Sterling Capital Equity Income Fund (BAEIX) N-CSR Certified 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 Ave., Suite 100

Raleigh, NC 27612

(Address of principal executive offices) (Zip code)

James T. Gillespie, President

Sterling Capital Funds

3605 Glenwood Ave., Suite 100

Raleigh, NC 27612

(Name and address of agent for service)

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

Date of fiscal year end:   September 30

Date of reporting period:   September 30, 2017

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, 450 Fifth Street, NW, Washington, DC 20549-0609. 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 provide this notice to you so that you will know what kinds of information we collect about shareholders¹, prospective investors, and individuals (such as beneficiaries), and the circumstances in which that information may be disclosed to third parties who are not affiliated with Sterling Capital Funds.

Collection of Personal Information

We collect nonpublic personal information about you from the following sources:

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

• Account History, including information about the transactions and balances in your account(s);

• Correspondence, written, telephonic or electronic between you and Sterling Capital Funds or service providers working on behalf of Sterling Capital Funds;

• Online, your name and e-mail address if you provide them; and

• Third Parties, such as your financial intermediary in connection with your transactions, or third-party data services used to verify or update personal information that you provide.

To comply with federal regulations, information we receive from you or a third party will be used to verify your identity.

Disclosure of Personal Information

We may disclose your personal information as permitted by law to third parties who are not affiliated with the Sterling Capital Funds, including:

• in connection with legal proceedings, such as responding to a subpoena;

• to service providers who maintain or service shareholder accounts for Sterling Capital Funds or to a shareholder’s broker or agent; or to companies that mail account-related materials, such as shareholder reports; and

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

Safeguarding of Personal Information

Sterling Capital Funds employs policies, practices and procedures for safeguarding your personal information that we believe comply with applicable law, however no security measures are perfect or impenetrable.

We request that all service providers to Sterling Capital Funds:

• maintain policies and procedures designed to assure only appropriate access to, and use of your personal information; and

• maintain physical, electronic and procedural safeguards that comply with applicable legal standards to guard your nonpublic personal information.

When information is shared with third parties, they are not permitted to use the information for any purpose other than to assist our servicing of your account(s), including helping us improve the services we offer.

¹ For purposes of this notice, the terms “shareholder” or “shareholders” includes both individual shareholders (both current and former) of the Sterling Capital Funds and individuals (such as beneficiaries, for example) whose nonpublic personal information is provided to the Sterling Capital Funds, even though they do not invest in Sterling Capital Funds shares.

Sterling Capital Funds

Table of Contents

Letter from the President and the Investment Advisor	1
Fund Summary
Sterling Capital Behavioral Large Cap Value Equity Fund	2
Sterling Capital Mid Value Fund	4
Sterling Capital Behavioral Small Cap Value Equity Fund	6
Sterling Capital Special Opportunities Fund	8
Sterling Capital Equity Income Fund	10
Sterling Capital Long/Short Equity Fund	12
Sterling Capital Behavioral International Equity Fund	14
Sterling Capital SMID Opportunities Fund	16
Sterling Capital Stratton Mid Cap Value Fund	18
Sterling Capital Stratton Real Estate Fund	20
Sterling Capital Stratton Small Cap Value Fund	22
Sterling Capital Ultra Short Bond Fund	24
Sterling Capital Short Duration Bond Fund	26
Sterling Capital Intermediate U.S. Government Fund	28
Sterling Capital Total Return Bond Fund	30
Sterling Capital Corporate Fund	32
Sterling Capital Securitized Opportunities Fund	34
Sterling Capital Kentucky Intermediate Tax-Free Fund	36
Sterling Capital Maryland Intermediate Tax-Free Fund	38
Sterling Capital North Carolina Intermediate Tax-Free Fund	40
Sterling Capital South Carolina Intermediate Tax-Free Fund	42
Sterling Capital Virginia Intermediate Tax-Free Fund	44
Sterling Capital West Virginia Intermediate Tax-Free Fund	46
Sterling Capital Diversified Income Fund	48
Sterling Capital Strategic Allocation Funds	50
Summary of Portfolio Holdings	54
Expense Example	58
Schedules of Portfolio Investments
Sterling Capital Behavioral Large Cap Value Equity Fund	62
Sterling Capital Mid Value Fund	64
Sterling Capital Behavioral Small Cap Value Equity Fund	65
Sterling Capital Special Opportunities Fund	68
Sterling Capital Equity Income Fund	69
Sterling Capital Long/Short Equity Fund	70
Sterling Capital Behavioral International Equity Fund	74
Sterling Capital SMID Opportunities Fund	76
Sterling Capital Stratton Mid Cap Value Fund	77
Sterling Capital Stratton Real Estate Fund	78
Sterling Capital Stratton Small Cap Value Fund	79
Sterling Capital Ultra Short Bond Fund	80
Sterling Capital Short Duration Bond Fund	83
Sterling Capital Intermediate U.S. Government Fund	87
Sterling Capital Total Return Bond Fund	89
Sterling Capital Corporate Fund	97
Sterling Capital Securitized Opportunities Fund	100
Sterling Capital Kentucky Intermediate Tax-Free Fund	104
Sterling Capital Maryland Intermediate Tax-Free Fund	105
Sterling Capital North Carolina Intermediate Tax-Free Fund	107
Sterling Capital South Carolina Intermediate Tax-Free Fund	110
Sterling Capital Virginia Intermediate Tax-Free Fund	112
Sterling Capital West Virginia Intermediate Tax-Free Fund	115
Sterling Capital Diversified Income Fund	117
Sterling Capital Strategic Allocation Balanced Fund	118
Sterling Capital Strategic Allocation Growth Fund	119
Financial Statements	120
Notes to Financial Statements	188
Report of Independent Registered Public Accounting Firm	204
Other Information	206
Board of Trustees	207

(This page has been left blank intentionally.)

Letter from the President and the Investment Advisor

Dear Shareholders:

We are pleased to present this Sterling Capital Funds annual report covering the 12 months between October 1, 2016 and September 30, 2017.

U.S. equity markets rose significantly after the presidential election as investors considered the strong likelihood of pro-growth policies such as increased infrastructure spending, tax reform and financial services deregulation. Stocks continued to rise steadily through the 12-month period under review. Global equities also experienced strong growth due to indications that the already strong global economy would continue to grow. By late in the period, international equities were the top-performing geographic segment, with European equities turning in the strongest performance. The U.S. Federal Reserve raised interest rates three times during the period, with those hikes coming in December, March and June. Even so, fixed-income securities posted positive total returns.

Continued Economic Growth

The U.S. economy grew more swiftly than in the previous period. Gross domestic product (GDP) grew at an annual rate of 2.1% during the fourth quarter of 2016. The economy’s growth rate fell to 1.2% in the first quarter of 2017 amid concerns about poor inventory investment and faltering consumer spending. GDP growth picked up in the second quarter of 2017, however, with the economy expanding at a rate of 3.1% amid rising investment in business stockpiles, particularly farm inventories.

Economic indicators in the U.S. were positive during the 12-month period. The unemployment rate improved slightly, beginning the period at 5% and declining to 4.4% in September 2017. Consumer-related data was positive, with rising personal income, wages and consumer confidence. Consumer spending increased for the period, although the growth rate fell to as low as 0.1% in August. Home prices and sales rose; the number of building permits rose 4.7% during the 12 months through October 2017.

U.S. exports increased due to a weaker dollar and strong economic growth abroad. Inflation rose 2.2% for the 12-month period. Strong corporate profits buoyed stock prices during much of the period.

U.S. Equities Make Strong Gains

The S&P 500^® Index¹ (S&P 500) climbed 16.2% during the 12 months under review. Small-cap stocks outperformed larger company shares. The Russell 2000^® Index² (Russell 2000) of small-cap stocks delivered a total return of 19.1%,

compared to a 16.2% return for the Russell 1000^® Index³ (Russell 1000), which measures large-cap stocks. International stocks as measured by the MSCI EAFE Net Index returned 19.1% for the period. Emerging markets outpaced developed markets, with the MSCI Emerging Markets Index climbing 20.3%. The Bloomberg Barclays U.S. Aggregate Bond Index returned 5.2%. The Federal Reserve raised short-term interest rates, and long-term rates marginally declined, creating a flatter yield curve.

U.S. equities struggled slightly very early in the period, but rallied after the presidential election. U.S. stock share prices continued to rise through February 2017, as markets climbed to record highs. Stock prices fell in March as investors questioned whether the Trump administration could implement its growth-oriented proposals, but rebounded to post strong gains during the rest of the period, led by sectors such as health care and financial services.

The technology sector posted strong returns during the period due in part to strong earnings from bellwether firms such as Facebook, Amazon, Apple, Microsoft and Alphabet, the parent company of Google, which collectively are known as the “FAAMG” stocks.

Gains in Foreign Stocks

All but four of the 30 largest global markets gained ground during the period, despite a rocky start. Global equities fell in October but rebounded the following month. Global equities worldwide rose as investors anticipated Donald Trump’s presidential election victory would lead to pro-growth policies. Strong economic growth in international developed markets, including Italy, Spain and Germany helped support stock prices overseas. Global stocks also received a boost from higher energy prices after OPEC nations cut production early in the period.

The global stock market rally continued in the first quarter of 2017 as emerging markets — including India, China and Brazil — performed well against a weakening dollar.

Our Perspective

The U.S. economy has continued to grow steadily despite some potential challenges. These challenges included increasing geopolitical risks, with tensions in North Korea, Russia, the Middle East and Venezuela. Negotiations over the British exit from the European Union have continued to cause uncertainty in European markets.

Damage from Hurricane Harvey and Hurricane Irma disrupted the domestic economy, affecting energy supplies and transportation.

The Trump administration’s ability to implement strong pro-growth policies that will stimulate economic growth has become more uncertain. Meanwhile, monetary policy, which has been exceptionally accommodating over the last decade, has shown signs of becoming more restrictive. We believe that these factors could dampen economic growth and corporate profits in the coming months. Investors seem to be looking past such challenges, focusing instead on positive factors such as global economic expansion and corporate earnings growth. We believe that the stock market’s continued resilience and relatively low market volatility may have lulled some investors into complacency. Global and domestic uncertainties, in our opinion, could lead to greater volatility in the financial markets.

Given the current climate, we continue to recommend that investors maintain well-diversified portfolios. We believe that the stock market still offers better value than the fixed income markets, which have continued to offer low yields. We are focused on companies with strong balance sheets and ample cash. We will continue to monitor events, and 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.

²  “Russell 2000^®” is a registered service mark of FTSE Russell, which does not sponsor and is in no way affiliated with the Sterling Capital Funds. The Russell 2000^® Index is a small-cap market index of the bottom 2,000 stocks in the Russell 3000^® Index. 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.

³  “Russell 1000^®” is a registered service mark of FTSE Russell, which does not sponsor and is in no way affiliated with the Sterling Capital Funds. The Russell 1000^® Index is a large-cap market index of the largest stocks in the U.S. equity markets. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. A Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.

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

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

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

1

Sterling Capital Behavioral Large Cap Value Equity Fund

Portfolio Managers

Sterling Capital Behavioral Large Cap Value Equity Fund (the “Fund”) is managed by Robert W. Bridges, CFA, and Robert O. Weller, CFA, Executive Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Robert W. Bridges, CFA

Mr. Bridges, CFA, Executive Director joined Sterling Capital in 1996 and has been a co-portfolio manager of the Fund since 2013. He has investment experience since 1991. He is a graduate of Wake Forest University where he received his BS in Business.

Robert O. Weller, CFA

Mr. Weller, CFA, Executive Director joined Sterling Capital in 2012 and has been a co-portfolio manager of the Fund since 2013. He has investment experience since 1996. He is a graduate of Loyola University Maryland where he received his BBA in Finance.

Investment Considerations

The overall results of the Fund will be dependent on the process and ability of the Adviser to apply “behavioral finance” principles to recognize a company’s value, earnings revisions and price momentum. The Fund may invest in undervalued securities which may not appreciate in value as anticipated or remain undervalued for longer than anticipated. The overall results of the Fund will be dependent on the process and ability of the Adviser to recognize a company’s value. The Fund may invest in REITs (Real Estate Investment Trusts), the value of which will be affected by conditions of the real estate industry. The Fund may also invest in exchange-traded funds (ETFs); thus shareholders may bear additional costs and the ETF may not exactly replicate the performance it seeks to track.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Russell 1000^® Value Index.

Q. What factors affected the Fund’s performance?

A. Historically low interest rates and low but stable economic growth in the U.S. provided a backdrop for healthy double-digit gains in the U.S. stock market, continuing a trend that began in the previous year. Corporate earnings growth exceeded analysts’ expectations during the first and second quarters of 2017. The U.S. Federal Reserve decision to raise interest rates slowly but steadily, along with their stated plan to raise rates going forward had a positive impact on interest rate sensitive sectors such as the financial sector. The technology sector also performed well over the period, posting gains across nearly all technology-related industries.

The Fund’s outperformance relative to its benchmark is in large part due to its strategy of applying principles of behavioral finance to its investment decisions. This process is specifically designed to capitalize

upon known investor biases and heuristics (mental shortcuts) by accounting for the impact on markets of behavioral factors such as greed, fear and ego.

The Fund’s exposure to momentum-based behavioral strategies was a neutral contributor during the first nine months of the period but it became a positive factor in the final quarter. Stock selection in the technology sector, particularly investments in the semi-conductor, hardware, and software subsectors, boosted the Fund’s relative performance during the period. As energy prices rebounded, the Fund’s investment in energy companies also added to relative results across industry groups, including refiners and oil services.

The Fund’s exposure to value-based behavioral strategies hurt relative returns. Although value stocks generated strong gains during the fourth quarter of 2016, they lagged their growth-oriented counterparts for the full period under review. Moreover, the Fund’s bias toward smaller companies than the benchmark average detracted from returns. Stock selection in consumer staples and utilities also dragged on the Fund’s relative performance.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

2

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	10/9/92	12.09%	10.21%	3.08%
Class C Shares**	2/1/01	18.00%	10.70%	2.92%
Institutional Shares	10/9/92	19.18%	11.79%	3.95%
Russell 1000® Value Index	N/A	15.12%	13.20%	5.92%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Russell 1000^® Value Index is a widely recognized index of common stocks that measures the performance of the large-cap value sector of the U.S. equity market. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

3

Sterling Capital Mid Value Fund

Portfolio Manager

Timothy P. Beyer, CFA

Sterling Capital Mid Value Fund (the “Fund”) is managed by Timothy P. Beyer, CFA, Managing Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Beyer joined Sterling Capital in 2004 and has been the lead portfolio manager of the Fund since 2005. He has investment experience since 1989. Mr. Beyer is a graduate of East Carolina University where he received his BSBA in Finance.

Investment Considerations

The Fund may invest in undervalued securities that may not appreciate in value as anticipated or remain undervalued for longer than anticipated. Investments made in small to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory and are more sensitive to adverse conditions. The Fund may invest in foreign securities, which may be more volatile and less liquid due to currency fluctuation, political instability, social and economic risks.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. During this period, the Sterling Capital Mid Value Fund’s Institutional Shares returned 15.7% (net of fees) vs. 13.4% for our benchmark - the Russell Midcap^® Value Index.

Q. What factors led to the fund’s strong returns?

A. After the election in November, market expectations shifted rapidly to expectations of higher economic growth, higher inflation, and higher interest rates provided by new pro-growth policies, lower corporate and individual tax rates, and less regulation. The expected changes in policy and their economic consequences led to a massive sector rotation - into financials, industrials, and other cyclicals and out of defensive sectors such as utilities, REITs, and consumer staples. While little has been accomplished in Washington in this regard, the market has appeared to give the President and his agenda the benefit of the doubt as the market has continued its post-election rally.

We were very well positioned for this shift to a higher rate and more pro-cyclical environment. While we didn’t anticipate the election results, we did have a strong belief that negative real interest rates in the U.S and P/E ratios north of 20x on utility stocks and other bond-like equities weren’t sustainable. As a result, we have had big underweights to stocks that correlate highly with bonds and have been overweight cyclicals stocks and those that benefit from higher rates. We expressed this positioning with an overweight to industrials and financials while being dramatically underweight utilities and REITs, which benefitted the portfolio during the period.

The biggest headwind to relative performance during the period was our overweight to consumer discretionary stocks, specifically retailers and media companies. Both industries have faced headwinds from changes in technology. We reduced our holdings to both retailers and

media companies that we feel are most exposed to these trends.

On balance, we added value through both macro tailwinds and good stock selection during the period.

Q. What specific stocks had the biggest impact on the portfolios returns during this period?

Top Five Contributors	Top Five Detractors
E*TRADE	Hertz Global
Lincoln National	DHI Group
Leucadia National	Southwestern Energy
CBRE Group	Ascena Retail Group
Ryman Hospitality	Zimmer Biomet Holdings

*In order from largest to smallest

As you can see, all of our largest contributors to performance were in the financial sector, benefitting from higher interest rates and the anticipation of improving economic growth. Our biggest detractors fell across multiple sectors. Hertz, our largest detractor during the period, has been sold.

Q. What is your outlook for the market and the portfolio?

While market valuations are full, the fundamental back drop for equities has continued to be positive with low interest rates and improving global economic growth. Future equity returns will likely be lower than historic norms, but remain competitive with other asset classes, in our view.

While we have lowered our exposure to industrials and cyclicals on valuations, we have still maintained a slight cyclical bias in the fund. We have also continued to have a bias towards higher rates. We have reached full employment and the global economy continues to strengthen which supports our current positioning.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

4

 *     Reflects 5.75% maximum sales charge.

 **   Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	8/1/96	8.79%	12.19%	6.73%
Class C Shares**	7/25/01	14.58%	12.68%	6.53%
Institutional Shares	8/1/96	15.73%	13.79%	7.60%
Class R Shares	1/29/101	15.18%	13.04%	7.11%
Russell Midcap® Value Index	N/A	13.37%	14.33%	7.85%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of the Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower.

The Fund is measured against the Russell Midcap^® Value Index, an unmanaged index, which measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap^® Index companies with lower price-to-book ratios and lower forecasted growth values. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

5

Sterling Capital Behavioral Small Cap Value Equity Fund

Portfolio Managers

Sterling Capital Behavioral Small Cap Value Equity Fund (the “Fund”) is managed by Robert W. Bridges, CFA, and Robert O. Weller, CFA, Executive Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Robert W. Bridges, CFA

Mr. Bridges, CFA, Executive Director joined Sterling Capital in 1996 and has been a co-portfolio manager of the Fund since 2013. He has investment experience since 1991. He is a graduate of Wake Forest University where he received his BS in Business.

Robert O. Weller, CFA

Mr. Weller, CFA, Executive Director joined Sterling Capital in 2012 and has been a co-portfolio manager of the Fund since 2013. He has investment experience since 1996. He is a graduate of Loyola University Maryland where he received his BBA in Finance.

Investment Considerations

The overall results of the Fund will be dependent on the process and ability of the Adviser to apply “behavioral finance” principles to recognize a company’s value, earnings revisions and price momentum. The Fund may invest in undervalued securities which may not appreciate in value as anticipated or remain undervalued for longer than anticipated. Investments made in small to mid-capitalization companies are subject to greater risks than large company stocks due to limited resources and inventory as well as more sensitive to adverse conditions.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Russell 2000^® Value Index.

Q. What factors affected the Fund’s performance?

A. Historically low interest rates and low but stable economic growth in the U.S. helped the U.S. stock market post healthy double-digit gains during the period. The Fund’s strong absolute returns were based primarily on robust corporate earnings growth that exceeded analysts’ expectations during the first and second calendar quarters of 2017. Modest interest rate increases and the Federal Reserve’s stated plan to enact increases later in 2017 and again in 2018 had a positive impact on interest rate-sensitive stocks held by the Fund, including those in the financial sector.

The Fund applies principles of behavioral finance to its invest strategy. This process is designed to capitalize on known investor biases and heuristics (mental shortcuts) by accounting for the impact on markets of behavioral factors such as greed, fear and ego.

The value and momentum factors used in the Fund’s behavioral strategy added to relative returns. Value stocks provided strong returns during

the fourth quarter of 2016 in the wake of the U.S. presidential election due to broad expectations of pro-growth initiatives and corporate tax reform. The anticipation of rising interest rates particularly boosted the prospects of financial services companies, which comprise nearly 40% of the benchmark index, leading to value’s outperformance during the period. Momentum added to relative results as well. This behavioral strategy was a neutral contributor during the first nine months of the period and then turned positive during the final three months, adding to overall returns.

Stock selection in the financials and industrial sectors contributed to the Fund’s relative performance, particularly the Fund’s investments in an agricultural finance company and a regional airline. The Fund’s bias toward larger-than-benchmark companies also boosted relative returns, a shift from the prior two years where size of market cap within the benchmark was largely a neutral factor.

Stock selection in the health care and real estate sectors detracted from the Fund’s relative performance during the period. In particular, holdings of a biotechnology company in the process of developing protein therapeutics dragged on returns.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

6

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	1/29/101	14.63%	12.09%	7.38%
Class C Shares**	1/29/101	20.73%	12.57%	7.40%
Institutional Shares	1/2/97	21.89%	13.69%	8.22%
Class R Shares	1/29/101	21.52%	13.19%	7.94%
Russell 2000® Value Index	N/A	20.55%	13.27%	7.14%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class A, C and R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares and have been adjusted for maximum CDSC to the applicable class but does not include12b-1 fees, which if reflected, would have caused performance of Class A, B C and R Shares to be lower. The performance information for Institutional Shares (formerly known as Sterling Shares) prior to 12/18/06 is based on the performance of the Institutional Shares of the Fund’s predecessor, Sterling Capital Small Cap Value Fund, a series of The Advisors’ Inner Circle Fund (the “Predecessor Fund”), which transferred all of its assets and liabilities to the Fund pursuant to a reorganization. The performance of the Fund’s Institutional Shares would have been different because the Fund’s Institutional Shares have different expenses than the Predecessor’s Institutional Shares.

The Russell 2000^® Value Index is a widely recognized index of common stocks that measures the performance of the small-cap value sector of the U.S. equity market. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

7

Sterling Capital Special Opportunities Fund

Portfolio Manager

George F. Shipp, CFA

Sterling Capital Special Opportunities Fund (the “Fund”) is managed by George F. Shipp, CFA, Senior Managing Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Shipp joined the CHOICE Asset Management Team of Scott & Stringfellow in 2000 and Sterling Capital as part of a business realignment in 2013. He has been the Fund’s lead portfolio manager since inception and also manages the Sterling Capital Equity Income Fund. He has investment experience since 1982. Mr. Shipp is a graduate of the University of Virginia and received his MBA at the Darden Graduate School of Business.

Investment Considerations

The Fund is subject to investment style risk, which depends on the market segment in which the Fund is primarily invested. An investment in growth stocks may be particularly sensitive to market conditions while value stocks may be undervalued for longer than anticipated. The Fund may invest in foreign securities subject to risks such as currency volatility and political and social instability or small capitalization companies subject to greater volatility and less liquidity due to limited resources or product lines. The Fund may engage in writing covered call options on securities. By writing covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the premium and the strike price, but continues to bear the risk of a decline in the stock price. While the Fund receives premiums for writing covered call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

The Sterling Capital Special Opportunities Fund’s Institutional Shares generated a 16.22% total return for the year ended September 30, 2017. Its primary benchmark, the Russell 3000^®Index (Russell 3000) performed even better, gaining 18.71% as investors increasingly came to believe economies in the U.S., Europe, and Asia were “in gear” together for the first time in a decade.

Q. What factors affected the Fund’s performance?

Stock prices moved higher in 11 consecutive months for the first time since 1959, but the relentless rally unfolded in phases. A 1000-point overnight turnaround (in the Dow Industrials) following the unexpected U.S. election outcome sparked a surge in perceived beneficiaries of the new Administration, specifically Financials, Industrials, and Energy stocks. As the calendar turned, “secular growth stocks” in the Technology arena assumed the mantle of leadership. The dollar’s 9% drop through the first nine months of 2017 ultimately provided a tailwind for multi-national exporters, transportation companies, and some commodity producers.

Technology issues were the strongest stocks in the market (Russell 3000 constituents +28%) and in our portfolio (+27%). Security software leader Checkpoint (47%), gaming maker Activision (46%), and “open source” infrastructure software purveyor Red Hat (61%, but only for a partial year) were particularly helpful. On the downside, “over the top” internet video enabler Akamai fell 8%, due to softer-than-expected earnings results.

The most positive contributors to relative returns were Consumer Discretionary stocks, where the Fund had both a significant over-weight

allocation and favorable stock selection. Concert promoter Live Nation (58%) and Norwegian Cruise Lines (43%) both rode the wave of our “experiences over things” theme, while Delphi Automotive (40%) was (properly) identified as a key beneficiary of the electrification of cars. Unfortunately those outsized gains were partially offset by the poor performance of cable programmer Discovery Communications (-23%) and Newell Brands (-18%), maker of Yankee Candle, Sharpie, Elmer’s, and other household items.

Opryland and convention hotel owner Ryman Hospitality’s 36% return checked in as a top-five contributor, pacing solid out-performance in the Real Estate sector.

The Fund’s diversified Healthcare selections posted widely divergent results, netting to a positive 256 basis point contribution to absolute performance, but negative relative returns. Insurance leader United Healthcare successfully expanded membership and margins to fuel a 42% gain. The portfolio’s worst performing stock was Mednax; the nation’s largest neonatal care, radiology, and anesthesiology group suffered a 35% decline due to poor execution integrating recent practice acquisitions, combined with unexpected reimbursement changes.

The Fund was not positioned properly for the rebound in the Industrial sector, where Russell 3000 members gained 23%, correctly discounting the earnings rebound now unfolding. The Fund’s modest underweight was compounded by its position in heretofore-steady Nielsen Holdings, which fell 20% as its clients pulled back their spending on market research. To an extent we anticipated the Amazon-related pressure on Consumer Staples companies (zero weighting in the sector, helping relative results), but clearly we underestimated the derivative impact.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

8

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	6/2/03	9.32%	12.75%	7.68%
Class C Shares**	6/2/03	15.08%	13.23%	7.51%
Institutional Shares	6/2/03	16.22%	14.37%	8.59%
Class R Shares	1/29/101	15.66%	13.81%	8.23%
Russell 3000® Index	N/A	18.71%	14.23%	7.57%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower.

The Fund is measured against the Russell 3000^® Index, an unmanaged index that is generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

9

Sterling Capital Equity Income Fund

Portfolio Manager

George F. Shipp, CFA

Sterling Capital Equity Income Fund (the “Fund”) is managed by George F. Shipp, CFA, Senior Managing Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Shipp joined the CHOICE Asset Management Team of Scott & Stringfellow in 2000 and Sterling Capital as part of a business realignment in 2013. He has been the Fund’s lead portfolio manager since inception and also manages the Sterling Capital Special Opportunities Fund. He has investment experience since 1982. Mr. Shipp is a graduate of the University of Virginia and received his MBA at the Darden Graduate School of Business.

Investment Considerations

The Fund invests primarily in dividend-paying securities. These securities may be undervalued and their value could be negatively affected by a rise in interest rates. The Fund may engage in writing covered call options on securities. By writing covered call options, the Fund limits its opportunity to profit from an increase in the price of the underlying stock above the premium and the strike price, but continues to bear the risk of a decline in the stock price. While the Fund receives premiums for writing covered call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

The Sterling Capital Equity Income Fund’s Institutional

Shares generated a 16.51% total return during the 12-months ended September 30, 2017. The result compared favorably to the 15.12% gain of its primary benchmark, the Russell 1000^® Value Index (Russell 1000 Value).

Q. What factors affected the Fund’s performance?

Supposed “risky” assets such as equities broadly out-performed “safe” assets during the period, as investor worries about a growth slowdown in China, “Brexit’s” risk to Europe, and our own Presidential election gradually gave way to a “synchronized global recovery” consensus. Long-term U.S. Treasury bonds posted a (-6.32%) total return, as the prevailing yield on the 10-year benchmark rose from 1.61% to 2.33%. The performance of our yield and growth-focused portfolio perhaps offers evidence of the long-term benefits of participating in economic expansion, even when interest rates increase.

Dispersion within industry groups was illustrated by the Russell 1000 Value’s two largest sectors: Financial stocks surged 35.5%, while Energy equities posted a fractional loss despite a 13% gain in oil prices. Both groups have been identified as deregulation beneficiaries, but the beginning valuations of Energy stocks left no room for further appreciation.

The Fund carried less than a half-weight in the Energy sector, and our two chosen stocks modestly appreciated, so the good news is that combination contributed positively to our relative performance. The bad news is the Fund also was well under-weight Financials, the largest detractor from the portfolio’s relative showing. Financials contributed more than half of the Russell 1000 Value’s entire return for the year (850 basis points), but just 14% (245 bps) of our portfolio’s performance. Absolute results were fine: Our holdings provided an average 21.7% total return, surprisingly led by beleaguered Wells Fargo’s 28.2% contribution.

Industry allocations and security selection proved much better elsewhere. Healthcare was the largest factor in the Fund’s out-performance. Political uncertainty caused the group to enter the year with the lowest valuation among major sectors (measured by free cash flow yield), despite the highest projected growth. Blue Cross bellwether Anthem topped all performers with a 53.9% surge. Abbvie’s 46.2% total return was driven by favorable patent rulings related to the world’s largest drug, anti-inflammatory Humira, as well as new FDA approvals for cancer-fighters like Imbruvica.

Out-of-favor General Motors provided a pleasant 32.6% ride by posting strong truck and SUV sales and earnings throughout the period, and created autonomous vehicle excitement late in the year. Other Consumer Discretionary winners included media conglomerate Time Warner (30.8%), which received a takeover bid from AT&T, and homebuilder Pulte.

The Fund’s Industrial stocks gained an average 23.9%, versus the 17.4% return of Index constituents. Aerospace and climate control leader Honeywell was our top contributor, closely followed by employment specialist Robert Half, helped by a tightening labor market.

Technology was mixed: Our overweight should have been more helpful, but strong contributions from Microsoft and analog semiconductor maker Maxim were offset by disappointments from wireless leader Qualcomm and travel software provider Sabre. Ad agency Omnicom and recently purchased Kroger were the only other portfolio holdings generating negative returns during the year.

At September 30, the Equity Income portfolio companies boasted average returns on equity of 30% (per Bloomberg, almost double the benchmark’s profitability), while offering an above-average dividend yield of 2.9%. Those payouts to shareholders have grown at 15% over the preceding five years, a pace we fully expect will decelerate, but in our opinion indicative of the overall strength of its holdings.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

10

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	6/30/04	9.49%	8.88%	6.41%
Class C Shares**	6/30/04	15.36%	9.37%	6.25%
Institutional Shares	6/30/04	16.51%	10.46%	7.31%
Class R Shares	1/29/101	15.96%	9.91%	6.91%
Russell 1000® Value Index	N/A	15.12%	13.20%	5.92%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower.

The Fund is measured against the Russell 1000^® Value Index, an unmanaged index that is generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

11

Sterling Capital Long/Short Equity Fund

Portfolio Managers

Sterling Capital Long/Short Equity Fund (the “Fund”) is managed by L. Joshua Wein, CAIA and Executive Director and James C. Willis, CFA and Managing Director, portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

L. Joshua Wein, CAIA

Mr. Wein, Executive Director, joined BB&T Asset Management in 2008 and Sterling Capital through merger in 2010 and has been a co-portfolio manager of the Fund since its inception. He has investment experience since 1995. He is a graduate of Emory University and received his MBA from Vanderbilt University.

James C. Willis, CFA

Mr. Willis, Managing Director, joined BB&T Asset Management in 2003 and Sterling Capital through merger in 2010 and has been a co-portfolio manager of the Fund since its inception. He has investment experience since 1996. He is a graduate of Rice University and received his MBA from Georgetown University.

The Sub-Advisers and Sub-Adviser Portfolio Managers of the Fund for the fiscal year ended September 30, 2017 are the following:

● Lucas Capital Management (Red Bank, NJ); Portfolio Manager: Ashton Lee

● Emancipation Capital, LLC (New York, NY); Portfolio Manager: Charles Frumberg

● Highland Capital Healthcare Advisors, L.P. (Dallas, Texas); Portfolio Manager: Michael Gregory

● Gator Capital Management (Tampa, FL); Portfolio Manager: Derek Pilecki, CFA

● Caerus Investors, LLC (New York, NY); Portfolio Managers: Ward Davis, Brian Agnew

Investment Considerations

All investments carry a certain amount of risk and the Fund cannot guarantee that it will achieve its investment objective. The portfolio managers’ judgments about the capabilities of each Sub Adviser and the impact of each Sub Adviser’s investment techniques on the Fund’s overall investment exposures may prove incorrect, and the Fund may fail to produce the intended results. Unlike most traditional long only equity funds, the Fund will engage in short selling and derivative trading activities as a way of mitigating risk and/or enhancing return. Short sales by a fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase. These strategies may involve significant transaction costs and may amplify risk.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Sterling Capital Long/Short Equity Fund’s Institutional Shares underperformed its current benchmark, the HFRX Equity Hedge Index.

Q. What factors affected the Fund’s performance?

A. The Fund was most positively impacted by its exposure to financials as the sector rallied sharply after last November’s election on the expectation of a more relaxed regulatory environment, higher future interest rates and strong economic growth. Secondarily, the Fund’s exposure to consumer discretionary names contributed meaningfully to

performance as the sector has continued a strong run due to a low interest rate environment, the prospects for tax reform and continued economic growth. The Fund’s exposure to technology and energy names detracted throughout the period. While large cap technology, broadly, has rallied sharply over the last twelve months, the Fund’s exposure to smaller cap names that are less liquid and more idiosyncratic lagged meaningfully. On the energy front, sentiment and fundamentals remain weak with the prevailing view being that there remains an imbalance between supply and demand which is not entirely supportive of energy names.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

12

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date		1 Year		Since Inception
Class A Shares*		12/13/13		1.31%		-2.14%
Class C Shares**		12/13/13		6.64%		-1.33%
Institutional Shares		12/13/13		7.72%		-0.35%
HFRX Equity Hedge Index		11/30/13		7.91%		1.90%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Fund is measured against the HFRX Equity Hedge Index, an unmanaged index that is generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

13

Sterling Capital Behavioral International Equity Fund

Portfolio Managers

Sterling Capital Behavioral International Equity Fund (the “Fund”) is managed by Robert W. Bridges, CFA and Robert O. Weller, CFA Executive Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Robert W. Bridges, CFA

Mr. Bridges, CFA, Executive Director joined Sterling Capital in 1996 and has been a co-portfolio manager of the Fund since inception. He has investment experience since 1991. He is a graduate of Wake Forest University where he received his BS in Business.

Robert O. Weller, CFA

Mr. Weller, CFA, Executive Director joined Sterling Capital in 2012 and has been a co-portfolio manager of the Fund since inception. He has investment experience since 1996. He is a graduate of Loyola University Maryland where he received his BBA in Finance.

Investment Considerations

The overall results of the Fund will be dependent on the process and ability of the Adviser to apply “behavioral finance” principles to recognize a company’s value, earnings revisions and market momentum. The Fund will invest in foreign securities which may be more volatile and less liquid due to currency fluctuation, political instability, and social and economic risks. The Fund may invest in REITs (Real Estate Investment Trusts), the value of which will be affected by conditions of the real estate industry, and exchange-traded funds (ETFs). Investing in ETFs may cause shareholders to bear additional costs, and an ETF may not exactly replicate the performance it seeks to track.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the MSCI EAFE^® Net Index.

Q. What factors affected the Fund’s performance?

A. International equities generated sharply positive returns during the year ending September 30, 2017. The developed economies of the world continued to demonstrate slower-than-normal growth rates when compared to long-term averages. However, the continuation of accommodative central bank policies around the world and persistent low-interest rates have fostered an environment for stable and accelerating growth. As the period unfolded, Japan and European countries posted underlying growth rates that exceeded expectations. This better-than-expected rate of growth translated into strong stock returns during the period, with 18 of the 21 countries in the benchmark index posting double-digit gains.

The Fund’s performance relative to its benchmark is largely a reflection of its strategy to employ an investment process rooted in principles of behavioral finance. This process is specifically designed to capitalize upon known investor biases and heuristics (mental shortcuts) by

accounting for the impact on markets of behavioral factors such as greed, fear and ego.

The Fund’s value-related behavioral strategy contributed positively to relative performance. Of the 10 style factors tracked by Fund managers, value has contributed the most to returns over the last three years. Momentum was another key part of the Fund’s behavior-related strategy that added to relative results. Although momentum was a neutral contributor during the first half of the period, it was a positive factor in the second half. Stock selection in the materials and financial sectors also contributed to relative returns, particularly the Fund’s investments in a Swiss mining company and a multinational banking company headquartered in France.

The Fund’s bias toward smaller-than-benchmark capitalization weighed on returns given that larger international companies tended to outperform their smaller peers during the period. Stock selection in industrials and technology also detracted, as did the Fund’s country allocation decisions. In particular, the Fund’s smaller-than-benchmark exposures to the outperforming countries of Israel, Sweden and Denmark hurt relative performance.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

14

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date		1 Year		Since Inception
Class A Shares*		11/28/14		16.11%		5.07%
Class C Shares**		11/28/14		22.19%		6.49%
Institutional Shares		11/28/14		23.46%		7.48%
MSCI EAFE® Net Index		11/30/14		19.10%		5.38%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

Fund is measured against the MSCI EAFE^® Net Index, an unmanaged Index which is generally representative of large- and mid-cap equity across developed markets countries around the world, excluding the U.S. and Canada. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

15

Sterling Capital SMID Opportunities Fund

Portfolio Managers

Sterling Capital SMID Opportunities Fund (the “Fund”) is managed by Joshua L. Haggerty, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Joshua L. Haggerty, CFA

Mr. Haggerty, CFA, Executive Director joined the CHOICE Asset Management Team of Scott & Stringfellow in 2005 and Sterling Capital as part of a business realignment in 2013 and has been a co-portfolio manager of the Fund since 2016. He has investment experience since 1998. He is a graduate of James Madison University where he received his BBA in Finance.

Investment Considerations

The newly formed fund has no operating history to evaluate and the risk that it may not attract sufficient assets to achieve or maximize investment and operational efficiencies. The Fund uses a multi-style approach and invests in both growth and value-oriented companies. A growth investment style may be particularly sensitive to market conditions. Value investing involves the risk that an investment made in undervalued securities may not appreciate in value as anticipated or remain undervalued for long periods of time. The Fund invests in small and middle capitalization companies which may be riskier, more volatile and vulnerable to economic, market and industry changes than investments in larger more established companies. As a result, share price changes may be more erratic or trade less frequently in lesser quantities.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. Sterling Capital SMID Opportunities Fund’s Institutional

Shares generated a 17.84% total return during its first fiscal year ending September 30, 2017, narrowly outpacing its benchmark, the Russell 2500^® Index (Russell 2500), which gained 17.79%.

Q. What factors affected the Fund’s performance?

A. During the 12-month period, equities led most asset classes, while long-term bonds and gold delivered negative returns. Equities produced positive returns each quarter, but there was plenty of dispersion across sectors, styles, and size.

The first fiscal quarter returns were dominated by the surprising (to us anyway) results of the presidential election. Stocks swiftly began discounting the successful implementation of several of the President’s agenda items. For example, tax reform, which would disproportionally benefit more domestically focused, smaller companies with higher tax rates, contributed to the Russell 2500’s 6.1% gain. That bested larger stocks by 230 basis points, as measured by the S&P 500. Pro-growth policies were expected to stimulate faster economic growth and potentially provide more room for the Fed to raise rates, sent the Russell 2500 financial sector up 12.5%. Meanwhile, efforts to “repeal and replace” the Affordable Care Act led to a 5.7% pullback in the Russell 2500^® Healthcare index. A mix of slightly larger mid-cap companies, less exposure to Financials and an overweight in Healthcare contributed to the Fund’s lower performance (4.7%) during the first fiscal quarter.

The subsequent three quarters were nearly a mirror image, as legislation was stymied, long-term interest rates fell, volatility faded, earnings accelerated and economic growth improved, e.g., the latest reading of the ISM manufacturing index rose to the highest level since 2004.

Healthcare led and financials lagged, providing a tailwind for the Fund. During this nine-month period the Fund also benefited from its tilt towards growth, which led value by a wide margin across all size cohorts; large growth stocks led small value stocks by 15 percentage points. The fund gained 12.5% in those nine months compared to 11.0% for the Russell 2500.

Over the full 12-month period, the Fund’s biggest gainers included: residential property manager First Service (61%), which grew earnings per share 59% over its prior four quarters. We’re attracted to the company’s 85% recurring revenues, 95% customer retention and unparalleled scale; Medicaid focused health insurer Centene (64%) successfully integrated a large acquisition and defied skepticism that it could profitably grow its healthcare exchange business; and used car store operator Carmax (44%) delivered consistent gross profit margins per unit in the face of falling used car prices and saw higher web traffic as a result of increased investment.

The Fund’s biggest decliners included: the nation’s leading provider of neonatal and anesthesia services, Mednax (-34%), which was hurt by the unexpected decline in the U.S. birth rate; consumer goods company Newell Brands (-23%), which struggled to overcome customer de-stocking, despite rejuvenated growth at Yankee Candle; and oil producer Newfield Exploration (-32%) fell even as earnings estimates for 2017 and 2018 rose.

We continue to position the portfolio towards companies that have, and that we expect to continue to generate above-average earnings growth, trade at attractive valuations and produce above-average returns on equity. We believe this should enhance odds of delivering above-average returns with below-average risk.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

16

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date		1 Year
Class A Shares*		09/30/16		10.83%
Class C Shares**		09/30/16		16.70%
Institutional Shares		09/30/16		17.84%
Russell 2500® Index		N/A		17.79%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Russell 2500^® Index is a widely recognized index of common stocks that measures the performance of the small and mid cap sector of the U.S. equity market. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

17

Sterling Capital Stratton Mid Cap Value Fund

Portfolio Manager

Shawn M. Gallagher, CFA

Sterling Capital Stratton Mid Cap Value Fund (the “Fund”) is managed by Shawn M. Gallagher, CFA Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Gallagher joined the Stratton Funds Team of Stratton Management Company in 2005 and Sterling Capital Management as part of a business acquisition in 2015. He has been the lead portfolio manager to the Fund since 2015 and the Predecessor Fund since 2012. Mr. Gallagher has investment experience since 2003. He is a graduate of Pennsylvania State University where he received his BS in Finance.

Investment Considerations

Mid-capitalization companies are generally riskier than large company stocks due to greater volatility and less liquidity. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Russell Midcap^® Value Index.

Q. What factors affected the Fund’s performance?

A. U.S. mid-cap stocks were driven to strong gains by a combination of factors, including domestic economic expansion, the Federal Reserve’s relatively cautious approach to interest rates, corporate earnings growth and optimism about pro-growth policies from the new administration. The Fund posted positive absolute returns during each quarter of the period under review.

The cyclically oriented consumer discretionary sector posted the strongest gains as consumers regained their confidence amid positive economic conditions. The energy sector lagged all other sectors of the benchmark, as a result of weakness in crude oil prices.

Stock selection accounted for nearly all the Fund’s outperformance during the period, particularly in the financial services, consumer

discretionary and health care sectors, all of which added to relative results. The Fund’s holdings of two banks and an insurance company added to relative returns due to a combination of strong earnings results, the prospect of a less stringent regulatory climate and the anticipation of higher interest rates. The Fund’s investments in a cruise line operator and a recreational vehicle manufacturer gained on strong earnings reports and positive consumer confidence. Meanwhile, the Fund’s investment in a research and development services company in the biotechnology sector posted strong growth due to its backlog of orders as well as better-than-expected full year guidance based on the increasing activity of its biotech clients.

Stock selection in the energy sector dragged on relative performance. The Fund’s bias toward smaller-cap oil companies weighed heavily on results in an environment notable for weak oil prices. Investments in an oil and gas producer and an oilfield services company were notable laggards, and both were eliminated from the portfolio. The Fund’s underweight position relative to its benchmark in the energy sector helped offset some of the losses from stock selection.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

18

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date		1 Year			5 Years		10 Years
Class A Shares*		11/13/15		12.31%	��		11.71%		4.82%
Class C Shares**		11/13/15		18.27%			12.73%		5.30%
Institutional Shares		09/30/72		19.47%			13.15%		5.50%
Russell Midcap® Value Index		N/A		13.37%			14.33%		7.85%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. The performance shown here (for periods prior to the date of commencement of operations on November 16, 2015) is that of Stratton Mid Cap Value Fund (the “Predecessor Fund”), whose shares were reorganized into Institutional Shares of the Fund at the close of business on November 13, 2015. Because the Fund had no investment operations prior to the closing of the reorganization, and based on the similarity of the Fund to the Predecessor Fund, the Predecessor Fund is treated as the survivor of the reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to November 16, 2015 is that of the Predecessor Fund. Performance for Class A Shares and Class C Shares, prior to the date of commencement of operations on November 16, 2015, is based on the performance of the shares of the Predecessor Fund. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Fund is measured against the Russell Midcap^® Value Index, an unmanaged index, which measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap^® Index companies with lower price-to-book ratios and lower forecasted growth values. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

19

Sterling Capital Stratton Real Estate Fund

Portfolio Manager

Andrew T. DiZio, CFA

Sterling Capital Stratton Real Estate Fund (the “Fund”) is managed by Andrew T. DiZio, CFA, Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. DiZio joined the Stratton Funds Team of Stratton Management Company in 2012 and Sterling Capital Management as part of a business acquisition in 2015. He has been the lead portfolio manager of the Fund since 2015 and the Predecessor Fund since 2012. Mr. DiZio has investment experience since 2003. He is a graduate of Pennsylvania State University where he received his BS in Finance.

Investment Considerations

Real Estate Funds may be subject to a higher degree of market risk because of concentration in a specific industry or geographic sector. Risks include declines in value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its primary benchmark, the FTSE NAREIT All Equity REIT Index.

Q. What factors affected the Fund’s performance?

A. Real estate investment trust (REIT) share prices faced stiff headwinds during the year as interest rates rose after the U.S. elections. The benchmark still managed to post a meaningful gain for the 12-month period under review, however. Much of that positive performance originated from the data center, lodging, industrial and timber subsectors of the benchmark. The data center subsector gained on growing demand for cloud computing, while the more cyclical lodging and timber subsectors benefited from the improving economic outlook. The retail subsector weighed most heavily on the benchmark’s performance as growth in online shopping cast doubts on the long-term potential of brick-and-mortar retailers.

Stock selection in the infrastructure subsector weighed the heaviest on the Fund’s relative return. One of the Fund’s investments suffered as concerns over the balance sheet of one its largest tenants led to a significant decline in the REIT’s share price. Lack of exposure to the benchmark’s largest holding in this subsector also dragged on relative results, as that holding meaningfully outperformed its peers and the broader benchmark. The Fund’s lack of exposure to the benchmark’s prison REITs also detracted, as those holdings gained strongly following the surprising outcome of the U.S. presidential election.

Stock selection in the office subsector and an overweight allocation to the data center subsector had the largest positive impacts on the Fund’s relative returns. The Fund’s above-benchmark exposure to specific niches within the office subsector, particularly lab space for biotechnology firms and secured buildings for the U.S. military and defense industry, added to relative results. Stock selection in the lodging and diversified REIT subsectors also boosted returns.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

20

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date		1 Year		5 Years		10 Years
Class A Shares*		11/13/15		-4.89%		8.18%		6.25%
Class C Shares**		11/13/15		0.16%		9.17%		6.74%
Institutional Shares		05/31/80		1.16%		9.57%		6.93%
FTSE NAREIT All Equity REIT Index		N/A		2.57%		9.97%		6.06%
S&P 500® Index		N/A		18.61%		14.22%		7.44%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. The performance shown here (for periods prior to the date of commencement of operations on November 16, 2015) is that of Stratton Real Estate Fund (the “Predecessor Fund”), whose shares were reorganized into Institutional Shares of the Fund at the close of business on November 13, 2015. Because the Fund had no investment operations prior to the closing of the reorganization, and based on the similarity of the Fund to the Predecessor Fund, the Predecessor Fund is treated as the survivor of the reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to November 16, 2015 is that of the Predecessor Fund. Performance for Class A Shares and Class C Shares, prior to the date of commencement of operations on November 16, 2015, is based on the performance of the shares of the Predecessor Fund. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks.

The Fund is measured against the FTSE NAREIT All Equity REIT Index, an unmanaged index, which contains all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property that also meet minimum size and liquidity criteria. The Fund is also measured against the S&P 500^® Index, an unmanaged index, which is generally considered to be representative of the performance of the stock market as a whole. The indices do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

21

Sterling Capital Stratton Small Cap Value Fund

Portfolio Manager

Gerald M. Van Horn, CFA

Sterling Capital Stratton Small Cap Value Fund (the “Fund”) is managed by Gerald M. Van Horn, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Van Horn, joined the Stratton Funds Team of Stratton Management Company in 1998 and Sterling Capital Management as part of a business acquisition in 2015. He has been the lead portfolio manager to the Fund since 2015 and the Predecessor Fund since 2000. Mr. Van Horn has investment experience since 1996. He is a graduate of the College of New Jersey where he received his BA in Economics.

Investment Considerations

Small cap company stocks are generally riskier than large company stocks due to greater volatility and less liquidity. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Russell 2000^® Value Index.

Q. What factors affected the Fund’s performance?

A. Small-cap equity markets posted strong absolute returns for the 12-month period based on strong gains during two distinct periods of the year: the five weeks immediately following the U.S. presidential election in November 2016, and the final five weeks of the period under review. In both cases, renewed hope that politicians would improve regulatory, fiscal and tax policies boosted investor confidence in future economic growth, which helped drive small-cap stocks higher. In particular, the Fund’s exposure to the technology, producer durables and financial services sectors added to absolute returns. These sectors outperformed due to a mix of optimism around improving economic growth, the anticipation of easing regulatory burdens and rising long-term interest rates.

Stock selection in the technology sector added to relative performance. The Fund’s largest holding, a videogame publisher and distributor, outperformed its peers due to better-than-expected earnings. Stock selection in the producer durables sector also added to relative results, as investments in an equipment rental company, an infrastructure engineering company and a manufacturer of heavy machinery gained on expectations for higher economic growth. An above-benchmark exposure to this outperforming sector also helped.

Stock selection in the financial services sector weighed on the Fund’s relative performance. The Fund’s bank holdings dragged on relative results, as did an investment in a non-bank ATM operator – the latter position was sold off during the period. Stock selection in the energy sector also detracted, even as the Fund’s below-benchmark exposure to this sector added to results. Investments in two oil and gas companies detracted from the Fund’s relative performances as they both lagged their peers for the period.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

22

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year		5 Years		10 Years
Class A Shares*	11/13/15		13.50%		12.63%		7.33%
Class C Shares**	11/13/15		19.55%		13.65%		7.82%
Institutional Shares	4/12/93		20.73%		14.07%		8.01%
Russell 2000® Value Index	N/A		20.55%		13.27%		7.14%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. The performance shown here (for periods prior to the date of commencement of operations on November 16, 2015) is that of Stratton Small Cap Value Fund (the “Predecessor Fund”), whose shares were reorganized into Institutional Shares of the Fund at the close of business on November 13, 2015. Because the Fund had no investment operations prior to the closing of the reorganization, and based on the similarity of the Fund to the Predecessor Fund, the Predecessor Fund is treated as the survivor of the reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to November 16, 2015 is that of the Predecessor Fund. Performance for Class A Shares and Class C Shares, prior to the date of commencement of operations on November 16, 2015, is based on the performance of the shares of the Predecessor Fund. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Russell 2000^® Value Index is a widely recognized index of common stocks that measures the performance of the small-cap value sector of the U.S. equity market. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

23

Sterling Capital Ultra Short Bond Fund

Portfolio Managers

Sterling Capital Ultra Short Bond Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Mark Montgomery, CFA

Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a co-portfolio manager of the Fund since inception. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990. He is a graduate of West Chester University and received his MBA from Drexel University.

Richard T. LaCoff

Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a co-portfolio manager of the Fund since inception. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1991. He is a graduate of Villanova University and received his MS in Finance from Drexel University.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the Fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Citi 6-Month U.S. Treasury Bill Index.

Q. What factors affected the Fund’s performance?

A. The Federal Reserve raised short-term interest rates three times during the period resulting in a cumulative 0.75% increase in the federal funds target rate. The rate increases put upward pressure on bond rates, leading to a decline in the prices of existing bonds. The yield curve flattened as the difference between short-term and long-term bond rates grew smaller. At the same time, investors grew more comfortable with risk after the U.S. presidential election. The promise of pro-growth policies such as tax reform, infrastructure spending and financial services deregulation led investors to seek out riskier, higher-yielding investments. Demand

for these investments drove prices higher and helped risk assets outperform for the period. These trends supported risk assets held by the portfolio and contributed positively to the Fund’s absolute performance. Even so, the Fund’s return was driven primarily by the income generated by the securities it holds.

The Fund’s overweight allocation to corporate bonds and risk assets contributed positively to its relative return. The Fund was underweight Treasuries, which had a positive impact on return as those securities underperformed at a time when investors were seeking out riskier assets.

The Fund’s overweight allocation to the securitized sector also benefited performance, including its exposure to asset-backed securities and commercial mortgage-backed securities. The Fund’s overweight allocation to risk assets provided an income advantage relative to the benchmark, which contributed positively to the Fund’s relative return.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

24

* Reflects 0.50% maximum sales charge.

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	Since Inception
Class A Shares*	11/30/12	0.49%	0.43%
Institutional Shares	11/30/12	1.36%	0.79%
Citi 6-Month U.S. Treasury Bill Index	11/30/12	0.69%	0.26%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Fund is measured against the Citi 6-Month U.S. Treasury Bill Index, which measures the performance of Treasury bills with a maturity of six months or less. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

25

Sterling Capital Short Duration Bond Fund

Portfolio Managers

Sterling Capital Short Duration Bond Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Mark Montgomery, CFA

Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a co-portfolio manager of the Fund since 2011. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990. He is a graduate of West Chester University and received his MBA from Drexel University.

Richard T. LaCoff

Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a co-portfolio manager of the Fund since 2011. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1991. He is a graduate of Villanova University and received his MS in Finance from Drexel University.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the Fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity.

Q. How did the Fund perform during the 12-month period between October 1, 2016, and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the BofA Merrill Lynch 1–3 Year U.S. Corporate Government Index.

Q. What factors affected the Fund’s performance?

A. The Federal Reserve raised short-term interest rates three times during the period, resulting in a cumulative 0.75% increase in the federal funds target rate. Tighter monetary policy put upward pressure on bond rates, which caused prices of existing bonds to fall. The yield curve flattened as the difference between short-term and long-term bond rates grew smaller. At the same time, investors grew more comfortable with risk after the U.S. presidential election. The promise of pro-growth policies such as tax reform, infrastructure spending and financial services deregulation led investors to seek out riskier, higher-yielding investments. Demand for these investments drove prices higher and helped risk assets outperform for the period. These trends led to

price appreciation on the securities held by the portfolio and contributed positively to the Fund’s absolute performance. Even so, the Fund’s return was driven primarily by the income generated by the securities it held.

The Fund outperformed its benchmark due in large part to its overweight allocation to securities with higher credit risk. An overweight allocation to corporate bonds and the securitized sector — particularly through asset-backed securities and commercial mortgage-backed securities — added to performance. The Fund’s overweight allocation to risk assets also provided an income advantage relative to the benchmark, which benefited relative returns. An underweight allocation to Treasury Bonds also contributed to relative return.

Bond duration had a neutral effect on performance, while yield curve position hurt relative return slightly. However, these losses were more than offset by the overall performance of its holdings, such as securitized bonds.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

26

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date		1 Year		5 Years		10 Years
Class A Shares*		11/30/92		-1.00%		0.68%		1.93%
Class C Shares**		1/31/121		0.38%		0.33%		1.70%
Institutional Shares		11/30/92		1.28%		1.34%		2.38%
BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index		N/A		0.65%		0.94%		2.09%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance could differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index, which consists of securities with a maturity from one to three years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

27

Sterling Capital Intermediate U.S. Government Fund

Portfolio Manager

Brad D. Eppard, CFA

Sterling Capital Intermediate U.S. Government Fund (the “Fund”) is managed by Brad D. Eppard, CFA, Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Eppard joined BB&T Asset Management in 2003 and Sterling Capital through merger in 2010 and has been lead portfolio manager to the Fund since 2003. He has investment experience since 1985. Mr. Eppard is a graduate of Radford University where he received his BS in Business Administration/Accounting.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in mortgage-backed securities, which tend to be more sensitive to changes in interest rates. The Fund invests in securities issued or guaranteed by the U.S. government or its agencies (such as Fannie Mae or Freddie Mac). Although U.S. government securities issued directly by the U.S. government are guaranteed by the U.S. Treasury, other U.S. government securities issued by an agency or instrumentality of the U.S. government may not be. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

Q. How did the Fund perform during the 12-month period between October 1, 2016, and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the Bloomberg Barclays U.S. Government Intermediate Index.

Q. What factors affected the Fund’s performance?

A. As the U.S. economy continued to recover, the Federal Reserve during the period raised interest rates three times for a total increase of 75 basis points for the period. These hikes put upward pressure on bond rates and reduced the price of existing bonds.

After the presidential election in November, investors responded positively to the Trump administration’s pro-growth stance and the potential for tax reform, fiscal stimulus, infrastructure spending and financial policy deregulation. As a result, risk assets outperformed relatively safe assets such as Treasuries during the year as investors

sought out higher yields and were willing to take on more risk.

In absolute terms, the Fund’s exposure to spread products such as U.S. agency bonds, corporate bonds and taxable municipal securities benefited performance as spreads relative to Treasuries compressed as demand remained firm. The Fund’s performance relative to its benchmark was hurt by a duration positioning slightly longer than that of the index. That positioning detracted from relative performance as a longer duration tends to drag on performance during periods when bonds yields are rising.

The Fund’s relative performance benefited from an overweight position in spread product, as did exposure to callable agency bonds. In particular, agency bonds with step-up coupon features helped relative returns as these securities have defensive characteristics and tend to perform well in a modest rising rate environment.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

28

*  Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	10/9/92	-3.18%	0.11%	2.60%
Class C Shares**	2/1/01	-1.94%	-0.24%	2.05%
Institutional Shares	10/9/92	-0.95%	0.77%	3.06%
Bloomberg Barclays U.S. Government Intermediate Index	N/A	-0.66%	1.01%	3.08%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

The Fund is measured against the Bloomberg Barclays U.S. Government Intermediate Index, an unmanaged index comprised of all publicly issued non-convertible domestic debt of the U.S. government or any agency there of, or corporate debt guaranteed by the U.S. government all with outstanding principal of $1 million and maturity between one and ten years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

29

Sterling Capital Total Return Bond Fund

Portfolio Managers

Sterling Capital Total Return Bond Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Mark Montgomery, CFA

Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a co-portfolio manager of the Fund since 2008. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990. He is a graduate of West Chester University and received his MBA from Drexel University.

Richard T. LaCoff

Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a co-portfolio manager of the Fund since 2011. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1991. He is a graduate of Villanova University and received his MS in Finance from Drexel University.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in foreign securities, which may expose the fund to currency and exchange rate fluctuations; and mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

Q. What factors affected the Fund’s performance?

A. The Federal Reserve raised short-term interest rates three times during the period resulting in a cumulative 0.75% increase in the federal funds target rate. The rate increase put upward pressure on bond rates and caused the price of existing bonds to fall. After the U.S. elections in November, the new administration promised pro-growth policies, including tax reform, infrastructure spending and financial policy deregulation. Investors grew less risk averse as a result and began to seek out higher yields, which helped risk assets outperform. This trend helped drive up prices on the securities held by the Fund, on a relative basis, which added to absolute returns. Even so, income derived from the Fund’s investments was the main contributor to absolute returns.

The Fund outperformed its benchmark for the period due in large part to its overweight allocation to risk assets. Lower-quality credit

outperformed higher-quality credit for the 12-month period under review. In particular, the Fund’s overweight allocation to high-yield bonds and BBB-rated bonds contributed positively to relative performance. The Fund’s allocation to corporate and securitized bonds — particularly asset-backed securities and commercial mortgage-backed securities — contributed positively to relative return as well. An underweight allocation to Treasury Bonds also contributed positively to return, as those securities underperformed as investors sought out riskier bonds.

The Fund had a slight bias to short duration bonds during the period relative to the benchmark, which added to relative results as well.

The Fund’s yield curve positioning detracted from relative performance. As the yield curve flattened — when the difference between short-term and long-term yields grows smaller — the Fund’s overweight allocation to intermediate-term bonds and underweight allocation to long-term bonds hurt performance on a relative basis. However, these losses were more than offset by the overall performance of its holdings, such as corporate and securitized bonds.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

30

*    Reflects 5.75% maximum sales charge.

**   Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	11/30/99	-5.05%	1.18%	4.18%
Class C Shares**	2/1/01	0.00%	1.63%	4.02%
Institutional Shares	11/30/99	1.00%	2.65%	5.06%
Class R Shares	1/29/101	0.50%	2.13%	4.63%
Bloomberg Barclays U.S. Aggregate Bond Index	N/A	0.07%	2.06%	4.27%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class R Shares were not in existence prior to 2/1/10. Performance for periods prior to 2/1/10 is based on the performance of Institutional Shares, but such performance does not reflect Class R Shares’ 12b-1 fees, which if reflected, would have caused performance to be lower.

The Fund is measured against the Bloomberg Barclays U.S. Aggregate Bond Index, an unmanaged index, which is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

31

Sterling Capital Corporate Fund

Portfolio Managers

Sterling Capital Corporate Fund (the “Fund”) is managed by Mark Montgomery, CFA and Richard LaCoff, Senior Managing Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Mark Montgomery, CFA

Mr. Montgomery, Senior Managing Director joined Sterling Capital in 1997 and has been a co-portfolio manager of the Fund since inception. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1990. He is a graduate of West Chester University and received his MBA from Drexel University.

Richard T. LaCoff

Mr. LaCoff, Senior Managing Director joined Sterling Capital in 2007 and has been a co-portfolio manager of the Fund since inception. He is co-head of Sterling Capital’s Fixed Income Portfolio Management. He has investment experience since 1991. He is a graduate of Villanova University and received his MS in Finance from Drexel University.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity. Derivatives may be more sensitive to changes in market conditions and may amplify risks.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Bloomberg Barclays Corporate Intermediate Bond Index.

Q. What factors affected the Fund’s performance?

A. The Federal Reserve raised interest rates three times resulting in a total rate hike of 0.75% for the period. These increases put upward pressure on bond rates and caused the price of existing bonds to decline. After the presidential election in November, investors grew less risk averse amid expectations the new administration would implement pro-growth policies, including tax reform, fiscal stimulus, infrastructure spending and financial deregulation. As a result, risk assets outperformed during the year as investors sought higher yields. This trend helped drive up prices on the securities held by the Fund, which

added to absolute returns.

The Fund outperformed its benchmark due in part to its allocation to lower-quality, higher-yielding bonds, including BBB-rated bonds. Investors seeking yield continued to delve deeper into the risk and quality spectrums, which drove up demand for these lower-quality bonds. As a result, higher-risk assets, particularly the Fund’s holdings of below-investment-grade securities, outperformed the broader benchmark. A bias toward holdings with short duration also contributed to relative performance.

The Fund’s yield curve positioning detracted from relative performance. The curve flattened when short-term interest rate rose and long-term rates fell, and the Fund’s underweight allocation to the long-end of the curve hurt performance. However, the overall performance of the Fund’s holdings more than offset these losses.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

32

*     Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge (CDSC) of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Year	Since Inception
Class A Shares*	1/31/131	0.04%	2.24%	3.61%
Class C Shares**	1/31/131	1.30%	1.91%	3.33%
Institutional Shares	6/30/112	2.32%	2.88%	4.12%
Bloomberg Barclays Corporate Intermediate Bond Index	6/30/11	1.84%	2.86%	5.01%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-888-228-1872.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class A and C Shares were not in existence prior to 2/1/13. Performance for periods prior to 2/1/13 is based on the performance of Institutional Shares and has been adjusted for maximum CDSC to the class applicable but does not include 12b-1 fees, which if reflected, would have caused performance of Class A and C Shares to be lower.

²  The Fund converted Class S Shares into Institutional Shares effective 2/1/13.

The Fund is measured against the Bloomberg Barclays Corporate Intermediate Bond Index, an unmanaged index consisting of dollar-denominated debt from U.S. industrial, utility and financial institutions issuers with a duration of 1 to 10 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

33

Sterling Capital Securitized Opportunities Fund

Portfolio Managers

Sterling Capital Securitized Opportunities Fund (the “Fund”) is managed by Executive Director Michael Sun, CFA, Jeffrey Ormsby, CFA and Byron Mims, CFA, Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.

Michael Z. Sun, CFA

Mr. Sun, Executive Director, joined Sterling Capital in 2009 and has been a co-portfolio manager to the Fund since 2014. Mr. Sun has investment experience since 1998 and is a graduate of Nanjing University and received his MS from Beijing University and his MA from Bowling Green State University.

Byron G. Mims, CFA

Mr. Mims, Director, joined Sterling Capital in 2012 and has been a co-portfolio manager to the Fund since 2016. Mr. Mims has investment experience since 2006. He is a graduate of North Carolina State University where he received his BS in Economics. He was a summa cum laude graduate and was recognized as valedictorian.

Jeffrey D. Ormsby, CFA

Mr. Ormsby, Director, joined Sterling Capital in 2011 and has been a co-portfolio manager to the Fund since 2016. Mr. Ormsby has investment experience since 2006. He is a graduate of North Carolina State University where he received his BS in Economics. He was a summa cum laude graduate and was recognized as Valedictorian. Mr. Ormsby received his MBA from the University of North Carolina at Chapel Hill’s Kenan-Flagler Business School,where he was the Norman Block Valedictorian Award recipient.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund may invest in more aggressive investments, such as foreign securities, which may expose the Fund to currency and exchange rate fluctuations; mortgage-backed securities sensitive to interest rates; and high yield debt (also known as junk bonds), all of which may cause greater volatility and less liquidity.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares outperformed its current benchmark, the Bloomberg Barclays U.S. Mortgage Backed Securities Index.

Q. What factors affected the Fund’s performance?

A. All major sub-sectors within the Fund had positive absolute returns for the period. While rising interest rates had a negative impact on fixed income pricing, a reduction in credit-risk premiums in the non-agency sub-sectors, along with interest income from the Fund’s securities was more than enough to offset the adverse interest rate impact. Credit-risk premiums decreased for non-agency residential mortgage-backed securities, commercial mortgage-backed securities, and consumer asset-backed securities as investors added these asset classes given attractive available yields and healthy fundamental performance in the underlying real estate and consumer lending markets. The Fund outperformed the benchmark primarily because it was overweight each of these sub-sectors, all of which posted higher total returns than the agency mortgage-backed security sub-sector, where the Fund is underweight relative to the benchmark.

The Fund’s yield curve positioning was the primary detractor of relative performance during the period. The Fund started the year with more interest rate exposure to the longest parts of the yield curve compared to the benchmark. Following the 2016 U.S. Presidential election results, the yield curve steepened sharply, with long term interest rates moving up much more quickly than short term rates. This twist of the yield curve resulted in relative underperformance of the Fund compared to the benchmark.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

34

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge (CDSC) of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Year	Since Inception
Class A Shares*	1/31/131	-1.17%	1.60%	2.47%
Class C Shares**	1/31/131	0.12%	1.32%	2.24%
Institutional Shares	6/30/112	1.23%	2.26%	3.00%
Bloomberg Barclays U.S. Mortgage Backed Securities Index	N/A	0.30%	1.96%	4.13%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-888-228-1872. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class A and C Shares were not in existence prior to 2/1/13. Performance for periods prior to 2/1/13 is based on the performance of Institutional Shares and has been adjusted for maximum CDSC to the class applicable but does not include 12b-1 fees, which if reflected, would have caused performance of Class A and C Shares to be lower.

²  The Fund converted Class S Shares into Institutional Shares effective 2/1/13.

The Fund is measured against the Bloomberg Barclays U.S. Mortgage Backed Securities Index. The index measures the performance of investment grade fixed-rate mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

35

Sterling Capital Kentucky Intermediate Tax-Free Fund

Portfolio Manager

Robert F. Millikan, CFA

Sterling Capital Kentucky Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined BB&T Asset Management in 2000 and Sterling Capital through merger in 2010. He is lead portfolio manager of the Fund and has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by Kentucky and its political subdivisions and therefore will be affected by economic, political or other events affecting Kentucky.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.

Q. What factors affected the Fund’s performance?

A. Municipal bond markets delivered positive returns during the 12-month period. In the first week after Donald Trump’s surprise victory in the 2016 election, muni bonds tumbled amid expectations for faster economic growth and the potential for tax reform that would make the tax benefits of municipal bonds less appealing. Investors also worried that the Trump administration’s plans for higher infrastructure spending would lead to a heavy supply of new municipal issues that would inundate the muni market. These concerns waned later in the period, however, as repeated delays in the Trump administration’s efforts to enact its agenda put muni bonds back in favor. Investors moved $1.6 billion into muni funds during the week of April 12, the third-highest

weekly inflow on record.

In absolute terms, the Fund was hurt by rising interest rates across the yield curve, particularly among longer term issues. The Fund’s exposure to bonds in the 5-to-10-year range dragged on absolute returns. The Fund’s performance relative to its benchmark suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher-rated peers. AAA-rated municipal bonds returned 0.72% during the period compared to a 3.41% return for BBB-rated issues. We believed that lower-rated issues did not adequately compensate investors for the additional risk they carry.

Kentucky’s debt rating was downgraded in July from AA2 to AA3 by rating agency Moody’s. That downgrade dragged on relative results.

The Fund’s relative performance benefited from an overweight position in revenue bonds, which outperformed general obligation bonds during the period. The Fund also benefited from its shorter-than-benchmark duration as interest rates rose.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

36

*    Reflects 2.00% maximum sales charge.

**   Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	2/24/03	-2.21%	1.13%	3.35%
Class C Shares**	1/31/121	-0.74%	0.85%	3.15%
Institutional Shares	2/24/03	0.05%	1.80%	3.82%
BofA Merrill Lynch 2-17 Year Municipal Bond Index	N/A	1.04%	2.65%	4.42%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index that is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

37

Sterling Capital Maryland Intermediate Tax-Free Fund

Portfolio Manager

Robert F. Millikan, CFA

Sterling Capital Maryland Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined BB&T Asset Management in 2000 and Sterling Capital through merger in 2010. He is lead portfolio manager of the Fund and has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by Maryland and its political subdivisions and therefore will be affected by economic, political or other events affecting Maryland.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.

Q. What factors affected the Fund’s performance?

A. Municipal bond markets delivered positive returns during the 12-month period. In the first week after Donald Trump’s surprise victory in the 2016 election, muni bonds tumbled amid expectations for faster economic growth and the potential for tax reform that would make the tax benefits of municipal bonds less appealing. Investors also worried that the Trump administration’s plans for higher infrastructure spending would lead to a heavy supply of new municipal issues that would inundate the muni market. These concerns waned later in the period, however, as repeated delays in the Trump administration’s efforts to enact its agenda put muni bonds back in favor. Investors moved $1.6

billion into muni funds during the week of April 12, the third-highest weekly inflow on record.

In absolute terms, the Fund was hurt by rising interest rates across the yield curve, particularly among longer term issues. The Fund’s exposure to bonds in the 5-to-10-year range dragged on absolute returns. The Fund’s performance relative to its benchmark suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher-rated peers. AAA-rated municipal bonds returned 0.72% during the period compared to a 3.41% return for BBB-rated issues. We believed that lower-rated issues did not adequately compensate investors for the additional risk they carry.

The Fund’s relative performance benefited from an overweight position in revenue bonds, which outperformed general obligation bonds during the period. The Fund also benefited from its shorter-than-benchmark duration as interest rates rose.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

38

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	2/24/03	-1.99%	1.05%	3.36%
Class C Shares**	1/31/121	-0.74%	0.71%	3.13%
Institutional Shares	2/24/03	0.26%	1.72%	3.83%
BofA Merrill Lynch 2-17 Year Municipal Bond Index	N/A	1.04%	2.65%	4.42%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

39

Sterling Capital North Carolina Intermediate Tax-Free Fund

Portfolio Manager

Robert F. Millikan, CFA

Sterling Capital North Carolina Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined BB&T Asset Management in 2000 and Sterling Capital through merger in 2010. He is lead portfolio manager of the Fund and has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by North Carolina and its political subdivisions and therefore will be affected by economic, political or other events affecting North Carolina.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.

Q. What factors affected the Fund’s performance?

A. Municipal bond markets delivered positive returns during the 12-month period. In the first week after Donald Trump’s surprise victory in the 2016 election, muni bonds tumbled amid expectations for faster economic growth and the potential for tax reform that would make the tax benefits of municipal bonds less appealing. Investors also worried that the Trump administration’s plans for higher infrastructure spending would lead to a heavy supply of new municipal issues that would inundate the muni market. These concerns waned later in the period, however, as repeated delays in the Trump administration’s efforts to enact its agenda put muni bonds back in favor. Investors moved $1.6

billion into muni funds during the week of April 12, the third-highest weekly inflow on record.

In absolute terms, the Fund was hurt by rising interest rates across the yield curve, particularly among longer term issues. The Fund’s exposure to bonds in the 5-to-10-year range dragged on absolute returns. The Fund’s performance relative to its benchmark suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher-rated peers. AAA-rated municipal bonds returned 0.72% during the period compared to a 3.41% return for BBB-rated issues. We believed that lower-rated issues did not adequately compensate investors for the additional risk they carry.

The Fund’s relative performance benefited from an overweight position in revenue bonds, which outperformed general obligation bonds during the period. The Fund also benefited from its shorter-than-benchmark duration as interest rates rose.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

40

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	10/16/92	-2.34%	1.07%	3.29%
Class C Shares**	1/31/121	-1.06%	0.72%	3.05%
Institutional Shares	10/16/92	-0.06%	1.73%	3.76%
BofA Merrill Lynch 2-17 Year Municipal Bond Index	N/A	1.04%	2.65%	4.42%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

41

Sterling Capital South Carolina Intermediate Tax-Free Fund

Portfolio Manager

Robert F. Millikan, CFA

Sterling Capital South Carolina Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined BB&T Asset Management in 2000 and Sterling Capital through merger in 2010. He is lead portfolio manager of the Fund and has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by South Carolina and its political subdivisions and therefore will be affected by economic, political or other events affecting South Carolina.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.

Q. What factors affected the Fund’s performance?

A. Municipal bond markets delivered positive returns during the 12-month period. In the first week after Donald Trump’s surprise victory in the 2016 election, muni bonds tumbled amid expectations for faster economic growth and the potential for tax reform that would make the tax benefits of municipal bonds less appealing. Investors also worried that the Trump administration’s plans for higher infrastructure spending would lead to a heavy supply of new municipal issues that would inundate the muni market. These concerns waned later in the period, however, as repeated delays in the Trump administration’s efforts to enact its agenda put muni bonds back in favor. Investors moved $1.6

billion into muni funds during the week of April 12, the third-highest weekly inflow on record.

In absolute terms, the Fund was hurt by rising interest rates across the yield curve, particularly among longer term issues. The Fund’s exposure to bonds in the 5-to-10-year range dragged on absolute returns. The Fund’s performance relative to its benchmark suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher-rated peers. AAA-rated municipal bonds returned 0.72% during the period compared to a 3.41% return for BBB-rated issues. We believed that lower-rated issues did not adequately compensate investors for the additional risk they carry.

The Fund’s relative performance benefited from an overweight position in revenue bonds, which outperformed general obligation bonds during the period. The Fund also benefited from its shorter-than-benchmark duration as interest rates rose.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

42

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	10/20/97	-1.99%	1.27%	3.43%
Class C Shares**	1/31/121	-0.74%	0.92%	3.20%
Institutional Shares	10/20/97	0.34%	1.95%	3.91%
BofA Merrill Lynch 2-17 Year Municipal Bond Index	N/A	1.04%	2.65%	4.42%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

43

Sterling Capital Virginia Intermediate Tax-Free Fund

Portfolio Manager

Robert F. Millikan, CFA

Sterling Capital Virginia Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined BB&T Asset Management in 2000 and Sterling Capital through merger in 2010. He is lead portfolio manager of the Fund and has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by Virginia and its political subdivisions and therefore will be affected by economic, political or other events affecting Virginia.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.

Q. What factors affected the Fund’s performance?

A. Municipal bond markets delivered positive returns during the 12-month period. In the first week after Donald Trump’s surprise victory in the 2016 election, muni bonds tumbled amid expectations for faster economic growth and the potential for tax reform that would make the tax benefits of municipal bonds less appealing. Investors also worried that the Trump administration’s plans for higher infrastructure spending would lead to a heavy supply of new municipal issues that would inundate the muni market. These concerns waned later in the period, however, as repeated delays in the Trump administration’s efforts to enact its agenda put muni bonds back in favor. Investors moved $1.6

billion into muni funds during the week of April 12, the third-highest weekly inflow on record.

In absolute terms, the Fund was hurt by rising interest rates across the yield curve, particularly among longer term issues. The Fund’s exposure to bonds in the 5-to-10-year range dragged on absolute returns. The Fund’s performance relative to its benchmark suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher-rated peers. AAA-rated municipal bonds returned 0.72% during the period compared to a 3.41% return for BBB-rated issues. We believed that lower-rated issues did not adequately compensate investors for the additional risk they carry.

The Fund’s relative performance benefited from an overweight position in revenue bonds, which outperformed general obligation bonds during the period. The Fund also benefited from its shorter-than-benchmark duration as interest rates rose.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

44

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	5/17/99	-2.41%	0.97%	3.20%
Class C Shares**	1/31/121	-1.14%	0.63%	2.97%
Institutional Shares	5/17/99	-0.14%	1.64%	3.68%
BofA Merrill Lynch 2-17 Year Municipal Bond Index	N/A	1.04%	2.65%	4.42%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

45

Sterling Capital West Virginia Intermediate Tax-Free Fund

Portfolio Manager

Robert F. Millikan, CFA

Sterling Capital West Virginia Intermediate Tax-Free Fund (the “Fund”) is managed by Robert F. Millikan, CFA, Executive Director and portfolio manager for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund. Mr. Millikan joined BB&T Asset Management in 2000 and Sterling Capital through merger in 2010. He is lead portfolio manager of the Fund and has managed or been a member of the team that manages the state-specific municipal bond fund portfolios since 2000 and has investment experience since 1990. Mr. Millikan is a graduate of Wake Forest University where he received his BA in Economics.

Investment Considerations

The Fund is subject to the same risks as the underlying bonds in the portfolios such as credit, prepayment and interest rate risk. As interest rates rise, the value of bond prices will decline and an investor may lose money. The Fund is non-diversified and may invest a greater percentage of its assets in a single issuer than funds that are more diversified. Furthermore, the Fund invests primarily in municipal obligations issued by West Virginia and its political subdivisions and therefore will be affected by economic, political or other events affecting West Virginia.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, the BofA Merrill Lynch 2-17 Year Municipal Bond Index.

Q. What factors affected the Fund’s performance?

A. Municipal bond markets delivered positive returns during the 12-month period. In the first week after Donald Trump’s surprise victory in the 2016 election, muni bonds tumbled amid expectations for faster economic growth and the potential for tax reform that would make the tax benefits of municipal bonds less appealing. Investors also worried that the Trump administration’s plans for higher infrastructure spending would lead to a heavy supply of new municipal issues that would inundate the muni market. These concerns waned later in the period, however, as repeated delays in the Trump administration’s efforts to enact its agenda put muni bonds back in favor. Investors moved $1.6 billion into muni funds during the week of April 12, the third-highest weekly inflow on record.

In absolute terms, the Fund was hurt by rising interest rates across the yield curve, particularly among longer term issues. The Fund’s exposure to bonds in the 5-to-10-year range dragged on absolute returns. The Fund’s performance relative to its benchmark suffered from a bias toward high-quality bonds, as lower-rated municipal issues outperformed their higher-rated peers. AAA-rated municipal bonds returned 0.72% during the period compared to a 3.41% return for BBB-rated issues. We believed that lower-rated issues did not adequately compensate investors for the additional risk they carry.

West Virginia’s debt rating was downgraded in February from AA1 to AA2 by ratings agency Moody’s. The state’s lower credit rating dragged on relative results.

The Fund’s relative performance benefited from an overweight position in revenue bonds, which outperformed general obligation bonds during the period. The Fund also benefited from its shorter-than-benchmark duration as interest rates rose.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

46

* Reflects 2.00% maximum sales charge.

** Reflects the applicable maximum contingent deferred sales charge of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	12/17/93	-1.73%	1.27%	3.15%
Class C Shares**	01/31/12	-0.38%	0.93%	2.94%
Institutional Shares	12/01/93	0.52%	1.93%	3.62%
BofA Merrill Lynch 2-17 Year Municipal Bond Index	N/A	1.04%	2.65%	4.42%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark.

¹  Class C Shares were not in existence prior to 2/1/12. Performance for periods prior to 2/1/12 is based on the performance of Class A Shares. Such performance would differ only to the extent that the Classes have different expenses.

The Fund is measured against the BofA Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index, which is representative of municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

47

Sterling Capital Diversified Income Fund

Portfolio Managers

Sterling Capital Diversified Income Fund (the “Fund”) is managed by Shane A. Burke, and Brandon W. Carl, CFA, Directors and portfolio managers for Sterling Capital Management LLC (“Sterling Capital”), advisor to the fund, and members of the Sterling Capital Advisory Solutions Team.

Shane A. Burke

Mr. Burke, Director, joined Sterling Capital in 2013 and has been a co-portfolio manager of the Fund since 2015. He has investment experience since 2002. He is a graduate of the University of North Carolina at Wilmington where he received his BS in Finance. He received his MBA from San Francisco-Golden Gate University.

Brandon W. Carl, CFA

Mr. Carl, Director, joined BB&T Asset Management in 2001 and Sterling Capital through merger in 2010. Mr. Carl has been a co-portfolio manager to the Fund since 2016. Mr. Carl has investment experience since 2001. He is a graduate of the University of South Carolina where he received his BS in Finance and Management.

Investment Considerations

The Fund is primarily concentrated in underlying funds and is therefore subject to the same risks as the underlying funds it is invested in and may entail higher expenses. The underlying funds may invest in undervalued securities, which may not appreciate in value as anticipated or may remain undervalued for longer than anticipated. The underlying funds may invest in equity securities including more aggressive investments that engage in long/short equity strategies and in options writing strategies and that invest in derivatives, preferred stocks, exchange-traded funds (ETFs), Master Limited Partnerships (MLPs, the value of which will be affected by the natural resources sector of the economy and regulation) and real estate investment trusts (REITs, the value of which will be affected by conditions of the real estate industry). The Fund’s volatility may be amplified by its use of short sales and derivatives. The Fund is subject to the same risks as the debt securities held by the underlying funds such as credit, prepayment, call and interest rate risk. As interest rates rise, the value of debt securities will decline and an investor may lose money. Investing in high yield debt (also known as junk bonds) involves greater risks and less liquidity than investment grade bonds.

Q. How did the Fund perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Fund’s Institutional Shares underperformed its current benchmark, 40% MSCI World Index/60% Bloomberg Barclays U.S. Aggregate Bond Index.

Q. What factors affected the Fund’s performance?

A. The Fund’s equity exposure was a significant detractor versus the blended benchmark during the fiscal year. The Fund’s underweight exposure to equity versus the equity weighting in the blended benchmark was a detractor as the MSCI World Index outperformed the Bloomberg Barclays U.S. Aggregate Bond Index by a wide margin during the fiscal year. Further, the Fund’s structural biases toward high-dividend yield and value were material head winds given that lower dividend-yielding, growth-oriented segments of the market outperformed during this time frame. The Fund’s exposure to covered call writing and MLPs also made a large negative impact on relative performance. MLPs produced slightly negative returns during the fiscal year as renewed oil price volatility in the second and third quarters of 2017 put pressure on the space. While covered call writing

strategies can produce a steady income stream and limit downside risk, these strategies will typically not keep pace with the broader market during periods of abnormally high equity market returns, which is what transpired during the fiscal year.

The Fund’s fixed income portfolio was largely positive on a relative return basis throughout the fiscal year. Exposure to high yield bonds, floating rate securities and preferred securities were the largest contributors as lower quality credits (CCC-rated) outperformed its higher quality counterparts (BB and B-rated). Conversely, the Fund’s exposure to long-dated Treasuries and insurance linked securities (‘ILS’) were the largest detractors. The Fund’s Treasury exposure trailed the market as the long-end of the yield curve steepened and ILS struggled later in the fiscal year where beginning in late August Hurricane Harvey struck Texas, Hurricane Irma affected much of the Caribbean and Florida and Hurricane Maria affected parts of the Caribbean and devastated Puerto Rico. In addition, two separate earthquakes struck in central Mexico. A relief and recovery effort for each event is still being determined as insurance claims are beginning to be filed and processed.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

48

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Average Annual Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	1/29/98	-2.38%	3.91%	3.59%
Class C Shares**	2/1/01	2.84%	4.37%	3.43%
Institutional Shares	10/2/97	3.88%	5.41%	4.46%
40% MSCI World Index/ 60% Bloomberg Barclays U.S. Aggregate Bond Index	N/A	7.01%	5.68%	4.60%
MSCI World Index	N/A	18.17%	10.99%	4.22%
Bloomberg Barclays U.S. Aggregate Bond Index	N/A	0.07%	2.06%	4.27%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks.

The Fund is measured against the 40% MSCI World Index/60% Bloomberg Barclays U.S. Aggregate Bond Index. The indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

49

Sterling Capital Strategic Allocation Funds

Portfolio Managers

Team Managed

Sterling Capital Strategic Allocation Funds (the “Funds”) are managed by the Sterling Capital Advisory Solutions Team, which is led by James C. Willis, CFA, Managing Director & Director of Advisory Solutions, Jeffrey J. Schappe, CFA, Managing Director and Kevin J. Stoll, CFA, Executive Director. Mr. Willis, Mr. Schappe and Mr. Stoll have managed the Funds since 2010, 2005 and 2016, respectively.

James C. Willis, CFA

Mr. Willis, Managing Director, joined BB&T Asset Management in 2003 and Sterling Capital Management LLC (“Sterling Capital”) through merger in October 2010 and has been a co-portfolio manager of the Fund since 2010. He has investment experience since 1996. He is a graduate of Rice University where he received a BA in Economics and Political Science and a MBA from Georgetown University.

Jeffrey J. Schappe, CFA

Mr. Schappe, Managing Director, joined BB&T Asset Management in 2004 and Sterling Capital through merger in October 2010 and has been a co-portfolio manager of the Fund since 2005. He has investment experience since 1991. He is a graduate of University of Wisconsin- Madison where he received a BA in Journalism and a MBA in Finance.

Kevin J. Stoll, CFA

Mr. Stoll, Executive Director, joined Sterling Capital in 2013 and has been a co-portfolio manager to the Funds since 2016. He has investment experience since 1998. He is a graduate of Northwestern University where he received his BA in Economics and Mathematical Methods in the Social Sciences and his MBA from Duke University’s Fuqua School of Business.

Investment Considerations

The Funds are primarily concentrated in underlying funds and are therefore subject to the same risks as the underlying funds and bear a portion of the expenses of the underlying funds. The underlying funds may be invested in equity securities and are subject to market risk. Investments in bonds are subject to credit risk, call risk and interest rate risk (as interest rates rise the value of bond prices will decline). The underlying funds may invest in foreign securities, which involve certain risks such as currency volatility, political and social instability and reduced market liquidity; small capitalization companies which are subject to greater volatility and less liquidity due to limited resources or product lines and are more sensitive to economic factors; and high-yield debt securities (also known as junk bonds), which involve greater risks than investment grade bonds. The underlying funds may also be money market funds.

Sterling Capital Strategic Allocation Balanced Fund (the “Balanced Fund”)

Sterling Capital Strategic Allocation Growth Fund (the “Growth Fund”)

(Collectively, “Sterling Capital Strategic Allocation Funds”)

Q. How did the Funds perform during the 12-month period between October 1, 2016 and September 30, 2017?

A. The Growth Fund’s Institutional Shares outperformed its current benchmark, 75% MSCI World Index/25% Bloomberg Barclays U.S. Aggregate Bond Index.

The Balanced Fund’s Institutional Shares outperformed its current benchmark, 60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Bond Index.

Q. What factors affected the Funds’ performance?

A. The Strategic Allocation Funds held five underlying funds: The Sterling Capital Special Opportunities Fund, the Sterling Capital Equity Income Fund, the Sterling Capital Total Return Bond Fund, the Sterling Capital Long/Short Equity Fund and the Sterling Capital Behavioral International Equity Fund.

The broad equity and fixed income markets performed well over the fiscal year, boosted by low inflation, accommodative monetary policies and a low risk of recession, both domestically and globally. As a result, all five

underlying funds posted positive absolute returns. The Sterling Capital Behavioral International Equity Fund (SBIIX) had the highest return among underlying funds, due largely to strong performance among developed market international stocks.

Both of the Strategic Allocation Funds outperformed their benchmarks over the reporting period, with three of the five underlying funds outperforming their respective benchmarks. The largest individual contribution came from the Sterling Capital Behavioral International Equity Fund, which outperformed the MSCI EAFE Index by more than four percentage points.

From an asset allocation perspective, an overweight global equity position benefited the portfolio, as stocks dramatically outperformed bonds during the period. The Funds’ overweight exposure to developed market international stocks also contributed to relative returns, as these assets slightly outperformed domestic stocks.

Among the Funds’ underlying funds, a major contributor was the Sterling Capital Total Return Bond Fund, which returned 1.00% compared to a 0.07% return for its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

The Sterling Capital Long/Short Equity Fund was the leading detractor from the Fund’s relative returns, trailing its benchmark by more than 10 percentage points. The Sterling Capital Special Opportunities Fund also underperformed its benchmark, dragging on the Fund’s relative results.

Portfolio composition is as of September 30, 2017 and is subject to change and risk.

50

Sterling Capital Strategic Allocation Balanced Fund

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Average Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	1/29/98	5.05%	5.93%	3.47%
Class C Shares**	2/1/01	10.68%	6.40%	3.32%
Institutional Shares	10/2/97	11.75%	7.50%	4.36%
60% MSCI World Index/ 40% Bloomberg Barclays U.S. Aggregate Bond Index	N/A	10.63%	7.47%	4.59%
MSCI World Index	N/A	18.17%	10.99%	4.22%
Bloomberg Barclays U.S. Aggregate Bond Index	N/A	0.07%	2.06%	4.27%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks.

The Fund is measured against the 60% MSCI World Index/40% Bloomberg Barclays U.S. Aggregate Bond Index. The index is unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

51

Sterling Capital Strategic Allocation Growth Fund

* Reflects 5.75% maximum sales charge.

** Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Annual Average Total Returns table since the periods reflected are for a year or longer).

Average Annual Total Returns
As of September 30, 2017	Inception Date	1 Year	5 Years	10 Years
Class A Shares*	1/29/98	7.69%	7.14%	3.13%
Class C Shares**	2/1/01	13.36%	7.62%	2.98%
Institutional Shares	10/2/97	14.48%	8.72%	4.01%
75% MSCI World Index/ 25% Bloomberg Barclays U.S. Aggregate Bond Index	N/A	13.40%	8.80%	4.50%
MSCI World Index	N/A	18.17%	10.99%	4.22%
Bloomberg Barclays U.S. Aggregate Bond Index	N/A	0.07%	2.06%	4.27%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.sterlingcapitalfunds.com. Performance would have been lower without limitations and/or waivers in effect.

The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks.

The Fund is measured against the 75% MSCI World Index/25% Bloomberg Barclays U.S. Aggregate Bond Index. The index is unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.

52

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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 September 30, 2017:

Sterling Capital Behavioral Large Cap Value Equity Fund	Percentage of net assets
Automobiles & Components		2.1	%
Banks		11.4	%
Capital Goods		7.8	%
Commercial & Professional Services		0.1	%
Consumer Durables & Apparel		0.4	%
Consumer Services		1.7	%
Diversified Financials		7.8	%
Energy		9.9	%
Food & Staples Retailing		1.3	%
Food, Beverage & Tobacco		3.1	%
Health Care Equipment & Services		6.2	%
Household & Personal Products		1.5	%
Insurance		3.7	%
Materials		3.4	%
Media		1.4	%
Pharmaceuticals, Biotechnology & Life Sciences		9.5	%
Real Estate		3.8	%
Retailing		2.5	%
Semiconductors & Semiconductor Equipment		3.7	%
Software & Services		3.5	%
Technology Hardware & Equipment		3.9	%
Telecommunication Services		2.1	%
Transportation		2.0	%
Utilities		5.1	%
Money Market Fund		2.0	%
		99.9	%
Sterling Capital Mid Value Fund	Percentage of net assets
Automobiles & Components		3.4	%
Capital Goods		8.1	%
Commercial & Professional Services		0.4	%
Consumer Durables & Apparel		1.1	%
Consumer Services		1.4	%
Diversified Financials		20.0	%
Energy		2.3	%
Health Care Equipment & Services		11.2	%
Insurance		8.7	%
Materials		5.1	%
Media		8.3	%
Real Estate		6.9	%
Retailing		3.6	%
Software & Services		10.8	%
Technology Hardware & Equipment		5.8	%
Money Market Fund		2.8	%
		99.9	%

Sterling Capital Behavioral Small Cap Value Equity Fund	Percentage of net assets
Automobiles & Components		1.0	%
Banks		23.8	%
Capital Goods		9.3	%
Commercial & Professional Services		1.5	%
Consumer Durables & Apparel		2.0	%
Consumer Services		3.0	%
Diversified Financials		6.2	%
Energy		4.9	%
Food & Staples Retailing		0.5	%
Food, Beverage & Tobacco		1.5	%
Health Care Equipment & Services		4.3	%
Insurance		4.9	%
Materials		5.0	%
Media		0.4	%
Pharmaceuticals, Biotechnology & Life Sciences		1.2	%
Real Estate		6.9	%
Retailing		4.1	%
Semiconductors & Semiconductor Equipment		3.0	%
Technology Hardware & Equipment		5.3	%
Telecommunication Services		0.5	%
Transportation		2.4	%
Utilities		6.4	%
Money Market Fund		1.6	%
		99.7	%
Sterling Capital Special Opportunities Fund	Percentage of net assets
Automobiles & Components		6.6	%
Commercial & Professional Services		7.5	%
Consumer Durables & Apparel		5.2	%
Consumer Services		3.6	%
Diversified Financials		3.3	%
Health Care Equipment & Services		14.0	%
Materials		3.3	%
Media		13.8	%
Pharmaceuticals, Biotechnology & Life Sciences		10.9	%
Real Estate		5.5	%
Software & Services		19.3	%
Technology Hardware & Equipment		4.3	%
Money Market Fund		2.7	%
		100.0	%
Sterling Capital Equity Income Fund	Percentage of net assets
Automobiles & Components		3.3	%
Banks		3.8	%
Capital Goods		3.9	%
Commercial & Professional Services		4.2	%
Diversified Financials		8.4	%
Energy		6.8	%
Food & Staples Retailing		3.4	%
Food, Beverage & Tobacco		3.8	%
Health Care Equipment & Services		7.8	%
Media		5.8	%
Pharmaceuticals, Biotechnology & Life Sciences		18.0	%
Real Estate		2.2	%
Retailing		3.0	%
Semiconductors & Semiconductor Equipment		7.2	%
Software & Services		8.8	%
Telecommunication Services		4.2	%
Transportation		4.1	%
Money Market Fund		1.1	%
		99.8	%

54

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Long/Short Equity Fund	Long-Term Investment Percentage of net assets
Banks		6.4	%
Consumer Services		0.4	%
Diversified Financials		11.7	%
Energy		17.8	%
Health Care Equipment & Services		10.5	%
Insurance		3.0	%
Materials		0.1	%
Media		1.0	%
Pharmaceuticals, Biotechnology & Life Sciences		13.4	%
Real Estate		1.0	%
Software & Services		8.9	%
Technology Hardware & Equipment		10.3	%
Telecommunication Services		6.4	%
Money Market Fund		10.4	%
Options Purchased		0.1	%
		101.4	%
Sterling Capital Long/Short Equity Fund	Investments Sold Short Percentage of net assets
Banks		(3.3	)%
Consumer Durables & Apparel		(0.3	)%
Diversified Financials		(1.1	)%
Energy		(1.7	)%
Exchange Traded Funds		(8.3	)%
Food & Staples Retailing		(0.3	)%
Health Care Equipment & Services		(2.8	)%
Pharmaceuticals, Biotechnology & Life Sciences		(1.7	)%
Real Estate		(0.3	)%
Retailing		(0.7	)%
Software & Services		(3.8	)%
Technology Hardware & Equipment		(0.7	)%
Telecommunication Services		(0.3	)%
		(25.3	)%

Sterling Capital Behavioral International Equity Fund	Percentage of net assets
Australia		5.9	%
Austria		1.1	%
Belgium		0.7	%
Denmark		2.4	%
Finland		0.8	%
France		13.2	%
Germany		8.3	%
Hong Kong		3.4	%
Italy		4.5	%
Japan		22.0	%
Netherlands		5.7	%
Norway		2.0	%
Portugal		1.0	%
Singapore		1.0	%
Spain		6.0	%
Sweden		1.5	%
Switzerland		5.6	%
United Kingdom		12.9	%
United States		1.2	%
Money Market Fund		0.2	%
		99.4	%

Sterling Capital SMID Opportunities Fund	Percentage of net assets
Automobiles & Components		3.2	%
Banks		2.9	%
Commercial & Professional Services		5.3	%
Consumer Durables & Apparel		7.0	%
Consumer Services		10.2	%
Energy		1.3	%
Food, Beverage & Tobacco		3.8	%
Health Care Equipment & Services		15.0	%
Materials		6.5	%
Pharmaceuticals, Biotechnology & Life Sciences		3.4	%
Real Estate		5.4	%
Retailing		3.4	%
Software & Services		16.6	%
Technology Hardware & Equipment		2.7	%
Transportation		2.7	%
Money Market Fund		8.8	%
		98.2	%
Sterling Capital Stratton Mid Cap Value Fund	Percentage of net assets
Automobiles & Components		3.6	%
Banks		8.4	%
Capital Goods		7.9	%
Consumer Durables & Apparel		4.7	%
Consumer Services		1.3	%
Diversified Financials		3.7	%
Energy		7.0	%
Food & Staples Retailing		2.0	%
Food, Beverage & Tobacco		3.8	%
Health Care Equipment & Services		4.2	%
Household & Personal Products		1.2	%
Insurance		6.3	%
Materials		8.4	%
Pharmaceuticals, Biotechnology & Life Sciences		7.1	%
Real Estate		10.4	%
Semiconductors & Semiconductor Equipment		2.9	%
Software & Services		5.9	%
Technology Hardware & Equipment		5.1	%
Utilities		3.1	%
Money Market Fund		3.0	%
		100.0	%
Sterling Capital Stratton Real Estate Fund	Percentage of net assets
Diversified		5.9	%
Health Care		9.4	%
Hotel & Resort		6.0	%
Industrial		5.1	%
Office		11.0	%
Residential		17.7	%
Retail		16.6	%
Specialized		26.5	%
Money Market Fund		1.4	%
		99.6	%

55

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Stratton Small Cap Value Fund	Percentage of net assets
Automobiles & Components		4.1	%
Banks		22.8	%
Capital Goods		14.5	%
Diversified Financials		1.8	%
Energy		2.3	%
Food & Staples Retailing		2.6	%
Health Care Equipment & Services		2.7	%
Insurance		3.4	%
Materials		3.7	%
Pharmaceuticals, Biotechnology & Life Sciences		2.9	%
Real Estate		9.4	%
Semiconductors & Semiconductor Equipment		4.5	%
Software & Services		8.1	%
Technology Hardware & Equipment		6.2	%
Transportation		1.9	%
Utilities		8.0	%
Money Market Fund		1.1	%
		100.0	%
Sterling Capital Ultra Short Bond Fund	Percentage of net assets
Asset Backed Securities		21.3	%
Commercial Mortgage-Backed Securities		3.2	%
Corporate Bonds		72.2	%
Municipal Bonds		0.9	%
Money Market Fund		1.9	%
		99.5	%
Sterling Capital Short Duration Bond Fund	Percentage of net assets
Asset Backed Securities		16.0	%
Collateralized Mortgage Obligations		2.9	%
Commercial Mortgage-Backed Securities		8.9	%
Corporate Bonds		68.4	%
Municipal Bonds		2.4	%
U.S. Treasury Note		1.1	%
Money Market Fund		0.9	%
		100.6	%
Sterling Capital Intermediate U.S. Government Fund	Percentage of net assets
Asset Backed Securities		1.4	%
Collateralized Mortgage Obligations		3.5	%
Commercial Mortgage-Backed Securities		5.0	%
Corporate Bonds		6.4	%
Mortgage-Backed Securities		9.4	%
Municipal Bonds		3.5	%
U.S. Government Agencies		31.4	%
U.S. Treasury Notes		35.8	%
Money Market Fund		3.1	%
		99.5	%
Sterling Capital Total Return Bond Fund	Percentage of net assets
Asset Backed Securities		15.2	%
Collateralized Mortgage Obligations		6.8	%
Commercial Mortgage-Backed Securities		12.6	%
Corporate Bonds		37.6	%
Mortgage-Backed Securities		9.0	%
Municipal Bonds		7.0	%
Preferred Stocks		0.2	%
U.S. Government Agencies		0.4	%
U.S. Treasury Bonds		2.7	%
U.S. Treasury Notes		7.2	%
Money Market Fund		1.8	%
		100.5	%

Sterling Capital Corporate Fund	Percentage of net assets
Corporate Bonds		98.9	%
Money Market Fund		1.4	%
		100.3	%
Sterling Capital Securitized Opportunities Fund	Percentage of net assets
Asset Backed Securities		23.4	%
Collateralized Mortgage Obligations		25.0	%
Commercial Mortgage-Backed Securities		23.2	%
Corporate Bonds		0.9	%
Mortgage-Backed Securities		27.3	%
Money Market Fund		0.1	%
		99.9	%
Sterling Capital Kentucky Intermediate Tax-Free Fund	Percentage of net assets
Kentucky Municipal Bonds		98.6	%
Money Market Fund		0.2	%
		98.8	%
Sterling Capital Maryland Intermediate Tax-Free Fund	Percentage of net assets
Maryland Municipal Bonds		98.2	%
Money Market Fund		0.9	%
		99.1	%
Sterling Capital North Carolina Intermediate Tax-Free Fund	Percentage of net assets
North Carolina Municipal Bonds		97.0	%
Money Market Fund		1.9	%
		98.9	%
Sterling Capital South Carolina Intermediate Tax-Free Fund	Percentage of net assets
South Carolina Municipal Bonds		97.9	%
Money Market Fund		1.0	%
		98.9	%
Sterling Capital Virginia Intermediate Tax-Free Fund	Percentage of net assets
District of Columbia Municipal Bonds		2.0	%
Virginia Municipal Bonds		96.5	%
Money Market Fund		0.7	%
		99.2	%
Sterling Capital West Virginia Intermediate Tax-Free Fund	Percentage of net assets
West Virginia Municipal Bonds		97.5	%
Money Market Fund		1.3	%
		98.8	%
Sterling Capital Diversified Income Fund	Percentage of net assets
Equity Funds		36.6	%
Fixed Income Fund		62.9	%
Money Market Fund		0.8	%
		100.3	%

56

Sterling Capital Funds

Summary of Portfolio Holdings (Unaudited)

Sterling Capital Strategic Allocation Balanced Fund	Percentage of net assets
Equity Funds		66.6	%
Fixed Income Fund		32.7	%
Money Market Fund		0.6	%
		99.9	%
Sterling Capital Strategic Allocation Growth Fund	Percentage of net assets
Equity Funds		83.2	%
Fixed Income Fund		16.4	%
Money Market Fund		0.4	%
		100.0	%

57

Sterling Capital Funds

Expense Example (Unaudited)

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

These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2017 through September 30, 2017.

Actual Example

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

	Beginning Account Value 4/1/17			Ending Account Value 9/30/17			Expenses Paid During Period* 4/1/17 - 9/30/17			Annualized Expense Ratio During Period 4/1/17 - 9/30/17
Sterling Capital Behavioral Large Cap Value Equity Fund
Class A Shares		$	1,000.00		$	1,070.09		$	4.57		0.88	%
Class C Shares			1,000.00			1,065.54			8.44		1.63	%
Institutional Shares			1,000.00			1,071.06			3.27		0.63	%
Sterling Capital Mid Value Fund
Class A Shares			1,000.00			1,009.16			5.79		1.15	%
Class C Shares			1,000.00			1,006.00			9.55		1.90	%
Institutional Shares			1,000.00			1,010.63			4.54		0.90	%
Class R Shares			1,000.00			1,008.34			7.05		1.40	%
Sterling Capital Behavioral Small Cap Value Equity Fund
Class A Shares			1,000.00			1,055.07			5.36		1.04	%
Class C Shares			1,000.00			1,051.10			9.20		1.79	%
Institutional Shares			1,000.00			1,056.39			4.12		0.80	%
Class R Shares			1,000.00			1,054.70			6.64		1.29	%
Sterling Capital Special Opportunities Fund
Class A Shares			1,000.00			1,049.22			5.70		1.11	%
Class C Shares			1,000.00			1,045.04			9.54		1.86	%
Institutional Shares			1,000.00			1,050.80			4.47		0.87	%
Class R Shares			1,000.00			1,048.20			6.98		1.36	%
Sterling Capital Equity Income Fund
Class A Shares			1,000.00			1,082.10			5.32		1.02	%
Class C Shares			1,000.00			1,078.64			9.22		1.77	%
Institutional Shares			1,000.00			1,083.96			4.02		0.77	%
Class R Shares			1,000.00			1,081.00			6.63		1.27	%
Sterling Capital Long/Short Equity Fund
Class A Shares			1,000.00			1,052.27			17.80		3.46	%
Class C Shares			1,000.00			1,047.73			21.56		4.20	%
Institutional Shares			1,000.00			1,052.93			16.52		3.21	%
Sterling Capital Behavioral International Equity Fund
Class A Shares			1,000.00			1,138.56			5.04		0.94	%
Class C Shares			1,000.00			1,133.40			9.04		1.69	%
Institutional Shares			1,000.00			1,139.53			3.70		0.69	%
Sterling Capital SMID Opportunities Fund
Class A Shares			1,000.00			1,047.24			5.34		1.04	%
Class C Shares			1,000.00			1,042.90			9.17		1.79	%
Institutional Shares			1,000.00			1,048.08			4.06		0.79	%
Sterling Capital Stratton Mid Cap Value Fund
Class A Shares			1,000.00			1,079.35			5.99		1.15	%
Class C Shares			1,000.00			1,075.31			9.68		1.86	%
Institutional Shares			1,000.00			1,080.80			4.69		0.90	%
Sterling Capital Stratton Real Estate Fund
Class A Shares			1,000.00			1,027.86			5.29		1.04	%
Class C Shares			1,000.00			1,024.25			9.03		1.78	%
Institutional Shares			1,000.00			1,029.23			4.02		0.79	%
Sterling Capital Stratton Small Cap Value Fund
Class A Shares			1,000.00			1,078.83			6.83		1.31	%
Class C Shares			1,000.00			1,074.85			10.66		2.05	%
Institutional Shares			1,000.00			1,080.12			5.53		1.06	%
Sterling Capital Ultra Short Bond Fund
Class A Shares			1,000.00			1,006.62			3.42		0.68	%
Institutional Shares			1,000.00			1,008.91			2.22		0.44	%

58

Sterling Capital Funds

Expense Example (Unaudited)

	Beginning Account Value 4/1/17			Ending Account Value 9/30/17			Expenses Paid During Period* 4/1/17 - 9/30/17			Annualized Expense Ratio During Period 4/1/17 - 9/30/17
Sterling Capital Short Duration Bond Fund
Class A Shares		$	1,000.00		$	1,009.87		$	3.48		0.69	%
Class C Shares			1,000.00			1,007.25			7.25		1.44	%
Institutional Shares			1,000.00			1,011.13			2.22		0.44	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares			1,000.00			1,008.92			4.28		0.85	%
Class C Shares			1,000.00			1,005.14			8.04		1.60	%
Institutional Shares			1,000.00			1,010.18			3.02		0.60	%
Sterling Capital Total Return Bond Fund
Class A Shares			1,000.00			1,024.31			3.65		0.72	%
Class C Shares			1,000.00			1,021.44			7.45		1.47	%
Institutional Shares			1,000.00			1,026.57			2.44		0.48	%
Class R Shares			1,000.00			1,023.97			4.97		0.98	%
Sterling Capital Corporate Fund
Class A Shares			1,000.00			1,024.05			4.36		0.86	%
Class C Shares			1,000.00			1,020.23			8.15		1.61	%
Institutional Shares			1,000.00			1,024.33			3.10		0.61	%
Sterling Capital Securitized Opportunities Fund
Class A Shares			1,000.00			1,019.92			4.15		0.82	%
Class C Shares			1,000.00			1,014.98			7.98		1.58	%
Institutional Shares			1,000.00			1,020.04			2.94		0.58	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,019.15			4.61		0.91	%
Class C Shares			1,000.00			1,016.58			7.03		1.39	%
Institutional Shares			1,000.00			1,020.42			3.34		0.66	%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,019.90			4.30		0.85	%
Class C Shares			1,000.00			1,015.15			8.08		1.60	%
Institutional Shares			1,000.00			1,021.16			3.04		0.60	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,019.14			4.00		0.79	%
Class C Shares			1,000.00			1,015.34			7.78		1.54	%
Institutional Shares			1,000.00			1,020.41			2.74		0.54	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.02			4.05		0.80	%
Class C Shares			1,000.00			1,017.12			7.84		1.55	%
Institutional Shares			1,000.00			1,022.32			2.79		0.55	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,019.43			4.00		0.79	%
Class C Shares			1,000.00			1,015.64			7.78		1.54	%
Institutional Shares			1,000.00			1,020.69			2.74		0.54	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.71			4.10		0.81	%
Class C Shares			1,000.00			1,017.90			7.89		1.56	%
Institutional Shares			1,000.00			1,021.97			2.84		0.56	%
Sterling Capital Diversified Income Fund
Class A Shares			1,000.00			1,023.64			3.91		0.77	%
Class C Shares			1,000.00			1,019.01			7.69		1.52	%
Institutional Shares			1,000.00			1,024.66			2.54		0.50	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares			1,000.00			1,068.93			2.18		0.42	%
Class C Shares			1,000.00			1,066.31			6.06		1.17	%
Institutional Shares			1,000.00			1,070.69			0.88		0.17	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,080.04			2.35		0.45	%
Class C Shares			1,000.00			1,075.99			6.25		1.20	%
Institutional Shares			1,000.00			1,081.18			1.04		0.20	%

* Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 183 days divided by 365 (to reflect the six month period).

59

Sterling Capital Funds

Expense Example (Unaudited)

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 4/1/17			Ending Account Value 9/30/17			Expenses Paid During Period* 4/1/17 - 9/30/17				Annualized Expense Ratio During Period 4/1/17 - 9/30/17
Sterling Capital Behavioral Large Cap Value Equity Fund
Class A Shares		$	1,000.00		$	1,020.66		$	4.46			0.88	%
Class C Shares			1,000.00			1,016.90			8.24			1.63	%
Institutional Shares			1,000.00			1,021.91			3.19	��		0.63	%
Sterling Capital Mid Value Fund
Class A Shares			1,000.00			1,019.30			5.82			1.15	%
Class C Shares			1,000.00			1,015.54			9.60			1.90	%
Institutional Shares			1,000.00			1,020.56			4.56			0.90	%
Class R Shares			1,000.00			1,018.05			7.08			1.40	%
Sterling Capital Behavioral Small Cap Value Equity Fund
Class A Shares			1,000.00			1,019.85			5.27			1.04	%
Class C Shares			1,000.00			1,016.09			9.05			1.79	%
Institutional Shares			1,000.00			1,021.06			4.05			0.80	%
Class R Shares			1,000.00			1,018.60			6.53			1.29	%
Sterling Capital Special Opportunities Fund
Class A Shares			1,000.00			1,019.50			5.62			1.11	%
Class C Shares			1,000.00			1,015.74			9.40			1.86	%
Institutional Shares			1,000.00			1,020.71			4.41			0.87	%
Class R Shares			1,000.00			1,018.25			6.88			1.36	%
Sterling Capital Equity Income Fund
Class A Shares			1,000.00			1,019.95			5.16			1.02	%
Class C Shares			1,000.00			1,016.19			8.95			1.77	%
Institutional Shares			1,000.00			1,021.21			3.90			0.77	%
Class R Shares			1,000.00			1,018.70			6.43			1.27	%
Sterling Capital Long/Short Equity Fund
Class A Shares			1,000.00			1,007.72			17.41			3.46	%
Class C Shares			1,000.00			1,004.01			21.10			4.20	%
Institutional Shares			1,000.00			1,008.97			16.17			3.21	%
Sterling Capital Behavioral International Equity Fund
Class A Shares			1,000.00			1,020.36			4.76			0.94	%
Class C Shares			1,000.00			1,016.60			8.54			1.69	%
Institutional Shares			1,000.00			1,021.61			3.50			0.69	%
Sterling Capital SMID Opportunities Fund
Class A Shares			1,000.00			1,019.85			5.27			1.04	%
Class C Shares			1,000.00			1,016.09			9.05			1.79	%
Institutional Shares			1,000.00			1,021.11			4.00			0.79	%
Sterling Capital Stratton Mid Cap Value Fund
Class A Shares			1,000.00			1,019.30			5.82			1.15	%
Class C Shares			1,000.00			1,015.74			9.40			1.86	%
Institutional Shares			1,000.00			1,020.56			4.56			0.90	%
Sterling Capital Stratton Real Estate Fund
Class A Shares			1,000.00			1,019.85			5.27			1.04	%
Class C Shares			1,000.00			1,016.14			9.00			1.78	%
Institutional Shares			1,000.00			1,021.11			4.00			0.79	%
Sterling Capital Stratton Small Cap Value Fund
Class A Shares			1,000.00			1,018.50			6.63			1.31	%
Class C Shares			1,000.00			1,014.79			10.35			2.05	%
Institutional Shares			1,000.00			1,019.75			5.37			1.06	%

60

Sterling Capital Funds

Expense Example (Unaudited)

	Beginning Account Value 4/1/17			Ending Account Value 9/30/17			Expenses Paid During Period* 4/1/17 - 9/30/17			Annualized Expense Ratio During Period 4/1/17 - 9/30/17
Sterling Capital Ultra Short Bond Fund
Class A Shares		$	1,000.00		$	1,021.66		$	3.45		0.68	%
Institutional Shares			1,000.00			1,022.86			2.23		0.44	%
Sterling Capital Short Duration Bond Fund
Class A Shares			1,000.00			1,021.61			3.50		0.69	%
Class C Shares			1,000.00			1,017.85			7.28		1.44	%
Institutional Shares			1,000.00			1,022.86			2.23		0.44	%
Sterling Capital Intermediate U.S. Government Fund
Class A Shares			1,000.00			1,020.81			4.31		0.85	%
Class C Shares			1,000.00			1,017.05			8.09		1.60	%
Institutional Shares			1,000.00			1,022.06			3.04		0.60	%
Sterling Capital Total Return Bond Fund
Class A Shares			1,000.00			1,021.46			3.65		0.72	%
Class C Shares			1,000.00			1,017.70			7.44		1.47	%
Institutional Shares			1,000.00			1,022.66			2.43		0.48	%
Class R Shares			1,000.00			1,020.16			4.96		0.98	%
Sterling Capital Corporate Fund
Class A Shares			1,000.00			1,020.76			4.36		0.86	%
Class C Shares			1,000.00			1,017.00			8.14		1.61	%
Institutional Shares			1,000.00			1,022.01			3.09		0.61	%
Sterling Capital Securitized Opportunities Fund
Class A Shares			1,000.00			1,020.96			4.15		0.82	%
Class C Shares			1,000.00			1,017.15			7.99		1.58	%
Institutional Shares			1,000.00			1,022.16			2.94		0.58	%
Sterling Capital Kentucky Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.51			4.61		0.91	%
Class C Shares			1,000.00			1,018.10			7.03		1.39	%
Institutional Shares			1,000.00			1,021.76			3.35		0.66	%
Sterling Capital Maryland Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,020.81			4.31		0.85	%
Class C Shares			1,000.00			1,017.05			8.09		1.60	%
Institutional Shares			1,000.00			1,022.06			3.04		0.60	%
Sterling Capital North Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,021.11			4.00		0.79	%
Class C Shares			1,000.00			1,017.35			7.79		1.54	%
Institutional Shares			1,000.00			1,022.36			2.74		0.54	%
Sterling Capital South Carolina Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,021.06			4.05		0.80	%
Class C Shares			1,000.00			1,017.30			7.84		1.55	%
Institutional Shares			1,000.00			1,022.31			2.79		0.55	%
Sterling Capital Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,021.11			4.00		0.79	%
Class C Shares			1,000.00			1,017.35			7.79		1.54	%
Institutional Shares			1,000.00			1,022.36			2.74		0.54	%
Sterling Capital West Virginia Intermediate Tax-Free Fund
Class A Shares			1,000.00			1,021.01			4.10		0.81	%
Class C Shares			1,000.00			1,017.25			7.89		1.56	%
Institutional Shares			1,000.00			1,022.26			2.84		0.56	%
Sterling Capital Diversified Income Fund
Class A Shares			1,000.00			1,021.21			3.90		0.77	%
Class C Shares			1,000.00			1,017.45			7.69		1.52	%
Institutional Shares			1,000.00			1,022.56			2.54		0.50	%
Sterling Capital Strategic Allocation Balanced Fund
Class A Shares			1,000.00			1,022.96			2.13		0.42	%
Class C Shares			1,000.00			1,019.20			5.92		1.17	%
Institutional Shares			1,000.00			1,024.22			0.86		0.17	%
Sterling Capital Strategic Allocation Growth Fund
Class A Shares			1,000.00			1,022.81			2.28		0.45	%
Class C Shares			1,000.00			1,019.05			6.07		1.20	%
Institutional Shares			1,000.00			1,024.07			1.01		0.20	%

* Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 183 days divided by 365 (to reflect the six month period).

61

Sterling Capital Behavioral Large Cap Value Equity Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 97.9%
		Automobiles & Components — 2.1%
	47,150	Delphi Automotive PLC	$	4,639,560
	10,829	Lear Corp.		1,874,283
				6,513,843
		Banks — 11.4%
	415,150	Bank of America Corp.		10,519,901
	135,350	JPMorgan Chase & Co.		12,927,279
	45,550	PNC Financial Services Group, Inc. (The)		6,138,773
	88,700	SunTrust Banks, Inc.		5,301,599
				34,887,552
		Capital Goods — 7.8%
	18,600	Boeing Co. (The)		4,728,306
	36,200	Caterpillar, Inc.		4,514,502
	29,800	Cummins, Inc.		5,007,294
	7,900	Huntington Ingalls Industries, Inc.		1,788,876
	39,150	Ingersoll-Rand PLC		3,491,006
	18,000	Owens Corning		1,392,300
	14,650	Spirit AeroSystems Holdings, Inc., Class A		1,138,598
	13,100	United Rentals, Inc.(a)		1,817,494
				23,878,376
		Commercial & Professional Services — 0.1%
	3,300	ManpowerGroup, Inc.		388,806
		Consumer Durables & Apparel — 0.4%
	10,700	PVH Corp.		1,348,842
		Consumer Services — 1.7%
	74,750	Carnival Corp.		4,826,607
	2,550	Royal Caribbean Cruises, Ltd.		302,277
				5,128,884
		Diversified Financials — 7.8%
	10,350	Ameriprise Financial, Inc.		1,537,079
	107,350	Annaly Capital Management, Inc., REIT		1,308,597
	43,200	Artisan Partners Asset Management, Inc., Class A		1,408,320
	107,300	BGC Partners, Inc., Class A		1,552,631
	31,400	Federated Investors, Inc., Class B		932,580
	61,400	Franklin Resources, Inc.		2,732,914
	157,850	MFA Financial, Inc., REIT		1,382,766
	127,650	Morgan Stanley		6,148,901
	56,950	State Street Corp.		5,441,003
	16,050	T Rowe Price Group, Inc.		1,454,933
				23,899,724
		Energy — 9.9%
	13,350	Andeavor		1,377,053
	100,450	Gulfport Energy Corp.(a)		1,440,453
	46,000	HollyFrontier Corp.		1,654,620
	97,200	Marathon Petroleum Corp.		5,450,976
	25,550	ONEOK, Inc.		1,415,725
	40,900	Phillips 66		3,746,849
	65,500	RPC, Inc.		1,623,745
	48,950	TechnipFMC PLC(a)		1,366,684
	162,250	Transocean, Ltd.(a)		1,745,810
	76,975	Valero Energy Corp.		5,921,687
	157,350	Williams Cos., Inc. (The)		4,722,074
				30,465,676
		Food & Staples Retailing — 1.3%
	52,650	Wal-Mart Stores, Inc.		4,114,071

Shares			Fair Value
	COMMON STOCKS — (continued)
		Food, Beverage & Tobacco — 3.1%
	18,050	Bunge, Ltd.	$	1,253,753
	5,250	Ingredion, Inc.		633,360
	8,200	Philip Morris International, Inc.		910,282
	54,550	Pilgrim’s Pride Corp.(a)		1,549,765
	73,650	Tyson Foods, Inc., Class A		5,188,643
				9,535,803
		Health Care Equipment & Services — 6.2%
	29,650	Anthem, Inc.		5,629,942
	25,200	Cigna Corp.		4,710,888
	26,800	McKesson Corp.		4,116,748
	22,750	UnitedHealth Group, Inc.		4,455,588
				18,913,166
		Household & Personal Products — 1.5%
	30,350	Energizer Holdings, Inc.		1,397,617
	7,300	Estee Lauder Cos., Inc. (The), Class A		787,232
	14,550	Herbalife, Ltd.(a)		986,927
	22,800	Nu Skin Enterprises, Inc., Class A		1,401,744
				4,573,520
		Insurance — 3.7%
	16,150	Aflac, Inc.		1,314,449
	27,800	First American Financial Corp.		1,389,166
	19,350	Lincoln National Corp.		1,421,838
	24,850	Principal Financial Group, Inc.		1,598,849
	53,000	Prudential Financial, Inc.		5,634,960
				11,359,262
		Materials — 3.4%
	1,450	AdvanSix, Inc.(a)		57,637
	27,250	Chemours Co. (The)		1,379,123
	49,400	LyondellBasell Industries NV, Class A		4,893,070
	43,550	Olin Corp.		1,491,587
	54,500	Owens-Illinois, Inc.(a)		1,371,220
	46,050	Silgan Holdings, Inc.		1,355,251
				10,547,888
		Media — 1.4%
	23,650	AMC Networks, Inc., Class A(a)		1,382,815
	72,400	Comcast Corp., Class A		2,785,952
				4,168,767
		Pharmaceuticals, Biotechnology & Life Sciences — 9.5%
	50,600	AbbVie, Inc.		4,496,316
	36,950	Amgen, Inc.		6,889,327
	29,100	Celgene Corp.(a)		4,243,362
	65,800	Gilead Sciences, Inc.		5,331,116
	11,350	Johnson & Johnson		1,475,613
	29,050	Thermo Fisher Scientific, Inc.		5,496,260
	11,200	United Therapeutics Corp.(a)		1,312,528
				29,244,522
		Real Estate — 3.8%
	4,400	Digital Realty Trust, Inc., REIT		520,652
	37,350	Gaming and Leisure Properties, Inc., REIT		1,377,841
	71,500	Host Hotels & Resorts, Inc., REIT		1,322,035
	104,350	Medical Properties Trust, Inc., REIT		1,370,115
	43,050	Omega Healthcare Investors, Inc., REIT		1,373,725
	43,000	Realogy Holdings Corp.		1,416,850
	31,400	RMR Group, Inc. (The), Class A		1,612,390

Continued

62

Sterling Capital Behavioral Large Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — (continued)
		Real Estate — (continued)
	68,450	Senior Housing Properties Trust, REIT	$	1,338,197
	147,350	VEREIT, Inc., REIT		1,221,532
				11,553,337
		Retailing — 2.5%
	26,600	Best Buy Co., Inc.		1,515,136
	22,200	Michaels Cos., Inc. (The)(a)		476,634
	93,300	Target Corp.		5,505,633
				7,497,403
		Semiconductors & Semiconductor Equipment — 3.7%
	100,700	Applied Materials, Inc.		5,245,463
	17,550	Broadcom, Ltd.		4,256,577
	4,400	Lam Research Corp.		814,176
	28,800	Micron Technology, Inc.(a)		1,132,704
				11,448,920
		Software & Services — 3.5%
	86,200	First Data Corp., Class A(a)		1,555,048
	97,000	Oracle Corp.		4,689,950
	40,750	VMware, Inc., Class A(a)		4,449,493
				10,694,491
		Technology Hardware & Equipment — 3.9%
	27,550	Apple, Inc.		4,246,006
	272,300	HP, Inc.		5,435,108
	27,000	Western Digital Corp.		2,332,800
				12,013,914
		Telecommunication Services — 2.1%
	167,000	AT&T, Inc.		6,541,390
		Transportation — 2.0%
	10,150	Copa Holdings SA, Class A		1,263,980

Shares			Fair Value
	COMMON STOCKS — (continued)
		Transportation — (continued)
	99,200	Delta Air Lines, Inc.	$	4,783,424
				6,047,404
		Utilities — 5.1%
	29,050	AES Corp.		320,131
	6,900	Duke Energy Corp.		579,048
	139,900	Exelon Corp.		5,270,033
	130,700	PPL Corp.		4,960,065
	92,300	Southern Co. (The)		4,535,622
				15,664,899
		Total Common Stocks (Cost $251,502,156)		300,430,460
Shares
	MONEY MARKET FUND — 2.0%
	5,940,023	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		5,940,023
		Total Money Market Fund (Cost $5,940,023)		5,940,023
	Total Investments — 99.9% (Cost $257,442,179)			306,370,483
	Net Other Assets (Liabilities) — 0.1%			457,005
	NET ASSETS — 100.0%		$	306,827,488

(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.

63

Sterling Capital Mid Value Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 97.1%
		Automobiles & Components — 3.4%
	1,139,300	Gentex Corp.	$	22,558,140
		Capital Goods — 8.1%
	413,275	Allison Transmission Holdings, Inc.		15,510,211
	204,475	Jacobs Engineering Group, Inc.		11,914,758
	497,500	Sensata Technologies Holding NV(a)		23,914,825
	98,575	Trinity Industries, Inc.		3,144,543
				54,484,337
		Commercial & Professional Services — 0.4%
	962,150	Civeo Corp.(a)		2,742,127
		Consumer Durables & Apparel — 1.1%
	109,830	Deckers Outdoor Corp.(a)		7,513,470
		Consumer Services — 1.4%
	739,150	SeaWorld Entertainment, Inc.(a)		9,601,559
		Diversified Financials — 20.0%
	153,440	Affiliated Managers Group, Inc.		29,127,515
	1,374,825	Annaly Capital Management, Inc., REIT		16,759,117
	743,900	E*TRADE Financial Corp.(a)		32,441,479
	1,141,975	Leucadia National Corp.		28,834,869
	360,375	Synchrony Financial		11,189,644
	177,475	T. Rowe Price Group, Inc.		16,088,109
				134,440,733
		Energy — 2.3%
	561,275	Noble Corp. PLC(a)		2,581,865
	2,068,900	Southwestern Energy Co.(a)		12,640,979
				15,222,844
		Health Care Equipment & Services — 11.2%
	171,450	HCA Healthcare, Inc.(a)		13,645,705
	141,150	Laboratory Corp. of America Holdings(a)		21,309,415
	107,435	McKesson Corp.		16,503,090
	201,125	Zimmer Biomet Holdings, Inc.		23,549,726
				75,007,936
		Insurance — 8.7%
	173,745	Assured Guaranty, Ltd.		6,558,874
	77,950	Enstar Group, Ltd.(a)		17,332,183
	206,955	Lincoln National Corp.		15,207,053
	17,975	Markel Corp.(a)		19,196,941
				58,295,051
		Materials — 5.1%
	951,100	Axalta Coating Systems, Ltd.(a)		27,505,812
	490,660	Rayonier Advanced Materials, Inc.		6,722,042
				34,227,854
		Media — 8.3%
	332,725	CBS Corp., Class B		19,298,050
	1,313,625	News Corp., Class B		17,930,981

Shares			Fair Value
	COMMON STOCKS — (continued)
		Media — (continued)
	249,275	Omnicom Group, Inc.	$	18,463,799
				55,692,830
		Real Estate — 6.9%
	658,450	CBRE Group, Inc., Class A(a)		24,942,086
	355,700	Realogy Holdings Corp.		11,720,315
	150,705	Ryman Hospitality Properties, Inc., REIT		9,417,555
				46,079,956
		Retailing — 3.6%
	1,223,100	Ascena Retail Group, Inc.(a)		2,996,595
	641,000	Chico’s FAS, Inc.		5,736,950
	191,250	Dollar General Corp.		15,500,813
				24,234,358
		Software & Services — 10.8%
	939,660	DHI Group, Inc.(a)		2,443,116
	229,200	DST Systems, Inc.		12,578,496
	558,850	eBay, Inc.(a)		21,493,371
	202,950	Fidelity National Information Services, Inc.		18,953,501
	55,300	MicroStrategy, Inc., Class A(a)		7,062,363
	516,225	Western Union Co. (The)		9,911,520
				72,442,367
		Technology Hardware & Equipment — 5.8%
	702,850	Knowles Corp.(a)		10,732,519
	741,175	NCR Corp.(a)		27,808,886
				38,541,405
		Total Common Stocks (Cost $523,098,957)		651,084,967
	MONEY MARKET FUND — 2.8%
	18,702,771	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		18,702,771
		Total Money Market Fund (Cost $18,702,771)		18,702,771
	Total Investments — 99.9% (Cost $541,801,728)			669,787,738
	Net Other Assets (Liabilities) — 0.1%			946,436
	NET ASSETS — 100.0%		$	670,734,174

(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.

64

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 98.1%
		Automobiles & Components — 1.0%
	9,584	Cooper-Standard Holding, Inc.(a)	$	1,111,456
	6,678	Lear Corp.		1,155,828
				2,267,284
		Banks — 23.8%
	4,550	BancFirst Corp.		258,213
	33,011	Banco Latinoamericano de Comercio Exterior SA		971,844
	20,126	Banner Corp.		1,233,321
	27,481	Berkshire Hills Bancorp, Inc.		1,064,889
	29,744	BofI Holding, Inc.(a)		846,812
	24,312	Camden National Corp.		1,060,976
	22,293	Carolina Financial Corp.		799,873
	18,737	Community Trust Bancorp, Inc.		871,271
	35,967	Customers Bancorp, Inc.(a)		1,173,244
	31,833	Enterprise Financial Services Corp.		1,348,128
	27,003	Essent Group, Ltd.(a)		1,093,621
	21,910	FCB Financial Holdings, Inc., Class A(a)		1,058,253
	21,294	Federal Agricultural Mortgage Corp., Class C		1,548,926
	43,156	Fidelity Southern Corp.		1,020,208
	24,131	Financial Institutions, Inc.		694,973
	164,346	First BanCorp(a)		841,451
	77,080	First Commonwealth Financial Corp.		1,089,140
	17,975	First Defiance Financial Corp.		943,508
	36,980	Flagstar Bancorp, Inc.(a)		1,312,050
	30,766	Flushing Financial Corp.		914,365
	71,755	Fulton Financial Corp.		1,345,406
	19,699	Heartland Financial USA, Inc.		973,131
	33,807	HomeStreet, Inc.(a)		912,789
	20,077	IBERIABANK Corp.		1,649,326
	49,240	Lakeland Bancorp, Inc.		1,004,496
	162,864	MGIC Investment Corp.(a)		2,040,686
	44,605	Nationstar Mortgage Holdings, Inc.(a)		828,315
	73,383	Old National Bancorp.		1,342,909
	27,506	Peapack Gladstone Financial Corp.		928,052
	20,063	Popular, Inc.		721,064
	23,024	Provident Financial Services, Inc.		614,050
	20,864	QCR Holdings, Inc.		949,312
	91,304	Radian Group, Inc.		1,706,472
	28,210	S&T Bancorp, Inc.		1,116,552
	23,999	Sandy Spring Bancorp, Inc.		994,519
	34,913	State Bank Financial Corp.		1,000,257
	16,824	Synovus Financial Corp.		774,913
	41,904	TCF Financial Corp.		714,044
	23,983	TriCo Bancshares		977,307
	102,559	TrustCo Bank Corp.		912,775
	88,842	Umpqua Holdings Corp.		1,733,307
	51,967	United Financial Bancorp, Inc.		950,476
	119,371	Valley National Bancorp		1,438,421
	32,275	Walker & Dunlop, Inc.(a)		1,688,951
	45,490	Washington Federal, Inc.		1,530,739
	22,162	Wintrust Financial Corp.		1,735,506
	22,417	Zions Bancorporation		1,057,634
				51,786,475
		Capital Goods — 9.3%
	11,866	Argan, Inc.		797,989
	26,385	Chart Industries, Inc.(a)		1,035,084
	30,333	Continental Building Products, Inc.(a)		788,658
	45,703	FreightCar America, Inc.		893,951
	23,701	Greenbrier Cos., Inc. (The)		1,141,203

Shares			Fair Value
	COMMON STOCKS — (continued)
		Capital Goods — (continued)
	78,579	Harsco Corp.(a)	$	1,642,301
	4,692	Huntington Ingalls Industries, Inc.		1,062,456
	55,170	Meritor, Inc.(a)		1,434,972
	10,647	Oshkosh Corp.		878,803
	13,015	Owens Corning		1,006,710
	34,253	Rush Enterprises, Inc., Class A(a)		1,585,571
	12,065	Spirit AeroSystems Holdings, Inc., Class A		937,692
	20,318	Terex Corp.		914,716
	16,364	Timken Co. (The)		794,472
	35,832	TPI Composites, Inc.(a)		800,487
	27,957	Trinity Industries, Inc.		891,828
	36,138	Triton International Ltd.		1,202,673
	7,657	United Rentals, Inc.(a)		1,062,332
	61,484	Wabash National Corp.		1,403,065
				20,274,963
		Commercial & Professional Services — 1.5%
	75,352	ACCO Brands Corp.(a)		896,689
	69,801	Casella Waste Systems, Inc., Class A(a)		1,312,259
	21,337	CRA International, Inc.		875,884
	3,452	McGrath RentCorp		151,025
				3,235,857
		Consumer Durables & Apparel — 2.0%
	62,448	Beazer Homes USA, Inc.(a)		1,170,275
	17,867	Deckers Outdoor Corp.(a)		1,222,281
	46,896	KB Home		1,131,132
	18,058	Toll Brothers, Inc.		748,865
				4,272,553
		Consumer Services — 3.0%
	35,601	Adtalem Global Education, Inc.(a)		1,276,296
	42,950	Extended Stay America, Inc.		859,000
	48,130	K12, Inc.(a)		858,639
	50,200	Penn National Gaming, Inc.(a)		1,174,178
	52,381	Pinnacle Entertainment, Inc.(a)		1,116,239
	27,472	Scientific Games Corp., Class A(a)		1,259,591
				6,543,943
		Diversified Financials — 6.2%
	34,591	ARMOUR Residential REIT, Inc., REIT		930,498
	45,236	Chimera Investment Corp., REIT		855,865
	35,822	Dynex Capital, Inc., REIT		260,426
	41,204	Great Ajax Corp., REIT		580,564
	70,589	Invesco Mortgage Capital, Inc., REIT		1,209,190
	102,913	MFA Financial, Inc., REIT		901,518
	60,800	MTGE Investment Corp., REIT		1,179,520
	20,958	Nelnet, Inc., Class A		1,058,379
	90,379	New Residential Investment Corp., REIT		1,512,041
	74,660	Redwood Trust, Inc., REIT		1,216,211
	49,465	Sutherland Asset Management Corp., REIT		776,601
	92,555	Two Harbors Investment Corp., REIT		932,954
	19,686	Voya Financial, Inc.		785,275
	15,404	World Acceptance Corp.(a)		1,276,838
				13,475,880
		Energy — 4.9%
	80,200	Archrock, Inc.		1,006,510
	51,232	CONSOL Energy, Inc.(a)		867,870
	39,550	CVR Energy, Inc.		1,024,345
	34,987	Exterran Corp.(a)		1,105,939
	22,012	HollyFrontier Corp.		791,772

Continued

65

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — (continued)
		Energy — (continued)
	30,640	Oceaneering International, Inc.	$	804,913
	43,430	Par Pacific Holdings, Inc.(a)		903,344
	89,378	Rowan Cos. PLC, Class A(a)		1,148,507
	67,895	Ship Finance International, Ltd.		984,477
	88,780	Transocean, Ltd.(a)		955,273
	49,057	Unit Corp.(a)		1,009,593
				10,602,543
		Food &Staples Retailing — 0.5%
	28,840	United Natural Foods, Inc.(a)		1,199,456
		Food, Beverage & Tobacco — 1.5%
	4,703	Boston Beer Co. Inc., Class A(a)		734,609
	31,111	Pilgrim’s Pride Corp.(a)		883,863
	10,740	Sanderson Farms, Inc.		1,734,725
				3,353,197
		Health Care Equipment & Services — 4.3%
	37,524	AngioDynamics, Inc.(a)		641,285
	26,972	Community Health Systems, Inc.(a)		207,145
	15,578	Halyard Health, Inc.(a)		701,477
	15,317	HealthSouth Corp.		709,943
	11,268	LHC Group, Inc.(a)		799,127
	10,550	LifePoint Health, Inc.(a)		610,845
	7,744	Masimo Corp.(a)		670,321
	20,896	Molina Healthcare, Inc.(a)		1,436,809
	66,830	OraSure Technologies, Inc.(a)		1,503,675
	53,844	Quality Systems, Inc.(a)		846,966
	6,997	WellCare Health Plans, Inc.(a)		1,201,665
				9,329,258
		Insurance — 4.9%
	58,428	American Equity Investment Life Holding Co.		1,699,086
	9,148	American Financial Group, Inc.		946,361
	22,618	Assured Guaranty, Ltd.		853,829
	73,847	CNO Financial Group, Inc.		1,723,589
	33,130	Employers Holdings, Inc.		1,505,759
	20,921	First American Financial Corp.		1,045,422
	7,202	Reinsurance Group of America, Inc.		1,004,895
	34,165	Selective Insurance Group, Inc.		1,839,785
				10,618,726
		Materials — 5.0%
	22,001	AdvanSix, Inc.(a)		874,540
	19,745	Domtar Corp.		856,736
	11,119	Kaiser Aluminum Corp.		1,146,814
	35,703	Louisiana-Pacific Corp.(a)		966,837
	24,138	Olin Corp.		826,727
	31,666	Owens-Illinois, Inc.(a)		796,717
	32,938	Schnitzer Steel Industries, Inc.		927,205
	26,545	Steel Dynamics, Inc.		915,006
	113,736	SunCoke Energy, Inc.(a)		1,039,547
	88,668	Tronox, Ltd., Class A		1,870,895
	9,959	U.S. Concrete, Inc.(a)		759,872
				10,980,896
		Media — 0.4%
	58,073	Gray Television, Inc.(a)		911,746
		Pharmaceuticals, Biotechnology & Life Sciences — 1.2%
	42,578	Akebia Therapeutics, Inc.(a)		837,509
	128,033	Conatus Pharmaceuticals, Inc.(a)		702,901

Shares			Fair Value
	COMMON STOCKS — (continued)
		Pharmaceuticals, Biotechnology & Life Sciences — (continued)
	342,847	PDL BioPharma, Inc.(a)	$	1,162,251
				2,702,661
		Real Estate — 6.9%
	19,994	Agree Realty Corp., REIT		981,305
	39,071	Apple Hospitality REIT, Inc., REIT		738,833
	37,849	Brixmor Property Group, Inc., REIT		711,561
	168,846	Cousins Properties, Inc., REIT		1,577,022
	111,018	DiamondRock Hospitality Co., REIT		1,215,647
	35,300	Forestar Group, Inc., REIT		607,160
	83,187	Independence Realty Trust, Inc., REIT		846,012
	16,898	Liberty Property Trust, REIT		693,832
	28,014	Monmouth Real Estate Investment Corp., REIT		453,547
	8,417	National Retail Properties, Inc., REIT		350,652
	22,227	Omega Healthcare Investors, Inc., REIT		709,264
	47,595	Preferred Apartment Communities, Inc., REIT		898,594
	32,612	Rexford Industrial Realty, Inc., REIT		933,355
	70,983	RLJ Lodging Trust, REIT		1,561,626
	60,514	Sabra Health Care REIT, Inc., REIT		1,327,677
	84,119	Spirit Realty Capital, Inc., REIT		720,900
	35,508	Tier REIT, Inc., REIT		685,304
				15,012,291
		Retailing — 4.1%
	32,799	Aaron’s, Inc.		1,431,020
	66,579	Abercrombie & Fitch Co.		961,401
	15,539	Big Lots, Inc.		832,424
	7,148	Children’s Place, Inc. (The)		844,536
	45,125	Conn’s, Inc.(a)		1,270,269
	17,337	Dillard’s, Inc., Class A		972,086
	35,050	Haverty Furniture Cos., Inc.		916,557
	13,741	RH(a)		966,267
	24,675	Select Comfort Corp.(a)		766,159
				8,960,719
		Semiconductors & Semiconductor Equipment — 3.0%
	122,227	Amkor Technology, Inc.(a)		1,289,495
	35,164	Diodes, Inc.(a)		1,052,458
	20,536	First Solar, Inc.(a)		942,192
	48,276	ON Semiconductor Corp.(a)		891,658
	60,465	Photronics, Inc.(a)		535,115
	30,644	Rudolph Technologies, Inc.(a)		805,937
	28,407	Teradyne, Inc.		1,059,297
				6,576,152
		Technology Hardware & Equipment — 5.3%
	55,506	AVX Corp.		1,011,874
	37,789	Benchmark Electronics, Inc.(a)		1,290,494
	33,916	Jabil, Inc.		968,302
	35,726	KEMET Corp.(a)		754,890
	16,716	NCR Corp.(a)		627,184
	13,779	Plexus Corp.(a)		772,726
	12,032	Rogers Corp.(a)		1,603,625
	46,968	Sanmina Corp.(a)		1,744,861
	78,917	TTM Technologies, Inc.(a)		1,212,954
	81,424	Vishay Intertechnology, Inc.		1,530,771
				11,517,681

Continued

66

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — (continued)
		Telecommunication Services — 0.5%
	100,420	Iridium Communications, Inc.(a)	$	1,034,326
		Transportation — 2.4%
	17,121	Atlas Air Worldwide Holdings, Inc.(a)		1,126,562
	8,305	Copa Holdings SA, Class A		1,034,222
	26,881	Hawaiian Holdings, Inc.(a)		1,009,382
	45,989	SkyWest, Inc.		2,018,917
				5,189,083
		Utilities — 6.4%
	22,483	Hawaiian Electric Industries, Inc.		750,258
	19,621	IDACORP, Inc.		1,725,274
	12,745	National Fuel Gas Co.		721,494
	15,915	NorthWestern Corp.		906,200
	52,874	NRG Yield, Inc., Class A		1,003,020
	55,866	NRG Yield, Inc., Class C		1,078,214
	22,247	OGE Energy Corp.		801,559
	4,586	ONE Gas, Inc.		337,713
	12,868	Pinnacle West Capital Corp.		1,088,118
	34,520	PNM Resources, Inc.		1,391,156
	34,783	Portland General Electric Co.		1,587,496
	18,120	SJW Group		1,025,592
	19,756	Spire, Inc.		1,474,785
				13,890,879
		Total Common Stocks (Cost $166,842,764)		213,736,569

Shares			Fair Value
	MONEY MARKET FUND — 1.6%
	3,614,175	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)	$	3,614,175
		Total Money Market Fund (Cost $3,614,175)		3,614,175
	Total Investments — 99.7% (Cost $170,456,939)			217,350,744
	Net Other Assets (Liabilities) — 0.3%			557,521
	NET ASSETS — 100.0%		$	217,908,265

(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.

67

Sterling Capital Special Opportunities Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 97.3%
		Automobiles & Components — 6.6%
	522,500	Delphi Automotive PLC(a)	$	51,414,000
	2,063,000	Ford Motor Co.		24,694,110
				76,108,110
		Commercial & Professional Services — 7.5%
	961,000	Nielsen Holdings PLC		39,833,450
	552,500	Verisk Analytics, Inc.(b)		45,962,475
				85,795,925
		Consumer Durables & Apparel — 5.2%
	582,000	Lennar Corp., Class A		30,729,600
	687,502	Newell Brands, Inc.		29,335,710
				60,065,310
		Consumer Services — 3.6%
	757,400	Norwegian Cruise Line Holdings, Ltd.(a)(b)		40,937,470
		Diversified Financials — 3.3%
	441,000	Capital One Financial Corp.		37,335,060
		Health Care Equipment & Services — 14.0%
	375,000	Cerner Corp.(b)		26,745,000
	360,830	Danaher Corp.		30,951,998
	621,000	HCA Healthcare, Inc.(b)		49,425,390
	359,000	MEDNAX, Inc.(b)		15,480,080
	190,500	UnitedHealth Group, Inc.		37,309,425
				159,911,893
		Materials — 3.3%
	291,000	Ecolab, Inc.		37,425,510
		Media — 13.8%
	632,000	CBS Corp., Class B		36,656,000
	1,358,000	Comcast Corp., Class A		52,255,840
	1,450,000	Discovery Communications, Inc., Class C(b)		29,377,000
	927,000	Live Nation Entertainment, Inc.(a)(b)		40,370,850
				158,659,690
		Pharmaceuticals, Biotechnology & Life Sciences — 10.9%
	549,000	Bristol-Myers Squibb Co.		34,993,260
	604,000	Gilead Sciences, Inc.(a)		48,936,080
	271,400	Shire PLC, ADR		41,562,196
				125,491,536
		Real Estate — 5.5%
	667,000	CBRE Group, Inc., Class A(b)		25,265,960

Shares			Fair Value
	COMMON STOCKS — (continued)
		Real Estate — (continued)
	607,000	Ryman Hospitality Properties, Inc., REIT	$	37,931,430
				63,197,390
		Software & Services — 19.3%
	522,000	Activision Blizzard, Inc.		33,674,220
	760,000	Akamai Technologies, Inc.(b)		37,027,200
	59,500	Alphabet, Inc., Class C(b)		57,067,045
	246,000	Check Point Software Technologies, Ltd.(b)		28,048,920
	280,000	Intuit, Inc.		39,799,200
	234,200	Red Hat, Inc.(a)(b)		25,963,412
				221,579,997
		Technology Hardware & Equipment — 4.3%
	1,450,000	Cisco Systems, Inc.		48,763,500
		Total Common Stocks (Cost $782,691,938)		1,115,271,391
	MONEY MARKET FUND — 2.7%
	31,093,934	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(c)		31,093,934
		Total Money Market Fund (Cost $31,093,934)		31,093,934
	Total Investments Before Options Written — 100.0%		$	1,146,365,325
	(Cost $813,785,872)
	Options Written — (0.1%) (Premiums Received $(689,781))			(1,013,750	)
	Total Investments — 99.9% (Cost $813,096,091)			1,145,351,575
	Net Other Assets (Liabilities) — 0.1%			890,725
	NET ASSETS — 100.0%		$	1,146,242,300

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

(b) Represents non-income producing security.

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

ADR — American Depositary Receipt

REIT — Real Estate Investment Trust

As of September 30, 2017, exchange traded options written outstanding were as follows:

Description	Call/Put		Number of Contracts		Notional Amount		Exercise Price		Expiration Date		Value
EXCHANGE TRADED OPTIONS WRITTEN — (0.1%)
Delphi Automotive PLC		Call		1,000	$	9,840,000	$	110.00		01/19/18	$	(120,000	)
Gilead Sciences, Inc.		Call		700		5,671,400		90.00		12/15/17		(70,000	)
Norwegian Cruise Line Holdings, Ltd.		Call		1,000		5,405,000		60.00		12/15/17		(80,000	)
Red Hat, Inc.		Call		750		8,314,500		125.00		01/19/18		(93,750	)
Live Nation Entertainment, Inc.		Call		1,000		4,355,000		37.00		10/20/17		(650,000	)
Total Exchange Traded Options Written											$	(1,013,750	)

See accompanying Notes to the Financial Statements.

68

Sterling Capital Equity Income Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 98.7%
		Automobiles & Components — 3.3%
	1,267,000	General Motors Co.	$	51,161,460
		Banks — 3.8%
	1,084,000	Wells Fargo & Co.		59,782,600
		Capital Goods — 3.9%
	434,000	Honeywell International, Inc.		61,515,160
		Commercial & Professional Services — 4.2%
	328,125	KAR Auction Services, Inc.		15,664,687
	992,775	Robert Half International, Inc.		49,976,294
				65,640,981
		Diversified Financials — 8.4%
	1,094,000	Discover Financial Services		70,541,120
	1,186,000	Invesco, Ltd.		41,557,440
	248,000	Nasdaq, Inc.		19,237,360
				131,335,920
		Energy — 6.8%
	1,717,040	Enbridge, Inc.		71,840,954
	543,700	Occidental Petroleum Corp.		34,910,977
				106,751,931
		Food & Staples Retailing — 3.4%
	509,750	CVS Health Corp.		41,452,870
	566,000	Kroger Co. (The)		11,353,960
				52,806,830
		Food, Beverage & Tobacco — 3.8%
	539,900	PepsiCo, Inc.		60,161,057
		Health Care Equipment & Services — 7.8%
	1,360,000	Abbott Laboratories		72,569,600
	258,100	Anthem, Inc.		49,008,028
				121,577,628
		Media — 5.8%
	681,000	Omnicom Group, Inc.		50,441,670
	391,000	Time Warner, Inc.		40,057,950
				90,499,620
		Pharmaceuticals, Biotechnology & Life Sciences — 18.0%
	832,000	AbbVie, Inc.		73,931,520
	456,000	Johnson & Johnson		59,284,560
	914,000	Merck & Co., Inc.		58,523,420
	619,000	Novartis AG, ADR		53,141,150
	1,053,400	Pfizer, Inc.		37,606,380
				282,487,030

Shares			Fair Value
	COMMON STOCKS — (continued)
		Real Estate — 2.2%
	345,000	Crown Castle International Corp., REIT	$	34,493,100
		Retailing — 3.0%
	590,000	Lowe’s Cos., Inc.		47,164,600
		Semiconductors & Semiconductor Equipment — 7.2%
	1,292,927	Maxim Integrated Products, Inc.(a)		61,685,547
	1,000,000	QUALCOMM, Inc.		51,840,000
				113,525,547
		Software & Services — 8.8%
	541,000	Accenture PLC, Class A		73,072,870
	868,000	MicrosoftCorp.		64,657,320
				137,730,190
		Telecommunication Services — 4.2%
	1,320,000	Verizon Communications, Inc.		65,326,800
		Transportation — 4.1%
	541,000	United Parcel Service, Inc., Class B		64,968,690
		Total Common Stocks (Cost $1,084,446,931)		1,546,929,144
	MONEY MARKET FUND — 1.1%
	17,922,575	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		17,922,575
		Total Money Market Fund (Cost $17,922,575)		17,922,575
	Total Investments Before Options Written — 99.8%		$	1,564,851,719
	(Cost $1,102,369,506)
	Options Written — 0.0%			(142,500	)
	(Premiums Received $(80,298))
	Total Investments — 99.8% (Cost $1,102,289,208)			1,564,709,219
	Net Other Assets (Liabilities) — 0.2%			2,501,566
	NET ASSETS — 100.0%		$	1,567,210,785

(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

As of September 30, 2017, exchange traded options written outstanding were as follows:

Description	Call/Put		Number of Contracts		Notional Amount		Exercise Price		Expiration Date		Value
EXCHANGE TRADED OPTIONS WRITTEN — 0.0%
Maxim Integrated Products, Inc.		Call		500	$	2,380,500	$	50.00		01/19/18	$	(65,000	)
Maxim Integrated Products, Inc.		Call		500		2,380,500		49.00		01/19/18		(77,500	)
Total Exchange Traded Options Written											$	(142,500	)

See accompanying Notes to the Financial Statements.

69

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 86.4%
		Banks — 3.1%
	5,700	Citigroup, Inc.(a)	$	414,618
	33,100	NMI Holdings, Inc., Class A(b)		410,440
	23,417	OFG Bancorp		214,266
				1,039,324
		Consumer Services — 0.4%
	18,600	BBX Capital Corp.		137,082
		Diversified Financials — 10.9%
	18,000	Ally Financial, Inc.(a)		436,680
	2,000	Ameriprise Financial, Inc.(a)		297,020
	17,000	Ares Management LP		317,050
	11,000	Blackstone Group LP (The)		367,070
	17,200	Carlyle Group LP (The)(a)		405,920
	4,500	Invesco, Ltd.		157,680
	20,800	KKR & Co. LP(a)		422,864
	3,700	Morgan Stanley(a)		178,229
	10,500	OneMain Holdings, Inc.(b)		295,995
	2,600	Raymond James Financial, Inc.		219,258
	19,700	SLM Corp.(a)(b)		225,959
	7,400	Voya Financial, Inc.(a)		295,186
				3,618,911
		Energy — 17.8%
	5,000	Anadarko Petroleum Corp.		244,250
	2,400	Antero Resources Corp.(b)		47,760
	14,000	ARC Resources, Ltd.		193,231
	6,593	Black Stone Minerals LP(a)		114,323
	9,500	Cabot Oil & Gas Corp.		254,125
	4,000	Canadian Natural Resources, Ltd.		133,960
	6,500	Cenovus Energy, Inc.		65,130
	1,000	Cheniere Energy, Inc.(b)		45,040
	600	Chevron Corp.		70,500
	2,700	Cimarex Energy Co.(a)		306,909
	1,900	Concho Resources, Inc.(b)		250,268
	1,000	ConocoPhillips		50,050
	3,700	Continental Resources, Inc.(b)		142,857
	6,100	Devon Energy Corp.(a)		223,931
	28,512	Dorchester Minerals LP(a)		429,106
	4,890	Enduro Royalty Trust		21,271
	4,500	EOG Resources, Inc.(a)		435,330
	3,700	Hess Corp.		173,493
	4,000	Kimbell Royalty Partners L.P		63,120
	500	Magellan Midstream Partners LP		35,530
	3,800	MPLX LP		133,038
	7,500	Newfield Exploration Co.(b)		222,525
	10,700	Noble Energy, Inc.		303,452
	1,300	Occidental Petroleum Corp.		83,473
	1,700	Parsley Energy, Inc., Class A(b)		44,778
	21,600	Permian Basin Royalty Trust		188,136
	2,200	Pioneer Natural Resources Co.		324,588
	4,500	QEP Resources, Inc.(b)		38,565
	8,800	Range Resources Corp.		172,216
	3,000	Royal Dutch Shell PLC, Class B		187,620
	1,300	RSP Permian, Inc.(b)		44,967
	1,465	Sabine Royalty Trust(a)		60,212
	3,400	San Juan Basin Royalty Trust		26,656
	3,835	Shell Midstream Partners LP		106,766
	15,000	USA Compression Partners L.P		250,800
	7,900	Vermilion Energy, Inc.		281,082
	2,783	Western Gas Equity Partners LP		114,604

Shares			Fair Value
	COMMON STOCKS — (continued)
		Energy — (continued)
	9,000	Whiting Petroleum Corp.(b)	$	49,140
				5,932,802
		Health Care Equipment & Services — 10.5%
	281	ABIOMED, Inc.(b)		47,377
	2,544	AmerisourceBergen Corp.		210,516
	3,707	Anthem, Inc.(a)		703,885
	3,977	Express Scripts Holding Co.(a)(b)		251,824
	2,628	HealthEquity, Inc.(a)(b)		132,924
	2,698	Humana, Inc.		657,314
	6,342	K2M Group Holdings, Inc.(a)(b)		134,514
	4,334	LHC Group, Inc.(a)(b)		307,367
	3,916	Molina Healthcare, Inc.(b)		269,264
	2,282	NuVasive, Inc.(a)(b)		126,560
	1,914	Patterson Cos., Inc.		73,976
	27,046	Quorum Health Corp.(b)		140,098
	20,330	Surgery Partners, Inc.(b)		210,415
	9,830	Tenet Healthcare Corp.(b)		161,507
	2,000	Wright Medical Group NV(a)(b)		51,740
				3,479,281
		Insurance — 2.6%
	35,100	Ambac Financial Group, Inc.(a)(b)		605,826
	16,290	Kingstone Cos., Inc.		265,527
				871,353
		Materials — 0.1%
	1,371	Mesabi Trust		31,533
		Media — 1.0%
	97,660	Global Eagle Entertainment, Inc.(a)(b)		333,997
		Pharmaceuticals, Biotechnology & Life Sciences — 13.4%
	2,000	AbbVie, Inc.(a)		177,720
	2,241	Aerie Pharmaceuticals, Inc.(b)		108,913
	8,105	Alder Biopharmaceuticals, Inc.(b)		99,286
	1,658	Alexion Pharmaceuticals, Inc.(b)		232,601
	700	Allergan PLC		143,465
	24,000	Amarin Corp. PLC, ADR(a)(b)		84,000
	10,118	Amicus Therapeutics, Inc.(b)		152,579
	414	Ascendis Pharma A/S, ADR(b)		15,007
	2,000	Audentes Therapeutics, Inc.(b)		56,020
	12,423	Axovant Sciences, Ltd.(b)		85,470
	383	Bio-Rad Laboratories, Inc., Class A(b)		85,110
	1,835	Bluebird Bio, Inc.(b)		252,037
	4,000	Bristol-Myers Squibb Co.(a)		254,960
	8,100	Collegium Pharmaceutical, Inc.(a)(b)		84,969
	1,968	DBV Technologies SA, ADR(b)		83,522
	4,346	Deciphera Pharmaceuticals, Inc.(b)		82,531
	2,500	GW Pharmaceuticals PLC, ADR(b)		253,725
	957	ICON Plc(b)		108,983
	6,416	Ignyta, Inc.(b)		79,238
	52,135	Minerva Neurosciences, Inc.(a)(b)		396,226
	2,715	Paratek Pharmaceuticals, Inc.(b)		68,147
	6,000	Pfizer, Inc.(a)		214,200
	1,151	Puma Biotechnology, Inc.(b)		137,832
	4,600	Radius Health, Inc.(b)		177,330
	1,654	Sage Therapeutics, Inc.(b)		103,044
	2,000	Shire PLC, ADR(a)		306,280
	2,158	Spark Therapeutics, Inc.(b)		192,407
	325	TESARO, Inc.(a)(b)		41,957

Continued

70

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — (continued)
		Pharmaceuticals, Biotechnology & Life Sciences — (continued)
	6,000	Teva Pharmaceutical Industries, Ltd., ADR	$	105,600
	8,362	Zogenix, Inc.(b)		293,088
				4,476,247
		Real Estate — 1.0%
	26,700	Colony NorthStar, Inc., Class A, REIT(a)		335,352
		Software & Services — 8.9%
	47,048	Autobytel, Inc.(a)(b)		324,161
	96,104	Bazaarvoice, Inc.(a)(b)		475,715
	59,709	Brightcove, Inc.(b)		429,905
	75,000	iPass, Inc.(b)		49,500
	21,300	LivePerson, Inc.(b)		288,615
	49,361	Rosetta Stone, Inc.(b)		503,976
	42,088	Silver Spring Networks, Inc.(a)(b)		680,563
	42,883	YuMe, Inc.		198,548
				2,950,983
		Technology Hardware & Equipment — 10.3%
	117,975	Aerohive Networks, Inc.(a)(b)		482,518
	315,784	ID Systems, Inc.(a)(b)		2,371,538
	18,080	Identiv, Inc.(b)		83,891
	50,141	Iteris, Inc.(b)		333,438
	3,500	NETGEAR, Inc.(b)		166,600
				3,437,985
		Telecommunication Services — 6.4%
	96,249	magicJack VocalTec, Ltd.(a)(b)		688,180
	68,606	Ooma, Inc.(a)(b)		723,793
	90,000	Vonage Holdings Corp.(a)(b)		732,600
				2,144,573
		Total Common Stocks (Cost $26,023,981)		28,789,423
	PREFERRED STOCKS —1.6%
		Banks — 1.6%
	78,782	Fannie Mae, Series R, 8.250%(b)		519,961
		Total Preferred Stocks (Cost $528,122)		519,961

Shares			Fair Value
	WARRANTS — 2.9%
		Banks — 1.7%
	4,900	SunTrust Banks, Inc., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $44.15)	$	77,567
	1,125	Wells Fargo & Co., (Issued/exercisable 10/28/08, 1 Share for 1 Warrant, Expires 10/28/18, Strike Price $33.84)		24,255
	30,000	Zions Bancorporation, (Issued/exercisable 05/20/10, 1 Share for 1 Warrant, Expires 05/22/20, Strike Price $35.76)(a)		456,300
				558,122
		Diversified Financials — 0.8%
	6,200	Capital One Financial Corp., (Issued/exercisable 11/14/08, 1 Share for 1 Warrant, Expires 11/14/18, Strike Price $42.02)(a)		264,306
		Insurance — 0.4%
	7,500	American International Group, Inc., (Issued/exercisable 01/19/11, 1 Share for 1 Warrant, Expires 01/19/21, Strike Price $44.55)		150,000
		Total Warrants (Cost $515,232)		972,428
	Total Long-Term Investments — 90.9% (Cost $27,067,335)			30,281,812
	MONEY MARKET FUND — 10.4%
	3,480,635	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(c)		3,480,635
		Total Money Market Fund (Cost $3,480,635)		3,480,635
	Options Purchased — 0.1% (Cost $49,339)			41,670
	Total Investments Before Investments Sold Short — 101.4% (Cost $30,597,309)			33,804,117

Continued

71

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	INVESTMENTS SOLD SHORT — (25.3)%
		Banks — (3.3)%
	(1,200)	Commerce Bancshares, Inc.	$	(69,324	)
	(1,200)	Community Bank System, Inc.		(66,300	)
	(3,400)	CVB Financial Corp.		(82,178	)
	(700)	First Republic Bank/CA		(73,122	)
	(3,800)	Fulton Financial Corp.		(71,250	)
	(500)	LendingTree, Inc.(b)		(122,225	)
	(1,700)	NBT Bancorp, Inc., Class B		(62,424	)
	(6,600)	Old National Bancorp		(120,780	)
	(4,000)	Oritani Financial Corp.		(67,200	)
	(2,300)	People’s United Financial, Inc.		(41,722	)
	(2,400)	Provident Financial Services, Inc.		(64,008	)
	(8,400)	TrustCo Bank Corp. NY		(74,760	)
	(2,200)	Washington Federal, Inc.		(74,030	)
	(2,400)	Webster Financial Corp.		(126,120	)
				(1,115,443	)
		Consumer Durables & Apparel — (0.3)%
	(2,000)	Garmin, Ltd.		(107,940	)
		Diversified Financials — (1.1)%
	(1,300)	Financial Engines, Inc.		(45,175	)
	(2,000)	Franklin Resources, Inc.		(89,020	)
	(19,800)	LendingClub Corp.(b)		(120,582	)
	(1,500)	Morningstar, Inc.		(127,485	)
				(382,262	)
		Energy — (1.7)%
	(4,000)	Exxon Mobil Corp.		(327,920	)
	(25,000)	Hugoton Royalty Trust		(46,250	)
	(9,000)	Unit Corp.		(185,220	)
				(559,390	)
		Exchange Traded Funds — (8.3)%
	(7,200)	Direxion Daily Financial Bear 3X Shares(b)		(104,976	)
	(1,397)	Direxion Daily Financial Bull 3X Shares(b)		(78,190	)
	(2,500)	Energy Select Sector SPDR Fund		(171,200	)
	(7,467)	Health Care Select Sector SPDR Fund		(610,278	)
	(6,239)	iShares Russell 2000 ETF		(924,495	)
	(1,250)	ProShares Ultra S&P500		(120,925	)
	(5,000)	SPDR S&P Oil & Gas Exploration & Production ETF		(170,450	)
	(7,692)	Standard and Poors S&P Regional Banking ETF		(436,598	)
	(5,000)	VanEck Vectors Oil Services ETF		(130,350	)
	(2,300)	VelocityShares Daily 2x VIX Short Term ETN(b)		(26,059	)
				(2,773,521	)
		Food & Staples Retailing — (0.3)%
	(1,061)	CVS Health Corp.		(86,281	)
		Health Care Equipment & Services — (2.8)%
	(1,500)	Abaxis, Inc.		(66,975	)
	(3,000)	Allscripts Healthcare Solutions, Inc.(b)		(42,690	)
	(358)	Edwards Lifesciences Corp.(b)		(39,133	)
	(4,025)	Globus Medical, Inc., Class A(b)		(119,623	)
	(1,247)	Nevro Corp.		(113,327	)
	(5,500)	Quality Systems, Inc.		(86,515	)
	(2,008)	Stryker Corp.		(285,176	)
	(321)	UnitedHealth Group, Inc.		(62,868	)
	(900)	Universal Health Services, Inc., Class B		(99,846	)
				(916,153	)

Shares			Fair Value
	INVESTMENTS SOLD SHORT — (continued)
		Pharmaceuticals, Biotechnology & Life Sciences — (1.7)%
	(1,245)	Akcea Therapeutics, Inc.(b)	$	(34,449	)
	(5,718)	AstraZeneca PLC, ADR		(193,726	)
	(1,468)	INC Research Holdings, Inc., Class A		(76,776	)
	(300)	Incyte Corp.(b)		(35,022	)
	(550)	Loxo Oncology, Inc.(b)		(50,666	)
	(1,090)	Myriad Genetics, Inc.		(39,436	)
	(800)	Perrigo Co., PLC		(67,720	)
	(1,297)	Sarepta Therapeutics, Inc.(b)		(58,832	)
				(556,627	)
		Real Estate — (0.3)%
	(2,900)	Iron Mountain, Inc., REIT		(112,810	)
		Retailing — (0.7)%
	(8,000)	GameStop Corp., Class A		(165,280	)
	(1,000)	Wayfair, Inc.(b)		(67,400	)
				(232,680	)
		Software & Services — (3.8)%
	(1,000)	Autodesk, Inc.(b)		(112,260	)
	(2,500)	Cimpress NV(b)		(244,150	)
	(3,300)	International Business Machines Corp.		(478,764	)
	(18,000)	MoneyGram International, Inc.(b)		(289,980	)
	(2,401)	Nuance Communications, Inc.(b)		(37,744	)
	(4,500)	Western Union Co. (The)		(86,400	)
				(1,249,298	)
		Technology Hardware & Equipment — (0.7)%
	(2,000)	ARRIS International PLC(b)		(56,980	)
	(10,000)	Radware, Ltd.(b)		(168,600	)
				(225,580	)
		Telecommunication Services — (0.3)%
	(10,000)	ORBCOMM, Inc.(b)		(104,700	)
	Total Investments Sold Short — (25.3)% (Cost $(8,776,850))			(8,422,685	)
	Total Investments — 76.1% (Cost $21,820,459)			25,381,432
	Net Other Assets (Liabilities) — 23.9%			7,950,520
	NET ASSETS — 100.0%		$	33,331,952

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

(b) Represents non-income producing security.

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

ADR — American Depositary Receipt

ETF — Exchange Traded Funds

ETN — Exchange Traded Notes

REIT — Real Estate Investment Trust

See accompanying Notes to the Financial Statements.

72

Sterling Capital Long/Short Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

As of September 30, 2017, exchange traded options purchased outstanding were as follows:

Description	Call/Put		Number of Contracts		Notional Amount		Exercise Price		Expiration Date		Value
EXCHANGE TRADED OPTIONS PURCHASED — 0.1%
Tenet Healthcare Corp.		Call		96	$	157,728		$22		11/17/17	$	1,920
Twilio Inc.		Call		250		738,000		60		01/18/19		21,000
Twilio Inc.		Call		30		88,560		30		01/18/19		18,750
Total Exchange Traded Options Purchased											$	41,670

See accompanying Notes to the Financial Statements.

73

Sterling Capital Behavioral International Equity Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 97.4%
		Australia — 5.9%
	75,875	Bank of Queensland, Ltd.	$	772,522
	71,350	Bendigo & Adelaide Bank, Ltd.		649,776
	6,150	Commonwealth Bank of Australia		363,010
	12,225	LendLease Group		171,840
	9,200	Macquarie Group, Ltd.		656,122
	181,625	Qantas Airways, Ltd.		830,580
	11,975	Rio Tinto, Ltd.		624,929
	223,900	Stockland, REIT		755,197
				4,823,976
		Austria — 1.1%
	15,075	OMV AG		878,202
		Belgium — 0.7%
	7,050	KBC Group NV		597,429
		Denmark — 2.4%
	25,750	Novo Nordisk A/S, Class B		1,231,011
	131,325	TDC A/S		769,439
				2,000,450
		Finland — 0.8%
	15,850	Neste Oyj		692,185
		France — 13.2%
	7,425	Arkema SA		910,464
	2,475	Atos SE		383,931
	33,275	AXA SA		1,006,391
	16,500	BNP Paribas SA		1,330,960
	26,675	CNP Assurances		625,181
	50,175	Credit Agricole SA		912,057
	2,225	Engie SA		37,789
	3,375	ICADE, REIT		301,042
	107,900	Natixis SA		863,353
	35,625	Peugeot SA		848,415
	1,825	Publicis Groupe SA		127,456
	8,575	Renault SA		842,298
	13,875	Sanofi		1,377,661
	19,300	Societe Generale SA		1,129,920
	2,275	Valeo SA		168,803
				10,865,721
		Germany — 7.7%
	6,000	Allianz SE		1,347,004
	10,175	Bayer AG		1,386,571
	10,725	Covestro AG(b)		922,165
	38,125	Deutsche Lufthansa AG		1,059,353
	44,000	Deutsche Telekom AG		820,872
	6,675	Henkel AG & Co. KGaA		812,187
				6,348,152
		Hong Kong — 3.4%
	100,600	CK Asset Holdings, Ltd.		832,581
	89,096	I-CABLE Communications, Ltd.(a)		2,908
	14,150	Melco Resorts & Entertainment Ltd., ADR		341,298
	393,925	NWS Holdings, Ltd.		767,517
	843,125	WH Group, Ltd.(b)		895,839
				2,840,143
		Italy — 4.5%
	179,425	Enel SPA		1,080,452
	70,050	Fiat Chrysler Automobiles NV(a)		1,255,121
	3,390	GEDI Gruppo Editoriale SpA(a)		3,005

Shares			Fair Value
	COMMON STOCKS — (continued)
		Italy — (continued)
	798,875	Telecom Italia SpA/Milano(a)	$	748,267
	273,100	UnipolSai Assicurazioni SPA		637,804
				3,724,649
		Japan — 22.0%
	21,700	Asahi Group Holdings, Ltd.		878,607
	33,900	Brother Industries, Ltd.		788,715
	142,000	Hitachi, Ltd.		1,000,594
	56,300	ITOCHU Corp.		922,114
	164,500	JXTG Holdings, Inc.		846,292
	93,000	Kajima Corp.		924,008
	36,900	Kirin Holdings Co., Ltd.		868,351
	20,200	MINEBEA MITSUMI, Inc.		315,948
	82,200	Mitsubishi Chemical Holdings Corp.		783,101
	37,300	Mitsubishi Corp.		866,991
	33,600	Mitsubishi Gas Chemical Co., Inc.		787,409
	14,700	Mixi, Inc.		709,362
	33,800	Nexon Co., Ltd.(a)		881,909
	19,100	Nippon Telegraph & Telephone Corp.		875,349
	59,700	Obayashi Corp.		715,710
	23,500	Shimizu Corp.		260,427
	73,600	Showa Shell Sekiyu KK		847,030
	5,100	Sony Corp.		189,723
	59,400	Sumitomo Corp.		854,378
	29,100	Sumitomo Rubber Industries, Ltd.		533,252
	11,900	Suzuki Motor Corp.		624,162
	15,200	Taisei Corp.		796,978
	3,900	Teijin, Ltd.		76,874
	1,600	Tokyo Electron, Ltd.		245,705
	23,100	Toyota Tsusho Corp.		758,538
	46,900	Yokogawa Electric Corp.		798,582
				18,150,109
		Netherlands — 5.7%
	23,025	ABN AMRO Group NV(b)		689,580
	146,700	Aegon NV		854,435
	4,325	AerCap Holdings NV(a)		221,051
	61,675	ING Groep NV		1,137,135
	23,075	Koninklijke Philips NV		952,618
	20,100	NN Group NV		841,202
				4,696,021
		Norway — 2.0%
	40,875	Marine Harvest ASA		808,313
	78,125	Orkla ASA		801,408
				1,609,721
		Portugal — 1.0%
	214,875	EDP - Energias de Portugal SA		808,861
		Singapore — 1.0%
	761,900	Yangzijiang Shipbuilding Holdings, Ltd.		803,212
		Spain — 6.0%
	120,125	Banco Bilbao Vizcaya Argentaria SA		1,073,473
	183,425	CaixaBank SA		919,184
	83,825	Distribuidora Internacional de Alimentacion SA		488,921
	96,600	International Consolidated Airlines Group SA		769,512
	39,277	Repsol SA		723,711
	86,400	Telefonica SA		938,647
				4,913,448

Continued

74

Sterling Capital Behavioral International Equity Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — (continued)
		Sweden — 1.5%
	70,625	Nordea Bank AB	$	957,286
	9,925	Swedbank AB, Class A		274,418
				1,231,704
		Switzerland — 5.6%
	10,425	Adecco Group AG		811,736
	61,375	Credit Suisse Group AG		971,631
	6,900	Roche Holding AG		1,761,429
	62,150	UBS Group AG		1,062,201
				4,606,997
		United Kingdom — 12.9%
	51,600	Anglo American PLC		926,182
	109,275	Barratt Developments PLC		899,802
	17,050	Berkeley Group Holdings PLC		849,221
	91,825	Capita PLC		695,206
	160,800	GKN PLC		745,532
	28,075	GlaxoSmithKline PLC		559,980
	232,600	Glencore PLC		1,065,957
	101,300	Marks & Spencer Group PLC		479,711
	112,750	Meggitt PLC		787,151
	26,275	Persimmon PLC		909,082
	23,650	Rio Tinto PLC		1,100,626
	81,000	Tate & Lyle PLC		703,881
	301,400	Taylor Wimpey PLC		789,576
	2,675	Unilever PLC		154,814
				10,666,721
		Total Common Stocks (Cost $67,359,942)		80,257,701
	PREFERRED STOCKS — 0.6%
		Germany — 0.6%
	3,875	Henkel AG & Co. KGaA		527,368
		Total Preferred Stocks (Cost $453,622)		527,368
	EXCHANGE TRADED FUND — 1.2%
		United States — 1.2%
	15,000	iShares MSCI EAFE ETF		1,027,200
		Total Exchange Traded Fund (Cost $1,000,476)		1,027,200

Shares			Fair Value
	MONEY MARKET FUND — 0.2%
		United States — 0.2%
	165,652	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(c)	$	165,652
		Total Money Market Fund (Cost $165,652)		165,652
	Total Investments — 99.4% (Cost $68,979,692)			81,977,921
	Net Other Assets (Liabilities) — 0.6%			467,099
	NET ASSETS — 100.0%		$	82,445,020

(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.

ADR — American Depository Receipts

ETF — Exchange Traded Fund

REIT — Real Estate Investment Trust

Industry	Percentage of net assets
Automobiles & Components		6.1	%
Banks		14.2	%
Capital Goods		12.1	%
Commercial & Professional Services		1.8	%
Consumer Durables & Apparel		4.4	%
Consumer Services		0.4	%
Diversified Financials		3.3	%
Energy		4.9	%
Exchange Traded Fund		1.2	%
Food & Staples Retailing		0.6	%
Food, Beverage & Tobacco		6.0	%
Household & Personal Products		1.8	%
Insurance		6.4	%
Materials		8.7	%
Media		0.2	%
Money Market Fund		0.2	%
Pharmaceuticals, Biotechnology & Life Sciences		7.7	%
Real Estate		2.5	%
Retailing		0.6	%
Semiconductors & Semiconductor Equipment		0.3	%
Software & Services		2.4	%
Technology Hardware & Equipment		3.1	%
Telecommunication Services		5.0	%
Transportation		3.2	%
Utilities		2.3	%
		99.4	%

See accompanying Notes to the Financial Statements.

75

Sterling Capital SMID Opportunities Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 89.4%
		Automobiles & Components — 3.2%
	15,900	Gentex Corp.	$	314,820
		Banks — 2.9%
	5,400	Webster Financial Corp.		283,770
		Commercial & Professional Services — 5.3%
	5,000	WageWorks, Inc.(a)		303,500
	3,150	Waste Connections, Inc.		220,374
				523,874
		Consumer Durables & Apparel — 7.0%
	7,500	Newell Brands, Inc.		320,025
	13,800	PulteGroup, Inc.		377,154
				697,179
		Consumer Services — 10.2%
	8,700	Aramark		353,307
	4,071	Norwegian Cruise Line Holdings, Ltd.(a)		220,038
	9,270	ServiceMaster Global Holdings, Inc.(a)		433,187
				1,006,532
		Energy — 1.3%
	4,500	Newfield Exploration Co.(a)		133,515
		Food, Beverage & Tobacco — 3.8%
	3,150	Ingredion, Inc.		380,016
		Health Care Equipment & Services — 15.0%
	3,700	AmerisourceBergen Corp.		306,175
	5,000	Centene Corp.(a)		483,850
	1,531	MEDNAX, Inc.(a)		66,017
	9,053	Premier, Inc., Class A(a)		294,856
	3,000	Universal Health Services, Inc., Class B		332,820
				1,483,718
		Materials — 6.5%
	10,000	Ball Corp.		413,000
	2,400	Scotts Miracle-Gro Co. (The)		233,616
				646,616
		Pharmaceuticals, Biotechnology & Life Sciences — 3.4%
	6,500	INC Research Holdings, Inc., Class A(a)		339,950
		Real Estate — 5.4%
	29,000	Colony NorthStar, Inc., Class A, REIT		364,240

Shares			Fair Value
	COMMON STOCKS — (continued)
		Real Estate — (continued)
	2,579	FirstService Corp.	$	169,724
				533,964
		Retailing — 3.4%
	4,400	CarMax, Inc.(a)		333,564
		Software & Services — 16.6%
	500	Akamai Technologies, Inc.(a)		24,360
	5,000	Amdocs, Ltd.		321,600
	4,870	Blackhawk Network Holdings, Inc.(a)		213,306
	4,100	CDK Global, Inc.		258,669
	2,200	Fiserv, Inc.(a)		283,712
	6,500	Genpact, Ltd.		186,875
	3,700	Global Payments, Inc.		351,611
				1,640,133
		Technology Hardware & Equipment — 2.7%
	2,200	F5 Networks, Inc.(a)		265,232
		Transportation — 2.7%
	2,500	Kansas City Southern		271,700
		Total Common Stocks (Cost $7,762,235)		8,854,583
	MONEY MARKET FUND — 8.8%
	875,366	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		875,366
		Total Money Market Fund (Cost $875,366)		875,366
	Total Investments — 98.2% (Cost $8,637,601)			9,729,949
	Net Other Assets (Liabilities) — 1.8%			181,934
	NET ASSETS — 100.0%		$	9,911,883

(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.

76

Sterling Capital Stratton Mid Cap Value Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 97.0%
		Automobiles & Components — 3.6%
	16,540	Magna International, Inc.	$	882,905
	12,000	Thor Industries, Inc.		1,510,920
				2,393,825
		Banks — 8.4%
	25,100	East West Bancorp, Inc.		1,500,478
	13,300	First Republic Bank/CA		1,389,318
	93,300	Huntington Bancshares, Inc.		1,302,468
	72,100	KeyCorp.		1,356,922
				5,549,186
		Capital Goods — 7.9%
	10,100	Carlisle Cos., Inc.		1,012,929
	35,300	HD Supply Holdings, Inc.(a)		1,273,271
	14,500	Masonite International Corp.(a)		1,003,400
	13,900	United Rentals, Inc.(a)		1,928,486
				5,218,086
		Consumer Durables & Apparel — 4.7%
	7,200	Mohawk Industries, Inc.(a)		1,782,072
	49,700	PulteGroup, Inc.		1,358,301
				3,140,373
		Consumer Services — 1.3%
	7,200	Royal Caribbean Cruises, Ltd.		853,488
		Diversified Financials — 3.7%
	7,200	Affiliated Managers Group, Inc.		1,366,776
	7,200	Ameriprise Financial, Inc.		1,069,272
				2,436,048
		Energy — 7.0%
	37,600	Cabot Oil & Gas Corp.		1,005,800
	90,800	Callon Petroleum Co.(a)		1,020,592
	29,400	Devon Energy Corp.		1,079,274
	16,300	Phillips 66		1,493,243
				4,598,909
		Food & Staples Retailing — 2.0%
	11,900	Casey’s General Stores, Inc.		1,302,455
		Food, Beverage & Tobacco — 3.8%
	10,800	Ingredion, Inc.		1,302,912
	26,000	Lamb Weston Holdings, Inc.		1,219,140
				2,522,052
		Health Care Equipment & Services — 4.2%
	7,800	Becton Dickinson & Co.		1,528,410
	10,400	Zimmer Biomet Holdings, Inc.		1,217,736
				2,746,146
		Household & Personal Products — 1.2%
	10,900	Edgewell Personal Care Co.(a)		793,193
		Insurance — 6.3%
	12,300	American Financial Group, Inc.		1,272,435
	20,000	First American Financial Corp.		999,400
	10,500	Hanover Insurance Group, Inc. (The)		1,017,765
	10,700	Torchmark Corp.		856,963
				4,146,563
		Materials — 8.4%
	18,700	Avery Dennison Corp.		1,838,958
	35,100	Berry Global Group, Inc.(a)		1,988,415

Shares			Fair Value
	COMMON STOCKS — (continued)
		Materials — (continued)
	20,400	Westlake Chemical Corp.	$	1,695,036
				5,522,409
		Pharmaceuticals, Biotechnology & Life Sciences — 7.1%
	17,400	ICON Plc(a)		1,981,512
	16,300	PerkinElmer, Inc.		1,124,211
	8,500	Thermo Fisher Scientific, Inc.		1,608,200
				4,713,923
		Real Estate — 10.4%
	15,600	EastGroup Properties, Inc., REIT		1,374,672
	32,000	Gramercy Property Trust, REIT		968,000
	26,000	Highwoods Properties, Inc., REIT		1,354,340
	30,000	Hudson Pacific Properties, Inc., REIT		1,005,900
	12,300	Mid-America Apartment Communities, Inc., REIT		1,314,624
	14,200	Ryman Hospitality Properties, Inc., REIT		887,358
				6,904,894
		Semiconductors & Semiconductor Equipment — 2.9%
	6,400	NXP Semiconductors NV(a)		723,776
	11,900	Skyworks Solutions, Inc.		1,212,610
				1,936,386
		Software & Services — 5.9%
	27,000	Activision Blizzard, Inc.		1,741,770
	10,200	Fiserv, Inc.(a)		1,315,392
	15,200	PTC, Inc.(a)		855,456
				3,912,618
		Technology Hardware & Equipment — 5.1%
	10,500	Arrow Electronics, Inc.(a)		844,305
	24,000	CDW Corp.		1,584,000
	28,400	CommScope Holding Co., Inc.(a)		943,164
				3,371,469
		Utilities — 3.1%
	26,600	Southwest Gas Holdings, Inc.		2,064,692
		Total Common Stocks (Cost $39,647,728)		64,126,715
	MONEY MARKET FUND — 3.0%
	2,006,251	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		2,006,251
		Total Money Market Fund (Cost $2,006,251)		2,006,251
	Total Investments — 100.0% (Cost $41,653,979)			66,132,966
	Net Other Assets (Liabilities) — 0.0%			5,832
	NET ASSETS — 100.0%		$	66,138,798

(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.

77

Sterling Capital Stratton Real Estate Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 98.2%
		Diversified — 5.9%
	37,000	American Assets Trust, Inc.	$	1,471,490
	66,000	Gramercy Property Trust		1,996,500
	55,000	Liberty Property Trust		2,258,300
				5,726,290
		Health Care — 9.4%
	62,500	Healthcare Trust of America, Inc., Class A		1,862,500
	150,000	Medical Properties Trust, Inc.		1,969,500
	53,000	Ventas, Inc.		3,451,890
	26,000	Welltower, Inc.		1,827,280
				9,111,170
		Hotel & Resort — 6.0%
	50,000	Chesapeake Lodging Trust		1,348,500
	19,000	Marriott International, Inc/MD, Class A		2,094,940
	37,000	Ryman Hospitality Properties, Inc.		2,312,130
				5,755,570
		Industrial — 5.1%
	29,000	EastGroup Properties, Inc.		2,555,480
	80,000	First Industrial Realty Trust, Inc.		2,407,200
				4,962,680
		Office — 11.0%
	20,000	Alexandria Real Estate Equities, Inc.		2,379,400
	50,000	Corporate Office Properties Trust		1,641,500
	37,000	Highwoods Properties, Inc.		1,927,330
	74,000	Hudson Pacific Properties, Inc.		2,481,220
	22,000	SL Green Realty Corp.		2,229,040
				10,658,490
		Residential — 17.7%
	42,000	American Campus Communities, Inc.		1,854,300
	75,000	American Homes 4 Rent, Class A		1,628,250
	52,000	Apartment Investment & Management Co., Class A		2,280,720
	26,000	Equity LifeStyle Properties, Inc.		2,212,080
	14,000	Essex Property Trust, Inc.		3,556,420
	25,000	Mid-America Apartment Communities, Inc.		2,672,000
	75,000	UDR, Inc.		2,852,250
				17,056,020

Shares			Fair Value
	COMMON STOCKS — (continued)
		Retail — 16.6%
	67,500	Acadia Realty Trust	$	1,931,850
	16,000	Federal Realty Investment Trust		1,987,360
	116,000	GGP, Inc.		2,409,320
	50,000	National Retail Properties, Inc.		2,083,000
	70,000	Retail Opportunity Investments Corp.		1,330,700
	38,757	Simon Property Group, Inc.		6,240,265
				15,982,495
		Specialized — 26.5%
	40,000	Crown Castle International Corp.		3,999,200
	90,000	CubeSmart		2,336,400
	35,000	CyrusOne, Inc.		2,062,550
	30,000	Digital Realty Trust, Inc.		3,549,900
	26,000	EPR Properties		1,813,240
	10,000	Equinix, Inc.		4,463,000
	21,000	Life Storage, Inc.		1,718,010
	21,000	SBA Communications Corp.(a)		3,025,050
	76,000	Uniti Group, Inc.		1,114,160
	45,000	Weyerhaeuser Co.		1,531,350
				25,612,860
		Total Common Stocks (Cost $63,638,049)		94,865,575
	MONEY MARKET FUND — 1.4%
	1,326,015	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		1,326,015
		Total Money Market Fund (Cost $1,326,015)		1,326,015
	Total Investments — 99.6% (Cost $64,964,064)			96,191,590
	Net Other Assets (Liabilities) — 0.4%			373,999
	NET ASSETS — 100.0%		$	96,565,589

(a) Represents non-income producing security.

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

See accompanying Notes to the Financial Statements.

78

Sterling Capital Stratton Small Cap Value Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	COMMON STOCKS — 98.9%
		Automobiles & Components — 4.1%
	420,200	Cooper Tire & Rubber Co.	$	15,715,480
	260,600	Thor Industries, Inc.		32,812,146
				48,527,626
		Banks — 22.8%
	446,040	Chemical Financial Corp.		23,310,050
	420,350	Community Bank System, Inc.		23,224,337
	804,150	First Midwest Bancorp, Inc.		18,833,193
	495,530	Glacier Bancorp, Inc.		18,711,213
	245,350	IBERIABANK Corp.		20,155,503
	467,950	MB Financial, Inc.		21,067,109
	887,921	Northwest Bancshares, Inc.		15,334,396
	167,200	Signature Bank(a)		21,408,288
	125,400	SVB Financial Group(a)		23,461,086
	788,591	Umpqua Holdings Corp.		15,385,410
	376,950	United Bankshares, Inc.		14,003,693
	513,700	Webster Financial Corp.		26,994,935
	357,000	Wintrust Financial Corp.		27,956,670
				269,845,883
		Capital Goods — 14.5%
	314,900	Crane Co.		25,188,851
	391,850	EnerSys		27,104,265
	710,850	MasTec, Inc.(a)		32,983,440
	348,425	Moog, Inc., Class A(a)		29,069,098
	340,900	Oshkosh Corp.		28,137,886
	213,041	United Rentals, Inc.(a)		29,557,308
				172,040,848
		Diversified Financials — 1.8%
	115,700	Affiliated Managers Group, Inc.		21,963,331
		Energy — 2.3%
	400,700	Cabot Oil & Gas Corp.		10,718,725
	1,448,000	Callon Petroleum Co.(a)		16,275,520
				26,994,245
		Food & Staples Retailing — 2.6%
	277,800	Casey’s General Stores, Inc.		30,405,210
		Health Care Equipment & Services — 2.7%
	327,300	West Pharmaceutical Services, Inc.		31,505,898
		Insurance — 3.4%
	189,400	Hanover Insurance Group, Inc. (The)		18,358,542
	418,250	Selective Insurance Group, Inc.		22,522,763
				40,881,305
		Materials — 3.7%
	735,000	PolyOne Corp.		29,422,050
	193,200	U.S. Concrete, Inc.(a)		14,741,160
				44,163,210
		Pharmaceuticals, Biotechnology & Life Sciences — 2.9%
	392,750	PAREXEL International Corp.(a)		34,593,420
		Real Estate — 9.4%
	414,900	American Campus Communities, Inc., REIT		18,317,835

Shares			Fair Value
	COMMON STOCKS — (continued)
		Real Estate — (continued)
	615,000	First Industrial Realty Trust, Inc., REIT	$	18,505,350
	406,564	Highwoods Properties, Inc., REIT		21,177,919
	947,000	Medical Properties Trust, Inc., REIT		12,434,110
	377,600	Ryman Hospitality Properties, Inc., REIT		23,596,224
	173,300	SL Green Realty Corp., REIT		17,558,756
				111,590,194
		Semiconductors & Semiconductor Equipment — 4.5%
	1,614,850	ON Semiconductor Corp.(a)		29,826,279
	330,150	Qorvo, Inc.(a)		23,335,002
				53,161,281
		Software & Services — 8.1%
	206,800	CACI International, Inc., Class A(a)		28,817,580
	443,950	PTC, Inc.(a)		24,985,506
	408,510	Take-Two Interactive Software, Inc.(a)		41,761,977
				95,565,063
		Technology Hardware & Equipment — 6.2%
	261,700	Anixter International, Inc.(a)		22,244,500
	428,400	Belden, Inc.		34,499,052
	500,000	NetScout Systems, Inc.(a)		16,175,000
				72,918,552
		Transportation — 1.9%
	1,198,800	JetBlue Airways Corp.(a)		22,213,764
		Utilities — 8.0%
	489,586	Avista Corp.		25,345,867
	419,631	El Paso Electric Co.		23,184,613
	504,750	Portland General Electric Co.		23,036,790
	296,960	Southwest Gas Holdings, Inc.		23,050,035
				94,617,305
		Total Common Stocks (Cost $493,502,237)		1,170,987,135
	MONEY MARKET FUND — 1.1%
	13,486,209	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(b)		13,486,209
		Total Money Market Fund (Cost $13,486,209)		13,486,209
	Total Investments — 100.0% (Cost $506,988,446)			1,184,473,344
	Net Other Assets (Liabilities) — 0.0%			137,393
	NET ASSETS — 100.0%		$	1,184,610,737

(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.

79

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments

September 30, 2017

Principal     Amount			Fair Value
	ASSET BACKED SECURITIES — 21.3%
	$400,000	Ally Auto Receivables Trust, Series 2016-3, Class B, 1.970%, 7/15/21	$	398,877
	236,926	AmeriCredit Automobile Receivables Trust, Series 2013-5, Class C, 2.290%, 11/8/19		237,146
	344,000	AmeriCredit Automobile Receivables Trust, Series 2015-3, Class C, 2.730%, 3/8/21		347,387
	400,000	AmeriCredit Automobile Receivables Trust, Series 2016-4, Class B, 1.830%, 12/8/21		397,114
	500,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2012-3A, Class A, 2.100%, 3/20/19(a)		500,496
	450,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-1A, Class A, 2.460%, 7/20/20(a)		451,442
	354,783	Capital Auto Receivables Asset Trust, Series 2014-2, Class C, 2.410%, 5/20/19		355,130
	500,000	Capital Auto Receivables Asset Trust, Series 2015-4, Class B, 2.390%, 11/20/20		503,156
	280,000	CarMax Auto Owner Trust, Series 2013-3, Class C, 2.150%, 5/15/19		280,056
	200,000	CarMax Auto Owner Trust, Series 2014-2, Class B, 1.880%, 11/15/19		200,160
	500,000	CarMax Auto Owner Trust, Series 2014-2, Class C, 2.080%, 1/15/20		501,563
	139,213	Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 5.254%, 6/25/37		142,680
	237,832	Countrywide Asset-Backed Certificates, Series 2004-12, Class MV4, 2.662%, (LIBOR USD 1-Month plus 1.43%), 3/25/35(b)		238,951
	490,639	Countrywide Asset-Backed Certificates, Series 2006-3, Class 2A3, 1.527%, (LIBOR USD 1-Month plus 0.29%), 6/25/36(b)		485,457
	17,364	Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(a)		17,359
	101,787	Enterprise Fleet Financing, LLC, Series 2015-2, Class A2, 1.590%, 2/22/21(a)		101,756
	299,800	Enterprise Fleet Financing, LLC, Series 2016-1, Class A2, 1.830%, 9/20/21(a)		300,032
	7,088	First Franklin Mortgage Loan Trust, Series 2006-FF1, Class 2A3, 1.477%, (LIBOR USD 1-Month plus 0.24%), 1/25/36(b)		7,087
	248,094	JP Morgan Mortgage Acquisition Corp., Series 2005-OPT2, Class M1, 1.667%, (LIBOR USD 1-Month plus 0.43%), 12/25/35(b)		248,061
	336,470	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 1.437%, (LIBOR USD 1-Month plus 0.2%), 1/25/36(b)		335,170
	75,449	New Century Home Equity Loan Trust, Series 2005-4, Class M1, 1.717%, (LIBOR USD 1-Month plus 0.48%), 9/25/35(b)		75,476
	223,365	RASC Series 2006-KS5 Trust, Series 2006-KS5, Class A3, 1.397%, (LIBOR USD 1-Month plus 0.16%), 7/25/36(b)		222,957
	313,033	Santander Drive Auto Receivables Trust, Series 2014-5, Class C, 2.460%, 6/15/20		314,246
	500,000	Santander Drive Auto Receivables Trust, Series 2016-2, Class B, 2.080%, 2/16/21		501,365
	200,000	Santander Drive Auto Receivables Trust, Series 2015-2, Class C, 2.440%, 4/15/21		200,975
	269,834	Saxon Asset Securities Trust, Series 2006-2, Class A3C, 1.387%, (LIBOR USD 1-Month plus 0.15%), 9/25/36(b)		268,373

Principal     Amount			Fair Value
	ASSET BACKED SECURITIES — (continued)
	$242,382	Sofi Professional Loan Program, LLC, Series 2016-E, Class A1, 2.087%, (LIBOR USD 1-Month plus 0.85%), 7/25/39(a)(b)	$	244,418
	218,712	Structured Asset Investment Loan Trust, Series 2006-1, Class A3, 1.437%, (LIBOR USD 1-Month plus 0.2%), 1/25/36(b)		218,531
	125,000	World Omni Auto Receivables Trust, Series 2015-B, Class B, 2.150%, 8/15/22		124,958
		Total Asset Backed Securities (Cost $8,196,110)		8,220,379
	COMMERCIAL MORTGAGE-BACKED SECURITIES — 3.2%
	23,538	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/11/42(c)		23,529
	43,410	Credit Suisse Commercial Mortgage Trust, Series 2008-C1, Class A3, 6.514%, 2/15/41(c)		43,377
	323,057	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.303%, 9/15/45(c)		323,552
	450,000	Merrill Lynch Mortgage Trust, Series 2008-C1, Class AM, 6.665%, 2/12/51(c)		451,222
	360,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class AM, 6.498%, 1/11/43(c)		362,278
	42,095	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class A3, 3.998%, 3/15/44(a)		42,746
		Total Commercial Mortgage-Backed Securities (Cost $1,332,894)		1,246,704
	CORPORATE BONDS — 72.2%
		Automobiles & Components — 5.4%
	300,000	American Honda Finance Corp., 1.600%, 2/16/18(a)		300,037
	500,000	Daimler Finance North America, LLC, 2.375%, 8/1/18(a)		502,733
	400,000	Ford Motor Credit Co., LLC, 1.897%, 8/12/19		398,046
	250,000	General Motors Financial Co., Inc., 2.400%, 4/10/18		250,796
	400,000	Hyundai Capital America, 2.000%, 3/19/18(a)		400,146
	250,000	Nissan Motor Acceptance Corp., 1.800%, 3/15/18(a)		250,396
				2,102,154
		Banks — 21.3%
	250,000	ABN AMRO Bank NV, 2.500%, 10/30/18(a)		251,779
	300,000	Associated Banc-Corp., 2.750%, 11/15/19		303,973
	400,000	Bank of America Corp., 2.000%, 1/11/18		400,442
	225,000	Bank of Nova Scotia (The), 1.375%, 12/18/17		224,975
	250,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 1.700%, 3/5/18(a)		250,054
	300,000	Barclays Bank PLC, GMTN, 1.862%, (LIBOR USD 3-Month plus 0.55%), 8/7/19(b)		300,518
	300,000	Barclays PLC, 2.000%, 3/16/18		300,213
	250,000	BPCE SA, MTN, 2.250%, 1/27/20		250,620
	300,000	Capital One NA, BKNT, 1.650%, 2/5/18		299,890
	500,000	Citigroup, Inc., 2.007%, (LIBOR USD 3-Month plus 0.69%), 4/27/18(b)		501,270
	300,000	Citizens Bank NA / Providence RI, MTN, 1.600%, 12/4/17		299,942

Continued

80

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal     Amount			Fair Value
	CORPORATE BONDS — (continued)
		Banks — (continued)
	$300,000	Commonwealth Bank of Australia, 1.710%, (LIBOR USD 3-Month plus 0.4%), 3/12/18(a)(b)	$	300,439
	350,000	Fifth Third Bancorp, 2.300%, 3/1/19		352,022
	420,000	Goldman Sachs Group, Inc. (The), 5.950%, 1/18/18		425,325
	300,000	HSBC USA, Inc., 2.350%, 3/5/20		301,918
	365,000	Huntington National Bank (The), BKNT, 2.200%, 11/6/18		366,160
	250,000	ING Bank NV, 2.050%, 8/17/18(a)		250,513
	250,000	KeyBank NA, BKNT, 1.650%, 2/1/18		250,081
	169,000	Macquarie Bank, Ltd., 2.600%, 6/24/19(a)		170,319
	250,000	Nordea Bank AB, 1.625%, 5/15/18(a)		250,059
	366,000	PNC Bank NA, MTN, 1.600%, 6/1/18		366,221
	261,000	Regions Bank/Birmingham AL, BKNT, 2.250%, 9/14/18		262,104
	200,000	Santander UK PLC, GMTN, 2.167%, (LIBOR USD 3-Month plus 0.85%), 8/24/18(b)		201,127
	225,000	Sumitomo Mitsui Banking Corp., 1.750%, 1/16/18		225,163
	300,000	SunTrust Banks, Inc., 2.350%, 11/1/18		301,541
	300,000	Svenska Handelsbanken AB, 1.677%, (LIBOR USD 3-Month plus 0.36%), 9/8/20(b)		300,543
	250,000	Swedbank AB, 1.600%, 3/2/18(a)		250,060
	250,000	Westpac Banking Corp., 1.950%, 11/23/18		250,357
				8,207,628
		Capital Goods — 1.6%
	325,000	General Electric Co., GMTN, 1.600%, 11/20/17		325,168
	300,000	Roper Technologies, Inc., 1.850%, 11/15/17		300,029
				625,197
		Commercial & Professional Services — 0.7%
	275,000	Republic Services, Inc., 3.800%, 5/15/18		278,455
		Consumer Durables & Apparel — 0.7%
	260,000	DR Horton, Inc., 3.750%, 3/1/19		264,878
		Consumer Services — 1.3%
	185,000	Carnival Corp., 1.875%, 12/15/17		185,126
	300,000	ERAC USA Finance, LLC, 6.375%, 10/15/17(a)		300,462
				485,588
		Diversified Financials — 7.4%
	250,000	AIG Global Funding, 1.650%, 12/15/17(a)		250,127
	225,000	Ally Financial, Inc., 3.600%, 5/21/18		226,733
	325,000	American Express Co., 1.905%, (LIBOR USD 3-Month plus 0.59%), 5/22/18(b)		325,879
	325,000	Berkshire Hathaway, Inc., 1.462%, (LIBOR USD 3-Month plus 0.15%), 8/6/18(b)		325,400
	250,000	Credit Agricole SA/London, 2.500%, 4/15/19(a)		252,341
	250,000	Credit Suisse Group Funding Guernsey, Ltd., 2.750%, 3/26/20		252,602
	200,000	Export-Import Bank of Korea, 2.375%, 8/12/19		200,339
	250,000	International Lease Finance Corp., 3.875%, 4/15/18		252,772
	500,000	Morgan Stanley, 2.083%, (LIBOR USD 3-Month plus 0.74%), 1/5/18(b)		500,744

 Principal   
 Amount         Fair Value   

CORPORATE BONDS — (continued)
	Diversified Financials — (continued)
$250,000	UBS AG/Stamford CT, GMTN, 2.375%, 8/14/19	$	252,114
			2,839,051
	Energy — 8.0%
250,000	BP Capital Markets PLC, 1.375%, 11/6/17		249,965
250,000	Buckeye Partners LP, 2.650%, 11/15/18		251,033
300,000	CNOOC Finance, Ltd., 1.750%, 5/9/18		299,550
350,000	Columbia Pipeline Group, Inc., 2.450%, 6/1/18		351,204
300,000	Energy Transfer LP, 2.500%, 6/15/18		301,178
100,000	EnLink Midstream Partners LP, 2.700%, 4/1/19		100,287
300,000	Enterprise Products Operating, LLC, 6.650%, 4/15/18		307,791
333,000	Kinder Morgan, Inc., 2.000%, 12/1/17		333,110
282,000	National Oilwell Varco, Inc., 1.350%, 12/1/17		281,702
200,000	NuStar Logistics LP, 8.150%, 4/15/18		206,000
250,000	Phillips 66, 2.054%, (LIBOR USD 3-Month plus 0.75%), 4/15/20(a)(b)		250,360
150,000	TechnipFMC PLC, 2.000%, 10/1/17(a)		150,000
			3,082,180
	Food, Beverage & Tobacco — 1.3%
250,000	Anheuser-Busch InBev Finance, Inc., 1.250%, 1/17/18		249,852
250,000	Kraft Heinz Foods Co., 2.000%, 7/2/18		250,513
			500,365
	Health Care Equipment & Services — 2.9%
579,000	Aetna, Inc., 1.700%, 6/7/18		579,385
300,000	UnitedHealth Group, Inc., 1.400%, 12/15/17		299,958
250,000	Zimmer Biomet Holdings, Inc., 2.000%, 4/1/18		250,257
			1,129,600
	Insurance — 3.9%
250,000	AXIS Specialty Finance PLC, 2.650%, 4/1/19		250,632
250,000	Metropolitan Life Global Funding I, 1.750%, 9/19/19(a)		249,356
325,000	Nuveen Finance, LLC, 2.950%, 11/1/19(a)		330,407
250,000	Principal Life Global Funding II, 2.375%, 9/11/19(a)		251,784
300,000	Reliance Standard Life Global Funding II, 2.150%, 10/15/18(a)		301,203
137,000	Voya Financial, Inc., 2.900%, 2/15/18		137,595
			1,520,977
	Materials — 2.0%
300,000	Ecolab, Inc., 1.550%, 1/12/18		299,853
200,000	Freeport-McMoRan, Inc., 2.300%, 11/14/17		199,940
250,000	Martin Marietta Materials, Inc., 6.600%, 4/15/18		256,396
			756,189
	Media — 1.8%
180,000	Cablevision Systems Corp., 7.750%, 4/15/18		184,725
200,000	Discovery Communications, LLC, 2.200%, 9/20/19		200,664
300,000	Interpublic Group of Cos., Inc. (The), 2.250%, 11/15/17		300,099
			685,488

Continued

81

Sterling Capital Ultra Short Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal     Amount			Fair Value
	CORPORATE BONDS — (continued)
		Pharmaceuticals, Biotechnology & Life Sciences — 1.9%
	$415,000	Allergan Funding SCS, 2.390%, (LIBOR USD 3-Month plus 1.08%), 3/12/18(b)	$	416,374
	300,000	Celgene Corp., 2.125%, 8/15/18		301,255
				717,629
		Real Estate — 3.2%
	250,000	HCP, Inc., REIT, 2.625%, 2/1/20		252,006
	128,000	National Retail Properties, Inc., REIT, 6.875%, 10/15/17		128,211
	300,000	Prologis LP, 4.000%, 1/15/18		300,284
	250,000	Realty Income Corp., REIT, 2.000%, 1/31/18		250,216
	300,000	Vornado Realty L.P., REIT, 2.500%, 6/30/19		301,790
				1,232,507
		Retailing — 1.2%
	250,000	Dollar General Corp., 1.875%, 4/15/18		250,260
	225,000	Penske Truck Leasing Co. LP / PTL Finance Corp., 3.375%, 3/15/18(a)		226,731
				476,991
		Semiconductors & Semiconductor Equipment — 0.8%
	300,000	QUALCOMM, Inc., 1.850%, 5/20/19		300,855
		Technology Hardware & Equipment — 1.4%
	250,000	EMC Corp., 1.875%, 6/1/18		249,008
	295,000	Harris Corp., 1.999%, 4/27/18		295,515
				544,523
		Telecommunication Services — 0.6%
	225,000	AT&T, Inc., 1.400%, 12/1/17		224,969
		Transportation — 0.8%
	300,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		301,480
		Utilities — 4.0%
	212,000	American Electric Power Co., Inc., 1.650%, 12/15/17		212,012
	300,000	Dominion Energy, Inc., 1.875%, 12/15/18(a)		299,759
	175,000	Duke Energy Florida, LLC, 5.650%, 6/15/18		179,812
	200,000	Korea Hydro & Nuclear Power Co., Ltd., 2.375%, 10/28/19(a)		199,404
	250,000	Pacific Gas & Electric Co., 5.625%, 11/30/17		251,665
	85,000	Public Service Electric & Gas Co., 1.800%, 6/1/19		85,019
	300,000	Southern Co. (The), 2.450%, 9/1/18		302,095
				1,529,766
		Total Corporate Bonds (Cost $27,805,451)		27,806,470

Principal     Amount			Fair Value
	MUNICIPAL BONDS — 0.9%
		New Jersey — 0.9%
	$325,000	New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Series AA, 5.000%, 12/15/18	$	337,951
		Total Municipal Bonds (Cost $335,088)		337,951
Shares
	MONEY MARKET FUND — 1.9%
	735,696	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(d)		735,696
		Total Money Market Fund (Cost $735,696)		735,696
	Total Investments — 99.5% (Cost $38,405,239)			38,347,200
	Net Other Assets (Liabilities) — 0.5%			194,409
	NET ASSETS — 100.0%		$	38,541,609

(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 floating rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

(c) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

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

BKNT — Bank Note

GMTN — Global Medium Term Note

MTN — Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

82

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	ASSET BACKED SECURITIES — 16.0%
	$   400,000	AmeriCredit Automobile Receivables Trust, Series 2015-4, Class B, 2.110%, 1/8/21	$	400,794
	275,000	AmeriCredit Automobile Receivables Trust, Series 2015-3, Class C, 2.730%, 3/8/21		277,707
	825,000	AmeriCredit Automobile Receivables Trust, Series 2016-2, Class B, 2.210%, 5/10/21		826,827
	865,000	AmeriCredit Automobile Receivables Trust, Series 2016-4, Class B, 1.830%, 12/8/21(a)		858,758
	140,000	Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates, Series 2004-R6, Class M1, 3.337%, (LIBOR USD 1-Month plus 2.1%), 7/25/34(b)		140,761
	800,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2014-2A, Class A, 2.500%, 2/20/21(c)		801,964
	800,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2015-1A, Class A, 2.500%, 7/20/21(c)		798,804
	650,000	Capital Auto Receivables Asset Trust, Series 2015-3, Class B, 2.430%, 9/21/20		654,042
	250,000	Capital Auto Receivables Asset Trust, Series 2015-4, Class B, 2.390%, 11/20/20		251,578
	750,000	Capital Auto Receivables Asset Trust, Series 2016-3, Class B, 1.890%, 5/20/21		742,518
	845,000	Chase Issuance Trust, Series 2016-A4, Class A4, 1.490%, 7/15/22(a)		834,503
	237,579	Citicorp Residential Mortgage Trust, Series 2007-2, Class A6, STEP, 5.254%, 6/25/37		243,495
	744,989	Citigroup Mortgage Loan Trust, Inc., Series 2005-HE1, Class M3, 2.212%, (LIBOR USD 1-Month plus 0.98%), 5/25/35(a)(b)		754,534
	376,207	Countrywide Asset-Backed Certificates, Series 2004-12, Class MV4, 2.662%, (LIBOR USD 1-Month plus 1.43%), 3/25/35(b)		377,976
	12,980	Enterprise Fleet Financing, LLC, Series 2014-2, Class A2, 1.050%, 3/20/20(c)		12,976
	1,200,000	Enterprise Fleet Financing, LLC, Series 2015-2, Class A3, 2.090%, 2/22/21(c)		1,203,221
	12,600	First Franklin Mortgage Loan Trust, Series 2006-FF1, Class 2A3, 1.477%, (LIBOR USD 1-Month plus 0.24%), 1/25/36(b)		12,599
	388,948	JP Morgan Mortgage Acquisition Corp., Series 2005-OPT2, Class M1, 1.667%, (LIBOR USD 1-Month plus 0.43%), 12/25/35(b)		388,896
	538,353	Long Beach Mortgage Loan Trust, Series
		2006-WL2, Class 2A3, 1.437%, (LIBOR USD 1-Month plus 0.2%), 1/25/36(b)		536,272
	55,016	Santander Drive Auto Receivables Trust, Series 2013-5, Class C, 2.250%, 6/17/19		55,073
	408,879	Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.260%, 6/15/20		409,535
	392,000	Santander Drive Auto Receivables Trust, Series 2016-2, Class C, 2.660%, 11/15/21		395,306
	323,358	Sofi Professional Loan Program, LLC, Series 2016-B, Class A1, 2.437%, (LIBOR USD 1-Month plus 1.2%), 6/25/33(b)(c)		328,530
	384,960	Sofi Professional Loan Program, LLC, Series
		2016-E, Class A1, 2.087%, (LIBOR USD 1-Month plus 0.85%), 7/25/39(b)(c)		388,193
	270,000	Wheels SPV 2, LLC, Series 2016-1A, Class A3, 1.870%, 5/20/25(c)		269,106
		Total Asset Backed Securities (Cost $11,920,860)		11,963,968

Principal   Amount			Fair Value
	COLLATERALIZED MORTGAGE OBLIGATIONS — 2.9%
	$  98,844	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34	$	101,782
	53,344	Fannie Mae, Series 2003-66, Class PA, 3.500%, 2/25/33		53,885
	106,095	Fannie Mae, Series 2005-67, Class HG, 5.500%, 1/25/35		109,673
	780,000	Fannie Mae, Series 2014-76, Class BC, 3.000%, 5/25/37		795,301
	25,958	Fannie Mae, Series 2009-100, Class PA, 4.500%, 4/25/39		26,286
	33,480	Freddie Mac, Series -2770, Class UE, 4.500%, 3/15/19		33,832
	724,159	Freddie Mac, Series -4100, Class PA, 3.000%, 1/15/42		736,238
	245,441	Ginnie Mae, Series 2013-165, Class PB, 3.000%, 3/20/41		246,883
	23,736	PHHMC Trust, Series 2007-6, Class A1, 5.879%, 12/18/37(d)		24,265
	30,120	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		31,359
		Total Collateralized Mortgage Obligations (Cost $2,164,344)		2,159,504
	COMMERCIAL MORTGAGE-BACKED SECURITIES — 8.9%
	422,857	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(c)		422,437
	55,312	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50(a)		55,288
	750,000	DBUBS Mortgage Trust, Series 2011-LC1A, Class B, 5.471%, 11/10/46(c)(d)		816,193
	600,000	GS Mortgage Securities Trust, Series 2010-C1, Class A2, 4.592%, 8/10/43(c)		633,070
	300,000	GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(c)		316,746
	575,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C19, Class A2, 3.046%, 4/15/47 ..		583,819
	850,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A2, 2.872%, 7/15/47(a)		861,113
	381,441	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.303%, 9/15/45(d)		382,025
	800,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C17, Class A2, 3.119%, 8/15/47		815,296
	34,001	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8, Class A2, 1.689%, 12/15/48		33,981
	640,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class AM, 6.498%, 1/11/43(d)		644,050
	357,714	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.498%, 1/11/43(d)		359,905
	250,000	WFRBS Commercial Mortgage Trust, Series 2011-C2, Class A4, 4.869%, 2/15/44(c)(d)		267,758
	420,945	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class A3, 3.998%, 3/15/44(c)		427,458

Continued

83

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
	$     80,000	WFRBS Commercial Mortgage Trust, Series 2014-C20, Class A2, 3.036%, 5/15/47	$	81,210
		Total Commercial Mortgage-Backed Securities (Cost $6,876,811)		6,700,349
	CORPORATE BONDS — 68.4%
		Automobiles & Components — 2.4%
	400,000	American Honda Finance Corp., MTN, 1.650%, 7/12/21		391,475
	500,000	Ford Motor Credit Co., LLC, 3.200%, 1/15/21		510,067
	400,000	Hyundai Capital America, 2.500%, 3/18/19(c)		400,281
	500,000	Nissan Motor Acceptance Corp., 2.550%, 3/8/21(c)		503,055
				1,804,878
		Banks — 15.5%
	525,000	ABN AMRO Bank NV, 2.500%, 10/30/18(c)		528,737
	400,000	Australia & New Zealand Banking Group Ltd., 2.184%, (LIBOR USD 3-Month plus 0.87%), 11/23/21(b)(c)		404,220
	1,275,000	Bank of America Corp., 2.151%, 11/9/20(a)		1,271,339
	450,000	Bank of Tokyo-Mitsubishi UFJ, Ltd. (The), 2.300%, 3/5/20(c)		451,036
	400,000	Barclays Bank PLC, 5.140%, 10/14/20		427,829
	415,000	Canadian Imperial Bank of Commerce, 1.600%, 9/6/19		412,623
	1,000,000	Citigroup, Inc., 2.550%, 4/8/19		1,008,611
	400,000	Citizens Bank NA, BKNT, 2.300%, 12/3/18		401,498
	500,000	Cooperatieve Rabobank UA, MTN, 2.250%, 1/14/20		503,183
	400,000	Credit Suisse, GMTN, 2.300%, 5/28/19		402,609
	450,000	DNB Bank ASA, 2.125%, 10/2/20(c)(e)		449,733
	500,000	GE Capital International Funding Co. Unlimited Co., 2.342%, 11/15/20		505,263
	575,000	HSBC Bank PLC, 4.125%, 8/12/20(c)		605,677
	900,000	JPMorgan Chase & Co., 2.550%, 3/1/21		908,998
	500,000	Macquarie Bank, Ltd., 2.350%, 1/15/19(c)		502,079
	450,000	Manufacturers & Traders Trust Co., BKNT, 1.927%, (LIBOR USD 3-Month plus 0.61%), 5/18/22(b)		451,050
	250,000	Mitsubishi UFJ Financial Group, Inc., 2.377%, (LIBOR USD 3-Month plus 1.06%), 9/13/21(b)		253,751
	500,000	National City Corp., 6.875%, 5/15/19		538,051
	330,000	Nordea Bank AB, 4.875%, 1/27/20(c)		350,830
	485,000	Royal Bank of Canada, GMTN, 2.500%, 1/19/21		489,261
	275,000	SunTrust Bank, BKNT, 2.250%, 1/31/20		276,296
	400,000	Wells Fargo & Co., 2.500%, 3/4/21		402,744
				11,545,418
		Capital Goods — 2.2%
	95,000	Fortive Corp., 1.800%, 6/15/19		94,913
	400,000	L3 Technologies, Inc., 5.200%, 10/15/19		425,101
	75,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 2.875%, 7/17/18(c)		75,699
	500,000	Roper Technologies, Inc., 3.000%, 12/15/20		510,129
	525,000	Textron, Inc., 3.650%, 3/1/21		543,722
				1,649,564

Principal   Amount			Fair Value
	CORPORATE BONDS — (continued)
		Consumer Durables & Apparel — 0.6%
	$   400,000	D.R. Horton, Inc., 4.000%, 2/15/20	$	414,247
		Consumer Services — 0.7%
	500,000	Carnival Corp., 3.950%, 10/15/20		526,687
		Diversified Financials — 7.5%
	400,000	AerCap Ireland Capital, DAC/AerCap Global Aviation Trust, 4.250%, 7/1/20		417,888
	365,000	Ally Financial, Inc., 3.600%, 5/21/18		367,811
	440,000	American Express Credit Corp., MTN, 2.200%, 3/3/20		442,302
	500,000	Ameriprise Financial, Inc., 5.300%, 3/15/20		537,568
	400,000	Bank of New York Mellon Corp., MTN (The), 2.500%, 4/15/21		403,999
	400,000	Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(c)		433,514
	900,000	Goldman Sachs Group, Inc. (The), Series D, 6.000%, 6/15/20		987,824
	350,000	KKR Group Finance Co., LLC, 6.375%, 9/29/20(c)		390,122
	1,200,000	Morgan Stanley, 2.650%, 1/27/20(a)		1,213,755
	425,000	Protective Life Global Funding, 2.161%, 9/25/20(c)		424,272
				5,619,055
		Energy — 7.9%
	275,000	Andeavor, 5.375%, 10/1/22		283,185
	400,000	Buckeye Partners LP, 4.875%, 2/1/21		424,618
	425,000	Columbia Pipeline Group, Inc., 3.300%, 6/1/20 .		435,009
	500,000	Enbridge Energy Partners LP, Series B, 6.500%, 4/15/18		512,412
	500,000	Energy Transfer LP, 4.150%, 10/1/20		522,194
	326,000	EnLink Midstream Partners LP, 2.700%, 4/1/19		326,936
	400,000	Kinder Morgan Energy Partners L.P., 5.300%, 9/15/20		431,338
	395,000	MPLX L.P., 5.500%, 2/15/23		406,455
	328,000	Noble Energy, Inc., 5.625%, 5/1/21		337,840
	300,000	NuStar Logistics LP, 8.150%, 4/15/18		309,000
	250,000	Phillips 66, 2.054%, (LIBOR USD 3-Month plus 0.75%), 4/15/20(b)(c)		250,360
	400,000	Pioneer Natural Resources Co., 7.500%, 1/15/20		445,143
	360,000	Sabine Pass Liquefaction, LLC, 5.625%, 2/1/21		389,616
	425,000	Shell International Finance BV, 1.875%, 5/10/21		421,974
	425,000	Western Gas Partners LP, 2.600%, 8/15/18		426,931
				5,923,011
		Food & Staples Retailing — 0.3%
	250,000	CVS Health Corp., 2.125%, 6/1/21		247,688
		Food, Beverage & Tobacco — 1.6%
	415,000	Anheuser-Busch InBev Finance, Inc., 2.650%, 2/1/21		421,740
	340,000	BAT Capital Corp., 2.297%, 8/14/20(c)		341,086
	392,000	Reynolds American, Inc., 3.250%, 6/12/20		402,831
				1,165,657
		Health Care Equipment & Services — 0.4%
	300,000	Centene Corp., 5.625%, 2/15/21		312,060
		Insurance — 10.1%
	375,000	Alleghany Corp., 5.625%, 9/15/20		407,741

Continued

84

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	CORPORATE BONDS — (continued)
		Insurance — (continued)
	$261,000	American International Group, Inc., 2.300%, 7/16/19	$	262,299
	400,000	Aspen Insurance Holdings, Ltd., 6.000%, 12/15/20		437,927
	450,000	Athene Global Funding, 2.875%, 10/23/18(c)		454,268
	350,000	AXIS Specialty Finance, LLC, 5.875%, 6/1/20		379,709
	400,000	Chubb INA Holdings, Inc., 2.300%, 11/3/20		402,931
	350,000	Guardian Life Global Funding, 2.000%, 4/26/21(c)		345,605
	645,000	Jackson National Life Global Funding, 2.300%, 4/16/19(c)		647,316
	450,000	MassMutual Global Funding II, 1.950%, 9/22/20(c)		448,794
	600,000	Metropolitan Life Global Funding I, 2.050%, 6/12/20(c)		599,410
	450,000	Nationwide Financial Services, Inc., 5.375%, 3/25/21(c)		488,848
	425,000	New York Life Global Funding, 2.000%, 4/13/21(c)		422,112
	375,000	Ohio National Financial Services, Inc., 6.375%, 4/30/20(c)		408,794
	410,000	Pacific LifeCorp, 6.000%, 2/10/20(c)		442,057
	500,000	Pricoa Global Funding I, 2.200%, 5/16/19(c)		502,184
	400,000	Reinsurance Group of America, Inc., 5.000%, 6/1/21		432,393
	450,000	Reliance Standard Life Global Funding II, 2.150%, 10/15/18(c)		451,804
				7,534,192
		Materials — 2.5%
	505,000	EI du Pont de Nemours & Co., 2.200%, 5/1/20		508,250
	300,000	Freeport-McMoRan, Inc., 2.300%, 11/14/17		299,910
	295,000	Glencore Finance Canada, Ltd., 2.700% 10/25/17(c)		295,103
	186,000	Glencore Funding, LLC, 2.500%, 1/15/19(c)		186,960
	180,000	Sherwin-Williams Co. (The), 2.250%, 5/15/20		180,712
	400,000	Westlake Chemical Corp., 4.625%, 2/15/21		413,400
				1,884,335
		Media — 2.4%
	280,000	Cablevision Systems Corp., 7.750%, 4/15/18		287,350
	500,000	Charter Communications Operating, LLC / Charter Communications Operating Capital, 3.579%, 7/23/20		513,289
	250,000	Discovery Communications, LLC, 2.200%, 9/20/19		250,830
	400,000	Omnicom Group, Inc., 6.250%, 7/15/19		428,926
	300,000	Univision Communications, Inc., 6.750%, 9/15/22(c)		311,199
				1,791,594
		Pharmaceuticals, Biotechnology & Life Sciences — 1.5%
	250,000	AbbVie, Inc., 2.300%, 5/14/21		249,588
	350,000	Allergan Funding SCS, 3.000%, 3/12/20		357,325
	500,000	Celgene Corp., 2.875%, 8/15/20		510,376
				1,117,289
		Real Estate — 3.7%
	400,000	American Tower Corp., REIT, 5.050%, 9/1/20		431,196
	400,000	ERP Operating L.P., REIT, 4.750%, 7/15/20		426,368
	430,000	HCP, Inc., REIT, 2.625%, 2/1/20		433,451

Principal   Amount			Fair Value
	CORPORATE BONDS — (continued)
		Real Estate — (continued)
	$465,000	iStar, Inc., REIT, 4.000%, 11/1/17	$	465,372
	71,000	iStar, Inc., REIT, 4.625%, 9/15/20		72,597
	525,000	Ventas Realty LP/Ventas Capital Corp., REIT, 4.000%, 4/30/19		538,436
	420,000	Vornado Realty L.P., REIT, 2.500%, 6/30/19		422,506
				2,789,926
		Semiconductors & Semiconductor Equipment — 1.3%
	555,000	Broadcom Corp. / Broadcom Cayman Finance, Ltd., 2.375%, 1/15/20(c)		558,066
	400,000	NXP BV / NXP Funding, LLC, 4.125%, 6/15/20(c)		417,500
				975,566
		Software & Services — 1.5%
	125,000	DXC Technology Co., 2.875%, 3/27/20		126,667
	400,000	DXC Technology Co., 2.266%, (LIBOR USD 3-Month plus 0.95%), 3/1/21(b)		401,516
	557,000	VMware, Inc., 2.300%, 8/21/20		558,631
				1,086,814
		Technology Hardware & Equipment — 0.6%
	447,000	Harris Corp., 2.700%, 4/27/20		451,692
		Telecommunication Services — 1.6%
	400,000	AT&T, Inc., 2.450%, 6/30/20		402,851
	500,000	Deutsche Telekom International Finance BV, 2.225%, 1/17/20(c)		500,649
	290,000	Sprint Spectrum Co., LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC, 3.360%, 9/20/21(c)		294,350
				1,197,850
		Transportation — 0.7%
	500,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		502,467
		Utilities — 3.4%
	500,000	CMS Energy Corp., 8.750%, 6/15/19		554,761
	500,000	Dominion Energy, Inc., 2.579%, 7/1/20		504,172
	500,000	Dominion Energy, Inc., Series A, 1.875%, 1/15/19		499,367
	500,000	Exelon Generation Co., LLC, 2.950%, 1/15/20		508,845
	500,000	Southern Power Co., 2.375%, 6/1/20		501,012
				2,568,157
		Total Corporate Bonds (Cost $51,018,025)		51,108,147

Continued

85

Sterling Capital Short Duration Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — 2.4%
		California — 0.8%
	$575,000	University of California Revenue, Refunding, Taxable, Series AS, 1.490%, 5/15/20	$	568,077
		New Jersey — 1.2%
	525,000	New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Series AA, 5.000%, 12/15/18		545,921
	325,000	New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Taxable, Series C, 4.521%, 6/15/21		336,840
				882,761
		Puerto Rico — 0.4%
	325,000	Puerto Rico Municipal Finance Agency,Public Improvements, G.O., Series A, Callable 8/7/17 @ 100 (AGM, Government GTD), 5.250%, 8/1/18		329,147
		Total Municipal Bonds (Cost $1,779,215)		1,779,985
	U.S. TREASURY NOTE — 1.1%
	810,000	1.250%, 1/31/20		804,684
		Total U.S. Treasury Note (Cost $804,066)		804,684

Shares			Fair Value
	MONEY MARKET FUND — 0.9%
	668,930	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(f)	$	668,930
		Total Money Market Fund (Cost $668,930)		668,930
	Total Investments — 100.6% (Cost $75,232,251)			75,185,567
	Net Other Assets (Liabilities) — (0.6)%			(426,929	)
	NET ASSETS — 100.0%		$	74,758,638

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

(b) The interest rate for this floating rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

(c) 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.

(d) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

(e) Represents securities purchased on a when-issued basis. At September 30, 2017, total cost of investments purchased on a when-issued basis was $449,663.

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

AGM — Assured Guaranty Municipal Corp.

BKNT — Bank Note

G.O. — General Obligation

GMTN — Global Medium Term Note

GTD — Guaranteed

MTN — Medium Term Note

REIT — Real Estate Investment Trust

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

86

Sterling Capital Intermediate U.S. Government Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	ASSET BACKED SECURITIES — 1.4%
		Asset Backed Securities — 1.4%
	$215,425	United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35	$	218,302
	97,140	United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35		98,238
		Total Asset Backed Securities (Cost $312,565)		316,540
	COLLATERALIZED MORTGAGE OBLIGATIONS — 3.5%
	464,011	Fannie Mae, Series 2010-129, Class NA, 3.500%, 3/25/25		474,759
	77,800	Freddie Mac, Series 3644, Class BA, 4.500%, 2/15/29		78,226
	224,499	Freddie Mac, Series 4648, Class E, 3.500%, 8/15/43		231,857
		Total Collateralized Mortgage Obligations (Cost $779,729)		784,842
	COMMERCIAL MORTGAGE-BACKED SECURITIES — 5.0%
	140,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K049, Class A2, 3.010%, 7/25/25		143,306
	220,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series KS07, Class A2, 2.735%, 9/25/25		219,049
	210,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K060, Class A2, 3.300%, 10/25/26		217,807
	210,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K061, Class A2, 3.347%, 11/25/26(a)		218,763
	210,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K063, Class A2, 3.430%, 1/25/27(a)		220,001
	92,785	FRESB Mortgage Trust, Series 2016-SB23, Class A5H, 1.980%, (LIBOR USD 1-Month plus 2.12%), 9/25/36(b)		91,506
		Total Commercial Mortgage-Backed Securities (Cost $1,107,554)		1,110,432
	CORPORATE BONDS — 6.4%
		Automobiles & Components — 0.8%
	180,000	American Honda Finance Corp., MTN, 1.700%, 2/22/19		179,926
		Banks — 1.8%
	200,000	State Street Corp., 2.550%, 8/18/20		203,467
	200,000	Wells Fargo & Co., GMTN, 2.600%, 7/22/20		202,807
		Diversified Financials — 2.2%
	500,000	Morgan Stanley, 2.125%, 4/25/18		501,420
		Energy — 0.9%
	200,000	Chevron Corp., 1.345%, 11/15/17		200,019
		Utilities — 0.7%
	150,000	Alabama Power Co., 5.500%, 10/15/17		150,180
		Total Corporate Bonds (Cost $1,427,247)		1,437,819

Principal   Amount			Fair Value
	MORTGAGE-BACKED SECURITIES — 9.4%
		Fannie Mae — 5.3%
	$750,701	3.587%, 9/1/20, Pool #FN0000	$	780,538
	184,756	4.000%, 12/1/36, Pool #MA2856		196,532
	205,803	4.000%, 2/1/37, Pool #MA2914		218,896
				1,195,966
		Freddie Mac — 3.6%
	356,572	4.000%, 12/1/35, Pool #C91860		380,438
	405,737	3.500%, 6/1/36, Pool #C91875		422,624
				803,062
		Ginnie Mae — 0.5%
	102,838	5.000%, 11/20/38, Pool #4283		106,665
		Total Mortgage-Backed Securities (Cost $2,068,193)		2,105,693
	MUNICIPAL BONDS — 3.5%
		California — 0.1%
	20,000	State Of California, Refunding G.O., Taxable, 6.200%, 10/1/19		21,724
		New York — 1.9%
	400,000	New York City Water & Sewer System, Build America Bonds, Water Utility Improvements Revenue, Taxable, Series DD, Callable 6/15/20 @ 100, 6.452%, 6/15/41		439,844
		North Carolina — 1.2%
	250,000	Durham County, NC, Build America Bonds, Public Improvements G.O., Taxable, Series B, Callable 10/1/20 @ 100, 4.845%, 10/1/29		270,115
		Texas — 0.3%
	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		64,567
		Total Municipal Bonds (Cost $808,333)		796,250
	U.S. GOVERNMENT AGENCIES — 31.4%
		Fannie Mae — 11.3%
	500,000	1.875%, 9/24/26		474,631
	1,000,000	6.250%, 5/15/29		1,346,642
	500,000	7.125%, 1/15/30		725,398
				2,546,671
		Federal Farm Credit Bank — 13.3%
	2,000,000	4.670%, 2/27/18		2,027,982
	200,000	2.480%, 12/22/21		200,190
	500,000	2.720%, 4/3/24		501,701
	250,000	3.480%, 9/11/30		251,039
				2,980,912
		Freddie Mac — 6.8%
	500,000	4.875%, 6/13/18		512,259
	500,000	1.500%, 3/30/21, STEP		499,547
	500,000	2.375%, 1/13/22		508,872
				1,520,678
		Total U.S. Government Agencies (Cost $6,892,511)		7,048,261
	U.S. TREASURY NOTES — 35.8%
	400,000	1.000%, 5/15/18		399,406

Continued

87

Sterling Capital Intermediate U.S. Government Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	U.S. TREASURY NOTES — (continued)
	$   100,000	1.250%, 4/30/19	$	99,711
	1,000,000	2.125%, 8/31/20		1,014,336
	1,000,000	2.000%, 2/28/21		1,009,609
	1,000,000	3.125%, 5/15/21		1,048,711
	285,000	1.625%, 8/15/22		281,371
	535,000	2.000%, 2/15/23		535,293
	1,135,000	2.750%, 2/15/24		1,178,804
	500,000	2.125%, 5/15/25		496,758
	280,000	2.000%, 8/15/25		275,209
	500,000	2.250%, 11/15/25		499,980
	785,000	1.625%, 2/15/26		746,363
	250,000	1.500%, 8/15/26		234,092
	200,000	2.000%, 11/15/26		194,898
		Total U.S. Treasury Notes (Cost $8,128,632)		8,014,541

Shares			Fair Value
	MONEY MARKET FUND — 3.1%
	690,860	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(c)	$	690,860
		Total Money Market Fund (Cost $690,860)		690,860
	Total Investments — 99.5% (Cost $22,215,624)			22,305,238
	Net Other Assets (Liabilities) — 0.5%			101,967
	NET ASSETS — 100.0%		$	22,407,205

(a) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

(b) The interest rate for this floating rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

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

G.O. — General Obligation

GMTN — Global Medium Term Note

MTN — Medium Term Note

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

88

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	ASSET BACKED SECURITIES — 15.2%
	$1,835,000	Aegis Asset Backed Securities Trust, Series 2005-5, Class 1A4, 1.587%, (LIBOR USD 1-Month plus 0.35%), 12/25/35(a)	$	1,750,766
	3,000,000	AmeriCredit Automobile Receivables Trust, Series 2014-4, Class B, 1.870%, 12/9/19		3,002,103
	4,120,000	AmeriCredit Automobile Receivables Trust, Series 2015-1, Class B, 1.880%, 3/9/20		4,124,627
	4,000,000	AmeriCredit Automobile Receivables Trust, Series 2016-3, Class B, 1.800%, 10/8/21		3,974,871
	4,565,000	AmeriCredit Automobile Receivables Trust, Series 2016-4, Class B, 1.830%, 12/8/21		4,532,061
	609,798	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 1.577%, (LIBOR USD 1-Month plus 0.34%), 11/25/35(a)		608,854
	6,000,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2016-1A, Class A, 2.990%, 6/20/22(b)		6,053,184
	7,060,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2017-1A, Class A, 3.070%, 9/20/23(b)		7,116,779
	1,061,000	BA Credit Card Trust, Series 2014-A1, Class A, 1.614%, (LIBOR USD 1-Month plus 0.38%), 6/15/21(a)		1,064,813
	2,320,000	Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 2.637%, (LIBOR USD 1-Month plus 1.4%), 10/25/34(a)		2,338,691
	2,500,000	Capital Auto Receivables Asset Trust, Series 2016-3, Class A4, 1.690%, 3/20/21		2,492,971
	4,110,000	Capital Auto Receivables Asset Trust, Series 2016-3, Class B, 1.890%, 5/20/21		4,069,001
	8,679,000	Capital One Multi-Asset Execution Trust, Series 2016-A1, Class A1, 1.684%, (LIBOR USD 1-Month plus 0.45%), 2/15/22(a)		8,724,894
	7,340,000	Chase Issuance Trust, Series 2016-A4, Class A4, 1.490%, 7/15/22		7,248,818
	2,478,000	Chase Issuance Trust, Series 2014-A2, Class A2, 2.770%, 3/15/23		2,536,109
	6,500,000	Citibank Credit Card Issuance Trust, Series 2017-A5, Class A5, 1.856%, (LIBOR USD 1-Month plus 0.62%), 4/22/26(a)		6,567,826
	9,000,000	Citibank Credit Card Issuance Trust, Series 2017-A6, Class A6, 2.007%, (LIBOR USD 1-Month plus 0.77%), 5/14/29(a)		9,090,905
	1,499,248	Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 5.254%, 6/25/37		1,536,584
	1,746,985	Countrywide Asset-Backed Certificates, Series 2004-12, Class MV4, 2.662%, (LIBOR USD 1-Month plus 1.43%), 3/25/35(a)		1,755,201
	3,210,000	Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.120%, 12/15/21		3,229,011
	9,200,000	Discover Card Execution Note Trust, Series 2017-A4, Class A4, 2.530%, 10/15/26		9,218,871
	8,540,000	Discover Card Execution Note Trust, Series 2017-A5, Class A5, 1.834%, (LIBOR USD 1-Month plus 0.6%), 12/15/26(a)		8,625,170
	6,360,000	Encore Credit Receivables Trust, Series 2005-4, Class M2, 1.677%, (LIBOR USD 1-Month plus 0.44%), 1/25/36(a)		6,319,829
	3,075,000	Enterprise Fleet Financing, LLC, Series 2017-1, Class A3, 2.600%, 7/20/22(b)		3,105,248
	6,034,000	Ford Credit Auto Owner Trust, Series 2014-2, Class A, 2.310%, 4/15/26(b)		6,083,186

Principal   Amount			Fair Value
	ASSET BACKED SECURITIES — (continued)
	$4,200,000	Ford Credit Auto Owner Trust, Series 2015-1, Class A, 2.120%, 7/15/26(b)	$	4,215,926
	9,595,000	Ford Credit Auto Owner Trust, Series 2017-2, Class A, 2.360%, 3/15/29(b)		9,593,941
	1,351,882	GSAMP Trust, Series 2006-SEA1, Class M1, 1.737%, (LIBOR USD 1-Month plus 0.5%), 5/25/36(a)(b)		1,334,127
	1,823,520	Home Equity Mortgage Loan Asset-Backed Trust, Series 2005-B, Class M3, 1.727%, (LIBOR USD 1-Month plus 0.49%), 8/25/35(a)		1,825,456
	3,000,000	JP Morgan Mortgage Acquisition Corp., Series 2005-OPT1, Class M2, 1.942%, (LIBOR USD 1-Month plus 0.71%), 6/25/35(a)		2,996,257
	2,967,739	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 1.437%, (LIBOR USD 1-Month plus 0.2%), 1/25/36(a)		2,956,272
	1,030,531	New Century Home Equity Loan Trust, Series 2003-4, Class M1, 2.362%, (LIBOR USD 1-Month plus 1.13%), 10/25/33(a)		1,007,956
	3,550,000	Park Place Securities, Inc., Series 2005-WHQ2, Class M2, 1.927%, (LIBOR USD 1-Month plus 0.69%), 5/25/35(a)		3,557,708
	2,680,000	RAMP Trust, Series 2005-RZ4, Class M2, 1.737%, (LIBOR USD 1-Month plus 0.5%), 11/25/35(a)		2,604,060
	1,325,656	Santander Drive Auto Receivables Trust, Series 2015-3, Class B, 2.070%, 4/15/20		1,326,950
	6,856,907	Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.260%, 6/15/20		6,867,900
	3,582,922	Saxon Asset Securities Trust, Series 2004-3, Class M1, 2.137%, (LIBOR USD 1-Month plus 0.9%), 12/26/34(a)		3,484,690
	2,162,238	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 1.557%, (LIBOR USD 1-Month plus 0.32%), 10/25/35(a)		2,161,001
	1,650,337	Sofi Professional Loan Program, LLC, Series 2016-E, Class A1, 2.087%, (LIBOR USD 1-Month plus 0.85%), 7/25/39(a)(b)		1,664,200
	3,399,895	United States Small Business Administration, Series 2015-20H, Class 1, 2.820%, 8/1/35		3,438,347
		Total Asset Backed Securities (Cost $162,410,820)		164,205,164
	COLLATERALIZED MORTGAGE OBLIGATIONS — 6.8%
	388,471	Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 3.508%, 4/25/35(c)		383,068
	508,587	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		534,604
	1,660,131	Banc of America Funding Trust, Series 2005-B, Class 3A1, 1.466%, (LIBOR USD 1-Month plus 0.23%), 4/20/35(a)		1,653,077
	651,182	Banc of America Funding Trust, Series 2006-2, Class 3A1, 6.000%, 3/25/36		659,925
	115,891	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		117,273
	74,612	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		75,641
	563,413	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		580,158

Continued

89

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
	$     143,881	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34	$	147,247
	17,217	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		17,191
	453,434	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		485,120
	4,034	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		4,105
	944,568	Fannie Mae, Series 2013-133, Class AV, 4.000%, 12/25/26		1,004,215
	1,836,945	Fannie Mae, Series 2014-39, Class VP, 3.000%, 8/25/27		1,878,700
	2,285,043	Fannie Mae, Series 2011-38, Class D, 4.500%, 5/25/41		2,476,533
	2,856,629	FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/25/44(b)(c)		2,910,970
	1,278,206	Freddie Mac, Series -3768, Class V, 4.000%, 11/15/23		1,347,345
	2,546,885	Freddie Mac, Series -4387, Class VM, 4.000%, 11/15/25		2,699,847
	1,785,628	Freddie Mac, Series -4287, Class V, 4.500%, 10/15/26		1,938,237
	390,969	Freddie Mac, Series -4136, Class HZ, 3.500%, 11/15/27		404,051
	2,660,539	Freddie Mac, Series -4331, Class V, 4.000%, 11/15/28		2,831,812
	10,000,000	Freddie Mac, Series -4655, Class GV, 3.500%, 12/15/36		10,309,264
	5,500,000	Freddie Mac, Series -4657, Class VT, 3.500%, 6/15/37		5,657,939
	1,552,700	Freddie Mac, Series -3632, Class PK, 5.000%, 2/15/40		1,679,658
	2,636,827	Freddie Mac, Series -4077, Class PJ, 3.500%, 11/15/40		2,742,181
	819,000	Freddie Mac, Series -3762, Class LN, 4.000%, 11/15/40		883,229
	4,928,807	Freddie Mac, Series -4100, Class PA, 3.000%, 1/15/42		5,011,017
	1,804,647	Freddie Mac, Series -4328, Class KD, 3.000%, 8/15/43		1,852,608
	10,605,335	Freddie Mac, Series -4648, Class E, 3.500%, 8/15/43		10,952,913
	4,821,758	Freddie Mac, Series -4654, Class KA, 3.000%, 6/15/45		4,895,376
	585,922	Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38		633,376
	747,548	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		761,303
	688,948	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		691,777
	94,757	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		94,998
	228,235	PHHMC Trust, Series 2007-6, Class A1, 5.879%, 12/18/37(c)		233,314
	9,029	RAAC Trust, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(c)		9,139

Principal   Amount			Fair Value
	COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
	$   652,317	RAAC Trust, Series 2004-SP1, Class AI3, STEP, 6.118%, 3/25/34	$	666,876
	661,184	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		673,802
	347,983	Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 3.424%, 12/25/34(c)		344,872
	702,873	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		704,734
	572,833	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 3.448%, 6/25/34(c)		576,776
	54,482	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		55,543
	560,388	Wells Fargo Mortgage Backed Securities Trust, Series 2004-BB, Class A2, 3.101%, 1/25/35(c)		562,353
	144,045	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		145,211
	981,461	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 6A3, 3.450%, 10/25/35(c)		985,920
	97,046	Wells Fargo Mortgage Backed Securities Trust, Series 2007-16, Class 1A1, 6.000%, 12/28/37		101,039
		Total Collateralized Mortgage Obligations (Cost $72,946,772)		73,374,337
	COMMERCIAL MORTGAGE-BACKED SECURITIES — 12.6%
	3,067,885	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		3,064,838
	235,382	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class AM, 5.835%, 9/11/42(c)		235,288
	155,844	Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A4, 5.700%, 6/11/50		155,778
	4,842,000	CD Mortgage Trust, Series 2016-CD2, Class A4, 3.526%, 11/10/49(c)		5,006,759
	2,868,000	CFCRE Commercial Mortgage Trust, Series 2016-C7, Class A3, 3.839%, 12/10/54		3,004,277
	1,540,000	CFCRE Commercial Mortgage Trust 2016-C4, Series 2016-C4, Class A2, 2.707%, 5/10/58		1,555,960
	1,500,000	Citigroup Commercial Mortgage Trust, Series 2017-P7, Class A4, 3.712%, 4/14/50		1,572,909
	1,000,000	COMM Mortgage Trust, Series 2012-CR1, Class AM, 3.912%, 5/15/45		1,041,806
	3,545,000	COMM Mortgage Trust, Series 2013-CR12, Class A4, 4.046%, 10/10/46		3,795,819
	892,000	COMM Mortgage Trust, Series 2014-CR16, Class A4, 4.051%, 4/10/47		952,740
	1,208,000	COMM Mortgage Trust, Series 2014-LC17, Class A5, 3.917%, 10/10/47		1,280,341
	1,344,000	COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/10/47		1,396,179
	8,030,000	COMM Mortgage Trust, Series 2017-COR2, Class A3, 3.510%, 9/10/50		8,239,920
	1,500,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.267%, 12/10/49(c)		1,498,456

Continued

90

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
	$   258,289	Credit Suisse Commercial Mortgage Trust, Series 2008-C1, Class A3, 6.514%, 2/15/41(c)	$	258,095
	1,900,000	DBUBS Mortgage Trust, Series 2011-LC1A, Class C, 5.685%, 11/10/46(b)(c)		2,063,664
	6,795,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series -KS07, Class A2, 2.735%, 9/25/25		6,765,629
	6,400,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series -K063, Class A2, 3.430%, 1/25/27(c)		6,704,791
	6,410,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series -K064, Class A2, 3.224%, 3/25/27(c)		6,609,041
	3,800,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series -K153, Class A3, 3.117%, 10/25/31(c)		3,778,071
	5,600,000	FRESB Mortgage Trust, Series 2017-SB37, Class A10F, 2.750%, 7/25/27(c)		5,541,790
	2,366,023	FRESB Mortgage Trust, Series 2016-SB23, Class A5H, 1.980%, (LIBOR USD 1-Month plus 2.12%), 9/25/36(a)		2,333,406
	3,000,000	GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(b)		3,167,461
	2,524,000	GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47		2,678,144
	2,044,000	GS Mortgage Securities Trust, Series 2016-GS4, Class A4, 3.442%, 11/10/49(c)		2,100,111
	1,680,000	JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS, 3.372%, 12/15/47		1,706,994
	1,702,000	JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP4, Class A4, 3.648%, 12/15/49(c)		1,776,879
	1,397,000	JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47		1,481,048
	4,200,000	JPMCC Commercial Mortgage Securities Trust 2017-JP5, Series 2017-JP5, Class A5, 3.723%, 3/15/50		4,410,461
	4,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/15/43(b)		4,000,480
	4,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(b)(c)		4,238,704
	1,346,719	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.303%, 9/15/45(c)		1,348,783
	889,291	Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4, 5.690%, 2/12/51		889,407
	1,680,000	Merrill Lynch Mortgage Trust, Series 2008-C1, Class AM, 6.665%, 2/12/51(c)		1,684,562
	180,697	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class A2, 1.970%, 5/15/46		180,788
	660,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47		698,401
	5,834,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C32, Class A4, 3.720%, 12/15/49		6,114,423

Principal   Amount			Fair Value
	COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
	$2,355,000	Morgan Stanley Capital I Trust, Series 2008-T29, Class AM, 6.498%, 1/11/43(c)	$	2,369,901
	2,282,031	Morgan Stanley Capital I Trust, Series 2008-T29, Class A4, 6.498%, 1/11/43(c)		2,296,010
	4,000,000	Morgan Stanley Capital I Trust, Series 2011-C1, Class B, 5.588%, 9/15/47(b)(c)		4,365,698
	640,000	Morgan Stanley Capital I Trust, Series 2011-C1, Class C, 5.588%, 9/15/47(b)(c)		693,288
	2,562,000	Morgan Stanley Capital I Trust, Series 2016-BNK2, Class A4, 3.049%, 11/15/49		2,550,068
	2,500,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A2, 4.393%, 11/15/43(b)		2,633,263
	3,156,000	Wells Fargo Commercial Mortgage Trust, Series 2015-P2, Class A4, 3.809%, 12/15/48		3,335,427
	825,000	WFRBS Commercial Mortgage Trust, Series 2011-C2, Class A4, 4.869%, 2/15/44(b)(c)		883,602
	2,000,000	WFRBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(b)(c)		2,127,485
	4,205,000	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class A4, 4.375%, 3/15/44(b)		4,454,978
	1,250,000	WFRBS Commercial Mortgage Trust, Series 2012-C8, Class AS, 3.660%, 8/15/45		1,295,141
	3,716,000	WFRBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57		3,900,135
	1,008,000	WFRBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57		1,069,115
		Total Commercial Mortgage-Backed Securities (Cost $137,246,849)		135,306,314
	CORPORATE BONDS — 37.6%
		Automobiles & Components — 1.0%
	3,653,000	American Honda Finance Corp., MTN, 1.577%, (LIBOR USD 3-Month plus 0.27%), 7/20/20(a)		3,654,944
	1,556,000	Ford Motor Co., 7.450%, 7/16/31		2,015,172
	1,939,000	General Motors Financial Co., Inc., 3.200%, 7/13/20		1,985,741
	2,695,000	Hyundai Capital America, 2.400%, 10/30/18(b)		2,704,776
				10,360,633
		Banks — 7.0%
	3,278,000	Associated Banc-Corp., 2.750%, 11/15/19		3,321,409
	1,839,000	Bank of America Corp., 2.344%, (LIBOR USD 3-Month plus 1.04%), 1/15/19(a)		1,857,072
	1,788,000	Bank of America Corp., 5.875%, 2/7/42		2,291,894
	4,875,000	Bank of America Corp., MTN, 6.875%, 4/25/18		5,015,322
	1,970,000	Bank of America Corp., Series K, 8.000%,(c)(d)		1,998,171
	1,993,000	Bank of Nova Scotia (The), BKNT, 2.450%, 3/22/21		2,005,239
	2,567,000	Barclays PLC, 4.337%, 1/10/28		2,650,414
	2,500,000	Citigroup, Inc., 3.015%, (LIBOR USD 3-Month plus 1.7%), 5/15/18(a)		2,522,906
	3,819,000	Citigroup, Inc., 2.414%, (LIBOR USD 3-Month plus 1.1%), 5/17/24(a)		3,827,452
	1,715,000	Citigroup, Inc., 4.400%, 6/10/25		1,805,467
	2,908,000	Citizens Bank NA, BKNT, 2.127%, (LIBOR USD 3-Month plus 0.81%), 5/26/22(a)		2,900,028
	2,810,000	Cooperatieve Rabobank UA, 3.950%, 11/9/22		2,949,054
	2,256,000	Credit Suisse, MTN, 3.625%, 9/9/24		2,342,701

Continued

91

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal     Amount			Fair Value
	CORPORATE BONDS — (continued)
		Banks — (continued)
	$1,412,000	GE Capital International Funding Co. Unlimited Co., 4.418%, 11/15/35	$	1,535,406
	2,785,000	Huntington National Bank (The), 2.000%, 6/30/18		2,791,610
	3,284,000	JPMorgan Chase & Co., 1.996%, (LIBOR USD 3-Month plus 0.68%), 6/1/21(a)		3,300,650
	3,429,000	JPMorgan Chase & Co., 3.875%, 9/10/24		3,570,504
	3,385,000	JPMorgan Chase & Co., 4.260%, 2/22/48(c)		3,552,103
	1,922,000	JPMorgan Chase & Co., Series 1, 7.900%,(c)(d)		1,979,660
	2,000,000	KeyBank NA, BKNT, 2.500%, 12/15/19		2,023,260
	2,082,000	Mitsubishi UFJ Financial Group, Inc., 2.950%, 3/1/21		2,115,325
	3,409,000	Nordea Bank AB, 1.787%, (LIBOR USD 3-Month plus 0.47%), 5/29/20(a)(b)		3,421,727
	1,007,000	PNC Bank NA, BKNT, 6.000%, 12/7/17		1,014,897
	1,450,000	Royal Bank of Scotland Group PLC, 4.700%, 7/3/18		1,475,563
	2,933,000	Sumitomo Mitsui Financial Group, Inc., 2.934%, 3/9/21		2,981,139
	2,592,000	Toronto-Dominion Bank (The), 1.959%, (LIBOR USD 3-Month plus 0.65%), 8/13/19(a)		2,612,370
	3,360,000	Toronto-Dominion Bank (The), 3.625%, 9/15/31(c)		3,345,682
	1,856,000	Wells Fargo & Co., 1.719%, (LIBOR USD 3-Month plus 0.4%), 9/14/18(a)		1,861,296
	2,112,000	Westpac Banking Corp., GMTN, 4.322%, 11/23/31(c)		2,169,887
				75,238,208
		Capital Goods — 1.3%
	3,504,000	Allegion U.S. Holding Co., Inc., 3.200%, 10/1/24		3,493,103
	2,021,000	General Electric Co., Series D, 5.000%,(c)(d)		2,137,612
	2,162,000	Keysight Technologies, Inc., 4.600%, 4/6/27		2,274,303
	2,381,000	L3 Technologies, Inc., 3.850%, 12/15/26		2,470,359
	1,245,000	SBA Tower Trust, 2.898%, 10/8/19(b)		1,252,708
	2,023,000	Textron, Inc., 3.650%, 3/1/21		2,095,141
				13,723,226
		Commercial & Professional Services — 0.5%
	1,400,000	Republic Services, Inc., 3.550%, 6/1/22		1,459,587
	1,392,000	Waste Management, Inc., 4.100%, 3/1/45		1,470,707
	1,913,000	WPP Finance 2010, 3.625%, 9/7/22		1,983,547
				4,913,841
		Consumer Durables & Apparel — 0.7%
	1,807,000	Cintas Corp. No 2, 3.700%, 4/1/27		1,887,276
	2,001,000	Coach, Inc., 4.125%, 7/15/27		2,011,570
	1,864,000	Hanesbrands, Inc., 4.625%, 5/15/24(b)		1,940,890
	2,165,000	NVR, Inc., 3.950%, 9/15/22		2,260,261
				8,099,997
		Diversified Financials — 2.7%
	1,928,000	AerCap Ireland Capital, DAC/AerCap Global Aviation Trust, 4.250%, 7/1/20		2,014,220
	2,398,000	Ally Financial, Inc., 3.600%, 5/21/18		2,416,465
	2,651,000	American Express Credit Corp., MTN, 1.641%, (LIBOR USD 3-Month plus 0.33%), 5/3/19(a)		2,657,702

Principal     Amount			Fair Value
	CORPORATE BONDS — (continued)
		Diversified Financials — (continued)
	$1,609,000	Blackstone Holdings Finance Co., LLC, 4.450%, 7/15/45(b)	$	1,652,365
	974,000	General Electric Capital Corp., GMTN, 6.875%, 1/10/39		1,426,039
	5,110,000	Goldman Sachs Group, Inc. (The), 2.473%, (LIBOR USD 3-Month plus 1.16%), 4/23/20(a)		5,192,483
	2,577,000	Goldman Sachs Group, Inc. (The), 6.250%, 2/1/41		3,401,864
	768,000	Jefferies Group, LLC, 4.850%, 1/15/27		806,121
	4,819,000	Morgan Stanley, 2.750%, 5/19/22		4,845,665
	1,732,000	Morgan Stanley, 4.375%, 1/22/47		1,842,494
	2,606,000	National Rural Utilities Cooperative Finance Corp., 4.750%, 4/30/43(c)		2,705,462
				28,960,880
		Energy — 3.9%
	2,071,000	Andeavor, 5.375%, 10/1/22		2,132,644
	2,090,000	Buckeye Partners LP, 4.150%, 7/1/23		2,164,805
	2,200,000	Cheniere Corpus Christi Holdings, LLC, 5.125%, 6/30/27(b)		2,266,000
	1,968,000	Diamondback Energy, Inc., 4.750%, 11/1/24		2,007,360
	3,183,000	Enable Midstream Partners L.P., 3.900%, 5/15/24		3,200,004
	1,629,000	Energy Transfer LP/Regency Energy Finance Corp., 6.500%, 7/15/21		1,661,580
	2,633,000	Energy Transfer LP/Regency Energy Finance Corp., 5.000%, 10/1/22		2,843,901
	2,540,000	EnLink Midstream Partners LP, 5.050%, 4/1/45		2,447,099
	1,180,000	Enterprise Products Operating, LLC, 5.950%, 2/1/41		1,415,056
	1,010,000	Hess Corp., 7.875%, 10/1/29		1,225,774
	2,384,000	HollyFrontier Corp., 5.875%, 4/1/26		2,594,603
	2,124,000	MPLX L.P., 5.200%, 3/1/47		2,223,798
	1,837,000	Nabors Industries, Inc., 5.500%, 1/15/23		1,800,260
	856,000	NuStar Logistics LP, 8.150%, 4/15/18		881,680
	700,000	Occidental Petroleum Corp., 4.100%, 2/15/47		718,949
	3,182,000	ONEOK, Inc., 7.500%, 9/1/23		3,808,186
	1,831,000	QEP Resources, Inc., 5.375%, 10/1/22		1,798,957
	2,420,000	Sabine Pass Liquefaction, LLC, 5.625%, 3/1/25		2,669,587
	1,212,000	Shell International Finance BV, 4.550%, 8/12/43		1,315,968
	3,107,000	Williams Partners LP, 3.900%, 1/15/25		3,170,898
				42,347,109
		Food & Staples Retailing — 0.3%
	1,118,000	Alimentation Couche-Tard, Inc., 4.500%, 7/26/47(b)		1,160,595
	2,013,000	Reynolds American, Inc., 5.850%, 8/15/45		2,463,109
				3,623,704
		Food, Beverage & Tobacco — 0.6%
	2,087,000	Anheuser-Busch InBev Finance, Inc., 4.900%, 2/1/46		2,357,408
	2,465,000	Cott Holdings, Inc., 5.500%, 4/1/25(b)		2,569,763
	1,970,000	PepsiCo, Inc., 3.450%, 10/6/46		1,869,131
				6,796,302
		Health Care Equipment & Services — 0.5%
	1,754,000	Boston Scientific Corp., 3.375%, 5/15/22		1,799,688

Continued

92

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	CORPORATE BONDS — (continued)
		Health Care Equipment & Services — (continued)
	$3,431,000	Magellan Health, Inc., 4.400%, 9/22/24	$	3,419,135
				5,218,823
		Insurance — 5.1%
	2,291,000	American Equity Investment Life Holding Co., 5.000%, 6/15/27		2,374,331
	2,424,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		2,594,129
	1,800,000	Athene Global Funding, 2.875%, 10/23/18(b)		1,817,072
	2,561,000	Brighthouse Financial, Inc., 4.700%, 6/22/47(b)		2,501,746
	3,192,000	CBRE Services, Inc., 5.250%, 3/15/25		3,499,048
	1,960,000	Dai-ichi Life Insurance Co., Ltd. (The), 5.100%,(b)(c)(d)		2,097,200
	2,585,000	Horace Mann Educators Corp., 4.500%, 12/1/25		2,682,319
	2,180,000	KKR Group Finance Co. III, LLC, 5.125%, 6/1/44(b)		2,361,663
	1,750,000	Liberty Mutual Group, Inc., 7.800%, 3/15/37(b)		2,209,375
	2,432,000	Manulife Financial Corp., 4.061%, 2/24/32(c)		2,456,327
	288,000	Massachusetts Mutual Life Insurance Co., 8.875%, 6/1/39(b)		467,099
	2,000,000	Meiji Yasuda Life Insurance Co., 5.200%, 10/20/45(b)(c)		2,171,000
	1,000,000	MetLife, Inc., 7.717%, 2/15/19		1,079,197
	3,140,000	Nuveen Finance, LLC, 2.950%, 11/1/19(b)		3,192,241
	2,205,000	Ohio National Life Insurance Co., 6.875%, 6/15/42(b)		2,843,750
	1,715,000	Oil Insurance, Ltd., 4.317%,(b)(c)(d)		1,635,681
	1,947,000	Pacific LifeCorp, 5.125%, 1/30/43(b)		2,166,175
	1,825,000	Prudential Financial, Inc., 8.875%, 6/15/38(c)		1,911,687
	1,847,000	RenaissanceRe Finance, Inc., 3.450%, 7/1/27		1,820,373
	2,949,000	Sammons Financial Group, Inc., 4.450%, 5/12/27(b)		3,032,183
	2,049,000	Symetra Financial Corp., 4.250%, 7/15/24		2,083,001
	1,747,000	Transatlantic Holdings, Inc., 8.000%, 11/30/39		2,370,446
	1,796,000	Validus Holdings, Ltd., 8.875%, 1/26/40		2,598,083
	2,462,000	XLIT, Ltd., 4.450%, 3/31/25		2,521,088
				54,485,214
		Materials — 2.8%
	2,222,000	Albemarle Corp., 5.450%, 12/1/44		2,576,749
	2,586,000	Anglo American Capital PLC, 4.125%, 9/27/22(b)		2,686,943
	2,714,000	CRH America Finance, Inc., 4.400%, 5/9/47(b)		2,806,855
	1,713,000	EI du Pont de Nemours & Co., 1.841%, (LIBOR USD 3-Month plus 0.53%), 5/1/20(a)		1,727,448
	2,125,000	Freeport-McMoRan, Inc., 2.300%, 11/14/17		2,124,363
	2,476,000	Glencore Funding, LLC, 4.125%, 5/30/23(b)		2,577,640
	2,585,000	International Paper Co., 4.400%, 8/15/47		2,614,769
	2,129,000	Masco Corp., 4.375%, 4/1/26		2,260,998
	839,000	NOVA Chemicals Corp., 4.875%, 6/1/24(b)		849,487
	2,485,000	Sherwin-Williams Co. (The), 4.500%, 6/1/47		2,607,875
	2,302,000	Southern Copper Corp., 5.875%, 4/23/45		2,621,703
	1,632,000	Vulcan Materials Co., 4.500%, 6/15/47		1,655,603
	2,370,000	Westlake Chemical Corp., 5.000%, 8/15/46		2,577,952
				29,688,385
		Media — 1.4%
	4,882,000	Charter Communications Operating, LLC / Charter Communications Operating Capital, 6.484%, 10/23/45		5,729,894
	2,365,000	Comcast Corp., 4.200%, 8/15/34		2,514,133

Principal   Amount			Fair Value
	CORPORATE BONDS — (continued)
		Media — (continued)
	$2,581,000	Discovery Communications, LLC, 4.875%, 4/1/43	$	2,515,383
	4,684,000	NBCUniversal Enterprise, Inc., 1.735%, (LIBOR USD 3-Month plus 0.4%), 4/1/21(a)(b)		4,695,233
				15,454,643
		Pharmaceuticals, Biotechnology & Life Sciences — 0.5%
	2,416,000	Celgene Corp., 5.000%, 8/15/45		2,731,239
	2,140,000	Quintiles IMS Inc., 4.875%, 5/15/23(b)		2,225,600
				4,956,839
		Real Estate — 3.6%
	2,175,000	Alexandria Real Estate Equities, Inc., REIT, 2.750%, 1/15/20		2,196,570
	1,137,000	American Tower Corp., REIT, 5.050%, 9/1/20		1,225,674
	1,241,000	Brixmor Operating Partnership LP, REIT, 4.125%, 6/15/26		1,251,364
	2,270,000	Crown Castle International Corp., REIT, 4.450%, 2/15/26		2,403,416
	2,174,000	DDR Corp., REIT, 4.625%, 7/15/22		2,304,079
	739,000	Duke Realty LP, REIT, 3.250%, 6/30/26		730,799
	1,775,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(b)		1,959,383
	2,446,000	HCP, Inc., REIT, 4.000%, 6/1/25		2,523,022
	1,976,000	Healthcare Trust of America Holdings LP, REIT, 3.700%, 4/15/23		2,024,729
	1,622,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		1,658,616
	1,017,000	Hudson Pacific Properties L.P., REIT, 3.950%, 11/1/27		1,013,228
	709,000	iStar, Inc., REIT, 4.000%, 11/1/17		709,567
	155,000	iStar, Inc., REIT, 4.625%, 9/15/20		158,487
	2,504,000	iStar, Inc., REIT, 5.250%, 9/15/22		2,541,560
	1,872,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		1,962,882
	1,331,000	Kimco Realty Corp., REIT, 3.400%, 11/1/22		1,370,527
	550,000	Ontario Teachers’ Cadillac Fairview Properties Trust, 3.875%, 3/20/27(b)		565,931
	3,039,000	Physicians Realty L.P., REIT, 4.300%, 3/15/27		3,107,104
	639,000	Prologis LP, 3.750%, 11/1/25		668,705
	2,635,000	Spirit Realty L.P., REIT, 4.450%, 9/15/26		2,631,603
	2,792,000	VEREIT Operating Partnership L.P., REIT, 3.950%, 8/15/27		2,777,174
	2,500,000	WEA Finance, LLC / Westfield UK & Europe Finance PLC, REIT, 4.750%, 9/17/44(b)		2,576,825
	471,000	Welltower, Inc., REIT, 4.950%, 1/15/21		505,408
				38,866,653
		Retailing — 1.1%
	1,874,000	Dollar Tree, Inc., 5.750%, 3/1/23		1,977,070
	3,455,000	ERAC USA Finance, LLC, 4.200%, 11/1/46(b)		3,302,375
	2,228,000	Expedia, Inc., 3.800%, 2/15/28(b)		2,208,325
	1,796,000	The Home Depot, Inc., 5.875%, 12/16/36		2,332,840
	1,627,000	O’Reilly Automotive, Inc., 3.550%, 3/15/26		1,630,782
				11,451,392
		Semiconductors & Semiconductor Equipment — 0.4%
	2,990,000	Broadcom Corp. / Broadcom Cayman Finance, Ltd., 3.875%, 1/15/27(b)		3,079,611

Continued

93

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	CORPORATE BONDS — (continued)
		Semiconductors & Semiconductor Equipment — (continued)
	$1,388,000	QUALCOMM, Inc., 1.766%, (LIBOR USD 3-Month plus 0.45%), 5/20/20(a)	$	1,396,791
				4,476,402
		Software & Services — 0.5%
	2,500,000	DXC Technology Co., 4.250%, 4/15/24		2,630,298
	500,000	Gartner, Inc., 5.125%, 4/1/25(b)		527,500
	2,298,000	Microsoft Corp., 4.750%, 11/3/55		2,725,367
				5,883,165
		Technology Hardware & Equipment — 0.4%
	2,347,000	Dell International, LLC/EMC Corp., 6.020%, 6/15/26(b)		2,606,461
	2,050,000	Harris Corp., 4.854%, 4/27/35		2,258,481
				4,864,942
		Telecommunication Services — 1.7%
	1,068,000	AT&T, Inc., 3.400%, 8/14/24		1,069,663
	5,346,000	AT&T, Inc., 4.900%, 8/14/37		5,402,913
	3,525,000	AT&T, Inc., 4.750%, 5/15/46		3,389,962
	1,185,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(b)		1,266,155
	3,714,000	Sprint Spectrum Co., LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC, 3.360%, 9/20/21(b)		3,769,710
	3,393,000	Verizon Communications, Inc., 5.012%, 4/15/49		3,469,053
				18,367,456
		Transportation — 0.7%
	2,619,000	Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41		3,022,399
	2,295,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(b)		2,499,179
	2,100,000	Ryder System, Inc., MTN, 2.500%, 5/11/20		2,120,801
				7,642,379
		Utilities — 0.9%
	2,275,000	CMS Energy Corp., 4.700%, 3/31/43		2,465,054
	2,385,000	Dominion Energy, Inc., 2.579%, 7/1/20		2,404,902
	2,425,000	Indiana Michigan Power Co., Series K, 4.550%, 3/15/46		2,694,337
	1,903,000	Progress Energy, Inc., 3.150%, 4/1/22		1,939,244
				9,503,537
		Total Corporate Bonds (Cost $396,422,336)		404,923,730
	MORTGAGE-BACKED SECURITIES — 9.0%
		Fannie Mae — 4.5%
	10,170	5.000%, 8/1/20, Pool #832058		10,405
	43,193	6.000%, 7/1/22, Pool #944967		43,711
	76,737	5.000%, 9/1/25, Pool #255892		83,667
	2,396,739	4.000%, 6/1/34, Pool #MA1922		2,546,806
	86,581	6.500%, 1/1/35, Pool #809198		95,943
	2,330,020	4.000%, 3/1/35, Pool #MA2211		2,476,232
	50,854	7.000%, 6/1/35, Pool #255820		56,698
	93,640	6.500%, 3/1/36, Pool #866062		103,766
	94,089	6.500%, 7/1/36, Pool #885493		104,263
	929,900	5.500%, 8/1/37, Pool #995082		1,042,326
	596,236	4.500%, 10/1/39, Pool #AC2645		643,276
	415,320	5.000%, 6/1/40, Pool #AD4927		454,038

Principal   Amount			Fair Value
	MORTGAGE-BACKED SECURITIES — (continued)
		Fannie Mae — (continued)
	$    319,227	5.000%, 6/1/40, Pool #AD8718	$	348,638
	1,178,909	4.500%, 12/1/40, Pool #AH1100		1,276,161
	411,342	4.500%, 3/1/41, Pool #AB2467		448,884
	733,030	4.500%, 5/1/41, Pool #AI1023		789,031
	566,901	4.500%, 11/1/41, Pool #AJ4994		613,613
	879,262	4.500%, 12/1/41, Pool #AJ7696		951,025
	1,888,603	3.500%, 6/1/42, Pool #AB5373		1,955,039
	2,676,708	3.500%, 5/1/43, Pool #AB9368		2,765,169
	1,751,156	3.500%, 5/1/43, Pool #AL3605		1,819,361
	2,822,930	3.500%, 8/1/43, Pool #AU0613		2,928,752
	1,336,495	4.500%, 11/1/44, Pool #MA2100		1,437,138
	2,734,717	4.500%, 1/1/45, Pool #MA2158		2,939,761
	4,353,400	4.000%, 3/1/45, Pool #MA2217		4,587,696
	3,650,383	4.000%, 6/1/46, Pool #MA2653		3,845,048
	4,877,166	4.500%, 7/1/46, Pool #AS7568		5,237,656
	1,970,712	4.000%, 11/1/46, Pool #MA2808		2,076,134
	6,708,680	4.000%, 8/1/47, Pool #BH5117		7,066,848
				48,747,085
		Freddie Mac — 4.5%
	75,161	5.500%, 10/1/21, Pool #G12425		78,859
	73,157	5.000%, 12/1/21, Pool #J04025		75,056
	121,782	5.000%, 7/1/25, Pool #C90908		132,253
	377,884	2.500%, 1/1/28, Pool #J22069		383,118
	1,443,051	3.500%, 7/1/30, Pool #G18562		1,509,078
	238,014	4.000%, 11/1/31, Pool #C91410		253,195
	115,208	5.000%, 3/1/36, Pool #G08115		126,342
	4,044,646	4.000%, 4/1/36, Pool #C91874		4,303,927
	18,868	6.500%, 5/1/36, Pool #A48509		20,914
	5,865,238	3.500%, 6/1/36, Pool #C91875		6,109,351
	32,857	5.000%, 7/1/36, Pool #G02291		36,033
	3,343,697	3.500%, 8/1/36, Pool #C91888		3,482,973
	356,853	6.500%, 9/1/36, Pool #G08152		399,998
	6,620,699	3.500%, 11/1/36, Pool #C91906		6,896,474
	117,963	5.000%, 2/1/37, Pool #A57714		129,197
	3,525,768	4.000%, 5/1/37, Pool #C91938		3,749,580
	137,703	4.500%, 10/1/39, Pool #A89346		148,194
	464,955	5.000%, 6/1/40, Pool #C03479		509,885
	1,217,634	5.000%, 7/1/40, Pool #A93070		1,335,922
	148,222	5.000%, 9/1/40, Pool #C03518		161,965
	1,542,480	4.000%, 12/1/42, Pool #G07266		1,630,514
	1,205,198	3.500%, 5/1/43, Pool #Q18305		1,248,951
	974,426	4.000%, 5/1/44, Pool #V81186		1,026,314
	469,573	4.000%, 7/1/44, Pool #G08595		494,606
	489,030	4.000%, 9/1/44, Pool #Q28299		515,067
	2,572,737	4.000%, 8/1/46, Pool #G08717		2,709,719
	10,000,000	3.500%, 9/1/47, Pool #Q50962		10,321,896
				47,789,381
		Ginnie Mae — 0.0%
	227,224	5.000%, 2/15/40, Pool #737037		249,139
		Total Mortgage-Backed Securities (Cost $96,900,814)		96,785,605
	MUNICIPAL BONDS — 7.0%
		Alabama — 0.3%
	3,000,000	Alabama Economic Settlement Authority, Economic Imports, Taxable BP - Settlement Revenue, Series B, 4.263%, 9/15/32		3,166,560

Continued

94

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		California — 2.0%
	$1,889,000	California Institute of Technology, 4.283%, 9/1/16	$	1,718,028
	3,700,000	Metropolitan Water District of Southern California, Build America Bonds, Water Utility Improvements Revenue, Callable 7/1/19 @ 100, 6.538%, 7/1/39		3,982,939
	2,100,000	Sacramento County Sanitation Districts Financing Authority, Refunding Revenue, Taxable, Series B, 2.810%, 12/1/21		2,145,633
	9,640,000	State of California Txbl-High-Speed Passenger Trai Transit Imps General Obligation Unltd, 2.367%, 4/1/22		9,716,927
	1,285,000	State of California, Build America Bonds, School Improvements G.O., 7.625%, 3/1/40		1,967,129
	1,850,000	University of California, University & College Improvements, Taxable Revenue, Series AN, 3.338%, 5/15/22		1,920,947
				21,451,603
		Connecticut — 0.3%
	3,000,000	State of Connecticut Special Tax Revenue, Build America Bonds, Transition Infrastructure, Series B, 4.126%, 11/1/20		3,126,330
		District of Columbia — 0.2%
	1,835,000	George Washington University (The), Series 2012, 3.485%, 9/15/22		1,906,393
		Hawaii — 0.0%
	750,000	State of Hawaii, Public Improvements G.O., Taxable, Series FJ, 1.921%, 10/1/22		733,500
		Illinois — 0.4%
	1,800,000	State of Illinois, Public Improvements, Taxable Building Revenue, 3.481%, 6/15/26		1,800,540
	3,130,000	State of Illinois, Public Improvements, Taxable Revenue, Series B, 2.620%, 6/15/26		2,929,899
				4,730,439
		Kentucky — 0.3%
	2,900,000	Lexington-Fayette Urban County Airport Board, Taxable Revenue, Series C, 2.450%, 7/1/23		2,893,040
		New Jersey — 0.5%
	1,335,000	New Jersey Economic Development Authority, Advance Refunding Revenue, Series B, 5.000%, 11/1/19		1,418,571
	2,375,000	New Jersey Economic Development Authority, School Facilities Construction Refunding Revenue, Taxable, Series C, 4.521%, 6/15/21		2,461,521
	1,305,000	New Jersey Economic Development Authority, School Facilities Construction, Refunding Revenue, Series 00, 1.648%, 3/1/18		1,300,837
				5,180,929
		New York — 0.8%
	3,020,000	New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Taxable Revenue, Callable 2/1/27 @ 100, 3.330%, 2/1/28		3,046,516
	2,000,000	New York State Dormitory Authority, Public Improvements, Taxable Revenue, Series D, 2.550%, 3/15/21		2,024,400

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		New York — (continued)
	$    750,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.445%, 6/15/20	$	752,940
	900,000	New York State Environmental Facilities Corp., State Revolving Funds, Refunding Revenue, Taxable, Series C, 2.745%, 6/15/22		901,350
	1,640,000	New York, NY, Build America Bonds, Public Improvements G.O., 4.874%, 3/1/21		1,765,542
				8,490,748
		North Carolina — 0.2%
	2,600,000	Duke University, 3.299%, 10/1/46		2,549,454
		Ohio — 0.5%
	5,658,000	Premier Health Partners, Series G, Callable 5/15/26 @ 100, 2.911%, 11/15/26		5,419,308
		Pennsylvania — 0.7%
	1,005,000	Commonwealth Financing Authority, School Improvements, Taxable Revenue, Series A, 4.014%, 6/1/33		1,053,531
	4,375,000	Lehigh University, 3.479%, 11/15/46		4,128,629
	2,260,000	Philadelphia Authority for Industrial Development, Refunding Revenue, Taxable, 3.664%, 4/15/22		2,277,063
				7,459,223
		Texas — 0.5%
	4,100,000	New Hope Cultural Education Facilities Finance Corp., Texas A&M University Cain Hall Red & College Improvements, Taxable Revenue, 1.806%, 4/1/21		4,023,043
	1,500,000	Texas Transportation Commission State Highway, Highway Improvements, Series A, 4.000%, 10/1/17		1,500,270
				5,523,313
		Washington — 0.3%
	3,000,000	Port of Seattle Wa Txbl-Ref-Intermediate Lien-Ser Advance Refunding Revenue Bonds, 2.430%, 5/1/22		2,996,970
		Total Municipal Bonds (Cost $75,312,010)		75,627,810
	U.S. GOVERNMENT AGENCIES — 0.4%
		Federal Home Loan Bank — 0.4%
	4,105,000	2.900%, 6/28/27		4,056,820
		Total U.S. Government Agencies (Cost $4,105,000)		4,056,820
	U.S. TREASURY BONDS — 2.7%
	15,905,900	3.125%, 2/15/43		16,783,831
	13,124,700	2.500%, 2/15/45		12,240,833
		Total U.S. Treasury Bonds (Cost $28,666,728)		29,024,664
	U.S. TREASURY NOTES — 7.2%
	31,034,000	1.123%, (US Treasury Bill Yield 3-Month plus 0.07%), 4/30/19(a)		31,051,759
	3,852,100	1.375%, 4/30/20		3,832,839
	31,986,600	1.875%, 2/28/22		31,996,596

Continued

95

Sterling Capital Total Return Bond Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	U.S. TREASURY NOTES — (continued)
	$8,968,900	3.500%, 2/15/39	$	10,127,149
		Total U.S. Treasury Notes (Cost $76,708,811)		77,008,343
Shares
	PREFERRED STOCKS — 0.2%
		Banks — 0.2%
	65,135	US Bancorp, Series F, 6.500%		1,898,685
		Total Preferred Stocks (Cost $1,712,906).		1,898,685
	MONEY MARKET FUND — 1.8%
	19,932,986	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(e)		19,932,986
		Total Money Market Fund (Cost $19,932,986)		19,932,986
	Total Investments — 100.5% (Cost $1,072,366,032)			1,082,144,458
	Net Other Assets (Liabilities) — (0.5)%			(5,452,434	)
	NET ASSETS — 100.0%		$	1,076,692,024

(a) The interest rate for this floating rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. 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) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

(d) Security is perpetual in nature and has no stated maturity date.

(e) 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.

96

Sterling Capital Corporate Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount		Fair Value
CORPORATE BONDS —98.9%
	Automobiles & Components — 1.1%
$    78,000	General Motors Financial Co., Inc., 3.200%, 7/13/20	$	79,880
250,000	Hyundai Capital America, 2.000%, 3/19/18(a)		250,091
			329,971
	Banks — 17.3%
200,000	Associated Banc-Corp., 2.750%, 11/15/19		202,649
750,000	Bank of America Corp., GMTN, 3.300%, 1/11/23		768,339
375,000	Bank of America Corp., Series K, 8.000%,(b)(c)		380,363
233,000	Bank of Nova Scotia (The), BKNT, 2.450%, 3/22/21		234,431
300,000	Barclays PLC, 4.337%, 1/10/28		309,748
235,000	Citigroup, Inc., 2.650%, 10/26/20		237,415
400,000	Citigroup, Inc., 4.400%, 6/10/25		421,100
250,000	Citizens Bank NA, BKNT, 2.127%, (LIBOR USD 3-Month plus 0.81%), 5/26/22(d)		249,315
300,000	HSBC Holdings PLC, 3.262%, 3/13/23(c)		306,203
475,000	JPMorgan Chase & Co., 3.875%, 9/10/24		494,602
370,000	JPMorgan Chase & Co., Series 1, 7.900%,(b)(c)		381,100
225,000	KeyCorp, MTN, 5.100%, 3/24/21		245,218
255,000	National City Corp., 6.875%, 5/15/19		274,406
165,000	Royal Bank of Scotland Group PLC, 4.700%, 7/3/18		167,909
335,000	Sumitomo Mitsui Financial Group, Inc., 3.364%, 7/12/27		336,642
150,000	US Bancorp, MTN, 2.950%, 7/15/22		153,513
			5,162,953
	Capital Goods — 6.0%
217,000	Allegion U.S. Holding Co., Inc., 3.200%, 10/1/24		216,325
327,000	General Electric Co., Series D, 5.000%,(b)(c)		345,868
228,000	Keysight Technologies, Inc., 4.600%, 4/6/27		239,843
219,000	L3 Technologies, Inc., 3.850%, 12/15/26		227,219
115,000	Roper Technologies, Inc., 2.800%, 12/15/21		116,053
300,000	SBA Tower Trust, 2.898%, 10/8/19(a)		301,857
345,000	Textron, Inc., 3.650%, 3/1/21		357,303
			1,804,468
	Commercial & Professional Services — 0.5%
135,000	Waste Management, Inc., 4.600%, 3/1/21		144,858
	Consumer Durables & Apparel — 2.1%
150,000	Hanesbrands, Inc., 4.625%, 5/15/24(a)		156,187
230,000	Mohawk Industries, Inc., 3.850%, 2/1/23		238,976
220,000	NVR, Inc., 3.950%, 9/15/22		229,680
			624,843
	Diversified Financials — 11.1%
249,000	AerCap Ireland Capital, DAC/AerCap Global Aviation Trust, 4.250%, 7/1/20		260,135
190,000	Ares Finance Co., LLC, 4.000%, 10/8/24(a)		182,379
210,000	Blackstone Holdings Finance Co., LLC, 6.625%, 8/15/19(a)		227,595
224,000	Carlyle Holdings Finance, LLC, 3.875%, 2/1/23(a)		231,683
250,000	Credit Suisse Group AG, 4.282%, 1/9/28(a)		260,404

Principal   Amount		Fair Value
CORPORATE BONDS — (continued)
	Diversified Financials — (continued)
$    270,000	Goldman Sachs Group, Inc. (The), 2.473%, (LIBOR USD 3-Month plus 1.16%), 4/23/20(d)	$	274,358
315,000	Goldman Sachs Group, Inc. (The), 3.625%, 1/22/23		326,375
378,000	Goldman Sachs Group, Inc. (The), 4.250%, 10/21/25		394,082
60,000	Jefferies Group, LLC, 4.850%, 1/15/27		62,978
200,000	KKR Group Finance Co., LLC, 6.375%, 9/29/20(a)		222,927
157,000	Morgan Stanley, GMTN, 5.500%, 7/24/20		170,551
210,000	Nationwide Financial Services, Inc., 5.375%, 3/25/21(a)		228,129
190,000	ORIX Corp., 2.900%, 7/18/22		190,721
295,000	TD Ameritrade Holding Corp., 3.300%, 4/1/27		296,847
			3,329,164
	Energy — 8.2%
146,000	Andeavor, 5.375%, 10/1/22		150,346
151,000	Cheniere Corpus Christi Holdings, LLC, 5.125%, 6/30/27(a)		155,530
189,000	Diamondback Energy, Inc., 4.750%, 11/1/24		192,780
223,000	Enable Midstream Partners L.P., 3.900%, 5/15/24		224,191
235,000	Energy Transfer LP/Regency Energy Finance Corp., 6.500%, 7/15/21		239,700
89,000	Hess Corp., 7.875%, 10/1/29		108,014
147,000	HollyFrontier Corp., 5.875%, 4/1/26		159,986
213,000	MPLX L.P., 4.125%, 3/1/27		216,872
214,000	ONEOK, Inc., 7.500%, 9/1/23		256,113
108,000	QEP Resources, Inc., 5.375%, 10/1/22		106,110
137,000	Sabine Pass Liquefaction, LLC, 5.625%, 3/1/25		151,129
243,000	Western Gas Partners LP, 4.000%, 7/1/22		251,081
230,000	Williams Partners LP, 3.900%, 1/15/25		234,730
			2,446,582
	Food, Beverage & Tobacco — 0.6%
185,000	Cott Holdings, Inc., 5.500%, 4/1/25(a)		192,863
	Health Care Equipment & Services — 1.4%
190,000	Boston Scientific Corp., 3.375%, 5/15/22		194,949
217,000	Magellan Health, Inc., 4.400%, 9/22/24		216,250
			411,199
	Insurance — 15.3%
255,000	Alleghany Corp., 4.950%, 6/27/22		279,844
147,000	American Equity Investment Life Holding Co., 5.000%, 6/15/27		152,347
260,000	Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23		278,248
350,000	Athene Global Funding, 2.875%, 10/23/18(a)		353,320
280,000	CBRE Services, Inc., 5.250%, 3/15/25		306,934
303,000	Horace Mann Educators Corp., 4.500%, 12/1/25		314,407
245,000	Liberty Mutual Group, Inc., 4.250%, 6/15/23(a)		261,685
660,000	Morgan Stanley, GMTN, 3.700%, 10/23/24		683,743
224,000	Nuveen Finance, LLC, 2.950%, 11/1/19(a)		227,727
200,000	Ohio National Financial Services, Inc., 6.375%, 4/30/20(a)		218,024
165,000	Oil Insurance, Ltd., 4.317%,(a)(b)(c)		157,369
200,000	Pacific LifeCorp, 6.000%, 2/10/20(a)		215,637
145,000	Prudential Financial, Inc., 8.875%, 6/15/38(c)		151,887

Continued

97

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount		Fair Value
CORPORATE BONDS — (continued)
	Insurance — (continued)
$167,000	RenaissanceRe Finance, Inc., 3.450%, 7/1/27	$	164,593
220,000	Sammons Financial Group, Inc., 4.450%, 5/12/27(a)		226,206
270,000	Symetra Financial Corp., 4.250%, 7/15/24		274,480
295,000	XLIT, Ltd., 4.450%, 3/31/25		302,080
			4,568,531
	Materials — 5.4%
200,000	Anglo American Capital PLC, 4.125%, 9/27/22(a)		207,807
200,000	CRH America Finance, Inc., 3.400%, 5/9/27(a)		200,909
140,000	FMC Corp., 3.950%, 2/1/22		143,878
246,000	Glencore Funding, LLC, 4.125%, 5/30/23(a)		256,098
210,000	Masco Corp., 4.375%, 4/1/26		223,020
62,000	NOVA Chemicals Corp., 4.875%, 6/1/24(a)		62,775
367,000	Sherwin-Williams Co. (The), 3.450%, 6/1/27		369,552
155,000	Westlake Chemical Corp., 4.875%, 5/15/23		161,200
			1,625,239
	Media — 3.3%
350,000	Charter Communications Operating, LLC / Charter Communications Operating Capital, 4.908%, 7/23/25		374,155
110,000	Comcast Cable Communications Holdings, Inc., 9.455%, 11/15/22(e)		146,228
218,000	Discovery Communications, LLC, 3.950%, 3/20/28		216,438
240,000	ERAC USA Finance, LLC, 2.800%, 11/1/18(a)		241,957
			978,778
	Pharmaceuticals, Biotechnology & Life Sciences — 1.0%
295,000	Quintiles IMS Inc., 4.875%, 5/15/23(a)		306,800
	Real Estate — 10.8%
192,000	Alexandria Real Estate Equities, Inc., REIT, 4.600%, 4/1/22		204,878
300,000	American Tower Corp., REIT, 5.050%, 9/1/20		323,397
80,000	Brixmor Operating Partnership LP, REIT, 4.125%, 6/15/26		80,668
204,000	DDR Corp., REIT, 4.625%, 7/15/22		216,206
300,000	Goodman Funding Pty, Ltd., REIT, 6.375%, 11/12/20(a)(e)		331,163
200,000	HCP, Inc., REIT, 4.000%, 6/1/25		206,298
230,000	Healthcare Trust of America Holdings LP, REIT, 3.375%, 7/15/21		236,338
233,000	Host Hotels & Resorts LP, REIT, Series D, 3.750%, 10/15/23		238,260
79,000	Hudson Pacific Properties L.P., REIT, 3.950%, 11/1/27(f)		78,707
109,000	iStar, Inc., REIT, 4.000%, 11/1/17		109,087
18,000	iStar, Inc., REIT, 4.625%, 9/15/20		18,405
141,000	iStar, Inc., REIT, 5.250%, 9/15/22		143,115
233,000	Jones Lang LaSalle, Inc., 4.400%, 11/15/22		244,312
208,000	Kimco Realty Corp. REIT, 3.400%, 11/1/22		214,177
189,000	Physicians Realty L.P., REIT, 4.300%, 3/15/27		193,235
79,000	Prologis LP, 3.750%, 11/1/25		82,672
106,000	Scentre Group Trust 1 / Scentre Group Trust 2, REIT, 3.750%, 3/23/27(a)		107,516
63,000	VEREIT Operating Partnership L.P., REIT, 3.950%, 8/15/27		62,665

Principal   Amount		Fair Value
CORPORATE BONDS — (continued)
	Real Estate — (continued)
$145,000	Vornado Realty L.P., REIT, 2.500%, 6/30/19	$	145,865
			3,236,964
	Retailing — 3.0%
220,000	Alimentation Couche-Tard, Inc., 2.700%, 7/26/22(a)		220,713
150,000	Coach, Inc., 3.000%, 7/15/22		149,824
155,000	Dollar Tree, Inc., 5.750%, 3/1/23		163,525
145,000	Expedia, Inc., 3.800%, 2/15/28(a)		143,719
220,000	O’Reilly Automotive, Inc., 3.550%, 3/15/26		220,511
			898,292
	Semiconductors & Semiconductor Equipment — 2.1%
158,000	Broadcom Corp. / Broadcom Cayman Finance, Ltd., 3.875%, 1/15/27(a)		162,735
250,000	Intel Corp., 1.659%, (LIBOR USD 3-Month plus 0.35%), 5/11/22(d)		250,695
200,000	NXP BV / NXP Funding, LLC, 4.125%, 6/1/21(a)		209,250
			622,680
	Software & Services — 0.8%
225,000	VMware, Inc., 2.950%, 8/21/22		226,344
	Technology Hardware & Equipment — 0.6%
157,000	Dell International, LLC/EMC Corp., 6.020%, 6/15/26(a)		174,356
	Telecommunication Services — 4.6%
230,000	AT&T, Inc., 3.000%, 6/30/22(e)		232,239
294,000	AT&T, Inc., 3.400%, 8/14/24		294,458
300,000	Crown Castle Towers, LLC, 6.113%, 1/15/20(a)(e)		320,546
205,000	Sprint Spectrum Co., LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC, 3.360%, 9/20/21(a)		208,075
277,000	Verizon Communications, Inc., 5.150%, 9/15/23		310,508
			1,365,826
	Transportation — 1.4%
250,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 4.875%, 7/11/22(a)		272,242
146,000	Ryder System, Inc., MTN, 2.350%, 2/26/19		146,720
			418,962
	Utilities — 2.3%
200,000	Dominion Energy, Inc., 5.200%, 8/15/19		211,367
220,000	Dominion Energy, Inc., 2.579%, 7/1/20		221,836
235,000	Southern Co. (The), 2.750%, 6/15/20		238,873
			672,076
	Total Corporate Bonds (Cost $29,009,814)		29,541,749

Continued

98

Sterling Capital Corporate Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	MONEY MARKET FUND — 1.4%
	425,863	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(g)	$	425,863
		Total Money Market Fund (Cost $425,863)		425,863
	Total Investments — 100.3% (Cost $29,435,677)			29,967,612
	Net Other Assets (Liabilities) — (0.3)%			(81,400	)
	NET ASSETS — 100.0%		$	29,886,212

(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) Security is perpetual in nature and has no stated maturity date.

(c) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

(d) The interest rate for this floating rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

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

(f) Represents securities purchased on a when-issued basis. At September 30, 2017, total cost of investments purchased on a when-issued basis was $78,854.

(g) 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.

99

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	ASSET BACKED SECURITIES — 23.4%
	$565,000	Aegis Asset Backed Securities Trust, Series 2005-5, Class 1A4, 1.587%, (LIBOR USD 1-Month plus 0.35%), 12/25/35(a)	$	539,064
	400,000	AmeriCredit Automobile Receivables Trust, Series 2016-4, Class B, 1.830%, 12/8/21		397,114
	663,000	AmeriCredit Automobile Receivables Trust, Series 2017-1, Class C, 2.710%, 8/18/22		665,087
	191,651	Argent Securities, Inc. Pass Through Certificates, Series 2005-W3, Class A2D, 1.577%, (LIBOR USD 1-Month plus 0.34%), 11/25/35(a)		191,354
	500,000	Avis Budget Rental Car Funding AESOP, LLC, Series 2017-1A, Class A, 3.070%, 9/20/23(b)		504,021
	300,000	Bear Stearns Asset Backed Securities I Trust, Series 2004-BO1, Class M5, 2.637%, (LIBOR USD 1-Month plus 1.4%), 10/25/34(a)		302,417
	145,768	Bear Stearns Asset Backed Securities I Trust, Series 2004-HE11, Class M2, 2.812%, (LIBOR USD 1-Month plus 1.58%), 12/25/34(a)		149,380
	450,000	Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.150%, 6/15/39		594,752
	145,465	Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 5.254%, 6/25/37		149,088
	420,000	Discover Card Execution Note Trust, Series 2017-A4, Class A4, 2.530%, 10/15/26		420,861
	640,000	Encore Credit Receivables Trust, Series 2005-4, Class M2, 1.677%, (LIBOR USD 1-Month plus 0.44%), 1/25/36(a)		635,958
	15,000	Ford Credit Auto Owner Trust, Series 2014-B, Class C, 1.950%, 2/15/20		15,032
	422,463	GSAMP Trust, Series 2006-SEA1, Class M1, 1.737%, (LIBOR USD 1-Month plus 0.5%), 5/25/36(a)(b)		416,915
	460,000	Home Equity Asset Trust, Series 2005-7, Class M1, 1.687%, (LIBOR USD 1-Month plus 0.45%), 1/25/36(a)		460,496
	194,685	Home Equity Asset Trust, Series 2005-8, Class M1, 1.667%, (LIBOR USD 1-Month plus 0.43%), 2/25/36(a)		195,247
	500,000	JP Morgan Mortgage Acquisition Corp., Series 2005-OPT1, Class M2, 1.942%, (LIBOR USD 1-Month plus 0.71%), 6/25/35(a)		499,376
	177,090	Long Beach Mortgage Loan Trust, Series 2006-WL2, Class 2A3, 1.437%, (LIBOR USD 1-Month plus 0.2%), 1/25/36(a)		176,405
	279,414	Morgan Stanley Home Equity Loan Trust, Series 2005-3, Class M2, 1.942%, (LIBOR USD 1-Month plus 0.71%), 8/25/35(a)		280,505
	500,000	New Century Home Equity Loan Trust, Series 2005-4, Class M2, 1.747%, (LIBOR USD 1-Month plus 0.51%), 9/25/35(a)		495,394
	450,000	Park Place Securities, Inc., Series 2005-WHQ2, Class M2, 1.927%, (LIBOR USD 1-Month plus 0.69%), 5/25/35(a)		450,977
	350,184	Park Place Securities, Inc. Pass Through Certificates, Series 2005-WCW3, Class M1, 1.717%, (LIBOR USD 1-Month plus 0.48%), 8/25/35(a)		348,646

Principal   Amount			Fair Value
	ASSET BACKED SECURITIES — (continued)
	$320,000	RAMP Trust, Series 2005-RZ4, Class M2, 1.737%, (LIBOR USD 1-Month plus 0.5%), 11/25/35(a)	$	310,933
	221,111	Saxon Asset Securities Trust, Series 2004-3, Class M1, 2.137%, (LIBOR USD 1-Month plus 0.9%), 12/26/34(a)		215,049
	236,470	Securitized Asset Backed Receivables, LLC Trust, Series 2005-OP2, Class A2C, 1.557%, (LIBOR USD 1-Month plus 0.32%), 10/25/35(a)		236,335
	202,534	United States Small Business Administration, Series 2010-20D, Class 1, 4.360%, 4/1/30		214,873
	430,849	United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35		436,604
		Total Asset Backed Securities (Cost $8,937,763)		9,301,883
	COLLATERALIZED MORTGAGE OBLIGATIONS — 25.0%
	128,815	Banc of America Alternative Loan Trust, Series 2004-10, Class 1CB1, 6.000%, 11/25/34		135,405
	285,335	Banc of America Funding Trust, Series 2005-B, Class 3A1, 1.466%, (LIBOR USD 1-Month plus 0.23%), 4/20/35(a)		284,123
	77,260	Banc of America Mortgage Trust, Series 2005-3, Class 1A24, 5.500%, 4/25/35		78,182
	91,790	Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A4, 5.500%, 2/25/35		93,336
	74,426	Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19		75,452
	148,267	Countrywide Alternative Loan Trust, Series 2004-22CB, Class 1A1, 6.000%, 10/25/34		152,673
	86,328	Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34		88,348
	22,483	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-2, Class 4A1, 5.250%, 2/25/20		22,449
	175,411	Credit Suisse First Boston Mortgage Securities Corp., Series 2004-1, Class 2A1, 6.500%, 2/25/34		187,668
	2,445	Credit Suisse First Boston Mortgage Securities Corp., Series 2005-6, Class 2A3, 5.500%, 7/25/35		2,488
	30,906	Fannie Mae, Series 2003-19, Class AR, 5.500%, 3/25/33		34,418
	328,000	Fannie Mae, Series 2005-110, Class GL, 5.500%, 12/25/35		370,491
	180,000	Fannie Mae, Series 2011-131, Class PB, 4.500%, 12/25/41		199,677
	443,000	Fannie Mae, Series 2013-2, Class LB, 3.000%, 2/25/43		422,698
	531,000	Fannie Mae, Series 2013-30, Class PY, 3.000%, 4/25/43		529,733
	168,545	FirstKey Mortgage Trust, Series 2014-1, Class A12, 3.500%, 11/25/44(b)(c)		171,752
	31,640	Freddie Mac, Series 4079, Class WV, 3.500%, 3/15/27		32,688
	195,000	Freddie Mac, Series 4097, Class CU, 1.500%, 8/15/27		171,814
	336,263	Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27		347,515

Continued

100

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	COLLATERALIZED MORTGAGE OBLIGATIONS — (continued)
	$700,532	Freddie Mac, Series 2525, Class AM, 4.500%, 4/15/32	$	750,418
	230,921	Freddie Mac, Series 2485, Class WG, 6.000%, 8/15/32		256,819
	136,716	Freddie Mac, Series 3440, Class EM, 5.000%, 4/15/38		149,800
	466,278	Freddie Mac, Series 3816, Class HM, 4.500%, 5/15/40		503,443
	500,000	Freddie Mac, Series 3714, Class PB, 4.750%, 8/15/40		569,288
	665,000	Freddie Mac, Series 3762, Class LN, 4.000%, 11/15/40		717,152
	107,166	Freddie Mac, Series 3803, Class PJ, 4.250%, 1/15/41		112,859
	200,000	Freddie Mac, Series 3815, Class TB, 4.500%, 2/15/41		221,612
	400,000	Freddie Mac, Series 3989, Class JW, 3.500%, 1/15/42		414,237
	500,000	Freddie Mac, Series 4650, Class BC, 3.500%, 5/15/43		515,920
	448,998	Freddie Mac, Series 4648, Class E, 3.500%, 8/15/43		463,713
	94,007	Ginnie Mae, Series 2010-85, Class DQ, 3.000%, 12/20/39		95,325
	575,000	Ginnie Mae, Series 2012-16, Class GC, 3.500%, 12/20/39		599,137
	265,691	MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33		270,580
	65,813	MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35		66,083
	35,686	MASTR Seasoned Securitization Trust, Series 2005-2, Class 1A1, 5.130%, 10/25/32		35,776
	41,082	PHHMC Trust, Series 2007-6, Class A1, 5.879%, 12/18/37(c)		41,996
	96,353	RALI Trust, Series 2005-QR1, Class A, 6.000%, 10/25/34		98,192
	71,701	RBSGC Mortgage Loan Trust, Series 2007-B, Class 3A1, 4.921%, 7/25/35(c)		72,625
	143,443	Specialty Underwriting & Residential Finance Trust, Series 2004-AA1, Class 1A1, 5.000%, 10/25/34		143,823
	308,478	Structured Adjustable Rate Mortgage Loan Trust, Series 2004-6, Class 4A1, 3.448%, 6/25/34(c)		310,601
	17,205	Wells Fargo Mortgage Backed Securities Trust, Series 2007-3, Class 3A1, 5.500%, 4/25/22		17,540
	106,468	Wells Fargo Mortgage Backed Securities Trust, Series 2005-4, Class A4, 5.000%, 4/25/35		107,330
		Total Collateralized Mortgage Obligations (Cost $9,807,062)		9,935,179
	COMMERCIAL MORTGAGE-BACKED SECURITIES — 23.2%
	299,306	BCAP, LLC Trust, Series 2013-RR4, Class A4A2, 2.000%, 2/13/51(b)		299,009
	500,000	CD Mortgage Trust, Series 2016-CD2, Class A4, 3.526%, 11/10/49(c)		517,014
	300,000	Citigroup Commercial Mortgage Trust, Series 2013-GC17, Class AS, 4.544%, 11/10/46		323,570
	180,000	COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/10/47		186,988

Principal   Amount			Fair Value
	COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued)
	$250,000	COMM Mortgage Trust, Series 2017-COR2, Class A3, 3.510%, 9/10/50	$	256,535
	100,000	Commercial Mortgage Loan Trust, Series 2008-LS1, Class ASM, 6.267%, 12/10/49(c)		99,897
	500,000	CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4, 3.718%, 8/15/48		521,969
	200,000	DBUBS Mortgage Trust, Series 2011-LC1A, Class C, 5.685%, 11/10/46(b)(c)		217,228
	500,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K063, Class A2, 3.430%, 1/25/27(c)		523,812
	500,000	Freddie Mac Multifamily Structured Pass Through Certificates, Series K153, Class A3, 3.117%, 10/25/31(c)		497,115
	499,715	FRESB Mortgage Trust, Series 2017-SB36, Class A10F, 2.880%, 7/25/27(c)		498,835
	175,000	GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(b)		184,769
	300,000	GS Mortgage Securities Trust, Series 2012-GCJ7, Class AS, 4.085%, 5/10/45		314,731
	370,000	GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47		392,596
	500,000	GS Mortgage Securities Trust, Series 2016-GS4, Class A4, 3.442%, 11/10/49(c)		513,726
	70,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2010-C1, Class B, 5.951%, 6/15/43(b)		70,008
	500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(b)(c)		529,838
	144,013	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class AM, 6.303%, 9/15/45(c)		144,234
	87,000	Merrill Lynch Mortgage Trust, Series 2008-C1, Class AM, 6.665%, 2/12/51(c)		87,236
	100,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47		105,818
	500,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C32, Class A4, 3.720%, 12/15/49		524,033
	760,000	Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class B, 5.276%, 11/15/43(b)(c)		811,128
	300,000	Wells Fargo Commercial Mortgage Trust, Series 2015-P2, Class A4, 3.809%, 12/15/48		317,056
	400,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class B, 5.174%, 2/15/44(b)(c)		425,497
	100,000	WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class C, 5.392%, 2/15/44(b)(c)		106,059
	529,000	WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class A5, 3.752%, 9/15/57		555,213
	164,000	WF-RBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57		173,943
		Total Commercial Mortgage-Backed Securities (Cost $9,296,002)		9,197,857

Continued

101

Sterling Capital Securitized Opportunities Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	CORPORATE BONDS — 0.9%
		Telecommunication Services — 0.9%
	$345,000	Sprint Spectrum Co., LLC / Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 3.360%, 9/20/21(b)	$	350,175
		Total Corporate Bonds (Cost $344,995)		350,175
	MORTGAGE-BACKED SECURITIES — 27.3%
		Fannie Mae — 15.2%
	257,945	4.000%, 6/1/34, Pool #MA1922		274,096
	168,624	4.000%, 9/1/34, Pool #MA2019		179,189
	177,732	5.500%, 6/1/38, Pool #984277		198,472
	105,666	5.500%, 8/1/38, Pool #995072		117,918
	135,068	4.500%, 9/1/39, Pool #AC1830		145,587
	143,923	4.500%, 10/1/40, Pool #AE4855		155,769
	205,419	3.500%, 2/1/41, Pool #AH5646		213,517
	389,400	4.000%, 3/1/41, Pool #AH4008		411,832
	99,425	4.500%, 6/1/41, Pool #AC9298		107,603
	270,600	5.000%, 7/1/41, Pool #AI5595		296,636
	337,826	4.000%, 9/1/41, Pool #AJ1717		357,238
	316,603	3.500%, 6/1/42, Pool #AB5373		327,740
	488,420	3.500%, 6/1/43, Pool #AT3868		505,127
	270,369	4.000%, 4/1/44, Pool #AW2882		285,007
	145,717	4.500%, 10/1/44, Pool #MA2066		156,684
	485,273	4.000%, 12/1/44, Pool #MA2127		511,437
	452,246	4.500%, 1/1/45, Pool #MA2158		486,155
	448,514	3.500%, 3/1/45, Pool #AS4552		464,613
	363,888	4.500%, 7/1/46, Pool #AS7568		390,784
	407,324	4.000%, 11/1/46, Pool #MA2808		429,113
				6,014,517
		Freddie Mac — 12.0%
	550,271	3.500%, 5/1/32, Pool #C91458		575,205
	428,871	3.500%, 7/1/32, Pool #C91467		448,301
	165,705	4.000%, 11/1/32, Pool #G30616		176,368
	337,402	3.500%, 6/1/36, Pool #C91875		351,445
	68,432	5.500%, 10/1/39, Pool #A89387		75,528
	136,663	5.000%, 4/1/40, Pool #A91812		150,331
	209,576	5.500%, 4/1/40, Pool #C03467		232,003
	113,234	5.000%, 8/1/40, Pool #C03491		124,060
	199,730	4.000%, 11/1/40, Pool #A94742		212,870
	225,491	4.000%, 12/1/40, Pool #A95447		240,328
	512,308	4.000%, 1/1/41, Pool #A96312		541,567

Principal   Amount			Fair Value
	MORTGAGE-BACKED SECURITIES — (continued)
		Freddie Mac — (continued)
	$158,743	3.500%, 3/1/42, Pool #G08479	$	164,542
	372,026	3.500%, 4/1/42, Pool #C03858		385,475
	489,241	3.500%, 8/1/42, Pool #Q10324		507,115
	565,841	4.000%, 4/1/46, Pool #Q40048		595,968
				4,781,106
		Ginnie Mae — 0.1%
	24,247	4.000%, 12/20/40, Pool #755678		25,735
		Total Mortgage-Backed Securities (Cost $10,768,925)		10,821,358
Shares
	MONEY MARKET FUND — 0.1%
	21,957	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(d)		21,957
		Total Money Market Fund (Cost $21,957)		21,957
	Total Investments — 99.9% (Cost $39,176,704)			39,628,409
	Net Other Assets (Liabilities) — 0.1%			32,500
	NET ASSETS — 100.0%		$	39,660,909

(a) The interest rate for this floating rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. 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) The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2017. The maturity date reflected is the final maturity date.

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

STEP — Step Coupon Bond

See accompanying Notes to the Financial Statements.

102

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — 98.6%
		Kentucky — 98.6%
	$440,000	Commonwealth of Kentucky, Certificate of Participation, Public Improvements, 5.000%, 6/15/25	$	525,149
	300,000	Commonwealth of Kentucky, Certificate of Participation, Public Improvements, Callable 6/15/25 @ 100, 5.000%, 6/15/34		338,814
	400,000	Eastern Kentucky University, Refunding Revenue, Series A, (State Intercept), 5.000%, 4/1/24		474,336
	300,000	Eastern Kentucky University, University & College Improvements Revenue, Series A (State Intercept), 5.000%, 4/1/25		359,784
	500,000	Fayette County, KY, School District Finance Corp., Lease Payable from Local Revenues, Series A, 5.000%, 10/1/21		566,325
	300,000	Jefferson County School District Finance Corp., School Improvements Revenue Bonds (State Intercept), Series C, Callable 12/1/25 @ 100, 4.000%, 12/1/28		330,867
	250,000	Jefferson County, KY, School District Finance Corp., School Improvements Revenue, Series A, Callable 4/1/25 @ 100, 5.000%, 4/1/27		297,335
	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		602,749
	400,000	Kentucky Association of Counties Finance Corp., Public Improvements Revenue, First Series B, 4.000%, 2/1/25		450,508
	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		411,048
	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		528,730
	250,000	Kentucky State Property & Building Commission, Project No. 116, University & College Improvements Revenue, (AGM-State Intercept), 5.000%, 10/1/26		302,980
	410,000	Kentucky State Property & Buildings Commission, Project No. 76, Refunding Revenue, (AMBAC), 5.500%, 8/1/21		469,237
	460,000	Kentucky State Property & Buildings Commission, Project No. 83, Refunding Revenue, (AMBAC), 5.000%, 10/1/19		493,539
	400,000	Kentucky Turnpike Authority, Revitalization Projects, Refunding Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/25		427,480
	400,000	Kentucky Turnpike Authority, Revitalization Projects, Revenue, Series A, 4.000%, 7/1/21		436,072
	250,000	Laurel County, KY, Correctional Facilities Improvements G.O., Series A, Callable 5/1/27 @ 100, (BAM), 5.000%, 5/1/28		301,257
	300,000	Laurel County, KY, School District Finance Corp., Refunding Revenue, Callable 3/1/25 @ 100 (State Intercept), 4.000%, 6/1/25		337,269

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Kentucky — (continued)
	$250,000	Lexington-Fayette Urban County Government Public Facilities Corp., Court Facilities Project, Current Refunding Revenue Bonds, Callable 10/1/26 @ 100, 5.000%, 10/1/27	$	301,575
	275,000	Lexington-Fayette Urban County, KY, Airport Board, Refunding Revenue, Series A, 5.000%, 7/1/19		292,996
	250,000	Louisville & Jefferson County, KY, Metropolitan Government, Refunding G.O., Series F, Callable 11/1/24 @ 100, 4.000%, 11/1/26		281,127
	500,000	Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 11/15/21 @ 100, 5.000%, 5/15/30		569,410
	200,000	Louisville & Jefferson County, Louisville Water Co., Water Utility Improvements Revenue, Series A, Refunding Revenue Bonds, 5.000%, 11/15/18		209,062
	410,000	Louisville & Jefferson County, Metropolitan Government, Catholic Health Initiatives, Prerefunded Revenue, Callable 6/1/22 @ 100, 5.000%, 12/1/35		476,006
	125,000	Louisville & Jefferson County, Metropolitan Government, Catholic Health Initiatives, Unrefunded Revenue, Callable 6/1/22 @ 100, 5.000%, 12/1/35		131,250
	325,000	Louisville & Jefferson County, Metropolitan Government, Center City Project, Refunding Notes, G.O., Callable 12/1/25 @ 100, 5.000%, 12/1/28		393,682
	300,000	Murray, KY, School District Finance Corp., School Improvements Revenue, (State Intercept), 5.000%, 3/1/27		364,962
	250,000	Owensboro, KY, Public Improvements G.O., Series A, 4.000%, 5/1/22		273,163
	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		421,208
	200,000	Russell, KY, Bon Secours Health System, Refunding Revenue, Callable 11/1/22 @ 100, 5.000%, 11/1/26		227,176
	300,000	University of Kentucky, Refunding Revenue, Series D (State Intercept), 5.250%, 10/1/20		336,090
		Total Municipal Bonds (Cost $11,444,893)		11,931,186

Continued

103

Sterling Capital Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	MONEY MARKET FUND — 0.2%
	28,126	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)	$	28,126
		Total Money Market Fund (Cost $28,126)		28,126
	Total Investments — 98.8% (Cost $11,473,019)			11,959,312
	Net Other Assets (Liabilities) — 1.2%			140,740
	NET ASSETS — 100.0%		$	12,100,052

(a) 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

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

104

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — 98.2%
		Maryland — 98.2%
	$500,000	Anne Arundel County, MD, Consolidated Water & Sewer Utility Improvements G.O., 5.000%, 4/1/22	$	580,120
	510,000	Anne Arundel County, MD, Economic Development, Anne Arundel Community College Project, Refunding Revenue, 4.000%, 9/1/20		545,307
	910,000	Cecil County, MD, Consolidated Public School Improvements, Refunding G.O., 4.000%, 2/1/24		1,038,083
	500,000	Charles County, MD, Consolidated Public School Improvements G.O., 5.000%, 7/15/22		586,365
	890,000	Charles County, MD, Consolidated Public School Improvements G.O., Callable 7/15/23 @ 100, 5.000%, 7/15/25		1,052,612
	300,000	Howard County, MD, Housing Commission, Columbia Commons Apartments, Local Multifamily Housing Revenue, Series A, 3.000%, 6/1/21		313,914
	275,000	Howard County, MD, Housing Commission, General Capital Improvement Program, Local Multifamily Housing Revenue, 4.000%, 6/1/22		299,437
	125,000	Howard County, MD, Miscellaneous Purpose Certificate of Participation, Series A, 8.050%, 2/15/21		152,781
	135,000	Howard County, MD, Public Improvements Certificate of Participation, Series B, 8.250%, 2/15/20		157,225
	250,000	Maryland Economic Development Corp., Electricity Lights & Power Improvements, Refunding Revenue, Callable 3/1/19 @ 100, 6.200%, 9/1/22		268,120
	60,000	Maryland Economic Development Corp., Lutheran World Relief Refugee, Refunding Revenue, Callable 11/6/17 @ 100, (Lutheran Center Corp.), 5.250%, 4/1/19		60,204
	675,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, 5.000%, 6/1/20		742,716
	420,000	Maryland Economic Development Corp., Public Health Laboratory Public Improvements Revenue, Callable 6/1/21 @ 100, 5.000%, 6/1/26		473,096
	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		1,093,890
	500,000	Maryland Health & Higher Educational Facilities Authority, College of Notre Dame, Refunding Revenue, 4.000%, 10/1/19		521,570
	1,000,000	Maryland Health &Higher Educational Facilities Authority, Frederick Memorial Hospital, Refunding Revenue, Series A, 5.000%, 7/1/22		1,138,360
	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		582,905

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Maryland — (continued)
	$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	$	1,147,430
	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		598,911
	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		1,131,170
	400,000	Maryland Health & Higher Educational Facilities Authority, Meritus Medical Center Issue, Refunding Revenue, 5.000%, 7/1/22		458,480
	400,000	Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System, Refunding Revenue, 5.000%, 7/1/19		426,900
	1,160,000	Maryland Stadium Authority, Refunding Revenue, 5.000%, 6/15/23		1,364,032
	500,000	Maryland State Transportation Authority, Transportation Facilities Project, Highway Revenue, Series A, Callable 7/1/19 @ 100, 5.000%, 7/1/22		534,120
	500,000	Montgomery County, MD, Department Liquor Control Public Improvements Revenue, Series A, Callable 4/1/21 @ 100, OID, 4.500%, 4/1/26		548,795
	1,025,000	Montgomery County, MD, Revenue Authority, Refunding Revenue, 5.000%, 5/1/22		1,175,839
	750,000	Montgomery County, MD, Water Quality Public Improvements Revenue, Series A, Callable 4/1/20 @ 100, 5.000%, 4/1/30		817,800
	890,000	Montgomery County, MD, West Germantown Development District, Refunding, Special Tax, 4.000%, 7/1/23		995,563
	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		1,140,230
	1,000,000	State of Maryland, Refunding G.O., Series B, 4.000%, 8/1/23		1,137,450
	500,000	Washington County, MD, Refunding G.O., 4.000%, 1/1/21		544,560
	700,000	Washington Suburban Sanitary Commission, Consolidated Public Water Utility Improvements, G.O., 4.000%, 6/1/24		802,165
	500,000	Washington Suburban Sanitary Commission, Consolidated Public Water Utility Improvements, G.O., Callable 6/1/26 @ 100, 5.000%, 6/1/38		589,640
				23,019,790
		Total Municipal Bonds (Cost $21,952,252)		23,019,790

Continued

105

Sterling Capital Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	MONEY MARKET FUND — 0.9%
	198,258	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)	$	198,258
		Total Money Market Fund (Cost $198,258)		198,258
	Total Investments — 99.1% (Cost $22,150,510)			23,218,048
	Net Other Assets (Liabilities) — 0.9%			218,103
	NET ASSETS — 100.0%		$	23,436,151

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

G.O. — General Obligation

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

106

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — 97.0%
		North Carolina — 97.0%
	$2,335,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/24	$	2,658,865
	2,405,000	Appalachian State University, University & College Improvements Revenue, Callable 10/1/21 @ 100, 4.750%, 10/1/27		2,669,382
	1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/24		1,143,800
	1,000,000	Beaufort County, NC, Refunding Revenue Limited Obligation, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,131,650
	1,000,000	Broad River Water Authority, Water System Refunding Revenue, 5.000%, 6/1/24		1,184,660
	1,025,000	Buncombe County Metropolitan Sewerage District, Sewer Improvements Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/39		1,184,715
	1,730,000	Buncombe County, NC, Advance Refunding Revenue Limited Obligation, Callable 6/1/25 @ 100, 5.000%, 6/1/27		2,094,217
	1,450,000	Buncombe County, NC, Advance Refunding Revenue Limited Obligation, Callable 6/1/25 @ 100, 5.000%, 6/1/28		1,740,899
	1,000,000	Cabarrus County, NC Installment Financing Contract Public Imps. Revenue Bonds, Callable 4/1/26 @ 100, 5.000%, 4/1/28		1,209,440
	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		1,027,120
	1,730,000	Cabarrus County, NC, Installment Financing Contract, School Improvements Certificate of Participation, Callable 1/1/19 @ 100, 5.000%, 1/1/23		1,817,209
	1,010,000	Cape Fear Public Utility Authority, Advance Refunding Revenue Bonds, 5.000%, 8/1/25		1,241,492
	1,240,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, 5.000%, 8/1/21		1,414,741
	1,475,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/26		1,675,615
	1,535,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Refunding Revenue, Callable 8/1/21 @ 100, 5.000%, 8/1/28		1,741,304
	1,160,000	Cape Fear Public Utility Authority, Water & Sewer System, Improvements Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26		1,199,707
	1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/19		1,056,440
	1,000,000	Catawba County, NC, School Improvements Refunding Revenue, 4.000%, 10/1/20		1,080,870
	1,000,000	Charlotte, NC, Charlotte Douglas International Airport Refunding Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/31		1,177,590
	1,000,000	Charlotte, NC, Port, Airport & Marina Improvements Revenue, Series A, Callable 7/1/20 @ 100, 5.000%, 7/1/27		1,100,100

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$1,000,000	Charlotte, NC, Water & Sewer System, Refunding Revenue, Series B, Callable 7/1/20 @ 100, 5.000%, 7/1/25	$	1,104,690
	2,035,000	Chatham County, NC, Refunding Revenue (County Guaranteed), 5.000%, 12/1/28		2,496,029
	2,000,000	Concord, NC, Utilities Systems, Refunding Revenue, Series B, Callable 12/1/19 @ 100, 5.000%, 12/1/22		2,152,840
	1,110,000	Dare County, NC, Utilities Systems, Advance Refunding Revenue Bonds, Callable 2/1/27 @ 100, 4.000%, 2/1/33		1,212,075
	1,000,000	Durham Capital Financing Corp., Limited Obligation Refunding Revenue, 5.000%, 6/1/21		1,133,650
	1,410,000	Durham County, NC, Industrial Facilities & Pollution Control Financing Authority, Research Triangle Institute, University & College Improvements Revenue, 5.000%, 2/1/20		1,529,483
	2,000,000	Durham County, NC, Public Improvements Certificate of Participation, Series A, Callable 6/1/19 @ 100, 5.000%, 6/1/24		2,131,800
	1,000,000	Durham, NC, Refunding, G.O., 4.000%, 9/1/25		1,161,470
	1,475,000	East Carolina University, University & College Improvements Revenue, Series A, Callable 4/1/26 @ 100, 5.000%, 10/1/27		1,795,060
	1,750,000	Fayetteville, NC, Public Works Commission, Electric Light & Power Improvements Revenue, Callable 3/1/24 @ 100, 4.000%, 3/1/27		1,949,553
	1,955,000	Greensboro, NC, Combined Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/27 @ 100, 4.000%, 6/1/30		2,207,175
	1,675,000	Guilford County, NC, Advance Refunding, G.O., Series A, Callable 2/1/26 @ 100, 5.000%, 2/1/28		2,041,038
	2,675,000	High Point, NC, Combined Water & Sewer System, Advance Refunding Revenue Bonds, 5.000%, 11/1/26		3,351,427
	1,010,000	Holly Springs, NC, Public Improvements Revenue, Callable 10/1/24 @ 100, 5.000%, 10/1/27		1,190,881
	1,000,000	Johnston County, NC, Public Improvement, G.O., 5.000%, 2/1/23		1,180,640
	1,405,000	Johnston County, NC, Public Improvements, G.O., 5.000%, 2/1/24		1,698,167
	1,705,000	Lenoir County, NC, Refunding G.O., 4.000%, 2/1/20		1,817,411
	2,535,000	Lincoln County, NC, Refunding G.O., Series A, 4.000%, 6/1/19		2,658,835
	2,000,000	Mecklenburg County, NC, Refunding G.O., 5.000%, 2/1/21		2,252,280
	1,195,000	Monroe, NC, Advance Refunding Revenue Bonds, Callable 3/1/26 @ 100, 5.000%, 3/1/29		1,415,489
	1,280,000	Monroe, NC, Combined Enterprise System, Refunding Revenue (AGM), 4.000%, 3/1/19		1,330,509
	1,020,000	Mooresville Town, NC, Advance Refunding, G.O., 5.000%, 4/1/23		1,206,364

Continued

107

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$1,855,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/19	$	2,009,002
	1,015,000	New Hanover County, NC, New Hanover County Projects, Refunding Revenue, 5.000%, 12/1/20		1,134,628
	1,270,000	New Hanover County, NC, New Hanover Regional Medical, Refunding Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,435,303
	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		1,077,980
	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		1,131,879
	1,000,000	North Carolina Agricultural & Technical State University, Series A, Refunding Revenue, Callable 10/1/25 @ 100, 5.000%, 10/1/32		1,171,660
	1,215,000	North Carolina Agricultural & Technical State University, Series A, Refunding Revenue, Callable 10/1/25 @100, 5.000%, 10/1/34		1,411,186
	1,305,000	North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, 5.000%, 4/1/21		1,454,501
	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		1,156,960
	1,350,000	North Carolina Eastern Municipal Power Agency, Electric, Lights & Power Improvements Revenue, Series A, OID, 6.400%, 1/1/21		1,467,207
	2,635,000	North Carolina Eastern Municipal Power Agency, Prerefunded, Revenue Bonds, Series A, Callable 1/1/22 @ 100, OID, 6.000%, 1/1/26		3,142,422
	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		1,060,255
	1,500,000	North Carolina Medical Care Commission, Firsthealth Carolina, Refunding Revenue, Series C, OID, 4.000%, 10/1/18		1,542,390
	4,315,000	North Carolina Medical Care Commission, Health Care Facilities, Deerfield Episcopal Retirement, Advance Refunding Revenue, Callable 11/1/26 @ 100, 5.000%, 11/1/37		4,790,211
	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		5,615,850
	915,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.000%, 7/1/19		964,858

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$1,180,000	North Carolina Medical Care Commission, Health Care Facilities, Refunding Revenue, Appalachian Regional Healthcare System, Series A, 5.375%, 7/1/20	$	1,285,551
	3,030,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, 5.000%, 6/1/20		3,320,789
	1,530,000	North Carolina Medical Care Commission, North Carolina Baptist Hospital, Refunding Revenue, Callable 6/1/20 @ 100, 5.250%, 6/1/29		1,679,925
	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		3,179,764
	2,000,000	North Carolina State University at Raleigh, Refunding Revenue, Series A, Callable 10/1/23 @ 100, 5.000%, 10/1/28		2,376,540
	2,950,000	North Carolina State, Advance Refunding Revenue Bonds, Series B, Callable 5/1/27 @ 100, 5.000%, 5/1/30		3,609,119
	1,000,000	North Carolina State, Health, Hospital, Nursing Home Improvements Revenue, Series A, Callable 5/1/20 @ 100, 5.000%, 5/1/22		1,098,900
	4,550,000	North Carolina State, Public Improvements, Revenue, Series C, Callable 5/1/21 @ 100, 4.000%, 5/1/23		4,994,535
	2,645,000	North Carolina State, Refunding Revenue G.O., Series B, 5.000%, 6/1/25		3,255,731
	1,250,000	North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), 5.000%, 1/1/26		1,502,413
	1,200,000	North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), 5.000%, 1/1/27		1,451,988
	2,100,000	North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), Callable 1/1/27 @ 100, 5.000%, 1/1/28		2,515,968
	1,660,000	Northern Hospital District Of Surry County, Advance Refunding Revenue, 5.000%, 10/1/27		1,857,507
	1,250,000	Onslow County, NC, Refunding G.O., 5.000%, 12/1/21		1,435,550
	1,365,000	Orange County, NC, Public Facilities Co., Public Improvements, Revenue, Callable 10/1/21 @ 100, 5.000%, 10/1/23		1,557,192
	1,000,000	Pasquotank County, NC, Refunding Certificate of Participation (NATL), 5.250%, 6/1/19		1,065,250
	1,210,000	Pender County, NC, Limited Obligation Refunding Revenue, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,398,215
	1,015,000	Pender County, NC, School Improvements, G.O., Callable 3/1/26 @100, 5.000%, 3/1/27		1,242,614
	1,060,000	Pitt County, NC, Advance Refunding Revenue Bonds, Series B, Callable 10/1/26 @ 100, 5.000%, 4/1/30		1,267,558
	1,395,000	Pitt County, NC, Certificate of Participation, Refunding, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,602,534

Continued

108

Sterling Capital North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

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	$	2,364,336
	1,500,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/27		1,763,295
	1,615,000	Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/28		1,896,640
	1,985,000	Sampson County, NC, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26		2,388,551
	845,000	Town of Oak Island, NC, Combined Enterprise System, Advance Refunding Revenue (AGM), 5.000%, 6/1/25		1,013,273
	1,000,000	Union County, NC, Enterprise Systems, Refunding Revenue, Series A, Callable 12/1/21 @ 100, 4.000%, 12/1/22		1,102,860
	2,205,000	Union County, NC, Refunding G.O., Series A, 5.000%, 3/1/22		2,553,169
	1,000,000	Union County, NC, Refunding Revenue, 5.000%, 12/1/23		1,190,620
	2,285,000	University of North Carolina at Greensboro, Refunding Revenue, Callable 4/1/21 @ 100, 5.000%, 4/1/23		2,573,390
	1,695,000	University of North Carolina at Greensboro, University & College Improvements Revenue, Callable 4/1/24 @ 100, 5.000%, 4/1/28		2,006,863
	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		3,595,584
	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		3,438,211
	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		1,636,307
	2,985,000	Wake County, NC, Advance Refunding Revenue Bonds, Series A, Callable 12/1/26 @ 100, 5.000%, 12/1/28		3,680,087
	2,125,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/24		2,431,616
	1,000,000	Watauga Public Facilities Corp., Revenue, Series A, Callable 6/1/22 @ 100, 5.000%, 6/1/26		1,130,700
	500,000	Wayne County, NC, School Improvements Revenue, Callable 6/1/27 @ 100, 5.000%, 6/1/28		614,065

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		North Carolina — (continued)
	$1,135,000	Wayne County, NC, School Improvements Revenue, Callable 6/1/27 @ 100, 4.000%, 6/1/29	$	1,274,741
	1,000,000	Winston-Salem State University Foundation LLC, Refunding Revenue, Callable 4/1/22 @ 100, 5.000%, 4/1/25		1,115,180
	1,000,000	Winston-Salem, NC, Transit Improvements, Refunding Revenue, Series C, Callable 6/1/24 @ 100, 5.000%, 6/1/30		1,184,260
	1,165,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, 5.000%, 6/1/24		1,411,549
	1,875,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/25		2,254,763
	1,000,000	Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/28		1,189,300
		Total Municipal Bonds (Cost $176,665,668)		184,639,977
Shares
	MONEY MARKET FUND — 1.9%
	3,649,674	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)		3,649,674
		Total Money Market Fund (Cost $3,649,674)		3,649,674
	Total Investments — 98.9% (Cost $180,315,342)			188,289,651
	Net Other Assets (Liabilities) — 1.1%			2,141,878
	NET ASSETS — 100.0%		$	190,431,529

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

AGM — Assured Guaranty Municipal Corp.

G.O. — General Obligation

NATL — National Public Finance Guarantee Corp.

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

109

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount		Fair Value
MUNICIPAL BONDS — 97.9%
	South Carolina — 97.9%
$1,770,000	Anderson County, SC, School District No. 2, Refunding, G.O., (SCSDE), 5.000%, 3/1/24	$	2,122,177
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		1,798,123
1,190,000	Anderson County, SC, School District No. 5, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/23		1,401,499
1,000,000	Anderson Regional Joint Water System, Refunding Revenue, Series A, Callable 7/15/21 @ 100, 5.000%, 7/15/25		1,111,970
1,000,000	Beaufort County, SC, School District, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/22		1,153,860
1,000,000	Beaufort-Jasper Water & Sewer Authority, Advance Refunding Revenue, Series B, 5.000%, 3/1/24		1,200,990
1,000,000	Beaufort-Jasper Water & Sewer Authority, Advance Refunding Revenue, Series B, 5.000%, 3/1/25		1,215,880
1,185,000	Berkeley County School District, School Improvements, G.O., Series A (SCSDE), 5.000%, 3/1/20		1,294,565
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		1,146,130
1,000,000	Charleston County, SC, Port, Airport & Marina Improvements Revenue, 5.000%, 12/1/22		1,170,810
2,500,000	Charleston Educational Excellence Finance Corp., Charleston County School Refunding Revenue, 5.000%, 12/1/21		2,864,900
1,000,000	Clover, SC, School District No. 2, Advance Refunding, G.O., (SCSDE), 5.000%, 3/1/20		1,092,710
1,355,000	Coastal Carolina University, University & College Improvements Revenue, Callable 6/1/24 @ 100, 5.000%, 6/1/34		1,557,450
1,295,000	College of Charleston, University & College Improvements Refunding Revenue, Series A, Callable 4/1/21 @ 100, 5.000%, 4/1/25		1,451,825
1,000,000	College of Charleston, University & College Improvements Revenue, Series A, Callable 4/1/24 @ 100, 5.000%, 4/1/25		1,173,850
1,000,000	College of Charleston, University & College Improvements Revenue, Series B, 5.000%, 4/1/27		1,228,180
1,170,000	Easley Combined Utility System, Refunding Revenue, Callable 12/1/19 @ 100, (Assured Guaranty), 5.000%, 12/1/24		1,267,086
1,135,000	East Richland County Public Service District, Refunding Revenue, 4.000%, 1/1/22		1,246,117
1,000,000	Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/28		1,165,100
1,100,000	Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/33		1,250,051
1,895,000	Florence County, SC, Public Improvements, G.O., (State Aid Withholding), 4.000%, 6/1/20		2,037,485

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		South Carolina — (continued)
	$1,350,000	Fort Mill School District No. 4, Advance Refunding, G.O., Series D (SCSDE), 5.000%, 3/1/22	$	1,558,967
	1,000,000	Fort Mill School District No. 4, Advance Refunding, G.O., Series D (SCSDE), 5.000%, 3/1/24		1,200,990
	1,000,000	Greenville County, SC, School District Building Refunding Revenue, 5.000%, 12/1/22		1,164,450
	1,000,000	Greenville Health System, Hospital System Board, Refunding Revenue, Callable 5/1/22 @ 100, 5.000%, 5/1/31		1,119,240
	1,415,000	Greenville Health System, Hospital System Board, Series B, Callable 05/01/24 @ 100, 5.000%, 5/1/31		1,612,039
	1,000,000	Greenwood County, SC, Self Regional Healthcare Refunding Revenue, Series B, Callable 4/1/22 @ 100, 5.000%, 10/1/24		1,133,020
	530,000	Greenwood County, SC, Self Regional Healthcare Revenue, Callable 10/1/19 @ 100, OID, 5.000%, 10/1/23		566,406
	2,025,000	Horry County, SC, School District, Refunding, G.O., Series B (SCSDE), 5.000%, 3/1/23		2,390,675
	1,000,000	Kershaw County, SC, Kershaw County School District Project, Refunding Revenue, 5.000%, 12/1/23		1,174,610
	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		1,703,995
	1,170,000	Lexington County Health Services District, Inc. Lexington Medical Center, Callable 5/1/26 @ 100, 5.000%, 11/1/35		1,324,218
	645,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/19		647,290
	1,000,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/17 @ 100, 5.000%, 11/1/23		1,003,520
	785,000	Lexington County, SC, Health Services District, Inc., Refunding Revenue, Callable 11/1/21 @ 100, 5.000%, 11/1/22		890,653
	1,000,000	Lexington County, SC, School District No. 1, G.O., Series C (SCSDE), 5.000%, 2/1/21		1,122,700
	940,000	Lexington, SC, Combined Waterworks & Sewer System Refunding Revenue, Callable 4/1/21 @100, 5.000%, 4/1/22		1,045,317
	1,000,000	Lugoff-Elgin Water Authority, Refunding Revenue, Series B, Callable 7/1/26 @ 100, 5.000%, 7/1/30		1,176,970
	1,460,000	Newberry, SC, Refunding Revenue (AGM), 5.000%, 4/1/24		1,722,537
	1,115,000	Oconee County School District, School Improvements, G.O., Series A (SCSDE), 5.000%, 3/1/24		1,343,619
	1,570,000	Orangeburg County, SC, School District No. 4, School Improvements Refunding, G.O., Series A (SCSDE), 5.000%, 3/1/24		1,888,741
	810,000	Orangeburg County, SC, School District No. 5, Refunding G.O. (SCSDE), 5.000%, 3/1/21		907,014

Continued

110

Sterling Capital South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		South Carolina — (continued)
	$1,000,000	Piedmont Municipal Power Agency, Power System Refunding Revenue, Series B, Callable 1/1/22 @ 100, 4.000%, 1/1/23	$	1,089,290
	1,000,000	Renewable Water Resources Sewage System, Refunding Revenue, 4.000%, 1/1/20		1,063,720
	1,075,000	Richland County, SC, School District No. 1, Refunding Bonds, G.O., Series A, Callable 9/1/21 @ 100, (SCSDE), 4.000%, 3/1/23		1,176,577
	1,000,000	Rock Hill, SC, Combined Utility System, Refunding Revenue, Series A, Callable 1/1/22 @100 (AGM), 5.000%, 1/1/23		1,137,540
	1,000,000	Rock Hill, SC, Hospital Fee Pledge, Refunding Revenue, Callable 4/1/23 @100, 5.000%, 4/1/33		1,108,300
	1,090,000	Rock Hill, SC, Ltd. Obligations, Hospitality Fee Pledge, Refunding Revenue, 5.000%, 4/1/21		1,215,851
	1,500,000	SCAGO Educational Facilities Corp. for Cherokee School District No. 1, Refunding Revenue, 5.000%, 12/1/24		1,785,060
	1,135,000	SCAGO Educational Facilities Corp. for Colleton School District, Refunding Revenue, 5.000%, 12/1/20		1,257,773
	790,000	SCAGO Educational Facilities Corp. for Union School District, Refunding Revenue, 5.000%, 12/1/21		890,188
	500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/18		521,890
	500,000	SCAGO Public Facilities Corp. for Georgetown County, Georgetown County Project, Refunding Revenue, Series A, 5.000%, 12/1/19		539,205
	850,000	South Carolina Jobs-Economic Development Authority, AnMed Health Project, Advance Refunding Revenue Bonds, Callable 2/1/26 @ 100, 5.000%, 2/1/29		978,282
	550,000	South Carolina Jobs-Economic Development Authority, AnMed Health Project, Refunding & Improvement Revenue, Series B (Assured Guaranty), 5.000%, 2/1/19		579,519
	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		1,154,030
	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		1,687,185
	580,000	South Carolina Jobs-Economic Development Authority, Furman University, Refunding Revenue, 5.000%, 10/1/24		690,078
	500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health Facilities, Refunding Revenue, Series A (AGM), 5.000%, 8/1/19		531,380
	500,000	South Carolina Jobs-Economic Development Authority, Palmetto Health, Refunding & Improvement Facilities Revenue, OID, 5.000%, 8/1/18		515,035

Principal   Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		South Carolina — (continued)
	$1,150,000	South Carolina Ports Authority, Port, Airport & Marina Improvements Revenue, 5.000%, 7/1/19	$	1,224,003
	500,000	South Carolina Public Service Authority Obligations, Santee Cooper, Refunding Revenue, Series B, 5.000%, 12/1/18		521,730
	1,490,000	South Carolina Public Service Authority, Advance Refunding Revenue Bonds, series A, Callable 6/1/25 @ 100, 5.000%, 12/1/26		1,730,277
	1,400,000	South Carolina State Fiscal Accountability Authority, Department of Mental Health Project, Callable 04/01/27 @ 100, 5.000%, 10/1/37		1,637,650
	1,250,000	South Carolina Transportation Infrastructure Bank, Advance Refunding Revenue, Series A, 5.000%, 10/1/23		1,477,513
	600,000	Spartanburg Regional Health Services District, Refunding Revenue, Series A, Callable 4/15/18 @ 100, (Assured Guaranty), 5.250%, 4/15/21		613,554
	1,360,000	State of South Carolina, College Improvements, G.O., Series A (State Aid Withholding), 5.000%, 4/1/27		1,705,943
	415,000	University of South Carolina, Prerefunded Revenue, Series A, Callable 05/01/20 @ 100, 5.000%, 5/1/28		456,267
	85,000	University of South Carolina, Refunding Revenue, Series A, Callable 05/01/20 @ 100, 5.000%, 5/1/28		92,768
	1,085,000	York County, SC, Public Improvements, G.O., (State Aid Withholding), 5.000%, 4/1/20		1,189,431
		Total Municipal Bonds (Cost $82,314,606)		85,217,768
Shares
	MONEY MARKET FUND — 1.0%
	865,063	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)		865,063
		Total Money Market Fund (Cost $865,063)		865,063
	Total Investments — 98.9% (Cost $83,179,669)			86,082,831
	Net Other Assets (Liabilities) — 1.1%			934,537
	NET ASSETS — 100.0%		$	87,017,368

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

AGM — Assured Guaranty Municipal Corp.

G.O. — General Obligation

OID — Original Issue Discount

SCAGO — South Carolina Association of Governmental Organizations

SCSDE — South Carolina School District Enhancement

See accompanying Notes to the Financial Statements.

111

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

September 30, 2017

Principal   Amount		Fair Value
MUNICIPAL BONDS — 98.5%
	District of Columbia — 2.0%
$1,160,000	Metropolitan Washington Airports Authority, Port, Airport & Marina Improvement Revenue, Series A, Callable 10/1/20 @ 100, 5.000%, 10/1/23	$	1,286,834
625,000	Metropolitan Washington Airports Authority, Refunding Revenue, Series B, Callable 10/1/19 @ 100, 5.000%, 10/1/21		672,344
			1,959,178
	Virginia — 96.5%
1,240,000	Albemarle County, VA, Economic Development Authority, Public Improvements Revenue, 5.000%, 6/1/27		1,546,702
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		1,995,797
2,760,000	Albemarle County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/20		3,039,947
1,365,000	Albemarle County, VA, School Improvements G.O., (State Aid Withholding), 5.000%, 6/1/26		1,702,878
1,000,000	Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21		1,138,460
1,500,000	Arlington, VA, Public Improvements, G.O., Callable 8/15/27 @ 100, 5.000%, 8/15/30		1,864,845
1,085,000	Chesapeake Bay Bridge & Tunnel District, First Tier General Resolution, Highway Improvements, Revenue Bonds, Callable 7/1/26 @ 100 (AGM), 5.000%, 7/1/41		1,241,967
1,770,000	Chesapeake, VA, Public Improvements, Refunding G.O., Series A, Callable 8/1/27 @ 100, 5.000%, 8/1/30		2,188,746
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		1,166,781
1,145,000	Culpeper County, VA, Economic Development Authority, VA Capital Projects, Refunding Revenue, Callable 6/1/24 @ 100, 4.000%, 6/1/26		1,269,233
1,450,000	Fairfax County Economic Development Authority, Goodwin House Inc., Advance Refunding Revenue, Series A, Callable 10/1/24 @ 102, 5.000%, 10/1/36		1,609,703
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		1,562,886
2,500,000	Fairfax County, VA, Economic Development Authority, Laurel Hill Public Facilities Project, Refunding Revenue, Series A, 5.000%, 6/1/22		2,881,150
530,000	Fairfax County, VA, Industrial Development Authority, Inova Health System Project, Refunding Revenue, (AGM-CR), OID, 5.250%, 8/15/19		559,389

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	$	1,148,820
1,000,000	Hampton, VA, Public Improvements, Refunding G.O., Series A, Callable 1/15/19 @100, 5.000%, 1/15/21		1,051,130
800,000	Harrisonburg, VA, School Improvements, G.O., (State Aid Withholding), 5.000%, 7/15/23		951,936
1,700,000	Leesburg, VA, Refunding G.O., Callable 1/15/24 @ 100, (State Aid Withholding), 4.000%, 1/15/27		1,897,642
1,000,000	Leesburg, VA, Refunding G.O., Callable 1/15/25 @ 100, (State Aid Withholding), 5.000%, 1/15/27		1,201,670
1,000,000	Loudoun County, VA, Economic Development Authority, Public Improvements Revenue, Callable 12/1/24 @ 100, 5.000%, 12/1/27		1,204,990
1,665,000	Loudoun County, VA, Industrial Development Authority, Refunding Revenue, 4.000%, 12/15/22		1,873,341
1,000,000	Lynchburg Economic Development Authority, Current Refunding Revenue Bonds, Series A, 5.000%, 1/1/26		1,192,810
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		1,615,573
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		2,795,741
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		1,524,813
2,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series A, 4.000%, 7/15/20		2,156,640
1,000,000	Newport News, VA, General Water Improvements, Refunding G.O., Series B, 5.250%, 7/1/21		1,147,470
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		1,121,280
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		1,149,310
1,000,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/24		1,157,810
1,465,000	Norfolk, VA, Economic Development Authority, Sentara Healthcare, Refunding Revenue, Series B, Callable 11/1/22 @ 100, 5.000%, 11/1/36		1,642,675
1,000,000	Norfolk, VA, Public Improvements, G.O., Series A, Callable 10/1/26 @ 100, 5.000%, 10/1/30		1,210,120

Continued

112

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal     Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Virginia — (continued)
	$   250,000	Orange County Economic Development Authority, Current Refunding Revenue Bonds, Series A, 5.000%, 11/1/25	$	302,700
	1,000,000	Pittsylvania County, VA, School Improvements G.O., Series B, 5.000%, 2/1/19		1,052,710
	1,775,000	Pittsylvania County, VA, School Improvements G.O., Series B, Callable 2/1/19 @ 100, OID, 5.375%, 2/1/21		1,879,015
	1,160,000	Poquoson, VA, Refunding G.O., (State Aid Withholding), 5.000%, 2/15/21		1,308,039
	1,700,000	Portsmouth, VA, Public Improvements, Refunding G.O., Series A, Callable 2/1/23 @ 100, (State Aid Withholding), 5.000%, 2/1/27		1,980,942
	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		1,543,612
	825,000	Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23		887,700
	615,000	Portsmouth, VA, Refunding G.O., Series B, Callable 7/15/19 @ 100, 5.250%, 7/15/23		659,674
	1,520,000	Powhatan County Economic Development Authority, School Improvements, Callable 10/15/26 @100, 5.000%, 10/15/27		1,850,767
	1,150,000	Prince William County, VA, County Facilities, Refunding Certificate of Participation, 5.000%, 10/1/21		1,313,127
	1,245,000	Rappahannock Regional Jail Authority, Refunding Revenue, Callable 10/1/2025 @ 100, 5.000%, 10/1/26		1,503,151
	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		2,362,780
	1,250,000	Richmond, VA, Public Utility Advance Refunding Revenue Bonds, Callable 1/15/26 @ 100, 5.000%, 1/15/27		1,533,863
	1,030,000	Roanoke, VA, Public Improvements, Advance Refunding G.O., (State Aid Withholding), 4.000%, 4/1/26		1,193,028
	885,000	Smyth County, VA, Industrial Development Authority, Mountain States Health Alliance Refunding Revenue, 5.000%, 7/1/20		951,118
	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		1,077,510
	1,530,000	Smyth County, VA, Public Improvement, Refunding G.O., Series A, Callable 11/1/21 @ 100 (State Aid Withholding), 5.000%, 11/1/25		1,760,173
	1,220,000	Spotsylvania County, VA, Economic Development Authority, Refunding Revenue, 5.000%, 6/1/22		1,408,978
	1,420,000	Spotsylvania County, VA, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/20 @ 100, 5.000%, 6/1/28		1,551,563
	1,135,000	Virginia Beach, VA, Public Improvements, G.O., Series A, Callable 4/1/22 @ 100 (State Aid Withholding), 5.000%, 4/1/23		1,313,899

Principal     Amount			Fair Value
	MUNICIPAL BONDS — (continued)
		Virginia — (continued)
	$2,500,000	Virginia College Building Authority, 21st Century College & Equipment, University & College Improvements Revenue, Series A, 5.000%, 2/1/22	$	2,878,675
	1,750,000	Virginia College Building Authority, Advance Refunding Revenue, Series B, Callable 9/1/24 @100 (State Intercept), 4.000%, 9/1/25		1,962,345
	1,805,000	Virginia College Building Authority, Public Higher Education Financing Program, Refunding Revenue, Series B, (State Intercept), 5.000%, 9/1/20		2,005,391
	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		2,168,885
	1,500,000	Virginia Port Authority Commonwealth Port Fund, Port, Airport & Marina Improvements Revenue, Callable 7/1/20 @ 100, 5.000%, 7/1/28		1,649,295
	2,000,000	Virginia Public Building Authority, Public Improvements Revenue, Series A, Callable 8/1/21 @ 100, 5.000%, 8/1/26		2,283,720
	1,515,000	Virginia Public School Authority, Advance Refunding Revenue, Callable 8/1/25 @ 100 (State Aid Withholding), 5.000%, 8/1/26		1,848,133
	1,525,000	Western Regional Jail Authority, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26		1,837,671
	700,000	Winchester, VA, Economic Development Authority, Valley Health System Obligated Group, Hospital Refunding Revenue, 5.000%, 1/1/22		799,687
	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		1,066,832
				95,747,238
		Total Municipal Bonds (Cost $93,912,373)		97,706,416

Continued

113

Sterling Capital Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Shares			Fair Value
	MONEY MARKET FUND — 0.7%
	737,306	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)	$	737,306
		Total Money Market Fund (Cost $737,306)		737,306
	Total Investments — 99.2% (Cost $94,649,679)			98,443,722
	Net Other Assets (Liabilities) — 0.8%			752,212
	NET ASSETS — 100.0%		$	99,195,934

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

AGM — Assured Guaranty Municipal Corp.

CR — Custodial Receipts

G.O. — General Obligation

OID — Original Issue Discount

See accompanying Notes to the Financial Statements.

114

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments

September 30, 2017

Principal     Amount			Fair Value
	MUNICIPAL BONDS — 97.5%
	$1,060,000	Berkeley County, WV, Building Commission, Judicial Center Project, Refunding Revenue, Callable 9/1/21 @ 100, 4.500%, 9/1/23	$	1,160,308
	1,085,000	Berkeley County, WV, Building Commission, Lease Refunding Revenue, Callable 12/1/22 @ 100, 4.000%, 12/1/26		1,167,742
	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		1,633,140
	655,000	Berkeley County, WV, Public Service Sewer District, Sewer Improvements Revenue, Series A, Callable 11/6/17 @100, 5.000%, 3/1/22		656,958
	1,080,000	Braxton County, WV, Board of Education, Public School, Advance Refunding G.O., Callable 5/1/26 @ 100, (West Virginia Board Commission), 5.000%, 5/1/28		1,282,619
	1,090,000	Charles Town, WV, Waterworks & Sewerage System, Water Utility Improvements Revenue, Series A, Callable 3/1/26 @100, (BAM), 4.500%, 3/1/36		1,185,473
	1,005,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series A, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,124,474
	1,495,000	Fairmont State University, WV, University & College Improvements, Refunding Revenue, Series B, Callable 6/1/21 @ 100, 5.000%, 6/1/23		1,672,726
	1,100,000	Fairmont, WV, Waterworks Refunding Revenue, Series D, Callable 7/1/19 @100, (AGM), 4.000%, 7/1/24		1,135,717
	1,390,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/26		1,558,148
	1,560,000	Marshall University, WV, University & College Improvements Revenue, Callable 5/1/21 @ 100, 5.000%, 5/1/27		1,747,559
	1,545,000	Monongalia County, WV, Board of Education, Public School Refunding G.O., (West Virginia Board Commission), 5.000%, 5/1/20		1,688,808
	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		1,148,280
	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		760,732
	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		1,087,565
	915,000	Monongalia County, WV, Building Commission, Health System Obligated Group Refunding Revenue, Callable 7/1/21 @ 100, OID, 6.250%, 7/1/31		1,038,635
	2,000,000	Monongalia County, WV, Building Commission, Monongalia Health System Group Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/26		2,355,880

Principal     Amount			Fair Value
	MUNICIPAL BONDS — (continued)
	$1,000,000	Ohio County, WV, Country Commission, Fort Henry Centre Financing District, Public Improvement, Tax Allocation, Callable 6/1/22 @ 100, 4.750%, 6/1/31	$	1,040,360
	1,000,000	Parkersburg, WV, Combined Waterworks & Sewerage System, Refunding Revenue, Series A, Callable 8/1/21 @ 100, (BAM), 4.000%, 8/1/22		1,083,660
	1,210,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/23		1,318,561
	1,165,000	Pleasants County, WV, Board of Education, Public School Improvements G.O., Callable 5/1/21 @ 100, 4.000%, 5/1/24		1,264,689
	1,655,000	Preston County, WV, Board of Education, Public School Improvements G.O., (West Virginia Board Commission), 4.000%, 5/1/21		1,807,128
	1,285,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, 5.000%, 5/1/22		1,431,927
	1,410,000	Princeton, WV, Princeton Community Hospital Project, Refunding Revenue, Series A, Callable 5/1/22 @ 100, 5.000%, 5/1/27		1,528,369
	1,005,000	Putnam County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 5/1/19		1,051,753
	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		1,075,150
	1,105,000	School Building Authority of West Virginia, Capital Improvements, Refunding Revenue, Series A, Callable 11/1/17 @ 100 (NATL), 5.000%, 7/1/18		1,108,912
	2,200,000	School Building Authority of West Virginia, Capital Improvements, Refunding Revenue, Series A, Callable 11/1/17 @ 100 (NATL), 5.000%, 7/1/20		2,207,788
	500,000	School Building Authority of West Virginia, Lottery Capital Improvements Revenue, Callable 7/1/24 @ 100, Series A, 5.000%, 7/1/27		597,650
	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		1,504,098
	1,675,000	School Building Authority of West Virginia, School Improvements Revenue, Series A, Callable 7/1/25 @100, 5.000%, 7/1/28		1,987,321
	2,000,000	State of West Virginia, Refunding G.O., 5.000%, 11/1/26		2,477,540
	1,295,000	Wayne County, WV, Board of Education, Public School Improvements, G.O., Callable 6/1/24 @ 100, (West Virginia Board Commission), 4.000%, 6/1/25		1,464,295
	2,000,000	West Virginia Commissioner Of Highways, Highway Improvements Revenue, Series A, 5.000%, 9/1/21		2,269,420
	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		3,450,600

Continued

115

Sterling Capital West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments — (continued)

September 30, 2017

Principal     Amount			Fair Value
	MUNICIPAL BONDS — (continued)
	$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	$	4,238,487
	1,185,000	West Virginia Economic Development Authority, Lottery Recreational Facilities Improvements Revenue, Series A, 5.000%, 7/1/27		1,457,325
	1,145,000	West Virginia Economic Development Authority, Lottery Recreational Facilities Improvements Revenue, Series A, Callable 7/1/27 @ 100, 5.000%, 7/1/28		1,394,186
	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		1,214,153
	1,890,000	West Virginia Economic Development Authority, The Diamond Project, Refunding Revenue, Callable 12/15/18 @ 100, 3.000%, 12/15/19		1,931,278
	1,000,000	West Virginia Higher Education Policy Commission, Higher Education Facilities, Refunding Revenue, Series A, 5.000%, 4/1/20		1,089,880
	945,000	West Virginia Hospital Finance Authority, Charleston Area Medical Center Inc., Health, Hospital, Nursing Home Improvements, Refunding Revenue, Callable 9/1/24 @100, 5.000%, 9/1/25		1,084,369
	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		2,247,080
	515,000	West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, 5.000%, 1/1/24		612,407
	630,000	West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, Callable 1/1/24 @ 100, 5.000%, 1/1/26		732,545
	1,890,000	West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A, (AMBAC), 5.375%, 7/1/21		2,092,135
	2,000,000	West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (NATL), 5.250%, 5/15/19		2,130,100
	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		1,179,000
	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		2,969,829

Principal     Amount			Fair Value
	MUNICIPAL BONDS — (continued)
	$1,500,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, 5.000%, 10/1/20	$	1,666,110
	1,750,000	West Virginia University, University Projects, University & College Improvements Revenue, Series B, Callable 10/1/21 @ 100, 5.000%, 10/1/30		1,986,880
	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		1,737,835
	520,000	West Virginia Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, 5.000%, 11/1/24		616,377
	1,000,000	West Virginia Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, 5.000%, 11/1/25		1,195,090
	2,205,000	Wood County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 6/1/25		2,521,572
	1,295,000	Wood County, WV, Board Of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 6/1/26		1,485,831
	1,550,000	Wood County, WV, Board of Education, Public School Improvements, G.O., Callable 6/1/27 @ 100, (West Virginia Board Commission), 3.000%, 6/1/29		1,551,379
		Total Municipal Bonds (Cost $84,881,613)		88,207,833
Shares
	MONEY MARKET FUND — 1.3%
	1,145,368	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)		1,145,368
		Total Money Market Fund (Cost $1,145,368)		1,145,368
	Total Investments — 98.8% (Cost $86,026,981)			89,353,201
	Net Other Assets (Liabilities) — 1.2%			1,086,285
	NET ASSETS — 100.0%		$	90,439,486

(a) 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.

116

Sterling Capital Diversified Income Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	EQUITY FUNDS — 36.6%
	67,010	First Trust DJ Global Select Dividend Index Fund	$	1,728,858
	43,126	Global SuperDividend U.S. ETF		1,100,144
	117,504	Global X MLP ETF		1,209,116
	215,926	Madison Covered Call & Equity Income Fund		1,992,994
	24,276	SPDR S&P Global Dividend ETF	��	1,649,069
	12,959	Vanguard High Dividend Yield ETF		1,050,586
		Total Equity Funds (Cost $8,206,086)		8,730,767
	FIXED INCOME FUNDS — 62.9%
	81,575	DoubleLine Total Return Bond Fund		872,853
	105,474	Guggenheim Floating Rate Strategies Fund		2,744,439
	7,377	iShares 20+ Year Treasury Bond ETF		920,354
	56,274	PowerShares Emerging Markets Sovereign Debt Portfolio		1,675,277
	72,857	Principal Preferred Securities Fund		761,356
	236,712	Stone Ridge High Yield Reinsurance Risk Premium Fund		2,128,039
	163,761	VanEck Vectors Fallen Angel High Yield Bond ETF		4,963,596
	30,880	VanEck Vectors High-Yield Municipal Index ETF		966,853
		Total Fixed Income Funds (Cost $14,624,421)		15,032,767

Shares			Fair Value
	MONEY MARKET FUND — 0.8%
	184,922	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(a)	$	184,922
		Total Money Market Fund (Cost $184,922)		184,922
	Total Investments — 100.3% (Cost $23,015,429)			23,948,456
	Net Other Assets (Liabilities) — (0.3)%			(77,168	)
	NET ASSETS — 100.0%		$	23,871,288

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

ETF — Exchange Traded Fund

MLP — Master Limited Partnership

See accompanying Notes to the Financial Statements.

117

Sterling Capital Strategic Allocation Balanced Fund

Schedule of Portfolio Investments

September 30, 2017

Shares		Fair Value
EQUITY FUNDS — 66.6%
758,440	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	8,919,253
209,374	Sterling Capital Equity Income Fund, Institutional Shares(a)		4,373,817
337,412	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		3,154,798
165,887	Sterling Capital Special Opportunities Fund, Institutional Shares(a)		4,254,991
	Total Equity Funds (Cost $17,420,175)		20,702,859
FIXED INCOME FUND — 32.7%
958,185	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		10,156,763
	Total Fixed Income Fund (Cost $9,936,420)		10,156,763
MONEY MARKET FUND — 0.6%
200,988	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(c)		200,988
	Total Money Market Fund (Cost $200,988)		200,988
Total Investments — 99.9% (Cost $27,557,583)			31,060,610
Net Other Assets (Liabilities) — 0.1%			15,634
NET ASSETS — 100.0%		$	31,076,244

(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.

118

Sterling Capital Strategic Allocation Growth Fund

Schedule of Portfolio Investments

September 30, 2017

Shares			Fair Value
	EQUITY FUNDS — 83.2%
	742,596	Sterling Capital Behavioral International Equity Fund, Institutional Shares(a)	$	8,732,934
	199,299	Sterling Capital Equity Income Fund, Institutional Shares(a)		4,163,361
	313,902	Sterling Capital Long/Short Equity Fund, Institutional Shares(a)(b)		2,934,988
	158,748	Sterling Capital Special Opportunities Fund, Institutional Shares(a)		4,071,874
		Total Equity Funds (Cost $16,654,789)		19,903,157
	FIXED INCOME FUND — 16.4%
	370,972	Sterling Capital Total Return Bond Fund, Institutional Shares(a)		3,932,304
		Total Fixed Income Fund (Cost $3,962,991)		3,932,304
	MONEY MARKET FUND — 0.4%
	92,925	Federated Treasury Obligations Fund, Institutional Shares, 0.870%(c)		92,925
		Total Money Market Fund (Cost $92,925)		92,925
	Total Investments — 100.0% (Cost $20,710,705)			23,928,386
	Net Other Assets (Liabilities) — 0.0%			5,876
	NET ASSETS — 100.0%		$	23,934,262

(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.

119

Sterling Capital Funds

Statements of Assets and Liabilities

September 30, 2017

Assets:	Sterling Capital Behavioral Large Cap Value Equity Fund				Sterling Capital Mid Value Fund
Investments at fair value (a)		$	306,370,483			$	669,787,738
Cash			—				—
Cash held at broker for securities sold short			—				—
Foreign currency, at value (cost $ —, $ —, $ —, $ —, $ —, $174,733, $ —, $ — and $ —, respectively)			—				—
Interest and dividends receivable			330,443				957,151
Receivable for investments sold			—				—
Receivable for capital shares issued			301,687				849,543
Receivable from Advisor			—				—
Prepaid and other expenses			22,910				28,527
Total Assets			307,025,523				671,622,959
Liabilities:
Call options written (premiums received $ —, $ —, $ —, $689,781, $80,298, $ —, $ —, $ — and $ —, respectively)			—				—
Securities sold short, at value (proceeds $ —, $ —, $ —, $ —, $ —, $8,776,850, $ —, $ — and $ —, respectively)			—				—
Distributions payable			—				—
Payable for investments purchased			—				—
Payable for capital shares redeemed			2,974				318,178
Payable for dividends on short sales			—				—
Accrued expenses and other payables:
Investment advisory fees			111,184				375,158
Accounting out-of-pocket fees			2,613				3,367
Administration fees			20,410				44,270
Audit fees			16,057				35,526
Compliance service fees			309				632
Distribution (12b-1) fees			7,503				10,254
Transfer agent fees			21,245				67,180
Other fees and liabilities			15,740				34,220
Total Liabilities			198,035				888,785
Net Assets		$	306,827,488			$	670,734,174
Net Assets Consist of:
Capital		$	256,165,598			$	519,077,215
Undistributed (distributions in excess of) net investment income (loss)			1,711,661				—
Accumulated realized gain (loss)			21,925				23,670,949
Net unrealized appreciation (depreciation)			48,928,304				127,986,010
Net Assets		$	306,827,488			$	670,734,174
Net Assets
Class A Shares		$	33,358,445			$	33,502,930
Class C Shares			965,512				4,362,800
Institutional Shares			272,503,531				632,866,896
Class R Shares			—				1,548
Total		$	306,827,488			$	670,734,174
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			1,610,897				1,789,488
Class C Shares			47,956				260,340
Institutional Shares			13,085,672				33,307,897
Class R Shares			—				85
Total			14,744,525				35,357,810
Net Asset Value
Class A Shares - redemption price per share		$	20.71			$	18.72
Class C Shares - offering price per share**		$	20.13			$	16.76
Institutional Shares		$	20.82			$	19.00
Class R Shares		$	—			$	18.15	*
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		$	21.97			$	19.86
(a) Investments at cost		$	257,442,179			$	541,801,728

* The Sterling Capital Mid Value Fund net asset value for Class R and Sterling Capital Stratton Mid Cap Value Fund net asset value for Class A and Class C Shares is calculated using unrounded net assets of $1,547.53, $107,675.31 and $1,294.15 divided by the unrounded shares of 85.26, 1,625.79 and 19.79, respectively.

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

See accompanying Notes to the Financial Statements.

120

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 SMID Opportunities Fund				Sterling Capital Stratton Mid Cap Value Fund
	$	217,350,744			$	1,146,365,325			$	1,564,851,719			$	33,804,117			$	81,977,921			$	9,729,949			$	66,132,966
		—				—				—				222				—				—				—
		—				—				—				8,732,939				—				—				—
		—				—				—				—				173,376				—				—
		386,316				817,761				1,337,607				21,391				351,998				13,621				51,407
		—				1,705,926				2,661,902				617,726				—				147,235				—
		319,064				2,315,417				1,474,051				1,000				71				14,961				71
		—				—				—				—				—				5,076				—
		13,782				32,419				34,237				11,976				2,547				6,537				8,970
		218,069,906				1,151,236,848				1,570,359,516				43,189,371				82,505,913				9,917,379				66,193,414
		—				1,013,750				142,500				—				—				—				—
		—				—				—				8,422,685				—				—				—
		—				—				33				—				—				—				—
		—				1,698,816				199,232				1,346,925				—				—				—
		87				1,142,653				1,364,161				27,989				—				—				—
		—				—				—				4,400				—				—				—
		102,645				605,206				698,487				35,230				26,734				—				37,185
		4,108				5,161				7,023				4,666				10,947				571				873
		14,131				76,915				104,908				2,188				5,521				656				4,388
		11,143				62,237				88,586				1,976				4,098				511				3,526
		240				1,017				1,341				89				124				70				115
		2,004				193,390				263,891				172				152				1,931				22
		16,308				136,258				196,527				2,498				5,145				1,264				4,979
		10,975				59,145				82,042				8,601				8,172				493				3,528
		161,641				4,994,548				3,148,731				9,857,419				60,893				5,496				54,616
	$	217,908,265			$	1,146,242,300			$	1,567,210,785			$	33,331,952			$	82,445,020			$	9,911,883			$	66,138,798
	$	162,285,907			$	732,472,680			$	988,754,501			$	51,774,982			$	66,791,338			$	8,692,822			$	39,893,516
		1,128,976				535,498				21,736				(396,924	)			1,957,602				—				196,283
		7,599,577				80,978,638				116,014,537				(21,607,079	)			693,968				126,713				1,570,012
		46,893,805				332,255,484				462,420,011				3,560,973				13,002,112				1,092,348				24,478,987
	$	217,908,265			$	1,146,242,300			$	1,567,210,785			$	33,331,952			$	82,445,020			$	9,911,883			$	66,138,798
	$	9,280,673			$	343,873,256			$	348,427,452			$	390,661			$	509,860			$	4,037,782			$	107,675
		191,166				149,891,808				234,108,195				119,194				58,755				1,414,256				1,294
		208,403,900				652,211,326				980,981,572				32,822,097				81,876,405				4,459,845				66,029,829
		32,526				265,910				3,693,566				—				—				—				—
	$	217,908,265			$	1,146,242,300			$	1,567,210,785			$	33,331,952			$	82,445,020			$	9,911,883			$	66,138,798
		504,659				14,028,760				16,720,875				42,177				43,398				343,766				1,625
		10,808				7,177,121				11,333,546				13,237				5,047				121,222				20
		11,231,809				25,423,904				46,967,744				3,508,264				6,961,040				378,955				993,440
		1,775				10,728				178,476				—				—				—				—
		11,749,051				46,640,513				75,200,641				3,563,678				7,009,485				843,943				995,085
	$	18.39			$	24.51			$	20.84			$	9.26			$	11.75			$	11.75			$	66.23	*
	$	17.69			$	20.88			$	20.66			$	9.00			$	11.64			$	11.67			$	65.40	*
	$	18.55			$	25.65			$	20.89			$	9.36			$	11.76			$	11.77			$	66.47
	$	18.32			$	24.79			$	20.70			$	—			$	—			$	—			$	—
		5.75	%			5.75	%			5.75	%			5.75	%			5.75	%			5.75	%			5.75	%
	$	19.51			$	26.01			$	22.11			$	9.82			$	12.47			$	12.46			$	70.27
	$	170,456,939			$	813,785,872			$	1,102,369,506			$	30,597,309			$	68,979,692			$	8,637,601			$	41,653,979

121

Sterling Capital Funds

Statements of Assets and Liabilities

September 30, 2017

Assets:	Sterling Capital Stratton Real Estate Fund				Sterling Capital Stratton Small Cap Value Fund
Investments at fair value (a)		$	96,191,590			$	1,184,473,344
Cash			—				—
Interest and dividends receivable			381,390				1,676,938
Receivable for capital shares issued			68,900				663,813
Prepaid expenses			11,071				20,745
Total Assets			96,652,951				1,186,834,840
Liabilities:
Cash overdraft			—				—
Distributions payable			192				—
Payable for investments purchased			—				—
Payable for capital shares redeemed			13,036				1,063,579
Accrued expenses and other payables:
Investment advisory fees			46,229				797,924
Accounting out-of-pocket fees			910				5,538
Administration fees			6,642				77,541
Audit Fees			5,297				66,720
Compliance service fees			140				1,005
Distribution (12b-1) fees			82				187
Transfer agent fees			9,594				130,374
Other fees			5,240				81,235
Total Liabilities			87,362				2,224,103
Net Assets		$	96,565,589			$	1,184,610,737
Net Assets Consist of:
Capital		$	61,759,769			$	433,963,710
Undistributed (distributions in excess of) net investment income			(193	)			1,672,230
Accumulated realized gain (loss)			3,578,487				71,489,899
Net unrealized appreciation (depreciation)			31,227,526				677,484,898
Net Assets		$	96,565,589			$	1,184,610,737
Net Assets
Class A Shares		$	301,840			$	529,347
Class C Shares			64,280				107,140
Institutional Shares			96,199,469				1,183,974,250
Class R Shares			—				—
Total		$	96,565,589			$	1,184,610,737
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			8,149				5,888
Class C Shares			1,742				1,207
Institutional Shares			2,593,047				13,128,146
Class R Shares			—				—
Total			2,602,938				13,135,241
Net Asset Value
Class A Shares - redemption price per share		$	37.04			$	89.91	*
Class C Shares - offering price per share**		$	36.91	*		$	88.75	*
Institutional Shares		$	37.10			$	90.19
Class R Shares		$	—			$	—
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		$	39.30			$	95.40
(a) Investments at cost		$	64,964,064			$	506,988,446

* The Sterling Capital Stratton Real Estate Fund net asset value for Class C, Sterling Capital Stratton Small Cap Value Fund net asset value for Class A and Class C, and Sterling Capital Kentucky Intermediate Tax-Free Fund net asset value for Class C is calculated using unrounded net assets of $64,279.93, $529,347.36, $107,140.06 and $1,564.47 divided by the unrounded shares of 1,741.549, 5,887.63, 1,207.27, and 152.16, respectively.

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

See accompanying Notes to the Financial Statements.

122

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
	$	38,347,200			$	75,185,567			$	22,305,238			$	1,082,144,458			$	29,967,612			$	39,628,409			$	11,959,312
		—				—				3,750				64,073				1,804				—				—
		210,504				497,719				135,168				6,524,573				302,252				117,579				164,730
		543				15,525				135				3,972,051				38,374				—				2,659
		13,658				12,537				6,374				31,096				4,024				7,703				1,929
		38,571,905				75,711,348				22,450,665				1,092,736,251				30,314,066				39,753,691				12,128,630
		—				—				—				—				—				853				—
		3,627				93,677				26,266				931,679				136				2,405				14,377
		—				791,966				—				14,103,417				295,732				—				—
		2,922				21,639				1,130				446,819				109,333				59,056				4,891
		3,188				12,481				5,888				235,692				8,608				10,345				3,538
		8,577				9,823				2,166				21,384				5,864				9,048				1,615
		2,633				5,155				1,520				72,114				2,032				2,757				835
		2,533				4,529				1,359				50,450				1,675				2,342				691
		94				130				83				837				87				96				73
		960				2,460				1,602				20,613				111				45				845
		3,301				6,366				2,041				95,285				2,131				2,961				985
		2,461				4,484				1,405				65,937				2,145				2,874				728
		30,296				952,710				43,460				16,044,227				427,854				92,782				28,578
	$	38,541,609			$	74,758,638			$	22,407,205			$	1,076,692,024			$	29,886,212			$	39,660,909			$	12,100,052
	$	39,601,862			$	82,705,646			$	22,767,254			$	1,082,306,119			$	29,214,529			$	41,015,069			$	11,568,363
		(1,683	)			(4,689	)			252,932				952,269				(136	)			81				12,809
		(1,000,531	)			(7,895,635	)			(702,595	)			(16,344,790	)			139,884				(1,805,946	)			32,587
		(58,039	)			(46,684	)			89,614				9,778,426				531,935				451,705				486,293
	$	38,541,609			$	74,758,638			$	22,407,205			$	1,076,692,024			$	29,886,212			$	39,660,909			$	12,100,052
	$	4,662,947			$	5,745,794			$	5,418,066			$	72,030,245			$	372,014			$	94,315			$	4,072,307
		—				1,546,241				577,222				7,582,234				42,930				33,748				1,564
		33,878,662				67,466,603				16,411,917				997,074,124				29,471,268				39,532,846				8,026,181
		—				—				—				5,421				—				—				—
	$	38,541,609			$	74,758,638			$	22,407,205			$	1,076,692,024			$	29,886,212			$	39,660,909			$	12,100,052
		476,473				661,086				546,860				6,800,102				36,297				9,490				396,395
		—				177,990				58,354				714,775				4,196				3,397				152
		3,462,088				7,762,694				1,654,908				94,085,748				2,876,667				3,973,434				782,413
		—				—				—				514				—				—				—
		3,938,561				8,601,770				2,260,122				101,601,139				2,917,160				3,986,321				1,178,960
	$	9.79			$	8.69			$	9.91			$	10.59			$	10.25			$	9.94			$	10.27
	$	—			$	8.69			$	9.89			$	10.61			$	10.23			$	9.93			$	10.28	*
	$	9.79			$	8.69			$	9.92			$	10.60			$	10.24			$	9.95			$	10.26
	$	—			$	—			$	—			$	10.55			$	—			$	—			$	—
		0.50	%			2.00	%			2.00	%			5.75	%			2.00	%			2.00	%			2.00	%
	$	9.84			$	8.87			$	10.11			$	11.24			$	10.46			$	10.14			$	10.48
	$	38,405,239			$	75,232,251			$	22,215,624			$	1,072,366,032			$	29,435,677			$	39,176,704			$	11,473,019

123

Sterling Capital Funds

Statements of Assets and Liabilities

September 30, 2017

Assets:	Sterling Capital Maryland Intermediate Tax-Free Fund				Sterling Capital North Carolina Intermediate Tax-Free Fund
Investments at fair value - unaffiliated (a)		$	23,218,048			$	188,289,651
Investments at fair value - affiliated (b)			—				—
Interest and dividends receivable - unaffiliated			261,281				2,660,920
Dividends receivable - affiliated			—				—
Receivable for capital shares issued			—				430
Prepaid and other expenses			6,554				8,528
Total Assets			23,485,883				190,959,529
Liabilities:
Distributions payable			27,410				218,907
Payable for investments purchased			—				—
Payable for capital shares redeemed			4,642				182,712
Accrued expenses and other payables:
Investment advisory fees			6,839				55,932
Administration fees			1,614				13,203
Audit fees			1,523				11,204
Compliance service fees			84				227
Distribution (12b-1) fees			1,724				13,339
Printing fees			672				4,930
Transfer agent fees			2,089				14,851
Other fees			3,135				12,695
Total Liabilities			49,732				528,000
Net Assets		$	23,436,151			$	190,431,529
Net Assets Consist of:
Capital		$	22,260,653			$	183,669,099
Undistributed net investment income (loss)			17,735				98,063
Accumulated realized gain (loss)			90,225				(1,309,942	)
Net unrealized appreciation			1,067,538				7,974,309
Net Assets		$	23,436,151			$	190,431,529
Net Assets
Class A Shares		$	5,817,934			$	45,356,531
Class C Shares			627,002				4,590,564
Institutional Shares			16,991,215				140,484,434
Total		$	23,436,151			$	190,431,529
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value)
Class A Shares			527,930				4,207,454
Class C Shares			56,878				426,128
Institutional Shares			1,539,290				13,032,186
Total			2,124,098				17,665,768
Net Asset Value
Class A Shares - redemption price per share		$	11.02			$	10.78
Class C Shares - offering price per share*		$	11.02			$	10.77
Institutional Shares		$	11.04			$	10.78
Maximum Sales Charge - Class A Shares			2.00	%			2.00	%
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares		$	11.25			$	11.00
Investments at cost:
(a) Investments at cost - unaffiliated		$	22,150,510			$	180,315,342
(b) Investments at cost - affiliated		$	—			$	—

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

See accompanying Notes to the Financial Statements.

124

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				Sterling Capital Strategic Allocation Balanced Fund				Sterling Capital Strategic Allocation Growth Fund
	$	86,082,831			$	98,443,722			$	89,353,201			$	23,948,456			$	200,988			$	92,925
		—				—				—				—				30,859,622				23,835,461
		1,087,450				1,197,331				1,249,981				39,809				—				—
		—				—				—				—				24,550				9,543
		12,837				5,458				21,097				94				544				12
		4,430				8,411				7,563				3,965				5,981				6,748
		87,187,548				99,654,922				90,631,842				23,992,324				31,091,685				23,944,689
		90,130				116,883				109,756				1,658				141				74
		—				—				—				39,687				—				—
		23,017				276,026				21,719				62,795				2,162				835
		25,518				28,827				26,110				4,935				—				—
		6,023				6,804				6,163				1,631				—				—
		4,946				5,893				5,280				1,781				1,734				1,281
		135				146				136				82				88				82
		4,525				6,522				6,849				4,000				6,776				4,977
		2,174				2,595				2,324				789				763				563
		6,712				7,906				7,397				2,612				2,614				1,652
		7,000				7,386				6,622				1,066				1,163				963
		170,180				458,988				192,356				121,036				15,441				10,427
	$	87,017,368			$	99,195,934			$	90,439,486			$	23,871,288			$	31,076,244			$	23,934,262
	$	84,668,855			$	95,847,003			$	86,929,699			$	29,110,393			$	31,689,952			$	27,289,861
		28,159				63,206				67,797				36,561				8,861				1,484
		(582,808	)			(508,318	)			115,770				(6,208,693	)			(4,125,596	)			(6,574,764	)
		2,903,162				3,794,043				3,326,220				933,027				3,503,027				3,217,681
	$	87,017,368			$	99,195,934			$	90,439,486			$	23,871,288			$	31,076,244			$	23,934,262
	$	15,831,687			$	27,480,798			$	30,134,008			$	14,753,847			$	30,180,859			$	22,835,630
		1,439,717				935,300				738,603				1,155,377				784,549				406,896
		69,745,964				70,779,836				59,566,875				7,962,064				110,836				691,736
	$	87,017,368			$	99,195,934			$	90,439,486			$	23,871,288			$	31,076,244			$	23,934,262
		1,426,104				2,336,352				3,000,730				1,367,634				2,537,741				1,918,364
		129,729				79,529				73,524				107,993				67,243				35,472
		6,325,691				6,019,292				5,925,107				729,081				9,250				57,980
		7,881,524				8,435,173				8,999,361				2,204,708				2,614,234				2,011,816
	$	11.10			$	11.76			$	10.04			$	10.79			$	11.89			$	11.90
	$	11.10			$	11.76			$	10.05			$	10.70			$	11.67			$	11.47
	$	11.03			$	11.76			$	10.05			$	10.92			$	11.98			$	11.93
		2.00	%			2.00	%			2.00	%			5.75	%			5.75	%			5.75	%
	$	11.33			$	12.00			$	10.25			$	11.45			$	12.62			$	12.63
	$	83,179,669			$	94,649,679			$	86,026,981			$	23,015,429			$	200,988			$	92,925
	$	—			$	—			$	—			$	—			$	27,356,595			$	20,617,780

125

Sterling Capital Funds

Statements of Operations

For the Year Ended September 30, 2017

	Sterling Capital Behavioral Large Cap Value Equity Fund			Sterling Capital Mid Value Fund
Investment Income:
Interest income		$	—		$	—
Dividend income			8,023,037			6,813,811
Foreign tax withholding			—			—
Total investment income			8,023,037			6,813,811
Expenses:
Investment advisory fees (See Note 5)			1,310,076			4,515,061
Administration fees (See Note 5)			240,276			532,325
Distribution fees - Class A Shares (See Note 5)			79,656			82,335
Distribution fees - Class B Shares (See Note 5)			902			1,155
Distribution fees - Class C Shares (See Note 5)			10,337			50,265
Distribution fees - Class R Shares (See Note 5)			—			2
Compliance service fees (See Note 5)			3,327			6,944
Trustee fees			23,928			52,810
Accounting and out-of-pocket fees			10,148			14,322
Audit fees			25,244			55,937
Custodian fees			13,972			30,907
Fund accounting fees (See Note 5)			21,835			48,376
Interest expense (See Note 7)			—			—
Legal fees			34,764			76,232
Offering costs			—			—
Printing fees			22,736			46,396
Transfer agent fees (See Note 5)			83,620			339,836
Other fees			65,659			101,634
Total expenses excluding dividend expense and service fee on securities sold short			1,946,480			5,954,537
Dividend expense			—			—
Service fee on securities sold short			—			—
Total expenses before waivers			1,946,480			5,954,537
Less expenses waived by the Investment Advisor (See Note 5)			—			—
Net expenses			1,946,480			5,954,537
Net investment income (loss)			6,076,557			859,274
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments			19,515,133			36,656,141
Written options			—			—
Foreign currency transactions			—			—
Short sales			—			—
Change in unrealized appreciation/depreciation on:
Investments			25,080,854			53,440,681
Written options			—			—
Foreign currency transactions			—			—
Short sales			—			—
Total realized and unrealized gain (loss)			44,595,987			90,096,822
Change in net assets from operations		$	50,672,544		$	90,956,096

* Commencement of operations was October 3, 2016.

See accompanying Notes to the Financial Statements.

126

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 SMID Opportunities Fund*				Sterling Capital Stratton Mid Cap Value Fund
	$	—			$	—		$	—			$	164,909			$	—			$	—			$	—
		3,612,351				13,377,568			45,938,671				333,226				2,607,952				79,588				784,892
		(502	)			—			(536,624	)			(2,738	)			(187,168	)			(521	)			(3,320	)
		3,611,849				13,377,568			45,402,047				495,397				2,420,784				79,067				781,572
		1,309,245				7,335,257			8,857,420				540,875				490,718				55,742				445,630
		166,984				931,495			1,329,334				29,770				61,070				6,569				52,549
		23,529				882,073			1,095,032				984				1,050				7,479				204
		425				6,413			5,257				—				—				—				—
		3,267				1,688,638			2,541,313				1,586				527				11,246				12
		29				1,460			14,302				—				—				—				—
		2,439				11,817			16,702				748				1,126				464				1,026
		16,496				94,078			136,492				3,053				6,091				599				5,298
		13,778				23,382			32,818				14,170				33,329				2,180				3,661
		17,532				97,975			139,765				3,219				6,411				1,273				5,641
		9,917				53,213			75,961				2,021				30,081				639				3,241
		15,177				84,638			120,783				60,672				5,549				596				4,775
		—				541			—				768				20				—				—
		23,479				136,686			195,775				25,543				8,745				13,083				7,677
		—				—			—				—				—				6,757				—
		16,345				93,298			128,230				4,027				6,735				10,195				3,652
		70,522				753,327			1,367,300				18,034				23,381				4,716				24,236
		52,563				169,783			177,270				35,566				26,288				6,850				25,984
		1,741,727				12,364,074			16,233,754				741,036				701,121				128,388				583,586
		—				—			—				230,063				—				—				—
		—				—			—				272,561				—				—				—
		1,741,727				12,364,074			16,233,754				1,243,660				701,121				128,388				583,586
		(95,077	)			—			—				(16,719	)			(194,798	)			(46,754	)			(4,247	)
		1,646,650				12,364,074			16,233,754				1,226,941				506,323				81,634				579,339
		1,965,199				1,013,494			29,168,293				(731,544	)			1,914,461				(2,567	)			202,233
		11,740,082				92,864,544			143,837,380				3,007,558				2,349,244				151,598				2,543,953
		—				983,341			1,233,367				83,235				—				—				—
		—				—			12,181				390				(36,536	)			—				—
		—				—			—				(1,383,807	)			—				—				—
		24,476,737				72,562,613			66,800,174				1,917,933				11,625,661				1,092,348				8,606,305
		—				44,115			(70,893	)			(2,898	)			—				—				—
		—				—			—				(2	)			5,485				—				—
		—				—			—				(98,387	)			—				—				—
		36,216,819				166,454,613			211,812,209				3,524,022				13,943,854				1,243,946				11,150,258
	$	38,182,018			$	167,468,107		$	240,980,502			$	2,792,478			$	15,858,315			$	1,241,379			$	11,352,491

127

Sterling Capital Funds

Statements of Operations

For the Year Ended September 30, 2017

	Sterling Capital Stratton Real Estate Fund				Sterling Capital Stratton Small Cap Value Fund			Sterling Capital Ultra Short Bond Fund				Sterling Capital Short Duration Bond Fund
Investment Income:
Interest income		$	—			$	—		$	629,572			$	1,464,545
Dividend income			2,877,507				15,372,456			5,314				35,272
Total investment income			2,877,507				15,372,456			634,886				1,499,817
Expenses:
Investment advisory fees (See Note 5)			546,581				10,412,525			92,395				246,985
Administration fees (See Note 5)			78,475				1,011,056			38,144				67,972
Distribution fees - Class A Shares (See Note 5)			496				814			13,733				16,418
Distribution fees - Class B Shares (See Note 5)			—				—			—				—
Distribution fees - Class C Shares (See Note 5)			232				1,002			—				17,759
Distribution fees - Class R Shares (See Note 5)			—				—			—				—
Compliance service fees (See Note 5)			1,337				12,758			852				1,223
Trustee fees			7,867				102,741			4,079				6,888
Accounting and out-of-pocket fees			3,585				25,041			28,939				30,366
Audit fees			8,138				106,919			4,024				7,160
Custodian fees			4,687				58,231			2,419				4,134
Fund accounting fees (See Note 5)			7,129				91,875			3,465				6,175
Interest expense (See Note 7)			381				—			—				—
Legal fees			11,585				145,602			5,841				10,064
Printing fees			5,970				85,088			3,770				6,336
Registration fees			27,197				48,961			31,232				33,685
Transfer agent fees (See Note 5)			59,131				883,456			23,873				27,940
Other fees			4,495				49,079			4,174				6,574
Total expenses before waivers			767,286				13,035,148			256,940				489,679
Less expenses waived by the Investment Advisor (See Note 5)			(12,692	)			—			(46,198	)			(82,328	)
Net expenses			754,594				13,035,148			210,742				407,351
Net investment income			2,122,913				2,337,308			424,144				1,092,466
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments			2,939,296				82,152,610			5,950				(87,137	)
Change in unrealized appreciation/depreciation on investments			(4,404,129	)			147,809,607			118,167				33,904
Total realized and unrealized gain			(1,464,833	)			229,962,217			124,117				(53,233	)
Change in net assets from operations		$	658,080			$	232,299,525		$	548,261			$	1,039,233

See accompanying Notes to the Financial Statements.

128

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
	$	595,699			$	25,625,397			$	1,120,255			$	1,233,084			$	364,209
		1,886				291,573				9,768				2,255				3,023
		597,585				25,916,970				1,130,023				1,235,339				367,232
		88,696				3,358,088				106,257				148,719				48,040
		20,407				749,160				25,063				35,079				10,331
		15,280				175,115				1,073				369				10,474
		240				1,199				—				—				—
		6,412				78,094				454				361				39
		—				26				—				—				—
		635				9,486				689				812				510
		2,097				72,334				2,487				3,581				1,047
		7,485				71,701				15,803				27,882				5,706
		2,150				78,823				2,641				3,698				1,088
		1,387				43,268				1,642				2,235				836
		1,853				68,069				2,277				3,187				939
		—				—				—				148				—
		3,092				153,569				5,319				7,344				1,516
		2,358				67,968				1,813				3,306				1,314
		19,529				61,508				17,146				2,750				11,113
		8,765				414,820				7,265				12,488				3,884
		3,859				47,485				3,692				19,697				2,511
		184,245				5,450,713				193,621				271,656				99,348
		(9,590	)			(907,591	)			—				(16,996	)			(4,239	)
		174,655				4,543,122				193,621				254,660				95,109
		422,930				21,373,848				936,402				980,679				272,123
		(326	)			1,138,610				191,973				20,227				32,828
		(716,174	)			(9,697,355	)			(442,237	)			(532,285	)			(326,097	)
		(716,500	)			(8,558,745	)			(250,264	)			(512,058	)			(293,269	)
	$	(293,570	)		$	12,815,103			$	686,138			$	468,621			$	(21,146	)

129

Sterling Capital Funds

Statements of Operations

For the Year Ended September 30, 2017

	Sterling Capital Maryland Intermediate Tax-Free Fund				Sterling Capital North Carolina Intermediate Tax-Free Fund
Investment Income:
Interest income		$	757,053			$	5,830,773
Dividend income - unaffiliated			3,316				15,420
Dividend income - affiliated			—				—
Total investment income			760,369				5,846,193
Expenses:
Investment advisory fees (See Note 5)			107,315				780,477
Administration fees (See Note 5)			22,893				167,627
Distribution fees - Class A Shares (See Note 5)			15,120				118,487
Distribution fees - Class B Shares (See Note 5)			—				—
Distribution fees - Class C Shares (See Note 5)			6,957				52,391
Compliance service fees (See Note 5)			665				2,443
Trustee fees			2,381				17,051
Accounting and out-of-pocket fees			7,248				23,493
Audit fees			2,414				17,666
Custodian fees			1,535				9,728
Fund accounting fees (See Note 5)			2,080				15,229
Interest expense (See Note 7)			2				—
Legal fees			3,489				24,912
Printing fees			2,320				14,850
Registration fees			14,457				13,791
Transfer agent fees (See Note 5)			9,611				68,042
Other fees			3,542				13,393
Total expenses before waivers			202,029				1,339,580
Less expenses waived by the Investment Advisor (See Note 5)			(10,263	)			(69,799	)
Net expenses			191,766				1,269,781
Net investment income			568,603				4,576,412
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investments - unaffiliated			90,250				(1,316,007	)
Investments - affiliated			—				—
Distributions from unaffiliated funds			—				—
Distributions from affiliated funds			—				—
Change in unrealized appreciation/depreciation on investments			(730,718	)			(3,866,576	)
Total realized and unrealized gain			(640,468	)			(5,182,583	)
Change in net assets from operations		$	(71,865	)		$	(606,171	)

See accompanying Notes to the Financial Statements.

130

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				Sterling Capital Strategic Allocation Balanced Fund				Sterling Capital Strategic Allocation Growth Fund
	$	2,308,952			$	2,915,091			$	2,767,714			$	—			$	—			$	—
		10,996				9,476				6,871				1,505,238				2,162				1,598
		—				—				—				—				559,782				343,393
		2,319,948				2,924,567				2,774,585				1,505,238				561,944				344,991
		344,113				412,414				369,348				81,647				78,634				57,997
		73,968				88,377				79,142				26,963				—				—
		42,462				75,875				82,751				37,492				76,194				54,925
		—				—				—				870				1,108				1,223
		16,987				10,287				7,970				11,525				7,489				4,086
		1,290				1,468				1,354				715				702				618
		7,505				9,097				8,093				2,938				2,628				1,920
		15,328				14,384				12,929				1,603				1,493				1,329
		7,791				9,310				8,338				2,839				2,731				2,014
		4,435				5,216				4,714				1,764				1,725				1,342
		6,720				8,029				7,190				2,450				2,359				1,740
		—				—				—				—				89				21
		10,883				13,311				11,798				4,258				6,656				4,943
		6,989				7,916				7,223				3,067				3,122				2,520
		12,061				16,340				17,373				20,362				16,226				18,164
		31,439				33,134				35,071				13,132				10,868				6,738
		6,853				8,200				7,396				4,693				4,202				3,685
		588,824				713,358				660,690				216,318				216,226				163,265
		(30,518	)			(37,740	)			(33,808	)			—				(78,634	)			(57,997	)
		558,306				675,618				626,882				216,318				137,592				105,268
		1,761,642				2,248,949				2,147,703				1,288,920				424,352				239,723
		(582,808	)			(421,377	)			104,033				197,228				106				16
		—				—				—				—				182,105				67,891
		—				—				—				74,677				—				—
		—				—				—				—				83,753				77,650
		(1,138,430	)			(2,441,251	)			(2,037,191	)			(530,011	)			2,692,215				2,709,231
		(1,721,238	)			(2,862,628	)			(1,933,158	)			(258,106	)			2,958,179				2,854,788
	$	40,404			$	(613,679	)		$	214,545			$	1,030,814			$	3,382,531			$	3,094,511

131

Sterling Capital Funds

Statements of Changes in Net Assets

	Sterling Capital
	Behavioral Large Cap
	Value Equity Fund
	For the Year Ended September 30, 2017				For the Year Ended September 30, 2016
From Investment Activities:
Operations:
Net investment income		$	6,076,557			$	4,920,661
Net realized gain (loss)			19,515,133				1,705,485
Change in unrealized appreciation/depreciation			25,080,854				15,175,012
Change in net assets from operations			50,672,544				21,801,158
Distributions to Class A Shareholders From:
Net investment income			(491,567	)			(490,042	)
Net realized gains			—				—
Distributions to Class B Shareholders From:
Net investment income			(643	)			(2,410	)
Net realized gains			—				—
Distributions to Class C Shareholders From:
Net investment income			(8,310	)			(9,659	)
Net realized gains			—				—
Distributions to Institutional Class Shareholders From:
Net investment income			(4,597,729	)			(4,422,340	)
Net realized gains			—				—
Distributions to Class R Shareholders From:
Net investment income			—				—
Net realized gains			—				—
Change in net assets from shareholder distributions			(5,098,249	)			(4,924,451	)
Capital Transactions:
Change in net assets from capital transactions			(11,005,526	)			1,480,428
Change in net assets			34,568,769				18,357,135
Net Assets:
Beginning of year			272,258,719				253,901,584
End of year		$	306,827,488			$	272,258,719
Undistributed net investment income		$	1,711,661			$	214,238

See accompanying Notes to the Financial Statements.

132

Sterling Capital Mid Value Fund						Sterling Capital Behavioral Small Cap Value Equity Fund						Sterling Capital Special Opportunities Fund
For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	859,274		$	2,292,082		$	1,965,199		$	2,236,883		$	1,013,494		$	311,596
	36,656,141			26,467,705			11,740,082			(1,298,426	)		93,847,885			24,296,488
	53,440,681			47,976,839			24,476,737			13,544,642			72,606,728			54,591,916
	90,956,096			76,736,626			38,182,018			14,483,099			167,468,107			79,200,000
	—			—			(48,544	)		(126,331	)		—			—
	(991,131	)		(6,361,505	)		—			(6,036	)		(6,462,864	)		(40,021,707	)
	—			—			(127	)		(654	)		—			—
	(7,484	)		(129,103	)		—			(86	)		(26,525	)		(650,328	)
	—			—			(1,321	)		(1,838	)		—			—
	(179,472	)		(1,066,172	)		—			(154	)		(3,913,050	)		(24,141,758	)
	(392,245	)		(700,298	)		(1,042,074	)		(1,963,779	)		(376,646	)		—
	(17,153,010	)		(103,244,329	)		—			(53,644	)		(10,436,329	)		(70,796,454	)
	—			—			(1	)		(2	)		—			—
	(6	)		(35	)		—			—			(8,322	)		(13,392	)
	(18,723,348	)		(111,501,442	)		(1,092,067	)		(2,152,524	)		(21,223,736	)		(135,623,639	)
	10,626,377			(6,685,898	)		14,214,014			28,722,387			(121,666,902	)		273,741,629
	82,859,125			(41,450,714	)		51,303,965			41,052,962			24,577,469			217,317,990
	587,875,049			629,325,763			166,604,300			125,551,338			1,121,664,831			904,346,841
$	670,734,174		$	587,875,049		$	217,908,265		$	166,604,300		$	1,146,242,300		$	1,121,664,831
$	—		$	—		$	1,128,976		$	299,031		$	535,498		$	—

133

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
From Investment Activities:
Operations:
Net investment income (loss)	$	29,168,293		$	28,709,088
Net realized gain (loss)		145,082,928			(4,831,315	)
Change in unrealized appreciation/depreciation		66,729,281			195,743,768
Change in net assets from operations		240,980,502			219,621,541
Distributions to Class A Shareholders From:
Net investment income		(8,134,764	)		(8,174,103	)
Net realized gains		(550,868	)		(27,622,613	)
Distributions to Class B Shareholders From:
Net investment income		(3,110	)		(24,417	)
Net realized gains		(1,261	)		(220,992	)
Distributions to Class C Shareholders From:
Net investment income		(2,941,750	)		(2,993,617	)
Net realized gains		(320,996	)		(17,598,263	)
Distributions to Institutional Class Shareholders From:
Net investment income		(19,918,050	)		(18,004,115	)
Net realized gains		(1,109,671	)		(50,804,852	)
Distributions to Class R Shareholders From:
Net investment income		(51,646	)		(31,335	)
Net realized gains		(2,596	)		(126,200	)
Change in net assets from shareholder distributions		(33,034,712	)		(125,600,507	)
Capital Transactions:
Change in net assets from capital transactions		(326,246,229	)		20,172,055
Change in net assets		(118,300,439	)		114,193,089
Net Assets:
Beginning of period		1,685,511,224			1,571,318,135
End of period	$	1,567,210,785		$	1,685,511,224
Undistributed (distributions in excess of) net investment income (loss)	$	21,736		$	1,928,638

* Commencement of operations was October 3, 2016.

See accompanying Notes to the Financial Statements.

134

Sterling Capital Long/Short Equity Fund Sterling Capital Behavioral International Equity Fund Sterling Capital SMID Opportunities Fund Sterling Capital Stratton Mid Cap Value Fund

For the Year Ended September 30, 2017				For the Year Ended September 30, 2016				For the Year Ended September 30, 2017				For the Year Ended September 30, 2016				For the Period Ended September 30, 2017*				For the Year Ended September 30, 2017				For the Period January 1, 2016 to September 30, 2016
	$	(731,544	)		$	(1,071,201	)		$	1,914,461			$	838,207			$	(2,567	)		$	202,233			$	81,614
		1,707,376				(21,126,189	)			2,312,708				(187,564	)			151,598				2,543,953				(895,187	)
		1,816,646				18,507,697				11,631,146				2,237,279				1,092,348				8,606,305				4,734,573
		2,792,478				(3,689,693	)			15,858,315				2,887,922				1,241,379				11,352,491				3,921,000
		—				—				(5,337	)			(10,316	)			(1,611	)			(47	)			—
		—				(25,974	)			—				—				—				(328	)			—
		—				—				—				—				—				—				—
		—				—				—				—				—				—				—
		—				—				(451	)			(437	)			—				—				—
		—				(8,379	)			—				—				—				(5	)			—
		—				—				(1,170,042	)			(425,049	)			(4,317	)			(85,765	)			—
		—				(1,760,963	)			—				—				—				(293,559	)			—
		—				—				—				—				—				—				—
		—				—				—				—				—				—				—
		—				(1,795,316	)			(1,175,830	)			(435,802	)			(5,928	)			(379,704	)			—
		(11,553,948	)			(56,339,230	)			(2,592,999	)			48,751,547				8,676,432				(8,367,488	)			(4,753,401	)
		(8,761,470	)			(61,824,239	)			12,089,486				51,203,667				9,911,883				2,605,299				(832,401	)
		42,093,422				103,917,661				70,355,534				19,151,867				—				63,533,499				64,365,900
	$	33,331,952			$	42,093,422			$	82,445,020			$	70,355,534			$	9,911,883			$	66,138,798			$	63,533,499
	$	(396,924	)		$	—			$	1,957,602			$	844,070			$	—			$	196,283			$	85,802

135

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Stratton Real Estate Fund
	For the Year Ended September 30, 2017				For the Period January 1, 2016 to September 30, 2016
From Investment Activities:
Operations:
Net investment income		$	2,122,913			$	1,613,128
Net realized gain			2,939,296				2,500,157
Change in unrealized appreciation/depreciation			(4,404,129	)			6,959,598
Change in net assets from operations			658,080				11,072,883
Distributions to Class A Shareholders From:
Net investment income			(5,791	)			(982	)
Net realized gains			(5,214	)			—
Distributions to Class C Shareholders From:
Net investment income			(479	)			(108	)
Net realized gains			(984	)			—
Distributions to Institutional Class Shareholders From:
Net investment income			(3,051,930	)			(1,308,182	)
Net realized gains			(4,309,765	)			—
Change in net assets from shareholder distributions			(7,374,163	)			(1,309,272	)
Capital Transactions:
Change in net assets from capital transactions			(1,541,548	)			(1,140,944	)
Redemption Fees			—				—
Change in net assets			(8,257,631	)			8,622,667
Net Assets:
Beginning of period			104,823,220				96,200,553
End of period		$	96,565,589			$	104,823,220
Undistributed (distributions in excess of) net investment income		$	(193	)		$	1,613,104

See accompanying Notes to the Financial Statements.

136

Sterling Capital Stratton Small Cap Value Fund						Sterling Capital Ultra Short Bond Fund
For the Year Ended September 30, 2017			For the Period January 1, 2016 to September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	2,337,308		$	1,644,272		$	424,144		$	408,789
	82,152,610			66,753,095			5,950			624
	147,809,607			60,734,126			118,167			157,845
	232,299,525			129,131,493			548,261			567,258
	(115	)		—			(71,543	)		(123,196	)
	(8,487	)		—			—			—
	—			—			—			—
	(3,494	)		—			—			—
	(2,079,928	)		—			(630,638	)		(677,327	)
	(61,347,981	)		—			—			—
	(63,440,005	)		—			(702,181	)		(800,523	)
	(197,746,684	)		(72,213,719	)		(21,737,857	)		16,987,987
	1,457			4			—			—
	(28,885,707	)		56,917,778			(21,891,777	)		16,754,722
	1,213,496,444			1,156,578,666			60,433,386			43,678,664
$	1,184,610,737		$	1,213,496,444		$	38,541,609		$	60,433,386
$	1,672,230		$	1,646,853		$	(1,683	)	$	(1,684	)

137

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Short Duration Bond Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
From Investment Activities:
Operations:
Net investment income	$	1,092,466		$	1,091,866
Net realized gain (loss)		(87,137	)		(81,804	)
Change in unrealized appreciation/depreciation		33,904			791,096
Change in net assets from operations		1,039,233			1,801,158
Distributions to Class A Shareholders From:
Net investment income		(156,953	)		(194,613	)
Net realized gains		—			—
Distributions to Class B Shareholders From:
Net investment income		—			—
Distributions to Class C Shareholders From:
Net investment income		(29,145	)		(39,043	)
Net realized gains		—			—
Distributions to Institutional Class Shareholders From:
Net investment income		(1,953,116	)		(2,081,589	)
Net realized gains		—			—
Distributions to Class R Shareholders From:
Net investment income		—			—
Change in net assets from shareholder distributions		(2,139,214	)		(2,315,245	)
Capital Transactions:
Change in net assets from capital transactions		(10,733,229	)		(1,773,747	)
Change in net assets		(11,833,210	)		(2,287,834	)
Net Assets:
Beginning of year		86,591,848			88,879,682
End of year	$	74,758,638		$	86,591,848
Undistributed (distributions in excess of) net investment income	$	(4,689	)	$	(327	)

See accompanying Notes to the Financial Statements.

138

Sterling Capital Intermediate U.S. Government Fund Sterling Capital Total Return Bond Fund Sterling Capital Corporate Fund

For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	422,930		$	405,377		$	21,373,848		$	18,380,562		$	936,402		$	1,590,895
	(326	)		122,704			1,138,610			3,232,622			191,973			215,255
	(716,174	)		193,451			(9,697,355	)		19,293,448			(442,237	)		967,977
	(293,570	)		721,532			12,815,103			40,906,632			686,138			2,774,127
	(126,044	)		(130,952	)		(1,963,457	)		(1,821,689	)		(12,187	)		(10,805	)
	—			—			—			—			(1,621	)		—
	(281	)		(1,179	)		(2,480	)		(16,144	)		—			—
	(8,445	)		(8,319	)		(160,528	)		(147,024	)		(950	)		(741	)
	—			—			—			—			(179	)		—
	(415,985	)		(415,851	)		(25,297,071	)		(20,773,454	)		(923,283	)		(1,579,316	)
	—			—			—			—			(112,762	)		—
	—			—			(136	)		(149	)		—			—
	(550,755	)		(556,301	)		(27,423,672	)		(22,758,460	)		(1,050,982	)		(1,590,862	)
	(3,464,355	)		(3,667,237	)		303,638,901			101,505,879			(2,002,949	)		(33,278,249	)
	(4,308,680	)		(3,502,006	)		289,030,332			119,654,051			(2,367,793	)		(32,094,984	)
	26,715,885			30,217,891			787,661,692			668,007,641			32,254,005			64,348,989
$	22,407,205		$	26,715,885		$	1,076,692,024		$	787,661,692		$	29,886,212		$	32,254,005
$	252,932		$	228,161		$	952,269		$	442,328		$	(136	)	$	3,022

139

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Securitized Opportunities Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
From Investment Activities:
Operations:
Net investment income	$	980,679		$	1,027,410
Net realized gain (loss)		20,227			305,310
Change in unrealized appreciation/depreciation		(532,285	)		424,797
Change in net assets from operations		468,621			1,757,517
Distributions to Class A Shareholders From:
Net investment income		(3,640	)		(27,939	)
Net realized gains		—			—
Distributions to Class C Shareholders From:
Net investment income		(620	)		(627	)
Net realized gains		—			—
Distributions to Institutional Class Shareholders From:
Net investment income		(1,149,450	)		(1,209,058	)
Net realized gains		—			—
Change in net assets from shareholder distributions		(1,153,710	)		(1,237,624	)
Capital Transactions:
Change in net assets from capital transactions		(6,434,806	)		(151,687	)
Change in net assets		(7,119,895	)		368,206
Net Assets:
Beginning of year		46,780,804			46,412,598
End of year	$	39,660,909		$	46,780,804
Undistributed net investment income	$	81		$	77

See accompanying Notes to the Financial Statements.

140

Sterling Capital Kentucky Intermediate Tax-Free Fund Sterling Capital Maryland Intermediate Tax-Free Fund Sterling Capital North Carolina Intermediate Tax-Free Fund

For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	272,123		$	314,262		$	568,603		$	670,544		$	4,576,412		$	4,565,660
	32,828			179,310			90,250			255,825			(1,316,007	)		758,138
	(326,097	)		(1,263	)		(730,718	)		423,216			(3,866,576	)		2,178,199
	(21,146	)		492,309			(71,865	)		1,349,585			(606,171	)		7,501,997
	(84,071	)		(97,033	)		(113,724	)		(112,324	)		(989,324	)		(1,018,136	)
	(57,042	)		(52,381	)		(45,624	)		(43,187	)		(165,995	)		(249,326	)
	(52	)		(301	)		(7,862	)		(7,056	)		(70,080	)		(64,479	)
	(20	)		(235	)		(5,262	)		(4,146	)		(19,120	)		(21,666	)
	(187,705	)		(216,582	)		(446,268	)		(548,940	)		(3,515,161	)		(3,478,684	)
	(107,066	)		(110,771	)		(164,784	)		(187,004	)		(526,094	)		(787,697	)
	(435,956	)		(477,303	)		(783,524	)		(902,657	)		(5,285,774	)		(5,619,988	)
	(401,512	)		(1,141,252	)		(7,668,981	)		(5,060,938	)		(19,198,010	)		17,301,063
	(858,614	)		(1,126,246	)		(8,524,370	)		(4,614,010	)		(25,089,955	)		19,183,072
	12,958,666			14,084,912			31,960,521			36,574,531			215,521,484			196,338,412
$	12,100,052		$	12,958,666		$	23,436,151		$	31,960,521		$	190,431,529		$	215,521,484
$	12,809		$	12,514		$	17,735		$	3,966		$	98,063		$	98,229

141

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital South Carolina Intermediate Tax-Free Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
From Investment Activities:
Operations:
Net investment income	$	1,761,642		$	1,653,005
Net realized gain		(582,808	)		10,105
Change in unrealized appreciation/depreciation		(1,138,430	)		1,396,055
Change in net assets from operations		40,404			3,059,165
Distributions to Class A Shareholders From:
Net investment income		(302,916	)		(314,527	)
Net realized gains		(1,895	)		(54,170	)
Distributions to Class C Shareholders From:
Net investment income		(17,591	)		(17,488	)
Net realized gains		(193	)		(4,526	)
Distributions to Institutional Class Shareholders From:
Net investment income		(1,441,135	)		(1,319,920	)
Net realized gains		(7,861	)		(191,305	)
Change in net assets from shareholder distributions		(1,771,591	)		(1,901,936	)
Capital Transactions:
Change in net assets from capital transactions		(4,461,832	)		15,602,827
Change in net assets		(6,193,019	)		16,760,056
Net Assets:
Beginning of year		93,210,387			76,450,331
End of year	$	87,017,368		$	93,210,387
Undistributed net investment income	$	28,159		$	28,193

See accompanying Notes to the Financial Statements.

142

Sterling Capital Virginia Intermediate Tax-Free Fund Sterling Capital West Virginia Intermediate Tax-Free Fund

For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	2,248,949		$	2,557,368		$	2,147,703		$	2,214,872
	(421,377	)		876,273			104,033			523,186
	(2,441,251	)		958,768			(2,037,191	)		1,257,070
									��
	(613,679	)		4,392,409			214,545			3,995,128
	(585,943	)		(718,628	)		(688,584	)		(741,370	)
	(249,339	)		(130,362	)		(162,149	)		(187,693	)
	(12,158	)		(15,771	)		(10,623	)		(6,729	)
	(8,557	)		(4,426	)		(3,642	)		(2,185	)
	(1,650,832	)		(1,822,391	)		(1,445,525	)		(1,463,917	)
	(612,795	)		(280,165	)		(286,951	)		(339,731	)
	(3,119,624	)		(2,971,743	)		(2,597,474	)		(2,741,625	)
	(16,896,699	)		1,982,849			(9,913,424	)		(921,673	)
	(20,630,002	)		3,403,515			(12,296,353	)		331,830
	119,825,936			116,422,421			102,735,839			102,404,009
$	99,195,934		$	119,825,936		$	90,439,486		$	102,735,839
$	63,206		$	63,196		$	67,797		$	67,729

143

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Diversified Income Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
From Investment Activities:
Operations:
Net investment income	$	1,288,920		$	1,397,909
Net realized gain (loss)		271,905			(1,213,226	)
Change in unrealized appreciation/depreciation		(530,011	)		3,733,112
Change in net assets from operations		1,030,814			3,917,795
Distributions to Class A Shareholders From:
Net investment income		(567,986	)		(522,708	)
Distributions to Class B Shareholders From:
Net investment income		(2,237	)		(9,870	)
Distributions to Class C Shareholders From:
Net investment income		(34,231	)		(30,445	)
Distributions to Institutional Class Shareholders From:
Net investment income		(671,189	)		(1,008,635	)
Change in net assets from shareholder distributions		(1,275,643	)		(1,571,658	)
Capital Transactions:
Change in net assets from capital transactions		(18,719,549	)		(3,036,176	)
Change in net assets		(18,964,378	)		(690,039	)
Net Assets:
Beginning of year		42,835,666			43,525,705
End of year	$	23,871,288		$	42,835,666
Undistributed net investment income	$	36,561		$	83,292

See accompanying Notes to the Financial Statements.

144

Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	424,352		$	545,557		$	239,723		$	311,195
	265,964			824,898			145,557			816,146
	2,692,215			842,888			2,709,231			567,271
	3,382,531			2,213,343			3,094,511			1,694,612
	(429,055	)		(640,508	)		(234,587	)		(384,818	)
	(1,247	)		(7,812	)		(931	)		(9,374	)
	(5,300	)		(9,577	)		(2,531	)		(5,409	)
	(2,002	)		(1,789	)		(9,486	)		(13,447	)
	(437,604	)		(659,686	)		(247,535	)		(413,048	)
	(4,900,160	)		(4,322,550	)		(2,316,008	)		(3,618,924	)
	(1,955,233	)		(2,768,893	)		530,968			(2,337,360	)
	33,031,477			35,800,370			23,403,294			25,740,654
$	31,076,244		$	33,031,477		$	23,934,262		$	23,403,294
$	8,861		$	15,503		$	1,484		$	3,172

145

Sterling Capital Funds

Statements of Changes in Net Assets

	Sterling Capital Behavioral Large Cap Value Equity Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued1		$      674,247			$	1,648,432
Distributions reinvested		478,214				477,904
Value of shares redeemed		(2,979,194	)			(5,028,277	)
Change in net assets from Class A Share transactions		(1,826,733	)			(2,901,941	)
Class B Shares:
Proceeds from shares issued		—				—
Distributions reinvested		639				2,390
Value of shares redeemed		(226,941	)			(354,880	)
Change in net assets from Class B Share transactions2		(226,302	)			(352,490	)
Class C Shares:
Proceeds from shares issued		131,224				334,208
Distributions reinvested		7,399				7,605
Value of shares redeemed		(247,106	)			(278,620	)
Change in net assets from Class C Share transactions		(108,483	)			63,193
Institutional Shares:
Proceeds from shares issued		15,314,059				33,119,823
Distributions reinvested		4,569,679				4,394,065
Value of shares redeemed		(28,727,746	)			(32,842,222	)
Change in net assets from Institutional Share transactions		(8,844,008	)			4,671,666
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		$(11,005,526	)		$	1,480,428
Share Transactions:
Class A Shares:
Issued1		35,125				94,866
Reinvested		24,525				27,577
Redeemed		(154,626	)			(296,745	)
Change in Class A Shares		(94,976	)			(174,302	)
Class B Shares:
Issued		—				—
Reinvested		34				140
Redeemed		(12,048	)			(21,147	)
Change in Class B Shares2		(12,014	)			(21,007	)
Class C Shares:
Issued		7,005				19,386
Reinvested		394				452
Redeemed		(12,907	)			(16,417	)
Change in Class C Shares		(5,508	)			3,421
Institutional Shares:
Issued		786,049				1,878,655
Reinvested		232,754				252,191
Redeemed		(1,488,771	)			(1,902,199	)
Change in Institutional Shares		(469,968	)			228,647
Class R Shares:
Issued		—				—
Reinvested		—				—
Redeemed		—				—
Change in Class R Shares		—				—
Change in Shares		(582,466	)			36,759

¹Includes 1,751, 1,887, 278, 8,666 shares and $33,961, $33,910, $4,737, 203,123 for the year ended September 30, 2017, due to the conversion of Class B Shares into Class A Shares for the Sterling Capital Behavioral Large Cap Value Fund, the Sterling Capital Mid Value Fund, the Sterling Capital Behavioral Small Cap Value Fund, and the Sterling Capital Special Opportunities Fund, respectively.

²Class B Shares of the Funds closed effective May 26, 2017.

See accompanying Notes to the Financial Statements.

146

Sterling Capital Mid Value Fund						Sterling Capital Behavioral Small Cap Value Equity Fund						Sterling Capital Special Opportunities Fund
For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	4,343,902		$	2,121,637		$	709,058		$	639,729		$	36,743,182		$	123,426,679
	946,688			5,600,796			46,754			128,035			6,033,116			37,784,514
	(7,180,262	)		(8,309,555	)		(1,958,445	)		(6,046,139	)		(95,968,887	)		(57,683,989	)
	(1,889,672	)		(587,122	)		(1,202,633	)		(5,278,375	)		(53,192,589	)		103,527,204
	2,970			2,248			—			10			4,346			56,817
	7,483			129,038			129			741			26,333			639,576
	(299,115	)		(466,690	)		(127,631	)		(100,946	)		(1,733,762	)		(3,142,892	)
	(288,662	)		(335,404	)		(127,502	)		(100,195	)		(1,703,083	)		(2,446,499	)
	556,357			1,391,141			14,347			34,839			14,125,863			52,389,456
	144,501			866,589			1,289			1,840			3,641,709			22,875,216
	(2,150,491	)		(1,835,476	)		(252,227	)		(29,732	)		(69,306,861	)		(25,279,463	)
	(1,449,633	)		422,254			(236,591	)		6,947			(51,539,289	)		49,985,209
	111,117,696			147,129,910			33,280,116			49,471,199			133,167,163			258,214,223
	16,510,873			95,000,641			1,026,322			1,987,871			9,057,456			58,697,993
	(113,375,498	)		(248,316,212	)		(18,556,309	)		(17,365,062	)		(157,492,117	)		(194,387,011	)
	14,253,071			(6,185,661	)		15,750,129			34,094,008			(15,267,498	)		122,525,205
	1,273			—			30,622			—			376,666			167,384
	—			35			—			2			3,361			9,484
	—			—			(11	)		—			(344,470	)		(26,358	)
	1,273			35			30,611			2			35,557			150,510
$	10,626,377		$	(6,685,898	)	$	14,214,014		$	28,722,387		$	(121,666,902	)	$	273,741,629
	241,699			131,632			41,055			44,758			1,609,590			5,705,594
	53,942			362,511			2,658			8,818			275,825			1,802,865
	(398,892	)		(537,458	)		(112,752	)		(424,672	)		(4,179,557	)		(2,694,723	)
	(103,251	)		(43,315	)		(69,039	)		(371,096	)		(2,294,142	)		4,813,736
	179			127			—			1			224			3,242
	471			9,126			7			52			1,406			35,219
	(18,447	)		(32,537	)		(7,665	)		(7,289	)		(89,431	)		(168,588	)
	(17,797	)		(23,284	)		(7,658	)		(7,236	)		(87,801	)		(130,127	)
	34,326			92,022			864			2,491			724,893			2,811,678
	9,146			61,674			76			130			194,308			1,258,951
	(132,565	)		(122,752	)		(14,914	)		(2,132	)		(3,507,612	)		(1,364,911	)
	(89,093	)		30,944			(13,974	)		489			(2,588,411	)		2,705,718
	6,085,489			9,037,428			1,956,248			3,450,437			5,517,811			11,570,304
	929,668			6,079,031			57,919			135,832			396,534			2,686,675
	(6,255,862	)		(15,018,081	)		(1,073,596	)		(1,200,414	)		(6,621,904	)		(8,817,130	)
	759,295			98,378			940,571			2,385,855			(707,559	)		5,439,849
	72			—			1,763			—			16,897			7,482
	—			2			—			1			152			445
	—			—			(1	)		—			(15,056	)		(1,149	)
	72			2			1,762			1			1,993			6,778
	549,226			62,725			851,662			2,008,013			(5,675,920	)		12,835,954

147

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Equity Income Fund
	For the Year Ended September 30, 2017				For the Year Ended September 30, 2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued1		$	48,847,040			$	91,700,954
Distributions reinvested			7,782,389				33,032,277
Value of shares redeemed			(230,002,765	)			(162,382,364	)
Change in net assets from Class A Share transactions			(173,373,336	)			(37,649,133	)
Class B Shares:
Proceeds from shares issued			770				—
Distributions reinvested			4,275				238,670
Value of shares redeemed			(1,485,282	)			(2,781,222	)
Change in net assets from Class B Share transactions2			(1,480,237	)			(2,542,552	)
Class C Shares:
Proceeds from shares issued			9,106,010				20,441,233
Distributions reinvested			3,019,207				19,514,637
Value of shares redeemed			(82,332,579	)			(61,841,786	)
Change in net assets from Class C Share transactions			(70,207,362	)			(21,885,916	)
Institutional Shares:
Proceeds from shares issued			247,053,532				373,054,511
Distributions reinvested			17,810,637				61,688,923
Value of shares redeemed			(347,435,423	)			(352,354,402	)
Change in net assets from Institutional Share transactions			(82,571,254	)			82,389,032
Class R Shares:
Proceeds from shares issued			1,451,626	��			221,370
Distributions reinvested			54,243				157,535
Value of shares redeemed			(119,909	)			(518,281	)
Change in net assets from Class R Share transactions			1,385,960				(139,376	)
Change in net assets from capital transactions		$	(326,246,229	)		$	20,172,055
Share Transactions:
Class A Shares:
Issued1			2,573,771				5,326,559
Reinvested			398,999				1,973,144
Redeemed			(11,799,496	)			(9,330,149	)
Change in Class A Shares			(8,826,726	)			(2,030,446	)
Class B Shares:
Issued			40				—
Reinvested			226				14,367
Redeemed			(77,845	)			(160,821	)
Change in Class B Shares2			(77,579	)			(146,454	)
Class C Shares:
Issued			483,859				1,198,628
Reinvested			156,743				1,181,597
Redeemed			(4,278,567	)			(3,639,420	)
Change in Class C Shares			(3,637,965	)			(1,259,195	)
Institutional Shares:
Issued			12,693,555				21,587,101
Reinvested			907,290				3,672,381
Redeemed			(18,052,683	)			(20,300,270	)
Change in Institutional Shares			(4,451,838	)			4,959,212
Class R Shares:
Issued			76,183				13,067
Reinvested			2,778				9,484
Redeemed			(6,124	)			(30,400	)
Change in Class R Shares			72,837				(7,849	)
Change in Shares			(16,921,271	)			1,515,268

* Commencement of operations was October 3, 2016.

¹Includes 4,692 shares and $91,822 for the year ended September 30, 2017, due to the conversion of Class B Shares into Class A Shares for the Sterling Capital Equity Income Fund.

²Class B Shares of the Sterling Capital Equity Income Fund closed effective May 26, 2017.

See accompanying Notes to the Financial Statements.

148

Sterling Capital Long/Short Equity Fund						Sterling Capital Behavioral International Equity Fund						Sterling Capital SMID Opportunities Fund			Sterling Capital Stratton Mid Cap Value Fund
For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Period Ended September 30, 2017*			For the Year Ended September 30, 2017				For the Period January 1, 2016 to September 30,  2016
$	114,191		$	49,731		$	92,688		$	53,257		$	4,430,264		$	81,511			$	16,038
	—			25,974			5,263			10,255			1,331			375				—
	(110,872	)		(919,009	)		(28,072	)		(250,616	)		(812,537	)		(6,574	)			(500	)
	3,319			(843,304	)		69,879			(187,104	)		3,619,058			75,312				15,538
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			15,753			28,100			19,376			1,613,608			—				—
	—			8,039			451			437			—			—				—
	(100,667	)		(194,009	)		(26,807	)		(2,521	)		(373,570	)		—				—
	(100,667	)		(170,217	)		1,744			17,292			1,240,038			—				—
	6,620,107			15,037,076			125,675			50,773,294			4,607,084			836,470				130,665
	—			987,160			886,316			5,373			4,026			361,848				—
	(18,076,707	)		(71,349,945	)		(3,676,613	)		(1,857,308	)		(793,774	)		(9,641,118	)			(4,899,604	)
	(11,456,600	)		(55,325,709	)		(2,664,622	)		48,921,359			3,817,336			(8,442,800	)			(4,768,939	)
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
$	(11,553,948	)	$	(56,339,230	)	$	(2,592,999	)	$	48,751,547		$	8,676,432		$	(8,367,488	)		$	(4,753,401	)
	12,779			6,250			8,840			5,803			419,022			1,383				331
	—			3,107			550			1,067			127			6				—
	(12,616	)		(114,696	)		(2,603	)		(27,899	)		(75,383	)		(106	)			(9	)
	163			(105,339	)		6,787			(21,029	)		343,766			1,283				322
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			1,813			2,840			2,003			154,551			—				—
	—			976			47			45			—			—				—
	(11,755	)		(23,730	)		(2,697	)		(262	)		(33,328	)		—				—
	(11,755	)		(20,941	)		190			1,786			121,223			—				—
	743,077			1,790,200			11,739			5,398,540			453,247			13,831				2,332
	—			117,379			92,711			559			384			6,147				(63	)
	(2,021,092	)		(8,589,797	)		(361,180	)		(194,473	)		(74,676	)		(161,321	)			(92,275	)
	(1,278,015	)		(6,682,218	)		(256,730	)		5,204,626			378,955			(141,343	)	��		(90,006	)
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	—			—			—			—			—			—				—
	(1,289,607	)		(6,808,498	)		(249,753	)		5,185,383			843,944			(140,060	)			(89,684	)

149

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Stratton Real Estate Fund
	For the Year Ended September 30, 2017				For the Period January 1, 2016 to September 30, 2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued		$	202,166			$	106,941
Distributions reinvested			10,702				982
Value of shares redeemed			(18,317	)			(500	)
Change in net assets from Class A Share transactions			194,551				107,423
Class C Shares:
Proceeds from shares issued			45,614				20,159
Distributions reinvested			1,259				108
Value of shares redeemed			(1,266	)			(2,210	)
Change in net assets from Class C Share transactions			45,607				18,057
Institutional Shares:
Proceeds from shares issued			13,015,551				12,077,203
Distributions reinvested			6,438,662				1,098,322
Value of shares redeemed			(21,235,919	)			(14,441,949	)
Change in net assets from Institutional Share transactions			(1,781,706	)			(1,266,424	)
Change in net assets from capital transactions		$	(1,541,548	)		$	(1,140,944	)
Share Transactions:
Class A Shares:
Issued			5,445				2,859
Reinvested			296				25
Redeemed			(493	)			(13	)
Change in Class A Shares			5,248				2,871
Class C Shares:
Issued			1,239				525
Reinvested			35				3
Redeemed			(36	)			(54	)
Change in Class C Shares			1,238				474
Institutional Shares:
Issued			352,541				308,879
Reinvested			178,417				27,369
Redeemed			(572,330	)			(373,157	)
Change in Institutional Shares			(41,372	)			(36,909	)
Change in Shares			(34,886	)			(33,564	)

See accompanying Notes to the Financial Statements.

150

Sterling Capital Stratton Small Cap Value Fund						Sterling Capital Ultra Short Bond Fund
For the Year Ended September 30, 2017			For the Period January 1, 2016 to September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	394,368		$	75,496		$	2,194,481		$	8,627,882
	8,601			—			64,325			108,295
	—			(500	)		(3,827,246	)		(10,734,334	)
	402,969			74,996			(1,568,440	)		(1,998,157	)
	65,685			59,199			—			—
	3,494			—			—			—
	(39,053	)		—			—			—
	30,126			59,199			—			—
	172,185,996			192,336,393			10,080,208			27,102,369
	45,985,577			—			535,956			638,111
	(416,351,352	)		(264,684,307	)		(30,785,581	)		(8,754,336	)
	(198,179,779	)		(72,347,914	)		(20,169,417	)		18,986,144
$	(197,746,684	)		(72,213,719	)	$	(21,737,857	)	$	16,987,987
	4,672			1,105			223,984			876,356
	102			—			6,569			11,345
	—			(6	)		(390,838	)		(1,091,443	)
	4,774			1,099			(160,285	)		(203,742	)
	787			825			—			—
	42			—			—			—
	(461	)		—			—			—
	368			825			—			—
	2,056,541			2,676,373			1,029,490			2,759,543
	544,409			—			54,733			64,588
	(4,936,706	)		(3,760,802	)		(3,143,484	)		(890,332	)
	(2,335,756	)		(1,084,429	)		(2,059,261	)		1,933,799
	(2,330,614	)		(1,082,505	)		(2,219,546	)		1,730,057

151

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Short Duration Bond Fund
	For the Year Ended         September 30,         2017				For the Year Ended         September 30,         2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued1		$	938,772			$	1,670,085
Distributions reinvested			126,305				147,990
Value of shares redeemed			(2,559,563	)			(2,514,299	)
Change in net assets from Class A Share transactions			(1,494,486	)			(696,224	)
Class B Shares:
Proceeds from shares issued			—				—
Distributions reinvested			—				—
Value of shares redeemed			—				—
Change in net assets from Class B Share transactions2			—				—
Class C Shares:
Proceeds from shares issued			254,128				999,391
Distributions reinvested			18,328				24,636
Value of shares redeemed			(588,672	)			(1,537,914	)
Change in net assets from Class C Share transactions			(316,216	)			(513,887	)
Institutional Shares:
Proceeds from shares issued			29,138,991				25,251,964
Distributions reinvested			720,706				648,944
Value of shares redeemed			(38,782,224	)			(26,464,544	)
Change in net assets from Institutional Share transactions			(8,922,527	)			(563,636	)
Class R Shares:
Distributions reinvested			—				—
Value of shares redeemed			—				—
Change in net assets from Class R Share transactions			—				—
Change in net assets from capital transactions		$	(10,733,229	)		$	(1,773,747	)
Share Transactions:
Class A Shares:
Issued1			107,646				189,618
Reinvested			14,490				16,801
Redeemed			(293,666	)			(285,363	)
Change in Class A Shares			(171,530	)			(78,944	)
Class B Shares:
Issued			—				—
Reinvested			—				—
Redeemed			—				—
Change in Class B Shares2			—				—
Class C Shares:
Issued			29,219				113,425
Reinvested			2,103				2,798
Redeemed			(67,565	)			(174,718	)
Change in Class C Shares			(36,243	)			(58,495	)
Institutional Shares:
Issued			3,343,791				2,867,575
Reinvested			82,705				73,673
Redeemed			(4,450,157	)			(3,003,989	)
Change in Institutional Shares			(1,023,661	)			(62,741	)
Class R Shares:
Reinvested			—				—
Redeemed			—				—
Change in Class R Shares			—				—
Change in Shares			(1,231,434	)			(200,180	)

¹Includes 1,325 and 380 shares and $13,207 and $4,018 for the year ended September 30, 2017, due to the conversion of Class B Shares into Class A Shares for the Sterling Capital Intermediate U.S. Government Fund and the Sterling Capital Total Return Bond Fund, respectively.

²Class B Shares of the Sterling Capital Intermediate U.S. Government Fund and the Sterling Capital Total Return Fund closed effective May 26, 2017.

See accompanying Notes to the Financial Statements.

152

Sterling Capital Intermediate U.S. Government Fund Sterling Capital Total Return Bond Fund Sterling Capital Corporate Fund

For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	111,043		$	951,217		$	31,854,988		$	31,405,121		$	37,468		$	100,692
	112,816			117,101			1,806,087			1,623,798			13,500			10,509
	(1,650,754	)		(1,666,038	)		(30,480,865	)		(12,325,574	)		(115,435	)		(28,660	)
	(1,426,895	)		(597,720	)		3,180,210			20,703,345			(64,467	)		82,541
	—			—			—			19,523			—			—
	223			1,128			1,773			14,699			—			—
	(71,823	)		(95,545	)		(354,051	)		(617,111	)		—			—
	(71,600	)		(94,417	)		(352,278	)		(582,889	)		—			—
	53,587			364,738			2,182,694			2,511,381			—			46,799
	8,353			8,036			123,885			113,317			1,110			657
	(168,791	)		(448,186	)		(2,490,364	)		(1,212,917	)		(15,719	)		—
	(106,851	)		(75,412	)		(183,785	)		1,411,781			(14,609	)		47,456
	2,646,464			7,250,602			476,910,643			253,141,796			4,062,269			14,366,119
	116,820			113,612			15,532,066			13,104,869			1,031,909			1,570,135
	(4,622,293	)		(10,263,902	)		(191,448,091	)		(186,272,472	)		(7,018,051	)		(49,344,500	)
	(1,859,009	)		(2,899,688	)		300,994,618			79,974,193			(1,923,873	)		(33,408,246	)
	—			—			136			149			—			—
	—			—			—			(700	)		—			—
	—			—			136			(551	)		—			—
$	(3,464,355	)	$	(3,667,237	)	$	303,638,901		$	101,505,879		$	(2,002,949	)	$	(33,278,249	)
	11,119			93,282			3,017,726			2,973,620			3,678			9,910
	11,321			11,467			171,241			152,688			1,326			1,031
	(165,854	)		(163,211	)		(2,887,533	)		(1,164,439	)		(11,275	)		(2,821	)
	(143,414	)		(58,462	)		301,434			1,961,869			(6,271	)		8,120
	—			—			—			1,818			—			—
	22			111			168			1,388			—			—
	(7,202	)		(9,414	)		(33,676	)		(57,911	)		—			—
	(7,180	)		(9,303	)		(33,508	)		(54,705	)		—			—
	5,375			35,847			206,244			233,674			—			4,686
	840			788			11,728			10,648			109			65
	(16,938	)		(43,964	)		(235,936	)		(114,733	)		(1,535	)		—
	(10,723	)		(7,329	)		(17,964	)		129,589			(1,426	)		4,751
	265,519			710,646			45,239,726			23,735,844			399,391			1,424,265
	11,712			11,120			1,471,267			1,232,539			101,294			154,853
	(463,995	)		(1,003,905	)		(18,184,131	)		(17,573,416	)		(688,868	)		(4,851,586	)
	(186,764	)		(282,139	)		28,526,862			7,394,967			(188,183	)		(3,272,468	)
	—			—			13			14			—			—
	—			—			—			(67	)		—			—
	—			—			13			(53	)		—			—
	(348,081	)		(357,233	)		28,776,837			9,431,667			(195,880	)		(3,259,597	)

153

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Securitized Opportunities Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	17,906		$	5,118,423
Distributions reinvested		3,533			18,420
Value of shares redeemed		(301,975	)		(4,833,096	)
Change in net assets from Class A Share transactions		(280,536	)		303,747
Class C Shares:
Proceeds from shares issued		—			—
Distributions reinvested		614			627
Value of shares redeemed		(6,227	)		—
Change in net assets from Class C Share transactions		(5,613	)		627
Institutional Shares:
Proceeds from shares issued		2,113,567			12,158,576
Distributions reinvested		1,137,751			1,206,476
Value of shares redeemed		(9,399,975	)		(13,821,113	)
Change in net assets from Institutional Share transactions		(6,148,657	)		(456,061	)
Change in net assets from capital transactions	$	(6,434,806	)	$	(151,687	)
Share Transactions:
Class A Shares:
Issued		1,816			512,888
Reinvested		356			1,850
Redeemed		(30,041	)		(489,826	)
Change in Class A Shares		(27,869	)		24,912
Class C Shares:
Issued		—			—
Reinvested		62			62
Redeemed		(633	)		—
Change in Class C Shares		(571	)		62
Institutional Shares:
Issued		213,092			1,218,996
Reinvested		114,458			120,522
Redeemed		(943,751	)		(1,382,696	)
Change in Institutional Shares		(616,201	)		(43,178	)
Change in Shares		(644,641	)		(18,204	)

See accompanying Notes to the Financial Statements.

154

Sterling Capital Kentucky Intermediate Tax-Free Fund Sterling Capital Maryland Intermediate Tax-Free Fund Sterling Capital North Carolina Intermediate Tax-Free Fund

For the Year Ended September 30, 2017				For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	77,209			$	242,712		$	104,097		$	498,882		$	2,670,602		$	9,996,560
	124,254				129,238			114,904			109,686			951,142			1,008,520
	(331,819	)	��		(551,767	)		(762,604	)		(1,010,470	)		(8,946,496	)		(5,270,210	)
	(130,356	)			(179,817	)		(543,603	)		(401,902	)		(5,324,752	)		5,734,870
	1,533				—			53,854			157,489			353,532			3,795,704
	61				536			13,100			11,132			78,171			75,915
	(19,711	)			—			(221,816	)		(114,652	)		(1,778,404	)		(1,154,608	)
	(18,117	)			536			(154,862	)		53,969			(1,346,701	)		2,717,011
	2,541,134				2,040,861			2,861,004			2,975,581			33,197,391			37,514,719
	37,709				50,004			178,778			258,996			1,095,218			1,048,470
	(2,831,882	)			(3,052,836	)		(10,010,298	)		(7,947,582	)		(46,819,166	)		(29,714,007	)
	(253,039	)			(961,971	)		(6,970,516	)		(4,713,005	)		(12,526,557	)		8,849,182
$	(401,512	)		$	(1,141,252	)	$	(7,668,981	)	$	(5,060,938	)	$	(19,198,010	)	$	17,301,063
	7,295				22,770			9,394			44,128			248,011			901,371
	12,177				12,225			10,525			9,763			88,591			91,378
	(32,517	)			(52,139	)		(70,107	)		(90,214	)		(833,304	)		(475,823	)
	(13,045	)			(17,144	)		(50,188	)		(36,323	)		(496,702	)		516,926
	148				—			4,877			13,877			32,852			343,270
	6				50			1,199			991			7,295			6,884
	(1,906	)			—			(20,135	)		(10,249	)		(165,600	)		(104,171	)
	(1,752	)			50			(14,059	)		4,619			(125,453	)		245,983
	247,367				192,296			260,773			263,680			3,099,533			3,380,713
	3,698				4,733			16,336			23,009			102,014			94,922
	(275,956	)			(288,271	)		(911,570	)		(701,539	)		(4,363,035	)		(2,685,371	)
	(24,891	)			(91,242	)		(634,461	)		(414,850	)		(1,161,488	)		790,264
	(39,688	)			(108,336	)		(698,708	)		(446,554	)		(1,783,643	)		1,553,173

155

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital South Carolina Intermediate Tax-Free Fund
	For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	648,471		$	2,651,886
Distributions reinvested		266,413			314,627
Value of shares redeemed		(3,424,373	)		(1,333,071	)
Change in net assets from Class A Share transactions		(2,509,489	)		1,633,442
Class C Shares:
Proceeds from shares issued		375,128			1,049,922
Distributions reinvested		16,331			19,676
Value of shares redeemed		(723,675	)		(803,474	)
Change in net assets from Class C Share transactions		(332,216	)		266,124
Institutional Shares:
Proceeds from shares issued		16,394,614			24,412,603
Distributions reinvested		345,285			388,362
Value of shares redeemed		(18,360,026	)		(11,097,704	)
Change in net assets from Institutional Share transactions		(1,620,127	)		13,703,261
Change in net assets from capital transactions	$	(4,461,832	)	$	15,602,827
Share Transactions:
Class A Shares:
Issued		58,854			235,183
Reinvested		24,130			27,972
Redeemed		(310,299	)		(118,390	)
Change in Class A Shares		(227,315	)		144,765
Class C Shares:
Issued		34,231			93,348
Reinvested		1,480			1,749
Redeemed		(65,819	)		(71,470	)
Change in Class C Shares		(30,108	)		23,627
Institutional Shares:
Issued		1,498,678			2,178,180
Reinvested		31,477			34,737
Redeemed		(1,684,343	)		(988,162	)
Change in Institutional Shares		(154,188	)		1,224,755
Change in Shares		(411,611	)		1,393,147

See accompanying Notes to the Financial Statements.

156

Sterling Capital Virginia Intermediate Tax-Free Fund Sterling Capital West Virginia Intermediate Tax-Free Fund

For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	528,328		$	997,012		$	720,477		$	3,027,987
	680,708			665,639			687,934			755,715
	(7,343,890	)		(4,094,900	)		(8,091,281	)		(1,792,075	)
	(6,134,854	)		(2,432,249	)		(6,682,870	)		1,991,627
	16,637			167,437			10,000			446,769
	18,579			17,964			11,695			6,685
	(233,626	)		(276,899	)		(81,644	)		(49,782	)
	(198,410	)		(91,498	)		(59,949	)		403,672
	16,571,968			16,920,406			10,716,379			10,647,187
	449,673			517,419			312,834			399,153
	(27,585,076	)		(12,931,229	)		(14,199,818	)		(14,363,312	)
	(10,563,435	)		4,506,596			(3,170,605	)		(3,316,972	)
$	(16,896,699	)	$	1,982,849		$	(9,913,424	)	$	(921,673	)
	44,688			82,609			71,330			295,616
	58,264			55,102			68,957			73,984
	(626,811	)		(338,022	)		(812,178	)		(175,645	)
	(523,859	)		(200,311	)		(671,891	)		193,955
	1,425			13,843			978			43,324
	1,593			1,488			1,173			655
	(19,991	)		(22,763	)		(8,105	)		(4,851	)
	(16,973	)		(7,432	)		(5,954	)		39,128
	1,420,477			1,396,949			1,069,141			1,037,646
	38,531			42,802			31,393			39,088
	(2,364,171	)		(1,068,827	)		(1,419,137	)		(1,404,223	)
	(905,163	)		370,924			(318,603	)		(327,489	)
	(1,445,995	)		163,181			(996,448	)		(94,406	)

157

Sterling Capital Funds

Statements of Changes in Net Assets (continued)

	Sterling Capital Diversified Income Fund
	For the Year Ended September 30, 2017				For the Year Ended September 30, 2016
Capital Transactions:
Class A Shares:
Proceeds from shares issued1		$	1,747,062			$	1,547,665
Distributions reinvested			508,624				473,054
Value of shares redeemed			(2,587,858	)			(2,047,138	)
Change in net assets from Class A Share transactions			(332,172	)			(26,419	)
Class B Shares:
Proceeds from shares issued			—				2,070
Distributions reinvested			2,230				9,744
Value of shares redeemed			(224,406	)			(317,580	)
Change in net assets from Class B Share transactions2			(222,176	)			(305,766	)
Class C Shares:
Proceeds from shares issued			436,323				526,578
Distributions reinvested			25,726				18,624
Value of shares redeemed			(458,425	)			(239,308	)
Change in net assets from Class C Share transactions			3,624				305,894
Institutional Shares:
Proceeds from shares issued			2,563,776				4,869,619
Distributions reinvested			593,471				994,186
Value of shares redeemed			(21,326,072	)			(8,873,690	)
Change in net assets from Institutional Share transactions			(18,168,825	)			(3,009,885	)
Change in net assets from capital transactions		$	(18,719,549	)		$	(3,036,176	)
Share Transactions:
Class A Shares:
Issued1			163,312				147,958
Reinvested			47,637				45,677
Redeemed			(241,353	)			(198,129	)
Change in Class A Shares			(30,404	)			(4,494	)
Class B Shares:
Issued			—				202
Reinvested			211				942
Redeemed			(20,951	)			(30,595	)
Change in Class B Shares2			(20,740	)			(29,451	)
Class C Shares:
Issued			41,109				50,840
Reinvested			2,430				1,813
Redeemed			(43,317	)			(23,396	)
Change in Class C Shares			222				29,257
Institutional Shares:
Issued			235,780				465,723
Reinvested			55,329				94,911
Redeemed			(1,967,676	)			(856,953	)
Change in Institutional Shares			(1,676,567	)			(296,319	)
Change in Shares			(1,727,489	)			(301,007	)

¹Includes 4,169, 1,478, 992 shares and $45,151, $16,779, $11,136, for the year ended September 30, 2017, due to the conversion of Class B Shares into Class A Shares for the Sterling Capital Diversified Income Fund, the Sterling Capital Strategic Allocation Balanced Fund, and the Sterling Capital Strategic Allocation Growth Fund, respectively.

²Class B Shares of the Funds closed effective May 26, 2017.

See accompanying Notes to the Financial Statements.

158

Sterling Capital Strategic Allocation Balanced Fund						Sterling Capital Strategic Allocation Growth Fund
For the Year Ended September 30, 2017			For the Year Ended September 30, 2016			For the Year Ended September 30, 2017			For the Year Ended September 30, 2016
$	773,282		$	1,404,386		$	770,418		$	1,408,636
	420,490			627,559			231,090			380,173
	(5,819,188	)		(5,620,261	)		(2,782,419	)		(3,890,979	)
	(4,625,416	)		(3,588,316	)		(1,780,911	)		(2,102,170	)
	—			—			—			710
	1,247			7,812			931			9,375
	(267,509	)		(664,396	)		(340,392	)		(581,853	)
	(266,262	)		(656,584	)		(339,461	)		(571,768	)
	100,614			75,280			32,456			57,866
	5,294			9,576			2,396			5,147
	(133,952	)		(131,762	)		(112,371	)		(139,880	)
	(28,044	)		(46,906	)		(77,519	)		(76,867	)
	50,806			28			37,599			98,435
	2,003			1,789			9,485			13,445
	(33,247	)		(32,561	)		(165,201	)		(979,999	)
	19,562			(30,744	)		(118,117	)		(868,119	)
$	(4,900,160	)	$	(4,322,550	)	$	(2,316,008	)	$	(3,618,924	)
	69,675			134,456			70,463			140,419
	37,993			60,259			21,422			37,620
	(523,782	)		(542,145	)		(253,617	)		(385,153	)
	(416,114	)		(347,430	)		(161,732	)		(207,114	)
	—			—			—			70
	118			768			91			953
	(24,586	)		(64,884	)		(32,351	)		(59,787	)
	(24,468	)		(64,116	)		(32,260	)		(58,764	)
	8,871			7,574			3,094			5,923
	498			941			235			526
	(11,935	)		(12,837	)		(10,723	)		(14,281	)
	(2,566	)		(4,322	)		(7,394	)		(7,832	)
	4,673			3			3,411			9,593
	179			170			873			1,325
	(2,919	)		(3,069	)		(14,966	)		(93,735	)
	1,933			(2,896	)		(10,682	)		(82,817	)
	(441,215	)		(418,764	)		(212,068	)		(356,527	)

159

Sterling Capital Funds

Statement of Cash Flows

For the Year Ended September 30, 2017

	Sterling Capital Long/Short Equity Fund
Cash Used for Operating Activities:
Net decrease in net assets from operations	$	2,792,478
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:
Decrease in cash held at broker for securities short sales		9,066,539
Decrease in interest and dividends receivable		2,178
Decrease in prepaid expenses		1,615
Decrease in payable for dividends on short sales		(9,625	)
Decrease in investment advisory fees payable		(14,708	)
Increase in accounting out-of-pocket fees payable		691
Decrease in administration fees payable		(667	)
Decrease in audit fees payable		(1,108	)
Decrease in transfer agent fees payable		(2,207	)
Decrease in distribution (12b-1) fees payable		(88	)
Decrease in compliance service fees payable		(16	)
Decrease in other fees		(5,608	)
Net realized gain (loss) on investments		(1,706,986	)
Net unrealized gain (loss) on investments and foreign currency transactions		(1,816,646	)
Premiums received from options written		110,541
Premiums paid on closing options written		(44,133	)
Proceeds from investments sold short		(94,915,742	)
Purchases to cover investments sold short		84,707,668
Purchases of long-term investments		(93,560,885	)
Proceeds from sales of long-term investments		105,150,644
Net proceeds of short-term securities		1,097,288
Net cash provided by operating activities		10,851,223
Cash Provided by (Used for) Financing Activities:
Proceeds from issuance of capital shares		6,761,886
Payments on redemption of capital shares		(18,297,875	)
Proceeds from credit facility		2,009,000
Payments for credit facility		(2,009,000	)
Net cash used for financing activities		(11,535,989	)
Cash:
Net increase in cash		(684,766	)
Cash at beginning of year		684,988
Cash at end of year	$	222
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for dividend expense and service fee on securities sold short	$	(512,862	)
Cash paid during the year for line of credit		297
Non-Cash Financing Activities:
Capital shares issued in reinvestment of distributions paid to shareholders	$	—

See accompanying Notes to the Financial Statements.

160

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Sterling Capital Funds

Financial Highlights, Class A Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Year Ended September 30, 2017		$	17.68		0.36			2.97			3.33			(0.30	)		—			(0.30	)
Year Ended September 30, 2016		$	16.53		0.27			1.15			1.42			(0.27	)		—			(0.27	)
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	)
Sterling Capital Mid Value Fund
Year Ended September 30, 2017		$	16.71		(0.02	)		2.56			2.54			—			(0.53	)		(0.53	)
Year Ended September 30, 2016		$	17.97		0.02			2.06			2.08			—			(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	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Year Ended September 30, 2017		$	15.19		0.12			3.17			3.29			(0.09	)		—			(0.09	)
Year Ended September 30, 2016		$	14.04		0.18			1.15			1.33			(0.17	)		(0.01	)		(0.18	)
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	)
Sterling Capital Special Opportunities Fund
Year Ended September 30, 2017		$	21.53		0.02			3.37			3.39			—			(0.41	)		(0.41	)
Year Ended September 30, 2016		$	22.96		—			1.88			1.88			—			(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	)
Sterling Capital Equity Income Fund
Year Ended September 30, 2017		$	18.30		0.34			2.59			2.93			(0.37	)		(0.02	)		(0.39	)
Year Ended September 30, 2016		$	17.35		0.31			2.05			2.36			(0.31	)		(1.10	)		(1.41	)
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	)
Sterling Capital Long/Short Equity Fund
Year Ended September 30, 2017		$	8.61		(0.20	)		0.85			0.65			—			—			—
Year Ended September 30, 2016		$	8.87		(0.17	)		0.11			(0.06	)		—			(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(i)		$	10.00		(0.13	)		1.03			0.90			—			—			—

* 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) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.25% per share.

(g) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.19% per share.

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

(i) Period from commencement of operations.

(j) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.04% per share.

See accompanying Notes to the Financial Statements.

162

    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)
	$	20.71		18.94	%		$	33,358		0.89	%		1.87	%		0.89	%		144.85	%
	$	17.68		8.66	%		$	30,159		1.01	%		1.58	%		1.15	%		145.53	%
	$	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	%
	$	18.72		15.42	%		$	33,503		1.15	%		(0.09	)%		1.15	%		24.83	%
	$	16.71		13.07	%		$	31,625		1.18	%		0.15	%		1.18	%		25.45	%
	$	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	%
	$	18.39		21.65	%		$	9,281		1.05	%		0.72	%		1.10	%		109.05	%
	$	15.19		9.52	%		$	8,714		1.13	%		1.29	%		1.21	%		120.42	%
	$	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	%
	$	24.51		15.97	%		$	343,873		1.12	%		0.07	%		1.12	%		18.92	%
	$	21.53		8.57	%		$	351,467		1.17	%		0.02	%		1.22	%		27.32	%
	$	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	%
	$	20.84		16.19	%		$	348,427		1.03	%		1.78	%		1.03	%		16.93	%
	$	18.30		14.50	%		$	467,470		1.21	%		1.78	%		1.21	%		20.64	%
	$	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	%
	$	9.26		7.55	%		$	391		3.63	%(f)		(2.23	)%		3.68	%		404.82	%
	$	8.61		(0.57	)%		$	362		3.51	%(g)		(2.06	)%		3.54	%		370.28	%
	$	8.87		(16.16	)%		$	1,307		3.19	%(h)		(1.93	)%		3.19	%		265.99	%
	$	10.90		9.00	%		$	2,437		3.44	%(j)		(1.55	)%		3.44	%		193.58	%

163

Sterling Capital Funds

Financial Highlights, Class A Shares

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

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net investment income (loss)(a)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Return of capital		Total Distributions
Sterling Capital Behavioral International Equity Fund
Year Ended September 30, 2017		$9.68		0.25		1.96		2.21		(0.14)		—		—		(0.14)
Year Ended September 30, 2016		$9.22		0.21		0.46		0.67		(0.21)		—		—		(0.21)
November 28, 2014 to September 30, 2015(d)		$10.00		0.18		(0.94)		(0.76)		(0.02)		—		—		(0.02)
Sterling Capital SMID Opportunities Fund
October 3, 2016 to September 30, 2017(d)		$10.00		—(e)		1.76		1.76		(0.01)		—		—		(0.01)
Sterling Capital Stratton Mid Cap Value Fund
Year Ended September 30, 2017		$55.87		0.02		10.65		10.67		(0.04)		(0.27)		—		(0.31)
Period Ended September 30, 2016		$52.55		(0.02)		3.34		3.32		—		—		—		—
November 16, 2015 to December 31, 2015(d)		$53.97		0.05		0.44		0.49		(0.13)		(1.78)		—		(1.91)
Sterling Capital Stratton Real Estate Fund
Year Ended September 30, 2017		$39.67		0.75		(0.54)		0.21		(1.09)		(1.75)		—		(2.84)
Period Ended September 30, 2016		$36.00		0.57		3.58		4.15		(0.48)		—		—		(0.48)
November 16, 2015 to December 31, 2015(d)		$34.90		0.15		1.42		1.57		—		(0.47)		—		(0.47)
Sterling Capital Stratton Small Cap Value Fund
Year Ended September 30, 2017		$78.34		—(e)		15.72		15.72		(0.05)		(4.10)		—		(4.15)
Period Ended September 30, 2016		$69.90		(0.02)		8.46		8.44		—		—		—		—
November 16, 2015 to December 31, 2015(d)		$71.71		0.05		(0.81)		(0.76)		(0.05)		(1.00)		—		(1.05)
Sterling Capital Ultra Short Bond Fund
Year Ended September 30, 2017		$9.82		0.07		0.03		0.10		(0.13)		—		—		(0.13)
Year Ended September 30, 2016		$9.87		0.07		0.03		0.10		(0.15)		—		—		(0.15)
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(d)		$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) Period from commencement of operations.

(e) Amount is less than $0.005.

See accompanying Notes to the Financial Statements.

164

    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)
	$	11.75		23.19	%		$	510		0.93	%		2.38	%		1.19	%		91.65	%
	$	9.68		7.24	%		$	354		1.05	%		2.26	%		1.36	%		125.35	%
	$	9.22		(7.57	)%		$	531		1.28	%		2.16	%		1.44	%		133.50	%
	$	11.75		17.59	%		$	4,038		1.04	%		(0.03	)%		1.66	%		37.97	%
	$	66.23		19.16	%		$	108		1.16	%		0.03	%		1.16	%		12.19	%
	$	55.87		6.32	%		$	19		1.20	%		(0.04	)%		1.22	%		11.16	%
	$	52.55		1.00	%		$	1		0.91	%		0.72	%		0.91	%		19.28	%
	$	37.04		0.90	%		$	302		1.04	%		2.03	%		1.05	%		13.52	%
	$	39.67		11.50	%		$	115		1.08	%		1.93	%		1.11	%		18.43	%
	$	36.00		4.54	%		$	1		0.86	%		3.30	%		0.86	%		15.47	%
	$	89.91		20.43	%		$	529		1.31	%		0.01	%		1.31	%		7.04	%
	$	78.34		12.07	%		$	87		1.33	%		(0.04	)%		1.33	%		3.42	%
	$	69.90		(1.03	)%		$	1		1.33	%		0.58	%		1.33	%		6.33	%
	$	9.79		1.00	%		$	4,663		0.68	%		0.71	%		0.78	%		59.57	%
	$	9.82		0.99	%		$	6,250		0.71	%		0.72	%		0.80	%		43.02	%
	$	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	%

165

Sterling Capital Funds

Financial Highlights, Class A Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Short Duration Bond Fund
Year Ended September 30, 2017		$	8.81		0.10		(0.01	)		0.09			(0.21	)		—			—			(0.21	)
Year Ended September 30, 2016		$	8.86		0.10		0.07			0.17			(0.22	)		—			—			(0.22	)
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	)
Sterling Capital Intermediate U.S. Government Fund
Year Ended September 30, 2017		$	10.24		0.15		(0.27	)		(0.12	)		(0.21	)		—			—			(0.21	)
Year Ended September 30, 2016		$	10.18		0.13		0.11			0.24			(0.18	)		—			—			(0.18	)
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	)
Sterling Capital Total Return Bond Fund
Year Ended September 30, 2017		$	10.81		0.23		(0.15	)		0.08			(0.30	)		—			—			(0.30	)
Year Ended September 30, 2016		$	10.53		0.26		0.34			0.60			(0.32	)		—			—			(0.32	)
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	)
Sterling Capital Corporate Fund
Year Ended September 30, 2017		$	10.37		0.29		(0.08	)		0.21			(0.29	)		(0.04	)		—			(0.33	)
Year Ended September 30, 2016		$	10.10		0.28		0.27			0.55			(0.28	)		—			—			(0.28	)
Year Ended September 30, 2015		$	10.25		0.29		(0.14	)		0.15			(0.29	)		(0.01	)		—	(d)		(0.30	)
Year Ended September 30, 2014		$	10.15		0.31		0.20			0.51			(0.31	)		(0.10	)		—			(0.41	)
February 1, 2013 to September 30, 2013(e)		$	10.53		0.22		(0.38	)		(0.16	)		(0.22	)		—			—			(0.22	)
Sterling Capital Securitized Opportunities Fund
Year Ended September 30, 2017		$	10.10		0.21		(0.12	)		0.09			(0.25	)		—			—			(0.25	)
Year Ended September 30, 2016		$	9.98		0.19		0.16			0.35			(0.23	)		—			—			(0.23	)
Year Ended September 30, 2015		$	9.90		0.20		0.13			0.33			(0.25	)		—			—			(0.25	)
Year Ended September 30, 2014		$	9.85		0.22		0.11			0.33			(0.28	)		—			—			(0.28	)
February 1, 2013 to September 30, 2013(e)		$	10.16		0.11		(0.21	)		(0.10	)		(0.21	)		—			—			(0.21	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	10.64		0.21		(0.23	)		(0.02	)		(0.21	)		(0.14	)		—			(0.35	)
Year Ended September 30, 2016		$	10.62		0.24		0.15			0.39			(0.24	)		(0.13	)		—			(0.37	)
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	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	11.31		0.21		(0.21	)		—			(0.21	)		(0.08	)		—			(0.29	)
Year Ended September 30, 2016		$	11.17		0.20		0.21			0.41			(0.20	)		(0.07	)		—			(0.27	)
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	)

* 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.

166

    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)
	$	8.69		1.02	%		$	5,746		0.70	%		1.11	%		0.80	%		78.77	%
	$	8.81		1.98	%		$	7,332		0.74	%		1.09	%		0.81	%		54.68	%
	$	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	%
	$	9.91		(1.20	)%		$	5,418		0.87	%		1.54	%		0.91	%		32.44	%
	$	10.24		2.37	%		$	7,066		0.85	%		1.24	%		0.97	%		49.39	%
	$	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	%
	$	10.59		0.75	%		$	72,030		0.72	%		2.13	%		0.82	%		64.07	%
	$	10.81		5.84	%		$	70,257		0.74	%		2.42	%		0.84	%		65.47	%
	$	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	%
	$	10.25		2.07	%		$	372		0.88	%		2.84	%		0.88	%		78.79	%
	$	10.37		5.55	%		$	441		0.89	%		2.77	%		0.89	%		83.88	%
	$	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	%
	$	9.94		0.89	%		$	94		0.85	%		2.06	%		0.89	%		34.72	%
	$	10.10		3.60	%		$	377		0.84	%		1.89	%		0.88	%		43.63	%
	$	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	%
	$	10.27		(0.19	)%		$	4,072		0.93	%		2.01	%		0.96	%		17.93	%
	$	10.64		3.69	%		$	4,358		0.91	%		2.25	%		1.02	%		16.44	%
	$	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	%
	$	11.02		0.00	%		$	5,818		0.86	%		1.88	%		0.90	%		5.89	%
	$	11.31		3.71	%		$	6,537		0.86	%		1.75	%		0.96	%		14.36	%
	$	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	%

167

Sterling Capital Funds

Financial Highlights, Class A Shares

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

		Investment Activities					Distributions
	Net Asset Value, Beginning of Year	Net investment income(a)	Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Distributions
Sterling Capital North Carolina Intermediate Tax-Free Fund
Year Ended September 30, 2017	$11.08	0.23		(0.27)		(0.04)		(0.22)		(0.04)		(0.26)
Year Ended September 30, 2016	$10.97	0.23		0.17		0.40		(0.23)		(0.06)		(0.29)
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)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Year Ended September 30, 2017	$11.30	0.20		(0.20)		—		(0.20)		—		(0.20)
Year Ended September 30, 2016	$11.14	0.20		0.20		0.40		(0.20)		(0.04)		(0.24)
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)
Sterling Capital Virginia Intermediate Tax-Free Fund
Year Ended September 30, 2017	$12.13	0.23		(0.28)		(0.05)		(0.23)		(0.09)		(0.32)
Year Ended September 30, 2016	$11.98	0.24		0.19		0.43		(0.24)		(0.04)		(0.28)
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)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Year Ended September 30, 2017	$10.27	0.21		(0.18)		0.03		(0.21)		(0.05)		(0.26)
Year Ended September 30, 2016	$10.14	0.21		0.18		0.39		(0.21)		(0.05)		(0.26)
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)
Sterling Capital Diversified Income Fund(b)
Year Ended September 30, 2017	$10.82	0.41		(0.03)		0.38		(0.41)		—		(0.41)
Year Ended September 30, 2016	$10.21	0.33		0.65		0.98		(0.37)		—		(0.37)
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)
Sterling Capital Strategic Allocation Balanced Fund(b)
Year Ended September 30, 2017	$10.82	0.15		1.08		1.23		(0.16)		—		(0.16)
Year Ended September 30, 2016	$10.31	0.17		0.55		0.72		(0.21)		—		(0.21)
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)
Sterling Capital Strategic Allocation Growth Fund(b)
Year Ended September 30, 2017	$10.53	0.11		1.38		1.49		(0.12)		—		(0.12)
Year Ended September 30, 2016	$9.99	0.14		0.57		0.71		(0.17)		—		(0.17)
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)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). If such reductions had not occurred, the ratios would have been as indicated.

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

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

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

See accompanying Notes to the Financial Statements.

168

    XXUPDATEXXX

		Ratios/Supplementary Data
Net Asset Value, End of Year	Total Return (excludes sales charge)	Net Assets, End of Year (000)	Ratio of net expenses to average net assets	Ratio of net investment income to average net assets	Ratio of expenses to average net assets*	Portfolio turnover rate**
$10.78	(0.31)%	$45,357	0.79%	2.09%	0.83%	25.92%
$11.08	3.69%	$52,130	0.80%	2.08%	0.90%	10.05%
$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%
$11.10	0.01%	$15,832	0.81%	1.78%	0.84%	31.17%
$11.30	3.59%	$18,683	0.82%	1.78%	0.92%	2.69%
$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%
$11.76	(0.39)%	$27,481	0.80%	1.93%	0.84%	23.25%
$12.13	3.65%	$34,691	0.81%	1.99%	0.91%	16.18%
$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%
$10.04	0.28%	$30,134	0.81%	2.08%	0.85%	21.00%
$10.27	3.92%	$37,720	0.82%	2.05%	0.92%	11.31%
$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%
$10.79	3.57%	$14,754	0.77%	3.84%	0.77%	43.86%
$10.82	9.87%	$15,126	0.64%	3.17%	0.72%	67.18%
$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%
$11.89	11.46%	$30,181	0.42%	1.37%	0.67%	0.80%
$10.82	7.02%	$31,951	0.40%	1.65%	0.65%	5.19%
$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%
$11.90	14.24%	$22,836	0.44%	1.04%	0.69%	1.92%
$10.53	7.22%	$21,912	0.43%	1.34%	0.68%	5.95%
$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%

169

Sterling Capital Funds

Financial Highlights, Class C Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Year Ended September 30, 2017		$	17.20		0.21			2.87			3.08			(0.15	)		—			(0.15	)
Year Ended September 30, 2016		$	16.09		0.14			1.12			1.26			(0.15	)		—			(0.15	)
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	)
Sterling Capital Mid Value Fund
Year Ended September 30, 2017		$	15.12		(0.14	)		2.31			2.17			—			(0.53	)		(0.53	)
Year Ended September 30, 2016		$	16.67		(0.09	)		1.88			1.79			—			(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	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Year Ended September 30, 2017		$	14.70		(0.02	)		3.07			3.05			(0.06	)		—			(0.06	)
Year Ended September 30, 2016		$	13.60		0.07			1.11			1.18			(0.07	)		(0.01	)		(0.08	)
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	)
Sterling Capital Special Opportunities Fund
Year Ended September 30, 2017		$	18.54		(0.13	)		2.88			2.75			—			(0.41	)		(0.41	)
Year Ended September 30, 2016		$	20.34		(0.14	)		1.65			1.51			—			(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	)
Sterling Capital Equity Income Fund
Year Ended September 30, 2017		$	18.14		0.20			2.56			2.76			(0.22	)		(0.02	)		(0.24	)
Year Ended September 30, 2016		$	17.21		0.18			2.03			2.21			(0.18	)		(1.10	)		(1.28	)
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	)
Sterling Capital Long/Short Equity Fund
Year Ended September 30, 2017		$	8.43		(0.27	)		0.84			0.57			—			—			—
Year Ended September 30, 2016		$	8.76		(0.24	)		0.11			(0.13	)		—			(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
Year Ended September 30, 2017		$	9.62		0.15			1.96			2.11			(0.09	)		—			(0.09	)
Year Ended September 30, 2016		$	9.18		0.17			0.42			0.59			(0.15	)		—			(0.15	)
November 28, 2014 to September 30, 2015(j)		$	10.00		0.19			(0.99	)		(0.80	)		(0.02	)		—			(0.02	)

* 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) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 3.00% per share.

(h) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.94% 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.

170

    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)
	$	20.13		18.00	%		$	966		1.64	%		1.12	%		1.64	%		144.85	%
	$	17.20		7.87	%		$	919		1.76	%		0.81	%		1.90	%		145.53	%
	$	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	%
	$	16.76		14.58	%		$	4,363		1.90	%		(0.87	)%		1.90	%		24.83	%
	$	15.12		12.22	%		$	5,282		1.93	%		(0.61	)%		1.93	%		25.45	%
	$	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	%
	$	17.69		20.73	%		$	191		1.80	%		(0.10	)%		1.85	%		109.05	%
	$	14.70		8.68	%		$	364		1.88	%		0.52	%		1.98	%		120.42	%
	$	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	%
	$	20.88		15.08	%		$	149,892		1.87	%		(0.68	)%		1.87	%		18.92	%
	$	18.54		7.76	%		$	181,061		1.92	%		(0.73	)%		1.97	%		27.32	%
	$	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	%
	$	20.66		15.36	%		$	234,108		1.78	%		1.03	%		1.78	%		16.93	%
	$	18.14		13.66	%		$	271,598		1.96	%		1.03	%		1.96	%		20.64	%
	$	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	%
	$	9.00		6.64	%		$	119		4.40	%(g)		(3.10	)%		4.45	%		404.82	%
	$	8.43		(1.27	)%		$	211		4.35	%(h)		(2.98	)%		4.38	%		370.28	%
	$	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	%
	$	11.64		22.19	%		$	59		1.68	%		1.44	%		1.94	%		91.65	%
	$	9.62		6.38	%		$	47		1.80	%		1.83	%		2.13	%		125.35	%
	$	9.18		(8.03	)%		$	28		2.03	%		2.26	%		2.19	%		133.50	%

171

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 SMID Opportunities Fund
October 3, 2016 to September 30, 2017(d)		$	10.00		(0.09	)		1.76			1.67			—			—			—
Sterling Capital Stratton Mid Cap Value Fund
Year Ended September 30, 2017		$	55.55		(0.41	)		10.53			10.12			—			(0.27	)		(0.27	)
Period Ended September 30, 2016		$	52.54		(0.32	)		3.33			3.01			—			—			—
November 16, 2015 to December 31, 2015(d)		$	53.97		—			0.45			0.45			(0.10	)		(1.78	)		(1.88	)
Sterling Capital Stratton Real Estate Fund
Year Ended September 30, 2017		$	39.50		0.43			(0.49	)		(0.06	)		(0.78	)		(1.75	)		(2.53	)
Period Ended September 30, 2016		$	35.97		0.34			3.58			3.92			(0.39	)		—			(0.39	)
November 16, 2015 to December 31, 2015(d)		$	34.90		0.12			1.42			1.54			—			(0.47	)		(0.47	)
Sterling Capital Stratton Small Cap Value Fund
Year Ended September 30, 2017		$	77.88		(0.64	)		15.61			14.97			—			(4.10	)		(4.10	)
Period Ended September 30, 2016		$	69.88		(0.41	)		8.41			8.00			—			—			—
November 16, 2015 to December 31, 2015(d)		$	71.71		(0.01	)		(0.81	)		(0.82	)		(0.01	)		(1.00	)		(1.01	)
Sterling Capital Short Duration Bond Fund
Year Ended September 30, 2017		$	8.80		0.03			—			0.03			(0.14	)		—			(0.14	)
Year Ended September 30, 2016		$	8.85		0.03			0.07			0.10			(0.16	)		—			(0.16	)
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	)

* 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.

See accompanying Notes to the Financial Statements.

172

						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)
	$	11.67		16.70	%		$	1,414		1.79	%		(0.80	)%		2.38	%		37.97	%
	$	65.40		18.27	%		$	1		1.89	%		(0.68	)%		1.89	%		12.19	%
	$	55.55		5.73	%		$	1		1.95	%		(0.82	)%		1.95	%		11.16	%
	$	52.54		0.91	%		$	1		1.64	%		(0.01	)%		1.64	%		19.28	%
	$	36.91		0.16	%		$	64		1.79	%		1.18	%		1.80	%		13.52	%
	$	39.50		10.90	%		$	20		1.83	%		1.21	%		1.85	%		18.43	%
	$	35.97		4.45	%		$	1		1.59	%		2.57	%		1.59	%		15.47	%
	$	88.75		19.55	%		$	107		2.06	%		0.78	%		2.06	%		7.04	%
	$	77.88		11.45	%		$	65		2.08	%		(0.74	)%		2.08	%		3.42	%
	$	69.88		(1.12	)%		$	1		2.06	%		(0.15	)%		2.06	%		6.33	%
	$	8.69		0.38	%		$	1,546		1.45	%		0.37	%		1.55	%		78.77	%
	$	8.80		1.22	%		$	1,886		1.49	%		0.35	%		1.56	%		54.68	%
	$	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	%

173

Sterling Capital Funds

Financial Highlights, Class C Shares

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

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Intermediate U.S. Government Fund
Year Ended September 30, 2017		$10.22		0.08		(0.28	)		(0.20	)		(0.13	)		—			—			(0.13	)
Year Ended September 30, 2016		$10.17		0.05		0.10			0.15			(0.10	)		—			—			(0.10	)
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	)
Sterling Capital Total Return Bond Fund
Year Ended September 30, 2017		$10.83		0.15		(0.15	)		—			(0.22	)		—			—			(0.22	)
Year Ended September 30, 2016		$10.55		0.18		0.35			0.53			(0.25	)		—			—			(0.25	)
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	)
Sterling Capital Corporate Fund
Year Ended September 30, 2017		$10.35		0.21		(0.08	)		0.13			(0.21	)		(0.04	)		—			(0.25	)
Year Ended September 30, 2016		$10.09		0.21		0.26			0.47			(0.21	)		—			—			(0.21	)
Year Ended September 30, 2015		$10.24		0.22		(0.14	)		0.08			(0.22	)		(0.01	)		—	(d)		(0.23	)
Year Ended September 30, 2014		$10.15		0.24		0.18			0.42			(0.23	)		(0.10	)		—			(0.33	)
February 1, 2013 to September 30, 2013(e)		$10.53		0.18		(0.39	)		(0.21	)		(0.17	)		—			—			(0.17	)
Sterling Capital Securitized Opportunities Fund
Year Ended September 30, 2017		$10.09		0.13		(0.12	)		0.01			(0.17	)		—			—			(0.17	)
Year Ended September 30, 2016		$9.97		0.12		0.16			0.28			(0.16	)		—			—			(0.16	)
Year Ended September 30, 2015		$9.89		0.13		0.13			0.26			(0.18	)		—			—			(0.18	)
Year Ended September 30, 2014		$9.84		0.16		0.11			0.27			(0.22	)		—			—			(0.22	)
February 1, 2013 to September 30, 2013(e)		$10.16		0.08		(0.23	)		(0.15	)		(0.17	)		—			—			(0.17	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Year Ended September 30, 2017		$10.65		0.14		(0.22	)		(0.08	)		(0.15	)		(0.14	)		—			(0.29	)
Year Ended September 30, 2016		$10.63		0.16		0.15			0.31			(0.16	)		(0.13	)		—			(0.29	)
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	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Year Ended September 30, 2017		$11.31		0.12		(0.21	)		(0.09	)		(0.12	)		(0.08	)		—			(0.20	)
Year Ended September 30, 2016		$11.18		0.11		0.20			0.31			(0.11	)		(0.07	)		—			(0.18	)
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	)
Sterling Capital North Carolina Intermediate Tax-Free Fund
Year Ended September 30, 2017		$11.07		0.14		(0.26	)		(0.12	)		(0.14	)		(0.04	)		—			(0.18	)
Year Ended September 30, 2016		$10.96		0.15		0.17			0.32			(0.15	)		(0.06	)		—			(0.21	)
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	)

* 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.

174

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge) (b)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets (c)			Ratio of net investment income to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	9.89		(1.94	)%		$	577		1.62	%		0.80	%		1.66	%		32.44	%
	$	10.22		1.51	%		$	706		1.60	%		0.48	%		1.72	%		49.39	%
	$	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	%
	$	10.61		0.00	%		$	7,582		1.47	%		1.38	%		1.57	%		64.07	%
	$	10.83		5.05	%		$	7,933		1.49	%		1.66	%		1.59	%		65.47	%
	$	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	%
	$	10.23		1.30	%		$	43		1.64	%		2.09	%		1.64	%		78.79	%
	$	10.35		4.69	%		$	58		1.64	%		2.03	%		1.64	%		83.88	%
	$	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	%
	$	9.93		0.12	%		$	34		1.60	%		1.31	%		1.64	%		34.72	%
	$	10.09		2.83	%		$	40		1.61	%		1.16	%		1.65	%		43.63	%
	$	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	%
	$	10.28		(0.74	)%		$	2		1.58	%		1.32	%		1.65	%		17.93	%
	$	10.65		2.93	%		$	20		1.65	%		1.50	%		1.76	%		16.44	%
	$	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	%
	$	11.02		(0.74	)%		$	627		1.61	%		1.13	%		1.65	%		5.89	%
	$	11.31		2.85	%		$	802		1.61	%		1.01	%		1.71	%		14.36	%
	$	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	%
	$	10.77		(1.06	)%		$	4,591		1.54	%		1.34	%		1.58	%		25.92	%
	$	11.07		2.91	%		$	6,108		1.55	%		1.31	%		1.65	%		10.05	%
	$	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	%

175

Sterling Capital Funds

Financial Highlights, Class C Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital South Carolina Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	11.30		0.11			(0.20	)		(0.09	)		(0.11	)		—			(0.11	)
Year Ended September 30, 2016		$	11.14		0.12			0.20			0.32			(0.12	)		(0.04	)		(0.16	)
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	)
Sterling Capital Virginia Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	12.13		0.14			(0.28	)		(0.14	)		(0.14	)		(0.09	)		(0.23	)
Year Ended September 30, 2016		$	11.98		0.15			0.19			0.34			(0.15	)		(0.04	)		(0.19	)
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	)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	10.27		0.13			(0.17	)		(0.04	)		(0.13	)		(0.05	)		(0.18	)
Year Ended September 30, 2016		$	10.14		0.13			0.18			0.31			(0.13	)		(0.05	)		(0.18	)
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	)
Sterling Capital Diversified Income Fund(b)
Year Ended September 30, 2017		$	10.73		0.33			(0.03	)		0.30			(0.33	)		—			(0.33	)
Year Ended September 30, 2016		$	10.13		0.24			0.66			0.90			(0.30	)		—			(0.30	)
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	)
Sterling Capital Strategic Allocation Balanced Fund(b)
Year Ended September 30, 2017		$	10.62		0.07			1.06			1.13			(0.08	)		—			(0.08	)
Year Ended September 30, 2016		$	10.13		0.09			0.53			0.62			(0.13	)		—			(0.13	)
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	)
Sterling Capital Strategic Allocation Growth Fund(b)
Year Ended September 30, 2017		$	10.18		0.03			1.32			1.35			(0.06	)		—			(0.06	)
Year Ended September 30, 2016		$	9.68		0.05			0.57			0.62			(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	)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). If such reductions had not occurred, the ratios would have been as indicated.

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

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

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

See accompanying Notes to the Financial Statements.

176

    XXUPDATEXXX

						Ratios/Supplementary Data
Net Asset Value, End of Period			Total Return (excludes sales charge)			Net Assets, End of Period (000)			Ratio of net expenses to average net assets			Ratio of net investment income to average net assets			Ratio of expenses to average net assets*			Portfolio turnover rate**
	$	11.10		(0.74	)%		$	1,440		1.56	%		1.04	%		1.59	%		31.17	%
	$	11.30		2.82	%		$	1,806		1.56	%		1.02	%		1.66	%		2.69	%
	$	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	%
	$	11.76		(1.14	)%		$	935		1.55	%		1.18	%		1.59	%		23.25	%
	$	12.13		2.88	%		$	1,170		1.56	%		1.24	%		1.66	%		16.18	%
	$	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	%
	$	10.05		(0.38	)%		$	739		1.56	%		1.34	%		1.59	%		21.00	%
	$	10.27		3.14	%		$	817		1.57	%		1.29	%		1.67	%		11.31	%
	$	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	%
	$	10.70		2.84	%		$	1,155		1.52	%		3.08	%		1.52	%		43.86	%
	$	10.73		9.07	%		$	1,157		1.39	%		2.43	%		1.47	%		67.18	%
	$	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	%
	$	11.67		10.68	%		$	785		1.17	%		0.62	%		1.42	%		0.80	%
	$	10.62		6.18	%		$	741		1.15	%		0.89	%		1.40	%		5.19	%
	$	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	%
	$	11.47		13.36	%		$	407		1.19	%		0.31	%		1.44	%		1.92	%
	$	10.18		6.46	%		$	436		1.18	%		0.56	%		1.43	%		5.95	%
	$	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	%

177

Sterling Capital Funds

Financial Highlights, Institutional Shares

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

				Investment Activities									Distributions
	Net Asset Value, Beginning of Period			Net investment income (loss)(a)			Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Total Distributions
Sterling Capital Behavioral Large Cap Value Equity Fund
Year Ended September 30, 2017		$	17.78		0.41			2.98			3.39			(0.35	)		—			(0.35	)
Year Ended September 30, 2016		$	16.62		0.32			1.16			1.48			(0.32	)		—			(0.32	)
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	)
Sterling Capital Mid Value Fund
Year Ended September 30, 2017		$	16.92		0.03			2.59			2.62			(0.01	)		(0.53	)		(0.54	)
Year Ended September 30, 2016		$	18.14		0.07			2.07			2.14			(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	)
Sterling Capital Behavioral Small Cap Value Equity Fund
Year Ended September 30, 2017		$	15.30		0.17			3.18			3.35			(0.10	)		—			(0.10	)
Year Ended September 30, 2016		$	14.14		0.22			1.16			1.38			(0.21	)		(0.01	)		(0.22	)
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	)
Sterling Capital Special Opportunities Fund
Year Ended September 30, 2017		$	22.48		0.08			3.51			3.59			(0.01	)		(0.41	)		(0.42	)
Year Ended September 30, 2016		$	23.78		0.06			1.95			2.01			—			(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	)
Sterling Capital Equity Income Fund
Year Ended September 30, 2017		$	18.34		0.39			2.60			2.99			(0.42	)		(0.02	)		(0.44	)
Year Ended September 30, 2016		$	17.39		0.35			2.06			2.41			(0.36	)		(1.10	)		(1.46	)
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	)
Sterling Capital Long/Short Equity Fund
Year Ended September 30, 2017		$	8.67		(0.18	)		0.87			0.69			—			—			—
Year Ended September 30, 2016		$	8.91		(0.16	)		0.12			(0.04	)		—			(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			—			—			—

* 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) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 2.00% per share.

(h) Net expense ratio excluding dividend expense and service fee on securities sold short would have been 1.94% 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.

178

    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 (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	20.82		19.18	%		$	272,504		0.64	%		2.12	%		0.64	%		144.85	%
	$	17.78		8.94	%		$	240,971		0.76	%		1.83	%		0.90	%		145.53	%
	$	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	%
	$	19.00		15.73	%		$	632,867		0.90	%		0.15	%		0.90	%		24.83	%
	$	16.92		13.32	%		$	550,697		0.93	%		0.41	%		0.93	%		25.45	%
	$	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	%
	$	18.55		21.89	%		$	208,404		0.80	%		0.99	%		0.85	%		109.05	%
	$	15.30		9.80	%		$	157,413		0.88	%		1.54	%		0.98	%		120.42	%
	$	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	%
	$	25.65		16.22	%		$	652,211		0.87	%		0.32	%		0.87	%		18.92	%
	$	22.48		8.86	%		$	587,320		0.92	%		0.27	%		0.97	%		27.32	%
	$	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	%
	$	20.89		16.51	%		$	980,982		0.78	%		2.04	%		0.78	%		16.93	%
	$	18.34		14.75	%		$	943,101		0.96	%		2.04	%		0.96	%		20.64	%
	$	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	%
	$	9.36		7.72	%		$	32,822		3.40	%(g)		(2.02	)%		3.45	%		404.82	%
	$	8.67		(0.33	)%		$	41,521		3.31	%(h)		(1.91	)%		3.33	%		370.28	%
	$	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	%

179

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			Redemption Fees
Sterling Capital Behavioral International Equity Fund
Year Ended September 30, 2017		$	9.69		0.27			1.97			2.24			(0.17	)		—			(0.17	)		—
Year Ended September 30, 2016		$	9.24		0.23			0.44			0.67			(0.22	)		—			(0.22	)		—
November 30, 2014 to September 30, 2015(d)		$	10.00		0.24			(0.97	)		(0.73	)		(0.03	)		—			(0.03	)		—
Sterling Capital SMID Opportunities Fund
October 3, 2016 to September 30, 2017(d)		$	10.00		0.02			1.76			1.78			(0.01	)		—			(0.01	)		—
Sterling Capital Stratton Mid Cap Value Fund(e)
Year Ended September 30, 2017		$	55.97		0.19			10.66			10.85			(0.08	)		(0.27	)		(0.35	)		—
Period Ended September 30, 2016		$	52.55		0.07			3.35			3.42			—			—			—			—
Year Ended December 31, 2015		$	55.50		0.15			(1.17	)		(1.02	)		(0.15	)		(1.78	)		(1.93	)		—	(f)
Year Ended December 31, 2014		$	51.63		0.02			3.85			3.87			(0.02	)		—			(0.02	)		0.02
Year Ended December 31, 2013		$	37.47		(0.01	)		14.17			14.16			—			—			—			—	(f)
Year Ended December 31, 2012		$	32.65		0.19			4.84			5.03			(0.21	)		—			(0.21	)		—	(f)
Sterling Capital Stratton Real Estate Fund(e)
Year Ended September 30, 2017		$	39.74		0.83			(0.53	)		0.30			(1.19	)		(1.75	)		(2.94	)		—
Period Ended September 30, 2016		$	36.01		0.61			3.62			4.23			(0.50	)		—			(0.50	)		—
Year Ended December 31, 2015		$	36.44		0.66			(0.04	)		0.62			(0.59	)		(0.47	)		(1.06	)		0.01
Year Ended December 31, 2014		$	29.86		0.62			8.47			9.09			(0.62	)		(1.89	)		(2.51	)		—	(f)
Year Ended December 31, 2013		$	29.98		0.49			0.21			0.70			(0.15	)		(0.67	)		(0.82	)		—	(f)
Year Ended December 31, 2012		$	26.98		0.44			4.50			4.94			(0.38	)		(1.56	)		(1.94	)		—	(f)
Sterling Capital Stratton Small Cap Value Fund(e)
Year Ended September 30, 2017		$	78.46		0.16			15.81			15.97			(0.14	)		(4.10	)		(4.24	)		—	(f)
Period Ended September 30, 2016		$	69.89		0.10			8.47			8.57			—			—			—			—	(f)
Year Ended December 31, 2015		$	74.05		0.07			(3.15	)		(3.08	)		(0.08	)		(1.00	)		(1.08	)		—	(f)
Year Ended December 31, 2014		$	73.31		0.02			2.21			2.23			(0.02	)		(1.48	)		(1.50	)		0.01
Year Ended December 31, 2013		$	55.38		(0.01	)		21.47			21.46			—			(3.53	)		(3.53	)		—	(f)
Year Ended December 31, 2012		$	49.79		0.07			7.39			7.46			(0.08	)		(1.79	)		(1.87	)		—	(f)
Sterling Capital Ultra Short Bond Fund
Year Ended September 30, 2017		$	9.81		0.09			0.04			0.13			(0.15	)		—			(0.15	)		—
Year Ended September 30, 2016		$	9.86		0.09			0.03			0.12			(0.17	)		—			(0.17	)		—
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(d)		$	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) Period from commencement of operations.

(e) Each of the Stratton Mid Cap Value Fund, the Stratton Real Estate Fund, and the Stratton Small Cap Value Fund (collectively, the “Predecessor Funds”) transferred its assets and liabilities to, Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund and Sterling Capital Stratton Small Cap Value Fund, respectively (collectively, the “Fund Mergers”) at the close of business on November 13, 2015. Because the Funds had no investment operations prior to the closing of the Fund Mergers, and based on the similarity of the Funds to the Predecessor Funds, each Predecessor Fund is treated as the survivor of the relevant Fund Merger for accounting and performance reporting purposes.

(f) Amount is less than $0.005.

See accompanying Notes to the Financial Statements.

180

    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 (loss) to average net assets (c)			Ratio of expenses to average net assets*(c)			Portfolio turnover rate**(b)
	$	11.76		23.46	%		$	81,876		0.68	%		2.59	%		0.95	%		91.65	%
	$	9.69		7.30	%		$	69,954		0.80	%		2.48	%		1.16	%		125.35	%
	$	9.24		(7.36	)%		$	18,592		1.03	%		2.82	%		1.18	%		133.50	%
	$	11.77		17.84	%		$	4,460		0.79	%		0.19	%		1.35	%		37.97	%
	$	66.47		19.47	%		$	66,030		0.91	%		0.32	%		0.92	%		12.19	%
	$	55.97		6.51	%		$	63,513		0.95	%		0.18	%		0.97	%		11.16	%
	$	52.55		(1.75	)%		$	64,364		1.04	%		0.26	%		1.04	%		19.28	%
	$	55.50		7.54	%		$	74,637		1.05	%		0.03	%		1.05	%		55.45	%
	$	51.63		37.79	%		$	67,937		1.16	%		(0.02	)%		1.16	%		24.21	%
	$	37.47		15.40	%		$	52,697		1.21	%		0.54	%		1.21	%		63.11	%
	$	37.10		1.16	%		$	96,199		0.79	%		2.23	%		0.81	%		13.52	%
	$	39.74		11.73	%		$	104,688		0.83	%		2.13	%		0.85	%		18.43	%
	$	36.01		1.85	%		$	96,198		0.89	%		1.82	%		0.89	%		15.47	%
	$	36.44		30.69	%		$	93,984		0.96	%		1.81	%		0.96	%		14.20	%
	$	29.86		2.35	%		$	78,589		0.97	%		1.55	%		0.97	%		17.75	%
	$	29.98		18.61	%		$	84,081		1.01	%		1.47	%		1.01	%		27.62	%
	$	90.19		20.73	%		$	1,183,974		1.06	%		0.19	%		1.06	%		7.04	%
	$	78.46		12.26	%		$	1,213,344		1.08	%		0.20	%		1.08	%		3.42	%
	$	69.89		(4.14	)%		$	1,156,577		1.11	%		0.10	%		1.11	%		6.33	%
	$	74.05		3.09	%		$	1,413,694		1.11	%		0.03	%		1.11	%		11.15	%
	$	73.31		39.24	%		$	1,161,329		1.15	%		(0.02	)%		1.15	%		9.18	%
	$	55.38		15.10	%		$	829,725		1.19	%		0.12	%		1.19	%		11.02	%
	$	9.79		1.36	%		$	33,879		0.43	%		0.95	%		0.53	%		59.57	%
	$	9.81		1.24	%		$	54,183		0.45	%		0.90	%		0.54	%		43.02	%
	$	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	%

181

Sterling Capital Funds

Financial Highlights, Institutional Shares

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

				Investment Activities								Distributions
	Net Asset Value, Beginning of Year			Net investment income(a)		Net realized/ unrealized gains (losses) on investments			Total from Investment Activities			Net investment income			Net realized gains on investments			Return of capital			Total Distributions
Sterling Capital Short Duration Bond Fund
Year Ended September 30, 2017		$	8.81		0.12		(0.01	)		0.11			(0.23	)		—			—			(0.23	)
Year Ended September 30, 2016		$	8.86		0.12		0.07			0.19			(0.24	)		—			—			(0.24	)
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	)
Sterling Capital Intermediate U.S. Government Fund
Year Ended September 30, 2017		$	10.25		0.18		(0.28	)		(0.10	)		(0.23	)		—			—			(0.23	)
Year Ended September 30, 2016		$	10.19		0.15		0.12			0.27			(0.21	)		—			—			(0.21	)
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	)
Sterling Capital Total Return Bond Fund
Year Ended September 30, 2017		$	10.82		0.25		(0.15	)		0.10			(0.32	)		—			—			(0.32	)
Year Ended September 30, 2016		$	10.54		0.28		0.35			0.63			(0.35	)		—			—			(0.35	)
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	)
Sterling Capital Corporate Fund
Year Ended September 30, 2017		$	10.36		0.32		(0.09	)		0.23			(0.31	)		(0.04	)		—			(0.35	)
Year Ended September 30, 2016		$	10.10		0.31		0.26			0.57			(0.31	)		—			—			(0.31	)
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	)
Sterling Capital Securitized Opportunities Fund
Year Ended September 30, 2017		$	10.10		0.23		(0.11	)		0.12			(0.27	)		—			—			(0.27	)
Year Ended September 30, 2016		$	9.98		0.22		0.16			0.38			(0.26	)		—			—			(0.26	)
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	)
Sterling Capital Kentucky Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	10.63		0.23		(0.23	)		—			(0.23	)		(0.14	)		—			(0.37	)
Year Ended September 30, 2016		$	10.61		0.27		0.14			0.41			(0.26	)		(0.13	)		—			(0.39	)
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	)
Sterling Capital Maryland Intermediate Tax-Free Fund
Year Ended September 30, 2017		$	11.33		0.23		(0.21	)		0.02			(0.23	)		(0.08	)		—			(0.31	)
Year Ended September 30, 2016		$	11.19		0.23		0.21			0.44			(0.23	)		(0.07	)		—			(0.30	)
Year Ended September 30, 2015		$	11.25		0.23		—	(b)		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	)

* 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) Amount is less than $0.005.

See accompanying Notes to the Financial Statements.

182

    XXUPDATEXXX

						Ratios/Supplementary Data
Net Asset Value, End of Year			Total Return			Net Assets, End of Year (000)			Ratio of net expenses to average net assets			Ratio of net investment income to average net assets			Ratio of expenses to average net assets*			Portfolio turnover rate**
	$	8.69		1.28	%		$	67,467		0.45	%		1.37	%		0.55	%		78.77	%
	$	8.81		2.24	%		$	77,374		0.49	%		1.34	%		0.56	%		54.68	%
	$	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	%
	$	9.92		(0.95	)%		$	16,412		0.62	%		1.80	%		0.66	%		32.44	%
	$	10.25		2.63	%		$	18,871		0.61	%		1.48	%		0.72	%		49.39	%
	$	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	%
	$	10.60		1.00	%		$	997,074		0.47	%		2.38	%		0.57	%		64.07	%
	$	10.82		6.10	%		$	709,103		0.49	%		2.67	%		0.59	%		65.47	%
	$	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	%
	$	10.24		2.32	%		$	29,471		0.63	%		3.09	%		0.63	%		78.79	%
	$	10.36		5.70	%		$	31,755		0.64	%		3.02	%		0.64	%		83.88	%
	$	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	%
	$	9.95		1.23	%		$	39,533		0.60	%		2.31	%		0.64	%		34.72	%
	$	10.10		3.86	%		$	46,364		0.61	%		2.16	%		0.65	%		43.63	%
	$	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	%
	$	10.26		0.05	%		$	8,026		0.68	%		2.26	%		0.71	%		17.93	%
	$	10.63		3.95	%		$	8,580		0.66	%		2.50	%		0.77	%		16.44	%
	$	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	%
	$	11.04		0.26	%		$	16,991		0.61	%		2.13	%		0.65	%		5.89	%
	$	11.33		3.97	%		$	24,621		0.61	%		2.00	%		0.71	%		14.36	%
	$	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	%

183

Sterling Capital Funds

Financial Highlights, Institutional Shares

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

		Investment Activities						Distributions
	Net Asset Value, Beginning of Year	Net investment income(a)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Distributions
Sterling Capital North Carolina Intermediate Tax-Free Fund
Year Ended September 30, 2017	$11.08		0.25		(0.26)		(0.01)		(0.25)		(0.04)		(0.29)
Year Ended September 30, 2016	$10.97		0.26		0.17		0.43		(0.26)		(0.06)		(0.32)
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)
Sterling Capital South Carolina Intermediate Tax-Free Fund
Year Ended September 30, 2017	$11.22		0.22		(0.19)		0.03		(0.22)		—		(0.22)
Year Ended September 30, 2016	$11.06		0.23		0.20		0.43		(0.23)		(0.04)		(0.27)
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)
Sterling Capital Virginia Intermediate Tax-Free Fund
Year Ended September 30, 2017	$12.13		0.26		(0.28)		(0.02)		(0.26)		(0.09)		(0.35)
Year Ended September 30, 2016	$11.98		0.27		0.19		0.46		(0.27)		(0.04)		(0.31)
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)
Sterling Capital West Virginia Intermediate Tax-Free Fund
Year Ended September 30, 2017	$10.28		0.23		(0.18)		0.05		(0.23)		(0.05)		(0.28)
Year Ended September 30, 2016	$10.15		0.24		0.17		0.41		(0.23)		(0.05)		(0.28)
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)
Sterling Capital Diversified Income Fund(b)
Year Ended September 30, 2017	$10.94		0.45		(0.04)		0.41		(0.43)		—		(0.43)
Year Ended September 30, 2016	$10.32		0.36		0.66		1.02		(0.40)		—		(0.40)
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)
Sterling Capital Strategic Allocation Balanced Fund(b)
Year Ended September 30, 2017	$10.90		0.19		1.08		1.27		(0.19)		—		(0.19)
Year Ended September 30, 2016	$10.39		0.20		0.54		0.74		(0.23)		—		(0.23)
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)
Sterling Capital Strategic Allocation Growth Fund(b)
Year Ended September 30, 2017	$10.56		0.15		1.36		1.51		(0.14)		—		(0.14)
Year Ended September 30, 2016	$10.01		0.14		0.61		0.75		(0.20)		—		(0.20)
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)

* During the periods certain fees were waived (See Note 5 in the Notes to the Financial Statements). If such reductions had not occurred, the ratios would have been as indicated.

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

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

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

See accompanying Notes to the Financial Statements.

184

    XXUPDATEXXX

						Ratios/Supplementary Data
Net Asset Value, End of Year			Total Return			Net Assets, End of Year (000)			Ratio of net expenses to average net assets			Ratio of net investment income to average net assets			Ratio of expenses to average net assets*			Portfolio turnover rate**
	$	10.78		(0.06	)%		$	140,484		0.54	%		2.34	%		0.58	%		25.92	%
	$	11.08		3.94	%		$	157,284		0.55	%		2.33	%		0.65	%		10.05	%
	$	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	%
	$	11.03		0.34	%		$	69,746		0.56	%		2.03	%		0.59	%		31.17	%
	$	11.22		3.87	%		$	72,722		0.57	%		2.03	%		0.67	%		2.69	%
	$	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	%
	$	11.76		(0.14	)%		$	70,780		0.55	%		2.18	%		0.59	%		23.25	%
	$	12.13		3.91	%		$	83,965		0.56	%		2.23	%		0.66	%		16.18	%
	$	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	%
	$	10.05		0.52	%		$	59,567		0.56	%		2.34	%		0.59	%		21.00	%
	$	10.28		4.18	%		$	64,199		0.57	%		2.30	%		0.67	%		11.31	%
	$	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	%
	$	10.92		3.88	%		$	7,962		0.50	%		4.11	%		0.50	%		43.86	%
	$	10.94		10.13	%		$	26,328		0.39	%		3.43	%		0.47	%		67.18	%
	$	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	%
	$	11.98		11.75	%		$	111		0.17	%		1.67	%		0.42	%		0.80	%
	$	10.90		7.24	%		$	80		0.16	%		1.89	%		0.40	%		5.19	%
	$	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	%
	$	11.93		14.48	%		$	692		0.19	%		1.34	%		0.44	%		1.92	%
	$	10.56		7.58	%		$	725		0.18	%		1.35	%		0.43	%		5.95	%
	$	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	%

185

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 Year	Net investment income (loss)(a)		Net realized/ unrealized gains (loss) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Distributions
Sterling Capital Mid Value Fund
Year Ended September 30, 2017	$16.25		—(b)		2.43		2.43		—		(0.53)		(0.53)
Year Ended September 30, 2016	$17.59		(0.02)		2.02		2.00		—		(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		—(b)		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)
Sterling Capital Behavioral Small Cap Value Equity Fund
Year Ended September 30, 2017	$15.14		0.18		3.08		3.26		(0.08)		—		(0.08)
Year Ended September 30, 2016	$14.00		0.14		1.15		1.29		(0.14)		(0.01)		(0.15)
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)
Sterling Capital Special Opportunities Fund
Year Ended September 30, 2017	$21.83		(0.04)		3.41		3.37		—		(0.41)		(0.41)
Year Ended September 30, 2016	$23.28		(0.05)		1.91		1.86		—		(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(d)		3.83		3.84		—		(0.95)		(0.95)
Sterling Capital Equity Income Fund
Year Ended September 30, 2017	$18.18		0.29		2.58		2.87		(0.33)		(0.02)		(0.35)
Year Ended September 30, 2016	$17.25		0.26		2.04		2.30		(0.27)		(1.10)		(1.37)
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)
Sterling Capital Total Return Bond Fund
Year Ended September 30, 2017	$10.77		0.20		(0.15)		0.05		(0.27)		—		(0.27)
Year Ended September 30, 2016	$10.49		0.23		0.35		0.58		(0.30)		—		(0.30)
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)

* 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) Amount is less than $0.005.

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

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

See accompanying Notes to the Financial Statements.

186

						Ratios/Supplementary Data
Net Asset Value, End of Year			Total Return (excludes sales charge)			Net Assets, End of Year (000)				Ratio of net expenses to average net assets			Ratio of net investment income loss to average net assets			Ratio of expenses to average net assets*			Portfolio turnover rate**
	$	18.15		15.18	%		$	2			1.39	%		(0.01	)%		1.39	%		24.83	%
	$	16.25		12.82	%		$	—	(c)		1.43	%		(0.12	)%		1.43	%		25.45	%
	$	17.59		(0.89	)%		$	—	(c)		1.44	%		0.08	%		1.44	%		30.61	%
	$	18.93		9.68	%		$	—	(c)		1.39	%		0.02	%		1.39	%		27.30	%
	$	18.47		30.65	%		$	—	(c)		1.42	%		(1.04	)%		1.42	%		34.03	%
	$	18.32		21.52	%		$	33			1.29	%		1.09	%		1.29	%		109.05	%
	$	15.14		9.22	%		$	—	(c)		1.38	%		0.99	%		1.38	%		120.42	%
	$	14.00		1.84	%		$	—	(c)		1.50	%		0.89	%		1.50	%		101.99	%
	$	14.28		7.01	%		$	—	(c)		1.45	%		0.65	%		1.45	%		68.50	%
	$	15.21		28.48	%		$	—	(c)		1.55	%		0.24	%		1.55	%		176.62	%
	$	24.79		15.66	%		$	266			1.36	%		(0.16	)%		1.36	%		18.92	%
	$	21.83		8.34	%		$	191			1.42	%		(0.25	)%		1.48	%		27.32	%
	$	23.28		3.51	%		$	46			1.47	%		(0.44	)%		1.47	%		26.98	%
	$	23.69		21.36	%		$	26			1.46	%		(0.41	)%		1.46	%		32.35	%
	$	21.72		21.28	%		$	450			1.49	%		0.04	%(d)		1.49	%		53.76	%
	$	20.70		15.96	%		$	3,694			1.28	%		1.52	%		1.28	%		16.93	%
	$	18.18		14.18	%		$	1,921			1.46	%		1.54	%		1.46	%		20.64	%
	$	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	%
	$	10.55		0.50	%		$	5			0.96	%		1.90	%		1.04	%		64.07	%
	$	10.77		5.59	%		$	5			0.99	%		2.20	%		1.07	%		65.47	%
	$	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	%

187

Sterling Capital Funds

Notes to Financial Statements

September 30, 2017

1. Organization:

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

The Trust offers shares of Sterling Capital Behavioral Large Cap Value Equity Fund, 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 SMID Opportunities Fund, Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund, Sterling Capital Stratton Small Cap Value 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, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund (referred to individually as a “Fund” and collectively as the “Funds”). Sterling Capital Kentucky Intermediate Tax-Free Fund, Sterling Capital Maryland Intermediate Tax-Free Fund, Sterling Capital North Carolina Intermediate Tax-Free Fund, Sterling Capital South Carolina Intermediate Tax-Free Fund, Sterling Capital Virginia Intermediate Tax-Free Fund and Sterling Capital West Virginia Intermediate Tax-Free Fund are referred to as the “Tax-Free Funds.” Sterling Capital Diversified Income Fund, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund are referred to as the “Funds of Funds.” The Funds, excluding the Funds of Funds, are referred to as the” Variable Net Asset Value Funds.” The Funds of Funds invest in underlying mutual funds as opposed to individual securities.

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

By owning shares of underlying investment companies, each of the Funds of Funds invests, to varying degrees, in securities of U.S. and non-U.S. companies, including small and medium sized companies, and in debt securities. Funds of Funds with exposure to underlying equity funds may include funds that invest in real estate related securities. In addition, underlying investment companies may invest in derivatives and may engage in long/short equity strategies and in option writing strategies. The Funds of Funds except for Sterling Capital Diversified Income Fund currently invest only in other Funds that are part of the Sterling Capital Funds group of investment companies (not including cash sweep vehicles). Financial information for those Sterling Capital Funds is included in this report and also is available at www.sec.gov. Financial information for the other underlying Funds is available at www.sec.gov.

The Funds are authorized to issue an unlimited amount of shares. As of September 30, 2017, the Funds discussed herein offered up to four classes of shares: Class A Shares, Class C Shares, Class R Shares and Institutional Shares. Class B Shares of the Funds closed effective May 26, 2017. Sterling Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund converted Class S Shares into Institutional Shares effective February 1, 2013. Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund, Sterling Capital Special Opportunities Fund, Sterling Capital Equity Income Fund and Sterling Capital Total Return Bond Fund offer Class R Shares. Class A Shares of the Variable Net Asset Value Funds and Funds of Funds, excluding Sterling Capital Ultra Short Bond Fund, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Corporate Fund, Sterling Capital Securitized Opportunities Fund, and the Tax-Free Funds, have a maximum sales charge of 5.75% as a percentage of original purchase price. Class A Shares of Sterling Capital Ultra Short Bond Fund have a maximum sales charge of 0.50%, and Class A Shares of Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Corporate Fund, Sterling Capital Securitized Opportunities Fund, and the Tax-Free Funds have a maximum sales charge of 2.00% as a percentage of the original purchase price. Purchases of $1 million or more of Class A Shares are not subject to a front-end sales charge but will be subject to a Contingent Deferred Sales Charge (“CDSC”) of 1.00% of the purchase price if redeemed within two years after purchase for all Funds except the Tax-Free Funds, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Corporate Fund and Sterling Capital Securitized Opportunities Fund. With respect to the Tax-Free Funds, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling 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

188

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

based on the lower of the price paid for the shares or their net asset value at the time of redemption. 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 of the Variable Net Asset Value Funds in securities traded on a national securities exchange or in the 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, absent such a price, by reference to the latest available bid prices 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.

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)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the year ended September 30, 2017, there were no significant changes to the valuation policies and procedures.

189

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

The summary of inputs used to determine the fair value of each Fund’s investments as of September 30, 2017 is as follows:

					Level 2–				Level 3–
	Level 1–				Other Significant				Significant
	Quoted Prices				Observable Inputs				Unobservable Inputs			Total
Assets:
Investments in Securities
Sterling Capital Behavioral Large Cap Value Equity Fund		$	306,370,483(a	)		$	—			$	—		$	306,370,483
Sterling Capital Mid Value Fund			669,787,738(a	)			—				—			669,787,738
Sterling Capital Behavioral Small Cap Value Equity Fund			217,350,744(a	)			—				—			217,350,744
Sterling Capital Special Opportunities Fund			1,146,365,325(a	)			—				—			1,146,365,325
Sterling Capital Equity Income Fund			1,564,851,719(a	)			—				—			1,564,851,719
Sterling Capital Long/Short Equity Fund			33,804,117(a	)			—				—			33,804,117
Sterling Capital Behavioral International Equity Fund			81,977,921(a	)							—			81,977,921
Sterling Capital SMID Opportunities Fund			9,729,949(a	)			—				—			9,729,949
Sterling Capital Stratton Mid Cap Value Fund			66,132,966(a	)			—				—			66,132,966
Sterling Capital Stratton Real Estate Fund			96,191,590(a	)			—				—			96,191,590
Sterling Capital Stratton Small Cap Value Fund			1,184,473,344(a	)			—				—			1,184,473,344
Sterling Capital Ultra Short Bond Fund			735,696(b	)			37,611,504(a	)			—			38,347,200
Sterling Capital Short Duration Bond Fund			668,930(b	)			74,516,637(a	)			—			75,185,567
Sterling Capital Intermediate U.S. Government Fund			690,860(b	)			21,614,378(a	)			—			22,305,238
Sterling Capital Total Return Bond Fund			21,831,671(b	)			1,060,312,787(a	)			—			1,082,144,458
Sterling Capital Corporate Fund			425,863(b	)			29,541,749(a	)			—			29,967,612
Sterling Capital Securitized Opportunities Fund			21,957(b	)			39,606,452(a	)			—			39,628,409
Sterling Capital Kentucky Intermediate Tax-Free Fund			28,126(b	)			11,931,186(a	)			—			11,959,312
Sterling Capital Maryland Intermediate Tax-Free Fund			198,258(b	)			23,019,790(a	)			—			23,218,048
Sterling Capital North Carolina Intermediate Tax-Free Fund			3,649,674(b	)			184,639,977(a	)			—			188,289,651
Sterling Capital South Carolina Intermediate Tax-Free Fund			865,063(b	)			85,217,768(a	)			—			86,082,831
Sterling Capital Virginia Intermediate Tax-Free Fund			737,306(b	)			97,706,416(a	)			—			98,443,722
Sterling Capital West Virginia Intermediate Tax-Free Fund			1,145,368(b	)			88,207,833(a	)			—			89,353,201
Sterling Capital Diversified Income Fund			23,948,456(a	)			—				—			23,948,456
Sterling Capital Strategic Allocation Balanced Fund			31,060,610(a	)			—				—			31,060,610
Sterling Capital Strategic Allocation Growth Fund			23,928,386(a	)			—				—			23,928,386
Liabilities:
Investments Sold Short
Sterling Capital Long/Short Equity Fund		$	8,422,685(a	)			—				—		$	8,422,685
Other Financial Instruments- Written Options (Equity Risk)
Sterling Capital Special Opportunities Fund (c)			1,013,750				—				—			1,013,750
Sterling Capital Equity Income Fund (c)			142,500				—				—			142,500

(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 year ended September 30, 2017, Sterling Capital Behavioral International Equity Fund had foreign common stock that was transferred from Level 2 to Level 1 due to the application at September 30, 2016 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 $28,514,728 or 40.53% of net assets as of September 30, 2016. 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 year ended September 30, 2017 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.

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

190

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

agreements; tender option purchase agreements; and third party insurance (i.e., AMBAC).

Derivative Instruments Categorized by Risk Exposure — The Funds’ derivative contracts held at September 30, 2017, are not accounted for as hedging instruments under U.S. GAAP. The following is a summary of the location of the derivative instruments held by the Funds on the Statements of Assets and Liabilities and the category of primary risk exposure as of September 30, 2017:

		Sterling Capital			Sterling Capital
		Special			Equity
	Statements of Assets	Opportunities			Income
Fair Values of Derivative Instruments	and Liabilities Location	Fund			Fund
Liabilities
Equity contracts	Call options written		$	1,013,750		$	142,500

The effect of derivative financial instruments on the Statements of Operations for the year ended September 30, 2017:

	Sterling Capital
	Special			Sterling Capital			Sterling Capital
	Opportunities			Equity			Long/Short
Net Realized Gain (Loss)	Fund			Income Fund			Equity Fund
Options (equity contracts)*		$	983,341		$	1,233,367		$	(353,687	)

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

	Sterling Capital
	Special			Sterling Capital				Sterling Capital
	Opportunities			Equity				Long/Short
Net Change in Unrealized Appreciation (Depreciation)	Fund			Income Fund				Equity Fund
Written options (equity contracts)		$	44,115		$	(70,893	)		$	(2,898	)

For the fiscal year ended September 30, 2017, the average quarterly balance of derivative financial instruments were as follows:

	Sterling Capital
	Special			Sterling Capital			Sterling Capital
	Opportunities			Equity			Long/Short
	Fund			Income Fund			Equity Fund
Options (Equity Risk)
Average number of written option contracts			2,663			2,239			109
Average premium of written option contracts		$	340,727		$	281,759		$	11,752
Average number of purchased option contracts			—			—			408
Average premium of purchased option contracts			—			—		$	53,097

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 Fund, Sterling Capital Securitized Opportunities Fund, and the Tax-Free Funds. Dividends from net investment income are declared and paid monthly for Sterling Capital Diversified Income Fund. Dividends from net investment income are declared and paid quarterly for Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund, Sterling Capital Stratton Small Cap Value Fund, 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 SMID Opportunities Fund, Sterling Capital Strategic Allocation Balanced Fund, and Sterling Capital Strategic Allocation Growth Fund 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.

191

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

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

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

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

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

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

Options Contracts — Sterling Capital Special Opportunities Fund, 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).

192

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

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.

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 a Service fee 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

193

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase securities, and any subsequent fluctuation in their value, is taken into account when determining the net asset value of the Funds commencing with the date the Funds agree to purchase the securities. The Funds do not accrue interest or dividends on “when-issued” securities until the underlying securities are received.

3. Purchases and Sales of Securities:

Purchases and sales of securities (excluding U.S. government securities and securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2017 were as follows:

	Purchases		Sales
Sterling Capital Behavioral Large Cap Value Equity Fund	$	414,194,975	$	425,579,787
Sterling Capital Mid Value Fund		155,534,344		164,542,522
Sterling Capital Behavioral Small Cap Value Equity Fund		228,887,469		216,253,701
Sterling Capital Special Opportunities Fund		204,506,910		348,714,727
Sterling Capital Equity Income Fund		265,500,314		527,611,963
Sterling Capital Long/Short Equity Fund		92,706,093		102,904,079
Sterling Capital Behavioral International Equity Fund		67,142,331		68,289,323
Sterling Capital SMID Opportunities Fund		10,330,764		2,717,425
Sterling Capital Stratton Mid Cap Value Fund		7,514,043		16,205,360
Sterling Capital Stratton Real Estate Fund		12,757,453		18,410,726
Sterling Capital Stratton Small Cap Value Fund		83,303,864		278,864,364
Sterling Capital Ultra Short Bond Fund		24,502,371		23,454,447
Sterling Capital Short Duration Bond Fund		46,723,667		43,472,976
Sterling Capital Intermediate U.S. Government Fund		741,471		451,168
Sterling Capital Total Return Bond Fund		503,861,777		267,768,986
Sterling Capital Corporate Fund		18,906,914		20,734,013
Sterling Capital Securitized Opportunities Fund		4,707,445		3,018,430
Sterling Capital Kentucky Intermediate Tax-Free Fund		2,517,914		2,139,127
Sterling Capital Maryland Intermediate Tax-Free Fund		1,584,151		8,594,965
Sterling Capital North Carolina Intermediate Tax-Free Fund		51,460,662		69,568,468
Sterling Capital South Carolina Intermediate Tax-Free Fund		27,132,662		28,816,523
Sterling Capital Virginia Intermediate Tax-Free Fund		24,282,130		38,565,845
Sterling Capital West Virginia Intermediate Tax-Free Fund		19,650,767		27,661,668
Sterling Capital Diversified Income Fund		14,158,260		32,348,450
Sterling Capital Strategic Allocation Balanced Fund		249,753		5,066,932
Sterling Capital Strategic Allocation Growth Fund		440,651		2,652,000

Purchases and sales of U.S. government securities (excluding securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2017 were as follows:

	Purchases		Sales
Sterling Capital Long/Short Equity Fund	$	528,719	$	790,185
Sterling Capital Short Duration Bond Fund		17,762,512		20,001,217
Sterling Capital Intermediate U.S. Government Fund		6,587,125		7,984,327
Sterling Capital Total Return Bond Fund		453,742,705		305,706,562
Sterling Capital Corporate Fund		4,591,236		4,588,845
Sterling Capital Securitized Opportunities Fund		10,136,731		11,623,448

4. Investments in Affiliated Issuers:

A summary of the Funds’ transactions in the shares of affiliated issuers during the fiscal year ended September 30, 2017 is as follows:

194

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

																			Change in
															Distributions				Unrealized
												Dividend			and Net Realized				Appreciation/
	Shares Held at						Shares Held at		Value at			Income			Gain (Loss)				Depreciation
	September 30,		Shares		Shares		September 30,		September 30,			October 1, 2016-			October 1, 2016-				October 1, 2016-
	2016		Purchased		Sold		2017		2017			September 30, 2017			September 30, 2017				September 30, 2017
Sterling Capital Strategic Allocation Balanced Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		978,903		—		220,463		758,440		$	8,919,253		$	149,209		$	60,243			$	1,638,315
Sterling Capital Equity Income Fund, Institutional Shares		249,903		267		40,796		209,374			4,373,817			93,334			87,829				487,294
Sterling Capital Long/Short Equity Fund, Institutional Shares		394,484		—		57,072		337,412			3,154,798			—			(56,134	)			291,698
Sterling Capital Special Opportunities Fund, Institutional Shares		198,428		4,833		37,374		165,887		��	4,254,991			2,884			197,265				473,657
Sterling Capital Total Return Bond Fund, Institutional Shares		1,002,672		12,797		57,284		958,185			10,156,763			314,355			(23,345	)			(198,749	)
Total Affiliates		2,824,390		17,897		412,989		2,429,298		$	30,859,622		$	559,782		$	265,858			$	2,692,215
Sterling Capital Strategic Allocation Growth Fund
Sterling Capital Behavioral International Equity Fund, Institutional Shares		873,758		—		131,162		742,596		$	8,732,934		$	134,517		$	3,380			$	1,577,835
Sterling Capital Equity Income Fund, Institutional Shares		219,741		251		20,693		199,299			4,163,361			86,649			47,606				484,705
Sterling Capital Long/Short Equity Fund, Institutional Shares		337,422		9,566		33,086		313,902			2,934,988			—			(32,229	)			246,393
Sterling Capital Special Opportunities Fund, Institutional Shares		172,910		8,243		22,405		158,748			4,071,874			2,575			131,778				475,070
Sterling Capital Total Return Bond Fund, Institutional Shares		365,718		15,737		10,483		370,972			3,932,304			119,652			(4,994	)			(74,772	)
Total Affiliates		1,969,549		33,797		217,829		1,785,517		$	23,835,461		$	343,393		$	145,541			$	2,709,231

5. Related Party Transactions:

Under the terms of the investment advisory agreement, Sterling Capital Management LLC (“Sterling Capital” or the “Advisor”) is entitled to receive fees based on a percentage of the average daily net assets of the Funds. These fees are accrued daily and payable on a monthly basis and are reflected on the Statements of Operations as “Investment advisory fees.” Sterling Capital’s waived investment advisory fees are included on the Statements of Operations as “Less expenses waived by the Investment Advisor.” Information regarding these transactions is as follows for the fiscal year ended September 30, 2017:

	Prior to February 1, 2017						Effective February 1, 2017
				Fee Rate after						Fee Rate after
	Contractual			Contractual			Contractual			Contractual
	Fee Rate			Waivers			Fee Rate			Waivers
Sterling Capital Behavioral Large Cap Value Equity Fund		0.45	%		0.45	%(1)		0.45	%		0.45	%
Sterling Capital Mid Value Fund		0.70	%		0.70	%		0.70	%		0.70	%
Sterling Capital Behavioral Small Cap Value Equity Fund		0.75	%		0.60	%(1)		0.60	%		0.60	%
Sterling Capital Special Opportunities Fund		0.65	%		0.65	%(1)		0.65	%		0.65	%
Sterling Capital Equity Income Fund		0.55	%		0.55	%		0.55	%		0.55	%
Sterling Capital Long/Short Equity Fund		1.50	%		1.50	%(3)		1.50	%		1.50	%

195

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

	Prior to February 1, 2017						Effective February 1, 2017
				Fee Rate after						Fee Rate after
	Contractual			Contractual			Contractual			Contractual
	Fee Rate			Waivers			Fee Rate			Waivers
Sterling Capital Behavioral International Equity Fund		0.80	%		0.40	%(1),(3)		0.60	%		0.40	%(2)
Sterling Capital SMID Opportunities Fund		0.70	%		0.54	%(4)		0.70	%		0.54	%(2)
Sterling Capital Stratton Mid Cap Value Fund		0.70	%		0.70	%		0.70	%		0.70	%
Sterling Capital Stratton Real Estate Fund		0.58	%		0.58	%(3)		0.58	%		0.58	%
Sterling Capital Stratton Small Cap Value Fund		0.85	%		0.85	%		0.85	%		0.85	%
Sterling Capital Ultra Short Bond Fund		0.20	%		0.10	%(1),(3)		0.20	%		0.10	%(2)
Sterling Capital Short Duration Bond Fund		0.30	%		0.20	%(1)		0.30	%		0.20	%(2)
Sterling Capital Intermediate U.S. Government Fund		0.43	%		0.32	%(1),(3)		0.32	%		0.32	%
Sterling Capital Total Return Bond Fund		0.37	%		0.27	%(1)		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),(3)		0.35	%		0.35	%
Sterling Capital Maryland Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.35	%		0.35	%
Sterling Capital North Carolina Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.35	%		0.35	%
Sterling Capital South Carolina Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.35	%		0.35	%
Sterling Capital Virginia Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.35	%		0.35	%
Sterling Capital West Virginia Intermediate Tax-Free Fund		0.45	%		0.35	%(1)		0.35	%		0.35	%
Sterling Capital Diversified Income Fund		0.25	%		0.25	%		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, 2016 through January 31, 2017.

⁽²⁾  Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2017 through January 31, 2018.

⁽³⁾  For all or a portion of the fiscal year ended September 30, 2016, Sterling Capital voluntarily waived and/or reimbursed certain expenses of the Funds. Voluntary waivers and reimbursements of expenses may be discontinued at any time.

⁽⁴⁾  Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from October 3, 2016 through January 31, 2018.

Effective June 1, 2016, for the Sterling Capital Behavioral International Equity Fund, Sterling Capital has contractually agreed to waive its fees, pay Fund operating expenses, and/or reimburse fees or expenses, in order to limit expenses, excluding interest, taxes, acquired funds fees and extraordinary expenses. The expense limitations are 1.00%, 1.75% and 0.75% of the average daily net assets of the Fund’s Class A Shares, Class C Shares and Institutional Shares, respectively. The expense limitations are for the period June 1, 2016 through January 31, 2018.

Effective October 3, 2016, for the Sterling Capital SMID Opportunities Fund, Sterling Capital has contractually agreed to waive its fees, pay Fund operating expenses, and/or reimburse fees or expenses, in order to limit expenses, excluding interest, taxes, acquired fund fees and extraordinary expenses. The expense limitations are 1.04%, 1.79%, and 0.79% of the average daily net assets of the Fund’s Class A Shares, Class C Shares and Institutional Shares, respectively. The expense limitations are for the period October 3, 2016 through January 31, 2018.

Sterling Capital has contractually agreed to limit the expenses of the shares based on average daily net assets of the following funds from November 16, 2015, the date of commencement of operations, through January 31, 2017 as follows:

	Class A			Class C			Institutional
Sterling Capital Stratton Mid Cap Value		1.30	%		2.05	%		1.05	%
Sterling Capital Stratton Real Estate Fund		1.21	%		1.96	%		0.96	%
Sterling Capital Stratton Small Cap Value Fund		1.36	%		2.11	%		1.11	%

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, and Emancipation Capital, LLC served as the sub-advisors to the Sterling Capital Long/Short Equity Fund, subject to the general supervision of the Funds’ Board of Trustees and Sterling Capital. Caerus Investors, LLC no longer serves as a sub-advisor to the Sterling Capital Long/Short Equity Fund. 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 Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund) pay their portion of a fee

196

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

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. Expenses incurred are reflected on the Statements of Operations as “Administration fees.” Pursuant to a sub-administration agreement with Sterling Capital, The Bank of New York Mellon (“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, The Bank of New York Mellon is entitled to a fee payable by Sterling Capital. The Bank of New York Mellon also serves as the Funds’ fund accountant and receives compensation by the Funds for these services. Expenses incurred are reflected on the Statements of Operations as “Fund accounting fees.”

BNY Mellon Investment Servicing (US) Inc. serves as the Funds’ transfer agent and receives compensation by the Funds for these services. Expenses incurred are reflected on the Statements of Operations as “Transfer agent fees.”

Sterling Capital’s Chief Compliance Officer (“CCO”) serves as the Funds’ CCO. The CCO’s compensation is reviewed and approved by the Funds’ Board and paid by Sterling Capital. However, the Funds reimburse Sterling Capital for their allocable portion of the CCO’s 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 CCO.

For the year ended September 30, 2017, the Funds paid $61,152 in brokerage fees to BB&T Securities LLC on the execution of purchases and sales of the Funds’ portfolio investments.

The Funds have adopted a Distribution and Shareholder Services Plan (the “Plan”) in accordance with Rule 12b-1 under the 1940 Act. Sterling Capital Distributors, LLC (“the Distributor”) serves as distributor to the Funds pursuant to an underwriting agreement. The Plan provides for payments to the Distributor of up to 0.25%, 1.00%, 1.00% and 0.50% of the average daily net assets of the Class A Shares, Class B Shares (through May 26, 2017), Class C Shares, and Class R Shares, respectively. The Distributor is entitled to receive commissions on sales of shares of the Variable Net Asset Value Funds. For the year ended September 30, 2017, the Distributor received $313,144 from commissions earned on sales of shares of the Variable Net Asset Value Funds. Commissions paid to affiliated broker-dealers during the year ended September 30, 2017 were $101,992. 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 payments 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 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 $80,000 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.

197

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

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 uncommitted amount of $100,000,000 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 27, 2018. During the year ended September 30, 2017, each of the following Funds utilized its line of credit:

	Average			Average			Number of		Interest Expense			Maximum Amount
	Interest Rate			Loan Balance			Days Outstanding		Incurred			Borrowed
Sterling Capital Special Opportunities Fund		1.75	%		$	3,713,000		3		$	541		$	3,713,000
Sterling Capital Long/Short Equity Fund		1.73	%			508,917		12			297			1,344,000
Sterling Capital Behavioral International Equity Fund		1.67	%			71,167		6			20			85,000
Sterling Capital Stratton Real Estate Fund		1.50	%			1,017,222		9			381			1,458,000
Sterling Capital Maryland Intermediate Tax-Free Fund		1.50	%			45,000		1			2			45,000

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 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.

198

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

At September 30, 2017, the following Funds had net capital loss carryforwards available to offset future net capital gains, if any, to the extent provided by the Code and the Treasury regulations:

	Amount With No Expiration*
	Short-term		Long-term
	Losses		Losses		Amount		Expires
Sterling Capital Long/Short Equity Fund		10,953,172		9,066,743		—		—
Sterling Capital Ultra Short Bond Fund		151,146		617,878		—		—
Sterling Capital Short Duration Bond Fund		1,389,086		5,670,250		—		—
Sterling Capital Short Duration Bond Fund		—		—		385,647		2019
Sterling Capital Intermediate U.S. Government Fund		245,182		195,626		—		—
Sterling Capital Intermediate U.S. Government Fund		—		—		37,850		2019
Sterling Capital Total Return Bond Fund		1,012,447		4,236,420		—		—
Sterling Capital Securitized Opportunities Fund		1,364,379		295,776		—		—
Sterling Capital Diversified Income Fund		1,170,468		—		—		—
Sterling Capital Diversified Income Fund		—		—		5,021,746		2018
Sterling Capital Strategic Allocation Balanced Fund		—		—		74,360		2018
Sterling Capital Strategic Allocation Balanced Fund		—		—		3,964,763		2019
Sterling Capital Strategic Allocation Growth Fund		—		—		1,839,918		2018
Sterling Capital Strategic Allocation Growth Fund		—		—		4,640,596		2019

* Post-2010 Capital Losses: Must be utilized prior to losses subject to expiration.

Capital loss carryforwards utilized in the current year were as follows:

	Utilized
	Capital Loss
	Carryforwards
Sterling Capital Behavioral Large Cap Value Equity Fund		$	17,072,758
Sterling Capital Mid Value Fund			3,177,091
Sterling Capital Behavioral Small Cap Value Equity Fund			2,202,715
Sterling Capital Long/Short Equity Fund			1,046,484
Sterling Capital Behavioral International Value Equity Fund			1,208,495
Sterling Capital Stratton Mid Cap Value Fund			895,187
Sterling Capital Total Return Bond Fund			1,614,780
Sterling Capital Diversified Income Fund			183,961
Sterling Capital Strategic Allocation Balanced Fund			262,779
Sterling Capital Strategic Allocation Growth Fund			139,433

Sterling Capital Behavioral Small Cap Value Equity Fund and Sterling Capital Mid Value Fund capital losses acquired in the reorganization are subject to limitations under Internal Revenue Code Sections 382-384.

The character of income and gains distributed is determined in accordance with the Code and the Treasury regulations, which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclass of net operating losses, disposition of market discount and market premium bonds, paydown gains and losses, mortgage dollar roll gains and losses, short dividend expense, the character of distributions and investments in RICs, partnerships, distributions in connection with fund share redemptions, royalty trusts and PFICs), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. These reclassifications have no impact on net assets or net asset values per share.

199

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

As of September 30, 2017, these reclassifications were as follows:

					Increase/				Increase/
	Increase/				(Decrease)				(Decrease)
	(Decrease)				Net Investment				Realized
	Paid-in-Capital				Income (Loss)				Gain (Loss)
Sterling Capital Behavioral Large Cap Value Equity Fund		$	14,365			$	519,115			$	(533,480	)
Sterling Capital Mid Value Fund			1,824,246				(467,029	)			(1,357,217	)
Sterling Capital Behavioral Small Cap Value Equity Fund			450,554				(43,187	)			(407,367	)
Sterling Capital Special Opportunities Fund			9,978,929				(101,350	)			(9,877,579	)
Sterling Capital Equity Income Fund			17,552,852				(25,875	)			(17,526,977	)
Sterling Capital Long/Short Equity Fund			(450,369	)			334,620				115,749
Sterling Capital Behavioral International Equity Fund			28,215				374,901				(403,116	)
Sterling Capital SMID Opportunities Fund			16,390				8,495				(24,885	)
Sterling Capital Stratton Mid Cap Value Fund			80,655				(5,940	)			(74,715	)
Sterling Capital Stratton Real Estate Fund			(75,777	)			(678,010	)			753,787
Sterling Capital Stratton Small Cap Value Fund			10,894,999				(231,888	)			(10,663,111	)
Sterling Capital Ultra Short Bond Fund			—				278,038				(278,038	)
Sterling Capital Short Duration Bond Fund			—				1,042,386				(1,042,386	)
Sterling Capital Intermediate U.S. Government Fund			(6,852,937	)			152,596				6,700,341
Sterling Capital Total Return Bond Fund			—				6,559,765				(6,559,765	)
Sterling Capital Corporate Fund			18,601				(3,140	)			(15,461	)
Sterling Capital Securitized Opportunities Fund			—				173,035				(173,035	)
Sterling Capital Kentucky Intermediate Tax-Free Fund			—				—				—
Sterling Capital Maryland Intermediate Tax-Free Fund			—				13,020				(13,020	)
Sterling Capital North Carolina Intermediate Tax-Free Fund			—				(2,013	)			2,013
Sterling Capital South Carolina Intermediate Tax-Free Fund			—				(34	)			34
Sterling Capital Virginia Intermediate Tax-Free Fund			—				(6	)			6
Sterling Capital West Virginia Intermediate Tax-Free Fund			—				(2,903	)			2,903
Sterling Capital Diversified Income Fund			126,827				(60,008	)			(66,819	)
Sterling Capital Strategic Allocation Balanced Fund			—				6,610				(6,610	)
Sterling Capital Strategic Allocation Growth Fund			—				6,124				(6,124	)

The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2017 was as follows:

	Distributions paid from
				Net												Total
	Ordinary			Long-Term			Total Taxable			Return			Tax Exempt			Distributions
	Income			Gains			Distributions			Of Capital			Distributions			Paid*
Sterling Capital Behavioral Large Cap Value Equity Fund		$	5,098,249		$	14,365		$	5,112,614		$	—		$	—		$	5,112,614
Sterling Capital Mid Value Fund			859,274			19,688,320			20,547,594			—			—			20,547,594
Sterling Capital Behavioral Small Cap Value Equity Fund			1,165,485			377,136			1,542,621			—			—			1,542,621
Sterling Capital Special Opportunities Fund			3,161,157			28,041,508			31,202,665			—			—			31,202,665
Sterling Capital Equity Income Fund			31,049,429			19,540,561			50,589,990			—			—			50,589,990
Sterling Capital Behavioral International Equity Fund			1,203,608			437			1,204,045			—			—			1,204,045
Sterling Capital SMID Opportunities Fund			22,172			146			22,318			—			—			22,318
Sterling Capital Stratton Mid Cap Value Fund			91,752			368,607			460,359			—			—			460,359
Sterling Capital Stratton Real Estate Value Fund			2,833,402			4,765,485			7,598,887			—			—			7,598,887
Sterling Capital Stratton Small Cap Value Fund			2,313,979			72,021,026			74,335,005			—			—			74,335,005
Sterling Capital Ultra Short Bond Fund			704,198			—			704,198			—			—			704,198
Sterling Capital Short Duration Bond Fund			2,151,401			—			2,151,401			—			21,626			2,173,027
Sterling Capital Intermediate U.S. Government Fund			546,204			—			546,204			—			—			546,204
Sterling Capital Total Return Bond Fund			27,102,666			—			27,102,666			—			32,682			27,135,348
Sterling Capital Corporate Fund			1,019,559			50,514			1,070,073			—			—			1,070,073
Sterling Capital Securitized Opportunities Fund			1,151,304			—			1,151,304			—			—			1,151,304
Sterling Capital Kentucky Intermediate Tax-Free Fund			—			164,128			164,128			—			272,452			436,580
Sterling Capital Maryland Intermediate Tax-Free Fund			13,521			215,670			229,191			—			557,772			786,963
Sterling Capital North Carolina Intermediate Tax-Free Fund			11,347			699,697			711,044			—			4,582,294			5,293,338
Sterling Capital South Carolina Intermediate Tax-Free Fund			—			9,915			9,915			—			1,766,112			1,776,027
Sterling Capital Virginia Intermediate Tax-Free Fund			—			870,685			870,685			—			2,254,349			3,125,034
Sterling Capital West Virginia Intermediate Tax-Free Fund			—			452,742			452,742			—			2,145,342			2,598,084

200

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

	Distributions paid from
			Net								Total
	Ordinary		Long-Term		Total Taxable		Return		Tax Exempt		Distributions
	Income		Gains		Distributions		Of Capital		Distributions		Paid*
Sterling Capital Diversified Income Fund		1,282,181		—		1,282,181		—		—		1,282,181
Sterling Capital Strategic Allocation Balanced Fund		438,670		—		438,670		—		—		438,670
Sterling Capital Strategic Allocation Growth Fund		247,677		—		247,677		—		—		247,677

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

* The Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as part of the dividends.

The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2016 was as follows:

	Distributions paid from
				Net													Total
	Ordinary			Long-Term			Total Taxable			Return				Tax Exempt			Distributions
	Income			Gains			Distributions			Of Capital				Distributions			Paid*
Sterling Capital Behavioral Large Cap Value Equity Fund		$	4,924,451		$	—		$	4,924,451		$	—			$	—		$	4,924,451
Sterling Capital Mid Value Fund			2,468,270			109,033,172			111,501,442			—				—			111,501,442
Sterling Capital Behavioral Small Cap Value Equity Fund			2,092,669			59,855			2,152,524			—				—			2,152,524
Sterling Capital Special Opportunities Fund			4,076,621			133,396,725			137,473,346			—				—			137,473,346
Sterling Capital Equity Income Fund			29,228,593			96,372,920			125,601,513			—				—			125,601,513
Sterling Capital Long/Short Equity Fund			1,790,646			4,670			1,795,316			—				—			1,795,316
Sterling Capital Behavioral International Equity Fund			435,802			—			435,802			—				—			435,802
Sterling Capital Stratton Real Estate Fund			1,309,272			298,118			1,607,390			—	��			—			1,607,390
Sterling Capital Stratton Small Cap Value Fund			—			5,392,734			5,392,734			—				—			5,392,734
Sterling Capital Ultra Short Bond Fund			796,850			—			796,850			—				—			796,850
Sterling Capital Short Duration Bond Fund			2,316,309			—			2,316,309			—				—			2,316,309
Sterling Capital Intermediate U.S. Government Fund			559,195			—			559,195			—				—			559,195
Sterling Capital Total Return Bond Fund			22,801,104			—			22,801,104			—				—			22,801,104
Sterling Capital Corporate Fund			1,590,678			—			1,590,678			—				—			1,590,678
Sterling Capital Securitized Opportunities Fund			1,237,624			—			1,237,624			—				—			1,237,624
Sterling Capital Kentucky Intermediate Tax-Free Fund			883			178,259			179,142			—				317,274			496,416
Sterling Capital Maryland Intermediate Tax-Free Fund			26			258,137			258,163			—				673,175			931,338
Sterling Capital North Carolina Intermediate Tax-Free Fund			43,681			1,081,034			1,124,715			—				4,557,365			5,682,080
Sterling Capital South Carolina Intermediate Tax-Free Fund			99			250,001			250,100			—				1,634,846			1,884,946
Sterling Capital Virginia Intermediate Tax-Free Fund			—			463,835			463,835			—				2,565,284			3,029,119
Sterling Capital West Virginia Intermediate Tax-Free Fund			217			550,783			551,000			—				2,215,922			2,766,922
Sterling Capital Diversified Income Fund			1,577,980			—			1,577,980			—				—			1,577,980
Sterling Capital Strategic Allocation Balanced Fund			660,133			—			660,133			—				—			660,133
Sterling Capital Strategic Allocation Growth Fund			413,129			—			413,129			—				—			413,129

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

As of September 30, 2017, the components of accumulated earnings (deficit) on a tax basis were as follows:

	Undistributed																				Total
	Ordinary			Undistributed										Accumulated				Unrealized			Accumulated
	Income/Tax			Long Term			Accumulated			Distributions				Capital and				Appreciation			Earnings
	Exempt Income			Capital Gains			Earnings			Payable				Other Losses				(Depreciation)*			(Deficit)
Sterling Capital Behavioral Large Cap Value Equity Fund		$	1,711,664		$	23,878		$	1,735,542		$	—			$	—			$	48,926,348		$	50,661,890
Sterling Capital Mid Value Fund			—			30,483,830			30,483,830			—				—				121,173,129			151,656,959
Sterling Capital Behavioral Small Cap Value Equity Fund			1,128,976			7,670,333			8,799,309			—				—				46,823,049			55,622,358
Sterling Capital Special Opportunities Fund			6,709,540			75,532,913			82,242,453			—				—				331,527,167			413,769,620
Sterling Capital Equity Income Fund			21,767			116,157,594			116,179,361			(33	)			—				462,276,956			578,456,284
Sterling Capital Long/Short Equity Fund			—			—			—			—				(20,517,359	)			2,074,329			(18,443,030	)

201

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

	Undistributed															Total
	Ordinary		Undistributed							Accumulated			Unrealized			Accumulated
	Income/Tax		Long Term		Accumulated		Distributions			Capital and			Appreciation			Earnings
	Exempt Income		Capital Gains		Earnings		Payable			Other Losses			(Depreciation)*			(Deficit)
Sterling Capital Behavioral International Equity Fund		2,730,075		65,359		2,795,434		—			—			12,858,248			15,653,682
Sterling Capital SMID Opportunities Fund		140,824		1,320		142,144		—			—			1,076,917			1,219,061
Sterling Capital Stratton Mid Cap Value Fund		196,283		1,574,044		1,770,327		—			—			24,474,955			26,245,282
Sterling Capital Stratton Real Estate Fund		—		3,132,553		3,132,553		(192	)		—			31,673,459			34,805,820
Sterling Capital Stratton Small Cap Value Fund		1,672,230		71,489,899		73,162,129		—			—			677,484,898			750,647,027
Sterling Capital Ultra Short Bond Fund		1,943		—		1,943		(3,627	)		(1,000,530	)		(58,039	)		(1,060,253	)
Sterling Capital Short Duration Bond Fund		88,988		—		88,988		(93,677	)		(7,444,984	)		(497,335	)		(7,947,008	)
Sterling Capital Intermediate U.S. Government Fund		279,198		—		279,198		(26,266	)		(478,658	)		(134,323	)		(360,049	)
Sterling Capital Total Return Bond Fund		1,884,471		—		1,884,471		(931,679	)		(11,107,846	)		4,540,959			(5,614,095	)
Sterling Capital Corporate Fund		—		139,884		139,884		(136	)		—			531,935			671,683
Sterling Capital Securitized Opportunities Fund		2,487		—		2,487		(2,406	)		(1,798,408	)		444,167			(1,354,160	)
Sterling Capital Kentucky Intermediate Tax-Free Fund		27,187		32,827		60,014		(14,377	)		—			486,052			531,689
Sterling Capital Maryland Intermediate Tax-Free Fund		45,145		90,225		135,370		(27,410	)		—			1,067,538			1,175,498
Sterling Capital North Carolina Intermediate Tax-Free Fund		316,969		—		316,969		(218,907	)		(1,319,983	)		7,984,351			6,762,430
Sterling Capital South Carolina Intermediate Tax-Free Fund		118,288		—		118,288		(90,129	)		(582,808	)		2,903,162			2,348,513
Sterling Capital Virginia Intermediate Tax-Free Fund		180,089		—		180,089		(116,883	)		(508,318	)		3,794,043			3,348,931
Sterling Capital West Virginia Intermediate Tax-Free Fund		177,553		105,217		282,770		(109,756	)		—			3,336,773			3,509,787
Sterling Capital Diversified Income Fund		60,087		—		60,087		(1,658	)		(6,192,214	)		894,680			(5,239,105	)
Sterling Capital Strategic Allocation Balanced Fund		9,003		—		9,003		(141	)		(4,039,123	)		3,416,553			(613,708	)
Sterling Capital Strategic Allocation Growth Fund		1,558		—		1,558		(74	)		(6,480,514	)		3,123,431			(3,355,599	)

* The primary differences between book basis and tax basis unrealized appreciation (depreciation) were due to the deferral of losses on wash sales and straddles, recognition of gain on constructive sales, basis adjustments on partnership interests, hybrid securities, royalty trusts, PFICs and the deferral of market discount and premium until point of sale.

Under current tax law, net capital losses or, if there are no such losses, net long-term capital losses or net short-term capital losses realized after October 31, net ordinary losses from the sale, exchange or other taxable disposition of property realized after October 31 and other net ordinary losses realized after December 31 of a Fund’s taxable year may be deferred and treated as occurring on the first business day of the following taxable year for tax purposes. The following Fund had deferred qualified late-year losses, which will be treated as arising on the first business day of the taxable year ending September 30, 2017:

	Qualified			Qualified			Qualified
	Late-Year			Late Year			Late Year
	Ordinary			Short-term			Late-term
	Losses			Capital Losses			Capital Losses
Sterling Capital Long/Short Equity Fund		$	396,924		$	99,111		$	—
Sterling Capital Ultra Short Bond Fund			—			33,779			197,728
Sterling Capital Total Return Bond Fund			—			3,807,034			2,051,945
Sterling Capital Securitized Opportunities Fund			—			38,135			100,118
Sterling Capital North Carolina Intermediate Tax-Free Fund			—			1,836,783			(516,800	)
Sterling Capital South Carolina Intermediate Tax-Free Fund			—			743,156			(160,348	)
Sterling Capital Virginia Intermediate Tax-Free Fund			—			971,944			(463,625	)

202

Sterling Capital Funds

Notes to Financial Statements — (continued)

September 30, 2017

As of September 30, 2017, federal income tax cost, gross unrealized appreciation and gross unrealized depreciation on securities were as follows:

								Net Tax
			Gross Tax		Gross Tax			Unrealized
			Unrealized		Unrealized			Appreciation
	Tax Cost		Appreciation		Depreciation			(Depreciation)
Sterling Capital Behavioral Large Cap Value Equity Fund	$	257,444,135	$	50,323,176	$	(1,396,828	)	$	48,926,348
Sterling Capital Mid Value Fund		548,614,609		180,683,350		(59,510,221	)		121,173,129
Sterling Capital Behavioral Small Cap Value Equity Fund		170,527,695		47,360,421		(537,372	)		46,823,049
Sterling Capital Special Opportunities Fund		813,824,408		355,821,363		(24,294,196	)		331,527,167
Sterling Capital Equity Income Fund		1,102,432,264		473,182,597		(10,905,642	)		462,276,955
Sterling Capital Long/Short Equity Fund		23,307,103		4,875,397		(2,801,068	)		2,074,329
Sterling Capital Behavioral International Equity Fund		69,123,556		13,555,057		(700,692	)		12,854,365
Sterling Capital SMID Opportunities Fund		8,653,031		1,213,805		(136,887	)		1,076,918
Sterling Capital Stratton Mid Cap Value Fund		41,658,011		24,863,833		(388,878	)		24,474,955
Sterling Capital Stratton Real Estate Fund		64,518,131		32,454,015		(780,556	)		31,673,459
Sterling Capital Stratton Small Cap Value Fund		506,988,446		677,484,898		—			677,484,898
Sterling Capital Ultra Short Bond Fund		38,405,239		53,255		(111,294	)		(58,039	)
Sterling Capital Short Duration Bond Fund		75,682,903		282,093		(779,429	)		(497,336	)
Sterling Capital Intermediate U.S. Government Fund		22,439,562		234,347		(368,671	)		(134,324	)
Sterling Capital Total Return Bond Fund		1,077,603,499		16,190,329		(11,649,370	)		4,540,959
Sterling Capital Corporate Fund		29,435,678		638,596		(106,662	)		531,934
Sterling Capital Securitized Opportunities Fund		39,184,242		685,904		(241,737	)		444,167
Sterling Capital Kentucky Intermediate Tax-Free Fund		11,473,260		502,484		(16,432	)		486,052
Sterling Capital Maryland Intermediate Tax-Free Fund		22,150,510		1,067,538		—			1,067,538
Sterling Capital North Carolina Intermediate Tax-Free Fund		180,305,299		8,156,432		(172,080	)		7,984,352
Sterling Capital South Carolina Intermediate Tax-Free Fund		83,179,669		2,993,017		(89,855	)		2,903,162
Sterling Capital Virginia Intermediate Tax-Free Fund		94,649,679		3,891,655		(97,612	)		3,794,043
Sterling Capital West Virginia Intermediate Tax-Free Fund		86,016,428		3,422,635		(85,862	)		3,336,773
Sterling Capital Diversified Income Fund		23,053,776		1,406,427		(511,747	)		894,680
Sterling Capital Strategic Allocation Balanced Fund		27,644,057		3,612,820		(196,267	)		3,416,553
Sterling Capital Strategic Allocation Growth Fund		20,804,955		3,348,838		(225,407	)		3,123,431

9. Subsequent Events:

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

On November 16, 2017, the Board of Trustees approved the liquidation of the Sterling Capital Long/Short Equity Fund, which is expected to occur on or about January 26, 2018.

203

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of Sterling Capital Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of the Sterling Capital Funds (the Funds) comprised of the Sterling Capital Behavioral Large Cap Value Equity Fund, 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 SMID Opportunities Fund, Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund, Sterling Capital Stratton Small Cap Value 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, Sterling Capital Strategic Allocation Balanced Fund and Sterling Capital Strategic Allocation Growth Fund, as of September 30, 2017, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, the statement of cash flows for Sterling Capital Long/Short Equity Fund for the year then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the years or periods in the three-year period ended December 31, 2014 for the Sterling Capital Stratton Mid Cap Value Fund, Sterling Capital Stratton Real Estate Fund, and Sterling Capital Stratton Small Cap Value Fund were audited by other auditors. Those auditors also expressed an unqualified opinion on those financial highlights in their report dated February 18, 2015.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian, prime broker, transfer agent of the underlying fund, and other brokers, or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds comprising Sterling Capital Funds as of September 30, 2017, the results of their operations, the changes in their net assets, cash flows for the Sterling Capital Long/Short Equity Fund, and the financial highlights for the periods presented in the first paragraph, in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

November 22, 2017

204

Sterling Capital Funds

September 30, 2017

Notice to Shareholders (Unaudited)

All amounts and percentages below are based on financial information available as of the date of this annual report and, accordingly are subject to change. For each item it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

For the fiscal year ended September 30, 2017, each Fund is reporting the following items with regard to distributions paid during the year.

							(for corporate
							shareholders)
	Long-Term			Qualified			Dividends			Exempt-			U.S.			Foreign			Foreign
	Capital			Dividend			Received			Interest			Government			Taxes			Source
	Gain			Income %			Deduction %			Dividend			Income			Paid			Income
Sterling Capital Behavioral Large Cap Value Equity Fund		$	14,365		100.00	%		100.00	%		$	—		—			$	—		—
Sterling Capital Mid Value Fund			19,688,320		100.00	%		100.00	%			—		—				—		—
Sterling Capital Behavioral Small Cap Value Equity Fund			377,136		100.00	%		100.00	%			—		—				—		—
Sterling Capital Special Opportunities Fund			28,041,508		100.00	%		91.84	%			—		—				—		—
Sterling Capital Equity Income Fund			19,540,561		100.00	%		100.00	%			—		—				—		—
Sterling Capital Behavioral International Equity Fund			437		90.62	%		—				—		—				—		70.58	%
Sterling Capital SMID Opportunities Fund			146		30.72	%		31.18	%			—		—				—		—
Sterling Capital Stratton Mid Cap Value Fund			368,607		100.00	%		100.00	%			—		—				—		—
Sterling Capital Stratton Real Estate Fund			4,765,485		3.07	%		1.61	%			—		—				—		—
Sterling Capital Stratton Small Cap Value Fund			72,021,026		100.00	%		100.00	%			—		—				—		—
Sterling Capital Short Duration Bond Fund			—		0.56	%		0.56	%			—		1.91	%			—		—
Sterling Capital Intermediate U.S. Government Fund			—		—			—				—		37.36	%			—		—
Sterling Capital Total Return Bond Fund			—		0.39	%		0.39	%			—		4.57	%			—		—
Sterling Capital Corporate Fund			50,514		0.04	%		0.04	%			—		0.39	%			—		—
Sterling Capital Securitized Opportunities Fund			—		—			—				—		1.28	%			—
Sterling Capital Kentucky Intermediate Tax-Free Fund			164,128		—			—				272,452		—				—		—
Sterling Capital Maryland Intermediate Tax-Free Fund			215,670		—			—				557,772		—				—		—
Sterling Capital North Carolina Intermediate Tax-Free Fund			699,697		—			—				4,582,294		—				—		—
Sterling Capital South Carolina Intermediate Tax-Free Fund			9,915		—			—				1,766,112		—				—		—
Sterling Capital Virginia Intermediate Tax-Free Fund			870,685		—			—				2,254,349		—				—		—
Sterling Capital West Virginia Intermediate Tax-Free Fund			452,742		—			—				2,145,342		—				—		—
Sterling Capital Diversified Income Fund			—		0.22	%		0.01	%			—		0.03	%			—		—
Sterling Capital Strategic Allocation Balanced Fund			—		54.39	%		23.81	%			—		2.46	%			—		26.24	%
Sterling Capital Strategic Allocation Growth Fund			—		79.76	%		28.88	%			—		1.51	%			—		38.31	%

205

Sterling Capital Funds

September 30, 2017

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.

206

Sterling Capital Funds

Information about Trustees and Officers (Unaudited)

Overall responsibility for the management of the Funds rests with its Board of Trustees (“Trustees”), who are elected by the shareholders of the Funds. The Trustees elect the officers of the Funds to supervise actively its day-to-day operations. The names of the Trustees, birthdates, term of office and length of time served, principal occupations during the past five years, number of portfolios overseen and directorships held outside of the Funds are listed in the two tables immediately following. The business address of the persons listed below is 3605 Glenwood Avenue, Suite 100, Raleigh, North Carolina 27612.

INDEPENDENT TRUSTEES
				Number of
				Portfolios
				in Fund	Other
		Term of Office/		Complex	Directorships
	Position(s) Held	Length of	Principal Occupation	Overseen	Held
Name and Birthdate	With the Funds	Time Served	During the Past 5 Years	by Trustee	by Trustee
Drew T. Kagan Birthdate: 02/48	Trustee, Chairman of the Board of Trustees	Indefinite, 08/00 — Present	Retired; from September 2010 to March 2013, Chairman, Montecito Advisors, Inc.; from December 2003 to September 2010, CEO, Montecito Advisors, Inc.; from March 1996 to December 2003, President, Investment Affiliate, Inc.	26	None
Laura C. Bingham Birthdate: 11/56	Trustee	Indefinite, 02/01 — Present	From March 2013 to present, Partner, Newport Board Group; from July 2010 to March 2013, governance and leadership consultant; from June 1998 to July 2010, President and CEO of Peace College	26	None
Douglas R. Van Scoy Birthdate: 11/43	Trustee	Indefinite, 05/04 — Present	Retired; from November 1974 to July 2001, employee of Smith Barney (investment banking), most recently as Director of Private Client Group and Senior Executive Vice President	26	None
James L. Roberts Birthdate: 11/42	Trustee	Indefinite, 11/04 — Present	Retired; from December 2009 to present, Consultant, Asphalt Systems, Inc.; from December 2007 to present, Consultant, Grand Mountain Bank	26	None
Alan G. Priest Birthdate: 05/52	Trustee	Indefinite, 07/12 — Present	Retired; from April 1993 to April 2012, Partner, Ropes & Gray LLP	26	None

207

Sterling Capital Funds

The following table shows information for the trustee who is an “interested person” of the Funds as defined in the 1940 Act:

INTERESTED TRUSTEES
				Number of
				Portfolios
				in Fund	Other
		Term of Office/		Complex	Directorships
	Position(s) Held	Length of	Principal Occupation	Overseen	Held
Name and Birthdate	With the Funds	Time Served	During the Past 5 Years	by Trustee	by Trustee
Alexander W. McAlister* Birthdate: 03/60	Trustee	Indefinite, 11/10 — Present	From August 1981 to present, President, Sterling Capital Management LLC	26	Director, Sterling Capital Management LLC

* Mr. McAlister is treated by the Funds as an “interested person” (as defined in Section 2(a)(19) of the 1940 Act) of the Funds because he is an officer of the Advisor.

The following table shows information for officers of Funds:

		Term of Office/
	Position(s) Held	Length of	Principal Occupation
Name and Birthdate	With the Funds	Time Served	During the Past 5 Years
James T. Gillespie Birthdate: 11/66	President	Indefinite, 12/12 — Present	From March 2012 to present, Executive Director, Sterling Capital Management LLC; From June 2010 to March 2012, Director, Sterling Capital Management LLC and its predecessors; from August 2008 to June 2010, Vice President Relationship Management, JPMorgan Chase & Co.; from February 2005 to August 2008, Senior Vice President and Manager of Mutual Fund Administration, Sterling Capital Management LLC and its predecessors
Todd M. Miller Birthdate: 09/71	Treasurer and Secretary	Indefinite, Vice President, 08/05 — Present; Treasurer, 01/15 — Present; Secretary, 08/10 — Present	From June 2009 to present, Director, Sterling Capital Management LLC and its predecessors; from June 2005 to May 2009, Mutual Fund Administrator; from May 2001 to May 2005, Manager, BISYS Fund Services
Michelle A. Whalen Birthdate: 04/69	Vice President	Indefinite, 11/15 — Present	From August 2015 to present, Associate Director & Senior Mutual Fund Administrator, Sterling Capital; from September 2000 to July 2015, Supervisor Mutual Fund Administration, Stratton Management Co.
Brian M. Moran Birthdate: 05/60	Chief Compliance and Anti-Money Laundering Officer	Indefinite, 01/15 — Present	From July 2014 to present, Chief Compliance Officer and Executive Director, Sterling Capital Management LLC; from December 2006 to June 2014, Chief Compliance Officer and Director, TIAA-CREF and Teachers Personal Investors Services, Inc.
John A. Bruggeman Birthdate: 12/71	Assistant Treasurer	Indefinite, Assistant Treasurer, 08/16 — Present	From January 2010 to present, Vice President and Senior Director, Fund Accounting and Administration Department, BNY Mellon Investment Servicing (US) Inc.

208

Sterling Capital Funds

		Term of Office/
	Position(s) Held	Length of	Principal Occupation
Name and Birthdate	With the Funds	Time Served	During the Past 5 Years
Julie M. Powers Birthdate: 10/69	Assistant Secretary	Indefinite, 11/11 — Present	From November 2011 to present, Vice President; from March 2009 to October 2011, Senior Manager and Vice President; from August 2005 to February 2009, Manager and Assistant Vice President, Regulatory Administration Department, BNY Mellon Investment Servicing (US) Inc.

The Funds’ Statement of Additional Information includes additional information about the Funds’ Trustees and Officers. To receive your free copy of the Statement of Additional Information, call toll free: 1-800-228-1872.

209

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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.

    (a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the “Code of Ethics”).

    (c) There have been no amendments, during the period covered by this report, to a provision of the Code of Ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in Item 2(b) of Form N-CSR.

    (d) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in Item 2(b) of Form N-CSR.

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the registrant’s board of trustees has determined that Drew Kagan is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

    (a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $527,719 for 2017 and $493,600 for 2016.

Audit-Related Fees

    (b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the

registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2017 and $0 for 2016. These audit-related services include issuance of consents to use the name of the auditor in new Fund filings.

Tax Fees

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $101,556 for 2017 and $95,792 for 2016. Fees for both 2017 and 2016 relate to the preparation of federal income and excise tax returns and review of capital gains distribution calculations.

All Other Fees

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2017 and $0 for 2016.

(e)(1) Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust’s Audit Committee must pre-approve all audit and non-audit services provided by the independent accountants relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) 100%

(c) 100%

(d) N/A

(f) The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent.

(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2017 and $0 for 2016.

(h) The audit committee of the registrant’s board of trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common

control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

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

(b) Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

Item 11.  Controls and Procedures.

       (a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are effective to provide reasonable assurance that

information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that information required to be disclosed by the registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

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

Item 12.  Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

    Not applicable.

Item 13.  Exhibits.

(a)(1) The registrant’s Code of Ethics is attached hereto.

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

(a)(3) Not applicable.

(a)(4) 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     11/27/2017                                                                                                    

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     11/27/2017                                                                                                    

By (Signature and Title)   /s/ Todd M. Miller                                                      

     Todd M. Miller, Treasurer

     (principal financial officer)

Date     11/27/2017