UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-06719
Sterling Capital Funds
(Exact name of registrant as specified in charter)
434 Fayetteville St., Suite 500
Raleigh, NC 27601
(Address of principal executive offices) (Zip code)
James T. Gillespie, President
Sterling Capital Funds
434 Fayetteville St., Suite 500
Raleigh, NC 27601
(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, 2022
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.
| (a) | The Report to Shareholders is attached herewith. |
| Sterling Capital Funds |
| Table of Contents |
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 from October 1, 2021, to September 30, 2022.
Equity markets posted negative returns over the 12-month period under review. Stocks peaked in November 2021 after a robust year, and then declined throughout the balance of the period. A few brief market upswings were not enough to reverse the trend, and markets ended the period with double-digit declines across all cap sizes in both domestic and international markets. The theme for the period was high inflation. Efforts by central banks, particularly the Federal Reserve (the Fed), to bring rising prices back under control was one of the main factors driving both stock and bond prices lower.
During the fourth quarter of 2021, equity markets generally posted strong returns despite historically high inflation in the U.S. and tighter Fed policy. U.S. equities outperformed international equities, while large cap stocks generally outperformed their small cap counterparts. Markets began to slide near the end of the year as concerns grew over whether the Fed’s policies could bring inflation under control while still avoiding a recession. Interest rates in the fourth quarter were flat, with the 10-year Treasury yield beginning and ending the quarter at 1.52%. However, the credit spread between corporate bonds and Treasuries widened over the course of the final three months of 2021 as bond markets adjusted to the Fed’s more aggressive tone.
The New Year brought fresh concerns about the economy and a new round of market selloffs. Every major segment of the global equity markets we monitor ended the first quarter of 2022 in negative territory as market volatility, fears of persistent high levels of inflation, and a major geopolitical crisis in the form of the Russia/Ukraine conflict weighed on investor confidence. These concerns persisted throughout the second and third quarters of 2022 as investors largely lost their appetite for risk amid persistent inflation and steep rate hikes by the Fed.
The Fed raised the federal funds rate—a key short-term interest rate—by 75 basis points in June, which represented the largest rate increase in more than 28 years. It was a larger increase than the financial markets had anticipated. The tone of the Fed’s comments left investors optimistic that a soft economic landing was still possible, however, and so investors regained some of their appetite for risk. Equity markets rebounded strongly, even weathering a second 75-basis point hike in July. But a speech by Fed Chair Jerome Powell on August 25 indicated the Fed expected it
would take more time to get inflation back under control and that there would be “some pain to households and businesses” in the meantime. The hawkish tone pushed equity markets lower, and a higher-than-expected inflation reading in mid-September helped maintain the downward pressure through the end of the period. The Fed elected to raise short-term interest rates by another 75 basis points at the end of September—the third major rate increase in four months. The first three quarters of 2022 saw negative declines in both stocks and bonds, leaving investors with few good options for how to weather the uncertainty.
Once again, large cap stocks generally outperformed small caps for the first three quarters of 2022, while domestic equity markets were only slightly stronger than international markets over the same time frame. The S&P 500®1 was down 23.9% year-to-date (YTD) through September 30, while the MSCI2 EAFE Large Cap Index declined 27.1%. Among small cap stocks, the Russell 2000®3 fell 25.1%, compared to a 32.1% drop in the MSCI EAFE Small Cap Index. Emerging markets continued to struggle, and the MSCI Emerging Markets Index lost 27.0% over the same timeframe.
Bond yields during the first quarter of 2022 reflected the evolving views on higher inflation. The yield curve briefly inverted for the first time since 2019 but ended the quarter nearly flat. Upward pressure on bond yields continued throughout the second and third quarters of 2022, however, pushing the yield curve solidly into inverted territory. Yields on 10-year Treasuries ended the period at 3.8% (up from 1.52% at the start of 2022) while yields on two-year Treasuries ended the period at 4.2% (up from 0.73% at the start of 2022). The surge in interest rates negatively affected bond returns, and the Bloomberg4 U.S. Aggregate Bond Index was down 14.6% YTD through September 30.
Domestic macro-economic data told a story of strong economic growth gradually giving way in the face of major economic headwinds—most notably inflation, which reached an annualized rate of 8.5% in March 2022 and remained a stubbornly high 8.2% by September 2022. Gross Domestic Product (GDP) increased at an annualized rate of 6.9% in the final quarter of 2021, only to shift to a decline of 1.6% on an annual basis for the first quarter of 2022, followed by a decline of 0.6% for the second quarter. Despite successive quarters of negative GDP growth, other areas of the economy indicated continued strength, including the employment picture. The monthly unemployment rate continued to reflect strong economic fundamentals, declining from 4.6% in October 2021 to 3.6% in March 2022, after which it remained mostly level, ending at 3.5% in September 2022.
The S&P 500 fell 15.47% (total return) during the 12 months under review. Small-cap stocks fared far worse than their large cap counterparts over the same period, with the Russell 2000 losing 23.50% (total return). International markets also declined sharply, with the MSCI EAFE Index down 25.13% (net return) and the MSCI Emerging Markets Index losing 27.80% (net return) for the 12-month period.
The Energy sector posted the strongest returns among U.S. stocks, even though the sector declined for the period. The bulk of that outperformance came in the first quarter of 2022, with Energy stocks gaining 39.0% compared to a 4.6% decline for the S&P 500. The quarterly gain was driven by rising demand for energy as economic activity resumed post pandemic, and by the spike in oil prices triggered by the Russia/Ukraine conflict. Energy remained within the top three performing sectors across the rest of the period. By comparison, the Communications Services sector strongly underperformed the broader markets, remaining one of the bottom two performing sectors with double-digit declines in each of the final three quarters of the period.
We will continue to monitor the evolving economic and market climate and will manage the Sterling Capital Funds accordingly. Thank you for your confidence in Sterling Capital Management. We look forward to serving your investment needs during the months and years ahead.
If you have any questions, please call us at 1-800-228-1872.
Sincerely,
James T. Gillespie
President
Sterling Capital Funds
Jeffrey J. Schappe, CFA
Managing Director
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 | The MSCI Inc. is an American financial company headquartered in New York, NY, and serves as a global provider of equity and other market indices. The MSCI EAFE Index is an equity index which captures large and mid-cap representation across 21 Developed Markets countries around the world, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. |
| 3 | The “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 measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. |
| 4 | “Bloomberg®” and the Bloomberg indices are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”), which does not sponsor and is in no way affiliated with the Sterling Capital Funds. The Bloomberg U.S. Aggregate Bond Index is an unmanaged index composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. It is not possible to invest in the Bloomberg U.S. Aggregate Bond Index, which is unmanaged and does not incur fees and charges. |
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, Truist Financial Corporation 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 Truist Financial Corporation 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 Portfolio Managers Robert W. Bridges, CFA, Senior Managing Director, and Robert O. Weller, CFA, Executive Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert W. Bridges, CFA
Robert W. Bridges, CFA, Senior Managing Director, CIO and Head of Equity, joined Sterling Capital in 1996 and has investment experience since 1991. He has been co-portfolio manager of the Behavioral Large Cap Value Equity Fund since August 2013. Bob is a graduate of Wake Forest University, where he received a B.S. in Business. He holds the Chartered Financial Analyst designation.
Robert O. Weller, CFA
Robert O. Weller, CFA, Executive Director, joined Sterling Capital in 2012 and has investment experience since 1996. He has been co-portfolio manager of the Behavioral Large Cap Value Equity Fund since August 2013. Rob is a graduate of Loyola University Maryland, where he received a B.B.A. in Finance. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the Russell 1000® Value Index.
Q. What factors affected the Fund’s performance?
A. Equities struggled during the period under review, including U.S. large-cap stocks. March 2022 saw the first of a series of short-term interest rate hikes by the Federal Reserve (Fed), in response to persistently high inflation. The Fed’s actions pushed long-term interest rates to their highest levels in 20 years, raising concerns among investors about an economic slowdown and the potential for a recession. Investors responded to the Feds moves by adopting a risk-off attitude, which led to significant volatility in equity markets. Within this context, large-cap value equities outperformed their growth counterparts for the period, marking two consecutive years of outperformance. The Fund’s absolute returns benefited from its strong exposure to value-oriented stocks.
The Fund applies principles of behavioral finance to its investment 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 Fund’s positive performance relative to its benchmark was primarily driven by a higher exposure to value compared to its benchmark. This focus on value beyond that of the value-based benchmark is a feature of its behavioral finance-based strategy. The Fund’s momentum strategy also boosted relative returns.
Stock selection within Financials were the primary detractor from the Fund’s relative returns. Diversified financials, in particular, harmed the Fund’s return relative to its benchmark.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell 1000® Value Index measures the performance of value style of investing in Large Cap U.S. stocks. The Russell 1000® Value Index contains those Russell 1000 securities with less-than-average growth orientation. Securities in the Russell 1000® Value Index generally have lower price-to-book and price-to-earnings ratios than those in the Russell 2000® Growth Index.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
2
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 10/9/92 | -15.02% | 2.84% | 7.09% |
| Class C Shares** | 2/1/01 | -10.50% | 3.30% | 6.94% |
| Institutional Shares | 10/9/92 | -9.62% | 4.32% | 7.99% |
| Class R6 Shares | 2/1/181 | -9.48% | 4.39% | 8.03% |
| Russell 1000® Value Index | N/A | -11.36% | 5.29% | 9.17% |
| Bloomberg U.S. 1000 Value | N/A | -8.23% | 5.95% | 9.67% |
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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
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.
The Bloomberg US 1000 Value Index provides exposure to companies with superior value factor scores based on their earnings yield, valuation, dividend yield, and growth.
3
Sterling Capital Mid Value Fund
Portfolio Managers
Sterling Capital Mid Value Fund (the “Fund”) is managed by Portfolio Managers Patrick W. Rau, CFA, Managing Director, William C. Smith, CFA, Executive Director and Lee D. Houser, CFA, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Patrick W. Rau, CFA
Patrick W. Rau, CFA, Managing Director, joined Sterling Capital Management in 2001 and has investment experience since 1993. Patrick has been co-portfolio manager of Mid Value Fund since August 2021. Patrick received his A.B. in Political Science from Duke University and his MBA from Vanderbilt University. He holds the Chartered Financial Analyst designation.
William C. Smith, CFA
William C. Smith, CFA, Executive Director, joined Sterling Capital Management in 2015 and has investment experience since 2002. Will has been co-portfolio manager of the Mid Value Fund since August 2021 and served as associate portfolio manager of the Fund from February 2021 to August 2021. Will received his B.E. in Structural Engineering from Vanderbilt University and his MBA from the London Business School. He holds the Chartered Financial Analyst designation.
Lee D. Houser, CFA
Lee D. Houser, CFA, Executive Director, joined Sterling Capital Management in 2006 and has investment experience since 1999. Lee has been associate portfolio manager of the Mid Value Fund since February 2021. Lee received his B.S. in Mathematics and Economics from James Madison University, where he was a summa cum laude graduate, and his MBA from Duke University. He holds the Chartered Financial Analyst designation.
Q. How did the Fund perform during the 12-month period between October 1, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its current benchmark, the Russell Midcap® Value Index.
Q. What factors affected the Fund’s performance?
A. U.S. equity markets tumbled during the latter half of the period in response to higher and unexpectedly persistent inflation. Intra-quarter volatility and a weakening economy were primary concerns during the period.
Favorable stock selection in the Health Care, Materials and Financials sectors as well as an overweight to Health Care contributed to the Fund’s relative performance. An underweight to the strong-performing
Energy sector detracted performance. Adverse stock selection within the Consumer Discretionary and Information Technology sectors and an overweight to Consumer Discretionary also hindered relative performance.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell Midcap® Value Index measures the performance of value style of investing in Mid Cap U.S. stocks. The Russell Midcap® Value Index contains those Russell Mid Cap securities with less-than-average growth orientation. Securities in the Russell Midcap® Value Index generally have lower price-to-book and price-to-earnings ratios than those in the Russell Midcap® Growth Index.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
4
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 8/1/96 | -22.22% | 1.70% | 7.45% |
| Class C Shares** | 7/25/01 | -18.06% | 2.15% | 7.29% |
| Institutional Shares | 8/1/96 | -17.30% | 3.18% | 8.36% |
| Class R6 Shares | 2/1/181 | -17.18% | 3.25% | 8.40% |
| Russell Midcap® Value Index | N/A | -13.56% | 4.76% | 9.44% |
| Bloomberg U.S. Mid Cap Value | N/A | -10.14% | 5.98% | 10.41% |
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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
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.
The Bloomberg US Mid Cap Value Index is a float market-cap-weighted index based on an equal-weighted combination of four factors:
earnings yield, valuation, dividend yield, and growth.
5
Sterling Capital Behavioral Small Cap Value Equity Fund
Portfolio Managers
Sterling Capital Behavioral Small Cap Value Equity Fund (the “Fund”) is managed by Portfolio Managers Robert W. Bridges, CFA, Senior Managing Director, and Robert O. Weller, CFA, Executive Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert W. Bridges, CFA
Robert W. Bridges, CFA, Senior Managing Director, CIO and Head of Equity, joined Sterling Capital in 1996 and has investment experience since 1991. He has been co-portfolio manager of the Behavioral Small Cap Value Equity Fund since June 2013. Bob is a graduate of Wake Forest University, where he received a B.S. in Business. He holds the Chartered Financial Analyst designation.
Robert O. Weller, CFA
Robert O. Weller, CFA, Executive Director, joined Sterling Capital in 2012 and has investment experience since 1996. He has been co-portfolio manager of the Behavioral Small Cap Value Equity Fund since June 2013. Rob is a graduate of Loyola University Maryland, where he received a B.B.A. in Finance. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its benchmark, the Russell 2000® Value Index.
Q. What factors affected the Fund’s performance?
A. Small-cap equities struggled in the face of unfavorable economic conditions during the 12-month period under review. Inflation soared throughout the period, leading to a series of hikes in short-term interest rates by the Federal Reserve (Fed), beginning in March and continuing throughout the period. The Fed’s action pushed long-term interest rates to their highest levels in 20 years, raising concerns among investors about an economic slowdown and the potential for a recession. Markets responded by displaying significant volatility. In this challenging environment, the Fund’s absolute returns suffered, as small-cap stocks underperformed their large-cap counterparts. In general, small-cap stocks tend to be more affected by market volatility than larger-cap stocks, since smaller companies typically lack the resources of larger companies. The Fund’s absolute returns were especially hurt by its holdings in Health Care.
The Fund applies principles of behavioral finance to its investment 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 Fund’s positive performance relative to its benchmark was primarily driven by a higher exposure to value compared to its benchmark. This focus on value beyond that of the value-based benchmark is a feature of its behavioral finance-based strategy. The Fund’s momentum strategy, focusing on stocks that have recently outperformed the market and exhibit increasing earnings estimates, also contributed to relative returns.
Stock selection in the Health Care sector, specifically health care equipment and services, was the primary detractor from relative returns.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell 2000® Value Index measures the performance of value style of investing in small cap U.S. stocks. The Russell 2000® Value Index contains those Russell 2000 securities with less-than-average growth orientation. Securities in the Russell 2000® Value Index generally have lower price-to-book and price-to-earnings ratios than those in the Russell 2000® Growth Index.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
6
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 1/29/10 | -18.46% | 1.07% | 7.07% |
| Class C Shares** | 1/29/10 | -14.19% | 1.50% | 6.89% |
| Institutional Shares | 1/2/97 | -13.35% | 2.53% | 7.96% |
| Class R6 Shares | 2/1/181 | -13.29% | 2.59% | 8.00% |
| Russell 2000® Value Index | N/A | -17.69% | 2.87% | 7.94% |
| Bloomberg U.S. 2000 Value | N/A | -17.07% | 3.66% | 9.01% |
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 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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of 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.
The Bloomberg US 2000 Value Index is a float market-cap-weighted benchmark of the lower 2000 in capitalization of the Bloomberg U.S. 3000 Index that provides exposure to companies with superior value factor scores based on their earnings yield, valuation, dividend yield, and growth.
7
Sterling Capital Special Opportunities Fund
Portfolio Managers
Sterling Capital Special Opportunities Fund (the “Fund”) is managed by Portfolio Managers Joshua L. Haggerty, CFA, Executive Director and Daniel A. Morrall, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Joshua L. Haggerty, CFA
Joshua L. Haggerty, CFA, Executive Director, joined the CHOICE Asset Management team of BB&T Scott & Stringfellow in 2005, which integrated with Sterling Capital in January 2013. He has investment experience since 1998. He has been co-portfolio manager of the Special Opportunities Fund since July 2021 and was associate portfolio manager of the Fund from February 2016 to July 2021. Josh is a graduate of James Madison University where he received his B.B.A. in Finance. He holds the Chartered Financial Analyst designation.
Daniel A. Morrall
Daniel A. Morrall, Executive Director, joined Sterling Capital Management in 2014 and has investment experience since 2001. Dan has been co-portfolio manager of the Special Opportunities Fund since December 2021 and was associate portfolio manager of the Fund from July 2021 to December 2021. Dan received his B.S. in Business and Economics from Washington and Lee University, his MBA from Columbia Business School, and his M.S.I.T. from Capella University.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional shares slightly trailed its benchmark, the Russell 3000® Index.
Q. What factors affected the Fund’s performance?
A. The Russell 3000® Index fell -17.6% over the 12-month period. Record high inflation led the Federal Reserve to raise rates multiple times, which took a toll on equity multiples. From an economic standpoint, GDP contracted in the first and second quarters of 2022. On the geopolitical front, Russia invaded Ukraine, China reinstated COVID-19 lockdowns and Europe scrambled to secure natural gas ahead of the winter season. These factors impacted areas of the market differently, with defensive sectors performing better and higher multiple and more speculative stocks falling most.
The Fund’s biggest headwind was its lack of exposure to more defensive sectors such as consumer staples and utilities. Our zero weighting in these two sectors was a combined 137 basis point (bp) headwind over the 12-month period. Add in a zero weight in Energy and the headwind increases to 304 bps. We are bottoms-up, fundamental stock pickers, not top-down allocators. Therefore, it’s encouraging that our stock selection added 206 bps of relative performance during the fiscal year. For example, within the communications services sector our stock selection added 150 bps of relative performance, led by T-Mobile’s 18.9% return during our holding period. At the same time, our overweight in the sector, which fell 39.4% (based on the Russell 3000 communication services sector’s performance), cost the fund 95 bps of relative performance.
Our rationale for not owning a utility or a consumer staple stemmed from the lack of growth opportunities and elevated valuations, yet we continued to research companies in those areas to be ready when an opportunity presents itself. Meanwhile, we’ve found more attractive stocks in the healthcare sector, where our overweight added 98 bps of relative performance and our stock selection added an additional 144 bps. At the end of the fiscal year, both the utilities and staples sectors traded above their 20-year average on forward price-to-earnings, while healthcare remained slightly below, continuing to support our relative exposures.
The largest individual stock contributors to the portfolio were: 1) UnitedHealth Group (+31%), the largest managed-care operator in the U.S., which delivered a
series of strong quarterly reports and raised its 2022 outlook; 2) Pharmaceutical drug developer Bristol Myers (+23%), which rallied as it made progress in advancing its large pipeline of drugs, including the recent FDA approval of Deucravacitinib for moderate to severe psoriasis; 3) auto parts retailer AutoZone (+26%) executed well on its growth ambitions in the do-it-for-me (DIFM) category (commercial repair garages), a $76 billion addressable market. AutoZone has delivered six consecutive quarters of DIFM same-store sales above 20%, resulting in meaningful share gains.
The biggest individual stock detractors from the portfolio were: 1) Cable operator Comcast (-46%), which reported decelerating growth in net new broadband subscribers at the same time competition ramped up from wireless and telecom providers; 2) Alphabet (-28%) slumped, as advertising revenue growth slowed and YouTube advertising revenues declined year-over-year in the September quarter; 3) beverage can maker Ball Corporation (-46%), typically a defensive business, was impacted by its decision to exit Russia, where its three facilities delivered 8% of annual operating income, and meaningful price increases by beverage companies that resulted in a steep slowdown in beverage consumption and therefore fewer cans.
The portfolio ended the fiscal year positioned well relative to our four investment pillars, with the median holding expected to grow faster than the median Russell 3000 constituent, generating higher returns on equity, with lower leverage and at a cheaper valuation.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell 3000® Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are included.
We believe our team’s relentless focus on time-tested “pillars” such as return on capital, financial flexibility, above average earnings growth, and favorable valuations will continue to serve investors well as navigation instruments that cut through fog of uncertainty in the years ahead. We will continue to be eager, disciplined, and centered on client success. Thank you for your ongoing confidence in us.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
8
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 6/2/03 | -23.57% | 5.58% | 9.75% |
| Class C Shares** | 6/2/03 | -19.53% | 6.04% | 9.58% |
| Institutional Shares | 6/2/03 | -18.74% | 7.11% | 10.68% |
| Class R6 Shares | 2/1/181 | -18.66% | 7.19% | 10.72% |
| Russell 3000® Index | N/A | -17.63% | 8.62% | 11.39% |
| Bloomberg U.S. 3000 | N/A | -18.08% | 8.59% | 11.36% |
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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
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.
The Bloomberg US 3000 Index is a float market-cap-weighted benchmark of the 3000 most highly capitalized U.S. companies.
9
Sterling Capital Equity Income Fund
Portfolio Managers*
Sterling Capital Equity Income Fund (the “Fund”) is managed by Portfolio Managers Adam B. Bergman, CFA, Executive Director and Charles J. Wittmann, CFA, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Adam B. Bergman, CFA
Adam B. Bergman, CFA, Executive Director, joined the CHOICE Asset Management team of Scott & Stringfellow in 2007, which integrated with Sterling Capital Management in January 2013. He has investment experience since 1996. He has been co-portfolio manager of the Equity Income Fund since July 2021 and was associate portfolio manager of the Fund from February 2016 to July 2021. Adam is a graduate of the University of Virginia’s McIntire School of Commerce where he received his B.S. in Commerce. He holds the Chartered Financial Analyst designation.
Charles J. Wittmann, CFA
Charles J. Wittmann, CFA, Executive Director, joined Sterling Capital Management in 2014 and has investment experience since 1995. He has been co-portfolio manager of the Equity Income Fund since December 2021 and was associate portfolio manager of the Fund from July 2021 to December 2021. Chip received his B.A. in Economics from Davidson College and his MBA from Duke University's Fuqua School of Business. He earned the Certificate in ESG Investing, which is developed, administered and awarded by the CFA Society of the United Kingdom. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the Russell 1000® Value Index.
Q. What factors affected the Fund’s performance?
A. Spurred by inflation that spiked to its highest level since 1981, the Federal Reserve raised the Federal Funds rate to 3.25% from 0.25%, a level where it stood for two years as we exited the COVID-19 crisis. While the consumer price index declined slightly to 8.2% from earlier in the year, the year-over-year change in the rate of inflation remains elevated. With unemployment levels sitting at 3.5%, close to historic lows, it appears the Federal Reserve has continued space to raise short term interest rates in its vigorous efforts to curb inflation. Concerns over higher inflation, higher interest rates, and the resulting impacts to the economy placed pressure on overall equity markets, with investors taking a more risk-adverse stance during the year.
The Fund benefited relative to its benchmark, posting a (-5.6%) total return for the Institutional share class relative to the (-11.4%) return for its benchmark. Investors turned to “value” stocks during the year with “value” outperforming “growth” as measured by the Russell Indices by a two to one margin. The focus on valuation and strong balance sheets benefitted our portfolio as those two characteristics represent two of our four investment pillars that have remained constant for over twenty years.
Our top contributor over the past year was EOG Resources, which explores and produces crude oil and natural gas primarily in the United States. As the price of crude oil rose from $80 to over $120, EOG Resources shares benefitted with the move in the commodity. Elevance Health, the former Anthem, appreciated as lower medical losses from COVID-19 enabled the company to report higher profitability during the year. In addition, one of our other healthcare stocks, Abbvie, was a strong contributor as growth in its Rivoq and Skyrizi
pharmaceutical franchises offset concerns for slower growth in its Humira pharmaceuticals franchise.
Detractors included Fidelity National Information Services that has experienced market share headwinds from recent entrants in the electronic payments market. We believe the continued secular shift from cash and checks to digital payments should benefit Fidelity National. In addition, its diversified business model includes exposure to e-commerce and core banking software that should provide a solid foundation for future growth. Medtronic was another detractor during the year after they experienced headwinds in both their diabetes and infant formula businesses. With a compelling valuation and exposure to robotic surgery opportunities, we continue to maintain a constructive outlook for Medtronic. Finally, Cisco experienced supply chain constraints, primarily from China, limiting its ability to meet demand for its communication infrastructure products. We believe having too much demand relative to meeting supply is a high class problem and that as its supply chain challenges are resolved, the company is in an enviable position to take advantage of the secular growth in data and data management.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values. The Russell 1000® Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics.
*Effective November 8, 2022, Adam B. Bergman no longer serves as co-portfolio manager of the Fund and Jeremy M. Lopez was added as co-portfolio manager of the Fund.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
10
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 6/30/04 | -11.26% | 8.26% | 9.21% |
| Class C Shares** | 6/30/04 | -6.57% | 8.72% | 9.04% |
| Institutional Shares | 6/30/04 | -5.64% | 9.82% | 10.14% |
| Class R6 Shares | 2/1/181 | -5.54% | 9.92% | 10.19% |
| Russell 1000® Value Index | N/A | -11.36% | 5.29% | 9.17% |
| Bloomberg U.S. 1000 Value | N/A | -8.23% | 5.95% | 9.67% |
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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
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.
The Bloomberg US 1000 Value Index provides exposure to companies with superior value factor scores based on their earnings yield, valuation, dividend yield, and growth.
11
Sterling Capital Behavioral International Equity Fund
Portfolio Managers
Sterling Capital Behavioral International Equity Fund (the “Fund”) is managed by Portfolio Managers Robert W. Bridges, CFA, Senior Managing Director, and Robert O. Weller, CFA, Executive Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert W. Bridges, CFA
Robert W. Bridges, CFA, Senior Managing Director, CIO and Head of Equity, joined Sterling Capital in 1996 and has investment experience since 1991. He has been co-portfolio manager of the Behavioral International Equity Fund since inception. Bob is a graduate of Wake Forest University, where he received a B.S. in Business. He holds the Chartered Financial Analyst designation.
Robert O. Weller, CFA
Robert O. Weller, CFA, Executive Director, joined Sterling Capital in 2012 and has investment experience since 1996. He has been co-portfolio manager of the Behavioral International Equity Fund since inception. Rob is a graduate of Loyola University Maryland, where he received a B.B.A. in Finance. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
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 struggled over the 12-month period in the face of multiple challenges. Central banks around the world responded to persistently high inflation by raising interest rates and reducing balance sheets. These moves raised investor concerns about slowing economic growth, including the potential for recessions. As a result, investors sold stocks en masse, creating significant volatility in markets worldwide. Geopolitical uncertainty, in particular the ongoing conflict in Ukraine, also contributed to market volatility. In the face of these challenges, international equities fared worse than U.S. equities during the period. However, international value-oriented companies outperformed their growth-oriented counterparts during the period.
The Fund applies principles of behavioral finance to its investment 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 Fund’s positive performance relative to its benchmark was primarily driven by a higher exposure to value compared to its benchmark. This focus on value beyond that of the value-based benchmark is a feature of its behavioral finance-based strategy. The Fund’s momentum strategy, focusing on stocks that have recently outperformed the market and exhibit increasing earnings estimates, also contributed to relative returns.
Stock selection in the Health Care sector was the primary detractor from relative returns. In particular, investments in pharmaceuticals, biotechnology, and life sciences were significant detractors from the Fund’s return relative to its benchmark.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
MSCI EAFE® Net Index measures the performance of the developed stock markets of Europe, Australasia, and the Far East.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
12
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | Since Inception |
| Class A Shares* | 11/28/14 | -28.76% | -6.94% | -2.02% |
| Class C Shares** | 11/28/14 | -24.92% | -6.54% | -2.01% |
| Institutional Shares | 11/28/14 | -24.27% | -5.61% | -1.06% |
| Class R6 Shares | 2/1/181 | -24.13% | -5.55% | -1.03% |
| MSCI EAFE® Net Index | 11/30/14 | -25.13% | -0.84% | 1.37% |
| Bloomberg Developed Markets ex North America Large and Mid Cap | 11/28/14 | -24.55% | 0.29% | 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 ww.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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
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.
The Bloomberg Developed Markets ex North America Large and Mid Cap Index is a float market-cap-weighted equity benchmark that covers 85% market cap of the measured market.
13
Sterling Capital SMID Opportunities Fund
Portfolio Managers
Sterling Capital SMID Opportunities Fund (the “Fund”) is managed by Portfolio Managers Lee D. Houser, CFA, Executive Director and James L. Curtis, CFA, Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Lee D. Houser, CFA
Lee D. Houser, CFA, Executive Director, joined Sterling Capital Management in 2006 and has investment experience since 1999. Lee has been co-portfolio manager of the SMID Opportunities Fund since August 2021. Lee received his B.S. in Mathematics and Economics from James Madison University, where he was a summa cum laude graduate, and his MBA from Duke University. He holds the Chartered Financial Analyst designation.
James L. Curtis, CFA
James L. Curtis, CFA, Director, first worked at Sterling Capital Management from 1999 to 2001 and rejoined the firm in 2020. He has investment experience since 1996. Jim has been co-portfolio manager of the SMID Opportunities Fund since August 2021. Jim received his B.S.B.A. in Finance from the University of North Carolina at Chapel Hill’s Kenan-Flagler Business School and his MBA in Finance from Emory University’s Goizueta Business School. He holds the Chartered Financial Analyst designation.
Investment Considerations
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 period from its inception on October 1, 2021, to September 30, 2022?
A. The Fund’s Institutional Shares outperformed the Russell 2500™ Index.
Q. What factors affected the Fund’s performance?
A. The Russell 2500™ Index posted negative returns during the 12-month period as the stock market experienced broad-based declines off its mid-November peak in 2021. The Russian invasion of Ukraine in the spring of 2022 added to investor uncertainty and market risk. The crisis also had direct effects on the global economy, including increases in food and energy prices. At the same time, the Federal Reserve began a process of monetary tightening in early 2022, including interest rate hikes, to rein in stubbornly high inflation. High beta1 and growth stocks underperformed, and additional tightening could mean a market characterized by higher volatility and a general downward trend in the future.
Stock selection within the Health Care and Information Technology sectors was the largest contributor to the Fund’s relative outperformance versus its benchmark. For example, the Fund’s investment in an out-of-favor health care company with a strong management team within the inpatient rehabilitation facilities industry added to relative results as it was able to invest in this company at an attractive absolute and relative valuation due to the company’s transitory headwinds. The company outperformed during the period, which added to relative results. Within
the Information Technology sector, investments in companies with strong cash flow generation and lower valuations helped boost the Fund’s relative performance.
Stock selection within the Materials and Energy sectors, along with an underweighting of the Energy sector, were the primary detractors from the Fund’s performance relative to its benchmark. The Fund’s investment in a market-dominant aluminum can manufacturer detracted from relative results. End-demand for this company’s products declined more than anticipated, particularly in its very large North American market.
Despite exiting the year slightly overweight to the Energy sector, an initial underweight allocation to Energy detracted from the Fund’s overall performance. Energy companies benefited from a confluence of events during the period under review, including the Russo-Ukrainian War, limited U.S. production of oil, and increased dividends and stock buybacks.
1. Beta attempts to measure the relative risk. A Beta rating above 1.0 indicates greater volatility than the market. A Beta rating below 1.0 indicates lower volatility than the market.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell 2500™ Index is a market cap-weighted index that includes the smallest 2,500 companies covered in the Russell 3000 universe of United States-based listed equities.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
14
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | Since Inception |
| Class A Shares* | 9/30/16 | -22.86% | 2.44% | 4.82% |
| Class C Shares** | 9/30/16 | -18.83% | 2.88% | 5.07% |
| Institutional Shares | 9/30/16 | -17.95% | 3.92% | 6.12% |
| Russell 2500® Index | 9/30/16 | -21.11% | 5.45% | 7.42% |
| Bloomberg U.S. 2500 | 9/30/16 | -21.99% | 5.08% | 7.16% |
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.
| * | 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). |
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.
The Bloomberg US 2500 Index is a float market-cap-weighted benchmark of the lower 2500 in capitalization of the Bloomberg U.S. 3000 Index.
15
Sterling Capital Mid Cap Relative Value Fund
Portfolio Managers
Sterling Capital Mid Cap Relative Value Fund (the “Fund”) is managed by Portfolio Managers Shawn M. Gallagher, CFA, Executive Director and Andrew T. DiZio, CFA, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Shawn M. Gallagher, CFA
Shawn M. Gallagher, CFA, Executive Director, joined Stratton Management Company in 2005 and Sterling Capital Management as part of a business acquisition in 2015. He has investment experience since 2003 and has been co-portfolio manager of the Mid Cap Value Fund since November 2015. Shawn received his B.S. in Finance from Pennsylvania State University. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia and the CFA Institute.
Andrew T. DiZio, CFA
Andrew T. DiZio, CFA, Executive Director, joined Stratton Management Company in 2012 and Sterling Capital Management as part of a business acquisition in 2015. He has investment experience since 2003. Andy has been co-portfolio manager of the Mid Cap Value Fund since August 2021 and was associate portfolio manager of the Fund from November 2015 to August 2021. Andy received his B.S. in Finance with a minor in Economics from Pennsylvania State University. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia and the CFA Institute.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its benchmark, the Russell Midcap® Value Index.
Q. What factors affected the Fund’s performance?
A. Equity markets peaked at the start of the 12-month period under review. A nearly 20-month-long rally, fueled by economic stimulus that began in March 2020 at the outset of the pandemic, peaked in the middle of November 2021. Worsening supply chain disruptions, inflation concerns, monetary policy uncertainty, and geopolitical risks generated strong economic headwinds that overpowered any optimism generated by a tight labor market. As 2022 progressed, signs that inflation was accelerating pushed the Federal Reserve into an increasingly hawkish posture and led to a series of interest rate hikes that pushed rates to their highest levels in more than a decade. Concerns about inflation soon gave way to fears of an economic slowdown driven by rising rates. As a result, investors moved away from perceived risk in favor of more defensive securities and relative safety. Mid cap equities suffered in this challenging environment. The Fund’s holdings within the Consumer Discretionary, Real Estate, and Health Care sectors dragged on absolute performance, while investments in Energy, Consumer Staples, Industrials, and Utilities sectors added on an absolute basis.
The Fund changed its name on February 1, 2022. The Sterling Capital Stratton Mid Cap Value Fund is now known as the Sterling Capital Mid Cap Relative Value Fund. The management team and the Fund’s objectives remain the same.
Stock selection within the Utilities sector was the biggest detractor from the Fund’s relative performance, along with an underweight allocation to the outperforming sector. The Fund’s investment in a natural gas and propane distributor dragged on relative results as the company’s earnings suffered from unseasonably warm weather domestically and in Europe over the winter. Stock selection in the Materials sector also weighed on results, as the Fund’s exposure to several producers of packaged goods underperformed due to inflationary pressures.
Stock selection within the Industrials sector was the biggest contributor to relative results. In particular, investments in a maker of commercial building materials and a provider of technology services to the U.S. government both outperformed for the period. Stock selection in the Financials and Communication Services sectors also added to results on a relative basis.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell Midcap® Value Index measures the performance of value style of investing in Mid Cap U.S. stocks. The Russell Midcap® Value Index contains those Russell Mid Cap securities with less-than-average growth orientation. Securities in the Russell Midcap® Value Index generally have lower price-to-book and price-to-earnings ratios than those in the Growth Index.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
16
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 11/13/15 | -18.85% | 2.44% | 7.61% |
| Class C Shares** | 11/13/15 | -14.45% | 2.97% | 7.74% |
| Institutional Shares | 9/30/72 | -13.68% | 3.92% | 8.44% |
| Russell Midcap® Value Index | N/A | -13.56% | 4.76% | 9.44% |
| Bloomberg U.S. Mid Cap Value | N/A | -10.14% | 5.98% | 10.41% |
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 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.
| * | 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). |
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.
The Bloomberg US Mid Cap Value Index is a float market-cap-weighted index based on an equal-weighted combination of four factors: earnings yield, valuation, dividend yield, and growth.
17
Sterling Capital Real Estate Fund
Portfolio Managers
Sterling Capital Real Estate Fund (the “Fund”) is managed by Portfolio Managers Andrew T. DiZio, CFA, Executive Director and Shawn M. Gallagher, CFA, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Andrew T. DiZio, CFA
Andrew T. DiZio, CFA, Executive Director, joined Stratton Management Company in 2012 and Sterling Capital Management as part of a business acquisition in 2015. He has investment experience since 2003. Andy is co-portfolio manager of the Real Estate Fund and has managed the Fund since November 2015. Andy received his B.S. in Finance with a minor in Economics from Pennsylvania State University. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia and the CFA Institute.
Shawn M. Gallagher, CFA
Shawn M. Gallagher, CFA, Executive Director, joined Stratton Management Company in 2005 and Sterling Capital Management as part of a business acquisition in 2015. He has investment experience since 2003. Shawn has been co-portfolio manager of the Real Estate Fund since August 2021 and was associate portfolio manager of the Fund from November 2015 to August 2021. Shawn received his B.S. in Finance from Pennsylvania State University. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia and the CFA Institute.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its benchmark, the FTSE NAREIT All Equity REITs Index.
Q. What factors affected the Fund’s performance?
A. The Federal Reserve (Fed) continued to tighten short-term interest rates throughout the 12-month period as it attempted to bring persistently high inflation back under control. The Fed’s actions helped interest rates rise to their highest levels in more than a decade. In particular, the rise in rates for the 10-year U.S. Treasury had a negative effect on REIT share prices over the past 12 months: Higher interest rates tend to negatively impact the value of real estate, as they lead to a reduction in the discounted value of a property’s future cash flow. The Fund’s holdings struggled on an absolute basis in this challenging environment. However, holdings of a few REITs were acquired or taken private at premium valuations during the period, based on negotiations that predated the market declines. These transactions added to the Fund’s absolute returns for the 12-month period under review.
The Fund changed its name on February 1, 2022. The Sterling Capital Stratton Real Estate Fund is now known as the Sterling Capital Real Estate Fund. The management team and the Fund’s objectives remain the same.
The Fund’s stock selection in the Self Storage and Health Care subsectors was the largest detractor from relative results. Within the Fund’s holdings of Self Storage REITs, the lack of exposure to the benchmark’s largest
constituent weighed on results, as the company outperformed after several years of underperformance. Among Health Care names, the Fund’s focus on REITs with concentrations of senior living and hospital properties dragged on relative performance, as REITs with more exposure to skilled nursing outperformed during the period.
The Fund benefited on a relative basis from its stock selection in the Residential and Specialty subsectors. An overweight allocation to a student housing REIT added meaningfully, as the company was taken private in an all-cash transaction. Similarly, the acquisition of a casino landlord by a public competitor added to relative results in the Specialty subsector. The stock-based transaction benefited the Fund, as investors awarded better valuations to casino landlords after their steady rent collection throughout the pandemic.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
FTSE NAREIT All Equity REITs Index contains all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real properly that also meet minimum size and liquidity criteria. The FTSE NAREIT All Equity REITs Index is designed to present investors with a comprehensive family of REIT performance indexes that spans the commercial real estate space across the U.S. economy. The index series provides investors with exposure to all investment and property sectors. In addition, the more narrowly focused property sector and sub-sector indexes provide the facility to concentrate commercial real estate exposure in more selected markets.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
18
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 11/13/15 | -23.27% | 2.90% | 6.13% |
| Class C Shares** | 11/13/15 | -19.19% | 3.36% | 6.22% |
| Institutional Shares | 5/31/08 | -18.39% | 4.39% | 6.95% |
| Class R6 Shares | 1/31/201 | -18.31% | 4.47% | 6.99% |
| S&P 500® Index | N/A | -15.47% | 9.24% | 11.70% |
| FTSE NAREIT All Equity REITs Index | N/A | -16.27% | 4.10% | 6.99% |
| Bloomberg U.S. 3000 REIT2 | N/A | -16.55% | 4.10% | N/A |
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 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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
| 2 | The Bloomberg U.S. 3000 REIT Index began on 9/30/2015, and the line graph for the Index begins at the same value as the Fund’s Institutional Class on that date. |
The Fund is measured against the FTSE NAREIT All Equity REITs 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. The Bloomberg US 3000 REIT Index is a float market-capitalization-weighted index that provides exposure to companies classified as per the Bloomberg Industry Classification System (BICS) with a level 3 sub-industry of REIT.
19
Sterling Capital Small Cap Value Fund
Portfolio Managers
Sterling Capital Small Cap Value Fund (the “Fund”) is managed by Portfolio Managers Gerald M. Van Horn, CFA, Executive Director, Shawn M. Gallagher, CFA, Executive Director and Andrew T. DiZio, CFA, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Gerald M. Van Horn, CFA
Gerald M. Van Horn, CFA, Executive Director, joined Stratton Management Company in 1998 and Sterling Capital as part of a business acquisition in August 2015. He has investment experience since 1996. Jerry has been lead portfolio manager for the Sterling Capital Small Cap Value Fund since inception on November 2015 and the predecessor fund since 2000. He received his B.A. in Economics from The College of New Jersey and holds the Chartered Financial Analyst designation.
Shawn M. Gallagher, CFA
Shawn M. Gallagher, CFA, Executive Director, joined Stratton Management Company in 2005 and Sterling Capital Management as part of a business acquisition in 2015. He has investment experience since 2003 and is associate portfolio manager of the Sterling Capital Small Cap Value Fund. Shawn received his B.S. in Finance from Pennsylvania State University. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia and the CFA Institute.
Andrew T. DiZio, CFA
Andrew T. DiZio, CFA, Executive Director, joined Stratton Management Company in 2012 and Sterling Capital Management as part of a business acquisition in 2015. He has investment experience since 2003 and is associate portfolio manager of the Sterling Capital Small Cap Value Fund. Andy received his B.S. in Finance with a minor in Economics from Pennsylvania State University. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of Philadelphia and the CFA Institute.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its benchmark, the Russell 2000® Value Index.
Q. What factors affected the Fund’s performance?
A. Equity markets experienced a broad-based sell off that began in November 2022 and continued throughout the balance of the 12-month period under review. The Federal Reserve (Fed) continued to tighten short-term interest rates, with the goal of reducing persistently high inflation to historic levels. The Fed’s moves pushed long-term interest rates to their highest levels in 20 years, putting pressure on equity valuations and raising concerns among investors about the potential for a near-term economic slowdown, including the potential for a recession. The Fund’s absolute returns suffered in this challenging environment. In particular, the Fund’s holdings in the Health Care, Materials, and Communication Services sectors lagged on an absolute basis, while holdings in the Consumer Staples, Utilities, and Energy sectors posted the strongest absolute returns for the period.
The Fund changed its name on February 1, 2022. The Sterling Capital Stratton Small Cap Value Fund is now known as the Sterling Capital Small Cap Value Fund. The management team and the Fund’s objectives remain the same.
Stock selection within the Consumer Staples sector was the biggest contributor to the Fund’s relative results, along with an overweight allocation to the sector. In particular, investments in a warehouse club operator and a convenience store operator added to results, as both companies benefited from an increase in price-conscious shopping as consumers responded to higher inflation. Stock selection in the Information Technology sector also added to relative performance, most notably the Fund’s investment in a semiconductor manufacturer, which outperformed. Stock selection in Consumer Discretionary also added to results, as did an underweight allocation to this underperforming sector.
The Fund’s underweight allocation to the outperforming Energy sector weighed on relative results. Stock selection in the Materials sector also lagged on results, as an investment in a diversified specialty chemical company underperformed.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Russell 2000® Value Index measures the performance of value style of investing in small cap U.S. stocks. The Russell 2000® Value Index contains those Russell 2000 securities with less-than-average growth orientation. Securities in the Russell 2000® Value Index generally have lower price-to-book and price-to-earnings ratios than those in the Russell 2000® Growth Index.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
20
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 11/13/15 | -19.07% | 1.97% | 7.81% |
| Class C Shares** | 11/13/15 | -14.79% | 2.42% | 7.89% |
| Institutional Shares | 4/12/93 | -13.93% | 3.45% | 8.63% |
| Class R6 Shares | 1/31/201 | -13.84% | 3.51% | 8.66% |
| Russell 2000® Value Index | N/A | -17.69% | 2.87% | 7.94% |
| Bloomberg U.S. 2000 Value | N/A | -17.07% | 3.66% | 9.01% |
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. The performance shown here (for periods prior to the date of commencement of operations on November 16, 2015) is that of Sterling Capital 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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of 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.
The Bloomberg US 2000 Value Index is a float market-cap-weighted benchmark of the lower 2000 in capitalization of the Bloomberg U.S. 3000 Index that provides exposure to companies with superior value factor scores based on their earnings yield, valuation, dividend yield, and growth.
21
Sterling Capital Ultra Short Bond Fund
Portfolio Managers
Sterling Capital Ultra Short Bond Fund (the “Fund”) is managed by Portfolio Managers Mark M. Montgomery, CFA, Senior Managing Director, Byron G. Mims, CFA, Executive Director, and Jeffrey D. Ormsby, CFA, Executive Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark M. Montgomery, CFA
Mark M. Montgomery, CFA, Senior Managing Director, CIO and Head of Fixed Income, joined Sterling Capital in 1997 and has investment experience since 1990. He has been co-portfolio manager of the Ultra Short Bond Fund since its inception. Mark received his B.S. in Marketing with a minor in Public Administration and his MBA from Drexel University. He holds the Chartered Financial Analyst designation.
Byron G. Mims, CFA
Byron G. Mims, CFA, Executive Director, joined Sterling Capital in 2012 and has investment experience since 2006. He has been co-portfolio manager of the Ultra Short Bond Fund since February 2020. Byron received his B.S. in Economics from North Carolina State University. He holds the Chartered Financial Analyst designation.
Jeffrey D. Ormsby, CFA
Jeffrey D. Ormsby, CFA, Executive Director, joined Sterling Capital in 2011 and has investment experience since 2006. He has been co-portfolio manager of the Ultra Short Bond Fund since February 2020. Jeff received his B.S. in Economics from North Carolina State University and his MBA from UNC’s Kenan-Flagler Business School. He holds the Chartered Financial Analyst designation.
Q. How did the Fund perform during the 12-month period between October 1, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its current benchmark, the FTSE 6 Month Treasury Bill Index.
Q. What factors affected the Fund’s performance?
A. The Federal Reserve hiked rates significantly over the year as higher-than-desired inflation turned out to be more persistent than expected. Interest rates across the curve rose significantly, with the six-month Treasury rate rising 386 basis points from near zero at the beginning of the period and the two-year rate rising over 400 basis points. The dramatic move in rates and the concern that actions by the Federal Reserve may put the economy into a significant recession in order to slow inflation weighed on risk assets, causing them to underperform Treasuries meaningfully.
The Fund was managed with longer duration than the benchmark throughout the year, which detracted from relative performance as interest rates rose significantly. The Fund’s exposure to longer key rates,
which underperformed shorter key rates as the front end of the yield curve steepened, also detracted from relative performance.
The Fund’s exposure to risk assets detracted from relative performance as most risk assets underperformed Treasuries over the period. The switch from accommodative monetary policy to quantitative tightening and large hikes in rates created concern that economic growth may falter, dragging corporate and consumer balance sheets down with it. Exposure to corporate bonds and securitized investments including asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) all hurt relative performance as they underperformed similar-duration Treasuries during the period.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
FTSE 6 Month Treasury Bill Index is an average of the six-month Treasury bill month-end rates from the last six months. This family of indices measures return equivalents of yield averages and the instruments are not marked to market.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
22
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | Since Inception |
| Class A Shares* | 11/30/12 | -1.07% | 1.10% | 0.82% |
| Institutional Shares | 11/30/12 | -0.82% | 1.37% | 1.08% |
| FTSE 6 Month Treasury Bill Index | 11/30/12 | 0.66% | 1.21% | 0.74% |
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.
| * | Reflects 0.5% maximum sales charge. |
The Fund is measured against the FTSE 6 Month Treasury Bill Index, which measures the performance of Treasury bills with a maturity of six months or less. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
23
Sterling Capital Short Duration Bond Fund
Portfolio Managers
Sterling Capital Short Duration Bond Fund (the “Fund”) is managed by Portfolio Managers Mark M. Montgomery, CFA, Senior Managing Director, and Peter L. Brown, CFA, Managing Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark M. Montgomery, CFA
Mark M. Montgomery, CFA, Senior Managing Director, CIO and Head of Fixed Income, joined Sterling Capital in 1997 and has investment experience since 1990. He has been co-portfolio manager of the Short Duration Bond Fund since February 2011. Mark received his B.S. in Marketing with a minor in Public Administration and his MBA from Drexel University. He holds the Chartered Financial Analyst designation.
Peter L. Brown, CFA
Peter L. Brown, CFA, Managing Director, joined Sterling Capital in 2004 and has investment experience since 2000. He has been co-portfolio manager of the Short Duration Bond Fund since February 2020. Pete received a B.S. in Statistics with minors in Business Management, Marketing and Communications from Cornell University, and a MBA from Wake Forest University. He holds the Chartered Financial Analyst designation.
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, 2021, and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the ICE BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index.
Q. What factors affected the Fund’s performance?
A. A sustained rise in inflation forced the Federal Reserve (Fed) to enact restrictive monetary policy, which drove a rapid rise in interest rates and a sharp drop in bond prices.
The shift in the Fed’s policy stance prompted investors to lower their expectations for economic growth. The combination of higher interest rate volatility and a worsening growth outlook lowered demand for non-government asset classes such as corporate bonds and securitized assets. This trend dragged on the Fund’s absolute returns.
The Fund’s duration was managed short of the benchmark and therefore, the portfolio was less sensitive to interest rate movements. The large increase in interest rates therefore, benefitted the Fund relative to the benchmark.
The front end of the yield curve, which is more sensitive to real and projected changes to the federal funds rate, moved higher at a much faster pace than the long end of the curve, which is more sensitive to long-term growth expectations. The Fund benefitted from this move through its barbelled curve positioning, whereby it carried an overweight allocation to the 5-year portion of the curve while underweighting the 1-to 2-year portion of the curve.
Municipal securities generally performed better than corporate bonds and other risk assets as investors looked for safer investments. The Fund’s overweight allocation to taxable municipals boosted relative returns.
The Fund began the period with an overweight allocation to corporate bonds and other non-government asset classes, such as asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS), as compared to Treasuries. The deteriorating growth outlook and aggressive global monetary policy shift caused investors to seek safety in Treasuries, causing a widening in risk premia for corporate bonds, ABS and CMBS, which weighed on the Fund’s relative performance.
The early part of 2022 was marked by heavy corporate issuance in the financial sector as banks and insurance companies sought to secure funding before an expected increase in interest rates. This jump in supply weighed on returns of financials and dragged on the Fund’s relative performance due to its overweight allocation to the sector.
The general risk-off tone to the market during the period caused lower quality securities to underperform higher quality ones. The Fund’s overweight to below investment grade and BBB-rated securities versus A-rated and AA-rated bonds also detracted from relative returns.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
ICE BofA 1-3 Year U.S. Corporate/Government Index includes fixed rate debt issues rated investment grade or higher by Moody’s and S&P. All issues have at least one year to three years to maturity and an outstanding par value of at least $300 million. All returns are market value weighted inclusive of accrued interest. The total return includes price appreciation/depreciation and income as a percentage of the original investment. The total return index is rebalanced monthly by market capitalization.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
24
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 11/30/92 | -6.95% | 0.45% | 0.77% |
| Class C Shares** | 1/31/12 | -5.73% | 0.11% | 0.22% |
| Institutional Shares | 11/30/92 | -4.78% | 1.12% | 1.23% |
| Class R6 Shares | 2/1/211 | -4.70% | 0.99% | 1.03% |
| ICE BofA Merrill Lynch 1-3 Year U.S. Corporate Government Index | N/A | -5.15% | 0.71% | 0.82% |
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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
The Fund is measured against the ICE 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.
25
Sterling Capital Intermediate U.S. Government Fund
Portfolio Managers
Sterling Capital Intermediate U.S. Government Fund (the “Fund”) is managed by Executive Directors and Portfolio Managers Michael Sun and Jeffrey D. Ormsby, CFA for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Michael Z. Sun, CFA
Michael Z. Sun, CFA, Executive Director, joined Sterling Capital in 2009 and has investment experience since 1998. He has been co-portfolio manager of the Intermediate U.S. Government Fund since February 2019. Michael received his M.A. in Economics from Bowling Green State University, his M.S. in Urban & Regional Study from Beijing University and his B.S. in Geography from Nanjing University. He holds the Chartered Financial Analyst designation.
Jeffrey D. Ormsby, CFA
Jeffrey D. Ormsby, CFA, Executive Director, joined Sterling Capital in 2011 and has investment experience since 2006. He has been co-portfolio manager of the Ultra Short Bond Fund since February 2020. Jeff received his B.S. in Economics from North Carolina State University and his MBA from UNC’s Kenan-Flagler Business School. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its current benchmark, the Bloomberg U.S. Government Intermediate Index.
Q. What factors affected the Fund’s performance?
A. The Federal Reserve (Fed) raised short-term interest rates five times during the 12-month period under review. The increases amounted to a cumulative rate hike of 3% and were aimed at curbing the highest rate of inflation experienced in the U.S. since the 1980s. Rising interest rates were expected to slow economic growth, but there remained much uncertainty on whether the Fed could avoid a sharp economic downturn as it cooled inflation. Fearing a possible recession, investors flocked to traditionally safer assets, such as Treasuries, which caused these securities to outperform other fixed-income products with similar durations.
The Fund’s heavy exposure to agency mortgages hurt its relative performance, as agency mortgages underperformed Treasuries of the same duration. Rising interest rates caused borrowers to make fewer voluntary prepayments, which in turn increased the duration of the securities.
Extending the Fund’s duration further dragged on performance. Another factor in the Fund’s underperformance, was its off-benchmark exposure to corporate bonds, asset-backed securities, and commercial mortgage-backed securities. These types of securities all underperformed as investors adopted a risk-off attitude during the period and fled to the relative safety of Treasuries.
The Fund’s relative returns benefited from its bias toward securities with longer durations, as long-term Treasury yields rose less than short-term yields.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Bloomberg Intermediate Government Index is an unmanaged index composed of securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities. It is not possible to invest in the Bloomberg Intermediate Government Index, which is unmanaged and does not incur fees and charges.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
26
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 10/9/92 | -12.90% | -1.03% | -0.26% |
| Class C Shares** | 2/1/01 | -11.81% | -1.38% | -0.82% |
| Institutional Shares | 10/9/92 | -10.90% | -0.41% | 0.18% |
| Bloomberg U.S. Government Intermediate Index | N/A | -9.18% | 0.18% | 0.59% |
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.
| * | Reflects 2% 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). |
The Fund is measured against the Bloomberg 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.
27
Sterling Capital Total Return Bond Fund
Portfolio Managers
Sterling Capital Total Return Bond Fund (the “Fund”) is managed by Portfolio Managers Mark M. Montgomery, CFA, Senior Managing Director, and Peter L. Brown, CFA, Managing Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark M. Montgomery, CFA
Mark M. Montgomery, CFA, Senior Managing Director, CIO and Head of Fixed Income, joined Sterling Capital in 1997 and has investment experience since 1990. He has been co-portfolio manager of the Total Return Bond Fund since January 2008. Mark received his B.S. in Marketing with a minor in Public Administration and his MBA from Drexel University. He holds the Chartered Financial Analyst designation.
Peter L. Brown, CFA
Peter L. Brown, CFA, Managing Director, joined Sterling Capital in 2004 and has investment experience since 2000. He has been co-portfolio manager of the Total Return Bond Fund since February 2020. Pete received a B.S. in Statistics with minors in Business Management, Marketing and Communications from Cornell University, and a MBA from Wake Forest University. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its current benchmark, the Bloomberg U.S. Aggregate Bond Index.
Q. What factors affected the Fund’s performance?
A. A sustained rise in inflation during the period forced the Federal Reserve (Fed) to enact restrictive monetary policy, which drove a rapid rise in interest rates and a sharp drop in bond prices.
The shift in the Fed’s policies prompted investors to lower their expectations for economic growth. The combination of higher interest rate volatility and a worsening growth outlook lowered demand for non-government asset classes such as corporate bonds and securitized assets. This trend dragged on the Fund’s absolute returns.
The Fund began the period with an overweight allocation to corporate bonds and other non-government asset classes, such as asset-back securities (ABS) and commercial mortgage-backed securities CMBS, as compared to Treasuries. The deteriorating outlook for economic growth and aggressive global monetary policy shift caused investors to seek safety in Treasuries. This, in turn, caused a widening in risk premia for corporate bonds, ABS and CMBS, which weighed on the Fund’s relative performance.
The early part of 2022 witnessed heavy corporate bond issuance in the financial sector as banks and insurance companies sought to secure funding before an expected increase in interest rates. The jump in supply weighed on the returns of financials and hurt the Fund’s relative performance due to an above-benchmark exposure to the sector.
The general risk-off tone to the market during the period caused lower quality securities to underperform higher quality ones. As a result, the Fund’s overweight allocation to BBB-rated securities versus A-rated and AA-rated bonds also detracted from relative returns.
The Fund’s duration was managed short of the benchmark and therefore the portfolio was less sensitive to moves in interest rates. The large increase in interest rates therefore benefitted the Fund versus the benchmark. The front end of the yield curve, which is more sensitive to real changes and projected changes to the federal funds rate, moved higher at a much faster pace than the long end of the curve, which is more sensitive to long-term growth expectations. The Fund benefitted from this move through its barbelled curve positioning, whereby the Fund carried an overweight allocation to the 20-year and 30-year parts of the curve while it underweighted the 5- to 10-year area.
The Fed’s plan to end their monthly asset purchase program and to begin shrinking their balance sheet caused turmoil in the market for agency mortgage-backed securities (MBS). Exceptionally high levels of interest rate volatility contributed to the weakness in the sector as well. The Fund’s underweight to agency MBS in favor of ABS and CMBS boosted relative returns.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-troughs), ABS and CMBS (agency and non-agency).
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
28
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 11/30/99 | -19.81% | -1.21% | 0.58% |
| Class C Shares** | 2/1/01 | -15.64% | -0.79% | 0.41% |
| Institutional Shares | 11/30/99 | -14.81% | 0.20% | 1.42% |
| Class R6 Shares | 1/31/181 | -14.72% | 0.30% | 1.47% |
| Bloomberg U.S. Aggregate Bond Index | N/A | -14.60% | -0.27% | 0.89% |
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.
| * | 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). |
| 1 | Class R6 Shares were not in existence prior to 2/1/18. Performance for periods prior to 2/1/18 is based on the performance of Institutional Shares. |
The Fund is measured against the Bloomberg 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.
29
Sterling Capital Long Duration Corporate Bond Fund
Portfolio Managers
Sterling Capital Long Duration Corporate Bond Fund (the “Fund”) is managed by Portfolio Managers Mark M. Montgomery, CFA, Senior Managing Director, and Peter L. Brown, CFA, Managing Director, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Mark M. Montgomery, CFA
Mark M. Montgomery, CFA, Senior Managing Director, CIO and Head of Fixed Income, joined Sterling Capital in 1997 and has investment experience since 1990. He has been co-portfolio manager of the Corporate Fund since inception. Mark received his B.S. in Marketing with a minor in Public Administration and his MBA from Drexel University. He holds the Chartered Financial Analyst designation.
Peter L. Brown, CFA
Peter L. Brown, CFA, Managing Director, joined Sterling Capital in 2004 and has investment experience since 2000. He has been co-portfolio manager of the Corporate Fund since February 2020. Pete received a B.S. in Statistics with minors in Business Management, Marketing and Communications from Cornell University, and a MBA from Wake Forest University. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares underperformed its current benchmark, the Bloomberg Long U.S. Corporate Index.
Q. What factors affected the Fund’s performance?
A. A sustained rise in inflation forced the Federal Reserve (Fed) to enact restrictive monetary policies, which drove a rapid rise in interest rates and a sharp drop in bond prices. The shift in the Fed’s policy stance prompted investors to lower their expectations for economic growth. The combination of higher interest rate volatility and a worsening growth outlook lowered demand for non-government asset classes, especially corporate bonds.
On January 31, 2022, the Fund’s name changed from the Sterling Capital Corporate Bond Fund to the Sterling Capital Long Duration Corporate Bond Fund. At that time, the Fund’s benchmark changed from the Bloomberg U.S. Intermediate Corporate Bond Index to the Bloomberg U.S. Long Corporate Bond Index. This shift required a significant extension of the average maturity and duration of the Fund’s holdings.
Before the benchmark change, below-investment grade holdings in a pharmaceutical company and an aluminum manufacturer underperformed their investment grade counterparts, detracting from the Fund’s relative performance. An underweight allocation to an airplane manufacturer also weighed on relative returns as the company outperformed with the recovery in global travel.
The Fund’s shorter duration positioning made it less sensitive to interest rate risk than the benchmark, which boosted relative returns. Positions in the Energy sector benefitted the Fund’s relative returns after the energy industry experienced a sustained period of ratings upgrades in 2021. And the Fund’s off-benchmark position in below investment grade securities also boosted results relative to its benchmark.
The early part of 2022, witnessed heavy corporate issuance in the financial sector, which weighed on that sector’s returns. This trend developed after the Fund’s strategy shift and hurt the Fund’s relative performance due to an overweight to Financials. The general risk-off tone to the market during the period caused lower quality securities to underperform higher quality, and the Fund’s overweight to BBB-rated securities, also contributed negatively to relative returns.
An underweighting to 20-year Treasuries boosted relative returns as they underperformed the longer end of the curve. The Fund’s non-index position in Treasury securities helped boost relative returns. An overweight position to the utility sector also helped; as essential services, utilities are generally less sensitive to economic cycles.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Bloomberg Long U.S. Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers that have a remaining maturity of ten years or more.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
30
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 1/31/131 | -29.19% | -3.49% | -0.46% |
| Class C Shares** | 1/31/131 | -28.37% | -3.80% | -0.99% |
| Institutional Shares | 6/30/112 | -27.52% | -2.84% | -0.02% |
| Class R6 Shares | 1/31/223 | -27.47% | -2.82% | -0.01% |
| Bloomberg Long U.S. Corporate Index | N/A | -28.40% | 1.14% | 1.80% |
| Bloomberg Corporate Intermediate Bond Index | N/A | -12.30% | 0.65% | 1.75% |
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.
| * | Reflects 2% 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). |
| 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. |
| 3 | Class R6 Shares were not in existence prior to 1/31/22. Performance for periods prior to 1/31/22 is based on the performance of Institutional Shares. |
The Fund is measured against the Bloomberg U.S. Long Corporate Bond Index, which measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers that have a remaining maturity of ten years or more. 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.
31
Sterling Capital Quality Income Fund
Portfolio Managers
Sterling Capital Quality Income Fund (the “Fund”) is managed by Executive Directors and portfolio managers Michael Z. Sun, CFA, Jeffrey D. Ormsby, CFA and Byron G. Mims, CFA, for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Michael Z. Sun, CFA
Michael Z. Sun, CFA, Executive Director, joined Sterling Capital in 2009 and has investment experience since 1998. He has been co-portfolio manager of the Quality Income Fund since February 2014. Michael received his M.A. in Economics from Bowling Green State University, his M.S. in Urban & Regional Study from Beijing University and his B.S. in Geography from Nanjing University. He holds the Chartered Financial Analyst designation.
Jeffrey D. Ormsby, CFA
Jeffrey D. Ormsby, CFA, Executive Director, joined Sterling Capital in 2011 and has investment experience since 2006. He has been co-portfolio manager of the Quality Income Fund since February 2016. Jeff received his B.S. in Economics from North Carolina State University and his MBA from UNC’s Kenan-Flagler Business School. He holds the Chartered Financial Analyst designation.
Byron G. Mims, CFA
Byron G. Mims, CFA, Executive Director, joined Sterling Capital in 2012 and has investment experience since 2006. He has been co-portfolio manager of the Quality Income Fund since February 2016. Byron received his B.S. in Economics from North Carolina State University. He holds the Chartered Financial Analyst designation.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its benchmark, the Bloomberg U.S. Mortgage Backed Securities Index.
Q. What factors affected the Fund’s performance?
A. This year was dominated by shifting monetary policy, as persistently high and broadening inflation drove the Federal Reserve to quickly wind down quantitative easing (QE) early in 2022, initiate and then substantially accelerate their pace of interest rate hikes in the Spring and Summer, and actively shift towards quantitative tightening (QT) via balance sheet runoff in September of 2022. This sharp pace of policy tightening had a significant impact on market interest rates, with two-year Treasury yields rising just over 4 percent during the period, with 10-year rates rose 2.37 percent.
Absolute performance was negative across all major subsectors given the sharp rise in interest rates across the yield curve. Agency MBS posted the largest negative absolute performance as sharply higher interest rates caused agency MBS durations to extend as prepayment speed expectations declined. Additionally, spreads in the agency MBS sector widened significantly following the Federal Reserve’s shift from supporting MBS valuations via QE to allowing its balance sheet to shrink via QT by the end of the period.
From a relative perspective, the fund’s underweight to agency MBS in favor of agency CMOs, consumer ABS, and non-agency CMBS all contributed positively to relative performance. While consumer ABS and non-agency CMBS moderately lagged Treasuries during the period as concerns about a potential economic slowdown grew, both sectors easily outperformed agency MBS during the period. Security selection within our agency MBS holdings also contributed to relative outperformance due to our underweight on lower coupon securities, which materially lagged higher coupon securities as the Fed exited that market.
The largest driver of relative outperformance came from the fund’s short duration positioning relative to the benchmark, which allowed for significant outperformance given the sharp move up in interest rates. On the negative side, the Fund’s overweight to the front-end of the yield curve and underweight to 10-year and longer parts of the curve detracted from relative performance as the curve bear flattened during the period, with short term yields rising significantly more than longer term yields.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
Bloomberg U.S. Mortgage Backed Securities Index covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). It is formed by grouping the universe of individual fixed rate MBS pools into generic aggregates.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
32
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 1/31/131 | -12.67% | -0.52% | 0.73% |
| Class C Shares** | 1/31/131 | -11.45% | -0.82% | 0.24% |
| Institutional Shares | 6/30/112 | -10.69% | 0.12% | 1.19% |
| Bloomberg U.S. Mortgage Backed Securities Index | N/A | -13.98% | -0.92% | 0.51% |
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.
| * | Reflects 2% 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). |
| 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 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.
33
Sterling Capital North Carolina Intermediate Tax-Free Fund
Portfolio Managers
Sterling Capital North Carolina Intermediate Tax-Free Fund (the “Fund”) is managed by Portfolio Managers Robert F. Millikan, CFA, Executive Director and Michael P. McVicker, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert F. Millikan, CFA
Robert F. Millikan, CFA, Executive Director, joined BB&T Asset Management in 2000 and Sterling Capital through merger in October 2010. He has investment experience since 1990 and joined the team that manages each of the Tax-Free Bond Funds in February 2000. He is a graduate of Wake Forest University where he received his B.A. in Economics. He holds the Chartered Financial Analyst designation.
Michael P. McVicker
Michael P. McVicker, Executive Director, joined Sterling Capital in 1992 and has investment experience since 1992. He has been associate portfolio manager for each of the Tax-Free Bond Funds since February 2016. Michael is a graduate of the University of North Carolina – Charlotte where he received his B.S.B.A. in Finance with a minor in Psychology.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. In response to the highest inflation levels experienced in decades, the Federal Reserve (Fed) pursued a series of aggressive hikes in the federal funds rate. The rate hikes drove an increase in interest rates across the entire yield curve, although short-term rates rose higher than long-term rates, leading to an inversion of the two-year to 10-year yield curve. Low unemployment and strong economic activity drove the Fed to raise rates five times during the 12-month period. The Fed raised the federal funds rate target by 25 and 50 basis points in March and May, respectively. They then opted for super-sized increases of 75 basis points each in June, July, and September. The cumulative rate increase was 300 basis points or 3% for the period. Consequently, one-year AAA municipal rates began at 0.13% and ended at 3.06%. Five-year rates began at 0.50% and ended at 3.12%. Ten-year rates began at 1.14% and ended at 3.30%. Twenty-year
rates began at 1.47% and ended at 3.73%. A year of rising rates hurt the absolute performance of the Fund as bond prices move in the opposite direction of yields.
Anticipating rate hikes, the Fund reduced its average duration, which contributed to its outperformance relative to its benchmark. The Fund’s bias toward securities with AAA and AA ratings was also a contributing factor, as higher-quality bonds outperformed lower-quality bonds for the period as investors adopted a risk-off attitude for most of the period.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and dollar denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities. It is not possible to invest in the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index, which is unmanaged and does not incur fees and charges.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
34
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 10/16/92 | -10.71% | -0.45% | 0.51% |
| Class C Shares** | 1/31/12 | -9.61% | -0.79% | -0.04% |
| Institutional Shares | 10/16/92 | -8.78% | 0.18% | 0.96% |
| ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | -9.43% | 0.69% | 1.66% |
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.
| * | Reflects 2% 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). |
The Fund is measured against the ICE 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.
35
Sterling Capital South Carolina Intermediate Tax-Free Fund
Portfolio Managers
Sterling Capital South Carolina Intermediate Tax-Free Fund (the “Fund”) is managed by Portfolio Managers Robert F. Millikan, CFA, Executive Director and Michael P. McVicker, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert F. Millikan, CFA
Robert F. Millikan, CFA, Executive Director, joined BB&T Asset Management in 2000 and Sterling Capital through merger in October 2010. He has investment experience since 1990 and joined the team that manages each of the Tax-Free Bond Funds in February 2000. He is a graduate of Wake Forest University where he received his B.A. in Economics. He holds the Chartered Financial Analyst designation.
Michael P. McVicker
Michael P. McVicker, Executive Director, joined Sterling Capital in 1992 and has investment experience since 1992. He has been associate portfolio manager for each of the Tax-Free Bond Funds since February 2016. Michael is a graduate of the University of North Carolina – Charlotte where he received his B.S.B.A. in Finance with a minor in Psychology.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. In response to the highest inflation levels experienced in decades, the Federal Reserve (Fed) pursued a series of aggressive hikes in the federal funds rate. The rate hikes drove an increase in interest rates across the entire yield curve, although short-term rates rose higher than long-term rates, leading to an inversion of the two-year to 10-year yield curve. Low unemployment and strong economic activity drove the Fed to raise rates five times during the 12-month period. The Fed raised the federal funds rate target by 25 and 50 basis points in March and May, respectively. They then opted for super-sized increases of 75 basis points each in June, July, and September. The cumulative rate increase was 300 basis points or 3% for the period. Consequently, one-year AAA municipal rates began at 0.13% and ended at 3.06%. Five-year rates began at 0.50% and ended at 3.12%. Ten-year rates began at 1.14% and ended at 3.30%. Twenty-year rates began at 1.47% and ended at 3.73%. A year of rising rates hurt the
absolute performance of the Fund as bond prices move in the opposite direction of yields.
Anticipating rate hikes, the Fund reduced its average duration, which contributed to its outperformance relative to its benchmark. The Fund’s bias toward higher-quality bonds and underweighting toward BBB-rated bonds benefitted relative performance. Higher-quality bonds outperformed lower-quality bonds as investors adopted a risk-off attitude for most of the period.
Volatility in the market prompted a greater volume of buying and selling within the Fund, which led to an increase in the Fund’s transaction costs. These costs were a minor drag on performance relative to the benchmark.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and dollar denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities. It is not possible to invest in the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index, which is unmanaged and does not incur fees and charges.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
36
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 10/20/97 | -10.47% | -0.30% | 0.69% |
| Class C Shares** | 1/31/12 | -9.27% | -0.64% | 0.14% |
| Institutional Shares | 10/20/97 | -8.42% | 0.35% | 1.15% |
| ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | -9.43% | 0.69% | 1.66% |
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.
| * | Reflects 2% 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). |
The Fund is measured against the ICE 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.
37
Sterling Capital Virginia Intermediate Tax-Free Fund
Portfolio Managers
Sterling Capital Virginia Intermediate Tax-Free Fund (the “Fund”) is managed by Portfolio Managers Robert F. Millikan, CFA, Executive Director and Michael P. McVicker, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert F. Millikan, CFA
Robert F. Millikan, CFA, Executive Director, joined BB&T Asset Management in 2000 and Sterling Capital through merger in October 2010. He has investment experience since 1990 and joined the team that manages each of the Tax-Free Bond Funds in February 2000. He is a graduate of Wake Forest University where he received his B.A. in Economics. He holds the Chartered Financial Analyst designation.
Michael P. McVicker
Michael P. McVicker, Executive Director, joined Sterling Capital in 1992 and has investment experience since 1992. He has been associate portfolio manager for each of the Tax-Free Bond Funds since February 2016. Michael is a graduate of the University of North Carolina – Charlotte where he received his B.S.B.A. in Finance with a minor in Psychology.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. In response to the highest inflation levels experienced in decades, the Federal Reserve (Fed) pursued a series of aggressive hikes in the federal funds rate. The rate hikes drove an increase in interest rates across the entire yield curve, although short-term rates rose higher than long-term rates, leading to an inversion of the two-year to 10-year yield curve. Low unemployment and strong economic activity drove the Fed to raise rates five times during the 12-month period. The Fed raised the federal funds rate target by 25 and 50 basis points in March and May, respectively. The Fed then opted for super-sized increases of 75 basis points each in June, July, and September. The cumulative rate increase was 300 basis points or 3% for the period. Consequently, one-year AAA municipal rates began at 0.13% and ended at 3.06%. Five-year rates began at 0.50% and ended at 3.12%. Ten-year rates began at 1.14% and ended at 3.30%. Twenty-year rates began at 1.47% and ended at 3.73%. A year of rising rates hurt the
absolute performance of the Fund as bond prices move in the opposite direction of yields.
Anticipating rate hikes, the Fund reduced its average duration, which contributed to its outperformance relative to its benchmark. The Fund’s bias toward securities with AAA and AA ratings was also a contributing factor, as higher-quality bonds outperformed lower-quality bonds for the period as investors adopted a risk-off attitude for most of the period.
Volatility in the market prompted a greater volume of buying and selling within the Fund, which led to an increase in the Fund’s transaction costs. These costs were a minor drag on performance relative to the benchmark.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and dollar denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities. It is not possible to invest in the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index, which is unmanaged and does not incur fees and charges.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
38
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 5/17/99 | -10.51% | -0.44% | 0.47% |
| Class C Shares** | 1/31/12 | -9.32% | -0.78% | -0.08% |
| Institutional Shares | 5/17/99 | -8.41% | 0.22% | 0.93% |
| ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | -9.43% | 0.69% | 1.66% |
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.
| * | Reflects 2% 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). |
The Fund is measured against the ICE 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 West Virginia Intermediate Tax-Free Fund
Portfolio Managers
Sterling Capital West Virginia Intermediate Tax-Free Fund (the “Fund”) is managed by Portfolio Managers Robert F. Millikan, CFA, Executive Director and Michael P. McVicker, Executive Director for Sterling Capital Management LLC (“Sterling Capital”), advisor to the Fund.
Robert F. Millikan, CFA
Robert F. Millikan, CFA, Executive Director, joined BB&T Asset Management in 2000 and Sterling Capital through merger in October 2010. He has investment experience since 1990 and joined the team that manages each of the Tax-Free Bond Funds in February 2000. He is a graduate of Wake Forest University where he received his B.A. in Economics. He holds the Chartered Financial Analyst designation.
Michael P. McVicker
Michael P. McVicker, Executive Director, joined Sterling Capital in 1992 and has investment experience since 1992. He has been associate portfolio manager for each of the Tax-Free Bond Funds since February 2016. Michael is a graduate of the University of North Carolina – Charlotte where he received his B.S.B.A. in Finance with a minor in Psychology.
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, 2021 and September 30, 2022?
A. The Fund’s Institutional Shares outperformed its current benchmark, the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index.
Q. What factors affected the Fund’s performance?
A. In response to the highest inflation levels experienced in decades, the Federal Reserve (Fed) pursued a series of aggressive hikes in the federal funds rate. The rate hikes drove an increase in interest rates across the entire yield curve, although short-term rates rose higher than long-term rates, leading to an inversion of the two-year to 10-year yield curve. Low unemployment and strong economic activity drove the Fed to raise rates five times during the 12-month period. The Fed raised the federal funds rate target by 25 and 50 basis points in March and May, respectively. They then opted for super-sized increases of 75 basis points each in June, July, and September. The cumulative rate increase was 300 basis points or 3% for the period. Consequently, one-year AAA municipal rates began at 0.13% and ended at 3.06%. Five-year rates began at 0.50% and ended at 3.12%. Ten-year rates began at 1.14% and ended at 3.30%. Twenty-year rates began at 1.47% and ended at 3.73%. A year of rising rates hurt the
absolute performance of the Fund as bond prices move in the opposite direction of yields.
Anticipating rate hikes, the Fund reduced its average duration, which contributed to its outperformance relative to its benchmark. The Fund’s bias toward securities with AAA and AA ratings was also a contributing factor, as higher-quality bonds outperformed lower-quality bonds for the period as investors adopted a risk-off attitude for most of the period.
Volatility in the market prompted a greater volume of buying and selling within the Fund, which led to an increase in the Fund’s transaction costs. These costs were a minor drag on performance relative to the benchmark.
A Note on Indices: The volatility of an index varies greatly. All indices are unmanaged and investments cannot be made directly in an index.
ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index is an unmanaged index composed of securities that are SEC-registered, tax-exempt, and dollar denominated. The index covers the intermediate U.S. investment grade fixed rate municipal bond market, with index components for municipal securities. It is not possible to invest in the ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index, which is unmanaged and does not incur fees and charges.
Portfolio composition is as of September 30, 2022 and is subject to change and risk.
40
| Average Annual Total Returns | ||||
| As of September 30, 2022 | Inception Date | 1 Year | 5 Years | 10 Years |
| Class A Shares* | 12/17/93 | -10.03% | -0.16% | 0.75% |
| Class C Shares** | 1/31/12 | -8.85% | -0.53% | 0.20% |
| Institutional Shares | 12/1/93 | -7.93% | 0.49% | 1.21% |
| ICE BofA Merrill Lynch 2-17 Year Municipal Bond Index | N/A | -9.43% | 0.69% | 1.66% |
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.
| * | Reflects 2% 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). |
The Fund is measured against the ICE 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 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, 2022:
| Percentage | ||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | of net assets | |||
| Aerospace & Defense | 3.1 | % | ||
| Air Freight & Logistics | 2.2 | % | ||
| Automobiles | 0.5 | % | ||
| Banks | 6.1 | % | ||
| Biotechnology | 7.3 | % | ||
| Building Products | 0.4 | % | ||
| Capital Markets | 5.8 | % | ||
| Chemicals | 2.6 | % | ||
| Communications Equipment | 0.2 | % | ||
| Consumer Finance | 1.0 | % | ||
| Diversified Consumer Services | 0.6 | % | ||
| Diversified Financial Services | 0.3 | % | ||
| Diversified Telecommunication Services | 2.5 | % | ||
| Electric Utilities | 3.7 | % | ||
| Electrical Equipment | 0.5 | % | ||
| Electronic Equipment, Instruments & Components | 0.5 | % | ||
| Equity Real Estate Investment Trusts (REITs) | 5.2 | % | ||
| Food & Staples Retailing | 1.9 | % | ||
| Food Products | 3.7 | % | ||
| Gas Utilities | 0.5 | % | ||
| Health Care Providers & Services | 7.9 | % | ||
| Hotels, Restaurants & Leisure | 0.4 | % | ||
| Household Products | 0.4 | % | ||
| Insurance | 4.5 | % | ||
| IT Services | 3.4 | % | ||
| Machinery | 2.3 | % | ||
| Media | 4.7 | % | ||
| Metals & Mining | 1.5 | % | ||
| Mortgage Real Estate Investment Trusts (REITs) | 0.8 | % | ||
| Multi-Utilities | 2.6 | % | ||
| Oil, Gas & Consumable Fuels | 8.8 | % | ||
| Pharmaceuticals | 4.5 | % | ||
| Semiconductors & Semiconductor Equipment | 3.3 | % | ||
| Specialty Retail | 2.8 | % | ||
| Technology Hardware, Storage & Peripherals | 0.6 | % | ||
| Thrifts & Mortgage Finance | 0.4 | % | ||
| Tobacco | 1.7 | % | ||
| Trading Companies & Distributors | 0.3 | % | ||
| Money Market Fund | 0.2 | % | ||
| 99.7 | % | |||
| Percentage | ||||
| Sterling Capital Mid Value Fund | of net assets | |||
| Auto Components | 2.5 | % | ||
| Banks | 6.0 | % | ||
| Chemicals | 4.0 | % | ||
| Consumer Finance | 4.6 | % | ||
| Containers & Packaging | 3.2 | % | ||
| Electric Utilities | 3.4 | % | ||
| Electrical Equipment | 2.3 | % | ||
| Energy Equipment & Services | 0.7 | % | ||
| Entertainment | 2.5 | % | ||
| Health Care Providers & Services | 15.8 | % | ||
| Hotels, Restaurants & Leisure | 2.0 | % | ||
| Household Durables | 3.9 | % | ||
| Household Products | 1.4 | % | ||
| Insurance | 9.6 | % | ||
| Interactive Media & Services | 1.3 | % | ||
| Internet & Direct Marketing Retail | 1.3 | % | ||
| IT Services | 5.2 | % | ||
| Machinery | 3.2 | % | ||
| Media | 2.6 | % | ||
| Oil, Gas & Consumable Fuels | 4.3 | % | ||
| Professional Services | 5.5 | % | ||
| Real Estate Management & Development | 2.6 | % | ||
| Software | 2.8 | % | ||
| Specialty Retail | 1.8 | % | ||
| Thrifts & Mortgage Finance | 3.1 | % | ||
| Trading Companies & Distributors | 2.3 | % | ||
| Money Market Fund | 2.1 | % | ||
| 100.0 | % | |||
42
| Sterling Capital Funds |
Summary of Portfolio Holdings (Unaudited)
| Percentage | ||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | of net assets | |||
| Aerospace & Defense | 0.2 | % | ||
| Air Freight & Logistics | 1.7 | % | ||
| Airlines | 0.3 | % | ||
| Automobiles | 0.4 | % | ||
| Banks | 18.1 | % | ||
| Building Products | 1.3 | % | ||
| Chemicals | 1.8 | % | ||
| Commercial Services & Supplies | 1.3 | % | ||
| Communications Equipment | 0.3 | % | ||
| Construction & Engineering | 0.3 | % | ||
| Consumer Finance | 2.3 | % | ||
| Diversified Consumer Services | 1.1 | % | ||
| Diversified Financial Services | 0.8 | % | ||
| Diversified Telecommunication Services | 0.9 | % | ||
| Electric Utilities | 1.9 | % | ||
| Electrical Equipment | 0.8 | % | ||
| Electronic Equipment, Instruments & Components | 2.8 | % | ||
| Energy Equipment & Services | 0.4 | % | ||
| Equity Real Estate Investment Trusts (REITs). | 7.7 | % | ||
| Food & Staples Retailing | 2.1 | % | ||
| Food Products | 0.2 | % | ||
| Gas Utilities | 0.8 | % | ||
| Health Care Equipment & Supplies | 1.7 | % | ||
| Health Care Providers & Services | 4.6 | % | ||
| Health Care Technology | 0.8 | % | ||
| Hotels, Restaurants & Leisure | 0.3 | % | ||
| Household Durables | 1.6 | % | ||
| Independent Power and Renewable Electricity Producers | 0.3 | % | ||
| Insurance | 3.3 | % | ||
| Interactive Media & Services | 0.4 | % | ||
| IT Services | 0.4 | % | ||
| Leisure Products | 0.0 | %* | ||
| Marine | 1.4 | % | ||
| Media | 1.1 | % | ||
| Metals & Mining | 1.9 | % | ||
| Mortgage Real Estate Investment Trusts (REITs) | 1.9 | % | ||
| Multiline Retail | 1.2 | % | ||
| Multi-Utilities | 1.6 | % | ||
| Oil, Gas & Consumable Fuels | 4.9 | % | ||
| Paper & Forest Products | 0.3 | % | ||
| Pharmaceuticals | 3.4 | % | ||
| Professional Services | 0.7 | % | ||
| Real Estate Management & Development | 3.0 | % | ||
| Road & Rail | 1.8 | % | ||
| Semiconductors & Semiconductor Equipment | 3.0 | % | ||
| Specialty Retail | 4.8 | % | ||
| Textiles, Apparel & Luxury Goods. | 0.4 | % | ||
| Thrifts & Mortgage Finance | 3.0 | % | ||
| Tobacco | 0.4 | % | ||
| Trading Companies & Distributors | 3.1 | % | ||
| Wireless Telecommunication Services | 0.3 | % | ||
| Money Market Fund | 0.6 | % | ||
| 99.7 | % | |||
| Percentage | ||||
| Sterling Capital Special Opportunities Fund | of net assets | |||
| Aerospace & Defense | 1.7 | % | ||
| Auto Components | 3.0 | % | ||
| Biotechnology | 2.9 | % | ||
| Capital Markets | 8.0 | % | ||
| Communications Equipment | 3.5 | % | ||
| Consumer Finance | 1.7 | % | ||
| Containers & Packaging | 2.3 | % | ||
| Electronic Equipment, Instruments & Components | 1.9 | % | ||
| Entertainment | 3.4 | % | ||
| Health Care Equipment & Supplies | 2.1 | % | ||
| Health Care Providers & Services | 11.3 | % | ||
| Household Durables | 1.5 | % | ||
| Interactive Media & Services | 5.7 | % | ||
| Internet & Direct Marketing Retail | 4.6 | % | ||
| IT Services | 12.0 | % | ||
| Life Sciences Tools & Services | 8.1 | % | ||
| Media | 3.6 | % | ||
| Pharmaceuticals | 2.6 | % | ||
| Professional Services | 1.9 | % | ||
| Real Estate Management & Development | 2.3 | % | ||
| Semiconductors & Semiconductor Equipment | 4.4 | % | ||
| Software | 7.3 | % | ||
| Specialty Retail | 2.4 | % | ||
| Wireless Telecommunication Services | 1.8 | % | ||
| Money Market Fund | 0.6 | % | ||
| 100.6 | % | |||
| Percentage | ||||
| Sterling Capital Equity Income Fund | of net assets | |||
| Aerospace & Defense | 1.9 | % | ||
| Air Freight & Logistics | 3.2 | % | ||
| Beverages | 3.2 | % | ||
| Biotechnology | 3.5 | % | ||
| Capital Markets | 6.2 | % | ||
| Chemicals | 2.0 | % | ||
| Communications Equipment | 6.7 | % | ||
| Consumer Finance | 2.0 | % | ||
| Electronic Equipment, Instruments & Components | 0.2 | % | ||
| Equity Real Estate Investment Trusts (REITs) | 2.5 | % | ||
| Food Products | 2.1 | % | ||
| Health Care Equipment & Supplies | 6.3 | % | ||
| Health Care Providers & Services | 8.1 | % | ||
| Hotels, Restaurants & Leisure | 4.4 | % | ||
| Industrial Conglomerates | 2.6 | % | ||
| Insurance | 12.4 | % | ||
| IT Services | 7.7 | % | ||
| Multiline Retail | 2.4 | % | ||
| Oil, Gas & Consumable Fuels | 0.3 | % | ||
| Pharmaceuticals | 6.7 | % | ||
| Professional Services | 3.6 | % | ||
| Semiconductors & Semiconductor Equipment | 3.6 | % | ||
| Software | 3.5 | % | ||
| Specialty Retail | 3.9 | % | ||
| Money Market Fund | 1.0 | % | ||
| 100.0 | % | |||
| * | Amount represents less than 0.05%. |
43
| Sterling Capital Funds |
Summary of Portfolio Holdings (Unaudited)
| Percentage | ||||
| Sterling Capital Behavioral International Equity Fund | of net assets | |||
| Australia | 6.0 | % | ||
| Austria | 0.8 | % | ||
| Belgium | 0.9 | % | ||
| China | 0.3 | % | ||
| Denmark | 0.5 | % | ||
| Finland | 0.9 | % | ||
| France | 12.1 | % | ||
| Germany | 8.2 | % | ||
| Hong Kong | 2.2 | % | ||
| Ireland | 0.5 | % | ||
| Israel | 1.9 | % | ||
| Italy | 4.0 | % | ||
| Japan | 25.1 | % | ||
| Netherlands | 4.7 | % | ||
| Norway | 0.8 | % | ||
| Singapore | 2.2 | % | ||
| Spain | 2.6 | % | ||
| Sweden | 1.3 | % | ||
| Switzerland | 8.0 | % | ||
| United Kingdom | 14.6 | % | ||
| United States | 0.7 | % | ||
| Money Market Fund | 0.6 | % | ||
| 98.9 | % | |||
| Percentage | ||||
| Sterling Capital SMID Opportunities Fund | of net assets | |||
| Aerospace & Defense | 2.0 | % | ||
| Auto Components | 3.2 | % | ||
| Banks | 5.7 | % | ||
| Capital Markets | 2.3 | % | ||
| Chemicals | 3.5 | % | ||
| Commercial Services & Supplies | 4.9 | % | ||
| Communications Equipment | 3.4 | % | ||
| Consumer Finance | 3.3 | % | ||
| Containers & Packaging | 3.1 | % | ||
| Entertainment | 2.5 | % | ||
| Equity Real Estate Investment Trusts (REITs) | 3.0 | % | ||
| Health Care Equipment & Supplies | 5.9 | % | ||
| Health Care Providers & Services | 6.1 | % | ||
| Household Durables | 3.6 | % | ||
| Independent Power and Renewable Electricity Producers | 4.4 | % | ||
| Insurance | 4.8 | % | ||
| IT Services | 17.8 | % | ||
| Machinery | 3.0 | % | ||
| Media | 1.5 | % | ||
| Oil, Gas & Consumable Fuels | 6.1 | % | ||
| Professional Services | 2.6 | % | ||
| Real Estate Management & Development | 1.4 | % | ||
| Software | 2.7 | % | ||
| Specialty Retail | 1.5 | % | ||
| Money Market Fund | 1.7 | % | ||
| 100.0 | % | |||
| Percentage | ||||
| Sterling Capital Mid Cap Relative Value Fund | of net assets | |||
| Auto Components | 1.7 | % | ||
| Banks | 7.3 | % | ||
| Building Products | 3.1 | % | ||
| Capital Markets | 2.8 | % | ||
| Chemicals | 2.6 | % | ||
| Communications Equipment | 1.0 | % | ||
| Construction & Engineering | 1.6 | % | ||
| Containers & Packaging | 4.4 | % | ||
| Electronic Equipment, Instruments & Components | 6.9 | % | ||
| Entertainment | 3.5 | % | ||
| Equity Real Estate Investment Trusts (REITs). | 7.2 | % | ||
| Food & Staples Retailing | 4.6 | % | ||
| Food Products | 2.2 | % | ||
| Gas Utilities | 4.5 | % | ||
| Health Care Equipment & Supplies | 3.4 | % | ||
| Household Durables | 1.4 | % | ||
| Insurance | 7.6 | % | ||
| IT Services | 2.3 | % | ||
| Leisure Products | 1.1 | % | ||
| Life Sciences Tools & Services | 6.7 | % | ||
| Machinery | 1.9 | % | ||
| Oil, Gas & Consumable Fuels | 6.2 | % | ||
| Professional Services | 3.3 | % | ||
| Real Estate Management & Development | 1.3 | % | ||
| Semiconductors & Semiconductor Equipment | 1.2 | % | ||
| Software | 3.0 | % | ||
| Trading Companies & Distributors | 2.1 | % | ||
| Money Market Fund | 4.6 | % | ||
| 99.5 | % | |||
| Percentage | ||||
| Sterling Capital Real Estate Fund | of net assets | |||
| Diversified | 1.5 | % | ||
| Health Care | 7.9 | % | ||
| Hotel & Resort | 2.8 | % | ||
| Industrial | 12.6 | % | ||
| Office | 4.6 | % | ||
| Real Estate Development | 1.1 | % | ||
| Residential | 17.8 | % | ||
| Retail | 10.4 | % | ||
| Specialized | 38.3 | % | ||
| Money Market Fund | 2.1 | % | ||
| 99.1 | % | |||
44
| Sterling Capital Funds |
Summary of Portfolio Holdings (Unaudited)
| Percentage | ||||
| Sterling Capital Small Cap Value Fund | of net assets | |||
| Aerospace & Defense | 2.4 | % | ||
| Auto Components | 1.4 | % | ||
| Banks | 18.2 | % | ||
| Capital Markets | 1.7 | % | ||
| Chemicals | 2.7 | % | ||
| Construction & Engineering | 3.0 | % | ||
| Electric Utilities | 2.5 | % | ||
| Electrical Equipment | 2.2 | % | ||
| Electronic Equipment, Instruments & Components | 4.2 | % | ||
| Entertainment | 1.6 | % | ||
| Equity Real Estate Investment Trusts (REITs) | 6.7 | % | ||
| Food & Staples Retailing | 9.5 | % | ||
| Gas Utilities | 2.7 | % | ||
| Household Durables | 2.5 | % | ||
| Insurance | 7.8 | % | ||
| Life Sciences Tools & Services | 2.6 | % | ||
| Machinery | 6.1 | % | ||
| Oil, Gas & Consumable Fuels | 3.6 | % | ||
| Professional Services | 3.9 | % | ||
| Semiconductors & Semiconductor Equipment | 6.0 | % | ||
| Software | 2.6 | % | ||
| Specialty Retail | 1.4 | % | ||
| Trading Companies & Distributors | 3.2 | % | ||
| Money Market Fund | 1.5 | % | ||
| 100.0 | % | |||
| Percentage | ||||
| Sterling Capital Ultra Short Bond Fund | of net assets | |||
| Asset Backed Securities | 20.8 | % | ||
| Collateralized Mortgage Obligations | 0.7 | % | ||
| Commercial Mortgage-Backed Securities | 16.3 | % | ||
| Commercial Paper | 1.4 | % | ||
| Corporate Bonds | 55.8 | % | ||
| Municipal Bonds | 0.9 | % | ||
| U.S. Treasury Notes | 1.8 | % | ||
| Money Market Fund | 2.3 | % | ||
| 100.0 | % | |||
| Percentage | ||||
| Sterling Capital Short Duration Bond Fund | of net assets | |||
| Asset Backed Securities | 9.9 | % | ||
| Collateralized Mortgage Obligations | 3.4 | % | ||
| Commercial Mortgage-Backed Securities | 9.0 | % | ||
| Corporate Bonds | 56.3 | % | ||
| Municipal Bonds | 4.4 | % | ||
| U.S. Treasury Notes | 16.1 | % | ||
| Money Market Fund | 1.4 | % | ||
| 100.5 | % | |||
| Percentage | ||||
| Sterling Capital Intermediate U.S. Government Fund | of net assets | |||
| Asset Backed Securities | 2.0 | % | ||
| Collateralized Mortgage Obligations | 14.5 | % | ||
| Commercial Mortgage-Backed Securities | 24.3 | % | ||
| Corporate Bonds | 2.1 | % | ||
| Mortgage-Backed Securities | 28.3 | % | ||
| Municipal Bonds | 0.8 | % | ||
| U.S. Government Agencies | 13.1 | % | ||
| U.S. Treasury Notes | 13.1 | % | ||
| Money Market Fund | 4.5 | % | ||
| 102.7 | % | |||
| Percentage | ||||
| Sterling Capital Total Return Bond Fund | of net assets | |||
| Asset Backed Securities | 16.0 | % | ||
| Collateralized Mortgage Obligations | 1.9 | % | ||
| Commercial Mortgage-Backed Securities | 15.3 | % | ||
| Corporate Bonds | 25.6 | % | ||
| Mortgage-Backed Securities | 21.1 | % | ||
| Municipal Bonds | 4.4 | % | ||
| U.S. Treasury Bonds | 9.1 | % | ||
| U.S. Treasury Notes | 6.0 | % | ||
| Money Market Fund | 1.3 | % | ||
| 100.7 | % | |||
| Percentage | ||||
| Sterling Capital Long Duration Corporate Bond Fund | of net assets | |||
| Corporate Bonds | 95.2 | % | ||
| U.S. Government Agencies | 0.3 | % | ||
| U.S. Treasury Bonds | 2.4 | % | ||
| Money Market Fund | 0.7 | % | ||
| 98.6 | % | |||
| Percentage | ||||
| Sterling Capital Quality Income Fund | of net assets | |||
| Asset Backed Securities | 20.3 | % | ||
| Collateralized Mortgage Obligations | 16.6 | % | ||
| Commercial Mortgage-Backed Securities | 25.4 | % | ||
| Corporate Bonds | 0.9 | % | ||
| Mortgage-Backed Securities | 29.6 | % | ||
| U.S. Treasury Bonds | 1.3 | % | ||
| U.S. Treasury Notes | 4.2 | % | ||
| Money Market Fund | 2.1 | % | ||
| 100.4 | % | |||
| Percentage | ||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | of net assets | |||
| North Carolina Municipal Bonds | 95.5 | % | ||
| Money Market Fund | 3.1 | % | ||
| 98.6 | % | |||
| Percentage | ||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | of net assets | |||
| South Carolina Municipal Bonds | 97.8 | % | ||
| Money Market Fund | 1.1 | % | ||
| 98.9 | % | |||
| Percentage | ||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | of net assets | |||
| District of Columbia Municipal Bonds | 2.1 | % | ||
| Virginia Municipal Bonds | 94.5 | % | ||
| Money Market Fund | 5.2 | % | ||
| 101.8 | % | |||
| Percentage | ||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | of net assets | |||
| West Virginia Municipal Bonds | 96.1 | % | ||
| Money Market Fund | 2.9 | % | ||
| 99.0 | % | |||
45
| Sterling Capital Funds |
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, 2022 through September 30, 2022.
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 4/1/22 | Ending Account Value 9/30/22 | Expenses Paid During Period* 4/1/22 - 9/30/22 | Annualized Expense Ratio During Period 4/1/22 - 9/30/22 | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||
| Class A Shares | $1,000.00 | $828.46 | $4.81 | 1.05% |
| Class C Shares | 1,000.00 | 825.72 | 8.24 | 1.80% |
| Institutional Shares | 1,000.00 | 829.63 | 3.67 | 0.80% |
| Class R6 Shares | 1,000.00 | 830.38 | 2.80 | 0.61% |
| Sterling Capital Mid Value Fund | ||||
| Class A Shares | 1,000.00 | 778.80 | 5.08 | 1.14% |
| Class C Shares | 1,000.00 | 776.19 | 8.42 | 1.89% |
| Institutional Shares | 1,000.00 | 779.78 | 3.97 | 0.89% |
| Class R6 Shares | 1,000.00 | 780.49 | 3.57 | 0.80% |
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||
| Class A Shares | 1,000.00 | 811.31 | 5.22 | 1.15% |
| Class C Shares | 1,000.00 | 808.13 | 8.61 | 1.90% |
| Institutional Shares | 1,000.00 | 812.11 | 4.04 | 0.89% |
| Class R6 Shares | 1,000.00 | 812.27 | 3.63 | 0.80% |
| Sterling Capital Special Opportunities Fund | ||||
| Class A Shares | 1,000.00 | 794.09 | 5.17 | 1.15% |
| Class C Shares | 1,000.00 | 790.99 | 8.49 | 1.89% |
| Institutional Shares | 1,000.00 | 795.01 | 4.05 | 0.90% |
| Class R6 Shares | 1,000.00 | 795.49 | 3.69 | 0.82% |
| Sterling Capital Equity Income Fund | ||||
| Class A Shares | 1,000.00 | 868.99 | 4.97 | 1.06% |
| Class C Shares | 1,000.00 | 865.56 | 8.46 | 1.81% |
| Institutional Shares | 1,000.00 | 869.90 | 3.80 | 0.81% |
| Class R6 Shares | 1,000.00 | 870.38 | 3.33 | 0.71% |
| Sterling Capital Behavioral International Equity Fund | ||||
| Class A Shares | 1,000.00 | 778.26 | 4.10 | 0.92% |
| Class C Shares | 1,000.00 | 774.58 | 7.43 | 1.67% |
| Institutional Shares | 1,000.00 | 778.26 | 2.99 | 0.67% |
| Class R6 Shares | 1,000.00 | 779.36 | 2.77 | 0.62% |
| Sterling Capital SMID Opportunities Fund | ||||
| Class A Shares | 1,000.00 | 796.31 | 4.68 | 1.04% |
| Class C Shares | 1,000.00 | 793.13 | 8.05 | 1.79% |
| Institutional Shares | 1,000.00 | 797.01 | 3.56 | 0.79% |
| Sterling Capital Mid Cap Relative Value Fund | ||||
| Class A Shares | 1,000.00 | 837.27 | 5.07 | 1.10% |
| Class C Shares | 1,000.00 | 834.56 | 8.05 | 1.75% |
| Institutional Shares | 1,000.00 | 838.32 | 3.92 | 0.85% |
46
| Sterling Capital Funds |
Expense Example (Unaudited)
Beginning Account Value 4/1/22 | Ending Account Value 9/30/22 | Expenses Paid During Period* 4/1/22 - 9/30/22 | Annualized Expense Ratio During Period 4/1/22 - 9/30/22 | |
| Sterling Capital Real Estate Fund | ||||
| Class A Shares | $1,000.00 | $751.02 | $4.74 | 1.08% |
| Class C Shares | 1,000.00 | 748.37 | 8.02 | 1.83% |
| Institutional Shares | 1,000.00 | 751.91 | 3.65 | 0.83% |
| Class R6 Shares | 1,000.00 | 752.36 | 3.21 | 0.73% |
| Sterling Capital Small Cap Value Fund | ||||
| Class A Shares | 1,000.00 | 816.84 | 5.78 | 1.27% |
| Class C Shares | 1,000.00 | 813.81 | 9.18 | 2.02% |
| Institutional Shares | 1,000.00 | 817.86 | 4.65 | 1.02% |
| Class R6 Shares | 1,000.00 | 818.20 | 4.19 | 0.92% |
| Sterling Capital Ultra Short Bond Fund | ||||
| Class A Shares | 1,000.00 | 999.03 | 2.61 | 0.52% |
| Institutional Shares | 1,000.00 | 1,000.28 | 1.35 | 0.27% |
| Sterling Capital Short Duration Bond Fund | ||||
| Class A Shares | 1,000.00 | 976.84 | 3.72 | 0.75% |
| Class C Shares | 1,000.00 | 974.29 | 7.37 | 1.49% |
| Institutional Shares | 1,000.00 | 979.22 | 2.43 | 0.49% |
| Class R6 Shares | 1,000.00 | 978.49 | 2.03 | 0.41% |
| Sterling Capital Intermediate U.S. Government Fund | ||||
| Class A Shares | 1,000.00 | 938.21 | 3.64 | 0.75% |
| Class C Shares | 1,000.00 | 934.53 | 7.27 | 1.50% |
| Institutional Shares | 1,000.00 | 938.35 | 2.43 | 0.50% |
| Sterling Capital Total Return Bond Fund | ||||
| Class A Shares | 1,000.00 | 909.40 | 3.35 | 0.70% |
| Class C Shares | 1,000.00 | 905.19 | 6.93 | 1.45% |
| Institutional Shares | 1,000.00 | 909.65 | 2.15 | 0.45% |
| Class R6 Shares | 1,000.00 | 911.00 | 1.68 | 0.35% |
| Sterling Capital Long Duration Corporate Bond Fund | ||||
| Class A Shares | 1,000.00 | 795.39 | 3.15 | 0.70% |
| Class C Shares | 1,000.00 | 790.95 | 6.47 | 1.44% |
| Institutional Shares | 1,000.00 | 796.40 | 2.03 | 0.45% |
| Class R6 Shares | 1,000.00 | 796.76 | 1.62 | 0.45% |
| Sterling Capital Quality Income Fund | ||||
| Class A Shares | 1,000.00 | 935.57 | 4.12 | 0.85% |
| Class C Shares | 1,000.00 | 933.42 | 7.32 | 1.51% |
| Institutional Shares | 1,000.00 | 936.86 | 2.91 | 0.60% |
| Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||
| Class A Shares | 1,000.00 | 956.91 | 4.12 | 0.84% |
| Class C Shares | 1,000.00 | 953.25 | 7.79 | 1.59% |
| Institutional Shares | 1,000.00 | 957.15 | 2.89 | 0.59% |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||
| Class A Shares | 1,000.00 | 960.24 | 4.28 | 0.87% |
| Class C Shares | 1,000.00 | 956.61 | 7.95 | 1.62% |
| Institutional Shares | 1,000.00 | 961.12 | 3.05 | 0.62% |
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||
| Class A Shares | 1,000.00 | 960.69 | 4.13 | 0.84% |
| Class C Shares | 1,000.00 | 957.10 | 7.75 | 1.58% |
| Institutional Shares | 1,000.00 | 961.90 | 2.90 | 0.59% |
47
| Sterling Capital Funds |
Expense Example (Unaudited)
Beginning Account Value 4/1/22 | Ending Account Value 9/30/22 | Expenses Paid During Period* 4/1/22 - 9/30/22 | Annualized Expense Ratio During Period 4/1/22 - 9/30/22 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||
| Class A Shares | $1,000.00 | $958.66 | $4.12 | 0.84% |
| Class C Shares | 1,000.00 | 954.18 | 7.69 | 1.57% |
| Institutional Shares | 1,000.00 | 958.94 | 2.90 | 0.59% |
| * | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 182 days divided by 365 (to reflect the six month period). |
48
| Sterling Capital Funds |
Expense Example (Unaudited)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s 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 4/1/22 | Ending Account Value 9/30/22 | Expenses Paid During Period* 4/1/22 - 9/30/22 | Annualized Expense Ratio During Period 4/1/22 - 9/30/22 | |
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||
| Class A Shares | $1,000.00 | $1,019.80 | $5.32 | 1.05% |
| Class C Shares | 1,000.00 | 1,016.04 | 9.10 | 1.80% |
| Institutional Shares | 1,000.00 | 1,021.06 | 4.05 | 0.80% |
| Class R6 Shares | 1,000.00 | 1,022.01 | 3.09 | 0.61% |
| Sterling Capital Mid Value Fund | ||||
| Class A Shares | 1,000.00 | 1,019.35 | 5.77 | 1.14% |
| Class C Shares | 1,000.00 | 1,015.59 | 9.55 | 1.89% |
| Institutional Shares | 1,000.00 | 1,020.61 | 4.51 | 0.89% |
| Class R6 Shares | 1,000.00 | 1,021.06 | 4.05 | 0.80% |
| Sterling Capital Behavioral Small Cap Value Equity 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 | 1,020.61 | 4.51 | 0.89% |
| Class R6 Shares | 1,000.00 | 1,021.06 | 4.05 | 0.80% |
| Sterling Capital Special Opportunities Fund | ||||
| Class A Shares | 1,000.00 | 1,019.30 | 5.82 | 1.15% |
| Class C Shares | 1,000.00 | 1,015.59 | 9.55 | 1.89% |
| Institutional Shares | 1,000.00 | 1,020.56 | 4.56 | 0.90% |
| Class R6 Shares | 1,000.00 | 1,020.96 | 4.15 | 0.82% |
| Sterling Capital Equity Income Fund | ||||
| Class A Shares | 1,000.00 | 1,019.75 | 5.37 | 1.06% |
| Class C Shares | 1,000.00 | 1,015.99 | 9.15 | 1.81% |
| Institutional Shares | 1,000.00 | 1,021.01 | 4.10 | 0.81% |
| Class R6 Shares | 1,000.00 | 1,021.51 | 3.60 | 0.71% |
| Sterling Capital Behavioral International Equity Fund | ||||
| Class A Shares | 1,000.00 | 1,020.46 | 4.66 | 0.92% |
| Class C Shares | 1,000.00 | 1,016.70 | 8.44 | 1.67% |
| Institutional Shares | 1,000.00 | 1,021.71 | 3.40 | 0.67% |
| Class R6 Shares | 1,000.00 | 1,021.96 | 3.14 | 0.62% |
| 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 Mid Cap Relative Value Fund | ||||
| Class A Shares | 1,000.00 | 1,019.55 | 5.57 | 1.10% |
| Class C Shares | 1,000.00 | 1,016.29 | 8.85 | 1.75% |
| Institutional Shares | 1,000.00 | 1,020.81 | 4.31 | 0.85% |
49
| Sterling Capital Funds |
Expense Example (Unaudited)
Beginning Account Value 4/1/22 | Ending Account Value 9/30/22 | Expenses Paid During Period* 4/1/22 - 9/30/22 | Annualized Expense Ratio During Period 4/1/22 - 9/30/22 | |
| Sterling Capital Real Estate Fund | ||||
| Class A Shares | $1,000.00 | $1,019.65 | $5.47 | 1.08% |
| Class C Shares | 1,000.00 | 1,015.89 | 9.25 | 1.83% |
| Institutional Shares | 1,000.00 | 1,020.91 | 4.20 | 0.83% |
| Class R6 Shares | 1,000.00 | 1,021.41 | 3.70 | 0.73% |
| Sterling Capital Small Cap Value Fund | ||||
| Class A Shares | 1,000.00 | 1,018.70 | 6.43 | 1.27% |
| Class C Shares | 1,000.00 | 1,014.94 | 10.20 | 2.02% |
| Institutional Shares | 1,000.00 | 1,019.95 | 5.16 | 1.02% |
| Class R6 Shares | 1,000.00 | 1,020.46 | 4.66 | 0.92% |
| Sterling Capital Ultra Short Bond Fund | ||||
| Class A Shares | 1,000.00 | 1,022.46 | 2.64 | 0.52% |
| Institutional Shares | 1,000.00 | 1,023.71 | 1.37 | 0.27% |
| Sterling Capital Short Duration Bond Fund | ||||
| Class A Shares | 1,000.00 | 1,021.31 | 3.80 | 0.75% |
| Class C Shares | 1,000.00 | 1,017.60 | 7.54 | 1.49% |
| Institutional Shares | 1,000.00 | 1,022.61 | 2.48 | 0.49% |
| Class R6 Shares | 1,000.00 | 1,023.01 | 2.08 | 0.41% |
| Sterling Capital Intermediate U.S. Government Fund | ||||
| Class A Shares | 1,000.00 | 1,021.31 | 3.80 | 0.75% |
| Class C Shares | 1,000.00 | 1,017.55 | 7.59 | 1.50% |
| Institutional Shares | 1,000.00 | 1,022.56 | 2.54 | 0.50% |
| Sterling Capital Total Return Bond Fund | ||||
| Class A Shares | 1,000.00 | 1,021.56 | 3.55 | 0.70% |
| Class C Shares | 1,000.00 | 1,017.80 | 7.33 | 1.45% |
| Institutional Shares | 1,000.00 | 1,022.81 | 2.28 | 0.45% |
| Class R6 Shares | 1,000.00 | 1,023.31 | 1.78 | 0.35% |
| Sterling Capital Long Duration Corporate Bond Fund | ||||
| Class A Shares | 1,000.00 | 1,021.56 | 3.55 | 0.70% |
| Class C Shares | 1,000.00 | 1,017.85 | 7.28 | 1.44% |
| Institutional Shares | 1,000.00 | 1,022.81 | 2.28 | 0.45% |
| Class R6 Shares | 1,000.00 | 1,022.81 | 1.83 | 0.45% |
| Sterling Capital Quality Income Fund | ||||
| Class A Shares | 1,000.00 | 1,020.81 | 4.31 | 0.85% |
| Class C Shares | 1,000.00 | 1,017.50 | 7.64 | 1.51% |
| 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 | 1,020.86 | 4.26 | 0.84% |
| Class C Shares | 1,000.00 | 1,017.10 | 8.04 | 1.59% |
| Institutional Shares | 1,000.00 | 1,022.11 | 2.99 | 0.59% |
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||
| Class A Shares | 1,000.00 | 1,020.71 | 4.41 | 0.87% |
| Class C Shares | 1,000.00 | 1,016.95 | 8.19 | 1.62% |
| Institutional Shares | 1,000.00 | 1,021.96 | 3.14 | 0.62% |
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||
| Class A Shares | 1,000.00 | 1,020.86 | 4.26 | 0.84% |
| Class C Shares | 1,000.00 | 1,017.15 | 7.99 | 1.58% |
| Institutional Shares | 1,000.00 | 1,022.11 | 2.99 | 0.59% |
50
| Sterling Capital Funds |
Expense Example (Unaudited)
Beginning Account Value 4/1/22 | Ending Account Value 9/30/22 | Expenses Paid During Period* 4/1/22 - 9/30/22 | Annualized Expense Ratio During Period 4/1/22 - 9/30/22 | |
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||
| Class A Shares | $1,000.00 | $1,020.86 | $4.26 | 0.84% |
| Class C Shares | 1,000.00 | 1,017.20 | 7.94 | 1.57% |
| Institutional Shares | 1,000.00 | 1,022.11 | 2.99 | 0.59% |
| * | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by 182 days divided by 365 (to reflect the six month period). |
51
| Sterling Capital Behavioral Large Cap Value Equity Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | ||||||
| COMMON STOCKS — 99.5% | |||||||
| Aerospace & Defense — 3.1% | |||||||
| 2,200 | General Dynamics Corp. | $ | 466,774 | ||||
| 1,000 | Lockheed Martin Corp. | 386,290 | |||||
| 853,064 | |||||||
| Air Freight & Logistics — 2.2% | |||||||
| 1,800 | FedEx Corp. | 267,246 | |||||
| 2,200 | United Parcel Service, Inc., Class B | 355,388 | |||||
| 622,634 | |||||||
| Automobiles — 0.5% | |||||||
| 3,650 | Harley-Davidson, Inc. | 127,312 | |||||
| Banks — 6.1% | |||||||
| 4,453 | Bank OZK | 176,161 | |||||
| 1,950 | Comerica, Inc. | 138,645 | |||||
| 5,350 | First Hawaiian, Inc. | 131,771 | |||||
| 12,450 | FNB Corp. | 144,420 | |||||
| 10,150 | Huntington Bancshares, Inc. | 133,777 | |||||
| 3,200 | PNC Financial Services Group, Inc. (The) | 478,144 | |||||
| 2,000 | Popular, Inc. | 144,120 | |||||
| 6,400 | Regions Financial Corp. | 128,448 | |||||
| 3,750 | Synovus Financial Corp. | 140,662 | |||||
| 1,800 | Webster Financial Corp. | 81,360 | |||||
| 1,697,508 | |||||||
| Biotechnology — 7.3% | |||||||
| 2,650 | AbbVie, Inc. | 355,656 | |||||
| 1,250 | Amgen, Inc. | 281,750 | |||||
| 7,950 | Gilead Sciences, Inc. | 490,436 | |||||
| 750 | Regeneron Pharmaceuticals, Inc.(a) | 516,652 | |||||
| 1,400 | Vertex Pharmaceuticals, Inc.(a) | 405,356 | |||||
| 2,049,850 | |||||||
| Building Products — 0.4% | |||||||
| 1,600 | Owens Corning | 125,776 | |||||
| Capital Markets — 5.8% | |||||||
| 4,500 | Bank of New York Mellon Corp. (The) | 173,340 | |||||
| 3,900 | Carlyle Group, Inc. (The) | 100,776 | |||||
| 2,250 | CME Group, Inc. | 398,542 | |||||
| 650 | LPL Financial Holdings, Inc. | 142,012 | |||||
| 6,500 | Morgan Stanley | 513,565 | |||||
| 1,600 | Raymond James Financial, Inc . | 158,112 | |||||
| 5,800 | Virtu Financial, Inc., Class A | 120,466 | |||||
| 1,606,813 | |||||||
| Chemicals — 2.6% | |||||||
| 1,800 | CF Industries Holdings, Inc. | 173,250 | |||||
| 4,000 | Chemours Co. (The) | 98,600 | |||||
| 7,700 | Dow, Inc. | 338,261 | |||||
| 1,400 | Westlake Corp. | 121,632 | |||||
| 731,743 | |||||||
| Communications Equipment — 0.2% | |||||||
| 1,650 | Cisco Systems, Inc. | 66,000 | |||||
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Consumer Finance — 1.0% | |||||||
| 1,500 | Discover Financial Services | $ | 136,380 | ||||
| 9,300 | SLM Corp. | 130,107 | |||||
| 266,487 | |||||||
| Diversified Consumer Services — 0.6% | |||||||
| 3,700 | H&R Block, Inc. | 157,398 | |||||
| Diversified Financial Services — 0.3% | |||||||
| 1,950 | Apollo Global Management, Inc. | 90,675 | |||||
| Diversified Telecommunication Services — 2.5% | |||||||
| 34,800 | AT&T, Inc. | 533,832 | |||||
| 4,200 | Lumen Technologies, Inc. | 30,576 | |||||
| 3,357 | Verizon Communications, Inc. | 127,465 | |||||
| 691,873 | |||||||
| Electric Utilities — 3.7% | |||||||
| 4,800 | American Electric Power Co., Inc. | 414,960 | |||||
| 1,750 | Duke Energy Corp. | 162,785 | |||||
| 6,900 | Southern Co. (The) | 469,200 | |||||
| 1,046,945 | |||||||
| Electrical Equipment — 0.5% | |||||||
| 4,300 | nVent Electric PLC | 135,923 | |||||
| Electronic Equipment, Instruments & Components — 0.5% | |||||||
| 2,350 | Jabil, Inc. | 135,619 | |||||
| Equity Real Estate Investment Trusts (REITs) — 5.2% | |||||||
| 7,350 | Brixmor Property Group, Inc. | 135,755 | |||||
| 3,150 | EPR Properties | 112,959 | |||||
| 6,900 | Realty Income Corp. | 401,580 | |||||
| 3,350 | Simon Property Group, Inc. | 300,662 | |||||
| 3,000 | Spirit Realty Capital, Inc. | 108,480 | |||||
| 13,050 | VICI Properties, Inc. | 389,542 | |||||
| 1,448,978 | |||||||
| Food & Staples Retailing — 1.9% | |||||||
| 5,550 | Albertsons Cos., Inc., Class A | 137,973 | |||||
| 8,950 | Kroger Co. (The) | 391,563 | |||||
| 529,536 | |||||||
| Food Products — 3.7% | |||||||
| 5,800 | Archer-Daniels-Midland Co. | 466,610 | |||||
| 2,550 | General Mills, Inc. | 195,355 | |||||
| 10,750 | Kraft Heinz Co. (The) | 358,513 | |||||
| 1,020,478 | |||||||
| Gas Utilities — 0.5% | |||||||
| 2,200 | National Fuel Gas Co. | 135,410 | |||||
| Health Care Providers & Services — 7.9% | |||||||
| 5,400 | Centene Corp.(a) | 420,174 | |||||
| 1,200 | Cigna Corp. | 332,964 | |||||
| 6,300 | CVS Health Corp. | 600,831 | |||||
| 824 | Elevance Health, Inc. | 374,294 | |||||
See accompanying Notes to the Financial Statements.
52
| Sterling Capital Behavioral Large Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Health Care Providers & Services — (continued) | |||||||
| 1,424 | McKesson Corp. | $ | 483,975 | ||||
| 2,212,238 | |||||||
| Hotels, Restaurants & Leisure — 0.4% | |||||||
| 2,600 | Boyd Gaming Corp. | 123,890 | |||||
| Household Products — 0.4% | |||||||
| 1,500 | Colgate-Palmolive Co. | 105,375 | |||||
| Insurance — 4.5% | |||||||
| 2,150 | Aflac, Inc. | 120,830 | |||||
| 1,400 | Chubb, Ltd. | 254,632 | |||||
| 6,500 | MetLife, Inc. | 395,070 | |||||
| 3,950 | Prudential Financial, Inc. | 338,831 | |||||
| 4,100 | Unum Group | 159,080 | |||||
| 1,268,443 | |||||||
| IT Services — 3.4% | |||||||
| 5,700 | Cognizant Technology Solutions Corp., Class A | 327,408 | |||||
| 2,250 | Fiserv, Inc.(a) | 210,532 | |||||
| 3,350 | International Business Machines Corp. | 398,014 | |||||
| 935,954 | |||||||
| Machinery — 2.3% | |||||||
| 3,850 | Allison Transmission Holdings, Inc. | 129,976 | |||||
| 550 | Crane Holdings Co. | 48,147 | |||||
| 1,100 | Deere & Co. | 367,279 | |||||
| 550 | Snap-on, Inc. | 110,743 | |||||
| 656,145 | |||||||
| Media — 4.7% | |||||||
| 1,000 | Charter Communications, Inc., Class A(a) | 303,350 | |||||
| 12,200 | Comcast Corp., Class A | 357,826 | |||||
| 4,050 | Fox Corp., Class A | 124,254 | |||||
| 4,250 | Fox Corp., Class B | 121,125 | |||||
| 894 | Nexstar Media Group, Inc. | 149,164 | |||||
| 2,000 | Omnicom Group, Inc. | 126,180 | |||||
| 23,300 | Sirius XM Holdings, Inc. | 133,043 | |||||
| 1,314,942 | |||||||
| Metals & Mining — 1.5% | |||||||
| 1,400 | Nucor Corp. | 149,786 | |||||
| 750 | Reliance Steel & Aluminum Co. | 130,807 | |||||
| 2,000 | Steel Dynamics, Inc. | 141,900 | |||||
| 422,493 | |||||||
| Mortgage Real Estate Investment Trusts (REITs) — 0.8% | |||||||
| 11,400 | AGNC Investment Corp. | 95,988 | |||||
| 6,350 | Starwood Property Trust, Inc. | 115,697 | |||||
| 211,685 | |||||||
| Multi-Utilities — 2.6% | |||||||
| 4,600 | Consolidated Edison, Inc. | 394,496 | |||||
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Multi-Utilities — (continued) | |||||||
| 2,150 | Sempra Energy | $ | 322,371 | ||||
| 716,867 | |||||||
| Oil, Gas & Consumable Fuels — 8.8% | |||||||
| 5,400 | ConocoPhillips | 552,636 | |||||
| 3,450 | EOG Resources, Inc. | 385,469 | |||||
| 9,950 | Exxon Mobil Corp. | 868,734 | |||||
| 5,050 | Occidental Petroleum Corp. | 310,322 | |||||
| 1,550 | Pioneer Natural Resources Co. | 335,622 | |||||
| 2,452,783 | |||||||
| Pharmaceuticals — 4.5% | |||||||
| 9,300 | Bristol-Myers Squibb Co. | 661,137 | |||||
| 6,750 | Merck & Co., Inc. | 581,310 | |||||
| 1,242,447 | |||||||
| Semiconductors & Semiconductor Equipment — 3.3% | |||||||
| 776 | Broadcom, Inc. | 344,552 | |||||
| 750 | KLA Corp. | 226,972 | |||||
| 5,600 | Microchip Technology, Inc. | 341,768 | |||||
| 913,292 | |||||||
| Specialty Retail — 2.8% | |||||||
| 1,200 | AutoNation, Inc.(a) | 122,244 | |||||
| 190 | AutoZone, Inc.(a) | 406,967 | |||||
| 200 | O'Reilly Automotive, Inc.(a) | 140,670 | |||||
| 1,200 | Penske Automotive Group, Inc. | 118,116 | |||||
| 787,997 | |||||||
| Technology Hardware, Storage & Peripherals — 0.6% | |||||||
| 10,550 | Hewlett Packard Enterprise Co. | 126,389 | |||||
| 2,000 | HP, Inc. | 49,840 | |||||
| 176,229 | |||||||
| Thrifts & Mortgage Finance — 0.4% | |||||||
| 9,750 | MGIC Investment Corp. | 124,995 | |||||
| Tobacco — 1.7% | |||||||
| 11,450 | Altria Group, Inc. | 462,351 | |||||
| Trading Companies & Distributors — 0.3% | |||||||
| 3,800 | Univar Solutions, Inc.(a) | 86,412 | |||||
| Total Common Stocks | |||||||
| (Cost $28,446,579) | 27,754,560 | ||||||
Continued
53
| Sterling Capital Behavioral Large Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | ||||||
| MONEY MARKET FUND — 0.2% | |||||||
| 52,736 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | $ | 52,736 | ||||
| Total Money Market Fund | |||||||
| (Cost $52,736) | 52,736 | ||||||
| Total Investments — 99.7% | |||||||
| (Cost $28,499,315) | 27,807,296 | ||||||
| Net Other Assets (Liabilities) — 0.3% | 78,165 | ||||||
| NET ASSETS — 100.0% | $ | 27,885,461 | |||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
Continued
54
| Sterling Capital Mid Value Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | ||||||
| COMMON STOCKS — 97.9% | |||||||
| Auto Components — 2.5% | |||||||
| 48,946 | Gentex Corp. | $ | 1,166,873 | ||||
| Banks — 6.0% | |||||||
| 9,843 | M&T Bank Corp. | 1,735,518 | |||||
| 13,805 | SouthState Corp. | 1,092,251 | |||||
| 2,827,769 | |||||||
| Chemicals — 4.0% | |||||||
| 32,785 | Corteva, Inc. | 1,873,663 | |||||
| Consumer Finance — 4.6% | |||||||
| 105,399 | SLM Corp. | 1,474,532 | |||||
| 24,950 | Synchrony Financial | 703,340 | |||||
| 2,177,872 | |||||||
| Containers & Packaging — 3.2% | |||||||
| 18,402 | Crown Holdings, Inc. | 1,491,114 | |||||
| Electric Utilities — 3.4% | |||||||
| 32,365 | ALLETE, Inc. | 1,619,868 | |||||
| Electrical Equipment — 2.3% | |||||||
| 28,926 | Sensata Technologies Holding PLC | 1,078,361 | |||||
| Energy Equipment & Services — 0.7% | |||||||
| 24,095 | Core Laboratories NV | 324,801 | |||||
| Entertainment — 2.5% | |||||||
| 10,683 | Take-Two Interactive Software, Inc.(a) | 1,164,447 | |||||
| Health Care Providers & Services — 15.8% | |||||||
| 23,318 | Centene Corp.(a) | 1,814,373 | |||||
| 5,651 | Cigna Corp. | 1,567,983 | |||||
| 19,255 | Encompass Health Corp. | 870,904 | |||||
| 5,834 | Laboratory Corp. of America Holdings | 1,194,861 | |||||
| 5,825 | McKesson Corp. | 1,979,743 | |||||
| 7,427,864 | |||||||
| Hotels, Restaurants & Leisure — 2.0% | |||||||
| 7,665 | Hilton Worldwide Holdings, Inc. | 924,552 | |||||
| Household Durables — 3.9% | |||||||
| 6,524 | Mohawk Industries, Inc.(a) | 594,924 | |||||
| 51,180 | Tempur Sealy International, Inc. | 1,235,485 | |||||
| 1,830,409 | |||||||
| Household Products — 1.4% | |||||||
| 16,805 | Spectrum Brands Holdings, Inc. | 655,899 | |||||
| Insurance — 9.6% | |||||||
| 5,517 | Enstar Group, Ltd.(a) | 935,628 | |||||
| 18,089 | Globe Life, Inc. | 1,803,473 | |||||
| 9,848 | Lincoln National Corp. | 432,426 | |||||
| 1,219 | Markel Corp.(a) | 1,321,664 | |||||
| 4,493,191 | |||||||
| Interactive Media & Services — 1.3% | |||||||
| 11,281 | IAC, Inc.(a) | 624,742 | |||||
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Internet & Direct Marketing Retail — 1.3% | |||||||
| 16,994 | eBay, Inc. | $ | 625,549 | ||||
| IT Services — 5.2% | |||||||
| 12,718 | Euronet Worldwide, Inc.(a) | 963,516 | |||||
| 13,637 | Global Payments, Inc. | 1,473,478 | |||||
| 2,436,994 | |||||||
| Machinery — 3.2% | |||||||
| 69,482 | Trinity Industries, Inc. | 1,483,441 | |||||
| Media — 2.6% | |||||||
| 16,762 | Liberty Broadband Corp., Class C(a) | 1,237,036 | |||||
| Oil, Gas & Consumable Fuels — 4.3% | |||||||
| 59,697 | CNX Resources Corp.(a) | 927,094 | |||||
| 5,019 | Pioneer Natural Resources Co. | 1,086,764 | |||||
| 2,013,858 | |||||||
| Professional Services — 5.5% | |||||||
| 13,091 | ASGN, Inc.(a) | 1,183,034 | |||||
| 12,976 | Jacobs Solutions, Inc. | 1,407,766 | |||||
| 2,590,800 | |||||||
| Real Estate Management & Development — 2.6% | |||||||
| 17,987 | CBRE Group, Inc., Class A(a) | 1,214,302 | |||||
| Software — 2.8% | |||||||
| 68,875 | NCR Corp.(a) | 1,309,314 | |||||
| Specialty Retail — 1.8% | |||||||
| 12,501 | CarMax, Inc.(a) | 825,316 | |||||
| Thrifts & Mortgage Finance — 3.1% | |||||||
| 76,210 | Radian Group, Inc. | 1,470,091 | |||||
| Trading Companies & Distributors — 2.3% | |||||||
| 35,591 | Air Lease Corp. | 1,103,677 | |||||
| Total Common Stocks | |||||||
| (Cost $40,213,845) | 45,991,803 | ||||||
| MONEY MARKET FUND — 2.1% | |||||||
| 996,660 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 996,660 | |||||
| Total Money Market Fund | |||||||
| (Cost $996,660) | 996,660 | ||||||
| Total Investments — 100.0% | |||||||
| (Cost $41,210,505) | 46,988,463 | ||||||
| Net Other Assets (Liabilities) — 0.0% | (19,293 | ) | |||||
| NET ASSETS — 100.0% | $ | 46,969,170 | |||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
See accompanying Notes to the Financial Statements.
55
| Sterling Capital Behavioral Small Cap Value Equity Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | ||||||
| COMMON STOCKS — 99.1% | |||||||
| Aerospace & Defense — 0.2% | |||||||
| 1,318 | Textron, Inc. | $ | 76,787 | ||||
| Air Freight & Logistics — 1.7% | |||||||
| 6,330 | Air Transport Services Group, Inc.(a) | 152,490 | |||||
| 4,834 | Atlas Air Worldwide Holdings, Inc.(a) | 461,985 | |||||
| 614,475 | |||||||
| Airlines — 0.3% | |||||||
| 2,864 | Alaska Air Group, Inc.(a) | 112,126 | |||||
| Automobiles — 0.4% | |||||||
| 3,695 | Harley-Davidson, Inc. | 128,882 | |||||
| Banks — 18.1% | |||||||
| 3,106 | 1st Source Corp. | 143,808 | |||||
| 5,205 | Ameris Bancorp | 232,716 | |||||
| 10,590 | Associated Banc-Corp | 212,647 | |||||
| 8,519 | Banc of California, Inc. | 136,048 | |||||
| 5,334 | Bank OZK | 211,013 | |||||
| 5,999 | BankUnited, Inc. | 204,986 | |||||
| 5,913 | Byline Bancorp, Inc. | 119,738 | |||||
| 5,561 | Cathay General Bancorp | 213,876 | |||||
| 3,572 | Community Trust Bancorp, Inc. | 144,845 | |||||
| 5,853 | ConnectOne Bancorp, Inc. | 134,970 | |||||
| 10,348 | CrossFirst Bankshares, Inc.(a) | 135,041 | |||||
| 6,199 | Customers Bancorp, Inc.(a) | 182,747 | |||||
| 3,613 | Eagle Bancorp, Inc. | 161,935 | |||||
| 17,406 | First BanCorp. | 238,114 | |||||
| 5,691 | First Financial Corp. | 257,176 | |||||
| 6,653 | Flushing Financial Corp. | 128,869 | |||||
| 10,807 | FNB Corp. | 125,361 | |||||
| 13,180 | Fulton Financial Corp. | 208,244 | |||||
| 2,590 | Great Southern Bancorp, Inc. | 147,811 | |||||
| 5,544 | Hancock Whitney Corp. | 253,971 | |||||
| 7,983 | Hanmi Financial Corp. | 189,037 | |||||
| 22,645 | Hope Bancorp, Inc. | 286,233 | |||||
| 8,672 | Horizon Bancorp, Inc. | 155,749 | |||||
| 5,787 | Independent Bank Corp. | 110,532 | |||||
| 4,198 | Mercantile Bank Corp. | 124,723 | |||||
| 5,278 | Midland States Bancorp, Inc. | 124,402 | |||||
| 8,196 | OceanFirst Financial Corp. | 152,773 | |||||
| 7,432 | OFG Bancorp | 186,766 | |||||
| 10,520 | Old Second Bancorp, Inc. | 137,286 | |||||
| 4,456 | Peapack-Gladstone Financial Corp. | 149,944 | |||||
| 3,463 | Popular, Inc. | 249,544 | |||||
| 5,348 | Premier Financial Corp. | 137,444 | |||||
| 6,012 | QCR Holdings, Inc. | 306,251 | |||||
| 5,610 | RBB Bancorp | 116,576 | |||||
| 5,323 | Synovus Financial Corp. | 199,666 | |||||
| 5,790 | Univest Financial Corp. | 135,949 | |||||
| 2,496 | Zions Bancorp NA | 126,947 | |||||
| 6,483,738 | |||||||
| Building Products — 1.3% | |||||||
| 1,825 | Builders FirstSource, Inc.(a) | 107,529 | |||||
| 2,560 | Owens Corning | 201,242 | |||||
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Building Products — (continued) | |||||||
| 2,013 | UFP Industries, Inc. | $ | 145,258 | ||||
| 454,029 | |||||||
| Chemicals — 1.8% | |||||||
| 4,194 | AdvanSix, Inc. | 134,627 | |||||
| 1,571 | CF Industries Holdings, Inc. | 151,209 | |||||
| 4,773 | Mosaic Co. (The) | 230,679 | |||||
| 1,494 | Westlake Corp. | 129,799 | |||||
| 646,314 | |||||||
| Commercial Services & Supplies — 1.3% | |||||||
| 18,090 | CoreCivic, Inc.(a) | 159,916 | |||||
| 22,730 | GEO Group, Inc. (The)(a) | 175,021 | |||||
| 4,628 | Heritage-Crystal Clean, Inc.(a) | 136,850 | |||||
| 471,787 | |||||||
| Communications Equipment — 0.3% | |||||||
| 1,252 | Lumentum Holdings, Inc.(a) | 85,850 | |||||
| Construction & Engineering — 0.3% | |||||||
| 4,845 | Sterling Infrastructure, Inc.(a) | 104,022 | |||||
| Consumer Finance — 2.3% | |||||||
| 4,996 | Ally Financial, Inc. | 139,039 | |||||
| 4,378 | Bread Financial Holdings, Inc. | 137,688 | |||||
| 2,840 | Encore Capital Group, Inc.(a) | 129,163 | |||||
| 5,074 | Enova International, Inc.(a) | 148,516 | |||||
| 2,103 | Nelnet, Inc., Class A | 166,536 | |||||
| 7,116 | SLM Corp. | 99,553 | |||||
| 820,495 | |||||||
| Diversified Consumer Services — 1.1% | |||||||
| 3,507 | H&R Block, Inc. | 149,188 | |||||
| 13,315 | Perdoceo Education Corp.(a) | 137,144 | |||||
| 2,598 | Stride, Inc.(a) | 109,194 | |||||
| 395,526 | |||||||
| Diversified Financial Services — 0.8% | |||||||
| 5,017 | A-Mark Precious Metals, Inc. | 142,433 | |||||
| 2,099 | Voya Financial, Inc. | 126,989 | |||||
| 269,422 | |||||||
| Diversified Telecommunication Services — 0.9% | |||||||
| 6,747 | EchoStar Corp., Class A(a) | 111,123 | |||||
| 20,095 | Liberty Latin America, Ltd., Class C(a) | 123,584 | |||||
| 10,389 | Lumen Technologies, Inc. | 75,632 | |||||
| 310,339 | |||||||
| Electric Utilities — 1.9% | |||||||
| 3,642 | ALLETE, Inc. | 182,282 | |||||
| 3,511 | OGE Energy Corp. | 128,011 | |||||
| 3,962 | Otter Tail Corp. | 243,742 | |||||
| 1,854 | Pinnacle West Capital Corp. | 119,602 | |||||
| 673,637 | |||||||
| Electrical Equipment — 0.8% | |||||||
| 1,300 | Atkore, Inc.(a) | 101,153 | |||||
See accompanying Notes to the Financial Statements.
56
| Sterling Capital Behavioral Small Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Electrical Equipment — (continued) | |||||||
| 1,743 | Encore Wire Corp. | $ | 201,386 | ||||
| 302,539 | |||||||
| Electronic Equipment, Instruments & Components — 2.8% | |||||||
| 4,550 | CTS Corp. | 189,508 | |||||
| 1,606 | Jabil, Inc. | 92,682 | |||||
| 8,613 | Knowles Corp.(a) | 104,820 | |||||
| 5,118 | Sanmina Corp.(a) | 235,838 | |||||
| 13,351 | TTM Technologies, Inc.(a) | 175,966 | |||||
| 11,060 | Vishay Intertechnology, Inc. | 196,757 | |||||
| 995,571 | |||||||
| Energy Equipment & Services — 0.4% | |||||||
| 1,264 | Nabors Industries, Ltd.(a) | 128,233 | |||||
| Equity Real Estate Investment Trusts (REITs) — 7.7% | |||||||
| 8,977 | Acadia Realty Trust | 113,290 | |||||
| 7,983 | Alexander & Baldwin, Inc. | 132,358 | |||||
| 15,213 | Apple Hospitality REIT, Inc. | 213,895 | |||||
| 3,437 | Cousins Properties, Inc. | 80,254 | |||||
| 7,611 | CTO Realty Growth, Inc. | 142,630 | |||||
| 21,175 | DiamondRock Hospitality Co. | 159,024 | |||||
| 2,656 | EPR Properties | 95,244 | |||||
| 9,653 | Essential Properties Realty Trust, Inc. | 187,751 | |||||
| 2,021 | Kilroy Realty Corp. | 85,104 | |||||
| 12,070 | Kimco Realty Corp. | 222,209 | |||||
| 7,311 | Medical Properties Trust, Inc. | 86,708 | |||||
| 2,820 | National Retail Properties, Inc. | 112,405 | |||||
| 4,178 | Omega Healthcare Investors, Inc. | 123,209 | |||||
| 8,098 | Park Hotels & Resorts, Inc. | 91,183 | |||||
| 11,244 | Piedmont Office Realty Trust, Inc., Class A | 118,737 | |||||
| 4,449 | PotlatchDeltic Corp. | 182,587 | |||||
| 1,923 | Regency Centers Corp. | 103,554 | |||||
| 1,895 | SL Green Realty Corp. | 76,103 | |||||
| 3,965 | STORE Capital Corp. | 124,223 | |||||
| 7,551 | VICI Properties, Inc. | 225,397 | |||||
| 13,589 | Whitestone REIT | 114,963 | |||||
| 2,790,828 | |||||||
| Food & Staples Retailing — 2.1% | |||||||
| 4,243 | Albertsons Cos., Inc., Class A | 105,481 | |||||
| 11,525 | SpartanNash Co. | 334,456 | |||||
| 7,487 | Sprouts Farmers Market, Inc.(a) | 207,764 | |||||
| 3,081 | United Natural Foods, Inc.(a) | 105,894 | |||||
| 753,595 | |||||||
| Food Products — 0.2% | |||||||
| 2,484 | Pilgrim's Pride Corp.(a) | 57,182 | |||||
| Gas Utilities — 0.8% | |||||||
| 1,305 | Atmos Energy Corp. | 132,914 | |||||
| 2,459 | National Fuel Gas Co. | 151,352 | |||||
| 131 | ONE Gas, Inc. | 9,221 | |||||
| 293,487 | |||||||
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Health Care Equipment & Supplies — 1.7% | |||||||
| 6,211 | Avanos Medical, Inc.(a) | $ | 135,276 | ||||
| 3,007 | Envista Holdings Corp.(a) | 98,660 | |||||
| 4,059 | Meridian Bioscience, Inc.(a) | 127,980 | |||||
| 1,277 | QuidelOrtho Corp.(a) | 91,280 | |||||
| 7,001 | Varex Imaging Corp.(a) | 148,001 | |||||
| 601,197 | |||||||
| Health Care Providers & Services — 4.6% | |||||||
| 2,051 | Acadia Healthcare Co., Inc.(a) | 160,347 | |||||
| 9,170 | AdaptHealth Corp.(a) | 172,213 | |||||
| 1,383 | AMN Healthcare Services, Inc.(a) | 146,543 | |||||
| 1,749 | DaVita, Inc.(a) | 144,765 | |||||
| 1,593 | Ensign Group, Inc. (The) | 126,643 | |||||
| 2,913 | Fulgent Genetics, Inc.(a) | 111,044 | |||||
| 1,780 | Henry Schein, Inc.(a) | 117,071 | |||||
| 46 | ModivCare, Inc.(a) | 4,585 | |||||
| 503 | Molina Healthcare, Inc.(a) | 165,909 | |||||
| 3,294 | Premier, Inc., Class A | 111,798 | |||||
| 4,372 | Tenet Healthcare Corp.(a) | 225,508 | |||||
| 998 | U.S. Physical Therapy, Inc. | 75,868 | |||||
| 1,117 | Universal Health Services, Inc., Class B | 98,497 | |||||
| 1,660,791 | |||||||
| Health Care Technology — 0.8% | |||||||
| 4,492 | Computer Programs & Systems, Inc.(a) | 125,237 | |||||
| 6,816 | HealthStream, Inc.(a) | 144,908 | |||||
| 270,145 | |||||||
| Hotels, Restaurants & Leisure — 0.3% | |||||||
| 3,392 | Dave & Buster's Entertainment, Inc.(a) | 105,254 | |||||
| Household Durables — 1.6% | |||||||
| 2,001 | Ethan Allen Interiors, Inc. | 42,301 | |||||
| 3,192 | PulteGroup, Inc. | 119,700 | |||||
| 7,881 | Taylor Morrison Home Corp.(a) | 183,785 | |||||
| 1,931 | Toll Brothers, Inc. | 81,102 | |||||
| 10,487 | TRI Pointe Homes, Inc.(a) | 158,459 | |||||
| 585,347 | |||||||
| Independent Power and Renewable Electricity Producers — 0.3% | |||||||
| 5,164 | Vistra Corp. | 108,444 | |||||
| Insurance — 3.3% | |||||||
| 4,268 | Argo Group International Holdings, Ltd. | 82,202 | |||||
| 2,832 | Assured Guaranty, Ltd. | 137,210 | |||||
| 2,557 | Axis Capital Holdings, Ltd. | 125,677 | |||||
| 2,867 | Brighthouse Financial, Inc.(a) | 124,485 | |||||
| 483 | Everest Re Group, Ltd. | 126,758 | |||||
| 51,140 | Genworth Financial, Inc., Class A(a) | 178,990 | |||||
| 115 | Lincoln National Corp. | 5,050 | |||||
| 5,594 | Old Republic International Corp. | 117,082 | |||||
| 929 | RenaissanceRe Holdings, Ltd. | 130,422 | |||||
| 3,556 | Unum Group | 137,973 | |||||
| 1,165,849 | |||||||
Continued
57
| Sterling Capital Behavioral Small Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | |||||
| COMMON STOCKS — (continued) | ||||||
| Interactive Media & Services — 0.4% | ||||||
| 3,721 | Yelp, Inc.(a) | $ | 126,179 | |||
| IT Services — 0.4% | ||||||
| 5,900 | International Money Express, Inc.(a) | 134,461 | ||||
| Leisure Products — 0.0% | ||||||
| 266 | Vista Outdoor, Inc.(a) | 6,469 | ||||
| Marine — 1.4% | ||||||
| 2,611 | Eagle Bulk Shipping, Inc. | 112,743 | ||||
| 8,718 | Genco Shipping & Trading, Ltd. | 109,237 | ||||
| 4,793 | Matson, Inc. | 294,865 | ||||
| 516,845 | ||||||
| Media — 1.1% | ||||||
| 13,213 | Altice USA, Inc., Class A(a) | 77,032 | ||||
| 1,708 | Interpublic Group of Cos., Inc. (The) | 43,725 | ||||
| 900 | Nexstar Media Group, Inc. | 150,165 | ||||
| 6,019 | Sinclair Broadcast Group, Inc., Class A | 108,883 | ||||
| 379,805 | ||||||
| Metals & Mining — 1.9% | ||||||
| 1,612 | Steel Dynamics, Inc. | 114,372 | ||||
| 19,637 | SunCoke Energy, Inc. | 114,091 | ||||
| 11,016 | TimkenSteel Corp.(a) | 165,130 | ||||
| 4,918 | U.S. Steel Corp. | 89,114 | ||||
| 6,846 | Warrior Met Coal, Inc. | 194,700 | ||||
| 677,407 | ||||||
| Mortgage Real Estate Investment Trusts (REITs) — 1.9% | ||||||
| 10,708 | Ares Commercial Real Estate Corp. | 111,899 | ||||
| 10,176 | Blackstone Mortgage Trust, Inc., Class A | 237,508 | ||||
| 8,446 | KKR Real Estate Finance Trust, Inc. | 137,247 | ||||
| 10,261 | Ready Capital Corp. | 104,047 | ||||
| 12,370 | Rithm Capital Corp. | 90,548 | ||||
| 681,249 | ||||||
| Multiline Retail — 1.2% | ||||||
| 675 | Dillard's, Inc., Class A | 184,113 | ||||
| 11,649 | Macy's, Inc. | 182,540 | ||||
| 4,734 | Nordstrom, Inc. | 79,200 | ||||
| 445,853 | ||||||
| Multi-Utilities — 1.6% | ||||||
| 5,418 | Avista Corp. | 200,737 | ||||
| 2,709 | Black Hills Corp. | 183,480 | ||||
| 4,039 | NorthWestern Corp. | 199,042 | ||||
| 583,259 | ||||||
| Oil, Gas & Consumable Fuels — 4.9% | ||||||
| 1,183 | Chord Energy Corp. | 161,799 | ||||
| 14,280 | CNX Resources Corp.(a) | 221,768 | ||||
| 1,007 | Laredo Petroleum, Inc.(a) | 63,290 | ||||
| 9,583 | Marathon Oil Corp. | 216,384 | ||||
| 10,745 | Murphy Oil Corp. | 377,902 | ||||
| 3,571 | PDC Energy, Inc. | 206,368 | ||||
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Oil, Gas & Consumable Fuels — (continued) | |||||||
| 29,081 | Permian Resources Corp.(a) | $ | 197,751 | ||||
| 5,828 | SM Energy Co. | 219,191 | |||||
| 6,220 | Talos Energy, Inc.(a) | 103,563 | |||||
| 1,768,016 | |||||||
| Paper & Forest Products — 0.3% | |||||||
| 2,218 | Louisiana-Pacific Corp. | 113,540 | |||||
| Pharmaceuticals — 3.4% | |||||||
| 24,896 | Amneal Pharmaceuticals, Inc.(a) | 50,290 | |||||
| 7,928 | Amphastar Pharmaceuticals, Inc.(a) | 222,777 | |||||
| 6,232 | Corcept Therapeutics, Inc.(a) | 159,788 | |||||
| 7,832 | Innoviva, Inc.(a) | 90,930 | |||||
| 766 | Jazz Pharmaceuticals PLC(a) | 102,100 | |||||
| 3,490 | Organon & Co. | 81,666 | |||||
| 4,005 | Prestige Consumer Healthcare, Inc.(a) | 199,569 | |||||
| 6,273 | Supernus Pharmaceuticals, Inc.(a) | 212,341 | |||||
| 11,064 | Viatris, Inc. | 94,265 | |||||
| 1,213,726 | |||||||
| Professional Services — 0.7% | |||||||
| 1,546 | CRA International, Inc. | 137,192 | |||||
| 769 | Forrester Research, Inc.(a) | 27,692 | |||||
| 3,396 | Heidrick & Struggles International, Inc. | 88,262 | |||||
| 253,146 | |||||||
| Real Estate Management & Development — 3.0% | |||||||
| 16,523 | Anywhere Real Estate, Inc.(a) | 134,002 | |||||
| 6,432 | Cushman & Wakefield PLC(a) | 73,646 | |||||
| 11,714 | Forestar Group, Inc.(a) | 131,080 | |||||
| 1,870 | Howard Hughes Corp. (The)(a) | 103,579 | |||||
| 864 | Jones Lang LaSalle, Inc.(a) | 130,524 | |||||
| 10,315 | Kennedy-Wilson Holdings, Inc. | 159,470 | |||||
| 16,086 | Newmark Group, Inc., Class A | 129,653 | |||||
| 5,049 | RE/MAX Holdings, Inc., Class A | 95,477 | |||||
| 4,067 | RMR Group, Inc. (The), Class A | 96,347 | |||||
| 1,053,778 | |||||||
| Road & Rail — 1.8% | |||||||
| 4,103 | ArcBest Corp. | 298,411 | |||||
| 6,052 | Covenant Logistics Group, Inc. | 173,692 | |||||
| 12,120 | Daseke, Inc.(a) | 65,569 | |||||
| 2,246 | Knight-Swift Transportation Holdings, Inc. | 109,897 | |||||
| 647,569 | |||||||
| Semiconductors & Semiconductor Equipment — 3.0% | |||||||
| 3,609 | Alpha & Omega Semiconductor, Ltd.(a) | 111,013 | |||||
| 14,048 | Amkor Technology, Inc. | 239,518 | |||||
| 2,226 | Axcelis Technologies, Inc.(a) | 134,807 | |||||
| 9,771 | Photronics, Inc.(a) | 142,852 | |||||
| 12,356 | Rambus, Inc.(a) | 314,089 | |||||
| 9,207 | SMART Global Holdings, Inc.(a) | 146,115 | |||||
| 1,088,394 | |||||||
Continued
58
| Sterling Capital Behavioral Small Cap Value Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | ||||||
| COMMON STOCKS — (continued) | |||||||
| Specialty Retail — 4.8% | |||||||
| 1,244 | Asbury Automotive Group, Inc.(a) | $ | 187,969 | ||||
| 2,091 | AutoNation, Inc.(a) | 213,010 | |||||
| 3,400 | Buckle, Inc. (The) | 107,644 | |||||
| 4,346 | Caleres, Inc. | 105,260 | |||||
| 8,830 | Designer Brands, Inc., Class A | 135,187 | |||||
| 2,414 | Genesco, Inc.(a) | 94,919 | |||||
| 1,260 | Group 1 Automotive, Inc. | 180,016 | |||||
| 409 | Lithia Motors, Inc. | 87,751 | |||||
| 2,978 | MarineMax, Inc.(a) | 88,715 | |||||
| 675 | Murphy USA, Inc. | 185,564 | |||||
| 1,093 | Penske Automotive Group, Inc. | 107,584 | |||||
| 3,986 | Signet Jewelers, Ltd. | 227,959 | |||||
| 1,721,578 | |||||||
| Textiles, Apparel & Luxury Goods — 0.4% | |||||||
| 1,481 | Oxford Industries, Inc. | 132,964 | |||||
| Thrifts & Mortgage Finance — 3.0% | |||||||
| 5,708 | Essent Group, Ltd. | 199,038 | |||||
| 1,567 | Federal Agricultural Mortgage Corp., Class C | 155,352 | |||||
| 8,458 | MGIC Investment Corp. | 108,431 | |||||
| 6,052 | Mr Cooper Group, Inc.(a) | 245,106 | |||||
| 11,780 | Radian Group, Inc. | 227,236 | |||||
| 4,521 | TrustCo Bank Corp. NY | 142,050 | |||||
| 1,077,213 | |||||||
| Tobacco — 0.4% | |||||||
| 15,492 | Vector Group, Ltd. | 136,484 | |||||
| Trading Companies & Distributors — 3.1% | |||||||
| 2,361 | BlueLinx Holdings, Inc.(a) | 146,618 | |||||
| 5,516 | Boise Cascade Co. | 327,981 | |||||
| 7,044 | Rush Enterprises, Inc., Class A | 308,950 | |||||
| 5,643 | Titan Machinery, Inc.(a) | 159,471 | |||||
| 1,854 | Veritiv Corp.(a) | 181,266 | |||||
| 1,124,286 | |||||||
| Wireless Telecommunication Services — 0.3% | |||||||
| 4,521 | U.S. Cellular Corp.(a) | 117,682 | |||||
| Total Common Stocks | |||||||
| (Cost $36,127,182) | 35,465,794 | ||||||
| WARRANTS — 0.0% | |||||||
| Energy Equipment & Services — 0.0% | |||||||
| 911 | Nabors Industries, Ltd., 06/11/2026(a) | 16,535 | |||||
| Total Warrants | |||||||
| (Cost $–) | 16,535 | ||||||
| Shares | Fair Value | |||||
| MONEY MARKET FUND — 0.6% | ||||||
| 212,418 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | $ | 212,418 | |||
| Total Money Market Fund | ||||||
| (Cost $212,418) | 212,418 | |||||
| Total Investments — 99.7% | ||||||
| (Cost $36,339,600) | 35,694,747 | |||||
| Net Other Assets (Liabilities) — 0.3% | 97,408 | |||||
| NET ASSETS — 100.0% | $ | 35,792,155 | ||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
Continued
59
| Sterling Capital Special Opportunities Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — 100.0% | ||||||||
| Aerospace & Defense — 1.7% | ||||||||
| 39,260 | General Dynamics Corp. | $ | 8,329,794 | |||||
| Auto Components — 3.0% | ||||||||
| 189,464 | Aptiv PLC(a) | 14,817,979 | ||||||
| Biotechnology — 2.9% | ||||||||
| 20,687 | Regeneron Pharmaceuticals, Inc.(a) | 14,250,654 | ||||||
| Capital Markets — 8.0% | ||||||||
| 347,512 | Charles Schwab Corp. (The) | 24,975,688 | ||||||
| 48,024 | S&P Global, Inc. | 14,664,128 | ||||||
| 39,639,816 | ||||||||
| Communications Equipment — 3.5% | ||||||||
| 120,813 | F5, Inc.(a) | 17,485,266 | ||||||
| Consumer Finance — 1.7% | ||||||||
| 89,457 | Capital One Financial Corp. | 8,245,252 | ||||||
| Containers & Packaging — 2.3% | ||||||||
| 231,810 | Ball Corp. | 11,201,059 | ||||||
| Electronic Equipment, Instruments & Components — 1.9% | ||||||||
| 39,730 | Amphenol Corp., Class A | 2,660,321 | ||||||
| 190,166 | Coherent Corp.(a) | 6,627,285 | ||||||
| 9,287,606 | ||||||||
| Entertainment — 3.4% | ||||||||
| 155,176 | Take-Two Interactive Software, Inc.(a) | 16,914,184 | ||||||
| Health Care Equipment & Supplies — 2.1% | ||||||||
| 155,701 | Hologic, Inc.(a) | 10,045,829 | ||||||
| Health Care Providers & Services — 11.3% | ||||||||
| 132,244 | HCA Healthcare, Inc. | 24,305,125 | ||||||
| 62,628 | UnitedHealth Group, Inc. | 31,629,645 | ||||||
| 55,934,770 | ||||||||
| Household Durables — 1.5% | ||||||||
| 99,917 | Lennar Corp., Class A | 7,448,812 | ||||||
| Interactive Media & Services — 5.7% | ||||||||
| 292,481 | Alphabet, Inc., Class C(a) | 28,122,048 | ||||||
| Internet & Direct Marketing Retail — 4.6% | ||||||||
| 200,885 | Amazon.com, Inc.(a) | 22,700,005 | ||||||
| IT Services — 12.0% | ||||||||
| 226,574 | Akamai Technologies, Inc.(a) | 18,198,424 | ||||||
| 11,171 | Global Payments, Inc. | 1,207,026 | ||||||
| 239,848 | PayPal Holdings, Inc.(a) | 20,643,717 | ||||||
| 108,572 | Visa, Inc., Class A | 19,287,816 | ||||||
| 59,336,983 | ||||||||
| Life Sciences Tools & Services — 8.1% | ||||||||
| 100,081 | Danaher Corp. | 25,849,921 | ||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Life Sciences Tools & Services — (continued) | ||||||||
| 77,923 | IQVIA Holdings, Inc.(a) | $ | 14,114,972 | |||||
| 39,964,893 | ||||||||
| Media — 3.6% | ||||||||
| 609,559 | Comcast Corp., Class A | 17,878,365 | ||||||
| Pharmaceuticals — 2.6% | ||||||||
| 181,598 | Bristol-Myers Squibb Co. | 12,909,802 | ||||||
| Professional Services — 1.9% | ||||||||
| 56,029 | Verisk Analytics, Inc. | 9,554,625 | ||||||
| Real Estate Management & Development — 2.3% | ||||||||
| 170,351 | CBRE Group, Inc., Class A(a) | 11,500,396 | ||||||
| Semiconductors & Semiconductor Equipment — 4.4% | ||||||||
| 146,294 | NXP Semiconductors NV | 21,579,828 | ||||||
| Software — 7.3% | ||||||||
| 44,228 | Intuit, Inc. | 17,130,389 | ||||||
| 183,516 | PTC, Inc.(a) | 19,195,774 | ||||||
| 36,326,163 | ||||||||
| Specialty Retail — 2.4% | ||||||||
| 5,550 | AutoZone, Inc.(a) | 11,887,712 | ||||||
| Wireless Telecommunication Services — 1.8% | ||||||||
| 66,132 | T-Mobile U.S. Inc(a) | 8,872,930 | ||||||
| Total Common Stocks | ||||||||
| (Cost $338,258,291) | 494,234,771 | |||||||
| MONEY MARKET FUND — 0.6% | ||||||||
| 3,179,282 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 3,179,282 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $3,179,282) | 3,179,282 | |||||||
| Total Investments — 100.6% | ||||||||
| (Cost $341,437,573) | 497,414,053 | |||||||
| Net Other Assets (Liabilities) — (0.6)% | (2,918,640 | ) | ||||||
| NET ASSETS—100.0% | $ | 494,495,413 | ||||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
See accompanying Notes to the Financial Statements.
60
| Sterling Capital Equity Income Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — 99.0% | ||||||||
| Aerospace & Defense — 1.9% | ||||||||
| 184,921 | L3Harris Technologies, Inc. | $ | 38,432,131 | |||||
| Air Freight & Logistics — 3.2% | ||||||||
| 403,584 | United Parcel Service, Inc., Class B | 65,194,959 | ||||||
| Beverages — 3.2% | ||||||||
| 51,752 | Coca-Cola Co. (The) | 2,899,147 | ||||||
| 379,235 | PepsiCo, Inc. | 61,913,906 | ||||||
| 64,813,053 | ||||||||
| Biotechnology — 3.5% | ||||||||
| 531,656 | AbbVie, Inc. | 71,353,552 | ||||||
| Capital Markets — 6.2% | ||||||||
| 85,748 | BlackRock, Inc. | 47,185,409 | ||||||
| 267,478 | Goldman Sachs Group, Inc. (The) | 78,384,428 | ||||||
| 125,569,837 | ||||||||
| Chemicals — 2.0% | ||||||||
| 169,984 | Air Products & Chemicals, Inc. | 39,560,376 | ||||||
| Communications Equipment — 6.7% | ||||||||
| 1,634,691 | Cisco Systems, Inc. | 65,387,640 | ||||||
| 308,172 | Motorola Solutions, Inc. | 69,021,283 | ||||||
| 134,408,923 | ||||||||
| Consumer Finance — 2.0% | ||||||||
| 441,254 | Discover Financial Services | 40,118,814 | ||||||
| Electronic Equipment, Instruments & Components — 0.2% | ||||||||
| 160,068 | Corning, Inc. | 4,645,173 | ||||||
| Equity Real Estate Investment Trusts (REITs) — 2.5% | ||||||||
| 347,941 | Crown Castle, Inc. | 50,294,872 | ||||||
| Food Products — 2.1% | ||||||||
| 654,753 | Tyson Foods, Inc., Class A | 43,167,865 | ||||||
| Health Care Equipment & Supplies — 6.3% | ||||||||
| 686,666 | Abbott Laboratories | 66,441,802 | ||||||
| 739,128 | Medtronic PLC | 59,684,586 | ||||||
| 126,126,388 | ||||||||
| Health Care Providers & Services — 8.1% | ||||||||
| 811,634 | CVS Health Corp. | 77,405,535 | ||||||
| 188,100 | Elevance Health, Inc. | 85,442,544 | ||||||
| 162,848,079 | ||||||||
| Hotels, Restaurants & Leisure — 4.4% | ||||||||
| 1,061,880 | Starbucks Corp. | 89,474,009 | ||||||
| Industrial Conglomerates — 2.6% | ||||||||
| 307,000 | Honeywell International, Inc. | 51,259,790 | ||||||
| Insurance — 12.4% | ||||||||
| 968,929 | Aflac, Inc. | 54,453,810 | ||||||
| 388,506 | Chubb, Ltd. | 70,661,471 | ||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Insurance — (continued) | ||||||||
| 480,164 | Marsh & McLennan Cos., Inc. | $ | 71,683,684 | |||||
| 530,521 | MetLife, Inc. | 32,245,066 | ||||||
| 134,191 | Travelers Cos., Inc. (The) | 20,558,061 | ||||||
| 249,602,092 | ||||||||
| IT Services — 7.7% | ||||||||
| 260,865 | Accenture PLC, Class A | 67,120,565 | ||||||
| 249,849 | Amdocs, Ltd. | 19,850,503 | ||||||
| 899,269 | Fidelity National Information Services, Inc. | 67,957,758 | ||||||
| 154,928,826 | ||||||||
| Multiline Retail — 2.4% | ||||||||
| 320,741 | Target Corp. | 47,594,757 | ||||||
| Oil, Gas & Consumable Fuels — 0.3% | ||||||||
| 47,179 | EOG Resources, Inc. | 5,271,310 | ||||||
| Pharmaceuticals — 6.7% | ||||||||
| 409,806 | Johnson & Johnson | 66,945,908 | ||||||
| 799,138 | Merck & Co., Inc. | 68,821,765 | ||||||
| 135,767,673 | ||||||||
| Professional Services — 3.6% | ||||||||
| 794,817 | Booz Allen Hamilton Holding Corp. | 73,401,350 | ||||||
| Semiconductors & Semiconductor Equipment — 3.6% | ||||||||
| 526,562 | Analog Devices, Inc. | 73,371,149 | ||||||
| Software — 3.5% | ||||||||
| 303,565 | Microsoft Corp. | 70,700,288 | ||||||
| Specialty Retail — 3.9% | ||||||||
| 281,617 | Home Depot, Inc. (The) | 77,709,395 | ||||||
| Total Common Stocks | ||||||||
| (Cost $1,478,453,561) | 1,995,614,661 | |||||||
| MONEY MARKET FUND — 1.0% | ||||||||
| 19,567,048 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(a) | 19,567,048 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $19,567,048) | 19,567,048 | |||||||
| Total Investments — 100.0% | ||||||||
| (Cost $1,498,020,609) | �� | 2,015,181,709 | ||||||
| Net Other Assets (Liabilities) — 0.0% | (720,192 | ) | ||||||
| NET ASSETS—100.0% | $ | 2,014,461,517 | ||||||
| (a) | Represents the current yield as of report date. |
See accompanying Notes to the Financial Statements.
61
| Sterling Capital Behavioral International Equity Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — 96.4% | ||||||||
| Australia — 6.0% | ||||||||
| 31,200 | Australia & New Zealand Banking Group, Ltd. | $ | 456,731 | |||||
| 1,775 | BHP Group, Ltd. | 44,123 | ||||||
| 75,875 | National Australia Bank, Ltd. | 1,404,878 | ||||||
| 264,250 | Origin Energy, Ltd. | 876,773 | ||||||
| 262,500 | Qantas Airways, Ltd.(a) | 842,395 | ||||||
| 17,800 | Sonic Healthcare, Ltd. | 347,193 | ||||||
| 244,375 | South32, Ltd. | 580,124 | ||||||
| 81,150 | Suncorp Group, Ltd. | 523,657 | ||||||
| 781,125 | Vicinity Centres | 870,940 | ||||||
| 5,946,814 | ||||||||
| Austria — 0.8% | ||||||||
| 11,575 | ANDRITZ AG | 489,851 | ||||||
| 9,050 | OMV AG | 327,548 | ||||||
| 817,399 | ||||||||
| Belgium — 0.9% | ||||||||
| 62,950 | Telenet Group Holding NV | 865,474 | ||||||
| China — 0.3% | ||||||||
| 161,200 | Chow Tai Fook Jewellery Group, Ltd. | 302,956 | ||||||
| Denmark — 0.6% | ||||||||
| 11,475 | Pandora A/S | 536,643 | ||||||
| Finland — 0.9% | ||||||||
| 71,600 | Stora Enso OYJ, Class R | 909,567 | ||||||
| France — 12.1% | ||||||||
| 18,500 | Accor SA(a) | 387,309 | ||||||
| 27,100 | AXA SA | 591,672 | ||||||
| 4,550 | Capgemini SE | 728,457 | ||||||
| 63,875 | Carrefour SA | 885,888 | ||||||
| 14,625 | Cie de Saint-Gobain | 522,926 | ||||||
| 18,600 | Covivio | 896,030 | ||||||
| 4,175 | Dassault Aviation SA | 474,993 | ||||||
| 12,325 | Eiffage SA. | 988,379 | ||||||
| 93,500 | Engie SA. | 1,076,175 | ||||||
| 558 | Euroapi SA(a) | 9,263 | ||||||
| 10,400 | Ipsen SA | 962,521 | ||||||
| 21,350 | Publicis Groupe SA | 1,011,621 | ||||||
| 20,550 | Sanofi | 1,564,811 | ||||||
| 48,900 | Societe Generale SA | 967,051 | ||||||
| 11,150 | TotalEnergies SE | 523,098 | ||||||
| 7,000 | Worldline SA(a)(b) | 276,680 | ||||||
| 11,866,874 | ||||||||
| Germany — 6.3% | ||||||||
| 25,950 | Bayer AG | 1,195,634 | ||||||
| 8,875 | Bayerische Motoren Werke AG | 601,526 | ||||||
| 162,700 | Deutsche Lufthansa AG(a) | 935,226 | ||||||
| 54,625 | Deutsche Telekom AG | 929,809 | ||||||
| 41,150 | Fresenius SE & Co. KGaA | 877,121 | ||||||
| 22,750 | HeidelbergCement AG | 898,720 | ||||||
| 14,675 | Mercedes-Benz Group AG | 742,071 | ||||||
| 6,180,107 | ||||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Hong Kong — 2.2% | ||||||||
| 17,200 | Jardine Matheson Holdings, Ltd. | $ | 869,597 | |||||
| 104,000 | New World Development Co., Ltd. | 295,369 | ||||||
| 89,500 | Sun Hung Kai Properties, Ltd. | 987,747 | ||||||
| 2,152,713 | ||||||||
| Ireland — 0.5% | ||||||||
| 11,300 | AerCap Holdings NV(a) | 478,329 | ||||||
| Israel — 1.9% | ||||||||
| 8,400 | Check Point Software Technologies, Ltd.(a) | 940,968 | ||||||
| 117,700 | Teva Pharmaceutical Industries, Ltd., ADR(a) | 949,839 | ||||||
| 1,890,807 | ||||||||
| Italy — 4.0% | ||||||||
| 71,950 | Assicurazioni Generali SpA | 982,429 | ||||||
| 84,500 | Stellantis NV | 998,152 | ||||||
| 135,050 | Terna Rete Elettrica Nazionale SpA | 822,526 | ||||||
| 106,675 | UniCredit SpA | 1,079,987 | ||||||
| 3,883,094 | ||||||||
| Japan — 25.1% | ||||||||
| 16,500 | Asahi Group Holdings, Ltd. | 514,405 | ||||||
| 22,200 | Astellas Pharma, Inc. | 294,090 | ||||||
| 22,200 | Canon, Inc. | 484,904 | ||||||
| 20,200 | Dentsu Group, Inc. | 574,236 | ||||||
| 46,200 | Inpex Corp. | 430,912 | ||||||
| 45,800 | ITOCHU Corp. | 1,105,517 | ||||||
| 66,000 | Japan Tobacco, Inc. | 1,084,562 | ||||||
| 110,200 | Marubeni Corp. | 961,549 | ||||||
| 41,000 | Mitsubishi Corp. | 1,121,359 | ||||||
| 212,500 | Mitsubishi HC Capital, Inc. | 913,372 | ||||||
| 20,200 | Mitsubishi Heavy Industries, Ltd. | 671,837 | ||||||
| 53,800 | Mitsui & Co., Ltd. | 1,144,852 | ||||||
| 39,100 | Mitsui OSK Lines, Ltd. | 699,601 | ||||||
| 99,400 | Mizuho Financial Group, Inc. | 1,075,968 | ||||||
| 21,700 | Nippon Steel Corp. | 301,158 | ||||||
| 43,100 | Nippon Telegraph & Telephone Corp. | 1,162,507 | ||||||
| 31,500 | Nippon Yusen KK | 534,677 | ||||||
| 16,000 | Nitto Denko Corp. | 866,332 | ||||||
| 188,700 | Nomura Holdings, Inc. | 625,140 | ||||||
| 233,300 | Oji Holdings Corp. | 865,694 | ||||||
| 41,300 | Ono Pharmaceutical Co., Ltd. | 964,716 | ||||||
| 25,100 | Open House Co., Ltd. | 847,965 | ||||||
| 106,000 | Renesas Electronics Corp.(a) | 888,623 | ||||||
| 60,000 | Seiko Epson Corp. | 819,267 | ||||||
| 71,000 | Sekisui Chemical Co., Ltd. | 868,609 | ||||||
| 29,200 | Subaru Corp. | 441,281 | ||||||
| 70,500 | SUMCO Corp. | 821,399 | ||||||
| 119,900 | Sumitomo Chemical Co., Ltd. | 412,408 | ||||||
| 79,200 | Sumitomo Corp. | 978,467 | ||||||
| 6,200 | Sumitomo Mitsui Financial Group, Inc. | 171,873 | ||||||
| 21,900 | Taisei Corp. | 607,366 | ||||||
| 45,200 | Takeda Pharmaceutical Co., Ltd. | 1,173,745 | ||||||
| 14,700 | USS Co., Ltd. | 227,029 | ||||||
| 24,655,420 | ||||||||
See accompanying Notes to the Financial Statements.
62
| Sterling Capital Behavioral International Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Netherlands — 4.7% | ||||||||
| 220,400 | Aegon NV | $ | 876,090 | |||||
| 14,175 | Heineken Holding NV | 970,401 | ||||||
| 30,775 | JDE Peet's NV | 899,802 | ||||||
| 41,900 | Koninklijke Ahold Delhaize NV | 1,067,254 | ||||||
| 23,050 | OCI NV | 843,897 | ||||||
| 4,657,444 | ||||||||
| Norway — 0.8% | ||||||||
| 51,375 | DNB Bank ASA | 815,222 | ||||||
| Singapore — 2.2% | ||||||||
| 132,900 | Oversea-Chinese Banking Corp., Ltd. | 1,088,968 | ||||||
| 56,600 | United Overseas Bank, Ltd. | 1,025,172 | ||||||
| 2,114,140 | ||||||||
| Spain — 2.5% | ||||||||
| 316,550 | CaixaBank SA | 1,019,568 | ||||||
| 57,125 | Repsol SA | 656,381 | ||||||
| 264,888 | Telefonica SA | 875,698 | ||||||
| 2,551,647 | ||||||||
| Sweden — 1.3% | ||||||||
| 49,250 | Securitas AB, Class B | 341,895 | ||||||
| 70,400 | Swedbank AB, Class A | 924,054 | ||||||
| 1,265,949 | ||||||||
| Switzerland — 8.0% | ||||||||
| 18,075 | Adecco Group AG | 498,862 | ||||||
| 25,600 | Holcim AG | 1,049,102 | ||||||
| 28,600 | Novartis AG | 2,180,378 | ||||||
| 1,675 | Roche Holding AG | 545,267 | ||||||
| 17,925 | Swatch Group AG (The) | 1,554,835 | ||||||
| 10,325 | Swiss Re AG | 761,510 | ||||||
| 3,300 | Zurich Insurance Group AG | 1,315,548 | ||||||
| 7,905,502 | ||||||||
| United Kingdom — 14.6% | ||||||||
| 21,450 | Anglo American PLC | 644,054 | ||||||
| 329,750 | BP PLC | 1,575,674 | ||||||
| 43,100 | British American Tobacco PLC | 1,545,460 | ||||||
| 163,000 | CK Hutchison Holdings, Ltd. | 897,519 | ||||||
| 20,600 | Coca-Cola Europacific Partners PLC | 877,972 | ||||||
| 54,675 | Imperial Brands PLC | 1,124,275 | ||||||
| 1,425 | InterContinental Hotels Group PLC | 68,631 | ||||||
| 423,500 | M&G PLC | 780,138 | ||||||
| 138,325 | Phoenix Group Holdings PLC | 805,584 | ||||||
| 15,775 | Rio Tinto PLC | 853,520 | ||||||
| 94,325 | Shell PLC | 2,340,008 | ||||||
| 40,550 | Unilever PLC | 1,781,761 | ||||||
| 964,650 | Vodafone Group PLC | 1,079,636 | ||||||
| 14,374,232 | ||||||||
| United States — 0.7% | ||||||||
| 46,280 | GSK PLC | 668,408 | ||||||
| Total Common Stocks | ||||||||
| (Cost $106,980,172) | 94,838,741 | |||||||
| Shares | Fair Value | |||||||
| PREFERRED STOCKS — 1.9% | ||||||||
| Germany — 1.9% | ||||||||
| 13,775 | Bayerische Motoren Werke AG | $ | 894,524 | |||||
| 8,000 | Volkswagen AG | 977,536 | ||||||
| Total Preferred Stocks | ||||||||
| (Cost $2,276,407) | 1,872,060 | |||||||
| MONEY MARKET FUND — 0.6% | ||||||||
| United States — 0.6% | ||||||||
| 581,715 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(c) | 581,715 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $581,715) | 581,715 | |||||||
| Total Investments — 98.9% | ||||||||
| (Cost $109,838,294) | 97,292,516 | |||||||
| Net Other Assets (Liabilities) — 1.1% | 1,070,538 | |||||||
| NET ASSETS - 100.0% | $ | 98,363,054 | ||||||
| (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. Sterling Capital Management LLC (the “Advisor”), using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (c) | Represents the current yield as of report date. |
| ADR | American Depositary Receipt |
Continued
63
| Sterling Capital Behavioral International Equity Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Industry | Percentage of net assets | ||
| Aerospace & Defense | 0.5 | % | |
| Airlines | 1.9 | % | |
| Automobiles | 4.8 | % | |
| Banks | 10.2 | % | |
| Beverages | 2.4 | % | |
| Building Products | 0.5 | % | |
| Capital Markets | 0.6 | % | |
| Chemicals | 2.1 | % | |
| Commercial Services & Supplies | 0.4 | % | |
| Construction & Engineering | 1.6 | % | |
| Construction Materials | 2.0 | % | |
| Diversified Financial Services | 1.7 | % | |
| Diversified Telecommunication Services | 3.0 | % | |
| Electric Utilities | 1.8 | % | |
| Equity Real Estate Investment Trusts (REITs) | 1.8 | % | |
| Food & Staples Retailing | 2.0 | % | |
| Food Products | 0.9 | % | |
| Health Care Providers & Services | 1.2 | % | |
| Hotels, Restaurants & Leisure | 0.5 | % | |
| Household Durables | 1.8 | % | |
| Industrial Conglomerates | 1.8 | % | |
| Insurance | 5.9 | % | |
| IT Services | 1.1 | % | |
| Machinery | 1.2 | % | |
| Marine | 1.3 | % | |
| Media | 2.5 | % | |
| Metals & Mining | 2.4 | % | |
| Money Market Fund | 0.6 | % | |
| Multi-Utilities | 1.1 | % | |
| Oil, Gas & Consumable Fuels | 5.9 | % | |
| Paper & Forest Products | 1.8 | % | |
| Personal Products | 1.8 | % | |
| Pharmaceuticals | 10.7 | % | |
| Professional Services | 0.5 | % | |
| Real Estate Management & Development | 1.3 | % | |
| Semiconductors & Semiconductor Equipment | 1.7 | % | |
| Software | 0.9 | % | |
| Specialty Retail | 0.5 | % | |
| Technology Hardware, Storage & Peripherals | 1.3 | % | |
| Textiles, Apparel & Luxury Goods | 2.1 | % | |
| Tobacco | 3.8 | % | |
| Trading Companies & Distributors | 5.9 | % | |
| Wireless Telecommunication Services | 1.1 | % | |
| 98.9 | % |
Continued
64
| Sterling Capital SMID Opportunities Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS —98.3% | ||||||||
| Aerospace & Defense — 2.0% | ||||||||
| 3,704 | Ducommun, Inc.(a) | $ | 146,901 | |||||
| Auto Components — 3.2% | ||||||||
| 1,271 | Aptiv PLC(a) | 99,405 | ||||||
| 5,435 | Gentex Corp. | 129,570 | ||||||
| 228,975 | ||||||||
| Banks — 5.7% | ||||||||
| 2,477 | Popular, Inc. | 178,492 | ||||||
| 2,914 | SouthState Corp. | 230,556 | ||||||
| 409,048 | ||||||||
| Capital Markets — 2.3% | ||||||||
| 776 | Morningstar, Inc. | 164,760 | ||||||
| Chemicals — 3.5% | ||||||||
| 2,419 | FMC Corp. | 255,688 | ||||||
| Commercial Services & Supplies — 4.9% | ||||||||
| 2,650 | Waste Connections, Inc. | 358,095 | ||||||
| Communications Equipment — 3.4% | ||||||||
| 1,684 | F5, Inc.(a) | 243,725 | ||||||
| Consumer Finance — 3.3% | ||||||||
| 17,245 | SLM Corp. | 241,258 | ||||||
| Containers & Packaging — 3.1% | ||||||||
| 4,639 | Ball Corp. | 224,157 | ||||||
| Entertainment — 2.5% | ||||||||
| 1,634 | Take-Two Interactive Software, Inc.(a) | 178,106 | ||||||
| Equity Real Estate Investment Trusts (REITs) — 3.0% | ||||||||
| 10,449 | Healthcare Realty Trust, Inc. | 217,862 | ||||||
| Health Care Equipment & Supplies — 5.9% | ||||||||
| 4,466 | Hologic, Inc.(a) | 288,146 | ||||||
| 698 | Teleflex, Inc. | 140,619 | ||||||
| 428,765 | ||||||||
| Health Care Providers & Services — 6.1% | ||||||||
| 3,219 | Centene Corp.(a) | 250,470 | ||||||
| 4,186 | Encompass Health Corp. | 189,333 | ||||||
| 439,803 | ||||||||
| Household Durables — 3.6% | ||||||||
| 28 | NVR, Inc.(a) | 111,638 | ||||||
| 6,293 | Tempur Sealy International, Inc. | 151,913 | ||||||
| 263,551 | ||||||||
| Independent Power and Renewable Electricity Producers — 4.4% | ||||||||
| 4,433 | NextEra Energy Partners L.P. | 320,550 | ||||||
| Insurance — 4.8% | ||||||||
| 971 | Arthur J Gallagher & Co. | 166,255 | ||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Insurance — (continued) | ||||||||
| 1,850 | Globe Life, Inc. | $ | 184,445 | |||||
| 350,700 | ||||||||
| IT Services — 17.8% | ||||||||
| 2,563 | Akamai Technologies, Inc.(a) | 205,860 | ||||||
| 3,016 | Amdocs, Ltd. | 239,621 | ||||||
| 1,846 | Euronet Worldwide, Inc.(a) | 139,853 | ||||||
| 2,256 | Fiserv, Inc.(a) | 211,094 | ||||||
| 4,977 | Genpact, Ltd. | 217,843 | ||||||
| 2,511 | Global Payments, Inc. | 271,314 | ||||||
| 1,285,585 | ||||||||
| Machinery — 3.0% | ||||||||
| 6,463 | Evoqua Water Technologies Corp.(a) | 213,731 | ||||||
| Media — 1.5% | ||||||||
| 129 | Cable One, Inc. | 110,044 | ||||||
| Oil, Gas & Consumable Fuels — 6.1% | ||||||||
| 4,288 | Callon Petroleum Co.(a) | 150,123 | ||||||
| 9,891 | CNX Resources Corp.(a) | 153,607 | ||||||
| 626 | Pioneer Natural Resources Co. | 135,548 | ||||||
| 439,278 | ||||||||
| Professional Services — 2.6% | ||||||||
| 3,111 | TransUnion | 185,073 | ||||||
| Real Estate Management & Development — 1.4% | ||||||||
| 850 | FirstService Corp. | 101,159 | ||||||
| Software — 2.7% | ||||||||
| 1,863 | PTC, Inc.(a) | 194,870 | ||||||
| Specialty Retail — 1.5% | ||||||||
| 1,611 | CarMax, Inc.(a) | 106,358 | ||||||
| Total Common Stocks | ||||||||
| (Cost $6,224,186) | 7,108,042 | |||||||
| MONEY MARKET FUND — 1.7% | ||||||||
| 120,528 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 120,528 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $120,528) | 120,528 | |||||||
| Total Investments — 100.0% | ||||||||
| (Cost $6,344,714) | 7,228,570 | |||||||
| Net Other Assets (Liabilities) — 0.0% | 3,025 | |||||||
| NET ASSETS — 100.0% | $ | 7,231,595 | ||||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
See accompanying Notes to the Financial Statements.
65
| Sterling Capital Mid Cap Relative Value Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS —394.9% | ||||||||
| Auto Components — 1.7% | ||||||||
| 16,460 | Magna International, Inc. | $ | 780,533 | |||||
| Banks — 7.3% | ||||||||
| 12,942 | East West Bancorp, Inc. | 868,926 | ||||||
| 5,660 | First Republic Bank | 738,913 | ||||||
| 37,451 | Huntington Bancshares, Inc. | 493,604 | ||||||
| 31,790 | KeyCorp | 509,276 | ||||||
| 8,443 | Wintrust Financial Corp. | 688,527 | ||||||
| 3,299,246 | ||||||||
| Building Products — 3.1% | ||||||||
| 5,006 | Carlisle Cos., Inc. | 1,403,732 | ||||||
| Capital Markets — 2.8% | ||||||||
| 4,979 | Ameriprise Financial, Inc. | 1,254,459 | ||||||
| Chemicals — 2.6% | ||||||||
| 15,068 | Avient Corp. | 456,560 | ||||||
| 8,520 | Westlake Corp. | 740,218 | ||||||
| 1,196,778 | ||||||||
| Communications Equipment — 1.0% | ||||||||
| 11,226 | Ciena Corp.(a) | 453,867 | ||||||
| Construction & Engineering — 1.6% | ||||||||
| 11,700 | MasTec, Inc.(a) | 742,950 | ||||||
| Containers & Packaging — 4.4% | ||||||||
| 6,840 | Avery Dennison Corp. | 1,112,868 | ||||||
| 19,220 | Berry Global Group, Inc.(a) | 894,307 | ||||||
| 2,007,175 | ||||||||
| Electronic Equipment, Instruments & Components — 6.9% | ||||||||
| 8,840 | Arrow Electronics, Inc.(a) | 814,959 | ||||||
| 8,860 | CDW Corp. | 1,382,869 | ||||||
| 29,472 | nVent Electric PLC. | 931,610 | ||||||
| 3,129,438 | ||||||||
| Entertainment — 3.5% | ||||||||
| 10,680 | Activision Blizzard, Inc. | 793,951 | ||||||
| 7,478 | Take-Two Interactive Software, Inc.(a) | 815,102 | ||||||
| 1,609,053 | ||||||||
| Equity Real Estate Investment Trusts (REITs) — 7.2% | ||||||||
| 4,945 | Alexandria Real Estate Equities, Inc. | 693,240 | ||||||
| 5,790 | Digital Realty Trust, Inc. | 574,252 | ||||||
| 6,700 | EastGroup Properties, Inc. | 967,078 | ||||||
| 6,599 | Mid-America Apartment Communities, Inc. | 1,023,307 | ||||||
| 3,257,877 | ||||||||
| Food & Staples Retailing — 4.6% | ||||||||
| 5,810 | Casey's General Stores, Inc. | 1,176,641 | ||||||
| 21,320 | Performance Food Group Co.(a) | 915,694 | ||||||
| 2,092,335 | ||||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Food Products — 2.2% | ||||||||
| 12,710 | Lamb Weston Holdings, Inc. | $ | 983,500 | |||||
| Gas Utilities — 4.5% | ||||||||
| 18,370 | Southwest Gas Holdings, Inc. | 1,281,308 | ||||||
| 22,898 | UGI Corp. | 740,292 | ||||||
| 2,021,600 | ||||||||
| Health Care Equipment & Supplies — 3.4% | ||||||||
| 2,890 | Becton Dickinson & Co. | 643,979 | ||||||
| 8,750 | Zimmer Biomet Holdings, Inc. | 914,812 | ||||||
| 1,558,791 | ||||||||
| Household Durables — 1.4% | ||||||||
| 16,610 | PulteGroup, Inc. | 622,875 | ||||||
| Insurance — 7.6% | ||||||||
| 6,980 | American Financial Group, Inc. | 858,051 | ||||||
| 14,344 | First American Financial Corp. | 661,259 | ||||||
| 10,260 | Globe Life, Inc. | 1,022,922 | ||||||
| 6,980 | Hanover Insurance Group, Inc. (The) | 894,417 | ||||||
| 3,436,649 | ||||||||
| IT Services — 2.3% | ||||||||
| 11,266 | Fiserv, Inc.(a) | 1,054,159 | ||||||
| Leisure Products — 1.1% | ||||||||
| 5,240 | Polaris, Inc. | 501,206 | ||||||
| Life Sciences Tools & Services — 6.7% | ||||||||
| 5,475 | ICON PLC(a) | 1,006,195 | ||||||
| 8,520 | PerkinElmer, Inc. | 1,025,212 | ||||||
| 1,980 | Thermo Fisher Scientific, Inc. | 1,004,236 | ||||||
| 3,035,643 | ||||||||
| Machinery — 1.9% | ||||||||
| 12,580 | Oshkosh Corp. | 884,248 | ||||||
| Oil, Gas & Consumable Fuels — 6.2% | ||||||||
| 35,418 | Coterra Energy, Inc. | 925,118 | ||||||
| 4,933 | Diamondback Energy, Inc. | 594,229 | ||||||
| 16,270 | Phillips 66 | 1,313,315 | ||||||
| 2,832,662 | ||||||||
| Professional Services — 3.3% | ||||||||
| 5,780 | CACI International, Inc., Class A(a) | 1,508,927 | ||||||
| Real Estate Management & Development — 1.3% | ||||||||
| 10,400 | Howard Hughes Corp. (The)(a) | 576,056 | ||||||
| Semiconductors & Semiconductor Equipment —1.2% | ||||||||
| 6,640 | Skyworks Solutions, Inc. | 566,193 | ||||||
| Software — 3.0% | ||||||||
| 25,659 | Dropbox, Inc., Class A(a) | 531,654 | ||||||
| 7,751 | PTC, Inc.(a) | 810,755 | ||||||
| 1,342,409 | ||||||||
See accompanying Notes to the Financial Statements.
66
| Sterling Capital Mid Cap Relative Value Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Trading Companies & Distributors — 2.1% | ||||||||
| 3,540 | United Rentals, Inc.(a) | $ | 956,225 | |||||
| Total Common Stocks | ||||||||
| (Cost $25,846,122) | 43,108,586 | |||||||
| MONEY MARKET FUND — 4.6% | ||||||||
| 2,087,145 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 2,087,145 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $2,087,145) | 2,087,145 | |||||||
| Total Investments — 99.5% | ||||||||
| (Cost $27,933,267) | 45,195,731 | |||||||
| Net Other Assets (Liabilities) — 0.5% | 243,067 | |||||||
| NET ASSETS — 100.0% | $ | 45,438,798 | ||||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
Continued
67
| Sterling Capital Real Estate Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — 97.0% | ||||||||
| Diversified — 1.5% | ||||||||
| 59,242 | Essential Properties Realty Trust, Inc. | $ | 1,152,257 | |||||
| Health Care — 7.9% | ||||||||
| 106,592 | Medical Properties Trust, Inc. | 1,264,181 | ||||||
| 46,779 | Ventas, Inc. | 1,879,113 | ||||||
| 43,019 | Welltower, Inc. | 2,766,982 | ||||||
| 5,910,276 | ||||||||
| Hotel & Resort — 2.8% | ||||||||
| 38,060 | Apple Hospitality REIT, Inc. | 535,124 | ||||||
| 21,415 | Ryman Hospitality Properties, Inc. | 1,575,930 | ||||||
| 2,111,054 | ||||||||
| Industrial — 12.6% | ||||||||
| 53,831 | Duke Realty Corp. | 2,594,654 | ||||||
| 12,168 | EastGroup Properties, Inc. | 1,756,329 | ||||||
| 40,008 | First Industrial Realty Trust, Inc. | 1,792,759 | ||||||
| 32,474 | Prologis, Inc. | 3,299,358 | ||||||
| 9,443,100 | ||||||||
| Office — 4.6% | ||||||||
| 18,148 | Alexandria Real Estate Equities, Inc. | 2,544,168 | ||||||
| 32,122 | Highwoods Properties, Inc. | 866,009 | ||||||
| 3,410,177 | ||||||||
| Real Estate Development — 1.1% | ||||||||
| 15,670 | Howard Hughes Corp. (The)(a) | 867,961 | ||||||
| Residential — 17.8% | ||||||||
| 16,039 | Camden Property Trust | 1,915,859 | ||||||
| 10,806 | Essex Property Trust, Inc. | 2,617,538 | ||||||
| 90,516 | Invitation Homes, Inc. | 3,056,725 | ||||||
| 18,006 | Mid-America Apartment Communities, Inc. | 2,792,191 | ||||||
| 68,616 | UDR, Inc. | 2,861,973 | ||||||
| 13,244,286 | ||||||||
| Retail — 10.4% | ||||||||
| 95,397 | Brixmor Property Group, Inc. | 1,761,983 | ||||||
| 133,669 | Kite Realty Group Trust | 2,301,780 | ||||||
| 65,220 | NETSTREIT Corp. | 1,161,568 | ||||||
| 88,438 | Retail Opportunity Investments Corp. | 1,216,907 | ||||||
| 94,430 | Tanger Factory Outlet Centers, Inc. | 1,291,802 | ||||||
| 7,734,040 | ||||||||
| Specialized — 38.3% | ||||||||
| 27,977 | American Tower Corp. | 6,006,662 | ||||||
| 30,367 | Crown Castle, Inc. | 4,389,550 | ||||||
| 55,680 | CubeSmart | 2,230,541 | ||||||
| 26,570 | Digital Realty Trust, Inc. | 2,635,213 | ||||||
| 7,638 | Equinix, Inc. | 4,344,800 | ||||||
| 20,416 | Life Storage, Inc. | 2,261,276 | ||||||
| 26,088 | PotlatchDeltic Corp. | 1,070,651 | ||||||
| 12,316 | SBA Communications Corp. | 3,505,749 | ||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Specialized — (continued) | ||||||||
| 71,524 | VICI Properties, Inc. | $ | 2,134,991 | |||||
| 28,579,433 | ||||||||
| Total Common Stocks | ||||||||
| (Cost $47,920,382) | 72,452,584 | |||||||
| MONEY MARKET FUND — 2.1% | ||||||||
| 1,575,461 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 1,575,461 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $1,575,461) | 1,575,461 | |||||||
| Total Investments — 99.1% | ||||||||
| (Cost $49,495,843) | 74,028,045 | |||||||
| Net Other Assets (Liabilities) — 0.9% | 657,999 | |||||||
| NET ASSETS — 100.0% | $ | 74,686,044 | ||||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
See accompanying Notes to the Financial Statements.
68
| Sterling Capital Small Cap Value Fund |
Schedule of Portfolio Investments
September 30, 2022
| Shares | Fair Value | |||||||
| COMMON STOCKS — 98.5% | ||||||||
| Aerospace & Defense — 2.4% | ||||||||
| 123,450 | Moog, Inc., Class A | $ | 8,684,708 | |||||
| Auto Components — 1.4% | ||||||||
| 61,170 | Dorman Products, Inc.(a) | 5,023,280 | ||||||
| Banks — 18.2% | ||||||||
| 165,120 | Community Bank System, Inc. | 9,920,410 | ||||||
| 204,060 | Glacier Bancorp, Inc. | 10,025,468 | ||||||
| 266,467 | Old National Bancorp. | 4,388,711 | ||||||
| 42,930 | Signature Bank | 6,482,430 | ||||||
| 16,865 | SVB Financial Group(a) | 5,662,930 | ||||||
| 276,611 | Umpqua Holdings Corp. | 4,727,282 | ||||||
| 117,945 | United Bankshares, Inc. | 4,216,534 | ||||||
| 175,280 | Webster Financial Corp. | 7,922,656 | ||||||
| 141,530 | Wintrust Financial Corp. | 11,541,771 | ||||||
| 64,888,192 | ||||||||
| Capital Markets — 1.7% | ||||||||
| 53,890 | Affiliated Managers Group, Inc. | 6,027,597 | ||||||
| Chemicals — 2.7% | ||||||||
| 318,782 | Avient Corp. | 9,659,095 | ||||||
| Construction & Engineering — 3.0% | ||||||||
| 169,180 | MasTec, Inc.(a) | 10,742,930 | ||||||
| Electric Utilities — 2.5% | ||||||||
| 205,695 | Portland General Electric Co. | 8,939,505 | ||||||
| Electrical Equipment — 2.2% | ||||||||
| 135,875 | EnerSys. | 7,903,849 | ||||||
| Electronic Equipment, Instruments & Components — 4.2% | ||||||||
| 167,788 | Belden, Inc. | 10,070,636 | ||||||
| 116,400 | ePlus, Inc.(a) | 4,835,256 | ||||||
| 14,905,892 | ||||||||
| Entertainment — 1.6% | ||||||||
| 52,255 | Take-Two Interactive Software, Inc.(a) | 5,695,795 | ||||||
| Equity Real Estate Investment Trusts (REITs) — 6.7% | ||||||||
| 269,253 | First Industrial Realty Trust, Inc. | 12,065,227 | ||||||
| 198,614 | Highwoods Properties, Inc. | 5,354,633 | ||||||
| 371,840 | Medical Properties Trust, Inc. | 4,410,022 | ||||||
| 51,148 | SL Green Realty Corp. | 2,054,104 | ||||||
| 23,883,986 | ||||||||
| Food & Staples Retailing — 9.5% | ||||||||
| 205,775 | BJ's Wholesale Club Holdings, Inc.(a) | 14,982,478 | ||||||
| 63,605 | Casey's General Stores, Inc. | 12,881,284 | ||||||
| 139,420 | Performance Food Group Co.(a) | 5,988,089 | ||||||
| 33,851,851 | ||||||||
| Gas Utilities —2.7% | ||||||||
| 135,970 | Southwest Gas Holdings, Inc. | 9,483,907 | ||||||
| Shares | Fair Value | |||||||
| COMMON STOCKS — (continued) | ||||||||
| Household Durables — 2.5% | ||||||||
| 170,500 | Ethan Allen Interiors, Inc. | $ | 3,604,370 | |||||
| 76,655 | Meritage Homes Corp.(a) | 5,386,547 | ||||||
| 8,990,917 | ||||||||
| Insurance — 7.8% | ||||||||
| 101,750 | Hanover Insurance Group, Inc. (The) | 13,038,245 | ||||||
| 180,770 | Selective Insurance Group, Inc. | 14,714,678 | ||||||
| 27,752,923 | ||||||||
| Life Sciences Tools & Services — 2.6% | ||||||||
| 37,218 | West Pharmaceutical Services, Inc. | 9,158,605 | ||||||
| Machinery — 6.1% | ||||||||
| 142,415 | Crane Holdings Co. | 12,467,009 | ||||||
| 133,170 | Oshkosh Corp. | 9,360,519 | ||||||
| 21,827,528 | ||||||||
| Oil, Gas & Consumable Fuels — 3.6% | ||||||||
| 72,570 | Callon Petroleum Co.(a) | 2,540,676 | ||||||
| 27,220 | Chord Energy Corp. | 3,722,879 | ||||||
| 66,640 | Matador Resources Co. | 3,260,029 | ||||||
| 126,070 | Northern Oil & Gas, Inc. | 3,455,579 | ||||||
| 12,979,163 | ||||||||
| Professional Services — 3.9% | ||||||||
| 53,595 | CACI International, Inc., Class A(a) | 13,991,511 | ||||||
| Semiconductors & Semiconductor Equipment — 6.0% | ||||||||
| 241,972 | ON Semiconductor Corp.(a) | 15,082,115 | ||||||
| 78,304 | Qorvo, Inc.(a) | 6,218,120 | ||||||
| 21,300,235 | ||||||||
| Software — 2.6% | ||||||||
| 89,912 | PTC, Inc.(a) | 9,404,795 | ||||||
| Specialty Retail — 1.4% | ||||||||
| 89,610 | TravelCenters of America, Inc.(a) | 4,832,667 | ||||||
| Trading Companies & Distributors — 3.2% | ||||||||
| 10,000 | Herc Holdings, Inc. | 1,038,800 | ||||||
| 38,616 | United Rentals, Inc.(a) | 10,430,954 | ||||||
| 11,469,754 | ||||||||
| Total Common Stocks | ||||||||
| (Cost $133,954,547) | 351,398,685 | |||||||
See accompanying Notes to the Financial Statements.
69
| Sterling Capital Small Cap Value Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | |||||||
| MONEY MARKET FUND — 1.5% | ||||||||
| 5,317,802 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | $ | 5,317,802 | |||||
| Total Money Market Fund | ||||||||
| (Cost $5,317,802) | 5,317,802 | |||||||
| Total Investments — 100.0% | ||||||||
| (Cost $139,272,349) | 356,716,487 | |||||||
| Net Other Assets (Liabilities) — 0.0% | 23,476 | |||||||
| NET ASSETS — 100.0% | $ | 356,739,963 | ||||||
| (a) | Represents non-income producing security. |
| (b) | Represents the current yield as of report date. |
Continued
70
| Sterling Capital Ultra Short Bond Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — 20.8% | ||||||||
| $ | 350,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class C, 2.320%, 7/18/25 | $ | 344,839 | ||||
| 94,518 | AmeriCredit Automobile Receivables Trust, Series 2021-3, Class A2, 0.410%, 2/18/25 | 93,682 | ||||||
| 153,611 | ARI Fleet Lease Trust, Series 2018-B, Class A3, 3.430%, 8/16/27(a) | 152,389 | ||||||
| 36,030 | ARI Fleet Lease Trust, Series 2019-A, Class A2A, 2.410%, 11/15/27(a) | 35,995 | ||||||
| 313,043 | ARI Fleet Lease Trust, Series 2021-A, Class A2, 0.370%, 3/15/30(a) | 306,908 | ||||||
| 525,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2018-1A, Class A, 3.700%, 9/20/24(a) | 520,649 | ||||||
| 100,000 | Carvana Auto Receivables Trust, Series 2021-P2, Class A3, 0.490%, 3/10/26. | 96,847 | ||||||
| 12,193 | Chesapeake Funding II, LLC, Series 2018- 3A, Class A1, 3.390%, 1/15/31(a) | 12,195 | ||||||
| 29,385 | Chesapeake Funding II, LLC, Series 2019- 1A, Class A1, 2.940%, 4/15/31(a) | 29,376 | ||||||
| 447,761 | Chesapeake Funding II, LLC, Series 2020- 1A, Class A1, 0.870%, 8/15/32(a) | 442,746 | ||||||
| 1,138 | Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 4.757%, 6/25/37 | 1,129 | ||||||
| 120,000 | Enterprise Fleet Financing, LLC, Series 2020-1, Class A3, 1.860%, 12/22/25(a) | 116,619 | ||||||
| 250,308 | Enterprise Fleet Financing, LLC, Series 2020-2, Class A2, 0.610%, 7/20/26(a) | 243,350 | ||||||
| 272,450 | Enterprise Fleet Financing, LLC, Series 2021-2, Class A2, 0.480%, 5/20/27(a) | 259,529 | ||||||
| 288,378 | Fifth Third Auto Trust, Series 2019-1, Class A4, 2.690%, 11/16/26 | 287,610 | ||||||
| 400,000 | Ford Credit Auto Owner Trust 2018-REV2, Series 2018-2, Class A, 3.470%, 1/15/30(a) | 396,243 | ||||||
| 107,666 | GreatAmerica Leasing Receivables Funding, LLC, Series 2021-1, Class A2, 0.270%, 6/15/23(a) | 107,327 | ||||||
| 330,000 | GreatAmerica Leasing Receivables Funding, LLC, Series 2021-1, Class A3, 0.340%, 8/15/24(a) | 319,117 | ||||||
| 11,086 | Nissan Auto Receivables Owner Trust, Series 2019-C, Class A3, 1.930%, 7/15/24 | 11,044 | ||||||
| 324,000 | OneMain Financial Issuance Trust, Series 2018-2A, Class A, 3.570%, 3/14/33(a) | 318,131 | ||||||
| 193,088 | OneMain Financial Issuance Trust, Series 2020-1A, Class A, 3.840%, 5/14/32(a) | 191,917 | ||||||
| 15,633 | Santander Consumer Auto Receivables Trust 2020-B, Series 2020-BA, Class A3, 0.460%, 8/15/24(a) | 15,612 | ||||||
| 373,390 | Santander Consumer Auto Receivables Trust 2021-A, Series 2021-AA, Class A3, 0.330%, 10/15/25(a) | 365,789 | ||||||
Principal | Fair Value | |||||||
| ASSET BACKED SECURITIES — (continued) | ||||||||
| $ | 149,000 | Santander Drive Auto Receivables Trust, Series 2021-1, Class C, 0.750%, 2/17/26 $ | 146,591 | |||||
| 375,000 | Santander Drive Auto Receivables Trust, Series 2021-3, Class B, 0.600%, 12/15/25. | 370,111 | ||||||
| 134,318 | Wheels SPV 2, LLC, Series 2019-1A, Class A3, 2.350%, 5/22/28(a) | 133,946 | ||||||
| 320,000 | World Omni Auto Receivables Trust, Series 2021-B, Class A3, 0.420%, 6/15/26 | 306,742 | ||||||
| 73,876 | World Omni Select Auto Trust, Series 2021-A, Class A2, 0.290%, 2/18/25 | 73,530 | ||||||
| Total Asset Backed Securities | ||||||||
| (Cost $5,802,748) | 5,699,963 | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — 0.7% | ||||||||
| 10,200 | Freddie Mac, Series 4172, Class PB, 1.500%, 7/15/40 | 10,166 | ||||||
| 179,523 | JP Morgan Mortgage Trust, Series 2017-5, Class A1B, 3.124%, 10/26/48(a)(b) | 172,816 | ||||||
| Total Collateralized Mortgage Obligations | ||||||||
| (Cost $192,232) | 182,982 | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 16.3% | ||||||||
| 174,000 | BX 2021-LBA3 Mortgage Trust, Series 2021-PAC, Class B, 3.717%, (LIBOR USD 1-Month plus 0.90%), 10/15/36(a) (c) | 163,542 | ||||||
| 166,000 | BX Commercial Mortgage Trust, Series 2021-21M, Class C, 3.995%, (LIBOR USD 1-Month plus 1.18%), 10/15/36(a) (c) | 156,691 | ||||||
| 172,000 | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 4.318%, (LIBOR USD 1-Month plus 1.50%), 11/15/38(a) (c) | 162,520 | ||||||
| 202,000 | BX Commercial Mortgage Trust, Series 2021-CIP, Class B, 4.089%, (LIBOR USD 1-Month plus 1.27%), 12/15/38(a) (c) | 191,879 | ||||||
| 135,352 | BX Commercial Mortgage Trust, Series 2021-XL2, Class C, 4.015%, (LIBOR USD 1-Month plus 1.20%), 10/15/38(a) (c) | 127,553 | ||||||
| 203,574 | BX Commercial Mortgage Trust, Series 2022-LP2, Class B, 4.234%, (TSFR1M plus 1.31%), 2/15/39(a)(c) | 193,404 | ||||||
| 173,000 | BX Trust, Series 2021-RISE, Class C,4.268%, (LIBOR USD 1-Month plus 1.45%), 11/15/36(a)(c) | 162,224 | ||||||
| 300,000 | Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class A4, 4.371%,9/10/46(b) | 297,828 | ||||||
See accompanying Notes to the Financial Statements.
71
| Sterling Capital Ultra Short Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 25,000 | Citigroup Commercial Mortgage Trust, Series 2013-GC17, Class A4, 4.131%, 11/10/46 | $ | 24,740 | ||||
| 20,190 | COMM 2012-CCRE3 Mortgage Trust, Series 2012-CR3, Class A3, 2.822%, 10/15/45 | 20,148 | ||||||
| 195,000 | COMM 2013-CCRE12 Mortgage Trust, Series 2013-CR12, Class A4, 4.046%, 10/10/46 | 192,663 | ||||||
| 350,000 | COMM 2013-CCRE13 Mortgage Trust, Series 2013-CR13, Class A4, 4.194%, 11/10/46(b) | 345,483 | ||||||
| 371,000 | COMM 2013-CCRE6 Mortgage Trust, Series 2013-CR6, Class A4, 3.101%, 3/10/46 | 369,461 | ||||||
| 350,000 | COMM 2013-CCRE8 Mortgage Trust, Series 2013-CR8, Class A5, 3.612%, 6/10/46(b) | 347,437 | ||||||
| 29,482 | COMM 2015-CCRE23 Mortgage Trust, Series 2015-CR23, Class A2, 2.852%, 5/10/48 | 29,449 | ||||||
| 155,000 | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 4.138%, (LIBOR USD 1-Month plus 1.32%), 11/15/38(a) (c) | 146,457 | ||||||
| 100,000 | GS Mortgage Securities Trust, Series 2013- GC16, Class A4, 4.271%, 11/10/46 | 98,759 | ||||||
| 367,000 | GS Mortgage Securities Trust 2013-GCJ12, Series 2013-GC12, Class A4, 3.135%, 6/10/46 | 363,079 | ||||||
| 125,000 | GS Mortgage Securities Trust 2013-GCJ14, Series 2013-GC14, Class A5, 4.243%, 8/10/46 | 124,153 | ||||||
| 300,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A5, 3.805%, 7/15/47 | 292,518 | ||||||
| 168,000 | Med Trust, Series 2021-MDLN, Class C, 4.618%, (LIBOR USD 1-Month plus 1.80%), 11/15/38(a)(c) | 160,003 | ||||||
| 128,850 | OPG Trust, Series 2021-PORT, Class C, 3.650%, (LIBOR USD 1-Month plus 0.83%), 10/15/36(a)(c) | 118,767 | ||||||
| 145,653 | SMR Mortgage Trust, Series 2022-IND, Class A, 4.495%, (TSFR1M plus 1.65%), 2/15/39(a)(c) | 141,464 | ||||||
| 200,256 | WFRBS Commercial Mortgage Trust, Series 2012-C10, Class A3, 2.875%, 12/15/45 | 199,799 | ||||||
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 25,000 | WFRBS Commercial Mortgage Trust, Series 2013-C13, Class A4, 3.001%, 5/15/45 | $ | 24,684 | ||||
| Total Commercial Mortgage-Backed Securities | ||||||||
| (Cost $4,723,326) | 4,454,705 | |||||||
| CORPORATE BONDS —55.8% | ||||||||
| Aerospace & Defense — 1.4% | ||||||||
| 270,000 | Boeing Co. (The), 4.508%, 5/1/23 | 269,055 | ||||||
| 100,000 | Bombardier, Inc., 7.500%, 12/1/24(a) | 99,375 | ||||||
| 368,430 | ||||||||
| Automobiles — 1.5% | ||||||||
| 250,000 | General Motors Financial Co., Inc., 2.942%, (SOFR plus 0.62%), 10/15/24(c). | 242,542 | ||||||
| 160,000 | Hyundai Capital America, 1.150%, 11/10/22(a) | 159,417 | ||||||
| 401,959 | ||||||||
| Banks — 9.9% | ||||||||
| 350,000 | Bank of America Corp., MTN, 3.234%, (SOFR plus 0.73%), 10/24/24(c) | 347,029 | ||||||
| 250,000 | BPCE SA, 4.000%, 9/12/23(a) | 246,664 | ||||||
| 250,000 | Discover Bank, BKNT, 3.350%, 2/6/23 | 248,928 | ||||||
| 200,000 | Federation des Caisses Desjardins du Quebec, 3.162%, (SOFR plus 0.43%), 5/21/24(a)(c) | 197,558 | ||||||
| 275,000 | Goldman Sachs Group, Inc. (The), 3.708%, (LIBOR USD 3-Month plus 0.75%), 2/23/23(c) | 274,886 | ||||||
| 100,000 | KeyBank N.A., BKNT, 3.217%, (SOFRINDX plus 0.32%), 6/14/24(c) | 99,099 | ||||||
| 125,000 | Macquarie Bank, Ltd., 2.100%, 10/17/22(a) | 124,911 | ||||||
| 150,000 | Macquarie Group, Ltd., 3.017%, (SOFR plus 0.71%), 10/14/25(a)(c) | 146,457 | ||||||
| 250,000 | Nationwide Building Society, 2.000%, 1/27/23(a) | 247,788 | ||||||
| 250,000 | PNC Financial Services Group, Inc. (The), STEP, 2.854%, 11/9/22 | 249,777 | ||||||
| 300,000 | Santander UK PLC, 2.100%, 1/13/23 | 297,843 | ||||||
| 220,000 | Standard Chartered PLC, 1.319%, (1-Year Treasury Constant Maturity plus 1.17%), 10/14/23(a)(b) | 219,781 | ||||||
| 2,700,721 | ||||||||
| Commercial Services & Supplies — 0.8% | ||||||||
| 209,000 | Republic Services, Inc., 4.750%, 5/15/23 | 208,699 | ||||||
| Construction Materials — 1.3% | ||||||||
| 183,000 | Koppers, Inc., 6.000%, 2/15/25(a) | 163,785 | ||||||
Continued
72
| Sterling Capital Ultra Short Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Construction Materials — (continued) | ||||||||
| $ | 210,000 | Martin Marietta Materials, Inc., 0.650%, 7/15/23 | $ | 202,757 | ||||
| 366,542 | ||||||||
| Diversified Financial Services —3.9% | ||||||||
| 200,000 | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.300%, 1/23/23. | 198,880 | ||||||
| 150,000 | Air Lease Corp., 2.250%, 1/15/23 | 148,736 | ||||||
| 350,000 | Ares Capital Corp., 3.500%, 2/10/23 | 348,208 | ||||||
| 210,000 | Capital One Financial Corp., 3.526%, (LIBOR USD 3-Month plus 0.72%), 1/30/23(c) | 209,743 | ||||||
| 175,000 | OneMain Finance Corp., 6.125%, 3/15/24 | 168,559 | ||||||
| 1,074,126 | ||||||||
| Electric Utilities — 7.6% | ||||||||
| 115,000 | American Electric Power Co., Inc., 2.031%, 3/15/24(d) | 110,086 | ||||||
| 260,000 | Consumers Energy Co., 0.350%, 6/1/23 | 252,377 | ||||||
| 125,000 | Dominion Energy, Inc., 2.450%, 1/15/23(a) | 124,298 | ||||||
| 300,000 | Entergy Louisiana, LLC, 0.950%, 10/1/24 | 278,249 | ||||||
| 120,000 | Florida Power & Light Co., 2.888%, (SOFRINDX plus 0.25%), 5/10/23(c) | 119,634 | ||||||
| 319,000 | Indiana Michigan Power Co., Series J, 3.200%, 3/15/23 | 317,598 | ||||||
| 250,000 | Korea East-West Power Co., Ltd., 3.875%, 7/19/23(a) | 248,217 | ||||||
| 200,000 | Public Service Electric & Gas Co., MTN, 3.250%, 9/1/23 | 197,113 | ||||||
| 300,000 | Vistra Operations Co., LLC, 4.875%, 5/13/24(a) | 292,239 | ||||||
| 137,000 | WESCO Distribution, Inc., 7.125%, 6/15/25(a) | 137,075 | ||||||
| 2,076,886 | ||||||||
| Electrical Equipment — 1.2% | ||||||||
| 130,000 | Carlisle Cos., Inc., 0.550%, 9/1/23. | 124,768 | ||||||
| 210,000 | General Electric Co., 2.700%, 10/9/22 | 209,927 | ||||||
| 334,695 | ||||||||
| Energy Equipment & Services — 6.4% | ||||||||
| 300,000 | DCP Midstream Operating L.P., 3.875%, 3/15/23 | 296,250 | ||||||
| 300,000 | Enbridge, Inc., 2.150%, 2/16/24 | 288,340 | ||||||
| 95,000 | Genesis Energy L.P./Genesis Energy Finance Corp., 5.625%, 6/15/24 | 89,302 | ||||||
| 300,000 | Kinder Morgan, Inc., 3.150%, 1/15/23 | 298,602 | ||||||
| 250,000 | Plains All American Pipeline L.P./PAA Finance Corp., 3.850%, 10/15/23 | 246,413 | ||||||
| 260,000 | Texas Eastern Transmission L.P., 2.800%, 10/15/22(a) | 259,850 | ||||||
| 280,000 | Williams Cos., Inc. (The), 3.700%, 1/15/23 | 279,797 | ||||||
| 1,758,554 | ||||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Entertainment — 1.0% | ||||||||
| $ | 280,000 | Warnermedia Holdings, Inc., 3.528%, 3/15/24(a) | $ | 270,476 | ||||
| Equity Real Estate Investment Trusts (REITS) — 3.0% | ||||||||
| 205,000 | Public Storage, 2.917%, (SOFR plus 0.47%), 4/23/24(c) | 203,988 | ||||||
| 225,000 | SBA Tower Trust, STEP, Series 2014-2A, Class C, 3.869%, 10/8/24(a) | 217,652 | ||||||
| 210,000 | Simon Property Group L.P., 2.650%, (SOFRINDX plus 0.43%), 1/11/24(c) | 208,322 | ||||||
| 179,000 | Starwood Property Trust, Inc., 5.500%, 11/1/23(a) | 175,867 | ||||||
| 805,829 | ||||||||
| Health Care Equipment & Services — 0.8% | ||||||||
| 210,000 | Humana, Inc., 0.650%, 8/3/23 | 202,774 | ||||||
| Health Care Providers & Services — 1.0% | ||||||||
| 280,000 | AbbVie, Inc., 2.300%, 11/21/22. | 279,322 | ||||||
| Insurance — 2.6% | ||||||||
| 100,000 | Brighthouse Financial Global Funding, 0.600%, 6/28/23(a) | 96,868 | ||||||
| 75,000 | Brighthouse Financial Global Funding, 2.996%, (SOFR plus 0.76%), 4/12/24(a) (c) | 74,285 | ||||||
| 248,000 | MassMutual Global Funding II, 2.500%, 10/17/22(a) | 247,865 | ||||||
| 300,000 | Nationwide Mutual Insurance Co., 5.583%, (LIBOR USD 3-Month plus 2.29%), 12/15/24(a)(b) | 300,035 | ||||||
| 719,053 | ||||||||
| Metals & Mining — 3.2% | ||||||||
| 175,000 | Freeport-McMoRan, Inc., 3.875%, 3/15/23 | 173,911 | ||||||
| 400,000 | Glencore Finance Canada, Ltd., 4.250%, 10/25/22(a) | 399,788 | ||||||
| 300,000 | Southern Copper Corp., 3.500%, 11/8/22 | 299,297 | ||||||
| 872,996 | ||||||||
| Oil, Gas & Consumable Fuels — 3.9% | ||||||||
| 250,000 | CenterPoint Energy Resources Corp., 0.700%, 3/2/23 | 245,399 | ||||||
| 350,000 | HF Sinclair Corp., 2.625%, 10/1/23(a) | 338,739 | ||||||
| 145,000 | Range Resources Corp., 5.000%, 3/15/23 | 144,506 | ||||||
| 100,000 | Schlumberger Finance Canada, Ltd., 2.650%, 11/20/22(a) | 99,933 | ||||||
| 250,000 | Southern California Gas Co., 3.620%, (LIBOR USD 3-Month plus 0.35%), 9/14/23(c) | 249,128 | ||||||
| 1,077,705 | ||||||||
Continued
73
| Sterling Capital Ultra Short Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Semiconductors & Semiconductor Equipment — 0.9% | ||||||||
| $ | 250,000 | Microchip Technology, Inc., 4.333%, 6/1/23 | $ | 248,788 | ||||
| Software — 1.0% | ||||||||
| 61,000 | Dell International, LLC/EMC Corp., 5.450%, 6/15/23 | 61,146 | ||||||
| 215,000 | VMware, Inc., 0.600%, 8/15/23 | 206,995 | ||||||
| 268,141 | ||||||||
| Specialty Retail — 1.3% | ||||||||
| 210,000 | 7-Eleven, Inc., 0.625%, 2/10/23(a) | 206,986 | ||||||
| 161,000 | Nordstrom, Inc., 2.300%, 4/8/24 | 149,730 | ||||||
| 356,716 | ||||||||
| Telecommunication Services — 3.1% | ||||||||
| 250,000 | AT&T, Inc., 3.613%, (SOFRINDX plus 0.64%), 3/25/24(c) | 248,507 | ||||||
| 312,501 | Sprint Spectrum Co., LLC/Sprint Spectrum Co. II, LLC/Sprint Spectrum Co. III, LLC, 4.738%, 3/20/25(a)(d) | 308,020 | ||||||
| 300,000 | Verizon Communications, Inc., 4.005%, (LIBOR USD 3-Month plus 1.10%), 5/15/25(c) | 301,534 | ||||||
| 858,061 | ||||||||
| Total Corporate Bonds | ||||||||
| (Cost $15,528,315) | 15,250,473 | |||||||
| MUNICIPAL BONDS — 0.9% | ||||||||
| Pennsylvania — 0.9% | ||||||||
| 250,000 | Allegheny County, PA, Advance Refunding, Taxable Revenue Bonds, G.O., Series C79, 0.573%, 11/1/22 | 249,377 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $250,000) | 249,377 | |||||||
| U.S. TREASURY NOTES — 1.8% | ||||||||
| 500,000 | 1.375%, 2/15/23 | 495,527 | ||||||
| Total U.S. Treasury Notes | ||||||||
| (Cost $496,058) | 495,527 | |||||||
| COMMERCIAL PAPER — 1.4% | ||||||||
| Banks — 1.4% | ||||||||
| 400,000 | HSBC USA, Inc., 2.630%, 11/30/22 | 397,615 | ||||||
| Total Commercial Paper | ||||||||
| (Cost $398,266) | 397,615 | |||||||
| Shares | Fair Value | |||||||
| MONEY MARKET FUND — 2.3% | ||||||||
| 635,292 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(e) | $ | 635,292 | |||||
| Total Money Market Fund | ||||||||
| (Cost $635,292) | 635,292 | |||||||
| Total Investments —3100.0% | ||||||||
| (Cost $28,026,237) | 27,365,934 | |||||||
| Net Other Assets (Liabilities) — 0.0% | (11,007 | ) | ||||||
| NET ASSETS — 100.0% | $ | 27,354,927 | ||||||
| (a) | Rule 144A, Section 4(2) or other security that is restricted as to resale to qualified institutional investors. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (b) | The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2022. The maturity date reflected is the final maturity date. |
| (c) | 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, 2022. The maturity date reflected is the final maturity date. |
| (d) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (e) | Represents the current yield as of report date. |
| BKNT | Bank Note |
| G.O. | General Obligation |
| MTN | Medium Term Note |
| STEP | Step Coupon Bond |
Continued
74
| Sterling Capital Short Duration Bond Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — 9.9% | ||||||||
| $ | 715,358 | AmeriCredit Automobile Receivables Trust, Series 2018-3, Class C, 3.740%, 10/18/24 | $ | 715,139 | ||||
| 61,862 | ARI Fleet Lease Trust, Series 2019-A, Class A2A, 2.410%, 11/15/27(a) | 61,803 | ||||||
| 854,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2019-2A, Class A, 3.350%, 9/22/25(a) | 820,794 | ||||||
| 550,000 | CarMax Auto Owner Trust, Series 2022-2, Class A2A, 2.810%, 5/15/25 | 545,968 | ||||||
| 815,000 | Carvana Auto Receivables Trust, Series 2021-P2, Class A3, 0.490%, 3/10/26 | 789,302 | ||||||
| 27,712 | Chesapeake Funding II, LLC, Series 2018-3A, Class A1, 3.390%, 1/15/31(a) | 27,715 | ||||||
| 22,177 | Chesapeake Funding II, LLC, Series 2019-1A, Class A1, 2.940%, 4/15/31(a) | 22,170 | ||||||
| 868,075 | Chesapeake Funding II, LLC, Series 2021-1A, Class A1, 0.470%, 4/15/33(a) | 850,344 | ||||||
| 893 | Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 4.757%, 6/25/37 | 886 | ||||||
| 256,334 | Citigroup Mortgage Loan Trust, Inc., Series 2005-HE1, Class M3, 4.059%, (LIBOR USD 1-Month plus 0.98%), 5/25/35(b)(c) | 255,018 | ||||||
| 799,527 | Enterprise Fleet Financing, LLC, Series 2020-2, Class A2, 0.610%, 7/20/26(a) | 777,303 | ||||||
| 1,500,000 | Enterprise Fleet Funding, LLC, Series 2021-1, Class A3, 0.700%, 12/21/26(a) | 1,376,781 | ||||||
| 1,490,000 | Hertz Vehicle Financing, LLC, Series 2021-1A, Class A, 1.210%, 12/26/25(a) | 1,370,422 | ||||||
| 643,626 | OneMain Financial Issuance Trust, Series 2020-1A, Class A, 3.840%, 5/14/32(a) | 639,724 | ||||||
| 775,000 | OneMain Financial Issuance Trust 2022-2, Series 2022-2A, Class A, 4.890%, 10/14/34(a) | 759,895 | ||||||
| 62,104 | Sofi Professional Loan Program, LLC, Series 2016-B, Class A1, 4.284%, (LIBOR USD 1-Month plus 1.20%), 6/25/33(a)(b) | 62,097 | ||||||
| 1,290,000 | World Omni Select Auto Trust, Series 2021-A, Class A3, 0.530%, 3/15/27 | 1,244,835 | ||||||
| Total Asset Backed Securities | ||||||||
| (Cost $10,572,204) | 10,320,196 | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — 3.4% | ||||||||
| 19,644 | Banc of America Funding Trust, Series 2004-C, Class 4A3, 3.893%, (LIBOR USD 1-Month plus 0.90%), 12/20/34(b) | 19,605 | ||||||
| 771,462 | Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.500%, 7/25/49(a)(d) | 694,636 | ||||||
| 108,649 | Fannie Mae, Series 2012-152, Class PC, 1.750%, 8/25/42 | 104,980 | ||||||
| Principal Amount | Fair Value | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) | ||||||||
| $ | 616,557 | Fannie Mae, Series 2013-35, Class CB, 2.000%, 2/25/43 | $ | 579,887 | ||||
| 48,989 | Fannie Mae, Series 2013-72, Class NA, 2.500%, 8/25/42 | 47,361 | ||||||
| 530,075 | Fannie Mae, Series 2015-71, Class PD, 2.500%, 3/25/43 | 512,568 | ||||||
| 317,784 | Fannie Mae, Series 2016-100, Class DA, 3.000%, 2/25/43 | 305,226 | ||||||
| 487,409 | Freddie Mac, Series 4828, Class QA, 3.500%, 3/15/47 | 471,636 | ||||||
| 888,320 | JP Morgan Mortgage Trust, Series 2017-5, Class A1B, 3.124%, 10/26/48(a)(d) | 855,134 | ||||||
| Total Collateralized Mortgage Obligations | ||||||||
| (Cost $3,830,141) | 3,591,033 | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 9.0% | ||||||||
| 862,000 | BX 2021-LBA3 Mortgage Trust, Series 2021-PAC, Class B, 3.717%, (LIBOR USD 1-Month plus 0.90%), 10/15/36(a)(b) | 810,189 | ||||||
| 846,000 | BX Commercial Mortgage Trust, Series 2021-21M, Class C, 3.995%, (LIBOR USD 1-Month plus 1.18%), 10/15/36(a)(b) | 798,559 | ||||||
| 869,000 | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 4.318%, (LIBOR USD 1-Month plus 1.50%), 11/15/38(a)(b) | 821,104 | ||||||
| 953,000 | BX Commercial Mortgage Trust, Series 2021-CIP, Class B, 4.089%, (LIBOR USD 1-Month plus 1.27%), 12/15/38(a)(b) | 905,251 | ||||||
| 673,026 | BX Commercial Mortgage Trust, Series 2021-XL2, Class C, 4.015%, (LIBOR USD 1-Month plus 1.20%), 10/15/38(a)(b) | 634,244 | ||||||
| 617,258 | BX Commercial Mortgage Trust, Series 2022-LP2, Class B, 4.234%, (TSFR1M plus 1.31%), 2/15/39(a)(b) | 586,423 | ||||||
| 208,000 | BX Trust, Series 2021-ARIA, Class A, 3.717%, (LIBOR USD 1-Month plus 0.90%), 10/15/36(a)(b) | 197,317 | ||||||
| 862,000 | BX Trust, Series 2021-RISE, Class C, 4.268%, (LIBOR USD 1-Month plus 1.45%), 11/15/36(a)(b) | 808,306 | ||||||
| 454,000 | COMM 2013-CCRE11 Mortgage Trust, Series 2013-CR11, Class A4, 4.258%, 8/10/50 | 451,237 | ||||||
| 789,000 | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 4.138%, (LIBOR USD 1-Month plus 1.32%), 11/15/38(a)(b) | 745,515 | ||||||
See accompanying Notes to the Financial Statements.
75
| Sterling Capital Short Duration Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 47,040 | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(a). | $ | 46,363 | ||||
| 264,484 | GS Mortgage Securities Trust, Series 2014-GC24, Class AAB, 3.650%, 9/10/47 | 260,897 | ||||||
| 500,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A5, 3.805%, 7/15/47 | 487,530 | ||||||
| 859,000 | Med Trust, Series 2021-MDLN, Class C, 4.618%, (LIBOR USD 1-Month plus 1.80%), 11/15/38(a)(b) | 818,111 | ||||||
| 641,510 | OPG Trust, Series 2021-PORT, Class C, 3.650%, (LIBOR USD 1-Month plus 0.83%), 10/15/36(a)(b) | 591,305 | ||||||
| 440,818 | SMR Mortgage Trust, Series 2022-IND, Class A, 4.495%, (TSFR1M plus 1.65%), 2/15/39(a)(b) | 428,141 | ||||||
| Total Commercial Mortgage-Backed Securities | ||||||||
| (Cost $9,935,506) | 9,390,492 | |||||||
| CORPORATE BONDS — 56.3% | ||||||||
| Aerospace & Defense — 0.3% | ||||||||
| 292,000 | Bombardier, Inc., 7.500%, 12/1/24(a) | 290,175 | ||||||
| Automobiles — 2.7% | ||||||||
| 815,000 | BMW U.S. Capital, LLC, 3.150%, 4/18/24(a) | 793,880 | ||||||
| 825,000 | Daimler Trucks Finance North America, LLC, 3.500%, 4/7/25(a) | 783,356 | ||||||
| 540,000 | Ford Motor Credit Co., LLC, 2.300%, 2/10/25 | 478,643 | ||||||
| 800,000 | Hyundai Capital America, 0.800%, 1/8/24(a) | 752,749 | ||||||
| 2,808,628 | ||||||||
| Banks — 14.0% | ||||||||
| 1,075,000 | Bank of America Corp., MTN, 0.981%, (SOFR plus 0.91%), 9/25/25(e) | 978,355 | ||||||
| 800,000 | Bank of Nova Scotia (The), 1.450%, 1/10/25 | 735,440 | ||||||
| 700,000 | BNP Paribas SA, 4.705%, (LIBOR USD 3-Month plus 2.24%), 1/10/25(a)(e) | 689,226 | ||||||
| 825,000 | Citigroup, Inc., 3.352%, (LIBOR USD 3-Month plus 0.90%), 4/24/25(e) | 795,781 | ||||||
| 605,000 | Credit Suisse AG, MTN, 3.625%, 9/9/24 | 576,526 | ||||||
| 800,000 | Danske Bank A/S, 0.976%, (1-Year Treasury Constant Maturity plus 0.55%), 9/10/25(a)(d) | 724,615 | ||||||
| 1,003,000 | Goldman Sachs Group, Inc. (The), 4.000%, 3/3/24 | 988,448 | ||||||
| 625,000 | HSBC Holdings PLC, 2.999%, (SOFR plus 1.43%), 3/10/26(e) | 577,956 | ||||||
| 650,000 | Huntington National Bank (The), 4.008%, (SOFR plus 1.21%), 5/16/25(e) | 636,725 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Banks — (continued) | ||||||||
| $ | 491,000 | JP Morgan Chase & Co., Series I, 6.276%, (LIBOR USD 3-Month plus 3.47%)(d)(f) | $ | 490,993 | ||||
| 800,000 | Lloyds Banking Group PLC, 2.907%, (LIBOR USD 3-Month plus 0.81%), 11/7/23(e) | 798,144 | ||||||
| 817,000 | Mitsubishi UFJ Financial Group, Inc., 0.848%, (1-Year Treasury Constant Maturity plus 0.68%), 9/15/24(d) | 779,400 | ||||||
| 1,045,000 | Morgan Stanley, MTN, 1.164%, (SOFR plus 0.56%), 10/21/25(e) | 952,113 | ||||||
| 850,000 | NatWest Markets PLC, 3.731%, (SOFR plus 0.76%), 9/29/26(a)(b) | 812,047 | ||||||
| 842,000 | PNC Financial Services Group, Inc. (The), Series O, 6.460%, (LIBOR USD 3-Month plus 3.68%)(d)(f) | 836,249 | ||||||
| 823,000 | Standard Chartered PLC, 0.991%, (1-Year Treasury Constant Maturity plus 0.78%), 1/12/25(a)(d) | 770,681 | ||||||
| 800,000 | Sumitomo Mitsui Trust Bank, Ltd., 0.850%, 3/25/24(a) | 750,602 | ||||||
| 800,000 | Swedbank AB, 3.356%, 4/4/25(a) | 764,829 | ||||||
| 1,004,000 | Wells Fargo & Co., MTN, 1.654%, (SOFR plus 1.60%), 6/2/24(e) | 980,255 | ||||||
| 14,638,385 | ||||||||
| Chemicals — 1.1% | ||||||||
| 696,000 | NOVA Chemicals Corp., 4.875%, 6/1/24(a) | 653,976 | ||||||
| 500,000 | Westlake Corp., 0.875%, 8/15/24 | 466,491 | ||||||
| 1,120,467 | ||||||||
| Commercial Services & Supplies — 0.5% | ||||||||
| 554,000 | GFL Environmental, Inc., 4.250%, 6/1/25(a) | 519,552 | ||||||
| Construction Materials — 1.0% | ||||||||
| 558,000 | Koppers, Inc., 6.000%, 2/15/25(a) | 499,410 | ||||||
| 575,000 | Martin Marietta Materials, Inc., 4.250%, 7/2/24 | 566,663 | ||||||
| 1,066,073 | ||||||||
| Diversified Financial Services — 7.6% | ||||||||
| 826,000 | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.150%, 2/15/24 | 793,453 | ||||||
| 860,000 | Air Lease Corp., MTN, 0.700%, 2/15/24 | 803,637 | ||||||
| 800,000 | Ally Financial, Inc., 5.750%, 11/20/25 | 776,042 | ||||||
| 775,000 | American Express Co., 2.250%, 3/4/25 | 726,419 | ||||||
| 825,000 | Blackstone Private Credit Fund, 1.750%, 9/15/24 | 752,015 | ||||||
| 880,000 | Element Fleet Management Corp., 1.600%, 4/6/24(a) | 828,310 | ||||||
| 753,000 | ERAC USA Finance, LLC, 3.850%, 11/15/24(a) | 727,706 | ||||||
| 581,000 | FS KKR Capital Corp., 1.650%, 10/12/24 | 530,796 | ||||||
| 483,000 | OneMain Finance Corp., 6.125%, 3/15/24 | 465,221 | ||||||
| 741,000 | Owl Rock Capital Corp., 5.250%, 4/15/24 | 731,933 | ||||||
Continued
76
| Sterling Capital Short Duration Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Diversified Financial Services — (continued) | ||||||||
| $ | 825,000 | Park Aerospace Holdings, Ltd., 5.500%, 2/15/24(a) | $ | 805,415 | ||||
| 7,940,947 | ||||||||
| Diversified Telecommunication Services — 0.6% | ||||||||
| 611,875 | Sprint Spectrum Co., LLC/Sprint Spectrum Co. II, LLC/Sprint Spectrum Co. III, LLC, 4.738%, 3/20/25(a) | 603,101 | ||||||
| Electric Utilities — 4.9% | ||||||||
| 285,000 | American Electric Power Co., Inc., 2.031%, 3/15/24 | 272,821 | ||||||
| 805,000 | CMS Energy Corp., 3.875%, 3/1/24. | 789,681 | ||||||
| 763,000 | Dominion Energy, Inc., 2.450%, 1/15/23(a) | 758,714 | ||||||
| 750,000 | Duke Energy Progress, LLC, 3.250%, 8/15/25 | 718,626 | ||||||
| 459,000 | Entergy Louisiana, LLC, 0.620%, 11/17/23 | 438,986 | ||||||
| 300,000 | Korea East-West Power Co., Ltd., 3.600%, 5/6/25(a) | 289,734 | ||||||
| 825,000 | Sempra Energy, 3.300%, 4/1/25 | 785,271 | ||||||
| 600,000 | Southern Co. (The), Series 21-A, 0.600%, 2/26/24 | 564,500 | ||||||
| 471,000 | WESCO Distribution, Inc., 7.125%, 6/15/25(a) | 471,259 | ||||||
| 5,089,592 | ||||||||
| Energy Equipment & Services — 2.6% | ||||||||
| 850,000 | Cheniere Corpus Christi Holdings, LLC, 7.000%, 6/30/24 | 863,773 | ||||||
| 313,000 | Genesis Energy L.P./Genesis Energy Finance Corp., 5.625%, 6/15/24 | 294,224 | ||||||
| 843,000 | Plains All American Pipeline L.P./PAA Finance Corp., 3.600%, 11/1/24 | 810,798 | ||||||
| 805,000 | Williams Cos., Inc. (The), 4.500%, 11/15/23 | 800,713 | ||||||
| 2,769,508 | ||||||||
| Entertainment — 0.4% | ||||||||
| 525,000 | Mattel, Inc., 3.375%, 4/1/26(a) | 468,530 | ||||||
| Equity Real Estate Investment Trusts (REITS) — 4.0% | ||||||||
| 790,000 | American Tower Corp., 5.000%, 2/15/24 | 789,768 | ||||||
| 700,000 | Crown Castle, Inc., 3.150%, 7/15/23 | 691,061 | ||||||
| 775,000 | Kimco Realty Corp., 2.700%, 3/1/24 | 751,352 | ||||||
| 730,000 | Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.250%, 10/1/25(a) | 671,600 | ||||||
| 825,000 | Retail Opportunity Investments Partnership L.P., 5.000%, 12/15/23 | 816,661 | ||||||
| 518,000 | Starwood Property Trust, Inc., 3.750%, 12/31/24(a) | 469,438 | ||||||
| 4,189,880 | ||||||||
| Food & Staples Retailing — 0.7% | ||||||||
| 750,000 | Cargill, Inc., 3.500%, 4/22/25(a) | 723,159 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Health Care Providers & Services — 0.4% | ||||||||
| $ | 389,000 | Shire Acquisitions Investments Ireland DAC, 2.875%, 9/23/23 | $ | 380,426 | ||||
| Hotels, Restaurants & Leisure — 0.6% | ||||||||
| 668,000 | Prime Security Services Borrower, LLC/Prime Finance, Inc., 5.250%, 4/15/24(a) | 649,850 | ||||||
| Household Products — 0.7% | ||||||||
| 750,000 | GSK Consumer Healthcare Capital UK PLC, 3.125%, 3/24/25(a) | 708,055 | ||||||
| Insurance ��� 5.1% | ||||||||
| 825,000 | Apollo Management Holdings L.P., 4.000%, 5/30/24(a) | 802,098 | ||||||
| 875,000 | Athene Global Funding, 1.716%, 1/7/25(a) | 800,380 | ||||||
| 825,000 | F&G Global Funding, 0.900%, 9/20/24(a) | 750,852 | ||||||
| 880,000 | GA Global Funding Trust, 0.800%, 9/13/24(a) | 796,572 | ||||||
| 625,000 | Jackson National Life Global Funding, 3.875%, 6/11/25(a) | 599,350 | ||||||
| 750,000 | John Hancock Life Insurance Co., 7.375%, 2/15/24(a) | 771,398 | ||||||
| 815,000 | Security Benefit Global Funding, 1.250%, 5/17/24(a) | 760,089 | ||||||
| 5,280,739 | ||||||||
| Media — 0.7% | ||||||||
| 757,000 | Discovery Communications, LLC, 3.800%, 3/13/24 | 739,104 | ||||||
| Metals & Mining — 0.6% | ||||||||
| 650,000 | Freeport-McMoRan, Inc., 3.875%, 3/15/23 | 645,956 | ||||||
| Oil, Gas & Consumable Fuels — 4.3% | ||||||||
| 1,000,000 | Aker BP ASA, 3.000%, 1/15/25(a)(c). | 936,821 | ||||||
| 445,000 | ConocoPhillips Co., 2.125%, 3/8/24 | 429,700 | ||||||
| 800,000 | Devon Energy Corp., 5.250%, 9/15/24 | 799,917 | ||||||
| 830,000 | EQT Corp., 5.678%, 10/1/25 | 825,730 | ||||||
| 838,000 | HF Sinclair Corp., 2.625%, 10/1/23(a) | 811,038 | ||||||
| 660,000 | Range Resources Corp., 5.000%, 3/15/23 | 657,749 | ||||||
| 4,460,955 | ||||||||
| Semiconductors & Semiconductor Equipment — 1.4% | ||||||||
| 750,000 | Broadcom Corp./Broadcom Cayman Finance, Ltd., 3.625%, 1/15/24 | 735,160 | ||||||
| 803,000 | Microchip Technology, Inc., 4.250%, 9/1/25 | 775,654 | ||||||
| 1,510,814 | ||||||||
| Software — 0.2% | ||||||||
| 264,000 | Dell International, LLC/EMC Corp., 5.450%, 6/15/23 | 264,631 | ||||||
| Specialty Retail — 1.4% | ||||||||
| 865,000 | 7-Eleven, Inc., 0.800%, 2/10/24(a) | 817,860 | ||||||
Continued
77
| Sterling Capital Short Duration Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Specialty Retail — (continued) | ||||||||
| $ | 717,000 | Nordstrom, Inc., 2.300%, 4/8/24 | $ | 666,810 | ||||
| 1,484,670 | ||||||||
| Tobacco — 0.5% | ||||||||
| 550,000 | BAT Capital Corp., 3.222%, 8/15/24 | 528,792 | ||||||
| Total Corporate Bonds | ||||||||
| (Cost $62,577,693) | 58,881,989 | |||||||
| MUNICIPAL BONDS — 4.4% | ||||||||
| California — 1.1% | ||||||||
| 650,000 | Beverly Hills Public Financing Authority, CA, Advance Refunding, Taxable Revenue Bonds, Series B, 0.730%, 6/1/24 | 613,178 | ||||||
| 590,000 | Port of Oakland, CA, Port, Airport & Marina Revenue, Advance Refunding Revenue Bonds, Series R, 1.081%, 5/1/24 | 557,880 | ||||||
| 1,171,058 | ||||||||
| Hawaii — 0.2% | ||||||||
| 240,000 | State of Hawaii, HI, Public Improvements, Cash Flow Management G.O., 0.802%, 10/1/24 | 223,243 | ||||||
| Illinois — 0.8% | ||||||||
| 815,000 | Chicago O'Hare International Airport, IL, Refunding, Taxable Revenue Bonds, Series D, 1.168%, 1/1/24 | 784,038 | ||||||
| New Jersey — 0.2% | ||||||||
| 235,000 | New Jersey Turnpike Authority, Advance Refunding Revenue Bonds, Series B, 0.638%, 1/1/24 | 224,176 | ||||||
| Pennsylvania — 0.5% | ||||||||
| 515,000 | Pennsylvania State University (The), PA, Refunding Notes, Taxable Revenue Bonds, Series D, 1.353%, 9/1/23 | 501,831 | ||||||
| Texas — 1.6% | ||||||||
| 970,000 | City of Houston, TX, Airport System Revenue, Refunding, Taxable Revenue Bonds, Series C, 1.054%, 7/1/23 | 946,051 | ||||||
| 750,000 | City of Houston, TX, Combined Utility System Revenue, Taxable Revenue, First Lien-Series C, Advance Refunding Revenue Bonds, 1.746%, 11/15/23 | 729,750 | ||||||
| 1,675,801 | ||||||||
| Total Municipal Bonds | ||||||||
| (Cost $4,765,000) | 4,580,147 | |||||||
| U.S. TREASURY NOTES — 16.1% | ||||||||
| 9,730,000 | 1.125%, 1/15/25 | 9,066,764 | ||||||
| Principal Amount | Fair Value | |||||||
| U.S. TREASURY NOTES — (continued) | ||||||||
| $ | 8,000,000 | 3.000%, 7/15/25 | $ | 7,733,750 | ||||
| Total U.S. Treasury Notes | ||||||||
| (Cost $17,166,028) | 16,800,514 | |||||||
| Shares | ||||||||
| MONEY MARKET FUND — 1.4% | ||||||||
| 1,422,405 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(g) | 1,422,405 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $1,422,405) | 1,422,405 | |||||||
| Total Investments — 100.5% | ||||||||
| (Cost $110,268,977) | 104,986,776 | |||||||
| Net Other Assets (Liabilities) — (0.5)% | (518,188 | ) | ||||||
| NET ASSETS — 100.0% | $ | 104,468,588 | ||||||
| (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, 2022. The maturity date reflected is the final maturity date. |
| (c) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (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, 2022. The maturity date reflected is the final maturity date. |
| (e) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Rate shown is the fixed rate. |
| (f) | Security is perpetual in nature and has no stated maturity date. |
| (g) | Represents the current yield as of report date. |
| G.O. | General Obligation |
| MTN | Medium Term Note |
| STEP | Step Coupon Bond |
Continued
78
| Sterling Capital Intermediate U.S. Government Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — 2.0% | ||||||||
| $ | 265,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2019-3A, Class A, 2.360%, 3/20/26(a) | $ | 248,168 | ||||
| 94,944 | United States Small Business Administration, Series 2015-20G, Class 1, 2.880%, 7/1/35(b) | 87,867 | ||||||
| Total Asset Backed Securities | ||||||||
| (Cost $362,691) | 336,035 | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — 14.5% | ||||||||
| 44,792 | Fannie Mae, Series 2003-44, Class Q, 3.500%, 6/25/33 | 42,804 | ||||||
| 189,427 | Fannie Mae, Series 2005-31, Class PB, 5.500%, 4/25/35 | 193,243 | ||||||
| 165,929 | Fannie Mae, Series 2012-150, Class KA, 1.750%, 1/25/43 | 140,184 | ||||||
| 254,724 | Fannie Mae, Series 2012-87, Class MB, 2.000%, 5/25/42 | 232,291 | ||||||
| 100,165 | Fannie Mae, Series 2013-44, Class DJ, 1.850%, 5/25/33 | 90,346 | ||||||
| 149,927 | Fannie Mae, Series 2016-24, Class CD, 1.750%, 2/25/46 | 126,101 | ||||||
| 69,269 | Fannie Mae, Series 2016-49, Class DA, 3.500%, 10/25/42 | 67,872 | ||||||
| 232,080 | Fannie Mae, Series 2016-49, Class PA, 3.000%, 9/25/45 | 214,811 | ||||||
| 244,051 | Fannie Mae, Series 2019-25, Class PD, 2.500%, 5/25/48 | 220,071 | ||||||
| 82,865 | Freddie Mac, Series 4122, Class BC, 3.000%, 5/15/40 | 76,676 | ||||||
| 198,530 | Freddie Mac, Series 4173, Class NB, 3.000%, 3/15/43 | 181,405 | ||||||
| 162,896 | Freddie Mac, Series 4601, Class NJ, 1.900%, 9/15/45 | 143,311 | ||||||
| 137,919 | Freddie Mac, Series 4656, Class PA, 3.500%, 10/15/45 | 131,673 | ||||||
| 219,229 | Freddie Mac, Series 4863, Class AJ, 3.500%, 7/15/38 | 207,232 | ||||||
| 256,499 | Freddie Mac, Series 4942, Class NC, 2.500%, 10/25/49 | 225,977 | ||||||
| 83,256 | Ginnie Mae, Series 2013-133, Class PL, 3.500%, 2/16/37 | 81,008 | ||||||
| 59,241 | Ginnie Mae, Series 2015-162, Class EB, 2.500%, 9/20/44 | 55,566 | ||||||
| Total Collateralized Mortgage Obligations | ||||||||
| (Cost $2,717,769) | 2,430,571 | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 24.3% | ||||||||
| 100,000 | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 4.318%, (LIBOR USD 1-Month plus 1.50%), 11/15/38(a)(c) | 94,488 | ||||||
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 136,114 | Citigroup Commercial Mortgage Trust, Series 2015-GC29, Class A3, 2.935%, 4/10/48 | $ | 128,530 | ||||
| 569,291 | Fannie Mae-Aces, Series 2015-M17, Class A2, 2.986%, 11/25/25(d) | 543,719 | ||||||
| 413,027 | Fannie Mae-Aces, Series 2017-M7, Class A2, 2.961%, 2/25/27(d) | 387,698 | ||||||
| 253,617 | Fannie Mae-Aces, Series 2017-M8, Class A2, 3.061%, 5/25/27(d) | 239,041 | ||||||
| 390,000 | Fannie Mae-Aces, Series 2018-M10, Class A2, 3.471%, 7/25/28(d) | 369,071 | ||||||
| 300,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K033, Class A2, 3.060%, 7/25/23(d) | 296,924 | ||||||
| 140,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K049, Class A2, 3.010%, 7/25/25 | 134,193 | ||||||
| 210,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K060, Class A2, 3.300%, 10/25/26 | 200,066 | ||||||
| 500,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K061, Class A2, 3.347%, 11/25/26(d) | 478,835 | ||||||
| 125,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K066, Class A2, 3.117%, 6/25/27 | 117,690 | ||||||
| 160,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K069, Class A2, 3.187%, 9/25/27(d) | 150,632 | ||||||
| 275,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K079, Class A2, 3.926%, 6/25/28 | 266,311 | ||||||
| 250,000 | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47 | 243,655 | ||||||
| 100,000 | Med Trust, Series 2021-MDLN, Class C, 4.618%, (LIBOR USD 1-Month plus 1.80%), 11/15/38(a)(c) | 95,240 | ||||||
| 71,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47 | 68,807 | ||||||
| 250,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A4, 3.526%, 12/15/47 | 241,095 | ||||||
| Total Commercial Mortgage-Backed Securities | ||||||||
| (Cost $4,371,674) | 4,055,995 | |||||||
| CORPORATE BONDS — 2.1% | ||||||||
| Banks — 0.4% | ||||||||
| 70,000 | Bank of America Corp., GMTN, 3.500%, 4/19/26 | 65,761 | ||||||
See accompanying Notes to the Financial Statements.
79
| Sterling Capital Intermediate U.S. Government Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Electric Utilities — 0.4% | ||||||||
| $ | 75,000 | Public Service Electric & Gas Co., MTN, 2.250%, 9/15/26(b) | $ | 67,758 | ||||
| Equity Real Estate Investment Trusts (REITS) — 1.3% | ||||||||
| 250,000 | Federal Realty Investment Trust, 1.250%, 2/15/26(b) | 220,065 | ||||||
| Total Corporate Bonds | ||||||||
| (Cost $403,501) | 353,584 | |||||||
| MORTGAGE-BACKED SECURITIES — 28.3% | ||||||||
| Fannie Mae — 20.0% | ||||||||
| 207,682 | 4.000%, 12/1/33, Pool #MA1689 | 198,298 | ||||||
| 285,182 | 4.500%, 3/1/34, Pool #CA3294 | 283,163 | ||||||
| 49,736 | 4.000%, 12/1/36, Pool #MA2856 | 47,461 | ||||||
| 49,969 | 4.000%, 2/1/37, Pool #MA2914 | 47,682 | ||||||
| 409,079 | 1.500%, 12/1/40, Pool #MA4202 | 327,620 | ||||||
| 46,078 | 4.000%, 5/1/47, Pool #BE9598 | 43,668 | ||||||
| 122,196 | 3.500%, 12/1/47, Pool #CA0833 | 111,304 | ||||||
| 57,589 | 5.000%, 8/1/48, Pool #CA2219 | 56,892 | ||||||
| 59,619 | 3.500%, 9/1/49, Pool #BJ9608 | 54,258 | ||||||
| 67,224 | 3.500%, 10/1/49, Pool #CA4431 | 61,186 | ||||||
| 98,851 | 3.000%, 3/1/50, Pool #FM2714 | 87,028 | ||||||
| 224,573 | 3.000%, 7/1/50, Pool #CA6421 | 197,170 | ||||||
| 222,525 | 3.000%, 7/1/50, Pool #CA6422 | 195,245 | ||||||
| 185,999 | 2.000%, 8/1/50, Pool #CA6799 | 152,262 | ||||||
| 277,148 | 2.000%, 9/1/50, Pool #CA7019 | 226,086 | ||||||
| 326,208 | 2.500%, 9/1/50, Pool #BQ2883 | 276,508 | ||||||
| 152,521 | 2.500%, 9/1/50, Pool #BQ0538 | 129,286 | ||||||
| 396,322 | 2.000%, 10/1/50, Pool #CA7224 | 323,691 | ||||||
| 321,370 | 2.500%, 10/1/50, Pool #FM4638 | 272,496 | ||||||
| 299,259 | 2.500%, 10/1/50, Pool #FM4530 | 253,740 | ||||||
| 3,345,044 | ||||||||
| Freddie Mac — 8.1% | ||||||||
| 121,670 | 4.000%, 12/1/35, Pool #ZA2401 | 116,144 | ||||||
| 104,401 | 3.500%, 6/1/36, Pool #ZA2414 | 97,724 | ||||||
| 67,572 | 4.000%, 3/1/39, Pool #ZA6403 | 63,511 | ||||||
| 212,532 | 2.000%, 12/1/40, Pool #RB5090 | 178,158 | ||||||
| 148,322 | 3.500%, 1/1/47, Pool #ZT0941 | 135,902 | ||||||
| 105,647 | 3.000%, 12/1/51, Pool #SD8184 | 92,442 | ||||||
| 196,528 | 4.500%, 6/1/52, Pool #SD1265(e) | 187,809 | ||||||
| 199,075 | 4.500%, 8/1/52, Pool #SD1515 | 190,243 | ||||||
| 300,000 | 5.000%, 9/1/52, Pool #RA7936(e) | 293,278 | ||||||
| 1,355,211 | ||||||||
| Ginnie Mae II — 0.2% | ||||||||
| 27,672 | 5.000%, 11/20/38, Pool #4283 | 26,744 | ||||||
| Total Mortgage-Backed Securities | ||||||||
| (Cost $5,520,258) | 4,726,999 | |||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — 0.8% | ||||||||
| Wisconsin — 0.8% | ||||||||
| $ | 135,000 | State of Wisconsin, TXB, Revenue Bonds, Pension Funding, Series A, (AGM), 5.700%, 5/1/26(b) | $ | 138,417 | ||||
| Total Municipal Bonds | ||||||||
| (Cost $141,136) | 138,417 | |||||||
| U.S. GOVERNMENT AGENCIES — 13.1% | ||||||||
| Fannie Mae — 10.3% | ||||||||
| 1,000,000 | 6.250%, 5/15/29 | 1,126,252 | ||||||
| 500,000 | 7.125%, 1/15/30 | 591,526 | ||||||
| 1,717,778 | ||||||||
| Federal Home Loan Banks — 2.8% | ||||||||
| 500,000 | 1.200%, 12/30/24 | 464,341 | ||||||
| Total U.S. Government Agencies | ||||||||
| (Cost $2,298,006) | 2,182,119 | |||||||
| U.S. TREASURY NOTES — 13.1% | ||||||||
| 1,550,000 | 0.250%, 9/30/25 | 1,377,744 | ||||||
| 1,000,000 | 1.125%, 2/15/31 | 809,570 | ||||||
| Total U.S. Treasury Notes | ||||||||
| (Cost $2,391,272) | 2,187,314 | |||||||
| Shares | ||||||||
| MONEY MARKET FUND — 4.5% | ||||||||
| 748,989 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(f) | 748,989 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $748,989) | 748,989 | |||||||
| Total Investments — 102.7% | ||||||||
| (Cost $18,955,296) | 17,160,023 | |||||||
| Net Other Assets (Liabilities) — (2.7)% | (445,749 | ) | ||||||
| NET ASSETS — 100.0% | $ | 16,714,274 | ||||||
| (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) | Represents that all or a portion of the security was pledged as collateral for securities purchased on a when-issued basis. |
| (c) | 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, 2022. The maturity date reflected is the final maturity date. |
| (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, 2022. The maturity date reflected is the final maturity date. |
Continued
80
| Sterling Capital Intermediate U.S. Government Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| (e) | Represents securities purchased on a when-issued basis. At September 30, 2022, total cost of investments purchased on a when-issued basis was $493,462. |
| (f) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| GMTN | Global Medium Term Note |
| MTN | Medium Term Note |
| TXB | Taxable Bond |
Continued
81
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — 16.0% | ||||||||
| $ | 89,998 | Aegis Asset Backed Securities Trust, Series 2005-5, Class 1A4, 3.784%, (LIBOR USD 1-Month plus 0.70%), 12/25/35(a) | $ | 89,896 | ||||
| 8,200,000 | AmeriCredit Automobile Receivables Trust, Series 2020-3, Class B, 0.760%, 12/18/25 | 7,890,372 | ||||||
| 15,025,000 | AmeriCredit Automobile Receivables Trust, Series 2021-1, Class B, 0.680%, 10/19/26 | 14,315,874 | ||||||
| 812,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2017-2A, Class A, 2.970%, 3/20/24(b) | 808,702 | ||||||
| 3,500,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2018-1A, Class A, 3.700%, 9/20/24(b) | 3,470,996 | ||||||
| 9,318,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2019-2A, Class A, 3.350%, 9/22/25(b) | 8,955,693 | ||||||
| 2,030,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2019-3A, Class A, 2.360%, 3/20/26(b) | 1,901,059 | ||||||
| 3,000,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2020-2A, Class A, 2.020%, 2/20/27(b) | 2,679,861 | ||||||
| 6,250,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2021-1A, Class A, 1.380%, 8/20/27(b) | 5,348,419 | ||||||
| 8,720,000 | Carvana Auto Receivables Trust, Series 2021-P2, Class B, 1.270%, 3/10/27. | 7,685,112 | ||||||
| 5,211,030 | Chesapeake Funding II, LLC, Series 2020-1A, Class A1, 0.870%, 8/15/32(b) | 5,152,667 | ||||||
| 4,791,000 | Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.150%, 6/15/39 | 5,258,271 | ||||||
| 5,020 | Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 4.757%, 6/25/37 | 4,981 | ||||||
| 6,041,000 | Enterprise Fleet Financing, LLC, Series 2020-1, Class A3, 1.860%, 12/22/25(b) | 5,870,773 | ||||||
| 7,000,000 | Enterprise Fleet Financing, LLC, Series 2022-1, Class A3, 3.270%, 1/20/28(b) | 6,568,339 | ||||||
| 6,943,000 | Enterprise Fleet Funding, LLC, Series 2021-1, Class A3, 0.700%, 12/21/26(b) | 6,372,662 | ||||||
| 10,559,000 | Ford Credit Auto Owner Trust 2021- REV2, Series 2021-2, Class A, 1.530%, 5/15/34(b) | 9,181,023 | ||||||
| 3,750,000 | GM Financial Revolving Receivables Trust, Series 2021-1, Class A, 1.170%, 6/12/34(b) | 3,240,304 | ||||||
| 15,735,000 | Hertz Vehicle Financing III L.P., Series 2021-2A, Class A, 1.680%, 12/27/27(b) | 13,461,047 | ||||||
| 7,000,000 | Hertz Vehicle Financing, LLC, Series 2022-2A, Class A, 2.330%, 6/26/28(b) | 6,122,285 | ||||||
| 453,576 | New Century Home Equity Loan Trust, Series 2003-4, Class M1, 4.209%, (LIBOR USD 1-Month plus 1.13%), 10/25/33(a)(c) | 437,397 | ||||||
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — (continued) | ||||||||
| $ | 16,000,000 | OneMain Direct Auto Receivables Trust 2021-1, Series 2021-1A, Class A, 0.870%, 7/14/28(b) | $ | 14,803,451 | ||||
| 3,950,000 | OneMain Financial Issuance Trust, Series 2022-S1, Class A, 4.130%, 5/14/35(b) | 3,752,523 | ||||||
| 20,805,000 | OneMain Financial Issuance Trust 2021-1, Series 2021-1A, Class A1, 1.550%, 6/16/36(b) | 17,346,561 | ||||||
| 5,500,000 | Santander Drive Auto Receivables Trust, Series 2021-1, Class C, 0.750%, 2/17/26 | 5,411,067 | ||||||
| 8,858,000 | Santander Drive Auto Receivables Trust, Series 2021-4, Class B, 0.880%, 6/15/26 | 8,642,293 | ||||||
| 2,311,050 | Saxon Asset Securities Trust, Series 2004-3, Class M1, 3.984%, (LIBOR USD 1-Month plus 0.90%), 12/26/34(a) | 2,251,368 | ||||||
| 3,690,155 | Wheels SPV 2, LLC, Series 2019-1A, Class A3, 2.350%, 5/22/28(b) | 3,679,950 | ||||||
| Total Asset Backed Securities | ||||||||
| (Cost $186,484,679) | 170,702,946 | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — 1.9% | ||||||||
| 18,247 | Adjustable Rate Mortgage Trust, Series 2004-5, Class 4A1, 2.880%, 4/25/35(d) | 18,187 | ||||||
| 91,203 | Banc of America Funding Trust, Series 2004-C, Class 4A1, 3.653%, (LIBOR USD 1-Month plus 0.66%), 12/20/34(a) | 90,938 | ||||||
| 216,094 | Banc of America Funding Trust, Series 2006-2, Class 3A1, 6.000%, 3/25/36 | 188,466 | ||||||
| 9,348 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19(c) | 9,290 | ||||||
| 53,882 | Countrywide Home Loan Mortgage Pass- Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34 | 50,298 | ||||||
| 137,814 | Credit Suisse First Boston Mortgage-Backed Pass-Through Certificates, Series 2004-1, Class 2A1, 6.500%, 2/25/34 | 134,419 | ||||||
| 793,522 | Fannie Mae, Series 2011-38, Class D, 4.500%, 5/25/41(c) | 780,341 | ||||||
| 2,505,986 | Fannie Mae, Series 2013-16, Class A, 1.750%, 1/25/40 | 2,409,791 | ||||||
| 891,000 | Fannie Mae, Series 2013-70, Class CY, 3.500%, 7/25/43 | 758,113 | ||||||
| 969,432 | Fannie Mae, Series 2014-39, Class VP, 3.000%, 8/25/27 | 948,416 | ||||||
| 154,780 | Fannie Mae, Series 2017-64, Class PD, 2.500%, 7/25/47 | 136,258 | ||||||
| 344,753 | Freddie Mac, Series 3632, Class PK, 5.000%, 2/15/40 | 343,926 | ||||||
| 730,000 | Freddie Mac, Series 3762, Class LN, 4.000%, 11/15/40 | 696,968 | ||||||
| 231,508 | Freddie Mac, Series 3768, Class V, 4.000%, 11/15/23 | 231,085 | ||||||
| 554,852 | Freddie Mac, Series 4077, Class PJ, 3.500%, 11/15/40 | 546,596 | ||||||
See accompanying Notes to the Financial Statements.
82
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) | ||||||||
| $ | 1,296,729 | Freddie Mac, Series 4100, Class PA, 3.000%, 1/15/42 | $ | 1,222,792 | ||||
| 507,000 | Freddie Mac, Series 4120, Class YK, 2.000%, 10/15/32 | 411,818 | ||||||
| 414,858 | Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27 | 389,007 | ||||||
| 324,000 | Freddie Mac, Series 4160, Class HH, 2.500%, 12/15/32 | 291,688 | ||||||
| 788,676 | Freddie Mac, Series 4287, Class V, 4.500%, 10/15/26 | 788,118 | ||||||
| 382,944 | Freddie Mac, Series 4328, Class KD, 3.000%, 8/15/43 | 363,070 | ||||||
| 1,726,265 | Freddie Mac, Series 4427, Class KA, 2.250%, 7/15/44 | 1,569,725 | ||||||
| 1,272,516 | Freddie Mac, Series 4654, Class KA, 3.000%, 6/15/45 | 1,195,867 | ||||||
| 2,737,636 | Freddie Mac, Series 4655, Class GV, 3.500%, 12/15/36 | 2,711,840 | ||||||
| 353,535 | Freddie Mac, Series 4710, Class GA, 3.000%, 3/15/44 | 347,146 | ||||||
| 162,034 | Ginnie Mae, Series 2008-51, Class PG, 5.000%, 6/20/38 | 161,210 | ||||||
| 3,234,971 | Ginnie Mae, Series 2014-2, Class AG, 2.266%, 3/20/40(d) | 2,928,643 | ||||||
| 361,526 | MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33 | 328,413 | ||||||
| 221,545 | MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35 | 165,821 | ||||||
| 10 | RAAC Trust, Series 2004-SP3, Class AI5, 4.890%, 12/25/32(d) | 10 | ||||||
| 69,783 | RAAC Trust, STEP, Series 2004-SP1, Class AI3, 6.118%, 3/25/34 | 67,586 | ||||||
| 106,039 | Residential Asset Securitization Trust, Series 2004-IP2, Class 4A, 3.803%, 12/25/34(d) | 94,975 | ||||||
| Total Collateralized Mortgage Obligations | ||||||||
| (Cost $21,926,156) | 20,380,821 | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 15.3% | ||||||||
| 6,730,000 | BX 2021-LBA3 Mortgage Trust, Series 2021-PAC, Class C, 3.917%, (LIBOR USD 1-Month plus 1.10%), 10/15/36(a)(b) | 6,243,343 | ||||||
| 6,612,000 | BX Commercial Mortgage Trust, Series 2021-21M, Class C, 3.995%, (LIBOR USD 1-Month plus 1.18%), 10/15/36(a)(b) | 6,241,220 | ||||||
| 6,834,000 | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 4.318%, (LIBOR USD 1-Month plus 1.50%), 11/15/38(a)(b) | 6,457,335 | ||||||
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 2,972,000 | BX Commercial Mortgage Trust, Series 2021-CIP, Class B, 4.089%, (LIBOR USD 1-Month plus 1.27%), 12/15/38(a)(b) | $ | 2,823,092 | ||||
| 4,687,000 | BX Commercial Mortgage Trust, Series 2021-CIP, Class C, 4.289%, (LIBOR USD 1-Month plus 1.47%), 12/15/38(a)(b) | 4,393,468 | ||||||
| 5,285,262 | BX Commercial Mortgage Trust, Series 2021-XL2, Class C, 4.015%, (LIBOR USD 1-Month plus 1.20%), 10/15/38(a)(b) | 4,980,707 | ||||||
| 4,233,029 | BX Commercial Mortgage Trust, Series 2022-LP2, Class B, 4.234%, (TSFR1M plus 1.31%), 2/15/39(a)(b) | 4,021,565 | ||||||
| 1,637,000 | BX Trust, Series 2021-ARIA, Class A, 3.717%, (LIBOR USD 1-Month plus 0.90%), 10/15/36(a)(b) | 1,552,920 | ||||||
| 6,776,000 | BX Trust, Series 2021-RISE, Class C, 4.268%, (LIBOR USD 1-Month plus 1.45%), 11/15/36(a)(b) | 6,353,927 | ||||||
| 4,314,000 | CD Mortgage Trust, Series 2016-CD2, Class A4, 3.526%, 11/10/49(d) | 4,018,624 | ||||||
| 530,000 | CD Mortgage Trust, Series 2017-CD3, Class A4, 3.631%, 2/10/50 | 493,880 | ||||||
| 3,447,000 | CFCRE Commercial Mortgage Trust, Series 2016-C7, Class A3, 3.839%, 12/10/54 | 3,247,662 | ||||||
| 1,337,000 | Citigroup Commercial Mortgage Trust, Series 2017-P7, Class A4, 3.712%, 4/14/50 | 1,244,134 | ||||||
| 3,159,000 | COMM 2013-CCRE12 Mortgage Trust, Series 2013-CR12, Class A4, 4.046%, 10/10/46 | 3,121,136 | ||||||
| 795,000 | COMM Mortgage Trust, Series 2014-CR16, Class A4, 4.051%, 4/10/47 | 780,116 | ||||||
| 1,643,000 | COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/10/47 | 1,589,229 | ||||||
| 1,208,000 | COMM Mortgage Trust, Series 2014-LC17, Class A5, 3.917%, 10/10/47 | 1,174,292 | ||||||
| 1,070,000 | COMM Mortgage Trust, Series 2014-UBS4, Class A5, 3.694%, 8/10/47 | 1,038,470 | ||||||
| 7,155,000 | COMM Mortgage Trust, Series 2017-COR2, Class A3, 3.510%, 9/10/50 | 6,586,509 | ||||||
| 1,337,000 | CSAIL Commercial Mortgage Trust, Series 2015-C4, Class A4, 3.808%, 11/15/48 | 1,275,972 | ||||||
| 6,168,000 | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 4.138%, (LIBOR USD 1-Month plus 1.32%), 11/15/38(a)(b) | 5,828,058 | ||||||
| 3,481,469 | Fannie Mae-Aces, Series 2017-M8, Class A2, 3.061%, 5/25/27(d) | 3,281,377 | ||||||
| 2,027,020 | Fannie Mae-Aces, Series 2019-M9, Class A2, 2.937%, 6/25/29 | 1,848,908 | ||||||
Continued
83
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 3,386,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K153, Class A3, 3.117%, 10/25/31(d) | $ | 3,039,969 | ||||
| 8,536,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K155, Class A3, 3.750%, 4/25/33 | 7,917,359 | ||||||
| 5,253,407 | FRESB Mortgage Trust, Series 2018-SB52, Class A10F, 3.480%, 6/25/28(d) | 4,975,740 | ||||||
| 419,126 | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(b) | 413,096 | ||||||
| 2,249,000 | GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47 | 2,184,701 | ||||||
| 2,209,000 | GS Mortgage Securities Trust, Series 2016-GS4, Class A4, 3.442%, 11/10/49(d). | 2,054,810 | ||||||
| 2,557,935 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(b)(d) | 2,459,018 | ||||||
| 1,497,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class AS, 3.372%, 12/15/47 | 1,483,434 | ||||||
| 1,517,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP4, Class A4, 3.648%, 12/15/49(d) | 1,419,861 | ||||||
| 1,245,000 | JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class A5, 3.934%, 9/15/47 | 1,213,400 | ||||||
| 3,742,000 | JPMCC Commercial Mortgage Securities Trust, Series 2017-JP5, Class A5, 3.723%, 3/15/50 | 3,510,103 | ||||||
| 6,719,000 | Med Trust, Series 2021-MDLN, Class C, 4.618%, (LIBOR USD 1-Month plus 1.80%), 11/15/38(a)(b) | 6,399,169 | ||||||
| 589,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47 | 570,805 | ||||||
| 5,198,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C32, Class A4, 3.720%, 12/15/49 | 4,867,318 | ||||||
| 2,562,000 | Morgan Stanley Capital I Trust, Series 2016-BNK2, Class A4, 3.049%, 11/15/49. | 2,335,277 | ||||||
| 9,850,000 | Morgan Stanley Capital I Trust, Series 2018-H3, Class A5, 4.177%, 7/15/51 | 9,261,344 | ||||||
| 8,910,000 | Morgan Stanley Capital I, Inc., Series 2017-HR2, Class A4, 3.587%, 12/15/50 | 8,207,846 | ||||||
| 5,093,015 | OPG Trust, Series 2021-PORT, Class C, 3.650%, (LIBOR USD 1-Month plus 0.83%), 10/15/36(a)(b) | 4,694,432 | ||||||
| 5,035,162 | SMR Mortgage Trust, Series 2022-IND, Class A, 4.495%, (TSFR1M plus 1.65%), 2/15/39(a)(b) | 4,890,358 | ||||||
| 2,812,000 | Wells Fargo Commercial Mortgage Trust, Series 2015-P2, Class A4, 3.809%, 12/15/48 | 2,681,806 | ||||||
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 723,000 | Wells Fargo Commercial Mortgage Trust, Series 2016-C37, Class A5, 3.794%, 12/15/49 | $ | 680,738 | ||||
| 8,591,000 | Wells Fargo Commercial Mortgage Trust, Series 2017-C40, Class A4, 3.581%, 10/15/50 | 7,927,841 | ||||||
| 899,000 | WFRBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57 | 874,669 | ||||||
| Total Commercial Mortgage-Backed Securities | ||||||||
| (Cost $175,813,196) | 162,659,038 | |||||||
| CORPORATE BONDS — 25.6% | ||||||||
| Aerospace & Defense — 0.7% | ||||||||
| 4,135,000 | Boeing Co. (The), 5.705%, 5/1/40 | 3,612,233 | ||||||
| 2,779,000 | L3Harris Technologies, Inc., 3.832%, 4/27/25 | 2,681,671 | ||||||
| 1,730,000 | Raytheon Technologies Corp., 4.500%, 6/1/42 | 1,491,447 | ||||||
| 7,785,351 | ||||||||
| Automobiles — 0.5% | ||||||||
| 3,115,000 | Daimler Trucks Finance North America, LLC, 2.000%, 12/14/26(b) | 2,689,104 | ||||||
| 2,994,000 | General Motors Financial Co., Inc., 2.750%, 6/20/25 | 2,758,304 | ||||||
| 5,447,408 | ||||||||
| Banks — 6.1% | ||||||||
| 2,672,000 | Australia & New Zealand Banking Group, Ltd., 2.950%, (5-Year Treasury Constant Maturity plus 1.29%), 7/22/30(b)(c)(d) | 2,428,314 | ||||||
| 4,441,000 | Bank of America Corp., 3.163%, (SOFR plus 0.69%), 4/22/25(a) | 4,367,773 | ||||||
| 3,031,000 | Bank of America Corp., 3.419%, (LIBOR USD 3-Month plus 1.04%), 12/20/28(e) | 2,689,699 | ||||||
| 3,593,000 | Barclays PLC, 4.338%, (LIBOR USD 3-Month plus 1.36%), 5/16/24(e) | 3,552,505 | ||||||
| 3,951,000 | BPCE SA, 2.375%, 1/14/25(b) | 3,648,466 | ||||||
| 5,816,000 | Citigroup, Inc., 3.255%, (SOFR plus 0.67%), 5/1/25(a) | 5,715,743 | ||||||
| 4,084,000 | Commonwealth Bank of Australia, 2.597%, (SOFR plus 0.40%), 7/7/25(a)(b) | 4,010,978 | ||||||
| 3,336,000 | First Citizens BancShares, Inc., 3.375%, (TSFR3M plus 2.47%), 3/15/30(e) | 3,130,665 | ||||||
| 3,558,000 | Huntington Bancshares, Inc., 2.625%, 8/6/24 | 3,400,111 | ||||||
| 4,185,000 | JPMorgan Chase & Co., 2.083%, (SOFR plus 1.85%), 4/22/26(e) | 3,813,438 | ||||||
| 3,937,000 | JPMorgan Chase & Co., 3.316%, (SOFR plus 0.89%), 4/22/27(a) | 3,818,552 | ||||||
| 3,010,000 | Lloyds Banking Group PLC, 4.582%, 12/10/25 | 2,840,403 | ||||||
Continued
84
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Banks — (continued) | ||||||||
| $ | 2,018,000 | Macquarie Group, Ltd., 1.340%, (SOFR plus 1.07%), 1/12/27(b)(e) | $ | 1,727,733 | ||||
| 2,633,000 | Morgan Stanley, 0.790%, (SOFR plus 0.53%), 5/30/25(e) | 2,424,008 | ||||||
| 2,858,000 | PNC Financial Services Group, Inc. (The), Series O, 6.460%, (LIBOR USD 3-Month plus 3.68%)(d)(f) | 2,838,479 | ||||||
| 4,449,000 | Royal Bank of Canada, GMTN, 3.079%, (SOFRINDX plus 0.57%), 4/27/26(a) | 4,262,112 | ||||||
| 3,372,000 | Sumitomo Mitsui Financial Group, Inc., 2.130%, 7/8/30 | 2,581,603 | ||||||
| 2,994,000 | Toronto-Dominion Bank (The), 3.625%, (5 yr. Swap Semi 30/360 USD plus 2.21%), 9/15/31(d) | 2,730,363 | ||||||
| 1,194,000 | Visa, Inc., 2.700%, 4/15/40 | 863,284 | ||||||
| 3,674,000 | Wells Fargo & Co., 3.068%, (SOFR plus 2.53%), 4/30/41(e) | 2,518,966 | ||||||
| 1,882,000 | Westpac Banking Corp., GMTN, 4.322%, (USD Swap Rate 11:00 am NY 5 plus 2.24%), 11/23/31(d) | 1,716,863 | ||||||
| 65,080,058 | ||||||||
| Beverages — 0.5% | ||||||||
| 2,298,000 | Anheuser-Busch InBev Worldwide, Inc., 5.800%, 1/23/59 | 2,196,611 | ||||||
| 3,445,000 | Bacardi, Ltd., 4.450%, 5/15/25(b) | 3,302,913 | ||||||
| 5,499,524 | ||||||||
| Capital Goods — 0.3% | ||||||||
| 2,710,000 | Keysight Technologies, Inc., 4.550%, 10/30/24 | 2,672,217 | ||||||
| Capital Markets — 0.3% | ||||||||
| 3,068,000 | Morgan Stanley, 2.188%, (SOFR plus 1.99%), 4/28/26(e) | 2,814,600 | ||||||
| Chemicals — 0.3% | ||||||||
| 2,906,000 | Albemarle Corp., 5.450%, 12/1/44(c) | 2,523,881 | ||||||
| 1,317,000 | FMC Corp., 3.450%, 10/1/29 | 1,130,514 | ||||||
| 3,654,395 | ||||||||
| Commercial Services & Supplies — 0.2% | ||||||||
| 3,802,000 | Waste Connections, Inc., 2.950%, 1/15/52 | 2,459,823 | ||||||
| Construction Materials — 0.1% | ||||||||
| 1,811,000 | Vulcan Materials Co., 4.500%, 6/15/47 | 1,467,461 | ||||||
| Diversified Financial Services — 2.8% | ||||||||
| 3,315,000 | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.450%, 10/1/25(c) | 3,129,462 | ||||||
| 2,953,000 | Avolon Holdings Funding, Ltd., 2.875%, 2/15/25(b) | 2,671,629 | ||||||
| 3,830,000 | Bain Capital Specialty Finance, Inc., 2.950%, 3/10/26 | 3,298,393 | ||||||
| 3,508,000 | Barings BDC, Inc., 3.300%, 11/23/26(b) | 2,910,844 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Diversified Financial Services — (continued) | ||||||||
| $ | 3,509,000 | BlackRock, Inc., 1.900%, 1/28/31(c) | $ | 2,738,346 | ||||
| 3,807,000 | Blue Owl Finance, LLC, 4.125%, 10/7/51(b) | 2,199,770 | ||||||
| 3,225,000 | Charles Schwab Corp. (The), 3.173%, (SOFRINDX plus 0.52%), 5/13/26(a) | 3,130,774 | ||||||
| 1,398,000 | Goldman Sachs Group, Inc. (The), 3.000%, 3/15/24 | 1,358,692 | ||||||
| 4,203,000 | Goldman Sachs Group, Inc. (The), Series VAR, 1.093%, (SOFR plus 0.79%), 12/9/26(e) | 3,627,510 | ||||||
| 2,088,000 | Jefferies Group, LLC/Jefferies Group Capital Finance, Inc., 4.150%, 1/23/30 | 1,782,019 | ||||||
| 3,107,000 | Owl Rock Capital Corp., 3.400%, 7/15/26 | 2,666,806 | ||||||
| 29,514,245 | ||||||||
| Diversified Telecommunication Services — 0.8% | ||||||||
| 2,582,500 | Sprint Spectrum Co., LLC/Sprint Spectrum Co. II, LLC/Sprint Spectrum Co. III, LLC, 4.738%, 3/20/25(b) | 2,545,469 | ||||||
| 2,853,000 | T-Mobile USA, Inc., 3.500%, 4/15/25 | 2,727,171 | ||||||
| 3,961,000 | Verizon Communications, Inc., 1.450%, 3/20/26 | 3,491,335 | ||||||
| 8,763,975 | ||||||||
| Electric Utilities — 1.7% | ||||||||
| 2,929,000 | CenterPoint Energy, Inc., 2.950%, 3/1/30 | 2,456,562 | ||||||
| 3,771,000 | Dominion Energy, Inc., STEP, 3.071%, 8/15/24 | 3,631,372 | ||||||
| 3,857,000 | Duke Energy Progress, LLC, 3.600%, 9/15/47 | 2,898,738 | ||||||
| 2,834,000 | Entergy Mississippi, LLC, 3.100%, 7/1/23 | 2,796,398 | ||||||
| 3,386,000 | Indiana Michigan Power Co., Series K, 4.550%, 3/15/46 | 2,829,394 | ||||||
| 1,000,000 | Korea East-West Power Co., Ltd., 1.750%, 5/6/25(b) | 916,140 | ||||||
| 2,741,000 | NextEra Energy Capital Holdings, Inc., 2.440%, 1/15/32 | 2,130,310 | ||||||
| 17,658,914 | ||||||||
| Energy Equipment & Services — 1.3% | ||||||||
| 3,039,000 | Cheniere Corpus Christi Holdings, LLC, 3.700%, 11/15/29 | 2,634,501 | ||||||
| 1,919,000 | Enterprise Products Operating, LLC, 5.950%, 2/1/41 | 1,836,890 | ||||||
| 1,557,000 | Hess Corp., 7.875%, 10/1/29(c) | 1,689,458 | ||||||
| 228,000 | NuStar Logistics L.P., 6.000%, 6/1/26(c) | 208,708 | ||||||
| 3,405,000 | Plains All American Pipeline LP/PAA Finance Corp., 4.900%, 2/15/45 | 2,498,484 | ||||||
| 2,894,000 | Sabine Pass Liquefaction, LLC, 5.625%, 3/1/25 | 2,891,513 | ||||||
| 2,990,000 | Sempra Global, 3.250%, 1/15/32(b) | 2,378,736 | ||||||
| 14,138,290 | ||||||||
Continued
85
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Equity Real Estate Investment Trusts (REITS) — 1.2% | ||||||||
| $ | 3,279,000 | American Tower Trust, 3.652%, 3/23/28(b)(c) | $ | 2,984,702 | ||||
| 1,170,000 | Invitation Homes Operating Partnership L.P., 4.150%, 4/15/32 | 988,273 | ||||||
| 2,154,000 | LXP Industrial Trust, 2.700%, 9/15/30 | 1,656,069 | ||||||
| 5,037,000 | SBA Tower Trust, Series 2014-2A, Class C, 3.869%, 10/8/24(b) | 4,872,502 | ||||||
| 3,308,000 | Tanger Properties L.P., 2.750%, 9/1/31 | 2,348,529 | ||||||
| 12,850,075 | ||||||||
| Food & Staples Retailing — 0.3% | ||||||||
| 3,028,000 | AbbVie, Inc., 4.875%, 11/14/48 | 2,662,788 | ||||||
| Gas Utilities — 0.3% | ||||||||
| 4,120,000 | Sempra Energy, 3.800%, 2/1/38 | 3,213,491 | ||||||
| Health Care Equipment & Services — 0.3% | ||||||||
| 1,004,000 | HCA, Inc., 3.125%, 3/15/27(b) | 889,221 | ||||||
| 2,637,000 | HCA, Inc., 5.000%, 3/15/24 | 2,619,583 | ||||||
| 3,508,804 | ||||||||
| Health Care Providers & Services — 0.6% | ||||||||
| 4,164,000 | CVS Health Corp., 2.700%, 8/21/40 | 2,733,533 | ||||||
| 2,031,000 | Elevance Health, Inc., 3.600%, 3/15/51(c) | 1,447,914 | ||||||
| 2,633,000 | Viatris, Inc., 3.850%, 6/22/40 | 1,638,769 | ||||||
| 5,820,216 | ||||||||
| Insurance — 2.7% | ||||||||
| 2,160,000 | Aspen Insurance Holdings, Ltd., 4.650%, 11/15/23 | 2,140,051 | ||||||
| 2,879,000 | Athene Global Funding, 2.500%, 1/14/25(b) | 2,685,452 | ||||||
| 3,564,000 | AXIS Specialty Finance, LLC, 3.900%, 7/15/29 | 3,096,447 | ||||||
| 3,482,000 | Brighthouse Financial Global Funding, 1.550%, 5/24/26(b) | 2,999,116 | ||||||
| 3,440,000 | Enstar Group, Ltd., 3.100%, 9/1/31 | 2,441,854 | ||||||
| 2,388,000 | KKR Group Finance Co. III, LLC, 5.125%, 6/1/44(b) | 2,064,767 | ||||||
| 3,564,000 | Meiji Yasuda Life Insurance Co., 5.200%, (5 yr. Swap Semi 30/360 USD plus 4.23%), 10/20/45(b)(d) | 3,436,659 | ||||||
| 3,239,000 | Nationwide Mutual Insurance Co., 4.350%, 4/30/50(b) | 2,409,961 | ||||||
| 3,492,000 | Sammons Financial Group, Inc., 3.350%, 4/16/31(b) | 2,618,140 | ||||||
| 3,196,000 | SBL Holdings, Inc., 5.000%, 2/18/31(b). | 2,440,334 | ||||||
| 1,930,000 | Transatlantic Holdings, Inc., 8.000%, 11/30/39. | 2,301,543 | ||||||
| 28,634,324 | ||||||||
| Internet & Direct Marketing Retail — 0.2% | ||||||||
| 3,517,000 | Amazon.com, Inc., 2.700%, 6/3/60(c) | 2,074,886 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Machinery — 0.2% | ||||||||
| $ | 3,131,000 | Deere & Co., 3.750%, 4/15/50 | $ | 2,553,773 | ||||
| Media — 0.5% | ||||||||
| 2,126,000 | Discovery Communications, LLC, 5.200%, 9/20/47 | 1,569,262 | ||||||
| 1,353,000 | FactSet Research Systems, Inc., 2.900%, 3/1/27 | 1,224,900 | ||||||
| 2,297,000 | Time Warner Cable, LLC, 6.550%, 5/1/37 | 2,072,582 | ||||||
| 4,866,744 | ||||||||
| Metals & Mining — 0.2% | ||||||||
| 2,015,000 | Southern Copper Corp., 3.500%, 11/8/22 | 2,010,275 | ||||||
| Multi-Utilities — 0.4% | ||||||||
| 2,400,000 | CMS Energy Corp., 4.700%, 3/31/43 | 1,935,447 | ||||||
| 3,056,000 | Puget Sound Energy, Inc., 4.223%, 6/15/48 | 2,493,554 | ||||||
| 4,429,001 | ||||||||
| Oil, Gas & Consumable Fuels — 1.0% | ||||||||
| 2,545,000 | Halliburton Co., 7.450%, 9/15/39 | 2,721,831 | ||||||
| 1,503,000 | Hess Corp., 5.800%, 4/1/47 | 1,342,573 | ||||||
| 1,725,000 | HF Sinclair Corp., 4.500%, 10/1/30(b) | 1,477,832 | ||||||
| 2,149,000 | HF Sinclair Corp., 5.875%, 4/1/26(b) | 2,107,182 | ||||||
| 2,917,000 | Schlumberger Investment SA, 2.650%, 6/26/30 | 2,425,278 | ||||||
| 10,074,696 | ||||||||
| Pharmaceuticals — 0.2% | ||||||||
| 2,559,000 | SC Johnson & Son, Inc., 4.750%, 10/15/46(b) | 2,253,773 | ||||||
| Road & Rail — 0.4% | ||||||||
| 2,334,000 | Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41 | 2,161,084 | ||||||
| 3,474,000 | Kansas City Southern, 4.200%, 11/15/69 | 2,523,510 | ||||||
| 4,684,594 | ||||||||
| Semiconductors & Semiconductor Equipment — 0.4% | ||||||||
| 1,773,000 | Broadcom, Inc., 4.926%, 5/15/37(b) | 1,461,101 | ||||||
| 3,110,000 | TSMC Global, Ltd., 1.250%, 4/23/26(b) | 2,724,860 | ||||||
| 4,185,961 | ||||||||
| Software — 0.4% | ||||||||
| 2,403,000 | Dell International, LLC/EMC Corp., 3.450%, 12/15/51(b) | 1,366,189 | ||||||
| 2,700,000 | Dell International, LLC/EMC Corp., 6.020%, 6/15/26 | 2,711,783 | ||||||
| 4,077,972 | ||||||||
| Specialty Retail — 0.2% | ||||||||
| 3,331,000 | ERAC USA Finance, LLC, 4.200%, 11/1/46(b) | 2,471,890 | ||||||
| Telecommunication Services — 0.5% | ||||||||
| 3,783,000 | AT&T, Inc., 3.550%, 9/15/55(c) | 2,481,251 | ||||||
Continued
86
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Telecommunication Services — (continued) | ||||||||
| $ | 3,858,000 | AT&T, Inc., 3.850%, 6/1/60(c) | $ | 2,585,326 | ||||
| 5,066,577 | ||||||||
| Total Corporate Bonds | ||||||||
| (Cost $324,736,329) | 272,396,101 | |||||||
| MORTGAGE-BACKED SECURITIES — 21.1% | ||||||||
| Fannie Mae — 12.7% | ||||||||
| 13,199 | 5.000%, 9/1/25, Pool #255892 | 12,959 | ||||||
| 1,140,116 | 4.000%, 12/1/33, Pool #MA1689 | 1,088,601 | ||||||
| 671,446 | 4.000%, 6/1/34, Pool #MA1922 | 640,769 | ||||||
| 619,300 | 4.000%, 3/1/35, Pool #MA2211 | 589,869 | ||||||
| 276,984 | 5.500%, 8/1/37, Pool #995082 | 285,964 | ||||||
| 2,823,132 | 3.500%, 8/1/38, Pool #FM2472 | 2,637,300 | ||||||
| 101,374 | 4.500%, 10/1/39, Pool #AC2645 | 98,640 | ||||||
| 106,276 | 5.000%, 6/1/40, Pool #AD8718 | 107,249 | ||||||
| 102,996 | 5.000%, 6/1/40, Pool #AD4927 | 103,932 | ||||||
| 6,907,109 | 4.000%, 8/1/40, Pool #FM4673 | 6,664,137 | ||||||
| 12,905,508 | 1.500%, 12/1/40, Pool #MA4202 | 10,335,652 | ||||||
| 217,545 | 4.500%, 12/1/40, Pool #AH1100 | 213,189 | ||||||
| 137,562 | 4.500%, 3/1/41, Pool #AB2467 | 134,804 | ||||||
| 263,042 | 4.500%, 5/1/41, Pool #AI1023 | 256,403 | ||||||
| 166,544 | 4.500%, 11/1/41, Pool #AJ4994 | 163,207 | ||||||
| 191,968 | 4.500%, 12/1/41, Pool #AJ7696 | 187,181 | ||||||
| 466,557 | 3.500%, 6/1/42, Pool #AB5373 | 428,663 | ||||||
| 845,648 | 3.500%, 5/1/43, Pool #AL3605 | 771,515 | ||||||
| 417,826 | 3.500%, 5/1/43, Pool #AB9368 | 384,053 | ||||||
| 10,413,402 | 3.000%, 8/1/43, Pool #AL9500 | 9,338,701 | ||||||
| 1,133,548 | 3.500%, 8/1/43, Pool #AU0613 | 1,041,241 | ||||||
| 252,756 | 4.500%, 11/1/44, Pool #MA2100 | 247,692 | ||||||
| 666,647 | 4.500%, 1/1/45, Pool #MA2158 | 653,302 | ||||||
| 811,502 | 4.000%, 3/1/45, Pool #MA2217(c) | 771,304 | ||||||
| 753,123 | 4.000%, 6/1/46, Pool #MA2653 | 714,382 | ||||||
| 680,347 | 4.500%, 7/1/46, Pool #AS7568 | 662,191 | ||||||
| 924,931 | 4.000%, 11/1/46, Pool #MA2808 | 877,179 | ||||||
| 1,274,904 | 4.000%, 5/1/47, Pool #BE9598 | 1,208,219 | ||||||
| 1,350,952 | 4.000%, 8/1/47, Pool #BH5117 | 1,279,635 | ||||||
| 3,673,970 | 4.000%, 4/1/48, Pool #BM3900 | 3,472,852 | ||||||
| 1,409,768 | 5.000%, 8/1/48, Pool #CA2219 | 1,392,710 | ||||||
| 3,353,660 | 3.000%, 11/1/48, Pool #BM5822 | 2,983,369 | ||||||
| 4,433,213 | 3.500%, 10/1/49, Pool #CA4431 | 4,035,009 | ||||||
| 11,901,114 | 3.000%, 3/1/50, Pool #FM2870 | 10,552,916 | ||||||
| 6,718,776 | 3.000%, 3/1/50, Pool #FM2714 | 5,915,198 | ||||||
| 3,223,101 | 2.500%, 5/1/50, Pool #FM3287 | 2,734,620 | ||||||
| 7,573,185 | 2.000%, 7/1/50, Pool #CA6301 | 6,200,476 | ||||||
| 9,605,205 | 2.500%, 9/1/50, Pool #BQ0538 | 8,141,981 | ||||||
| 3,852,001 | 2.500%, 9/1/50, Pool #BQ2883 | 3,265,117 | ||||||
| 4,096,069 | 3.000%, 10/1/50, Pool #CA7381 | 3,595,948 | ||||||
| 4,958,646 | 3.000%, 11/1/51, Pool #CB2170 | 4,336,766 | ||||||
| 16,410,868 | 3.500%, 4/1/52, Pool #FS1475 | 14,873,824 | ||||||
| 13,770,711 | 3.500%, 4/1/52, Pool #FS1185 | 12,424,246 | ||||||
| 10,124,820 | 4.500%, 6/1/52, Pool #FS2157 | 9,759,657 | ||||||
| 135,582,622 | ||||||||
| Principal Amount | Fair Value | |||||||
| MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| Freddie Mac — 8.4% | ||||||||
| $ | 17,701 | 5.000%, 7/1/25, Pool #ZA1892 | $ | 17,380 | ||||
| 90,635 | 2.500%, 1/1/28, Pool #ZK4918 | 86,601 | ||||||
| 268,060 | 3.500%, 7/1/30, Pool #ZS8575 | 255,417 | ||||||
| 36,847 | 5.000%, 3/1/36, Pool #ZS4230 | 37,181 | ||||||
| 1,095,473 | 4.000%, 4/1/36, Pool #ZA2413 | 1,045,294 | ||||||
| 1,344,798 | 3.500%, 6/1/36, Pool #ZA2414(c) | 1,258,790 | ||||||
| 10,212 | 5.000%, 7/1/36, Pool #ZS1139 | 10,304 | ||||||
| 811,439 | 3.500%, 8/1/36, Pool #ZA2425 | 759,549 | ||||||
| 111,335 | 6.500%, 9/1/36, Pool #ZS4257 | 117,448 | ||||||
| 2,156,074 | 3.500%, 11/1/36, Pool #ZA2439 | 2,001,257 | ||||||
| 41,843 | 5.000%, 2/1/37, Pool #ZI5759 | 42,224 | ||||||
| 1,572,825 | 4.000%, 5/1/37, Pool #ZA2461 | 1,500,751 | ||||||
| 37,718 | 4.500%, 10/1/39, Pool #ZI9349 | 36,789 | ||||||
| 113,803 | 5.000%, 6/1/40, Pool #ZA1049 | 114,842 | ||||||
| 296,016 | 5.000%, 7/1/40, Pool #ZJ0194 | 298,716 | ||||||
| 31,410 | 5.000%, 9/1/40, Pool #ZA1066 | 31,696 | ||||||
| 6,613,993 | 2.000%, 12/1/40, Pool #RB5090 | 5,544,283 | ||||||
| 414,351 | 4.000%, 12/1/42, Pool #ZS3671 | 393,255 | ||||||
| 316,177 | 3.500%, 5/1/43, Pool #ZL5915 | 290,413 | ||||||
| 189,619 | 4.000%, 5/1/44, Pool #ZA4468 | 180,207 | ||||||
| 84,191 | 4.000%, 7/1/44, Pool #ZS4573 | 80,013 | ||||||
| 143,494 | 4.000%, 9/1/44, Pool #ZL8439 | 136,375 | ||||||
| 1,988,650 | 3.500%, 1/1/45, Pool #ZL8964 | 1,826,622 | ||||||
| 1,662,083 | 3.500%, 5/1/46, Pool #ZS4663 | 1,539,187 | ||||||
| 473,817 | 4.000%, 8/1/46, Pool #ZS4673 | 449,305 | ||||||
| 1,135,690 | 3.500%, 9/1/46, Pool #ZS4678 | 1,045,539 | ||||||
| 2,563,769 | 3.500%, 9/1/47, Pool #ZM4305 | 2,342,248 | ||||||
| 667,225 | 3.500%, 1/1/48, Pool #ZM5375 | 609,542 | ||||||
| 642,827 | 4.000%, 2/1/48, Pool #ZT1639 | 609,112 | ||||||
| 577,612 | 4.000%, 6/1/48, Pool #ZT0541 | 546,597 | ||||||
| 6,689,319 | 2.500%, 11/1/49, Pool #QA4396 | 5,666,567 | ||||||
| 2,840,873 | 3.000%, 11/1/49, Pool #QA4336 | 2,514,870 | ||||||
| 2,675,974 | 3.500%, 6/1/50, Pool #RA2794 | 2,429,416 | ||||||
| 10,275,584 | 2.500%, 7/1/50, Pool #RA2970 | 8,732,671 | ||||||
| 12,040,833 | 2.500%, 11/1/50, Pool #QB5838 | 10,201,011 | ||||||
| 257,635 | 3.000%, 1/1/51, Pool #SD8123 | 225,988 | ||||||
| 1,410,153 | 3.000%, 12/1/51, Pool #SD8184 | 1,233,904 | ||||||
| 4,463,228 | 3.500%, 4/1/52, Pool #RA7191 | 4,025,936 | ||||||
| 10,759,009 | 4.000%, 5/1/52, Pool #RA7306 | 10,029,063 | ||||||
| 10,735,120 | 4.500%, 8/1/52, Pool #SD1515 | 10,258,838 | ||||||
| 11,030,000 | 5.000%, 9/1/52, Pool #RA7936(g) | 10,782,868 | ||||||
| 89,308,069 | ||||||||
| Ginnie Mae — 0.0% | ||||||||
| 56,531 | 5.000%, 2/15/40, Pool #737037 | 57,056 | ||||||
| Total Mortgage-Backed Securities | ||||||||
| (Cost $255,947,423) | 224,947,747 | |||||||
Continued
87
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — 4.4% | ||||||||
| Alabama — 0.2% | ||||||||
| $ | 2,675,000 | Alabama Economic Settlement Authority, Economic Imports, Taxable BP - Settlement Revenue, Series B, 4.263%, 9/15/32(c) | $ | 2,524,237 | ||||
| California — 0.7% | ||||||||
| 2,675,000 | Municipal Improvement Corp. of Los Angeles, Advance Refunding Revenue Bonds, Series A, 1.448%, 11/1/27 | 2,268,801 | ||||||
| 2,230,000 | Municipal Improvement Corp. of Los Angeles, Advance Refunding Revenue Bonds, Series A, 1.648%, 11/1/28 | 1,850,432 | ||||||
| 2,370,000 | San Diego County Water Authority, Taxable Green Bonds, Advance Refunding Revenue Bonds, Series A, 1.531%, 5/1/30 | 1,887,966 | ||||||
| 1,145,000 | State of California, Build America Bonds, School Improvements G.O., 7.625%, 3/1/40(c) | 1,420,384 | ||||||
| 7,427,583 | ||||||||
| Florida — 0.3% | ||||||||
| 1,905,000 | Reedy Creek Improvement District, Advance Refunding, Taxable Revenue Bonds, G.O., Series A, 2.147%, 6/1/29 | 1,549,546 | ||||||
| 1,810,000 | Reedy Creek Improvement District, Advance Refunding, Taxable Revenue Bonds, G.O., Series A, 2.197%, 6/1/30 | 1,436,905 | ||||||
| �� | 2,986,451 | |||||||
| Illinois — 0.9% | ||||||||
| 7,155,000 | Sales Tax Securitization Corp., Second Lien, Current Refunding, Taxable Revenue Bonds, Series B, 3.057%, 1/1/34 | 5,640,572 | ||||||
| 1,605,000 | State of Illinois Sales Tax Revenue, Public Improvements, Taxable Building Revenue, 3.481%, 6/15/26 | 1,490,708 | ||||||
| 2,790,000 | State of Illinois Sales Tax Revenue, Public Improvements, Taxable Revenue, Series B, 2.620%, 6/15/26 | 2,512,200 | ||||||
| 9,643,480 | ||||||||
| New York — 1.2% | ||||||||
| 4,630,000 | Metropolitan Transportation Authority, Taxable Green Bonds, Green Purpose Revenue Bonds, Series C2, 5.175%, 11/15/49 | 4,117,505 | ||||||
| 2,695,000 | New York City Transitional Finance Authority Future Tax Secured Revenue, Public Improvements, Taxable Revenue, Callable 2/1/27 @ 100, 3.330%, 2/1/28 | 2,495,220 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| New York — (continued) | ||||||||
| $ | 7,130,000 | New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Public Improvements, Taxable Revenue, Sub Series B3, Callable 11/1/29 @ 100, 3.000%, 11/1/33 | $ | 5,756,905 | ||||
| 12,369,630 | ||||||||
| North Carolina — 0.2% | ||||||||
| 2,317,000 | Duke University, 3.299%, 10/1/46 | 1,754,422 | ||||||
| Pennsylvania — 0.4% | ||||||||
| 2,320,000 | City of Pittsburgh, PA, Refunding, Taxable Revenue Bonds, G.O., Series B, 1.189%, 9/1/26 | 2,038,491 | ||||||
| 3,898,000 | Lehigh University, 3.479%, 11/15/46 | 2,802,358 | ||||||
| 4,840,849 | ||||||||
| Texas — 0.5% | ||||||||
| 1,580,000 | Dallas Area Rapid Transit, Advance Refunding, Taxable Revenue Bonds, Series C, Callable 12/1/29 @ 100, 1.846%, 12/1/30 | 1,260,856 | ||||||
| 4,605,000 | Tarrant Regional Water District, Advance Refunding Revenue Bonds, Series S, 1.450%, 9/1/29 | 3,709,926 | ||||||
| 4,970,782 | ||||||||
| Total Municipal Bonds | ||||||||
| (Cost $57,112,748) | 46,517,434 | |||||||
| U.S. TREASURY BONDS — 9.1% | ||||||||
| 55,273,400 | 2.500%, 2/15/45 | 42,191,309 | ||||||
| 93,391,400 | 1.375%, 8/15/50 | 54,108,642 | ||||||
| Total U.S. Treasury Bonds | ||||||||
| (Cost $113,343,452) | 96,299,951 | |||||||
| U.S. TREASURY NOTES — 6.0% | ||||||||
| 9,400,000 | 0.250%, 8/15/24 | 8,747,508 | ||||||
| 10,985,000 | 0.250%, 7/31/25 | 9,821,706 | ||||||
| 20,513,100 | 1.625%, 1/31/27 | 18,396,885 | ||||||
| 28,667,600 | 2.625%, 2/15/29 | 26,426,824 | ||||||
| Total U.S. Treasury Notes | ||||||||
| (Cost $65,919,232) | 63,392,923 | |||||||
Continued
88
| Sterling Capital Total Return Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | |||||||
| MONEY MARKET FUND — 1.3% | ||||||||
| 13,989,821 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(h) | $ | 13,989,821 | |||||
| Total Money Market Fund | ||||||||
| (Cost $13,989,821) | 13,989,821 | |||||||
| Total Investments — 100.7% | ||||||||
| (Cost $1,215,273,036) | 1,071,286,782 | |||||||
| Net Other Assets (Liabilities) — (0.7)% | (7,807,097 | ) | ||||||
| NET ASSETS — 100.0% | $ | 1,063,479,685 | ||||||
| (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, 2022. The maturity date reflected is the final maturity date. |
| (b) | Rule 144A, Section 4(2) or other security that is restricted as to resale to qualified institutional investors. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (c) | Represents that all or a portion of the security was pledged as collateral for securities purchased on a when-issued basis. |
| (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, 2022. The maturity date reflected is the final maturity date. |
| (e) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Rate shown is the fixed rate. |
| (f) | Security is perpetual in nature and has no stated maturity date. |
| (g) | Represents securities purchased on a when-issued basis. At September 30, 2022, total cost of investments purchased on a when-issued basis was $11,073,083. |
| (h) | Represents the current yield as of report date. |
| GMTN | Global Medium Term Note |
| G.O. | General Obligation |
| STEP | Step Coupon Bond |
Continued
89
| Sterling Capital Long Duration Corporate Bond Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — 95.2% | ||||||||
| Aerospace & Defense — 2.8% | ||||||||
| $ | 90,000 | Boeing Co. (The), 3.825%, 3/1/59 | $ | 54,253 | ||||
| 110,000 | Boeing Co. (The), 3.900%, 5/1/49 | 71,857 | ||||||
| 170,000 | Boeing Co. (The), 5.705%, 5/1/40 | 148,508 | ||||||
| 90,000 | L3Harris Technologies, Inc., 4.854%, 4/27/35 | 81,296 | ||||||
| 80,000 | Lockheed Martin Corp., 4.150%, 6/15/53 | 66,801 | ||||||
| 160,000 | Raytheon Technologies Corp., 2.820%, 9/1/51 | 100,373 | ||||||
| 70,000 | Raytheon Technologies Corp., 3.030%, 3/15/52 | 45,675 | ||||||
| 90,000 | Raytheon Technologies Corp., 4.450%, 11/16/38 | 78,410 | ||||||
| 647,173 | ||||||||
| Airlines — 0.2% | ||||||||
| 39,000 | American Airlines, Inc./AAdvantage Loyalty IP, Ltd., 5.500%, 4/20/26(a) | 36,628 | ||||||
| Apparel — 0.3% | ||||||||
| 90,000 | NIKE, Inc., 3.375%, 3/27/50 | 66,986 | ||||||
| Automobiles — 1.1% | ||||||||
| 90,000 | Ford Motor Co., 5.291%, 12/8/46 | 63,450 | ||||||
| 80,000 | General Motors Co., 5.150%, 4/1/38 | 64,376 | ||||||
| 80,000 | General Motors Co., 5.200%, 4/1/45 | 60,922 | ||||||
| 60,000 | General Motors Co., 6.750%, 4/1/46 | 54,637 | ||||||
| 243,385 | ||||||||
| Banks — 9.0% | ||||||||
| 90,000 | Bank of America Corp., 2.482%, (5-Year Treasury Constant Maturity plus 1.20%), 9/21/36(b) | 65,055 | ||||||
| 70,000 | Bank of America Corp., 4.244%, (LIBOR USD 3-Month plus 1.81%), 4/24/38(c) | 57,634 | ||||||
| 100,000 | Bank of America Corp., 6.110%, 1/29/37 | 96,294 | ||||||
| 255,000 | Bank of America Corp., MTN, 2.676%, (SOFR plus 1.93%), 6/19/41(c) | 164,719 | ||||||
| 140,000 | Bank of America Corp., MTN, 4.330%, (LIBOR USD 3-Month plus 1.52%), 3/15/50(c) | 110,217 | ||||||
| 70,000 | Citigroup, Inc., 3.878%, (LIBOR USD 3-Month plus 1.17%), 1/24/39(c) | 54,895 | ||||||
| 60,000 | Citigroup, Inc., 5.316%, (SOFR plus 4.55%), 3/26/41(c) | 54,169 | ||||||
| 90,000 | Citigroup, Inc., 5.875%, 1/30/42 | 86,154 | ||||||
| 21,000 | Citigroup, Inc., Series U, 5.000%, (SOFR plus 3.81%)(c)(d) | 18,681 | ||||||
| 50,000 | Fifth Third Bancorp, 8.250%, 3/1/38 | 59,210 | ||||||
| 130,000 | Goldman Sachs Group, Inc. (The), 2.908%, (SOFR plus 1.47%), 7/21/42(c) | 83,596 | ||||||
| 170,000 | Goldman Sachs Group, Inc. (The), 6.750%, 10/1/37 | 169,361 | ||||||
| 250,000 | JPMorgan Chase & Co., 3.109%, (SOFR plus 2.46%), 4/22/41(c) | 173,223 | ||||||
| 150,000 | JPMorgan Chase & Co., 3.882%, (LIBOR USD 3-Month plus 1.36%), 7/24/38(c) | 117,074 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Banks — (continued) | ||||||||
| $ | 100,000 | JPMorgan Chase & Co., 4.260%, (LIBOR USD 3-Month plus 1.58%), 2/22/48(c) | $ | 78,923 | ||||
| 90,000 | Morgan Stanley, 2.484%, (SOFR plus 1.36%), 9/16/36(c) | 64,463 | ||||||
| 110,000 | Morgan Stanley, 3.217%, (SOFR plus 1.49%), 4/22/42(c) | 76,674 | ||||||
| 90,000 | Morgan Stanley, 3.971%, (LIBOR USD 3-Month plus 1.46%), 7/22/38(c) | 71,728 | ||||||
| 135,000 | PNC Financial Services Group, Inc. (The), Series O, 6.460%, (LIBOR USD 3-Month plus 3.68%)(b)(d) | 134,078 | ||||||
| 220,000 | Wells Fargo & Co., 5.375%, 11/2/43 | 190,507 | ||||||
| 100,000 | Wells Fargo & Co., MTN, 5.013%, (SOFR plus 4.50%), 4/4/51(c) | 86,085 | ||||||
| 90,000 | Westpac Banking Corp., 2.963%, 11/16/40 | 57,469 | ||||||
| 2,070,209 | ||||||||
| Beverages — 3.1% | ||||||||
| 160,000 | Anheuser-Busch Cos., LLC/Anheuser-Busch InBev Worldwide, Inc., 4.700%, 2/1/36 | 144,411 | ||||||
| 300,000 | Anheuser-Busch Cos., LLC/Anheuser-Busch InBev Worldwide, Inc., 4.900%, 2/1/46 | 259,996 | ||||||
| 150,000 | Anheuser-Busch InBev Worldwide, Inc., 4.600%, 6/1/60 | 118,266 | ||||||
| 100,000 | Bacardi, Ltd., 5.300%, 5/15/48(a) | 85,000 | ||||||
| 165,000 | Coca-Cola Co. (The), 2.600%, 6/1/50 | 106,178 | ||||||
| 713,851 | ||||||||
| Capital Goods — 0.5% | ||||||||
| 70,000 | Caterpillar, Inc., 3.803%, 8/15/42 | 57,634 | ||||||
| 90,000 | Packaging Corp. of America, 3.050%, 10/1/51 | 56,964 | ||||||
| 114,598 | ||||||||
| Chemicals — 1.1% | ||||||||
| 80,000 | DuPont de Nemours, Inc., 5.319%, 11/15/38 | 72,541 | ||||||
| 100,000 | Ecolab, Inc., 2.750%, 8/18/55 | 61,859 | ||||||
| 90,000 | LYB International Finance III, LLC, 4.200%, 5/1/50 | 64,696 | ||||||
| 100,000 | Westlake Corp., 3.375%, 8/15/61 | 57,827 | ||||||
| 256,923 | ||||||||
| Commercial Services & Supplies — 1.1% | ||||||||
| 15,000 | Polar Tankers, Inc., 5.951%, 5/10/37(a) | 14,903 | ||||||
| 165,000 | Republic Services, Inc., 2.375%, 3/15/33 | 126,516 | ||||||
| 70,000 | Verisk Analytics, Inc., 3.625%, 5/15/50 | 47,720 | ||||||
| 90,000 | Waste Connections, Inc., 2.950%, 1/15/52 | 58,228 | ||||||
| 247,367 | ||||||||
| Construction Materials — 0.7% | ||||||||
| 80,000 | Carrier Global Corp., 3.577%, 4/5/50 | 55,406 | ||||||
| 70,000 | Martin Marietta Materials, Inc., 4.250%, 12/15/47 | 53,106 | ||||||
See accompanying Notes to the Financial Statements.
90
| Sterling Capital Long Duration Corporate Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Construction Materials — (continued) | ||||||||
| $ | 70,000 | Vulcan Materials Co., 4.500%, 6/15/47 | $ | 56,721 | ||||
| 165,233 | ||||||||
| Diversified Financial Services — 2.6% | ||||||||
| 150,000 | AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.850%, 10/29/41 | 99,653 | ||||||
| 70,000 | American Express Co., 4.050%, 12/3/42 | 56,776 | ||||||
| 60,000 | Blackstone Holdings Finance Co., LLC, 6.250%, 8/15/42(a) | 60,811 | ||||||
| 80,000 | Blue Owl Finance, LLC, 4.125%, 10/7/51(a) | 46,226 | ||||||
| 80,000 | Charles Schwab Corp. (The), Series H, 4.000%, (10-Year Treasury Constant Maturity plus 3.08%)(b)(d) | 58,765 | ||||||
| 75,000 | CSL Finance PLC, 4.750%, 4/27/52(a) | 64,530 | ||||||
| 110,000 | Intercontinental Exchange, Inc., 4.250%, 9/21/48 | 89,413 | ||||||
| 60,000 | Jefferies Group, LLC, 6.500%, 1/20/43 | 56,299 | ||||||
| 70,000 | Visa, Inc., 4.300%, 12/14/45 | 60,984 | ||||||
| 593,457 | ||||||||
| Diversified Telecommunication Services — 2.2% | ||||||||
| 100,000 | America Movil SAB de CV, 6.125%, 3/30/40 | 99,585 | ||||||
| 88,000 | AT&T, Inc., 2.550%, 12/1/33 | 65,114 | ||||||
| 100,000 | T-Mobile USA, Inc., 3.600%, 11/15/60 | 64,190 | ||||||
| 120,000 | T-Mobile USA, Inc., 4.375%, 4/15/40 | 97,732 | ||||||
| 50,000 | T-Mobile USA, Inc., 5.800%, 9/15/62 | 46,095 | ||||||
| 80,000 | Vodafone Group PLC, 4.250%, 9/17/50 | 57,261 | ||||||
| 80,000 | Vodafone Group PLC, 5.000%, 5/30/38 | 68,714 | ||||||
| 498,691 | ||||||||
| Electric Utilities — 12.5% | ||||||||
| 80,000 | AEP Transmission Co., LLC, Series M, 3.650%, 4/1/50 | 58,839 | ||||||
| 90,000 | Appalachian Power Co., Series L, 5.800%, 10/1/35 | 87,759 | ||||||
| 40,000 | Avista Corp., 4.000%, 4/1/52 | 31,238 | ||||||
| 75,000 | Berkshire Hathaway Energy Co., 4.600%, 5/1/53(a) | 63,157 | ||||||
| 70,000 | CenterPoint Energy Houston Electric, LLC, Series AC, 4.250%, 2/1/49 | 58,680 | ||||||
| 140,000 | CenterPoint Energy Houston Electric, LLC, Series AD, 2.900%, 7/1/50 | 92,229 | ||||||
| 90,000 | CMS Energy Corp., 3.750%, (5-Year Treasury Constant Maturity plus 2.90%), 12/1/50(b) | 66,150 | ||||||
| 70,000 | CMS Energy Corp., 4.700%, 3/31/43 | 56,451 | ||||||
| 60,000 | Commonwealth Edison Co., 5.900%, 3/15/36 | 61,486 | ||||||
| 70,000 | Connecticut Light & Power Co. (The), 4.000%, 4/1/48 | 57,082 | ||||||
| 120,000 | Consolidated Edison Co. of New York, Inc., 4.450%, 3/15/44 | 99,443 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Electric Utilities — (continued) | ||||||||
| $ | 60,000 | Dominion Energy South Carolina, Inc., 5.100%, 6/1/65 | $ | 53,999 | ||||
| 90,000 | Dominion Energy South Carolina, Inc., 5.300%, 5/15/33 | 89,452 | ||||||
| 90,000 | Dominion Energy, Inc., Series B, 3.300%, 4/15/41 | 64,910 | ||||||
| 80,000 | DTE Electric Co., 3.750%, 8/15/47 | 61,980 | ||||||
| 95,000 | DTE Electric Co., Series B, 3.650%, 3/1/52 | 71,741 | ||||||
| 80,000 | Duke Energy Carolinas, LLC, 6.100%, 6/1/37 | 78,962 | ||||||
| 60,000 | Duke Energy Florida, LLC, 6.350%, 9/15/37 | 62,116 | ||||||
| 150,000 | Duke Energy Indiana, LLC, 3.750%, 5/15/46 | 112,405 | ||||||
| 80,000 | Duke Energy Ohio, Inc., 3.700%, 6/15/46 | 59,541 | ||||||
| 90,000 | Duke Energy Progress, LLC, 2.900%, 8/15/51 | 58,432 | ||||||
| 130,000 | Entergy Texas, Inc., 3.550%, 9/30/49 | 91,418 | ||||||
| 70,000 | Exelon Corp., 4.450%, 4/15/46 | 57,145 | ||||||
| 70,000 | Exelon Corp., 5.100%, 6/15/45 | 62,350 | ||||||
| 80,000 | Florida Power & Light Co., 4.125%, 2/1/42 | 66,904 | ||||||
| 45,000 | Florida Power & Light Co., 5.850%, 5/1/37 | 45,198 | ||||||
| 70,000 | Massachusetts Electric Co., 5.900%, 11/15/39(a) | 67,643 | ||||||
| 90,000 | MidAmerican Energy Co., 2.700%, 8/1/52 | 56,533 | ||||||
| 70,000 | MidAmerican Energy Co., 4.800%, 9/15/43 | 62,925 | ||||||
| 40,000 | Northern States Power Co., 4.500%, 6/1/52 | 35,111 | ||||||
| 60,000 | Oncor Electric Delivery Co., LLC, 4.950%, 9/15/52(a) | 56,652 | ||||||
| 190,000 | PECO Energy Co., 2.850%, 9/15/51 | 122,357 | ||||||
| 100,000 | Public Service Electric & Gas Co., MTN, 5.375%, 11/1/39 | 93,384 | ||||||
| 90,000 | Puget Sound Energy, Inc., 2.893%, 9/15/51 | 57,427 | ||||||
| 60,000 | Puget Sound Energy, Inc., 5.638%, 4/15/41 | 58,241 | ||||||
| 115,000 | San Diego Gas & Electric Co., Series TTT, 4.100%, 6/15/49 | 91,273 | ||||||
| 55,000 | San Diego Gas & Electric Co., Series UUU, 3.320%, 4/15/50 | 38,169 | ||||||
| 130,000 | Sempra Energy, 3.800%, 2/1/38 | 101,397 | ||||||
| 80,000 | Southern Co. (The), 4.400%, 7/1/46 | 62,588 | ||||||
| 90,000 | Union Electric Co., 3.250%, 10/1/49 | 62,474 | ||||||
| 110,000 | Virginia Electric & Power Co., 4.000%, 1/15/43 | 86,348 | ||||||
| 110,000 | Xcel Energy, Inc., 3.500%, 12/1/49 | 76,810 | ||||||
| 2,898,399 | ||||||||
| Electrical Equipment — 0.8% | ||||||||
| 200,000 | GE Capital International Funding Co. Unlimited Co., 4.418%, 11/15/35 | 179,517 | ||||||
| Energy Equipment & Services — 5.8% | ||||||||
| 100,000 | Cheniere Corpus Christi Holdings, LLC, 2.742%, 12/31/39 | 72,067 | ||||||
| 75,000 | DCP Midstream Operating L.P., 5.600%, 4/1/44 | 67,625 | ||||||
Continued
91
| Sterling Capital Long Duration Corporate Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Energy Equipment & Services — (continued) | ||||||||
| $ | 75,000 | Eastern Gas Transmission & Storage, Inc., 4.800%, 11/1/43 | $ | 62,572 | ||||
| 145,000 | Energy Transfer L.P., 5.000%, 5/15/44 | 111,878 | ||||||
| 90,000 | Energy Transfer L.P., 5.350%, 5/15/45 | 72,397 | ||||||
| 80,000 | Energy Transfer L.P., 7.500%, 7/1/38 | 80,494 | ||||||
| 120,000 | Enterprise Products Operating, LLC, 3.300%, 2/15/53 | 78,081 | ||||||
| 110,000 | Enterprise Products Operating, LLC, 5.950%, 2/1/41 | 105,293 | ||||||
| 80,000 | Enterprise Products Operating, LLC, 6.125%, 10/15/39 | 78,193 | ||||||
| 70,000 | Kinder Morgan Energy Partners L.P., 5.625%, 9/1/41 | 59,936 | ||||||
| 90,000 | Kinder Morgan, Inc., 3.600%, 2/15/51 | 58,358 | ||||||
| 70,000 | Kinder Morgan, Inc., 5.550%, 6/1/45 | 61,019 | ||||||
| 70,000 | MPLX L.P., 5.200%, 12/1/47. | 56,685 | ||||||
| 100,000 | Plains All American Pipeline L.P./PAA Finance Corp., 4.700%, 6/15/44 | 71,657 | ||||||
| 80,000 | Spectra Energy Partners L.P., 4.500%, 3/15/45 | 63,627 | ||||||
| 75,000 | Targa Resources Corp., 6.250%, 7/1/52 | 68,142 | ||||||
| 64,000 | TransCanada PipeLines, Ltd., 4.625%, 3/1/34 | 56,024 | ||||||
| 70,000 | Williams Cos., Inc. (The), 5.100%, 9/15/45 | 59,280 | ||||||
| 70,000 | Williams Cos., Inc. (The), 6.300%, 4/15/40 | 68,148 | ||||||
| 1,351,476 | ||||||||
| Entertainment — 0.5% | ||||||||
| 37,000 | Mattel, Inc., 5.450%, 11/1/41 | 30,998 | ||||||
| 105,000 | Warnermedia Holdings, Inc., 5.050%, 3/15/42(a) | 78,576 | ||||||
| 109,574 | ||||||||
| Equity Real Estate Investment Trusts (REITS) — 2.4% | ||||||||
| 90,000 | Alexandria Real Estate Equities, Inc., 1.875%, 2/1/33 | 63,221 | ||||||
| 50,000 | Alexandria Real Estate Equities, Inc., 3.000%, 5/18/51 | 30,291 | ||||||
| 50,000 | American Homes 4 Rent L.P., 4.300%, 4/15/52 | 36,643 | ||||||
| 157,000 | American Tower Trust, 3.652%, 3/23/28(a) | 142,909 | ||||||
| 70,000 | Kimco Realty Corp., 4.250%, 4/1/45 | 52,501 | ||||||
| 30,000 | Mid-America Apartments L.P., 2.875%, 9/15/51 | 18,741 | ||||||
| 80,000 | National Retail Properties, Inc., 3.500%, 4/15/51 | 53,589 | ||||||
| 80,000 | Simon Property Group L.P., 3.250%, 9/13/49 | 51,835 | ||||||
| 80,000 | UDR, Inc., 3.100%, 11/1/34 | 60,709 | ||||||
| 50,000 | Weyerhaeuser Co., 3.375%, 3/9/33 | 40,475 | ||||||
| 550,914 | ||||||||
| Food & Staples Retailing — 1.5% | ||||||||
| 70,000 | Hershey Co. (The), 3.125%, 11/15/49 | 49,965 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Food & Staples Retailing — (continued) | ||||||||
| $ | 80,000 | Hormel Foods Corp., 3.050%, 6/3/51 | $ | 55,162 | ||||
| 96,000 | Kraft Heinz Foods Co., 4.875%, 10/1/49 | 79,133 | ||||||
| 60,000 | Kraft Heinz Foods Co., 6.875%, 1/26/39 | 61,817 | ||||||
| 150,000 | Nestle Holdings, Inc., 2.500%, 9/14/41(a) | 103,063 | ||||||
| 349,140 | ||||||||
| Health Care Providers & Services — 9.2% | ||||||||
| 60,000 | AbbVie, Inc., 4.050%, 11/21/39 | 48,399 | ||||||
| 150,000 | AbbVie, Inc., 4.250%, 11/21/49 | 120,433 | ||||||
| 60,000 | AbbVie, Inc., 4.400%, 11/6/42 | 49,755 | ||||||
| 60,000 | AbbVie, Inc., 4.450%, 5/14/46 | 48,768 | ||||||
| 140,000 | AbbVie, Inc., 4.500%, 5/14/35 | 124,617 | ||||||
| 70,000 | Aetna, Inc., 4.500%, 5/15/42 | 57,625 | ||||||
| 100,000 | Amgen, Inc., 2.770%, 9/1/53 | 58,266 | ||||||
| 165,000 | Amgen, Inc., 2.800%, 8/15/41 | 112,639 | ||||||
| 60,000 | Baxalta, Inc., 5.250%, 6/23/45 | 55,169 | ||||||
| 145,000 | Bristol-Myers Squibb Co., 2.350%, 11/13/40 | 96,789 | ||||||
| 150,000 | Bristol-Myers Squibb Co., 2.550%, 11/13/50 | 92,437 | ||||||
| 110,000 | Bristol-Myers Squibb Co., 4.250%, 10/26/49 | 92,001 | ||||||
| 70,000 | Cigna Corp., 4.800%, 8/15/38 | 62,156 | ||||||
| 95,000 | CVS Health Corp., 2.700%, 8/21/40 | 62,364 | ||||||
| 130,000 | CVS Health Corp., 4.250%, 4/1/50 | 101,605 | ||||||
| 100,000 | CVS Health Corp., 4.780%, 3/25/38 | 87,681 | ||||||
| 130,000 | CVS Health Corp., 5.125%, 7/20/45 | 113,823 | ||||||
| 110,000 | Elevance Health, Inc., 4.375%, 12/1/47 | 90,899 | ||||||
| 150,000 | HCA, Inc., 3.500%, 7/15/51 | 92,876 | ||||||
| 200,000 | Roche Holdings, Inc., 2.607%, 12/13/51(a) | 130,424 | ||||||
| 130,000 | UnitedHealth Group, Inc., 3.500%, 8/15/39 | 102,233 | ||||||
| 140,000 | UnitedHealth Group, Inc., 3.750%, 10/15/47 | 107,346 | ||||||
| 100,000 | Viatris, Inc., 3.850%, 6/22/40 | 62,240 | ||||||
| 55,000 | Viatris, Inc., 4.000%, 6/22/50 | 32,868 | ||||||
| 60,000 | Wyeth, LLC, 5.950%, 4/1/37 | 62,754 | ||||||
| 70,000 | Zoetis, Inc., 4.700%, 2/1/43 | 61,284 | ||||||
| 2,127,451 | ||||||||
| Insurance — 6.0% | ||||||||
| 83,000 | Athene Holding, Ltd., 3.950%, 5/25/51 | 55,289 | ||||||
| 55,000 | Berkshire Hathaway Finance Corp., 3.850%, 3/15/52 | 42,028 | ||||||
| 70,000 | Berkshire Hathaway Finance Corp., 4.200%, 8/15/48 | 58,064 | ||||||
| 80,000 | Brighthouse Financial, Inc., 4.700%, 6/22/47 | 56,655 | ||||||
| 60,000 | Carlyle Holdings II Finance, LLC, 5.625%, 3/30/43(a) | 51,754 | ||||||
| 80,000 | Chubb INA Holdings, Inc., 3.050%, 12/15/61 | 50,452 | ||||||
| 34,000 | Corebridge Financial, Inc., 4.400%, 4/5/52(a) | 25,846 | ||||||
Continued
92
| Sterling Capital Long Duration Corporate Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Insurance — (continued) | ||||||||
| $ | 80,000 | Enstar Finance, LLC, 5.500%, (5-Year Treasury Constant Maturity plus 4.01%), 1/15/42(b) | $ | 64,927 | ||||
| 47,000 | Enstar Group, Ltd., 3.100%, 9/1/31 | 33,363 | ||||||
| 90,000 | Fidelity National Financial, Inc., 3.200%, 9/17/51 | 51,695 | ||||||
| 80,000 | Global Atlantic Fin Co., 4.700%, (5-Year Treasury Constant Maturity plus 3.80%), 10/15/51(a)(b) | 60,182 | ||||||
| 70,000 | Guardian Life Insurance Co. of America (The), 4.875%, 6/19/64(a) | 58,658 | ||||||
| 70,000 | KKR Group Finance Co. III, LLC, 5.125%, 6/1/44(a) | 60,525 | ||||||
| 80,000 | Liberty Mutual Group, Inc., 3.950%, 5/15/60(a) | 50,538 | ||||||
| 100,000 | Nationwide Mutual Insurance Co., 4.350%, 4/30/50(a) | 74,404 | ||||||
| 70,000 | New York Life Insurance Co., 4.450%, 5/15/69(a) | 54,839 | ||||||
| 60,000 | New York Life Insurance Co., 6.750%, 11/15/39(a) | 65,242 | ||||||
| 80,000 | Northwestern Mutual Life Insurance Co. (The), 3.450%, 3/30/51(a) | 54,984 | ||||||
| 80,000 | Pacific LifeCorp, 3.350%, 9/15/50(a) | 53,901 | ||||||
| 70,000 | Progressive Corp. (The), 3.950%, 3/26/50 | 55,539 | ||||||
| 80,000 | Prudential Financial, Inc., 3.700%, (5-Year Treasury Constant Maturity plus 3.04%), 10/1/50(b) | 63,184 | ||||||
| 36,000 | SBL Holdings, Inc., 5.000%, 2/18/31(a) | 27,488 | ||||||
| 70,000 | Securian Financial Group, Inc., 4.800%, 4/15/48(a) | 55,319 | ||||||
| 80,000 | Travelers Cos., Inc. (The), 3.050%, 6/8/51 | 55,200 | ||||||
| 70,000 | Voya Financial, Inc., 4.800%, 6/15/46 | 57,225 | ||||||
| 90,000 | W R Berkley Corp., 3.150%, 9/30/61 | 53,624 | ||||||
| 1,390,925 | ||||||||
| Internet & Direct Marketing Retail — 1.2% | ||||||||
| 175,000 | Amazon.com, Inc., 2.500%, 6/3/50 | 109,277 | ||||||
| 150,000 | Amazon.com, Inc., 2.700%, 6/3/60 | 88,494 | ||||||
| 90,000 | Amazon.com, Inc., 4.800%, 12/5/34 | 88,642 | ||||||
| 286,413 | ||||||||
| Internet Media & Services — 0.3% | ||||||||
| 85,000 | Meta Platforms, Inc., 4.450%, 8/15/52(a) | 69,377 | ||||||
| IT Services — 0.2% | ||||||||
| 70,000 | Fiserv, Inc., 4.400%, 7/1/49 | 54,299 | ||||||
| Machinery — 0.3% | ||||||||
| 80,000 | Deere & Co., 3.900%, 6/9/42 | 68,723 | ||||||
| Media — 6.3% | ||||||||
| 110,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital, 3.950%, 6/30/62 | 65,239 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Media — (continued) | ||||||||
| $ | 190,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital, 4.400%, 12/1/61 | $ | 121,061 | ||||
| 140,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital, 6.484%, 10/23/45 | 123,049 | ||||||
| 41,000 | Comcast Corp., 1.950%, 1/15/31 | 31,854 | ||||||
| 130,000 | Comcast Corp., 2.800%, 1/15/51 | 79,148 | ||||||
| 170,000 | Comcast Corp., 2.987%, 11/1/63 | 98,481 | ||||||
| 110,000 | Comcast Corp., 3.250%, 11/1/39 | 80,796 | ||||||
| 100,000 | �� | Comcast Corp., 3.400%, 7/15/46 | 70,416 | |||||
| 110,000 | Comcast Corp., 4.200%, 8/15/34 | 96,301 | ||||||
| 80,000 | Comcast Corp., 4.600%, 10/15/38 | 70,401 | ||||||
| 90,000 | Discovery Communications, LLC, 4.000%, 9/15/55 | 53,063 | ||||||
| 80,000 | Discovery Communications, LLC, 5.200%, 9/20/47 | 59,050 | ||||||
| 90,000 | Interpublic Group of Cos., Inc. (The), 3.375%, 3/1/41 | 59,542 | ||||||
| 43,000 | Paramount Global, 4.950%, 5/19/50. | 30,562 | ||||||
| 70,000 | Time Warner Cable, LLC, 5.875%, 11/15/40 | 57,632 | ||||||
| 130,000 | Time Warner Cable, LLC, 6.550%, 5/1/37 | 117,299 | ||||||
| 100,000 | Walt Disney Co. (The), 2.750%, 9/1/49 | 63,412 | ||||||
| 130,000 | Walt Disney Co. (The), 3.500%, 5/13/40 | 101,210 | ||||||
| 70,000 | Walt Disney Co. (The), 6.200%, 12/15/34 | 73,466 | ||||||
| 1,451,982 | ||||||||
| Metals & Mining — 1.3% | ||||||||
| 80,000 | Newmont Corp., 4.875%, 3/15/42 | 68,984 | ||||||
| 100,000 | Nucor Corp., 2.979%, 12/15/55 | 59,121 | ||||||
| 100,000 | Southern Copper Corp., 7.500%, 7/27/35 | 108,250 | ||||||
| 62,000 | Teck Resources, Ltd., 6.000%, 8/15/40 | 54,688 | ||||||
| 291,043 | ||||||||
| Multiline Retail — 0.3% | ||||||||
| 100,000 | Walmart, Inc., 2.500%, 9/22/41 | 69,703 | ||||||
| Oil, Gas & Consumable Fuels — 4.5% | ||||||||
| 80,000 | Atmos Energy Corp., 4.125%, 10/15/44 | 64,729 | ||||||
| 125,000 | BP Capital Markets America, Inc., 3.060%, 6/17/41 | 89,141 | ||||||
| 75,000 | ConocoPhillips Co., 4.025%, 3/15/62(a) | 56,676 | ||||||
| 61,000 | Devon Energy Corp., 5.600%, 7/15/41 | 54,631 | ||||||
| 45,000 | Diamondback Energy, Inc., 4.250%, 3/15/52 | 32,856 | ||||||
| 70,000 | Equinor ASA, 5.100%, 8/17/40 | 66,643 | ||||||
| 70,000 | Exxon Mobil Corp., 4.114%, 3/1/46 | 57,832 | ||||||
| 92,000 | Exxon Mobil Corp., 4.227%, 3/19/40 | 79,889 | ||||||
| 70,000 | Halliburton Co., 5.000%, 11/15/45 | 58,136 | ||||||
| 60,000 | Halliburton Co., 7.450%, 9/15/39 | 64,169 | ||||||
| 70,000 | Hess Corp., 5.600%, 2/15/41 | 61,228 | ||||||
| 60,000 | Marathon Petroleum Corp., 6.500%, 3/1/41 | 59,394 | ||||||
| 70,000 | NiSource, Inc., 4.800%, 2/15/44 | 58,327 | ||||||
Continued
93
| Sterling Capital Long Duration Corporate Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Oil, Gas & Consumable Fuels — (continued) | ||||||||
| $ | 140,000 | Shell International Finance BV, 4.550%, 8/12/43 | $ | 121,333 | ||||
| 180,000 | Southern Co. Gas Capital Corp., Series 21A, 3.150%, 9/30/51 | 112,935 | ||||||
| 1,037,919 | ||||||||
| Road & Rail — 3.3% | ||||||||
| 110,000 | Burlington Northern Santa Fe, LLC, 4.900%, 4/1/44 | 100,488 | ||||||
| 70,000 | Burlington Northern Santa Fe, LLC, 4.950%, 9/15/41 | 64,814 | ||||||
| 70,000 | CSX Corp., 6.000%, 10/1/36. | 71,139 | ||||||
| 90,000 | FedEx Corp., 4.550%, 4/1/46 | 71,212 | ||||||
| 100,000 | Kansas City Southern/Old, 3.500%, 5/1/50 | 69,734 | ||||||
| 50,000 | Norfolk Southern Corp., 3.400%, 11/1/49 | 34,987 | ||||||
| 50,000 | Norfolk Southern Corp., 3.700%, 3/15/53 | 36,242 | ||||||
| 70,000 | Norfolk Southern Corp., 3.950%, 10/1/42 | 55,046 | ||||||
| 170,000 | Union Pacific Corp., 2.950%, 3/10/52 | 112,048 | ||||||
| 30,000 | Union Pacific Corp., 3.375%, 2/14/42 | 22,788 | ||||||
| 80,000 | Union Pacific Corp., 3.600%, 9/15/37 | 64,770 | ||||||
| 70,000 | United Parcel Service, Inc., 5.300%, 4/1/50 | 69,973 | ||||||
| 773,241 | ||||||||
| Semiconductors & Semiconductor Equipment — 1.8% | ||||||||
| 140,000 | Broadcom, Inc., 3.469%, 4/15/34(a) | 104,979 | ||||||
| 80,000 | Broadcom, Inc., 3.500%, 2/15/41(a) | 53,990 | ||||||
| 90,000 | Lam Research Corp., 2.875%, 6/15/50 | 58,691 | ||||||
| 70,000 | QUALCOMM, Inc., 4.300%, 5/20/47 | 59,356 | ||||||
| 200,000 | TSMC Arizona Corp., 3.250%, 10/25/51 | 142,584 | ||||||
| 419,600 | ||||||||
| Software — 4.2% | ||||||||
| 110,000 | Apple, Inc., 2.800%, 2/8/61 | 68,493 | ||||||
| 110,000 | Apple, Inc., 3.850%, 5/4/43 | 92,625 | ||||||
| 80,000 | Apple, Inc., 3.850%, 8/4/46 | 66,178 | ||||||
| 75,000 | Apple, Inc., 3.950%, 8/8/52 | 62,640 | ||||||
| 270,000 | Dell International, LLC/EMC Corp., 3.450%, 12/15/51(a) | 153,504 | ||||||
| 60,000 | Hewlett Packard Enterprise Co., 6.350%, 10/15/45 | 54,483 | ||||||
| 90,000 | Microsoft Corp., 2.525%, 6/1/50 | 58,811 | ||||||
| 180,000 | Microsoft Corp., 2.675%, 6/1/60 | 113,207 | ||||||
| 90,000 | Oracle Corp., 3.650%, 3/25/41 | 61,157 | ||||||
| 90,000 | Oracle Corp., 3.850%, 4/1/60 | 54,398 | ||||||
| 90,000 | Oracle Corp., 3.950%, 3/25/51 | 59,697 | ||||||
| 110,000 | Oracle Corp., 4.000%, 7/15/46 | 74,350 | ||||||
| 90,000 | Salesforce, Inc., 2.700%, 7/15/41 | 61,968 | ||||||
| 981,511 | ||||||||
| Specialty Retail — 2.0% | ||||||||
| 80,000 | ERAC USA Finance, LLC, 5.625%, 3/15/42(a) | 72,365 | ||||||
| 200,000 | Home Depot, Inc. (The), 2.750%, 9/15/51 | 127,190 | ||||||
| 100,000 | Home Depot, Inc. (The), 3.125%, 12/15/49 | 68,791 | ||||||
| 80,000 | Lowe's Cos., Inc., 5.000%, 4/15/40 | 70,950 | ||||||
| Principal Amount | Fair Value | |||||||
| CORPORATE BONDS — (continued) | ||||||||
| Specialty Retail — (continued) | ||||||||
| $ | 80,000 | McDonald's Corp., MTN, 4.875%, 12/9/45 | $ | 70,771 | ||||
| 90,000 | Starbucks Corp., 3.500%, 11/15/50 | 62,919 | ||||||
| 472,986 | ||||||||
| Telecommunication Services — 4.5% | ||||||||
| 120,000 | AT&T, Inc., 3.500%, 6/1/41 | 86,447 | ||||||
| 100,000 | AT&T, Inc., 3.550%, 9/15/55 | 65,590 | ||||||
| 240,000 | AT&T, Inc., 3.650%, 9/15/59 | 155,521 | ||||||
| 155,000 | AT&T, Inc., 3.850%, 6/1/60 | 103,869 | ||||||
| 210,000 | AT&T, Inc., 4.500%, 5/15/35 | 181,529 | ||||||
| 150,000 | Deutsche Telekom AG, 3.625%, 1/21/50(a) | 103,328 | ||||||
| 100,000 | Verizon Communications, Inc., 2.650%, 11/20/40 | 65,186 | ||||||
| 140,000 | Verizon Communications, Inc., 3.400%, 3/22/41 | 102,237 | ||||||
| 90,000 | Verizon Communications, Inc., 3.550%, 3/22/51 | 63,294 | ||||||
| 120,000 | Verizon Communications, Inc., 4.400%, 11/1/34 | 105,558 | ||||||
| 1,032,559 | ||||||||
| Tobacco — 1.6% | ||||||||
| 80,000 | Altria Group, Inc., 3.875%, 9/16/46 | 50,590 | ||||||
| 160,000 | BAT Capital Corp., 4.390%, 8/15/37 | 114,075 | ||||||
| 70,000 | Cargill, Inc., 4.375%, 4/22/52(a) | 60,194 | ||||||
| 70,000 | Cargill, Inc., 4.760%, 11/23/45(a) | 62,064 | ||||||
| 110,000 | Philip Morris International, Inc., 4.375%, 11/15/41 | 80,053 | ||||||
| 366,976 | ||||||||
| Total Corporate Bonds | ||||||||
| (Cost $30,143,838) | 21,988,229 | |||||||
| U.S. GOVERNMENT AGENCIES — 0.3% | ||||||||
| Tennessee Valley Authority — 0.3% | ||||||||
| 70,000 | 4.250%, 9/15/52. | 63,193 | ||||||
| Total U.S. Government Agencies | ||||||||
| (Cost $67,752) | 63,193 | |||||||
| U.S. TREASURY BONDS — 2.4% | ||||||||
| 296,100 | 2.000%, 11/15/41 | 211,966 | ||||||
| 507,200 | 2.000%, 8/15/51 | 346,481 | ||||||
| Total U.S. Treasury Bonds | ||||||||
| (Cost $631,341) | 558,447 | |||||||
Continued
94
| Sterling Capital Long Duration Corporate Bond Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Shares | Fair Value | ||||||
| MONEY MARKET FUND — 0.7% | |||||||
| 160,153 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(e) | $ | 160,153 | ||||
| Total Money Market Fund | |||||||
| (Cost $160,153) | 160,153 | ||||||
| Total Investments — 98.6% | |||||||
| (Cost $31,003,084) | 22,770,022 | ||||||
| Net Other Assets (Liabilities) — 1.4% | 317,348 | ||||||
| NET ASSETS — 100.0% | $ | 23,087,370 | |||||
| (a) | Rule 144A, Section 4(2) or other security that is restricted as to resale to qualified institutional investors. The Advisor, using Board approved procedures, has deemed these securities or a portion of these securities to be liquid. |
| (b) | The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of September 30, 2022. The maturity date reflected is the final maturity date. |
| (c) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Rate shown is the fixed rate. |
| (d) | Security is perpetual in nature and has no stated maturity date. |
| (e) | Represents the current yield as of report date. |
| MTN | Medium Term Note |
Continued
95
| Sterling Capital Quality Income Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — 20.3% | ||||||||
| $ | 31,100 | Aegis Asset Backed Securities Trust, Series 2005-5, Class 1A4, 3.784%, (LIBOR USD 1-Month plus 0.70%), 12/25/35(a) (b) | $ | 31,065 | ||||
| 33,702 | AmeriCredit Automobile Receivables Trust, Series 2019-2, Class B, 2.540%, 7/18/24 | 33,682 | ||||||
| 407,000 | AmeriCredit Automobile Receivables Trust, Series 2019-2, Class C, 2.740%, 4/18/25 | 403,410 | ||||||
| 297,000 | AmeriCredit Automobile Receivables Trust, Series 2020-3, Class B, 0.760%, 12/18/25 | 285,786 | ||||||
| 405,000 | AmeriCredit Automobile Receivables Trust, Series 2021-2, Class B, 0.690%, 1/19/27 | 380,339 | ||||||
| 450,000 | ARI Fleet Lease Trust, Series 2020-A, Class A3, 1.800%, 8/15/28(c) | 446,448 | ||||||
| 170,000 | ARI Fleet Lease Trust, Series 2021-A, Class A3, 0.680%, 3/15/30(c) | 158,031 | ||||||
| 470,000 | ARI Fleet Lease Trust, Series 2022-A, Class A3, 3.430%, 1/15/31(c) | 450,423 | ||||||
| 285,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2019-2A, Class A, 3.350%, 9/22/25(c) | 273,918 | ||||||
| 200,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2019-3A, Class A, 2.360%, 3/20/26(c) | 187,297 | ||||||
| 850,000 | Avis Budget Rental Car Funding AESOP, LLC, Series 2021-1A, Class A, 1.380%, 8/20/27(c) | 727,385 | ||||||
| 550,000 | Carvana Auto Receivables Trust, Series 2021-P1, Class A4, 0.860%, 1/11/27 | 510,971 | ||||||
| 509,000 | Carvana Auto Receivables Trust, Series 2021-P2, Class B, 1.270%, 3/10/27 | 448,592 | ||||||
| 600,000 | Carvana Auto Receivables Trust, Series 2021-P3, Class B, 1.420%, 8/10/27 | 512,795 | ||||||
| 5,099 | Chesapeake Funding II, LLC, Series 2018-3A, Class A1, 3.390%, 1/15/31(c) | 5,099 | ||||||
| 219,735 | Chesapeake Funding II, LLC, Series 2020-1A, Class A1, 0.870%, 8/15/32(c) | 217,274 | ||||||
| 329,869 | Chesapeake Funding II, LLC, Series 2021-1A, Class A1, 0.470%, 4/15/33(c) | 323,131 | ||||||
| 620,000 | Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3, 6.150%, 6/15/39(b) | 680,469 | ||||||
| 547 | Citicorp Residential Mortgage Trust, STEP, Series 2007-2, Class A6, 4.757%, 6/25/37 | 542 | ||||||
| 500,000 | Enterprise Fleet Financing, LLC, Series 2019-2, Class A3, 2.380%, 2/20/25(c) | 498,126 | ||||||
| 554,079 | Enterprise Fleet Financing, LLC, Series 2020-2, Class A2, 0.610%, 7/20/26(c) | 538,678 | ||||||
| 300,000 | Enterprise Fleet Financing, LLC, Series 2021-2, Class A3, 0.740%, 5/20/27(c) | 268,340 | ||||||
| 410,000 | Enterprise Fleet Financing, LLC, Series 2021-3, Class A3, 1.220%, 8/20/27(c) | 367,446 | ||||||
| Principal Amount | Fair Value | |||||||
| ASSET BACKED SECURITIES — (continued) | ||||||||
| $ | 375,000 | Enterprise Fleet Funding, LLC, Series 2021-1, Class A3, 0.700%, 12/21/26(c) | $ | 344,195 | ||||
| 411,969 | Fifth Third Auto Trust, Series 2019-1, Class A4, 2.690%, 11/16/26 | 410,871 | ||||||
| 642,000 | Ford Credit Auto Owner Trust 2020-REV2, Series 2020-2, Class A, 1.060%, 4/15/33(b)(c) | 568,672 | ||||||
| 415,000 | Ford Credit Auto Owner Trust 2021-REV2, Series 2021-2, Class A, 1.530%, 5/15/34(c) | 360,842 | ||||||
| 360,000 | GreatAmerica Leasing Receivables Funding, LLC, Series 2021-1, Class A3, 0.340%, 8/15/24(c) | 348,127 | ||||||
| 205,000 | GreatAmerica Leasing Receivables Funding, LLC, Series 2021-1, Class A4, 0.550%, 12/15/26(c) | 188,328 | ||||||
| 1,295,000 | Hertz Vehicle Financing III L.P., Series 2021-2A, Class A, 1.680%, 12/27/27(c) | 1,107,852 | ||||||
| 750,000 | OneMain Direct Auto Receivables Trust 2021-1, Series 2021-1A, Class A, 0.870%, 7/14/28(c) | 693,912 | ||||||
| 321,813 | OneMain Financial Issuance Trust, Series 2020-1A, Class A, 3.840%, 5/14/32(c) | 319,862 | ||||||
| 630,000 | OneMain Financial Issuance Trust 2019-2, Series 2019-2A, Class A, 3.140%, 10/14/36(b)(c) | 560,140 | ||||||
| 480,000 | �� | OneMain Financial Issuance Trust 2021-1, Series 2021-1A, Class A1, 1.550%, 6/16/36(b)(c) | 400,225 | |||||
| 700,606 | Santander Drive Auto Receivables Trust, Series 2020-3, Class C, 1.120%, 1/15/26 | 695,511 | ||||||
| 160,061 | Saxon Asset Securities Trust, Series 2004-3, Class M1, 3.984%, (LIBOR USD 1-Month plus 0.90%), 12/26/34(a) | 155,928 | ||||||
| 366,274 | SoFi Professional Loan Program Trust, Series 2020-A, Class A2FX, 2.540%, 5/15/46(b)(c) | 341,582 | ||||||
| 500,000 | Toyota Auto Loan Extended Note Trust 2021-1, Series 2021-1A, Class A, 1.070%, 2/27/34(b)(c) | 440,621 | ||||||
| 1,000,000 | Toyota Auto Loan Extended Note Trust 2022-1, Series 2022-1A, Class A, 3.820%, 4/25/35(c) | 958,969 | ||||||
| 57,645 | U.S. Small Business Administration, Series 2010-20D, Class 1, 4.360%, 4/1/30(b) | 55,618 | ||||||
| 215,000 | Wheels SPV 2, LLC, Series 2020-1A, Class A3, 0.620%, 8/20/29(c) | 204,458 | ||||||
| Total Asset Backed Securities | ||||||||
| (Cost $17,160,958) | 15,904,960 | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — 16.6% | ||||||||
| 386,439 | Chase Home Lending Mortgage Trust, Series 2019-ATR2, Class A3, 3.500%, 7/25/49(c)(d) | 347,956 | ||||||
See accompanying Notes to the Financial Statements.
96
| Sterling Capital Quality Income Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) | ||||||||
| $ | 26,179 | Citicorp Mortgage Securities, Inc., Series 2005-1, Class 1A4, 5.500%, 2/25/35 | $ | 25,130 | ||||
| 9,325 | Citigroup Mortgage Loan Trust, Inc., Series 2004-NCM2, Class 3CB2, 6.500%, 8/25/19 | 9,267 | ||||||
| 32,329 | Countrywide Home Loan Mortgage Pass-Through Trust, Series 2004-3, Class A4, 5.750%, 4/25/34 | 30,179 | ||||||
| 59,837 | Credit Suisse First Boston Mortgage-Backed Pass-Through Certificates, Series 2004-1, Class 2A1, 6.500%, 2/25/34 | 58,363 | ||||||
| 44,745 | Fannie Mae, Series 2003-19, Class AR, 5.500%, 3/25/33 | 45,187 | ||||||
| 192,600 | Fannie Mae, Series 2003-21, Class OW, 4.000%, 3/25/33 | 185,051 | ||||||
| 682,000 | Fannie Mae, Series 2008-2, Class PH, 5.500%, 2/25/38 | 704,330 | ||||||
| 527,000 | Fannie Mae, Series 2009-28, Class HX, 5.000%, 5/25/39 | 534,676 | ||||||
| 825,833 | Fannie Mae, Series 2010-150, Class YL, 4.000%, 1/25/41 | 768,797 | ||||||
| 380,000 | Fannie Mae, Series 2011-131, Class PB, 4.500%, 12/25/41 | 374,458 | ||||||
| 208,331 | Fannie Mae, Series 2011-74, Class QM, 4.500%, 11/25/40 | 207,284 | ||||||
| 1,014,000 | Fannie Mae, Series 2013-30, Class PY, 3.000%, 4/25/43 | 959,035 | ||||||
| 469,341 | Fannie Mae, Series 2013-91, Class DV, 3.000%, 10/25/26 | 455,222 | ||||||
| 149,077 | Fannie Mae, Series 2016-85, Class GA, 2.500%, 10/25/45 | 134,511 | ||||||
| 115,304 | Fannie Mae, Series 2017-26, Class CD, 3.500%, 1/25/43 | 115,045 | ||||||
| 870,000 | Fannie Mae, Series 2017-42, Class HL, 3.000%, 6/25/47 | 780,666 | ||||||
| 353,531 | Fannie Mae, Series 2020-10, Class Q, 3.000%, 3/25/50 | 315,801 | ||||||
| 77,658 | Freddie Mac, Series 2485, Class WG, 6.000%, 8/15/32 | 79,791 | ||||||
| 142,972 | Freddie Mac, Series 2768, Class PC, 4.000%, 3/15/34 | 138,287 | ||||||
| 108,716 | Freddie Mac, Series 3042, Class PZ, 5.750%, 9/15/35 | 116,230 | ||||||
| 104,671 | Freddie Mac, Series 3440, Class EM, 5.000%, 4/15/38 | 104,878 | ||||||
| 500,000 | Freddie Mac, Series 3714, Class PB, 4.750%, 8/15/40(b) | 505,870 | ||||||
| 13,821 | Freddie Mac, Series 3803, Class PJ, 4.250%, 1/15/41 | 13,793 | ||||||
| 200,000 | Freddie Mac, Series 3815, Class TB, 4.500%, 2/15/41 | 193,112 | ||||||
| 141,576 | Freddie Mac, Series 3816, Class HM, 4.500%, 5/15/40 | 139,134 | ||||||
| Principal Amount | Fair Value | |||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS — (continued) | ||||||||
| $ | 348,203 | Freddie Mac, Series 3989, Class JW, 3.500%, 1/15/42(b) | $ | 323,375 | ||||
| 338,000 | Freddie Mac, Series 4088, Class CD, 3.000%, 8/15/42 | 277,780 | ||||||
| 300,000 | Freddie Mac, Series 4094, Class ME, 2.500%, 8/15/42 | 256,663 | ||||||
| 215,000 | Freddie Mac, Series 4097, Class CU, 1.500%, 8/15/27 | 190,522 | ||||||
| 628,000 | Freddie Mac, Series 4135, Class AY, 2.000%, 11/15/42 | 484,207 | ||||||
| 451,234 | Freddie Mac, Series 4136, Class HZ, 3.500%, 11/15/27 | 423,117 | ||||||
| 119,000 | Freddie Mac, Series 4160, Class HH, 2.500%, 12/15/32(b) | 107,133 | ||||||
| 138,971 | Freddie Mac, Series 4173, Class NB, 3.000%, 3/15/43 | 126,984 | ||||||
| 105,753 | Freddie Mac, Series 4215, Class LD, 2.000%, 7/15/41 | 99,012 | ||||||
| 40,903 | Freddie Mac, Series 4293, Class MH, 3.000%, 12/15/41 | 38,708 | ||||||
| 1,000,000 | Freddie Mac, Series 4507, Class GB, 3.000%, 9/15/45 | 857,754 | ||||||
| 141,085 | Freddie Mac, Series 4650, Class BC, 3.500%, 5/15/43(b) | 140,754 | ||||||
| 415,653 | Freddie Mac, Series 5115, Class G, 2.500%, 9/25/50 | 362,883 | ||||||
| 262,961 | Freddie Mac Strips, Series 219, Class PO, 3/1/32 | 227,311 | ||||||
| 58,446 | Ginnie Mae, Series 2004-69, Class GC, 5.500%, 4/20/34 | 59,650 | ||||||
| 1,908 | Ginnie Mae, Series 2010-85, Class DQ, 3.000%, 12/20/39 | 1,903 | ||||||
| 612,000 | Ginnie Mae, Series 2017-75, Class DL, 3.000%, 3/20/47 | 522,967 | ||||||
| 800,000 | Ginnie Mae, Series 2019-6, Class JK, 3.500%, 1/20/49 | 722,354 | ||||||
| 314,693 | JP Morgan Mortgage Trust, Series 2017-5, Class A1B, 3.124%, 10/26/48(c)(d) | 302,936 | ||||||
| 144,211 | MASTR Alternative Loan Trust, Series 2003-5, Class 8A1, 5.500%, 6/25/33(b) | 131,003 | ||||||
| 21,163 | MASTR Alternative Loan Trust, Series 2004-13, Class 3A1, 6.500%, 1/25/35(b) | 15,840 | ||||||
| Total Collateralized Mortgage Obligations | ||||||||
| (Cost $14,474,284) | 13,014,909 | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — 25.4% | ||||||||
| 250,000 | BANK 2020-BNK29, Series 2020-BN29, Class A4, 1.997%, 11/15/53 | 196,007 | ||||||
| 325,000 | BBCMS Mortgage Trust, Series 2020-C7, Class A5, 2.037%, 4/15/53 | 260,873 | ||||||
| 589,492 | Benchmark Mortgage Trust, Series 2020-B18, Class A5, 1.925%, 7/15/53 | 466,039 | ||||||
Continued
97
| Sterling Capital Quality Income Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 1,250,000 | Benchmark Mortgage Trust, Series 2020- B21, Class A5, 1.978%, 12/17/53(b) | $ | 980,628 | ||||
| 270,000 | BX 2021-LBA3 Mortgage Trust, Series 2021-PAC, Class C, 3.917%, (LIBOR USD 1-Month plus 1.10%), 10/15/36(a) (c) | 250,476 | ||||||
| 269,000 | BX Commercial Mortgage Trust, Series 2021-21M, Class C, 3.995%, (LIBOR USD 1-Month plus 1.18%), 10/15/36(a) (c) | 253,915 | ||||||
| 277,000 | BX Commercial Mortgage Trust, Series 2021-ACNT, Class C, 4.318%, (LIBOR USD 1-Month plus 1.50%), 11/15/38(a) (c) | 261,733 | ||||||
| 313,000 | BX Commercial Mortgage Trust, Series 2021-CIP, Class C, 4.289%, (LIBOR USD 1-Month plus 1.47%), 12/15/38(a) (c) | 293,398 | ||||||
| 213,763 | BX Commercial Mortgage Trust, Series 2021-XL2, Class C, 4.015%, (LIBOR USD 1-Month plus 1.20%), 10/15/38(a) (c) | 201,445 | ||||||
| 342,714 | BX Commercial Mortgage Trust, Series 2022-LP2, Class B, 4.234%, (TSFR1M plus 1.31%), 2/15/39(a)(c) | 325,593 | ||||||
| 275,000 | BX Trust, Series 2021-RISE, Class C, 4.268%, (LIBOR USD 1-Month plus 1.45%), 11/15/36(a)(c) | 257,871 | ||||||
| 589,000 | CD Mortgage Trust, Series 2016-CD2, Class A4, 3.526%, 11/10/49(b)(d) | 548,672 | ||||||
| 700,000 | CD Mortgage Trust, Series 2017-CD3, Class A4, 3.631%, 2/10/50 | 652,295 | ||||||
| 100,000 | CFCRE Commercial Mortgage Trust, Series 2016-C7, Class A3, 3.839%, 12/10/54 | 94,217 | ||||||
| 365,000 | Citigroup Commercial Mortgage Trust, Series 2013-GC15, Class A4, 4.371%, 9/10/46(d) | 362,358 | ||||||
| 405,000 | Citigroup Commercial Mortgage Trust, Series 2013-GC17, Class AS, 4.544%, 11/10/46(b) | 398,055 | ||||||
| 500,000 | Citigroup Commercial Mortgage Trust, Series 2015-GC33, Class A4, 3.778%, 9/10/58 | 478,117 | ||||||
| 71,471 | COMM 2012-CCRE3 Mortgage Trust, Series 2012-CR3, Class A3, 2.822%, 10/15/45 | 71,322 | ||||||
| 75,000 | COMM 2013-CCRE11 Mortgage Trust, Series 2013-CR11, Class A4, 4.258%, 8/10/50 | 74,544 | ||||||
| 75,000 | COMM 2013-CCRE13 Mortgage Trust, Series 2013-CR13, Class A4, 4.194%, 11/10/46(d) | 74,032 | ||||||
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 350,000 | COMM 2014-CCRE15 Mortgage Trust, Series 2014-CR15, Class A4, 4.074%, 2/10/47(d) | $ | 344,681 | ||||
| 500,000 | COMM 2014-CCRE18 Mortgage Trust, Series 2014-CR18, Class A5, 3.828%, 7/15/47(b) | 487,582 | ||||||
| 221,115 | COMM 2015-CCRE23 Mortgage Trust, Series 2015-CR23, Class A2, 2.852%, 5/10/4 | 220,870 | ||||||
| 266,000 | COMM Mortgage Trust, Series 2014-CR20, Class A4, 3.590%, 11/10/47 | 257,294 | ||||||
| 153,000 | COMM Mortgage Trust, Series 2014-UBS2, Class A5, 3.961%, 3/10/47 | 150,097 | ||||||
| 455,000 | COMM Mortgage Trust, Series 2014-UBS4, Class A5, 3.694%, 8/10/47 | 441,592 | ||||||
| 250,000 | COMM Mortgage Trust, Series 2017-COR2, Class A3, 3.510%, 9/10/50(b) | 230,137 | ||||||
| 500,000 | CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A4, 3.718%, 8/15/48(b) | 476,743 | ||||||
| 251,000 | ELP Commercial Mortgage Trust, Series 2021-ELP, Class C, 4.138%, (LIBOR USD 1-Month plus 1.32%), 11/15/38(a) (c) | 237,166 | ||||||
| 1,000,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K1522, Class A2, 2.361%, 10/25/36 | 756,360 | ||||||
| 140,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Series K159, Class A2, 3.950%, 11/25/30(d) | 135,154 | ||||||
| 287,317 | FRESB Mortgage Trust, Series 2017-SB36, Class A10F, 2.880%, 7/25/27(b)(d) | 262,641 | ||||||
| 748,653 | Ginnie Mae, Series 2014-126, Class A, 2.500%, 11/16/46 | 716,161 | ||||||
| 413,607 | Ginnie Mae, Series 2019-79, Class V, 2.800%, 3/16/29 | 384,148 | ||||||
| 27,440 | GS Mortgage Securities Trust, Series 2010-C1, Class B, 5.148%, 8/10/43(c). | 27,045 | ||||||
| 300,000 | GS Mortgage Securities Trust, Series 2013-GC14, Class A5, 4.243%, 8/10/46 | 297,966 | ||||||
| 85,000 | GS Mortgage Securities Trust, Series 2014-GC24, Class A5, 3.931%, 9/10/47 | 82,570 | ||||||
| 500,000 | GS Mortgage Securities Trust, Series 2016-GS4, Class A4, 3.442%, 11/10/49(b)(d) | 465,100 | ||||||
| 64,000 | GS Mortgage Securities Trust, Series 2020-GC47, Class A5, 2.377%, 5/12/53 | 52,347 | ||||||
| 500,000 | GS Mortgage Securities Trust, Series 2020-GSA2, Class A5, 2.012%, 12/12/53(b) | 388,984 | ||||||
| 179,429 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2011-C3, Class B, 5.013%, 2/15/46(c)(d) | 172,490 | ||||||
| 164,218 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13, Class A4, 3.994%, 1/15/46(d) | 162,552 | ||||||
Continued
98
| Sterling Capital Quality Income Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 350,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class A5, 2.960%, 4/15/46 | $ | 345,507 | ||||
| 500,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A5, 3.805%, 7/15/47 | 487,530 | ||||||
| 185,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Series 2016-JP4, Class A4, 3.648%, 12/15/49(d) | 173,153 | ||||||
| 274,000 | Med Trust, Series 2021-MDLN, Class C, 4.618%, (LIBOR USD 1-Month plus 1.80%), 11/15/38(a)(c) | 260,957 | ||||||
| 100,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C18, Class A4, 3.923%, 10/15/47(b) | 96,911 | ||||||
| 300,167 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19, Class A4, 3.526%, 12/15/47 | 289,475 | ||||||
| 500,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C32, Class A4, 3.720%, 12/15/49(b) | 468,191 | ||||||
| 435,000 | Morgan Stanley Capital I Trust, Series 2018-H3, Class A5, 4.177%, 7/15/51 | 409,004 | ||||||
| 659,333 | Morgan Stanley Capital I Trust, Series 2020-HR8, Class A4, 2.041%, 7/15/53 | 523,393 | ||||||
| 205,612 | OPG Trust, Series 2021-PORT, Class C, 3.650%, (LIBOR USD 1-Month plus 0.83%), 10/15/36(a)(c) | 189,521 | ||||||
| 245,006 | SMR Mortgage Trust, Series 2022-IND, Class A, 4.495%, (TSFR1M plus 1.65%), 2/15/39(a)(c) | 237,960 | ||||||
| 600,000 | Wells Fargo Commercial Mortgage Trust, Series 2014-LC18, Class A5, 3.405%, 12/15/47 | 575,268 | ||||||
| 644,000 | Wells Fargo Commercial Mortgage Trust, Series 2015-P2, Class A4, 3.809%, 12/15/48 | 614,183 | ||||||
| 50,000 | Wells Fargo Commercial Mortgage Trust, Series 2016-C37, Class A5, 3.794%, 12/15/49 | 47,077 | ||||||
| 300,000 | Wells Fargo Commercial Mortgage Trust, Series 2017-C40, Class A4, 3.581%, 10/15/50 | 276,842 | ||||||
| 220,800 | Wells Fargo Commercial Mortgage Trust, Series 2020-C56, Class A5, 2.448%, 6/15/53 | 181,131 | ||||||
| 500,000 | Wells Fargo Commercial Mortgage Trust, Series 2020-C57, Class A4, 2.118%, 8/15/53 | 398,195 | ||||||
| 300,000 | Wells Fargo Commercial Mortgage Trust, Series 2020-C58, Class A4, 2.092%, 7/15/53 | 235,907 | ||||||
| Principal Amount | Fair Value | |||||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| $ | 75,628 | WFRBS Commercial Mortgage Trust, Series 2013-UBS1, Class A4, 4.079%, 3/15/46(d) | $ | 74,653 | ||||
| 475,000 | WFRBS Commercial Mortgage Trust, Series 2014-C20, Class AS, 4.176%, 5/15/47 | 459,407 | ||||||
| 302,000 | WFRBS Commercial Mortgage Trust, Series 2014-C23, Class A5, 3.917%, 10/15/57 | 293,827 | ||||||
| Total Commercial Mortgage-Backed Securities | ||||||||
| (Cost $22,265,686) | 19,889,362 | |||||||
| CORPORATE BONDS — 0.9% | ||||||||
| Diversified Telecommunication Services — 0.6% | ||||||||
| 468,750 | Sprint Spectrum Co., LLC/Sprint Spectrum Co. II, LLC/Sprint Spectrum Co. III, LLC, 4.738%, 3/20/25(c) | 462,028 | ||||||
| Equity Real Estate Investment Trusts (REITS) — 0.3% | ||||||||
| 250,000 | American Tower Trust, 3.652%, 3/23/28(c) | 227,562 | ||||||
| Total Corporate Bonds | ||||||||
| (Cost $731,211) | 689,590 | |||||||
| MORTGAGE-BACKED SECURITIES — 29.6% | ||||||||
| Fannie Mae — 17.4% | ||||||||
| 123,471 | 3.000%, 1/1/31, Pool #BA6574 | 116,735 | ||||||
| 356,478 | 4.500%, 3/1/34, Pool #CA3294 | 353,954 | ||||||
| 315,202 | 2.500%, 11/1/35, Pool #CA7939 | 285,978 | ||||||
| 67,449 | 5.500%, 6/1/38, Pool #984277(b) | 69,473 | ||||||
| 32,732 | 5.500%, 8/1/38, Pool #995072 | 33,841 | ||||||
| 41,067 | 4.500%, 9/1/39, Pool #AC1830 | 40,246 | ||||||
| 38,303 | 4.500%, 10/1/40, Pool #AE4855 | 37,537 | ||||||
| 77,763 | 3.500%, 2/1/41, Pool #AH5646 | 71,728 | ||||||
| 120,626 | 4.000%, 3/1/41, Pool #AH4008 | 115,040 | ||||||
| 354,105 | 2.500%, 5/1/41, Pool #MA4334 | 305,360 | ||||||
| 30,470 | 4.500%, 6/1/41, Pool #AC9298 | 29,857 | ||||||
| 91,320 | 5.000%, 7/1/41, Pool #AI5595 | 92,131 | ||||||
| 155,261 | 4.000%, 9/1/41, Pool #AJ1717 | 148,034 | ||||||
| 120,609 | 3.500%, 6/1/42, Pool #AB5373 | 110,813 | ||||||
| 37,698 | 4.500%, 10/1/44, Pool #MA2066 | 36,944 | ||||||
| 122,914 | 4.000%, 12/1/44, Pool #MA2127 | 116,832 | ||||||
| 123,723 | 4.500%, 1/1/45, Pool #MA2158 | 121,246 | ||||||
| 145,420 | 3.500%, 3/1/45, Pool #AS4552 | 133,597 | ||||||
| 131,599 | 4.000%, 10/1/45, Pool #AL7487 | 125,015 | ||||||
| 914,296 | 3.000%, 10/1/46, Pool #BC4764 | 813,896 | ||||||
| 94,434 | 4.000%, 11/1/46, Pool #MA2808 | 89,558 | ||||||
| 120,707 | 3.000%, 2/1/47, Pool #BE2329 | 107,110 | ||||||
| 71,542 | 4.000%, 5/1/47, Pool #BE9598 | 67,800 | ||||||
| 62,771 | 4.500%, 11/1/47, Pool #BM3286 | 61,782 | ||||||
| 156,298 | 3.500%, 12/1/47, Pool #CA0833 | 142,366 | ||||||
Continued
99
| Sterling Capital Quality Income Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| Fannie Mae — (continued) | ||||||||
| $ | 71,209 | 4.500%, 5/1/48, Pool #CA1711 | $ | 68,755 | ||||
| 99,366 | 3.500%, 9/1/49, Pool #BJ9608 | 90,431 | ||||||
| 218,328 | 3.500%, 6/1/50, Pool #CA6097 | 198,040 | ||||||
| 224,573 | 3.000%, 7/1/50, Pool #CA6421 | 197,170 | ||||||
| 222,525 | 3.000%, 7/1/50, Pool #CA6422 | 195,245 | ||||||
| 570,200 | 2.500%, 8/1/50, Pool #FM4053 | 483,944 | ||||||
| 359,607 | 2.500%, 8/1/50, Pool #FM4055 | 304,940 | ||||||
| 890,855 | 3.000%, 8/1/50, Pool #FS0973 | 785,973 | ||||||
| 449,269 | 2.500%, 10/1/50, Pool #FM4702 | 380,964 | ||||||
| 528,829 | 2.500%, 3/1/51, Pool #FM6523 | 447,631 | ||||||
| 378,549 | 3.000%, 5/1/51, Pool #FM7346 | 332,059 | ||||||
| 1,155,196 | 2.500%, 8/1/51, Pool #FM8438 | 979,985 | ||||||
| 1,404,609 | 4.000%, 8/1/51, Pool #FS1976 | 1,326,060 | ||||||
| 339,375 | 3.000%, 11/1/51, Pool #CB2170 | 296,813 | ||||||
| 922,829 | 3.500%, 2/1/52, Pool #MA4550 | 832,361 | ||||||
| 1,103,329 | 3.000%, 3/1/52, Pool #BV4143 | 972,485 | ||||||
| 780,763 | 3.500%, 4/1/52, Pool #FS1185 | 704,422 | ||||||
| 729,798 | 3.500%, 4/1/52, Pool #FS1260 | 660,262 | ||||||
| 718,319 | 4.500%, 6/1/52, Pool #FS2157 | 692,412 | ||||||
| 13,576,825 | ||||||||
| Freddie Mac — 12.2% | ||||||||
| 44,848 | 4.000%, 11/1/32, Pool #ZS8993 | 42,811 | ||||||
| 205,727 | 3.500%, 5/1/35, Pool #ZA2378 | 193,082 | ||||||
| 147,322 | 4.000%, 5/1/37, Pool #ZA2461 | 140,572 | ||||||
| 20,710 | 5.500%, 10/1/39, Pool #ZI9359 | 21,305 | ||||||
| 34,705 | 5.000%, 4/1/40, Pool #ZI9910 | 35,022 | ||||||
| 61,266 | 5.500%, 4/1/40, Pool #ZA1042 | 63,335 | ||||||
| 25,448 | 5.000%, 8/1/40, Pool #ZA1056 | 25,681 | ||||||
| 63,889 | 4.000%, 11/1/40, Pool #ZJ0654 | 60,762 | ||||||
| 78,852 | 4.000%, 12/1/40, Pool #ZJ0811 | 75,180 | ||||||
| 166,756 | 3.500%, 8/1/42, Pool #ZL3508 | 153,381 | ||||||
| 621,286 | 3.000%, 12/1/42, Pool #Q14108 | 558,705 | ||||||
| 221,009 | 3.500%, 3/1/43, Pool #ZT1107 | 203,554 | ||||||
| 940,806 | 3.500%, 1/1/45, Pool #SD1309 | 862,596 | ||||||
| 165,550 | 3.500%, 1/1/45, Pool #ZL8964 | 152,061 | ||||||
| 128,031 | 3.500%, 3/1/45, Pool #ZT1164 | 117,792 | ||||||
| 98,668 | 3.000%, 1/1/46, Pool #ZS4646 | 87,924 | ||||||
| 102,713 | 4.000%, 4/1/46, Pool #ZM1015 | 97,025 | ||||||
| 106,081 | 3.500%, 12/1/47, Pool #ZM5123 | 96,913 | ||||||
| 267,290 | 2.500%, 11/1/49, Pool #QA4396 | 226,423 | ||||||
| 126,686 | 3.000%, 1/1/50, Pool #QA6230 | 111,283 | ||||||
| 552,244 | 3.000%, 6/1/51, Pool #SD8152 | 483,986 | ||||||
| 757,471 | 2.500%, 7/1/51, Pool #QC4230 | 646,427 | ||||||
| 407,148 | 3.000%, 7/1/51, Pool #RA5552 | 356,743 | ||||||
| 323,308 | 3.500%, 7/1/51, Pool #RA5549 | 292,206 | ||||||
| 1,104,260 | 3.000%, 8/1/51, Pool #SD8162 | 967,656 | ||||||
| 1,068,300 | 2.500%, 9/1/51, Pool #RA5921 | 903,544 | ||||||
| 611,544 | 3.500%, 1/1/52, Pool #RA6531 | 551,629 | ||||||
| 476,546 | 3.000%, 2/1/52, Pool #SD8195 | 416,700 | ||||||
| 971,838 | 3.500%, 4/1/52, Pool #SD0957 | 876,011 | ||||||
| 786,111 | 4.500%, 6/1/52, Pool #SD1265 | 751,234 | ||||||
| 9,571,543 | ||||||||
| Principal Amount | Fair Value | |||||||
| MORTGAGE-BACKED SECURITIES — (continued) | ||||||||
| Ginnie Mae — 0.0% | ||||||||
| $ | 7,957 | 4.000%, 12/20/40, Pool #755678 | $ | 7,618 | ||||
| Total Mortgage-Backed Securities | ||||||||
| (Cost $26,273,489) | 23,155,986 | |||||||
| U.S. TREASURY BONDS — 1.3% | ||||||||
| 1,000,000 | 2.375%, 2/15/42 | 766,406 | ||||||
| 315,000 | 1.875%, 11/15/51(b) | 208,319 | ||||||
| Total U.S. Treasury Bonds | ||||||||
| (Cost $1,272,929) | 974,725 | |||||||
| U.S. TREASURY NOTES — 4.2% | ||||||||
| 2,200,000 | 0.875%, 9/30/26 | 1,936,258 | ||||||
| 650,000 | 1.375%, 11/15/31 | 528,023 | ||||||
| 1,000,000 | 1.875%, 2/15/32 | 847,188 | ||||||
| Total U.S. Treasury Notes | ||||||||
| (Cost $3,558,655) | 3,311,469 | |||||||
| Shares | |||||||
| MONEY MARKET FUND — 2.1% | |||||||
| 1,678,519 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(e) | 1,678,519 | |||||
| Total Money Market Fund | |||||||
| (Cost $1,678,519) | 1,678,519 | ||||||
| Total Investments — 100.4% | |||||||
| (Cost $87,415,731) | 78,619,520 | ||||||
| Net Other Assets (Liabilities) — (0.4)% | (333,128 | ) | |||||
| NET ASSETS — 100.0% | $ | 78,286,392 | |||||
| (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, 2022. The maturity date reflected is the final maturity date. |
| (b) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (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, 2022. The maturity date reflected is the final maturity date. |
| (e) | Represents the current yield as of report date. |
| STEP | Step Coupon Bond |
Continued
100
| Sterling Capital North Carolina Intermediate Tax-Free Fund |
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — 95.5% | ||||||||
| North Carolina — 95.5% | ||||||||
| $ | 4,190,000 | Alamance County, NC, School Improvements G.O., 5.000%, 5/1/27 | $ | 4,501,275 | ||||
| 1,000,000 | Broad River Water Authority, Water System Refunding Revenue, 5.000%, 6/1/24 | 1,026,270 | ||||||
| 1,390,000 | Brunswick County, NC, School Improvements G.O., 5.000%, 8/1/28 | 1,521,661 | ||||||
| 1,500,000 | Brunswick County, NC, School Improvements G.O., 5.000%, 8/1/29 | 1,662,915 | ||||||
| 1,025,000 | Buncombe County Metropolitan Sewerage District, Sewer Improvements Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/39 | 1,056,396 | ||||||
| 1,475,000 | Buncombe County, NC, Advance Refunding Revenue Limited Obligation, Callable 6/1/25 @ 100, 5.000%, 6/1/28 | 1,543,160 | ||||||
| 1,175,000 | Buncombe County, NC, School Improvements, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/29 | 1,208,934 | ||||||
| 1,100,000 | Cabarrus County, NC, Refunding Revenue Bonds, Series A, 5.000%, 6/1/31 | 1,228,810 | ||||||
| 1,010,000 | Cape Fear Public Utility Authority, Advance Refunding Revenue Bonds, 5.000%, 8/1/25 | 1,059,227 | ||||||
| 1,000,000 | Charlotte, NC, Charlotte Douglas International Airport Refunding Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/31 | 1,023,360 | ||||||
| 1,040,000 | Charlotte, NC, Convention Facility, Refunding Revenue, Certification of Participation, Callable 6/1/29 @ 100, 5.000%, 6/1/30 | 1,140,277 | ||||||
| 1,000,000 | Charlotte, NC, Convention Facility, Refunding Revenue, Certification of Participation, Callable 6/1/29 @ 100, 5.000%, 6/1/31 | 1,092,390 | ||||||
| 1,000,000 | Charlotte, NC, Convention Facility, Refunding Revenue, Certification of Participation, Callable 6/1/29 @ 100, 5.000%, 6/1/32 | 1,088,600 | ||||||
| 3,195,000 | Charlotte, NC, Current Refunding G.O., Series A, 5.000%, 6/1/29 | 3,538,814 | ||||||
| 2,000,000 | Charlotte, NC, Public Facilities, Certificate of Participation, Series B, Callable 12/1/31 @ 100, 5.000%, 12/1/32 | 2,232,320 | ||||||
| 2,275,000 | Charlotte, NC, Recreational Facilities Improvements Revenue, Callable 12/1/28 @ 100, 5.000%, 12/1/33 | 2,453,405 | ||||||
| 1,520,000 | Charlotte, NC, Recreational Facilities Improvements Revenue, Callable 12/1/28 @ 100, 5.000%, 12/1/34 | 1,632,982 | ||||||
| 3,000,000 | Charlotte, NC, Water & Sewer System Refunding Revenue, Callable 7/1/28 @ 100, 5.000%, 7/1/36 | 3,220,500 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| North Carolina — (continued) | ||||||||
| $ | 2,295,000 | Charlotte, NC, Water & Sewer System Revenue, Refunding Revenue, 5.000%, 7/1/27 | $ | 2,480,390 | ||||
| 1,000,000 | Charlotte, NC, Water & Sewer System Revenue, Current Refunding Revenue Bonds, 5.000%, 7/1/29 | 1,108,750 | ||||||
| 2,035,000 | Chatham County, NC, Refunding Revenue (County Guaranteed), 5.000%, 12/1/28 | 2,165,606 | ||||||
| 2,500,000 | Durham Capital Financing Corp., Refunding Revenue Limited Obligation, Callable 6/1/23 @ 100, 5.000%, 6/1/38(a) | 2,531,050 | ||||||
| 1,225,000 | East Carolina University, University & College Improvements Revenue, Series A, Callable 4/1/26 @ 100, 5.000%, 10/1/27 | 1,283,151 | ||||||
| 1,000,000 | Elizabeth City State University, Board of Governors of NC, Advance Refunding Revenue Bonds, Callable 4/1/29 @ 100 (AGM), 5.000%, 4/1/40 | 1,027,470 | ||||||
| 1,750,000 | Fayetteville, NC, Public Works Commission, Electric Light & Power Improvements Revenue, Callable 3/1/24 @ 100, 4.000%, 3/1/27 | 1,767,710 | ||||||
| 1,690,000 | Fayetteville, NC, Public Works Commission, Multi-Utility Improvements Revenue, Callable 3/1/28 @ 100, 5.000%, 3/1/29 | 1,828,597 | ||||||
| 3,000,000 | Forsyth County, NC, School Improvements G.O., Series B, 4.000%, 3/1/29 | 3,123,900 | ||||||
| 3,000,000 | Forsyth County NC, Public Improvements, G.O., Series B, Callable 3/1/29 @ 100, 5.000%, 3/1/31 | 3,291,000 | ||||||
| 2,200,000 | Forsyth County NC, Refunding Revenue, G.O., 5.000%, 7/1/26 | 2,343,550 | ||||||
| 1,500,000 | Gaston County, NC, Current Refunding G.O., 5.000%, 2/1/29 | 1,646,325 | ||||||
| 1,675,000 | Guilford County, NC, Advance Refunding, G.O., Series A, Callable 2/1/26 @ 100, 5.000%, 2/1/28 | 1,773,741 | ||||||
| 2,075,000 | High Point, NC, Combined Water & Sewer System, Advance Refunding Revenue Bonds, 5.000%, 11/1/26 | 2,216,390 | ||||||
| 3,000,000 | Mecklenburg County, NC, Advance Refunding G.O., Series A, 5.000%, 12/1/27 | 3,259,740 | ||||||
| 1,195,000 | Monroe, NC, Advance Refunding Revenue Bonds, Callable 3/1/26 @ 100, 5.000%, 3/1/29 | 1,259,160 | ||||||
| 1,465,000 | Moore County, Advance Refunding Revenue, G.O., 5.000%, 6/1/28 | 1,594,740 | ||||||
| 1,250,000 | New Hanover County, NC, Public Facilities Revenue Bonds, Series A, 5.000%, 2/1/26 | 1,320,800 | ||||||
See accompanying Notes to the Financial Statements.
101
| Sterling Capital North Carolina Intermediate Tax-Free Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| North Carolina — (continued) | ||||||||
| $ | 2,450,000 | New Hanover County, NC, Current Refunding G.O., Series A, 4.000%, 8/1/25 | $ | 2,506,399 | ||||
| 1,000,000 | North Carolina Agricultural & Technical State University, Series A, Refunding Revenue, Callable 10/1/25 @ 100, 5.000%, 10/1/32 | 1,032,380 | ||||||
| 1,215,000 | North Carolina Agricultural & Technical State University, Series A, Refunding Revenue, Callable 10/1/25 @ 100, 5.000%, 10/1/34 | 1,252,264 | ||||||
| 1,100,000 | North Carolina Capital Facilities Finance Agency, Johnson & Wales University Project, Refunding Revenue, Callable 4/1/23 @ 100, 5.000%, 4/1/25 | 1,109,911 | ||||||
| 840,000 | North Carolina Capital Facilities Finance Agency, Meredith College Project, Refunding Revenue, 5.000%, 6/1/24 | 858,791 | ||||||
| 750,000 | North Carolina Capital Facilities Finance Agency, Meredith College Project, Refunding Revenue, 5.000%, 6/1/25 | 773,895 | ||||||
| 1,045,000 | North Carolina Capital Facilities Finance Agency, The Arc of North Carolina Project, Refunding Revenue (Housing and Urban Development, Section 8), 5.000%, 10/1/25 | 1,074,302 | ||||||
| 1,750,000 | North Carolina Capital Facilities Finance Agency, The Arc of North Carolina Project, Refunding Revenue, Callable 10/1/27 @ 100 (Housing and Urban Development, Section 8), 5.000%, 10/1/34 | 1,779,330 | ||||||
| 1,205,000 | North Carolina Central University, University & College Improvements, Revenue Bonds, Callable 4/1/29 @ 100, 5.000%, 4/1/33 | 1,260,153 | ||||||
| 1,000,000 | North Carolina Central University, University & College Improvements, Revenue Bonds, Callable 4/1/29 @ 100, 5.000%, 4/1/37 | 1,024,460 | ||||||
| 2,000,000 | North Carolina Medical Care Commission, Advance Refunding Revenue Bonds, Vidant Health, Callable 6/1/25 @ 100, 5.000%, 6/1/40 | 1,991,240 | ||||||
| 1,500,000 | North Carolina Medical Care Commission, Health, Hospital and Nursinghome Improvements, Revenue Bonds, Series A, Callable 1/1/30 @ 100, 5.000%, 7/1/32 | 1,555,125 | ||||||
| 1,000,000 | North Carolina Municipal Power Agency No. 1, Advance Refunding Revenue Bonds, Series A, Callable 7/1/26 @ 100, 5.000%, 1/1/29 | 1,050,400 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| North Carolina — (continued) | ||||||||
| $ | 3,100,000 | North Carolina State, Advance Refunding Revenue Bonds, Series B, Callable 5/1/27 @ 100, 5.000%, 5/1/28 | $ | 3,328,687 | ||||
| 4,385,000 | North Carolina State, Advance Refunding Revenue Bonds, Series B, Callable 5/1/27 @ 100, 5.000%, 5/1/30(a) | 4,695,896 | ||||||
| 2,165,000 | North Carolina State, Build North Carolina Programs, Highway improvements Revenue Bonds, Series B, Callable 5/1/30 @ 100, 5.000%, 5/1/32 | 2,380,699 | ||||||
| 5,000,000 | North Carolina State, Highway Improvements Revenue Bonds, Series N, Callable 3/1/31 @ 100, 4.000%, 3/1/34 | 4,806,000 | ||||||
| 2,500,000 | North Carolina State, Public Improvements G.O., Series A, 5.000%, 6/1/30 | 2,797,900 | ||||||
| 2,645,000 | North Carolina State, Refunding Revenue G.O., Series B, 5.000%, 6/1/25 | 2,769,579 | ||||||
| 2,000,000 | North Carolina State University at Raleigh, Refunding Revenue, Series A, Callable 10/1/23 @ 100, 5.000%, 10/1/28 | 2,034,380 | ||||||
| 1,250,000 | North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), 5.000%, 1/1/26 | 1,305,437 | ||||||
| 1,500,000 | North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue (AGM), 5.000%, 1/1/27 | 1,584,585 | ||||||
| 2,100,000 | North Carolina Turnpike Authority, Senior Lien, Advance Refunding Revenue, Callable 1/1/27 @ 100 (AGM), 5.000%, 1/1/28 | 2,208,885 | ||||||
| 1,060,000 | Pitt County, NC, Advance Refunding Revenue Bonds, Series B, Callable 10/1/26 @ 100, 5.000%, 4/1/30 | 1,126,388 | ||||||
| 1,500,000 | Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/27 | 1,511,595 | ||||||
| 1,615,000 | Raleigh, NC, Combined Enterprise System, Refunding Revenue, Series A, Callable 3/1/23 @ 100, 5.000%, 3/1/28 | 1,627,484 | ||||||
| 1,000,000 | Raleigh, NC, Refunding Revenue, Callable 2/1/26 @ 100, 5.000%, 2/1/27 | 1,056,120 | ||||||
| 1,985,000 | Sampson County, NC, Refunding Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26(a) | 2,072,995 | ||||||
| 1,025,000 | Surry County, NC, School Improvements, Revenue Bonds, Callable 6/1/29 @ 100, 4.000%, 6/1/35 | 978,732 | ||||||
| 720,000 | Surry County, NC, School Improvements, Revenue Bonds, Callable 6/1/29 @ 100, 5.000%, 6/1/30 | 787,176 | ||||||
| 1,010,000 | Town of Holly Springs, NC, Public Improvements Revenue, Callable 10/1/24 @ 100, 5.000%, 10/1/27 | 1,045,501 | ||||||
Continued
102
| Sterling Capital North Carolina Intermediate Tax-Free Fund |
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| North Carolina — (continued) | ||||||||
| $ | 870,000 | Town of Oak Island, NC, Combined Enterprise System, Advance Refunding Revenue (AGM), 5.000%, 6/1/25 | $ | 905,557 | ||||
| 1,030,000 | Union County, NC, Public Improvements Bonds G.O., Callable 3/1/32 @ 100, 5.000%, 3/1/34 | 1,148,234 | ||||||
| 1,000,000 | Union County, NC, Refunding Revenue, 5.000%, 12/1/23 | 1,021,540 | ||||||
| 2,180,000 | University of North Carolina at Chapel Hill, Current Refunding Revenue Bonds, Series B, Callable 12/1/31 @ 100, 5.000%, 12/1/37 | 2,394,730 | ||||||
| 1,695,000 | University of North Carolina at Greensboro, University & College Improvements Revenue, Callable 4/1/24 @ 100, 5.000%, 4/1/28 | 1,730,646 | ||||||
| 410,000 | University of North Carolina System, Asheville/Wilmington, Refunding Revenue, Series C, Callable 10/31/22 @ 100 (Assured Guaranty), 5.250%, 10/1/24 | 410,439 | ||||||
| 1,985,000 | Wake County, NC, Advance Refunding Revenue Bonds, Series A, Callable 12/1/26 @ 100, 5.000%, 12/1/28 | 2,119,246 | ||||||
| 1,585,000 | Wake County, NC, Public Improvements, G.O., Series A, Callable 3/1/28 @ 100, 5.000%, 3/1/30 | 1,724,163 | ||||||
| 1,725,000 | Wake County, NC, Refunding Revenue Bonds, Series A, Callable 8/1/28 @ 100, 5.000%, 8/1/32 | 1,859,688 | ||||||
| 2,025,000 | Wake County, NC, Public Improvements, G.O., Series A, Callable 3/1/29 @ 100, 5.000%, 3/1/30 | 2,232,441 | ||||||
| 2,060,000 | Wilmington, NC, Public Improvements G.O., Series A, 5.000%, 5/1/31 | 2,316,511 | ||||||
| 1,000,000 | Winston-Salem, NC, Transit Improvements, Refunding Revenue, Series C, Callable 6/1/24 @ 100, 5.000%, 6/1/30 | 1,029,700 | ||||||
| 1,165,000 | Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, 5.000%, 6/1/24 | 1,199,973 | ||||||
| 1,875,000 | Winston-Salem, NC, Water & Sewer System, Refunding Revenue, Series A, Callable 6/1/24 @ 100, 5.000%, 6/1/25(a) | 1,931,212 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $151,484,486) | 145,664,135 | |||||||
| Shares | Fair Value | ||||||
| MONEY MARKET FUND — 3.1% | |||||||
| 4,804,153 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | $ | 4,804,153 | ||||
| Total Money Market Fund | |||||||
| (Cost $4,804,153) | 4,804,153 | ||||||
| Total Investments — 98.6% | |||||||
| (Cost $156,288,639) | 150,468,288 | ||||||
| Net Other Assets (Liabilities) — 1.4% | 2,076,458 | ||||||
| NET ASSETS — 100.0% | $ | 152,544,746 | |||||
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| G.O. | General Obligation |
Continued
103
Sterling Capital South Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — 97.8% | ||||||||
| South Carolina — 97.8% | ||||||||
| $ | 1,000,000 | Aiken County, SC, Consolidated School District, School Improvements G.O., Series A, Callable 4/1/29 @ 100 (SCSDE), 4.000%, 4/1/34 | $ | 1,005,220 | ||||
| 1,000,000 | Aiken County, SC, Consolidated School District, Special Obligation Bonds, School Improvements Revenue, Callable 6/1/29 @ 100, 4.000%, 6/1/31 | 1,013,680 | ||||||
| 750,000 | Aiken County, SC, Consolidated School District, Special Obligation Bonds, School Improvements Revenue, Callable 6/1/29 @ 100, 4.000%, 6/1/33 | 744,292 | ||||||
| 1,000,000 | Anderson County, SC, School District No. 4, Refunding, G.O., Series A, Callable 3/1/25 @ 100 (SCSDE), 5.000%, 3/1/28 | 1,042,100 | ||||||
| 1,160,000 | Beaufort County, SC, School District. School Improvements G.O., Series A (SCSDE), 5.000%, 3/1/29 | 1,273,042 | ||||||
| 1,000,000 | Beaufort-Jasper Water & Sewer Authority, Advance Refunding Revenue, Series B, 5.000%, 3/1/25 | 1,042,000 | ||||||
| 1,000,000 | Charleston Public Facilities Corp., Charleston City Project Series, Parking Facilities Improvement Revenue, Callable 9/1/27 @ 100, 5.000%, 9/1/29 | 1,077,120 | ||||||
| 1,355,000 | Coastal Carolina University, University & College Improvements Revenue, Callable 6/1/24 @ 100, 5.000%, 6/1/34 | 1,381,531 | ||||||
| 1,000,000 | College of Charleston, University & College Improvements Revenue, Series B, 5.000%, 4/1/27 | 1,065,780 | ||||||
| 1,000,000 | Columbia, SC, Waterworks & Sewer System Revenue, Water & Sewer Utility Improvements Revenue, Callable 2/1/28 @ 100, 5.000%, 2/1/48 | 1,085,990 | ||||||
| 1,000,000 | Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/28 | 1,029,210 | ||||||
| 1,100,000 | Florence County, SC, McLeod Regional Medical Center Project, Refunding Revenue, Callable 11/1/24 @ 100, 5.000%, 11/1/33(a) | 1,123,089 | ||||||
| 1,000,000 | Georgetown County, SC, School District, School Improvements, G.O., Callable 3/1/28 @ 100 (SCSDE), 4.000%, 3/1/30 | 1,029,010 | ||||||
| 1,415,000 | Greenville Health System, Hospital System Board, Series B, Callable 5/1/24 @ 100, 5.000%, 5/1/31 | 1,429,249 | ||||||
| 1,000,000 | Lancaster Educational Assistance Program, Inc., SC, Lancaster County School District Refunding Revenue, Callable 12/1/23 @ 100, 5.000%, 12/1/24 | 1,018,330 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| South Carolina — (continued) | ||||||||
| $ | 1,530,000 | Lexington County, School District No. 2, G.O., Series C, Callable 3/1/27 @ 100 (SCSDE), 5.000%, 3/1/29 | $ | 1,637,161 | ||||
| 1,345,000 | Lexington County, School District No. 2, G.O., Series C, Callable 3/1/27 @ 100 (SCSDE), 5.000%, 3/1/30 | 1,437,617 | ||||||
| 1,085,000 | Lugoff-Elgin Water Authority, Refunding Revenue, Series B, Callable 7/1/26 @ 100, 5.000%, 7/1/30 | 1,142,538 | ||||||
| 1,485,000 | Orangeburg County, SC, Correctional Facilities Improvements, Installment Purchase Revenue Bonds, Callable 12/1/27 @ 100, 5.000%, 12/1/29(a) | 1,578,793 | ||||||
| 1,000,000 | Orangeburg County, SC, School District No. 4, School Improvements Refunding, G.O., Series A (SCSDE), 5.000%, 3/1/24 | 1,025,300 | ||||||
| 1,270,000 | Richland County, SC, Public Facilities G.O., 5.000%, 3/1/28 | 1,382,712 | ||||||
| 1,160,000 | Richland County, SC, Public Facilities G.O., 5.000%, 3/1/30 | 1,292,866 | ||||||
| 1,000,000 | Richland County, SC, School District No. 2, Refunding Bonds, G.O., Series B, Callable 3/1/27 @ 100 (SCSDE), 4.000%, 3/1/29 | 1,025,180 | ||||||
| 1,000,000 | SCAGO Educational Facilities Corp. for Cherokee School District No. 1, Refunding Revenue, 5.000%, 12/1/24 | 1,032,580 | ||||||
| 625,000 | SCAGO Educational Facilities Corp. for Spartanburg School District No. 1, Refunding Revenue, Series B, 5.000%, 6/1/25 | 646,519 | ||||||
| 600,000 | SCAGO Educational Facilities Corp. for Sumter County School 17, Refunding Revenue, 5.000%, 12/1/24 | 618,282 | ||||||
| 490,000 | SCAGO Educational Facilities Corp. for Sumter County School 17, Refunding Revenue, 5.000%, 12/1/25 | 510,482 | ||||||
| 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 | 870,876 | ||||||
| 1,540,000 | South Carolina Jobs-Economic Development Authority, Wofford College Project, University & College Improvements Revenue, Callable 4/1/29 @ 100, 5.000%, 4/1/44 | 1,542,556 | ||||||
| 1,000,000 | South Carolina Jobs-Economic Development Authority, Wofford College Project, University & College Improvements Revenue, Callable 4/1/29 @ 100, 5.000%, 4/1/49 | 992,990 | ||||||
See accompanying Notes to the Financial Statements.
104
Sterling Capital South Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| South Carolina — (continued) | ||||||||
| $ | 1,400,000 | Authority, Department of Mental Health Project, Callable 4/1/27 @ 100, 5.000%, 10/1/37 | $ | 1,470,518 | ||||
| 1,480,000 | South Carolina State Housing Finance & Development Authority, Refunding Revenue, Series A, 5.000%, 7/1/30(a) | 1,590,378 | ||||||
| 1,000,000 | South Carolina Transportation Infrastructure Bank, Advance Refunding Revenue, Series A, Callable 10/1/27 @ 100 (AGM-CR), 5.000%, 10/1/38 | 1,044,990 | ||||||
| 1,000,000 | Spartanburg, SC, Water System Revenue, Water Utility Improvements Refunding Revenue, Series B, Callable 6/1/27 @ 100, 5.000%, 6/1/39 | 1,044,870 | ||||||
| 1,195,000 | State of South Carolina, University & College Improvements, G.O., Series B, Callable 10/1/27 @ 100 (State Aid Withholding), 5.000%, 4/1/30 | 1,292,823 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| South Carolina — (continued) | ||||||||
| $ | 1,150,000 | Town of Mount Pleasant, SC, Public Facilities, G.O., Callable 6/1/28 @ 100, 5.000%, 6/1/30 | $ | 1,253,178 | ||||
| Total Municipal Bonds | ||||||||
| (Cost $42,717,100) | 40,792,852 | |||||||
| Shares | ||||||||
| MONEY MARKET FUND — 1.1% | ||||||||
| 468,576 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 468,576 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $468,576) | 468,576 | |||||||
| Total Investments — 98.9% | ||||||||
| (Cost $43,185,676) | 41,261,428 | |||||||
| Net Other Assets (Liabilities) — 1.1% | 448,630 | |||||||
| NET ASSETS — 100.0% | $ | 41,710,058 | ||||||
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| G.O. | General Obligation |
| SCAGO | South Carolina Association of Governmental Organizations |
| SCSDE | South Carolina School District Enhancement |
Continued
105
Sterling Capital Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — 96.6% | ||||||||
| District of Columbia — 2.1% | ||||||||
| $ | 1,640,000 | Washington Metropolitan Area Transit Authority, DC, Transit Improvements Revenue, Callable 7/1/27 @ 100, 5.000%, 7/1/36 | $ | 1,710,684 | ||||
| Virginia — 94.5% | ||||||||
| 1,240,000 | Albemarle County, VA, Economic Development Authority, Public Improvements Revenue, 5.000%, 6/1/27 | 1,330,260 | ||||||
| 1,365,000 | Albemarle County, VA, School Improvements G.O., (State Aid Withholding), 5.000%, 6/1/26 | 1,451,787 | ||||||
| 1,475,000 | Arlington County, VA, Public Improvements G.O., Callable 8/15/27 @ 100, 5.000%, 8/15/30 | 1,589,430 | ||||||
| 1,500,000 | Arlington County, VA, Public Improvements G.O., Series A, Callable 8/15/27 @ 100, 5.000%, 8/15/29(a) | 1,619,640 | ||||||
| 1,580,000 | Arlington County, VA, School Improvements G.O., Callable 6/15/31 @ 100, 5.000%, 6/15/39 | 1,722,263 | ||||||
| 1,030,000 | Charlottesville, VA, Public Improvements G.O., Callable 6/15/31 @ 100 (State Aid Withholding), 5.000%, 6/15/33 | 1,141,590 | ||||||
| 1,770,000 | Chesapeake, VA, Public Improvements, Refunding G.O., Series A, Callable 8/1/27 @ 100, 5.000%, 8/1/30 | 1,900,750 | ||||||
| 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 | 1,111,865 | ||||||
| 1,000,000 | Chesterfield County, VA, School District, School Public Improvement, G.O., Series A, Callable 1/1/28 @ 100 (State Aid Withholding), 4.000%, 1/1/31 | 1,033,130 | ||||||
| 1,000,000 | Chesterfield County, VA, School Public Improvement, Advance Refunding, G.O., Callable 1/1/26 @ 100, 5.000%, 1/1/28 | 1,053,760 | ||||||
| 2,000,000 | Commonwealth of Virginia, University & College Improvements G.O., Series A, 4.000%, 6/1/26 | 2,055,080 | ||||||
| 1,145,000 | Culpeper County, VA, Economic Development Authority, VA Capital Projects, Refunding Revenue, Callable 6/1/24 @ 100, 4.000%, 6/1/26 | 1,157,870 | ||||||
| 2,000,000 | Fairfax County, VA, School District, School Public Improvements G.O., Series A, Callable 4/1/29 @ 100 (State Aid Withholding), 5.000%, 10/1/31 | 2,190,040 | ||||||
| 1,145,000 | Fairfax County, VA, School Improvements G.O., Current Refunding, Series A, Callable 4/1/30 @ 100 (State Aid Withholding), 5.000%, 10/1/30 | 1,274,248 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| Virginia — (continued) | ||||||||
| $ | 1,940,000 | Fairfax County, VA, School Improvements G.O., Series A (State Aid Withholding), 5.000%, 10/1/27 | $ | 2,107,849 | ||||
| 1,000,000 | Fredericksburg Economic Development Authority, Mary Washington Healthcare Obligation Group, Refunding Revenue, Callable 6/15/24 @ 100, 5.000%, 6/15/26 | 1,022,030 | ||||||
| 1,545,000 | Harrisonburg, VA, School Improvements G.O., Current Refunding, Series A (State Aid Withholding), 5.000%, 7/15/30 | 1,709,682 | ||||||
| 1,700,000 | Leesburg, VA, Refunding G.O., Callable 1/15/24 @ 100 (State Aid Withholding), 4.000%, 1/15/27 | 1,719,091 | ||||||
| 1,000,000 | Leesburg, VA, Refunding G.O., Callable 1/15/25 @ 100 (State Aid Withholding), 5.000%, 1/15/27 | 1,038,760 | ||||||
| 1,000,000 | Loudoun County, VA, Economic Development Authority, Public Improvements Revenue, Callable 12/1/24 @ 100, 5.000%, 12/1/27 | 1,034,900 | ||||||
| 1,365,000 | Loudoun County, VA, Industrial Development Authority, Refunding Revenue, 4.000%, 12/15/22 | 1,367,730 | ||||||
| 2,000,000 | Loudoun County, VA, Miscellaneous Purposes Revenue G.O., Series A (State Aid Withholding), 5.000%, 12/1/29 | 2,229,320 | ||||||
| 1,250,000 | Loudoun County, VA, Public Improvements, Advance Refunding G.O., Series A, Callable 12/1/25 @ 100, 5.000%, 12/1/26 | 1,317,537 | ||||||
| 1,810,000 | Manassas, VA, Public Improvements, Public Facilities G.O., Callable 7/1/29 @ 100 (State Aid Withholding), 4.000%, 7/1/33 | 1,836,245 | ||||||
| 1,530,000 | Newport News, Public Improvements G.O., Series A (State Aid Withholding), 5.000%, 2/1/29 | 1,684,759 | ||||||
| 1,500,000 | Newport News, VA, Public Improvements, G.O., Series A (State Aid Withholding), 5.000%, 2/1/29 | 1,651,725 | ||||||
| 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 | 1,000,910 | ||||||
| 1,025,000 | Norfolk, VA, Public Improvements G.O., Series A, Callable 3/1/31 @ 100, 5.000%, 3/1/34 | 1,130,360 | ||||||
| 1,465,000 | Norfolk, VA, Public Improvements, G.O., Callable 8/1/28 @ 100 (State Aid Withholding), 5.000%, 8/1/47 | 1,601,318 | ||||||
| 2,000,000 | Norfolk, VA, Public Improvements, G.O., Series A, Callable 10/1/26 @ 100, 5.000%, 10/1/30(a) | 2,133,800 | ||||||
See accompanying Notes to the Financial Statements.
106
Sterling Capital Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| Virginia — (continued) | ||||||||
| $ | 1,680,000 | Prince William County Industrial Development Authority, County Facilities Project, Refunding Revenue Bonds, Series A, 5.000%, 10/1/24 | $ | 1,738,027 | ||||
| 1,375,000 | Rappahannock Regional Jail Authority, Refunding Revenue, Callable 10/1/25 @ 100, 5.000%, 10/1/26 | 1,440,519 | ||||||
| 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(a) | 2,050,880 | ||||||
| 1,295,000 | Richmond, VA, Public Utility Advance Refunding Revenue Bonds, Callable 1/15/26 @ 100, 5.000%, 1/15/27 | 1,367,041 | ||||||
| 1,265,000 | Roanoke, VA, School Improvements G.O., Callable 4/1/32 @ 100 (State Aid Withholding), 5.000%, 4/1/34 | 1,394,751 | ||||||
| 1,380,000 | Salem, VA, School Improvements G.O., Current Refunding, 5.000%, 5/1/28 | 1,493,353 | ||||||
| 1,200,000 | Southampton County Industrial Development Authority, Current Refunding Revenue Bonds, Southampton County Capital, 5.000%, 12/1/28 | 1,300,464 | ||||||
| 1,265,000 | Virginia Beach, VA, Advance Refunding, G.O., Series B, Callable 9/15/25 @ 100 (State Aid Withholding), 5.000%, 9/15/26 | 1,330,616 | ||||||
| 2,295,000 | Virginia Beach, VA, Storm Water Utility Revenue, Public Improvements Revenue Bonds, Series A, Callable 11/15/30 @ 100, 5.000%, 11/15/31 | 2,554,128 | ||||||
| 1,950,000 | Virginia College Building Authority, 21st Century College Programs, University & College Improvements Revenue, Callable 2/1/27 @ 100, 5.000%, 2/1/31 | 2,077,530 | ||||||
| 1,000,000 | Virginia College Building Authority, University & College Improvements, Revenue Bonds, Series C, 5.000%, 9/1/29 | 1,103,240 | ||||||
| 1,500,000 | Virginia Commonwealth Transportation Board, Capital Projects, Highway Improvements, Revenue Bonds, Callable 5/15/29 @ 100, 5.000%, 5/15/30 | 1,643,985 | ||||||
| 1,215,000 | Virginia Commonwealth Transportation Board, Federal Highway Transportation Grant, Callable 9/15/26 @ 100, 5.000%, 9/15/30 | 1,285,276 | ||||||
| 2,000,000 | Virginia Commonwealth Transportation Board, Federal Transportation Grant, Anticipation Advance Refunding Revenue, Callable 9/15/27 @ 100, 5.000%, 9/15/31 | 2,139,300 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| Virginia — (continued) | ||||||||
| $ | 1,515,000 | Virginia Public School Authority, Advance Refunding Revenue, Callable 8/1/25 @ 100, 5.000%, 8/1/26 | $ | 1,585,917 | ||||
| 2,000,000 | Virginia Public School Authority, School Improvements Revenue Bonds (State Aid Withholding), 5.000%, 1/15/30 | 2,225,060 | ||||||
| 1,035,000 | Virginia Public School Authority, School Improvements Revenue Bonds (State Aid Withholding), 5.000%, 8/15/30 | 1,158,144 | ||||||
| 1,000,000 | Virginia Public School Authority, School Improvements, Revenue Bonds, Series A, Callable 8/1/29 @ 100, 4.000%, 8/1/32 | 1,019,400 | ||||||
| 765,000 | Western Regional Jail Authority, Prerefunded Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26 | 804,221 | ||||||
| 760,000 | Western Regional Jail Authority, Unrefunded Revenue, Callable 12/1/25 @ 100, 5.000%, 12/1/26 | 799,900 | ||||||
| 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 | 939,596 | ||||||
| 76,669,077 | ||||||||
| Total Municipal Bonds | ||||||||
| (Cost $81,411,138) | 78,379,761 | |||||||
| Shares | ||||||||
| MONEY MARKET FUND — 5.2% | ||||||||
| 4,187,487 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 4,187,487 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $4,187,487) | 4,187,487 | |||||||
| Total Investments — 101.8% | ||||||||
| (Cost $85,598,625) | 82,567,248 | |||||||
| Net Other Assets (Liabilities) — (1.8)% | (1,422,602 | ) | ||||||
| NET ASSETS — 100.0% | $ | 81,144,646 | ||||||
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| G.O. | General Obligation |
Continued
107
Sterling Capital West Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — 96.1% | ||||||||
| West Virginia — 96.1% | ||||||||
| $ | 630,000 | Berkeley County, WV, Board of Education, Current Refunding G.O., 5.000%, 5/1/25 $ | 657,222 | |||||
| 1,085,000 | Berkeley County, WV, Building Commission, Lease Refunding Revenue, Callable 12/1/22 @ 100, 4.000%, 12/1/26 | 1,086,638 | ||||||
| 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 | 1,510,620 | ||||||
| 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(a) | 1,138,655 | ||||||
| 1,000,000 | Cabell County Board of Education, School Improvements G.O., (AGM West Virginia Board Commission), 3.000%, 6/1/29 | 962,430 | ||||||
| 400,000 | Fairmont, WV, Water Revenue, Current Refunding Revenue, Series A (BAM), 3.000%, 7/1/23 | 398,016 | ||||||
| 530,000 | Fairmont, WV, Water Revenue, Current Refunding Revenue, Series A (BAM), 3.000%, 7/1/24 | 522,988 | ||||||
| 1,000,000 | Jefferson County, WV, Board of Education, School Improvements G.O., (West Virginia Board Commission), 3.000%, 6/1/29 | 957,670 | ||||||
| 1,500,000 | Marshall University, WV, University & College Improvements Revenue Bonds, Series A (AGM), 5.000%, 5/1/30 | 1,635,390 | ||||||
| 2,000,000 | Monongalia County, WV, Building Commission, Monongalia Health System Group Refunding Revenue, Callable 7/1/25 @ 100, 5.000%, 7/1/26 | 2,013,240 | ||||||
| 705,000 | Morgantown Utility Board, WV, Combined Water Utility Improvements Revenue, Series B, Callable 6/1/28 @ 100, 5.000%, 12/1/34 | 750,599 | ||||||
| 750,000 | Morgantown Utility Board, WV, Refunding Revenue Green Bonds, Series A (BAM), 4.000%, 12/1/27 | 773,978 | ||||||
| 555,000 | Morgantown Utility Board, WV, Refunding Revenue Green Bonds, Series A (BAM), 4.000%, 12/1/29 | 574,264 | ||||||
| 1,105,000 | Morgantown Utility Board, Inc., Water Utility Improvements Revenue Bonds, Series B, Callable 6/1/28 @ 100, 5.000%, 12/1/36 | 1,168,250 | ||||||
| 2,275,000 | Ohio County, WV, Board of Education, School Improvements G.O., Callable 6/1/29 @ 100 (West Virginia Board Commission), 3.000%, 6/1/30 | 2,155,017 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| West Virginia — (continued) | ||||||||
| $ | 1,810,000 | Ohio County, WV, Board of Education, School Improvements G.O., (West Virginia Board Commission), 4.000%, 6/1/29 | $ | 1,875,794 | ||||
| 1,000,000 | Ohio County, WV, Country Commission, Fort Henry Centre Financing District, Public Improvement, Tax Allocation, Callable 10/31/22 @ 100, 4.750%, 6/1/31 | 962,980 | ||||||
| 1,020,000 | Pleasants County, WV, Board of Education, Current Refunding G.O., 3.000%, 5/1/25 | 1,008,454 | ||||||
| 1,425,000 | Pleasants County, WV, Board of Education, Current Refunding G.O., 3.000%, 5/1/26 | 1,402,770 | ||||||
| 1,210,000 | Putnam Public Service District, WV, Current Refunding Revenue Bonds, Sewer Improvements, Series B, Callable 4/1/28 @ 100 (BAM), 3.000%, 4/1/30 | 1,130,249 | ||||||
| 695,000 | School Building Authority of West Virginia, Lottery Capital Improvements Revenue, Series A, Callable 7/1/24 @ 100, 5.000%, 7/1/27 | 717,094 | ||||||
| 1,265,000 | School Building Authority of West Virginia, Lottery Capital Improvements Revenue, Series A, Callable 7/1/24 @ 100, 5.000%, 7/1/28 | 1,304,987 | ||||||
| 800,000 | State Of West Virginia, Fuel Sales Tax Revenue, Group 1 Highway Improvements, G.O., Series S, Callable 6/1/29 @ 100, 5.000%, 6/1/32 | 881,368 | ||||||
| 2,225,000 | State Of West Virginia, Fuel Sales Tax Revenue, Group 1 Highway Improvements, G.O., Series S, Callable 6/1/29 @ 100, 5.000%, 12/1/35 | 2,389,027 | ||||||
| 2,030,000 | State of West Virginia, Fuel Sales Tax Revenue, Group 2 Highway Improvements, G.O., Series B, Callable 6/1/28 @ 100, 5.000%, 12/1/39 | 2,137,549 | ||||||
| 2,090,000 | State of West Virginia, Highway Improvements G.O., Series A, Callable 6/1/31 @ 100, 5.000%, 6/1/38 | 2,240,522 | ||||||
| 2,000,000 | West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Callable 10/31/22 @ 100, 5.000%, 6/1/25(a) | 2,027,720 | ||||||
| 3,185,000 | West Virginia Economic Development Authority, Correctional Juvenile Public Safety Facilities Lease, Refunding Revenue, Callable 10/31/22 @ 100, 5.000%, 6/1/26 | 3,231,628 | ||||||
| 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 | 1,218,211 | ||||||
See accompanying Notes to the Financial Statements.
108
Sterling Capital West Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| West Virginia — (continued) | ||||||||
| $ | 1,750,000 | West Virginia Economic Development Authority, Lottery Recreational Facilities Improvements Revenue, Series A, Callable 7/1/28 @ 100, 5.000%, 7/1/35 | $ | 1,864,065 | ||||
| 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 | 1,055,691 | ||||||
| 1,000,000 | West Virginia Higher Education Policy, Community & Technical College Capital, University & College Improvements Refunding Revenue, Callable 7/1/27 @ 100, 5.000%, 7/1/30 | 1,073,330 | ||||||
| 750,000 | West Virginia Higher Education Policy, Community & Technical College Capital, University & College Improvements Refunding Revenue, Callable 7/1/27 @ 100, 5.000%, 7/1/36 | 793,620 | ||||||
| 775,000 | West Virginia Hospital Finance Authority, Cabell Huntington Hospital Obligated Group, Refunding Revenue, Callable 1/1/29 @ 100, 5.000%, 1/1/31 | 785,075 | ||||||
| 2,170,000 | West Virginia Hospital Finance Authority, Cabell Huntington Hospital Obligated Group, Refunding Revenue, Callable 1/1/29 @ 100, 5.000%, 1/1/36 | 2,142,940 | ||||||
| 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 | 961,074 | ||||||
| 3,220,000 | West Virginia Hospital Finance Authority, Charleston Area Medical Center Inc., Health, Hospital, Nursing Home Improvements, Refunding Revenue, Callable 9/1/29 @ 100, 5.000%, 9/1/39 | 3,224,508 | ||||||
| 1,385,000 | West Virginia Hospital Finance Authority, United Health System Obligation, Health, Hospital, Nursing Home Improvements Refunding Revenue Bonds, 5.000%, 6/1/26 | 1,448,655 | ||||||
| 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 | 2,029,020 | ||||||
| 515,000 | West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, 5.000%, 1/1/24 | 525,588 | ||||||
| 630,000 | West Virginia Hospital Finance Authority, Valley Health System Obligated Group, Refunding Revenue, Callable 1/1/24 @ 100, 5.000%, 1/1/26 | 641,491 | ||||||
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| West Virginia — (continued) | ||||||||
| $ | 1,500,000 | West Virginia Parkways Authority, Highway Improvements Revenue Bonds, Senior Lien, Callable 6/1/31 @ 100, 5.000%, 6/1/39 | $ | 1,598,040 | ||||
| 1,750,000 | West Virginia Parkways Authority, Senior Turnpike Toll Revenue, Highway Improvements, 5.000%, 6/1/26 | 1,854,423 | ||||||
| 2,065,000 | West Virginia Parkways Authority, Senior Turnpike Toll Revenue, Highway Improvements, Callable 6/1/28 @ 100, 5.000%, 6/1/39(a) | 2,178,699 | ||||||
| 1,830,000 | West Virginia Parkways Authority, Senior Turnpike Toll Revenue, Highway Improvements, Callable 6/1/28 @ 100, 5.000%, 6/1/43 | 1,906,476 | ||||||
| 1,000,000 | West Virginia Parkways Authority, Senior Turnpike Toll Revenue, Highway Improvements Revenue Bonds, Callable 6/1/28 @ 100, 5.000%, 6/1/35 | 1,068,150 | ||||||
| 1,420,000 | West Virginia State School Building Authority Lottery Revenue, School Improvements Revenue Bonds, Series A, Callable 7/1/25 @ 100, 5.000%, 7/1/26 | 1,486,541 | ||||||
| 1,500,000 | West Virginia State School Building Authority Lottery Revenue, School Improvements Revenue, Series A, Callable 7/1/28 @ 100, 5.000%, 7/1/29 | 1,633,680 | ||||||
| 1,050,000 | West Virginia State Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, Callable 11/1/23 @ 100, 5.000%, 11/1/26(a) | 1,068,711 | ||||||
| 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 | 2,568,379 | ||||||
| 1,000,000 | West Virginia University, University Projects, University & College Improvements Revenue, Callable 10/1/29 @ 100, 5.000%, 10/1/32 | 1,095,250 | ||||||
| 2,000,000 | West Virginia University, University Projects, University & College Improvements Revenue, Callable 10/1/29 @ 100, 5.000%, 10/1/33 | 2,180,740 | ||||||
| 1,180,000 | West Virginia University, University Projects, University & College Improvements Revenue, Series A, Callable 10/1/31 @ 100, 5.000%, 10/1/43 | 1,258,069 | ||||||
| 920,000 | West Virginia University, University Projects, University & College Improvements Revenue, Series A, Callable 10/1/31 @ 100, 5.000%, 10/1/44 | 975,375 | ||||||
Continued
109
Sterling Capital West Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2022
| Principal Amount | Fair Value | |||||||
| MUNICIPAL BONDS — (continued) | ||||||||
| West Virginia — (continued) | ||||||||
| $ | 1,530,000 | West Virginia University, University Projects, University & College Improvements, Refunding Revenue, Series A, Callable 10/1/22 @ 100, 5.000%, 10/1/35 | $ | 1,530,000 | ||||
| 515,000 | West Virginia Water Development Authority, Chesapeake Bay/Greenbrier River, Water Utility Improvements Revenue, Callable 7/1/24 @ 100, 5.000%, 7/1/25 | 529,600 | ||||||
| 1,170,000 | West Virginia Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, 5.000%, 11/1/24 | 1,209,359 | ||||||
| 1,000,000 | West Virginia Water Development Authority, Loan Program II, Refunding Revenue, Series A-II, 5.000%, 11/1/25 | 1,048,550 | ||||||
| 740,000 | West Virginia Water Development Authority, West Virginia Infrastructure & Jobs, Current Refunding Revenue Bonds, Callable 10/1/26 @ 100, 5.000%, 10/1/30 | 775,638 | ||||||
| 1,100,000 | West Virginia Water Development Authority, West Virginia Infrastructure & Jobs, Current Refunding Revenue Bonds, Callable 10/1/26 @ 100, 5.000%, 10/1/31 | 1,152,151 | ||||||
| 1,205,000 | Wood County, WV, Board of Education, Public School Improvements, G.O., (West Virginia Board Commission), 4.000%, 6/1/25 | 1,227,377 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $88,071,041) | 83,723,595 | |||||||
| Shares | ||||||||
| MONEY MARKET FUND — 2.9% | ||||||||
| 2,566,428 | Federated Treasury Obligations Fund, Institutional Shares, 2.84%(b) | 2,566,428 | ||||||
| Total Money Market Fund | ||||||||
| (Cost $2,566,428) | 2,566,428 | |||||||
| Total Investments — 99.0% | ||||||||
| (Cost $90,637,469) | 86,290,023 | |||||||
| Net Other Assets (Liabilities) — 1.0% | 853,413 | |||||||
| NET ASSETS — 100.0% | $ | 87,143,436 | ||||||
| (a) | All or a portion of the securities are held in a separate collateral account at US Bank. |
| (b) | Represents the current yield as of report date. |
| AGM | Assured Guaranty Municipal Corp. |
| BAM | Build America Mutual |
| G.O. | General Obligation |
| OID | Original Issue Discount |
Continued
110
| Sterling Capital Funds |
Statement of Assets and Liabilities
September 30, 2022
Sterling Capital Behavioral Large Cap Value Equity Fund | Sterling Capital Mid Value Fund | |||||||
| Assets: | ||||||||
| Investments at fair value (a) | $ | 27,807,296 | $ | 46,988,463 | ||||
| Cash | — | — | ||||||
| Foreign currency, at value (cost $—, $—, $—, $—, $—, $140,386 and $—, respectively) | — | — | ||||||
| Dividends receivable | 61,760 | 19,333 | ||||||
| Receivable for capital shares issued | 3,526 | 1,205 | ||||||
| Prepaid and other expenses | 40,892 | 17,690 | ||||||
| Total Assets | 27,913,474 | 47,026,691 | ||||||
| Liabilities: | ||||||||
| Payable for investments purchased | — | — | ||||||
| Payable for capital shares redeemed | 472 | 5,830 | ||||||
| Accrued expenses and other payables: | ||||||||
| Investment advisory fees | 11,166 | 25,636 | ||||||
| Administration fees | 2,190 | 3,973 | ||||||
| Compliance service fees | 114 | 144 | ||||||
| Distribution (12b-1) fees | 5,996 | 4,355 | ||||||
| Accounting out-of-pocket fees | 883 | 648 | ||||||
| Audit fees | 2,154 | 4,263 | ||||||
| Custodian fees | 404 | 509 | ||||||
| Printing fees | 1,796 | 3,988 | ||||||
| Transfer agent fees | 1,725 | 6,031 | ||||||
| Other fees and liabilities | 1,113 | 2,144 | ||||||
| Total Liabilities | 28,013 | 57,521 | ||||||
| Net Assets | $ | 27,885,461 | $ | 46,969,170 | ||||
| Net Assets Consist of: | ||||||||
| Capital | $ | 45,382,391 | $ | 33,904,292 | ||||
| Total distributable earnings | (17,496,930 | ) | 13,064,878 | |||||
| Net Assets | $ | 27,885,461 | $ | 46,969,170 | ||||
| Net Assets | ||||||||
| Class A Shares | $ | 25,984,936 | $ | 17,190,831 | ||||
| Class C Shares | 247,658 | 472,760 | ||||||
| Institutional Shares | 1,652,313 | 29,188,950 | ||||||
| Class R6 Shares | 554 | 116,629 | ||||||
| Total | $ | 27,885,461 | $ | 46,969,170 | ||||
| Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||
| Class A Shares | 1,287,083 | 1,129,913 | ||||||
| Class C Shares | 12,762 | 37,765 | ||||||
| Institutional Shares | 81,229 | 1,864,798 | ||||||
| Class R6 Shares | 28 | 7,438 | ||||||
| Total | 1,381,102 | 3,039,914 | ||||||
| Net Asset Value | ||||||||
| Class A Shares - redemption price per share | $ | 20.19 | $ | 15.21 | ||||
| Class C Shares - offering price per share* | $ | 19.41 | $ | 12.52 | ||||
| Institutional Shares | $ | 20.34 | $ | 15.65 | ||||
| Class R6 Shares | $ | 20.40 | ** | $ | 15.68 | |||
| Maximum Sales Charge - Class A Shares | 5.75 | % | 5.75 | % | ||||
| Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares | $ | 21.42 | $ | 16.14 | ||||
| (a) Investments at cost | $ | 28,499,315 | $ | 41,210,505 | ||||
| * | Redemption price per share varies by length of time shares are held. |
| ** | Class R6 Shares of Sterling Capital Behavioral Large Cap Value Equity Fund net asset values are calculated using unrounded net assets $553.53, divided by unrounded shares of 27.13. |
See accompanying Notes to the Financial Statements.
111
Sterling Capital Behavioral Small Cap Value Equity Fund | Sterling Capital Special Opportunities Fund | Sterling Capital Equity Income Fund | Sterling Capital International Equity Fund | Sterling Capital SMID Opportunities Fund | ||||||||||||||
| $ | 35,694,747 | $ | 497,414,053 | $ | 2,015,181,709 | $ | 97,292,516 | $ | 7,228,570 | |||||||||
| 344 | — | — | — | — | ||||||||||||||
| — | — | — | 140,396 | — | ||||||||||||||
| 57,542 | 147,038 | 2,059,200 | 993,794 | 4,789 | ||||||||||||||
| 72,505 | 114,401 | 1,226,527 | — | — | ||||||||||||||
| 11,843 | 14,802 | 32,227 | 4,369 | 5,341 | ||||||||||||||
| 35,836,981 | 497,690,294 | 2,018,499,663 | 98,431,075 | 7,238,700 | ||||||||||||||
| — | 2,009,478 | 944,811 | — | — | ||||||||||||||
| 111 | 623,012 | 1,254,806 | — | — | ||||||||||||||
| 19,166 | 286,767 | 973,744 | 34,696 | 1,821 | ||||||||||||||
| 2,000 | 38,965 | 160,110 | 3,855 | 601 | ||||||||||||||
| 188 | 646 | 2,413 | 161 | 91 | ||||||||||||||
| 1,278 | 86,119 | 148,167 | 103 | 1,491 | ||||||||||||||
| 1,749 | 3,278 | 11,561 | 7,369 | 344 | ||||||||||||||
| 6,562 | 39,728 | 149,850 | 5,470 | 633 | ||||||||||||||
| 897 | 5,241 | 19,307 | 4,736 | 75 | ||||||||||||||
| 5,329 | 35,276 | 100,161 | 5,420 | 735 | ||||||||||||||
| 4,580 | 44,627 | 203,084 | 2,830 | 933 | ||||||||||||||
| 2,966 | 21,744 | 70,132 | 3,381 | 381 | ||||||||||||||
| 44,826 | 3,194,881 | 4,038,146 | 68,021 | 7,105 | ||||||||||||||
| $ | 35,792,155 | $ | 494,495,413 | $ | 2,014,461,517 | $ | 98,363,054 | $ | 7,231,595 | |||||||||
| $ | 36,225,165 | $ | 304,359,442 | $ | 1,364,452,491 | $ | 124,866,080 | $ | 5,633,053 | |||||||||
| (433,010 | ) | 190,135,971 | 650,009,026 | (26,503,026 | ) | 1,598,542 | ||||||||||||
| $ | 35,792,155 | $ | 494,495,413 | $ | 2,014,461,517 | $ | 98,363,054 | $ | 7,231,595 | |||||||||
| $ | 5,643,990 | $ | 267,479,794 | $ | 411,766,403 | $ | 307,539 | $ | 3,687,992 | |||||||||
| 29,166 | 29,566,089 | 64,899,427 | 40,731 | 672,916 | ||||||||||||||
| 9,787,878 | 168,109,768 | 1,468,387,969 | 489,330 | 2,870,687 | ||||||||||||||
| 20,331,121 | 29,339,762 | 69,407,718 | 97,525,454 | – | ||||||||||||||
| $ | 35,792,155 | $ | 494,495,413 | $ | 2,014,461,517 | $ | 98,363,054 | $ | 7,231,595 | |||||||||
| 373,368 | 11,170,213 | 16,967,127 | 43,399 | 305,386 | ||||||||||||||
| 2,035 | 1,634,541 | 2,699,782 | 5,811 | 58,303 | ||||||||||||||
| 639,992 | 6,528,881 | 60,305,753 | 69,000 | 234,364 | ||||||||||||||
| 1,327,592 | 1,141,310 | 2,848,999 | 13,743,721 | — | ||||||||||||||
| 2,342,987 | 20,474,945 | 82,821,661 | 13,861,931 | 598,053 | ||||||||||||||
| $ | 15.12 | $ | 23.95 | $ | 24.27 | $ | 7.09 | $ | 12.08 | |||||||||
| $ | 14.33 | $ | 18.09 | $ | 24.04 | $ | 7.01 | $ | 11.54 | |||||||||
| $ | 15.29 | $ | 25.75 | $ | 24.35 | $ | 7.09 | $ | 12.25 | |||||||||
| $ | 15.31 | $ | 25.71 | $ | 24.36 | $ | 7.10 | $ | — | |||||||||
| 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | |||||||||
| $ | 16.04 | $ | 25.41 | $ | 25.75 | $ | 7.52 | $ | 12.81 | |||||||||
| $ | 36,339,600 | $ | 341,437,573 | $ | 1,498,020,609 | $ | 109,838,294 | $ | 6,344,714 | |||||||||
112
| Sterling Capital Funds |
Statement of Assets and Liabilities
September 30, 2022
Sterling Capital Mid Cap Relative Value Fund | Sterling Capital Real Estate Fund | |||||||
| Assets: | ||||||||
| Investments at fair value (a) | $ | 45,195,731 | $ | 74,028,045 | ||||
| Cash | — | — | ||||||
| Interest and dividends receivable | 36,706 | 229,571 | ||||||
| Receivable for investments sold | 921,344 | 1,065,053 | ||||||
| Receivable for capital shares issued | 500 | 1,128 | ||||||
| Prepaid and other expenses | 9,672 | 13,851 | ||||||
| Total Assets | 46,163,953 | 75,337,648 | ||||||
| Liabilities: | ||||||||
| Distributions payable | — | — | ||||||
| Payable for investments purchased | 683,861 | 536,699 | ||||||
| Payable for capital shares redeemed | — | 45,168 | ||||||
| Accrued expenses and other payables: | ||||||||
| Investment advisory fees | 24,292 | 39,195 | ||||||
| Administration fees | 3,783 | 6,375 | ||||||
| Compliance service fees | 135 | 173 | ||||||
| Distribution (12b-1) fees | 87 | 268 | ||||||
| Accounting out-of-pocket fees | 662 | 774 | ||||||
| Audit fees | 3,666 | 6,222 | ||||||
| Printing fees | 3,630 | 7,007 | ||||||
| Transfer agent fees | 2,479 | 5,550 | ||||||
| Other fees and liabilities | 2,560 | 4,173 | ||||||
| Total Liabilities | 725,155 | 651,604 | ||||||
| Net Assets | $ | 45,438,798 | $ | 74,686,044 | ||||
| Net Assets Consist of: | ||||||||
| Capital | $ | 21,103,055 | $ | 45,278,887 | ||||
| Total distributable earnings | 24,335,743 | 29,407,157 | ||||||
| Net Assets | $ | 45,438,798 | $ | 74,686,044 | ||||
| Net Assets | ||||||||
| Class A Shares | $ | 380,379 | $ | 670,086 | ||||
| Class C Shares | 3,050 | 125,058 | ||||||
| Institutional Shares | 45,055,369 | 73,873,163 | ||||||
| Class R6 Shares | – | 17,737 | ||||||
| Total | $ | 45,438,798 | $ | 74,686,044 | ||||
| Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||
| Class A Shares | 6,091 | 19,222 | ||||||
| Class C Shares | 50 | 3,622 | ||||||
| Institutional Shares | 716,466 | 2,113,455 | ||||||
| Class R6 Shares | — | 505 | ||||||
| Total | 722,607 | 2,136,804 | ||||||
| Net Asset Value | ||||||||
| Class A Shares - redemption price per share | $ | 62.45 | $ | 34.86 | ||||
| Class C Shares - offering price per share* | $ | 60.48 | ** | $ | 34.53 | |||
| Institutional Shares | $ | 62.89 | $ | 34.95 | ||||
| Class R6 Shares | $ | — | $ | 35.09 | ** | |||
| 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 | $ | 66.26 | $ | 36.99 | ||||
| (a) Investments at cost | $ | 27,933,267 | $ | 49,495,843 | ||||
| * | Redemption price per share varies by length of time shares are held. |
| ** | Class C Shares of the Sterling Capital Mid Cap Relative Value Fund, and Class R6 Shares of Sterling Capital Real Estate Fund are calculated using unrounded net assets of $3,049.59, and $17,737.05, divided by the unrounded shares of 50.42, and 505.45, respectively. |
See accompanying Notes to the Financial Statements.
113
Sterling Capital 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 | ||||||||||||||
| $ | 356,716,487 | $ | 27,365,934 | $ | 104,986,776 | $ | 17,160,023 | $ | 1,071,286,782 | |||||||||
| — | — | 6,079 | — | 4 | ||||||||||||||
| 541,002 | 127,037 | 596,992 | 71,273 | 5,302,273 | ||||||||||||||
| — | — | — | — | 2,086,664 | ||||||||||||||
| 25,948 | — | 76,502 | — | 907,905 | ||||||||||||||
| 17,789 | 17,062 | 14,586 | 7,756 | 39,032 | ||||||||||||||
| 357,301,226 | 27,510,033 | 105,680,935 | 17,239,052 | 1,079,622,660 | ||||||||||||||
| — | 11,205 | 60,605 | 753 | 733,320 | ||||||||||||||
| — | — | 830,000 | 494,257 | 12,511,040 | ||||||||||||||
| 149,703 | 122,130 | 246,733 | 17,153 | 2,193,253 | ||||||||||||||
| 239,978 | — | 17,216 | 1,198 | 203,989 | ||||||||||||||
| 29,466 | 2,410 | 6,757 | 1,310 | 65,188 | ||||||||||||||
| 497 | 125 | 278 | 101 | 1,373 | ||||||||||||||
| 838 | 1,515 | 1,136 | 691 | 12,964 | ||||||||||||||
| 2,602 | 9,665 | 11,477 | 4,425 | 29,787 | ||||||||||||||
| 29,914 | 2,425 | 8,811 | 1,172 | 85,305 | ||||||||||||||
| 39,391 | 2,574 | 11,432 | 1,866 | 116,936 | ||||||||||||||
| 47,017 | 1,472 | 10,585 | 798 | 109,735 | ||||||||||||||
| 21,857 | 1,585 | 7,317 | 1,054 | 80,085 | ||||||||||||||
| 561,263 | 155,106 | 1,212,347 | 524,778 | 16,142,975 | ||||||||||||||
| $ | 356,739,963 | $ | 27,354,927 | $ | 104,468,588 | $ | 16,714,274 | $ | 1,063,479,685 | |||||||||
| $ | 64,074,234 | $ | 29,286,025 | $ | 119,978,382 | $ | 20,117,857 | $ | 1,265,522,296 | |||||||||
| 292,665,729 | (1,931,098 | ) | (15,509,794 | ) | (3,403,583 | ) | (202,042,611 | ) | ||||||||||
| $ | 356,739,963 | $ | 27,354,927 | $ | 104,468,588 | $ | 16,714,274 | $ | 1,063,479,685 | |||||||||
| $ | 2,464,389 | $ | 7,089,966 | $ | 3,664,506 | $ | 2,879,437 | $ | 47,701,342 | |||||||||
| 320,217 | — | 409,266 | 98,215 | 3,483,904 | ||||||||||||||
| 350,163,391 | 20,264,961 | 82,934,491 | 13,736,622 | 782,083,721 | ||||||||||||||
| 3,791,966 | — | 17,460,325 | — | 230,210,718 | ||||||||||||||
| $ | 356,739,963 | $ | 27,354,927 | $ | 104,468,588 | $ | 16,714,274 | $ | 1,063,479,685 | |||||||||
| 42,736 | 742,331 | 453,356 | 338,549 | 5,238,480 | ||||||||||||||
| 5,908 | — | 50,665 | 11,570 | 381,985 | ||||||||||||||
| 6,012,720 | 2,120,629 | 10,266,579 | 1,614,136 | 85,850,137 | ||||||||||||||
| 64,953 | — | 2,160,084 | — | 25,274,840 | ||||||||||||||
| 6,126,317 | 2,862,960 | 12,930,684 | 1,964,255 | 116,745,442 | ||||||||||||||
| $ | 57.67 | $ | 9.55 | $ | 8.08 | $ | 8.51 | $ | 9.11 | |||||||||
| $ | 54.20 | $ | — | $ | 8.08 | $ | 8.49 | $ | 9.12 | |||||||||
| $ | 58.24 | $ | 9.56 | $ | 8.08 | $ | 8.51 | $ | 9.11 | |||||||||
| $ | 58.38 | $ | — | $ | 8.08 | $ | — | $ | 9.11 | |||||||||
| 5.75 | % | 0.50 | % | 2.00 | % | 2.00 | % | 5.75 | % | |||||||||
| $ | 61.18 | $ | 9.60 | $ | 8.25 | $ | 8.68 | $ | 9.66 | |||||||||
| $ | 139,272,349 | $ | 28,026,237 | $ | 110,268,977 | $ | 18,955,296 | $ | 1,215,273,036 | |||||||||
114
| Sterling Capital Funds |
Statement of Assets and Liabilities
September 30, 2022
Sterling Capital Long Duration Corporate Bond Fund | Sterling Capital Quality Income Fund | |||||||
| Assets: | ||||||||
| Investments at fair value (a) | $ | 22,770,022 | $ | 78,619,520 | ||||
| Interest and dividends receivable | 317,730 | 204,568 | ||||||
| Receivable for capital shares issued | — | 33,957 | ||||||
| Prepaid and other expenses | 18,386 | 9,484 | ||||||
| Total Assets | 23,106,138 | 78,867,529 | ||||||
| Liabilities: | ||||||||
| Distributions payable | 298 | 80,738 | ||||||
| Payable for investments purchased | — | 441,249 | ||||||
| Payable for capital shares redeemed | 59 | 5,252 | ||||||
| Accrued expenses and other payables: | ||||||||
| Investment advisory fees | — | 20,166 | ||||||
| Administration fees | 127 | 6,151 | ||||||
| Compliance service fees | 111 | 171 | ||||||
| Distribution (12b-1) fees | 96 | 8 | ||||||
| Accounting out-of-pocket fees | 13,119 | 13,611 | ||||||
| Audit fees | 1,310 | 4,773 | ||||||
| Printing fees | 1,570 | 3,055 | ||||||
| Other fees and liabilities | 2,078 | 5,963 | ||||||
| Total Liabilities | 18,768 | 581,137 | ||||||
| Net Assets | $ | 23,087,370 | $ | 78,286,392 | ||||
| Net Assets Consist of: | ||||||||
| Capital | $ | 31,936,765 | $ | 89,747,475 | ||||
| Total distributable earnings | (8,849,395 | ) | (11,461,083 | ) | ||||
| Net Assets | $ | 23,087,370 | $ | 78,286,392 | ||||
| Net Assets | ||||||||
| Class A Shares | $ | 435,519 | $ | 32,010 | ||||
| Class C Shares | 2,497 | 2,867 | ||||||
| Institutional Shares | 96,582 | 78,251,515 | ||||||
| Class R6 Shares | 22,552,772 | – | ||||||
| Total | $ | 23,087,370 | $ | 78,286,392 | ||||
| Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||
| Class A Shares | 65,731 | 3,644 | ||||||
| Class C Shares | 378 | 327 | ||||||
| Institutional Shares | 14,576 | 8,900,589 | ||||||
| Class R6 Shares | 3,403,287 | — | ||||||
| Total | 3,483,972 | 8,904,560 | ||||||
| Net Asset Value | ||||||||
| Class A Shares - redemption price per share | $ | 6.63 | $ | 8.78 | ||||
| Class C Shares - offering price per share* | $ | 6.61 | $ | 8.78 | ** | |||
| Institutional Shares | $ | 6.63 | $ | 8.79 | ||||
| Class R6 Shares | $ | 6.63 | $ | — | ||||
| 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 | $ | 6.76 | $ | 8.96 | ||||
| (a) Investments at cost | $ | 31,003,084 | $ | 87,415,731 | ||||
| * | Redemption price per share varies by length of time shares are held. |
| ** | Class C Shares of Sterling Capital Quality Income Fund net asset values are calculated using unrounded net assets $2,867.04, divided by unrounded shares of 326.55. |
See accompanying Notes to the Financial Statements.
115
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 | |||||||||||
| $ | 150,468,288 | $ | 41,261,428 | $ | 82,567,248 | $ | 86,290,023 | |||||||
| 2,023,500 | 538,709 | 978,128 | 1,290,140 | |||||||||||
| 400,070 | 9,000 | 18 | 65,503 | |||||||||||
| 17,248 | 7,562 | 9,134 | 14,129 | |||||||||||
| 152,909,106 | 41,816,699 | 83,554,528 | 87,659,795 | |||||||||||
| 111,981 | 37,100 | 100,120 | 113,130 | |||||||||||
| — | — | 2,248,504 | 272,559 | |||||||||||
| 136,818 | 30,154 | 4,373 | 66,746 | |||||||||||
| 45,268 | 12,753 | 23,857 | 25,548 | |||||||||||
| 12,132 | 3,386 | 6,408 | 6,854 | |||||||||||
| 264 | 142 | 175 | 182 | |||||||||||
| 6,043 | 1,755 | 2,956 | 5,005 | |||||||||||
| 6,752 | 4,324 | 3,706 | 4,584 | |||||||||||
| 10,968 | 4,110 | 5,173 | 5,915 | |||||||||||
| 14,271 | 6,696 | 6,560 | 7,726 | |||||||||||
| 19,863 | 6,221 | 8,050 | 8,110 | |||||||||||
| 364,360 | 106,641 | 2,409,882 | 516,359 | |||||||||||
| $ | 152,544,746 | $ | 41,710,058 | $ | 81,144,646 | $ | 87,143,436 | |||||||
| $ | 162,478,673 | $ | 44,089,632 | $ | 85,379,037 | $ | 92,430,731 | |||||||
| (9,933,927 | ) | (2,379,574 | ) | (4,234,391 | ) | (5,287,295 | ) | |||||||
| $ | 152,544,746 | $ | 41,710,058 | $ | 81,144,646 | $ | 87,143,436 | |||||||
| $ | 24,664,488 | $ | 7,056,177 | $ | 14,161,746 | $ | 23,828,536 | |||||||
| 1,141,456 | 340,444 | 16,121 | 22,718 | |||||||||||
| 126,738,802 | 34,313,437 | 66,966,779 | 63,292,182 | |||||||||||
| — | — | — | — | |||||||||||
| $ | 152,544,746 | $ | 41,710,058 | $ | 81,144,646 | $ | 87,143,436 | |||||||
| 2,507,776 | 688,889 | 1,314,918 | 2,583,683 | |||||||||||
| 116,145 | 33,252 | 1,497 | 2,464 | |||||||||||
| 12,888,622 | 3,373,031 | 6,219,862 | 6,856,352 | |||||||||||
| — | — | — | — | |||||||||||
| 15,512,543 | 4,095,172 | 7,536,277 | 9,442,499 | |||||||||||
| $ | 9.84 | $ | 10.24 | $ | 10.77 | $ | 9.22 | |||||||
| $ | 9.83 | $ | 10.24 | $ | 10.77 | $ | 9.22 | |||||||
| $ | 9.83 | $ | 10.17 | $ | 10.77 | $ | 9.23 | |||||||
| $ | — | $ | — | $ | — | $ | — | |||||||
| 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | |||||||
| $ | 10.04 | $ | 10.45 | $ | 10.99 | $ | 9.41 | |||||||
| $ | 156,288,639 | $ | 43,185,676 | $ | 85,598,625 | $ | 90,637,469 | |||||||
116
| Sterling Capital Funds |
Statements of Operations
For the Year Ended September 30, 2022
Sterling Capital Behavioral Large Cap Value Equity Fund | Sterling Capital Mid Value Fund | |||||||
| Investment Income: | ||||||||
| Dividend income | $ | 896,580 | $ | 807,865 | ||||
| Foreign tax withholding | (420 | ) | (164 | ) | ||||
| Total investment income | 896,160 | 807,701 | ||||||
| Expenses: | ||||||||
| Investment advisory fees (See Note 4) | 150,370 | 396,312 | ||||||
| Administration fees (See Note 4) | 30,241 | 59,617 | ||||||
| Distribution fees - Class A Shares (See Note 4) | 77,718 | 55,596 | ||||||
| Distribution fees - Class C Shares (See Note 4) | 3,030 | 7,604 | ||||||
| Compliance service fees (See Note 4) | 911 | 1,313 | ||||||
| Trustee fees | 4,315 | 8,678 | ||||||
| Accounting and out-of-pocket fees | 3,142 | 3,138 | ||||||
| Audit fees | 2,359 | 4,336 | ||||||
| Custodian fees | 1,810 | 3,282 | ||||||
| Fund accounting fees (See Note 4) | 2,506 | 4,954 | ||||||
| Interest expense (See Note 8) | — | — | ||||||
| Legal fees | 5,270 | 10,916 | ||||||
| Printing fees | 3,827 | 8,548 | ||||||
| Registration fees | 35,067 | 35,661 | ||||||
| Transfer agent fees (See Note 4) | 13,686 | 37,548 | ||||||
| Other fees | 6,745 | 9,947 | ||||||
| Total expenses before waivers | 340,997 | 647,450 | ||||||
| Less expenses waived by the Investment Advisor (See Note 4) | (10,555 | ) | — | |||||
| Less expenses waived by the Administrator (See Note 4) | — | (211 | ) | |||||
| Net expenses | 330,442 | 647,239 | ||||||
| Net investment income (loss) | 565,718 | 160,462 | ||||||
| Realized and Unrealized Gain (Loss): | ||||||||
| Net realized gain (loss) from: | ||||||||
| Investments | 2,611,731 | 9,493,174 | ||||||
| In-kind redemptions | — | — | ||||||
| Foreign currency transactions | — | — | ||||||
| Change in unrealized appreciation/depreciation on: | ||||||||
| Investments | (6,173,918 | ) | (19,290,537 | ) | ||||
| Foreign currency transactions | — | — | ||||||
| Total realized and unrealized (loss) | (3,562,187 | ) | (9,797,363 | ) | ||||
| Change in net assets from operations | $ | (2,996,469 | ) | $ | (9,636,901 | ) | ||
See accompanying Notes to the Financial Statements.
117
Sterling Capital Behavioral Small Cap Value Equity Fund | Sterling Capital Special Opportunities Fund | Sterling Capital Equity Income Fund | Sterling Capital Behavioral International Equity Fund | Sterling Capital SMID Opportunities Fund | ||||||||||||||
| $ | 1,975,291 | $ | 4,364,539 | $ | 54,429,291 | $ | 4,698,368 | $ | 96,603 | |||||||||
| (5,142 | ) | (70,415 | ) | (158,191 | ) | (435,569 | ) | (1,034 | ) | |||||||||
| 1,970,149 | 4,294,124 | 54,271,100 | 4,262,799 | 95,569 | ||||||||||||||
| 611,166 | 4,002,316 | 12,784,574 | 339,021 | 68,679 | ||||||||||||||
| 91,958 | 556,488 | 2,104,083 | 76,781 | 8,856 | ||||||||||||||
| 17,805 | 827,191 | 1,167,522 | 1,070 | 11,525 | ||||||||||||||
| 398 | 433,471 | 784,428 | 509 | 11,990 | ||||||||||||||
| 1,806 | 8,056 | 29,222 | 1,511 | 620 | ||||||||||||||
| 14,097 | 80,253 | 294,383 | 10,639 | 1,314 | ||||||||||||||
| 6,633 | 17,461 | 60,666 | 20,685 | 1,826 | ||||||||||||||
| 6,674 | 40,680 | 151,885 | 5,556 | 646 | ||||||||||||||
| 5,333 | 32,222 | 120,189 | 32,941 | 494 | ||||||||||||||
| 7,640 | 46,181 | 174,335 | 6,357 | 736 | ||||||||||||||
| 1,083 | 1,089 | — | — | — | ||||||||||||||
| 17,604 | 98,691 | 364,503 | 13,022 | 1,621 | ||||||||||||||
| 11,949 | 73,727 | 265,110 | 9,620 | 1,330 | ||||||||||||||
| 30,772 | 55,827 | 91,505 | 9,482 | 12,996 | ||||||||||||||
| 32,345 | 374,199 | 1,712,924 | 16,136 | 7,582 | ||||||||||||||
| 13,943 | 60,828 | 196,320 | 23,735 | 3,935 | ||||||||||||||
| 871,206 | 6,708,680 | 20,301,649 | 567,065 | 134,150 | ||||||||||||||
| — | — | — | (9 | ) | (33,125 | ) | ||||||||||||
| (40,160 | ) | (30,200 | ) | (72,065 | ) | (41,827 | ) | — | ||||||||||
| 831,046 | 6,678,480 | 20,229,584 | 525,229 | 101,025 | ||||||||||||||
| 1,139,103 | (2,384,356 | ) | 34,041,516 | 3,737,570 | (5,456 | ) | ||||||||||||
| 8,285,624 | 42,334,321 | 167,909,932 | (8,328,762 | ) | 868,503 | |||||||||||||
| 8,534,347 | — | — | — | — | ||||||||||||||
| — | — | — | (95,707 | ) | — | |||||||||||||
| (24,041,910 | ) | (156,233,127 | ) | (317,324,225 | ) | (19,765,948 | ) | (2,529,581 | ) | |||||||||
| — | — | — | (58,813 | ) | — | |||||||||||||
| (7,221,939 | ) | (113,898,806 | ) | (149,414,293 | ) | (28,249,230 | ) | (1,661,078 | ) | |||||||||
| $ | (6,082,836 | ) | $ | (116,283,162 | ) | $ | (115,372,777 | ) | $ | (24,511,660 | ) | $ | (1,666,534 | ) | ||||
118
| Sterling Capital Funds |
Statements of Operations
For the Year Ended September 30, 2022
Sterling Capital Mid Cap Relative Value Fund | Sterling Capital Real Estate Fund | |||||||
| Investment Income: | ||||||||
| Interest income | $ | — | $ | 7,691 | ||||
| Dividend income | 924,129 | 1,656,769 | ||||||
| Foreign tax withholding | (4,593 | ) | — | |||||
| Total investment income | 919,536 | 1,664,460 | ||||||
| Expenses: | ||||||||
| Investment advisory fees (See Note 4) | 340,866 | 554,261 | ||||||
| Administration fees (See Note 4) | 51,313 | 87,166 | ||||||
| Distribution fees - Class A Shares (See Note 4) | 1,068 | 1,938 | ||||||
| Distribution fees - Class C Shares (See Note 4) | 34 | 1,798 | ||||||
| Compliance service fees (See Note 4) | 1,197 | 1,684 | ||||||
| Trustee fees | 7,422 | 12,458 | ||||||
| Accounting and out-of-pocket fees | 3,022 | 4,220 | ||||||
| Audit fees | 3,726 | 6,316 | ||||||
| Custodian fees | 2,881 | 5,004 | ||||||
| Fund accounting fees (See Note 4) | 4,261 | 7,230 | ||||||
| Interest expense (See Note 8) | — | 3 | ||||||
| Legal fees | 9,148 | 15,372 | ||||||
| Printing fees | 7,251 | 12,045 | ||||||
| Registration fees | 20,007 | 26,417 | ||||||
| Transfer agent fees (See Note 4) | 18,856 | 46,638 | ||||||
| Other fees | 8,297 | 11,773 | ||||||
| Total expenses before waivers | 479,349 | 794,323 | ||||||
| Less expenses waived by the Investment Advisor (See Note 4) | — | — | ||||||
| Less expenses waived by the Administrator (See Note 4) | — | (17 | ) | |||||
| Net expenses | 479,349 | 794,306 | ||||||
| Net investment income | 440,187 | 870,154 | ||||||
| Realized and Unrealized Gain (Loss): | ||||||||
| Net realized gain (loss) from: | ||||||||
| Investments | 7,317,042 | 5,415,357 | ||||||
| Change in unrealized appreciation/depreciation on: | ||||||||
| Investments | (14,324,669 | ) | (23,147,437 | ) | ||||
| Total realized and unrealized (loss) | (7,007,627 | ) | (17,732,080 | ) | ||||
| Change in net assets from operations | $ | (6,567,440 | ) | $ | (16,861,926 | ) | ||
See accompanying Notes to the Financial Statements.
119
Sterling Capital 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 | ||||||||||||||
| $ | 615 | $ | 513,679 | $ | 2,251,546 | $ | 286,962 | $ | 32,131,221 | |||||||||
| 6,380,235 | 5,345 | — | 3,876 | 74,898 | ||||||||||||||
| — | — | — | — | — | ||||||||||||||
| 6,380,850 | 519,024 | 2,251,546 | 290,838 | 32,206,119 | ||||||||||||||
| 3,477,670 | 75,283 | 273,562 | 58,185 | 3,307,648 | ||||||||||||||
| 418,653 | 34,070 | 123,482 | 16,452 | 1,194,756 | ||||||||||||||
| 8,175 | 19,839 | 9,742 | 7,579 | 136,437 | ||||||||||||||
| 4,132 | — | 7,446 | 1,096 | 44,982 | ||||||||||||||
| 6,183 | 975 | 2,261 | 725 | 16,821 | ||||||||||||||
| 60,320 | 4,784 | 18,822 | 2,357 | 175,674 | ||||||||||||||
| 14,704 | 25,773 | 27,117 | 14,471 | 98,990 | ||||||||||||||
| 31,001 | 2,453 | 8,986 | 1,187 | 87,022 | ||||||||||||||
| 23,478 | 2,000 | 7,201 | 928 | 67,420 | ||||||||||||||
| 34,777 | 2,823 | 10,259 | 1,364 | 99,230 | ||||||||||||||
| 2,181 | — | 5,138 | 3 | 2,890 | ||||||||||||||
| 74,256 | 5,852 | 22,957 | 2,787 | 213,791 | ||||||||||||||
| 58,551 | 4,312 | 17,745 | 2,421 | 174,486 | ||||||||||||||
| 35,035 | 15,569 | 41,518 | 11,098 | 76,460 | ||||||||||||||
| 350,894 | 9,357 | 70,264 | 5,668 | 757,885 | ||||||||||||||
| 48,687 | 4,890 | 18,931 | 4,232 | 141,067 | ||||||||||||||
| 4,648,697 | 207,980 | 665,431 | 130,553 | 6,595,559 | ||||||||||||||
| — | (86,509 | ) | — | (34,767 | ) | (457,481 | ) | |||||||||||
| (4,550 | ) | — | (18,363 | ) | — | (293,627 | ) | |||||||||||
| 4,644,147 | 121,471 | 647,068 | 95,786 | 5,844,451 | ||||||||||||||
| 1,736,703 | 397,553 | 1,604,478 | 195,052 | 26,361,668 | ||||||||||||||
| 84,129,501 | (128,185 | ) | (1,142,255 | ) | (161,313 | ) | (48,317,061 | ) | ||||||||||
| (139,878,030 | ) | (613,903 | ) | (6,544,910 | ) | (2,125,140 | ) | (183,707,125 | ) | |||||||||
| (55,748,529 | ) | (742,088 | ) | (7,687,165 | ) | (2,286,453 | ) | (232,024,186 | ) | |||||||||
| $ | (54,011,826 | ) | $ | (344,535 | ) | $ | (6,082,687 | ) | $ | (2,091,401 | ) | $ | (205,662,518 | ) | ||||
120
| Sterling Capital Funds |
Statements of Operations
For the Year Ended September 30, 2022
Sterling Capital Long Duration Corporate Bond Fund | Sterling Capital Quality Income Fund | |||||||
| Investment Income: | ||||||||
| Interest income | $ | 806,691 | $ | 1,703,721 | ||||
| Dividend income | 1,399 | 6 | ||||||
| Total investment income | 808,090 | 1,703,727 | ||||||
| Expenses: | ||||||||
| Investment advisory fees (See Note 4) | 52,724 | 259,540 | ||||||
| Administration fees (See Note 4) | 18,570 | 67,435 | ||||||
| Distribution fees - Class A Shares (See Note 4) | 1,335 | 83 | ||||||
| Distribution fees - Class C Shares (See Note 4) | 95 | 34 | ||||||
| Compliance service fees (See Note 4) | 759 | 1,429 | ||||||
| Trustee fees | 2,347 | 9,247 | ||||||
| Accounting and out-of-pocket fees | 21,145 | 43,207 | ||||||
| Audit fees | 1,330 | 4,814 | ||||||
| Custodian fees | 1,162 | 4,090 | ||||||
| Fund accounting fees (See Note 4) | 1,519 | 5,562 | ||||||
| Legal fees | 2,769 | 11,293 | ||||||
| Printing fees | 2,434 | 7,190 | ||||||
| Registration fees | 9,975 | 15,994 | ||||||
| Transfer agent fees (See Note 4) | 5,034 | 16,028 | ||||||
| Other fees | 4,377 | 7,672 | ||||||
| Total expenses before waivers | 125,575 | 453,618 | ||||||
| Less expenses waived by the Investment Advisor (See Note 4) | (27,117 | ) | (29,662 | ) | ||||
| Less expenses waived by the Administrator (See Note 4) | (14,830 | ) | — | |||||
| Net expenses | 83,628 | 423,956 | ||||||
| Net investment income | 724,462 | 1,279,771 | ||||||
| Realized and Unrealized Gain (Loss): | ||||||||
| Net realized gain (loss) from: | ||||||||
| Investments | (589,254 | ) | (464,475 | ) | ||||
| Change in unrealized appreciation/depreciation on: | ||||||||
| Investments | (8,498,946 | ) | (9,405,234 | ) | ||||
| Total realized and unrealized (loss) | (9,088,200 | ) | (9,869,709 | ) | ||||
| Change in net assets from operations | $ | (8,363,738 | ) | $ | (8,589,938 | ) | ||
See accompanying Notes to the Financial Statements.
121
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 | |||||||||||
| $ | 3,915,591 | $ | 1,577,502 | $ | 1,785,650 | $ | 2,151,687 | |||||||
| 47,143 | 4,697 | 20,197 | 31,869 | |||||||||||
| 3,962,734 | 1,582,199 | 1,805,847 | 2,183,556 | |||||||||||
| 595,510 | 223,025 | 281,053 | 321,305 | |||||||||||
| 153,918 | 57,404 | 72,800 | 83,105 | |||||||||||
| 73,170 | 22,386 | 38,851 | 61,518 | |||||||||||
| 12,205 | 4,531 | 282 | 240 | |||||||||||
| 2,608 | 1,290 | 1,496 | 1,633 | |||||||||||
| 22,279 | 8,774 | 10,249 | 11,631 | |||||||||||
| 21,532 | 14,263 | 12,380 | 16,697 | |||||||||||
| 11,149 | 4,193 | 5,253 | 6,005 | |||||||||||
| 8,679 | 3,218 | 4,097 | 4,670 | |||||||||||
| 12,761 | 4,779 | 6,022 | 6,885 | |||||||||||
| 29,498 | 10,555 | 12,306 | 14,282 | |||||||||||
| 20,391 | 8,447 | 9,421 | 10,922 | |||||||||||
| 13,917 | 12,417 | 16,279 | 16,282 | |||||||||||
| 56,841 | 21,149 | 24,571 | 23,639 | |||||||||||
| 18,355 | 9,451 | 9,581 | 10,756 | |||||||||||
| 1,052,813 | 405,882 | 504,641 | 589,570 | |||||||||||
| — | — | — | — | |||||||||||
| — | — | — | — | |||||||||||
| 1,052,813 | 405,882 | 504,641 | 589,570 | |||||||||||
| 2,909,921 | 1,176,317 | 1,301,206 | 1,593,986 | |||||||||||
| (3,925,912 | ) | (439,370 | ) | (1,266,182 | ) | (1,020,923 | ) | |||||||
| (14,152,072 | ) | (6,014,907 | ) | (6,989,773 | ) | (8,383,049 | ) | |||||||
| (18,077,984 | ) | (6,454,277 | ) | (8,255,955 | ) | (9,403,972 | ) | |||||||
| $ | (15,168,063 | ) | $ | (5,277,960 | ) | $ | (6,954,749 | ) | $ | (7,809,986 | ) | |||
122
| Sterling Capital Funds |
Statements of Changes in Net Assets
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||
| From Investment Activities: | ||||||||
| Operations: | ||||||||
| Net investment income (loss) | $ | 565,718 | $ | 54,374 | ||||
| Net realized gain | 2,611,731 | 6,135,151 | ||||||
| Change in unrealized appreciation/depreciation | (6,173,918 | ) | 3,545,183 | |||||
| Change in net assets from operations | (2,996,469 | ) | 9,734,708 | |||||
| Distributions to Shareholders: | ||||||||
| Income distribution: | ||||||||
| Class A | (476,471 | ) | (60,964 | ) | ||||
| Class C | (2,568 | ) | (690 | ) | ||||
| Institutional Class | (39,354 | ) | (4,573 | ) | ||||
| Class R | – | – | ||||||
| Class R6 | (13 | ) | (1 | ) | ||||
| Return of Capital: | ||||||||
| Class A | – | (235,786 | ) | |||||
| Class C | – | (2,670 | ) | |||||
| Institutional Class | – | (17,684 | ) | |||||
| Class R6 | – | (4 | ) | |||||
| Change in net assets from shareholder distributions | (518,406 | ) | (322,372 | ) | ||||
| Capital Transactions: | ||||||||
| Change in net assets from capital transactions (See Note 5) | (1,797,076 | ) | (3,228,795 | ) | ||||
| Change in net assets | (5,311,951 | ) | 6,183,541 | |||||
| Net Assets: | ||||||||
| Beginning of year | 33,197,412 | 27,013,871 | ||||||
| End of year | $ | 27,885,461 | $ | 33,197,412 | ||||
See accompanying Notes to the Financial Statements.
123
| Sterling Capital Mid Value Fund | Sterling Capital Behavioral Small Cap Value Equity Fund | Sterling Capital Special Opportunities Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||||||||||||
| $ | 160,462 | $ | 59,197 | $ | 1,139,103 | $ | 1,124,136 | $ | (2,384,356 | ) | $ | (2,084,186 | ) | |||||||||
| 9,493,174 | 8,240,216 | 16,819,971 | 32,538,116 | 42,334,321 | 93,006,573 | |||||||||||||||||
| (19,290,537 | ) | 17,753,584 | (24,041,910 | ) | 19,414,311 | (156,233,127 | ) | 101,866,100 | ||||||||||||||
| (9,636,901 | ) | 26,052,997 | (6,082,836 | ) | 53,076,563 | (116,283,162 | ) | 192,788,487 | ||||||||||||||
| (1,874,485 | ) | (43,324 | ) | (699,909 | ) | (40,840 | ) | (43,211,898 | ) | (3,637,292 | ) | |||||||||||
| (83,961 | ) | – | (3,471 | ) | – | (7,853,006 | ) | (940,187 | ) | |||||||||||||
| (4,044,300 | ) | (185,412 | ) | (1,366,695 | ) | (73,763 | ) | (24,533,645 | ) | (2,285,619 | ) | |||||||||||
| – | (2 | ) | – | (1,097 | ) | – | (14 | ) | ||||||||||||||
| (24,626 | ) | (14,498 | ) | (8,845,595 | ) | (851,534 | ) | (5,075,978 | ) | (713,339 | ) | |||||||||||
| – | – | – | – | – | – | |||||||||||||||||
| – | – | – | – | – | – | |||||||||||||||||
| – | – | – | – | – | – | |||||||||||||||||
| – | – | – | – | – | – | |||||||||||||||||
| (6,027,372 | ) | (243,236 | ) | (10,915,670 | ) | (967,234 | ) | (80,674,527 | ) | (7,576,451 | ) | |||||||||||
| (13,905,347 | ) | (10,023,315 | ) | (53,178,549 | ) | (28,556,308 | ) | 22,803,338 | (64,806,980 | ) | ||||||||||||
| (29,569,620 | ) | 15,786,446 | (70,177,055 | ) | 23,553,021 | (174,154,351 | ) | 120,405,056 | ||||||||||||||
| 76,538,790 | 60,752,344 | 105,969,210 | 82,416,189 | 668,649,764 | 548,244,708 | |||||||||||||||||
| $ | 46,969,170 | $ | 76,538,790 | $ | 35,792,155 | $ | 105,969,210 | $ | 494,495,413 | $ | 668,649,764 | |||||||||||
124
| Sterling Capital Funds |
Statements of Changes in Net Assets
| Sterling Capital Equity Income Fund | ||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||
| From Investment Activities: | ||||||||
| Operations: | ||||||||
| Net investment income (loss) | $ | 34,041,516 | $ | 26,102,289 | ||||
| Net realized gain (loss) | 167,909,932 | 85,341,060 | ||||||
| Change in unrealized appreciation/depreciation | (317,324,225 | ) | 436,564,630 | |||||
| Change in net assets from operations | (115,372,777 | ) | 548,007,979 | |||||
| Distributions to Shareholders: | ||||||||
| Income distribution: | ||||||||
| Class A | (14,200,798 | ) | (4,952,072 | ) | ||||
| Class C | (1,831,748 | ) | (309,538 | ) | ||||
| Institutional Class | (56,490,711 | ) | (20,357,408 | ) | ||||
| Class R | – | (16,774 | ) | |||||
| Class R6 | (2,396,776 | ) | (964,112 | ) | ||||
| Change in net assets from shareholder distributions | (74,920,033 | ) | (26,599,904 | ) | ||||
| Capital Transactions: | ||||||||
| Change in net assets from capital transactions (See Note 5) | (30,597,835 | ) | 158,467,099 | |||||
| Change in net assets | (220,890,645 | ) | 679,875,174 | |||||
| Net Assets: | ||||||||
| Beginning of year | 2,235,352,162 | 1,555,476,988 | ||||||
| End of year | $ | 2,014,461,517 | $ | 2,235,352,162 | ||||
See accompanying Notes to the Financial Statements.
125
| Sterling Capital Behavioral International Equity Fund | Sterling Capital SMID Opportunities Fund | Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||||||||||||
| $ | 3,737,570 | $ | 2,553,424 | $ | (5,456 | ) | $ | (50,354 | ) | $ | 440,187 | $ | 386,418 | |||||||||
| (8,424,469 | ) | 17,190,461 | 868,503 | 2,193,078 | 7,317,042 | 5,465,650 | ||||||||||||||||
| (19,824,761 | ) | (1,076,370 | ) | (2,529,581 | ) | 1,003,701 | (14,324,669 | ) | 12,463,051 | |||||||||||||
| (24,511,660 | ) | 18,667,515 | (1,666,534 | ) | 3,146,425 | (6,567,440 | ) | 18,315,119 | ||||||||||||||
| (20,546 | ) | (12,833 | ) | (427,285 | ) | – | (30,339 | ) | (2,010 | ) | ||||||||||||
| (2,002 | ) | (891 | ) | (133,622 | ) | – | (250 | ) | (5 | ) | ||||||||||||
| (31,374 | ) | (350,947 | ) | (389,794 | ) | – | (4,998,468 | ) | (508,411 | ) | ||||||||||||
| – | – | – | – | – | – | |||||||||||||||||
| (4,003,413 | ) | (2,082,632 | ) | – | – | – | – | |||||||||||||||
| (4,057,335 | ) | (2,447,303 | ) | (950,701 | ) | – | (5,029,057 | ) | (510,426 | ) | ||||||||||||
| 39,989,968 | (12,654,797 | ) | (1,350,340 | ) | (2,981,186 | ) | (8,839,376 | ) | (5,923,182 | ) | ||||||||||||
| 11,420,973 | 3,565,415 | (3,967,575 | ) | 165,239 | (20,435,873 | ) | 11,881,511 | |||||||||||||||
| 86,942,081 | 83,376,666 | 11,199,170 | 11,033,931 | 65,874,671 | 53,993,160 | |||||||||||||||||
| $ | 98,363,054 | $ | 86,942,081 | $ | 7,231,595 | $ | 11,199,170 | $ | 45,438,798 | $ | 65,874,671 | |||||||||||
126
| Sterling Capital Funds |
Statements of Changes in Net Assets
| Sterling Capital Real Estate Fund | ||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||
| From Investment Activities: | ||||||||
| Operations: | ||||||||
| Net investment income | $ | 870,154 | $ | 983,024 | ||||
| Net realized gain (loss) | 5,415,357 | 7,216,823 | ||||||
| Change in unrealized appreciation/depreciation | (23,147,437 | ) | 18,097,538 | |||||
| Change in net assets from operations | (16,861,926 | ) | 26,297,385 | |||||
| Distributions to Shareholders: | ||||||||
| Income distribution: | ||||||||
| Class A | (53,913 | ) | (20,780 | ) | ||||
| Class C | (12,662 | ) | (4,951 | ) | ||||
| Institutional Class | (7,579,099 | ) | (3,204,299 | ) | ||||
| Class R6 | (1,363 | ) | (250 | ) | ||||
| Change in net assets from shareholder distributions | (7,647,037 | ) | (3,230,280 | ) | ||||
| Capital Transactions: | ||||||||
| Change in net assets from capital transactions (See Note 5) | 2,203,071 | (11,947,772 | ) | |||||
| Change in net assets | (22,305,892 | ) | 11,119,333 | |||||
| Net Assets: | ||||||||
| Beginning of year | 96,991,936 | 85,872,603 | ||||||
| End of year | $ | 74,686,044 | $ | 96,991,936 | ||||
See accompanying Notes to the Financial Statements.
127
| Sterling Capital Small Cap Value Fund | Sterling Capital Ultra Short Bond Fund | |||||||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||||||
| $ | 1,736,703 | $ | 1,165,214 | $ | 397,553 | $ | 341,915 | |||||||
| 84,129,501 | 130,272,724 | (128,185 | ) | 34,840 | ||||||||||
| (139,878,030 | ) | 89,329,899 | (613,903 | ) | (130,731 | ) | ||||||||
| (54,011,826 | ) | 220,767,837 | (344,535 | ) | 246,024 | |||||||||
| (718,382 | ) | (354,284 | ) | (94,279 | ) | (46,478 | ) | |||||||
| (95,212 | ) | (42,126 | ) | – | – | |||||||||
| (104,869,046 | ) | (74,924,280 | ) | (423,309 | ) | (355,057 | ) | |||||||
| (981,746 | ) | (527,073 | ) | – | – | |||||||||
| (106,664,386 | ) | (75,847,763 | ) | (517,588 | ) | (401,535 | ) | |||||||
| (4,107,586 | ) | (104,186,325 | ) | (11,494,089 | ) | 3,492,017 | ||||||||
| (164,783,798 | ) | 40,733,749 | (12,356,212 | ) | 3,336,506 | |||||||||
| 521,523,761 | 480,790,012 | 39,711,139 | 36,374,633 | |||||||||||
| $ | 356,739,963 | $ | 521,523,761 | $ | 27,354,927 | $ | 39,711,139 | |||||||
128
| Sterling Capital Funds |
Statements of Changes in Net Assets
| Sterling Capital Short Duration Bond Fund | ||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||
| From Investment Activities: | ||||||||
| Operations: | ||||||||
| Net investment income | $ | 1,604,478 | $ | 2,681,143 | ||||
| Net realized gain (loss) | (1,142,255 | ) | 1,276,704 | |||||
| Change in unrealized appreciation/depreciation | (6,544,910 | ) | (1,665,303 | ) | ||||
| Change in net assets from operations | (6,082,687 | ) | 2,292,544 | |||||
| Distributions to Shareholders: | ||||||||
| Income distribution: | ||||||||
| Class A | (77,983 | ) | (92,276 | ) | ||||
| Class C | (9,133 | ) | (10,952 | ) | ||||
| Institutional Class | (2,495,380 | ) | (4,334,091 | ) | ||||
| Class R | – | – | ||||||
| Class R6 | (474,774 | ) | (14,207 | ) | ||||
| Change in net assets from shareholder distributions | (3,057,270 | ) | (4,451,526 | ) | ||||
| Capital Transactions: | ||||||||
| Change in net assets from capital transactions (See Note 5) | (83,167,834 | ) | 18,891,274 | |||||
| Change in net assets | (92,307,791 | ) | 16,732,292 | |||||
| Net Assets: | ||||||||
| Beginning of year | 196,776,379 | 180,044,087 | ||||||
| End of year | $ | 104,468,588 | $ | 196,776,379 | ||||
See accompanying Notes to the Financial Statements.
129
| Sterling Capital Intermediate U.S. Government Fund | Sterling Capital Total Return Bond Fund | |||||||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||||||
| $ | 195,052 | $ | 179,475 | $ | 26,361,668 | $ | 29,938,493 | |||||||
| (161,313 | ) | 80,124 | (48,317,061 | ) | 31,959,205 | |||||||||
| (2,125,140 | ) | (458,605 | ) | (183,707,125 | ) | (53,496,254 | ) | |||||||
| (2,091,401 | ) | (199,006 | ) | (205,662,518 | ) | 8,401,444 | ||||||||
| (64,077 | ) | (82,287 | ) | (1,679,055 | ) | (2,073,169 | ) | |||||||
| (1,493 | ) | (2,891 | ) | (106,188 | ) | (206,565 | ) | |||||||
| (355,581 | ) | (441,390 | ) | (32,571,476 | ) | (40,602,235 | ) | |||||||
| – | – | – | (1,056 | ) | ||||||||||
| – | – | (10,158,386 | ) | (20,737,575 | ) | |||||||||
| (421,151 | ) | (526,568 | ) | (44,515,105 | ) | (63,620,600 | ) | |||||||
| (557,502 | ) | 8,222,356 | (240,397,279 | ) | (150,525,821 | ) | ||||||||
| (3,070,054 | ) | 7,496,782 | (490,574,902 | ) | (205,744,977 | ) | ||||||||
| 19,784,328 | 12,287,546 | 1,554,054,587 | 1,759,799,564 | |||||||||||
| $ | 16,714,274 | $ | 19,784,328 | $ | 1,063,479,685 | $ | 1,554,054,587 | |||||||
130
| Sterling Capital Funds |
Statements of Changes in Net Assets
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||
| From Investment Activities: | ||||||||
| Operations: | ||||||||
| Net investment income | $ | 724,462 | $ | 267,601 | ||||
| Net realized gain (loss) | (589,254 | ) | 933,969 | |||||
| Change in unrealized appreciation/depreciation | (8,498,946 | ) | (779,557 | ) | ||||
| Change in net assets from operations | (8,363,738 | ) | 422,013 | |||||
| Distributions to Shareholders: | ||||||||
| Income distribution: | ||||||||
| Class A | (76,145 | ) | (30,662 | ) | ||||
| Class C | (2,558 | ) | (155 | ) | ||||
| Institutional Class | (624,683 | ) | (606,311 | ) | ||||
| Class R6 | (637,292 | ) | – | |||||
| Change in net assets from shareholder distributions | (1,340,678 | ) | (637,128 | ) | ||||
| Capital Transactions: | ||||||||
| Change in net assets from capital transactions (See Note 5) | 25,648,255 | (11,653,318 | ) | |||||
| Change in net assets | 15,943,839 | (11,868,433 | ) | |||||
| Net Assets: | ||||||||
| Beginning of year | 7,143,531 | 19,011,964 | ||||||
| End of year | $ | 23,087,370 | $ | 7,143,531 | ||||
See accompanying Notes to the Financial Statements.
131
| Sterling Capital Quality Income Fund | Sterling Capital North Carolina Intermediate Tax-Free Fund | |||||||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||||||
| $ | 1,279,771 | $ | 663,381 | $ | 2,909,921 | $ | 2,823,841 | |||||||
| (464,475 | ) | 74,208 | (3,925,912 | ) | 224,918 | |||||||||
| (9,405,234 | ) | (829,489 | ) | (14,152,072 | ) | (2,831,416 | ) | |||||||
| (8,589,938 | ) | (91,900 | ) | (15,168,063 | ) | 217,343 | ||||||||
| (603 | ) | (641 | ) | (443,470 | ) | (445,562 | ) | |||||||
| (39 | ) | (37 | ) | (9,185 | ) | (11,791 | ) | |||||||
| (1,556,001 | ) | (899,204 | ) | (2,457,262 | ) | (2,366,482 | ) | |||||||
| – | – | – | – | |||||||||||
| (1,556,643 | ) | (899,882 | ) | (2,909,917 | ) | (2,823,835 | ) | |||||||
| 25,681,610 | 27,906,592 | (16,450,675 | ) | 12,280,498 | ||||||||||
| 15,535,029 | 26,914,810 | (34,528,655 | ) | 9,674,006 | ||||||||||
| 62,751,363 | 35,836,553 | 187,073,401 | 177,399,395 | |||||||||||
| $ | 78,286,392 | $ | 62,751,363 | $ | 152,544,746 | $ | 187,073,401 | |||||||
132
| Sterling Capital Funds |
Statements of Changes in Net Assets
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||
| From Investment Activities: | ||||||||
| Operations: | ||||||||
| Net investment income | $ | 1,176,317 | $ | 1,475,613 | ||||
| Net realized gain (loss) | (439,370 | ) | 293,708 | |||||
| Change in unrealized appreciation/depreciation | (6,014,907 | ) | (849,869 | ) | ||||
| Change in net assets from operations | (5,277,960 | ) | 919,452 | |||||
| Distributions to Shareholders: | ||||||||
| Income distribution: | ||||||||
| Class A | (147,210 | ) | (226,979 | ) | ||||
| Class C | (4,027 | ) | (5,485 | ) | ||||
| Institutional Class | (1,025,078 | ) | (1,243,149 | ) | ||||
| Change in net assets from shareholder distributions | (1,176,315 | ) | (1,475,613 | ) | ||||
| Capital Transactions: | ||||||||
| Change in net assets from capital transactions (See Note 5) | (35,097,479 | ) | (927,298 | ) | ||||
| Change in net assets | (41,551,754 | ) | (1,483,459 | ) | ||||
| Net Assets: | ||||||||
| Beginning of year | 83,261,812 | 84,745,271 | ||||||
| End of year | $ | 41,710,058 | $ | 83,261,812 | ||||
See accompanying Notes to the Financial Statements.
133
| Sterling Capital Virginia Intermediate Tax-Free Fund | Sterling Capital West Virginia Intermediate Tax-Free Fund | |||||||||||||
| For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | For the Year Ended September 30, 2022 | For the Year Ended September 30, 2021 | |||||||||||
| $ | 1,301,206 | $ | 1,236,440 | $ | 1,593,986 | $ | 1,677,740 | |||||||
| (1,266,182 | ) | 87,883 | (1,020,923 | ) | 7,854 | |||||||||
| (6,989,773 | ) | (1,594,083 | ) | (8,383,049 | ) | (800,187 | ) | |||||||
| (6,954,749 | ) | (269,760 | ) | (7,809,986 | ) | 885,407 | ||||||||
| (236,698 | ) | (270,661 | ) | (382,129 | ) | (442,079 | ) | |||||||
| (208 | ) | (4,086 | ) | (199 | ) | (1,315 | ) | |||||||
| (1,152,188 | ) | (1,159,430 | ) | (1,219,569 | ) | (1,295,123 | ) | |||||||
| (1,389,094 | ) | (1,434,177 | ) | (1,601,897 | ) | (1,738,517 | ) | |||||||
| 7,068,723 | 3,070,399 | 1,544,062 | 67,415 | |||||||||||
| (1,275,120 | ) | 1,366,462 | (7,867,821 | ) | (785,695 | ) | ||||||||
| 82,419,766 | 81,053,304 | 95,011,257 | 95,796,952 | |||||||||||
| $ | 81,144,646 | $ | 82,419,766 | $ | 87,143,436 | $ | 95,011,257 | |||||||
134
| Sterling Capital Funds |
Financial Highlights, Class A Shares
September 30, 2022
The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
| Investment Activities | Distributions | |||||||||||||||||||||||||||||||
| Net Asset Value, Beginning of Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 22.75 | 0.40 | (2.60 | ) | (2.20 | ) | (0.36 | ) | — | — | (0.36 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 16.72 | 0.03 | 6.21 | 6.24 | (0.04 | ) | — | (0.17 | ) | (0.21 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 19.49 | 0.36 | (2.07 | ) | (1.71 | ) | (0.48 | ) | (0.58 | ) | — | (1.06 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 22.30 | 0.39 | (1.07 | ) | (0.68 | ) | (0.38 | ) | (1.75 | ) | — | (2.13 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.71 | 0.31 | 1.91 | 2.22 | (0.44 | ) | (0.19 | ) | — | (0.63 | ) | ||||||||||||||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 20.01 | 0.02 | (3.18 | ) | (3.16 | ) | — | (1.64 | ) | — | (1.64 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 13.99 | (0.02 | ) | 6.07 | 6.05 | (0.03 | ) | — | — | (0.03 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 16.10 | 0.02 | (0.80 | ) | (0.78 | ) | (0.20 | ) | (1.13 | ) | — | (1.33 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 19.08 | 0.05 | (0.77 | ) | (0.72 | ) | — | (2.26 | ) | — | (2.26 | ) | |||||||||||||||||||
| Year Ended September 30, 2018 | $ | 18.72 | (0.03 | ) | 1.23 | 1.20 | — | (0.84 | ) | — | (0.84 | ) | ||||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 19.37 | 0.17 | (2.45 | ) | (2.28 | ) | (0.15 | ) | (1.82 | ) | — | (1.97 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.83 | 0.11 | 7.53 | 7.64 | (0.10 | ) | — | — | (0.10 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 14.54 | 0.10 | (2.67 | ) | (2.57 | ) | (0.14 | ) | — | — | (0.14 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 18.65 | 0.17 | (2.07 | ) | (1.90 | ) | (0.23 | ) | (1.98 | ) | — | (2.21 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 18.39 | 0.17 | 0.86 | 1.03 | (0.12 | ) | (0.65 | ) | — | (0.77 | ) | ||||||||||||||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 33.44 | (0.13 | ) | (5.25 | ) | (5.38 | ) | — | (4.11 | ) | — | (4.11 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 24.67 | (0.11 | ) | 9.21 | 9.10 | — | (0.33 | ) | — | (0.33 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 24.63 | (0.01 | ) | 1.38 | 1.37 | — | (1.33 | ) | — | (1.33 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 26.37 | 0.02 | 0.10 | 0.12 | — | (1.86 | ) | — | (1.86 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 24.51 | 0.01 | 3.93 | 3.94 | (0.14 | ) | (1.94 | ) | — | (2.08 | ) | ||||||||||||||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 26.57 | 0.35 | (1.82 | ) | (1.47 | ) | (0.35 | ) | (0.48 | ) | — | (0.83 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 20.04 | 0.29 | 6.53 | 6.82 | (0.29 | ) | — | — | (0.29 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 21.27 | 0.36 | (0.39 | ) | (0.03 | ) | (0.36 | ) | (0.84 | ) | — | (1.20 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 21.55 | 0.39 | 1.23 | 1.62 | (0.38 | ) | (1.52 | ) | — | (1.90 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.84 | 0.34 | 2.66 | 3.00 | (0.34 | ) | (1.95 | ) | — | (2.29 | ) | ||||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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. |
See accompanying Notes to the Financial Statements.
135
| 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** | ||||||||||||||||||||
| $ | 20.19 | (9.84 | )% | $ | 25,985 | 1.00 | % | 1.68 | % | 1.03 | % | 125.15 | % | |||||||||||||
| $ | 22.75 | 37.59 | % | $ | 30,870 | 0.88 | % | 0.16 | % | 1.02 | % | 122.64 | % | |||||||||||||
| $ | 16.72 | (9.15 | )% | $ | 24,497 | 0.89 | % | 2.00 | % | 0.96 | % | 167.34 | % | |||||||||||||
| $ | 19.49 | (2.34 | )% | $ | 28,548 | 0.89 | % | 2.04 | % | 0.89 | % | 142.59 | % | |||||||||||||
| $ | 22.30 | 10.87 | % | $ | 33,126 | 0.87 | % | 1.44 | % | 0.87 | % | 127.89 | % | |||||||||||||
| $ | 15.21 | (17.48 | )% | $ | 17,191 | 1.14 | % | 0.10 | % | 1.14 | % | 29.05 | % | |||||||||||||
| $ | 20.01 | 43.32 | % | $ | 23,421 | 1.12 | % | (0.08 | )% | 1.15 | % | 34.00 | % | |||||||||||||
| $ | 13.99 | (5.76 | )% | $ | 18,851 | 1.13 | % | 0.13 | % | 1.26 | % | 28.77 | % | |||||||||||||
| $ | 16.10 | (2.80 | )% | $ | 23,013 | 1.18 | % | 0.29 | % | 1.18 | % | 26.62 | % | |||||||||||||
| $ | 19.08 | 6.54 | % | $ | 30,857 | 1.17 | % | (0.16 | )% | 1.17 | % | 34.62 | % | |||||||||||||
| $ | 15.12 | (13.50 | )% | $ | 5,644 | 1.11 | % | 0.90 | % | 1.11 | % | 70.82 | % | |||||||||||||
| $ | 19.37 | 64.73 | % | $ | 7,212 | 1.06 | % | 0.66 | % | 1.06 | % | 110.07 | % | |||||||||||||
| $ | 11.83 | (17.84 | )% | $ | 4,948 | 1.06 | % | 0.81 | % | 1.08 | % | 119.76 | % | |||||||||||||
| $ | 14.54 | (9.57 | )% | $ | 6,599 | 1.05 | % | 1.17 | % | 1.05 | % | 124.82 | % | |||||||||||||
| $ | 18.65 | 5.69 | % | $ | 8,711 | 1.03 | % | 0.91 | % | 1.03 | % | 89.85 | % | |||||||||||||
| $ | 23.95 | (18.91 | )% | $ | 267,480 | 1.13 | % | (0.44 | )% | 1.13 | % | 28.06 | % | |||||||||||||
| $ | 33.44 | 37.18 | % | $ | 355,673 | 1.11 | % | (0.36 | )% | 1.12 | % | 27.20 | % | |||||||||||||
| $ | 24.67 | 5.55 | % | $ | 276,975 | 1.11 | % | (0.04 | )% | 1.11 | % | 17.50 | % | |||||||||||||
| $ | 24.63 | 1.21 | % | $ | 322,003 | 1.11 | % | 0.06 | % | 1.11 | % | 17.31 | % | |||||||||||||
| $ | 26.37 | 17.16 | % | $ | 334,687 | 1.11 | % | 0.05 | % | 1.11 | % | 22.78 | % | |||||||||||||
| $ | 24.27 | (5.85 | )% | $ | 411,766 | 1.04 | % | 1.29 | % | 1.04 | % | 31.23 | % | |||||||||||||
| $ | 26.57 | 34.11 | % | $ | 460,034 | 1.03 | % | 1.15 | % | 1.04 | % | 13.00 | % | |||||||||||||
| $ | 20.04 | (0.10 | )% | $ | 320,255 | 1.03 | % | 1.79 | % | 1.03 | % | 33.60 | % | |||||||||||||
| $ | 21.27 | 8.48 | % | $ | 338,293 | 1.02 | % | 1.92 | % | 1.02 | % | 23.20 | % | |||||||||||||
| $ | 21.55 | 15.28 | % | $ | 316,245 | 1.02 | % | 1.66 | % | 1.02 | % | 19.49 | % | |||||||||||||
136
| Sterling Capital Funds |
Financial Highlights, Class A Shares
September 30, 2022
The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
| Investment Activities | Distributions | |||||||||||||||||||||||||||||||
| Net Asset Value, Beginning of Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.80 | 0.36 | (2.64 | ) | (2.28 | ) | (0.43 | ) | — | — | (0.43 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.14 | 0.26 | 1.62 | 1.88 | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.48 | 0.24 | (1.30 | ) | (1.06 | ) | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.17 | 0.31 | (1.31 | ) | (1.00 | ) | (0.29 | ) | (0.40 | ) | — | (0.69 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.75 | 0.37 | (0.52 | ) | (0.15 | ) | (0.32 | ) | (0.11 | ) | — | (0.43 | ) | ||||||||||||||||||
| Sterling Capital SMID Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 16.08 | (0.01 | ) | (2.59 | ) | (2.60 | ) | — | (1.40 | ) | — | (1.40 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 12.45 | (0.06 | ) | 3.69 | 3.63 | — | — | — | — | ||||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 13.24 | (0.03 | ) | (0.13 | ) | (0.16 | ) | — | (0.63 | ) | — | (0.63 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 12.44 | (0.02 | ) | 0.82 | 0.80 | — | — | — | — | ||||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.75 | (0.05 | ) | 0.98 | 0.93 | (0.06 | ) | (0.18 | ) | — | (0.24 | ) | |||||||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 78.45 | 0.39 | (10.09 | ) | (9.70 | ) | (0.33 | ) | (5.97 | ) | — | (6.30 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 58.67 | 0.28 | 19.97 | 20.25 | (0.24 | ) | (0.23 | ) | — | (0.47 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 64.04 | 0.25 | (3.65 | ) | (3.40 | ) | (0.46 | ) | (1.51 | ) | — | (1.97 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 68.74 | 0.30 | 0.17 | 0.47 | (0.15 | ) | (5.02 | ) | — | (5.17 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 66.23 | 0.10 | 4.85 | 4.95 | (0.15 | ) | (2.29 | ) | — | (2.44 | ) | ||||||||||||||||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 46.09 | 0.27 | (7.99 | ) | (7.72 | ) | (0.52 | ) | (2.99 | ) | — | (3.51 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 36.61 | 0.35 | 10.46 | 10.81 | (0.51 | ) | (0.82 | ) | — | (1.33 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 42.28 | 0.25 | (3.72 | ) | (3.47 | ) | (0.68 | ) | (1.52 | ) | — | (2.20 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 37.57 | 0.75 | 5.98 | 6.73 | (0.78 | ) | (1.24 | ) | — | (2.02 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 37.04 | 0.74 | 1.50 | 2.24 | (0.49 | ) | (1.22 | ) | — | (1.71 | ) | ||||||||||||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 83.01 | 0.09 | (8.16 | ) | (8.07 | ) | — | (17.27 | ) | — | (17.27 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 63.67 | (0.01 | ) | 30.82 | 30.81 | (0.25 | ) | (11.22 | ) | — | (11.47 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 78.00 | 0.25 | (9.36 | ) | (9.11 | ) | (0.29 | ) | (4.93 | ) | — | (5.22 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 88.73 | 0.32 | (5.00 | ) | (4.68 | ) | (0.15 | ) | (5.90 | ) | — | (6.05 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 89.91 | 0.12 | 6.49 | 6.61 | (0.10 | ) | (7.69 | ) | — | (7.79 | ) | ||||||||||||||||||||
| Sterling Capital Ultra Short Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.78 | 0.08 | (0.19 | ) | (0.11 | ) | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 9.82 | 0.08 | (0.02 | ) | 0.06 | (0.10 | ) | — | — | (0.10 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.78 | 0.17 | 0.04 | 0.21 | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.75 | 0.23 | 0.03 | 0.26 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.79 | 0.14 | (0.02 | ) | 0.12 | (0.16 | ) | — | — | (0.16 | ) | ||||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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. |
See accompanying Notes to the Financial Statements.
137
| 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** | ||||||||||||||||||||
| $ | 7.09 | (24.40 | )% | $ | 308 | 0.91 | % | 3.99 | % | 0.92 | % | 103.20 | % | |||||||||||||
| $ | 9.80 | 23.46 | % | $ | 490 | 0.92 | % | 2.73 | % | 0.98 | % | 158.16 | % | |||||||||||||
| $ | 8.14 | (11.76 | )% | $ | 426 | 0.88 | % | 2.81 | % | 1.08 | % | 164.02 | % | |||||||||||||
| $ | 9.48 | (8.72 | )% | $ | 537 | 0.94 | % | 3.16 | % | 1.14 | % | 97.74 | % | |||||||||||||
| $ | 11.17 | (1.47 | )% | $ | 828 | 0.90 | % | 3.17 | % | 1.10 | % | 96.65 | % | |||||||||||||
| $ | 12.08 | (18.16 | )% | $ | 3,688 | 1.04 | % | (0.06 | )% | 1.38 | % | 23.35 | % | |||||||||||||
| $ | 16.08 | 29.16 | % | $ | 5,095 | 1.04 | % | (0.42 | )% | 1.31 | % | 33.93 | % | |||||||||||||
| $ | 12.45 | (1.54 | )% | $ | 4,425 | 1.04 | % | (0.22 | )% | 1.34 | % | 60.03 | % | |||||||||||||
| $ | 13.24 | 6.43 | % | $ | 3,097 | 1.04 | % | (0.18 | )% | 1.45 | % | 45.11 | % | |||||||||||||
| $ | 12.44 | 8.07 | % | $ | 2,870 | 1.04 | % | (0.39 | )% | 1.29 | % | 45.64 | % | |||||||||||||
| $ | 62.45 | (13.89 | )% | $ | 380 | 1.10 | % | 0.53 | % | 1.10 | % | 7.94 | % | |||||||||||||
| $ | 78.45 | 34.65 | % | $ | 369 | 1.10 | % | 0.38 | % | 1.11 | % | 8.23 | % | |||||||||||||
| $ | 58.67 | (5.63 | )% | $ | 145 | 1.16 | % | 0.42 | % | 1.19 | % | 9.21 | % | |||||||||||||
| $ | 64.04 | 1.72 | % | $ | 126 | 1.20 | % | 0.50 | % | 1.20 | % | 6.75 | % | |||||||||||||
| $ | 68.74 | 7.54 | % | $ | 107 | 1.20 | % | 0.15 | % | 1.20 | % | 14.47 | % | |||||||||||||
| $ | 34.86 | (18.60 | )% | $ | 670 | 1.07 | % | 0.60 | % | 1.07 | % | 12.58 | % | |||||||||||||
| $ | 46.09 | 30.08 | % | $ | 719 | 1.05 | % | 0.82 | % | 1.05 | % | 12.68 | % | |||||||||||||
| $ | 36.61 | (8.33 | )% | $ | 537 | 1.08 | % | 0.67 | % | 1.08 | % | 19.58 | % | |||||||||||||
| $ | 42.28 | 18.76 | % | $ | 800 | 1.07 | % | 1.92 | % | 1.07 | % | 14.56 | % | |||||||||||||
| $ | 37.57 | 6.17 | % | $ | 398 | 1.07 | % | 2.04 | % | 1.07 | % | 8.34 | % | |||||||||||||
| $ | 57.67 | (14.14 | )% | $ | 2,464 | 1.25 | % | 0.13 | % | 1.25 | % | 5.26 | % | |||||||||||||
| $ | 83.01 | 52.43 | % | $ | 3,468 | 1.23 | % | (0.01 | )% | 1.26 | % | 6.15 | % | |||||||||||||
| $ | 63.67 | (12.81 | )% | $ | 2,048 | 1.25 | % | 0.37 | % | 1.33 | % | 8.33 | % | |||||||||||||
| $ | 78.00 | (4.79 | )% | $ | 2,775 | 1.28 | % | 0.42 | % | 1.33 | % | 8.60 | % | |||||||||||||
| $ | 88.73 | 7.71 | % | $ | 2,160 | 1.28 | % | 0.14 | % | 1.32 | % | 15.51 | % | |||||||||||||
| $ | 9.55 | (1.07 | )% | $ | 7,090 | 0.52 | % | 0.87 | % | 0.75 | % | 50.11 | % | |||||||||||||
| $ | 9.78 | 0.51 | % | $ | 7,219 | 0.53 | % | 0.82 | % | 0.75 | % | 48.71 | % | |||||||||||||
| $ | 9.82 | 2.20 | % | $ | 2,675 | 0.63 | % | 1.73 | % | 0.81 | % | 43.45 | % | |||||||||||||
| $ | 9.78 | 2.70 | % | $ | 2,219 | 0.68 | % | 2.39 | % | 0.79 | % | 103.69 | % | |||||||||||||
| $ | 9.75 | 1.20 | % | $ | 5,074 | 0.66 | % | 1.39 | % | 0.76 | % | 74.56 | % | |||||||||||||
138
Sterling Capital Funds
Financial Highlights, Class A Shares
September 30, 2022
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, 2022 | $ | 8.68 | 0.08 | (0.51 | ) | (0.43 | ) | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.78 | 0.10 | (0.02 | ) | 0.08 | (0.18 | ) | — | — | (0.18 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 8.65 | 0.17 | 0.16 | 0.33 | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 8.52 | 0.21 | 0.15 | 0.36 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 8.69 | 0.16 | (0.11 | ) | 0.05 | (0.22 | ) | — | — | (0.22 | ) | ||||||||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.78 | 0.08 | (1.15 | ) | (1.07 | ) | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.13 | 0.06 | (0.18 | ) | (0.12 | ) | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.92 | 0.17 | 0.29 | 0.46 | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.48 | 0.21 | 0.47 | 0.68 | (0.24 | ) | — | — | (0.24 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.91 | 0.17 | (0.34 | ) | (0.17 | ) | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.04 | 0.18 | (1.80 | ) | (1.62 | ) | (0.22 | ) | (0.09 | ) | — | (0.31 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.38 | 0.17 | (0.12 | ) | 0.05 | (0.24 | ) | (0.15 | ) | — | (0.39 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.88 | 0.24 | 0.55 | 0.79 | (0.29 | ) | — | (b) | — | (0.29 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.20 | 0.30 | 0.69 | 0.99 | (0.31 | ) | — | — | (0.31 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.59 | 0.27 | (0.36 | ) | (0.09 | ) | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.51 | 0.25 | (2.85 | ) | (2.60 | ) | (0.25 | ) | (1.03 | ) | — | (1.28 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.78 | 0.25 | 0.03 | 0.28 | (0.25 | ) | (0.30 | ) | — | (0.55 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.38 | 0.27 | 0.40 | 0.67 | (0.27 | ) | — | — | (0.27 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.81 | 0.30 | 0.57 | 0.87 | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.25 | 0.29 | (0.37 | ) | (0.08 | ) | (0.29 | ) | (0.07 | ) | — | (0.36 | ) | ||||||||||||||||||
| Sterling Capital Quality Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.04 | 0.14 | (1.23 | ) | (1.09 | ) | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.25 | 0.13 | (0.15 | ) | (0.02 | ) | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.09 | 0.21 | 0.20 | 0.41 | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.60 | 0.28 | 0.49 | 0.77 | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.94 | 0.25 | (0.31 | ) | (0.06 | ) | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
139
| 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** | ||||||||||||||||||||
| $ | 8.08 | (5.02 | )% | $ | 3,665 | 0.73 | % | 0.94 | % | 0.73 | % | 76.98 | % | |||||||||||||
| $ | 8.68 | 0.94 | % | $ | 4,419 | 0.68 | % | 1.15 | % | 0.71 | % | 39.26 | % | |||||||||||||
| $ | 8.78 | 3.86 | % | $ | 4,260 | 0.67 | % | 1.93 | % | 0.77 | % | 64.69 | % | |||||||||||||
| $ | 8.65 | 4.29 | % | $ | 3,197 | 0.68 | % | 2.44 | % | 0.78 | % | 78.58 | % | |||||||||||||
| $ | 8.52 | 0.55 | % | $ | 4,393 | 0.68 | % | 1.84 | % | 0.78 | % | 62.02 | % | |||||||||||||
| $ | 8.51 | (11.12 | )% | $ | 2,879 | 0.73 | % | 0.87 | % | 0.92 | % | 14.18 | % | |||||||||||||
| $ | 9.78 | (1.23 | )% | $ | 3,388 | 0.68 | % | 0.64 | % | 0.86 | % | 71.31 | % | |||||||||||||
| $ | 10.13 | 4.66 | % | $ | 3,930 | 0.79 | % | 1.68 | % | 0.95 | % | 47.36 | % | |||||||||||||
| $ | 9.92 | 7.27 | % | $ | 3,531 | 0.81 | % | 2.12 | % | 0.91 | % | 40.13 | % | |||||||||||||
| $ | 9.48 | (1.73 | )% | $ | 4,350 | 0.91 | % | 1.73 | % | 0.92 | % | 40.85 | % | |||||||||||||
| $ | 9.11 | (14.94 | )% | $ | 47,701 | 0.70 | % | 1.75 | % | 0.74 | % | 47.98 | % | |||||||||||||
| $ | 11.04 | 0.44 | % | $ | 60,694 | 0.70 | % | 1.52 | % | 0.75 | % | 48.80 | % | |||||||||||||
| $ | 11.38 | 7.33 | % | $ | 57,202 | 0.70 | % | 2.20 | % | 0.82 | % | 59.59 | % | |||||||||||||
| $ | 10.88 | 9.90 | % | $ | 55,513 | 0.70 | % | 2.87 | % | 0.83 | % | 79.40 | % | |||||||||||||
| $ | 10.20 | (0.90 | )% | $ | 68,982 | 0.70 | % | 2.56 | % | 0.82 | % | 62.28 | % | |||||||||||||
| $ | 6.63 | (27.78 | )% | $ | 436 | 0.85 | % | 2.94 | % | 1.04 | % | 161.62 | % | |||||||||||||
| $ | 10.51 | 2.67 | % | $ | 632 | 0.97 | % | 2.40 | % | 1.16 | % | 47.29 | % | |||||||||||||
| $ | 10.78 | 6.56 | % | $ | 490 | 0.92 | % | 2.57 | % | 0.94 | % | 52.28 | % | |||||||||||||
| $ | 10.38 | 9.01 | % | $ | 498 | 0.93 | % | 2.98 | % | 0.95 | % | 82.23 | % | |||||||||||||
| $ | 9.81 | (0.80 | )% | $ | 440 | 0.89 | % | 2.94 | % | 0.89 | % | 66.82 | % | |||||||||||||
| $ | 8.78 | (10.93 | )% | $ | 32 | 0.82 | % | 1.44 | % | 0.86 | % | 35.18 | % | |||||||||||||
| $ | 10.04 | (0.23 | )% | $ | 29 | 0.82 | % | 1.29 | % | 0.86 | % | 73.60 | % | |||||||||||||
| $ | 10.25 | 4.07 | % | $ | 25 | 0.84 | % | 2.06 | % | 0.88 | % | 35.96 | % | |||||||||||||
| $ | 10.09 | 8.13 | % | $ | 20 | 0.85 | % | 2.90 | % | 0.89 | % | 17.58 | % | |||||||||||||
| $ | 9.60 | (0.63 | )% | $ | 18 | 0.83 | % | 2.54 | % | 0.87 | % | 19.17 | % | |||||||||||||
140
Sterling Capital Funds
Financial Highlights, Class A Shares
September 30, 2022
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 North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.97 | 0.16 | (1.13 | ) | (0.97 | ) | (0.16 | ) | — | — | (0.16 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.12 | 0.15 | (0.15 | ) | — | (0.15 | ) | — | — | (0.15 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.91 | 0.18 | 0.21 | 0.39 | (0.18 | ) | — | — | (0.18 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.43 | 0.23 | 0.48 | 0.71 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.78 | 0.24 | (0.35 | ) | (0.11 | ) | (0.24 | ) | — | — | (0.24 | ) | |||||||||||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.40 | 0.18 | (1.16 | ) | (0.98 | ) | (0.18 | ) | — | — | (0.18 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.47 | 0.17 | (0.07 | ) | 0.10 | (0.17 | ) | — | — | (0.17 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 11.27 | 0.20 | 0.20 | 0.40 | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.77 | 0.21 | 0.50 | 0.71 | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.10 | 0.20 | (0.33 | ) | (0.13 | ) | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.98 | 0.16 | (1.20 | ) | (1.04 | ) | (0.16 | ) | (0.01 | ) | — | (0.17 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 12.23 | 0.16 | (0.22 | ) | (0.06 | ) | (0.16 | ) | (0.03 | ) | — | (0.19 | ) | ||||||||||||||||||
| Year Ended September 30, 2020 | $ | 11.98 | 0.20 | 0.25 | 0.45 | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.40 | 0.23 | 0.58 | 0.81 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.76 | 0.23 | (0.36 | ) | (0.13 | ) | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.20 | 0.15 | (0.98 | ) | (0.83 | ) | (0.15 | ) | — | (b) | — | (0.15 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.29 | 0.16 | (0.08 | ) | 0.08 | (0.16 | ) | (0.01 | ) | — | (0.17 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.12 | 0.19 | 0.18 | 0.37 | (0.19 | ) | (0.01 | ) | — | (0.20 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.72 | 0.22 | 0.42 | 0.64 | (0.22 | ) | (0.02 | ) | — | (0.24 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.04 | 0.21 | (0.31 | ) | (0.10 | ) | (0.21 | ) | (0.01 | ) | — | (0.22 | ) | ||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
141
| 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** | ||||||||||||||||||||
| $ | 9.84 | (8.92 | )% | $ | 24,664 | 0.82 | % | 1.52 | % | 0.82 | % | 50.21 | % | |||||||||||||
| $ | 10.97 | (0.01 | )% | $ | 31,234 | 0.80 | % | 1.34 | % | 0.80 | % | 7.97 | % | |||||||||||||
| $ | 11.12 | 3.64 | % | $ | 33,648 | 0.79 | % | 1.68 | % | 0.79 | % | 17.06 | % | |||||||||||||
| $ | 10.91 | 6.84 | % | $ | 38,587 | 0.80 | % | 2.12 | % | 0.80 | % | 33.12 | % | |||||||||||||
| $ | 10.43 | (1.06 | )% | $ | 36,857 | 0.79 | % | 2.23 | % | 0.79 | % | 22.06 | % | |||||||||||||
| $ | 10.24 | (8.66 | )% | $ | 7,056 | 0.85 | % | 1.64 | % | 0.85 | % | 9.94 | % | |||||||||||||
| $ | 11.40 | 0.86 | % | $ | 11,204 | 0.81 | % | 1.44 | % | 0.81 | % | 20.23 | % | |||||||||||||
| $ | 11.47 | 3.58 | % | $ | 11,926 | 0.81 | % | 1.76 | % | 0.81 | % | 4.84 | % | |||||||||||||
| $ | 11.27 | 6.62 | % | $ | 12,478 | 0.81 | % | 1.88 | % | 0.81 | % | 23.84 | % | |||||||||||||
| $ | 10.77 | (1.15 | )% | $ | 13,864 | 0.80 | % | 1.85 | % | 0.80 | % | 27.71 | % | |||||||||||||
| $ | 10.77 | (8.72 | )% | $ | 14,162 | 0.83 | % | 1.40 | % | 0.83 | % | 37.23 | % | |||||||||||||
| $ | 11.98 | (0.52 | )% | $ | 17,292 | 0.81 | % | 1.31 | % | 0.81 | % | 8.98 | % | |||||||||||||
| $ | 12.23 | 3.80 | % | $ | 17,446 | 0.81 | % | 1.67 | % | 0.81 | % | 15.44 | % | |||||||||||||
| $ | 11.98 | 7.13 | % | $ | 17,795 | 0.81 | % | 1.94 | % | 0.81 | % | 24.57 | % | |||||||||||||
| $ | 11.40 | (1.14 | )% | $ | 20,842 | 0.80 | % | 1.96 | % | 0.80 | % | 21.08 | % | |||||||||||||
| $ | 9.22 | (8.18 | )% | $ | 23,829 | 0.82 | % | 1.54 | % | 0.82 | % | 18.08 | % | |||||||||||||
| $ | 10.20 | 0.72 | % | $ | 27,208 | 0.81 | % | 1.53 | % | 0.81 | % | 8.56 | % | |||||||||||||
| $ | 10.29 | 3.66 | % | $ | 27,866 | 0.81 | % | 1.84 | % | 0.81 | % | 3.28 | % | |||||||||||||
| $ | 10.12 | 6.59 | % | $ | 22,389 | 0.81 | % | 2.18 | % | 0.81 | % | 33.73 | % | |||||||||||||
| $ | 9.72 | (0.98 | )% | $ | 23,833 | 0.80 | % | 2.14 | % | 0.80 | % | 17.53 | % | |||||||||||||
142
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 Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 21.88 | 0.21 | (2.49 | ) | (2.28 | ) | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 16.17 | (0.04 | ) | 5.92 | 5.88 | (0.03 | ) | — | (0.14 | ) | (0.17 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 18.88 | 0.21 | (1.99 | ) | (1.78 | ) | (0.35 | ) | (0.58 | ) | — | (0.93 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 21.67 | 0.24 | (1.04 | ) | (0.80 | ) | (0.24 | ) | (1.75 | ) | — | (1.99 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.13 | 0.15 | 1.86 | 2.01 | (0.28 | ) | (0.19 | ) | — | (0.47 | ) | ||||||||||||||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 16.86 | (0.11 | ) | (2.59 | ) | (2.70 | ) | — | (1.64 | ) | — | (1.64 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.85 | (0.13 | ) | 5.14 | 5.01 | — | — | — | — | ||||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 13.83 | (0.07 | ) | (0.68 | ) | (0.75 | ) | (0.10 | ) | (1.13 | ) | — | (1.23 | ) | |||||||||||||||||
| Year Ended September 30, 2019 | $ | 16.86 | (0.07 | ) | (0.70 | ) | (0.77 | ) | — | (2.26 | ) | — | (2.26 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 16.76 | (0.15 | ) | 1.09 | 0.94 | — | (0.84 | ) | — | (0.84 | ) | ||||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 18.46 | 0.03 | (2.34 | ) | (2.31 | ) | — | (1.82 | ) | — | (1.82 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.28 | 0.01 | 7.17 | 7.18 | — | — | — | — | |||||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 13.94 | 0.01 | (2.56 | ) | (2.55 | ) | (0.11 | ) | — | — | (0.11 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 17.89 | 0.06 | (1.98 | ) | (1.92 | ) | (0.05 | ) | (1.98 | ) | — | (2.03 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 17.69 | 0.03 | 0.82 | 0.85 | — | (0.65 | ) | — | (0.65 | ) | |||||||||||||||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 26.39 | (0.27 | ) | (3.92 | ) | (4.19 | ) | — | (4.11 | ) | — | (4.11 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 19.67 | (0.27 | ) | 7.32 | 7.05 | — | (0.33 | ) | — | (0.33 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 20.04 | (0.15 | ) | 1.11 | 0.96 | — | (1.33 | ) | — | (1.33 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 21.98 | (0.14 | ) | 0.06 | (0.08 | ) | — | (1.86 | ) | — | (1.86 | ) | |||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.88 | (0.14 | ) | 3.29 | 3.15 | (0.11 | ) | (1.94 | ) | — | (2.05 | ) | |||||||||||||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 26.32 | 0.15 | (1.81 | ) | (1.66 | ) | (0.14 | ) | (0.48 | ) | — | (0.62 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 19.83 | 0.10 | 6.47 | 6.57 | (0.08 | ) | — | — | (0.08 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 21.05 | 0.21 | (0.38 | ) | (0.17 | ) | (0.21 | ) | (0.84 | ) | — | (1.05 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 21.34 | 0.24 | 1.21 | 1.45 | (0.22 | ) | (1.52 | ) | — | (1.74 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.66 | 0.19 | 2.62 | 2.81 | (0.18 | ) | (1.95 | ) | — | (2.13 | ) | ||||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.69 | 0.29 | (2.61 | ) | (2.32 | ) | (0.36 | ) | — | — | (0.36 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.06 | 0.19 | 1.60 | 1.79 | (0.16 | ) | — | — | (0.16 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.37 | 0.18 | (1.31 | ) | (1.13 | ) | (0.18 | ) | — | — | (0.18 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.06 | 0.26 | (1.33 | ) | (1.07 | ) | (0.22 | ) | (0.40 | ) | — | (0.62 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.64 | 0.25 | (0.48 | ) | (0.23 | ) | (0.24 | ) | (0.11 | ) | — | (0.35 | ) | ||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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. |
See accompanying Notes to the Financial Statements.
143
| 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** | ||||||||||||||||||||
| $ | 19.41 | (10.50 | )% | $ | 248 | 1.75 | % | 0.93 | % | 1.78 | % | 125.15 | % | |||||||||||||
| $ | 21.88 | 36.56 | % | $ | 304 | 1.60 | % | (0.22 | )% | 1.79 | % | 122.64 | % | |||||||||||||
| $ | 16.17 | (9.81 | )% | $ | 567 | 1.64 | % | 1.26 | % | 1.71 | % | 167.34 | % | |||||||||||||
| $ | 18.88 | (3.08 | )% | $ | 634 | 1.64 | % | 1.29 | % | 1.64 | % | 142.59 | % | |||||||||||||
| $ | 21.67 | 10.11 | % | $ | 887 | 1.62 | % | 0.69 | % | 1.62 | % | 127.89 | % | |||||||||||||
| $ | 12.52 | (18.06 | )% | $ | 473 | 1.88 | % | (0.67 | )% | 1.88 | % | 29.05 | % | |||||||||||||
| $ | 16.86 | 42.28 | % | $ | 1,101 | 1.87 | % | (0.85 | )% | 1.90 | % | 34.00 | % | |||||||||||||
| $ | 11.85 | (6.46 | )% | $ | 1,584 | 1.88 | % | (0.61 | )% | 2.02 | % | 28.77 | % | |||||||||||||
| $ | 13.83 | (3.52 | )% | $ | 2,826 | 1.93 | % | (0.46 | )% | 1.93 | % | 26.62 | % | |||||||||||||
| $ | 16.86 | 5.72 | % | $ | 4,097 | 1.92 | % | (0.91 | )% | 1.92 | % | 34.62 | % | |||||||||||||
| $ | 14.33 | (14.19 | )% | $ | 29 | 1.85 | % | 0.19 | % | 1.85 | % | 70.82 | % | |||||||||||||
| $ | 18.46 | 63.65 | % | $ | 38 | 1.82 | % | 0.04 | % | 1.82 | % | 110.07 | % | |||||||||||||
| $ | 11.28 | (18.47 | )% | $ | 100 | 1.81 | % | 0.05 | % | 1.83 | % | 119.76 | % | |||||||||||||
| $ | 13.94 | (10.28 | )% | $ | 150 | 1.80 | % | 0.43 | % | 1.80 | % | 124.82 | % | |||||||||||||
| $ | 17.89 | 4.88 | % | $ | 180 | 1.78 | % | 0.17 | % | 1.78 | % | 89.85 | % | |||||||||||||
| $ | 18.09 | (19.53 | )% | $ | 29,566 | 1.88 | % | (1.19 | )% | 1.88 | % | 28.06 | % | |||||||||||||
| $ | 26.39 | 36.19 | % | $ | 52,182 | 1.86 | % | (1.11 | )% | 1.87 | % | 27.20 | % | |||||||||||||
| $ | 19.67 | 4.73 | % | $ | 60,777 | 1.86 | % | (0.79 | )% | 1.86 | % | 17.50 | % | |||||||||||||
| $ | 20.04 | 0.48 | % | $ | 83,451 | 1.86 | % | (0.71 | )% | 1.86 | % | 17.31 | % | |||||||||||||
| $ | 21.98 | 16.27 | % | $ | 144,100 | 1.86 | % | (0.70 | )% | 1.86 | % | 22.78 | % | |||||||||||||
| $ | 24.04 | (6.57 | )% | $ | 64,899 | 1.79 | % | 0.54 | % | 1.79 | % | 31.23 | % | |||||||||||||
| $ | 26.32 | 33.15 | % | $ | 81,338 | 1.78 | % | 0.42 | % | 1.79 | % | 13.00 | % | |||||||||||||
| $ | 19.83 | (0.85 | )% | $ | 119,475 | 1.77 | % | 1.04 | % | 1.78 | % | 33.60 | % | |||||||||||||
| $ | 21.05 | 7.66 | % | $ | 158,353 | 1.77 | % | 1.17 | % | 1.77 | % | 23.20 | % | |||||||||||||
| $ | 21.34 | 14.41 | % | $ | 207,659 | 1.77 | % | 0.91 | % | 1.77 | % | 19.49 | % | |||||||||||||
| $ | 7.01 | (24.92 | )% | $ | 41 | 1.67 | % | 3.27 | % | 1.67 | % | 103.20 | % | |||||||||||||
| $ | 9.69 | 22.44 | % | $ | 54 | 1.67 | % | 1.99 | % | 1.73 | % | 158.16 | % | |||||||||||||
| $ | 8.06 | (12.41 | )% | $ | 44 | 1.63 | % | 2.03 | % | 1.83 | % | 164.02 | % | |||||||||||||
| $ | 9.37 | (9.44 | )% | $ | 63 | 1.69 | % | 2.68 | % | 1.89 | % | 97.74 | % | |||||||||||||
| $ | 11.06 | (2.18 | )% | $ | 61 | 1.65 | % | 2.15 | % | 1.85 | % | 96.65 | % | |||||||||||||
144
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 Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital SMID Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 15.54 | (0.12 | ) | (2.48 | ) | (2.60 | ) | — | (1.40 | ) | — | (1.40 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 12.12 | (0.17 | ) | 3.59 | 3.42 | — | — | — | — | ||||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 12.99 | (0.11 | ) | (0.13 | ) | (0.24 | ) | — | (0.63 | ) | — | (0.63 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 12.30 | (0.11 | ) | 0.80 | 0.69 | — | — | — | — | ||||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.67 | (0.13 | ) | 0.96 | 0.83 | (0.02 | ) | (0.18 | ) | — | (0.20 | ) | |||||||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 76.32 | (0.08 | ) | (9.79 | ) | (9.87 | ) | — | (5.97 | ) | — | (5.97 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 57.24 | (0.17 | ) | 19.48 | 19.31 | — | (0.23 | ) | — | (0.23 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 62.48 | (0.12 | ) | (3.60 | ) | (3.72 | ) | (0.01 | ) | (1.51 | ) | — | (1.52 | ) | |||||||||||||||||
| Year Ended September 30, 2019 | $ | 67.46 | (0.12 | ) | 0.16 | 0.04 | — | (5.02 | ) | — | (5.02 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 65.40 | (0.42 | ) | 4.77 | 4.35 | — | (2.29 | ) | — | (2.29 | ) | ||||||||||||||||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 45.65 | (0.06 | ) | (7.89 | ) | (7.95 | ) | (0.18 | ) | (2.99 | ) | — | (3.17 | ) | |||||||||||||||||
| Year Ended September 30, 2021 | $ | 36.33 | 0.03 | 10.37 | 10.40 | (0.26 | ) | (0.82 | ) | — | (1.08 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 42.06 | 0.22 | (3.94 | ) | (3.72 | ) | (0.49 | ) | (1.52 | ) | — | (2.01 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 37.40 | 0.42 | 5.99 | 6.41 | (0.51 | ) | (1.24 | ) | — | (1.75 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 36.91 | 0.51 | 1.45 | 1.96 | (0.25 | ) | (1.22 | ) | — | (1.47 | ) | ||||||||||||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 79.47 | (0.42 | ) | (7.58 | ) | (8.00 | ) | — | (17.27 | ) | — | (17.27 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 61.56 | (0.58 | ) | 29.71 | 29.13 | — | (11.22 | ) | — | (11.22 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 75.87 | (0.24 | ) | (9.11 | ) | (9.35 | ) | (0.03 | ) | (4.93 | ) | — | (4.96 | ) | |||||||||||||||||
| Year Ended September 30, 2019 | $ | 86.92 | (0.19 | ) | (4.96 | ) | (5.15 | ) | — | (5.90 | ) | — | (5.90 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 88.75 | (0.62 | ) | 6.48 | 5.86 | — | (7.69 | ) | — | (7.69 | ) | ||||||||||||||||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 8.68 | 0.01 | (0.50 | ) | (0.49 | ) | (0.11 | ) | — | — | (0.11 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.77 | 0.04 | (0.01 | ) | 0.03 | (0.12 | ) | — | — | (0.12 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 8.64 | 0.11 | 0.15 | 0.26 | (0.13 | ) | — | — | (0.13 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 8.51 | 0.14 | 0.16 | 0.30 | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 8.69 | 0.09 | (0.12 | ) | (0.03 | ) | (0.15 | ) | — | — | (0.15 | ) | |||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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. |
See accompanying Notes to the Financial Statements.
145
| 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** | ||||||||||||||||||||
| $ | 11.54 | (18.83 | )% | $ | 673 | 1.79 | % | (0.84 | )% | 2.12 | % | 23.35 | % | |||||||||||||
| $ | 15.54 | 28.22 | % | $ | 1,513 | 1.79 | % | (1.17 | )% | 2.06 | % | 33.93 | % | |||||||||||||
| $ | 12.12 | (2.22 | )% | $ | 1,250 | 1.79 | % | (0.97 | )% | 2.09 | % | 60.03 | % | |||||||||||||
| $ | 12.99 | 5.61 | % | $ | 1,188 | 1.79 | % | (0.95 | )% | 2.19 | % | 45.11 | % | |||||||||||||
| $ | 12.30 | 7.25 | % | $ | 1,476 | 1.79 | % | (1.13 | )% | 2.04 | % | 45.64 | % | |||||||||||||
| $ | 60.48 | (14.45 | )% | $ | 3 | 1.74 | % | (0.11 | )% | 1.74 | % | 7.94 | % | |||||||||||||
| $ | 76.32 | 33.80 | % | $ | 3 | 1.85 | % | (0.23 | )% | 1.85 | % | 8.23 | % | |||||||||||||
| $ | 57.24 | (6.21 | )% | $ | 1 | 1.92 | % | (0.20 | )% | 1.92 | % | 9.21 | % | |||||||||||||
| $ | 62.48 | 1.03 | % | $ | 1 | 1.95 | % | (0.21 | )% | 1.95 | % | 6.75 | % | |||||||||||||
| $ | 67.46 | 6.70 | % | $ | 1 | 1.95 | % | (0.63 | )% | 1.95 | % | 14.47 | % | |||||||||||||
| $ | 34.53 | (19.19 | )% | $ | 125 | 1.82 | % | (0.14 | )% | 1.82 | % | 12.58 | % | |||||||||||||
| $ | 45.65 | 29.14 | % | $ | 182 | 1.81 | % | 0.08 | % | 1.81 | % | 12.68 | % | |||||||||||||
| $ | 36.33 | (9.02 | )% | $ | 192 | 1.83 | % | 0.58 | % | 1.83 | % | 19.58 | % | |||||||||||||
| $ | 42.06 | 17.88 | % | $ | 205 | 1.82 | % | 1.08 | % | 1.82 | % | 14.56 | % | |||||||||||||
| $ | 37.40 | 5.38 | % | $ | 98 | 1.82 | % | 1.41 | % | 1.82 | % | 8.34 | % | |||||||||||||
| $ | 54.20 | (14.79 | )% | $ | 320 | 2.00 | % | (0.63 | )% | 2.00 | % | 5.26 | % | |||||||||||||
| $ | 79.47 | 51.27 | % | $ | 375 | 1.98 | % | (0.75 | )% | 2.01 | % | 6.15 | % | |||||||||||||
| $ | 61.56 | (13.46 | )% | $ | 245 | 2.00 | % | (0.35 | )% | 2.08 | % | 8.33 | % | |||||||||||||
| $ | 75.87 | (5.49 | )% | $ | 279 | 2.03 | % | (0.25 | )% | 2.08 | % | 8.60 | % | |||||||||||||
| $ | 86.92 | 6.90 | % | $ | 112 | 2.03 | % | (0.71 | )% | 2.06 | % | 15.51 | % | |||||||||||||
| $ | 8.08 | (5.73 | )% | $ | 409 | 1.47 | % | 0.13 | % | 1.47 | % | 76.98 | % | |||||||||||||
| $ | 8.68 | 0.29 | % | $ | 988 | 1.43 | % | 0.40 | % | 1.46 | % | 39.26 | % | |||||||||||||
| $ | 8.77 | 3.09 | % | $ | 893 | 1.42 | % | 1.21 | % | 1.52 | % | 64.69 | % | |||||||||||||
| $ | 8.64 | 3.52 | % | $ | 1,052 | 1.43 | % | 1.68 | % | 1.53 | % | 78.58 | % | |||||||||||||
| $ | 8.51 | (0.32 | )% | $ | 1,091 | 1.43 | % | 1.07 | % | 1.53 | % | 62.02 | % | |||||||||||||
146
| 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 Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.76 | 0.01 | (1.15 | ) | (1.14 | ) | (0.13 | ) | — | — | (0.13 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.11 | (0.01 | ) | (0.19 | ) | (0.20 | ) | (0.15 | ) | — | — | (0.15 | ) | ||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.91 | 0.09 | 0.28 | 0.37 | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.47 | 0.13 | 0.48 | 0.61 | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.89 | 0.09 | (0.32 | ) | (0.23 | ) | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.06 | 0.10 | (1.80 | ) | (1.70 | ) | (0.15 | ) | (0.09 | ) | — | (0.24 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.40 | 0.09 | (0.13 | ) | (0.04 | ) | (0.15 | ) | (0.15 | ) | — | (0.30 | ) | ||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.90 | 0.16 | 0.54 | 0.70 | (0.20 | ) | — | (b) | — | (0.20 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.21 | 0.22 | 0.70 | 0.92 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.61 | 0.19 | (0.37 | ) | (0.18 | ) | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.49 | 0.17 | (2.83 | ) | (2.66 | ) | (0.19 | ) | (1.03 | ) | — | (1.22 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.76 | 0.18 | 0.03 | 0.21 | (0.18 | ) | (0.30 | ) | — | (0.48 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.36 | 0.19 | 0.40 | 0.59 | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.80 | 0.24 | 0.55 | 0.79 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.23 | 0.22 | (0.36 | ) | (0.14 | ) | (0.22 | ) | (0.07 | ) | — | (0.29 | ) | ||||||||||||||||||
| Sterling Capital Quality Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.03 | 0.07 | (1.21 | ) | (1.14 | ) | (0.11 | ) | — | — | (0.11 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.24 | 0.06 | (0.15 | ) | (0.09 | ) | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.08 | 0.17 | 0.16 | 0.33 | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.60 | 0.21 | 0.48 | 0.69 | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.93 | 0.19 | (0.32 | ) | (0.13 | ) | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.96 | 0.08 | (1.13 | ) | (1.05 | ) | (0.08 | ) | — | — | (0.08 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.12 | 0.07 | (0.16 | ) | (0.09 | ) | (0.07 | ) | — | — | (0.07 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.90 | 0.10 | 0.22 | 0.32 | (0.10 | ) | — | — | (0.10 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.42 | 0.15 | 0.48 | 0.63 | (0.15 | ) | — | — | (0.15 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.77 | 0.16 | (0.35 | ) | (0.19 | ) | (0.16 | ) | — | — | (0.16 | ) | |||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
147
| 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** | ||||||||||||||||||||
| $ | 8.49 | (11.81 | )% | $ | 98 | 1.48 | % | 0.12 | % | 1.67 | % | 14.18 | % | |||||||||||||
| $ | 9.76 | (1.97 | )% | $ | 124 | 1.43 | % | (0.11 | )% | 1.61 | % | 71.31 | % | |||||||||||||
| $ | 10.11 | 3.78 | % | $ | 309 | 1.54 | % | 0.93 | % | 1.70 | % | 47.36 | % | |||||||||||||
| $ | 9.91 | 6.48 | % | $ | 378 | 1.56 | % | 1.37 | % | 1.66 | % | 40.13 | % | |||||||||||||
| $ | 9.47 | (2.37 | )% | $ | 488 | 1.66 | % | 0.98 | % | 1.67 | % | 40.85 | % | |||||||||||||
| $ | 9.12 | (15.64 | )% | $ | 3,484 | 1.45 | % | 0.98 | % | 1.48 | % | 47.98 | % | |||||||||||||
| $ | 11.06 | (0.31 | )% | $ | 5,378 | 1.45 | % | 0.78 | % | 1.51 | % | 48.80 | % | |||||||||||||
| $ | 11.40 | 6.53 | % | $ | 8,332 | 1.45 | % | 1.44 | % | 1.57 | % | 59.59 | % | |||||||||||||
| $ | 10.90 | 9.17 | % | $ | 8,266 | 1.45 | % | 2.11 | % | 1.58 | % | 79.40 | % | |||||||||||||
| $ | 10.21 | (1.73 | )% | $ | 7,464 | 1.45 | % | 1.81 | % | 1.57 | % | 62.28 | % | |||||||||||||
| $ | 6.61 | (28.37 | )% | $ | 2 | 1.65 | % | 1.92 | % | 1.82 | % | 161.62 | % | |||||||||||||
| $ | 10.49 | 1.98 | % | $ | 3 | 1.72 | % | 1.70 | % | 1.88 | % | 47.29 | % | |||||||||||||
| $ | 10.76 | 5.80 | % | $ | 3 | 1.64 | % | 1.86 | % | 1.65 | % | 52.28 | % | |||||||||||||
| $ | 10.36 | 8.18 | % | $ | 3 | 1.68 | % | 2.36 | % | 1.68 | % | 82.23 | % | |||||||||||||
| $ | 9.80 | (1.44 | )% | $ | 42 | 1.63 | % | 2.19 | % | 1.63 | % | 66.82 | % | |||||||||||||
| $ | 8.78 | (11.45 | )% | $ | 3 | 1.50 | % | 0.74 | % | 1.52 | % | 35.18 | % | |||||||||||||
| $ | 10.03 | (0.92 | )% | $ | 3 | 1.57 | % | 0.58 | % | 1.59 | % | 73.60 | % | |||||||||||||
| $ | 10.24 | 3.34 | % | $ | 3 | 1.57 | % | 1.63 | % | 1.61 | % | 35.96 | % | |||||||||||||
| $ | 10.08 | 7.21 | % | $ | 34 | 1.60 | % | 2.15 | % | 1.64 | % | 17.58 | % | |||||||||||||
| $ | 9.60 | (1.27 | )% | $ | 33 | 1.58 | % | 1.97 | % | 1.62 | % | 19.17 | % | |||||||||||||
| $ | 9.83 | (9.61 | )% | $ | 1,141 | 1.57 | % | 0.75 | % | 1.57 | % | 50.21 | % | |||||||||||||
| $ | 10.96 | (0.85 | )% | $ | 1,542 | 1.55 | % | 0.60 | % | 1.55 | % | 7.97 | % | |||||||||||||
| $ | 11.12 | 2.96 | % | $ | 2,793 | 1.54 | % | 0.92 | % | 1.54 | % | 17.06 | % | |||||||||||||
| $ | 10.90 | 6.05 | % | $ | 2,878 | 1.55 | % | 1.38 | % | 1.55 | % | 33.12 | % | |||||||||||||
| $ | 10.42 | (1.80 | )% | $ | 3,359 | 1.54 | % | 1.48 | % | 1.54 | % | 22.06 | % | |||||||||||||
148
| 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 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 South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.39 | 0.10 | (1.15 | ) | (1.05 | ) | (0.10 | ) | — | — | (0.10 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.46 | 0.08 | (0.07 | ) | 0.01 | (0.08 | ) | — | — | (0.08 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 11.27 | 0.11 | 0.19 | 0.30 | (0.11 | ) | — | — | (0.11 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.76 | 0.12 | 0.51 | 0.63 | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.10 | 0.12 | (0.34 | ) | (0.22 | ) | (0.12 | ) | — | — | (0.12 | ) | |||||||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.97 | 0.07 | (1.18 | ) | (1.11 | ) | (0.08 | ) | (0.01 | ) | — | (0.09 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 12.22 | 0.07 | (0.22 | ) | (0.15 | ) | (0.07 | ) | (0.03 | ) | — | (0.10 | ) | ||||||||||||||||||
| Year Ended September 30, 2020 | $ | 11.97 | 0.11 | 0.25 | 0.36 | (0.11 | ) | — | — | (0.11 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.40 | 0.14 | 0.57 | 0.71 | (0.14 | ) | — | — | (0.14 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.76 | 0.14 | (0.36 | ) | (0.22 | ) | (0.14 | ) | — | — | (0.14 | ) | |||||||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.20 | 0.08 | (0.98 | ) | (0.90 | ) | (0.08 | ) | — | (b) | — | (0.08 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.30 | 0.09 | (0.10 | ) | (0.01 | ) | (0.08 | ) | (0.01 | ) | — | (0.09 | ) | ||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.13 | 0.11 | 0.18 | 0.29 | (0.11 | ) | (0.01 | ) | — | (0.12 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.72 | 0.14 | 0.43 | 0.57 | (0.14 | ) | (0.02 | ) | — | (0.16 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.05 | 0.14 | (0.32 | ) | (0.18 | ) | (0.14 | ) | (0.01 | ) | — | (0.15 | ) | ||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
149
| 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** | ||||||||||||||||||||
| $ | 10.24 | (9.27 | )% | $ | 340 | 1.59 | % | 0.89 | % | 1.59 | % | 9.94 | % | |||||||||||||
| $ | 11.39 | 0.10 | % | $ | 603 | 1.56 | % | 0.72 | % | 1.56 | % | 20.23 | % | |||||||||||||
| $ | 11.46 | 2.72 | % | $ | 955 | 1.56 | % | 1.01 | % | 1.56 | % | 4.84 | % | |||||||||||||
| $ | 11.27 | 5.93 | % | $ | 978 | 1.56 | % | 1.13 | % | 1.56 | % | 23.84 | % | |||||||||||||
| $ | 10.76 | (1.98 | )% | $ | 991 | 1.55 | % | 1.11 | % | 1.55 | % | 27.71 | % | |||||||||||||
| $ | 10.77 | (9.32 | )% | $ | 16 | 1.57 | % | 0.61 | % | 1.57 | % | 37.23 | % | |||||||||||||
| $ | 11.97 | (1.27 | )% | $ | 57 | 1.57 | % | 0.58 | % | 1.57 | % | 8.98 | % | |||||||||||||
| $ | 12.22 | 3.03 | % | $ | 780 | 1.56 | % | 0.92 | % | 1.56 | % | 15.44 | % | |||||||||||||
| $ | 11.97 | 6.25 | % | $ | 822 | 1.56 | % | 1.19 | % | 1.56 | % | 24.57 | % | |||||||||||||
| $ | 11.40 | (1.87 | )% | $ | 844 | 1.55 | % | 1.22 | % | 1.55 | % | 21.08 | % | |||||||||||||
| $ | 9.22 | (8.85 | )% | $ | 23 | 1.56 | % | 0.82 | % | 1.56 | % | 18.08 | % | |||||||||||||
| $ | 10.20 | (0.13 | )% | $ | 25 | 1.56 | % | 0.83 | % | 1.56 | % | 8.56 | % | |||||||||||||
| $ | 10.30 | 2.89 | % | $ | 304 | 1.56 | % | 1.10 | % | 1.56 | % | 3.28 | % | |||||||||||||
| $ | 10.13 | 5.90 | % | $ | 335 | 1.56 | % | 1.45 | % | 1.56 | % | 33.73 | % | |||||||||||||
| $ | 9.72 | (1.82 | )% | $ | 726 | 1.55 | % | 1.39 | % | 1.55 | % | 17.53 | % | |||||||||||||
150
| Sterling Capital Funds |
Financial Highlights, Institutional Shares
September 30, 2022
The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
| Investment Activities | Distributions | |||||||||||||||||||||||||||||||
| Net Asset Value, Beginning of Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 22.96 | 0.46 | (2.62 | ) | (2.16 | ) | (0.46 | ) | — | — | (0.46 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 16.83 | 0.09 | 6.24 | 6.33 | (0.04 | ) | — | (0.16 | ) | (0.20 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 19.62 | 0.41 | (2.10 | ) | (1.69 | ) | (0.52 | ) | (0.58 | ) | — | (1.10 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 22.43 | 0.44 | (1.07 | ) | (0.63 | ) | (0.43 | ) | (1.75 | ) | — | (2.18 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.82 | 0.33 | 1.97 | 2.30 | (0.50 | ) | (0.19 | ) | — | (0.69 | ) | ||||||||||||||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 20.51 | 0.06 | (3.27 | ) | (3.21 | ) | (0.01 | ) | (1.64 | ) | — | (1.65 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 14.33 | 0.03 | 6.22 | 6.25 | (0.07 | ) | — | — | (0.07 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 16.46 | 0.06 | (0.81 | ) | (0.75 | ) | (0.25 | ) | (1.13 | ) | — | (1.38 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 19.42 | 0.08 | (0.77 | ) | (0.69 | ) | (0.01 | ) | (2.26 | ) | — | (2.27 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 19.00 | 0.01 | 1.26 | 1.27 | (0.01 | ) | (0.84 | ) | — | (0.85 | ) | ||||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 19.58 | 0.22 | (2.49 | ) | (2.27 | ) | (0.20 | ) | (1.82 | ) | — | (2.02 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.95 | 0.16 | 7.60 | 7.76 | (0.13 | ) | — | — | (0.13 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 14.66 | 0.13 | (2.69 | ) | (2.56 | ) | (0.15 | ) | — | — | (0.15 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 18.82 | 0.21 | (2.09 | ) | (1.88 | ) | (0.30 | ) | (1.98 | ) | — | (2.28 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 18.55 | 0.19 | 0.89 | 1.08 | (0.16 | ) | (0.65 | ) | — | (0.81 | ) | ||||||||||||||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 35.59 | (0.06 | ) | (5.67 | ) | (5.73 | ) | — | (4.11 | ) | — | (4.11 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 26.20 | (0.03 | ) | 9.79 | 9.76 | (0.04 | ) | (0.33 | ) | — | (0.37 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 26.07 | 0.06 | 1.45 | 1.51 | (0.05 | ) | (1.33 | ) | — | (1.38 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 27.73 | 0.08 | 0.12 | 0.20 | — | (b) | (1.86 | ) | — | (1.86 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 25.65 | 0.09 | 4.11 | 4.20 | (0.18 | ) | (1.94 | ) | — | (2.12 | ) | ||||||||||||||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 26.66 | 0.42 | (1.83 | ) | (1.41 | ) | (0.42 | ) | (0.48 | ) | — | (0.90 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 20.10 | 0.35 | 6.56 | 6.91 | (0.35 | ) | — | — | (0.35 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 21.33 | 0.41 | (0.39 | ) | 0.02 | (0.41 | ) | (0.84 | ) | — | (1.25 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 21.61 | 0.44 | 1.23 | 1.67 | (0.43 | ) | (1.52 | ) | — | (1.95 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 20.89 | 0.40 | 2.66 | 3.06 | (0.39 | ) | (1.95 | ) | — | (2.34 | ) | ||||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
151
| 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** | ||||||||||||||||||||
| $ | 20.34 | (9.62 | )% | $ | 1,652 | 0.75 | % | 1.94 | % | 0.78 | % | 125.15 | % | |||||||||||||
| $ | 22.96 | 37.90 | % | $ | 2,023 | 0.64 | % | 0.42 | % | 0.78 | % | 122.64 | % | |||||||||||||
| $ | 16.83 | (8.96 | )% | $ | 1,949 | 0.64 | % | 2.18 | % | 0.66 | % | 167.34 | % | |||||||||||||
| $ | 19.62 | (2.08 | )% | $ | 7,550 | 0.64 | % | 2.28 | % | 0.64 | % | 142.59 | % | |||||||||||||
| $ | 22.43 | 11.19 | % | $ | 8,862 | 0.63 | % | 1.51 | % | 0.63 | % | 127.89 | % | |||||||||||||
| $ | 15.65 | (17.30 | )% | $ | 29,189 | 0.88 | % | 0.33 | % | 0.88 | % | 29.05 | % | |||||||||||||
| $ | 20.51 | 43.72 | % | $ | 51,607 | 0.87 | % | 0.17 | % | 0.89 | % | 34.00 | % | |||||||||||||
| $ | 14.33 | (5.50 | )% | $ | 36,835 | 0.89 | % | 0.39 | % | 1.04 | % | 28.77 | % | |||||||||||||
| $ | 16.46 | (2.54 | )% | $ | 154,259 | 0.93 | % | 0.49 | % | 0.93 | % | 26.62 | % | |||||||||||||
| $ | 19.42 | 6.82 | % | $ | 323,012 | 0.92 | % | 0.08 | % | 0.92 | % | 34.62 | % | |||||||||||||
| $ | 15.29 | (13.35 | )% | $ | 9,788 | 0.85 | % | 1.13 | % | 0.85 | % | 70.82 | % | |||||||||||||
| $ | 19.58 | 65.21 | % | $ | 14,639 | 0.81 | % | 0.89 | % | 0.81 | % | 110.07 | % | |||||||||||||
| $ | 11.95 | (17.64 | )% | $ | 6,820 | 0.80 | % | 0.97 | % | 0.84 | % | 119.76 | % | |||||||||||||
| $ | 14.66 | (9.32 | )% | $ | 28,223 | 0.80 | % | 1.42 | % | 0.80 | % | 124.82 | % | |||||||||||||
| $ | 18.82 | 5.96 | % | $ | 39,047 | 0.78 | % | 1.04 | % | 0.78 | % | 89.85 | % | |||||||||||||
| $ | 25.75 | (18.74 | )% | $ | 168,110 | 0.89 | % | (0.19 | )% | 0.89 | % | 28.06 | % | |||||||||||||
| $ | 35.59 | 37.55 | % | $ | 216,341 | 0.86 | % | (0.11 | )% | 0.87 | % | 27.20 | % | |||||||||||||
| $ | 26.20 | 5.79 | % | $ | 170,323 | 0.86 | % | 0.22 | % | 0.86 | % | 17.50 | % | |||||||||||||
| $ | 26.07 | 1.47 | % | $ | 281,099 | 0.86 | % | 0.30 | % | 0.86 | % | 17.31 | % | |||||||||||||
| $ | 27.73 | 17.46 | % | $ | 350,030 | 0.86 | % | 0.35 | % | 0.86 | % | 22.78 | % | |||||||||||||
| $ | 24.35 | (5.64 | )% | $ | 1,468,388 | 0.79 | % | 1.55 | % | 0.79 | % | 31.23 | % | |||||||||||||
| $ | 26.66 | 34.47 | % | $ | 1,622,233 | 0.78 | % | 1.40 | % | 0.79 | % | 13.00 | % | |||||||||||||
| $ | 20.10 | 0.15 | % | $ | 1,057,722 | 0.77 | % | 2.06 | % | 0.78 | % | 33.60 | % | |||||||||||||
| $ | 21.33 | 8.72 | % | $ | 992,964 | 0.77 | % | 2.17 | % | 0.77 | % | 23.20 | % | |||||||||||||
| $ | 21.61 | 15.58 | % | $ | 828,607 | 0.77 | % | 1.91 | % | 0.77 | % | 19.49 | % | |||||||||||||
152
| Sterling Capital Funds |
Financial Highlights, Institutional Shares
September 30, 2022
The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
| Investment Activities | Distributions | |||||||||||||||||||||||||||||||
| Net Asset Value, Beginning of Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.81 | 0.38 | (2.65 | ) | (2.27 | ) | (0.45 | ) | — | — | (0.45 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.14 | 0.07 | 1.84 | 1.91 | (0.24 | ) | — | — | (0.24 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.49 | 0.27 | (1.32 | ) | (1.05 | ) | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.18 | 0.35 | (1.33 | ) | (0.98 | ) | (0.31 | ) | (0.40 | ) | — | (0.71 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.76 | 0.28 | (0.40 | ) | (0.12 | ) | (0.35 | ) | (0.11 | ) | — | (0.46 | ) | ||||||||||||||||||
| Sterling Capital SMID Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 16.25 | 0.03 | (2.63 | ) | (2.60 | ) | — | (1.40 | ) | — | (1.40 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 12.55 | (0.03 | ) | 3.73 | 3.70 | — | — | — | — | ||||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 13.31 | — | (b) | (0.13 | ) | (0.13 | ) | — | (0.63 | ) | — | (0.63 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 12.48 | 0.01 | 0.82 | 0.83 | — | — | — | — | |||||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.77 | (0.02 | ) | 0.99 | 0.97 | (0.08 | ) | (0.18 | ) | — | (0.26 | ) | |||||||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 78.92 | 0.58 | (10.16 | ) | (9.58 | ) | (0.48 | ) | (5.97 | ) | — | (6.45 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 58.95 | 0.45 | 20.09 | 20.54 | (0.34 | ) | (0.23 | ) | — | (0.57 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 64.31 | 0.40 | (3.64 | ) | (3.24 | ) | (0.61 | ) | (1.51 | ) | — | (2.12 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 69.02 | 0.45 | 0.15 | 0.60 | (0.29 | ) | (5.02 | ) | — | (5.31 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 66.47 | 0.27 | 4.87 | 5.14 | (0.30 | ) | (2.29 | ) | — | (2.59 | ) | ||||||||||||||||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 46.19 | 0.40 | (8.03 | ) | (7.63 | ) | (0.62 | ) | (2.99 | ) | — | (3.61 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 36.66 | 0.43 | 10.51 | 10.94 | (0.59 | ) | (0.82 | ) | — | (1.41 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 42.36 | 0.59 | (3.97 | ) | (3.38 | ) | (0.80 | ) | (1.52 | ) | — | (2.32 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 37.63 | 0.79 | 6.05 | 6.84 | (0.87 | ) | (1.24 | ) | — | (2.11 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 37.10 | 0.81 | 1.52 | 2.33 | (0.58 | ) | (1.22 | ) | — | (1.80 | ) | ||||||||||||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 83.58 | 0.27 | (8.25 | ) | (7.98 | ) | (0.09 | ) | (17.27 | ) | — | (17.36 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 64.04 | 0.17 | 31.01 | 31.18 | (0.42 | ) | (11.22 | ) | — | (11.64 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 78.38 | 0.41 | (9.36 | ) | (8.95 | ) | (0.46 | ) | (4.93 | ) | — | (5.39 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 89.11 | 0.49 | (5.02 | ) | (4.53 | ) | (0.30 | ) | (5.90 | ) | — | (6.20 | ) | ||||||||||||||||||
| Year Ended September 30, 2018 | $ | 90.19 | 0.26 | 6.60 | 6.86 | (0.25 | ) | (7.69 | ) | — | (7.94 | ) | ||||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
153
| 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** | ||||||||||||||||||||
| $ | 7.09 | (24.27 | )% | $ | 489 | 0.67 | % | 4.24 | % | 0.67 | % | 103.20 | % | |||||||||||||
| $ | 9.81 | 23.86 | % | $ | 662 | 0.67 | % | 0.85 | % | 0.85 | % | 158.16 | % | |||||||||||||
| $ | 8.14 | (11.65 | )% | $ | 13,670 | 0.63 | % | 3.09 | % | 0.83 | % | 164.02 | % | |||||||||||||
| $ | 9.49 | (8.44 | )% | $ | 16,721 | 0.69 | % | 3.62 | % | 0.89 | % | 97.74 | % | |||||||||||||
| $ | 11.18 | (1.25 | )% | $ | 19,266 | 0.65 | % | 2.33 | % | 0.85 | % | 96.65 | % | |||||||||||||
| $ | 12.25 | (17.95 | )% | $ | 2,871 | 0.79 | % | 0.18 | % | 1.13 | % | 23.35 | % | |||||||||||||
| $ | 16.25 | 29.48 | % | $ | 4,591 | 0.79 | % | (0.19 | )% | 1.06 | % | 33.93 | % | |||||||||||||
| $ | 12.55 | (1.30 | )% | $ | 5,359 | 0.79 | % | 0.02 | % | �� | 1.09 | % | 60.03 | % | ||||||||||||
| $ | 13.31 | 6.65 | % | $ | 5,386 | 0.79 | % | 0.07 | % | 1.20 | % | 45.11 | % | |||||||||||||
| $ | 12.48 | 8.39 | % | $ | 4,886 | 0.79 | % | (0.13 | )% | 1.04 | % | 45.64 | % | |||||||||||||
| $ | 62.89 | (13.68 | )% | $ | 45,055 | 0.84 | % | 0.78 | % | 0.84 | % | 7.94 | % | |||||||||||||
| $ | 78.92 | 35.02 | % | $ | 65,503 | 0.85 | % | 0.60 | % | 0.86 | % | 8.23 | % | |||||||||||||
| $ | 58.95 | (5.39 | )% | $ | 53,847 | 0.91 | % | 0.67 | % | 0.94 | % | 9.21 | % | |||||||||||||
| $ | 64.31 | 1.97 | % | $ | 61,908 | 0.95 | % | 0.73 | % | 0.95 | % | 6.75 | % | |||||||||||||
| $ | 69.02 | 7.81 | % | $ | 66,554 | 0.95 | % | 0.40 | % | 0.95 | % | 14.47 | % | |||||||||||||
| $ | 34.95 | (18.39 | )% | $ | 73,873 | 0.82 | % | 0.91 | % | 0.82 | % | 12.58 | % | |||||||||||||
| $ | 46.19 | 30.40 | % | $ | 96,075 | 0.81 | % | 1.00 | % | 0.81 | % | 12.68 | % | |||||||||||||
| $ | 36.66 | (8.09 | )% | $ | 85,144 | 0.82 | % | 1.55 | % | 0.82 | % | 9.21 | % | |||||||||||||
| $ | 42.36 | 19.06 | % | $ | 105,216 | 0.82 | % | 2.03 | % | 0.82 | % | 14.56 | % | |||||||||||||
| $ | 37.63 | 6.42 | % | $ | 91,626 | 0.82 | % | 2.21 | % | 0.82 | % | 8.34 | % | |||||||||||||
| $ | 58.24 | (13.93 | )% | $ | 350,163 | 1.00 | % | 0.38 | % | 1.00 | % | 5.26 | % | |||||||||||||
| $ | 83.58 | 52.78 | % | $ | 514,025 | 0.98 | % | 0.22 | % | 1.02 | % | 6.15 | % | |||||||||||||
| $ | 64.04 | (12.59 | )% | $ | 475,615 | 1.01 | % | 0.58 | % | 1.08 | % | 8.33 | % | |||||||||||||
| $ | 78.38 | (4.55 | )% | $ | 959,875 | 1.03 | % | 0.64 | % | 1.08 | % | 8.60 | % | |||||||||||||
| $ | 89.11 | 7.98 | % | $ | 1,296,897 | 1.03 | % | 0.29 | % | 1.06 | % | 15.51 | % | |||||||||||||
154
| Sterling Capital Funds |
Financial Highlights, Institutional Shares
September 30, 2022
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 Ultra Short Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.78 | 0.11 | (0.19 | ) | (0.08 | ) | (0.14 | ) | — | — | (0.14 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 9.83 | 0.11 | (0.04 | ) | 0.07 | (0.12 | ) | — | — | (0.12 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.79 | 0.19 | 0.05 | 0.24 | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.75 | 0.26 | 0.03 | 0.29 | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.79 | 0.16 | (0.02 | ) | 0.14 | (0.18 | ) | — | — | (0.18 | ) | ||||||||||||||||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 8.68 | 0.10 | (0.51 | ) | (0.41 | ) | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.78 | 0.12 | (0.02 | ) | 0.10 | (0.20 | ) | — | — | (0.20 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 8.65 | 0.19 | 0.16 | 0.35 | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 8.52 | 0.23 | 0.15 | 0.38 | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 8.69 | 0.19 | (0.12 | ) | 0.07 | (0.24 | ) | — | — | (0.24 | ) | ||||||||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.79 | 0.10 | (1.16 | ) | (1.06 | ) | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.14 | 0.09 | (0.19 | ) | (0.10 | ) | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.93 | 0.20 | 0.28 | 0.48 | (0.27 | ) | — | — | (0.27 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.49 | 0.23 | 0.48 | 0.71 | (0.27 | ) | — | — | (0.27 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.92 | 0.19 | (0.34 | ) | (0.15 | ) | (0.28 | ) | — | — | (0.28 | ) | |||||||||||||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.05 | 0.20 | (1.80 | ) | (1.60 | ) | (0.25 | ) | (0.09 | ) | — | (0.34 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.39 | 0.20 | (0.13 | ) | 0.07 | (0.26 | ) | (0.15 | ) | — | (0.41 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.89 | 0.27 | 0.54 | 0.81 | (0.31 | ) | — | (b) | — | (0.31 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.20 | 0.32 | 0.71 | 1.03 | (0.34 | ) | — | — | (0.34 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.60 | 0.29 | (0.37 | ) | (0.08 | ) | (0.32 | ) | — | — | (0.32 | ) | |||||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.50 | 0.23 | (2.80 | ) | (2.57 | ) | (0.27 | ) | (1.03 | ) | — | (1.30 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.77 | 0.28 | 0.03 | 0.31 | (0.28 | ) | (0.30 | ) | — | (0.58 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.38 | 0.30 | 0.39 | 0.69 | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.81 | 0.33 | 0.56 | 0.89 | (0.32 | ) | — | — | (0.32 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.24 | 0.32 | (0.36 | ) | (0.04 | ) | (0.32 | ) | (0.07 | ) | — | (0.39 | ) | ||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
155
| 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** | ||||||||||||||||||||
| $ | 9.56 | (0.82 | )% | $ | 20,265 | 0.27 | % | 1.11 | % | 0.50 | % | 50.11 | % | |||||||||||||
| $ | 9.78 | 0.75 | % | $ | 32,492 | 0.29 | % | 1.08 | % | 0.51 | % | 48.71 | % | |||||||||||||
| $ | 9.83 | 2.44 | % | $ | 33,699 | 0.38 | % | 1.90 | % | 0.55 | % | 43.45 | % | |||||||||||||
| $ | 9.79 | 3.06 | % | $ | 15,343 | 0.42 | % | 2.70 | % | 0.52 | % | 103.69 | % | |||||||||||||
| $ | 9.75 | 1.46 | % | $ | 21,926 | 0.41 | % | 1.65 | % | 0.51 | % | 74.56 | % | |||||||||||||
| $ | 8.08 | (4.78 | )% | $ | 82,934 | 0.47 | % | 1.17 | % | 0.47 | % | 76.98 | % | |||||||||||||
| $ | 8.68 | 1.19 | % | $ | 161,804 | 0.43 | % | 1.40 | % | 0.46 | % | 39.26 | % | |||||||||||||
| $ | 8.78 | 4.12 | % | $ | 174,891 | 0.42 | % | 2.20 | % | 0.52 | % | 64.69 | % | |||||||||||||
| $ | 8.65 | 4.55 | % | $ | 171,989 | 0.43 | % | 2.68 | % | 0.53 | % | 78.58 | % | |||||||||||||
| $ | 8.52 | 0.80 | % | $ | 126,878 | 0.43 | % | 2.20 | % | 0.53 | % | 62.02 | % | |||||||||||||
| $ | 8.51 | (10.90 | )% | $ | 13,737 | 0.48 | % | 1.12 | % | 0.67 | % | 14.18 | % | |||||||||||||
| $ | 9.79 | (1.08 | )% | $ | 16,272 | 0.43 | % | 0.88 | % | 0.61 | % | 71.31 | % | |||||||||||||
| $ | 10.14 | 4.92 | % | $ | 8,049 | 0.54 | % | 1.95 | % | 0.70 | % | 47.36 | % | |||||||||||||
| $ | 9.93 | 7.54 | % | $ | 11,052 | 0.57 | % | 2.35 | % | 0.66 | % | 40.13 | % | |||||||||||||
| $ | 9.49 | (1.48 | )% | $ | 17,961 | 0.65 | % | 1.99 | % | 0.66 | % | 40.85 | % | |||||||||||||
| $ | 9.11 | (14.81 | )% | $ | 782,084 | 0.45 | % | 1.98 | % | 0.48 | % | 47.98 | % | |||||||||||||
| $ | 11.05 | 0.69 | % | $ | 1,139,676 | 0.45 | % | 1.77 | % | 0.50 | % | 48.80 | % | |||||||||||||
| $ | 11.39 | 7.59 | % | $ | 1,051,891 | 0.45 | % | 2.45 | % | 0.57 | % | 59.59 | % | |||||||||||||
| $ | 10.89 | 10.27 | % | $ | 1,065,346 | 0.45 | % | 3.10 | % | 0.58 | % | 79.40 | % | |||||||||||||
| $ | 10.20 | (0.74 | )% | $ | 860,437 | 0.45 | % | 2.79 | % | 0.57 | % | 62.28 | % | |||||||||||||
| $ | 6.63 | (27.52 | )% | $ | 97 | 0.63 | % | 2.50 | % | 0.80 | % | 161.62 | % | |||||||||||||
| $ | 10.50 | 2.92 | % | $ | 6,508 | 0.71 | % | 2.61 | % | 0.87 | % | 47.29 | % | |||||||||||||
| $ | 10.77 | 6.72 | % | $ | 18,519 | 0.67 | % | 2.83 | % | 0.70 | % | 52.28 | % | |||||||||||||
| $ | 10.38 | 9.28 | % | $ | 22,651 | 0.68 | % | 3.25 | % | 0.69 | % | 82.23 | % | |||||||||||||
| $ | 9.81 | (0.45 | )% | $ | 30,805 | 0.63 | % | 3.18 | % | 0.63 | % | 66.82 | % | |||||||||||||
156
| Sterling Capital Funds |
Financial Highlights, Institutional Shares
September 30, 2022
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 Quality Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.05 | 0.16 | (1.22 | ) | (1.06 | ) | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.26 | 0.15 | (0.15 | ) | — | (0.21 | ) | — | — | (0.21 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.10 | 0.24 | 0.19 | 0.43 | (0.27 | ) | — | — | (0.27 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.62 | 0.31 | 0.47 | 0.78 | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 9.95 | 0.29 | (0.32 | ) | (0.03 | ) | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.97 | 0.19 | (1.14 | ) | (0.95 | ) | (0.19 | ) | — | — | (0.19 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.12 | 0.18 | (0.15 | ) | 0.03 | (0.18 | ) | — | — | (0.18 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.91 | 0.21 | 0.21 | 0.42 | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.43 | 0.25 | 0.48 | 0.73 | (0.25 | ) | — | — | (0.25 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.78 | 0.26 | (0.35 | ) | (0.09 | ) | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.32 | 0.21 | (1.15 | ) | (0.94 | ) | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.39 | 0.20 | (0.07 | ) | 0.13 | (0.20 | ) | — | — | (0.20 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 11.20 | 0.23 | 0.19 | 0.42 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.69 | 0.23 | 0.51 | 0.74 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.03 | 0.23 | (0.34 | ) | (0.11 | ) | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.97 | 0.19 | (1.19 | ) | (1.00 | ) | (0.19 | ) | (0.01 | ) | — | (0.20 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 12.22 | 0.19 | (0.22 | ) | (0.03 | ) | (0.19 | ) | (0.03 | ) | — | (0.22 | ) | ||||||||||||||||||
| Year Ended September 30, 2020 | $ | 11.97 | 0.23 | 0.25 | 0.48 | (0.23 | ) | — | — | (0.23 | ) | |||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.40 | 0.26 | 0.57 | 0.83 | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 11.76 | 0.26 | (0.36 | ) | (0.10 | ) | (0.26 | ) | — | — | (0.26 | ) | |||||||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 10.21 | 0.18 | (0.98 | ) | (0.80 | ) | (0.18 | ) | — | (b) | — | (0.18 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 10.31 | 0.18 | (0.09 | ) | 0.09 | (0.18 | ) | (0.01 | ) | — | (0.19 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.13 | 0.21 | 0.19 | 0.40 | (0.21 | ) | (0.01 | ) | — | (0.22 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 9.73 | 0.24 | 0.42 | 0.66 | (0.24 | ) | (0.02 | ) | — | (0.26 | ) | ||||||||||||||||||||
| Year Ended September 30, 2018 | $ | 10.05 | 0.24 | (0.31 | ) | (0.07 | ) | (0.24 | ) | (0.01 | ) | — | (0.25 | ) | ||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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.
157
| 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** | ||||||||||||||||||||
| $ | 8.79 | (10.69 | )% | $ | 78,252 | 0.57 | % | 1.73 | % | 0.61 | % | 35.18 | % | |||||||||||||
| $ | 10.05 | 0.02 | % | $ | 62,718 | 0.57 | % | 1.52 | % | 0.61 | % | 73.60 | % | |||||||||||||
| $ | 10.26 | 4.33 | % | $ | 35,808 | 0.59 | % | 2.36 | % | 0.63 | % | 35.96 | % | |||||||||||||
| $ | 10.10 | 8.27 | % | $ | 36,361 | 0.60 | % | 3.15 | % | 0.64 | % | 17.58 | % | |||||||||||||
| $ | 9.62 | (0.28 | )% | $ | 37,088 | 0.58 | % | 2.97 | % | 0.62 | % | 19.17 | % | |||||||||||||
| $ | 9.83 | (8.78 | )% | $ | 126,739 | 0.57 | % | 1.76 | % | 0.57 | % | 50.21 | % | |||||||||||||
| $ | 10.97 | 0.24 | % | $ | 154,297 | 0.55 | % | 1.59 | % | 0.55 | % | 7.97 | % | |||||||||||||
| $ | 11.12 | 3.90 | % | $ | 140,958 | 0.54 | % | 1.92 | % | 0.54 | % | 17.06 | % | |||||||||||||
| $ | 10.91 | 7.10 | % | $ | 140,022 | 0.55 | % | 2.37 | % | 0.55 | % | 33.12 | % | |||||||||||||
| $ | 10.43 | (0.81 | )% | $ | 133,812 | 0.54 | % | 2.49 | % | 0.54 | % | 22.06 | % | |||||||||||||
| $ | 10.17 | (8.42 | )% | $ | 34,313 | 0.59 | % | 1.89 | % | 0.59 | % | 9.94 | % | |||||||||||||
| $ | 11.32 | 1.10 | % | $ | 71,455 | 0.56 | % | 1.71 | % | 0.56 | % | 20.23 | % | |||||||||||||
| $ | 11.39 | 3.76 | % | $ | 71,865 | 0.56 | % | 2.01 | % | 0.56 | % | 4.84 | % | |||||||||||||
| $ | 11.20 | 7.02 | % | $ | 66,331 | 0.56 | % | 2.13 | % | 0.56 | % | 23.84 | % | |||||||||||||
| $ | 10.69 | (1.02 | )% | $ | 63,090 | 0.55 | % | 2.10 | % | 0.55 | % | 27.71 | % | |||||||||||||
| $ | 10.77 | (8.41 | )% | $ | 66,967 | 0.58 | % | 1.67 | % | 0.58 | % | 37.23 | % | |||||||||||||
| $ | 11.97 | (0.27 | )% | $ | 65,071 | 0.56 | % | 1.56 | % | 0.56 | % | 8.98 | % | |||||||||||||
| $ | 12.22 | 4.06 | % | $ | 62,828 | 0.56 | % | 1.91 | % | 0.56 | % | 15.44 | % | |||||||||||||
| $ | 11.97 | 7.31 | % | $ | 59,312 | 0.56 | % | 2.18 | % | 0.56 | % | 24.57 | % | |||||||||||||
| $ | 11.40 | (0.88 | )% | $ | 61,420 | 0.55 | % | 2.22 | % | 0.55 | % | 21.08 | % | |||||||||||||
| $ | 9.23 | (7.93 | )% | $ | 63,292 | 0.58 | % | 1.81 | % | 0.58 | % | 18.08 | % | |||||||||||||
| $ | 10.21 | 0.88 | % | $ | 67,778 | 0.56 | % | 1.78 | % | 0.56 | % | 8.56 | % | |||||||||||||
| $ | 10.31 | 4.01 | % | $ | 67,627 | 0.56 | % | 2.08 | % | 0.56 | % | 3.28 | % | |||||||||||||
| $ | 10.13 | 6.85 | % | $ | 53,352 | 0.56 | % | 2.43 | % | 0.56 | % | 33.73 | % | |||||||||||||
| $ | 9.73 | (0.73 | )% | $ | 54,988 | 0.55 | % | 2.39 | % | 0.55 | % | 17.53 | % | |||||||||||||
158
| Sterling Capital Funds |
Financial Highlights, Class R6 Shares
September 30, 2022
The financial highlights table is intended to help you understand the Funds’ financial performance for the past 5 years or, if shorter, the period of the Funds’ operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions).
| Investment Activities | Distributions | |||||||||||||||||||||||||||||||
| Net Asset Value, Beginning of Year | Net investment income (loss)(a) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Return of capital | Total Distributions | |||||||||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 22.99 | 0.50 | (2.63 | ) | (2.13 | ) | (0.46 | ) | — | — | (0.46 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 16.85 | 0.09 | 6.25 | 6.34 | (0.04 | ) | — | (0.16 | ) | (0.20 | ) | ||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 19.62 | 0.40 | (2.07 | ) | (1.67 | ) | (0.52 | ) | (0.58 | ) | — | (1.10 | ) | ||||||||||||||||||
| Year Ended September 30, 2019 | $ | 22.43 | 0.46 | (1.08 | ) | (0.62 | ) | (0.44 | ) | (1.75 | ) | — | (2.19 | ) | ||||||||||||||||||
| February 1, 2018 to September 30, 2018(e) | $ | 22.89 | 0.28 | (0.45 | ) | (0.17 | ) | (0.29 | ) | — | — | (0.29 | ) | |||||||||||||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 20.55 | 0.08 | (3.27 | ) | (3.19 | ) | (0.04 | ) | (1.64 | ) | — | (1.68 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 14.35 | 0.03 | 6.25 | 6.28 | (0.08 | ) | — | — | (0.08 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 16.48 | (0.02 | ) | (0.75 | ) | (0.77 | ) | (0.23 | ) | (1.13 | ) | — | (1.36 | ) | |||||||||||||||||
| Year Ended September 30, 2019 | $ | 19.44 | 0.11 | (0.78 | ) | (0.67 | ) | (0.03 | ) | (2.26 | ) | — | (2.29 | ) | ||||||||||||||||||
| February 1, 2018 to September 30, 2018(e) | $ | 20.22 | 0.03 | (0.81 | ) | (0.78 | ) | — | — | — | — | |||||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 19.60 | 0.22 | (2.48 | ) | (2.26 | ) | (0.21 | ) | (1.82 | ) | — | (2.03 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.97 | 0.17 | 7.60 | 7.77 | (0.14 | ) | — | — | (0.14 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 14.67 | 0.15 | (2.70 | ) | (2.55 | ) | (0.15 | ) | — | — | (0.15 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 18.84 | 0.23 | (2.10 | ) | (1.87 | ) | (0.32 | ) | (1.98 | ) | — | (2.30 | ) | ||||||||||||||||||
| February 1, 2018 to September 30, 2018(e) | $ | 18.59 | 0.17 | 0.08 | 0.25 | — | — | — | — | |||||||||||||||||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 35.51 | (0.04 | ) | (5.65 | ) | (5.69 | ) | — | (4.11 | ) | — | (4.11 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 26.22 | (0.01 | ) | 9.78 | 9.77 | (0.15 | ) | (0.33 | ) | — | (0.48 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 26.09 | 0.09 | 1.44 | 1.53 | (0.07 | ) | (1.33 | ) | — | (1.40 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 27.75 | 0.10 | 0.12 | 0.22 | (0.02 | ) | (1.86 | ) | — | (1.88 | ) | ||||||||||||||||||||
| February 1, 2018 to September 30, 2018(e) | $ | 26.44 | 0.04 | 1.42 | 1.46 | (0.15 | ) | — | — | (0.15 | ) | |||||||||||||||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 26.67 | 0.45 | (1.83 | ) | (1.38 | ) | (0.45 | ) | (0.48 | ) | — | (0.93 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 20.09 | 0.37 | 6.56 | 6.93 | (0.35 | ) | — | — | (0.35 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 21.34 | 0.43 | (0.40 | ) | 0.03 | (0.44 | ) | (0.84 | ) | — | (1.28 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 21.61 | 0.47 | 1.23 | 1.70 | (0.45 | ) | (1.52 | ) | — | (1.97 | ) | ||||||||||||||||||||
| February 1, 2018 to September 30, 2018(e) | $ | 21.49 | 0.30 | 0.12 | 0.42 | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 9.81 | 0.39 | (2.64 | ) | (2.25 | ) | (0.46 | ) | — | — | (0.46 | ) | |||||||||||||||||||
| Year Ended September 30, 2021 | $ | 8.14 | 0.29 | 1.62 | 1.91 | (0.24 | ) | — | — | (0.24 | ) | |||||||||||||||||||||
| Year Ended September 30, 2020 | $ | 9.49 | 0.27 | (1.32 | ) | (1.05 | ) | (0.30 | ) | — | — | (0.30 | ) | |||||||||||||||||||
| Year Ended September 30, 2019 | $ | 11.19 | 0.36 | (1.34 | ) | (0.98 | ) | (0.32 | ) | (0.40 | ) | — | (0.72 | ) | ||||||||||||||||||
| February 1, 2018 to September 30, 2018(e) | $ | 12.35 | 0.35 | (1.51 | ) | (1.16 | ) | — | — | — | — | |||||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 in the Notes to the Financial Statements). If such reductions had not occurred, the ratios would have been as indicated. |
| ** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
| (a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (b) | Not annualized for periods less than one year. |
| (c) | Annualized for periods less than one year. |
| (d) | Net Assets are below $1,000. |
| (e) | Period from commencement of operations. |
See accompanying Notes to the Financial Statements.
159
| Ratios/Supplementary Data | ||||||||||||||||||||||||||
| Net Asset Value, End of Year | Total Return (excludes sales charge)(b) | Net Assets, End of Year (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) | ||||||||||||||||||||
| $ | 20.40 | (9.48 | )% | $ | 1 | (d) | 0.59 | % | 2.09 | % | 0.59 | % | 125.15 | % | ||||||||||||
| $ | 22.99 | 37.92 | % | $ | 1 | (d) | 0.58 | % | 0.43 | % | 0.63 | % | 122.64 | % | ||||||||||||
| $ | 16.85 | (8.88 | )% | $ | — | (d) | 0.59 | % | 2.19 | % | 0.64 | % | 167.34 | % | ||||||||||||
| $ | 19.62 | (2.02 | )% | $ | 239,763 | 0.58 | % | 2.35 | % | 0.64 | % | 142.59 | % | |||||||||||||
| $ | 22.43 | (0.69 | )% | $ | 270,105 | 0.58 | % | 1.94 | % | 0.63 | % | 127.89 | % | |||||||||||||
| $ | 15.68 | (17.18 | )% | $ | 117 | 0.79 | % | 0.40 | % | 0.88 | % | 29.05 | % | |||||||||||||
| $ | 20.55 | 43.85 | % | $ | 402 | 0.79 | % | 0.17 | % | 0.97 | % | 34.00 | % | |||||||||||||
| $ | 14.35 | (5.56 | )% | $ | 3,477 | 0.54 | % | (0.06 | )% | 0.56 | % | 28.77 | % | |||||||||||||
| $ | 16.48 | (2.45 | )% | $ | 247,949 | 0.82 | % | 0.68 | % | 0.93 | % | 26.62 | % | |||||||||||||
| $ | 19.44 | (3.86 | )% | $ | 285,847 | 0.83 | % | 0.26 | % | 0.93 | % | 34.62 | % | |||||||||||||
| $ | 15.31 | (13.29 | )% | $ | 20,331 | 0.78 | % | 1.14 | % | 0.83 | % | 70.82 | % | |||||||||||||
| $ | 19.60 | 65.36 | % | $ | 83,819 | 0.75 | % | 0.96 | % | 0.81 | % | 110.07 | % | |||||||||||||
| $ | 11.97 | (17.63 | )% | $ | 70,372 | 0.74 | % | 1.11 | % | 0.82 | % | 119.76 | % | |||||||||||||
| $ | 14.67 | (9.29 | )% | $ | 210,436 | 0.73 | % | 1.53 | % | 0.80 | % | 124.82 | % | |||||||||||||
| $ | 18.84 | 1.34 | % | $ | 191,051 | 0.73 | % | 1.38 | % | 0.79 | % | 89.85 | % | |||||||||||||
| $ | 25.71 | (18.66 | )% | $ | 29,340 | 0.80 | % | (0.11 | )% | 0.88 | % | 28.06 | % | |||||||||||||
| $ | 35.51 | 37.67 | % | $ | 44,452 | 0.78 | % | (0.03 | )% | 0.87 | % | 27.20 | % | |||||||||||||
| $ | 26.22 | 5.87 | % | $ | 40,057 | 0.78 | % | 0.38 | % | 0.86 | % | 17.50 | % | |||||||||||||
| $ | 26.09 | 1.53 | % | $ | 355,672 | 0.77 | % | 0.40 | % | 0.86 | % | 17.31 | % | |||||||||||||
| $ | 27.75 | 5.60 | % | $ | 372,948 | 0.78 | % | 0.21 | % | 0.85 | % | 22.78 | % | |||||||||||||
| $ | 24.36 | (5.54 | )% | $ | 69,408 | 0.69 | % | 1.65 | % | 0.79 | % | 31.23 | % | |||||||||||||
| $ | 26.67 | 34.61 | % | $ | 70,388 | 0.68 | % | 1.50 | % | 0.79 | % | 13.00 | % | |||||||||||||
| $ | 20.09 | 0.21 | % | $ | 56,277 | 0.67 | % | 2.18 | % | 0.78 | % | 33.60 | % | |||||||||||||
| $ | 21.34 | 8.89 | % | $ | 345,806 | 0.66 | % | 2.28 | % | 0.77 | % | 23.20 | % | |||||||||||||
| $ | 21.61 | 2.03 | % | $ | 317,827 | 0.66 | % | 2.16 | % | 0.77 | % | 19.49 | % | |||||||||||||
| $ | 7.10 | (24.13 | )% | $ | 97,525 | 0.62 | % | 4.41 | % | 0.67 | % | 103.20 | % | |||||||||||||
| $ | 9.81 | 23.70 | % | $ | 85,736 | 0.63 | % | 3.04 | % | 0.74 | % | 158.16 | % | |||||||||||||
| $ | 8.14 | (11.49 | )% | $ | 69,236 | 0.63 | % | 3.10 | % | 0.83 | % | 164.02 | % | |||||||||||||
| $ | 9.49 | (8.48 | )% | $ | 78,307 | 0.61 | % | 3.77 | % | 0.89 | % | 97.74 | % | |||||||||||||
| $ | 11.19 | (9.39 | )% | $ | 62,804 | 0.62 | % | 4.63 | % | 0.87 | % | 96.65 | % | |||||||||||||
160
| Sterling Capital Funds |
Financial Highlights, Class R6 Shares
September 30, 2022
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 Real Estate Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 46.33 | 0.47 | (8.09 | ) | (7.62 | ) | (0.63 | ) | (2.99 | ) | — | (3.62 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 36.69 | 0.59 | 10.46 | 11.05 | (0.59 | ) | (0.82 | ) | — | (1.41 | ) | ||||||||||||||||||||
| January 31, 2020 to September 30, 2020(d) | $ | 41.35 | 0.36 | (4.26 | ) | (3.90 | ) | (0.76 | ) | — | — | (0.76 | ) | |||||||||||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 83.72 | 0.35 | (8.28 | ) | (7.93 | ) | (0.14 | ) | (17.27 | ) | — | (17.41 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 64.09 | 0.29 | 30.99 | 31.28 | (0.43 | ) | (11.22 | ) | — | (11.65 | ) | ||||||||||||||||||||
| January 31, 2020 to September 30, 2020(d) | $ | 77.13 | 0.49 | (13.53 | ) | (13.04 | ) | — | — | — | — | |||||||||||||||||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 8.68 | 0.11 | (0.51 | ) | (0.40 | ) | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||
| February 1, 2021 to September 30, 2021(d) | $ | 8.78 | 0.08 | (0.04 | ) | 0.04 | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||||||||||||||||||
| Year Ended September 30, 2022 | $ | 11.05 | 0.21 | (1.80 | ) | (1.59 | ) | (0.26 | ) | (0.09 | ) | — | (0.35 | ) | ||||||||||||||||||
| Year Ended September 30, 2021 | $ | 11.39 | 0.21 | (0.12 | ) | 0.09 | (0.28 | ) | (0.15 | ) | — | (0.43 | ) | |||||||||||||||||||
| Year Ended September 30, 2020 | $ | 10.89 | 0.28 | 0.54 | 0.82 | (0.32 | ) | — | (f) | — | (0.32 | ) | ||||||||||||||||||||
| Year Ended September 30, 2019 | $ | 10.20 | 0.33 | 0.71 | 1.04 | (0.35 | ) | — | — | (0.35 | ) | |||||||||||||||||||||
| January 31, 2018 to September 30, 2018(d) | $ | 10.48 | 0.21 | (0.27 | ) | (0.06 | ) | (0.22 | ) | — | — | (0.22 | ) | |||||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||||||||||||||||||
| January 31, 2022 to September 30, 2022(d) | $ | 9.16 | 0.19 | (2.52 | ) | (2.33 | ) | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||||||||
| * | During the periods certain fees were waived (See Note 4 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) | Net Assets are below $1,000. |
| (f) | Amount is less than $0.005. |
See accompanying Notes to the Financial Statements.
161
| Ratios/Supplementary Data | ||||||||||||||||||||||||||
| Net Asset Value, End of Year | Total Return (excludes sales charge)(b) | Net Assets, End of Year (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) | ||||||||||||||||||||
| $ | 35.09 | (18.31 | )% | $ | 18 | 0.73 | % | 1.06 | % | 0.82 | % | 12.58 | % | |||||||||||||
| $ | 46.33 | 30.67 | % | $ | 16 | 0.62 | % | 1.33 | % | 0.73 | % | 12.68 | % | |||||||||||||
| $ | 36.69 | (9.30 | )% | $ | — | (e) | 0.70 | % | 1.47 | % | 0.70 | % | 19.58 | % | ||||||||||||
| $ | 58.38 | (13.84 | )% | $ | 3,792 | 0.90 | % | 0.50 | % | 1.00 | % | 5.26 | % | |||||||||||||
| $ | 83.72 | 52.98 | % | $ | 3,656 | 0.88 | % | 0.36 | % | 1.02 | % | 6.15 | % | |||||||||||||
| $ | 64.09 | (16.91 | )% | $ | 2,882 | 0.87 | % | 1.17 | % | 1.09 | % | 8.33 | % | |||||||||||||
| $ | 8.08 | (4.70 | )% | $ | 17,460 | 0.39 | % | 1.27 | % | 0.48 | % | 76.98 | % | |||||||||||||
| $ | 8.68 | 0.44 | % | $ | 29,565 | 0.40 | % | 1.52 | % | 0.49 | % | 39.26 | % | |||||||||||||
| $ | 9.11 | (14.72 | )% | $ | 230,211 | 0.35 | % | 2.08 | % | 0.48 | % | 47.98 | % | |||||||||||||
| $ | 11.05 | 0.79 | % | $ | 348,271 | 0.35 | % | 1.88 | % | 0.52 | % | 48.80 | % | |||||||||||||
| $ | 11.39 | 7.70 | % | $ | 642,344 | 0.35 | % | 2.52 | % | 0.58 | % | 59.59 | % | |||||||||||||
| $ | 10.89 | 10.38 | % | $ | 350,129 | 0.35 | % | 3.20 | % | 0.58 | % | 79.40 | % | |||||||||||||
| $ | 10.20 | (0.52 | )% | $ | 281,637 | 0.35 | % | 3.16 | % | 0.59 | % | 62.28 | % | |||||||||||||
| $ | 6.63 | (25.75 | )% | $ | 22,553 | 0.36 | % | 3.81 | % | 0.57 | % | 161.62 | % | |||||||||||||
162
| Sterling Capital Funds |
September 30, 2022
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 Behavioral International Equity Fund, Sterling Capital SMID Opportunities Fund, Sterling Capital Mid Cap Relative Value Fund, Sterling Capital Real Estate Fund, Sterling Capital 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 Long Duration Corporate Bond Fund, Sterling Capital Quality Income 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 (referred to individually as a “Fund” and collectively as the “Funds”). 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.” All Funds are referred to as the “Variable Net Asset Value Funds.”
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.
The Funds are authorized to issue an unlimited amount of shares. As of September 30, 2022, the Funds discussed herein offered up to four classes of shares: Class A Shares, Class C Shares, Institutional Shares and Class R6 Shares. Class A 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 Behavioral International Equity Fund, Sterling Capital SMID Opportunities Fund, Sterling Capital Mid Cap Relative Value Fund, Sterling Capital Real Estate Fund, Sterling Capital Small Cap Value Fund and Sterling Capital Total Return Fund 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 Long Duration Corporate Bond Fund, Sterling Capital Quality Income 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 up to 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 Long Duration Corporate Bond Fund, Sterling Capital Total Return Bond Fund and Sterling Capital Quality Income Fund. With respect to the Tax-Free Funds, Sterling Capital Short Duration Bond Fund, Sterling Capital Intermediate U.S. Government Fund, Sterling Capital Long Duration Corporate Bond Fund, Sterling Capital Total Return Bond Fund, and Sterling Capital Quality Income Fund, sales of Class A shares of $250,000 or more are not subject to a sales load but will be subject to a CDSC of up to 0.50% of the purchase price if redeemed within 18 months of purchase. This charge is based on the lower of the price paid for the shares or their net asset value at the time of redemption. 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. Effective on the close of business on November 15, 2021, Class R Shares were converted into Class A Shares for the 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.
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.
163
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
2. Significant Accounting Policies:
The Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services-Investment Companies. 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 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 (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 by Sterling Capital Management LLC ("Sterling Capital" or the "Advisor") in accordance with certain Board-approved methodologies.
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 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. In December 2020, the Securities and Exchange Commission ("SEC") adopted Rule 2a-5 under the 1940 Act, which establishes requirements for determining fair value in good faith for purposes of the 1940 Act, including related oversight and reporting requirements. The rule also defines when market quotations are "readily available" for purposes of the 1940 Act, which is the threshold for determining whether a fund must fair value a security. The compliance date for Rule 2a-5 was September 8, 2022 (the "Compliance Date"). Effective as of the Compliance Date, the Board approved changes to the Funds' valuation policy to comply with Rule 2a-5 and designated Sterling Capital as the Fund's “Valuation Designee” (as defined in the rule). The Valuation Designee will be responsible determining fair value in good faith for any and all Fund investments, subject to Board oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee Sterling Capital's fair value determinations.
164
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
The summary of inputs used to determine the fair value of each Fund’s investments as of September 30, 2022 is as follows:
Level 1- | Level 2- | Level 3- | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Investments in Securities | ||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 27,807,296 | (a) | $ | — | $ | — | $ | 27,807,296 | |||||||
| Sterling Capital Mid Value Fund | 46,988,463 | (a) | — | — | 46,988,463 | |||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 35,694,747 | (a) | — | — | 35,694,747 | |||||||||||
| Sterling Capital Special Opportunities Fund | 497,414,053 | (a) | — | — | 497,414,053 | |||||||||||
| Sterling Capital Equity Income Fund | 2,015,181,709 | (a) | — | — | 2,015,181,709 | |||||||||||
| Sterling Capital Behavioral International Equity Fund | 3,828,823 | (b) | 93,463,693 | (a) | — | 97,292,516 | ||||||||||
| Sterling Capital SMID Opportunities Fund | 7,228,570 | (a) | — | — | 7,228,570 | |||||||||||
| Sterling Capital Mid Cap Relative Value Fund | 45,195,731 | (a) | — | — | 45,195,731 | |||||||||||
| Sterling Capital Real Estate Fund | 74,028,045 | (a) | — | — | 74,028,045 | |||||||||||
| Sterling Capital Small Cap Value Fund | 356,716,487 | (a) | — | — | 356,716,487 | |||||||||||
| Sterling Capital Ultra Short Bond Fund | 635,292 | (b) | 26,730,642 | (a) | — | 27,365,934 | ||||||||||
| Sterling Capital Short Duration Bond Fund | 1,422,405 | (b) | 103,564,371 | (a) | — | 104,986,776 | ||||||||||
| Sterling Capital Intermediate U.S. Government Fund | 748,989 | (b) | 16,411,034 | (a) | — | 17,160,023 | ||||||||||
| Sterling Capital Total Return Bond Fund | 13,989,821 | (b) | 1,057,296,961 | (a) | — | 1,071,286,782 | ||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 160,153 | (b) | 22,609,869 | (a) | — | 22,770,022 | ||||||||||
| Sterling Capital Quality Income Fund | 1,678,519 | (b) | 76,941,001 | (a) | — | 78,619,520 | ||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 4,804,153 | (b) | 145,664,135 | (a) | — | 150,468,288 | ||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 468,576 | (b) | 40,792,852 | (a) | — | 41,261,428 | ||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 4,187,487 | (b) | 78,379,761 | (a) | — | 82,567,248 | ||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 2,566,428 | (b) | 83,723,595 | (a) | — | 86,290,023 | ||||||||||
| (a) | Industries, countries or security types are disclosed in the Schedule of Portfolio Investments. |
| (b) | Represents money market funds and/or certain preferred stocks. |
Cash and Cash Equivalents — The Funds consider liquid assets deposited with a bank, and certain short term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Fund expenses or investments. The Funds may invest their excess cash in the Federated Treasury Obligations Fund or a similar money market fund or other short-term investment.
Credit Enhancements — Certain obligations held in the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements; and third party insurance (i.e., AMBAC).
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 Long Duration Corporate Bond Fund, Sterling Capital Quality Income Fund, and the Tax-Free Funds. Dividends from net investment income are declared and paid quarterly for Sterling Capital Mid Cap Relative Value Fund, Sterling Capital Real Estate Fund, Sterling Capital 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 and Sterling Capital SMID Opportunities Fund, if the annualized yield of the distribution exceeds an amount determined annually by the Board. Dividends from net investment income for Sterling Capital Behavioral International Equity Fund is 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. Distributions to shareholders are recorded on the ex-dividend date.
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.
165
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
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 — All Funds, except Sterling Capital SMID Opportunities Fund, Sterling Capital Intermediate U.S. Government Fund and the Tax-Free Funds, 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.
Options Contracts — Sterling Capital Special Opportunities Fund and Sterling Capital Equity Income Fund write (sell) “covered” call options on securities and purchase options on securities to close out options previously written by them.
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).
166
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
Sterling Capital Special Opportunities Fund and Sterling Capital Equity Income Fund may invest 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. Discounts and premiums on securities purchased are accreted and amortized over the lives of the respective securities. 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.
When-Issued and Forward Commitments — The Funds may purchase securities on a ��when-issued” basis. Sterling Capital Behavioral Large Cap Value Equity Fund, Sterling Capital Mid Value Fund, Sterling Capital Behavioral Small Cap Value Equity Fund, Sterling Capital Special Opportunities Fund and Sterling Capital Equity Income Fund may also purchase or sell securities on a forward commitment basis. The Funds record when-issued securities on the trade date and pledge assets with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase securities, and any subsequent fluctuation in their value, is taken into account when determining the net asset value of the Funds commencing with the date the Funds agree to purchase the securities. The Funds do not accrue interest or dividends on when-issued securities until the underlying securities are received.
Accounting Standards— In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The guidance is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management does not expect the adoption of ASU 2020-04 to have a material impact on the Funds’ financial statements.
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, 2022 were as follows:
| Purchases | Sales | |||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 41,015,137 | $ | 42,675,745 | ||||
| Sterling Capital Mid Value Fund | 18,491,442 | 35,877,454 | ||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 67,979,680 | 69,954,261 | ||||||
| Sterling Capital Special Opportunities Fund | 170,005,243 | 219,901,266 | ||||||
| Sterling Capital Equity Income Fund | 701,224,000 | 751,404,969 | ||||||
| Sterling Capital Behavioral International Equity Fund | 126,721,614 | 87,611,232 | ||||||
| Sterling Capital SMID Opportunities Fund | 2,239,597 | 4,387,113 | ||||||
| Sterling Capital Mid Cap Relative Value Fund | 4,375,541 | 18,791,520 | ||||||
| Sterling Capital Real Estate Fund | 11,854,818 | 16,798,413 | ||||||
| Sterling Capital Small Cap Value Fund | 23,758,253 | 128,973,418 | ||||||
| Sterling Capital Ultra Short Bond Fund | 15,407,290 | 20,648,756 | ||||||
| Sterling Capital Short Duration Bond Fund | 48,592,154 | 130,675,658 | ||||||
| Sterling Capital Intermediate U.S. Government Fund | 199,758 | 111,054 | ||||||
| Sterling Capital Total Return Bond Fund | 211,312,871 | 494,322,779 | ||||||
| Sterling Capital Long Duration Corporate Bond Fund | 33,423,218 | 9,449,786 | ||||||
167
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| Purchases | Sales | |||||||
| Sterling Capital Quality Income Fund | $ | 16,002,349 | $ | 2,058,142 | ||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 81,526,973 | 94,584,583 | ||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 6,168,272 | 39,475,684 | ||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 36,882,462 | 28,715,337 | ||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 17,853,980 | 15,738,114 | ||||||
Purchases and sales of U.S. government securities (excluding securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2022 were as follows:
| Purchases | Sales | |||||||
| Sterling Capital Short Duration Bond Fund | $ | 58,202,583 | $ | 40,410,888 | ||||
| Sterling Capital Intermediate U.S. Government Fund | 3,982,991 | 2,411,376 | ||||||
| Sterling Capital Total Return Bond Fund | 420,000,445 | 266,809,199 | ||||||
| Sterling Capital Long Duration Corporate Bond Fund | 25,213,600 | 24,429,494 | ||||||
| Sterling Capital Quality Income Fund | 44,467,662 | 24,058,199 | ||||||
During the fiscal year ended September 30, 2022, the Sterling Capital Behavioral Small Cap Value Fund permitted an in-kind redemption of its shares, accepting redemption for such shares in the form of securities that are permissible investments of the Fund. The redemption in-kind occurred on August 26, 2022 and totaled $60,098,000.
4. Related Party Transactions:
Under the terms of the investment advisory agreement, Sterling Capital 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, 2022:
| Prior to February 1, 2022 | Effective February 1, 2022 | |||||||||||||||
| Contractual Fee Rate | Fee Rate after Contractual Waivers | Contractual Fee Rate | Fee Rate after Contractual Waivers | |||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | 0.45 | % | 0.45 | %(1) | 0.45 | % | 0.45 | % | ||||||||
| Sterling Capital Mid Value Fund | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||
| Sterling Capital Special Opportunities Fund | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||
| Sterling Capital Equity Income Fund | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | ||||||||
| Sterling Capital Behavioral International Equity Fund | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | %(1) | ||||||||
| Sterling Capital SMID Opportunities Fund | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||
| Sterling Capital Mid Cap Relative Value Fund | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||
| Sterling Capital Real Estate Fund | 0.58 | % | 0.58 | % | 0.58 | % | 0.58 | % | ||||||||
| Sterling Capital Small Cap Value Fund | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||
| Sterling Capital Ultra Short Bond Fund | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||
| Sterling Capital Short Duration Bond Fund | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||
| Sterling Capital Intermediate U.S. Government Fund | 0.32 | % | 0.12 | %(2) | 0.32 | % | 0.32 | % | ||||||||
| Sterling Capital Total Return Bond Fund | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 0.35 | % | 0.31 | %(1),(2) | 0.25 | % | 0.25 | % | ||||||||
| Sterling Capital Quality Income Fund | 0.35 | % | 0.31 | %(2) | 0.35 | % | 0.31 | %(3) | ||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 0.35 | % | 0.35 | % | 0.35 | % | 0.35 | % | ||||||||
| (1) | For all or a portion of the year ended September 30, 2022, Sterling Capital voluntarily waived and/or reimbursed certain expenses of the Funds. Voluntary waivers and reimbursements of expenses may be discontinued at any time. |
| (2) | Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2021 through January 31, 2022. |
| (3) | Sterling Capital contractually agreed to limit the advisory fees paid by the Fund from February 1, 2022 through January 31, 2023. |
For the following Funds, Sterling Capital has contractually agreed to waive its investment advisory fees, pay Fund operating expenses, and/or reimburse fees or expenses, in order to limit expenses of the shares based on average daily net assets, excluding interest, taxes, acquired funds fees and extraordinary expenses. The expense limitations for the periods February 1, 2021 through January 31, 2022 and February 1, 2022 through January 31, 2023 are as follows:
168
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| Effective February 1, 2022 | ||||||||||||||||
| Class A | Class C | Institutional | Class R6 | |||||||||||||
| Sterling Capital SMID Opportunities Fund | 1.04 | % | 1.79 | % | 0.79 | % | – | % | ||||||||
| Sterling Capital Ultra Short Bond Fund | 0.52 | % | – | % | 0.27 | % | – | % | ||||||||
| Sterling Capital Intermediate U.S. Government Fund | 0.75 | % | 1.50 | % | 0.50 | % | – | % | ||||||||
| Sterling Capital Total Return Bond Fund | 0.70 | % | 1.45 | % | 0.45 | % | 0.45 | % | ||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 0.70 | % | 1.45 | % | 0.45 | % | 0.45 | % | ||||||||
| Prior to February 1, 2022 | ||||||||||||||||
| Class A | Class C | Institutional | Class R6 | |||||||||||||
| Sterling Capital SMID Opportunities Fund | 1.04 | % | 1.79 | % | 0.79 | % | – | % | ||||||||
| Sterling Capital Ultra Short Bond Fund | 0.52 | % | – | % | 0.27 | % | – | % | ||||||||
| Sterling Capital Intermediate U.S. Government Fund | 0.75 | % | 1.50 | % | 0.50 | % | – | % | ||||||||
| Sterling Capital Total Return Bond Fund | 0.70 | % | 1.45 | % | 0.45 | % | 0.45 | % | ||||||||
For the following Funds, Sterling Capital has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse a Fund the following levels with respect to the Funds' Class R6 Shares, effective for the period February 1, 2022 through January 31, 2023:
| Effective February 1, 2022 | ||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | 0.06 | % | ||
| Sterling Capital Mid Value Fund | 0.09 | % | ||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 0.05 | % | ||
| Sterling Capital Special Opportunities Fund | 0.08 | % | ||
| Sterling Capital Equity Income Fund | 0.10 | % | ||
| Sterling Capital Behavioral International Equity Fund | 0.05 | % | ||
| Sterling Capital Real Estate Fund | 0.09 | % | ||
| Sterling Capital Small Cap Value Fund | 0.10 | % | ||
| Sterling Capital Short Duration Bond Fund | 0.09 | % | ||
| Sterling Capital Total Return Bond Fund | 0.10 | % | ||
| Sterling Capital Long Duration Corporate Bond Fund | 0.09 | % | ||
For the following Funds, Sterling Capital contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse a Fund the following levels with respect to the Funds' Class R6 Shares, effective for the period February 1, 2022 to January 31, 2023:
| Prior to February 1, 2022 | ||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | 0.05 | % | ||
| Sterling Capital Mid Value Fund | 0.09 | % | ||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 0.05 | % | ||
| Sterling Capital Special Opportunities Fund | 0.08 | % | ||
| Sterling Capital Equity Income Fund | 0.10 | % | ||
| Sterling Capital Behavioral International Equity Fund | 0.05 | % | ||
| Sterling Capital Real Estate Fund | 0.09 | % | ||
| Sterling Capital Small Cap Value Fund | 0.10 | % | ||
| Sterling Capital Short Duration Bond Fund | 0.09 | % | ||
| Sterling Capital Total Return Bond Fund | 0.10 | % | ||
Sterling Capital serves as the administrator to the Funds pursuant to an administration agreement. The Funds pay their portion of a fee to Sterling Capital for providing administration services based on the aggregate assets of the 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.”
169
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
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. Expenses incurred are reflected on the Statements of Operations as “Compliance Service Fees.”
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% and 1.00% of the average daily net assets of the Class A Shares and Class C Shares, respectively. In addition, the Distributor is entitled to receive commissions on sales of shares of the Variable Net Asset Value Funds. For the fiscal year ended September 30, 2022, the Distributor received $183,288 from commissions earned on sales of shares of the Variable Net Asset Value Funds. The Distributor does not retain commissions for profit. These commissions and fees may be used by the Distributor to pay banks, broker dealers and other institutions, including affiliates of the Advisor.
The Advisor and/or its 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 and/or its 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. Commissions and finder’s fees financed by the Advisor and paid by the Distributor to affiliated broker-dealers during the fiscal year ended September 30, 2022 were $2,035.
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 $100,000 plus $7,500 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 $24,000, the Audit Committee Chairman receives additional compensation at the annual rate of $18,000, and the Chairman of the Nominations Committee receives additional compensation at the annual rate of $7,500. The fees are allocated across the Trust based upon relative net assets.
170
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| 5. | Capital Transactions: |
Transactions in Class A, Class C, Institutional, Class R and Class R6 Shares were:
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 46,240 | $ | 1,131,180 | 41,838 | $ | 852,810 | ||||||||||
| Reinvested | 19,445 | 445,439 | 15,398 | 288,409 | ||||||||||||
| Redeemed | (135,501 | ) | (3,192,006 | ) | (165,155 | ) | (3,392,430 | ) | ||||||||
| Total | (69,816 | ) | $ | (1,615,387 | ) | (107,919 | ) | $ | (2,251,211 | ) | ||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 406 | $ | 9,304 | 690 | $ | 13,830 | ||||||||||
| Reinvested | 116 | 2,568 | 186 | 3,360 | ||||||||||||
| Redeemed | (1,675 | ) | (37,798 | ) | (22,060 | ) | (406,813 | ) | ||||||||
| Total | (1,153 | ) | $ | (25,926 | ) | (21,184 | ) | $ | (389,623 | ) | ||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 17,254 | $ | 420,545 | 20,803 | $ | 407,986 | ||||||||||
| Reinvested | 1,262 | 29,327 | 981 | 18,502 | ||||||||||||
| Redeemed | (25,384 | ) | (605,648 | ) | (49,484 | ) | (1,014,454 | ) | ||||||||
| Total | (6,868 | ) | $ | (155,776 | ) | (27,700 | ) | $ | (587,966 | ) | ||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Reinvested | 1 | $ | 12 | 1 | $ | 5 | ||||||||||
| Total | 1 | $ | 12 | 1 | $ | 5 | ||||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 34,712 | $ | 658,109 | 50,933 | $ | 993,734 | ||||||||||
| Reinvested | 92,289 | 1,765,483 | 2,391 | 41,220 | ||||||||||||
| Redeemed | (167,340 | ) | (3,144,157 | ) | (230,271 | ) | (4,242,223 | ) | ||||||||
| Total | (40,339 | ) | $ | (720,565 | ) | (176,947 | ) | $ | (3,207,269 | ) | ||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 5,521 | $ | 90,828 | 1,452 | $ | 23,154 | ||||||||||
| Reinvested | 5,296 | 83,888 | — | — | ||||||||||||
| Redeemed | (38,319 | ) | (621,246 | ) | (69,838 | ) | (1,099,637 | ) | ||||||||
| Total | (27,502 | ) | $ | (446,530 | ) | (68,386 | ) | $ | (1,076,483 | ) | ||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 50,140 | $ | 961,643 | 654,893 | $ | 12,446,868 | ||||||||||
| Reinvested | 197,808 | 3,889,195 | 9,659 | 170,284 | ||||||||||||
| Redeemed | (899,900 | ) | (17,335,085 | ) | (718,028 | ) | (14,337,942 | ) | ||||||||
| Total | (651,952 | ) | $ | (12,484,247 | ) | (53,476 | ) | $ | (1,720,790 | ) | ||||||
171
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||
| Class R(1) | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 2 | $ | 45 | 54 | $ | 1,040 | ||||||||||
| Reinvested | — | — | — | 2 | ||||||||||||
| Redeemed | (430 | ) | (8,727 | ) | (1 | ) | (9 | ) | ||||||||
| Total | (428 | ) | $ | (8,682 | ) | 53 | $ | 1,033 | ||||||||
| Sterling Capital Mid Value Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | — | $ | — | 2,636 | $ | 43,186 | ||||||||||
| Reinvested | 3 | 52 | 23 | 394 | ||||||||||||
| Redeemed | (12,148 | ) | (245,375 | ) | (225,282 | ) | (4,063,386 | ) | ||||||||
| Total | (12,145 | ) | $ | (245,323 | ) | (222,623 | ) | $ | (4,019,806 | ) | ||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 19,604 | $ | 404,596 | 15,753 | $ | 278,950 | ||||||||||
| Reinvested | 36,543 | 677,365 | 2,768 | 40,284 | ||||||||||||
| Redeemed | (55,067 | ) | (1,066,272 | ) | (64,464 | ) | (1,091,075 | ) | ||||||||
| Total | 1,080 | $ | 15,689 | (45,943 | ) | $ | (771,841 | ) | ||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 4,739 | $ | 94,858 | 373 | $ | 6,142 | ||||||||||
| Reinvested | 196 | 3,421 | — | — | ||||||||||||
| Redeemed | (4,983 | ) | (100,534 | ) | (7,176 | ) | (114,167 | ) | ||||||||
| Total | (48 | ) | $ | (2,255 | ) | (6,803 | ) | $ | (108,025 | ) | ||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 278,012 | $ | 5,512,268 | 425,935 | $ | 7,544,347 | ||||||||||
| Reinvested | 70,757 | 1,330,352 | 4,254 | 62,444 | ||||||||||||
| Redeemed | (456,563 | ) | (8,495,763 | ) | (253,018 | ) | (4,326,883 | ) | ||||||||
| Total | (107,794 | ) | $ | (1,653,143 | ) | 177,171 | $ | 3,279,908 | ||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||
| Class R(1) | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 45 | $ | 892 | 2,132 | $ | 35,302 | ||||||||||
| Reinvested | — | — | 76 | 1,097 | ||||||||||||
| Redeemed | (13,648 | ) | (287,327 | ) | (3,570 | ) | (62,311 | ) | ||||||||
| Total | (13,603 | ) | $ | (286,435 | ) | (1,362 | ) | $ | (25,912 | ) | ||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | — | $ | — | 3,271 | $ | 54,841 | ||||||||||
| Reinvested | 470,794 | 8,845,595 | 57,955 | 851,367 | ||||||||||||
| Redeemed | (3,419,302 | ) | (60,098,000 | ) | (1,665,031 | ) | (31,836,646 | ) | ||||||||
| Total | (2,948,508 | ) | $ | (51,252,405 | ) | (1,603,805 | ) | $ | (30,930,438 | ) | ||||||
172
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 606,260 | $ | 17,829,825 | 899,419 | $ | 28,108,301 | ||||||||||
| Reinvested | 1,303,455 | 40,511,385 | 127,257 | 3,532,665 | ||||||||||||
| Redeemed | (1,374,958 | ) | (40,078,119 | ) | (1,619,012 | ) | (49,005,620 | ) | ||||||||
| Total | 534,757 | $ | 18,263,091 | (592,336 | ) | $ | (17,364,654 | ) | ||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 89,122 | $ | 2,036,385 | 85,196 | $ | 2,107,942 | ||||||||||
| Reinvested | 322,106 | 7,608,160 | 41,122 | 906,331 | ||||||||||||
| Redeemed | (753,972 | ) | (16,707,907 | ) | (1,238,202 | ) | (29,930,092 | ) | ||||||||
| Total | (342,744 | ) | $ | (7,063,362 | ) | (1,111,884 | ) | $ | (26,915,819 | ) | ||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,442,213 | $ | 44,693,075 | 1,223,082 | $ | 40,695,174 | ||||||||||
| Reinvested | 595,100 | 19,846,598 | 63,869 | 1,886,861 | ||||||||||||
| Redeemed | (1,587,962 | ) | (49,527,313 | ) | (1,708,623 | ) | (54,171,179 | ) | ||||||||
| Total | 449,351 | $ | 15,012,360 | (421,672 | ) | $ | (11,589,144 | ) | ||||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||
| Class R(1) | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | — | $ | — | 28 | $ | 693 | ||||||||||
| Reinvested | — | — | — | 14 | ||||||||||||
| Redeemed | (42 | ) | (1,476 | ) | (4,520 | ) | (115,349 | ) | ||||||||
| Total | (42 | ) | $ | (1,476 | ) | (4,492 | ) | $ | (114,642 | ) | ||||||
| Sterling Capital Special Opportunities Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 103,983 | $ | 3,118,518 | 75,987 | $ | 2,356,511 | ||||||||||
| Reinvested | 4,709 | 156,652 | 690 | 20,418 | ||||||||||||
| Redeemed | (219,268 | ) | (6,682,445 | ) | (352,462 | ) | (11,199,650 | ) | ||||||||
| Total | (110,576 | ) | $ | (3,407,275 | ) | (275,785 | ) | $ | (8,822,721 | ) | ||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,659,576 | $ | 45,526,877 | 3,995,959 | $ | 98,587,686 | ||||||||||
| Reinvested | 452,265 | 12,426,367 | 171,179 | 4,339,483 | ||||||||||||
| Redeemed | (2,456,046 | ) | (66,942,929 | ) | (2,838,113 | ) | (69,848,590 | ) | ||||||||
| Total | (344,205 | ) | $ | (8,989,685 | ) | 1,329,025 | $ | 33,078,579 | ||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 505,892 | $ | 13,683,057 | 377,612 | $ | 9,167,208 | ||||||||||
| Reinvested | 64,446 | 1,767,152 | 12,023 | 296,015 | ||||||||||||
| Redeemed | (960,780 | ) | (25,958,673 | ) | (3,324,223 | ) | (80,466,176 | ) | ||||||||
| Total | (390,442 | ) | $ | (10,508,464 | ) | (2,934,588 | ) | $ | (71,002,953 | ) | ||||||
173
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 14,791,804 | $ | 404,461,160 | 17,467,222 | $ | 430,631,193 | ||||||||||
| Reinvested | 1,584,767 | 43,629,829 | 616,486 | 15,718,369 | ||||||||||||
| Redeemed | (16,918,132 | ) | (463,156,528 | ) | (9,862,395 | ) | (244,303,420 | ) | ||||||||
| Total | (541,561 | ) | $ | (15,065,539 | ) | 8,221,313 | $ | 202,046,142 | ||||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||
| Class R(1) | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 49 | $ | 1,324 | 30,887 | $ | 782,739 | ||||||||||
| Reinvested | — | — | 671 | 16,723 | ||||||||||||
| Redeemed | (51,591 | ) | (1,463,090 | ) | (68,015 | ) | (1,752,490 | ) | ||||||||
| Total | (51,542 | ) | $ | (1,461,766 | ) | (36,457 | ) | $ | (953,028 | ) | ||||||
| Sterling Capital Equity Income Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 947,393 | $ | 25,720,185 | 944,445 | $ | 22,264,153 | ||||||||||
| Reinvested | 39,528 | 1,087,391 | 18,346 | 464,380 | ||||||||||||
| Redeemed | (776,741 | ) | (21,379,957 | ) | (1,124,786 | ) | (27,430,174 | ) | ||||||||
| Total | 210,180 | $ | 5,427,619 | (161,995 | ) | $ | (4,701,641 | ) | ||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 2,046 | $ | 18,619 | 7,910 | $ | 69,621 | ||||||||||
| Reinvested | 1,867 | 17,718 | 1,452 | 12,832 | ||||||||||||
| Redeemed | (10,509 | ) | (91,568 | ) | (11,774 | ) | (113,208 | ) | ||||||||
| Total | (6,596 | ) | $ | (55,231 | ) | (2,412 | ) | $ | (30,755 | ) | ||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 21 | $ | 204 | 71 | $ | 705 | ||||||||||
| Reinvested | 198 | 1,876 | 101 | 891 | ||||||||||||
| Redeemed | (1 | ) | (11 | ) | (74 | ) | (690 | ) | ||||||||
| Total | 218 | $ | 2,069 | 98 | $ | 906 | ||||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 2,560 | $ | 25,610 | 935 | $ | 9,368 | ||||||||||
| Reinvested | 3,309 | 31,374 | 2,040 | 18,010 | ||||||||||||
| Redeemed | (4,377 | ) | (41,267 | ) | (1,614,353 | ) | (14,734,958 | ) | ||||||||
| Total | 1,492 | $ | 15,717 | (1,611,378 | ) | $ | (14,707,580 | ) | ||||||||
| Sterling Capital Behavioral International Equity Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 4,583,206 | $ | 36,024,000 | — | $ | — | ||||||||||
| Reinvested | 422,301 | 4,003,413 | 235,591 | 2,082,632 | ||||||||||||
| Total | 5,005,507 | $ | 40,027,413 | 235,591 | $ | 2,082,632 | ||||||||||
174
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital SMID Opportunities Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,379 | $ | 20,967 | 37,980 | $ | 587,546 | ||||||||||
| Reinvested | 25,841 | 404,670 | — | — | ||||||||||||
| Redeemed | (38,609 | ) | (581,509 | ) | (76,597 | ) | (1,218,610 | ) | ||||||||
| Total | (11,389 | ) | $ | (155,872 | ) | (38,617 | ) | $ | (631,064 | ) | ||||||
| Sterling Capital SMID Opportunities Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 147 | $ | 2,200 | 1,063 | $ | 16,863 | ||||||||||
| Reinvested | 8,069 | 121,527 | — | — | ||||||||||||
| Redeemed | (47,327 | ) | (655,388 | ) | (6,800 | ) | (101,769 | ) | ||||||||
| Total | (39,111 | ) | $ | (531,661 | ) | (5,737 | ) | $ | (84,906 | ) | ||||||
| Sterling Capital SMID Opportunities Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 11,805 | $ | 164,466 | 14,716 | $ | 220,461 | ||||||||||
| Reinvested | 22,884 | 362,713 | — | — | ||||||||||||
| Redeemed | (82,782 | ) | (1,189,986 | ) | (159,154 | ) | (2,485,677 | ) | ||||||||
| Total | (48,093 | ) | $ | (662,807 | ) | (144,438 | ) | $ | (2,265,216 | ) | ||||||
| Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,205 | $ | 93,445 | 3,552 | $ | 228,722 | ||||||||||
| Reinvested | 354 | 27,374 | 30 | 2,010 | ||||||||||||
| Redeemed | (174 | ) | (11,811 | ) | (1,351 | ) | (83,360 | ) | ||||||||
| Total | 1,385 | $ | 109,008 | 2,231 | $ | 147,372 | ||||||||||
| Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 9 | $ | 729 | 15 | $ | 1,149 | ||||||||||
| Reinvested | 3 | 250 | — | 5 | ||||||||||||
| Total | 12 | $ | 979 | 15 | $ | 1,154 | ||||||||||
| Sterling Capital Mid Cap Relative Value Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 2,488 | $ | 200,026 | 17,072 | $ | 1,327,524 | ||||||||||
| Reinvested | 59,267 | 4,619,348 | 6,931 | 473,525 | ||||||||||||
| Redeemed | (175,326 | ) | (13,768,737 | ) | (107,394 | ) | (7,872,757 | ) | ||||||||
| Total | (113,571 | ) | $ | (8,949,363 | ) | (83,391 | ) | $ | (6,071,708 | ) | ||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 4,917 | $ | 226,188 | 4,693 | $ | 196,046 | ||||||||||
| Reinvested | 1,086 | 50,199 | 499 | 20,159 | ||||||||||||
| Redeemed | (2,372 | ) | (107,946 | ) | (4,268 | ) | (186,034 | ) | ||||||||
| Total | 3,631 | $ | 168,441 | 924 | $ | 30,171 | ||||||||||
175
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 357 | $ | 15,117 | 21 | $ | 1,000 | ||||||||||
| Reinvested | 270 | 12,595 | 127 | 4,949 | ||||||||||||
| Redeemed | (999 | ) | (43,125 | ) | (1,426 | ) | (56,202 | ) | ||||||||
| Total | (372 | ) | $ | (15,413 | ) | (1,278 | ) | $ | (50,253 | ) | ||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 129,299 | $ | 5,914,197 | 265,204 | $ | 10,813,943 | ||||||||||
| Reinvested | 147,479 | 6,869,233 | 71,046 | 2,880,895 | ||||||||||||
| Redeemed | (243,219 | ) | (10,740,629 | ) | (578,908 | ) | (25,636,626 | ) | ||||||||
| Total | 33,559 | $ | 2,042,801 | (242,658 | ) | $ | (11,941,788 | ) | ||||||||
| Sterling Capital Real Estate Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 137 | $ | 6,214 | 328 | $ | 13,868 | ||||||||||
| Reinvested | 30 | 1,363 | 6 | 250 | ||||||||||||
| Redeemed | (7 | ) | (335 | ) | (1 | ) | (20 | ) | ||||||||
| Total | 160 | $ | 7,242 | 333 | $ | 14,098 | ||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 4,726 | $ | 334,374 | 11,399 | $ | 910,833 | ||||||||||
| Reinvested | 9,538 | 698,451 | 5,127 | 349,012 | ||||||||||||
| Redeemed | (13,308 | ) | (911,984 | ) | (6,905 | ) | (524,432 | ) | ||||||||
| Total | 956 | $ | 120,841 | 9,621 | $ | 735,413 | ||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 981 | $ | 77,427 | 908 | $ | 74,265 | ||||||||||
| Reinvested | 1,371 | 94,969 | 643 | 41,968 | ||||||||||||
| Redeemed | (1,163 | ) | (70,198 | ) | (814 | ) | (63,837 | ) | ||||||||
| Total | 1,189 | $ | 102,198 | 737 | $ | 52,396 | ||||||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 391,138 | $ | 27,467,186 | 655,128 | $ | 51,516,884 | ||||||||||
| Reinvested | 1,184,084 | 87,493,753 | 916,791 | 62,862,358 | ||||||||||||
| Redeemed | (1,712,853 | ) | (121,143,954 | ) | (2,848,814 | ) | (219,208,647 | ) | ||||||||
| Total | (137,631 | ) | $ | (6,183,015 | ) | (1,276,895 | ) | $ | (104,829,405 | ) | ||||||
| Sterling Capital Small Cap Value Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 12,771 | $ | 1,180,452 | 4,022 | $ | 339,541 | ||||||||||
| Reinvested | 13,254 | 981,746 | 7,679 | 527,073 | ||||||||||||
| Redeemed | (4,736 | ) | (309,808 | ) | (13,007 | ) | (1,011,343 | ) | ||||||||
| Total | 21,289 | $ | 1,852,390 | (1,306 | ) | $ | (144,729 | ) | ||||||||
176
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Ultra Short Bond Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 684,394 | $ | 6,634,652 | 514,235 | $ | 5,042,688 | ||||||||||
| Reinvested | 7,902 | 76,086 | 3,821 | 37,444 | ||||||||||||
| Redeemed | (688,452 | ) | (6,646,022 | ) | (51,979 | ) | (509,581 | ) | ||||||||
| Total | 3,844 | $ | 64,716 | 466,077 | $ | 4,570,551 | ||||||||||
| Sterling Capital Ultra Short Bond Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 830,884 | $ | 8,056,006 | 1,483,876 | $ | 14,546,133 | ||||||||||
| Reinvested | 28,033 | 270,205 | 20,855 | 204,591 | ||||||||||||
| Redeemed | (2,060,051 | ) | (19,885,016 | ) | (1,612,690 | ) | (15,829,258 | ) | ||||||||
| Total | (1,201,134 | ) | $ | (11,558,805 | ) | (107,959 | ) | $ | (1,078,534 | ) | ||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 113,065 | $ | 948,671 | 87,395 | $ | 766,298 | ||||||||||
| Reinvested | 7,822 | 65,491 | 9,195 | 80,431 | ||||||||||||
| Redeemed | (176,507 | ) | (1,490,110 | ) | (72,934 | ) | (638,447 | ) | ||||||||
| Total | (55,620 | ) | $ | (475,948 | ) | 23,656 | $ | 208,282 | ||||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 7,148 | $ | 61,238 | 54,275 | $ | 473,163 | ||||||||||
| Reinvested | 1,085 | 9,111 | 1,241 | 10,850 | ||||||||||||
| Redeemed | (71,447 | ) | (596,567 | ) | (43,426 | ) | (380,462 | ) | ||||||||
| Total | (63,214 | ) | $ | (526,218 | ) | 12,090 | $ | 103,551 | ||||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 6,167,118 | $ | 51,425,144 | 5,459,027 | $ | 47,787,423 | ||||||||||
| Reinvested | 259,645 | 2,177,983 | 400,471 | 3,501,537 | ||||||||||||
| Redeemed | (14,800,334 | ) | (125,027,654 | ) | (7,144,887 | ) | (62,293,235 | ) | ||||||||
| Total | (8,373,571 | ) | $ | (71,424,527 | ) | (1,285,389 | ) | $ | (11,004,275 | ) | ||||||
| Sterling Capital Short Duration Bond Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,689,426 | $ | 13,901,832 | 3,417,306 | $ | 29,696,358 | ||||||||||
| Reinvested | 2,675 | 22,430 | 65 | 566 | ||||||||||||
| Redeemed | (2,936,346 | ) | (24,665,403 | ) | (13,042 | ) | (113,208 | ) | ||||||||
| Total | (1,244,245 | ) | $ | (10,741,141 | ) | 3,404,329 | $ | 29,583,716 | ||||||||
| Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 36,203 | $ | 324,650 | 22,535 | $ | 226,038 | ||||||||||
| Reinvested | 6,250 | 57,448 | 7,430 | 73,839 | ||||||||||||
| Redeemed | (50,390 | ) | (469,204 | ) | (71,461 | ) | (713,584 | ) | ||||||||
| Total | (7,937 | ) | $ | (87,106 | ) | (41,496 | ) | $ | (413,707 | ) | ||||||
177
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 862 | $ | 7,852 | 672 | $ | 6,663 | ||||||||||
| Reinvested | 162 | 1,486 | 284 | 2,817 | ||||||||||||
| Redeemed | (2,115 | ) | (19,760 | ) | (18,808 | ) | (187,602 | ) | ||||||||
| Total | (1,091 | ) | $ | (10,422 | ) | (17,852 | ) | $ | (178,122 | ) | ||||||
| Sterling Capital Intermediate U.S. Government Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 22,141 | $ | 209,755 | 1,548,650 | $ | 15,665,762 | ||||||||||
| Reinvested | 37,759 | 347,206 | 39,617 | 393,800 | ||||||||||||
| Redeemed | (108,728 | ) | (1,016,935 | ) | (719,213 | ) | (7,245,377 | ) | ||||||||
| Total | (48,828 | ) | $ | (459,974 | ) | 869,054 | $ | 8,814,185 | ||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 568,993 | $ | 5,770,503 | 2,260,247 | $ | 25,551,361 | ||||||||||
| Reinvested | 153,923 | 1,585,238 | 177,265 | 1,985,976 | ||||||||||||
| Redeemed | (980,344 | ) | (9,989,308 | ) | (1,966,158 | ) | (22,210,629 | ) | ||||||||
| Total | (257,428 | ) | $ | (2,633,567 | ) | 471,354 | $ | 5,326,708 | ||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 14,863 | $ | 142,332 | 70,420 | $ | 793,444 | ||||||||||
| Reinvested | 9,643 | 100,354 | 16,563 | 186,308 | ||||||||||||
| Redeemed | (128,754 | ) | (1,299,716 | ) | (331,499 | ) | (3,696,750 | ) | ||||||||
| Total | (104,248 | ) | $ | (1,057,030 | ) | (244,516 | ) | $ | (2,716,998 | ) | ||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 28,562,197 | $ | 288,645,267 | 35,830,628 | $ | 399,920,995 | ||||||||||
| Reinvested | 2,195,969 | 22,708,317 | �� | 2,546,915 | 28,542,253 | |||||||||||
| Redeemed | (48,063,346 | ) | (485,151,551 | ) | (27,578,996 | ) | (307,935,662 | ) | ||||||||
| Total | (17,305,180 | ) | $ | (173,797,967 | ) | 10,798,547 | $ | 120,527,586 | ||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||
| Class R(1) | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 10 | $ | 106 | 241 | $ | 2,685 | ||||||||||
| Reinvested | 4 | 50 | 95 | 1,056 | ||||||||||||
| Redeemed | (3,148 | ) | (34,409 | ) | (7 | ) | (79 | ) | ||||||||
| Total | (3,134 | ) | $ | (34,253 | ) | 329 | $ | 3,662 | ||||||||
| Sterling Capital Total Return Bond Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 7,524,078 | $ | 76,320,934 | 14,133,055 | $ | 157,869,661 | ||||||||||
| Reinvested | 744,467 | 7,668,378 | 1,392,703 | 15,644,998 | ||||||||||||
| Redeemed | (14,521,917 | ) | (146,863,772 | ) | (40,405,334 | ) | (447,181,438 | ) | ||||||||
| Total | (6,253,372 | ) | $ | (62,874,460 | ) | (24,879,576 | ) | $ | (273,666,779 | ) | ||||||
178
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 4,724 | $ | 41,419 | 16,220 | $ | 173,572 | ||||||||||
| Reinvested | 8,067 | 73,146 | 2,762 | 29,278 | ||||||||||||
| Redeemed | (7,184 | ) | (68,634 | ) | (4,289 | ) | (45,247 | ) | ||||||||
| Total | 5,607 | $ | 45,931 | 14,693 | $ | 157,603 | ||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,970 | $ | 20,383 | 460 | $ | 4,839 | ||||||||||
| Reinvested | 272 | 2,523 | 14 | 153 | ||||||||||||
| Redeemed | (2,196 | ) | (18,182 | ) | (450 | ) | (4,724 | ) | ||||||||
| Total | 46 | $ | 4,724 | 24 | $ | 268 | ||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 3,366,560 | $ | 30,840,102 | 50,064 | $ | 530,692 | ||||||||||
| Reinvested | 15,196 | 139,838 | 50,597 | 537,481 | ||||||||||||
| Redeemed | (3,986,777 | ) | (35,579,918 | ) | (1,199,766 | ) | (12,879,362 | ) | ||||||||
| Total | (605,021 | ) | $ | (4,599,978 | ) | (1,099,105 | ) | $ | (11,811,189 | ) | ||||||
| Sterling Capital Long Duration Corporate Bond Fund | ||||||||||||||||
| Class R6 | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 3,467,165 | $ | 30,642,201 | — | $ | — | ||||||||||
| Reinvested | 83,904 | 637,292 | — | — | ||||||||||||
| Redeemed | (147,782 | ) | (1,081,915 | ) | — | — | ||||||||||
| Total | 3,403,287 | $ | 30,197,578 | — | $ | — | ||||||||||
| Sterling Capital Quality Income Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,274 | $ | 12,275 | 1,831 | $ | 18,667 | ||||||||||
| Reinvested | 64 | 603 | 63 | 638 | ||||||||||||
| Redeemed | (623 | ) | (5,743 | ) | (1,429 | ) | (14,473 | ) | ||||||||
| Total | 715 | $ | 7,135 | 465 | $ | 4,832 | ||||||||||
| Sterling Capital Quality Income Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 22 | $ | 210 | 346 | $ | 3,504 | ||||||||||
| Reinvested | 4 | 38 | 4 | 37 | ||||||||||||
| Redeemed | (47 | ) | (427 | ) | (310 | ) | (3,129 | ) | ||||||||
| Total | (21 | ) | $ | (179 | ) | 40 | $ | 412 | ||||||||
| Sterling Capital Quality Income Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 3,973,722 | $ | 38,036,962 | 3,927,109 | $ | 39,815,276 | ||||||||||
| Reinvested | 75,495 | 707,963 | 63,072 | 640,709 | ||||||||||||
| Redeemed | (1,390,930 | ) | (13,070,271 | ) | (1,238,812 | ) | (12,554,637 | ) | ||||||||
| Total | 2,658,287 | $ | 25,674,654 | 2,751,369 | $ | 27,901,348 | ||||||||||
179
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 946,008 | $ | 9,544,746 | 232,333 | $ | 2,573,680 | ||||||||||
| Reinvested | 31,519 | 328,466 | 31,377 | 347,725 | ||||||||||||
| Redeemed | (1,316,412 | ) | (13,546,019 | ) | (441,643 | ) | (4,901,297 | ) | ||||||||
| Total | (338,885 | ) | $ | (3,672,807 | ) | (177,933 | ) | $ | (1,979,892 | ) | ||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 44,930 | $ | 452,133 | 10,532 | $ | 116,978 | ||||||||||
| Reinvested | 874 | 9,093 | 1,062 | 11,761 | ||||||||||||
| Redeemed | (70,301 | ) | (730,351 | ) | (122,210 | ) | (1,350,921 | ) | ||||||||
| Total | (24,497 | ) | $ | (269,125 | ) | (110,616 | ) | $ | (1,222,182 | ) | ||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 5,558,068 | $ | 57,292,898 | 2,947,749 | $ | 32,734,912 | ||||||||||
| Reinvested | 103,330 | 1,075,095 | 87,037 | 964,213 | ||||||||||||
| Redeemed | (6,835,815 | ) | (70,876,736 | ) | (1,642,723 | ) | (18,216,553 | ) | ||||||||
| Total | (1,174,417 | ) | $ | (12,508,743 | ) | 1,392,063 | $ | 15,482,572 | ||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 24,937 | $ | 275,190 | 971,065 | $ | 11,174,577 | ||||||||||
| Reinvested | 12,192 | 132,564 | 16,620 | 190,623 | ||||||||||||
| Redeemed | (331,419 | ) | (3,618,340 | ) | (1,044,630 | ) | (11,976,075 | ) | ||||||||
| Total | (294,290 | ) | $ | (3,210,586 | ) | (56,945 | ) | $ | (610,875 | ) | ||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 5,318 | $ | 56,000 | 1,736 | $ | 20,002 | ||||||||||
| Reinvested | 237 | 2,576 | 418 | 4,787 | ||||||||||||
| Redeemed | (25,264 | ) | (275,848 | ) | (32,497 | ) | (372,615 | ) | ||||||||
| Total | (19,709 | ) | $ | (217,272 | ) | (30,343 | ) | $ | (347,826 | ) | ||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 533,396 | $ | 5,808,595 | 1,163,980 | $ | 13,268,574 | ||||||||||
| Reinvested | 35,364 | 381,384 | 32,208 | 366,803 | ||||||||||||
| Redeemed | (3,509,711 | ) | (37,859,600 | ) | (1,193,275 | ) | (13,603,974 | ) | ||||||||
| Total | (2,940,951 | ) | $ | (31,669,621 | ) | 2,913 | $ | 31,403 | ||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 120,530 | $ | 1,339,229 | 100,162 | $ | 1,214,360 | ||||||||||
| Reinvested | 16,863 | 192,590 | 18,551 | 225,127 | ||||||||||||
| Redeemed | (266,302 | ) | (3,018,698 | ) | (101,935 | ) | (1,235,438 | ) | ||||||||
| Total | (128,909 | ) | $ | (1,486,879 | ) | 16,778 | $ | 204,049 | ||||||||
180
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| For the Year Ended | For the Year Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | |||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 707 | $ | 8,194 | — | $ | — | ||||||||||
| Reinvested | 18 | 204 | 311 | 3,792 | ||||||||||||
| Redeemed | (3,966 | ) | (46,102 | ) | (59,368 | ) | (716,138 | ) | ||||||||
| Total | (3,241 | ) | $ | (37,704 | ) | (59,057 | ) | $ | (712,346 | ) | ||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 2,110,606 | $ | 23,627,116 | 743,170 | $ | 9,021,037 | ||||||||||
| Reinvested | 10,715 | 122,402 | 12,238 | 148,454 | ||||||||||||
| Redeemed | (1,336,270 | ) | (15,156,212 | ) | (461,354 | ) | (5,590,795 | ) | ||||||||
| Total | 785,051 | $ | 8,593,306 | 294,054 | $ | 3,578,696 | ||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||
| Class A | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 986,569 | $ | 9,399,791 | 122,328 | $ | 1,258,711 | ||||||||||
| Reinvested | 28,268 | 277,047 | 37,602 | 386,517 | ||||||||||||
| Redeemed | (1,097,767 | ) | (10,395,528 | ) | (200,474 | ) | (2,061,930 | ) | ||||||||
| Total | (82,930 | ) | $ | (718,690 | ) | (40,544 | ) | $ | (416,702 | ) | ||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||
| Class C | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | — | $ | — | 1 | $ | 10 | ||||||||||
| Reinvested | 21 | 199 | 119 | 1,233 | ||||||||||||
| Redeemed | (1 | ) | (9 | ) | (27,162 | ) | (279,350 | ) | ||||||||
| Total | 20 | $ | 190 | (27,042 | ) | $ | (278,107 | ) | ||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | ||||||||||||||||
| Institutional | Shares | Amount | Shares | Amount | ||||||||||||
| Issued | 1,477,300 | $ | 14,410,877 | 1,406,990 | $ | 14,492,951 | ||||||||||
| Reinvested | 21,651 | 210,969 | 10,738 | 110,530 | ||||||||||||
| Redeemed | (1,277,968 | ) | (12,359,284 | ) | (1,344,741 | ) | (13,841,257 | ) | ||||||||
| Total | 220,983 | $ | 2,262,562 | 72,987 | $ | 762,224 | ||||||||||
| (1) | Effective November 15, 2021 (the “Conversion Date”), all outstanding Class R shares were converted into Class A shares (the “Class Conversions”). The Class Conversions were completed based on the share classes’ relative net asset values on the Conversion Date, without the imposition of any fees or expenses, such that each Class R shareholder received Class A shares having the same aggregate value as the Class R shares held. |
| 6. | Concentration of Credit Risk: |
The Tax-Free Funds invest primarily in debt instruments of municipal issuers in their respective states. The issuers’ abilities to meet their obligations may be affected by economic developments in a specific state or region.
| 7. | Focused Investment Risk: |
Focused Investment Risk are investments focused in asset classes, countries, regions, sectors, industries, or issuers that are subject to the same or similar risk factors and investments whose prices are closely correlated that are subject to greater overall risk than investments that are more diversified or whose prices are not as closely correlated. As of September 30, 2022, the Sterling Capital Behavioral International Equity Fund invested 25.1% of its net assets in Japanese securities. Additionally, the Sterling Capital Real Estate Fund invested 38.3% of its net assets in Specialized industries.
181
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
| 8. | 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 for shareholder liquidations only. 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 25, 2023. During the fiscal year ended September 30, 2022, each of the following Funds utilized its line of credit:
| Average Interest Rate | Average Loan Balance* | Number of Days Outstanding | Interest Expense Incurred | Maximum Amount Borrowed | ||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 2.75 | % | $ | 178,000 | 1 | $ | 14 | $ | 178,000 | |||||||||||
| Sterling Capital Special Opportunities Fund | 1.33 | % | 2,394,462 | 13 | 1,089 | 16,049,000 | ||||||||||||||
| Sterling Capital SMID Opportunities Fund | 1.25 | % | 20,000 | 1 | – | 20,000 | ||||||||||||||
| Sterling Capital Real Estate Fund | 2.75 | % | 42,000 | 1 | 3 | 42,000 | ||||||||||||||
| Sterling Capital Small Cap Value Fund | 1.25 | % | 12,563,600 | 5 | 2,181 | 13,046,000 | ||||||||||||||
| Sterling Capital Ultra Short Bond Fund | 3.50 | % | 3,128,000 | 3 | – | 6,417,000 | ||||||||||||||
| Sterling Capital Short Duration Bond Fund | 3.50 | % | 8,808,667 | 6 | 5,138 | 23,959,000 | ||||||||||||||
| Sterling Capital Total Return Bond Fund | 1.50 | % | 15,491,000 | 5 | 2,900 | 19,013,000 | ||||||||||||||
| * | Average loan balance was calculated by taking the sum of the loans outstanding for each day divided by the number of days the loans were outstanding. |
| 9. | Fund Ownership: |
As of September 30, 2022, Truist and its affiliates possessed, on behalf of its underlying accounts, voting or investment power with respect to the following Funds in the following amounts: 57% of the Behavioral Small Cap Value Equity Fund, 99% of the Behavioral International Equity Fund and 40% of the Ultra Short Bond Fund. As a result, Truist may be deemed to be a “controlling person” of each of the above mentioned Funds under the 1940 Act. Additionally, one non-affiliated shareholder, owning 96%, held more than 25% of the shares outstanding of the Intermediate U.S. Government Fund-Class I Shares and may be deemed to control this Fund.
| 10. | 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 year, 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 are permitted to be carried forward without expiration. Such capital losses will retain their character as either short-term or long-term capital losses.
182
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
At September 30, 2022, 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 Losses | Long-term Losses | |||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | (16,835,154 | ) | $ | — | |||
| Sterling Capital Behavioral International Equity Fund | (8,662,585 | ) | — | |||||
| Sterling Capital Ultra Short Bond Fund | (83,985 | ) | (946,245 | ) | ||||
| Sterling Capital Short Duration Bond Fund | (825,633 | ) | (5,436,295 | ) | ||||
| Sterling Capital Intermediate U.S. Government Fund | (373,549 | ) | (725,870 | ) | ||||
| Sterling Capital Total Return Bond Fund | (50,999 | ) | — | |||||
| Sterling Capital Quality Income Fund | (1,403,070 | ) | (557,270 | ) | ||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | (300,235 | ) | — | |||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | (30,193 | ) | — | |||||
Capital loss carryforwards utilized in the current year were as follows:
| Utilized Capital Loss Carryforwards | ||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 2,529,701 | ||
| Sterling Capital Behavioral International Equity Fund | 365,798 | |||
| Sterling Capital Short Duration Bond Fund | 72,840 | |||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 14,231 | |||
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., redemptions in-kind, net operating losses and equalization utilized), 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.
| Increase/ (Decrease) Paid-in-Capital | Increase/ (Decrease) Distributable Earnings | |||||||
| Sterling Capital Mid Value Fund | $ | 945,229 | $ | (945,229 | ) | |||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 8,546,740 | (8,546,740 | ) | |||||
| Sterling Capital Special Opportunities Fund | 2,626,553 | (2,626,553 | ) | |||||
| Sterling Capital Equity Income Fund | 15,003,931 | (15,003,931 | ) | |||||
| Sterling Capital SMID Opportunities Fund | 92,572 | (92,572 | ) | |||||
| Sterling Capital Mid Cap Relative Value Fund | 550,876 | (550,876 | ) | |||||
| Sterling Capital Real Estate Fund | 313,739 | (313,739 | ) | |||||
| Sterling Capital Small Cap Value Fund | 10,043,519 | (10,043,519 | ) | |||||
183
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2022 was as follows:
| Distributions paid from | ||||||||||||||||||||
| Ordinary Income | Net Long- Term Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid* | ||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 518,406 | $ | — | $ | 518,406 | $ | — | $ | 518,406 | ||||||||||
| Sterling Capital Mid Value Fund | 3,025,584 | 3,001,788 | �� | 6,027,372 | — | 6,027,372 | ||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 1,145,447 | 9,770,223 | 10,915,670 | — | 10,915,670 | |||||||||||||||
| Sterling Capital Special Opportunities Fund | 3,009,729 | 77,664,798 | 80,674,527 | — | 80,674,527 | |||||||||||||||
| Sterling Capital Equity Income Fund | 33,703,773 | 41,216,260 | 74,920,033 | — | 74,920,033 | |||||||||||||||
| Sterling Capital Behavioral International Equity Fund | 4,057,335 | — | 4,057,335 | — | 4,057,335 | |||||||||||||||
| Sterling Capital SMID Opportunities Fund | 2,871 | 947,830 | 950,701 | — | 950,701 | |||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | 953,965 | 4,075,092 | 5,029,057 | — | 5,029,057 | |||||||||||||||
| Sterling Capital Real Estate Fund | 1,606,241 | 6,040,796 | 7,647,037 | — | 7,647,037 | |||||||||||||||
| Sterling Capital Small Cap Value Fund | 3,425,428 | 103,238,958 | 106,664,386 | — | 106,664,386 | |||||||||||||||
| Sterling Capital Ultra Short Bond Fund | 517,531 | — | 517,531 | — | 517,531 | |||||||||||||||
| Sterling Capital Short Duration Bond Fund | 3,060,515 | — | 3,060,515 | — | 3,060,515 | |||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | 422,409 | — | 422,409 | — | 422,409 | |||||||||||||||
| Sterling Capital Total Return Bond Fund | 33,469,774 | 11,121,245 | 44,591,019 | — | 44,591,019 | |||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 779,062 | 573,447 | 1,352,509 | — | 1,352,509 | |||||||||||||||
| Sterling Capital Quality Income Fund | 1,536,725 | — | 1,536,725 | — | 1,536,725 | |||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 172,396 | — | 172,396 | 2,750,935 | 2,923,331 | |||||||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 31,880 | — | 31,880 | 1,178,534 | 1,210,414 | |||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 345,744 | 87,833 | 433,577 | 928,912 | 1,362,489 | |||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 26,734 | 7,835 | 34,569 | 1,545,334 | 1,579,903 | |||||||||||||||
| * | 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 also 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. |
184
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2021 was as follows:
| Distributions paid from | ||||||||||||||||||||||||
| Ordinary Income | Net Long- Term Gains | Total Taxable Distributions | Return Of Capital | Tax Exempt Distributions | Total Distributions Paid* | |||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 66,228 | $ | — | $ | 66,228 | $ | 256,144 | $ | — | $ | 322,372 | ||||||||||||
| Sterling Capital Mid Value Fund | 460,102 | 133,548 | 593,650 | — | — | 593,650 | ||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 1,079,648 | 364,960 | 1,444,608 | — | — | 1,444,608 | ||||||||||||||||||
| Sterling Capital Special Opportunities Fund | 665,760 | 12,633,008 | 13,298,768 | — | — | 13,298,768 | ||||||||||||||||||
| Sterling Capital Equity Income Fund | 26,618,496 | 844,914 | 27,463,410 | — | — | 27,463,410 | ||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | 2,447,303 | — | 2,447,303 | — | — | 2,447,303 | ||||||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | 336,325 | 371,713 | 708,038 | — | — | 708,038 | ||||||||||||||||||
| Sterling Capital Real Estate Fund | 1,501,501 | 2,345,379 | 3,846,880 | — | — | 3,846,880 | ||||||||||||||||||
| Sterling Capital Small Cap Value Fund | 3,671,687 | 90,883,296 | 94,554,983 | — | — | 94,554,983 | ||||||||||||||||||
| Sterling Capital Ultra Short Bond Fund | 403,885 | — | 403,885 | — | — | 403,885 | ||||||||||||||||||
| Sterling Capital Short Duration Bond Fund | 4,457,417 | — | 4,457,417 | — | — | 4,457,417 | ||||||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | 540,540 | — | 540,540 | — | — | 540,540 | ||||||||||||||||||
| Sterling Capital Total Return Bond Fund | 60,987,228 | 2,953,951 | 63,941,179 | — | — | 63,941,179 | ||||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 411,957 | 546,278 | 958,235 | — | — | 958,235 | ||||||||||||||||||
| Sterling Capital Quality Income Fund | 843,908 | — | 843,908 | — | — | 843,908 | ||||||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 5,954 | — | 5,954 | — | 2,810,460 | 2,816,414 | ||||||||||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 2,963 | — | 2,963 | — | 1,483,035 | 1,485,998 | ||||||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 78,444 | 197,736 | 276,180 | — | 1,159,903 | 1,436,083 | ||||||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 177 | 60,776 | 60,953 | — | 1,682,325 | 1,743,278 | ||||||||||||||||||
| * | 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 also 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. |
185
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
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 Funds had deferred qualified late-year losses, which will be treated as arising on the first business day of the taxable year ending September 30, 2023:
| Qualified Late-Year Ordinary Losses | Qualified Late-Year Short-term Capital Losses | Qualified Late-Year Long-term Capital Losses | ||||||||||
| Sterling Capital Special Opportunities Fund | $ | 1,485,152 | $ | — | $ | — | ||||||
| Sterling Capital Behavioral International Equity Fund | 97,007 | 8,360,459 | — | |||||||||
| Sterling Capital Ultra Short Bond Fund | — | 113,985 | 106,808 | |||||||||
| Sterling Capital Short Duration Bond Fund | — | 1,034,453 | 1,748,085 | |||||||||
| Sterling Capital Intermediate U.S. Government Fund | — | 17,475 | 265,221 | |||||||||
| Sterling Capital Total Return Bond Fund | — | 11,166,011 | 33,222,802 | |||||||||
| Sterling Capital Long Duration Corporate Bond Fund | — | 577,921 | — | |||||||||
| Sterling Capital Quality Income Fund | — | 507,835 | 187,981 | |||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | — | 1,880,877 | 2,045,035 | |||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | — | 74,129 | 379,472 | |||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | — | 566,090 | 700,092 | |||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | — | 39,613 | 981,310 | |||||||||
186
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
As of September 30, 2022, the components of distributable earnings (accumulated deficit) on a tax basis were as follows:
| Undistributed Ordinary Income/ Tax Exempt Income | Undistributed Long Term Capital Gains | Distributable Earnings | Distributions Payable | Accumulated Capital and Other Losses | Unrealized Appreciation (Depreciation)* | Total Distributable Earnings (Accumulated Deficit) | ||||||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 47,312 | $ | — | $ | 47,312 | $ | — | $ | (16,835,154 | ) | $ | (709,088 | ) | $ | (17,496,930 | ) | |||||||||||
| Sterling Capital Mid Value Fund | 118,760 | 7,574,516 | 7,693,276 | — | — | 5,371,602 | 13,064,878 | |||||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 211,870 | — | 211,870 | — | — | (644,880 | ) | (433,010 | ) | |||||||||||||||||||
| Sterling Capital Special Opportunities Fund | — | 35,858,790 | 35,858,790 | — | (1,485,152 | ) | 155,762,333 | 190,135,971 | ||||||||||||||||||||
| Sterling Capital Equity Income Fund | 22,059,196 | 112,835,208 | 134,894,404 | — | — | 515,114,622 | 650,009,026 | |||||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | 3,226,016 | — | 3,226,016 | — | (17,120,051 | ) | (12,608,991 | ) | (26,503,026 | ) | ||||||||||||||||||
| Sterling Capital SMID Opportunities Fund | 5,033 | 737,356 | 742,389 | — | — | 856,153 | 1,598,542 | |||||||||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | 280,045 | 6,835,266 | 7,115,311 | — | — | 17,220,432 | 24,335,743 | |||||||||||||||||||||
| Sterling Capital Real Estate Fund | — | 4,653,502 | 4,653,502 | — | — | 24,753,655 | 29,407,157 | |||||||||||||||||||||
| Sterling Capital Small Cap Value Fund | 961,978 | 74,259,613 | 75,221,591 | — | — | 217,444,138 | 292,665,729 | |||||||||||||||||||||
| Sterling Capital Ultra Short Bond Fund | 9,757 | — | 9,757 | (11,205 | ) | (1,251,023 | ) | (678,627 | ) | (1,931,098 | ) | |||||||||||||||||
| Sterling Capital Short Duration Bond Fund | 148,713 | — | 148,713 | (60,605 | ) | (9,044,466 | ) | (6,553,436 | ) | (15,509,794 | ) | |||||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | 125,912 | — | 125,912 | (753 | ) | (1,382,115 | ) | (2,146,627 | ) | (3,403,583 | ) | |||||||||||||||||
| Sterling Capital Total Return Bond Fund | 2,608,827 | — | 2,608,827 | (733,320 | ) | (44,439,812 | ) | (159,478,307 | ) | (202,042,612 | ) | |||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 11,020 | — | 11,020 | (298 | ) | (577,921 | ) | (8,282,196 | ) | (8,849,395 | ) | |||||||||||||||||
| Sterling Capital Quality Income Fund | 80,821 | — | 80,821 | (80,738 | ) | (2,656,156 | ) | (8,805,010 | ) | (11,461,083 | ) | |||||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 224,552 | — | 224,552 | (111,981 | ) | (4,226,147 | ) | (5,820,351 | ) | (9,933,927 | ) | |||||||||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 65,568 | — | 65,568 | (37,100 | ) | (483,794 | ) | (1,924,248 | ) | (2,379,574 | ) | |||||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 163,288 | — | 163,288 | (100,120 | ) | (1,266,182 | ) | (3,031,377 | ) | (4,234,391 | ) | |||||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 194,204 | — | 194,204 | (113,130 | ) | (1,020,923 | ) | (4,347,446 | ) | (5,287,295 | ) | |||||||||||||||||
| * | The primary differences between book basis and tax basis unrealized appreciation (depreciation) were due to the deferral of losses on wash sales, straddle loss deferral, and the deferral of market discount and premium until time of sale and real estate investment trust adjustments. |
187
| Sterling Capital Funds |
Notes to Financial Statements — (continued)
September 30, 2022
As of September 30, 2022, federal income tax cost, gross unrealized appreciation and gross unrealized depreciation on securities were as follows:
| Tax Cost | Gross Tax Unrealized Appreciation | Gross Tax Unrealized Depreciation | Net Tax Unrealized Appreciation (Depreciation) | |||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | 28,516,384 | $ | 2,268,432 | $ | (2,977,520 | ) | $ | (709,088 | ) | ||||||
| Sterling Capital Mid Value Fund | 41,616,861 | 10,730,227 | (5,358,625 | ) | 5,371,602 | |||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 36,339,627 | 4,357,365 | (5,002,245 | ) | (644,880 | ) | ||||||||||
| Sterling Capital Special Opportunities Fund | 341,651,720 | 184,707,483 | (28,945,150 | ) | 155,762,333 | |||||||||||
| Sterling Capital Equity Income Fund | 1,500,067,087 | 602,523,805 | (87,409,183 | ) | 515,114,622 | |||||||||||
| Sterling Capital Behavioral International Equity Fund | 109,844,442 | 1,208,300 | (13,760,226 | ) | (12,551,926 | ) | ||||||||||
| Sterling Capital SMID Opportunities Fund | 6,372,417 | 1,435,305 | (579,152 | ) | 856,153 | |||||||||||
| Sterling Capital Mid Cap Relative Value Fund | 27,975,299 | 19,101,003 | (1,880,571 | ) | 17,220,432 | |||||||||||
| Sterling Capital Real Estate Fund | 49,274,390 | 26,859,322 | (2,105,667 | ) | 24,753,655 | |||||||||||
| Sterling Capital Small Cap Value Fund | 139,272,349 | 221,713,915 | (4,269,777 | ) | 217,444,138 | |||||||||||
| Sterling Capital Ultra Short Bond Fund | 28,044,561 | 1,389 | (680,016 | ) | (678,627 | ) | ||||||||||
| Sterling Capital Short Duration Bond Fund | 111,540,212 | 68,241 | (6,621,677 | ) | (6,553,436 | ) | ||||||||||
| Sterling Capital Intermediate U.S. Government Fund | 19,306,650 | — | (2,146,627 | ) | (2,146,627 | ) | ||||||||||
| Sterling Capital Total Return Bond Fund | 1,230,765,089 | 853,873 | (160,332,180 | ) | (159,478,307 | ) | ||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 31,052,218 | — | (8,282,196 | ) | (8,282,196 | ) | ||||||||||
| Sterling Capital Quality Income Fund | 87,424,530 | 9,792 | (8,814,802 | ) | (8,805,010 | ) | ||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | 156,288,639 | 13,704 | (5,834,055 | ) | (5,820,351 | ) | ||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | 43,185,676 | — | (1,924,248 | ) | (1,924,248 | ) | ||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 85,598,625 | 3,688 | (3,035,065 | ) | (3,031,377 | ) | ||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 90,637,469 | 90,019 | (4,437,465 | ) | (4,347,446 | ) | ||||||||||
| 11. | 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 no events that require recognition or disclosure in the financial statements.
188
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of
Sterling Capital Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of Sterling Capital Funds comprising 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 Behavioral International Equity Fund, Sterling Capital SMID Opportunities Fund, Sterling Capital Mid Cap Relative Value Fund (formerly, Sterling Capital Stratton Mid Cap Value Fund), Sterling Capital Real Estate Fund (formerly, Sterling Capital Stratton Real Estate Fund), Sterling Capital Small Cap Value Fund (formerly, 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 Long Duration Corporation Bond Fund (formerly, Sterling Capital Corporate Fund), Sterling Capital Quality Income 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 (the “Funds”) as of September 30, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four years in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2022, the results of their operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
The Funds’ financial highlights for the year ended September 30, 2018, were audited by other auditors whose report dated November 21, 2018, expressed an unqualified opinion on those financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
COHEN & COMPANY, LTD.
800.229.1099 | 866.818.4535 fax | cohencpa.com
Registered with the Public Company Accounting Oversight Board
189
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Funds’ auditor since 2019.
COHEN & COMPANY, LTD.
Milwaukee, Wisconsin
November 28, 2022
190
| Sterling Capital Funds |
September 30, 2022
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, 2022, each Fund is reporting the following items with regard to distributions paid during the year.
| Long-Term Capital Gain | Qualified Dividend Income % | (for corporate shareholders) Dividends Received Deduction % | Exempt- Interest Dividend | U.S. Government Income | Foreign Taxes Paid | Foreign Source Income | ||||||||||||||||||||||
| Sterling Capital Behavioral Large Cap Value Equity Fund | $ | — | 100.00 | % | 100.00 | % | $ | — | — | $ | — | $ | — | |||||||||||||||
| Sterling Capital Mid Value Fund | 3,001,788 | 24.09 | % | 24.08 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Behavioral Small Cap Value Equity Fund | 9,770,223 | 100.00 | % | 100.00 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Special Opportunities Fund | 77,664,798 | 100.00 | % | 100.00 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Equity Income Fund | 41,216,260 | 88.10 | % | 79.31 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Behavioral International Equity Fund | — | 79.06 | % | — | — | — | 711,532 | 8,164,220 | ||||||||||||||||||||
| Sterling Capital SMID Opportunities Fund | 947,830 | 100.00 | % | 100.00 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Mid Cap Relative Value Fund | 4,075,092 | 85.73 | % | 92.41 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Real Estate Fund | 6,040,796 | — | — | — | — | — | — | |||||||||||||||||||||
| Sterling Capital Small Cap Value Fund | 103,238,958 | 100.00 | % | 100.00 | % | — | — | — | — | |||||||||||||||||||
| Sterling Capital Ultra Short Duration Bond Fund | — | — | — | — | 0.83 | % | — | — | ||||||||||||||||||||
| Sterling Capital Short Duration Bond Fund | — | — | — | — | 6.20 | % | — | — | ||||||||||||||||||||
| Sterling Capital Intermediate U.S. Government Fund | — | — | — | — | 4.59 | % | — | — | ||||||||||||||||||||
| Sterling Capital Total Return Bond Fund | 11,121,245 | — | 0.01 | % | — | 6.05 | % | — | — | |||||||||||||||||||
| Sterling Capital Long Duration Corporate Bond Fund | 573,447 | 0.95 | % | 0.95 | % | — | 0.17 | % | — | — | ||||||||||||||||||
| Sterling Capital Quality Income Fund | — | — | — | — | 0.27 | % | — | — | ||||||||||||||||||||
| Sterling Capital North Carolina Intermediate Tax-Free Fund | — | — | — | — | 95.22 | % | — | — | ||||||||||||||||||||
| Sterling Capital South Carolina Intermediate Tax-Free Fund | — | — | — | — | 96.79 | % | — | — | ||||||||||||||||||||
| Sterling Capital Virginia Intermediate Tax-Free Fund | 87,833 | — | — | — | 82.93 | % | — | — | ||||||||||||||||||||
| Sterling Capital West Virginia Intermediate Tax-Free Fund | 7,835 | — | — | — | 99.13 | % | — | — | ||||||||||||||||||||
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 30th 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 as an exhibit to its reports on Form N-PORT. The Funds’ Forms N-PORT reports, once filed, will be available without charge on the Commission’s website at www.sec.gov.
191
| Sterling Capital Funds |
September 30, 2022
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 | |||||
| Name and Birthdate | Position(s) Held With the Funds | Term of Office/ Length of Time Served | Principal Occupation During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships Held 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. | 20 | 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 | 20 | 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 | 20 | 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 | 20 | None |
| Alan G. Priest Birthdate: 05/52 | Trustee | Indefinite, 07/12 — Present | Retired; from April 1993 to April 2012, Partner, Ropes & Gray LLP | 20 | None |
| Kimberly Storms Birthdate: 05/72 | Trustee | Indefinite, 10/22 -Present | From 2004-2021, Senior Vice President and Director of Fund Administration SS&C ALPS; from 2012 to 2020, Principal Financial Officer of ALPS Series Trust (2012- 2020), Financial Investors Trust (2013-2020), Liberty All-Star Funds (2013-2020) and Cambria ETF Trust (2020) | 20 | Trustee, Consortio Funds Trust (2022 Present) |
| David L. Wedding Birthdate: 08/58 | Trustee | Indefinite, 10/22 -Present | Retired; from 2005 to 2020, Partner, Grant Thornton LLP | 20 | Board Member (2011-2020) and Chair of the Board (2012-2018), Grant Thornton LLP |
192
| Sterling Capital Funds |
September 30, 2022
On October 12, 2022 a special meeting of the shareholder of the Sterling Capital Funds was held pursuant to the notice given to all shareholders of record as of close of business on August 23, 2022, to elect Trustees of each Fund, each to hold offce until their successors are duly elected and qualified. A quorum was established with greater than 50% of Trust outstanding share votes cast, in favor or, all Trustees.
The following table shows information for the trustee who is an “interested person” of the Funds as defined in the 1940 Act:
| INTERESTED TRUSTEES | |||||
| Name and Birthdate | Position(s) Held With the Funds | Term of Office/ Length of Time Served | Principal Occupation During the Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships Held by Trustee |
| Alexander W. McAlister* Birthdate: 03/60 | Trustee | Indefinite, 11/10 — Present | From August 1981 to present, President, Sterling Capital Management LLC | 20 | 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 1940Act) of the Funds because he is an officer of the Advisor. |
The following table shows information for officers of the Funds as of September 30, 2022:
| Name and Birthdate | Position(s) Held With the Funds | Term of Office/ Length of Time Served | Principal Occupation During the Past 5 Years |
| James T. Gillespie Birthdate: 11/66 | President | Indefinite, 12/12 — Present | From August 2020 to present, Managing Director, Sterling Capital Management LLC; From March 2012 to August 2020, Executive Director, Sterling Capital Management LLC; From June 2010 to March 2012, Director, Sterling Capital Management LLC and its predecessors |
| Todd M. Miller Birthdate: 09/71 | Treasurer and Secretary | Indefinite, Treasurer, 01/15 — Present; Secretary, 08/10 — Present | From May 2021 to present, Executive Director, from June 2009 to May 2021, Director, Sterling Capital Management LLC and its predecessors |
| Michelle A. Whalen Birthdate: 04/69 | Vice President | Indefinite, 11/15 — Present | From May 2021 to present, Director, from August 2015 to May 2021 Associate Director & Senior Mutual Fund Administrator, Sterling Capital; from September 2000 to July 2015, Supervisor |
| Charles A. Durham Birthdate: 06/79 | Chief Compliance and Anti-Money Laundering Officer | Indefinite, 06/18 — Present | From June 2018 to present, Chief Compliance Officer and Executive Director, Sterling Capital; from September 2010 to June 2018, Vice President, Senior Compliance Manager, Brown Brothers Harriman & Co. |
| John A. Bruggeman* Birthdate: 12/71 | Assistant Treasurer | Indefinite, Assistant Treasurer, 08/16 — 11/22 | From January 2010 to November 2022, Vice President and Senior Director, Fund Accounting and Administration Department, The Bank of New York Mellon |
| Julie M. Powers Birthdate: 10/69 | Assistant Secretary | Indefinite, 11/11 — Present | From November 2011 to present, Vice President, Regulatory Administration Department, The Bank of New York Mellon |
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.
| * | Effective November 9, 2022, Mr. Bruggeman no longer serves as Assistant Treasurer of the Funds. |
193
Liquidity Risk Management Program
The Funds have adopted a liquidity risk management program pursuant to Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Program”). The Funds’ board has designated Sterling Capital Management LLC (“Sterling Capital”) as the administrator of the Program. The Program’s principal objectives are to support the Funds’ compliance with limits on investments in illiquid assets and to mitigate the risk that a Fund is unable to meet its redemption obligations timely. In this regard, the Program includes a number of elements that support the management or assessment of liquidity risk, including an assessment of factors that influence a Fund’s liquidity and the periodic classification and, as determined necessary, re-classification of a Fund’s investments into buckets that reflect their relative liquidity under current market conditions.
The Funds’ Board reviewed a written report from Sterling Capital on May 17, 2022 addressing the Program’s operation, adequacy, and effectiveness (the “Report”). From January 1, 2021 through December 31, 2021, the period covered by the Report, the Program supported each Fund’s ability to honor redemption requests timely and Sterling Capital’s management of each Fund’s liquidity risk profile, including during any periods of market volatility and net redemptions.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to your Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which it may be subject.
194
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. |
195
INVESTMENT ADVISOR
Sterling Capital Management LLC
4350 Congress Street, Suite 1000
Charlotte, NC 28209
DISTRIBUTOR
Sterling Capital Distributors, LLC
3 Canal Plaza
Suite 100
Portland, ME 04101
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
Cohen & Company, Ltd.
342 North Water Street, Suite 830
Milwaukee, WI 53202
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| (b) | Not applicable |
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 $310,500 for 2022 and $302,500 for 2021. |
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 2022 and $0 for 2021. 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 $82,000 for 2022 and $95,500 for 2021. Fees for both 2022 and 2021 relate to the preparation of the registrant’s federal income and excise tax returns and review of the registrant’s 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 2022 and $0 for 2021. |
| (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) N/A
(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 2022 and $0 for 2021. |
| (h) | Not applicable. |
| (i) | Not applicable. |
| (j) | Not applicable. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) 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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. 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)(2)(1) | There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. |
| (a)(2)(2) | There was no change in the Registrant’s independent public accountant during the period covered by the report. |
| (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 | 11/23/22 |
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 | 11/23/22 | |
| By (Signature and Title) | /s/ Todd M. Miller | |
| Todd M. Miller, Treasurer | ||
| (principal financial officer) | ||
| Date | 11/23/22 |