy Income Fund	$	1,752,930
70,245	First Trust DJ Global Select Dividend Index Fund		1,584,025
250,884	Madison Covered Call & Equity Income Fund		2,267,991
162,915	PowerShares S&P 500 BuyWrite Portfolio		3,297,400
26,818	SPDR S&P Global Dividend ETF		1,632,409
11,511	Vanguard Global ex-U.S. Real Estate ETF		615,954
31,284	Vanguard High Dividend Yield ETF		2,159,847
11,029	Vanguard REIT ETF		924,230
	Total Equity Funds (Cost $15,605,822)		14,234,786
FIXED INCOME FUNDS — 64.0%
120,475	Guggenheim Floating Rate Strategies Fund		3,046,818
250,059	Hotchkis and Wiley High Yield Fund		2,765,653
12,529	iShares 10-20 Year Treasury Bond ETF		1,773,104
16,445	iShares 20+ Year Treasury Bond ETF		2,147,881
342,590	MFS Municipal High Income Fund		2,843,495
215,453	Pioneer ILS Interval Fund		2,257,945
110,444	PowerShares Emerging Markets Sovereign Debt Portfolio		3,125,565
308,570	Principal Preferred Securities Fund		3,076,440
144,757	Shenkman Short Duration High Income Fund		1,420,063
200,201	Sterling Capital Corporate Fund, Institutional Shares(a)		2,028,035

Shares		Fair Value
FIXED INCOME FUNDS — (continued)
198,894	Sterling Capital Securitized Opportunities Fund, Institutional Shares(a)	$	1,988,940
	Total Fixed Income Funds (Cost $26,623,446)		26,473,939
MONEY MARKET FUND — 1.8%
726,690	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(b)		726,690
	Total Money Market Fund (Cost $726,690)		726,690
Total Investments — 100.2% (Cost $42,955,958)			41,435,415
Net Other Assets (Liabilities) — (0.2)%			(76,072	)
NET ASSETS — 100.0%		$	41,359,343

(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.

ETF — Exchange Traded Fund

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

62

Sterling Capital Strategic Allocation Balanced Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
EQUITY FUNDS — 66.4%
1,007,504	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	9,299,259
269,243	Sterling Capital Equity Income Fund, Institutional Shares(a)		4,625,594
422,064	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		3,296,321
209,747	Sterling Capital Special Opportunities Fund, Institutional Shares(a)(b)		4,700,423
	Total Equity Funds (Cost $22,704,117)		21,921,597
FIXED INCOME FUND — 32.4%
1,007,070	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		10,674,939
	Total Fixed Income Fund (Cost $10,484,161)		10,674,939
MONEY MARKET FUND — 1.1%
370,884	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)		370,884
	Total Money Market Fund (Cost $370,884)		370,884
Total Investments — 99.9% (Cost $33,559,162)			32,967,420
Net Other Assets (Liabilities) — 0.1%			22,008
NET ASSETS — 100.0%		$	32,989,428

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

(b) Represents non-income producing security.

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

See accompanying Notes to the Financial Statements.

63

Sterling Capital Strategic Allocation Growth Fund

Schedule of Portfolio Investments

March 31, 2016 (Unaudited)

Shares		Fair Value
EQUITY FUNDS — 81.5%
866,820	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	8,000,745
235,671	Sterling Capital Equity Income Fund, Institutional Shares(a)		4,048,821
358,437	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		2,799,395
182,297	Sterling Capital Special Opportunities Fund, Institutional Shares(a)(b)		4,085,281
	Total Equity Funds (Cost $19,469,920)		18,934,242
FIXED INCOME FUND — 17.1%
374,033	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		3,964,751
	Total Fixed Income Fund (Cost $4,004,261)		3,964,751
MONEY MARKET FUND — 1.4%
318,670	Federated Treasury Obligations Fund, Institutional Shares, 0.170%(c)		318,670
	Total Money Market Fund (Cost $318,670)		318,670
Total Investments — 100.0% (Cost $23,792,851)			23,217,663
Net Other Assets (Liabilities) — 0.0%			7,098
NET ASSETS — 100.0%		$	23,224,761

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

(b) Represents non-income producing security.

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

See accompanying Notes to the Financial Statements.

64

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2016 (Unaudited)

Assets:		Sterling Capital Behavioral Large Cap Value Equity Fund				Sterling Capital Mid Value Fund
Investments at fair value (a)			$	277,045,955			$	611,730,576
Cash				672				2,774
Cash held at broker for securities sold short				—				—
Foreign currency, at value				—				—
Interest and dividends receivable				183,389				1,266,703
Receivable for investments sold				—				7,134,684
Receivable for capital shares issued				397,542				1,750,553
Prepaid and other expenses				38,764				53,392
Total Assets				277,666,322				621,938,682
Liabilities:
Call options written (premiums received $ — , $ — , $ — , $755,912, $519,914, $7,135, $ — and $ — , respectively)				—				—
Securities sold short, at value (proceeds $ — , $ — , $ — , $ — , $ — , $19,926,098, $ — and $ — , respectively)				—				—
Distributions payable				—				—
Payable for investments purchased				—				—
Payable for capital shares redeemed				58,219				817,738
Payable for dividends on short sales				—				—
Payable to broker for service fee on short sales				—				—
Accrued expenses and other payables:
Investment advisory fees				124,758				359,320
Accounting out-of-pocket fees				2,330				3,383
Administration fees				20,026				44,226
Audit fees				11,987				20,744
Compliance service fees				586				1,509
Distribution (12b-1) fees				7,721				11,557
Trustee fees				143				898
Custodian fees				3,526				9,932
Printing fees				13,855				29,593
Transfer agent fees				20,680				85,345
Other fees and liabilities				—				—
Total Liabilities				263,831				1,384,245
Net Assets			$	277,402,491			$	620,554,437
Net Assets Consist of:
Capital			$	281,092,344			$	572,888,187
Undistributed (distributions in excess of) net investment income (loss)				317,447				1,438,623
Accumulated realized gain (loss)				(23,431,526	)			4,341,068
Net unrealized appreciation (depreciation)				19,424,226				41,886,559
Net Assets			$	277,402,491			$	620,554,437
Net Assets
Class A Shares			$	31,037,849			$	32,136,037
Class B Shares				364,359				468,414
Class C Shares				1,080,385				5,548,237
Institutional Shares	��			244,919,898				582,401,552
Class R Shares				—				197
Total			$	277,402,491			$	620,554,437
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares				1,812,259				2,034,860
Class B Shares				21,627				32,465
Class C Shares				64,867				386,861
Institutional Shares				14,222,312				36,464,933
Class R Shares				—				13
Total				16,121,065				38,919,132
Net Asset Value
Class A Shares - redemption price per share			$	17.13			$	15.79
Class B Shares - offering price per share*			$	16.85			$	14.43
Class C Shares - offering price per share*			$	16.66			$	14.34
Institutional Shares			$	17.22			$	15.97
Class R Shares			$	—			$	15.38	**
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			$	18.18			$	16.75
(a) Investments at cost			$	257,621,729			$	569,844,017

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

** The Sterling Capital Mid Value Fund and Sterling Capital Behavioral Small Cap Value Equity Fund net asset value for Class R Shares is calculated using unrounded net assets of $197.37 and $179.25 divided by the unrounded shares of 12.834 and 12.544, respectively.

See accompanying Notes to the Financial Statements.

65

    XXUPDATEXXX

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
	$	151,647,791			$	1,025,239,706			$	1,623,147,679			$	41,694,817			$	17,869,215			$	47,445,908
		397				5,150				10,705				2,200,542				53				6,800
		—				—				—				19,030,541				—				—
		—				—				—				—				26,637				—
		414,398				1,119,510				3,562,644				25,212				117,198				235,641
		—				1,086,452				3,273,047				2,832,709				—				—
		287,670				12,205,221				4,099,578				726,086				25				276,791
		30,743				82,259				100,447				31,792				9,593				9,071
		152,380,999				1,039,738,298				1,634,194,100				66,541,699				18,022,721				47,974,211
		—				240,600				828,050				7,009				—				—
		—				—				—				19,540,440				—				—
		—				—				1,683				—				—				3,688
		—				189,917				339,336				2,277,892				—				656,421
		3,891				1,049,773				3,897,137				295,833				—				20,683
		—				—				—				14,694				—				—
		—				—				—				542				—				—
		75,447				562,934				942,209				55,763				5,254				2,379
		2,229				4,812				7,615				3,507				8,759				5,608
		10,840				72,757				116,564				3,221				1,299				3,439
		5,977				42,229				68,856				2,859				1,147				1,998
		275				1,966				3,549				211				45				91
		2,229				205,765				327,206				341				93				2,164
		74				666				1,343				—				24				—
		3,343				11,589				22,531				1,514				2,220				622
		6,702				44,185				67,646				—				1,130				2,318
		13,390				102,899				281,446				11,382				1,395				5,508
		—				—				—				3,022				—				—
		124,397				2,530,092				6,905,171				22,218,230				21,366				704,919
	$	152,256,602			$	1,037,208,206			$	1,627,288,929			$	44,323,469			$	18,001,355			$	47,269,292
	$	142,337,248			$	759,619,008			$	1,346,228,109			$	71,927,953			$	19,405,051			$	48,122,226
		600,726				1,298,828				699,122				(486,326	)			63,708				(163,149	)
		(3,232,027	)			20,924,155				(27,040,567	)			(23,351,030	)			(1,403,182	)			(344,036	)
		12,550,655				255,366,215				307,402,265				(3,767,128	)			(64,222	)			(345,749	)
	$	152,256,602			$	1,037,208,206			$	1,627,288,929			$	44,323,469			$	18,001,355			$	47,269,292
	$	8,624,695			$	322,379,231			$	449,640,627			$	594,200			$	349,596			$	7,687,068
		143,120				3,387,147				2,832,289				—				—				—
		361,590				169,484,141				277,526,150				248,484				28,369				—
		143,127,018				541,830,810				895,244,502				43,480,785				17,623,390				39,582,224
		179				126,877				2,045,361				—				—				—
	$	152,256,602			$	1,037,208,206			$	1,627,288,929			$	44,323,469			$	18,001,355			$	47,269,292
		601,620				14,993,531				26,239,503				76,531				37,936				782,164
		10,311				182,438				165,401				—				—				—
		26,102				9,120,151				16,338,867				32,548				3,085				—
		9,907,201				24,172,686				52,116,215				5,565,619				1,909,689				4,028,853
		13				5,814				120,113				—				—				—
		10,545,247				48,474,620				94,980,099				5,674,698				1,950,710				4,811,017
	$	14.34			$	21.50			$	17.14			$	7.76			$	9.22			$	9.83
	$	13.88			$	18.57			$	17.12			$	—			$	—			$	—
	$	13.85			$	18.58			$	16.99			$	7.63			$	9.19			$	—
	$	14.45			$	22.42			$	17.18			$	7.81			$	9.23			$	9.82
	$	14.29	**		$	21.82			$	17.03			$	—			$	—			$	—
		5.75	%			5.75	%			5.75	%			5.75	%			5.75	%			0.50	%
	$	15.20			$	22.81			$	18.19			$	8.23			$	9.78			$	9.88
	$	139,097,136			$	770,388,803			$	1,315,437,278			$	45,847,729			$	17,935,173			$	47,791,657

66

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2016 (Unaudited)

Assets:	Sterling Capital Short Duration Bond Fund				Sterling Capital Intermediate U.S. Government Fund
Investments at fair value (a)		$	85,042,219			$	29,700,770
Cash			—				—
Interest and dividends receivable			521,652				136,090
Receivable for investments sold			1,536,459				—
Receivable for capital shares issued			82,276				90,046
Prepaid expenses			16,739				9,680
Total Assets			87,199,345				29,936,586
Liabilities:
Distributions payable			133,368				27,201
Payable for investments purchased			3,166,547				—
Payable for capital shares redeemed			24,969				82,522
Accrued expenses and other payables:
Investment advisory fees			13,977				7,346
Administration fees			6,023				2,186
Compliance service fees			177				63
Distribution (12b-1) fees			3,505				2,535
Trustee fees			41				—
Other fees			22,834				6,285
Total Liabilities			3,371,441				128,138
Net Assets		$	83,827,904			$	29,808,448
Net Assets Consist of:
Capital		$	90,868,400			$	36,171,899
Undistributed (distributions in excess of) net investment income			(631,558	)			114,515
Accumulated realized gain (loss)			(5,737,171	)			(7,300,319	)
Net unrealized appreciation (depreciation)			(671,767	)			822,353
Net Assets		$	83,827,904			$	29,808,448
Net Assets
Class A Shares		$	7,656,202			$	7,468,208
Class B Shares			—				124,260
Class C Shares			2,172,192				940,976
Institutional Shares			73,999,510				21,275,004
Class R Shares			—				—
Total		$	83,827,904			$	29,808,448
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			869,749				729,366
Class B Shares			—				12,180
Class C Shares			246,846				92,060
Institutional Shares			8,406,695				2,075,652
Class R Shares			—				—
Total			9,523,290				2,909,258
Net Asset Value
Class A Shares - redemption price per share		$	8.80			$	10.24
Class B Shares - offering price per share*		$	—			$	10.20
Class C Shares - offering price per share*		$	8.80			$	10.22
Institutional Shares		$	8.80			$	10.25
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		$	8.98			$	10.45
(a) Investments at cost		$	85,713,986			$	28,878,417

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

See accompanying Notes to the Financial Statements.

67

    XXUPDATEXXX

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
	$	679,459,559			$	65,533,532			$	48,406,425			$	12,275,050			$	34,576,511
		1,398				—				—				12				19
		4,550,829				735,626				147,420				156,335				360,895
		—				—				537,565				—				—
		3,227,572				161,909				25,515				64,538				32,000
		34,837				7,122				15,615				2,074				7,808
		687,274,195				66,438,189				49,132,540				12,498,009				34,977,233
		672,449				527				3				15,680				31,841
		4,608,264				1,248,957				1,434,170				—				—
		716,886				270,942				60,458				51,786				10,822
		153,225				18,786				12,230				3,679				10,471
		49,157				4,622				3,399				907				2,579
		1,272				121				91				28				71
		18,433				109				57				911				1,885
		—  24				79				—				2
		107,361				15,012				10,841				2,871				6,863
		6,327,047				1,559,100				1,521,328				75,862				64,534
	$	680,947,148			$	64,879,089			$	47,611,212			$	12,422,147			$	34,912,699
	$	685,795,367			$	64,825,598			$	48,777,884			$	11,489,636			$	33,039,804
		(1,439,491	)			(216	)			(91,034	)			12,234				4,668
		(11,131,283	)			(595,435	)			(1,679,367	)			165,820				106,363
		7,722,555				649,142				603,729				754,457				1,761,864
	$	680,947,148			$	64,879,089			$	47,611,212			$	12,422,147			$	34,912,699
	$	61,403,457			$	338,215			$	123,202			$	4,244,436			$	6,176,626
		683,266				—				—				—				—
		5,985,019				47,109				39,296				20,017				672,622
		612,870,192				64,493,765				47,448,714				8,157,694				28,063,451
		5,214				—				—				—				—
	$	680,947,148			$	64,879,089			$	47,611,212			$	12,422,147			$	34,912,699
		5,793,601				33,387				12,333				401,096				548,623
		64,405				—				—				—				—
		563,866				4,658				3,937				1,891				59,727
		57,799,693				6,369,330				4,745,323				771,992				2,488,703
		494				—				—				—				—
		64,222,059				6,407,375				4,761,593				1,174,979				3,097,053
	$	10.60			$	10.13			$	9.99			$	10.58			$	11.26
	$	10.61			$	—			$	—			$	—			$	—
	$	10.61			$	10.11			$	9.98			$	10.59			$	11.26
	$	10.60			$	10.13			$	10.00			$	10.57			$	11.28
	$	10.55			$	—			$	—			$	—			$	—
		5.75	%			2.00	%			2.00	%			2.00	%			2.00	%
	$	11.25			$	10.34			$	10.19			$	10.80			$	11.49
	$	671,737,004			$	64,884,390			$	47,802,696			$	11,520,593			$	32,814,647

68

Sterling Capital Funds

Statements of Assets and Liabilities

March 31, 2016 (Unaudited)

Assets:	Sterling Capital North Carolina Intermediate Tax-Free Fund				Sterling Capital South Carolina Intermediate Tax-Free Fund
Investments at fair value - unaffiliated (a)		$	198,492,836			$	84,130,518
Investments at fair value - affiliated (b)			—				—
Cash			55				148
Interest and dividends receivable - unaffiliated			2,713,560				1,020,061
Dividends receivable - affiliated			—				—
Receivable for capital shares issued			1,170,246				25,272
Prepaid and other expenses			9,681				4,780
Total Assets			202,386,378				85,180,779
Liabilities:
Distributions payable			238,700				82,672
Payable for investments purchased			1,449,248				—
Payable for capital shares redeemed			216,076				73,979
Accrued expenses and other payables:
Investment advisory fees			58,642				24,638
Administration fees			14,427				6,066
Compliance service fees			382				139
Distribution (12b-1) fees			14,357				5,131
Trustee fees			14				—
Transfer agent fees			14,958				5,144
Other fees			22,720				9,059
Total Liabilities			2,029,524				206,828
Net Assets		$	200,356,854			$	84,973,951
Net Assets Consist of:
Capital		$	188,067,584			$	81,140,826
Undistributed net investment income (loss)			84,852				27,146
Accumulated realized gain (loss)			357,859				10,039
Net unrealized appreciation			11,846,559				3,795,940
Net Assets		$	200,356,854			$	84,973,951
Net Assets
Class A Shares		$	49,289,344			$	17,886,943
Class B Shares			—				—
Class C Shares			5,281,175				1,807,545
Institutional Shares			145,786,335				65,279,463
Total		$	200,356,854			$	84,973,951
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			4,458,791				1,587,675
Class B Shares			—				—
Class C Shares			478,124				160,463
Institutional Shares			13,188,811				5,833,710
Total			18,125,726				7,581,848
Net Asset Value
Class A Shares - redemption price per share		$	11.05			$	11.27
Class B Shares - offering price per share*		$	—			$	—
Class C Shares - offering price per share*		$	11.05			$	11.26
Institutional Shares.		$	11.05			$	11.19
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		$	11.29			$	11.49
Investments at cost:
(a) Investments at cost - unaffiliated		$	186,646,277			$	80,334,578
(b) Investments at cost - affiliated		$	—			$	—

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

See accompanying Notes to the Financial Statements.

69

    XXUPDATEXXX

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
	$	118,326,828			$	98,205,109			$	37,418,440			$	370,884			$	318,670
		—				—				4,016,975				32,596,536				22,898,993
		24				71				56				66				35
		1,254,319				1,378,045				—				—				—
		—				—				46,399				30,914				11,299
		260,525				139,293				49,629				6,689				1,197
		8,375				8,936				9,702				8,717				7,492
		119,850,071				99,731,454				41,541,201				33,013,806				23,237,686
		127,803				111,104				8,768				1,416				302
		—				—				46,370				—				—
		89,103				226,879				103,618				8,430				4,021
		35,053				29,320				8,728				—				—
		8,637				7,264				3,505				—				—
		227				194				67				78				57
		8,848				8,086				4,151				7,776				5,356
		—				—				61				73				75
		8,556				5,788				2,970				3,365				2,309
		13,587				11,790				3,620				3,240				805
		291,814				400,425				181,858				24,378				12,925
	$	119,558,257			$	99,331,029			$	41,359,343			$	32,989,428			$	23,224,761
	$	112,788,646			$	93,881,460			$	48,377,916			$	37,914,320			$	30,502,830
		62,661				69,038				1,311				(107,409	)			(94,622	)
		254,418				406,188				(5,499,341	)			(4,225,741	)			(6,608,259	)
		6,452,532				4,974,343				(1,520,543	)			(591,742	)			(575,188	)
	$	119,558,257			$	99,331,029			$	41,359,343			$	32,989,428			$	23,224,761
	$	36,329,571			$	36,225,404			$	14,477,525			$	31,586,169			$	21,552,403
		—				—				320,867				543,635				550,113
		1,369,206				574,938				1,048,993				783,084				424,775
		81,859,480				62,530,687				25,511,958				76,540				697,470
	$	119,558,257			$	99,331,029			$	41,359,343			$	32,989,428			$	23,224,761
		3,004,372				3,543,932				1,409,528				3,043,717				2,142,472
		—				—				31,177				53,385				56,224
		113,250				56,230				102,935				76,877				43,620
		6,771,295				6,110,561				2,455,808				7,322				69,183
		9,888,917				9,710,723				3,999,448				3,181,301				2,311,499
	$	12.09			$	10.22			$	10.27			$	10.38			$	10.06
	$	—			$	—			$	10.29			$	10.18			$	9.78
	$	12.09			$	10.22			$	10.19			$	10.19			$	9.74
	$	12.09			$	10.23			$	10.39			$	10.45			$	10.08
		2.00	%			2.00	%			5.75	%			5.75	%			5.75	%
	$	12.35			$	10.43			$	10.90			$	11.01			$	10.67
	$	111,874,296			$	93,230,766			$	38,943,396			$	370,884			$	318,670
	$	—			$	—			$	4,012,562			$	33,188,278			$	23,474,181

70

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2016 (Unaudited)

	Sterling Capital Behavioral Large Cap Value Equity Fund				Sterling Capital Mid Value Fund
Investment Income:
Interest income		$	—			$	—
Dividend income			3,585,165				4,944,532
Foreign tax withholding			(1,548	)			—
Total investment income			3,583,617				4,944,532
Expenses:
Investment advisory fees (See Note 5)			954,312				2,144,314
Administration fees (See Note 5)			121,383				272,885
Distribution fees - Class A Shares			39,501				41,650
Distribution fees - Class B Shares			2,375				3,063
Distribution fees - Class C Shares			4,936				26,932
Distribution fees - Class R Shares			—				—
Compliance service fees (See Note 5)			1,554				3,669
Trustee fees			12,512				29,638
Accounting and out-of-pocket fees			4,725				6,447
Audit fees			12,185				28,315
Custodian fees			6,736				16,947
Fund accounting fees (See Note 5)			10,225				22,975
Interest expense (See Note 7)			—				106
Legal fees			14,204				34,227
Offering costs			—				—
Printing fees			15,673				36,437
Registration fees			24,460				31,746
Transfer agent fees (See Note 5)			50,779				262,340
Other fees			8,711				20,107
Total expenses excluding dividend expense and service fee on securities sold short			1,284,271				2,981,798
Dividend expense			—				—
Service fee on securities sold short			—				—
Total expenses before waivers			1,284,271				2,981,798
Less expenses waived by the Investment Advisor (See Note 5)			(162,311	)			—
Net expenses			1,121,960				2,981,798
Net investment income (loss)			2,461,657				1,962,734
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments			(2,807,269	)			25,873,615
Written options			—				—
Foreign currency transactions			—				—
Short sales			—				—
Change in unrealized appreciation/depreciation on:
Investments			10,751,788				15,318,069
Written options			—				—
Foreign currency transactions			—				—
Short sales			—				—
Total realized and unrealized gain (loss)			7,944,519				41,191,684
Change in net assets from operations		$	10,406,176			$	43,154,418

See accompanying Notes to the Financial Statements.

71

    XXUPDATEXXX

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
	$	—			$	—			$	—			$	134,545			$	—			$	338,826
		1,890,888				7,013,084				25,146,975				442,314				224,553				4,614
		(1,433	)			—				(267,210	)			(8,281	)			(14,770	)			—
		1,889,455				7,013,084				24,879,765				568,578				209,783				343,440
		516,818				3,615,737				5,477,982				517,092				74,576				46,160
		61,260				429,052				697,330				30,822				8,308				20,541
		14,122				360,642				559,991				1,232				546				12,699
		879				19,901				17,086				—				—				—
		1,728				774,268				1,387,477				1,615				142				—
		—				231				5,071				—				—				—
		759				5,398				9,095				489				113				257
		6,201				44,107				73,716				4,262				891				2,103
		6,337				8,578				13,091				6,966				15,108				11,342
		6,071				42,892				70,778				3,813				797				2,043
		3,327				23,281				41,190				2,415				6,121				1,198
		5,169				36,161				58,693				27,571				699				1,731
		—				372				—				1,396				26				—
		7,063				50,593				85,811				8,104				1,041				3,254
		—				—				—				—				2,337				—
		7,843				55,421				91,361				5,482				1,068				2,622
		23,726				39,652				42,999				20,213				4,825				14,619
		33,406				305,178				855,586				33,637				3,219				20,119
		5,071				28,874				48,625				3,514				4,171				1,850
		699,780				5,840,338				9,535,882				668,623				123,988				140,538
		—				—				—				195,218				—				—
		—				—				—				197,165				—				—
		699,780				5,840,338				9,535,882				1,061,006				123,988				140,538
		(34,961	)			(126,082	)			—				(6,102	)			(22,543	)			(16,926	)
		664,819				5,714,256				9,535,882				1,054,904				101,445				123,612
		1,224,636				1,298,828				15,343,883				(486,326	)			108,338				219,828
		(797,250	)			25,970,054				(23,873,610	)			(22,297,185	)			(411,430	)			(6,990	)
		—				(142,943	)			1,363,168				45,676				—				—
		—				—				—				1,536				(11,849	)			—
		—				—				—				1,541,131				—				—
		3,678,229				50,124,446				108,011,684				15,834,176				800,403				(11,698	)
		—				184,929				(556,381	)			126				—				—
		—				—				—				12				1,688				—
		—				—				—				(2,838,072	)			—				—
		2,880,979				76,136,486				84,944,861				(7,712,600	)			378,812				(18,688	)
	$	4,105,615			$	77,435,314			$	100,288,744			$	(8,198,926	)		$	487,150			$	201,140

72

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2016 (Unaudited)

	Sterling Capital Short Duration Bond Fund				Sterling Capital Intermediate U.S. Government Fund
Investment Income:
Interest income		$	807,460			$	284,233
Dividend income			16,791				226
Total investment income			824,251				284,459
Expenses:
Investment advisory fees (See Note 5)			126,468				64,222
Administration fees (See Note 5)			37,537				13,299
Distribution fees - Class A Shares			9,849				9,369
Distribution fees - Class B Shares			—				755
Distribution fees - Class C Shares			11,888				4,298
Distribution fees - Class R Shares			—				—
Compliance service fees (See Note 5)			482				170
Trustee fees			4,072				1,391
Accounting and out-of-pocket fees			15,209				4,182
Audit fees			3,867				1,336
Custodian fees			2,213				844
Fund accounting fees (See Note 5)			3,161				1,120
Legal fees			6,181				2,130
Printing fees			4,992				1,725
Registration fees			17,640				11,574
Transfer agent fees (See Note 5)			16,858				6,489
Other fees			3,311				1,894
Total expenses before waivers			263,728				124,798
Less expenses waived by the Investment Advisor (See Note 5)			(19,161	)			(18,017	)
Net expenses			244,567				106,781
Net investment income			579,684				177,678
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments			(124,861	)			35,492
Distributions from unaffiliated funds			—				—
Change in unrealized appreciation/depreciation on investments			199,917				210,016
Total realized and unrealized gain			75,056				245,508
Change in net assets from operations		$	654,740			$	423,186

See accompanying Notes to the Financial Statements.

73

    XXUPDATEXXX

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
	$	11,217,849			$	1,147,484			$	666,670			$	218,908			$	469,892
		173,078				28,509				322				31				49
		11,390,927				1,175,993				666,992				218,939				469,941
		1,229,663				111,301				83,563				30,346				80,544
		295,727				28,298				21,248				6,004				15,918
		68,305				430				2,720				5,454				8,076
		4,167				—				—				—				—
		30,429				84				194				99				3,389
		13				—				—				—				—
		3,649				349				263				77				200
		31,069				2,988				2,225				652				1,696
		31,962				10,728				12,686				3,373				4,518
		29,634				2,865				2,165				617				1,615
		15,944				1,575				1,176				434				965
		24,926				2,385				1,791				506				1,343
		49,554				4,803				3,667				742				1,923
		38,284				3,692				2,810				792				2,079
		24,538				9,902				10,418				6,595				7,323
		149,808				20,541				9,749				2,645				7,616
		19,213				2,512				2,093				1,184				1,802
		2,046,885				202,453				156,768				59,520				139,007
		(332,341	)			—				(9,550	)			(8,190	)			(17,899	)
		1,714,544				202,453				147,218				51,330				121,108
		9,676,383				973,540				519,774				167,609				348,833
		(1,490,343	)			(461,545	)			68,790				165,457				111,566
		—				—				—				65				92
		7,540,222				642,947				44,536				(59,196	)			386,824
		6,049,879				181,402				113,326				106,326				498,482
	$	15,726,262			$	1,154,942			$	633,100			$	273,935			$	847,315

74

Sterling Capital Funds

Statements of Operations

For the Six Months Ended March 31, 2016 (Unaudited)

	Sterling Capital North Carolina Intermediate Tax-Free Fund				Sterling Capital South Carolina Intermediate Tax-Free Fund
Investment Income:
Interest income		$	2,913,201			$	1,054,205
Dividend income - unaffiliated			255				249
Dividend income - affiliated			—				—
Total investment income			2,913,456				1,054,454
Expenses:
Investment advisory fees (See Note 5)			441,829				177,639
Administration fees (See Note 5)			87,375				35,115
Distribution fees - Class A Shares			58,237				21,463
Distribution fees - Class B Shares			—				—
Distribution fees - Class C Shares			20,511				7,617
Compliance service fees (See Note 5)			1,088				421
Trustee fees			9,156				3,609
Accounting and out-of-pocket fees			10,730				6,409
Audit fees			8,790				3,478
Custodian fees			4,781				1,849
Fund accounting fees (See Note 5)			7,364				2,961
Legal fees			10,356				4,082
Printing fees			11,358				4,505
Registration fees			6,343				6,722
Transfer agent fees (See Note 5)			37,683				15,100
Other fees			6,237				2,873
Total expenses before waivers			721,838				293,843
Less expenses waived by the Investment Advisor (See Note 5)			(98,184	)			(39,475	)
Net expenses			623,654				254,368
Net investment income			2,289,802				800,086
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments - unaffiliated			336,446				9,748
Investments - affiliated			—				—
Distributions from unaffiliated funds			—				357
Distributions from affiliated funds			—				—
Change in unrealized appreciation/depreciation on investments			2,183,873				1,150,403
Total realized and unrealized gain			2,520,319				1,160,508
Change in net assets from operations		$	4,810,121			$	1,960,594

See accompanying Notes to the Financial Statements.

75

    XXUPDATEXXX

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
	$	1,672,104			$	1,449,116			$	—			$	—			$	—
		90				162				890,336				186				134
		—				—				10,339				477,192				320,410
		1,672,194				1,449,278				900,675				477,378				320,544
		262,683				225,292				53,425				42,889				30,459
		51,924				44,599				6,406				—				—
		45,623				44,417				17,857				40,913				27,732
		—				—				2,145				3,672				3,822
		6,416				2,263				4,842				3,805				2,263
		646				555				217				198				143
		5,438				4,711				1,987				1,619				1,165
		7,578				6,938				1,420				1,359				1,289
		5,203				4,494				1,884				1,510				1,075
		2,898				2,510				953				983				725
		4,378				3,755				1,602				1,287				914
		6,169				5,360				2,285				1,863				1,340
		6,723				5,767				2,488				1,988				1,436
		7,912				7,502				11,922				7,777				8,875
		21,836				19,471				9,249				7,637				5,408
		4,021				3,595				2,132				2,055				1,777
		439,448				381,229				120,814				119,555				88,423
		(58,375	)			(50,065	)			(36,566	)			(42,889	)			(30,459	)
		381,073				331,164				84,248				76,666				57,964
		1,291,121				1,118,114				816,427				400,712				262,580
		297,696				448,860				(461,444	)			183				29
		—				—				(64,334	)			(158,171	)			(86,621	)
		369				347				36,125				—				—
		—				—				61,493				1,032,494				913,682
		1,176,006				868,002				749,531				(559,666	)			(516,367	)
		1,474,071				1,317,209				321,371				314,840				310,723
	$	2,765,192			$	2,435,323			$	1,137,798			$	715,552			$	573,303

76

Sterling Capital Funds

Statements of Changes in Net Assets

	Sterling Capital Behavioral Large Cap Value Equity Fund
	For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
From Investment Activities:
Operations:
Net investment income (loss)	$	2,461,657		$	4,100,885
Net realized gain (loss)		(2,807,269	)		20,236,440
Change in unrealized appreciation/depreciation		10,751,788			(30,556,150	)
Change in net assets from operations		10,406,176			(6,218,825	)
Distributions to Class A Shareholders From:
Net investment income		(235,071	)		(462,866	)
Net realized gains		—			—
Distributions to Class B Shareholders From:
Net investment income		(1,510	)		(3,997	)
Net realized gains		—			—
Distributions to Class C Shareholders From:
Net investment income		(4,952	)		(5,366	)
Net realized gains		—			—
Distributions to Institutional Class Shareholders From:
Net investment income		(2,079,749	)		(3,834,713	)
Net realized gains		—			—
Distributions to Class R Shareholders From:
Net investment income		—			—
Net realized gains		—			—
Change in net assets from shareholder distributions		(2,321,282	)		(4,306,942	)
Capital Transactions:
Change in net assets from capital transactions		15,416,013			(6,300,271	)
Change in net assets		23,500,907			(16,826,038	)
Net Assets:
Beginning of period		253,901,584			270,727,622
End of period	$	277,402,491		$	253,901,584
Undistributed net investment income	$	317,447		$	177,072

See accompanying Notes to the Financial Statements.

77

    XXUPDATEXXX

Sterling Capital Mid Value Fund						Sterling Capital Behavioral Small Cap Value Equity Fund						Sterling Capital Special Opportunities Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	1,962,734		$	3,929,543		$	1,224,636		$	1,904,206		$	1,298,828		$	(2,092,663	)
	25,873,615			108,655,777			(797,250	)		1,320,822			25,827,111			138,968,722
	15,318,069			(109,726,999	)		3,678,229			321,112			50,309,375			(96,092,383	)
	43,154,418			2,858,321			4,105,615			3,546,140			77,435,314			40,783,676
	—			(247,243	)		(70,344	)		(164,833	)		—			—
	(6,361,505	)		(2,510,139	)		(6,036	)		(294,991	)		(40,021,707	)		(19,330,945	)
	—			—			(548	)		(490	)		—			—
	(129,103	)		(79,254	)		(86	)		(9,790	)		(650,328	)		(411,768	)
	—			(4,312	)		(1,311	)		(887	)		—			—
	(1,066,172	)		(313,445	)		(154	)		(9,874	)		(24,141,758	)		(7,118,548	)
	(700,298	)		(5,881,265	)		(706,523	)		(2,133,120	)		—			—
	(103,244,328	)		(41,702,231	)		(53,644	)		(3,571,652	)		(70,796,454	)		(26,427,999	)
	—			(1	)		(1	)		(2	)		—			—
	(35	)		(12	)		—			(5	)		(13,393	)		(2,187	)
	(111,501,441	)		(50,737,902	)		(838,647	)		(6,185,644	)		(135,623,640	)		(53,291,447	)
	59,575,697			(66,636,304	)		23,438,296			(3,137,288	)		191,049,691			(150,495,703	)
	(8,771,326	)		(114,515,885	)		26,705,264			(5,776,792	)		132,861,365			(163,003,474	)
	629,325,763			743,841,648			125,551,338			131,328,130			904,346,841			1,067,350,315
$	620,554,437		$	629,325,763		$	152,256,602		$	125,551,338		$	1,037,208,206		$	904,346,841
$	1,438,623		$	176,187		$	600,726		$	154,817		$	1,298,828		$	—

78

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
From Investment Activities:
Operations:
Net investment income (loss)		$	15,343,883			$	30,577,629
Net realized gain (loss)			(22,510,442	)			95,927,171
Change in unrealized appreciation/depreciation			107,455,303				(184,331,736	)
Change in net assets from operations			100,288,744				(57,826,936	)
Distributions to Class A Shareholders From:
Net investment income			(4,732,083	)			(9,860,486	)
Net realized gains			(27,622,612	)			(17,395,887	)
Distributions to Class B Shareholders From:
Net investment income			(20,681	)			(50,462	)
Net realized gains			(220,993	)			(186,425	)
Distributions to Class C Shareholders From:
Net investment income			(2,023,033	)			(3,076,571	)
Net realized gains			(17,598,263	)			(8,563,173	)
Distributions to Institutional Class Shareholders From:
Net investment income			(10,101,909	)			(18,447,955	)
Net realized gains			(50,804,852	)			(27,425,380	)
Distributions to Class R Shareholders From:
Net investment income			(19,595	)			(29,820	)
Net realized gains			(126,200	)			(48,537	)
Change in net assets from shareholder distributions			(113,270,221	)			(85,084,696	)
Capital Transactions:
Change in net assets from capital transactions			68,952,271				(363,515,354	)
Change in net assets			55,970,794				(506,426,986	)
Net Assets:
Beginning of period			1,571,318,135				2,077,745,121
End of period		$	1,627,288,929			$	1,571,318,135
Undistributed (distributions in excess of) net investment income (loss)		$	699,122			$	2,252,541

* Commencement of operations.

See accompanying Notes to the Financial Statements.

79

    XXUPDATEXXX

Sterling Capital Long/Short Equity Fund Sterling Capital Behavioral International Equity Fund Sterling Capital Ultra Short Bond Fund

For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015				For the Six Months Ended March 31, 2016 (Unaudited)				For the Period November 28, 2014* to September 30, 2015				For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
	$	(486,326	)		$	(1,773,049	)		$	108,338			$	537,691			$	219,828			$	299,908
		(20,708,842	)			1,710,584				(423,279	)			(1,069,214	)			(6,990	)			(9,340	)
		12,996,242				(19,605,549	)			802,091				(866,313	)			(11,698	)			(118,860	)
		(8,198,926	)			(19,668,014	)			487,150				(1,397,836	)			201,140				171,708
		—				—				(10,317	)			(232	)			(74,679	)			(78,927	)
		(25,974	)			(72,426	)			—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				(437	)			(2	)			—				—
		(8,379	)			(11,557	)			—				—				—				—
		—				—				(425,047	)			(64,536	)			(306,327	)			(473,901	)
		(1,760,963	)			(3,014,603	)			—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		(1,795,316	)			(3,098,586	)			(435,801	)			(64,770	)			(381,006	)			(552,828	)
		(49,599,950	)			18,863,488				(1,201,861	)			20,614,473				3,770,494				(14,321,152	)
		(59,594,192	)			(3,903,112	)			(1,150,512	)			19,151,867				3,590,628				(14,702,272	)
		103,917,661				107,820,773				19,151,867				—				43,678,664				58,380,936
	$	44,323,469			$	103,917,661			$	18,001,355			$	19,151,867			$	47,269,292			$	43,678,664
	$	(486,326	)		$	—			$	63,708			$	391,171			$	(163,149	)		$	(1,971	)

80

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Short Duration Bond Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
From Investment Activities:
Operations:
Net investment income		$	579,684			$	1,236,409
Net realized gain (loss)			(124,861	)			(326,041	)
Change in unrealized appreciation/depreciation			199,917				(235,357	)
Change in net assets from operations			654,740				675,011
Distributions to Class A Shareholders From:
Net investment income			(104,455	)			(275,128	)
Net realized gains			—				—
Return of capital			—				—
Distributions to Class B Shareholders From:
Net investment income			—				—
Distributions to Class C Shareholders From:
Net investment income			(22,662	)			(48,158	)
Net realized gains			—				—
Return of capital			—				—
Distributions to Institutional Class Shareholders From:
Net investment income			(1,074,799	)			(2,511,205	)
Net realized gains			—				—
Return of capital			—				—
Distributions to Class R Shareholders From:
Net investment income			—				—
Change in net assets from shareholder distributions			(1,201,916	)			(2,834,491	)
Capital Transactions:
Change in net assets from capital transactions			(4,504,602	)			(2,540,713	)
Change in net assets			(5,051,778	)			(4,700,193	)
Net Assets:
Beginning of period			88,879,682				93,579,875
End of period		$	83,827,904			$	88,879,682
Undistributed (distributions in excess of) net investment income		$	(631,558	)		$	(9,326	)

See accompanying Notes to the Financial Statements.

81

    XXUPDATEXXX

Sterling Capital Intermediate U.S. Government Fund						Sterling Capital Total Return Bond Fund						Sterling Capital Corporate Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	177,678		$	482,920		$	9,676,383		$	18,970,600		$	973,540		$	1,863,004
	35,492			300,814			(1,490,343	)		384,257			(461,545	)		(134,816	)
	210,016			(210,070	)		7,540,222			(6,339,132	)		642,947			(825,504	)
	423,186			573,664			15,726,262			13,015,725			1,154,942			902,684
	(57,673	)		(195,671	)		(882,575	)		(1,509,771	)		(4,829	)		(8,731	)
	—			—			—			—			—			(295	)
	—			—			—			—			—			(147	)
	(594	)		(2,554	)		(10,263	)		(31,362	)		—			—
	(3,377	)		(9,428	)		(75,032	)		(155,968	)		(180	)		(184	)
	—			—			—			—			—			(9	)
	—			—			—			—			—			(3	)
	(191,101	)		(475,820	)		(10,452,834	)		(21,390,337	)		(968,305	)		(1,823,294	)
	—			—			—			—			—			(60,169	)
	—			—			—			—			—			(30,642	)
	—			—			(79	)		(173	)		—			—
	(252,745	)		(683,473	)		(11,420,783	)		(23,087,611	)		(973,314	)		(1,923,474	)
	(579,884	)		(2,657,019	)		8,634,028			198,918,590			348,472			14,740,001
	(409,443	)		(2,766,828	)		12,939,507			188,846,704			530,100			13,719,211
	30,217,891			32,984,719			668,007,641			479,160,937			64,348,989			50,629,778
$	29,808,448		$	30,217,891		$	680,947,148		$	668,007,641		$	64,879,089		$	64,348,989
$	114,515		$	189,582		$	(1,439,491	)	$	304,909		$	(216	)	$	(442	)

82

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Securitized Opportunities Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
From Investment Activities:
Operations:
Net investment income		$	519,774			$	951,039
Net realized gain			68,790				149,237
Change in unrealized appreciation/depreciation			44,536				292,812
Change in net assets from operations			633,100				1,393,088
Distributions to Class A Shareholders From:
Net investment income			(24,914	)			(2,743	)
Net realized gains			—				—
Distributions to Class C Shareholders From:
Net investment income			(307	)			(687	)
Net realized gains			—				—
Distributions to Institutional Class Shareholders From:
Net investment income			(585,587	)			(1,150,964	)
Net realized gains			—				—
Change in net assets from shareholder distributions			(610,808	)			(1,154,394	)
Capital Transactions:
Change in net assets from capital transactions			1,176,322				9,425,368
Change in net assets			1,198,614				9,664,062
Net Assets:
Beginning of period			46,412,598				36,748,536
End of period		$	47,611,212			$	46,412,598
Undistributed (distributions in excess of) net investment income		$	(91,034	)		$	—

See accompanying Notes to the Financial Statements.

83

    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 Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	167,609		$	374,662		$	348,833		$	746,392		$	2,289,802		$	4,722,447
	165,522			208,252			111,658			216,610			336,446			1,061,019
	(59,196	)		(281,514	)		386,824			(234,543	)		2,183,873			(1,034,641	)
	273,935			301,400			847,315			728,459			4,810,121			4,748,825
	(50,510	)		(108,101	)		(56,758	)		(123,134	)		(503,158	)		(1,024,534	)
	(52,381	)		(75,342	)		(43,187	)		(33,661	)		(249,326	)		(76,229	)
	(156	)		(318	)		(3,432	)		(7,677	)		(28,598	)		(46,711	)
	(235	)		(319	)		(4,146	)		(3,482	)		(21,666	)		(5,096	)
	(116,894	)		(266,191	)		(287,652	)		(613,407	)		(1,755,375	)		(3,648,473	)
	(110,771	)		(171,504	)		(187,004	)		(147,308	)		(787,698	)		(241,858	)
	(330,947	)		(621,775	)		(582,179	)		(928,669	)		(3,345,821	)		(5,042,901	)
	(1,605,753	)		(761,209	)		(1,926,968	)		(1,254,247	)		2,554,142			(5,924,173	)
	(1,662,765	)		(1,081,584	)		(1,661,832	)		(1,454,457	)		4,018,442			(6,218,249	)
	14,084,912			15,166,496			36,574,531			38,028,988			196,338,412			202,556,661
$	12,422,147		$	14,084,912		$	34,912,699		$	36,574,531		$	200,356,854		$	196,338,412
$	12,234		$	12,184		$	4,668		$	3,676		$	84,852		$	82,181

84

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital South Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
From Investment Activities:
Operations:
Net investment income		$	800,086			$	1,489,941
Net realized gain			10,105				275,258
Change in unrealized appreciation/depreciation			1,150,403				(167,796	)
Change in net assets from operations			1,960,594				1,597,403
Distributions to Class A Shareholders From:
Net investment income			(158,821	)			(331,220	)
Net realized gains			(54,170	)			(27,810	)
Distributions to Class C Shareholders From:
Net investment income			(8,272	)			(18,902	)
Net realized gains			(4,526	)			(2,712	)
Distributions to Institutional Class Shareholders From:
Net investment income			(632,846	)			(1,140,264	)
Net realized gains			(191,305	)			(81,197	)
Change in net assets from shareholder distributions			(1,049,940	)			(1,602,105	)
Capital Transactions:
Change in net assets from capital transactions			7,612,966				8,086,043
Change in net assets			8,523,620				8,081,341
Net Assets:
Beginning of period			76,450,331				68,368,990
End of period		$	84,973,951			$	76,450,331
Undistributed net investment income		$	27,146			$	26,999

See accompanying Notes to the Financial Statements.

85

    XXUPDATEXXX

Sterling Capital Virginia Intermediate Tax-Free Fund						Sterling Capital West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	1,291,121		$	2,686,997		$	1,118,114		$	2,352,587
	298,065			412,758			449,207			478,892
	1,176,006			(553,965	)		868,002			(374,084	)
	2,765,192			2,545,790			2,435,323			2,457,395
	(374,416	)		(813,175	)		(368,475	)		(748,083	)
	(130,362	)		(222,245	)		(187,693	)		(90,668	)
	(8,340	)		(17,657	)		(2,995	)		(5,266	)
	(4,426	)		(7,394	)		(2,185	)		(1,175	)
	(908,322	)		(1,856,397	)		(745,177	)		(1,585,389	)
	(280,165	)		(438,730	)		(339,731	)		(180,075	)
	(1,706,031	)		(3,355,598	)		(1,646,256	)		(2,610,656	)
	2,076,675			(5,282,537	)		(3,862,047	)		(3,362,373	)
	3,135,836			(6,092,345	)		(3,072,980	)		(3,515,634	)
	116,422,421			122,514,766			102,404,009			105,919,643
$	119,558,257		$	116,422,421		$	99,331,029		$	102,404,009
$	62,661		$	62,618		$	69,038		$	67,571

86

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Diversified Income Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
From Investment Activities:
Operations:
Net investment income		$	816,427			$	804,830
Net realized gain			(428,160	)			1,545,401
Change in unrealized appreciation/depreciation			749,531				(3,944,009	)
Change in net assets from operations			1,137,798				(1,593,778	)
Distributions to Class A Shareholders From:
Net investment income			(310,544	)			(334,461	)
Distributions to Class B Shareholders From:
Net investment income			(6,851	)			(10,148	)
Distributions to Class C Shareholders From:
Net investment income			(18,449	)			(8,832	)
Distributions to Institutional Class Shareholders From:
Net investment income			(606,941	)			(391,658	)
Change in net assets from shareholder distributions			(942,785	)			(745,099	)
Capital Transactions:
Change in net assets from capital transactions			(2,361,375	)			26,877,456
Change in net assets			(2,166,362	)			24,538,579
Net Assets:
Beginning of period			43,525,705				18,987,126
End of period		$	41,359,343			$	43,525,705
Undistributed (distributions in excess of) net investment income		$	1,311			$	127,669

See accompanying Notes to the Financial Statements.

87

    XXUPDATEXXX

Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	400,712		$	429,275		$	262,580		$	174,106
	874,506			3,050,374			827,090			2,584,952
	(559,666	)		(4,123,398	)		(516,367	)		(3,515,566	)
	715,552			(643,749	)		573,303			(756,508	)
	(509,749	)		(492,183	)		(341,326	)		(228,424	)
	(7,812	)		(9,918	)		(9,374	)		(6,950	)
	(9,221	)		(5,115	)		(5,409	)		(2,384	)
	(1,370	)		(3,244	)		(11,124	)		(11,458	)
	(528,152	)		(510,460	)		(367,233	)		(249,216	)
	(2,998,342	)		(1,424,319	)		(2,721,963	)		(203,780	)
	(2,810,942	)		(2,578,528	)		(2,515,893	)		(1,209,504	)
	35,800,370			38,378,898			25,740,654			26,950,158
$	32,989,428		$	35,800,370		$	23,224,761		$	25,740,654
$	(107,409	)	$	20,031		$	(94,622	)	$	10,031

88

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Behavioral Large Cap Value Equity Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	1,267,345			$	2,614,509
Distributions reinvested			229,750				447,660
Value of shares redeemed			(2,547,228	)			(5,136,006	)
Change in net assets from Class A Share transactions			(1,050,133	)			(2,073,837	)
Class B Shares:
Proceeds from shares issued			—				7,486
Distributions reinvested			1,497				3,968
Value of shares redeemed			(189,365	)			(458,373	)
Change in net assets from Class B Share transactions			(187,868	)			(446,919	)
Class C Shares:
Proceeds from shares issued			314,031				438,703
Distributions reinvested			3,757				3,637
Value of shares redeemed			(58,554	)			(122,888	)
Change in net assets from Class C Share transactions			259,234				319,452
Institutional Shares:
Proceeds from shares issued			28,153,084				20,184,490
Distributions reinvested			2,067,253				3,816,267
Value of shares redeemed			(13,825,557	)			(28,099,724	)
Change in net assets from Institutional Share transactions			16,394,780				(4,098,967	)
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		$	15,416,013			$	(6,300,271	)
Share Transactions:
Class A Shares:
Issued			72,902				146,143
Reinvested			13,234				25,402
Redeemed			(154,052	)			(287,021	)
Change in Class A Shares			(67,916	)			(115,476	)
Class B Shares:
Issued			—				430
Reinvested			87				227
Redeemed			(11,481	)			(26,085	)
Change in Class B Shares			(11,394	)			(25,428	)
Class C Shares:
Issued			18,193				25,212
Reinvested			222				212
Redeemed			(3,591	)			(7,175	)
Change in Class C Shares			14,824				18,249
Institutional Shares:
Issued			1,594,248				1,130,083
Reinvested			118,474				215,497
Redeemed			(817,403	)			(1,569,993	)
Change in Institutional Shares			895,319				(224,413	)
Class R Shares:
Issued			—				—
Reinvested			—				—
Redeemed			—				—
Change in Class R Shares			—				—
Change in Shares			830,833				(347,068	)

See accompanying Notes to the Financial Statements.

89

    XXUPDATEXXX

Sterling Capital Mid Value Fund						Sterling Capital Behavioral Small Cap Value Equity Fund						Sterling Capital Special Opportunities Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	1,073,208		$	3,995,030		$	446,692		$	6,293,476		$	64,163,287		$	62,671,497
	5,600,796			2,534,757			74,109			435,815			37,784,514			18,786,909
	(4,970,915	)		(10,670,041	)		(5,385,045	)		(2,699,126	)		(26,860,698	)		(172,645,137	)
	1,703,089			(4,140,254	)		(4,864,244	)		4,030,165			75,087,103			(91,186,731	)
	2,246			6,419			4			965			33,184			14,852
	129,038			79,231			634			10,280			639,576			405,267
	(251,877	)		(660,809	)		(62,979	)		(135,254	)		(1,381,156	)		(3,556,143	)
	(120,593	)		(575,159	)		(62,341	)		(124,009	)		(708,396	)		(3,136,024	)
	1,112,861			1,973,415			30,753			130,839			24,584,503			33,010,471
	866,589			231,333			1,343			9,780			22,875,216			6,765,229
	(1,009,726	)		(1,108,607	)		(6,683	)		(112,466	)		(9,403,883	)		(12,994,833	)
	969,724			1,096,141			25,413			28,153			38,055,836			26,780,867
	89,665,231			123,909,927			34,536,301			13,339,610			106,719,026			258,227,694
	95,000,641			44,182,703			750,901			5,662,040			58,697,993			23,151,425
	(127,642,430	)		(231,109,674	)		(6,947,735	)		(26,073,254	)		(86,888,936	)		(364,352,863	)
	57,023,442			(63,017,044	)		28,339,467			(7,071,604	)		78,528,083			(82,973,744	)
	—			—			—			—			95,902			95,793
	35			12			1			7			9,484			1,665
	—			—			—			—			(18,321	)		(77,529	)
	35			12			1			7			87,065			19,929
$	59,575,697		$	(66,636,304	)	$	23,438,296		$	(3,137,288	)	$	191,049,691		$	(150,495,703	)
	66,257			203,628			31,404			421,106			2,937,815			2,698,968
	362,511			134,503			5,117			29,897			1,802,865			850,856
	(329,962	)		(543,986	)		(379,695	)		(181,097	)		(1,256,315	)		(7,659,540	)
	98,806			(205,855	)		(343,174	)		269,906			3,484,365			(4,109,716	)
	127			344			—			66			1,948			712
	9,126			4,517			45			732			35,219			20,614
	(17,869	)		(36,079	)		(4,628	)		(9,250	)		(72,657	)		(171,412	)
	(8,616	)		(31,218	)		(4,583	)		(8,452	)		(35,490	)		(150,086	)
	72,915			108,419			2,202			8,850			1,308,846			1,588,331
	61,675			13,237			96			699			1,258,951			343,762
	(66,218	)		(61,255	)		(489	)		(7,727	)		(507,460	)		(622,148	)
	68,372			60,401			1,809			1,822			2,060,337			1,309,945
	5,516,744			6,305,423			2,442,638			884,167			4,796,954			10,967,320
	6,079,045			2,320,846			51,457			384,102			2,686,675			1,014,523
	(7,581,080	)		(11,898,139	)		(492,277	)		(1,725,858	)		(4,002,557	)		(15,184,425	)
	4,014,709			(3,271,870	)		2,001,818			(457,589	)		3,481,072			(3,202,582	)
	—			—			—			—			4,192			4,055
	2			1			1			—			445			74
	—			—			—			—			(780	)		(3,288	)
	2			1			1			—			3,857			841
	4,173,273			(3,448,541	)		1,655,871			(194,313	)		8,994,141			(6,151,598	)

90

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	47,687,596			$	96,426,885
Distributions reinvested			29,928,601				25,697,968
Value of shares redeemed			(102,987,017	)			(313,978,501	)
Change in net assets from Class A Share transactions			(25,370,820	)			(191,853,648	)
Class B Shares:
Proceeds from shares issued			—				13,603
Distributions reinvested			234,985				232,254
Value of shares redeemed			(1,237,260	)			(3,495,236	)
Change in net assets from Class B Share transactions			(1,002,275	)			(3,249,379	)
Class C Shares:
Proceeds from shares issued			13,333,679				29,610,611
Distributions reinvested			18,626,295				10,900,826
Value of shares redeemed			(29,980,545	)			(51,663,697	)
Change in net assets from Class C Share transactions			1,979,429				(11,152,260	)
Institutional Shares:
Proceeds from shares issued			195,460,345				176,964,153
Distributions reinvested			54,919,637				40,823,997
Value of shares redeemed			(157,144,670	)			(375,371,954	)
Change in net assets from Institutional Share transactions			93,235,312				(157,583,804	)
Class R Shares:
Proceeds from shares issued			155,844				558,881
Distributions reinvested			145,795				78,357
Value of shares redeemed			(191,014	)			(313,501	)
Change in net assets from Class R Share transactions			110,625				323,737
Change in net assets from capital transactions		$	68,952,271			$	(363,515,354	)
Share Transactions:
Class A Shares:
Issued			2,817,537				5,125,334
Reinvested			1,796,533				1,399,852
Redeemed			(5,952,614	)			(16,667,881	)
Change in Class A Shares			(1,338,544	)			(10,142,695	)
Class B Shares:
Issued			—				720
Reinvested			14,152				12,678
Redeemed			(72,784	)			(186,907	)
Change in Class B Shares			(58,632	)			(173,509	)
Class C Shares:
Issued			791,518				1,598,787
Reinvested			1,130,244				599,348
Redeemed			(1,813,601	)			(2,774,922	)
Change in Class C Shares			108,161				(576,787	)
Institutional Shares:
Issued			11,563,247				9,468,157
Reinvested			3,288,711				2,218,624
Redeemed			(9,196,113	)			(19,907,095	)
Change in Institutional Shares			5,655,845				(8,220,314	)
Class R Shares:
Issued			9,356				29,720
Reinvested			8,810				4,298
Redeemed			(11,541	)			(16,676	)
Change in Class R Shares			6,625				17,342
Change in Shares			4,373,455				(19,095,963	)

* Commencement of operations.

See accompanying Notes to the Financial Statements.

91

    XXUPDATEXXX

Sterling Capital Long/Short Equity Fund Sterling Capital Behavioral International Equity Fund Sterling Capital Ultra Short Bond Fund

For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015				For the Six Months Ended March 31, 2016 (Unaudited)				For the Period November 28, 2014* to September 30, 2015				For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
	$	47,589			$	986,187			$	41,367			$	586,586			$	7,240,750			$	10,746,221
		25,974				60,355				10,255				232				64,592				68,470
		(635,116	)			(1,777,119	)			(226,846	)			(149	)			(7,872,348	)			(13,633,265	)
		(561,553	)			(730,577	)			(175,224	)			586,669				(567,006	)			(2,818,574	)
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		13,750				273,042				750				58,909				—				—
		8,039				10,371				437				2				—				—
		(130,453	)			(124,040	)			(1,094	)			(26,318	)			—				—
		(108,664	)			159,373				93				32,593				—				—
		12,665,210				87,912,677				417,000				26,452,117				8,226,383				11,100,036
		987,160				1,447,368				5,373				129				293,357				437,754
		(62,582,103	)			(69,925,353	)			(1,449,103	)			(6,457,035	)			(4,182,240	)			(23,040,368	)
		(48,929,733	)			19,434,692				(1,026,730	)			19,995,211				4,337,500				(11,502,578	)
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
	$	(49,599,950	)		$	18,863,488			$	(1,201,861	)		$	20,614,473			$	3,770,494			$	(14,321,152	)
		5,987				98,964				4,530				57,632				735,259				1,083,791
		3,106				6,171				1,067				24				6,898				6,912
		(79,915	)			(181,333	)			(25,301	)			(16	)			(800,493	)			(1,375,048	)
		(70,822	)			(76,198	)			(19,704	)			57,640				(58,336	)			(284,345	)
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		1,559				27,148				81				5,627				—				—
		975				1,068				46				—				—				—
		(15,919	)			(12,722	)			(113	)			(2,556	)			—				—
		(13,385	)			15,494				14				3,071				—				—
		1,498,005				8,840,835				46,845				2,645,568				836,902				1,119,396
		117,379				147,540				559				13				29,499				44,220
		(7,518,262	)			(7,135,189	)			(150,859	)			(632,437	)			(425,098	)			(2,323,600	)
		(5,902,878	)			1,853,186				(103,455	)			2,013,144				441,303				(1,159,984	)
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		—				—				—				—				—				—
		(5,987,085	)			1,792,482				(123,145	)			2,073,855				382,967				(1,444,329	)

92

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Short Duration Bond Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	1,075,081			$	1,780,844
Distributions reinvested			78,462				195,572
Value of shares redeemed			(1,521,276	)			(4,147,988	)
Change in net assets from Class A Share transactions			(367,733	)			(2,171,572	)
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			757,262				866,184
Distributions reinvested			14,679				38,764
Value of shares redeemed			(998,061	)			(340,975	)
Change in net assets from Class C Share transactions			(226,120	)			563,973
Institutional Shares:
Proceeds from shares issued			13,530,465				40,419,740
Distributions reinvested			377,183				723,318
Value of shares redeemed			(17,818,397	)			(42,076,172	)
Change in net assets from Institutional Share transactions			(3,910,749	)			(933,114	)
Class R Shares:
Proceeds from shares issued			—				—
Distributions reinvested			—				—
Value of shares redeemed			—				—
Change in net assets from Class R Share transactions			—				—
Change in net assets from capital transactions		$	(4,504,602	)		$	(2,540,713	)
Share Transactions:
Class A Shares:
Issued			122,110				198,119
Reinvested			8,916				21,793
Redeemed			(172,837	)			(462,323	)
Change in Class A Shares			(41,811	)			(242,411	)
Class B Shares:
Issued			—				—
Reinvested			—				—
Redeemed			—				—
Change in Class B Shares			—				—
Class C Shares:
Issued			85,961				96,176
Reinvested			1,668				4,326
Redeemed			(113,511	)			(37,932	)
Change in Class C Shares			(25,882	)			62,570
Institutional Shares:
Issued			1,538,241				4,499,707
Reinvested			42,848				80,754
Redeemed			(2,023,490	)			(4,683,385	)
Change in Institutional Shares			(442,401	)			(102,924	)
Class R Shares:
Issued			—				—
Reinvested			—				—
Redeemed			—				—
Change in Class R Shares			—				—
Change in Shares			(510,094	)			(282,765	)

See accompanying Notes to the Financial Statements.

93

    XXUPDATEXXX

Sterling Capital Intermediate U.S. Government Fund						Sterling Capital Total Return Bond Fund						Sterling Capital Corporate Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	548,477		$	5,617,921		$	19,582,595		$	17,808,421		$	506		$	102,581
	51,782			176,965			783,438			1,313,403			4,686			8,740
	(796,235	)		(6,858,288	)		(7,253,014	)		(9,566,217	)		(15,793	)		(25,718	)
	(195,976	)		(1,063,402	)		13,113,019			9,555,607			(10,601	)		85,603
	—			4,242			—			61,690			—			—
	572			2,500			9,538			29,761			—			—
	(44,105	)		(103,686	)		(259,823	)		(601,269	)		—			—
	(43,533	)		(96,944	)		(250,285	)		(509,818	)		—			—
	304,333			45,149			329,858			1,912,192			37,502			—
	3,257			9,045			58,063			121,462			180			196
	(148,450	)		(100,278	)		(799,961	)		(1,155,506	)		—			—
	159,140			(46,084	)		(412,040	)		878,148			37,682			196
	4,752,438			9,866,530			98,662,260			310,192,582			10,999,831			32,047,361
	54,976			161,461			6,640,031			13,629,682			965,182			1,854,765
	(5,306,929	)		(11,478,580	)		(109,118,336	)		(134,827,838	)		(11,643,622	)		(19,247,924	)
	(499,515	)		(1,450,589	)		(3,816,045	)		188,994,426			321,391			14,654,202
	—			—			—			54			—			—
	—			—			79			173			—			—
	—			—			(700	)		—			—			—
	—			—			(621	)		227			—			—
$	(579,884	)	$	(2,657,019	)	$	8,634,028		$	198,918,590		$	348,472		$	14,740,001
	53,936			545,502			1,873,956			1,661,183			50			9,931
	5,096			17,275			74,650			123,015			465			854
	(78,402	)		(675,060	)		(691,804	)		(898,029	)		(1,576	)		(2,527	)
	(19,370	)		(112,283	)		1,256,802			886,169			(1,061	)		8,258
	—			417			—			5,720			—			—
	57			245			908			2,781			—			—
	(4,360	)		(10,149	)		(24,716	)		(56,277	)		—			—
	(4,303	)		(9,487	)		(23,808	)		(47,776	)		—			—
	29,936			4,418			31,473			177,979			3,769			—
	321			884			5,525			11,360			18			19
	(14,603	)		(9,774	)		(76,282	)		(108,440	)		—			—
	15,654			(4,472	)		(39,284	)		80,899			3,787			19
	467,212			963,312			9,398,630			28,947,287			1,096,633			3,125,906
	5,406			15,746			632,489			1,275,687			96,029			181,138
	(520,777	)		(1,120,290	)		(10,395,345	)		(12,661,006	)		(1,160,650	)		(1,881,928	)
	(48,159	)		(141,232	)		(364,226	)		17,561,968			32,012			1,425,116
	—			—			—			5			—			—
	—			—			8			16			—			—
	—			—			(68	)		—			—			—
	—			—			(60	)		21			—			—
	(56,178	)		(267,474	)		829,424			18,481,281			34,738			1,433,393

94

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Securitized Opportunities Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	4,819,600			$	44,803
Distributions reinvested			15,414				2,729
Value of shares redeemed			(4,783,662	)			(10,517	)
Change in net assets from Class A Share transactions			51,352				37,015
Class C Shares:
Proceeds from shares issued			—				—
Distributions reinvested			307				687
Value of shares redeemed			—				—
Change in net assets from Class C Share transactions			307				687
Institutional Shares:
Proceeds from shares issued			8,234,617				16,013,633
Distributions reinvested			585,588				1,131,660
Value of shares redeemed			(7,695,542	)			(7,757,627	)
Change in net assets from Institutional Share transactions			1,124,663				9,387,666
Change in net assets from capital transactions		$	1,176,322			$	9,425,368
Share Transactions:
Class A Shares:
Issued			483,258				4,462
Reinvested			1,552				273
Redeemed			(484,924	)			(1,057	)
Change in Class A Shares			(114	)			3,678
Class C Shares:
Issued			—				—
Reinvested			31				69
Redeemed			—				—
Change in Class C Shares			31				69
Institutional Shares:
Issued			827,915				1,601,075
Reinvested			58,862				113,147
Redeemed			(774,267	)			(777,454	)
Change in Institutional Shares			112,510				936,768
Change in Shares			112,427				940,515

See accompanying Notes to the Financial Statements.

95

    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 Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	59,155		$	173,580		$	9,191		$	993,275		$	5,385,075		$	3,271,634
	91,405			157,983			71,582			110,293			595,159			856,621
	(419,307	)		(317,405	)		(816,322	)		(967,867	)		(2,972,689	)		(6,565,206	)
	(268,747	)		14,158			(735,549	)		135,701			3,007,545			(2,436,951	)
	—			—			30,089			82,459			2,262,668			1,136,424
	390			637			7,531			10,790			44,692			41,063
	—			—			(110,951	)		(95,561	)		(407,274	)		(685,456	)
	390			637			(73,331	)		(2,312	)		1,900,086			492,031
	735,100			2,443,555			1,765,628			6,010,967			10,924,676			35,818,542
	33,984			71,870			171,321			247,424			610,274			885,369
	(2,106,480	)		(3,291,429	)		(3,055,037	)		(7,646,027	)		(13,888,439	)		(40,683,164	)
	(1,337,396	)		(776,004	)		(1,118,088	)		(1,387,636	)		(2,353,489	)		(3,979,253	)
$	(1,605,753	)	$	(761,209	)	$	(1,926,968	)	$	(1,254,247	)	$	2,554,142		$	(5,924,173	)
	5,570			16,327			821			89,218			486,857			298,779
	8,676			14,790			6,403			9,851			54,174			78,025
	(39,734	)		(29,673	)		(73,042	)		(86,735	)		(269,468	)		(598,065	)
	(25,488	)		1,444			(65,818	)		12,334			271,563			(221,261	)
	—			—			2,659			7,385			205,560			103,490
	37			60			674			964			4,075			3,743
	—			—			(9,924	)		(8,520	)		(37,110	)		(62,562	)
	37			60			(6,591	)		(171	)		172,525			44,671
	69,701			229,733			157,068			535,757			992,139			3,254,656
	3,227			6,748			15,284			22,079			55,539			80,670
	(199,482	)		(309,523	)		(272,250	)		(682,029	)		(1,262,277	)		(3,703,277	)
	(126,554	)		(73,042	)		(99,898	)		(124,193	)		(214,599	)		(367,951	)
	(152,005	)		(71,538	)		(172,307	)		(112,030	)		229,489			(544,541	)

96

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital South Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	1,350,662			$	1,137,270
Distributions reinvested			181,793				297,069
Value of shares redeemed			(642,863	)			(407,404	)
Change in net assets from Class A Share transactions			889,592				1,026,935
Class C Shares:
Proceeds from shares issued			650,592				443,217
Distributions reinvested			11,376				16,351
Value of shares redeemed			(388,910	)			(2,376,040	)
Change in net assets from Class C Share transactions			273,058				(1,916,472	)
Institutional Shares:
Proceeds from shares issued			9,785,726				15,028,426
Distributions reinvested			217,315				287,136
Value of shares redeemed			(3,552,725	)			(6,339,982	)
Change in net assets from Institutional Share transactions			6,450,316				8,975,580
Change in net assets from capital transactions		$	7,612,966			$	8,086,043
Share Transactions:
Class A Shares:
Issued			120,275				102,254
Reinvested			16,257				26,667
Redeemed			(57,511	)			(213,198	)
Change in Class A Shares			79,021				(84,277	)
Class C Shares:
Issued			58,158				39,731
Reinvested			1,017				1,468
Redeemed			(34,922	)			(36,461	)
Change in Class C Shares			24,253				4,738
Institutional Shares:
Issued			879,540				1,360,106
Reinvested			19,545				25,956
Redeemed			(320,496	)			(572,809	)
Change in Institutional Shares			578,589				813,253
Change in Shares			681,863				733,714

See accompanying Notes to the Financial Statements.

97

Sterling Capital Virginia Intermediate Tax-Free Fund						Sterling Capital West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	700,035		$	647,538		$	1,442,222		$	3,689,399
	400,575			805,613			463,178			677,107
	(1,778,041	)		(5,638,506	)		(1,242,072	)		(4,210,504	)
	(677,431	)		(4,185,355	)		663,328			156,002
	123,107			92,545			165,000			76,104
	11,441			22,214			4,299			5,600
	(22,019	)		(351,479	)		(6,139	)		(129,627	)
	112,529			(236,720	)		163,160			(47,923	)
	8,557,195			17,263,590			4,512,555			13,932,544
	285,573			500,475			264,533			308,998
	(6,201,192	)		(18,624,527	)		(9,465,623	)		(17,711,994	)
	2,641,576			(860,462	)		(4,688,535	)		(3,470,452	)
$	2,076,674		$	(5,282,537	)	$	(3,862,047	)	$	(3,362,373	)
	58,233			53,868			141,894			363,040
	33,319			67,076			45,587			66,738
	(147,702	)		(471,168	)		(122,215	)		(415,158	)
	(56,150	)		(350,224	)		65,266			14,620
	10,199			7,781			16,059			7,559
	952			1,850			423			552
	(1,835	)		(29,287	)		(601	)		(12,715	)
	9,316			(19,656	)		15,881			(4,604	)
	709,616			1,436,452			442,839			1,371,642
	23,747			41,712			26,035			30,430
	(515,599	)		(1,551,666	)		(929,512	)		(1,740,598	)
	217,764			(73,502	)		(460,638	)		(338,526	)
	170,930			(443,382	)		(379,491	)		(328,510	)

98

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Diversified Income Fund
	For the Six Months Ended March 31, 2016 (Unaudited)				For the Year Ended September 30, 2015
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	681,482			$	1,887,859
Distributions reinvested			284,445				308,203
Value of shares redeemed			(889,358	)			(2,937,504	)
Change in net assets from Class A Share transactions			76,569				(741,442	)
Class B Shares:
Proceeds from shares issued			2,069				—
Distributions reinvested			6,741				9,755
Value of shares redeemed			(202,889	)			(287,067	)
Change in net assets from Class B Share transactions			(194,079	)			(277,312	)
Class C Shares:
Proceeds from shares issued			344,366				555,913
Distributions reinvested			11,123				6,249
Value of shares redeemed			(103,147	)			(27,698	)
Change in net assets from Class C Share transactions			252,342				534,464
Institutional Shares:
Proceeds from shares issued			2,972,179				30,753,764
Distributions reinvested			598,078				386,573
Value of shares redeemed			(6,066,464	)			(3,778,591	)
Change in net assets from Institutional Share transactions			(2,496,207	)			27,361,746
Change in net assets from capital transactions		$	(2,361,375	)		$	26,877,456
Share Transactions:
Class A Shares:
Issued			66,885				176,782
Reinvested			27,950				29,144
Redeemed			(87,839	)			(274,990	)
Change in Class A Shares			6,996				(69,064	)
Class B Shares:
Issued			203				—
Reinvested			660				917
Redeemed			(19,877	)			(26,758	)
Change in Class B Shares			(19,014	)			(25,841	)
Class C Shares:
Issued			33,754				52,905
Reinvested			1,105				599
Redeemed			(10,438	)			(2,590	)
Change in Class C Shares			24,421				50,914
Institutional Shares:
Issued			290,629				2,805,133
Reinvested			58,097				36,774
Redeemed			(594,885	)			(354,765	)
Change in Institutional Shares			(246,159	)			2,487,142
Change in Shares			(233,756	)			2,443,151

See accompanying Notes to the Financial Statements.

99

Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015			For the Six Months Ended March 31, 2016 (Unaudited)			For the Year Ended September 30, 2015
$	783,251		$	4,039,105		$	791,385		$	2,672,841
	499,537			481,066			337,129			225,466
	(3,915,806	)		(4,799,807	)		(2,583,477	)		(2,848,121	)
	(2,633,018	)		(279,636	)		(1,454,963	)		50,186
	—			8,241			710			11,967
	7,812			9,918			9,375			6,950
	(368,478	)		(1,048,427	)		(345,573	)		(976,831	)
	(360,666	)		(1,030,268	)		(335,488	)		(957,914	)
	63,827			174,979			36,272			96,199
	9,221			5,115			5,147			1,997
	(47,007	)		(159,492	)		(110,453	)		(93,956	)
	26,041			20,602			(69,034	)		4,240
	16			44			75,291			860,482
	1,370			1,785			11,122			11,035
	(32,085	)		(136,846	)		(948,891	)		(171,809	)
	(30,699	)		(135,017	)		(862,478	)		699,708
$	(2,998,342	)	$	(1,424,319	)	$	(2,721,963	)	$	(203,780	)
	75,293			373,614			79,490			251,786
	48,164			44,976			33,419			21,649
	(381,025	)		(442,468	)		(257,647	)		(268,419	)
	(257,568	)		(23,878	)		(144,738	)		5,016
	—			799			70			1,186
	768			947			954			687
	(35,967	)		(98,893	)		(35,824	)		(94,604	)
	(35,199	)		(97,147	)		(34,800	)		(92,731	)
	6,468			16,293			3,743			9,377
	906			488			526			198
	(4,628	)		(14,971	)		(11,347	)		(9,025	)
	2,746			1,810			(7,078	)		550
	2			4			7,330			83,195
	131			166			1,099			1,062
	(3,024	)		(12,721	)		(90,725	)		(16,514	)
	(2,891	)		(12,551	)		(82,296	)		67,743
	(292,912	)		(131,766	)		(268,912	)		(19,422	)

100

Sterling Capital Funds

Statement of Cash Flows

For the Six Months Ended March 31, 2016 (Unaudited)

	Sterling Capital Long/Short Equity Fund
Cash Used for Operating Activities:
Net decrease in net assets from operations		$	(8,198,926	)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used for operating activities:
Decrease in cash held at broker for securities short sales			15,841,421
Decrease in interest and dividends receivable			35,951
Increase in prepaid expenses			(18,046	)
Increase in payable for dividends on short sales			1,365
Decrease in payable to broker for service fee on short sales			(226	)
Decrease in investment advisory fees payable			(77,556	)
Increase in accounting and administration out-of-pocket fees payable			1,416
Decrease in administration fees payable			(5,256	)
Decrease in audit fees payable			(3,159	)
Decrease in transfer agent fees payable			(27	)
Decrease in distribution (12b-1) fees payable			(275	)
Decrease in Trustee fees payable			(13	)
Decrease in other fees			(11,646	)
Amortization of premium and accretion of discount on investments			(47,446	)
Net realized gain (loss) on investments			20,710,378
Net unrealized gain (loss) on investments and foreign currency translations			(12,996,242	)
Premiums received from options written			133,383
Premiums paid on closing options written			(80,573	)
Proceeds from investments sold short			(99,429,031	)
Purchases to cover investments sold short			89,755,228
Purchases of long-term investments			(86,955,210	)
Proceeds from sales of long-term investments			121,519,838
Net purchases of short-term securities			14,383,847
Net cash provided by operating activities			54,559,195
Cash Provided by (Used for) Financing Activities:
Proceeds from issuance of capital shares			12,246,372
Payments on redemption of capital shares			(63,835,646	)
Cash dividends paid to shareholders			(774,143	)
Net cash provided for financing activities			(52,363,417	)
Cash:
Net increase in cash			2,195,778
Cash at beginning of period			4,764
Cash at end of period		$	2,200,542
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for dividend expense and service fee on securities sold short		$	391,018
Non-Cash Financing Activities:
Capital shares issued in reinvestment of distributions paid to shareholders		$	1,021,173

See accompanying Notes to the Financial Statements.

101

(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
Six Months Ended March 31, 2016 (Unaudited)		$	16.53		0.13			0.60			0.73			(0.13	)		—				(0.13	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	17.97		0.03			1.13			1.16			—			(3.34	)			(3.34	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	14.04		0.10			0.29			0.39			(0.08	)		(0.01	)			(0.09	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	22.96		0.03			1.82			1.85			—			(3.31	)			(3.31	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	17.35		0.17			0.90			1.07			(0.18	)		(1.10	)			(1.28	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	8.87		(0.02	)		(0.89	)		(0.91	)		—			(0.20	)			(0.20	)
Year Ended September 30, 2015		$	10.90		(0.19	)		(1.54	)		(1.73	)		—			(0.30	)			(0.30	)
December 13, 2013 to September 30, 2014(k)		$	10.00		(0.13	)		1.03			0.90			—			—				—
Sterling Capital Behavioral International Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	9.22		0.04			0.17			0.21			(0.21	)		—				(0.21	)
November 28, 2014 to September 30, 2015(k)		$	10.00		0.18			(0.94	)		(0.76	)		(0.02	)		—				(0.02	)
Sterling Capital Ultra Short Bond Fund
Six Months Ended March 31, 2016 (Unaudited)		$	9.87		0.04			(0.01	)		0.03			(0.07	)		—				(0.07	)
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	)		0.02			(0.06	)		—				(0.06	)
November 30, 2012 to September 30, 2013(k)		$	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 2.16% per share.

(j) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.08% per share.

(k) Period from commencement of operations.

(l) 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.

103

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	17.13		4.38	%		$	31,038		1.04	%		1.58	%		1.16	%		67.73	%
	$	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	%
	$	15.79		6.84	%		$	32,136		1.20	%		0.41	%		1.20	%		16.96	%
	$	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	%
	$	14.34		2.71	%		$	8,625		1.19	%		1.47	%		1.22	%		65.42	%
	$	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	%
	$	21.50		8.42	%		$	322,379		1.20	%		0.26	%		1.22	%		20.52	%
	$	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	%
	$	17.14		6.43	%		$	449,641		1.22	%		1.96	%		1.22	%		16.62	%
	$	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	%
	$	7.76		(10.38	)%		$	594		3.31	%(i)		(0.48	)%		3.33	%		191.28	%
	$	8.87		(16.16	)%		$	1,307		3.19	%(j)		(1.93	)%		3.19	%		265.99	%
	$	10.90		9.00	%		$	2,437		3.44	%(l)		(1.55	)%		3.44	%		193.58	%
	$	9.22		2.14	%		$	350		1.34	%		0.76	%		1.56	%		74.63	%
	$	9.22		(7.57	)%		$	531		1.28	%		2.16	%		1.44	%		133.50	%
	$	9.83		0.32	%		$	7,687		0.73	%		0.79	%		0.80	%		24.46	%
	$	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	%

104

Sterling Capital Funds

Financial Highlights, Class A Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2016 (Unaudited)		$	8.86		0.05		0.01			0.06			(0.12	)		—			—			(0.12	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.18		0.05		0.09			0.14			(0.08	)		—			—			(0.08	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.53		0.14		0.10			0.24			(0.17	)		—			—			(0.17	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.10		0.14		0.03			0.17			(0.14	)		—			—			(0.14	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	9.98		0.10		0.03			0.13			(0.12	)		—			—			(0.12	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.62		0.12		0.09			0.21			(0.12	)		(0.13	)		—			(0.25	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.17		0.10		0.16			0.26			(0.10	)		(0.07	)		—			(0.17	)
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.

105

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	8.80		0.65	%		$	7,656		0.78	%		1.18	%		0.82	%		32.11	%
	$	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	%
	$	10.24		1.37	%		$	7,468		0.87	%		1.04	%		0.99	%		29.95	%
	$	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	%
	$	10.60		2.30	%		$	61,403		0.73	%		2.71	%		0.83	%		29.46	%
	$	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	%
	$	10.13		1.71	%		$	338		0.89	%		2.81	%		0.89	%		29.00	%
	$	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	%
	$	9.99		1.27	%		$	123		0.84	%		1.93	%		0.88	%		28.91	%
	$	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	%
	$	10.58		2.00	%		$	4,244		0.93	%		2.32	%		1.05	%		8.09	%
	$	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	%
	$	11.26		2.36	%		$	6,177		0.86	%		1.76	%		0.96	%		11.60	%
	$	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	%

106

Sterling Capital Funds

Financial Highlights, Class A Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2016 (Unaudited)		$	10.97		0.47		(0.21	)		0.26			(0.12	)		(0.06	)		(0.18	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.14		0.10		0.17			0.27			(0.10	)		(0.04	)		(0.14	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.98		0.12		0.15			0.27			(0.12	)		(0.04	)		(0.16	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.14		0.11		0.13			0.24			(0.11	)		(0.05	)		(0.16	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.21		0.19		0.09			0.28			(0.22	)		—			(0.22	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.31		0.12		0.11			0.23			(0.16	)		—			(0.16	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	9.99		0.11		0.11			0.22			(0.15	)		—			(0.15	)
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) Not annualized for periods less than one year.

(c) Annualized for periods less than one year.

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

See accompanying Notes to the Financial Statements.

107

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	11.05		2.38	%		$	49,289		0.81	%		8.48	%		0.91	%		2.72	%
	$	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	%
	$	11.27		2.43	%		$	17,887		0.82	%		1.85	%		0.92	%		2.88	%
	$	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	%
	$	12.09		2.32	%		$	36,330		0.81	%		2.05	%		0.91	%		5.01	%
	$	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	%
	$	10.22		2.38	%		$	36,225		0.82	%		2.08	%		0.92	%		4.52	%
	$	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	%
	$	10.27		2.78	%		$	14,478		0.53	%		3.68	%		0.70	%		19.90	%
	$	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	%
	$	10.38		2.25	%		$	31,586		0.41	%		2.37	%		0.66	%		4.24	%
	$	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	%
	$	10.06		2.23	%		$	21,552		0.45	%		2.21	%		0.70	%		5.35	%
	$	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	%

108

Sterling Capital Funds

Financial Highlights, Class B Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	16.26		0.07			0.58			0.65			(0.06	)		—			(0.06	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	16.75		(0.03	)		1.05			1.02			—			(3.34	)		(3.34	)
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		—	(e)		4.24			4.24			(0.03	)		—			(0.03	)
Year Ended September 30, 2012		$	10.80		—	(e)		2.77			2.77			(0.02	)		—			(0.02	)
Year Ended September 30, 2011		$	11.52		(0.06	)		(0.66	)		(0.72	)		—			—			—
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	13.61		0.04			0.28			0.32			(0.04	)		(0.01	)		(0.05	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	20.32		(0.05	)		1.61			1.56			—			(3.31	)		(3.31	)
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	)(f)		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
Six Months Ended March 31, 2016 (Unaudited)		$	17.33		0.10			0.90			1.00			(0.11	)		(1.10	)		(1.21	)
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	(g)		0.28			(0.08	)		—			(0.08	)
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2016 (Unaudited)		$	10.15		0.01			0.08			0.09			(0.04	)		—			(0.04	)
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) Not annualized for periods less than one year.

(c) Annualized for periods less than one year.

(d) Includes proceeds received from a settlement of litigation, which impacted the Fund’s total return. Not including these proceeds, the Fund’s total return would have been 10.59%.

(e) Amount is less than $0.005.

(f) 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.

See accompanying Notes to the Financial Statements.

109

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	16.85		3.97	%		$	364		1.79	%		0.81	%		1.91	%		67.73	%
	$	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	%(d)		$	1,261		1.84	%		0.23	%		1.94	%		164.27	%
	$	12.58		29.55	%		$	1,638		1.83	%		0.24	%		1.95	%		68.75	%
	$	9.73		(5.67	)%		$	1,922		1.83	%		0.18	%		1.97	%		66.29	%
	$	14.43		6.47	%		$	468		1.95	%		(0.42	)%		1.95	%		16.96	%
	$	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	%
	$	13.88		2.35	%		$	143		1.94	%		0.65	%		1.98	%		65.42	%
	$	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	%
	$	18.57		8.05	%		$	3,387		1.95	%		(0.52	)%		1.97	%		20.52	%
	$	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	)%(f)		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	%
	$	17.12		6.02	%		$	2,832		1.97	%		1.18	%		1.97	%		16.62	%
	$	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	%
	$	10.20		0.89	%		$	124		1.62	%		0.28	%		1.74	%		29.95	%
	$	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	%

110

Sterling Capital Funds

Financial Highlights, Class B Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Total Return Bond Fund
Six Months Ended March 31, 2016 (Unaudited)		$	10.54		0.10			0.10			0.20			(0.13	)		—			(0.13	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.23		0.15			0.09			0.24			(0.18	)		—			(0.18	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.11		0.08			0.11			0.19			(0.12	)		—			(0.12	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	9.73		0.07			0.10			0.17			(0.12	)		—			(0.12	)
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) Not annualized for periods less than one year.

(c) Annualized for periods less than one year.

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

See accompanying Notes to the Financial Statements.

111

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	10.61		1.91	%		$	683		1.48	%		1.93	%		1.58	%		29.46	%
	$	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	%
	$	10.29		2.36	%		$	321		1.28	%		2.96	%		1.46	%		19.90	%
	$	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	%
	$	10.18		1.83	%		$	544		1.16	%		1.49	%		1.41	%		4.24	%
	$	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	%
	$	9.78		1.75	%		$	550		1.20	%		1.38	%		1.45	%		5.35	%
	$	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	%

112

Sterling Capital Funds

Financial Highlights, Class C Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	16.09		0.06			0.59			0.65			(0.08	)		—			(0.08	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	16.67		(0.03	)		1.04			1.01			—			(3.34	)		(3.34	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	13.60		0.05			0.26			0.31			(0.05	)		(0.01	)		(0.06	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	20.34		(0.05	)		1.60			1.55			—			(3.31	)		(3.31	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	17.21		0.10			0.90			1.00			(0.12	)		(1.10	)		(1.22	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	8.76		(0.05	)		(0.88	)		(0.93	)		—			(0.20	)		(0.20	)
Year Ended September 30, 2015		$	10.85		(0.26	)		(1.53	)		(1.79	)		—			(0.30	)		(0.30	)
December 13, 2013 to September 30, 2014(j)		$	10.00		(0.21	)		1.06			0.85			—			—			—
Sterling Capital Behavioral International Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	9.18		0.01			0.15			0.16			(0.15	)		—			(0.15	)
November 28, 2014 to September 30, 2015(j)		$	10.00		0.19			(0.99	)		(0.80	)		(0.02	)		—			(0.02	)
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2016 (Unaudited)		$	8.85		0.02			0.01			0.03			(0.08	)		—			(0.08	)
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(j)		$	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 2.91% per share.

(i) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.84% 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 2.79% per share.

See accompanying Notes to the Financial Statements.

113

    XXUPDATEXXX

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	16.66		4.00	%		$	1,080		1.79	%		0.79	%		1.91	%		67.73	%
	$	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	%
	$	14.34		6.43	%		$	5,548		1.95	%		(0.34	)%		1.95	%		16.96	%
	$	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	%
	$	13.85		2.25	%		$	362		1.94	%		0.78	%		1.99	%		65.42	%
	$	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	%
	$	18.58		7.99	%		$	169,484		1.95	%		(0.49	)%		1.97	%		20.52	%
	$	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	%
	$	16.99		6.06	%		$	277,526		1.97	%		1.20	%		1.97	%		16.62	%
	$	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	%
	$	7.63		(10.75	)%		$	248		4.08	%(h)		(1.25	)%		4.10	%		191.28	%
	$	8.76		(16.80	)%		$	402		3.93	%(i)		(2.67	)%		3.93	%		265.99	%
	$	10.85		8.50	%		$	330		4.15	%(k)		(2.37	)%		4.15	%		193.58	%
	$	9.19		1.63	%		$	28		2.08	%		0.19	%		2.33	%		74.63	%
	$	9.18		(8.03	)%		$	28		2.03	%		2.26	%		2.19	%		133.50	%
	$	8.80		0.39	%		$	2,172		1.53	%		0.43	%		1.57	%		32.11	%
	$	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	%

114

Sterling Capital Funds

Financial Highlights, Class C Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Intermediate U.S. Government Fund
Six Months Ended March 31, 2016 (Unaudited)		$	10.17		0.01		0.08			0.09			(0.04	)		—			—			(0.04	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.55		0.10		0.09			0.19			(0.13	)		—			—			(0.13	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.09		0.10		0.03			0.13			(0.11	)		—			—			(0.11	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	9.97		0.06		0.03			0.09			(0.08	)		—			—			(0.08	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.63		0.08		0.09			0.17			(0.08	)		(0.13	)		—			(0.21	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.18		0.06		0.15			0.21			(0.06	)		(0.07	)		—			(0.13	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.96		0.08		0.15			0.23			(0.08	)		(0.06	)		—			(0.14	)
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.

115

    XXUPDATEXXX

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	10.22		0.89	%		$	941		1.62	%		0.29	%		1.74	%		29.95	%
	$	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	%
	$	10.61		1.82	%		$	5,985		1.48	%		1.94	%		1.58	%		29.46	%
	$	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	%
	$	10.11		1.25	%		$	47		1.64	%		2.16	%		1.64	%		29.00	%
	$	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	%
	$	9.98		0.89	%		$	39		1.60	%		1.24	%		1.64	%		28.91	%
	$	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	%
	$	10.59		1.62	%		$	20		1.68	%		1.57	%		1.80	%		8.09	%
	$	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	%
	$	11.26		1.89	%		$	673		1.61	%		1.02	%		1.71	%		11.60	%
	$	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	%
	$	11.05		2.08	%		$	5,281		1.55	%		1.40	%		1.65	%		2.72	%
	$	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	%

116

Sterling Capital Funds

Financial Highlights, Class C Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital South Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2016 (Unaudited)		$	11.14		0.06			0.16			0.22			(0.06	)		(0.04	)		(0.10	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.98		0.08			0.15			0.23			(0.08	)		(0.04	)		(0.12	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.14		0.07			0.13			0.20			(0.07	)		(0.05	)		(0.12	)
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)
Six Months Ended March 31, 2016 (Unaudited)		$	10.13		0.15			0.09			0.24			(0.18	)		—			(0.18	)
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)
Six Months Ended March 31, 2016 (Unaudited)		$	10.13		0.08			0.10			0.18			(0.12	)		—			(0.12	)
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)
Six Months Ended March 31, 2016 (Unaudited)		$	9.68		0.07			0.11			0.18			(0.12	)		—			(0.12	)
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.

117

    XXUPDATEXXX

						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)
	$	11.26		1.96	%		$	1,808		1.57	%		1.09	%		1.67	%		2.88	%
	$	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	%
	$	12.09		1.94	%		$	1,369		1.56	%		1.30	%		1.66	%		5.01	%
	$	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	%
	$	10.22		2.00	%		$	575		1.57	%		1.33	%		1.67	%		4.52	%
	$	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	%
	$	10.19		2.45	%		$	1,049		1.28	%		2.97	%		1.45	%		19.90	%
	$	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	%
	$	10.19		1.83	%		$	783		1.17	%		1.60	%		1.42	%		4.24	%
	$	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	%
	$	9.74		1.86	%		$	425		1.20	%		1.39	%		1.45	%		5.35	%
	$	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	%

118

Sterling Capital Funds

Financial Highlights, Institutional Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	16.62		0.16			0.59			0.75			(0.15	)		—			(0.15	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	18.14		0.05			1.14			1.19			(0.02	)		(3.34	)		(3.36	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	14.14		0.13			0.27			0.40			(0.08	)		(0.01	)		(0.09	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	23.78		0.06			1.89			1.95			—			(3.31	)		(3.31	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	17.39		0.19			0.90			1.09			(0.20	)		(1.10	)		(1.30	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	8.91		(0.01	)		(0.89	)		(0.90	)		—			(0.20	)		(0.20	)
Year Ended September 30, 2015		$	10.93		(0.17	)		(1.55	)		(1.72	)		—			(0.30	)		(0.30	)
December 13, 2013 to September 30, 2014(j)		$	10.00		(0.11	)		1.04			0.93			—			—			—
Sterling Capital Behavioral International Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	9.24		0.05			0.16			0.21			(0.22	)		—			(0.22	)
November 30, 2014 to September 30, 2015(j)		$	10.00		0.24			(0.97	)		(0.73	)		(0.03	)		—			(0.03	)
Sterling Capital Ultra Short Bond Fund
Six Months Ended March 31, 2016 (Unaudited)		$	9.86		0.05			(0.01	)		0.04			(0.08	)		—			(0.08	)
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(j)		$	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 1.91% per share.

(i) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 1.83% 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 1.77% per share.

See accompanying Notes to the Financial Statements.

119

						Ratios/Supplementary Data
Net��Asset Value, End of Period			Total Return (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	17.22		4.48	%		$	244,920		0.79	%		1.84	%		0.91	%		67.73	%
	$	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	%
	$	15.97		6.96	%		$	582,402		0.95	%		0.66	%		0.95	%		16.96	%
	$	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	%
	$	14.45		2.83	%		$	143,127		0.94	%		1.81	%		0.99	%		65.42	%
	$	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	%
	$	22.42		8.52	%		$	541,831		0.95	%		0.51	%		0.97	%		20.52	%
	$	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	%
	$	17.18		6.54	%		$	895,245		0.97	%		2.22	%		0.97	%		16.62	%
	$	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	%
	$	7.81		(10.32	)%		$	43,481		3.05	%(h)		(0.26	)%		3.07	%		191.28	%
	$	8.91		(15.92	)%		$	102,208		2.94	%(i)		(1.66	)%		2.94	%		265.99	%
	$	10.93		9.30	%		$	105,053		3.10	%(k)		(1.23	)%		3.10	%		193.58	%
	$	9.23		2.21	%		$	17,623		1.08	%		1.17	%		1.32	%		74.63	%
	$	9.24		(7.36	)%		$	18,592		1.03	%		2.82	%		1.18	%		133.50	%
	$	9.82		0.45	%		$	39,582		0.48	%		1.00	%		0.55	%		24.46	%
	$	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	%

120

Sterling Capital Funds

Financial Highlights, Institutional Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Short Duration Bond Fund
Six Months Ended March 31, 2016 (Unaudited)		$	8.86		0.06		0.01			0.07			(0.13	)		—			—			(0.13	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.19		0.07		0.08			0.15			(0.09	)		—			—			(0.09	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.54		0.15		0.09			0.24			(0.18	)		—			—			(0.18	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.10		0.15		0.03			0.18			(0.15	)		—			—			(0.15	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	9.98		0.11		0.04			0.15			(0.13	)		—			—			(0.13	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.61		0.14		0.09			0.23			(0.14	)		(0.13	)		—			(0.27	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.19		0.11		0.16			0.27			(0.11	)		(0.07	)		—			(0.18	)
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.

121

    XXUPDATEXXX

						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)
	$	8.80		0.77	%		$	74,000		0.53	%		1.43	%		0.57	%		32.11	%
	$	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	%
	$	10.25		1.49	%		$	21,275		0.62	%		1.29	%		0.74	%		29.95	%
	$	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	%
	$	10.60		2.32	%		$	612,870		0.49	%		2.94	%		0.59	%		29.46	%
	$	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	%
	$	10.13		1.84	%		$	64,494		0.63	%		3.06	%		0.63	%		29.00	%
	$	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	%
	$	10.00		1.50	%		$	47,449		0.61	%		2.23	%		0.65	%		28.91	%
	$	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	%
	$	10.57		2.12	%		$	8,158		0.68	%		2.57	%		0.80	%		8.09	%
	$	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	%
	$	11.28		2.49	%		$	28,063		0.61	%		2.01	%		0.71	%		11.60	%
	$	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	%

122

Sterling Capital Funds

Financial Highlights, Institutional Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital North Carolina Intermediate Tax-Free Fund
Six Months Ended March 31, 2016 (Unaudited)		$	10.97		0.02		0.25			0.27			(0.13	)		(0.06	)		(0.19	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.06		0.12		0.17			0.29			(0.12	)		(0.04	)		(0.16	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	11.98		0.14		0.15			0.29			(0.14	)		(0.04	)		(0.18	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.15		0.12		0.13			0.25			(0.12	)		(0.05	)		(0.17	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.32		0.21		0.09			0.30			(0.23	)		—			(0.23	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.39		0.13		0.10			0.23			(0.17	)		—			(0.17	)
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(d)
Six Months Ended March 31, 2016 (Unaudited)		$	10.01		0.09		0.14			0.23			(0.16	)		—			(0.16	)
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) Not annualized for periods less than one year.

(c) Annualized for periods less than one year.

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

See accompanying Notes to the Financial Statements.

123

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	11.05		2.50	%		$	145,786		0.56	%		0.39	%		0.66	%		2.72	%
	$	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	%
	$	11.19		2.57	%		$	65,279		0.57	%		2.10	%		0.67	%		2.88	%
	$	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	%
	$	12.09		2.45	%		$	81,859		0.56	%		2.30	%		0.66	%		5.01	%
	$	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	%
	$	10.23		2.51	%		$	62,531		0.57	%		2.33	%		0.67	%		4.52	%
	$	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	%
	$	10.39		2.98	%		$	25,512		0.28	%		3.93	%		0.45	%		19.90	%
	$	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	%
	$	10.45		2.26	%		$	77		0.17	%		2.56	%		0.42	%		4.24	%
	$	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	%
	$	10.08		2.35	%		$	697		0.19	%		1.84	%		0.44	%		5.35	%
	$	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	%

124

Sterling Capital Funds

Financial Highlights, Class R Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (loss) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Mid Value Fund
Six Months Ended March 31, 2016 (Unaudited)		$	17.59		0.02			1.11			1.13			—			(3.34	)		(3.34	)
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		—	(e)		1.74			1.74			(0.08	)		(1.20	)		(1.28	)
Year Ended September 30, 2013		$	14.20		(0.18	)		4.51			4.33			(0.06	)		—			(0.06	)
Year Ended September 30, 2012		$	11.36		0.08			2.90			2.98			(0.14	)		—			(0.14	)
Year Ended September 30, 2011		$	12.12		0.05			(0.73	)		(0.68	)		(0.08	)		—			(0.08	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Six Months Ended March 31, 2016 (Unaudited)		$	14.00		0.09			0.28			0.37			(0.07	)		(0.01	)		(0.08	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	23.28		—			1.85			1.85			—			(3.31	)		(3.31	)
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	(f)		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
Six Months Ended March 31, 2016 (Unaudited)		$	17.25		0.14			0.90			1.04			(0.16	)		(1.10	)		(1.26	)
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
Six Months Ended March 31, 2016 (Unaudited)		$	10.49		—			0.22			0.22			(0.16	)		—			(0.16	)
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) Not annualized for periods less than one year.

(c) Annualized for periods less than one year.

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

(e) Amount is less than $0.005.

(f) 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.

125

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge)(b)			Net Assets, End of Period (000)				Ratio of net expenses to average net assets(c)			Ratio of net investment income loss to average net assets(c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	15.38		6.78	%		$	—	(d)		1.44	%		0.19	%		1.44	%		16.96	%
	$	17.59		(0.89	)%		$	—	(d)		1.44	%		0.08	%		1.44	%		30.61	%
	$	18.93		9.68	%		$	—	(d)		1.39	%		0.02	%		1.39	%		27.30	%
	$	18.47		30.65	%		$	—	(d)		1.42	%		(1.04	)%		1.42	%		34.03	%
	$	14.20		26.17	%		$	—	(d)		1.44	%		0.59	%		1.44	%		21.62	%
	$	11.36		(5.71	)%		$	—	(d)		1.44	%		0.36	%		1.56	%		38.30	%
	$	14.29		2.58	%		$	—	(d)		1.43	%		1.21	%		1.43	%		65.42	%
	$	14.00		1.84	%		$	—	(d)		1.50	%		0.89	%		1.50	%		101.99	%
	$	14.28		7.01	%		$	—	(d)		1.45	%		0.65	%		1.45	%		68.50	%
	$	15.21		28.48	%		$	—	(d)		1.55	%		0.24	%		1.55	%		176.62	%
	$	12.03		21.49	%		$	—	(d)		1.57	%		0.44	%		1.59	%		32.86	%
	$	10.79		(3.49	)%		$	—	(d)		1.57	%		(0.12	)%		1.58	%		63.02	%
	$	21.82		8.29	%		$	127			1.45	%		0.01	%	��	1.48	%		20.52	%
	$	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	%(f)		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	%
	$	17.03		6.29	%		$	2,045			1.47	%		1.71	%		1.47	%		16.62	%
	$	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	%
	$	10.55		2.07	%		$	5			0.98	%		2.46	%		1.07	%		29.46	%
	$	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	%

126

Sterling Capital Funds

Notes to Financial Statements

March 31, 2016 (Unaudited)

1. Organization:

Sterling Capital Funds (the “Trust”) 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, Sterling Capital Mid Value Fund, 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, 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, Sterling Capital Strategic Allocation Growth Fund, Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund and Sterling Capital Stratton Small Cap Value 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 Wes 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. The financial statements herein do not relate to the Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund and Sterling Capital Stratton Small Cap Value Fund, which are offered through separate prospectuses and a separate SAI, have a fiscal year ending December 31, 2015, and include financial statements in their most recent annual report.

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 March 31, 2016, 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 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

127

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

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 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 the closing price on the principal exchange or market (including the NASDAQ Closing Price for securities traded on NASDAQ), typically 4:00 PM ET or in the absence of such a price, by reference to the latest available bid price in the principal market in which such securities are normally traded. The Variable Net Asset Value Funds may also use an independent pricing service approved by the Board of Trustees (the “Board”) to value certain securities, including the use of electronic and matrix techniques. Investments in open-end investment companies, including underlying funds invested in by the Funds of Funds, are valued at their respective net asset values as reported by such companies. Investments in closed-end investment companies and exchange traded funds are valued at their market values based upon the latest available sale price or, absent such a price, by reference to the latest available bid prices in the principal market in which such securities are normally traded. The differences between cost and fair value of investments are reflected as either unrealized appreciation or depreciation. Securities for which market quotations are not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price) will be fair valued in accordance with procedures established in good faith under the general supervision of the Board. At March 31, 2016, the Sterling Capital Special Opportunities Fund has written options valued by the Sterling Capital Funds’ Pricing Committee (the “Pricing Committee”) recorded at fair value of $4,200, and represent 0.00041% 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

●  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)

128

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the period ended March 31, 2016, there were no significant changes to the valuation policies and procedures.

The summary of inputs used to determine the fair value of each Fund’s investments as of March 31, 2016 is as follows:

	Level 1– Quoted Prices			Level 2– Other Significant Observable Inputs		Level 3– Significant Unobservable Inputs	Total
Assets:
Investments in Securities
Sterling Capital Behavioral Large Cap Value Equity Fund	$	277,045,955	(a)	$	—	$—	$	277,045,955
Sterling Capital Mid Value Fund		611,730,576	(a)		—	—		611,730,576
Sterling Capital Behavioral Small Cap Value Equity Fund		151,647,791	(a)		—	—		151,647,791
Sterling Capital Special Opportunities Fund		1,025,239,706	(a)		—	—		1,025,239,706
Sterling Capital Equity Income Fund		1,623,147,679	(a)		—	—		1,623,147,679
Sterling Capital Long/Short Equity Fund		41,694,817	(a)		—	—		41,694,817
Sterling Capital Behavioral International Equity Fund		17,866,956	(a)		2,259(a)	—		17,869,215
Sterling Capital Ultra Short Bond Fund		1,117,653	(b)		46,328,255(a)	—		47,445,908
Sterling Capital Short Duration Bond Fund		2,299,181	(b)		82,743,038(a)	—		85,042,219
Sterling Capital Intermediate U.S. Government Fund		408,598	(b)		29,292,172(a)	—		29,700,770
Sterling Capital Total Return Bond Fund		9,214,845	(b)		670,244,714(a)	—		679,459,559
Sterling Capital Corporate Fund		2,561,561	(b)		62,971,971(a)	—		65,533,532
Sterling Capital Securitized Opportunities Fund		1,260,537	(b)		47,145,888(a)	—		48,406,425
Sterling Capital Kentucky Intermediate Tax-Free Fund		294,138	(b)		11,980,912(a)	—		12,275,050
Sterling Capital Maryland Intermediate Tax-Free Fund		191,198	(b)		34,385,313(a)	—		34,576,511
Sterling Capital North Carolina Intermediate Tax-Free Fund		6,016,965	(b)		192,475,871(a)	—		198,492,836
Sterling Capital South Carolina Intermediate Tax-Free Fund		4,140,435	(b)		79,990,083(a)	—		84,130,518
Sterling Capital Virginia Intermediate Tax-Free Fund		2,656,128	(b)		115,670,700(a)	—		118,326,828
Sterling Capital West Virginia Intermediate Tax-Free Fund		1,557,140	(b)		96,647,969(a)	—		98,205,109
Sterling Capital Diversified Income Fund		41,435,415	(a)		—	—		41,435,415
Sterling Capital Strategic Allocation Balanced Fund		32,967,420	(a)		—	—		32,967,420
Sterling Capital Strategic Allocation Growth Fund		23,217,663	(a)		—	—		23,217,663
Liabilities:
Investments Sold Short
Sterling Capital Long/Short Equity Fund	$	19,540,440	(a)		—	—	$	19,540,440
Other Financial Instruments-
Written Options (Equity Risk)
Sterling Capital Special Opportunities Fund (c)		236,40	0		4,200	—		240,600
Sterling Capital Equity Income Fund (c)		828,05	0		—	—		828,050
Sterling Capital Long/Short Equity Fund (c)		7,00	9		—	—		7,009

(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.

During the six months ended March 31, 2016, Behavioral International Equity had foreign common stock that was transferred from Level 2 to Level 1 due to the application at September 30, 2015 of fair value procedures resulting from volatility in U.S. markets after the close of foreign markets. The beginning of period value of the securities that transferred from Level 2 to Level 1 during the period amounted to $11,803,612 or 61.63% of net assets as of September 30, 2015. The Funds’ policy is to recognize transfers in and transfers out as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the period ended March 31, 2016 for the remaining Funds.

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.

129

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

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 March 31, 2016, are not accounted for as hedging instruments under U.S. GAAP. The following is a summary of the location of the derivative instruments held by the Funds on the Statements of Assets and Liabilities and the category of primary risk exposure as of March 31, 2016:

Fair Values of Derivative Instruments	Statements of Assets and Liabilities Location	Sterling Capital Special Opportunities Fund	Sterling Capital Equity Income Fund	Sterling Capital Long/Short Equity Fund
Liabilities
Equity contracts	Call options written	$240,600	$828,050	$7,009

The effect of derivative financial instruments on the Statements of Operations for the period ended March 31, 2016:

Net Realized Gain (Loss)	Sterling Capital Special Opportunities Fund	Sterling Capital Equity Income Fund	Sterling Capital Long/Short Equity Fund
Options (equity contracts)*	$(142,943)	$1,363,168	$(28,059)

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

Net Change in Unrealized Appreciation (Depreciation)	Sterling Capital Special Opportunities Fund	Sterling Capital Equity Income Fund	Sterling Capital Long/Short Equity Fund
Written options (equity contracts)	$184,929	$(556,381)	$126

For the period ended March 31, 2016, 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			5,050			4,038			26
Average premium of written option contracts		$	875,564		$	873,597		$	3,568
Average number of purchased option contracts			—			—			1,059
Average premium of purchased option contracts		$	—		$	—		$	398,740

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.

130

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

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 period.

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, Sterling Capital Equity Income Fund, and Sterling Capital Long/Short Equity 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).

131

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

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 period ended March 31, 2016 are as follows:

	Sterling Capital Special Opportunities Fund							Sterling Capital Equity Income Fund							Sterling Capital Long/Short Equity Fund
Covered Call Options	Number of Contracts			Premiums Received				Number of Contracts			Premiums Received				Number of Contracts			Premiums Received
Balance at beginning of period		5,400			$	604,184			4,325			$	1,150,294			—			$	—
Options written		6,700				1,189,885			7,550				1,284,342			860				114,841
Options closed		(3,300	)			(248,748	)		(3,600	)			(504,567	)		(488	)			(62,939	)
Options expired		(4,600	)			(789,409	)		(5,825	)			(1,410,155	)		(195	)			(29,657	)
Options exercised		—				—			—				—			(125	)			(15,110	)
Balance at end of period		4,200			$	755,912			2,450			$	519,914			52			$	7,135

The following is a summary of written call options outstanding as of March 31, 2016:

	Number of Contracts		Value
Sterling Capital Special Opportunities Fund
Autodesk, Inc., $67.50, 7/15/16		800		$	(52,800	)
Autodesk, Inc., $70.00, 4/15/16(a)		800			(4,000	)
Autodesk, Inc., $75.00, 4/15/16(a)		200			(200	)
Activision Blizzard, Inc., $36.00, 5/20/16		1,200			(98,400	)
Activision Blizzard, Inc., $37.00, 5/20/16		1,200			(85,200	)
		4,200		$	(240,600	)
Sterling Capital Equity Income Fund
McDonald’s Corporation, Inc., $125.00, 06/17/16		1,000		$	(396,000	)
Mead Johnson Nutrition Co., $16.00, 5/20/16		450			(22,050	)
Time Warner Cable, Inc., $210.00, 06/17/16		1,000			(410,000	)
		2,450		$	(828,050	)

132

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

	Number of Contracts		Value
Sterling Capital Long/Short Equity Fund
Amazon.com, Inc., $660.00, 5/20/16		3		$	(2,694	)
Electronic Arts, Inc., $70.00, 6/17/16		11			(2,277	)
Electronic Arts, Inc., $75.00, 6/17/16		16			(1,488	)
VF Corp., $55.00, 5/20/16		22			(550	)
		52		$	(7,009	)

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

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.

133

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

3. Purchases and Sales of Securities:

Purchases and sales of securities (excluding U.S. government securities and securities maturing less than one year from acquisition) for the period ended March 31, 2016 were as follows:

	Purchases		Sales
Sterling Capital Behavioral Large Cap Value Equity Fund	$	197,743,821	$	181,293,172
Sterling Capital Mid Value Fund		101,769,105		169,457,734
Sterling Capital Behavioral Small Cap Value Equity Fund		112,937,223		89,390,776
Sterling Capital Special Opportunities Fund		194,529,067		192,878,646
Sterling Capital Equity Income Fund		250,354,321		351,046,016
Sterling Capital Long/Short Equity Fund		155,738,722		205,357,514
Sterling Capital Behavioral International Equity Fund		13,633,184		14,945,173
Sterling Capital Ultra Short Bond Fund		17,417,297		10,098,761
Sterling Capital Short Duration Bond Fund		19,160,215		24,468,375
Sterling Capital Intermediate U.S. Government Fund		1,078,845		937,220
Sterling Capital Total Return Bond Fund		132,054,623		108,248,649
Sterling Capital Corporate Fund		16,907,441		16,480,724
Sterling Capital Securitized Opportunities Fund		7,851,519		5,396,377
Sterling Capital Kentucky Intermediate Tax-Free Fund		1,051,017		2,558,535
Sterling Capital Maryland Intermediate Tax-Free Fund		4,041,344		5,965,421
Sterling Capital North Carolina Intermediate Tax-Free Fund		8,330,241		5,174,541
Sterling Capital South Carolina Intermediate Tax-Free Fund		6,843,567		2,183,674
Sterling Capital Virginia Intermediate Tax-Free Fund		5,740,141		6,739,661
Sterling Capital West Virginia Intermediate Tax-Free Fund		4,413,365		8,579,151
Sterling Capital Diversified Income Fund		8,414,566		11,069,192
Sterling Capital Strategic Allocation Balanced Fund		1,437,494		3,047,000
Sterling Capital Strategic Allocation Growth Fund		1,286,682		2,966,000

Purchases and sales of U.S. government securities (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2016 were as follows:

	Purchases		Sales
Sterling Capital Long/Short Equity Fund	$	64,565	$	184,496
Sterling Capital Short Duration Bond Fund		7,473,890		3,269,088
Sterling Capital Intermediate U.S. Government Fund		6,441,868		6,915,359
Sterling Capital Total Return Bond Fund		91,777,872		85,377,172
Sterling Capital Corporate Fund		1,418,216		1,447,000
Sterling Capital Securitized Opportunities Fund		10,096,011		8,400,298

4. Investments in Affiliated Issuers:

A summary of the Funds’ transactions in the shares of affiliated issuers during the period ended March 31, 2016 is as follows:

	Shares Held at September 30, 2015		Shares Purchased		Shares Sold		Shares Held at March 31, 2016		Value at March 31, 2016			Dividend Income October 1, 2015- March 31, 2016			Distributions and Net Realized Gain (Loss) October 1, 2015- March 31, 2016
Sterling Capital Diversified Income Fund
Sterling Capital Corporate Fund, Institutional Shares		216,414		3,225		19,438		200,201		$	2,028,035		$	5,662		$	(3,242	)
Sterling Capital Securitized Opportunities Fund, Institutional Shares		219,233		2,732		23,070		198,895			1,988,940			4,677			401
Total Affiliates		435,647		5,957		42,508		399,096		$	4,016,975		$	10,339		$	(2,841	)

134

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

	Shares Held at September 30, 2015		Shares Purchased		Shares Sold		Shares Held at March 31, 2016		Value at March 31, 2016			Dividend Income October 1, 2015- March 31, 2016			Distributions and Net Realized Gain (Loss) October 1, 2015- March 31, 2016
Sterling Capital Strategic Allocation Balanced Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		1,040,079		23,059		55,635		1,007,503		$	9,299,259		$	222,000		$	(24,489	)
Sterling Capital Equity Income Fund, Institutional Shares		277,201		17,919		25,877		269,243			4,625,594			56,249			255,027
Sterling Capital Long/Short Equity Fund, Institutional Shares		392,836		32,704		3,476		422,064			3,296,321			—			72,417
Sterling Capital Special Opportunities Fund, Institutional Shares		202,824		30,609		23,687		209,746			4,700,423			—			641,789
Sterling Capital Total Return Bond Fund, Institutional Shares		1,154,248		—		147,179		1,007,069			10,674,939			198,943			(70,421	)
Total Affiliates		3,067,188		104,291		255,854		2,915,625		$	32,596,536		$	477,192		$	874,323
Sterling Capital Strategic Allocation Growth Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		948,804		13,128		95,112		866,820		$	8,000,745		$	197,676		$	(26,767	)
Sterling Capital Equity Income Fund, Institutional Shares		252,935		16,022		33,286		235,671			4,048,821			49,799			233,773
Sterling Capital Long/Short Equity Fund, Institutional Shares		342,793		27,077		11,433		358,437			2,799,395			—			56,373
Sterling Capital Special Opportunities Fund, Institutional Shares		185,048		26,396		29,147		182,297			4,085,281			—			596,353
Sterling Capital Total Return Bond Fund, Institutional Shares		432,415		9,767		68,149		374,033			3,964,751			72,935			(32,671	)
Total Affiliates		2,161,995		92,390		237,127		2,017,258		$	22,898,993		$	320,410		$	827,061

5. Related Party Transactions:

Under the terms of the investment advisory agreement, Sterling Capital Management LLC (“Sterling Capital” or the “Advisor”) is entitled to receive fees based on a percentage of the average daily net assets of the Funds. These fees are accrued daily and payable on a monthly basis and are reflected on the Statements of Operations as “Investment advisory fees.” Sterling Capital’s waived investment advisory fees are included on the Statements of Operations as “Less expenses waived by the Investment Advisor.” Information regarding these transactions is as follows for the period ended March 31, 2016:

	Prior to February 1, 2016						Effective February 1, 2016
	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	%		0.54	%(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	%		0.60	%(2)
Sterling Capital Special Opportunities Fund		0.75	%(3)		0.75	%(3)		0.75	%		0.67	%(2)
Sterling Capital Equity Income Fund		0.70	%(4)		0.70	%(4)		0.70	%		0.70	%
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	%		0.40	%(2)
Sterling Capital Ultra Short Bond Fund		0.20	%		0.20	%(6)		0.20	%		0.10	%(2)
Sterling Capital Short Duration Bond Fund		0.30	%		0.28	%(1)		0.30	%		0.20	%(2)

135

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

	Prior to February 1, 2016						Effective February 1, 2016
	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	%		0.35	%(1),(6)		0.43	%		0.32	%(2)
Sterling Capital Total Return Bond Fund		0.37	%		0.27	%(7)		0.37	%		0.27	%(2)
Sterling Capital Corporate Fund		0.35	%		0.35	%		0.35	%		0.35	%
Sterling Capital Securitized Opportunities Fund		0.35	%		0.31	%(1)		0.35	%		0.31	%(2)
Sterling Capital Kentucky Intermediate Tax-Free Fund		0.45	%		0.35	%(1),(6)		0.45	%		0.35	%(2)
Sterling Capital Maryland Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.45	%		0.35	%(2)
Sterling Capital North Carolina Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.45	%		0.35	%(2)
Sterling Capital South Carolina Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.45	%		0.35	%(2)
Sterling Capital Virginia Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.45	%		0.35	%(2)
Sterling Capital West Virginia Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.45	%		0.35	%(2)
Sterling Capital Diversified Income Fund		0.25	%		0.00	%(1)		0.25	%		0.25	%
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, 2015 through January 31, 2016.

⁽²⁾  Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2016 through January 31, 2017.

⁽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 Caerus Investors, 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. Caerus Investors, LLC began to serve as sub-advisor to the Sterling Capital Long/Short Equity Fund beginning on February 1, 2016. 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 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. 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.

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 base salary and incentive pay. As a result, the CCO fee paid by the Funds is only part of the total compensation received by the COO.

For the period ended March 31, 2016, the Funds paid $59,209 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

136

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

net assets of the Class A Shares, Class B Shares, Class C Shares, and Class R Shares, respectively. The Distributor is entitled to receive commissions on sales of shares of the Variable Net Asset Value Funds. For the period ended March 31, 2016, the Distributor received $444,869 from commissions earned on sales of shares of the Variable Net Asset Value Funds. Commissions paid to affiliated broker-dealers during the period ended March 31, 2016 were $252,931. 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 assets (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 payments, sometimes referred to as “revenue sharing” payments, are over and above any sales charges (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. 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 will expire on March 28, 2017. During the period ended March 31, 2016, 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 Mid Value Fund		1.25	%		$	1,013,000		3		$	106		$	1,013,000
Sterling Capital Special Opportunities Fund		1.25	%			2,685,024		4			372			3,940,000
Sterling Capital Long/Short Equity Fund		1.25	%			1,340,352		30			1,396			5,511,000
Sterling Capital Behavioral International Equity Fund		1.25	%			144,576		5			26			214,000

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

137

Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

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.

Capital losses originating in taxable years beginning on or before December 22, 2010 are permitted to be carried forward for eight taxable years; in the year to which they are carried forward, such losses are treated as short-term capital losses that first offset any short-term capital gains, and then offset any long-term capital gains. 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 carry forwards 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-2010 Capital Losses: Must be utilized prior to losses subject to expiration.

The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2015 was as follows:

	Distributions paid from
	Ordinary Income			Net Long-Term Gains			Total Taxable Distributions			Return Of Capital			Tax Exempt Distributions			Total Distributions Paid*
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

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Sterling Capital Funds

Notes to Financial Statements — (continued)

March 31, 2016 (Unaudited)

	Distributions paid from
	Ordinary Income			Net Long-Term Gains			Total Taxable Distributions			Return Of Capital			Tax Exempt Distributions			Total Distributions Paid*
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
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.

As of March 31, 2016, federal income tax cost, gross unrealized appreciation and gross unrealized depreciation on securities were as follows:

	Tax Cost		Gross Tax Unrealized Appreciation		Gross Tax Unrealized Depreciation			Net Tax Unrealized Appreciation (Depreciation)
Sterling Capital Behavioral Large Cap Value Equity Fund	$	260,438,764	$	25,489,276	$	(8,882,085	)	$	16,607,191
Sterling Capital Mid Value Fund		577,253,289		103,030,233		(68,552,946	)		34,477,287
Sterling Capital Behavioral Small Cap Value Equity Fund		139,347,061		17,161,555		(4,860,825	)		12,300,730
Sterling Capital Special Opportunities Fund		771,091,435		271,010,832		(16,862,561	)		254,148,271
Sterling Capital Equity Income Fund		1,315,912,149		340,645,038		(33,409,508	)		307,235,530
Sterling Capital Long/Short Equity Fund		28,587,666		2,961,481		(9,394,770	)		(6,433,289	)
Sterling Capital Behavioral International Equity Fund		17,953,240		1,418,255		(1,502,280	)		(84,025	)
Sterling Capital Ultra Short Bond Fund		47,791,656		28,497		(374,245	)		(345,748	)
Sterling Capital Short Duration Bond Fund		85,713,986		244,643		(916,410	)		(671,767	)
Sterling Capital Intermediate U.S. Government Fund		28,878,417		823,371		(1,018	)		822,353
Sterling Capital Total Return Bond Fund		671,783,921		16,001,930		(8,326,292	)		7,675,638
Sterling Capital Corporate Fund		64,888,878		1,407,563		(762,909	)		644,654
Sterling Capital Securitized Opportunities Fund		47,811,399		822,991		(227,965	)		595,026
Sterling Capital Kentucky Intermediate Tax-Free Fund		11,520,832		755,008		(790	)		754,218
Sterling Capital Maryland Intermediate Tax-Free Fund		32,814,649		1,761,862		—			1,761,862
Sterling Capital North Carolina Intermediate Tax-Free Fund		186,651,014		11,841,822		—			11,841,822
Sterling Capital South Carolina Intermediate Tax-Free Fund		80,334,578		3,795,940		—			3,795,940
Sterling Capital Virginia Intermediate Tax-Free Fund		111,874,296		6,452,532		—			6,452,532
Sterling Capital West Virginia Intermediate Tax-Free Fund		93,230,766		4,974,343		—			4,974,343
Sterling Capital Diversified Income Fund		43,019,350		527,596		(2,111,531	)		(1,583,935	)
Sterling Capital Strategic Allocation Balanced Fund		33,642,233		956,100		(1,630,913	)		(674,813	)
Sterling Capital Strategic Allocation Growth Fund		23,878,467		793,631		(1,454,435	)		(660,804	)

9. Subsequent Events:

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

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BOARD CONSIDERATION OF ADVISORY AGREEMENTS (UNAUDITED)

Continuation of Current Advisory Agreement and Sub-Advisory Agreements

The Board of Trustees conducted in-person meetings in August and November 2015 to consider the continuance of the investment advisory agreement between Sterling Capital Funds (the “Trust”) and Sterling Capital Management LLC (“Sterling Capital” or the “Adviser”), the investment adviser to each series of the Trust (the “Funds”), for a new term running through January 31, 2017. The Board of Trustees also considered the continuance of the sub-advisory agreements of Sterling Capital with each of Lucas Capital Management, Gator Capital Management, Emancipation Capital LLC and Highland Capital Healthcare Advisors, L.P. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”), with respect to the Sterling Capital Long/Short Equity Fund (the “Long/Short Fund”), each for a new term running through January 31, 2017. The above referenced agreements are collectively referred to herein as the “Advisory Agreements” and the Adviser and the Sub-Advisers are collectively referred to herein as the “Advisers.”

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

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

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

Nature, Extent and Quality of Services Provided by the Adviser

The Trustees received and considered information regarding the nature, extent, and quality of the services provided to each Fund under the Advisory Agreements. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as materials furnished specifically in connection with the annual review process. The Trustees conduct periodic meetings with representatives of each Fund’s portfolio management team over the course of the year, and periodically receive “deep dive” attribution analyses regarding specific Funds. The Trustees considered the background and experience of each Adviser’s senior management and the expertise of investment personnel of the Adviser responsible for the day-to-day management of each Fund. The Trustees considered the overall reputation, and the capabilities and commitment of the Advisers to provide high quality service to the applicable Funds.

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

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

Investment Performance

The Trustees considered the performance results of each Fund over various periods in absolute terms and relative to each Fund’s benchmark and peer group. In conducting their review, the Trustees focused particular attention on cases where a Fund’s longer-term performance compared unfavorably with peers. The Trustees noted that Sterling Capital had been proactive in identifying and replacing underperforming portfolio managers and taking other steps to address underperformance concerns with certain Funds.

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

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

The Trustees considered peer group information with respect to the advisory fees charged by Sterling Capital to each of the Funds, taking into consideration both contractual and actual (i.e., after fee waivers) fee levels. The Trustees concluded that the investment advisory fees paid by the Funds fell within an acceptable range as compared to peer groups, and were fair and reasonable, particularly in light of the fee waivers agreed to by Sterling Capital through January 2017 (and discussed below under “Economies of Scale”).

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

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

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

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

Economies of Scale

The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Funds’ assets. The Trustees considered that Sterling Capital had reduced the total expense ratios for a number of Funds in part through fee waivers, including fee waivers agreed to as part of the 2015 contract review process for the Sterling Capital Total Return Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Kentucky Intermediate Tax-Free Fund, Sterling Capital Maryland Intermediate Tax-Free Fund, Sterling Capital North Carolina Intermediate Tax-Free Fund, Sterling Capital South Carolina Intermediate Tax-Free Fund, Sterling Capital Virginia Intermediate Tax-Free Fund and Sterling Capital West Virginia Intermediate Tax-Free Fund. In addition, the Trustees noted that Sterling Capital had agreed to implement an investment advisory fee breakpoint for each of the Sterling Capital Equity Income Fund and Sterling Capital Special Opportunities Fund as part of the 2013 contract review process. The Trustees found that the asset levels of the other Funds were not currently so large as to warrant formal contractual breakpoints.

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

The Board of Trustees, at meetings held on November 18-19, 2015, formally considered the approval of a Subadvisory Agreement (the “New Subadvisory Agreement”) between Sterling Capital (the “Adviser”) and Caerus Investors, LLC (“Caerus”) with respect to the Long/Short Fund.

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

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In their deliberations regarding the New Subadvisory Agreement, each Trustee attributed different weights to various factors involved in an analysis of the New Subadvisory Agreement, and in each case no factor alone was considered determinative. The Trustees determined that the terms of the arrangement between the Adviser and Caerus, as provided in the New Subadvisory Agreement, were fair and reasonable and that the approval of the New Subadvisory Agreement was in the best interests of the Long/Short Fund and its shareholders.

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

Nature, Extent and Quality of Services Provided by the Adviser and the SubAdvisor

The Trustees received and considered information regarding the nature, extent, and quality of the services expected to be provided by Caerus to the Long/Short Fund under the New Subadvisory Agreement. The Trustees considered the proposed services to be provided to the Long/Short Fund by Caerus. The Board also considered the Adviser’s specific responsibilities with respect to oversight of Caerus as well as the qualifications, experience and responsibilities of the other key personnel that would be involved in the day-to-day activities of the Long/Short Fund. The Trustees concluded that the nature and quality of services that Caerus would provide to the Long/Short Fund appeared consistent with both those already provided to the Fund by other subadvisors and industry norms.

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

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

Investment Performance

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

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

The Trustees considered that Caerus would receive the same subadvisory fee as the other subadvisors to the Long/Short Fund. The Trustees noted that Caerus’ subadvisory fees were lower than the fees Caerus typically receives for managing other similar accounts.

The Trustees noted that there was no information available with respect to Caerus’ profitability from the Long/Short Fund because it had not yet commenced serving as subadvisor to the Long/Short Fund.

As part of their review, the Trustees considered benefits to Caerus aside from subadvisory fees. The Trustees considered the fallout benefits to Caerus such as the research services available to Caerus by reason of brokerage commissions generated by the Long/Short Fund.

Based on the foregoing, the Trustees concluded that the fees proposed under the New Subadvisory Agreement with the Adviser and Caerus were fair and reasonable, in light of the services and benefits expected to be provided to the Long/Short Fund.

Economies of Scale

The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Long/Short Fund’s assets. The Trustees found that the asset levels of the Long/Short Fund were not currently so large as to warrant formal contractual breakpoints and the Fund was unlikely to build its assets to such a point during the initial term of the New Subadvisory Agreement. The Trustees also noted that Caerus’ sub advisory fees would be paid by the Adviser out of the Adviser’s investment advisory fees, not by the Fund.

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Sterling Capital Funds

March 31, 2016

 Other Information (Unaudited)

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

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30^th is available (i) without charge, upon request, by calling 1-800-228-1872 and (ii) on the Commission’s website at 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 www.sec.gov, or may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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INVESTMENT ADVISOR

Sterling Capital Management LLC

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.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

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

(b) Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

Item 11. Controls and Procedures.

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

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

Item 12. Exhibits.

(a)(1) Not applicable.

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

(a)(3) Not applicable.

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

SIGNATURES

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

(Registrant)                              Sterling Capital Funds
By (Signature and Title)     /s/ James T. Gillespie
	James T. Gillespie, President
	(principal executive officer)
Date    5/24/2016

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    5/24/2016

By (Signature and Title)     /s/ Todd M. Miller
	Todd M. Miller, Treasurer
	(principal financial officer)
Date    5/24/2016